Document:

EX-4.2

MERCER INTERNATIONAL INC.,

as Issuer

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

INDENTURE

DATED AS OF OCTOBER 19, 2009

DEBT SECURITIES

 

 

i

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 Definitions

	 	 	1	 
	Section 1.02 Other Definitions

	 	 	7	 
	Section 1.03 Incorporation by Reference of Trust Indenture Act

	 	 	7	 
	Section 1.04 Rules of Construction

	 	 	7	 
	Section 1.05 Notice to Securityholders

	 	 	8	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	ISSUE, EXECUTION, REGISTRATION AND 
	 	 	 	 
	EXCHANGE OF DEBT SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 Amount Unlimited; Issuable in Series

	 	 	8	 
	Section 2.02 Form of Trustee’s Certificate of Authentication

	 	 	11	 
	Section 2.03 Form, Execution, Authentication, Delivery and Dating of Debt Securities

	 	 	11	 
	Section 2.04 Denominations; Record Date

	 	 	13	 
	Section 2.05 Exchange and Registration of Transfer of Debt Securities

	 	 	13	 
	Section 2.07 Mutilated, Destroyed, Lost or Stolen Debt Securities

	 	 	15	 
	Section 2.08 Cancellation

	 	 	15	 
	Section 2.09 Computation of Interest

	 	 	16	 
	Section 2.10 Debt Securities in Global Form

	 	 	16	 
	Section 2.11 CUSIP Numbers

	 	 	17	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	REDEMPTION OF DEBT SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 3.01 Redemption of Debt Securities; Applicability of Article

	 	 	17	 
	Section 3.02 Notice of Redemption; Selection of Debt Securities

	 	 	17	 
	Section 3.03 Payment of Debt Securities Called for Redemption

	 	 	18	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	COVENANTS OF THE CORPORATION
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 Payment of Principal, Premium, Interest and Additional Amounts

	 	 	19	 
	Section 4.02 Offices for Notices and Payments, etc.

	 	 	19	 
	Section 4.03 Provisions as to Paying Agent

	 	 	20	 
	Section 4.04 Statement by Officers as to Default

	 	 	21	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	SECURITYHOLDER LISTS AND REPORTS BY THE
	 	 	 	 
	CORPORATION AND THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 5.01 Securityholder Lists

	 	 	21	 

 

ii

	 	 	 	 	 
	 	 	Page
	Section 5.02 Preservation and Disclosure of Lists

	 	 	22	 
	Section 5.03 Reports by the Corporation

	 	 	22	 
	Section 5.04 Reports by the Trustee

	 	 	23	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	REMEDIES ON DEFAULT
	 	 	 	 
	 
	 	 	 	 
	Section 6.01 Events of Default

	 	 	23	 
	Section 6.02 Payment of Debt Securities on Default; Suit Therefor

	 	 	25	 
	Section 6.03 Application of Monies and Property Collected by Trustee

	 	 	27	 
	Section 6.04 Proceedings by Securityholders

	 	 	28	 
	Section 6.05 Remedies Cumulative and Continuing

	 	 	29	 
	Section 6.06 Direction of Proceedings

	 	 	29	 
	Section 6.07 Notice of Defaults

	 	 	30	 
	Section 6.08 Undertaking to Pay Costs

	 	 	30	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	CONCERNING THE TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 7.01 Duties and Responsibilities of Trustee

	 	 	30	 
	Section 7.02 Reliance on Documents, Opinions, etc.

	 	 	31	 
	Section 7.03 No Responsibility for Recitals, etc.

	 	 	33	 
	Section 7.04 Ownership of Debt Securities

	 	 	33	 
	Section 7.05 Monies to be Held in Trust

	 	 	33	 
	Section 7.06 Compensation and Expenses of Trustee

	 	 	34	 
	Section 7.07 Officers’ Certificate as Evidence

	 	 	34	 
	Section 7.08 Conflicting Interest of Trustee

	 	 	34	 
	Section 7.09 Eligibility of Trustee

	 	 	34	 
	Section 7.10 Resignation or Removal of Trustee

	 	 	35	 
	Section 7.11 Acceptance by Successor Trustee

	 	 	36	 
	Section 7.12 Successor by Merger, etc.

	 	 	37	 
	Section 7.13 Limitations on Rights of Trustee as Creditor

	 	 	37	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	CONCERNING THE SECURITYHOLDERS
	 	 	 	 
	 
	 	 	 	 
	Section 8.01 Action by Securityholders

	 	 	37	 
	Section 8.02 Proof of Execution by Securityholders

	 	 	38	 
	Section 8.03 Who Are Deemed Absolute Owners

	 	 	38	 
	Section 8.04 Corporation-Owned Debt Securities Disregarded

	 	 	38	 
	Section 8.05 Revocation of Consents; Future Securityholders Bound

	 	 	39	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	SECURITYHOLDERS’ MEETINGS
	 	 	 	 
	 
	 	 	 	 
	Section 9.01 Purposes of Meetings

	 	 	39	 
	Section 9.02 Call of Meetings by Trustee

	 	 	39	 
	Section 9.03 Call of Meetings by Corporation or Securityholders

	 	 	40	 
	Section 9.04 Qualification for Voting

	 	 	40	 

 

iii

	 	 	 	 	 
	 	 	Page
	Section 9.05 Regulations

	 	 	40	 
	Section 9.06 Voting

	 	 	41	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	 
	 	 	 	 
	Section 10.01 Supplemental Indentures Without Consent of Securityholders

	 	 	41	 
	Section 10.02 Supplemental Indentures With Consent of Securityholders

	 	 	42	 
	Section 10.03 Compliance with Trust Indenture Act; Effect of Supplemental Indentures

	 	 	43	 
	Section 10.04 Notation on Debt Securities

	 	 	44	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	CONSOLIDATION, MERGER, SALE OR CONVEYANCE
	 	 	 	 
	 
	 	 	 	 
	Section 11.01 Corporation May Consolidate, etc., on Certain Terms

	 	 	44	 
	Section 11.02 Successor Corporation Substituted

	 	 	44	 
	Section 11.03 Certificate to Trustee

	 	 	45	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONIES
	 	 	 	 
	 
	 	 	 	 
	Section 12.01 Discharge of Indenture

	 	 	45	 
	Section 12.02 Satisfaction, Discharge and Defeasance of Debt Securities of Any Series

	 	 	46	 
	Section 12.03 Deposited Monies to be Held in Trust by Trustee

	 	 	47	 
	Section 12.04 Paying Agent to Repay Monies Held

	 	 	47	 
	Section 12.05 Return of Unclaimed Monies

	 	 	47	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, 
	 	 	 	 
	OFFICERS AND DIRECTORS
	 	 	 	 
	 
	 	 	 	 
	Section 13.01 Indenture and Debt Securities Solely Corporate Obligations

	 	 	48	 
	 
	 	 	 	 
	ARTICLE 14
	 	 	 	 
	MISCELLANEOUS PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	Section 14.01 Benefits of Indenture Restricted to Parties and Securityholders

	 	 	48	 
	Section 14.02 Provisions Binding on Corporation’s Successors

	 	 	48	 
	Section 14.03 Addresses for Notices, etc.

	 	 	48	 
	Section 14.04 Evidence of Compliance with Conditions Precedent

	 	 	49	 
	Section 14.05 Legal Holidays

	 	 	49	 
	Section 14.06 Trust Indenture Act to Control

	 	 	49	 
	Section 14.07 Execution in Counterparts

	 	 	50	 
	Section 14.08 Governing Law

	 	 	50	 
	Section 14.09 Severability of Provisions

	 	 	50	 
	Section 14.10 Corporation Released from Indenture Requirements under Certain Circumstances

	 	 	50	 
	Section 14.11 Force Majeure

	 	 	50	 
	Section 14.12 U.S.A. Patriot Act

	 	 	51	 

 

iv

	 	 	 	 	 
	 	 	Page
	ARTICLE 15
	 	 	 	 
	SINKING FUNDS
	 	 	 	 
	 
	 	 	 	 
	Section 15.01 Applicability of Article

	 	 	51	 
	Section 15.02 Satisfaction of Sinking Fund Payments with Debt Securities

	 	 	51	 
	Section 15.03 Redemption of Debt Securities for Sinking Fund

	 	 	52	 
	 
	 	 	 	 
	ARTICLE 16
	 	 	 	 
	REPAYMENT AT THE OPTION OF HOLDERS
	 	 	 	 
	 
	 	 	 	 
	Section 16.01 Applicability of Article

	 	 	52	 
	Section 16.02 Repayment of Debt Securities

	 	 	52	 
	Section 16.03 Exercise of Option; Notice

	 	 	52	 
	Section 16.04 Debt Securities Payable on the Repayment Date

	 	 	53	 
	 
	 	 	 	 
	ARTICLE 17
	 	 	 	 
	SUBORDINATION OF DEBT SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 17.01 Applicability of Article; Agreement To Subordinate

	 	 	53	 
	Section 17.02 Liquidation, Dissolution, Bankruptcy

	 	 	54	 
	Section 17.03 Default on Senior Indebtedness

	 	 	54	 
	Section 17.04 Acceleration of Payment of Debt Securities

	 	 	55	 
	Section 17.05 When Distribution Must Be Paid Over

	 	 	55	 
	Section 17.06 Subrogation

	 	 	55	 
	Section 17.07 Relative Rights

	 	 	55	 
	Section 17.08 Subordination May Not Be Impaired by Corporation

	 	 	56	 
	Section 17.09 Rights of Trustee and Paying Agent

	 	 	56	 
	Section 17.10 Distribution or Notice to Representative

	 	 	56	 
	Section 17.11 Article Seventeen Not to Prevent Defaults or Limit Right to Accelerate

	 	 	56	 
	Section 17.12 Trustee Entitled to Rely

	 	 	57	 
	Section 17.13 Trustee to Effectuate Subordination

	 	 	57	 
	Section 17.14 Trustee Not Fiduciary for Holders of Senior Indebtedness

	 	 	57	 
	Section 17.15 Reliance by Holders of Senior Indebtedness on Subordination Provisions

	 	 	57	 
	 
	 	 	 	 
	ARTICLE 18
	 	 	 	 
	CONVERSION OF DEBT SECURITIES
	 	 	 	 
	 
	 	 	 	 
	Section 18.01 Applicability of Article

	 	 	58	 
	Section 18.02 Right to Convert

	 	 	58	 
	Section 18.03 Conversion Procedures; Conversion Settlement

	 	 	58	 
	Section 18.04 Cash Payments in Lieu of Fractional Shares

	 	 	60	 
	Section 18.05 Conversion Price

	 	 	60	 
	Section 18.06 Adjustment to Conversion Price

	 	 	60	 
	Section 18.07 Effect of Reclassification, Consolidation, Merger or Sale

	 	 	63	 
	Section 18.08 Taxes on Shares Issued

	 	 	64	 

 

v

	 	 	 	 	 
	 	 	Page
	Section 18.09 Shares to be Fully Paid; Compliance with Governmental Requirements; Listing of
Shares of Common Stock

	 	 	64	 
	Section 18.10 Trustee Not Responsible

	 	 	64	 
	Section 18.11 Notice to Holders Prior to Certain Actions

	 	 	65	 
	Section 18.12 Covenant to Reserve Shares

	 	 	66	 

 

     Reconciliation and tie of this Indenture relating to Trust Indenture Act of 1939, as amended.

	 	 	 
	SECTION OF ACT	 	SECTION OF INDENTURE
	310(a)(1), (2)and (5)
	 	7.09
	310(a)(3) and (4)
	 	Not applicable
	310(b)
	 	7.08
	310(c)
	 	Not applicable
	311(a) and (b)
	 	7.13
	311(c)
	 	Not applicable
	312(a)
	 	5.01 and 5.02(a)
	312(b) and (c)
	 	5.02(b) and (c)
	313(a) and (b)
	 	5.04(a)
	313(c)
	 	5.04(a)
	313(d)
	 	5.04(b)
	314(a)
	 	5.03
	314(b)
	 	Not applicable
	314(c)(1) and (2)
	 	14.04
	314(c)(3)
	 	Not applicable
	314(d)
	 	Not applicable
	314(e)
	 	14.04
	315(a), (c) and (d)
	 	7.01
	315(b)
	 	6.07
	315(e)
	 	6.08
	316(a)(1)
	 	6.06
	316(a)(2)
	 	Omitted
	316(a) last sentence
	 	8.04
	316(b)
	 	6.04
	316(c)
	 	9.02
	317(a)
	 	6.02
	317(b)
	 	4.03
	318(a)
	 	14.06

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

 

 

     INDENTURE,
dated as of the 19th day of October, 2009, between Mercer International Inc., a
Washington corporation (the “Corporation”) and Wells Fargo Bank, National Association, a
national banking association organized and existing under the laws of the United States, as trustee
hereunder (the “Trustee”).

RECITALS OF THE CORPORATION

     WHEREAS, the Corporation deems it necessary or appropriate to issue from time to time for its
lawful purposes securities evidencing its unsecured senior or unsecured subordinated indebtedness
(herein called the “Debt Securities” or, in the singular, “Debt Security”) and has
duly authorized the execution and delivery of this Indenture to provide for the issuance of the
Debt Securities in one or more series, unlimited as to principal amount, to bear such rates of
interest, to mature at such time or times and to have such other provisions as shall be established
as hereinafter provided.

     AND WHEREAS, the Corporation represents that all acts by it necessary to constitute a valid
indenture and agreement according to its terms have been done and performed, and the execution of
this Indenture has in all respects been duly authorized by the Corporation, and the Corporation, in
the exercise of legal rights and power in it vested, is executing this Indenture.

     NOW, THEREFORE, in order to declare the terms and conditions upon which the Debt Securities
are authenticated, issued and received, and in consideration of the premises, of the purchase and
acceptance of the Debt Securities by the Holders thereof the Corporation covenants and agrees with
the Trustee, for the equal and proportionate benefit of the respective Holders from time to time of
the Debt Securities or any series thereof, as follows:

ARTICLE 1

DEFINITIONS

Section 1.01 Definitions.

     The terms defined in this Section (except as herein otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any indenture supplemental
hereto shall have the respective meanings specified in this Section. All other terms used in this
Indenture which are defined in the Trust Indenture Act or which are by reference therein defined in
the Securities Act shall have the meanings (except as herein otherwise expressly provided or unless
the context otherwise clearly requires) assigned to such terms in the Trust Indenture Act and in
the Securities Act as in force at the date of this Indenture as originally executed. The words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a
whole, including any exhibits hereto, and not to any particular Article, Section or other
subdivision. Certain terms used wholly or principally within an Article of this Indenture may be
defined in that Article.

     “Additional Amounts” shall mean any additional amounts which are required by a Debt
Security or by or pursuant to a Board Resolution under circumstances specified therein, to be paid
by the Corporation in respect of certain taxes, assessments or governmental charges

 

2

imposed on certain Holders of Debt Securities and which are owing to such Holders of Debt
Securities.

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

     “Authorized Newspaper” shall mean a newspaper in an official language of the country
of publication of general circulation in the place in connection with which the term is used. If
it shall be impracticable to make any publication of any notice required hereby in an Authorized
Newspaper, any publication or other notice in lieu thereof which is made or given with the approval
of the Trustee shall constitute a sufficient publication of such notice.

     “Board of Directors” shall mean the Board of Directors of the Corporation or any
committee established by the Board of Directors, as the context requires.

     “Board Resolution” shall mean a resolution certified by the Secretary or an Assistant
Secretary of the Corporation to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Trustee.

     “Business Day” shall mean, with respect to any Debt Security, a day (other than a
Saturday or Sunday) that in the city (or in any of the cities, if more than one) in which amounts
are payable as specified on the face of the form of such Debt Security, is neither a legal holiday
nor a day on which banking institutions are authorized or required by law, regulation or executive
order to close.

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

     “Corporate Trust Office” shall mean the office of the Trustee at which at any
particular time its corporate trust business shall be principally administered, which office at the
date hereof is located at 707 Wilshire Blvd., 17th Floor, Los Angeles, CA 90017
(Attention: Corporate Trust Services).

     “Corporation” shall mean the person named as the “Corporation” 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 “Corporation” shall mean such successor corporation.

     “Corporation Order” shall mean any written request, order or confirmation to the
Trustee signed by a person designated pursuant to Section 2.03, which may be transmitted by telex,
by telecopy.

 

3

     “Debt” of any Person at any date shall mean an obligation created or assumed by such
Person for the repayment of borrowed money and any guarantee thereof.

     “Debt Securities” or “Debt Security” shall have the meaning stated in the
first recital of this Indenture and more particularly means any Debt Securities or Debt Security,
as the case may be, of any series authenticated and delivered under this Indenture.

     “Default” shall mean any event, act or condition that is, or after notice or the
passage of time or both would be, an Event of Default specified as such in Section 6.01.

     “Depositary” shall mean, with respect to the Debt Securities of any series issuable or
issued in whole or in part in the form of one or more Global Securities, the Person designated as
Depositary by the Corporation pursuant to Section 2.01 until a successor Depositary shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary”
shall mean or include each Person who is then a Depositary hereunder, and if at any time there is
more than one such Person, “Depositary” as used with respect to the Debt Securities of any such
series shall mean the Depositary with respect to the Debt Securities of that series.

     “Designated Senior Indebtedness” shall mean any Senior Indebtedness existing as of the
date of this Indenture or in which the instrument creating or evidencing the Indebtedness, or any
related agreements or documents to which the Corporation is a party, expressly provides that such
Indebtedness is “Designated Senior Indebtedness” for purposes of this Indenture (provided that the
instrument, agreement or other document creating or evidencing the Debt may place limitations and
conditions on the right of the Senior Indebtedness to exercise the rights of Designated Senior
Indebtedness).

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and any
successor statute.

     “GAAP” shall mean the generally accepted accounting principles in the United States of
America as in effect from time to time, including those principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are in effect from time to time.

     “Global Security” shall mean a Debt Security evidencing all or part of a series of
Debt Securities issued to the Depository or its nominee for such series in accordance with
Section 2.03.

     “Holder”, “Holder of Debt Securities”, “Securityholder” or other
similar terms, shall mean the person in whose name at the time such Debt Security is registered on
the registration books kept for that purpose in accordance with the terms hereof.

     “Indenture” shall mean 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.

 

4

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

     “Issue Date” shall mean, with respect to any Debt Security, the date such Debt
Security is authenticated pursuant to Section 2.03.

     “Maturity Date” when used with respect to any Debt Security, shall mean the date on
which the principal of such Debt Security becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration or acceleration, call for redemption or exchange,
prepayment at the option of the Holder or otherwise.

     “Officers’ Certificate” shall mean a certificate signed on behalf of the Corporation
(and without personal liability), and complying with Section 14.04, by the President and Chief
Executive Officer or its Chief Financial Officer or any Vice President and by the Secretary or any
Assistant Secretary.

     “Opinion of Counsel” shall mean an opinion in writing, complying with Section 14.04,
signed by legal counsel who may be an employee of or counsel to the Corporation or who may be other
counsel acceptable to the Trustee.

     “Original Issue Discount Securities” shall mean any Debt Securities that are initially
sold at a discount from the principal amount thereof and that provide upon an Event of Default for
declaration of an amount less than the principal amount thereof to be due and payable upon
acceleration thereof.

     “Outstanding” when used with reference to Debt Securities, shall, subject to the
provisions of Section 8.01 and Section 8.04, mean, as of any particular time, all Debt Securities
authenticated and delivered by the Trustee under this Indenture, except

	 	(a)	 	Debt Securities theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;
	 
	 	(b)	 	Debt Securities, or portions thereof, for the payment or redemption of which
monies in the necessary amount shall have been deposited in trust with the Trustee or
with any paying agent (other than the Corporation) or shall have been set aside and
segregated in trust by the Corporation (if the Corporation shall act as its own Paying
Agent), provided, that if such Debt Securities are to be redeemed prior to the maturity
thereof, notice of such redemption shall have been given as provided in Article Three,
or provisions satisfactory to the Trustee shall have been made for giving such notice;
and
	 
	 	(c)	 	Debt Securities in lieu of and in substitution for which other Debt Securities
shall have been authenticated and delivered pursuant to the terms of Article Two,
unless proof satisfactory to the Trustee is presented that any such Debt Securities are
held by bona fide Holders in due course.

 

5

     “Paying Agent” shall mean initially the Trustee and, subsequently, any other paying
agent appointed by the Corporation from time to time in respect of the Debt Securities.

     “Permitted Junior Securities” means Shares of Common Stock or debt securities that are
subordinated to Senior Indebtedness to at least the same extent as, or to a greater extent than,
the Subordinated Debt Securities.

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

     “Place of Payment” when used with respect to the Debt Securities of any series, means
the place or places where the principal of (and premium, if any) and interest, if any, (and
Additional Amounts, if any) on the Debt Securities of that series are payable.

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

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

     “Regular Record Date” for the interest payable on any Interest Payment Date on the
Debt Securities of any series means the date specified for that purpose as contemplated by Sections
2.01 and 2.04.

     “Remarketing Entity” when used with respect to Debt Securities of any series that are
repayable at the option of the Holders thereof before their Stated Maturity, means any person
designated by the Corporation to purchase any such Debt Securities.

     “Repayment Date” when used with respect to any Debt Security to be repaid upon
exercise of option for repayment by the Holder, means the date fixed for such repayment pursuant to
this Indenture.

     “Repayment Price” when used with respect to any Debt Security to be repaid upon
exercise of option for repayment by the Holder, means the price at which it is to be repaid
pursuant to this Indenture.

     “Representative” shall mean the trustee, agent or representative (if any) for an issue
of Senior Indebtedness.

     “Rights” has the meaning specified in Section 18.06(c).

     “Securities Act of 1933” shall mean the Securities Act of 1933, as amended, and any
successor statute.

     “Senior Indebtedness” with respect to the Corporation shall mean the principal of,
premium, if any, interest (including any interest accruing after the commencement of any bankruptcy
or similar proceeding, whether or not a claim for post-petition interest is allowed as a claim in
the proceeding), and rent payable on or in connection with, and all fees, costs, expenses

 

6

and other amounts accrued or due on or in connection with, Debt of the Corporation whether secured
or unsecured, absolute or contingent, due or to become due, outstanding on the date of this
Indenture or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by the
Corporation, including all deferrals, renewals, extensions or refundings of, or amendments,
modifications or supplements to, the foregoing. Senior Indebtedness does not include: (i) Debt
that expressly provides that such Debt shall not be senior in right of payment to the Subordinated
Debt Securities issued pursuant to this Indenture or expressly provides that such Debt is pari
passu or junior to the Subordinated Debt Securities issued pursuant to this Indenture; (ii) any
Debt to any of the Corporation’s Subsidiaries, other than Debt to the Corporation’s Subsidiaries
arising by reason of guarantees by the Corporation of Debt of such Subsidiary to a Person that is
not a Subsidiary of the Corporation; (iii) any Debt of or amounts owed by the Corporation for
compensation to employees of the Corporation, for goods or materials purchased by the Corporation
in the ordinary course of business, or for services; (iv) any liability for federal, state or local
taxes or other taxes, owed or owing by the Corporation; (v) the portion of any Debt that is
incurred in violation of this Indenture; and (vi) the Subordinated Debt Securities issued pursuant
to this Indenture.

     “Shares of Common Stock” means, when used with reference to the capital stock of the
Corporation, the class of stock which, at the date of execution of this Indenture, is designated as
shares of common stock of the Corporation and stock of any class or classes into which such shares
of common stock or any such other class may thereafter be changed or reclassified.

     “Significant Subsidiary” shall mean any Subsidiary of the Corporation that would be a
“significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant
to the Exchange Act, as such Regulation is in effect on the date of this Indenture.

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

     “Subsidiary” shall mean, with respect to any Person, any corporation or other entity
of which more than 50% of the outstanding stock or other beneficial interests having by the terms
thereof ordinary voting power to elect a majority of the Board of Directors or other governing body
of such corporation or other entity (irrespective of whether or not at the time stock or other
beneficial interests of another class or classes of such corporation or other entity shall have or
might have voting power by reason of the happening of any contingency) is at the time owned by the
Corporation, or by one or more Subsidiaries, or by the Corporation and one or more Subsidiaries.

     “Trust Indenture Act of 1939” shall mean the Trust Indenture Act of 1939, as amended,
and any successor statute.

     “Trust Officer” shall mean, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer 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

 

7

person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

     “Trustee” initially shall mean Wells Fargo Bank, National Association and any other
Person or Persons appointed as such from time to time pursuant to Section 7.10, and, subject to the
provisions of Article 7, includes its or their successors or assigns.

     “United States” shall mean the United States of America (including the states thereof
and the District of Columbia), its territories, its possessions and any other areas subject to its
jurisdiction.

     “U.S. Dollar” or “$” means such currency of the United States of America as at
the time shall be legal tender for the payment of public and private debts.

Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Closing Price”
	 	 	18.06	 
	“Conversion Price”
	 	 	18.05	 
	“Convertible Securities”
	 	 	18.01	 
	“Debt Security Register”
	 	 	2.05	 
	“Event of Default”
	 	 	6.01	 
	“Subordinated Debt Securities”
	 	 	17.01	 

Section 1.03 Incorporation by Reference of Trust Indenture Act.

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

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

Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

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

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

     (c) “or” is not exclusive;

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

 

8

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

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

Section 1.05 Notice to Securityholders.

     Except as otherwise expressly provided herein, where this Indenture provides for notice to
Holders of Debt Securities of any event, such notice shall be sufficiently given if in writing and
delivered electronically or mailed, first class, postage prepaid, to each Holder at such Holder’s
address as it appears in the Debt Security Register, not later than the latest date, and not
earlier than the earliest date, prescribed for such notice.

     Neither the failure to send such notice nor any defect in any notice so sent to any particular
Holder of a Debt Security shall affect the sufficiency of such notice with respect to other Holders
of Debt Securities.

     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 of Debt Securities 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.

ARTICLE 2

ISSUE, EXECUTION, REGISTRATION AND 

EXCHANGE OF DEBT SECURITIES

Section 2.01 Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Debt Securities that may be issued, executed, authenticated,
delivered and outstanding under this Indenture is unlimited.

     The Debt Securities may be issued in one or more series. There shall be established, without
the approval of any Holders, in or pursuant to a Board Resolution, and set forth in or established
in one or more indentures supplemental hereto, prior to the issuance of Debt Securities of any
series, any or all of the following:

	 	(1)	 	the designation of the Debt Securities of the series (which shall distinguish
the Debt Securities of the series from all other Debt Securities);
	 
	 	(2)	 	whether the Debt Securities of the series are Subordinated Debt Securities and
the terms related thereto including the definitions of Senior Indebtedness and
Designated Senior Indebtedness which shall be applicable to the Subordinated Debt
Securities;

 

9

	 	(3)	 	any limit upon the aggregate principal amount of the Debt Securities of the
series which may be authenticated and delivered under this Indenture (except for Debt
Securities authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Debt Securities of the series pursuant to Section 2.05, 2.06,
2.07, 3.02, 10.04, 16.03, or 18.03);
	 
	 	(4)	 	the date or dates on which the principal of (and premium, if any) on the Debt
Securities of the series are payable;
	 
	 	(5)	 	the rate or rates, which may be fixed or variable, at which the Debt Securities
of the series shall bear interest, if any, and if the rate or rates are variable, the
manner of calculation thereof, the date or dates from which such interest shall accrue,
the Interest Payment Dates on which such interest shall be payable and the Regular
Record Date for the determination of Holders of such Debt Securities to whom interest
is payable on any Interest Payment Date;
	 
	 	(6)	 	the place or places (in addition to such place or places specified in this
Indenture) where the principal of (and premium, if any), interest, if any, and
Additional Amounts, if any, on Debt Securities of the series shall be payable;
	 
	 	(7)	 	the right, if any, of the Corporation to redeem Debt Securities of the Series,
in whole or in part, at its option and the period or periods within which, the price or
prices at which and the terms and conditions upon which Debt Securities of the series
may be redeemed pursuant to any sinking fund or otherwise;
	 
	 	(8)	 	the obligation, if any, of the Corporation to redeem, purchase or repay Debt
Securities of the series pursuant to any mandatory redemption, sinking fund or
analogous provisions or at the option of a Holder thereof and the period or periods
within which, the price or prices at which and the terms and conditions upon which Debt
Securities of the series shall be redeemed, purchased or repaid, in whole or in part,
pursuant to such obligation;
	 
	 	(9)	 	if the amount of principal of and interest on the Debt Securities of the series
may be determined with reference to an index based on a currency or currencies other
than that in which the Debt Securities of the series are denominated, the manner in
which such amounts shall be determined;
	 
	 	(10)	 	the denominations in which Debt Securities of the series shall be issuable, if
other than U.S. $1,000 or integral multiples thereof;
	 
	 	(11)	 	if other than the principal amount thereof, the portion of the principal amount
of Debt Securities of the series which shall be payable upon declaration of
acceleration of the maturity thereof or which the Trustee shall be entitled to claim
pursuant to Section 6.02;
	 
	 	(12)	 	whether the Debt Securities of the series shall be issued in whole or in part
in the form of one or more Global Securities and, in such case, the Depository for such

 

10

	 	 	 	Global Security or Debt Securities and whether any Global Securities of the series
are to be issuable initially in temporary form and whether any Global Securities of
the series are to be issuable in definitive form and, if so, whether beneficial
owners of interests in any such definitive Global Security may exchange such
interests for Debt Securities of such series and of like tenor of any authorized
form and denomination, and the circumstances under which and the place or places
where any such exchanges may occur, if other than in the manner provided in Section
2.05;
	 
	 	(13)	 	whether and under what circumstances the Corporation will pay Additional
Amounts on the Debt Securities of the series in respect of any tax, assessment or
governmental charge withheld or deducted and, if so, whether the Corporation will have
the option to redeem such Debt Securities rather than pay such Additional Amounts;
	 
	 	(14)	 	the provisions, if any, for the defeasance of the Debt Securities of the
series;
	 
	 	(15)	 	if the Debt Securities of such series are to be issuable in definitive form
(whether upon original issue or upon exchange of a temporary Debt Security of such
series) only upon receipt of certain certificates or other documents or satisfaction of
other conditions, the form and terms of such certificates, documents or conditions;
	 
	 	(16)	 	except as otherwise provided herein, any trustees, depositories, authenticating
or paying agents, transfer agents, conversion agents, registrars or any other agents
with respect to the Debt Securities of such series;
	 
	 	(17)	 	the percentage of their principal amount at which the Debt Securities will be
issued;
	 
	 	(18)	 	any securities exchanges on which the Debt Securities will be listed;
	 
	 	(19)	 	whether there are any limitations or restrictions on the incurrence of
additional debt, liens, leaseback transactions or other such provisions;
	 
	 	(20)	 	whether the Debt Securities of the series are Convertible Securities and the
terms related thereto including the Conversion Price and the date on which the right to
convert expires; and
	 
	 	(21)	 	any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture but which may modify or delete any provisions of this
Indenture insofar as it applies to such series).

     All Debt Securities of any one series shall be substantially identical except (i) as to
denomination, and (ii) as may otherwise be provided in or pursuant to such Board Resolution and set
forth in any such indenture supplemental hereto.

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or

 

11

any Assistant Secretary of the Corporation and delivered to the Trustee at the same time as or
prior to the delivery of the supplemental indenture setting forth the terms of the series.

Section 2.02 Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificate of authentication on all Debt Securities authenticated by the
Trustee shall be substantially in the following form:

{FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION}

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

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee,

 	 
	 	By:  	 	 
	 	 	      Authorized Signatory 	 
	 	 	 	 
	 

Section 2.03 Form, Execution, Authentication, Delivery and Dating of Debt Securities.

     The Debt Securities of each series shall be in the forms approved from time to time
established in one or more indentures supplemental hereto, and may have such letters, numbers or
other marks of identification or designation and such legends or endorsements printed, lithographed
or engraved thereon as the Corporation may deem appropriate and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any securities exchange on which
the Debt Securities may be listed, or to conform to usage.

     Each Debt Security shall be executed on behalf of the Corporation by its President and Chief
Executive Officer or its Chief Financial Officer or any Vice President and the Secretary or any
Assistant Secretary. Such signatures may be the manual or facsimile signatures of the present or
any future such officers and may be imprinted or otherwise reproduced on the Debt Securities.

     Each Debt Security bearing the manual or facsimile signatures of individuals who were at any
time the proper officers of the Corporation shall bind the Corporation, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Debt Security. At any time and from time to time after the execution and delivery
of this Indenture, the Corporation may deliver Debt Securities of any series executed by the
Corporation and delivered to the Trustee for authentication, together with a Corporation Order for
the authentication and delivery of such Debt Securities, and the Trustee in accordance with such
Corporation Order shall authenticate and deliver such Debt Securities. In authenticating such Debt
Securities and accepting the additional responsibilities under this Indenture in relation to such
Debt Securities, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall be
fully protected in relying upon:

 

12

     (a) a copy of any resolution or resolutions of the Board of Directors, certified by the
Secretary of the Corporation, authorizing the terms of issuance of any series of Debt Securities;

     (b) an executed supplemental indenture, if any;

     (c) an Officers’ Certificate complying with Section 14.04; and

     (d) an Opinion of Counsel stating:

     (i) that the form of such Debt Securities has been established by or pursuant to Board
Resolution or by a supplemental indenture as permitted by Section 2.01 in conformity with
the provisions of this Indenture;

     (ii) that the terms of such Debt Securities have been established by or pursuant to
Board Resolution or by a supplemental indenture as permitted by Section 2.01 in conformity
with the provisions of this Indenture; and

     (iii) that each such Debt Security, when authenticated and delivered by the Trustee and
issued by the Corporation in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the
Corporation, enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other laws of general applicability
relating to or affecting the enforcement of creditors’ rights and to general equity
principles, whether applied in a proceeding at law or in equity.

     Unless otherwise provided in the form of Debt Security for any series, each Debt Security
shall be dated the date of its authentication.

     The Trustee shall not be required to authenticate such Debt Securities if the issue of such
Debt Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or
immunities under the Debt Securities and the Indenture or otherwise in a manner that is not
reasonably acceptable to the Trustee.

     No Debt Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Debt Security a certificate of
authentication substantially in the form provided for herein executed by the Trustee by manual
signature, and such certificate upon any Debt Security shall be conclusive evidence, and the only
evidence, that such Debt Security has been duly authenticated and delivered hereunder and is
entitled to the benefits of this Indenture.

     If the Corporation shall establish pursuant to Section 2.01 that the Debt Securities of a
series are to be issued in whole or in part in the form of a Global Security, then the Corporation
shall execute and the Trustee shall in accordance with this Section and the Corporation Order with
respect to such series authenticate and deliver the Global Security that: (i) shall represent and
shall be denominated in an aggregate amount equal to the aggregate principal amount of outstanding
Debt Securities of such series to be represented by the Global Security; (ii) shall be registered,
if in registered form, in the name of the Depository for such Global Security or the

 

13

nominee of
such Depository; and (iii) shall be delivered by the Trustee to such Depository or pursuant to such
Depository’s instructions.

     Each Depository designated pursuant to Section 2.01 for a Global Security in registered form
must, at the time of its designation and at all times while it serves as Depository, be a clearing
agency registered under the Exchange Act and any other applicable statute or regulation.

Section 2.04 Denominations; Record Date.

     Unless otherwise provided in the form of Debt Security for any series, the Debt Securities of
each series shall be issuable in such denominations as shall be specified or contemplated by
Section 2.01. In the absence of any such specification with respect to any series, such Debt
Securities shall be issuable in the denominations of $1,000 and any integral multiple thereof.

     The term “record date” as used with respect to an Interest Payment Date (except a date for
payment of defaulted interest) shall mean such day or days as shall be specified in the terms of
the Debt Securities of any particular series as contemplated by Section 2.01; provided, however,
that in the absence of any such provisions with respect to any series, such term shall mean: (i)
the last day of the calendar month next preceding such Interest Payment Date if such Interest
Payment Date is the fifteenth day of a calendar month; or (ii) the fifteenth day of a calendar
month next preceding such Interest Payment Date if such Interest Payment Date is the first day of
the calendar month.

     The person in whose name any Debt Security is registered at the close of business on the
Regular Record Date with respect to an Interest Payment Date shall be entitled to receive the
interest payable and Additional Amounts, if any, payable on such Interest Payment Date
notwithstanding the cancellation of such Debt Security upon any transfer or exchange thereof
subsequent to such Regular Record Date and prior to such Interest Payment Date; provided, however,
that if and to the extent the Corporation shall default in the payment of the interest and
Additional Amounts, if any, due on such Interest Payment Date, such defaulted interest and
Additional Amounts, if any, shall be paid to the persons in whose names outstanding Debt Securities
are registered on a subsequent record date established by written notice given by sent by or on
behalf of the Corporation to the Holders of Debt Securities of the series in default not less than
15 days preceding such subsequent record date, such record date to be not less than 5 days
preceding the date of payment of such defaulted interest.

Section 2.05 Exchange and Registration of Transfer of Debt Securities.

     Debt Securities of any series (other than a Global Security) may be exchanged for a like
aggregate principal amount of Debt Securities of other authorized denominations of such series.
Debt Securities to be exchanged shall be surrendered at the office or agency to be designated and
maintained by the Corporation for such purpose in accordance with the provisions of Section 4.02,
and the Corporation shall execute and register and the Trustee shall authenticate and deliver in
exchange therefor the Debt Security or Debt Securities that the Holder making the exchange shall
been titled to receive.

     The Corporation or its designated agent (the “Security Registrar”) shall keep, at such office
or agency, a Security Register (the “Debt Security Register”) in which, subject to such

 

14

reasonable
regulations as it may prescribe, the Corporation shall register Debt Securities and shall register
the transfer of Debt Securities as provided in this Article Two. The Debt Security Register shall
be in written form or in any other form capable of being converted into written
form within a reasonable time. At all reasonable times the Debt Security Register shall be open
for inspection by the Trustee. Upon due presentment for registration of transfer of any Debt
Security of a particular series at such office or agency, the Corporation shall execute and the
Corporation or the Security Registrar shall register and the Trustee shall authenticate and deliver
in the name of the transferee or transferees a new Debt Security or Debt Securities of such series
for an equal aggregate principal amount.

     All Debt Securities presented for registration of transfer or for exchange, redemption or
payment, as the case may be, shall (if so required by the Corporation or the Trustee) be duly
endorsed by, or be accompanied by, a written instrument or instruments of transfer in a form
satisfactory to the Corporation and the Trustee duly executed by the Holder or his, her or its
attorney duly authorized in writing.

     No service charge shall be made for any exchange or registration of transfer of Debt
Securities, but the Corporation may require payment of a sum sufficient to cover any tax, fee,
assessment or other governmental charge that may be imposed in connection therewith.

     The Corporation shall not be required to exchange or register a transfer of: (i) any Debt
Securities of any series for a period of 15 days next preceding any selection of Debt Securities of
such series to be redeemed; or (ii) any Debt Securities of any such series selected for redemption
except in the case of any such series to be redeemed in part, the portion thereof not to be so
redeemed.

     The terms and conditions for the transfer of a Global Security of a series in addition to
those set forth in Section 2.10 hereof shall be set forth in the applicable supplemental indenture
for such series of Debt Securities.

Section 2.06 Temporary Debt Securities.

     Pending the preparation of definitive Debt Securities of any series, the Corporation may
execute and on receipt of a Corporation Order, the Trustee shall authenticate and deliver temporary
Debt Securities of such series (printed or lithographed). Temporary Debt Securities of any series
shall be issuable in any authorized denominations, and in the form approved from time to time by or
pursuant to a Board Resolution but with such omissions, insertions and variations as may be
appropriate for temporary Debt Securities, all as may be determined by the Corporation. Every
temporary Debt Security shall be executed by the Corporation and authenticated by the Trustee upon
the same conditions and in substantially the same manner, and with like effect, as the definitive
Debt Securities. Without unnecessary delay the Corporation shall execute and furnish definitive
Debt Securities of such series and thereupon any or all temporary Debt Securities of such series
may be surrendered in exchange therefor without charge at the office or agency to be designated and
maintained by the Corporation for such purpose, in accordance with the provisions of Section 4.02,
and the Trustee shall authenticate and deliver in exchange for such temporary Debt Securities an
equal aggregate principal amount of definitive Debt Securities of the same series of authorized
denominations. Until so exchanged

 

15

the temporary Debt Securities of any series shall be entitled to
the same benefits under this Indenture as definitive Debt Securities of such series.

Section 2.07 Mutilated, Destroyed, Lost or Stolen Debt Securities.

     In case any temporary or definitive Debt Security of any series shall become mutilated or be
destroyed, lost or stolen, the Corporation in the case of a mutilated Debt Security may, in its
discretion, execute, and upon receipt of a Corporation Order the Trustee shall authenticate and
deliver, a new Debt Security of the same series as the mutilated, destroyed, lost or stolen Debt
Security of the same series as the mutilated, destroyed, lost or stolen Security bearing a number
not contemporaneously outstanding, in exchange and substitution for the mutilated Debt Security. In
every case the applicant for a substituted Debt Security shall furnish to the Corporation and to
the Trustee such security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the
Corporation and to the Trustee evidence to their satisfaction of the destruction, loss or theft of
such Debt Security and of the ownership thereof. Upon the issuance of any substituted Debt
Security, the Corporation 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 connected
therewith. In case any Debt Security which has matured or is about to mature shall become mutilated
or be destroyed, lost or stolen, the Corporation may, instead of issuing a substituted Debt
Security, pay or authorize the payment of the same (without surrender thereof except in the case of
a mutilated Debt Security) if the applicant for such payment shall furnish the Corporation and the
Trustee with such security or indemnity as they may require to save them harmless and, in case of
destruction loss or theft, evidence to the satisfaction of the Corporation and the Trustee of the
destruction, loss or theft of such Debt Security and of the ownership thereof.

     Every substituted Debt Security issued pursuant to the provisions of this Section by virtue of
the fact that any Debt Security is destroyed, lost or stolen shall, with respect to such Debt
Security, constitute an additional contractual obligation of the Corporation, whether or not the
destroyed, lost or stolen Debt Security shall be found at any time, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all other Debt Securities
duly issued hereunder.

     All Debt Securities shall be held and owned upon the express condition that the foregoing
provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Debt Securities shall, to the extent permitted by law, preclude any and all other rights
or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with
respect to the replacement or payment of negotiable instruments or other securities without their
surrender.

Section 2.08 Cancellation.

     Unless otherwise provided with respect to a series of Debt Securities, all Debt Securities
surrendered for payment, redemption, repayment, transfer, exchange or credit against any sinking
fund payment pursuant to this Indenture, shall, if surrendered to the Paying Agent to be delivered
to the Trustee and promptly cancelled by it or, if surrendered to the Trustee, be cancelled by it,
and no Debt Securities shall be issued in lieu thereof except as expressly

 

16

permitted by any of the
provisions of this Indenture. The Trustee shall cancel such Debt Securities and deliver a
certificate of cancellation to the Corporation.

Section 2.09 Computation of Interest.

     Except as otherwise specified as contemplated by Section 2.01 for Debt Securities of any
series, interest on the Debt Securities of each series shall be computed on the basis of a 360-day
year of twelve 30-day months.

Section 2.10 Debt Securities in Global Form.

          (a) If the Corporation shall establish pursuant to Section 2.01 that the Debt Securities of a
particular series are to be issued as a Global Security, then the Corporation shall execute and the
Trustee shall, in accordance with Section 2.03, authenticate and deliver, a Global Security that
(i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount
of, all of the Outstanding Debt Securities of such series, (ii) shall be registered in the name of
the Depositary or its nominee, (iii) shall be held by the Trustee as custodian for the Depositary
or pursuant to the Depositary’s instruction and (iv) shall bear a legend substantially to the
following effect: “Except as otherwise provided in Section 2.10 of the Indenture, this Security may
be transferred, in whole but not in part, only to another nominee of the Depositary or to a
successor Depositary or to a nominee of such successor Depositary.”

          (b) Notwithstanding the provisions of Section 2.05, the Global Security of a series may be
transferred, in whole but not in part and in the manner provided in Section 2.05, only to another
nominee of the Depositary for such series, or to a successor Depositary for such series selected or
approved by the Corporation or to a nominee of such successor Depositary.

          (c) If at any time the Depositary for a series of the Debt Securities notifies the Corporation
that it is unwilling or unable to continue as Depositary for such series or if at any time the
Depositary for such series shall no longer be registered or in good standing under the Exchange
Act, or other applicable statute or regulation, and a successor Depositary for such series is not
appointed by the Corporation within 90 days after the Corporation receives such notice or becomes
aware of such condition, as the case may be, or if an Event of Default has occurred and is
continuing and the Corporation has received a request from the Depositary, this Section 2.10 shall
no longer be applicable to the Securities of such series and the Corporation will execute, and
subject to Section 2.03, the Trustee will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in an aggregate
principal amount equal to the principal amount of the Global Security of such series in exchange
for such Global Security upon the instruction of the Depositary. In addition, the Corporation may
at any time determine that the Debt Securities of any series shall no longer be represented by a
Global Security and that the provisions of this Section 2.10 shall no longer apply to the Debt
Securities of such series. In such event the Corporation will execute and, subject to Section
2.03, the Trustee, upon receipt of an Officers’ Certificate evidencing such determination by the
Corporation, will authenticate and deliver the Debt Securities of
such series in definitive
registered form without coupons, in authorized denominations, and in an aggregate principal amount
equal to the principal amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Securities in

 

17

 definitive registered
form without coupons, in authorized denominations, the Global Security shall be canceled by the
Trustee. Such Debt Securities in definitive registered form issued in exchange for the Global
Security pursuant to this Section 2.10(c) shall be registered in such
names and in such authorized denominations as the Depositary, pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Debt Securities to the Depositary for delivery to the Persons in whose names such
Securities are so registered.

Section 2.11 CUSIP Numbers.

     The Corporation, in issuing the Debt 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 Debt 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 Debt Securities, and any such redemption shall not be affected by any defect in or omission of
such numbers. The Corporation will promptly notify the Trustee in writing of any change in the
CUSIP numbers.

ARTICLE 3

REDEMPTION OF DEBT SECURITIES

Section 3.01 Redemption of Debt Securities; Applicability of Article.

     Redemption of Debt Securities of any series as permitted or required by the terms thereof
shall be made in accordance with such terms and this Article; provided, however, that if any
provision of any series of Debt Securities shall conflict with any provision of this Article, the
provision of such series of Debt Securities shall govern.

     The notice date for a redemption of Debt Securities shall mean the date on which notice of
such redemption is given in accordance with the provisions of Section 3.02 hereof.

Section 3.02 Notice of Redemption; Selection of Debt Securities.

     The election of the Corporation to redeem any Debt Securities shall be evidenced by an
Officers’ Certificate. In case the Corporation shall desire to exercise the right to redeem all,
or, as the case may be, any part, of a series of Debt Securities pursuant to the terms and
provisions applicable to such series, it shall fix a Redemption Date and shall send or cause to be
sent a notice of such redemption at least 30 and not more than 60 days prior to the Redemption Date
to the Holders of the Debt Securities of such series to be redeemed as a whole or in part, at their
last addresses as the same appear on the Debt Security Register. Any notice that is sent in the
manner herein provided shall be conclusively presumed to have been duly given, whether or not the
Holder shall have received such notice. In any case, failure to give notice, or any defect in the
notice to the Holder of any Debt Security of a series designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any other Debt Security
of such series.

 

18

     Each such notice of redemption shall specify the provisions of such Debt Securities under
which such redemption is made, that the conditions precedent, if any, to such redemption have
occurred, shall describe the same and the Redemption Date, the Redemption Price, the Place of
Payment, that payment will be made upon presentation and surrender of such Debt Securities,
that interest and Additional Amounts, if any, accrued to the Redemption Date will be paid as
specified in said notice, and that on and after said date interest, if any, thereon or on the
portions thereof to be redeemed will cease to accrue. In case any Debt Security is to be redeemed
in part only, the notice of redemption shall state the portion of the principal amount thereof to
be redeemed and shall state that upon surrender of such Debt Security, a new Debt Security or Debt
Securities in principal amount equal to the unredeemed portion thereof will be issued of the same
series.

     Not later than 11:00 A.M. New York City time on the Redemption Date specified in the notice of
redemption given for Debt Securities, the Corporation will deposit immediately available funds for
the redemption of any Debt Security (or any portion thereof) called for redemption with the Trustee
or with one or more Paying Agents an amount of money sufficient to redeem on the Redemption Date
all the Debt Securities or portions of Debt Securities so called for redemption at the Redemption
Price, together with interest, if any, and Additional Amounts, if any, accrued to the Redemption
Date. The Corporation will give the Trustee notice of each redemption at least 45 days but not
more than 60 days prior to the Redemption Date (unless a shorter notice is acceptable to the
Trustee) as to the aggregate principal amount of Debt Securities to be redeemed.

     If fewer than all of the Debt Securities of a series are to be redeemed, the Trustee shall
select, pro rata or by lot or in such other manner as it shall deem reasonable and fair, the
numbers of the Debt Securities to be redeemed in whole or in part.

Section 3.03 Payment of Debt Securities Called for Redemption.

     If notice of redemption has been given as above provided, the Debt Securities or portions of
Debt Securities with respect to which such notice has been given shall become due and payable on
the date and at the Place of Payment stated in such notice at the Redemption Price, together with
interest, if any, and Additional Amounts, if any, accrued to the Redemption Date, and on and after
said date (unless the Corporation shall default in the payment of such Debt Securities at the
Redemption Price, together with interest, if any, and Additional Amounts, if any, accrued to said
date) interest on the Debt Securities or portions of Debt Securities so called for redemption shall
cease to accrue. On presentation and surrender of such Debt Securities subject to redemption at
said Place of Payment in said notice specified, the said Debt Securities or the specified portions
thereof shall be paid and redeemed by the Corporation at the Redemption Price, together with
interest, if any, and Additional Amounts, if any, accrued thereon to the Redemption Date.
Interest, if any, and Additional Amounts, if any, maturing on or prior to the Redemption Date shall
continue to be payable (but without interest thereon unless the Corporation shall default in
payment thereof) to the Holders thereof registered as such on the Debt Security Register on the
relevant record date subject to the terms and provisions of Section 2.04. At the option of the
Corporation, payment may be made by check to (or to the order of) the Holders of the Debt
Securities or other persons entitled thereto against presentation and surrender of such Debt
Securities.

 

19

     Upon presentation of any Debt Security redeemed in part only, the Corporation shall execute,
and the Trustee shall authenticate and deliver to the Holder thereof, at the expense of the
Corporation, a new Debt Security or Debt Securities, of authorized denominations, in aggregate
principal amount equal to the unredeemed portion of the Debt Security so presented of the same
series; except that if a Global Security is so surrendered, the Corporation shall execute, and the
Trustee shall authenticate and deliver to the Depositary for such Global Security, without service
charge, a new Global Security in a denomination equal to and in exchange for the unredeemed portion
of the principal of the Global Security so surrendered. In the case of a Debt Security providing
appropriate space for such notation, at the option of the Holder thereof, the Trustee, in lieu of
delivering a new Debt Security or Debt Securities as aforesaid, may make a notation on such Debt
Security of the payment of the redeemed portion thereof.

ARTICLE 4

COVENANTS OF THE CORPORATION

Section 4.01 Payment of Principal, Premium, Interest and Additional Amounts.

     The Corporation shall duly and punctually pay or cause to be paid the principal of (and
premium, if any), interest, if any, and Additional Amounts, if any, on each of the Debt Securities
at the place, at the respective times and in the manner provided in the terms of the Debt
Securities and in this Indenture. The interest on Debt Securities (other than a Global Security)
(together with any Additional Amounts) shall be payable only to the Holders thereof and at the
option of the Corporation may be paid by: (i) mailing checks for such interest payable to or upon
the order of such Holders at their last addresses as they appear on the Debt Security Register for
such Debt Securities; or (ii) in the case of Holders of U.S. $10,000,000 or more in aggregate
principal amount of such Debt Securities, by wire transfer of immediately available funds, but only
if the Trustee has received wire transfer instructions in writing not less than 15 days prior to
the applicable Interest Payment Date. Notwithstanding the foregoing, so long as the Debt Securities
of a series are registered in the name of a Depositary or its nominee, all payments hereon
shall be made by wire transfer in immediately available funds to the account of the Depositary or
Wells Fargo Bank, National Association.

Section 4.02 Offices for Notices and Payments, etc.

     As long as any of the Debt Securities of a series remain outstanding, and only if required by
the relevant regulatory body, the Corporation shall designate and maintain an office or agency
where the Debt Securities of such series may be presented for registration of transfer and for
exchange as provided in this Indenture, an office or agency where notices and demands to or upon
the Corporation in respect of the Debt Securities of such series or of this Indenture may be
served, and an office or agency where the Debt Securities of such series may be presented for
payment. The Corporation shall give to the Trustee notice of the location of each such office or
agency and of any change in the location thereof. In case the Corporation shall fail to maintain
any such office or agency or shall fail to give such notice of the location or of any change in the
location thereof, presentations may be made and notices and demands may be served at the Corporate
Trust Office of the Trustee and the Corporation hereby appoints the Trustee as its agent to receive
all such presentations, notices and demands.

 

20

     The Corporation hereby initially designates Wells Fargo Bank, National Association, located at
its office at Wells Fargo Bank, National Association
Corporate Trust Services
MAC N9311-110
625 Marquette Avenue
Minneapolis, MN 55479, as the Security Registrar and as the office or agency of the Corporation
where the Debt Securities may be presented for payment and for registration of transfer and for
exchange as in this Indenture provided and where notices and demands to or upon the Corporation in
respect of the Debt Securities of any series or of this Indenture may be served.

Section 4.03 Provisions as to Paying Agent.

     (a) Whenever the Corporation shall appoint a paying agent other than the Trustee with respect
to the Debt Securities of any series, it will cause such paying agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions
of this Section:

	 	(1)	 	that it will hold sums held by it as such agent for the payment
of the principal of (and premium, if any), interest, if any, or Additional
Amounts, if any, on the Debt Securities of such series in trust for the benefit
of the Holders of the Debt Securities of such series, as the case may be,
entitled thereto and will notify the Trustee of the receipt of sums to be so
held;
	 
	 	(2)	 	that it will give the Trustee notice of any failure by the
Corporation (or by any other obligor on the Debt Securities of such series) to
make a payment of the principal of (or premium, if any), interest, if any, or
Additional Amounts, if any, on the Debt Securities of such series when the same
shall be due and payable; 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.

     (b) If the Corporation shall act as its own paying agent, it will, on or before each due date
of the principal of (and premium, if any), interest, if any, or Additional Amounts, if any, on the
Debt Securities of any series set aside, segregate and hold in trust for the benefit of the Holders
of the Debt Securities of such series entitled thereto a sum sufficient to pay such principal (and
premium if any), interest, if any, or Additional Amounts, if any, so becoming due. The Corporation
will promptly notify the Trustee in writing of any failure to take such action.

     (c) Anything in this Section to the contrary notwithstanding, the Corporation may, at any
time, for the purpose of obtaining a satisfaction and discharge with respect to one or more or all
series of Debt Securities hereunder, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust for such series by it or any paying agent hereunder as required by
this Section, such sums to be held by the Trustee upon the trusts herein contained.

 

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     (d) Anything in this Section to the contrary notwithstanding, the agreement to hold sums in
trust as provided in this Section, is subject to the provisions of Sections 12.04 and 12.05.

Section 4.04 Statement by Officers as to Default.

     (a) The Corporation shall deliver to the Trustee, within 90 days after the end of each fiscal
year, commencing with the fiscal year ending December 31, 2009 an Officers’ Certificate stating
that a review of the activities of the Corporation and its Subsidiaries during the preceding fiscal
year has been made under the supervision of the signing Officers with a view to determining whether
the Corporation has kept, observed, performed and fulfilled its obligations under this Indenture,
and further stating, as to each such Officer signing such certificate, that, in their capacities as
Officers, to the best of his or her knowledge the Corporation has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in Default in the
performance or observance of any of the terms, provisions and conditions of this Indenture (or, if
a Default or Event of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Corporation is taking or proposes
to take with respect thereto) and that to the best of his or her knowledge no event has occurred
and remains in existence by reason of which payments on account of the principal of or interest, if
any, on the Debt Securities is prohibited or if such event has occurred, a description of the event
and what action the Corporation is taking or proposes to take with respect thereto.

     (b) The Corporation shall, so long as any of the Debt Securities are outstanding, deliver to
the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what action the Corporation
is taking or proposes to take with respect thereto.

ARTICLE 5

SECURITYHOLDER LISTS AND REPORTS BY THE

CORPORATION AND THE TRUSTEE

Section 5.01 Securityholder Lists.

     The Corporation covenants and agrees that it will furnish or cause to be furnished to the
Trustee with respect to the Debt Securities of each series:

     (a) semiannually, not later than 7 business days prior to each Interest Payment Date (in the
case of any series having semiannual Interest Payment Dates) or not later than the dates determined
pursuant to Section 2.01 (in the case of any series not having semiannual Interest Payment Dates) a
list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders
of Debt Securities of such series as of the Regular Record Date (or as of such other date as may be
determined pursuant to Section 2.01 for such series) therefor, and

     (b) at such other times as the Trustee may request in writing within 10 days after receipt by
the Corporation of any such request, a list in such form as the Trustee may reasonably require of
the names and addresses of the Holders of Debt Securities of a particular series specified by the
Trustee as of a date not more than 15 days prior to the time such information is furnished;

 

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provided, however, that if and so long as the Trustee shall be the Security Registrar, such list
shall not be required to be furnished.

Section 5.02 Preservation and Disclosure of Lists.

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

          Holders may communicate pursuant to Section 312(b) of the Trust Indenture Act with other
Holders with respect to its rights under this Indenture or the Notes. The Corporation, the
Trustee, the Registrar and anyone else shall have the protection of Section 312(c) of the Trust
Indenture Act.

          Each and every Holder of Debt Securities, by receiving and holding the same, agrees with the
Corporation and the Trustee that neither the Corporation nor the Trustee nor any agent of the
Corporation or of the Trustee shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of Debt Securities in accordance with the
provisions of subsection (b) of this Section, 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 said subsection (b).

Section 5.03 Reports by the Corporation.

     The Corporation covenants:

     (a) to file with the Trustee within 15 days after the Corporation is required to file the same
with the Commission, copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission may from time to time
by rules and regulations prescribe) which the Corporation may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as
amended; or, if the Corporation is not required to file information, documents or reports pursuant
to either of such sections, then to 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, as amended, 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;

     (b) to file with the Trustee and the Commission, in accordance with the rules and regulations
prescribed from time to time by the Commission, such additional information, documents, and reports
with respect to compliance by the Corporation with the conditions and

 

23

covenants provided for in
this Indenture as may be required from time to time by such rules and regulations; and

     (c) to transmit by mail to all the Holders of Debt Securities of each series, as the names and
addresses of such Holders appear on the Debt Security Register, within 30 days after the filing
thereof with the Trustee, such summaries of any information, documents and reports required to be
filed by the Corporation with respect to each such series pursuant to subsections (a) and (b) of
this Section as may be required by rules and regulations prescribed from time to time by the
Commission.

Section 5.04 Reports by the Trustee.

     (a) Within 60 days after each January 31, beginning with the first January 31 following the
date of this Indenture, and in any event on or before April 1 in each year, so long as any Debt
Securities of any series are outstanding hereunder, the Trustee shall transmit by mail to the
Holders of Debt Securities of such series a brief report dated as of January 31 that complies with
Trust Indenture Act Section 313(a); provided however, that if no event described in Trust Indenture
Act Section 313(a) has occurred within the 12 months preceding the reporting date, no report need
be transmitted. The Trustee shall also comply with Trust Indenture Act Section 313(b).

     (b) A copy of each such report shall, at the time of such transmission to Holders of Debt
Securities of a particular series, be filed by the Trustee with each stock exchange upon which the
Debt Securities of such series are listed (if any) and also with the Commission. The Corporation
agrees to notify the Trustee in writing when and as the Debt Securities of any series become listed
on any stock exchange and any delisting thereof.

ARTICLE 6

REMEDIES ON DEFAULT

Section 6.01 Events of Default.

     In case one or more of the following shall have occurred and be continuing with respect to a
particular series of Debt Securities (each of the following, an “Event of Default”):

     (a) default in the payment of the principal of (or premium, if any, on) any of the Debt
Securities of such series as and when the same shall become due and payable either at maturity,
upon redemption, by declaration or otherwise whether or not such payment shall be prohibited by
Article Seventeen, if applicable;

     (b) default in the payment of any installment of interest, if any, or in the payment of any
Additional Amounts upon any of the Debt Securities of such series as and when the same shall become
due and payable, whether or not such payment shall be prohibited by Article Seventeen, if
applicable, and continuance of such default for a period of 30 days after written notice from the
Trustee;

     (c) failure on the part of the Corporation duly to observe or perform any other of the
covenants or agreements on the part of the Corporation applicable to such series of the Debt

 

24

Securities or contained in this Indenture for a period of 90 days after the date on which written
notice of such failure, requiring the Corporation to remedy the same, shall have been given to the
Corporation by the Trustee, or to the Corporation and the Trustee by the Holders of at least
25% in aggregate principal amount of the Debt Securities of such series at the time outstanding;

     (d) default by the Corporation or any Significant Subsidiary in any payment of $10,000,000 or
more of principal of or interest on any notes, bonds, debentures and other similar evidences of
indebtedness for money borrowed, or in the payment of $10,000,000 or more on account of any
guarantee in respect of any notes, bonds, debentures and other similar evidences of indebtedness
for money borrowed, beyond any period of grace that may be provided in the instrument or agreement
under which such notes, bonds, debentures and other similar evidences of indebtedness for money
borrowed or guarantee was created;

     (e) a court of competent jurisdiction enters a decree or order for relief in respect of the
Corporation in an involuntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or appoint a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Corporation 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, undismissed and unbonded and in effect for a period of 90 days; or

     (f) the Corporation 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 an 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 Corporation or for a substantial part of its property, or shall make any
general assignment for the benefit of creditors,

then if an Event of Default described in clause (a), (b) or (c) shall have occurred and be
continuing, and in each and every such case, unless the principal amount of all the Debt Securities
of such series shall have already become due and payable, either the Trustee or the Holders of not
less than 25% in aggregate principal amount of the Debt Securities of all series affected thereby
then outstanding hereunder, by notice in writing to the Corporation (and to the Trustee if given by
Holders of such Debt Securities) may declare the principal amount of all the Debt Securities not
already due and payable (or, with respect to Original Issue Discount Securities, such lesser amount
as may be specified in the terms of such Debt Securities) of the series affected thereby to be due
and payable immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, any provision of this Indenture or the Debt Securities of such series
to the contrary notwithstanding, or, if an Event of Default described in clause (d), (e) or (f)
shall have occurred and be continuing, and in each and every such case, either the Trustee or the
Holders of not less than 25% in aggregate principal amount of all the Debt Securities then
outstanding hereunder (voting as one class), by notice in writing to the Corporation (and to the
Trustee if given by Holders of securities), may declare the principal of all the Debt Securities
not already due and payable (or, with respect to Original Issue Discount Securities, such lesser
amount as may be specified in the terms of such Debt Securities) to be due and payable immediately,
and upon any such declaration the same shall become and shall be immediately due and payable, any
provision in this Indenture or in the Debt Securities to the contrary notwithstanding. The
foregoing provisions, however, are subject to the conditions that if, at any time after the
principal of the Debt Securities of any one or more or all series, as the

 

25

case may be, shall have
been so declared due and payable, and before any judgment or decree for the payment of the monies
due shall have been obtained or entered as hereinafter provided, the
Corporation shall pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest, if any, and all Additional Amounts, if any, due upon all the Debt
Securities of such series or of all the Debt Securities, as the case may be, and the principal of
(and premium, if any, on) all Debt Securities of such series or of all the Debt Securities, as the
case may be (or, with respect to Original Issue Discount Securities, such lesser amount as may be
specified in the terms of such Debt Securities), which shall have become due otherwise than by
acceleration (with interest, if any, upon such principal and premium, if any, and, to the extent
that payment of such interest is enforceable under applicable law, on overdue installments of
interest and Additional Amounts, if any, at the same rate as the rate of interest specified in the
Debt Securities of such series, as the case may be (or, with respect to Original Issue Discount
Securities, at the rate specified in the terms of such Debt Securities for interest on overdue
principal thereof upon maturity, redemption or acceleration of such series, as the case may be), to
the date of such payment or deposit), and such amount as shall be payable to the Trustee pursuant
to Section 7.06, and any and all defaults under the Indenture shall have been remedied, then and in
every such case the Holders of a majority in aggregate principal amount of the Debt Securities of
such series (or of all the Debt Securities, as the case may be) then outstanding, by written notice
to the Corporation
 and to the Trustee, may waive all defaults with respect to that series or with
respect to all Debt Securities, as the case may be, and rescind and annul such declaration and its
consequences; but no such waiver or rescission and annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon. If the principal of all Debt
Securities shall have been declared to be payable pursuant to this Section 6.01, in determining
whether the Holders of a majority in aggregate principal amount thereof have waived all defaults
and rescinded and annulled such declaration, all series of Debt Securities shall be treated as a
single class and the principal amount of Original Issue Discount Securities shall be deemed to be
the amount declared payable under the terms applicable to such Original Issue Discount Securities.

     In case the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such rescission and annulment or
for any other reason or shall have been determined adversely to the Trustee, then and in every such
case the Corporation, Trustee and the Holders of Debt Securities, as the case may be, shall be
restored respectively to their former positions and rights hereunder, and all rights, remedies and
powers of the Corporation, the Trustee and the Holders of Debt Securities, as the case may be,
shall continue as though no such proceedings had been taken.

Section 6.02 Payment of Debt Securities on Default; Suit Therefor.

     The Corporation covenants that: (i) in case default shall be made in the payment of any
installment of interest, if any, on any of the Debt Securities of any series or any Additional
Amounts payable in respect of any of the Debt Securities of any series, as and when the same shall
become due and payable, and such default shall have continued for a period of 30 days; or (ii) in
case default shall be made in the payment of the principal of (or premium, if any, on) any of the
Debt Securities of any series, as and when the same shall have become due

 

26

and payable, whether upon
maturity of such series or upon redemption or upon declaration or otherwise, then upon demand of
the Trustee, the Corporation shall pay to the Trustee, for the benefit of the Holders of the Debt
Securities of such series, the whole amount that then shall have become due and payable on all such
Debt Securities of such series for principal (and premium, if any) or interest, if any, or
Additional Amounts, if any as the case may be, with interest upon the overdue
principal (and premium, if any) and (to the extent that payment of such interest is
enforceable under applicable law) upon overdue installments of interest, if any, and Additional
Amounts, if any, at the same rate as the rate of interest specified in the Debt Securities of such
series (or, with respect to Original Issue Discount Securities, at the rate specified in the terms
of such Debt Securities for interest on overdue principal thereof upon maturity, redemption or
acceleration); and, in addition thereto, such further amounts as shall be payable pursuant to
Section 7.06.

     In case the Corporation shall fail forthwith to pay such amounts upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to
institute any action or proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may
enforce any such judgment or final decree against the Corporation or other obligor upon such Debt
Securities and collect in the manner provided by law out of the property of the Corporation or
other obligor upon such Debt Securities wherever situated the monies adjudged or decreed to be
payable.

     In case there shall be pending proceedings for the bankruptcy or for the reorganization of the
Corporation or any other obligor upon Debt Securities of any series under Title 11 of the United
States Code or any other applicable law, or in case a receiver or trustee shall have been appointed
for the property of the Corporation or such other obligor, or in case of any other judicial
proceedings relative to the Corporation or such other obligor, or to the creditors or property of
the Corporation or such other obligor, the Trustee, irrespective of whether the principal of the
Debt Securities of such series 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 pursuant to the
provisions of this Section, shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of principal (or, with respect
to Original Issue Discount Securities, such portion of the principal amount as may be specified in
the terms of that series), and premium, if any, interest, if any, and Additional Amounts, if any,
owing and unpaid in respect of the Debt Securities of such series, and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee under Section
7.06 and of the Holders of the Debt Securities of such series allowed in any such judicial
proceedings relative to the Corporation or other obligor upon the Debt Securities of such series,
or to the creditors or property of the Corporation or such other obligor, and to collect and
receive any monies or other property payable or deliverable on any such claims, and to distribute
all amounts received with respect to the claims of the Securityholders of such series and of the
Trustee on their behalf; and any receiver, assignee or trustee in bankruptcy or reorganization is
hereby authorized by each of the Holders of the Debt Securities of such series to make payments to
the Trustee and, in the event that the Trustee shall consent to the making of payments directly to
the Securityholders of such series, to pay to the Trustee such amount as shall be sufficient to
cover compensation to the Trustee, its agents, attorneys and counsel, and all other reasonable
expenses and liabilities incurred, and all advances made, by the Trustee except as a result of its
negligence or bad faith.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,

 

27

adjustment or
composition affecting the Debt Securities or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

     All rights of action and of asserting claims under this Indenture, or under any of the Debt
Securities, may be enforced by the Trustee without the possession of any of the Debt Securities, or
the production thereof in any trial or other proceedings relative thereto, and any such action or
proceedings instituted by the Trustee shall be brought in its own name and as trustee of an express
trust, and any recovery of judgment shall be for the ratable benefit of the Holders of the Debt
Securities.

     In case of a default hereunder the Trustee may in its discretion proceed to protect and
enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power granted in this
Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture
or by law.

Section 6.03 Application of Monies and Property Collected by Trustee.

     Any monies and property collected by the Trustee pursuant to Section 6.02 with respect to Debt
Securities of any series shall be applied, after giving effect to the provisions of Article
Seventeen, if applicable, in the following order, at the date or dates fixed by the Trustee and, in
case of the distribution of such monies or property on account of principal (or premium, if any) or
interest, if any, upon presentation of the several Debt Securities in respect of which monies and
property have been collected, and stamping thereon the payment, if only partially paid, and upon
surrender thereof, if fully paid:

     FIRST: To the payment of the amounts payable to the Trustee pursuant to Section 7.06;

     SECOND: In case the principal of the Debt Securities in respect of which monies have been
collected shall not have become due, to the payment of interest, if any, and Additional Amounts, if
any, on the Debt Securities of such series in the order of the maturity of the installments of such
interest, with interest (to the extent that such interest has been collected by the Trustee) upon
the overdue installments of interest and Additional Amounts, if any, at the same rate as the rate
of interest, if any, specified in the Debt Securities of such series (or, with respect to Original
Issue Discount Securities, at the rate specified in the terms of such Debt Securities for interest
on overdue principal thereof upon maturity, redemption or acceleration), such payments to be made
ratably to the persons entitled thereto, without discrimination or preference;

     THIRD: In case the principal of the Debt Securities in respect of which monies have been
collected shall have become due, by declaration or otherwise, to the payment of the whole amount
then owing and unpaid upon the Debt Securities of such series for principal (and premium, if any),
interest, if any, and Additional Amounts, if any, and (to the extent that such interest has been
collected by the Trustee) upon overdue installments of interest, if any, and Additional Amounts, if
any, at the same rate as the rate of interest specified in the Debt Securities of such series (or,
with respect to Original Issue Discount Securities, at the rate

 

28

 specified in the terms of such Debt
Securities for interest on overdue principal thereof upon maturity, redemption or acceleration);
and in case such monies shall be insufficient to pay in full the whole amount so due and unpaid
upon the Debt Securities of such series, then to the payment
of such principal (and premium, if any), interest, if any, and Additional Amounts, if any, without
preference or priority of principal (and premium, if any), over interest, if any, and Additional
Amounts, if any, or of interest, if any, and Additional Amounts, if any, over principal (and
premium, if any), or of any installment of interest, if any, or Additional Amounts, if any, over
any other installment of interest, if any, or Additional Amounts, if any, or of any Debt Security
of such series over any other Debt Security of such series, ratably to the aggregate of such
principal (and premium, if any), and accrued and unpaid interest, if any, and Additional Amounts,
if any; and

     FOURTH: To the Corporation in the event any amounts remain after the foregoing payments are
made.

Section 6.04 Proceedings by Securityholders.

     No Holder of any Debt Security of any series shall have any right by virtue or by availing of
any provision of this Indenture to institute any action or proceedings at law or in equity or in
bankruptcy or otherwise, upon or under or with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder, unless such Holder previously shall have
given to the Trustee written notice of default and of the continuance thereof, as hereinbefore
provided, and unless also the Holders of not less than 25% in aggregate principal amount of the
Debt Securities of such series then outstanding or, in the case of any Event of Default described
in clause (d) or (e) of Section 6.01, 25% in aggregate principal amount of all the Debt Securities
at the time outstanding (voting as one class) shall have made written request upon the Trustee to
institute such action or proceedings in its own name as Trustee hereunder and shall have offered to
the Trustee such indemnity as it may require against the costs, expenses and liabilities to be
incurred therein or thereby, and the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity shall have failed to institute any such action or proceedings and no
direction inconsistent with such written request shall have been given to the Trustee pursuant to
Section 6.06; it being understood and intended and being expressly covenanted by the taker and
Holder of every Debt Security with every other taker and Holder and the Trustee, that no one or
more Holders of Debt Securities shall have any right in any manner whatever by virtue of or by
availing himself, herself or itself of any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holder of Debt Securities or to obtain or seek to obtain priority
over or preference to any other such Holder or to enforce any right under this Indenture, except in
the manner herein provided and for the equal, ratable and common benefit of all Holders of Debt
Securities. For the protection and enforcement of the revisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in
equity.

     Notwithstanding any other provisions in this Indenture, however, the right of any Holder of
any Debt Security to receive payment of the principal of (and premium, if any) and interest, if
any, and Additional Amounts, if any, on such Debt Security, on or after the respective due dates
expressed in such Debt Security, or to institute suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the consent of such

 

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Holder.
With respect to original Issue Discount Debt Securities, principal shall mean such amount as shall
be due and payable as may be specified in the terms of such Debt Securities.

Section 6.05 Remedies Cumulative and Continuing.

     All powers and remedies given by this Article Six to the Trustee or to the Holders of Debt
Securities shall, to the extent permitted by law, be deemed cumulative and not exclusive of any
thereof or of any other powers and remedies available to the Trustee or the Holders of Debt
Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of
any Holder of any of the Debt Securities to exercise any right or power accruing upon any default
occurring and continuing as aforesaid shall impair any such right or power or shall be construed to
be a waiver of any such default or an acquiescence therein; and, subject to the provisions of
Section 6.04, every power and remedy given by this Article Six or by law to the Trustee or to the
Holders of Debt Securities may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Holders of Debt Securities.

Section 6.06 Direction of Proceedings.

     The Holders of a majority in aggregate principal amount of the Debt Securities of any or all
series affected (voting as one class) at the time outstanding 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; provided, however, that: (i) such direction
shall not be in conflict with any rule of law or with this Indenture; (ii) the Trustee may take any
other action deemed proper by the Trustee that is not inconsistent with such direction; and (iii)
the Trustee shall have the right to decline to follow any such direction if the Trustee, being
advised by counsel, determines that the action or proceedings so directed would be prejudicial to
the Holders not joining in such direction or may not lawfully be taken or if the Trustee in good
faith by a trust committee of responsible officers shall determine that the action or proceedings
so directed would involve the Trustee in personal liability.

     Prior to any declaration accelerating the maturity of the Debt Securities of any series, the
holders of a majority in aggregate principal amount of the Debt Securities of such series at the
time outstanding may on behalf of the Holders of all of the Debt Securities of such series waive
any past default or Event of Default hereunder and its consequences, except a default in the
payment of principal of (premium, if any) or interest, if any, or Additional Amounts, if any, on
any Debt Securities of such series or in respect of a covenant or provision hereof that may not be
modified or amended without the consent of the Holders of each outstanding Debt Security of such
series affected. Upon any such waiver the Corporation, the Trustee and the Holders of the Debt
Securities of such series shall be restored to their former positions and rights hereunder,
respectively, but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder
shall have been waived as permitted by this Section 6.06, said default or Event of Default shall
for all purposes of the Debt Securities of such series and this Indenture be deemed to have been
cured and to be not continuing.

 

30

Section 6.07 Notice of Defaults.

     The Trustee shall, within 90 days after the occurrence of a default with respect to the Debt
Securities of any series (of which it has actual knowledge per Section 7.02(h)), give notice of all
defaults with respect to that series known to the Trustee to all Holders of then outstanding
Debt Securities of that series, by sending such notice to such Holders at their addresses as
they shall appear on the Debt Security Register, unless in each case such defaults shall have been
cured before the sending or publication of such notice (the term “defaults” for the purpose of this
Section being hereby defined to be the events specified in Sections 6.01(a), (b), (c), (d) and (e)
and any additional events specified in the terms of any series of Debt Securities pursuant to
Section 2.01, not including periods of grace, if any, provided for therein, and irrespective of the
giving of written notice specified in Section 6.01 (c) or in the terms of any Debt Securities
established pursuant to Section 2.01); and provided that, except in the case of default in the
payment of the principal of (premium, if any), interest, if any, or Additional Amounts, if any, on
any of the Debt Securities of such series, the Trustee shall be protected in withholding such
notice if and so long as a trust committee of responsible officers of the Trustee in good faith
determines that the withholding of such notice is in the interests of the Holders of the Debt
Securities of such series.

Section 6.08 Undertaking to Pay Costs.

     All parties to this Indenture agree, and each Holder of any Debt Security by his, her or its
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; provided that, the provisions of this Section shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholders of any series, or
group of such Securityholders, holding in the aggregate more than ten percent in aggregate
principal amount of all Debt Securities (voting as one class) or to any suit instituted by any
Securityholders for the enforcement of the payment of the principal of (or premium, if any),
interest, if any, or Additional Amounts, if any, on any Debt Security on or after the due date
expressed in such Debt Security.

ARTICLE 7

CONCERNING THE TRUSTEE

Section 7.01 Duties and Responsibilities of Trustee.

     The Trustee, prior to the occurrence of an Event of Default of a particular series and after
the curing of all Events of Default of such series that may have occurred, undertakes to perform
such duties and only such duties as are specifically set forth in this Indenture. In case an Event
of Default with respect to a particular series has occurred (which has not been cured) the Trustee
shall exercise such of the rights and powers vested in it, by this Indenture, and use the same
degree of care and skill in its exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

 

31

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

     (a) prior to the occurrence of an Event of Default with respect to a particular series and
after the curing of all Events of Default with respect to such series that may have occurred:

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

     (b) the Trustee shall not be liable for any error of judgment made in good faith by a
responsible officer or officers, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; and

     (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the Holders of Debt Securities pursuant to
Section 6.06 relating to the time, method and place, of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture.

     No provision of this Indenture shall be construed as requiring the Trustee to expend or risk
its own funds or otherwise to incur any personal financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if there shall be
reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it.

Section 7.02 Reliance on Documents, Opinions, etc.

     Subject to the provisions of Section 7.01:

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

 

32

     (b) any request, direction, order or demand of the Corporation mentioned herein shall be
sufficiently evidenced by an instrument signed in the name of the Corporation by the President and
Chief Executive Officer or the Chief Financial Officer or any Vice President and by the Secretary
or any Assistant Secretary (unless other evidence in respect thereof be herein specifically
prescribed) and a Board Resolution may be evidenced to the Trustee by a copy thereof certified by
the Secretary or any Assistant Secretary of the Corporation;

     (c) the Trustee may consult with counsel and any advice or Opinion of Counsel shall be full
and complete authorization and protection in respect of any action taken or suffered by it
hereunder in good faith and in accordance with such advice or Opinion of Counsel;

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

     (e) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, 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 relevant books, records and premises of the Corporation, personally or by
agent or attorney;

     (f) 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 shall not be responsible for
any misconduct or negligence on the part of any agent or attorney appointed with due care;

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

     (h) the Trustee shall not be deemed to have notice or be charged with knowledge of any default
or Event of Default unless a Trust Officer of the Trustee shall have received from the Corporation
or any other obligor upon the Notes or from any Holder written notice thereof at its Corporate
Trust Office, and such notice references the Notes and this Indenture. In the absence of any such
notice, the Trustee may conclusively assume that no such default of Event of Default exists;

     (i) 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, including the Trustee’s officers,
directors, agents and employees and each agent, custodian and other Person employed to act
hereunder. Such rights, privileges, protections, immunities and benefits, including, without
limitation, the right to indemnification, together with the Trustee’s right to compensation and

 

33

reimbursement expenses, shall survive the Trustee’s resignation or removal and final payment
of the Debt Securities; and

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

Notwithstanding anything in this Indenture, in no event shall the Trustee, any paying agent, any
conversion agent or any registrar for a series of Debt Securities be liable under or in connection
with this Indenture for indirect, special, incidental, punitive or consequential losses or damages
of any kind whatsoever, including but not limited to lost profits, whether or not foreseeable, even
if the Trustee, the paying agent, the conversion agent or the registrar of the applicable series of
debt securities has been advised of the possibility thereof and regardless of the form of action in
which such damages are sought; provided that the paying agent, the conversion agent or the
registrar of the applicable series of Debt Securities is not the Corporation or any of its
Subsidiaries.

Section 7.03 No Responsibility for Recitals, etc.

     The recitals contained herein and in the Debt Securities, other than the Trustee’s certificate
of authentication, shall be taken as the statements of the Corporation, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no representations as to the
validity or sufficiency of this Indenture or of the Debt Securities, provided that the Trustee
shall not be relieved of its duty to authenticate Debt Securities only as authorized by this
Indenture. The Trustee shall not be accountable for the use or application by the Corporation of
Debt Securities or the proceeds thereof.

Section 7.04 Ownership of Debt Securities.

     The Trustee or any agent of the Corporation or of the Trustee, in its individual or any other
capacity, may become the owner or pledgee of Debt Securities with the same rights it would have if
it were not Trustee, or an agent of the Corporation or of the Trustee.

Section 7.05 Monies to be Held in Trust.

     Subject to the provisions of Sections 12.04 and 12.05 hereof, all monies received by the
Trustee or any paying agent shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received but need not be segregated from other funds except to the
extent required by law. Neither the Trustee nor any paying agent shall be under any liability for
interest on any monies received by it hereunder except such as it may agree with the Corporation to
pay thereon. So long as no Event of Default shall have occurred and be continuing, all interest
allowed on any such monies shall be paid from time to time upon the written order of the
Corporation, signed by its President and Chief Executive Officer or its Chief Financial Officer or
any Vice President.

 

34

Section 7.06 Compensation and Expenses of Trustee.

     The Corporation covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, reasonable compensation, and, except as otherwise expressly provided, the
Corporation will pay or reimburse the Trustee upon its request for all expenses, disbursements and
advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation, expenses and disbursements of its counsel and of all
persons not regularly in its employ) except any such expense, disbursement or advance as may arise
from its negligence or bad faith. If any property other than cash shall at any time be subject to
the lien of this Indenture, the Trustee, if and to the extent authorized by a receivership or
bankruptcy court of competent jurisdiction or by the supplemental instrument subjecting such
property to such lien, shall be entitled to make advances for the purpose of preserving such
property or of discharging tax liens or other prior liens or encumbrances hereon. The Corporation
also covenants to indemnify the Trustee and its officers, directors, employees and agents for, and
to hold it harmless against, any loss, liability or reasonable expense incurred without negligence
or bad faith on the part of the Trustee, arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of defending itself against any
claim of liability in the premises. The obligations of the Corporation under this Section to
compensate the Trustee and to pay or reimburse the Trustee for reasonable expenses, disbursements
and advances shall constitute additional indebtedness hereunder. Such additional indebtedness
shall be secured by a lien prior to that of the Debt Securities upon all property and funds held or
collected by the Trustee as such.

Section 7.07 Officers’ Certificate as Evidence.

     Subject to the provisions of Section 7.01, whenever in the administration of the provisions of
this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering any action to be taken hereunder, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers’ Certificate delivered to the Trustee, and such Certificate, in the
absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee
for any action taken, suffered or omitted by it under the provisions of this Indenture upon the
faith thereof.

Section 7.08 Conflicting Interest of Trustee.

     The Trustee shall comply with Section 310(b) of the Trust Indenture Act of 1939.

Section 7.09 Eligibility of Trustee.

     There shall at all times be a trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States, which: (a) is authorized under such laws to
exercise corporate trust powers; (b) is subject to supervision or examination by Federal, State,
Territorial or District of Columbia authority; and (c) shall have at all times a combined capital
and surplus of not less than U.S. $50 million. If such corporation publishes reports of condition
at least annually, pursuant to law, or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section, the combined capital and surplus of

 

35

such corporation at any time shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. In case at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign
immediately in the manner and with the effect specified in Section 7.10.

Section 7.10 Resignation or Removal of Trustee.

     (a) The Trustee, or any trustee or trustees hereafter appointed, may, upon 30 days written
notice to the Corporation, at any time resign with respect to one or more or all series by giving
written notice of resignation to the Corporation. Upon receiving such notice of resignation the
Corporation shall promptly appoint a successor trustee with respect to the applicable series by
written instrument, in duplicate, executed by order of the Board of Directors of the Corporation,
one copy of which instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and have accepted
appointment within 30 days after the sending of such notice of resignation to the Securityholders,
the resigning Trustee may petition any court of competent jurisdiction for the appointment of a
successor trustee, or any Securityholder who has been a bona fide Holder of a Debt Security or Debt
Securities of the applicable series for at least six months may, subject to the provisions of
Section 6.08, on behalf of himself, herself or itself and all others similarly situated, petition
any such court for the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

     (b) In case at any time any of the following shall occur:

	 	(i)	 	the Trustee shall fail to comply with Section 7.08 with respect
to any series of Debt Securities after written request therefor by the
Corporation or by any Securityholder who has been a bona fide Holder of a Debt
Security or Debt Securities of such series for at least six months;
	 
	 	(ii)	 	the Trustee shall cease to be eligible in accordance with the
provision of Section 7.09 with respect to any series of Debt Securities and
shall fail to resign after written request therefor by the Corporation or by
any such Securityholder; or
	 
	 	(iii)	 	the Trustee shall become incapable of acting with respect to
any series of Debt Securities, 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, the Corporation may remove the Trustee with respect to the
applicable series of Debt Securities and appoint a successor trustee with
respect to such series by written instrument, in duplicate, executed by order
of the Board of Directors of the Corporation, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
trustee, or, subject to the provisions of Section 6.08, any Securityholder of
such series who has been a bona fide Holder of a Debt Security or Debt
Securities of the applicable series for at least six months

 

36

	 	 	 	may, on behalf of himself, herself or itself and all others similarly
situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee with respect to such
series. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, remove the Trustee and appoint a successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the Debt Securities of all
series (voting as one class) at the time outstanding may at any time remove the Trustee with
respect to Debt Securities of all series and appoint a successor trustee with respect to the Debt
Securities of all series.

     (d) Any resignation or removal of the Trustee and any appointment of a successor trustee
pursuant to any of the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

Section 7.11 Acceptance by Successor Trustee.

     Any successor trustee appointed as provided in Section 7.10 shall execute, acknowledge and
deliver to the Corporation and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal the predecessor trustee with respect to all or
any applicable series shall become effective and such successor trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, duties and obligations with
respect to such series of its predecessor hereunder, with like effect as if originally named as
trustee herein; but, on the written request of the Corporation or of the successor trustee, the
trustee ceasing to act shall, upon payment of any amounts then due it pursuant to the provisions of
Section 7.06, execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee,
the Corporation shall execute any and all instruments in writing in order more fully and certainly
to vest in and confirm to such successor trustee all such rights and powers. Any trustee ceasing
to act shall, nevertheless, retain a lien upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of Section 7.06.

     In case of the appointment hereunder of a successor Trustee with respect to the Debt
Securities of one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Debt Securities of one or more series shall execute and
deliver an indenture supplemental hereto, pursuant to Article Ten hereof, 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 Debt 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 Debt 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 Debt 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

 

37

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

     No successor trustee shall accept appointment as provided in this Section unless at the time
of such acceptance such successor trustee shall be qualified under the provisions of Section 7.08
and eligible under the provisions of Section 7.09.

     Upon acceptance of appointment by a successor trustee as provided in this Section, the
Corporation shall give notice of the succession of such trustee hereunder to the Holders of Debt
Securities of each series affected, by mailing such notice to such Holders at their addresses as
they shall appear on the Debt Security Register. If the Corporation fails to mail such notice in
the prescribed manner within 10 days after the acceptance of appointment by the successor trustee,
the successor trustee shall cause such notice to be so given at the expense of the Corporation.

Section 7.12 Successor by Merger, etc.

     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 the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.

Section 7.13 Limitations on Rights of Trustee as Creditor.

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act of 1939.

ARTICLE 8

CONCERNING THE SECURITYHOLDERS

Section 8.01 Action by Securityholders.

     Whenever in this Indenture it is provided that the Holders of a specified percentage in
aggregate principal amount of the Debt Securities of any or all series may take any action
(including the making of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such action the Holders of
such specified percentage have joined therein may be evidenced by: (i) by any instrument or any
number of instruments of similar tenor executed by Securityholders in person or by agent or

 

38

proxy appointed in writing; (ii) by the record of the Holders of Debt Securities voting in
favor thereof at any meeting of Securityholders duly called and held in accordance with the
provisions of Article Nine; or (iii) by a combination of such instrument or instruments and any
such record of such a meeting of Securityholders.

     In determining whether the Holders of a specified percentage in aggregate principal amount of
the Debt Securities have taken any action (including the making of any demand or request, the
waiving of any notice, consent or waiver or the taking of any other action), the principal amount
of any Original Issue Discount Security that may be counted in making such determination and that
shall be deemed to be outstanding for such purposes shall be equal to the amount of the principal
thereof that could be declared to be due and payable upon an Event of Default pursuant to the terms
of such Original Issue Discount Security at the time the taking of such action is evidence to the
Trustee.

Section 8.02 Proof of Execution by Securityholders.

     Subject to the provisions of Sections 7.01, 7.02 and 9.05, proof of the execution of any
instrument by a Securityholder or its agent or proxy shall be proved by the Debt Security Register
or by a certificate of the Security Registrar.

Section 8.03 Who Are Deemed Absolute Owners.

     The Corporation, the Trustee, any paying agent, any transfer agent and any Security Registrar
may, subject to Section 2.04 hereof, treat the person in whose name a Debt Security shall be
registered upon the Debt Security Register as the absolute owner of such Debt Security (whether or
not such Debt Security shall be overdue) for the purpose of receiving payment thereof or on account
thereof and for all other purposes and neither the Corporation, the Trustee, any paying agent, any
transfer agent nor any Security Registrar shall be affected by any notice to the contrary.

Section 8.04 Corporation-Owned Debt Securities Disregarded.

     In determining whether the Holders of the required aggregate principal amount of Debt
Securities have concurred in any direction, consent or waiver under this Indenture, Debt Securities
that are owned by the Corporation or by any person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Corporation, shall be disregarded and deemed
not to be outstanding for the purpose of any such determination, except that for the purpose of
determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver only Debt Securities that the Trustee has actual knowledge are so owned shall be
disregarded. Debt Securities so owned that have been pledged in good faith may be regarded as
outstanding for the purposes of this Section if the pledgee shall establish to the satisfaction of
the Trustee the pledgee’s right to vote such Debt Securities and that the pledgee is not a person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the Corporation. In the case of a dispute as to such right, any decision by the Trustee taken upon
the advice of counsel shall be full protection to the Trustee.

 

39

Section 8.05 Revocation of Consents; Future Securityholders Bound.

     At any time prior to the taking of any action by the Holders of the percentage in aggregate
principal amount of the Debt Securities specified in this Indenture in connection with such action,
any Holder of a Debt Security the identifying number of which is shown by the evidence to be
included in the Debt Securities the Holders of which have consented to such action may, by filing
written notice with the Trustee at its office and upon proof of holding as provided in Section
8.02, revoke such action so far as concerns such Debt Security. Except as aforesaid any such
action taken by the Holder of any Debt Security shall be conclusive and binding upon such Holder
and upon all future Holders and owners of such Debt Security and of any Debt Security issued in
exchange or substitution therefor irrespective of whether or not any notation in regard thereto is
made upon such Debt Security. Any action taken by the Holders of the percentage in aggregate
principal amount of the Debt Securities specified in this Indenture in connection with such action
shall be conclusively binding upon the Corporation, the Trustee and the Holders of all the Debt
Securities of each series intended to be affected thereby.

ARTICLE 9

SECURITYHOLDERS’ MEETINGS

Section 9.01 Purposes of Meetings.

     A meeting of Securityholders of any or all series may be called at any time and from time to
time pursuant to the provisions of this Article for any of the following purposes:

	 	(1)	 	to give any notice to the Corporation or to the Trustee, or to give any
directions to the Trustee, or to waive any default hereunder and its consequences, or
to take any other action authorized to be taken by Securityholders pursuant to any of
the provisions of Article Six;
	 
	 	(2)	 	to remove the Trustee and appoint a successor trustee pursuant to the
provisions of Article Seven;
	 
	 	(3)	 	to consent to the execution of an indenture or indentures supplemental hereto
pursuant to the provisions of Section 10.02; or
	 
	 	(4)	 	to take any other action authorized to be taken by or on behalf of the Holders
of any specified aggregate principal amount of the Debt Securities of any or all
series, as the case may be, under any other provision of this Indenture or under
applicable law.

Section 9.02 Call of Meetings by Trustee.

     The Trustee may at any time call a meeting of Holders of Debt Securities of any or all series
to take any action specified in Section 9.01, to be held at such time and at such place as the
Trustee shall determine. Notice of every meeting of the Holders of Debt Securities of any or all
series, setting forth the time and place of such meeting and in general terms the action proposed
to be taken at such meeting, shall be given to all Holders of then outstanding Debt Securities of
each series that may be affected by the action proposed to be taken at such meeting, by sending

 

40

such notice to such Holders at their addresses as they shall appear on the Debt Security
Register, not less than twenty nor more than 180 days prior to the date fixed for the meeting.
Failure of any Holder or Holders to receive such notice, or any defect therein, shall in no case
affect the validity of any action taken at such meeting. Any meeting of Holders of Debt Securities
of all or any series shall be valid without notice if the Holders of all such Debt Securities
outstanding, the Corporation and the Trustee are present in person or by proxy or shall have waived
notice thereof before or after the meeting. The Trustee may fix, in advance, a date as the record
date for determining the Holders entitled to notice of or to vote at any such meeting at not less
than twenty or more than 180 days prior to the date fixed for such meeting.

Section 9.03 Call of Meetings by Corporation or Securityholders.

     In case at any time the Corporation, pursuant to a Board Resolution, or the Holders of at
least ten percent in aggregate principal amount of the Debt Securities of any or all series, as the
case may be, then outstanding, shall have requested the Trustee to call a meeting of
Securityholders of any or all series to take any action authorized in Section 9.01, by written
request setting forth in reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have sent, as provided in Section 9.02, the notice of such meeting within 30 days
after receipt of such request, then the Corporation or the Holders of such Debt Securities in the
amount above specified may determine the time and the place by sending notice thereof as provided
in Section 9.02.

Section 9.04 Qualification for Voting.

     To be entitled to vote at any meeting of Securityholders a person shall be a Holder of one or
more Debt Securities of a series with respect to which a meeting is being held or a person
appointed by instrument in writing as proxy by such a Holder. The only persons who shall be
entitled to be present or to speak at any meeting of the Securityholders shall be the persons
entitled to vote at such meeting and their counsel and any representatives of the Trustee and its
counsel and any representatives of the Corporation and its counsel.

Section 9.05 Regulations.

     Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Securityholders, in regard to proof of the
holding of Debt Securities 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 think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Corporation or by Securityholders as provided in
Section 9.03, in which case the Corporation or the Securityholder 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 Holders of a majority in principal amount
of the Debt Securities represented at the meeting and entitled to vote.

 

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     Subject to the provisions of Sections 8.01 and 8.04, at any meeting each Securityholder or
proxy shall be entitled to one vote for each U.S. $1,000 principal amount of Debt Securities held
or represented by him, her or it; provided, however, that no vote shall be cast or counted at any
meeting in respect of any Debt Security challenged as not outstanding and ruled by the chairman of
the meeting not to be outstanding. The chairman of the meeting shall have no right to vote except
as a Securityholder or proxy. Any meeting of Securityholders duly called pursuant to the
provisions of Section 9.02 or 9.03 may be adjourned from time to time, and the meeting may be held
as so adjourned without further notice.

Section 9.06 Voting.

     The vote upon any resolution submitted to any meeting of Securityholders shall be by written
ballot on which shall be subscribed the signatures of the Securityholders or proxies and on which
shall be inscribed the identifying number or numbers or to which shall be attached a list of
identifying numbers of the Debt Securities 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 reports in duplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of each meeting of Securityholders 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 affidavit 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 mailed as
provided in Section 9.02 or Section 9.03. The record shall be signed and verified by the permanent
chairman and secretary of the meeting and one of the duplicates shall be delivered to the
Corporation and the other 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 10

SUPPLEMENTAL INDENTURES

Section 10.01 Supplemental Indentures Without Consent of Securityholders.

     The Corporation, when authorized by Board Resolution, and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto (which shall conform to
the provisions of the Trust Indenture Act) for one or more of the following purposes:

     (a) to evidence the succession of another entity to the Corporation, or successive
successions, and the assumption by any successor entity of the covenants, agreements and
obligations of the Corporation pursuant to Article Eleven hereof;

     (b) to add to the covenants of the Corporation such further covenants, restrictions,
conditions or provisions as its Board of Directors shall consider to be for the protection of the
Holders of Debt Securities of any or all series, and to make the occurrence, or the occurrence and
continuance, of a default in any of such additional covenants, restrictions, conditions or
provisions a default or an Event of Default with respect to any or all series permitting the

 

42

enforcement of all or any of the several remedies provided in this Indenture as herein set
forth, with such period of grace, if any, and subject to such conditions as such supplemental
indenture may provide;

     (c) to cure any ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture that may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture; or to make such other provisions in regard to matters or
questions arising under this Indenture as shall not adversely affect the interests of the Holders
of any series of Debt Securities;

     (d) to convey, transfer, assign, mortgage or pledge any property to or with the Trustee;

     (e) to evidence and provide for the acceptance and appointment hereunder by a successor
trustee with respect to the Debt Securities of one or more series and to add or change 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 Section 7.11;

     (f) to establish the form or terms of Debt Securities of any series as permitted by Sections
2.01 and 2.03; and

     (g) to change or eliminate any provision of this Indenture, provided that any such change or
elimination: (i) shall become effective only when there is no Debt Security outstanding of any
series created prior to the execution of such supplemental indenture that is entitled to the
benefit of such provision; or (ii) shall not apply to any Debt Security outstanding.

     The Trustee is hereby authorized to join with the Corporation in the execution of any such
supplemental indenture, to make any further appropriate agreements and stipulations that may be
therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any
property thereunder, but the Trustee shall not be obligated to enter into any such supplemental
indenture that adversely affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section 10.1 may be executed
by the Corporation and the Trustee without the consent of the Holders of any of the Debt Securities
at the time outstanding, notwithstanding any of the provisions of Section 10.02.

Section 10.02 Supplemental Indentures With Consent of Securityholders.

     With the consent (evidenced as provided in Section 8.01) of the Holders of not less than a
majority in the aggregate principal amount of the Debt Securities of all series at the time
outstanding affected by such supplemental indenture (voting as one class), the Corporation, when
authorized by a Board Resolution, and the Trustee may from time to time and at any time 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 any
supplemental indentures or modifying in any manner the rights of the Holders of the Debt Securities
of each such series; provided, however, that no such supplemental indenture shall: (i)

 

43

change the fixed maturity of any Debt Securities, or reduce the principal amount thereof (or
premium, if any), or reduce the rate or extend the time of payment of any interest or Additional
Amounts thereon or reduce the amount due and payable upon acceleration of the maturity thereof or
the amount provable in bankruptcy, or make the principal of (premium, if any) or interest, if any,
or Additional Amounts, if any, on any Debt Security payable in any coin or currency other than that
provided in such Debt Security; (ii) impair the right to institute suit for the enforcement of any
such payment on or after the Stated Maturity (or, in the case of redemption, on or after the
Redemption Date); (iii) in the case of any Debt Security subordinated pursuant to Article
Seventeen, make any change in Article Seventeen that adversely affects the rights of any Holder
under Article Seventeen; or (iv) reduce the aforesaid percentage of Debt Securities, the consent of
the Holders of which is required for any such supplemental indenture, or the percentage required
for the consent of the Holders pursuant to Section 6.01 to waive defaults, without the consent of
the Holder of each Debt Security so affected.

     Upon the request of the Corporation, accompanied by a copy of a Board Resolution certified by
the Secretary or an Assistant Secretary of the Corporation authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the consent of
Securityholders as aforesaid, the Trustee shall join with the Corporation in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such supplemental indenture.

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

     Promptly after the execution and delivery by the Corporation and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Corporation shall give
notice of such supplemental indenture to the Holders of then outstanding Debt Securities of each
series affected thereby, by sending a notice thereof by first class mail or electronically to such
Holders at their addresses as they shall appear on the Debt Security Register, and such notice
shall set forth in general terms the substance of such supplemental indenture. Any failure of the
Corporation to send or publish such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture.

Section 10.03 Compliance with Trust Indenture Act; Effect of Supplemental Indentures.

     Any supplemental indenture executed pursuant to the provisions of this Article Ten shall
comply with the Trust Indenture Act. Upon the execution of any supplemental indenture pursuant to
the provisions of this Article Ten, this Indenture shall be and be deemed to be modified and
amended in accordance therewith and the respective rights, limitations of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Corporation and the Holders of Debt
Securities shall thereafter be determined, exercised and enforced hereunder subject in all respects
to such modifications and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any
and all purposes.

 

44

     The Trustee, subject to the provisions of Sections 7.01 and 7.02, shall be provided an
Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such supplemental
indenture complies with the provisions of this Article Ten.

Section 10.04 Notation on Debt Securities.

     Debt Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article Ten may bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental indenture. New Debt
Securities of any series so modified as to conform, in the opinion of the Board of Directors of the
Corporation, to any modification of this Indenture contained in any such supplemental indenture may
be prepared by the Corporation, authenticated by the Trustee and delivered, without charge to the
Securityholders, in exchange for the Debt Securities of such series then outstanding.

ARTICLE 11

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

Section 11.01 Corporation May Consolidate, etc., on Certain Terms.

     The Corporation covenants that it will not merge or consolidate with any other entity or sell,
assign, transfer, lease, convey or otherwise dispose of all or substantially all of its assets to
any person or entity, unless: (i) either the Corporation shall be the continuing corporation, or
the successor entity (if other than the Corporation) shall be an entity organized and existing
under the laws of the United States of America or any state thereof, or the District of Columbia,
or under the laws of Canada or any province or territory thereof and such successor entity shall
expressly assume, by a supplemental indenture in form satisfactory to the Trustee and executed and
delivered to the Trustee by such successor entity, the due and punctual payment of the principal of
(and premium, if any), interest, if any, and Additional Amounts, if any, on all the Debt
Securities, according to their tenor, and the due and punctual performance and observance of all of
the covenants and conditions of this Indenture to be performed or satisfied by the Corporation;
(ii) immediately after giving effect to such merger or consolidation, or such sale or conveyance,
no Event of Default, and no event that, after notice or lapse of time or both, would become an
Event of Default, shall have occurred and be continuing; and (iii) the Corporation shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating, that
such consolidation, merger, sale or conveyance and such supplemental indenture, and any such
assumption by the successor entity, complies with the provisions of this Article Eleven.

Section 11.02 Successor Corporation Substituted.

     In case of any such consolidation, merger, sale or conveyance and upon any such assumption by
the successor entity, such successor entity shall succeed to and be substituted for the
Corporation, with the same effect as if it had been named herein as the party of the first part.
Such successor entity thereupon may cause to be signed, and may issue in its own name, any or all
of the Debt Securities, issuable hereunder which theretofore shall not have been signed by the
Corporation and delivered to the Trustee; and, upon the order of such successor entity, instead of
the Corporation, and subject to all the terms, conditions and limitations prescribed in this

 

45

Indenture, the Trustee shall authenticate and shall deliver any Debt Securities which
previously shall have been signed and delivered by the officers of the Corporation to the Trustee
for authentication, and any Debt Securities that such successor entity thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All of the Debt Securities, so issued shall
in all respects have the same legal rank and benefit under this Indenture as the Debt Securities
theretofore or thereafter issued in accordance with the terms of this Indenture as though all of
such Debt Securities, had been issued at the date of the execution hereof.

     In case of any such consolidation, merger, sale or conveyance, such changes in phraseology and
form (but not in substance) may be made in the Debt Securities thereafter to be issued as may be
appropriate.

Section 11.03 Certificate to Trustee.

     Within 120 days after the end of each fiscal year of the Corporation, the Corporation will
deliver to the Trustee an Officers’ Certificate signed by any two of the Corporation’s principal
executive officer, principal financial officer or principal accounting officer, as to such
Officer’s knowledge of the Corporation’s compliance with all conditions and covenants under this
Indenture (such compliance to be determined without regard to any period of grace or requirement of
notice provided under this Indenture), as required by Section 314(a)(4) of the Trust Indenture Act.

ARTICLE 12

SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONIES

Section 12.01 Discharge of Indenture.

     If at any time: (i) the Corporation shall have delivered to the Trustee for cancellation all
Debt Securities of any series theretofore authenticated (other than any Debt Securities of such
series that shall have been destroyed, lost or stolen and that shall have been replaced or paid as
provided in Section 2.07); or (ii) all Debt Securities of any series not theretofore delivered to
the Trustee for cancellation shall have become due and payable, or are by their terms to become due
and payable within one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the Corporation shall
deposit or cause to be deposited with the Trustee as trust funds the entire amount (other than
monies repaid by the Trustee or any paying agent to the Corporation in accordance with Sections
12.04 or 12.05) sufficient to pay at maturity or upon redemption or repayment all Debt Securities
of such series not theretofore delivered to the Trustee for cancellation (other than any Debt
Securities of such series that shall have been destroyed, lost or stolen and that shall have been
replaced or paid as provided in Section 2.07), including principal (and premium, if any), interest,
if any, and Additional Amounts, if any, due or to become due to such date of maturity, Redemption
Date or Repayment Date, as the case may be, and if in either case the Corporation shall also pay or
cause to be paid all other sums payable hereunder by the Corporation with respect to such series,
then this Indenture shall cease to be of further effect with respect to the Debt Securities of such
series, and the Trustee, on demand of and at the cost and expense of the Corporation and subject to
Section 14.04, shall execute proper instruments acknowledging satisfaction of and discharging this
Indenture with respect to the Debt Securities of such series. The Corporation agrees to reimburse
the Trustee for any costs or expenses

 

46

thereafter reasonably incurred by the Trustee in connection with this Indenture or the Debt
Securities of such series.

Section 12.02 Satisfaction, Discharge and Defeasance of Debt Securities of Any Series.

     If pursuant to Section 2.01 provision is made for the defeasance of Debt Securities of a
series, then the provisions of this Section 12.02 shall be applicable except as otherwise specified
as contemplated by Section 2.01 for Debt Securities of such series. At the Corporation’s option,
either: (i) the Corporation shall be deemed to have paid and discharged the entire indebtedness on
all the outstanding Debt Securities of any such series and the Trustee, at the expense of the
Corporation, shall execute proper instruments acknowledging satisfaction and discharge of such
indebtedness; or (ii) the Corporation shall cease to be under any obligation to comply with any
term, provision, condition or covenant specified as contemplated by Section 2.01, when

     (a) either

	 	(1)	 	with respect to all outstanding Debt Securities of such series,

	 	(i)	 	the Corporation has deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an
amount (in such currency in which such outstanding Debt Securities are
then specified as payable at Stated Maturity) sufficient to pay and
discharge the entire indebtedness of all outstanding Debt Securities of
such series for principal (and premium, if any), interest, if any, and
Additional Amounts, if any, to the Stated Maturity or any Redemption
Date as contemplated by the last paragraph of this Section 12.02, as
the case may be; or
	 
	 	(ii)	 	the Corporation has deposited or caused to be
deposited with the Trustee as obligations in trust for the purpose such
amount of direct noncallable obligations of, or noncallable obligations
the payment of principal of and interest on which is fully guaranteed
by, the United States of America, or to the payment of which
obligations or guarantees the full faith and credit of the United
States of America is pledged, maturing as to principal and interest in
such amounts and at such times as will, together with the income to
accrue thereon (but without reinvesting any proceeds thereof), be
sufficient to pay and discharge the entire indebtedness on all
outstanding Debt Securities of such series for principal (and premium,
if any), interest, if any, and Additional Amounts , if any, to the
Stated Maturity or any Redemption Date as contemplated by the last
paragraph of this Section 12.02, as the case may be; or

	 	(2)	 	the Corporation has properly fulfilled such other terms and
conditions of the satisfaction and discharge as is specified, as contemplated
by Section 2.01, as applicable to the Debt Securities of such series, and

 

47

     (b) the Corporation has paid or caused to be paid all other sums payable with respect to the
outstanding Debt Securities of such series, and

     (c) the Corporation has delivered to the Trustee an Opinion of Counsel stating that (i) the
Corporation has received from, or there has been published by, the Internal Revenue Service a
ruling or (ii) since the date of execution of this Indenture, there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based thereon such
opinion shall confirm that, the holders of the outstanding Debt Securities 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 amounts 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

     (d) the Corporation 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 the entire indebtedness on all outstanding Debt Securities of any
such series have been complied with.

     Any deposits with the Trustee referred to in Section 12.02(l)(A) above 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 Debt Securities of such series are to be redeemed prior to
their Stated Maturity, whether pursuant to an optional redemption provision or in accordance with
any mandatory sinking fund requirement or otherwise, the applicable escrow trust agreement shall
provide therefor and the Corporation 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 Corporation.

Section 12.03 Deposited Monies to be Held in Trust by Trustee.

     All monies deposited with the Trustee pursuant to Section 12.01 or 12.02 shall be held in
trust and applied by it to the payment, either directly or through any paying agent, to the Holders
of the particular Debt Securities for the payment or redemption of which such monies have been
deposited with the Trustee, of all sums due and to become due thereon for principal (and premium,
if any), interest, if any, and Additional Amounts, if any.

Section 12.04 Paying Agent to Repay Monies Held.

     In connection with the satisfaction and discharge of this Indenture with respect to Debt
Securities of any series, all monies with respect to such Debt Securities then held by any paying
agent under the provisions of this Indenture shall, upon demand of the Corporation, be repaid to it
or paid to the Trustee and thereupon such paying agent shall be released from any further liability
with respect to such monies.

Section 12.05 Return of Unclaimed Monies.

     Any monies deposited with or paid to the Trustee or any paying agent for the payment of the
principal of (and premium, if any), interest, if any, and Additional Amounts, if any, on any Debt
Security and not applied but remaining unclaimed for two years after the date upon which

 

48

such principal (and premium, if any), interest, if any, and Additional Amounts, if any, shall
have become due and payable, shall, unless otherwise required by mandatory provisions of applicable
escheat or abandoned or unclaimed property law, be repaid to the Corporation by the Trustee or such
paying agent on demand, and the Holder of such Debt Security shall, unless otherwise required by
mandatory provisions of applicable escheat or abandoned or unclaimed property law, thereafter look
only to the Corporation for any payment that such Holder may be entitled to collect and all
liability of the Trustee or any paying agent with respect to such monies shall thereupon cease.

ARTICLE 13

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, 

OFFICERS AND DIRECTORS

Section 13.01 Indenture and Debt Securities Solely Corporate Obligations.

     No recourse under or upon any obligation, covenant or agreement contained in this Indenture or
any indenture supplemental hereto, or in any Debt Security, or because or on account of any
indebtedness evidenced thereby, shall be had against any past, present or future incorporator,
stockholder, officer, director, or other applicable principal, as such, of the Corporation or of
any successor entity, either directly or through the Corporation or any successor entity, under any
rule of law, statute or constitutional provision or by the enforcement of any assessment or by any
legal or equitable proceeding or otherwise, all such liability being expressly waived and released
by the acceptance of the Debt Securities by the Holders thereof and as part of the consideration
for the issue of the Debt Securities.

ARTICLE 14

MISCELLANEOUS PROVISIONS

Section 14.01 Benefits of Indenture Restricted to Parties and Securityholders.

     Nothing in this Indenture or in the Debt Securities, expressed or implied, shall give or be
construed to give to any Person, other than the parties hereto and their successors and the Holders
of the Debt Securities, any legal or equitable right, remedy or claim under this Indenture or under
any covenant or provision herein contained, all such covenants and provisions being for the sole
benefit of the parties hereto and their successors and of the Holders of the Debt Securities.

Section 14.02 Provisions Binding on Corporation’s Successors.

     All the covenants, stipulations, promises and agreements contained in this Indenture by or on
behalf of the Corporation shall bind its successors and assigns, whether so expressed or not.

Section 14.03 Addresses for Notices, etc.

     Any notice or demand that by any provision of this Indenture is required or permitted to be
given or served by the Trustee or by the Holders of Debt Securities to or on the Corporation may be
given or served by being deposited postage prepaid first class mail or via overnight delivery as
follows: Mercer International Inc., Suite 2840, 650 West Georgia Street, Vancouver,

 

49

British Columbia, Canada, V6B 4N8 (Attention: Chief Financial Officer). Any notice,
direction, request or demand by any Securityholder to or upon the Trustee shall be deemed to have
been sufficiently given or made, for all purposes, if given or made in writing at its Corporate
Trust Office, which is, at the date of this Indenture, Wells Fargo Bank, National Association, 707
Wilshire Blvd., 17th Floor, Los Angeles, CA 90017, Mailcode E2818-176, Attention:
Corporate Trust Services.

Section 14.04 Evidence of Compliance with Conditions Precedent.

     Upon any application or demand by the Corporation to the Trustee to take any action under any
of the provisions of this Indenture, the Corporation shall furnish to the Trustee an Officers’
Certificate stating that all conditions precedent 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 have been complied with, except that in the case of any
such application or demand as to which the furnishing of such documents is specifically required by
any provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

     Each certificate or opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this Indenture shall include:
(i) a statement that the person making such certificate or opinion has read such covenant or
condition; (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based; (iii) a
statement that, in the opinion of such person, he or she has made such examination or investigation
as is necessary to enable him or her to express an informed opinion as to whether or not such
covenant or condition has been complied with; and (iv) a statement as to whether or not, in the
opinion of such person, such condition or covenant has been complied with.

Section 14.05 Legal Holidays.

     In any case where the Interest Payment Date, Stated Maturity Date or the Redemption Date of
any Debt Securities or the last date on which a Holder has the right to convert or exchange a Debt
Security shall not be a Business Day in a city where payment thereof is to be made, then payment of
any interest, premium or Additional Amounts on, or principal of, such Debt Securities or exchange
of Debt Securities need not be made on such date in such city but may be made on the next
succeeding Business Day with the same force and effect as if made on the date of maturity or the
date fixed for redemption, conversion or exchange, and no interest shall accrue for the period
after such date.

Section 14.06 Trust Indenture Act to Control.

     If and to the extent that any provision of this Indenture limits, qualifies or conflicts with
another provision included in this Indenture by operation of Sections 310 to 317, inclusive, of the
Trust Indenture Act (an “incorporated provision”), such incorporated provision shall control.

 

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Section 14.07 Execution in Counterparts.

     This Indenture may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original; but such counterparts shall together constitute one and the same
instrument. The exchange of copies of this Indenture and of signature pages by facsimile or PDF
transmission shall constitute effective execution and delivery of this Indenture as to the parties
hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the
parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for
all purposes.

Section 14.08 Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. EACH OF THE CORPORATION
AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE DEBT SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

Section 14.09 Severability of Provisions.

     Any prohibition, invalidity or unenforceability of any provision of this Indenture in any
jurisdiction shall not invalidate or render unenforceable the remaining provisions hereto in such
jurisdiction and shall not invalidate or render unenforceable such provisions in any other
jurisdiction.

Section 14.10 Corporation Released from Indenture Requirements under Certain Circumstances.

     Whenever in this Indenture the Corporation shall be required to do or not to do anything so
long as any of the Debt Securities of any series shall be Outstanding, the Corporation shall,
notwithstanding any such provision, not be required to comply with such provisions if it shall be
entitled to have this Indenture satisfied and discharged pursuant to the provisions hereof, even
though in either case the Holders of any of the Debt Securities of that series shall have failed to
present and surrender them for payment pursuant to the terms of this Indenture.

Section 14.11 Force Majeure.

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are

 

51

consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

Section 14.12 U.S.A. Patriot Act.

     The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act,
the Trustee, like all financial institutions and in order to help fight the funding of terrorism
and money laundering, is required to obtain, verify, and record information that identifies each
person or legal entity that establishes a relationship or opens an account with the Trustee. The
parties to this Indenture agree that they will provide the Trustee with such information as it may
request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

ARTICLE 15

SINKING FUNDS

Section 15.01 Applicability of Article.

     The provisions of this Article shall be applicable to any sinking fund for the retirement of
Debt Securities of a series except as otherwise specified as contemplated by Section 2.01 for Debt
Securities of such series.

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

Section 15.02 Satisfaction of Sinking Fund Payments with Debt Securities.

     The Corporation may: (i) deliver Outstanding Debt Securities of a series (other than any
previously called for redemption); and (ii) apply as a credit Debt Securities of a series which
have been redeemed either at the election of the Corporation pursuant to the terms of such Debt
Securities or through the application of permitted optional sinking fund payments pursuant to the
terms of such Debt Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Debt Securities of such series required to be made pursuant to the
terms of such Debt Securities as provided for by the terms of such series; provided that such Debt
Securities have not been previously so credited. Such Debt Securities shall be received and
credited for such purpose by the Trustee at the Redemption Price specified in such Debt 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 Debt Securities in lieu
of cash payments pursuant to this Section 15.02, the principal amount of Debt Securities to be
redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee
need not call Debt Securities for redemption, except upon Corporation Order, 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

 

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shall at the request of the Corporation from time to time pay over and deliver to the
Corporation any cash payment so being held by the Trustee or such Paying Agent upon delivery by the
Corporation to the Trustee of Debt Securities purchased by the Corporation having an unpaid
principal amount equal to the cash payment requested to be released to the Corporation.

Section 15.03 Redemption of Debt Securities for Sinking Fund.

     Not less than 60 days prior to each sinking fund payment date for any series of Debt
Securities (unless a shorter period shall be satisfactory to the Trustee), the Corporation will
deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking
fund payment for that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash, the portion thereof, if any, which is to be satisfied
by crediting Debt Securities of that series pursuant to Section 15.02 and the basis for any such
credit and, prior to or concurrently with the delivery of such Officers’ Certificate, will also
deliver to the Trustee any Debt Securities to be so credited and not theretofore delivered to the
Trustee. Not less than 30 days (unless a shorter period shall be satisfactory to the Trustee)
before each such sinking fund payment date the Trustee shall select the Debt Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 15.03 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Corporation
in the manner provided in Section 3.02. Such notice having been duly given, the redemption of such
Debt Securities shall be made upon the terms and in the manner stated in Sections 3.03 and 3.04.

ARTICLE 16

REPAYMENT AT THE OPTION OF HOLDERS

Section 16.01 Applicability of Article.

     Debt Securities of any series that are repayable at the option of the Holders thereof before
their Stated Maturity shall be repaid in accordance with their terms and (except as otherwise
specified pursuant to Section 2.01 for Debt Securities of such series) in accordance with this
Article.

Section 16.02 Repayment of Debt Securities.

     Each Debt Security that is subject to repayment in whole or in part at the option of the
Holder thereof on a Repayment Date shall be repaid at the applicable Repayment Price together with
interest accrued to such Repayment Date as specified pursuant to Section 2.01.

Section 16.03 Exercise of Option; Notice.

     Each Holder desiring to exercise such Holder’s option for repayment shall, as conditions to
such repayment, surrender the Debt Security to be repaid in whole or in part together with written
notice of the exercise of such option at any office or agency of the Corporation designated for
such purpose, not less than 30 nor more than 45 days prior to the Repayment Date. Such notice,
which shall be irrevocable, shall specify the principal amount of such Debt Security to be repaid,
which shall be equal to the minimum authorized denomination for such Debt Security or an integral
multiple thereof, and shall identify the Debt Security to be repaid and, in the case of a partial
repayment of the Debt Security, shall specify the denomination or

 

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denominations of the Debt Security or Debt Securities of the same series to be issued to the
Holder for the portion of the principal of the Debt Security surrendered which is not to be repaid.

     The Corporation shall execute and the Trustee shall authenticate and deliver without service
charge to the Holder of any Debt Security so surrendered a new Debt Security of the same series, of
any authorized denomination specified in the foregoing notice, in an aggregate principal amount
equal to any portion of the principal of the Debt Security so surrendered which is not to be
repaid.

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

Section 16.04 Debt Securities Payable on the Repayment Date.

     Notice of exercise of the option of repayment having been given and the Debt Securities so to
be repaid having been surrendered as aforesaid, such Debt Securities shall, unless purchased in
accordance with Section 16.04, on the Repayment Date become due and payable at the price therein
specified and from and after the Repayment Date such Debt Securities shall cease to bear interest
and shall be paid on the Repayment Date, unless the Corporation shall default in the payment of
such price, in which case the Corporation shall continue to be obligated for the principal amount
of such Debt Securities and shall be obligated to pay interest on such principal amount at the rate
borne by such Debt Securities from time to time until payment in full of such principal amount.
The Corporation shall irrevocably deposit with the Trustee before 11 am New York City time on the
Repayment Date, a sum sufficient to pay all amounts outstanding on such Debt Securities.

ARTICLE 17

SUBORDINATION OF DEBT SECURITIES

Section 17.01 Applicability of Article; Agreement To Subordinate.

     The provisions of this Article Seventeen shall only be applicable to the Debt Securities of
any series (Debt Securities of such series referred to in this Article Seventeen as
“Subordinated Debt Securities”) designated, pursuant to Section 2.01, as subordinated in
accordance with their terms and (except as otherwise specified in an Officers’ Certificate or
supplemental indenture) in accordance with this Article Seventeen. Each Holder by accepting a
Subordinated Debt Security agrees that the Debt evidenced by such Subordinated Debt Security is
subordinated in right of payment, to the extent and in the manner provided in this Article
Seventeen (except as otherwise specified in an Officers’ Certificate or supplemental indenture), to
the prior payment of all Senior Indebtedness and that the subordination is for the benefit of and
enforceable by the holders of Senior Indebtedness.

 

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Section 17.02 Liquidation, Dissolution, Bankruptcy.

     Upon any payment or distribution of the assets of the Corporation to creditors upon a total or
partial liquidation or a total or partial dissolution of the Corporation or in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to the Corporation or its
respective property:

     (a) holders of Senior Indebtedness shall be entitled to receive payment in full in cash of
such Senior Indebtedness (including interest (if any), accruing on or after the commencement of a
proceeding in bankruptcy, whether or not allowed as a claim against the Corporation in such
bankruptcy proceeding) before Holders of Subordinated Debt Securities shall be entitled to receive
any payment of principal of, or premium, if any, or interest on, the Subordinated Debt Securities
from the Corporation; and

     (b) until the Senior Indebtedness of the Corporation is paid in full, any distribution to
which Holders of Subordinated Debt Securities would be entitled but for this Article Seventeen
shall be made to holders of Senior Indebtedness as their interests may appear, except that such
Holders may receive Permitted Junior Securities.

Section 17.03 Default on Senior Indebtedness.

     The Corporation may not pay the principal of, or premium, if any, or interest on, the
Subordinated Debt Securities or make any deposit pursuant to Article 12 and may not repurchase,
redeem or otherwise retire (except, in the case of Subordinated Debt Securities that provide for a
mandatory sinking fund pursuant to Section 15.03) any Subordinated Debt Securities (collectively,
“pay the Subordinated Debt Securities”) if (i) any principal, premium or interest in
respect of any Designated Senior Indebtedness is not paid within any applicable grace period
(including at maturity) or (ii) any other default on Designated Senior Indebtedness occurs and the
maturity of such Designated Senior Indebtedness is accelerated in accordance with its terms unless,
in either case, (x) the default has been cured or waived and any such acceleration has been
rescinded or (y) such Designated Senior Indebtedness has been paid in full in cash; provided,
however, that the Corporation may make payments on the Subordinated Debt Securities without regard
to the foregoing if the Corporation and the Trustee receive written notice approving such payment
from the Representative of each issue of Designated Senior Indebtedness. During the continuance of
any default with respect to any Designated Senior Indebtedness pursuant to which the maturity
thereof may be accelerated immediately without further notice (except such notice as may be
required to effect such acceleration) or the expiration of any applicable grace periods, the
Corporation may not make payments on the Subordinated Debt Securities for a period (a “Payment
Blockage Period”) commencing upon the receipt by the Corporation and the Trustee of written
notice of such default from the Representative of any Designated Senior Indebtedness specifying an
election to effect a Payment Blockage Period (a “Blockage Notice”) and ending 179 days
thereafter (or earlier if such Payment Blockage Period is terminated by (i) written notice to the
Trustee and the Corporation from the Representative who gave such Blockage Notice, (ii) by
repayment in full in cash of such Designated Senior Indebtedness or (iii) because the default
giving rise to such Blockage Notice is no longer continuing). Notwithstanding the provisions
described in the immediately preceding sentence (but subject to the provisions contained in the
first sentence of this Section 17.03), unless the holders of such Designated Senior Indebtedness or
the Representative

 

55

of such holders shall have accelerated the maturity of such Designated Senior Indebtedness, the
Corporation may resume payments on the Subordinated Debt Securities after such Payment Blockage
Period. Not more than one Blockage Notice may be given in any consecutive 360-day period,
irrespective of the number of defaults with respect to any number of issues of Designated Senior
Indebtedness during such period, unless otherwise specified pursuant to Section 2.01 for the
Subordinated Debt Securities of a series; provided, however, that in no event may the total number
of days during which any Payment Blockage Period or Periods is in effect exceed 179 days in the
aggregate during any 360 consecutive day period. For purposes of this Section 17.03, no default or
event of default which existed or was continuing on the date of the commencement of any Payment
Blockage Period with respect to the Designated Senior Indebtedness initiating such Payment Blockage
Period shall be, or be made, the basis of the commencement of a subsequent Payment Blockage Period
by the Representative of such Designated Senior Indebtedness, whether or not within a period of 360
consecutive days, unless such default or event of default shall have been cured or waived for a
period of not less than 90 consecutive days.

Section 17.04 Acceleration of Payment of Debt Securities.

     If payment of the Subordinated Debt Securities is accelerated because of an Event of Default,
the Corporation shall promptly notify the holders of the Designated Senior Indebtedness or their
Representatives known to the Corporation of the acceleration.

Section 17.05 When Distribution Must Be Paid Over.

     If a distribution is made to Holders of Subordinated Debt Securities that because of this
Article Seventeen should not have been made to them, the Holders who receive such distribution
shall hold it in trust for holders of Senior Indebtedness and pay it over to them as their
interests may appear.

Section 17.06 Subrogation.

     After all Senior Indebtedness is paid in full and until the Subordinated Debt Securities are
paid in full, Holders thereof shall be subrogated to the rights of holders of Senior Indebtedness
to receive distributions applicable to Senior Indebtedness. A distribution made under this Article
Seventeen to holders of Senior Indebtedness which otherwise would have been made to Holders of
Subordinated Debt Securities is not, as between the Corporation and such Holders, a payment by the
Corporation on Senior Indebtedness.

Section 17.07 Relative Rights.

     This Article Seventeen defines the relative rights of Holders of Subordinated Debt Securities
and holders of Senior Indebtedness. Nothing in this Indenture shall:

     (a) impair, as between the Corporation and Holders of either Subordinated Debt Securities or
Debt Securities, the obligation of the Corporation which is absolute and unconditional, to pay
principal of, and premium, if any, and interest on, the Subordinated Debt Securities and the Debt
Securities in accordance with their terms; or

 

56

     (b) prevent the Trustee or any Holder of either Subordinated Debt Securities or Debt
Securities from exercising its respective available remedies upon a Default or Event of Default,
subject to the rights of holders of Senior Indebtedness to receive distributions otherwise payable
to Holders of Subordinated Debt Securities.

Section 17.08 Subordination May Not Be Impaired by Corporation.

     No right of any holder of Senior Indebtedness to enforce the subordination of the Debt
evidenced by the Subordinated Debt Securities shall be impaired by any act or failure to act by the
Corporation or by its failure to comply with this Indenture.

Section 17.09 Rights of Trustee and Paying Agent.

     Notwithstanding Section 17.03, the Trustee or any paying agent may continue to make payments
on Subordinated Debt Securities and shall not be charged with knowledge of the existence of facts
that would prohibit the making of any such payments unless, not less than two Business Days prior
to the date of such payment, a Trust Officer receives written notice satisfactory to it that
payments may not be made under this Article Seventeen. The Corporation, the Security Registrar, any
paying agent, a Representative of Designated Senior Indebtedness may give the notice; provided,
however, that, if an issue of Senior Indebtedness has a Representative, only the Representative may
give the notice on behalf of the Holders of the Senior Indebtedness of that issue.

     The Trustee in its individual or any other capacity may hold Senior Indebtedness with the same
rights it would have if it were not Trustee. The Registrar and any paying agent may do the same
with like rights. The Trustee shall be entitled to all the rights set forth in this Article
Seventeen with respect to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness; and nothing in Article 7 shall deprive the
Trustee of any of its rights as such holder. Nothing in this Article Seventeen shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 7.06.

Section 17.10 Distribution or Notice to Representative.

     Whenever a distribution is to be made or a notice given to holders of Senior Indebtedness, the
distribution may be made and the notice given to their Representative (if any).

Section 17.11 Article Seventeen Not to Prevent Defaults or Limit Right to Accelerate.

     The failure to make a payment pursuant to the Subordinated Debt Securities, by reason of any
provision in this Article Seventeen shall not be construed as preventing the occurrence of a
Default. Nothing in this Article Seventeen shall have any effect on the right of the Holders or the
Trustee to accelerate the maturity of either the Subordinated Debt Securities or the Debt
Securities, as the case may be.

Section 17.12 Trustee Entitled to Rely.

     Upon any payment or distribution pursuant to this Article Seventeen, the Trustee and the
Holders shall be entitled to rely upon any order or decree of a court of competent jurisdiction in

 

57

which any proceedings of the nature referred to in Section 17.02 are pending, upon a
certificate of the liquidating trustee or agent or other Person making such payment or distribution
to the Trustee or to such Holders or upon the Representatives for the holders of Senior
Indebtedness for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness and other Debt of the Corporation, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article Seventeen. In the event that the Trustee determines, in good
faith, that 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 Article Seventeen, 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, the extent to which such Person is
entitled to participate in such payment or distribution and other facts pertinent to the rights of
such Person under this Article Seventeen, 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. The provisions of Sections 7.01 and 7.02 shall be applicable to all actions
or omissions of actions by the Trustee pursuant to this Article Seventeen.

Section 17.13 Trustee to Effectuate Subordination.

     Each Holder by accepting a Subordinated Debt Security authorizes and directs the Trustee on
his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Holders of Subordinated Debt Securities and the holders of Senior
Indebtedness as provided in this Article Seventeen and appoints the Trustee as attorney-in-fact for
any and all such purposes.

Section 17.14 Trustee Not Fiduciary for Holders of Senior Indebtedness.

     The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness and shall not be liable to any such holders if it shall mistakenly pay over or
distribute to Holders of Subordinated Debt Securities or the Corporation or any other Person, money
or assets to which any holders of Senior Indebtedness shall be entitled by virtue of this Article
Seventeen or otherwise.

Section 17.15 Reliance by Holders of Senior Indebtedness on Subordination Provisions.

     Each Holder by accepting a Subordinated Debt Security acknowledges and agrees that the
foregoing subordination provisions are, and are intended to be, an inducement and a consideration
to each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired
before or after the issuance of the Subordinated Debt Securities, to acquire and continue to hold,
or to continue to hold, such Senior Indebtedness and such holder of Senior Indebtedness shall be
deemed conclusively to have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Indebtedness.

ARTICLE 18

CONVERSION OF DEBT SECURITIES

 

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Section 18.01 Applicability of Article.

     The provisions of this Article Eighteen shall only be applicable to the Debt Securities of any
series (Debt Securities of such series referred to in this Article Eighteen as “Convertible
Securities”) designated, pursuant to Section 2.01 as being convertible in accordance with their
terms and (except as otherwise specified in an Officers’ Certificate or supplemental indenture) in
accordance with this Article Eighteen. In case by reason of the operation of this Article Eighteen,
the Convertible Securities shall be convertible into any other shares or other securities or
property of the Corporation or any other corporation, any reference in this Indenture to the
conversion of Convertible Securities pursuant to this Article Eighteen shall be deemed to refer to
and include conversion of Convertible Securities into such other shares or other securities or
property.

Section 18.02 Right to Convert.

     Subject to and upon compliance with the provisions of this Article, the Holder of any
Convertible Security shall have the right, at such Holder’s option, at any time prior to the close
of business on the date set forth in the Officers’ Certificate delivered pursuant to Section 2.01
hereof (or if such Convertible Security is called for redemption or submitted for repayment, then
in respect of such Convertible Security to and including but not after the close of business on the
second Business Day prior to the Redemption or Repayment Date, as the case may be, unless the
Corporation shall default in the payment due) to convert the principal amount of any such
Convertible Security, or, in the case of any Convertible Security of a denomination greater than
$1,000, any portion of such principal which is $1,000 or an integral multiple thereof, into that
number of fully paid and nonassessable Shares of Common Stock (as such shares shall then be
constituted) obtained by dividing the principal amount of the Convertible Security or portion
thereof surrendered for conversion by the Conversion Price, by surrender of the Convertible
Security so to be converted in whole or in part in the manner provided in Section 18.03. Such
conversion shall be effected by the Corporation.

Section 18.03 Conversion Procedures; Conversion Settlement.

(1) To convert a Convertible Security (other than a Convertible Security that is a Global
Security) a Holder must (1) complete and manually sign a Conversion Notice, a form of which is on
the back of the applicable Convertible Security, and deliver such Conversion Notice to the
Conversion Agent, (2) surrender the Note to the Conversion Agent, (3) if required, furnish
appropriate endorsement and transfer documents, (4) if required, pay all transfer or similar taxes
and (5) if required, pay cash equal to amount of interest due on the next Interest Payment Date for
such Note. If a Holder holds a beneficial interest in a Global Security, to convert such
beneficial interest, such Holder must comply with the requirements (4) and (5) as set forth in the
immediately preceding sentence and comply with the applicable procedures of the Depositary for
converting a beneficial interest in a Global Note. The first date on which all of the requirements
set forth in the first sentence of this Section 18.03 (in the case of a Convertible Security that
is not a Global Security) or the second sentence of this Section 18.03 (in the case of a Global
Security or a beneficial interest therein) have been satisfied is referred to in this Indenture as
the “Conversion Date”. The Conversion Agent shall, within one (1) Business Day of any
Conversion Date, provide written notice to the Corporation of the occurrence of such Conversion
Date.

 

 

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          Delivery of shares of Common Stock upon conversion of Convertible Securities shall occur as
soon as practicable after the Conversion Date, but in any event within five Business Days of the
relevant Conversion Date.

          A Holder receiving Common Stock upon conversion shall not be entitled to any rights as a
holder of Common Stock, including, among other things, the right to vote and receive dividends and
notices of stockholder meetings, until the Close of Business on the Conversion Date.

          No payment or adjustment will be made for dividends on, or other distributions with respect
to, any Common Stock except as provided in this Article Eighteen. Upon conversion of a Convertible
Security, a Holder will not receive, except as described below, any cash payment representing
accrued interest (including any additional interest, if applicable). Instead, accrued interest
(including any additional interest, if applicable) will be deemed paid by the shares of Common
Stock received by the Holder upon conversion. Delivery to the Holder of such shares of Common
Stock shall thus be deemed to satisfy (1) the Corporation’s obligation to pay the principal amount
of a Convertible Security, and (2) the Corporation’s obligation to pay any accrued and unpaid
interest (including any additional interest, if applicable) on the Convertible Security. As a
result, upon conversion of a Convertible Security, accrued and unpaid interest (including any
additional interest) on such Convertible Security is deemed paid in full rather than cancelled,
extinguished or forfeited.

          Notwithstanding Section 18.02, if Convertible Securities are converted after a Regular Record
Date but prior to the next succeeding Interest Payment Date, Holders of such Convertible Securities
at the close of business on such Regular Record Date will receive the interest (including any
additional interest, if applicable) payable on such Convertible Securities on the corresponding
Interest Payment Date notwithstanding the conversion. Such Convertible Securities, upon surrender
for conversion, must be accompanied by cash equal to the amount of interest (including any
additional interest, if applicable) payable on such Interest Payment Date on the Convertible
Securities so converted; provided that no such payment need be made (1) if the Corporation has
specified a Redemption Date that is after a Regular Record Date but on or prior to the next
succeeding Interest Payment Date, (2) if the Corporation has specified a repurchase date that is
after a Regular Record Date but on or prior to the next succeeding Interest Payment Date, (3) with
respect to any Convertible Securities converted after the Regular Record Date immediately preceding
the Maturity Date or (4) to the extent of any defaulted interest that exists at the time of
conversion with respect to such Convertible Security.

          If a Holder converts more than one Convertible Security at the same time, the number of shares
of Common Stock and the amount of cash delivered in lieu of fractional shares, if any, due upon
conversion shall be determined based on the total principal amount of the Convertible Securities
converted.

          Upon surrender of a Convertible Security (other than a Convertible Security that is a Global
Security) that is converted in part, the Corporation shall execute, and the Trustee shall
authenticate and deliver to the Holder, a new Convertible Security in an authorized denomination
equal in principal amount to the unconverted portion of the Convertible Security surrendered.

 

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Section 18.04 Cash Payments in Lieu of Fractional Shares.

     No fractional Shares of Common Stock or scrip representing fractional shares shall be
delivered upon conversion 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 shall be computed on the basis of the aggregate principal amount of
the Convertible Securities (or specified portions thereof to the extent permitted hereby) so
surrendered. If any fractional share of stock would be deliverable upon the conversion of any
Convertible Security or Convertible Securities, the Corporation shall make an adjustment therefor
in cash at the current market value of such fractional share of stock. The market value of a Share
of Common Stock shall be the Closing Price on the Business Day immediately preceding the day on
which the Convertible Securities (or specified portions thereof) are deemed to have been converted.

Section 18.05 Conversion Price.

     The Conversion Price shall be as specified in the form of Convertible Security hereinafter set
forth, subject to adjustment as provided in this Article.

Section 18.06 Adjustment to Conversion Price.

     The Conversion Price shall be adjusted from time to time as follows:

     (a) In case the Corporation shall: (i) pay a dividend or make a distribution on the Shares of
Common Stock in shares of its capital stock (whether Shares of Common Stock or of capital stock of
any other class); (ii) subdivide or reclassify its outstanding Shares of Common Stock into a
greater number of securities (including Shares of Common Stock); or (iii) combine or reclassify its
outstanding Shares of Common Stock into a smaller number of securities (including Shares of Common
Stock), the Conversion Price in effect immediately prior thereto shall be adjusted so that the
Holder of any Convertible Security thereafter surrendered for conversion shall be entitled to
receive the number of shares of capital stock of the Corporation which such Holder would have owned
or have been entitled to receive after the happening of any of the events described above had such
Convertible Security been converted immediately prior to the happening of such event. An
adjustment made pursuant to this subsection (a) shall become effective immediately after the record
date in the case of a dividend and shall become effective immediately after the effective date in
the case of a subdivision or combination. If, as a result of an adjustment made pursuant to this
subsection (a), the Holder of any Convertible Security thereafter surrendered for conversion shall
become entitled to receive shares of two or more classes of capital stock of the Corporation, the
Board of Directors of the Corporation (whose determination shall be conclusive and shall be
described in a written statement filed with the Trustee and any conversion agent) shall determine
the allocation of the adjusted Conversion Price between or among shares of such classes of capital
stock.

In the event that at any time, as a result of an adjustment made pursuant to this subsection (a) of
this Section 18.06, the Holder of any Convertible Security thereafter converted shall become
entitled to receive any shares or other securities of the Corporation other than Shares of Common
Stock, thereafter the number of such other shares so received upon conversion of any Convertible
Security shall be subject to adjustment from time to time in any manner and on

 

61

terms as nearly equivalent as practicable to the provisions with respect to the Shares of Common
Stock contained in this Section 18.06, and other provisions of this Article Eighteen with respect
to the Shares of Common Stock shall apply on like terms to any such other shares or other
securities.

     (b) In case the Corporation shall fix a record date for the issuance of rights or warrants to
all holders of its Shares of Common Stock (or securities convertible into Shares of Common Stock)
entitling them (for a period expiring within 45 days after such record date) to subscribe for or
purchase Shares of Common Stock at a price per share (or a conversion price per share) less than
the current market price per Share of Beneficial Interest (as defined in subsection (d) below) at
such record date, the Conversion Price in effect immediately prior thereto shall be adjusted so
that the same shall equal the price determined by multiplying the Conversion Price in effect
immediately prior to such record date by a fraction of which the numerator shall be the number of
Shares of Common Stock outstanding on such record date plus the number of shares which the
aggregate offering price of the total number of shares so offered (or the aggregate initial
conversion price of the convertible securities so offered) would purchase at such current market
price, and of which the denominator shall be the number of Shares of Common Stock outstanding on
such record date plus the number of additional Shares of Common Stock offered for subscription or
purchase (or into which the convertible securities so offered are initially convertible). Such
adjustment shall be made successively whenever such a record is fixed, and shall become effective
immediately after such record date. 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 determined by the Board of Directors of the Corporation. Shares of Common Stock
owned by or held for the account of the Corporation or any majority owned subsidiary shall not be
deemed outstanding for the purpose of any adjustment required under this subsection (b).

     (c) In case the Corporation shall fix a record date for making a distribution to all holders
of its Shares of Common Stock evidences of its indebtedness or assets (excluding regular quarterly
or other periodic or recurrent cash dividends or distributions paid from retained earnings of the
Corporation or dividends or distributions referred to in subsection (a) above) or rights or
warrants to subscribe or purchase (excluding those referred to in subsection (b) above), then in
each case the Conversion Price shall be adjusted so that the same shall equal the price determined
by multiplying the Conversion Price in effect immediately prior to such record date by a fraction
of which the numerator shall be the current market price per share (as defined in subsection (d)
below) of the Shares of Common Stock on such record date less the then fair market value (as
determined by the Board of Directors of the Corporation whose determination shall be conclusive,
and described in a certificate filed with the Trustee) of the portion of the assets or evidences of
indebtedness so distributed or of such rights or warrants applicable to one Share of Beneficial
Interest, and the denominator shall be the current market price per share (as defined in subsection
(d) below) of the Shares of Common Stock. Such adjustment shall be made successively whenever such
a record date is fixed and shall become effective immediately after such record date.
Notwithstanding the foregoing, in the event that the Corporation shall distribute any rights or
warrants to acquire capital stock (“Rights”) pursuant to this subsection (c), the distribution of
separate certificates representing such Rights subsequent to their initial distribution (whether or
not such distribution shall have occurred prior to the date of the issuance of such Convertible
Securities) shall be deemed to be the distribution of such Rights for purposes

 

62

of this subsection (c); provided that the Corporation may, in lieu of making any adjustment
pursuant to this subsection (c) upon a distribution of separate certificates representing such
Rights, make proper provision so that each Holder of such Convertible Security who converts such
Convertible Security (or any portion thereof): (i) before the record date for such distribution of
separate certificates shall be entitled to receive upon such conversion Shares of Common Stock
issued with Rights; and (ii) after such record date and prior to the expiration, redemption or
termination of such Rights shall be entitled to receive upon such conversion, in addition to the
Shares of Common Stock issuable upon such conversion, the same number of such Rights as would a
holder of the number of Shares of Common Stock that such Convertible Security so converted would
have entitled the holder thereof to purchase in accordance with the terms and provisions of and
applicable to the Rights if such Convertible Security were converted immediately prior to the
record date for such distribution. Shares of Common Stock owned by or held for the account of the
Corporation or any majority owned subsidiary shall not be deemed outstanding for the purpose of any
adjustment required under this subsection (c).

     (d) For the purpose of any computation under subsection (b) and (c) above, the current market
price per Shares of Common Stock at any date shall be deemed to be the average of the daily Closing
Prices for the 30 days (which are not legal holidays as defined in Section 14.05) commencing 45
days (which are not legal holidays as defined in Section 14.05) before the day in question. The
Closing Price for any day shall be: (i) if the Shares of Common Stock are listed or admitted for
trading on any national securities exchange, including the Nasdaq Stock Market, the last sale price
(regular way), or the average of the closing bid and ask prices if no sale occurred, of Shares of
Common Stock on the principal securities exchange on which the Shares of Common Stock is listed;
(ii) if not listed as described in (i), the mean between the closing high bid and low asked
quotations of Shares of Common Stock on any system or automated dissemination of quotations of
securities prices then in common use, if so quoted; or (iii) if not quoted as described in clause
(ii) the Closing Price of Shares of Common Stock on any day or the average of such Closing Prices
for any period shall be the fair market value of Shares of Common Stock as determined by a member
firm of the New York Stock Exchange, Inc. selected by the Corporation.

	     (e)	(i)	 	No adjustment in the Conversion price 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 subsection (e)(i) are
not required to be made shall be carried forward and taken into account in any
subsequent adjustment; further provided, however, that any adjustments which by reason
of this subsection (e)(i) are not otherwise required to be made shall be made no later
than 3 years after the date on which occurs an event that requires an adjustment to be
made or carried forward.

	 	(ii)	 	All calculations under this Article Eighteen shall be made to
the nearest cent or to the nearest one-hundredth of a share, as the case may
be. Anything in this Section 18.06 to the contrary notwithstanding, the
Corporation shall be entitled to make such reductions in the Conversion Price,
in addition to those required by this Section 18.06, as it in its discretion
shall determine to be advisable in order that any stock dividends, subdivision
of shares, distribution of rights to purchase stock or

 

63

	 	 	 	securities, or distribution of securities convertible into or exchangeable
for stock hereafter made by the Corporation to its shareholders shall not be
taxable.

     (f) Whenever the Conversion Price is adjusted, as herein provided, the Corporation shall
promptly file with the Trustee and any conversion agent other than the Trustee an Officers’
Certificate setting forth the Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. Promptly after delivery of such certificate, the
Corporation shall prepare a notice of such adjustment of the Conversion Price setting forth the
adjusted Conversion Price and the date on which such adjustment becomes effective and shall send or
cause to be sent such notice of such adjustment of the Conversion Price to the Holder of each
Convertible Security at such Holder’s last address appearing on the Debt Security Register provided
for in Section 2.01 of this Indenture.

     Corporation Determination Final. The Corporation shall be responsible for making all calculations called for hereunder and under
the Notes. The Corporation shall make all these calculations using commercially reasonable means
and, absent manifest error, the Corporation’s calculations will be final and binding on
Noteholders. The Corporation shall provide a schedule of the Corporation’s calculations to the
Trustee, and the Trustee is entitled to rely upon the accuracy of the Corporation’s calculations
without independent verification.

     (g) In any case in which this Section 18.06 provides that an adjustment shall become effective
immediately after a record date for an event, the Corporation may defer until the occurrence of
such event: (i) delivering to the Holder of any Convertible Security converted after such record
date and before the occurrence of such event the additional Shares of Common Stock deliverable upon
such conversion by reason of the adjustment required by such event over and above the Shares of
Common Stock deliverable upon such conversion before giving effect to such adjustment; and (ii)
paying to such Holder any amount in cash in lieu of any fraction pursuant to Section 18.04,
provided, however, that the Corporation shall deliver to such Holder a due bill or other
appropriate instrument evidencing such Holder’s rights to receive such additional shares, and such
cash, upon the occurrence of the event requiring such adjustment. If such event does not occur, no
adjustments shall be made pursuant to this Section 18.06.

Section 18.07 Effect of Reclassification, Consolidation, Merger or Sale.

     If any of the following events occur, namely: (i) any reclassification or change of
outstanding Shares of Common Stock deliverable 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, but including any change in the Shares of Common
Stock into two or more classes or series of securities); (ii) any consolidation or merger to which
the Corporation is a party (other than a consolidation or merger in which the Corporation is the
continuing corporation and which does not result in any reclassification of, or change (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) in, outstanding Shares of Common Stock); or (iii) any
sale or conveyance of the properties and assets of the Corporation as, or substantially as, an
entirety to any other corporation; then the Corporation or such successor or
purchasing corporation, as the case may be, shall execute with the Trustee a supplemental

 

64

indenture (which shall conform to the Trust Indenture Act as in force at the date of execution of
such supplemental indenture and comply with the provisions of Article Nine) providing that each
Convertible Security shall be convertible into the kind and amount of shares of stock and other
securities or property, including cash, receivable upon such reclassification, change,
consolidation, merger, sale or conveyance by a holder of a number of Shares of Common Stock
deliverable upon conversion of such Convertible Securities immediately prior to such
reclassification, change, consolidation, merger, sale or conveyance. Such supplemental indenture
shall provide for adjustments that shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article. The Corporation shall cause notice of the execution of
such supplemental indenture to be mailed to each Holder of Convertible Securities, at his address
appearing on the Debt Security Register provided for in Section 2.01 of this Indenture.

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

Section 18.08 Taxes on Shares Issued.

     The delivery of stock certificates on conversions of Convertible Securities shall be made
without charge to the Holder converting a Convertible Security for any tax in respect of the issue
thereof. The Corporation shall not, however, be required to pay any tax which may be payable in
respect of any transfer involved in the delivery of stock registered in any name other than of the
Holder of any Convertible Security converted, and the Corporation shall not be required to deliver
any such stock certificate unless and until the person or persons requesting the delivery thereof
shall have paid to the Corporation the amount of such tax or shall have established to the
satisfaction of the Corporation that such tax has been paid.

Section 18.09 Shares to be Fully Paid; Compliance with Governmental Requirements; Listing of Shares
of Common Stock.

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

     The Corporation covenants that if any Shares of Common Stock to be provided for the purpose of
conversion of Convertible 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, the Corporation will in good faith and as expeditiously as possible endeavor to
secure such registration or approval, as the case may be.

     The Corporation further covenants that, if the Shares of Common Stock are then listed on a
national securities exchange, it will qualify all Shares of Common Stock deliverable upon
conversion of the Convertible Securities for trading on said national securities exchange, if
permitted by and in accordance with the rules of said national securities exchange.

Section 18.10 Trustee Not Responsible.

     Neither the Trustee nor any authenticating agent nor any conversion agent shall at any time be
under any duty or responsibility to any Holder of Convertible Securities to determine

 

65

whether any
facts exist which may require any adjustment of the Conversion Price, or with respect to the nature
or extent of any such adjustment when made, or with respect to the method employed, or herein or in
any supplemental indenture provided to be employed, in making the same. Neither the Trustee nor
any authenticating agent 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 delivered upon the conversion of any Convertible Security; and neither the
Trustee nor any authenticating agent nor any conversion agent makes any representation with respect
thereto. Subject to the provisions of Section 7.01, neither the Trustee nor any authenticating
agent nor any conversion agent shall be responsible for any failure of the Corporation to deliver
any Shares of Common Stock or stock certificates or other securities or property or cash upon the
surrender of any Convertible Security for the purpose of conversion or for any failure of the
Corporation to comply with any of the covenants contained in this Article.

Section 18.11 Notice to Holders Prior to Certain Actions.

     In case:

     (a) the Corporation shall declare a dividend (or any other distribution) on the Shares of
Common Stock (other than in cash out of its current or retained earnings);

     (b) the Corporation shall authorize the granting to the holders of the Shares of Common Stock
of rights or warrants to subscribe for or purchase any share of any class or any other rights or
warrants;

     (c) of any reclassification or change of the Shares of Common Stock (other than a subdivision
or combination of its outstanding Shares of Common Stock, or a change in par value, or from par
value to no par value, or from no par value to par value) or, of any consolidation or merger to
which the Corporation is a party and for which approval of any stockholders of the Corporation is
required or for the sale or transfer of all or substantially all of the assets of the Corporation;
or

 

66

     (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Corporation,

in each of the cases (a) — (d) above, the Corporation shall cause to be filed with the
Trustee and the Corporation shall send or cause to be sent to each holder of Convertible
Securities at his address appearing on the Debt Security Register, provided for in Section
2.05 of this Indenture, as promptly as possible but in any event no less than 15 days prior
to the applicable date hereinafter specified, a notice stating (x) the date on which a
record is to be taken for the purpose of such dividend, distribution or rights or warrants,
or, if a record is not to be taken, the date as of which the holders of Shares of Common
Stock of record to be entitled to such dividend, distribution or rights are to be
determined, or (y) the date on which such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up is expected to become effective, and the
date as of which it is expected that holders of Shares of Common Stock of record shall be
entitled to exchange their Shares of Common Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up. 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 or any
adjustment in the Conversion Price required by this Article Eighteen.

Section 18.12 Covenant to Reserve Shares.

     The Corporation covenants that it will at all times reserve and keep available, free from
pre-emptive rights, out of its authorized but unissued Shares of Common Stock, such number of
Shares of Common Stock as shall then be deliverable upon the conversion of all outstanding
Convertible Securities.

[Signature Pages Follow]

 

67

     Wells Fargo Bank, National Association, the party of the second part, hereby accepts the
trusts in this Indenture, solely as Trustee, upon the terms and conditions herein above set forth.

     IN WITNESS WHEREOF, Mercer International Inc., the party of the first part, has caused this
Indenture to be signed and acknowledged by its President and Chief Executive Officer or its Chief
Financial Officer or any Vice President and Wells Fargo Bank, National Association, the party of
the second part, has caused this Indenture to be signed by its duly authorized officer, all as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	
MERCER INTERNATIONAL INC.
 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  David M. Gandossi 	 	 
	 

	 	Name:
	 	 

David M. Gandossi
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 
	 
 	 	 	 	 	 
	 	 	 
WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee
 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Lynn M. Steiner 
	 	 
	 

	 	Name:
	 	Lynn M. Steiner	 	 
	 
	 	Title:
	 	Vice Presidentexv10w1

EXECUTION COPY

Exhibit 10.1

$216,500,000

Alon Refining Krotz Springs, Inc.

131/3% Senior Secured Notes due 2014

PURCHASE AGREEMENT

October 13, 2009

JEFFERIES & COMPANY, INC.

520 Madison Avenue

New York, New York 10022

Ladies and Gentlemen:

     Alon Refining Krotz Springs, Inc., a Delaware corporation (the “Company”), hereby
agrees with you as follows:

              1. Issuance of Notes. Subject to the terms and conditions herein contained, the
Company proposes to issue and sell to Jefferies & Company, Inc., as the initial purchaser (the
“Initial Purchaser”), $216,500,000 aggregate
principal amount of its 131/3% Senior Secured
Notes due 2014 (each a “Note” and, collectively, the “Notes”). The Notes will be
issued pursuant to an indenture (the “Indenture”), to be dated as of October 22, 2009, by
and between the Company and Wilmington Trust FSB, as trustee (the “Trustee”). Capitalized
terms used, but not defined herein, shall have the meanings set forth in the “Description of the
Notes” section of the Final Offering Memorandum (as hereinafter defined).

     The Notes will be offered and sold to the Initial Purchaser pursuant to an exemption from the
registration requirements under the Securities Act of 1933, as amended (the “Act”). Upon
original issuance thereof, and until such time as the same is no longer required under the
applicable requirements of the Act, the Notes shall bear the legends set forth in the final
offering memorandum, dated the date hereof (the “Final Offering Memorandum”). The Company
has prepared a preliminary offering memorandum, dated September 29, 2009 (the “Preliminary
Offering Memorandum”), (ii) a pricing term sheet attached hereto as Schedule I, which
includes pricing terms and other information with respect to the Notes (the “Pricing
Supplement”) and (iii) the Final Offering Memorandum relating to the offer and sale of the
Notes (the “Offering”). “Offering Memorandum” means, as of any date or time
referred to in this Agreement, the most recent offering memorandum (whether the Time of Sale
Document (as hereinafter defined) or the Final Offering Memorandum, and any amendment or supplement
to either such document), including exhibits and schedules thereto and all documents incorporated
by reference therein. The Preliminary Offering Memorandum and the Pricing Supplement are
collectively referred to herein as the “Time of Sale Document.”

              2. Terms of Offering. The Initial Purchaser has advised the Company, and the Company
understands, that the Initial Purchaser will make offers to sell (the “Exempt Resales”)
some or all of the Notes purchased by the Initial Purchaser hereunder on the terms set forth in the
Final Offering Memorandum, as amended or supplemented, to persons (the “Subsequent
Purchasers”) whom the Initial Purchaser (i) reasonably believes to be “qualified institutional
buyers” (“QIBs”) as defined in Rule 144A

 

 

under the Act, as such may be amended from time to time, (ii) reasonably believes (based upon written representations made by such persons to the
Initial Purchaser) to be institutional “accredited investors” as defined in Rule 501(a)(1), (2),
(3) or (7) under the Act (“Accredited Investors”) or (iii) reasonably believes not to be
“U.S. persons” (as defined under Rule 902(e) of the Act) in reliance upon and in accordance with
Regulation S under the Act.

     The Company has requested that the Initial Purchaser make Exempt Resales to certain
institutional investors listed in the First Addendum to the Israeli Securities Law 5728-1968 (the
“Company Identified Investors”). With respect to any sales to such investors the Company
and the Initial Purchaser agree that: (a) such sales will be made to Poalim IBI Underwriting &
Issuing Ltd., IBI Investments House Ltd., or one of their affiliates acceptable to the Initial
Purchaser (collectively, “IBI”), who will purchase Notes on behalf of the Company
Identified Investors and (b) the Initial Purchaser shall have received representations from IBI and
each of the Company Identified Investors in form and substance satisfactory to it.

     Pursuant to the Indenture, all future domestic Restricted Subsidiaries of the Company, if any,
jointly and severally, will fully and unconditionally guarantee, on a senior secured basis, to each
holder of the Notes and the Trustee, the payment and performance of the Company’s obligations under
the Indenture and the Notes, subject to limitations intended to prevent such guarantees from
constituting fraudulent conveyances under applicable law (each such subsidiary being referred to
herein as a “Guarantor” and each such guarantee being referred to herein as a
“Guarantee”).  

     Pursuant to the terms of the Collateral Documents, all of the obligations under the Notes and
the Indenture will be secured by a first priority lien on and security interest in all of the
assets of the Company constituting Notes Priority Collateral (other than the Crack Spread Hedging
Collateral) and a second priority lien on and security interest in all of the assets of the Company
constituting RCF Priority Collateral and Crack Spread Hedging Collateral, in each case subject to
Permitted Prior Liens.

     Holders of the Notes (including Subsequent Purchasers) will have the registration rights set
forth in the registration rights agreement applicable to the Notes (the “Registration Rights
Agreement”), to be dated as of the Closing Date. Pursuant to the Registration Rights Agreement,
the Company will agree, among other things, to file with the Securities and Exchange Commission
(the “SEC”) (a) a registration statement under the Act relating to senior secured notes
(the “Exchange Notes”) which shall be substantially identical in all material respects to
the Notes (except that the Exchange Notes shall have been registered pursuant to such registration
statement and will not be subject to restrictions on transfer or contain additional interest
provisions) to be offered in exchange for the Notes (such offer to exchange being referred to as
the “Exchange Offer”), and (b) under certain circumstances, a shelf registration statement
pursuant to Rule 415 under the Act (the “Shelf Registration Statement”) relating to the
resale by certain holders of the Notes. If required under the Registration Rights Agreement, the
Company will issue Exchange Notes to the Initial Purchaser (the “Private Exchange Notes”).
If the Company fails to satisfy its obligations under the Registration Rights Agreement, it will be
required to pay additional interest to the holders of the Notes under certain circumstances.

     This Agreement, the Indenture, the Collateral Documents, the Registration Rights Agreement,
the Notes, the Exchange Notes and the Private Exchange Notes are collectively referred to herein as
the “Documents.”

              3. Purchase, Sale and Delivery. On the basis of the representations, warranties,
agreements and covenants herein contained and subject to the terms and conditions herein set forth,
the Company agrees to issue and sell to the Initial Purchaser, and the Initial Purchaser agrees to
purchase from the Company, at the price set forth in Schedule A hereto, the aggregate
principal amount of Notes set forth in Schedule A. Delivery to the Initial Purchaser of and
payment for the Notes shall be made at a

 

 

Closing (the “Closing”) to be held at 10:00 a.m., New York City time, on October 22, 2009 (the “Closing Date”) at the New York offices of
White & Case LLP.

     The Company shall deliver to the Initial Purchaser one or more certificates representing the
Notes in definitive form, registered in such names and denominations as the Initial Purchaser may
request, against payment by the Initial Purchaser of the purchase price therefor by immediately
available Federal funds bank wire transfer to such bank account or accounts as the Company shall
designate to the Initial Purchaser at least two business days prior to the Closing. The
certificates representing the Notes in definitive form shall be made available to the Initial
Purchaser for inspection at the New York offices of White & Case LLP (or such other place as shall
be reasonably acceptable to the Initial Purchaser) not later than 10:00 a.m., New York City time,
one business day immediately preceding the Closing Date. Notes to be represented by one or more
definitive global securities in book-entry form will be deposited on the Closing Date, by or on
behalf of the Company, with The Depository Trust Company (“DTC”) or its designated
custodian, and registered in the name of Cede & Co.

              4. Representations and Warranties of the Company The Company represents and warrants
to the Initial Purchaser that:

	(a)	 	(i) Neither the Time of Sale Document, nor any amendment or supplement thereto, as of the
Applicable Time (as hereinafter defined) contained any untrue statement of a material fact, or
omitted to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading and (ii) the Final Offering
Memorandum, as of the date hereof and at the Closing Date, as then amended or supplemented,
does not and will not, contain any untrue statement of a material fact, or omit to state a
material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, except that the representations and warranties set
forth in this Section 4(a) do not apply to statements or omissions made in reliance
upon and in conformity with information relating to the Initial Purchaser and furnished to the
Company in writing by the Initial Purchaser expressly for use in the Time of Sale Document or
the Final Offering Memorandum or any amendment or supplement thereto. No injunction or order
has been issued that either (x) asserts that any of the transactions contemplated by the
Documents is subject to the registration requirements of the Act or (y) would prevent or
suspend the issuance or sale of any of the Notes or the use of the Time of Sale Document, the
Final Offering Memorandum or any amendment or supplement thereto, in any jurisdiction. No
statement of material fact included in the Final Offering Memorandum has been omitted from the
Time of Sale Document and no statement of material fact included in the Time of Sale Document
that is required to be included in the Final Offering Memorandum has been omitted therefrom.
Each of the Time of Sale Document and the Final Offering Memorandum, as of their respective
dates, contained, and the Final Offering Memorandum, as amended or supplemented, as of the
Closing Date will contain, all the information specified in, and meet the requirements of Rule
144A(d)(4) under the Act.

     “Applicable Time” means 2:45 p.m. (New York City time) on October 13, 2009, or
such other time as agreed by the Company and the Initial Purchaser.

	(b)	 	The Company does not own more than fifty percent (50%) of any class of equity securities or
interests of any corporation, partnership or other entity.
	 
	(c)	 	The Company (i) has been duly organized or formed, as the case may be, is validly existing
and is in good standing under the laws of its jurisdiction of organization, (ii) has all
requisite corporate power and authority to carry on its business as now conducted and as
described in the Offering Memorandum and to own, lease and operate its properties and assets,
and (iii) is duly qualified or licensed to do business and is in good standing as a foreign
corporation authorized to do business

 

 

	 	 	in each jurisdiction in which the nature of such businesses or the ownership or leasing of such properties requires such qualification, except
where the failure to be so qualified would not, individually or in the aggregate, reasonably
be expected to have a material adverse effect on (A) the properties, business, operations,
earnings, assets, liabilities or condition (financial or otherwise) of the Company, (B) the
ability of the Company to perform its obligations in all material respects under any Document,
(C) the enforceability of any Collateral Document or the attachment, perfection or priority of
any of the Liens or security interests intended to be created thereby, or (D) the validity or
enforceability of any of the Documents, and (E) the consummation of any of the transactions
contemplated under any of the Documents (each, a “Material Adverse Effect”).

	(d)	 	All of the issued and outstanding shares of capital stock of the Company have been duly
authorized and validly issued, are fully paid and nonassessable, and were not issued in
violation of, and are not subject to, any preemptive or similar rights. The table under the
caption “Capitalization” in the Time of Sale Document and the Final Offering Memorandum
(including the footnotes thereto) sets forth, as of its date, the capitalization of the
Company.
	 
	(e)	 	No holder of securities, other than the Notes and any Additional Notes (as defined in the
Indenture) issued pursuant to the Indenture, of the Company will be entitled to have such
securities registered under the registration statements required to be filed by the Company
with respect to the Notes pursuant to the Registration Rights Agreement.
	 
	(f)	 	The Company has all the requisite corporate power and authority to execute, deliver and
perform its obligations under the Documents to which it is a party and to consummate the
transactions contemplated thereby.
	 
	(g)	 	This Agreement has been duly and validly authorized, executed and delivered by the Company.
Each of the Indenture and the Collateral Documents has been duly and validly authorized by the
Company. Each of the Indenture and the Collateral Documents, when executed and delivered by
the Company, will constitute a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except that the enforcement thereof may be
subject to (i) bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent
conveyance or other similar laws now or hereafter in effect relating to creditors’ rights
generally and (ii) general principles of equity (whether applied by a court of law or equity)
and the discretion of the court before which any proceeding therefor may be brought.
	 
	(h)	 	The Registration Rights Agreement has been duly and validly authorized by the Company. The
Registration Rights Agreement, when executed and delivered by the Company, will constitute a
legal, valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as rights to indemnification and contribution therein may be
limited to applicable law, general equitable principles and public policy considerations and
except that the enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, receivership, moratorium, fraudulent conveyance or other similar laws now or
hereafter in effect relating to creditors’ rights generally and (ii) general principles of
equity (whether applied by a court of law or equity) and the discretion of the court before
which any proceeding therefor may be brought.
	 
	(i)	 	The Notes, when issued, will be in the form contemplated by the Indenture. When executed and
delivered by the Company, the Indenture will meet the requirements for qualification under the
Trust Indenture Act of 1939, as amended (the “TIA”). The Notes, Exchange Notes and
Private Exchange Notes have each been duly and validly authorized by the Company and, in the
case of the Notes, when delivered to and paid for by the Initial Purchaser in accordance with
the terms of

 

 

	 	 	this Agreement and the Indenture, will have been duly executed, issued and delivered and will be legal, valid and binding obligations of the Company, entitled to the
benefit of the Indenture, the Collateral Documents and the Registration Rights Agreement, and
enforceable against the Company in accordance with their terms, except that the enforcement
thereof may be subject to (i) bankruptcy, insolvency, reorganization, receivership,
moratorium, fraudulent conveyance or other similar laws now or hereafter in effect relating to
creditors’ rights generally and (ii) general principles of equity (whether applied by a court
of law or equity) and the discretion of the court before which any proceeding therefor may be
brought.
	 
	(j)	 	The Company is not in violation of its certificate of incorporation, by-laws or other
organizational documents (the “Charter Documents”). The Company is not (i) in
violation of any Federal, state, local or foreign statute, law (including, without limitation,
common law) or ordinance, or any judgment, decree, rule, regulation or order (collectively,
“Applicable Law”) of any federal, state, local and other governmental authority,
governmental or regulatory agency or body, court, arbitrator or self-regulatory organization,
domestic or foreign (each, a “Governmental Authority”) applicable to it or any of its
properties, or (ii) in breach of or default under any bond, debenture, note or other evidence
of indebtedness, indenture, mortgage, deed of trust, lease or any other agreement or
instrument to which it is a party or by which it or its property is bound (collectively,
“Applicable Agreements”), except for such violations, breaches or defaults that would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. All Applicable Agreements are in full force and effect and are legal, valid and
binding obligations of the Company, with only such exceptions as would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect. To the Company’s
knowledge, after due inquiry, there exists no condition that, with the passage of time or
otherwise, would constitute (a) a violation of such Charter Documents or Applicable Laws, (b)
a breach of or default under any Applicable Agreement or (c) result in the imposition of any
penalty or the acceleration of any indebtedness, except in the cases of sub-clause (b) and
(c), as would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
	 
	(k)	 	Neither the execution, delivery or performance of the Documents nor the consummation of any
transactions contemplated therein will conflict with, violate, constitute a breach of, or a
default (with the passage of time or otherwise) under, require the consent of any person
(other than consents already obtained and in full force and effect and, with respect to the
consent from the lenders under the Revolving Credit Facility, subject to satisfaction of the
conditions to such consent prior to the Closing Date, and consents required from landlords
with respect to the leasehold mortgages) under, result in the imposition of a Lien on any
assets of the Company (except for Liens pursuant to the Collateral Documents), or result in an
acceleration of indebtedness under or pursuant to (i) the Charter Documents, (ii) any
Applicable Agreement, or (iii) any Applicable Law. Immediately after consummation of the
Offering and transactions contemplated in the Documents, no Default or Event of Default will
exist.
	 
	(l)	 	When executed and delivered, the Documents will conform in all material respects to the
descriptions thereof in the Time of Sale Document and the Final Offering Memorandum.
	 
	(m)	 	No consent, approval, authorization or order of any Governmental Authority, or third party is
required for the issuance and sale by the Company of the Notes to the Initial Purchaser or the
consummation by the Company of the other transactions contemplated hereby, except such as may
be required from landlords with respect to the leasehold mortgages, such as have been
obtained, and such as may be required under state securities or “Blue Sky” laws in connection
with the purchase and resale of the Notes by the Initial Purchaser.

 

 

	(n)	 	There is no action, claim, suit, demand, hearing, notice of violation or deficiency, or
proceeding, domestic or foreign (collectively, “Proceedings”), pending or, to the
knowledge of the Company, threatened, that either (i) seeks to restrain, enjoin, prevent the
consummation of, or otherwise challenge any of the Documents or any of the transactions
contemplated therein, or (ii) would, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company is not subject to any judgment, order, decree,
rule or regulation of any Governmental Authority that would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

	(o)	 	The Company possesses all licenses, permits, certificates, consents, orders, approvals and
other authorizations from, and has made all declarations and filings with, all Governmental
Authorities, presently required or necessary to own or lease, as the case may be, and to
operate its properties and to carry on its business as now or proposed to be conducted as set
forth in the Time of Sale Document and the Final Offering Memorandum (“Permits”),
except where the failure to obtain such Permits would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect; the Company has fulfilled and
performed all of its obligations with respect to such Permits except for where the failure to
fulfill or perform such obligations would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect and, to the Company’s knowledge after due inquiry,
no event has occurred which allows, or after notice or lapse of time would allow, revocation
or termination thereof or results in any other material impairment of the rights of the holder
of any such Permit; and the Company has not received any notice of any proceeding relating to
revocation or modification of any such Permit, except as described in the Time of Sale
Document and the Final Offering Memorandum, or except where such revocation or modification
would not, individually or in the aggregate, have a Material Adverse Effect.
	 
	(p)	 	The Company has good and valid title to all real property owned by it and good title to all
personal property owned by it and good and valid title to all leasehold estates in real and
personal property being leased by it and, as of the Closing Date, all such property (real and
personal) will be free and clear of all liens, security interests, mortgages, pledges,
charges, equities, claims or restrictions on transferability or encumbrances of any kind
(collectively, “Liens), other than Permitted Liens. All Applicable Agreements to which
the Company is a party or by which it is bound are valid and enforceable against the Company,
and, to the Company’s knowledge, are valid and enforceable against the other party or parties
thereto and are in full force and effect with only such exceptions as would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.
	 
	(q)	 	All Tax returns required to be filed by the Company have been filed and all such returns are
true, complete, and correct in all material respects. All material Taxes that are due from
the Company have been paid other than those (i) currently payable without penalty or interest or (ii) being contested
in good faith and by appropriate proceedings and for which adequate reserves have been
established in accordance with generally accepted accounting principles of the United
States, consistently applied (“GAAP”). To the knowledge of the Company, after
reasonable inquiry, there are no actual or proposed Tax assessments against the Company that
would, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. The accruals and reserves on the books and records of the Company in respect of any
material Tax liability for any period not finally determined are adequate to meet any
assessments of Tax for any such period. For purposes of this Agreement, the term
“Tax” and “Taxes” shall mean all Federal, state, local and foreign taxes,
and other assessments of a similar nature (whether imposed directly or through withholding),
including any interest, additions to tax, or penalties applicable thereto.

 

 

	(r)	 	The Company owns, or is licensed under, and has the right to use, all patents, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures),
trademarks, service marks and trade names (collectively, “Intellectual Property”)
necessary for the conduct of its business, except where the failure to own or license such
Intellectual Property would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect and, as of the Closing Date, will be free and clear of all
Liens, other than Permitted Liens. No claims or notices of any potential claim have been
asserted by any person challenging the use of any such Intellectual Property by the Company or
questioning the validity or effectiveness of the Intellectual Property or any license or
agreement related thereto (other than any claims that, if successful, would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect). The use of
such Intellectual Property by the Company will not infringe on the Intellectual Property
rights of any other person in any material manner.
	 
	(s)	 	The Company maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) material transactions are executed in accordance with
management’s general or specific authorization, (ii) material transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP, and to
maintain asset accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any material differences.
	 
	(t)	 	The audited financial statements and related notes of the Company contained in the Time of
Sale Document and the Final Offering Memorandum (the “Financial Statements”) present
fairly the financial position, results of operations and cash flows of the Company or Valero
Refining Company – Louisiana, as the case may be, as of the respective dates and for the
respective periods to which they apply and have been prepared in accordance with GAAP and the
requirements of Regulation S-X of the Act. Except as disclosed in the Time of Sale Document
and the Final Offering Memorandum, the financial data set forth under “Summary Historical and
Adjusted Financial and Operating Data” and “Selected Historical Financial Data” included in
the Final Offering Memorandum has been prepared on a basis consistent with that of the
Financial Statements and present fairly the financial position and results of operations of
the Company as of the respective dates and for the respective periods indicated. Except as
disclosed in the Time of Sale Document and the Final Offering Memorandum, the unaudited pro
forma financial information and related notes of the Company contained in the Time of Sale
Document and the Final Offering Memorandum have been prepared in accordance with the
requirements of Regulation S-X and give effect to assumptions used in the preparation thereof
on a reasonable basis and in good faith. All other financial, statistical, and market and
industry-related data included in the Time of Sale Document and the Final Offering Memorandum
are fairly and accurately presented and are based on or derived from sources that the Company
believes to be reliable and accurate.
	 
	(u)	 	Subsequent to the respective dates as of which information is given in the Time of Sale
Document and the Final Offering Memorandum, except as disclosed in or contemplated by the Time
of Sale Document and the Final Offering Memorandum, (i) the Company has not incurred any
liabilities, direct or contingent, that are material, individually or in the aggregate, to the
Company, or has entered into any transactions not in the ordinary course of business, (ii)
there has not been any material decrease in the capital stock or any material increase in
long-term indebtedness or any material increase in short-term indebtedness of the Company, or any payment of or declaration to pay any dividends or any other distribution
with respect to the Company, and (iii) there has not been any material adverse change in the
properties, business, operations, earnings, assets, liabilities or condition (financial or
otherwise) of the Company (each of clauses (i), (ii) and (iii), a

 

 

	 	 	“Material Adverse Change”). To the knowledge of the Company after reasonable inquiry, except as disclosed
in the Time of Sale Document and the Final Offering Memorandum, there is no event that is
reasonably likely to occur, which if it were to occur, would, individually or in the
aggregate, have a Material Adverse Effect.
	 
	(v)	 	No “nationally recognized statistical rating organization” (as such term is defined for
purposes of Rule 436(g)(2) under the Act) (i) has imposed (or has informed the Company that it
is considering imposing) any condition (financial or otherwise) on the Company retaining any
rating assigned to the Company or to any securities of the Company, or (ii) has indicated to
the Company that it is considering (A) the downgrading, suspension, or withdrawal of, or any
review for a possible change that does not indicate the direction of the possible change in,
any rating so assigned, or (B) any change in the outlook for any rating of the Company or any
securities of the Company.
	 
	(w)	 	All indebtedness represented by the Notes is being incurred for proper purposes and in good
faith. On the Closing Date, after giving pro forma effect to the Offering and the use of
proceeds therefrom as indicated in the “Use of Proceeds” section of the Time of Sale Document
and Final Offering Memorandum, the Company will be Solvent. As used in this paragraph, the
term “Solvent” means, with respect to a particular date, that on such date (i) the
present fair market value (or present fair saleable value) of the assets of the Company is not
less than the total amount required to pay the liabilities of the Company on its total
existing debts and liabilities (including contingent liabilities) as they become absolute and
matured; (ii) the Company is able to pay its debts and other liabilities, contingent
obligations and commitments as they mature and become due in the normal course of business;
(iii) assuming consummation of the issuance of the Notes as contemplated by this Agreement and
the Time of Sale Document and Offering Memorandum, the Company is not incurring debts or
liabilities beyond its ability to pay as such debts and liabilities mature; (iv) the Company
is not engaged in any business or transaction, and does not propose to engage in any business
or transaction, for which its property would constitute unreasonably small capital after
giving due consideration to the prevailing practice in the industry in which the Company is
engaged; and (v) the Company is not otherwise insolvent under the standards set forth in
applicable laws.
	 
	(x)	 	Except as contemplated by the Time of Sale Document and the Final Offering Memorandum, the
Company has not, and to its knowledge after reasonable inquiry, no one acting on its behalf
has, (i) taken, directly or indirectly, any action designed to cause or to result in, or that
has constituted or which might reasonably be expected to constitute, the stabilization or
manipulation of the price of any security of the Company to facilitate the sale or resale of
any of the Notes, (ii) sold, bid for, purchased, or paid anyone any compensation for
soliciting purchases of, any of the Notes, or (iii) except as disclosed in the Time of Sale
Document and the Final Offering Memorandum, paid or agreed to pay to any person any
compensation for soliciting another to purchase any other securities of the Company.
	 
	(y)	 	Without limiting any provision herein, no registration under the Act and no qualification of
the Indenture under the TIA is required for the sale of the Notes to the Initial Purchaser as
contemplated hereby or for the Exempt Resales, assuming (i) that the purchasers in the Exempt
Resales are QIBs or Accredited Investors or non-U.S. persons (as defined under Regulation S of
the Act) and (ii) the accuracy of the Initial Purchaser’s representations contained herein
regarding the absence of general solicitation in connection with the sale of the Notes to the
Initial Purchaser and in the Exempt Resales.
	 
	(z)	 	The Notes are eligible for resale pursuant to Rule 144A under the Act and no other securities
of the Company are of the same class (within the meaning of Rule 144A under the Act) as the
Notes

 

 

	 	 	and listed on a national securities exchange registered under Section 6 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or quoted in a U.S.
automated inter-dealer quotation system. No securities of the Company of the same class as
the Notes have been offered, issued or sold by the Company or any of its respective Affiliates
within the six-month period immediately prior to the date hereof.
	 
	(aa)	 	Neither of the Company nor any of its respective affiliates or other person acting on behalf
of the Company has offered or sold the Notes by means of any general solicitation or general
advertising within the meaning of Rule 502(c) under the Act or, with respect to Notes sold
outside the United States to non-U.S. persons (as defined in Rule 902 under the Act), by means
of any directed selling efforts within the meaning of Rule 902 under the Act, and the Company,
any affiliate of the Company and any person acting on behalf of the Company have complied with
and will implement the “offering restrictions” within the meaning of such Rule 902;
provided, that no representation is made in this subsection with respect to the
actions of the Initial Purchaser.
	 
	(bb)	 	Except as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (1) each “employee benefit plan,” within the meaning of Section 3(3)
of the United States Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), which the Company or any ERISA Affiliate (as defined below) sponsors or
maintains, or with respect to which the Company or any ERISA Affiliate has (or within the last
three years had) any obligation to make contributions (each, a “Plan”), is in
compliance with its terms and the requirements of any presently applicable statutes, orders,
rules and regulations, including but not limited to ERISA and the Internal Revenue Code of
1986, as amended (the “Code”), (2) the Company and each ERISA Affiliate has fulfilled
its obligations, if any, under the minimum funding standards of Section 412 of the Code or
Section 302 of ERISA with respect to any Plan that is subject to Section 412 of the Code or
Section 302 of ERISA, (3) neither the Company nor any ERISA Affiliate has incurred any unpaid
liability to the Pension Benefit Guaranty Corporation (other than for the payment of premiums
in the ordinary course and without default) or to any Plan under Title IV of ERISA, (4) no
“reportable event” (within the meaning of Section 4043(c) of ERISA) has occurred or is
reasonably expected to occur with respect to any Plan that is subject to Title IV of ERISA and
(5) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of
the Code, has occurred with respect to any Plan excluding transactions to which a statutory or
administrative prohibited transaction exemption applies. “ERISA Affiliate” means a
corporation, trade or business that is, along with the Company, a member of a controlled group
of corporations or a controlled group of trades or businesses and would be deemed a “single
employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b)
of ERISA.
	 
	(cc)	 	(i) The Company is not party to or bound by any collective bargaining agreement with any
labor organization; (ii) there is no union representation question existing with respect to
the employees of the Company , and, to the knowledge of the Company after due inquiry, no
union organizing activities are taking place that, would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect; (iii) to the Company’s knowledge, no
union organizing or decertification efforts are underway or threatened against the Company;
(iv) no labor strike, work stoppage, slowdown, or other material labor dispute is pending
against the Company, or, to the knowledge of the Company, after due inquiry, threatened
against the Company; (iv) there is no worker’s compensation liability, experience or matter
that would, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect; (v) to the knowledge of the Company, after due inquiry, there is no threatened
or pending action against the Company pursuant to the Worker Adjustment Retraining and
Notification Act of 1988, as amended (“WARN”), or any similar state or local law; (vi)
there is no employment-related charge, complaint, grievance,

 

 

	 	 	investigation, unfair labor practice claim, or inquiry of any kind, pending against the Company that would, individually
or in the aggregate, have a Material Adverse Effect; and (vii) to the knowledge of the
Company, after due inquiry, no employee or agent of the Company has committed any act or
omission giving rise to liability for any violation identified in subsection (v) and (vi)
above, other than such acts or omissions that would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.
	 
	(dd)	 	None of the transactions contemplated in the Documents or the application of the proceeds by
the Company of the proceeds of the Notes will violate or result in a violation of Section 7 of
the Exchange Act, (including, without limitation, Regulation T (12 C.F.R. Part 220),
Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R. Part 224) of the Board of
Governors of the Federal Reserve System).
	 
	(ee)	 	The Company is not an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of the United
States Investment Company Act of 1940 (the “Investment Company Act”); and the Company will not, after giving
effect to the Offering and sale of the Notes and the application of the proceeds thereof as
described in the Time of Sale Document and the Final Offering Memorandum, be an “investment
company” as defined in the Investment Company Act.
	 
	(ff)	 	The Company has not engaged any broker, finder, commission agent or other person (other than
the Initial Purchaser) in connection with the Offering or any of the transactions contemplated
in the Documents, and the Company is not under any obligation to pay any broker’s fee or
commission in connection with such transactions (other than commissions or fees to the Initial
Purchaser).
	 
	(gg)	 	The Company (i) is in compliance with any and all applicable foreign, federal, state and
local laws and regulations relating to the protection of the environment or hazardous or toxic
substances of wastes, pollutants or contaminants (“Environmental Laws”), (ii) has
received and is in compliance with all permits, licenses or other approvals required of them
under applicable Environmental Laws to conduct its respective businesses and (iii) has not
received notice of any actual or potential liability for the investigation or remediation of
any disposal or release of hazardous or toxic substances or wastes, pollutants or
contaminants, in each case except where such non-compliance with Environmental Laws, failure
to receive and comply with required permits, licenses or other approvals, or liability would
not, individually or in the aggregate, have a Material Adverse Effect, whether or not arising
from transactions in the ordinary course of business. The Company has not been named as a
“potentially responsible party” under the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended.
	 
	(hh)	 	In the ordinary course of its business, the Company periodically reviews the effects of
Environmental Laws on the business, operations and properties of the Company, in the course of
which it identifies and evaluates associated costs and liabilities (including, without
limitation, any capital or operating expenditures required for clean-up, closure of properties
or compliance with Environmental Laws, or any permit, license or approval, any related
constraints on operating activities and any potential liabilities to third parties). On the
basis of such review, the Company has concluded that such associated costs would not
reasonably be expected to have a Material Adverse Effect.
	 
	(ii)	 	Each certificate signed by any officer of the Company and delivered to the Initial Purchaser
shall be deemed a representation and warranty by the Company (and not individually by such
officer) to the Initial Purchaser with respect to the matters covered thereby.

 

 

	(jj)	 	The Company is insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the business in which it is
engaged. All policies of insurance insuring the Company or its business, assets, employees,
officers and directors are in full force and effect. The Company is in compliance with the
terms of such policies and instruments in all material respects, and there are no claims by
the Company under any such policy or instrument as to which any insurance company is denying
liability or defending under a reservation of rights clause. The Company has not been refused
any insurance coverage sought or applied for, and the Company has no reason to believe that it
will not be able to renew its existing insurance coverage as and when such coverage expires or
to obtain similar coverage from similar insurers as may be necessary to continue its business
at a cost that would not, individually or in the aggregate, have a Material Adverse Effect.
All information certified by an officer of the Company in the Perfection Certificate dated as
of the Closing Date and delivered by such officer on behalf of the Company is true and correct
as of the Closing Date.
	 
	(kk)	 	[Intentionally Deleted.]
	 
	(ll)	 	KPMG LLP, who has certified the financial statements contained in the Time of Sale Document
and the Final Offering Memorandum, is an independent registered public accounting firm with
respect to the Company within the applicable rules and regulations adopted by the SEC and the
Public Accounting Oversight Board (United States) and as required by the Act.
	 
	(mm)	 	(i) The Company is not, and, to the knowledge of the Company, no director, officer, agent,
employee or Affiliate of the Company is, aware of or has taken any action, directly or
indirectly, that would result in a violation by such Persons of the Foreign Corrupt Practices
Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”),
including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce corruptly in furtherance of an offer, payment, promise to pay or
authorization of the payment of any money, or other property, gift, promise to give, or
authorization of the giving of anything of value to any “foreign official” (as such term is
defined in the FCPA) or any foreign political party or official thereof or any candidate for
foreign political office, in contravention of the FCPA; and (ii) the Company, and, to the
knowledge of the Company, its Affiliates have conducted their businesses in compliance with
the FCPA and have instituted and maintain policies and procedures designed to ensure, and
which are reasonably expected to continue to ensure, continued compliance therewith, except in
the case of clauses (i) and (ii), where the matters underlying any failure of the statements
to be true and correct would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.
	 
	(nn)	 	(i) The operations of the Company are and have been conducted at all times in compliance with
applicable financial recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes of all
jurisdictions, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”); and (ii) no action, suit or proceeding by
or before any court or governmental agency, authority or body or any arbitrator involving the
Company with respect to the Money Laundering Laws is pending or, to the knowledge of the
Company, threatened, except in the case of clauses (i) and (ii), where the matters underlying
any failure of the statements to be true and correct would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
	 
	(oo)	 	The Company is not, and, to the knowledge of the Company, no director, officer, agent,
employee or Affiliate of the Company is, currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Department of the Treasury
(“OFAC”); and the Company

 

 

	 	 	will not directly or indirectly use the proceeds of the Offering of the Notes hereunder, or lend, contribute or otherwise make available such proceeds
to any subsidiary, joint venture partner or other person or entity, for the purpose of
financing the activities of any person currently subject to any U.S. sanctions administered by
OFAC.

              5. Covenants of the Company. The Company agrees:

	(a)	 	To (i) advise the Initial Purchaser promptly after obtaining knowledge (and, if requested by
the Initial Purchaser, confirm such advice in writing) of (A) the issuance by any state
securities commission of any stop order suspending the qualification or exemption from
qualification of any of the Notes for offer or sale in any jurisdiction, or the initiation of
any proceeding for such purpose by any state securities commission or other regulatory
authority, or (B) the happening of any event that makes any statement of a material fact made
in the Time of Sale Document or the Final Offering Memorandum, untrue or that requires the
making of any additions to or changes in the Time of Sale Document or the Final Offering
Memorandum in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, (ii) use its reasonable best efforts to prevent the
issuance of any stop order or order suspending the qualification or exemption from
qualification of any of the Notes under any state securities or Blue Sky laws, and (iii) if,
at any time, any state securities commission or other regulatory authority shall issue an
order suspending the qualification or exemption from qualification of any of the Notes under
any such laws, use its reasonable best efforts to obtain the withdrawal or lifting of such
order at the earliest possible time.
	 
	(b)	 	To (i) furnish the Initial Purchaser, without charge, as many copies of the Time of Sale
Document and the Final Offering Memorandum, and any amendments or supplements thereto, as the
Initial Purchaser may reasonably request, and (ii) promptly prepare, upon the Initial
Purchaser’s reasonable request, any amendment or supplement to the Offering Memorandum that
the Initial Purchaser, upon advice of legal counsel, determines may be necessary in connection
with Exempt Resales (and the Company hereby consents to the use of the Time of Sale Document
and the Final Offering Memorandum, and any amendments and supplements thereto, by the Initial
Purchaser in connection with Exempt Resales).
	 
	(c)	 	Not to amend or supplement the Time of Sale Document or the Final Offering Memorandum prior
to the Closing Date, or at any time prior to the completion of the resale by the Initial
Purchaser of all the Notes purchased by the Initial Purchaser, unless the Initial Purchaser
shall previously have been advised thereof and shall have provided its written consent
thereto.
	 
	(d)	 	So long as the Initial Purchaser shall hold any of the Notes, (i) if any event shall occur as
a result of which, in the reasonable judgment of the Company or the Initial Purchaser, it
becomes necessary or advisable to amend or supplement the Final Offering Memorandum in order
to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or if it is necessary to amend or supplement the Final Offering Memorandum to
comply with Applicable Law, to prepare, at the expense of the Company, an appropriate
amendment or supplement to the Final Offering Memorandum (in form and substance reasonably
satisfactory to the Initial Purchaser) so that (A) as so amended or supplemented, the Final
Offering Memorandum will not include an untrue statement of material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and (B) the Final Offering
Memorandum will comply with Applicable Law and (ii) if in the reasonable judgment of the
Company it becomes necessary or advisable to amend or supplement the Final Offering Memorandum
so that the Final Offering Memorandum will contain all of the information specified in, and
meet the requirements of, Rule 144A(d)(4) of the Act, to prepare an appropriate amendment or
supplement to the Final

 

 

	 	 	Offering Memorandum (in form and substance reasonably satisfactory to the Initial Purchaser) so that the Final Offering Memorandum, as so amended or supplemented,
will contain the information specified in, and meet the requirements of, such Rule.
	 
	(e)	 	To cooperate with the Initial Purchaser and the Initial Purchaser’s counsel in connection
with the qualification of the Notes under the securities or Blue Sky laws of such
jurisdictions as the Initial Purchaser may request and continue such qualification in effect
so long as reasonably required for Exempt Resales.
	 
	(f)	 	Subject to Section 14(c) hereof, whether or not any of the Offering or the
transactions contemplated under the Documents are consummated or this Agreement is terminated,
to pay (i) all costs, expenses, fees and taxes incident to and in connection with: (A) the
preparation, printing and distribution of the Time of Sale Document and the Final Offering
Memorandum and all amendments and supplements thereto (including, without limitation,
financial statements and exhibits), and all other agreements, memoranda, correspondence and
other documents prepared and delivered in connection herewith, (B) the negotiation, printing,
processing and distribution (including, without limitation, word processing and duplication
costs) and delivery of, each of the Documents, (C) the preparation, issuance and delivery of
the Notes, (D) the qualification of the Notes for offer and sale under the securities or Blue
Sky laws of the several states, (E) furnishing such copies of the Time of Sale Document and
the Final Offering Memorandum, and all amendments and supplements thereto, as may reasonably
be requested for use by the Initial Purchaser and (F) the performance of the obligations of
the Company under the Registration Rights Agreement, including but not limited to the Exchange
Offer, the Exchange Offer Registration Statement and any Shelf Registration Statement (as each
such term is defined in the Registration Rights Agreement), (ii) all fees and expenses of the
counsel, accountants and any other experts or advisors retained by the Company, (iii) all fees
and expenses (including, without limitation, fees and expenses of counsel) of the Company in
connection with approval of the Notes by DTC for “book-entry” transfer, (iv) all fees charged
by rating agencies in connection with the rating of the Notes, (v) all fees and expenses
(including reasonable fees and expenses of counsel) of the Trustee and all collateral agents,
and (vi) all costs and expenses in connection with the creation and perfection of the Security
Agreement (including without limitation, filing and recording fees, search fees, taxes and
costs of title policies).
	 
	(g)	 	To use the proceeds of the Offering in the manner described in the Time of Sale Document and
the Final Offering Memorandum under the caption “Use of Proceeds.”
	 
	(h)	 	To do and perform all things required to be done and performed under the Documents prior to
and after the Closing Date.
	 
	(i)	 	Not to, and to ensure that no affiliate (as defined in Rule 501(b) of the Act) of the Company
will, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any
“security” (as defined in the Act) that would be integrated with the sale of the Notes in a manner that would require the
registration under the Act of the sale to the Initial Purchaser or to the Subsequent
Purchasers of the Notes.
	 
	(j)	 	For so long as any of the Notes remain outstanding, during any period in which the Company is
not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request, to
any owner of the Notes in connection with any sale thereof and any prospective Subsequent
Purchasers of such Notes from such owner, the information required by Rule 144A(d)(4) under
the Act.

 

 

	(k)	 	To comply with the representation letter of the Company to DTC relating to the approval of
the Notes by DTC for “book entry” transfer.
	 
	(l)	 	For so long as any of the Notes remain outstanding, the Company will furnish to the Initial
Purchaser copies of all reports and other communications (financial or otherwise) furnished by
the Company to the Trustee or to the holders of the Notes and, as soon as available, copies of
any reports or financial statements furnished to or filed by the Company with the SEC or any
national securities exchange on which any class of securities of the Company may be listed;
provided, that such materials shall be deemed delivered to the Initial Purchaser if such
materials are available on the SEC’s EDGAR service (or its successor).
	 
	(m)	 	Except in connection with the Exchange Offer or the filing of the Shelf Registration
Statement, not to, and not to authorize or permit any person acting on its behalf to, (i)
distribute any offering material in connection with the offer and sale of the Notes other than
the Time of Sale Document and the Final Offering Memorandum and any amendments and supplements
to the Final Offering Memorandum prepared in compliance with this Agreement (other than the
Supplemental Offering Materials), or (ii) solicit any offer to buy or offer to sell the Notes
by means of any form of general solicitation or general advertising (including, without
limitation, as such terms are used in Regulation D under the Act) or in any manner involving a
public offering within the meaning of Section 4(2) of the Act.
	 
	(n)	 	During the one-year period after the Closing Date (or such shorter period as may be provided
for in Rule 144 under the Act, as the same may be in effect from time to time), to not, and to
not permit any current or future Subsidiaries of either the Company or any other affiliates
(as defined in Rule 144A under the Act) controlled by the Company to, resell any of the Notes
which constitute “restricted securities” under Rule 144 that have been reacquired by the
Company, any current or future Subsidiaries or any other affiliates (as defined in Rule 144A
under the Act) controlled by the Company, except pursuant to an effective registration
statement under the Act.
	 
	(o)	 	The Company shall pay all stamp, documentary and transfer taxes and other duties, if any,
which may be imposed by the United States or any political subdivision thereof or taxing
authority thereof or therein with respect to the issuance of the Notes or the sale thereof to
the Initial Purchaser.

              6. Representations and Warranties of the Initial Purchaser. The Initial Purchaser
represents and warrants that:

	(a)	 	It is a QIB as defined in Rule 144A under the Act and it will offer the Notes for resale only
upon the terms and conditions set forth in this Agreement and in the Time of Sale Document and
the Final Offering Memorandum.
	 
	(b)	 	It is not acquiring the Notes with a view to any distribution thereof that would violate the
Act or the securities laws of any state of the United States or any other applicable
jurisdiction. In connection with the Exempt Resales, it will solicit offers to buy the Notes
only from, and will offer and sell the Notes only to, (A) persons reasonably believed by the
Initial Purchaser to be QIBs or (B) persons reasonably believed by the Initial Purchaser to be
Accredited Investors or (C) non-U.S. persons reasonably believed by the Initial Purchaser to
be a purchaser referred to in Regulation S under the Act; provided, however,
that in purchasing such Notes, such persons are deemed to have represented and agreed as
provided under the caption “Notice to Investors” contained in the Time of Sale Document and
the Final Offering Memorandum.

 

 

	(c)	 	No form of general solicitation or general advertising (as those terms are defined in
Regulation D under the Act) in violation of the Act has been or will be used nor will any
offers in any manner involving a public offering within the meaning of Section 4(2) of the Act
or, with respect to Notes to be sold in reliance on Regulation S, by means of any directed
selling efforts be made by the Initial Purchaser or any of its representatives in connection
with the offer and sale of any of the Notes.

              7. Conditions. The obligations of the Initial Purchaser to purchase the Notes under
this Agreement are subject to the performance by the Company of its covenants and obligations
hereunder and the satisfaction of each of the following conditions:

	(a)	 	All the representations and warranties of the Company that are qualified by materiality or
Material Adverse Effect contained in this Agreement and in each of the Documents shall be true
and correct, and the representations and warranties of the Company contained in this Agreement
and in each of the Documents that are not qualified by materiality or Material Adverse Effect
shall be true and correct in all material respects, in each case, as of the date hereof and at
the Closing Date. On or prior to the Closing Date, the Company and each other party to the
Documents (other than the Initial Purchaser) shall have performed or complied in all material
respects with all of the agreements and satisfied all conditions on their respective parts to
be performed, complied with or satisfied pursuant to the Documents (other than conditions to
be satisfied by such other parties, which the failure to be so satisfied would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect).
	 
	(b)	 	No injunction, restraining order or order of any nature by a Governmental Authority shall
have been issued as of the Closing Date that would prevent or materially interfere with the
consummation of the Offering or any of the transactions contemplated under the Documents; and
no stop order suspending the qualification or exemption from qualification of any of the Notes
in any jurisdiction shall have been issued and no Proceeding for that purpose shall have been
commenced or, to the knowledge of the Company after due inquiry, be pending or contemplated as
of the Closing Date.
	 
	(c)	 	No action shall have been taken and no Applicable Law shall have been enacted, adopted or
issued that would, as of the Closing Date, prevent the consummation of the Offering or any of
the transactions contemplated under the Documents. No Proceeding shall be pending or, to the
knowledge of the Company after due inquiry, threatened other than Proceedings that would not,
individually or in the aggregate, have a Material Adverse Effect.
	 
	(d)	 	Subsequent to the respective dates as of which data and information is given in the Time of
Sale Document and the Final Offering Memorandum, there shall not have been any Material
Adverse Change.
	 
	(e)	 	On or after the date hereof, (i) there shall not have occurred any downgrading, suspension or
withdrawal of, nor shall any notice have been given of any potential or intended downgrading,
suspension or withdrawal of, or of any review (or of any potential or intended review) for a
possible change that does not indicate the direction of the possible change in, any rating of
the Company or any securities of the Company (including, without limitation, the placing of
any of the foregoing ratings on credit watch with negative or developing implications or under
review with an uncertain direction) by any “nationally recognized statistical rating
organization” as such term is defined for purposes of Rule 436(g)(2) under the Act, (ii) there
shall not have occurred any change, nor shall any notice have been given of any potential or
intended change, in the outlook for any rating of the Company or any securities of the Company
by any such rating

 

 

	 	 	organization and (iii) no such rating organization shall have given notice that it has
assigned (or is considering assigning) a lower rating to the Notes than that on which the
Notes were marketed.

	(f)	 	The Initial Purchaser shall have received on the Closing Date:

	 	(i)	 	certificates dated the Closing Date, signed by (1) the chief executive officer
and (2) the chief financial officer of the Company, on behalf of the Company, to the
effect that (a) the representations and warranties that are qualified by materiality or
Material Adverse Effect set forth in Section 4 hereof and in each of the
Documents and the Perfection Certificate are true and correct, and the representations
and warranties set forth in Section 4 hereof and in each of the Documents and the Perfection Certificate
that are not qualified by materiality or Material Adverse Effect shall be true and
correct in all material respects with the same force and effect, in each case, as
though expressly made at and as of the Closing Date, (b) the Company has performed
and complied with all agreements and satisfied all conditions in all material
respects on its part to be performed or satisfied at or prior to the Closing Date,
(c) at the Closing Date, since the date hereof, no event or events have occurred and
no information has become known that, individually or in the aggregate, would
reasonably be expected to have a Material Adverse Effect, (d) since the date of the
most recent financial statements in the Time of Sale Document and the Final Offering
Memorandum (exclusive of any amendment or supplement thereto after the date hereof),
other than as described in the Time of Sale Document and the Final Offering
Memorandum or contemplated thereby, the Company has not incurred any liabilities or
obligations, direct or contingent, not in the ordinary course of business, that are
material to the Company, or entered into any transactions not in the ordinary course
of business that are material to the business, condition (financial or otherwise) or
results of operations or prospects of the Company, and there has not been any change
in the capital stock or long-term indebtedness of the Company that is material to
the business, condition (financial or otherwise) or results of operations or
prospects of the Company, and (e) the sale of the Notes has not been enjoined
(temporarily or permanently).
	 
	 	(ii)	 	a certificate, dated the Closing Date, executed by the secretary of the
Company, certifying such matters as the Initial Purchaser may reasonably request.
	 
	 	(iii)	 	a certificate of solvency, dated the Closing Date, executed by the principal
financial or accounting officer of the Company substantially in the form previously
approved by the Initial Purchaser or its counsel.
	 
	 	(iv)	 	(i) the opinion, in the form of Exhibit A attached hereto, and (ii) an
opinion relating to security interests in the form of Exhibit B attached
hereto, each dated the Closing Date, of Jones Day, counsel to the Company.
	 
	 	(v)	 	Milling Benson Woodward L.L.P., special Louisiana counsel to the Company, shall
have furnished to the Initial Purchaser and the Collateral Agent, at the request of the
Company, its written opinion, dated the Closing Date and addressed to the Initial
Purchaser and the Collateral Agent, substantially in the form of Exhibit C
attached hereto.
	 
	 	(vi)	 	an opinion and 10b-5 letter, each dated the Closing Date, of White & Case LLP,
counsel to the Initial Purchaser, in form satisfactory to the Initial Purchaser
covering such matters as are customarily covered in such opinions.

 

 

	(g)	 	The Initial Purchaser shall have received a copy of an executed amendment to, or an executed
amendment and restatement of, the Revolving Credit Facility, in form and substance reasonably
satisfactory to the Initial Purchaser, and such amendment shall have become (or concurrently
with the issuance of the Notes will become) effective.
	 
	(h)	 	The Company shall have delivered fully executed counterparts of Mortgages in respect of real
property owned in fee by the Company, each dated as of the Closing Date, duly executed by the
Company, together with evidence of the completion (or satisfactory arrangements for the
completion), of all recordings and filings of such Mortgage as may be necessary to create a
valid, perfected Lien, subject to Permitted Liens, against the properties to be covered
thereby.
	 
	(i)	 	The Initial Purchaser shall have received the structuring fee set forth in Section 4(b) of
the Engagement Letter dated as of September 25, 2009 between the Initial Purchaser and the
Company.
	 
	(j)	 	The Initial Purchaser shall have received from KPMG LLP, independent auditors with respect to
the Company, (A) a customary comfort letter, dated the date of the Final Offering Memorandum,
in form and substance reasonably satisfactory to the Initial Purchaser and its counsel, with
respect to the financial statements and certain financial information contained in the Time of
Sale Document and the Final Offering Memorandum, and (B) a customary comfort letter, dated the
Closing Date, in form and substance reasonably satisfactory to the Initial Purchaser and its
counsel, to the effect that KPMG LLP reaffirms the statements made in its letter furnished
pursuant to clause (A) with respect to the financial statements and certain financial
information contained in the Time of Sale Document and the Final Offering Memorandum.
	 
	(k)	 	Each of the Documents shall have been executed and delivered by all parties thereto, and the
Initial Purchaser shall have received a fully executed original of each Document (other than
Mortgages in respect of leasehold interests in real property, deposit account control
agreements and securities account control agreements).
	 
	(l)	 	The Initial Purchaser shall have received copies of all opinions, certificates, letters and
other documents delivered under or in connection with the Offering or any transaction
contemplated in the Documents delivered pursuant to Section 7(j) hereof.
	 
	(m)	 	The terms of each Document delivered pursuant to Section 7(j) hereof shall conform in
all material respects to the description thereof in the Time of Sale Document and the Final
Offering Memorandum.
	 
	(n)	 	The Collateral Agent shall have received (with a copy for the Initial Purchaser) on the
Closing Date:

	 	(i)	 	appropriately completed copies of Uniform Commercial Code (“UCC”)
financing statements naming the Company as a debtor and the Collateral Agent as the
secured party, or other similar instruments or documents to be filed under the UCC of
all jurisdictions as may be necessary or, in the reasonable opinion of the Collateral
Agent and its counsel, desirable to perfect the security interests of the Collateral
Agent pursuant to the Security Agreement;
	 
	 	(ii)	 	appropriately completed copies of Form UCC-3 termination statements, if any,
necessary to release all Liens (other than Permitted Liens) of any Person in any
collateral described in any Security Agreement previously granted by any Person;

 

 

	 	(iii)	 	certified copies of UCC Requests for Information or Copies (Form UCC-11), or a
similar search report certified by a party acceptable to the Collateral Agent, dated a
date reasonably near to the Closing Date, listing all effective financing statements
which name the Company (under its present name and any name of the Company used during
the immediately preceding five year period ending on the Closing Date) as the debtor,
together with copies of such financing statements (none of which shall cover any
collateral described in any Collateral Document, other than such financing statements
that evidence Permitted Liens and financing statements in respect of which UCC-3
termination statements have been delivered pursuant to the immediately preceding clause
(ii)); and
	 
	 	(iv)	 	the Collateral Agent and its counsel shall be reasonably satisfied that (i) the
Lien granted to the Collateral Agent, for the benefit of the Secured Parties in the
collateral described above is of the priority described in the Time of Sale Document
and the Final Offering Memorandum; and (ii) no Lien (other than any Lien being released
contemporaneously with the issuance of the Notes) exists on any of the collateral
described above other than the Lien created in favor of the Collateral Agent, for the
benefit of the Secured Parties, pursuant to a Collateral Document, in each case subject
to the Permitted Liens.

              8. Indemnification and Contribution.

	(a)	 	The Company agrees to indemnify and hold harmless the Initial Purchaser, its directors,
officers and employees, and each person, if any, who controls the Initial Purchaser within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act, against any losses,
claims, damages or liabilities of any kind to which the Initial Purchaser, director, officer,
employee or such controlling person may become subject under the Act, the Exchange Act or
other federal or state statutory law or regulation, or at common law or otherwise (including
in settlement of any litigation, if such settlement is effected with the written consent of
the Company (not to be unreasonably withheld, delayed or conditioned), insofar as any such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are
based upon:

	 	(i)	 	any untrue statement or alleged untrue statement of a material fact contained
in the Time of Sale Document or the Final Offering Memorandum, or any amendment or
supplement thereto; or
	 
	 	(ii)	 	the omission or alleged omission to state, in the Time of Sale Document or the
Final Offering Memorandum or any amendment or supplement thereto or any Supplemental
Offering Materials, a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not
misleading

	 	 	and, subject to the provisions hereof, will reimburse, as incurred, the Initial Purchaser,
director, officer, employee and each such controlling person for any reasonable legal or
other expenses incurred by the Initial Purchaser or such controlling person in connection
with investigating, defending against or appearing as a third-party witness in connection
with any such loss, claim, damage, liability or action in respect thereof;
provided, however, the Company will not be liable in any such case to the
extent (but only to the extent) that a court of competent jurisdiction shall have
determined by a final, unappealable judgment that such loss, claim, damage or liability
resulted from any untrue statement or alleged untrue statement or omission or alleged
omission made in the Time of Sale Document or the Final Offering Memorandum or any
amendment or supplement thereto or any Supplemental Offering Materials in reliance upon and
in conformity with written information concerning the Initial Purchaser furnished to the
Company by the Initial

 

 

	 	 	Purchaser specifically for use therein, it being understood and agreed that the only such
information furnished by the Initial Purchaser to the Company consists of the information
described in Section 12 below.

	(b)	 	The Initial Purchaser agrees to indemnify and hold harmless each of the Company and its
directors, officers and each person, if any, who controls the Company within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or
liabilities to which the Company or any such director, officer or controlling person may
become subject under the Act, the Exchange Act or otherwise, insofar as a court of competent
jurisdiction shall have determined by a final, unappealable judgment that such losses, claims,
damages or liabilities (or actions in respect thereof) have resulted from (i) any untrue
statement or alleged untrue statement of any material fact contained in the Time of Sale
Document or the Final Offering Memorandum or any amendment or supplement thereto or any
Supplemental Offering Materials or (ii) the omission or the alleged omission to state therein
a material fact required to be stated in the Time of Sale Document or the Final Offering
Memorandum or any amendment or supplement thereto or any Supplemental Offering Materials or
necessary to make the statements therein not misleading, in each case to the extent (but only
to the extent) that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information concerning the
Initial Purchaser, furnished to the Company or its agents by the Initial Purchaser
specifically for use therein; and, subject to the limitation set forth immediately preceding
this clause, will reimburse, as incurred, any reasonable legal or other expenses incurred by
the Company or any such director, officer or controlling person in connection with any such
loss, claim, damage, liability or action in respect thereof. The Company hereby acknowledges
that the only information that the Initial Purchaser has furnished to the Company or its
agents specifically for use in the Time of Sale Document or the Final Offering Memorandum or
any amendment or supplement thereto, or any Supplemental Offering Materials, consists of the
information described in Section 12 below.

	(c)	 	As promptly as reasonably practicable after receipt by an indemnified party under this
Section 8 of notice of the commencement of any action for which such indemnified party is
entitled to indemnification under this Section 8, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under this Section
8, notify the indemnifying party of the commencement thereof in writing; but the omission
to so notify the indemnifying party (i) will not relieve such indemnifying party from any
liability under paragraph (a) or (b) above unless and only to the extent it is materially
prejudiced as a result thereof and (ii) will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification obligation
provided in paragraphs (a) and (b) above. In case any such action is brought against any
indemnified party, and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent that it may
elect, jointly with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party; provided,
however, that if (i) the use of counsel chosen by the indemnifying party to represent
the indemnified party would present such counsel with a conflict of interest, (ii) the
defendants in any such action include both the indemnified party and the indemnifying party,
and the indemnified party shall have concluded that a conflict may arise between the positions
of the indemnifying party and the indemnified party in conducting the defense of any such
action or that there may be one or more legal defenses available to it and/or other
indemnified parties that are different from or additional to those available to the
indemnifying party, or (iii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a reasonable
time after receipt by the indemnifying party of notice of the institution of such action,
then, in each such case, the indemnifying party shall not have the right to direct the defense
of such action on behalf of such indemnified party or parties and such

 

 

	 	 	indemnified party or parties shall have the right to select separate counsel to defend such
action on behalf of such indemnified party or parties at the expense of the indemnifying
party. After notice from the indemnifying party to such indemnified party of its election
so to assume the defense thereof and approval by such indemnified party of counsel appointed
to defend such action, the indemnifying party will not be liable to such indemnified party
under this Section 8 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection with the
defense thereof, unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the immediately preceding sentence (it being understood,
however, that in connection with such action the indemnifying party shall not be liable for
the expenses of more than one separate counsel (in addition to local counsel) in any one
action or separate but substantially similar actions in the same jurisdiction arising out of
the same general allegations or circumstances, designated by the Initial Purchaser in the
case of paragraph (a) of this Section 8 or the Company in the case of paragraph (b)
of this Section 8, representing the indemnified parties under such paragraph (a) or
paragraph (b), as the case may be, who are parties to such action or actions), (ii) the
indemnifying party has authorized in writing the employment of counsel for the indemnified
party at the expense of the indemnifying party or (iii) the indemnifying party shall not
have employed counsel satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of commencement of the action, in each of which
cases the fees and expenses of counsel shall be at the expense of the indemnifying party and
shall be paid as they are incurred. After such notice from the indemnifying party to such
indemnified party, the indemnifying party will not be liable for the costs and expenses of
any settlement of such action effected by such indemnified party without the prior written
consent of the indemnifying party (which consent shall not be unreasonably withheld), unless
such indemnified party waived in writing its rights under this Section 8, in which
case the indemnified party may effect such a settlement without such consent.

	(d)	 	No indemnifying party shall be liable under this Section 8 for any settlement of any
claim or action (or threatened claim or action) effected without its written consent, which
shall not be unreasonably withheld, but if a claim or action is settled with its written
consent, or if there be a final judgment for the plaintiff with respect to any such claim or
action, each indemnifying party jointly and severally agrees, subject to the exceptions and
limitations set forth above, to indemnify and hold harmless each indemnified party from and
against any and all losses, claims, damages or liabilities (and legal and other expenses as
set forth above) incurred by reason of such settlement or judgment. No indemnifying party
shall, without the prior written consent of the indemnified party (which consent shall not be
unreasonably withheld), effect any settlement or compromise of any pending or threatened
proceeding in respect of which the indemnified party is or could have been a party, or
indemnity could have been sought hereunder by the indemnified party, unless such settlement
(A) includes an unconditional written release of the indemnified party, in form and substance
satisfactory to the indemnified party, from all liability on claims that are the subject
matter of such proceeding and (B) does not include any statement as to an admission of fault,
culpability or failure to act by or on behalf of the indemnified party.

	(e)	 	In circumstances in which the indemnity agreement provided for in the preceding paragraphs of
this Section 8 is unavailable to, or insufficient to hold harmless, an indemnified
party in respect of any losses, claims, damages or liabilities (or actions in respect
thereof), each indemnifying party, in order to provide for just and equitable contributions,
shall contribute to the amount paid or payable by such indemnified party as a result of such
losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as
is appropriate to reflect (i) the relative benefits received by the indemnifying party or
parties, on the one hand, and the indemnified party, on the other, from the Offering or (ii)
if the allocation provided by the foregoing clause (i) is not permitted by applicable law, not
only such relative benefits but also the relative fault of the

 

 

	 	 	indemnifying party or parties, on the one hand, and the indemnified party, on the other, in
connection with the statements or omissions or alleged statements or omissions that resulted
in such losses, claims, damages or liabilities (or actions in respect thereof). The
relative benefits received by the Company, on the one hand, and the Initial Purchaser, on
the other, shall be deemed to be in the same proportion as the total proceeds from the
Offering (before deducting expenses) received by the Company bear to the total discounts and
commissions received by the Initial Purchaser. The relative fault of the parties shall be
determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company, on the one hand, or the Initial Purchaser,
on the other, the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission or alleged statement or omissions, and any
other equitable considerations appropriate in the circumstances.

	(f)	 	The Company and the Initial Purchaser agree that it would not be equitable if the amount of
such contribution determined pursuant to the immediately preceding paragraph (e) were
determined by pro rata or per capita allocation or by any other method of allocation that does
not take into account the equitable considerations referred to in the first sentence of the
immediately preceding paragraph (e). Notwithstanding any other provision of this Section
8, the Initial Purchaser shall not be obligated to make contributions hereunder that in
the aggregate exceed the total discounts, commissions and other compensation received by the
Initial Purchaser under this Agreement, less the aggregate amount of any damages that the
Initial Purchaser has otherwise been required to pay by reason of the untrue or alleged untrue
statements or the omissions or alleged omissions to state a material fact. No person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of the immediately preceding paragraph (e), each person, if
any, who controls the Initial Purchaser within the meaning of Section 15 of the Act or Section
20 of the Exchange Act shall have the same rights to contribution as the Initial Purchaser,
and each director of the Company, each officer of the Company and each person, if any, who
controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange
Act, shall have the same rights to contribution as the Company.

              9. Termination. The Initial Purchaser may terminate this Agreement at any time prior
to the Closing Date by written notice to the Company if any of the following has occurred:

	(a)	 	since the date hereof, any Material Adverse Effect or development involving or expected to
result in a prospective Material Adverse Effect that could, in the Initial Purchaser’s
judgment, be expected to make it impracticable or inadvisable to proceed with the offering or
delivery of the Notes on the terms and in the manner contemplated in the Time of Sale Document
and the Final Offering Memorandum;
	 
	(b)	 	the failure of the Company to satisfy the conditions contained in Section 7(a) hereof
on or prior to the Closing Date;
	 
	(c)	 	any outbreak or escalation of hostilities or other national or international calamity or
crisis, including acts of terrorism, or material adverse change or disruption in economic
conditions in, or in the financial markets of, the United States (it being understood that any
such change or disruption shall be relative to such conditions and markets as in effect on the
date hereof), if the effect of such outbreak, escalation, calamity, crisis, act or material
adverse change in the economic conditions in, or in the financial markets of, the United
States could be reasonably expected to make it, in the Initial Purchaser’s sole reasonable
judgment, impracticable or inadvisable to market or proceed with the offering or delivery of
the Notes on the terms and in the

 

 

	 	 	manner contemplated in the Time of Sale Document and the Final Offering Memorandum or to
enforce contracts for the sale of any of the Notes;
	(d)	 	the suspension or limitation of trading generally in securities on the New York Stock
Exchange, the American Stock Exchange or the NASDAQ National Market or any setting of
limitations on prices for securities on any such exchange or NASDAQ National Market; or
	 
	(e)	 	the declaration of a banking moratorium by any Governmental Authority; or the taking of any
action by any Governmental Authority after the date hereof in respect of its monetary or
fiscal affairs that in the Initial Purchaser’s opinion could reasonably be expected to have a
material adverse effect on the financial markets in the United States or elsewhere.

              10. Survival of Representations and Indemnities. The representations and warranties,
covenants, indemnities and contribution and expense reimbursement provisions and other agreements,
representations and warranties of the Company set forth in or made pursuant to this Agreement shall
remain operative and in full force and effect, and will survive delivery of and payment for the
Notes sold hereunder, and any termination of this Agreement.

              11. Default by the Initial Purchaser. If the Initial Purchaser shall breach its
obligations to purchase the Notes that it has agreed to purchase hereunder on the Closing Date and
arrangements satisfactory to the Company for the purchase of such Notes are not made within 36
hours after such default, this Agreement shall terminate with respect to the Initial Purchaser
without liability on the part of the Company, except that the provisions of Sections 8 and
14(c) hereof shall survive such termination. Nothing herein shall relieve the Initial
Purchaser from liability for its default.

              12. Information Supplied by the Initial Purchaser. The statements set forth on the
cover page with respect to price and name of the Initial Purchaser, the first paragraph (only as it
relates to the name of the Initial Purchaser), the third paragraph, the fifth and sixth sentences
of the fifth paragraph, the sixth paragraph and the eight paragraph under the heading “Plan of
Distribution” in the Time of Sale Document and the Final Offering Memorandum (to the extent such
statements relate to the Initial Purchaser) constitute the only information furnished by the
Initial Purchaser to the Company for the purposes of Sections 4(a) and 8 hereof.

              13. No Fiduciary Relationship. The Company hereby acknowledges that the Initial
Purchaser is acting solely as initial purchaser in connection with the purchase and sale of the
Notes. The Company further acknowledges that the Initial Purchaser is acting pursuant to a
contractual relationship created solely by this Agreement entered into on an arm’s length basis,
and in no event do the parties intend that the Initial Purchaser act or be responsible as a
fiduciary to the Company or its management, stockholders or creditors or any other person in
connection with any activity that the Initial Purchaser may undertake or have undertaken in
furtherance of the purchase and sale of the Notes, either before or after the date hereof. The
Initial Purchaser hereby expressly disclaims any fiduciary or similar obligations to the Company,
either in connection with the transactions contemplated by this Agreement or any matters leading up
to such transactions, and the Company hereby confirms its understanding and agreement to that
effect. The Company and the Initial Purchaser agree that they are each responsible for making their
own independent judgments with respect to any such transactions and that any opinions or views
expressed by the Initial Purchaser to the Company regarding such transactions, including, but not
limited to, any opinions or views with respect to the price or market for the Notes, do not
constitute advice or recommendations to the Company. The Company hereby waives and releases, to the
fullest extent permitted by law, any claims that the Company may have against the Initial Purchaser
with respect to any breach or alleged breach of any fiduciary or similar duty to the Company in
connection with the transactions contemplated by this Agreement or any matters leading up to such
transactions.

 

 

              14. Miscellaneous.

	(a)	 	Notices given pursuant to any provision of this Agreement shall be addressed as follows:

	 	 	 
	(i)

	 	if to the Company, to
	 
	 	 
	 

	 	Alon Refining Krotz Springs, Inc.
	 

	 	7616 LBJ Freeway, Suite 300
	 

	 	Dallas, Texas 75251
	 

	 	Attention: Secretary
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Jones Day
	 

	 	2727 North Harwood Street
	 

	 	Dallas, Texas 75201-1515
	 

	 	Attention: Mark E. Betzen
	 
	 	 
	(ii)

	 	if to the Initial Purchaser, to:
	 
	 	 
	 

	 	Jefferies & Company, Inc.
	 

	 	520 Madison Avenue
	 

	 	New York, New York 10022
	 

	 	Attention: General Counsel

	 	 	(or in any case to such other address as the person to be notified may have requested in
writing).

	(b)	 	This Agreement has been and is made solely for the benefit of the Company and the Initial
Purchaser and, to the extent provided in Section 8 hereof, the controlling persons,
officers, directors, partners, employees, representatives and agents referred to in
Section 8, and shall be binding upon the Company and the Initial Purchaser and their
respective heirs, executors, administrators, successors and assigns, all as and to the extent
provided in this Agreement, and no other person shall acquire or have any right under or by
virtue of this Agreement. The term “successors and assigns” shall not include a purchaser of
any of the Notes from the Initial Purchaser merely because of such purchase. Notwithstanding
the foregoing, it is expressly understood and agreed that each purchaser who purchases Notes
from the Initial Purchaser is intended to be a beneficiary of the covenants of the Company
contained in the Registration Rights Agreement to the same extent as if the Notes were sold
and those covenants were made directly to such purchaser by the Company, and each such
purchaser shall have the right to take action against the Company to enforce, and obtain
damages for any breach of, those covenants.
	 
	(c)	 	The Initial Purchaser shall pay and be solely responsible for all out-of-pocket expenses
(including fees and expenses of its counsel) incurred by the Initial Purchaser and its
designated affiliates in connection with their services to be rendered hereunder, the Offering
or the transactions contemplated under the Documents.
	 
	(d)	 	THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH
HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN, WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW.

 

 

	(e)	 	THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY (I) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF
THE FEDERAL AND STATE COURTS SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN
ANY SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY; AND (II) WAIVES (A) ITS RIGHT TO A TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE INITIAL
PURCHASER OR THE COMPANY AND FOR ANY COUNTERCLAIM RELATED TO ANY OF THE FOREGOING AND (B) ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
	 
	(f)	 	This Agreement may be signed in various counterparts, which together shall constitute one and
the same instrument (including by means of telecopied or portable document format (PDF)
signature pages).
	 
	(g)	 	The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.
	 
	(h)	 	If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall
use their best efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.
	 
	(i)	 	This Agreement may be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may be given, provided that the same are in writing and
signed by all of the signatories hereto.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 

 

          Please confirm that the foregoing correctly sets forth the agreement between the Company and
the Initial Purchaser.

	 	 	 	 	 
	 	Very truly yours,

ALON REFINING KROTZ SPRINGS, INC.

 	 
	 	By:  	/s/ Jeff D. Morris
 	 
	 	 	Name:  	Jeff D. Morris 	 
	 	 	Title:  	Chief Executive Officer 	 

Purchase
Agreement - signature page

 

 

	 	 	 	 	 

	 	 	 
	Accepted and Agreed to:
	 
	 	 
	JEFFERIES & COMPANY, INC.
	 
	 	 
	By:

	 	/s/ Stephen Straty
	 

	 	 
	 

	 	Name: Stephen Straty
	 

	 	Title: Managing Director

Purchase
Agreement - signature page

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