Document:

Exhibit 10.5

 

AMENDMENT NO. 1 TO

EXCHANGE AGREEMENT

 

This Amendment Number 1 (the “Amendment”) is made and entered into as
of October 9, 2003, by and between Nektar Therapeutics, a Delaware corporation (the “Company”) and the
entities set forth on Appendix I hereto (each a “Holder” and collectively the “Holders”).

 

RECITALS

 

Whereas,
the Company and the Holders entered into an Exchange Agreement dated October 3,
2003 (the “Agreement”)
pursuant to which the Holders shall exchange and cancel a portion of the Holders’
beneficial interest in the Company’s 3.5% Convertible Subordinated Notes due
2007 (the “Prior Notes”)
in consideration for the issuance by the Company to the Holders of the
Company’s 3% Convertible Subordinated Notes due 2010 (the “New Notes”) (the “Exchange”); and

 

Whereas,
the Company and the Holders desire to enter into this Amendment to amend the
Agreement.

 

AGREEMENT

 

Now,
Therefore, in consideration of the mutual agreements,
covenants and considerations contained herein, the receipt of which are hereby
acknowledged, the undersigned hereby agree as follows:

 

1.             Section 2.2.  Section 2.2 is hereby amended, restated and
replaced with the following:

 

(a)         At the Closing, subject
to the terms and conditions set forth herein, the Company shall issue and
deliver to each Holder, against evidence of cancellation of such Holder’s
beneficial interests in the Prior Notes, a note (the “Note”) in favor of such Holder, payable in
the principal amount set forth opposite such Holder’s name in Appendix I.

 

(b)         At the Closing, subject
to the terms and conditions hereof, each Holder will cancel its beneficial
interest in the Prior Notes and deliver to the Company evidence that the such
beneficial interest has been cancelled on records maintained in book-entry form
by The Depository Trust Company (“DTC”) and its participants.

 

2.             Section 6.4.  A new Section 6.4 shall be added to the
Agreement as follows:

 

Section 6.4          The Depository Trust Company Eligibility.  The Company covenants that it shall use its
commercially reasonable efforts to cause the New Notes to be deposited with DTC
and the Holders’ ownership to be reflected in book entry-form as soon as
reasonably practicable in accordance with DTC policies and procedures,
following the effective date of a registration statement covering the resale of
the New Notes by the Holder.

 

 

3.             Counterparts.  This Amendment may be executed in any number
of counterparts, each of which shall be an original, and all of which shall
constitute one instrument.

 

4.             Full Force and Effect.  The provisions of the Agreement shall remain
in full force and effect, except as set forth herein.

 

2

 

In Witness Whereof,
the parties hereto have executed this Amendment as
of the date set forth in the first paragraph hereof.

 

	
  COMPANY:

  
	
   

  	
   

  
	
  Nektar Therapeutics

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Ajit S. Gill

  	
   

  
	
   

  	
  Ajit S. Gill

  
	
   

  	
  President, Chief Executive

  Officer and Director

  
	
   

  	
   

  
	
  Address:

  	
  150 Industrial Road

  
	
   

  	
  San Carlos,
  CA 94070

  
				

 

3

 

	
  HOLDERS:

  
	
   

  
	
  Alexandra Global Master Fund Ltd.

  
	
   

  
	
  By:

  	
  Alexandra
  Investment Management, LLC,

  
	
   

  	
  as Investment
  Advisor

  
	
   

  
	
   

  
	
  Signature:

  	
   

  	
  /s/ Dimitri Sogoloff

  	
   

  
	
   

  	
   

  
	
  Print Name:

  	
   

  	
  Dimitri Sogoloff

  	
   

  
	
   

  	
   

  
	
  Title:

  	
     President

  	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  c/o Alexandra Investment Management, LLC

  
	
  767 Third  Avenue

  
	
  39th Floor

  
	
  New York, New York  10017

  
	
  Facsimile No.:  (212) 301-1810

  
							

 

4Exhibit 10.62

 

 

August 13, 2003

 

David E. Pertl, Senior Vice President & Chief Financial Officer

Fresh Choice, Inc.

485 Cochrane Circle

Morgan Hill, Ca 95037

 

Dear David,

 

In response to your recent request,
Mid-Peninsula Bank, subject to your acceptance and acknowledgement, hereby
agrees to amend our Revolving Loan Agreement with Fresh Choice, Inc. dated
October 5, 2001 (as amended June 3, 2002 and subsequently amended December 10,
2002) as follows:

 

•                  Section 4.8                              Other
Ratio.

Maintain a ratio, as of the end of each
fiscal quarter of Borrower, as measured on a rolling four fiscal quarter basis,
of (x) the amount of Borrower’s annual Net Income adjusted to exclude any
non-cash income and to exclude expenses for interest, taxes, depreciation,
amortization, asset impairment, and restaurant opening
costs; less the amount of dividends and distributions paid to shareholders of
Borrower, to (y) the amount of the current portion of long-term obligations as
reflected on Borrower’s most recent balance sheet plus the amount of the
interest expense for the preceding four fiscal quarters, that is equal to or
greater than 2.00 to 1.  Except as
provided above, all computations made to determine compliance with the
requirements contained in this paragraph shall be made in accordance with
generally accepted accounting principles, applied on a consistent basis, and
certified by Borrower as being true and correct.

 

Please sign and return the acknowledgement copy to this letter to me to
confirm your acceptance of the above modifications on behalf of Fresh Choice,
Inc.  In addition, your acknowledgement
will confirm to Mid-Peninsula Bank that, except as expressly changed by this
agreement, the terms of the original obligations of Fresh Choice, Inc. to
Mid-Peninsula Bank, including all agreements evidencing or securing the
obligations, remain unchanged and in full force and effect.

 

 

	
  Sincerely,

  
	
   

  
	
   

  
	
  /s/ Joe Stafford

  	
   

  
	
   

  
	
  Joe Stafford

  
	
  Senior Vice President

  
	
   

  
	
   

  
	
  Acknowledged and Accepted by:

  
	
  Fresh Choice, Inc.

  
	
  By:

  
	
   

  
	
   

  
	
  /s/ David E. Pertl

  	
   

  
	
  David E. Pertl, Senior Vice President & Chief Financial OfficerExhibit 10.63

 

 

August 13, 2003

 

David E. Pertl, Senior
Vice President & Chief Financial Officer

Fresh Choice, Inc.

485 Cochrane Circle

Morgan Hill, Ca 95037

 

Dear David,

 

In
response to your recent request, Mid-Peninsula Bank, subject to your acceptance
and acknowledgement, hereby agrees to amend our Commercial Deed Of Trust,
Financing Statement, Security Agreement and Fixture Filing (with Assignment Of
Rents and Leases) dated August 13, 2001, as follows:

 

•                  Section 10.3        Minimum
Ratio.

Trustor
shall maintain a ratio, as of the end of each fiscal year of Trustor, of (x)
the amount of Trustor’s annual Net Income adjusted to exclude any non-cash
income and to exclude expenses for interest, taxes, depreciation, amortization,
asset impairment, and restaurant
opening costs; less the amount of
dividends and distributions paid to shareholders of Trustor, to (y) the amount
of the current portion of long-term obligations plus the amount of the annual
interest expense for the fiscal year, that is equal to or greater than 2.00 to
1.  Except as provided above, all
computations made to determine compliance with the requirements contained in
this paragraph shall be based on Trustor’s most recent annual financial
statements, and shall be made in accordance with generally accepted accounting
principles, applied on a consistent basis, and certified by Trustor as being
true and correct.

 

Please sign and return
the acknowledgement copy to this letter to me to confirm your acceptance of the
above modifications on behalf of Fresh Choice, Inc.  In addition, your acknowledgement will confirm to Mid-Peninsula
Bank that, except as expressly changed by this agreement, the terms of the
original obligations of Fresh Choice, Inc. to Mid-Peninsula Bank, including all
agreements evidencing or securing the obligations, remain unchanged and in full
force and effect.

 

 

	
  Sincerely,

  
	
   

  
	
   

  
	
  /s/ Joe Stafford

  	
   

  
	
   

  
	
  Joe Stafford

  
	
  Senior Vice President

  
	
   

  
	
   

  
	
  Acknowledged and
  Accepted by:

  
	
  Fresh Choice, Inc.

  
	
  By:

  
	
   

  
	
   

  
	
  /s/ David E. Pertl

  	
   

  
	
  David E. Pertl, Senior
  Vice President & Chief Financial OfficerExhibit
4.1

 

EXECUTION
COPY

 

COLONIAL
REALTY LIMITED PARTNERSHIP, AS OBLIGOR

 

AND

 

BANKERS TRUST COMPANY,

 

AS TRUSTEE

 

 

 

INDENTURE

 

DATED AS OF JULY 22,
1996

 

 

 

Debt
Securities

 

 

 

TABLE OF
CONTENTS

 

	
  PARTIES

  
	
  RECITALS
  OF THE COMPANY

  
	
  ARTICLE ONE

  	
  DEFINITIONS AND OTHER PROVISIONS OF
  GENERAL APPLICATION

  
	
  SECTION 101.

  	
  Definitions

  
	
   

  	
  Acquisition Lines of
  Credit

  
	
   

  	
  Act

  
	
   

  	
  Additional Amounts

  
	
   

  	
  Adjusted Total Assets

  
	
   

  	
  Affiliate

  
	
   

  	
  Annual Service Charge

  
	
   

  	
  Authenticating Agent

  
	
   

  	
  Authorized Newspaper

  
	
   

  	
  Bankruptcy Law

  
	
   

  	
  Bearer Security

  
	
   

  	
  Board of Directors

  
	
   

  	
  Board Resolution

  
	
   

  	
  Business Day

  
	
   

  	
  CEDEL

  
	
   

  	
  Colonial

  
	
   

  	
  Commission

  
	
   

  	
  Company

  
	
   

  	
  Company Request

  
	
   

  	
  Consolidated
  Income Available for Debt Service

  
	
   

  	
  Consolidated Net Income

  
	
   

  	
  Conversion Event

  
	
   

  	
  Corporate Trust Office

  
	
   

  	
  corporation

  
	
   

  	
  coupon

  
	
   

  	
  CPHC

  
	
   

  	
  Custodian

  
	
   

  	
  Debt

  
	
   

  	
  Defaulted Interest

  
	
   

  	
  Disqualified Stock

  
	
   

  	
  DTC

  
	
   

  	
  Dollar or “$”

  
	
   

  	
  ECU

  
	
   

  	
  Euroclear

  
	
   

  	
  European Communities

  
	
   

  	
  European Monetary System

  
	
   

  	
  Event of Default

  
	
   

  	
  Exchange Act

  
	
   

  	
  Foreign Currency

  
	
   

  	
  GAAP

  
	
   

  	
  Government Obligations

  
	
   

  	
  Holder

  
	
   

  	
  Indenture

  
	
   

  	
  Indexed Security

  
	
   

  	
  interest

  
	
   

  	
  Interest Payment Date

  
	
   

  	
  IPO

  
	
   

  	
  Make-Whole Amount

  
	
   

  	
  Maturity

  
	
   

  	
  Officers’
  Certificate

  
	
   

  	
  Opinion of Counsel

  

 

2

 

	
   

  	
  Original Issue
  Discount Security

  
	
   

  	
  Outstanding

  
	
   

  	
  Paying Agent

  
	
   

  	
  Person

  
	
   

  	
  Place of Payment

  
	
   

  	
  Predecessor Security

  
	
   

  	
  Redemption Date

  
	
   

  	
  Redemption Price

  
	
   

  	
  Registered Security

  
	
   

  	
  Regular Record Date

  
	
   

  	
  Reinvestment Rate

  
	
   

  	
  Repayment Date

  
	
   

  	
  Repayment Price

  
	
   

  	
  Responsible Officer

  
	
   

  	
  Securities Act

  
	
   

  	
  Security

  
	
   

  	
  Security Register and Security
  Registrar

  
	
   

  	
  Significant Subsidiary

  
	
   

  	
  Special Record Date

  
	
   

  	
  Stated Maturity

  
	
   

  	
  Statistical Release

  
	
   

  	
  Subsidiary

  
	
   

  	
  Trust Indenture Act or TIA

  
	
   

  	
  Trustee

  
	
   

  	
  Unencumbered Total
  Asset Value

  
	
   

  	
  United States

  
	
   

  	
  United States person

  
	
   

  	
  Yield to Maturity

  
	
  SECTION 102.

  	
  Compliance
  Certificates and Opinions

  
	
  SECTION 103.

  	
  Form of Documents Delivered to Trustee

  
	
  SECTION 104.

  	
  Acts of Holders

  
	
  SECTION 105.

  	
  Notices, etc., to Trustee and Company

  
	
  SECTION 106.

  	
  Notice to Holders; Waiver

  
	
  SECTION 107.

  	
  Effect of Headings and Table of
  Contents

  
	
  SECTION 102.

  	
  Successors and Assigns

  
	
  SECTION 109.

  	
  Separability Clause

  
	
  SECTION 110.

  	
  Benefits of Indenture

  
	
  SECTION 111.

  	
  Non-Recourse

  
	
  SECTION 112.

  	
  Governing Law

  
	
  SECTION 113.

  	
  Legal Holidays

  
	
  ARTICLE TWO

  	
  SECURITIES FORMS

  
	
  SECTION 201.

  	
  Forms of Securities

  
	
  SECTION 202.

  	
  Form of Trustee’s Certificate of
  Authentication

  
	
  SECTION 203.

  	
  Securities Issuable in Global Form

  
	
  ARTICLE THREE

  	
  THE SECURITIES

  
	
  SECTION 301.

  	
  Amount Unlimited; Issuable in Series

  
	
  SECTION 302.

  	
  Denominations

  
	
  SECTION 303.

  	
  Execution, Authentication,
  Delivery and Dating

  
	
  SECTION 304.

  	
  Temporary Securities

  
	
  SECTION 305.

  	
  Registration, Registration of Transfer and
  Exchange

  
	
  SECTION 306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  
	
  SECTION 307.

  	
  Payment of Interest; Interest Rights
  Preserved

  
	
  SECTION 308.

  	
  Persons Deemed Owners

  
	
  SECTION 309.

  	
  Cancellation

  
	
  SECTION 310.

  	
  Computation of Interest

  
	
  ARTICLE FOUR

  	
  SATISFACTION AND DISCHARGE

  
	
  SECTION 401.

  	
  Satisfaction and Discharge of
  Indenture

  
	
  SECTION 402.

  	
  Application of Trust Funds

  
	
  ARTICLE FIVE

  	
  REMEDIES

  
	
  SECTION 501.

  	
  Events of Default

  

 

3

 

	
  SECTION 502.

  	
  Acceleration of Maturity;
  Rescission and Annulment

  
	
  SECTION 503.

  	
  Collection of Indebtedness and Suits
  for Enforcement by Trustee

  
	
  SECTION 504.

  	
  Trustee May File Proofs of Claim

  
	
  SECTION 505.

  	
  Trustee May Enforce Claims
  Without Possession of Securities or Coupons

  
	
  SECTION 506.

  	
  Aylication of Money Collected

  
	
  SECTION 507.

  	
  Limitqtion on Suits

  
	
  SECTION 508.

  	
  Unconditional Right of Holders to
  Receive Principal. Premium or Make-Whole Amount. if any. Interest and
  Additional Amounts

  
	
  SECTION 509.

  	
  Restoration of Rights and Remedies

  
	
  SECTION 510.

  	
  Rights and Remedies Cumulative

  
	
  SECTION 511.

  	
  Delay or Omission Not Waiver

  
	
  SECTION 512.

  	
  Control by Holders of Securities

  
	
  SECTION 513.

  	
  Waiver of Past Defaults

  
	
  SECTION 514.

  	
  Waiver of Usury, Stay or Extension
  Laws

  
	
  SECTION 515.

  	
  Undertaking for Costs

  
	
  ARTICLE SIX

  	
  THE TRUSTEE

  
	
  SECTION 601.

  	
  Notice of Defaults

  
	
  SECTION 602.

  	
  Certain Rights of Trustee

  
	
  SECTION 603.

  	
  Not Responsible for Recitals or
  Issuance of Securities

  
	
  SECTION 604.

  	
  May Hold Securities

  
	
  SECTION 605.

  	
  Money Held in Trust

  
	
  SECTION 606.

  	
  Compensation and Reimbursement

  
	
  SECTION 607.

  	
  Corporate Trustee Required;
  Eligibility; Conflicting Interests

  
	
  SECTION 608.

  	
  Resignation and Removal; Appointment
  of Successor

  
	
  SECTION 609.

  	
  Acceptance of Appointment by Successor

  
	
  SECTION 610.

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  
	
  SECTION 611.

  	
  Appointment of Authenticating Agent

  
	
  ARTICLE SEVEN

  	
  HOLDERS’ LISTS AND REPORTS BY
  TRUSTEE AND COMPANY

  
	
  SECTION 701.

  	
  Disclosure of Names and Addresses of
  Holders

  
	
  SECTION 702.

  	
  Reports by Trustee

  
	
  SECTION 703.

  	
  Reports by Company

  
	
  SECTION 704.

  	
  The Company to Furnish Trustee Names
  and Addresses of Holders

  
	
  ARTICLE EIGHT

  	
  CONSOLIDATION, MERGER, SALE, LEASE
  OR CONVEYANCE

  
	
  SECTION 801.

  	
  Consolidations and Mergers of Company
  and Sales, Leases and Conveyances Permitted Subject to Certain Conditions

  
	
  SECTION 802.

  	
  Rights and Duties of Successor Entity

  
	
  SECTION 803.

  	
  Officers’ Certificate and Opinion of
  Counsel

  
	
  ARTICLE NINE

  	
  SUPPLEMENTAL INDENTURES

  
	
  SECTION 901.

  	
  Supplemental Indentures Without
  Consent of Holders

  
	
  SECTION 902.

  	
  Supplemental Indentures with Consent
  of Holders

  
	
  SECTION 903.

  	
  Execution of Supplemental Indentures

  
	
  SECTION 904.

  	
  Effect of Supplemental Indentures

  
	
  SECTION 905.

  	
  Conformity with
  Trust Indenture Act

  
	
  SECTION 906.

  	
  Reference in Securities to
  Supplemental Indentures

  
	
  SECTION 907.

  	
  Notice of Supplemental Indentures

  
	
  ARTICLE TEN

  	
  COVENANTS

  
	
  SECTION 1001.

  	
  Payment of Principal, Premium (if
  any), Make—Whole Amount (if any), Interest and Additional Amounts

  
	
  SECTION 1002.

  	
  Maintenance of Office or Agency

  
	
  SECTION 1003.

  	
  Money for Securities Payments to Be
  Held in Trust

  
	
  SECTION 1004.

  	
  Limitations on Incurrence of Debt

  
	
  SECTION 1005.

  	
  [Intentionally Omitted]

  
	
  SECTION 1006.

  	
  Existence

  
	
  SECTION 1007.

  	
  Maintenance of Properties

  
	
  SECTION 1008.

  	
  Insurance

  
	
  SECTION 1009.

  	
  Payment of Taxes and Other Claims

  
	
  SECTION 1010.

  	
  Provision of Financial Information

  
	
  SECTION 1011.

  	
  Statement as to Compliance

  
	
  SECTION 1012.

  	
  Additional Amounts

  
	
  SECTION 1013.

  	
  Waiver of Certain Covenants

  

 

4

 

	
  ARTICLE ELEVEN

  	
  REDEMPTION OF SECURITIES

  
	
  SECTION 1101.

  	
  Applicability of Article

  
	
  SECTION 1102.

  	
  Election to Redeem; Notice to Trustee

  
	
  SECTION 1103.

  	
  Selection by Trustee of Securities to
  Be Redeemed

  
	
  SECTION 1104.

  	
  Notice of Redemption

  
	
  SECTION 1105.

  	
  Deposit of Redemption Price

  
	
  SECTION 1106.

  	
  Securities Payable on Redemption Date

  
	
  SECTION 1107.

  	
  Securities Redeemed in Part

  
	
  ARTICLE TWELVE

  	
  [INTENTIONALLY OMITTED]

  
	
  ARTICLE THIRTEEN

  	
  REPAYMENT AT THE OPTION OF
  HOLDERS

  
	
  SECTION 1301.

  	
  Applicability of Article

  
	
  SECTION 1302.

  	
  Repayment of Securities

  
	
  SECTION 1303.

  	
  Exercise of Option

  
	
  SECTION 1304.

  	
  When Securities Presented for
  Repayment Become Due and Payable

  
	
  SECTION 1305.

  	
  Securities Repaid in Part

  
	
  ARTICLE FOURTEEN

  	
  DEFEASANCE AND COVENANT
  DEFEASANCE

  
	
  SECTION 1401.

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

  
	
  SECTION 1402.

  	
  Defeasance and Discharge

  
	
  SECTION 1403.

  	
  Covenant Defeasance

  
	
  SECTION 1404.

  	
  Conditions to Defeasance or Covenant
  Defeasance

  
	
  SECTION 1405.

  	
  Deposited Money and
  Government Obligations to Be Held in Trust; Other Miscellaneous Provisions

  
	
  ARTICLE FIFTEEN

  	
  MEETINGS OF HOLDERS OF SECURITIES

  
	
  SECTION 1501.

  	
  Purposes for Which Meetings
  May Be Called

  
	
  SECTION 1502.

  	
  Call,
  Notice and Place of Meetings

  
	
  SECTION 1503.

  	
  Persons Entitled to Vote at Meetings

  
	
  SECTION 1504.

  	
  Quorum; Action

  
	
  SECTION 1505.

  	
  Determination of Voting Rights;
  Conduct and Adjournment of Meetings

  
	
  SECTION 1506.

  	
  Counting Votes and Recording Action
  of Meetings

  
	
  SECTION 1507.

  	
  Evidence of Action
  Taken by Holders

  
	
  SECTION 1508.

  	
  Proof of Execution of Instruments

  
	
  TESTIMONIUM

  
	
  SIGNATURES AND SEALS

  
	
  ACKNOWLEDGMENTS

  
	
  EXHIBIT A—FORMS OF CERTIFICATION

  

 

Colonial
Properties Trust, as Obligor

 

Reconciliation and tie between Trust Indenture Act of 1939 (the “1939
Act”) and this Indenture, dated as of July 22, 1996.

 

	
   

  	
   

  	
  Indenture
  Section

  
	
  Trust Indenture Act Section

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  §310

  	
  (a)(1)

  	
   

  	
  607

  
	
   

  	
  (a)(2)

  	
   

  	
  607

  
	
   

  	
  (b)

  	
   

  	
  607,608

  
	
  §312

  	
  (c)

  	
   

  	
  701

  
	
  §313

  	
  (a)

  	
   

  	
  70

  
	
   

  	
  (c)

  	
   

  	
  702

  
	
  §314

  	
  (a)

  	
   

  	
  703

  
	
   

  	
  (a)(4)

  	
   

  	
  1011

  
	
   

  	
  (c)(1)

  	
   

  	
  102

  
	
   

  	
  (c)(2)

  	
   

  	
  102

  
	
   

  	
  (e)

  	
   

  	
  102

  
	
  §315

  	
  (b)

  	
   

  	
  601

  
	
  §316

  	
  (a)(last sentence)

  	
   

  	
  101 (“Outstanding”)

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  502, 512

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  513

  
	
   

  	
  (b)

  	
   

  	
  508

  
					

 

5

 

	
  §317

  	
  (a)(1)

  	
   

  	
  503

  
	
   

  	
  (a)(2)

  	
   

  	
  504

  
	
  §318

  	
  (a)

  	
   

  	
  111

  
	
   

  	
  (c)

  	
   

  	
  111

  
	
   

  	
   

  	
   

  	
   

  

 

 

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

 

Attention should also be directed to Section 318 (c) of the
1939 Act, which provides that the provisions of Sections 310 to and including
317 of the 1939 Act are a part of and govern every qualified indenture, whether
or not physically contained therein.

 

PARTIES

 

Indenture (this “Indenture”), dated as of July 22, 1996, by and
between COLONIAL REALTY LIMITED PARTNERSHIP, a Delaware limited partnership
(the “Company”) having its principal office at 2101 Sixth Avenue North, Suite
750, Birmingham, Alabama 35203, and Bankers Trust Company, a New York banking
corporation, as Trustee hereunder (the “Trustee”), having its Corporate Trust
Office (as defined below) at Four Albany Street, New York, New York 10006.

 

RECITALS OF THE COMPANY

 

The Company deems it necessary to issue from time to time for its
lawful purposes debt securities (the “Securities”) evidencing its unsecured
indebtedness, and has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of the Securities,
unlimited as to principal amount, to bear interest at the rates or formulas, to
mature at such times and to have such other provisions as shall be fixed as
hereinafter provided.

 

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

 

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

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE ONE

DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 101.Definitions.For
all purposes of this Indenture, except as otherwise expressly provided or
unless the context otherwise requires:

 

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

 

(2)           all other terms used
herein which are defined in the TIA, either directly or by reference therein,
have the meanings assigned to them therein, and the terms “cash transaction”
and “self-liquidating paper”, as used in TIA Section 311, shall have the
meanings assigned to them in the rules of the Commission adopted under the TIA;

 

(3)           all accounting terms
not otherwise defined herein have the meanings assigned to them in accordance
with GAAP;and

 

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

 

“Acquisition Lines
of Credit” means, collectively, any secured lines of credit
of the Company or any Subsidiary, the proceeds of which shall be used, among
other things, to acquire interests, directly or indirectly, in real estate.

 

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

 

6

 

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

 

“Adjusted Total Assets”
as of any date means the sum of (i) $328,177,823 (which represents the amount
determined by multiplying the price at which Colonial’s common shares of
beneficial interest were offered in the IPO by the sum of (A) the common shares
of beneficial interest of Colonial issued in the IPO and (B) the Units of
the Company not held by Colonial that were issued in connection with the IPO),
(ii) $108,841,000 (which represents the principal amount of outstanding
Debt of the Company immediately following the IPO) and (iii) the purchase
price or cost of any real estate assets or mortgages receivable (or interests
therein) acquired (including the value of any Units issued in connection
therewith) or developed after the IPO and the amount of any securities offering
proceeds and other proceeds of Debt received after the IPO (to the extent such
proceeds were not used to acquire real estate assets or mortgages receivables
or used to reduce Debt), adjusted for the proceeds of any real estate assets
disposed of by the Company.

 

“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.

 

“Annual Service Charge”
as of any date means the amount of any interest expensed during the four
consecutive fiscal quarters most recently ended prior to such date.

 

“Authenticating Agent”
means any authenticating agent appointed by the Trustee pursuant to
Section 611.

 

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

 

“Bankruptcy Law”
has the meaning specified in Section 501.

 

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

 

“Board of Directors”
means the board of directors of CPHC, the executive committee or any committee
of that board duly authorized to act hereunder, as the case may be.

 

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

 

“Business Day”,
when used with respect to any Place of Payment or any other particular location
referred to in this Indenture or in the Securities, means, unless otherwise
specified with respect to any Securities pursuant to Section 301, any day,
other than a Saturday or Sunday, that is neither a legal holiday nor a day on
which banking institutions in that Place of Payment or particular location are
authorized or required by law, regulation or executive order to close.

 

“CEDEL”
means Centrale de Livraison de Valeurs Mobilieres, S.A., or its successor.

 

“Colonial”
means Colonial Properties Trust, an Alabama real estate investment trust.

 

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

 

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

 

“Company Request”
and “Company Order mean, respectively, a written request or order signed in the
name of and on behalf of the Company by the Chairman of the Board, the
President or a Vice President, and by the Treasurer or an Assistant Treasurer,
the Secretary or an Assistant Secretary of CPHC, as general partner of the
Company, and delivered to the Trustee.

 

7

 

“Consolidated Income Available for Debt Service”
for any period means Consolidated Net Income of the Company and its
Subsidiaries plus amounts which have been deducted for (a) interest on
Debt of the Company and its Subsidiaries, (b) provision for taxes of the
Company and its Subsidiaries based on income, (c) amortization of debt
discount, (d) provisions for gains and losses on properties,
(e) depreciation and amortization, (f) the effect of any noncash
charge resulting from a change in accounting principles in determining
Consolidated Net Income for such period and (g) amortization of deferred
charges.

 

“Consolidated Net
Income” for any period means the amount of net income (or
loss) of the Company and its Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP.

 

“Conversion Event”
means the cessation of use of (i) a Foreign Currency both by the
government of the country which issued such currency and for the settlement of
transactions by a central bank or other public institutions of or within the
international banking community, (ii) the ECU both within the European
Monetary System and for the settlement of transactions by public institutions
of or within the European Communities or (iii) any currency unit (or
composite currency) other than the ECU for the purposes for which it was
established.

 

“Corporate Trust Office”
means the principal corporate trust office of the Trustee at which, at any
particular time, its corporate trust business shall be administered, which
office at the date hereof is located at Four Albany Street, New York, New York
10006, except that for purposes of Section 1002, such term shall mean the
office or agency of the Trustee in the United Kingdom, which office at the date
hereof is located at One Appold Street, Broadgate, London EC2A 2HE,
England.

 

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

 

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

 

“CPHC
means Colonial Properties Holding Company, an Alabama corporation and sole
general partner of the Company.

 

“Custodian”
has the meaning specified in Section 501

 

“Debt”
of the Company or any Subsidiary means any indebtedness of the Company or any
Subsidiary, whether or not contingent, in respect of (i) borrowed money
evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness
secured by any mortgage, pledge, lien, charge, encumbrance or any security
interest existing on property owned by the Company or any Subsidiary,
(iii) reimbursement obligations in connection with any letters of credit
actually issued or amounts representing the balance deferred and unpaid of the
purchase price of any property except any such balance that constitutes an
accrued expense or trade payable or (iv) any lease of property by the
Company or any Subsidiary as lessee which is reflected on the Company’s
consolidated balance sheet as a capitalized lease in accordance with generally
accepted accounting principles; in the case of items of indebtedness incurred
under (i) through (iii) above to the extent that any such items
(other than letters of credit) would appear as a liability on the Company’s
consolidated balance sheet in accordance with generally accepted accounting
principles, and also includes, to the extent not otherwise included, any
obligation by the Company or any Subsidiary to be liable for, or to pay, as
obligor, guarantor or otherwise (other than for purposes of collection in the
ordinary course of business), indebtedness of another person (other than the
Company or any Subsidiary).

 

“Defaulted Interest” has the meaning
specified in Section 307

 

“Disqualified Stock” means, with
respect to any person, any capital stock or partnership interest of such person
which by the terms of such capital stock or partnership interest (or by the
terms of any security into which it is convertible or for which it is
exchangeable or exercisable), upon the occurrence of any event or otherwise:
(i) matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise; (ii) is convertible into or exchangeable or
exercisable for Debt or Disqualified Stock; or (iii) is redeemable at the
option of the holder thereof, in whole or in part, in each case on or prior to
the maturity of the relevant series of Securities.

 

“DTC”
means The Depository Trust Company for so long as it shall be a clearing agency
registered under the Exchange Act, or such successor as the Company shall
designate from time to time in an Officer’s Certificate delivered to the
Trustee.

 

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

 

“ECU”
means the European Currency Unit as defined and revised from time to time by
the Council of the European Communities.

 

“Euroclear”
means Morgan Guaranty Trust Company of New York, Brussels Office, or its
successor as operator of the Euroclear System.

 

8

 

“European Communities” means the
European Economic Community, the European Coal and Steel Community and the
European Atomic Energy Community.

 

“European Monetary System” means the
European Monetary System established by the Resolution of December 5, 1978
of the Council of the European Communities.

 

“Event of Default” has the meaning specified in Article Five

 

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

 

“Foreign Currency” means any
currency, currency unit or composite currency, including, without limitation,
the ECU issued by the government of one or more countries other than the United
States of America or by any recognized confederation or association of such
governments.

 

“GAAP”
means generally accepted accounting principles, as in effect from time to time,
as used in the United States applied on a consistent basis: provided, that solely for purposes of any
calculation required by the financial covenants contained herein, “GAAP” shall
mean generally accepted accounting principles as used in the United States on
the date hereof, applied on a consistent basis.

 

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

 

“Holder”
means, in the case of a Registered Security, the Person in whose name a
Security is registered in the Security Register and, in the case of a Bearer
Security, the bearer thereof and, when used with respect to any coupon, shall
mean the bearer thereof.

 

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

 

“Indexed Security” means a Security
the terms of which provide that the principal amount thereof payable at Stated
Maturity may be more or less than the principal face amount thereof at original
issuance.

 

“interest”
when used with respect to an Original Issue Discount Security which by its
terms bears interest only after Maturity, shall mean interest payable after
Maturity, and, when used with respect to a Security which provides for the
payment of Additional Amounts pursuant to Section 1012, includes such
Additional Amounts.

 

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

 

“IPO”
means the initial public offering of Colonial consummated in
September 1993.

 

“Make-Whole Amount” means, in
connection with any optional redemption of any Securities, the excess, if any,
of: (i) the aggregate present value as of the date of such redemption of
each dollar of principal being redeemed and the amount of interest (exclusive

 

9

 

of interest accrued to the date of redemption) that would have been
payable in respect of each such dollar if such redemption had not been made,
determined by discounting, on a semi-annual basis, such principal and interest
at the Reinvestment Rate (determined on the third Business Day preceding the
date notice of such redemption is given) from the respective dates on which
such principal and interest would have been payable if such redemption had not
been made, to the date of redemption; over (ii) the aggregate principal
amount of the Securities being redeemed.

 

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

 

“Officers’
Certificate” means a certificate signed by the Chairman of the Board of
Directors, the President or a Vice-President and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of CPHC, as general partner
of the Company, and delivered to the Trustee.

 

“Opinion of Counsel” means a written
opinion of counsel, who may be counsel for the Company or who may be an
employee of or other counsel for Colonial, CPHC or the Company and who shall be
reasonably satisfactory to the Trustee.

 

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

 

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

 

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

 

(ii)           Securities, or portions
thereof, for whose payment or redemption or repayment at the option of the
Holder money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its own Paying
Agent) for the Holders of such Securities and any coupons appertaining thereto,
provided that, if such Securities
are to be redeemed, notice of such redemption has been duly given pursuant to
this Indenture or provision therefor satisfactory to the Trustee has been made;

 

(iii)          Securities, except to
the extent provided in Sections 1402 and 1403. with respect to which the
Company has effected defeasance and /or covenant defeasance as provided in
Article Twelve; and

 

(iv)          Securities which have
been paid pursuant to Section 306 or in exchange for or in lieu of which
other Securities have been authenticated and delivered pursuant to this
Indenture, other than any such Securities in respect of which there shall have
been presented to the Trustee proof satisfactory to it that such Securities are
held by a bona fide purchaser in whose hands such Securities are valid
obligations of the Company;

 

provided,
however, that in determining whether the Holders of the
requisite principal amount of the Outstanding Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder
or are present at a meeting of Holders for quorum purposes, and for the purpose
of making the calculations required by TIA Section 313, (i) the
principal amount of an Original Issue Discount Security that may be counted in
making such determination or calculation and that shall be deemed to be
Outstanding for such purpose shall be equal to the amount of principal thereof
that would be (or shall have been declared to be) due and payable, at the time
of such determination, upon a declaration of acceleration of the maturity
thereof pursuant to Section 502, (ii) the principal amount of any
Security denominated in a Foreign Currency that may be counted in making such
determination or calculation and that shall be deemed Outstanding for such
purpose shall be equal to the Dollar equivalent, determined pursuant to
Section 301 as of the date such Security is originally issued by the Company,
of the principal amount (or, in the case of an Original Issue Discount
Security, the Dollar equivalent as of such date of original issuance of the
amount determined as provided in cause (i) above) of such Security,
(iii) the principal amount of any Indexed Security that may be counted in
making such determination or calculation and that shall be deemed outstanding
for such purpose shall be equal to the principal face amount of such Indexed
Security at original issuance, unless otherwise provided with respect to such
Security pursuant to Section 301, and (iv) Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in making such calculation or in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities which the
Trustee knows to be so owned shall be so
disregarded. Securities so owned
which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities
and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor.

 

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

 

10

 

Securities or coupons on behalf of the Company.

 

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

 

“Place of Payment”, when used with respect to the
Securities of or within any series, means the place or places where the
principal of (and premium, if any) and interest on such Securities are payable
as specified as contemplated by Sections 301 and 1002.

 

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

 

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

 

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

 

“Registered Security” shall mean any
Security which is registered in the Security Register.

 

“Regular Record Date” for the
interest payable on any Interest Payment Date on the Registered Securities of
or within any series means the date specified for that purpose as contemplated
by Section 301, whether or not a Business Day.

 

“Reinvestment Rate” means the yield
on Treasury securities at a constant maturity corresponding to the remaining
life (as of the date of redemption, and rounded to the nearest month) to Stated
Maturity of the principal being redeemed (the “Treasury Yield), plus 0.25%. For
purposes hereof, the Treasury Yield shall be equal to the arithmetic mean of
the yields published in the Statistical Release under the heading “Week Ending”
for “US. Government Securities—Treasury Constant Maturities” with a maturity
equal to such remaining life; provided,
that if no published maturity exactly corresponds to such remaining life, then
the Treasury Yield shall be interpolated or extrapolated on a straight-line
basis from the arithmetic means of the yields for the next shortest and next
longest published maturities. For purposes of calculating the Reinvestment
Rate, the most recent Statistical Release published prior to the date of
determination of the Make-Whole Amount shall be used. If the format or content
of the Statistical Release changes in a manner that precludes determination of
the Treasury Yield in the above manner, then the Treasury Yield shall be
determined in the manner that most closely approximates the above manner, as
reasonably determined by the Company.

 

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

 

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

 

“Responsible Officer”, when used
with respect to the Trustee, means the chairman or vice-chairman of the board
of directors, the chairman or vice-chairman of the executive committee of the
board of directors, the president, any vice president (whether or not
designated by a number or a word or words added before or after the title “vice
president”), the secretary, any assistant secretary, the treasurer, any
assistant treasurer, any trust officer or assistant trust officer, the
controller or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of such officer’s knowledge and
familiarity with the particular subject.

 

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

 

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

 

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

 

11

 

“Significant Subsidiary” means any
Subsidiary which is a “significant subsidiary” (as defined in Article I,
Rule 1-02 of Regulation S-X, promulgated under the Securities Act) of
the Company.

 

“Special Record Date” for the
payment of any Defaulted Interest on the Registered Securities of or within any
series means a date fixed by the Trustee pursuant to Section 307.

 

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

 

“Statistical Release” means the
statistical release designated “H.15(519)” or any successor publication which
is published weekly by the Federal Reserve System and which reports yields on
actively traded United States government securities adjusted to constant
maturities, or, if such statistical release is not published at the time of any
determination under the Indenture, then such other reasonably comparable index
whch shall be designated by the Company.

 

“Subsidiary” means a corporation, partnership or
limited liability company, a majority of the outstanding voting stock,
partnership interests or membership interests, as the case may be, of which is
owned or controlled, directly or indirectly, by the Company or by one or more Subsidiaries
of the Company. For the purposes of this definition, “voting stock” means stock
having the voting power for the election of directors, general partners,
managers or trustees, as the case may be, whether at all times or only so long
as no senior class of stock has such voting power by reason of any contingency.

 

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

 

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

 

“Unencumbered Total Asset Value” as
of any date means the sum of (i) the portion of Adjusted Total Assets
allocable to the Company’s real estate assets and (ii) the value of all
other assets of the Company and its Subsidiaries on a consolidated basis
determined in accordance with generally accepted accounting principles (but
excluding intangibles and accounts receivable), in each case which are
unencumbered by any mortgage, lien, charge, pledge or security interest. For
purposes of this definition, the portion of Adjusted Total Assets allocable to
each of the 36 properties owned by the Company at the time of the IPO shall be
determined by reference to each such property’s contribution to net operating
income of the Company at the time of the IPO, and the portion allocable to each
property acquired or developd after the IPO shall be equal to the purchase
price or cost of such property.

 

“United States” means, unless otherwise specified
with respect to any Securities pursuant to Section 301, the United States
of America (including the states and the District of Columbia), its
territories, its possessions and other areas subject to its jurisdiction.

 

“United States person” means, unless
otherwise specified with respect to any Securities pursuant to
Section 301, an individual who is a citizen or resident of the United
States, a corporation, Company or other entity created or organized in or under
the laws of the United States or an estate or trust the income of which is
subject to United States federal income taxation regardless of its source.

 

“Yield to Maturity” means the yield
to maturity, computed at the time of issuance of a Security (or, if applicable,
at the most recent redetermination of interest on such Security) and as set
forth in such Security in accordance with generally accepted United States bond
yield computation principles. SECTION 102.Compliance Certificates and Opinions.Upon
any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee
an Officers’ Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate
or opinion need be furnished.

 

Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture (including certificates delivered pursuant to Section 1011)
shall include:

 

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

 

12

 

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

 

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

 

(4)           a
statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with. SECTION 103.Form
of Documents Delivered to Trustee.In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the
opinion of, only one such Person, or that they be so certified or covered by
only one document, but one such Person may certify or give an opinion as to
some matters and one or more other such Persons as to other matters, and any
such Person may certify or give an opinion as to such matters in one or several
documents.

 

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

 

Where any Person
is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument. SECTION 104.Acts of Holders,(a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of the Outstanding
Securities of all series or one or more series, as the case may be, may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agents duly appointed in writing.
If Securities of a series are issuable as Bearer Securities, any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by ths Indenture to be given or taken by Holders of Securities of such
series may, alternatively, be embodied in and evidenced by the record of
Holders of Securities of such series voting in favor thereof, either in person
or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the
provisions of Article Fifteen, or a combination of such instruments and
any such record. Except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments or record or both
are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments and any such record (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments or so voting at any
such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, shall
be mfficient for any purpose of this Indenture and conclusive in favor of the
Trustee and the Company and any agent of the Trustee or the Company, if made in
the manner provided in this Section. The record of any meeting of Holders of
Securities shall be proved in the manner provided in Section 1506.

 

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

 

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

 

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

 

(e)           If the Company shall
solicit from the Holders of Registered Securities any request, demand,
authorization, direction, 

 

13

 

notice, consent, waiver or other Act, the Company may, at its option,
in or pursuant to a Board Resolution, fix in advance a record date for the
determination of Holders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act, but the Company shall have no
obligation to do so. Notwithstanding TIA Section 316(c), such record date
shall be the record date specified in or pursuant to such Board Resolution,
which shall be a date not earlier than the date 30 days prior to the first
solicitation of Holders generally in connection therewith and not later than
the date such solicitation is completed. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act
may be given before or after such record date, but only the Holders of record
at the close of business on such record date shall be deemed to be Holders for
the purposes of determining whether Holders of the requisite proportion of
Outstanding Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the Outstanding Securities shall be computed as of such record
date; provided that no such
authorization, agreement or consent by the Holders on such record date shall be
deemed effective unless it shall become effective pursuant to the provisions of
this Indenture not later than eleven months after the record date.

 

(f)            Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Security shall bind every future Holder of the same Security and the Holder
of every Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee, any Security Registrar, any Paying Agent,
any Authenticating Agent or the Company in reliance thereon, whether or not
notation of such action is made upon such Security. SECTION 105.Notices,
etc., to Trustee and Company.Any request, demand, authorization, direction,
notice, consent, waiver or Act of Holders or other document provided or
permitted by this Indenture to be made upon, given or furnished to, or filed
with,

 

(1)           the Trustee by any
Holder or by the Company shall be sufficient for every purpose hereunder if
made, given, furnished or filed in writing to or with the Trustee at its
Corporate Trust Office, or

 

(2)           the
Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and
mailed, first class postage prepaid, to the Company addressed to it at the
address of its principal office specified in the first paragraph of this
Indenture or at any other address previously furnished in writing to the
Trustee by the Company. SECTION 106.Notice to
Holders; Waiver.Where this Indenture provides for notice of any event to
Holders of Registered Securities by the Company or the Trustee, such notice
shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first- class postage prepaid, to each such Holder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date, and not earlier than the earliest date, prescribed for
the giving of such notice. In any caae where notice to Holders of Registered
Securities is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice mailed to a Holder in the manner herein
prescribed shall be conclusively deemed to have been received by such Holder,
whether or not such Holder actually receives such notice.

 

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

 

Except as otherwise
expressly provided herein or otherwise specified with respect to any Securities
pursuant to Section 301, where this Indenture provides for notice to Holders
of Bearer Securities of any event, such notice shall be sufficiently given if
published in an Authorized Newspaper in The City of New York and in such other
city or cities as may be specified in such Securities on a Business Day, such
publication to be not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. Any such notice shall
be deemed to have been given on the date of such publication or, if published
more than once, on the date of the first such publication.

 

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

 

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

 

Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver. SECTION 107.Effect of Headings and Table
of Contents.The Article and Section headings herein and the Table of
Contents are for 

 

14

 

convenience only and
shall not affect the construction hereof. SECTION 108.Successors
and Assigns.All covenants and agreements in this Indenture by the Company shall
be binding on their successors and assigns, whether so expressed or not. SECTION 109.Separability Clause.In case any provision
in this Indenture or in any Security or coupon shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. SECTION 110.Benefits of Indenture.Nothing in this
Indenture, in the Securities or coupons, express or implied, shall give to any
Person, other than the Parties hereto, any Security Registrar, any Paying
Agent, any Authenticating Agent and their successors hereunder and the Holders
any benefit or any legal or equitable right, remedy or claim under this
Indenture. SECTION 111.Non-Recourse.Notwithstanding
anything contained herein to the contrary, no recourse under or upon any
obligation, cxenant or agreement contained in this Indenture, in any Security
or coupon appertaining thereto, or because of any indebtedness evidenced
thereby (including, without limitation, any obligation or indebtedness relating
to the principal of, or premium or Make-Whole Amount, if any, interest or any
other amounts due, or claimed to be due, on any Security issued hereunder), or
for any claim based thereon or otherwise in respect thereof, shall be had (i) against
CPHC or any other partner in the Company, (ii) against Colonial or any
other Person which owns an interest, directly or indirectly, in any partner in
the Company or (iii) against any promoter, as such, or against any past,
present or future shareholder, officer, director or partner, as such, of the
Company, CPHC or Colonial or of any successor, either directly or through the
Company, CPHC or Colonial or any successor, 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 Securities by the Holders thereof
and as part of the consideration for the issue of the Securities. The Holders
of the Securities hereunder acknowledge by the acceptance of the Securities
that their sole remedies under this Indenture for any Default by the Company in
the payment of the principal of, or any premium or Make-Whole Amount, if any,
interest or any amounts due, or claimed to be due, on any Security, or
otherwise, are limited to claims against the property of the Company as
provided in Section 503 hereof. SECTION 112.Governing
Law.This Indenture and the Securities and coupons shall be governed by and
construed in accordance with the law of the State of New York. This Indenture
is subject to the provisions of the TIA that are required to be part of this
Indenture and shall, to the extent applicable, be governed by such provisions. SECTION 113.Legal Holidays.In any case where any
Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment
date, Stated Maturity or Maturity of any Security shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of this
Indenture or any Security or coupon other than a provision in the Securities of
any series which specifically states that such provision shall apply in lieu
hereof), payment of Interest or any Additional Amounts or principal (and
premium, if any) need not be made at such Place of Payment on such date, but
may be made on the next succeeding Business Day at such Place of Payment with
the same force and effect as if made on the Interest Payment Date, Redemption
Date, Repayment Date or sinking fund payment date, or at the Stated Maturity or
Maturity, prouided that no
interest shall accrue on the amount so payable for the period from and after
such Interest Payment Date, Redemption Date, Repayment Date, sinking fund
payment date, Stated Maturity or Maturity, as the case may be.

 

ARTICLE TWO

 

SECURITIES FORMS

 

SECTION 201.Forms of Securities.The Registered
Securities, if any, of each series and the Bearer Securities, if any, of each
series and related coupons shall be in substantially the forms as shall be established
in one or more indentures supplemental hereto or approved from time to time by
or pursuant to a Board Resolution in accordance with this Indenture, shall have
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture or any indenture supplemental
hereto, and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements placed thereon as the Company 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 stock
exchange on which the Securities may be listed, or to conform to usage.

 

Unless otherwise specified as contemplated by Section 301, Bearer
Securities shall have interest coupons attached.

 

The definitive
Securities and coupons shall be printed, lithographed or engraved or produced
by any combination of these methods on a steel engraved border or steel
engraved borders or may be produced in any other manner, all as determined by
the officers executing such Securities or coupons, as evidenced by their
execution of such Securities or coupons. SECTION 202.Form
of Trustee’s Certificate of Authentication. Subject to Section 611,the
Trustee’s certificate of authentication shall be in substantially the following
form:

 

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

 

Bankers Trust
Company, as Trustee

 

 

Authorized
Signatory

 

15

 

SECTION 203.Securities Issuable in Global
Form.If Securities of or within a series are issuable in global form, as
specified as contemplated by Section 301, then, notwithstanding
clause (8) of Section 301 and the provisions of Section 302, any
such Security shall represent such of the Outstanding Securities of such series
as shall be specified therein and may provide that it shall represent the aggregate
amount of Outstanding Securities of such series from time to time endorsed
thereon and that the aggregate amount of Outstanding Securities of such series
represented thereby may from time to time be increased or decreased to reflect
exchanges. Any endorsement of a Security in global form to reflect the amount,
or any increase or decrease in the amount, of Outstanding Securities
represented thereby shall be made by the Trustee in such manner and upon
instructions given by such Person or Persons as shall be specified therein or
in the Company Order to be delivered to the Trustee pursuant to
Section 303 or 304. Subject to the provisions of Section 303 and, if
applicable, Section 304, the Trustee shall deliver and redeliver any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified therein or in the applicable Company Order. If
a Company Order pursuant to Section 303 or 304 has been, or simultaneously
is, delivered, any instructions by the Company with respect to endorsement or
delivery or redelivery of a Security in global form shall be in writing but
need not comply with Section 102 and need not be accompanied by an Opinion
of Counsel.

 

The provisions of the last sentence of Section 303 shall apply to
any Security represented by a Security in global form if such Security was
never issued and sold by the Company and the Company delivers to the Trustee
the Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of
Counsel) with regard to the reduction in the principal amount of Securities
represented thereby, together with the written statement contemplated by the
last sentence of Section 303.

 

Notwithstanding the provisions of Section 307, unless otherwise
specified as contemplated by Section 301, payment of principal of and any
premium and interest on any Security in permanent global form shall be made to
the Person or Persons specified therein.

 

Notwithstanding the provisions of Section308 and except as provided in
the preceding paragraph, the Company, the Trustee and any agent of the Company
and the Trustee shall treat as the Holder of such principal amount of
Outstanding Securities represented by a permanent global Security (i) in
the case of a permanent global Security in registered form, the Holder of such
permanent global Security in registered form, or (ii) in the case of a
permanent global Security in bearer form, Euroclear and/or CEDEL.

 

ARTICLE THREE

 

THE SECURITIES

 

SECTION 301.Amount
Unlimited; Issuable in Series.The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more series. There shall be
established in one or more Board Resolutions or pursuant to authority granted
by one or more Board Resolutions and, subject to Section 303, set forth,
or determined in the manner provided, in an Officers’ Certificate, or
established in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series, any or all of the following, as
applicable (each of which (except for the matters set forth in
clauses (1), (2) and (15) below), if so provided, may be determined
from time to time by the Company with respect to unissued Securities of the
series when issued from time to time):

 

(1)           the title of the
Securities of the series (which shall distinguish the Securities of such series
from all other series of Securities);

 

(2)           any limit upon the
aggregate principal amount of the Securities of the series that may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to
Section 304, 305, 306, 906, 1107 or 1305);

 

(3)           the date or dates, or
the method by which such date or dates will be determined, on which the
principal of the Securities of the series shall be payable;

 

(4)           the rate or rates at
which the Securities of the series shall bear interest, if any, or the method
by which such rate or rates shall be determined, the date or dates from which
such interest shall accrue or the method by which such date or dates shall be
determined, the Interest Payment Dates on which such interest will be payable
and the Regular Record Date, if any, for the interest payable on any Registered
Security on any Interest Payment Date, or the method by which such date shall
be determined, and the basis upon which interest shall be calculated if other
than that of a 360-day year of twelve 30-day months;

 

(5)           the place or places, if
any, other than or in addition to the Borough of Manhattan, The City of New
York, where the principal of (and premium or Make-Whole Amount, if any),
interest, if any, on, and Additional Amounts, if any, payable in respect of,
Securities of the series shall be payable, any Registered Securities of the
series may be surrendered for registration of transfer, exchange or conversion
and notices or demands to or upon the Company in respect of the Securities of
the

 

16

 

series and this Indenture
may be served;

 

(6)           the period or periods
within which, the price or prices at which, the currency or currencies, currency
unit or units or composite currency or currencies in which, and other terms and
conditions upon which Securities of the series may be redeemed, in whole or in
part, at the option of the Company, if the Company is to have the option;

 

(7)           the obligation, if any,
of the Company to redeem, repay or purchase Securities of the series pursuant
to any provision or at the option of a Holder thereof, and the period or
periods within which or the date or dates on which, the price or prices at
which, the currency or currencies, currency unit or units or composite currency
or currencies in which, and other terms and conditions upon which Securities of
the series shall be redeemed, repaid or purchased (including without limitation
whether, and the extent to which, the premium shall be payable in connection
therewith), in whole or in part, pursuant to such obligation.

 

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

 

(9)           if other than the
Trustee, the identity of each Security Registrar and/or Paying Agent;

 

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

 

(11)         if other than Dollars,
the Foreign Currency or Currencies in which payment of the principal of (and
premium or Make-Whole Amount, if any) or interest or Additional Amounts, if
any, on the Securities of the series shall be payable or in which the
Securities of the series shall be denominated;

 

(12)         whether the amount of
payments of principal of (and premium or Make- Whole Amount, if any) or
interest, if any, on the Securities of the series may be determined with
reference to an index, formula or other method (which index, formula or method
may be based, without limitation, on one or more currencies, currency units,
composite currencies, commodities, equity indices or other indices), and the
manner in which such amounts shall be determined;

 

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

 

(14)         provisions, if any,
granting special rights to the Holders of Securities of the series upon the
occurrence of such events as may be specified;

 

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

 

(16)         whether Securities of the
series are to be issuable as Registered Securities, Bearer Securities (with or
without coupons) or both, any restrictions applicable to the offer, sale or
delivery of Bearer Securities and the terms upon which Bearer Securities of the
series may be exchanged for Registered Securities of the series and vice versa
(if permitted by applicable laws and regulations), whether any Securities of
the series are to be issuable initially in temporary global form and whether
any Securities of the series are to be issuable in permanent global form with
or without coupons and, if so, whether beneficial owners of interests in any
such permanent global Security may exchange such interests for Securities of
such series and of like tenor of any authorized form and denomination and the
circumstances under which any such exchanges may occur, if other than in the
manner provided in Section 305, and, if Registered Securities of the
series are to be issuable as a global Security, the identity of the depositary
for such series;

 

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

 

17

 

issued;

 

(18)         the Person to whom any
interest on any Registered Security of the series shall be payable, if other
than the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, the manner in which, or the Person to whom, any interest on
any Bearer Security of the series shall be payable, if otherwise than upon
presentation and surrender of the coupons appertaining thereto as they
severally mature, and the extent to which, or the manner in which, any interest
payable on a temporary global Security on an Interest Payment Date will be paid
if other than in the manner provided in Section 304;

 

(19)         the applicability, if
any, of Sections 1402 and/or 1403 to the Securities of the series and any
provisions in modification of, in addition to or in lieu of any of the
provisions of Article Fourteen:

 

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

 

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

 

(22)         whether and under what
circumstances the Company will pay Additional Amounts as contemplated by
Section 1012 on the Securities of the series to any Holder who is not a
United States person (including any modification to the definition of such
term) in respect of any tax, assessment or governmental charge and, if so,
whether the Company will have the option to redeem such Securities rather than
pay such Additional Amounts (and the terms of any such option):

 

(23)         the terms and conditions, if any, upon
which such Debt Securities may be subordinated to other indebtedness of the
Company; and

 

(24)         any other terms of the
series (which terms shall not be inconsistent with the provisions of this
Indenture).

 

All Securities of any one series and the coupons appertaining to any
Bearer Securities of such series shall be substantially identical except, in
the case of Registered Securities, as to denomination and except as may
otherwise be provided in or pursuant to such Board Resolution (subject to Section 303)
and set forth in such Officers’ Certificate or in any such indenture
supplemental hereto. All Securities of any one series need not be issued at the
same time and, unless otherwise provided, a series may be reopened, without the
consent of the Holders, for issuances of additional Securities of such series.

 

If any of the terms of the Securities of any series
are established by action taken pursuant to one or more Board Resolutions, a
copy of an appropriate record of such action(s) shall be certified by the
Secretary or an Assistant Secretary of the Company on behalf of the Company and
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate setting forth the terms of the Securities of such series. SECTION 302.Denominations.The
Securities of each series shall be issuable in such denominations as shall be
specified as contemplated by Section 301. With respect to Securities of
any series denominated in Dollars, in the absence of any such provisions with
respect to the Securities of any series, the Registered Securities of such
series, other than Registered Securities issued in global form (which may be of
any denomination), shall be issuable in denominations of $1,000 and any
integral multiple thereof and the Bearer Securities of such series, other than
Bearer Securities issued in global form (which may be of any denomination),
shall be issuable in a denomination of $5,000. SECTION 303.Execution,
Authentication, Delivery and Dating.The Securities and any coupons appertaining
thereto shall be executed by the Chairman of the Board, and President or one of
the Senior Vice Presidents, and the Chief Financial Officer of CPHC, as general
partner of the Company. The signature of any of these officers on the
Securities and coupons may be manual or facsimile signatures of the present or
any future such authorized officer and may be imprinted or otherwise reproduced
on the Securities.

 

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

 

At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series, together with
any coupon appertaining thereto, executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities; provided, houever, that, in connection
with its original issuance, no Bearer Security shall be mailed or otherwise
delivered to any location in the United States; and provided further that, unless otherwise specified with
respect to any series of Securities pursuant to Section 301, a Bearer
Security may be delivered in connection with its original issuance only if the
Person entitled to receive such Bearer Security shall have furnished a
certificate to Euroclear or CEDEL, as the case may be, in the form set forth in
Exhibit A-1 to this Indenture or such other certificate as may be
specified with respect to any series of Securities pursuant to
Section 301, dated no earlier 

 

18

 

than 15 days prior to the earlier of the date on which such Bearer
Security is delivered and the date on which any temporary Security first
becomes exchangeable for such Bearer Security in accordance with the terms of
such temporary Security and this Indenture. If any Security shall be
represented by a permanent global Bearer Security, then, for purposes of this
Section and Section 304, the notation of a beneficial ownefs interest
therein upon original issuance of such Security or upon exchange of a portion
of a temporary global Security shall be deemed to be delivery in connection
with its original issuance of such beneficial owner’s interest in such
permanent global Security. Except as permitted by Section 306, the Trustee
shall not authenticate and deliver any Bearer Security unless all appurtenant
coupons for interest then matured have been detached and canceled.

 

If all the Securities of any series are not to be issued at one time
and if the Board Resolution or supplemental indenture establishing such series
shall so permit, such Company Order may set forth procedures acceptable to the
Trustee for the issuance of such Securities and determining the terms of
particular Securities of such series, such as interest rate or formula,
maturity date, date of issuance and date from which interest shall accrue. In
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to TIA Section 315(a) through 315(d))
shall be fully protected in relying upon,

 

(i)            an Opinion of Counsel
complying with Section 102 and stating substantially that

 

(a)           the form or forms of
such Securities and any coupons have been established in conformity with the
provisions of this Indenture;

 

(b)           the terms of such
Securities and any coupons have been established in conformity with the
provisions of this Indenture; and

 

(c)           such Securities,
together with any coupons appertaining thereto, when completed by appropriate
insertions and executed and delivered by the Company to the Trustee for
authentication in accordance with this Indenture, authenticated and delivered
by the Trustee in accordance with this Indenture and issued by the Company in
the manner and subject to any conditions specified in such Opinion of Counsel,
will constitute valid and binding obligations of the Company, enforceable in
accordance with their terms, except (i) as may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’
rights (including, without limitation, the effect of statutory and other law
regarding fraudulent conveyances, fraudulent transfers and preferential
transfers) and (ii) as may be limited by the exercise of judicial
discretion and the application of principles of equity, including, without
limitation, requirements of good faith, fair dealing, conscionability and
materiality (regardless of whether enforcement is considered in a proceeding in
equity or law); and

 

(ii)           an Officers’
Certificate stating that all conditions precedent provided for in this
Indenture relating to the issuance of the Securities have been complied with
and that, to the best of the knowledge of the signers of such certificate, no
Event of Default with respect to any of the Securities shall have occurred and
be continuing.

 

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

 

Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all the Securities of any series are not to be issued at one
time, it shall not be necessary to deliver an Officers’ Certificate otherwise
required pursuant to Section 301 or a Company Order, or an Opinion of
Counsel or an Officers’ Certificate otherwise required pursuant to the
preceding paragraph at the time of issuance of each Security of such series,
but such order, opinion and certificates, with appropriate modifications to
cover such future issuances, shall be delivered at or before the time of
issuance of the first Security of such series.

 

Each Registered Security shall be dated the date of its authentication
and each Bearer Security shall be dated as of the date specified as
contemplated by Section 301.

 

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

 

19

 

SECTION 304.Temporary Securities.(a) Pending the
preparation of definitive Securities of any series, the Company may execute,
and upon Company Order, the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued, in registered
form, or, if authorized, in hearer form with one or more coupons or without
coupons, and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. In the case of
Securities of any series, such temporary Securities may be in global form.

 

Except in the case of temporary Securities in global form (which shall
he exchanged in accordance with Section 304(b) or as otherwise provided in
or pursuant to a Board Resolution), if temporary Securities of any series are
issued, the Company will cause definitive Securities of that series to be
prepared without unreasonable delay. After the preparation of definitive
securities of such series, the temporary Securities of such series shall he
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Company in a
Place of Payment for that series, without charge to the Holder. Upon surrender
for cancellation of any one or more temporary Securities of any series
(accompanied by any non-matured coupons appertaining thereto), the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations; provided, however,
that no definitive Bearer Security shall be delivered in exchange for a
temporary Registered Security; and provided
further that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in Section 303. Until so exchanged, the temporary Securities of
any series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

 

(b)           Unless
otherwise provided in or pursuant to a Board Resolution, this
Section 304(b) shall govern the exchange of temporary Securities issued in
global form other than through the facilities of The Depository Trust Company.
If any such temporary Security is issued in global form, then such temporary
global Security shall, unless otherwise provided therein, be delivered to the
London office of a depositary or common depositary (the “Common Depositary”),
for the benefit of Euroclear and CEDEL, for credit to the respective accounts
of the beneficial owners of such Securities (or to such other accounts as they
may direct).

 

Without unnecessary delay hut in any event not later than the date
specified in, or determined pursuant to the terms of, any such temporary global
Security (the “Exchange Date”), the Company shall deliver to the Trustee
definitive Securities, in aggregate principal amount equal to the principal
amount of such temporary global Security, executed by the Company. On or after
the Exchange Date, such temporary global Security shall be surrendered by the
Common Depositary to the Trustee, as the Company’s agent for such purpose, to
be exchanged, in whole or from time to time in part, for definitive Securities
without charge, and the Trustee shall authenticate and deliver, in exchange for
each portion of such temporary global Security, an equal aggregate principal
amount of definitive Securities of the same series of authorized denominations
and of like tenor as the portion of such temporary global Security to be
exchanged. The definitive Securities to be delivered in exchange for any such
temporary global Security shall be in bearer form, registered form, permanent
global bearer form or permanent global registered form, or any combination
thereof, as specified as contemplated by Section 301, and, if any
combination thereof is so specified, as requested by the beneficial owner
thereof; provided, however, that,
unless otherwise specified in such temporary global Security, upon such
presentation by the Common Depositary, such temporary global Security is
accompanied by a certificate dated the Exchange Date or a subsequent date and
signed by Euroclear as to the portion of such temporary global Security held
for its account then to he exchanged and a certificate dated the Exchange Date
or a subsequent date and signed by CEDEL as to the portion of such temporary
global Security held for its account then to be exchanged, each in the form set
forth in Exhibit A-2 to this
Indenture or in such other form as may be established pursuant to
Section 301; and provided further
that definitive Bearer Securities shall be delivered in exchange for a portion
of a temporary global Security only in compliance with the requirements of
Section 303.

 

Unless otherwise specified in such temporary global Security, the
interest of a beneficial owner of Securities of a series in a temporary global
Security shall be exchanged for definitive Securities of the same series and of
like tenor following the Exchange Date when the account holder instructs
Euroclear or CEDEL, as the case may be, to request such exchange on his behalf
and delivers to Euroclear or CEDEL, as the case may be, a certificate in the
form set forth in Exhihit A-1 to this Indenture (or in such other form as
may be established pursuant to Section 301), dated no earlier than 15 days
prior to the Exchange Date, copies of which certificate shall be available from
the offices of Euroclear and CEDEL, the Trustee, any Authenticating Agent
appointed for such series of Securities and each Paying Agent. Unless otherwise
specified in such temporary global Security, any such exchange shall be made
free of charge to the beneficial owners of such temporary global Security, except
that a Person receiving definitive Securities must bear the cost of insurance,
postage, transportation and the like unless such Person takes delivery of such
definitive Securities in person at the offices of Euroclear or CEDEL.
Definitive Securities in bearer form to be delivered in exchange for any
portion of a temporary global Security shall be delivered only outside the
United States.

 

Until exchanged in full as hereinabove provided, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of the same series and of like
tenor authenticated and delivered hereunder, except that, unless otherwise
specified as contemplated by Section 301, interest payable on a temporary global
Security on an Interest Payment Date for Securities of such series occurring
prior to the applicable Exchange Date shall he payable to Euroclear and CEDEL
on such Interest Payment Date upon delivery by Euroclear and CEDEL to the
Trustee of a certificate or certificates in the form set forth in
Exhibit A-2 to this Indenture (or in such other forms as may be
established pursuant to Section 301), for credit without further interest
on or after such 

 

20

 

Interest Payment Date to
the respective accounts of Persons who are the beneficial owners of such
temporary global Security on such Interest Payment Date and who have each
delivered to Euroclear or CEDEL, as the case may be, a certificate dated no
earlier than 15 days prior to the Interest Payment Date occurring prior to
such Exchange Date in the form set forth as Exhibit A-1
to this Indenture (or in such other forms as may be established pursuant to
Section 301). Notwithstanding anything to the contrary herein contained,
the certifications made pursuant to this paragraph shall satisfy the
certification requirements of the preceding two paragraphs of this
Section 304(b) and of the third paragraph of Section 303 of this
Indenture and the interests of the Persons who are the beneficial owners of the
temporary global Security with respect to which such certification was made
will be exchanged for definitive Securities of the same series and of like
tenor on the Exchange Date or the date of certification if such date occurs
after the Exchange Date, without further act or deed by such beneficial owners.
Except as otherwise provided in this paragraph, no payments of principal or
interest owing with respect to a beneficial interest in a temporary global
Security will be made unless and until such interest in such temporary global
Security shall have been exchanged for an interest in a definitive Security.
Any interest so received by Euroclear and CEDEL and not paid as herein provided
shall be returned to the Trustee prior to the expiration of two years after
such Interest Payment Date in order to be repaid to the Company.
SECTION 306.Registration, Registration of
Transfer and Exchange. The Company shall cause to be kept at the Corporate
Trust Office of the Trustee or in any offce or agency of the Company in a Place
of Payment a register for each series of Securities (the registers maintained
in such office or in any such office or agency of the Company in a Place of
Payment being herein sometimes referred to collectively as the “Security
Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Registered
Securities and of transfers of Registered Securities. The Security Register
shall be in written form or any
other form capable of being converted into written form within a reasonable
time. The Trustee, as its
Corporate Trust Office, is hereby initially appointed “Security Registrar” for
the purpose of regmtering Registered Securities and transfers of Registered
Securities on such Security Register as herein provided. In the event that the
Trustee shall cease to be Security Registrar, it shall have the right to
examine the Security Register at all reasonable times.

 

Subject to the provisions of this Section 305, upon surrender for
registration of transfer of any Registered Security of any series at any office
or agency of the Company in a Place of Payment for that series, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Registered Securities
of the same series, of any authorized denominations and of a like aggregate
principal amount, bearing a number not contemporaneously outstanding, and
containing identical terms and provisions.

 

Subject to the provisions of this Section 305, at the option of
the Holder, Registered Securities of any series may be exchanged for other
Registered Securities of the same series, of any authorized denomination or
denominations and of a like aggregate principal amount, containing identical
terms and provisions, upon surrender of the Registered Securities to be
exchanged at any such office or agency. Whenever any such Registered Securities
are so surrendered for exchange, the Company shall execute, and the Trustee
shall authenticate and deliver, the Registered Securities which the Holder
making the exchange is entitled to receive. Unless otherwise specified with
respect to any series of Securities as contemplated by Section 301, Bearer
Securities may not be issued in exchange for Registered Securities.

 

If (but only if) permitted by the applicable Board Resolution and
(subject to Section 303) set forth in the applicable Officers’
Certificate, or in any indenture supplemental hereto, delivered as contemplated
by Section 301, at the option of the Holder, Bearer Securities of any
series may be exchanged for Registered Securities of the same series of any
authorized denominations and of a like aggregate principal amount and tenor,
upon surrender of the Bearer Securities to be exchanged at any such office or
agency, with all unmatured coupons and all matured coupons in default thereto
appertaining. If the Holder of a Bearer Security is unable to produce any such
unmatured coupon or coupons or matured coupon or coupons in default, any such
permitted exchange may be effected if the Bearer Securities are accompanied by
payment in funds acceptable to the Company in an amount equal to the face
amount of such missing coupon or coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there is
furnished to them such security or indemnity as they may require to save each
of them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to any Paying Agent any such missing coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment: provided,
however, that, except as otherwise provided in Section 1002,
interest represented by coupons shall be payable only upon presentation and
surrender of those coupons at an office or agency located outside the United
States. Notwithstanding the foregoing, in case a Bearer Security of any series
is surrendered at any such office or agency in a permitted exchange for a
Registered Security of the same series and like tenor after the close of
business at such office or agency on (i) any Regular Record Date and
before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and before the
opening of business at such office or agency on the related proposed date for
payment of Defaulted Interest, such Bearer Security shall be surrendered
without the coupon relating to such Interest Payment Date or proposed date for
payment, as the case may be, and interest or Defaulted Interest, as the case
may be, will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of the Registered Security issued in
exchange for such Bearer Security, but will be payable only to the Holder of
such coupon when due in accordance with the provisions of this Indenture.
Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive.

 

Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section301, any permanent global Security shall 

 

21

 

be exchangeable only as provided in this paragraph. If the depositary
for any permanent global Security is “DTC”, then, unless the terms of such
global Security expressly permit such global Security to be exchanged in whole
or in part for definitive Securities, a global Security may be transferred, in
whole but not in part, only to a nominee of DTC, or by a nominee of DTC to DTC,
or to a successor to DTC for such global Security selected or approved hy the
Company or to a nominee of such successor to DTC. If at any time DTC notifies
the Company that it is unwilling or unable to continue as depositary for the
applicable global Security or Securities or if at any time DTC ceases to be a
clearing agency registered under the Exchange Act if so required by applicable law or regulation, the Company
shall appoint a successor depositary with respect to such global Security or
Securities. If (x) a successor depositary for such global Security or
Securities is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such unwillingness, inability or ineligibility, (y) an Event of
Default has occurred and is continuing and the beneficial owners representing a
majority in principal amount of the applicable series of Securities represented
by such global Security or Securities advise DTC to cease acting as depositary
for such global Security or Securities or (z) the Company, in its sole
discretion, determines at any time that all Outstanding Securities (hut not
less than alI) of any series issued or issuable in the form of one or more
global Securities shall no longer be represented by such global Security or
Securities, then the Company shall execute, and the Trustee shall authenticate
and deliver definitive Securities of like series, rank, tenor and terms in
definitive form in an aggregate principal amount equal to the principal amount
of such global Security or Securities. If any beneficial owner of an interest
in a permanent global Security is otherwise entitled to exchange such interest
for Securities of such series and of like tenor and principal amount of another
authorized form and denomination, as specified as contemplated by
Section 301 and provided
that any applicable notice provided in the permanent global Security shall have
been given, then without unnecessary delay hut in any event not later than the
earliest date on which such interest may be so exchanged, the Company shall
execute, and the Trustee shall authenticate and deliver definitive Securities
in aggregate principal amount equal to the principal amount of such beneficial
owner’s interest in such permanent global Security. On or after the earliest
date on which such interests may be so exchanged, such permanent global
Security shall be surrendered for exchange by DTC or such other depositary as
shall be specified in the Company Order with respect thereto to the Trustee, as
the Company’s agent for such purpose; provided,
however, that no such exchanges may occur during a period beginning
at the opening of business 15 days before any selection of Securities to
be redeemed and ending on the relevant Redemption Date if the Security for
which exchange is requested may be among those selected for redemption; and provided further that no Bearer Security
delivered in exchange for a portion of a permanent global Security shall be
mailed or otherwise delivered to any location in the United States. If a
Registered Security is issued in exchange for any portion of a permanent global
Security after the close of business at the office or agency where such
exchange occurs on (i) any Regular Record Date and before the opening of
business at such offIce or agency on the relevant Interest Payment Date, or
(ii) any Special Record Date and the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, interest
or Defaulted Interest, as the case may be, will not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of
such Registered Security, but will be payable on such Interest Payment Date or
proposed date for payment, as the case may be, only to the Person to whom
interest in respect of such portion of such permanent global Security is
payable in accordance with the provisions of this Indenture.

 

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

 

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

 

No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906, 1107 or 1305 not involving any
transfer.

 

The Company, or the Trustee, as applicable, shall not
be required (i) to issue, register the transfer of or exchange any
Security if such Security may be among those selected for redemption during a
period beginning at the opening of business 15 days before selection of
the Securities to be redeemed under Section 1103 and ending at the close
of business on (A) if such Securities are issuable only as Registered
Securities, the day of the mailing of the relevant notice of redemption and
(B) if such Securities are issuable as Bearer Securities, the day of the
first publication of the relevant notice of redemption or, if such Securities
are also issuable as Registered Securities and there is no publication, the
mailing of the relevant notice of redemption, or (ii) to register the
transfer of or exchange any Registered Security so selected for redemption in
whole or in part, except, in the case of any Registered Security to be redeemed
in part, the portion thereof not to be redeemed, or (iii) to exchange any
Bearer Security so selected for redemption except that such a Bearer Security
may be exchanged for a Registered Security of that series and like tenor, provided that such Registered Security
shall be simultaneously surrendered for redemption, or (iv) to issue,
register the transfer of or exchange any Security which has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such
Security not to be so repaid. SECTION 306.Mutilated,
Destroyed, Lost and Stolen Securities.If any mutilated Security or a Security
with a mutilated coupon appertaining to it is surrendered to the Trustee or the
Company, together with, in proper cases, such security or indemnity as may be
required by the Company or the Trustee to save each of them or any agent of
either of them harmless, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same series
and principal amount, containing identical terms and provisions and bearing a
number

 

22

 

not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to the surrendered Security.

 

If there shall be delivered to the Company and to the Trustee
(i) evidence to their satisfaction of the destruction, loss or theft of
any Security or coupon, and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security
or coupon has been acquired by a bona fide purchaser, the Company shall execute
and upon its request the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security or in exchange for the Security to
which a destroyed, lost or stolen coupon appertains (with all appurtenant
coupons not destroyed, lost or stolen), a new Security of the same series and
principal amount, containing identical terms and provisions and bearing a
number not contemporaneously outstanding, with coupons corresponding to the
coupons, if any, appertaining to such destroyed, lost or stolen Security or to
the Security to which such destroyed, lost or stolen coupon appertains.

 

Notwithstanding the provisions of the previous two paragraphs, in case
any such mutilated, destroyed, lost or stolen Security or coupon has become or
is about to become due and payable, the Company in its discretion may, instead
of issuing a new Security, with coupons corresponding to the coupons, if any, appertaining to such destroyed,
lost or stolen Security or to the Security to which such destroyed, lost or
stolen coupon appertains, pay such Security or coupon; provided, however, that payment of
principal of (and premium or Make-Whole Amount, if any), any interest on and
any Additional Amounts with respect to, Bearer Securities shall, except as
otherwise provided in Section 1002, be payable only at an office or agency
located outside the United States and, unless otherwise specified as
contemplated by Section 301, any interest on Bearer Securities shall be
payable only upon presentation and surrender of the coupons appertaining
thereto.

 

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

 

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

 

The provisions of this Section are exclusive and
shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities or coupons. SECTION 307.Payment of
Interest; Interest Rights Preserved. Except as otherwise specified with respect
to a series of Securities in accordance with the provisions of
Section 301, interest on any Registered Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security (or one or more Predecessor
Securities) is reestered at the close of business on the Regular Record Date
for such interest at the office or agency of the Company maintained for such
purpose pursuant to Section 1002; provided,
however, that each installment of interest on any Registered
Security may at the Company’s option be paid by (i) mailing a check for
such interest, payable to or upon the written order of the Person entitled
thereto pursuant to Section 308, to the address of such Person as it
appears on the Security Register or (ii) transfer to an account maintained
by the payee located inside the United States.

 

Unless otherwise provided as contemplated by Section 301 with
respect to the Securities of any series, payment of interest may be made, in
the case of a Bearer Security, by transfer to an account maintained by the
payee with a bank located outside the United States.

 

Unless otherwise provided as contemplated by Section 301, every
permanent global Security will provide that interest, if any, payable on any
Interest Payment Date will he paid to DTC, Euroclear and/or CEDEL, as the case
may be, with respect to that portion of such permanent global Security held for
its account by Cede & Co. or the Common Depositary, as the case may
be, for the purpose of permitting such party to credit the interest received by
it in respect of such permanent global Security to the accounts of its
participants for the benefit of the beneficial owners thereof.

 

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

 

Except as otherwise specified with respect to a series of Securities in
accordance with the provisions of Section 301, any interest on any Registered
Security of any series that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company at its election in each case, as

 

23

 

provided in clause (1)or (2) below:

 

(1)                                  The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Registered Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a special
Record Date for the payment of such Defaulted Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Registered Security of
such series and the date of the proposed payment (which shall not be less than
20 days after such notice is received by the Trustee), and at the same time the
Company shall deposit with the Trustee an amount of money in the currency or
currencies, currency unit or units or composite currency or currencies in which
the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit on or
prior to the date of the proposed payment, such money when deposited to be held
in trust for the benefit of the Persons entitled to such Defaulted Interest as
in this clause provided. Thereupon the Trustee shall fix a Special Record Date
for the payment of such Defaulted Merest which shall be not more than
15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly not& the Company
of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder of Registered Securities of such series at his address as it appears in
the Security Register not less than 10 days prior to such Special Record
Date. The Trustee may, in its discretion, in the name and at the expense of the
Company, cause a similar notice to be published at least once in an Authorized
Newspaper in each place of payment, but such publications shall not be a
condition precedent to the establishment of such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid
to the Persons in whose names the Registered Securities of such series (or
their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following clause (2). In case a Bearer Security of any series is
surrendered at the office or agency in a Place of Payment for such series in
exchange for a Registered Security of such series after the close of business
at such office or agency on any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the
coupon relating to such proposed date of payment and Defaulted Interest will
not be payable on such proposed date of payment in respect of the Registered
Security issued in exchange for such Bearer Security, but will be payable only
to the Holder of such coupon when due in accordance with the provisions of this
Indenture.

 

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

 

Subject to the foregoing provisions of this
Section and Section 305, each Security delivered under this Indenture
upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Security. SECTION 308.Persons
Deemed Owners.Prior to due presentment of a Registered Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name such Registered Security is
registered as the owner of such Security for the purpose of receiving payment
of principal of (and premium or Make-Whole Amount, if any), and (subject to
Sections 305 and 307) interest on, such Registered Security and for all other
purposes whatsoever, whether or not such Registered Security be overdue, and
none of the Company, the Trustee or any agent of the Company or the Trustee shall
be affected by notice to the contrary.

 

Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee and any agent of the Company or the
Trustee may treat the Holder of any Bearer Security and the Holder of any
coupon as the absolute owner of such Security or coupon for the purpose of
receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not such Security or coupon be overdue, and none of the
Company, the Trustee or any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a Security in global form or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

 

Notwithstanding the foregoing, with respect to any
global Security, nothing herein shall prevent the Company, the Trustee, or any
agent of the Company, or the Trustee, from giving effect to any written
certification, proxy or other authorization furnished by any depositary, as a
Holder, with respect to such global Security or impair, as between such
depositary, its participants and owners of beneficial interests in such global
Security, the operation of customary practices governing the exercise of the
rights of such depositary (or its nominee) as Holder of such global Security. SECTION 309.Cancellation.All Securities and coupons surrendered for payment,
redemption,

 

24

 

repayment at the option
of the Holder, registration of transfer or exchange or for credit against any
sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee, and any such Securities and coupons and
Securities and coupons surrendered directly to the Trustee for any such purpose
shall be promptly canceled by it. The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly canceled by the Trustee. If the Company shall so acquire any of the
Securities, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and
until the same are surrendered to the Trustee for cancellation. No Securities
shall be authenticated in lieu of or in exchange for any Securities canceled as
provided in this Section, except as expressly permitted by this Indenture.
Canceled Securities and coupons held by the Trustee shall be destroyed by the
Trustee and the Trustee shall deliver a certificate of such destruction to the
Company, unless by the Company Order, the Company directs their return to it. SECTION 310.Computation of Interest.Except as
otherwise specified as contemplated by Section 301 with respect to
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.

 

ARTICLE FOUR

 

SATISFACTION
AND DISCHARGE

 

SECTION 401.Satisfaction
and Discharge of Indenture.This Indenture shall upon Company Request cease to
be of further effect with respect to any series of Securities specified in such
Company Request (except as to any surviving rights of registration of transfer
or exchange of Securities of such series herein expressly provided for and any
right to receive Additional Amounts, as provided in Section 1012), and the
Trustee, upon receipt of a Company Order, and at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture as to such series when,

 

(1)                                  either

 

(A)                              all
Securities of such series theretofore authenticated and delivered and all
coupons, if any, appertaining thereto (other than (i) coupons appertaining
to Bearer Securities surrendered for exchange for Registered Securities and
maturing after such exchange, whose surrender is not required or has been
waived as provided in Section 305, (ii) Securities and coupons of
such series which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 306, (iii) coupons
appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender has been waived as provided in
Section 1106, and (iv) Securities and coupons of such series for
whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged
from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or

 

(B)                                all
Securities of such series and, in the case of (i) or (ii) below, any
coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation

 

(i)                                     have
become due and payable, or

 

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

 

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

 

and the Company, in the case of (i), (ii) or
(iii) above, has irrevocably deposited or caused to be deposited with the
Trustee as trust funds in trust for the purpose an amount in the currency or
currencies, currency unit or units or composite currency or currencies in which
the Securities of such series are payable, sufficient to pay and discharge the
entire indebtedness on such Securities and such coupons not theretofore
delivered to the Trustee for cancellation, for principal (and premium or
Make-Whole Amount, if any) and interest, and any Additional Amounts with
respect thereto, to the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or Redemption Date, as
the case may be;

 

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

 

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

 

25

 

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee and any predecessor
Trustee under Section 606, the obligations of the Company to any
Authenticating Agent under Section 611 and, if money shall have been
deposited with and held by the Trustee pursuant to subclause (B) of clause
(1) of this Section, the obligations of the Trustee under Section 402 and
the last paragraph of Section 1003 shall survive. SECTION 402.Application
of Trust Funds.Subject to the provisions of the last paragraph of
Section 1003, all money deposited with the Trustee pursuant to
Section 401 shall be held in trust and applied by it, in accordance with
the provisions of the Securities, the coupons and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium or Make-Whole Amount, if any),
and any interest and Additional Amounts for whose payment such money has
deposited with or received by the Trustee, but such money need not be
segregated from other funds except to the extent required by law.

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 601.Events of
Default.“Event of Default,” wherever used herein with respect to any
particular series of Securities, means any one of the following events
(whatever the reason for such Event of Default and whether or not it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

 

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

 

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

 

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

 

(4)                                  default
in the performance, or breach, of any covenant or warranty of the Company in
this Indenture with respect to any Security of that series (other than a
covenant or warranty a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with), and continuance of
such default or breach for a period of 60 days after there has been given,
by registered or certified mail to the Company, by the Trustee or to the
Company, and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities of that series a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice is
a “Notice of Default” hereunder; or

 

(5)                                  a
default under any bond, debenture, note or other evidence of indebtedness of
the Company, or under any mortgage, indenture or other instrument of the
Company (including a default with respect to Securities of any series other
than that series) under which there may be issued or by which there may be
secured any indebtedness of the Company (or by any Subsidiary, the repayment of
which the Company has guaranteed or for which the Company is directly
responsible or liable as obligor or guarantor on a full recourse basis) whether
such indebtedness now exists or shall hereafter he created, which default shall
constitute a failure to pay an aggregate principal amount exceeding $10,000,000
of such indebtedness when due and payable after the expiration of any
applicable grace period with respect thereto and shall have resulted in such
indebtedness in an aggregate principal amount exceeding $10,000,000 becoming or
being declared due and payable prior to the date on’which it would otherwise
have become due and payable, without such indebtedness having been discharged,
or such acceleration having been rescinded or annulled, within a period of
10 days after there shall have been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 10%in principal amount of the Outstanding Securities of
that series a written notice specifying such default and requiring the
Company to cause such indebtedness to be discharged or cause such acceleration
to be rescinded or annulled and stating that such notice is a “Notice of
Default” hereunder; or

 

(6)                                  the
Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

 

(A)                              commences
a voluntary case,

 

(B)                                consents
to the entry of an order for relief against it in an involuntary case,

 

(C)                                consents
to the appointment of a Custodian of it or for all or substantially all of its
property, or

 

(D)                               makes
a general assignment for the benefit of its creditors; or

 

 

26

 

(7)                                  a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

 

(A)                              is
for relief against the Company or any Significant Subsidiary in an involuntary
case,

 

(B)                                appoints
a Custodian of the Company or any Significant Subsidiary or for all or
substantially all of either of its property, or

 

(C)                                orders
the liquidation of the Company or any Significant Subsidiary, and the order or
decree remains unstayed and in effect for 90 days: or

 

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

 

As used in this Section 501, the term “Bankruptcy
Law” means Title 11 US. Code or any similar Federal or State law for the relief
of debtors and the term “Custodian” means any receiver, trustee, assignee,
liquidator or other similar official under any Bankruptcy Law.
SECTION 502.Acceleration of Maturity;
Rescission and Annulment. If an Event of Default with respect to Securities of
any series at the time Outstanding occurs and is continuing (other than an
Event of Default specified in clause (6) or (7) of Section 501 that
occurs with respect to the Company), then and in every such case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding Securities of
that series may declare the principal of (or, if any Securities are Original
Issue Discount Securities or Indexed Securities, such portion of the principal
as may be specified in the terms thereof), and premium (if any) and accrued
interest on, the Securities of that series to be due and payable immediately,
by a notice in writing to the Company, (and to the Trustee if given by the
Holders), and upon any such declaration such principal, premium (if any), and
accrued interest or specified portion thereof shall become immediately due and
payable. In the event of a declaration of acceleration because an Event of
Default set forth in clause (5) of Section 501 has occurred and is
continuing, such declaration of acceleration shall be automatically rescinded
and annulled if the event of default triggering such Event of Default pursuant
to clause (5) along with any other events of default that have been
triggered by the Event of Default (whether or not a notice or declaration of acceleration
shall have been given by the holders of the relevant indebtedness) shall be
remedied or cured by the Company and /or the relevant Subsidiary or waived by
the holders of the relevant indebtedness within 60 days after the
declaration of acceleration with respect thereto. If an Event of Default
specified in clause (6) or (7) of Section 501 occurs with respect to
the Company, the principal of (or specified portion thereof), premium, if any,
and accrued interest on the Securities of all series then outstanding shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.

 

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

 

(1)                                  the
Company has paid or deposited with the Trustee a sum sufficient to pay in the
currency, currency unit or composite currency in which the Securities of such
series are payable (except as otherwise specified pursuant to Section 301
for the Securities of such series):

 

(A)                              all
overdue installments of interest on and any Additional Amounts payable in
respect of all Outstanding Securities of that series and any related coupons,

 

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

 

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

 

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

 

(2)                                  all
Events of Default with respect to Securities of that series, other than the
nonpayment of the principal of (or premium or Make-Whole Amount, if any) or
interest on Securities of that series which have become due solely by such
declaration of acceleration, have been cured or waived as provided in
Section 513.

 

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

 

27

 

SECTION 503.Collection
of Indebtedness and Suits for Enforcement by Trustee. The Company covenants
that if:

 

(1)                                  default
is made in the payment of any installment of interest or Additional Amounts, if
any, on any Security of any series and any related coupon when such interest or
Additional Amount becomes due and payable and such default continues for a
period of 30 days, or

 

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

 

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

 

If an Event of Default with respect to Securities of
any series occurs and is continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of the Holders of Securities
of such series and any related coupons by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy. SECTION 504.Trustee
May File Proofs of Claim.In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other
obligor upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Securities of any 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 on the Company for the payment of overdue
principal, premium or Make-Whole Amount, if any, or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise:

 

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

 

(ii)                                  to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator (or other similar official) in any such judicial
proceeding is hereby authorized by each Holder of Securities of such series and
coupons to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee and any predecessor Trustee, their agents
and counsel, and any other amounts due the Trustee or any predecessor Trustee
under Section 606.

 

Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder of a Security or coupon any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or coupons or the rights of
any Holder thereof, or to authorize the Trustee to vote in respect of the claim
of any Holder of a Security or coupon in any such proceeding. SECTION 505.Trustee May Enforce Claims Without
Possession of Securities or Coupons.All rights of action and claims under this
Indenture or any of the Securities or coupons may be prosecuted and enforced by
the Trustee without the possession of any of the Securities or coupons or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, ita agents and counsel, be for the ratable benefit of the Holders
of the Securities and coupons in respect of which such judgment has been
recovered. SECTION 506.Application of Money
Collected.Any money collected by the Trustee pursuant to this
Article shall be applied in the following order, at the date or dates
fixed by the Trustee and, in case of the distribution of such money on account
of principal (or premium or Make-Whole Amount, if any) or interest and any
Additional Amounts, upon presentation of the Securities or coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid:

 

28

 

FIRST: To the
payment of all amounts due the Trustee and any predecessor Trustee under
Section 606;

 

SECOND: To the
payment of the amounts then due and unpaid upon the Securities and coupons for
principal (and premium or Make-Whole Amount, if any) and interest and any
Additional Amounts payable, in respect of which or for the benefit of which
such money has been collected, ratably, without preference or priority of any
kind, according to the aggregate amounts due and payable on such Securities and
coupons for principal (and premium or Make-Whole Amount, if any), interest and
Additional Amounts, respectively; and

 

THIRD: To the payment of the remainder, if any, to the Company. SECTION 507.Limitation on Suits.No Holder of any
Security of any series or any related coupon shall have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

 

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

 

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

 

(3)                                  such
Holder or Holders have offered to the Trustee indemnity reasonably satisfactory
to the Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request:

 

(4)                                  the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

 

(5)                                  no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of
the Outstanding Securities of that series; it being understood and intended
that no one or more of such Holders shall have any right in any manner whatever
by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or
to seek to obtain priority or preference over any other of such Holders or to
enforce any right under this Indenture, except in the manner herein provided
and for the equal and ratable benefit of all such Holders. SECTION 508.Unconditional
Right of Holders to Receive Principal, Premium or Make-Whole Amount, if any,
Interest and Additional Amounts. Notwithstanding any other provision in this
Indenture, the Holder of any Security or coupon shall have the right which is
absolute and unconditional to receive payment of the principal of (and premium
or Make-Whole Amount, if any) and (subject to Sections 305 and 307) interest
on, and any Additional Amounts in respect of, such Security or payment of such
coupon on the respective due dates expressed in such Security or coupon (or, in
the case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder. SECTION 509.Restoration
of Rights and Remedies.If the Trustee or any Holder of a Security or coupon has
instituted any proceeding to enforce any right or remedy under this Indenture
and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every
such case, the Company, the Trustee and the Holders of Securities and coupons
shall, subject to any determination in such proceeding, be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted. SECTION 510.Rights
and Remedies Cumulative.Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities or
coupons in the last paragraph of Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders of Securities or
coupons is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion
or employment of any other appropriate right or remedy. SECTION 511.Delay
or Omission Not Waiver.No delay or omission of the Trustee or of any Holder of
any Security or coupon to exercise any right or remedy accruing upon any Event
of Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and remedy given
by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders of Securities or coupons, as the case may be. SECTION 512.Control by Holders of Securities.The
Holders of not less than a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the
Securities of such series, provided
that

 

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

 

29

 

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

 

(3)                                  the
Trustee need not take any action which might involve it in personal liability
or be unduly prejudicial to the Holders of Securities of such series not
joining therein. SECTION 513.Waiver of Past
Defaults.The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series and any related coupons waive any past default
hereunder with respect to such series and its consequences, except a default

 

(1)                                  in
the payment of the principal of (or premium or Make-Whole Amount, if any) or
interest on or Additional Amounts payable in respect of any Security of such
series or any related coupons, or

 

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

 

Upon any such waiver, such default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of
this Indenture; but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon. SECTION 514.Waiver of Usury, Stay or Extension
Laws.The Company covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and covenants that it will not hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted. SECTION 515.Undertaking for Costs.All parties to
this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken or omitted by it as
Trustee, the filing by any party litigant in such suit of any undertaking to
pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than 10%in principal amount of the Outstanding Securities, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
(or premium or Make-Whole Amount, if any) or interest on any Security on or
after the respective Stated Maturities expressed in such Security (or, in the
case of redemption, on or after the Redemption Date).

 

ARTICLE SIX

 

THE
TRUSTEE

 

SECTION 601.Notice of
Defaults.Within 90 days after the occurrence of any default hereunder with
respect to the Securities of any series, the Trustee shall transmit in the
manner and to the extent provided in TIA Section 313(c), notice of such
default hereunder known to the Trustee, unless such default shall have been
cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of (or
premium or Make-Whole Amaunt, if any) or interest on or any Additional Amounts
with respect to any Security of such series, or in the payment of any sinking
fund installment with respect to the Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as Responsible
Officers of the Trustee in good faith determine that the withholding of such
notice is in the interests of the Holders of the Securities and coupons of such
series; and provided further that
in the case of any default or breach of the character specified in
Section 501(4) with respect to the Securities and coupons of such series,
no such notice to Holders shall be given until at least 60 days after the
occurrence thereof. For the purpose of this Section, the term “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default with respect to the Securities of such series. SECTION 602.Certain Rights of Trustee.Subject to the
provisions of TIA Section 315(a) through 315(d):

 

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

 

(2)                                  any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order (other than delivery of any
Security, together with any coupons appertaining thereto, to the Trustee for
authentication and delivery pursuant to Section 303 which shall be
sufficiently evidenced as provided therein) and any resolution of the Board of
Directors may be sufficiently evidenced by a Board Resolution;

 

(3)                                  whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically

 

30

 

prescribed) may, in the absence of bad faith on its
part, rely upon an Officers’ Certificate;

 

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

 

(5)                                  the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders of Securities of any series or any related coupons pursuant to this
Indenture, unless such Holders shall have offered to the Trustee security or
indemnity reasonably satisfactory to the Trustee against the costs, expenses
and liabilities which might be incurred by it in compliance with such request
or direction;

 

(6)                                  the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, coupon or
other paper or document, but the Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of
the Company personally or by agent or attorney;

 

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

 

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

 

The Trustee shall not be required to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

Except during the continuance of an Event of Default,
the Trustee undertakes to perform only such duties as are specifically set
forth in this Indenture, and no implied covenants or obligations shall he read
into this Indenture against the Trustee. SECTION 603.Not
Responsible for Recitals or Issuance of Securities.The recitals contained
herein and in the Securities, except the Trustee’s certificate of
authentication, and in any coupons shall be taken as the statements of the
Company and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities, coupons,
or Prospectus except that the Trustee represents that it is duly authorized to
execute and deliver this Indenture, authenticate the Securities and perform its
obligations hereunder. Neither the Trustee nor any Authenticating Agent shall
be accountable for the use or application by the Company of Securities or the
proceeds thereof. SECTION 604.May Hold
Securities.The Trustee, any Paying Agent, Security Registrar, Authenticating
Agent or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and coupons and,
subject to TIA Sections 310(b) and 311, may otherwise deal with the Company
with the same rights it would have if it were not the Trustee, Paying Agent,
Security Registrar, Authenticating Agent or such other agent. SECTION 605.Money Held in Trust.Money held by the
Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall he under no liability for
interest on any money received by it hereunder except as otherwise agreed with
the Company. SECTION 606.Compensation and
Reimbursement.The Company agrees:

 

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

 

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

 

(3)                                  to
indemnify each of the Trustee, its directors, officers and employees, and any
predecessor Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith on its own part, arising
out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of
its powers or duties hereunder.

 

When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 501(6) or Section 501(7),
the expenses (including the reasonable charges and expenses of its counsel) and
the compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

 

31

 

As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the payment of principal of (or premium or Make-Whole Amount, if
any) or interest on particular Securities or any coupons.

 

The provisions of this Section shall survive the
termination of this Indenture. SECTION 607.Corporate
Trustee Required; Eligibility; Conflicting Interests.There shall at all times
be a Trustee hereunder which shall be eligible to act as Trustee under TIA
Section 310(a)(1) and shall have a combined capital and surplus of at
least $50,000,000. If such corporation publishes reports of condition at least
annually, pursuant to law or the requirements of Federal, State, Territorial or
District of Columbia supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article. SECTION 608.Resignation and Removal;
Appointment of Successor. (a) No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee
in accordance with the applicable requirements of Section 609.

 

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

 

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

 

(d) If at any time:

 

(1)                                  the
Trustee shall fail to comply with the provisions of TIA Section 310(b)
after written request therefor by the Company or by any Holder of a Security
who has been a bona fide Holder of a Security for at least six months, or

 

(2)                                  the
Trustee shall cease to be eligible under Section 607 and shall fail to
resign after written request therefor by the Company or by any Holder of a
Security who has been a bona fide Holder of a Security for at least six months,
or

 

(3)                                  the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, (i) the Company by or pursuant to a
Board Resolution may remove the Trustee and appoint a successor Trustee with
respect to all Securities, or (ii) subject to TIA Section 315(e), any
Holder of a Security who has been a bona fide Holder of a Security for at least
six months-may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee
with respect to all Securities and the appointment of a successor Trustee or
Trustees.

 

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

 

(f) The Company shall give notice of each resignation
and each removal of the Trustee with respect to the Securities of any series
and each appointment of a successor Trustee with respect to the Securities of
any series in the manner provided for notices to the Holders of Securities in
Section 106. Each notice shall include the name of the successor Trustee
with respect to the Securities of such series and the address of its Corporate
Trust Office. SECTION 609.Acceptance of Appointment
by Successor.(a) In case of the appointment hereunder of a successor
Trustee with respect to all Securities, every such successor Trustee shall
execute, acknowledge and deliver to the Company and the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring

 

32

 

Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee, and shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder, subject nevertheless to its
claim, if any, provided for in Section 606.

 

(b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto,
pursuant to Article Nine 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 Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if
the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee,
and (3) shall add to or change any of the provisions of this Indenture as shall
be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of
the same trust and that each such Trustee snall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company, or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates.

 

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

 

(d) No successor Trustee shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be qualified
and eligible under this Article. SECTION 610.Merger,
Conversion, Consolidation or Succession to Business.Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such corporation shall be
otherwise qualified and eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto. In case any Securities or coupons shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities of coupons so authenticated with the
same effect as if such successor Trustee had itself authenticated such
Securities or coupons. In case any Securities or coupons shall not have been
authenticated by such predecessor Trustee, any such successor Trustee may
authenticate and deliver such Securities or coupons, in either its own name or
that of its predecessor Trustee, with the full force and effect which this
Indenture provides for the certificate of authentication of the Trustee. SECTION 611.Appointment of Authenticating Agent.At any
time when any of the Securities remain Outstanding, the Trustee may appoint an
Authenticating Agent or Agents with respect to one or more series of Securities
which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon exchange, registration of transfer or
partial redemption or repayment thereof, and Securities so authenticated shall
be entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder. Any such
appointment shall be evidenced by an instrument in writing signed by a
Responsible Officer of the Trustee, a copy of which instrument shall be
promptly furnished to the Company. Wherever reference is made in this Indenture
to the authentication and delivery of Securities by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a bank or trust company or
corporation organized and doing business and in good standing under the laws of
the United States of America or of any State or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or
examination by Federal or State authorities. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

 

Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation

 

33

 

succeeding to the corporate agency or corporate trust business of an
Authenticating Agent, shall continue to be an Authenticating Agent, provided
such corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or further act on the part of the Trustee or
the Authenticating Agent.

 

An Authenticating Agent for any series of Securities may at any time
resign by giving written notice of resignation to the Trustee for such series
and to the Company. The Trustee for any series of Securities may at any time
terminate the agency of an Authenticating Agent by giving written notice of
termination to such Authenticating Agent and the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee for such series may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give notice
of such appointment to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve in the manner set forth in
Section 106. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

 

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

 

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

 

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

 

	
   

  	
  BANKERS TRUST COMPANY, as Trustee

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   as
  Authenticating Agent

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   Authorized Signatory

  
	
   

  	
   

  	
   

  

 

 

ARTICLE SEVEN

 

HOLDERS’
LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION 701.Disclosure
of Names and Addresses of Holders. Every Holder of Securities or coupons, by
receiving and holding the same, agrees with the Company and the Trustee that
neither the Company nor the Trustee nor any Authenticating Agent nor any Paying
Agent nor any Security Registrar shall be held accountable by reason of the
disclosure of any information as to the names and addresses of the Holders of
Securities in accordance with TIA Section 312, 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
TIA Section 312(b). SECTION 702.Reports by
Trustee.Within 60 days after October 1of each year commencing with the
first October 1after the first issuance of Securities pursuant to this
Indenture, the Trustee shall transmit by mail to all Holders of Securities as
provided in TIA Section 313(c) a brief report dated as of such
October 1 if required by TIA Section 313(a). SECTION 703.Reports
by Company.The Company will

 

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

 

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

 

(3)                                  transmit
by mail to the Holders of Securities, within 30 days after the filing
thereof with the Trustee, in the manner and to the extent provided in TIA
Section 313(c), such summaries of any information, documents and reports
required to

 

34

 

be filed by the
Company pursuant to paragraphs (1) and (2)of this Section as may be
required by rules and regulations prescribed from time to time by the
Commission. SECTION 704.The Company to Furnish
Trustee Names and Addresses of Holders.The Company will furnish or cause to be
furnished to the Trustee:

 

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

 

(b) at such otbr times as the Trustee may request in Writing, within
30 days after the receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the
time such list is furnished, provided, however,
that, so long as the Trustee is the Security Registrar, no such list shall be
required to be furnished.

 

ARTICLE EIGHT

 

CONSOLIDATION,
MERGER, SALE, LEASE OR CONVEYANCE

 

SECTION 801.Consolidations
and Mergers of Company and Sales, Leases and Conveyances Permitted Subject to
Certain Conditions.The Company may consolidate with, or sell, lease or convey
all or substantially all of its assets to, or merge with or into any other
entity, provided that in any such case, (1) either the Company shall be the
continuing entity, or the successor entity shall be an entity organized and
existing under the laws of the United States or a State thereof and such
successor entity shall expressly assume the due and punctual payment of the
principal of (and premium or Make-Whole Amount, if any) and any interest
(including all Additional Amounts, if any, payable pursuant to
Section 1012) on all of the 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 by the Company by supplemental
indenture, complying with Article Nine hereof, satisfactory to the
Trustee, executed and delivered to the Trustee by such entity and
(ii) immediately after giving effect to such transaction and treating any
indebtedness which becomes an obligation of the Company or any Subsidiary as a
result thereof as having been incurred by the Company or such Subsidiary at the
time of such transaction, no Event of Default, and no event which, after notice
or the lapse of time, or both, would become an Event of Default, shall have
occurred and be continuing. SECTION 802.Rights and
Duties of Successor Entity.In case of any such consolidation, merger, sale,
lease or conveyance and upon any such assumption by the successor entity, such
successor entity shall succeed to and be substituted for the Company, with the
same effect as if it had been named herein as the party of the first part, and
the predecessor entity, except in the event of a lease, shall be relieved of
any further obligation under this Indenture and the Securities. Such successor
entity thereupon may cause to be signed, and may issue either in its own name
or in the name of the Company, any or all of the Securities issuable hereunder
which theretofore shall not have been signed by the Company and delivered to
the Trustee; and, upon the order of such successor entity, instead of the
Company, and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been signed and delivered by the
officers of the Company to the Trustee for authentication, and any Securities
which such successor entity thereafter shall cause to be signed and delivered
to the Trustee for that purpose. All the Securities so issued shall in all
respects have the same legal rank and benefit under this Indenture as the
Securities theretofore or thereafter issued in accordance with the terms of
this Indenture as though all of such Securities had been issued at the date of
the execution hereof.

 

In case of any such consolidation, merger, sale, lease
or conveyance, such changes in phraseology and form (but not in substance) may
be made in the Securities thereafter to be issued as may be appropriate. SECTION 803.Officers’ Certificate and Opinion of
Counsel.Any consolidation, merger, sale, lease or conveyance permitted under
Section 801 is also subject to the condition that the Trustee receive an
Officers’ Certificate and an Opinion of Counsel to the effect that any such consolidation,
merger, sale, lease or conveyance, and the assumption by any successor entity,
complies with the provisions of this Article and that all conditions
precedent herein provided for relating to such transaction have been complied
with.

 

ARTICLE NINE

 

SUPPLEMENTAL
INDENTURES

 

SECTION 901.Supplemental
Indentures Without Consent of Holders.Without the consent of any Holders of
Securities or coupons, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:

 

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

 

(2)                                  to
add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of
less than all series of Securities, stating that such covenants are expressly
being 

 

35

 

included solely for the
benefit of such series) or to surrender any right or power herein conferred
upon the Company; or

 

(3)                                  to
add any additional Events of Default for the benefit of the Holders of all or
any series of Securities (and if such Events of Default are to be for the
benefit of less than all series of Securities, stating that such Events of
Default are expressly being included solely for the benefit of such series); prouided, however, that in respect of any
such additional Events of Default such supplemental indenture may provide for a
particular period of grace after default (which period may be shorter or longer
than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such default or may limit the remedies available to
the Trustee upon such default or may limit the right of the Holders of a
majority in aggregate principal amount of that or those series of Securities to
which such additional Events of Default apply to waive such default: or

 

(4)                                  to
add to or change any of the provisions of this Indenture to provide that Bearer
Securities may be registrable as to principal, to change or eliminate any
restrictions on the payment of principal of or any premium or interest on
Bearer Securities, to permit Bearer Securities to be issued in exchange for
Registered Securities, to permit Bearer Securities to be issued in exchange for
Bearer Securities of other authorized denominations or to permit or facilitate
the issuance of Securities in uncertificated form, provided that any such action shall not adversely affect the
interests of the Holders of Securities of any series or any related coupons in
any material respect; or

 

(5)                                  to
change or eliminate any of the provisions of this Indenture, provided that any such change or
elimination shall become effective only when there is no Security Outstanding
of any series created prior to the execution of such supplemental indenture
which is entitled to the benefit of such provision; or

 

(6)                                  to
secure the Securities; or

 

(7)                                  to
establish the form or terms of Securities of any series and any related
couponsas permitted by Sections 201 and 301; or

 

(8)                                  to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
Trustee; or

 

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

 

(10)                            to
supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of
Securities pursuant to Sections 401, 1402 and 1403; provided that any such action shall not adversely affect the
interests of the Holders of Securities of such series and any related coupons
or any other series of Securities in any material respect. SECTION 902.Supplemental
Indentures with Consent of Holders. With the consent of the Holders of not less
than a majority in principal amount of all Outstanding Securities affected by
such supplemental indenture, by Act of said Holders delivered to the Company
and the Trustee, the Company, when authorized by or pursuant to a Board Resolution,
and the Trustee may enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders of Securities and any related coupons under
this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby:

 

(1)                                  change
the Stated Maturity of the principal of (or premium or Make-Whole Amount, if
any, on) or any installment of principal of or interest on, any Security; or
reduce the principal amount thereof or the rate or amount of interest thereon
or any Additional Amounts payable in respect thereof, or any premium payable
upon the redemption thereof, or change any obligation of the Company to pay
Additional Amounts pursuant to Section 1012 (except as contemplated by
Section 801(1) and permitted by Section 901(1)), or reduce the amount
of the principal of an Original Issue Discount Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 502 or the amount thereof provable in bankruptcy pursuant to
Section 504, or adversely affect any right of repayment at the option of
the Holder of any Security, or change any Place of Payment where, or the
currency or currencies, currency unit or units or composite currency or
currencies in which, any Security or any premium or the interest thereon is payable,
or impair the right to institute suit for the enforcement of any such payment
on or after the Stated Maturity thereof, (or, in the case of redemption or
repayment at the option of the Holder, on or after the Redemption Date or the
Repayment Date, as the case may be), or

 

(2)                                  reduce
the percentage in principal amount of the Outstanding Securities of any series,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver with respect

 

36

 

to such series (or
compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences) provided for in this Indenture, or reduce the
requirements of Section 1504 for quorum or voting, or

 

(3)                                  modify
any of the provisions of this Section, Section 513 or Section 1013,
except to increase the required percentage to effect such action or to provide
that certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Outstanding Security affected
thereby.

 

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

 

A supplemental indenture which changes or eliminates
any covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more particular series of Securities,
or which modifies the rights of the Holders of Securities of such
series vith respect to such covenant or other provision, shall be deemed
not to affect the rights under this kienture of the Holders of Securities of
any other series. SECTION 903.Execution of
Supplemental Indentures.In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modification thereby of the trusts created by this Indenture, the Trustee shall
be entitled to receive, and shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise. SECTION 904.Effect of Supplemental Indentures.Upon the
execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder and
of any coupon appertaining thereto shall be bound thereby. SECTION 906.Conformity with Trust Indenture Act.Every
supplemental indenture executed pursuant to this Article shall conform to
the requirements of the Trust Indenture Act as then in effect. SECTION 906.Reference in Securities to Supplemental
Indentures. Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and
shall, if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such
supplemental indenture may be prepared and executed by the Company and authenticated
and delivered by the Trustee in exchange for Outstanding Securities of such
series. SECTION 907.Notice of Supplemental
Indentures.Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of Section 902, the
Company shall give notice thereof to the Holders of each Outstanding Security
affected, in the manner provided for in Section 106, setting forth in
general terms the substance of such supplemental indenture.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 1001.Payment
of Principal, Premium (if any), Make-Whole Amount (if any), Interest and
Additional Amounts.The Company covenants and agrees for the benefit of the
Holders of each series of Securities that it will duly and punctually pay the
principal of (and premium or Make-Whole Amount, if any) and interest on and any
Additional Amounts payable in respect of the Securities of that series in
accordance with the terms of such series of Securities, any coupons
appertaining thereto and this Indenture. Unless otherwise specified as
contemplated by Section 301 with respect to any series of Securities, any
interest due on and any Additional Amounts payable in respect of Bearer
Securities on or before Maturity, other than Additional Amounts, if any, payable
as provided in Section 1012 in respect of principal of (or premium or
Make-Whole Amount, if any, on) such a Security, shall be payable only upon
presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature. Unless
otherwise specified with respect to Securities of any series pursuant to
Section 301, at the option of the Company, all payments of principal may
be paid by check to the registered Holder of the Registered Security or other
person entitled thereto against surrender of such Security. SECTION 1002.Maintenance of Office or Agency.If
Securities of a series are issuable only as Registered Securities, the Company
shall maintain in each Place of Payment for any series of Securities an office
or agency where Securities of that series may be presented or surrendered for
payment or conversion, where Securities of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may
be served. If Securities of a series are issuable as Bearer Securities, the
Company will maintain: (A) in the Borough of Manhattan, The City of New
York, an office or agency where any Registered Securities of that series may be
presented or surrendered for payment or conversion, where any Registered
Securities of that series may be surrendered for registration of transfer,
where Securities of that series may be surrendered for exchange, where notices
and demands to or upon the Company in respect of the Securities of that series
and this Indenture may be served and where Bearer Securities of that series and
related coupons may be presented or surrendered for payment or conversion in
the circumstances described in the following paragraph (and not otherwise);
(B) subject to any laws or regulations applicable thereto, in a Place of
Payment for that series which is located outside the United States, an office
or agency where Securities of that series and related coupons may be presented
and surrendered for payment (including payment of any Additional Amounts
payable on Securities of that series pursuant to Section 1012) or
conversion; provided, however,
that if the Securities of that series are listed on the Luxembourg Stock
Exchange or any other stock exchange located outside the United States and such
stock exchange shall so require, the Company will

 

37

 

maintain a Paying Agent for the Securities of that series in Luxembourg
or any other required city located outside the United States, as the case may
be, so long as the Securities of that series are listed on such exchange; and
(C) subject to any laws or regulations applicable thereto, in a Place of
Payment for that series located outside the United States an office or agency
where any Registered Securities of that series may be surrendered for
registration of transfer, where Securities of that series may be surrendered
for exchange and where notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be served. The Company
will give prompt written notice to the Trustee of the location, and any change
in the location, of each such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, except that Bearer Securities of that series and the related coupons
may be presented and surrendered for payment (including payment of any
Additional Amounts payable on Bearer Securities of that series pursuant to
Section 1012) or conversion at the offices specified in the Security, in
London, England, and the Company hereby appoints the same as its agent to
receive such respective presentations, surrenders, notices and demands, and the
Company hereby appoint the Trustee its agent to receive all such presentations,
surrenders, notices and demands.

 

Unless otherwise specified with respect to any Securities pursuant to
Section 301, no payment of principal, premium or interest on or Additional
Amounts in respect of Bearer Securities shall be made at any office or agency
of the Company in the United States or by check mailed to any address in the
United States or by transfer to an account maintained with a bank located in
the United States: provided, however,
that, if the Securities of a series are payable in Dollars, payment of
principal of and any premium and interest on any Bearer Security (including any
Additional Amounts payable on Securities of such series pursuant to
Section 1012) shall be made at the office of the Company’s Paying Agent in
the Borough of Manhattan, The City of New York, if (but only if) payment in
Dollars of the full amount of such principal, premium or Make-Whole Amount,
interest or Additional Amounts, as the case may be, at all offices or agencies
outside the United States maintained for the purpose by the Company in
accordance with this Indenture, is illegal or effectively precluded by exchange
controls or other similar restrictions.

 

The Company may from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all of such purposes, and may from time to time rescind
such designations: provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain an office or agency in accordance with the
requirements set forth above for Securities of any series for such purposes.
The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency. Unless otherwise specified with respect to any Securities
pursuant to Section 301 with respect to a series of Securities, the
Company hereby designates as a Place of Payment for each series of Securities the
office or agency of the Company in the Borough of Manhattan, The City of New
York, and initially appoints the Trustee at its Corporate Trust Office as
Paying Agent in such city and as its agent to receive all such presentations,
surrenders, notices and demands.

 

Unless otherwise specified with respect to any
Securities pursuant to Section 301, if and so long as the Securities of
any series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other
provision of the Indenture, then the Company will maintain with respect to each
such series of Securities, or as so required, at least one exchange rate agent.
SECTION 1003.Money for Securities Payments to Be
Held in Trust. If the Company shall at any time act as its own Paying Agent
with respect to any series of any Securities and any related coupons, it will,
on or before each due date of the principal of (and premium or Make-Whole
Amount, if any), or interest on or Additional Amounts in respect of, any of the
Securities of that series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum in the currency or currencies, currency unit or
units or composite currency or currencies in which the Securities of such
series are payable (except as otherwise specified pursuant to Section 301
for the Securities of such series) sufficient to pay the principal (and premium
or Make-Whole Amount, if any) or interest or Additional Amounts so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided, and will promptly notify the Trustee of its action or failure
so to act.

 

Whenever the Company shall have one or more Paying Agents for any
series of Securities and any related coupons, it will, on or before each due
date of the principal of (and premium or Make-Whole Amount, if any), or
interest on or Additional Amounts in respect of, any Securities of that series,
deposit with a Paying Agent a sum (in the currency or currencies, currency unit
or units or composite currency or currencies described in the preceding
paragraph) sufficient to pay the principal (and premium or Make-Whole Amount,
if any) or interest or Additional Amounts, so becoming due, such sum to be held
in trust for the benefit of the Persons entitled to such principal, premium or
interest or Additional Amounts and (unless such Paying Agent is the Trustee)
the Company will promptly notify the Trustee of its action or failure so to
act.

 

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

 

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

 

38

 

(2)                                  give
the Trustee notice of any default by the Company (or any other obligor upon the
Securities) in the making of any such payment of principal (and premium or
Make-Whole Amount, if any) or interest: and

 

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

 

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

 

Except as otherwise provided in the Securities of any
series, any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of (and premium or
Make-Whole Amount, if any) or interest on, or any Additional Amounts in respect
of, any Security of any series and remaining unclaimed for two years after such
principal (and premium or Make-Whole Amount, if any), interest or Additional
Amounts has become due and payable shall be paid to the Company upon Company
Request or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment of such principal of (and
premium or Make- Whole Amount, if any) or interest on, or any Additional
Amounts in respect of, any Security, without interest thereon, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company came to be published once, in an Authorized Newspaper,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company. SECTION 1004.Limitations on
Incurrence of Debt

 

(a) The Company will not, and will not permit any Subsidiary to, incur
any Debt (as defined below), other than intercompany Debt (representing Debt to
which the only parties are Colonial, any of its subsidiaries, the Company and
any Subsidiary, or Debt owed to the Management Corporation arising from routine
cash management practices, but only so long as such Debt is held solely by any
of Colonial, any of its subsidiaries, the Company and any Subsidiary), that is
subordinate in right of payment to the Securities, if, immediately after giving
effect to the incurrence of such Debt and the application of the proceeds
thereof, the aggregate principal amount of all outstanding Debt of the Company
and its Subsidiaries on a consolidated basis determined in accordance with
generally accepted accounting principles is greater than 60% of the sum of
(i) the Company’s Adjusted Total Assets (as defined below) as of the end
of the most recent fiscal quarter prior to the incurrence of such additional
Debt, (ii) the purchase price of any real estate assets or mortgages
receivable (or interests therein) acquired by the Company or any Subsidiary
since the end of such fiscal quarter, including those obtained in connection
with the incurrence of such additional Debt and (iii) the amount of any
securities offering proceeds received by the Company or any Subsidiary since
the end of such fiscal quarter (to the extent that such proceeds were not used
to acquire such real estate assets or mortgages receivable or used to reduce
Debt); and

 

(b) The Company will not, and will not permit any Subsidiary to, incur
any Debt if the ratio of Consolidated Income Available for Debt Service to the
Annual Service Charge for the four consecutive fiscal quarters most recently
ended prior to the date on which such additional Debt is to be incurred shall
have been less than 1.5 to 1, on a pro forma basis after giving effect to the
incurrence of such Debt and to the application of the proceeds thereof; and

 

(c) The Company will not, and will not permit any Subsidiary to, incur
any Debt secured by any mortgage, lien, charge, pledge, encumbrance or security
interest of any kind upon any of the property of the Company or any Subsidiary
(“Secured Debt”) whether owned at the date of the Indenture or thereafter
acquired, if, immediately after giving effect to the incurrence of such Secured
Debt and the application of the proceeds thereof, the aggregate principal
amount of all outstanding Secured Debt of the Company and its Subsidiaries on a
consolidated basis is greater than 40% of the sum of (i) the
Company’sAdjusted Total Assets as of the end of the most recent fiscal quarter
prior to the incurrence of such additional Debt, (ii) the purchase price
of any real estate assets or mortgages receivable (or interests therein)
acquired by the Company or any Subsidiary since the end of such fiscal quarter,
including those obtained in connection with the incurrence of such additional
Debt and (iii) the amount of any securities offering proceeds received by
the Company or any Subsidiary since the end of such fiscal quarter (to the
extent that such proceeds were not used to acquire such real estate assets or mortgages
receivable or used to reduce Debt); and

 

(d) The Company will at all times maintain an Unencumbered Total Asset
Value in an amount not less than 150% of the aggregate principal amount of all
outstanding unsecured Debt of the Company and its Subsidiaries.

 

For purposes of the foregoing provisions regarding the
limitation on the incurrence of Debt, Debt shall be deemed to be “incurred by
the Company or a Subsidiary whenever the Company or such Subsidiary shall
create, assume, guarantee or otherwise become liable in respect thereof. SECTION 1005.Intentionally Omitted. SECTION 1006.Existence.Subject to Article Eight,
the Company will do or cause

 

39

 

to be done all things
necessary to preserve and keep in full force and effect its existence, rights
(by partnership agreement and statute) and franchises; provided, however, that the Company shall
not be required to preserve any right or franchise if it determines that the
preservation thereof is no longer desirable in the conduct of its business and
that the loss thereof is not disadvantageous in any material respect to the
Holders. SECTION 1007.Maintenance of
Properties.The Company will cause all of its material properties used or useful
in the conduct of its business or the business of any Subsidiary to be
maintained and kept in good condition, repair and working order and supplied
with all necessary equipment and will cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times;
provided, however,that the
Company and its Subsidiaries shall not be prevented from selling or otherwise
disposing of for value its properties in the ordinary course of its business. SECTION 1008.Insurance.The Company will, and will
cause each of its Subsidiaries to, keep all of its insurable properties insured
against loss or damage at least equal to their then full insurable value with
insurers of recognized responsibility and having an A.M. Best policy
holder’s rating of not less than A-:V. SECTION 1009.Payment
of Taxes and Other Claims.The Company will pay or discharge or cause to be paid
or discharged, before the same shall become delinquent, (1) all taxes,
assessments and governmental charges levied or imposed upon it or any
Subsidiary or upon the income, profits or property of the Company or any
Subsidiary, and (2) all lawful claims for labor, materials and supplies
which, if unpaid, might by law become a lien upon the property of the Company
or any Subsidiary; provided, however,
that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings or for which the Company has set apart and maintains an adequate
reserve. SECTION 1010.Provision of Financial
Information.Whether or not the Company is subject to Section 13 or 15(d)
of the Exchange Act, the Company will, to the extent permitted under the
Exchange Act, file with the Commission the annual reports, quarterly reports
and other documents which the Company would have been required to file with the
Commission pursuant to such Section 13 or 15(d) if the Company were so
subject (the “Financial Information”), such documents to be filed with the
Commission on or prior to the respective dates (the “Required Filing Dates”) by
which the Company would have been required so to file such documents if the
Company were so subject. The Company will also in any event (x) within
15 days of each Required Filing Date (i) transmit by mail to all
Holders, as their names and addresses appear in the Security Register, without
cost to such Holders, copies of the Financial Information and (ii) file
with the Trustee copies of the Financial Information, and (y) if filing
such documents by the Company with the Commission is not permitted under the
Exchange Act, promptly upon written request and payment of the reasonable cost
of duplication and delivery, supply copies of such documents to any prospective
Holder. SECTION 1011.Statement as to
Compliance.The Company will, in accordance with Section 314 of the TIA,
deliver to the Trustee, within 120 days after the end of each fiscal year,
a brief certificate from the principal executive officer, principal financial
officer or principal accounting officer as to his or her knowledge of the
Company’s compliance with all conditions and covenants under this Indenture
and, in the event of any noncompliance, specifying such noncompliance and the
nature and status thereof. For purposes of this Section 1011, such
compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture. SECTION 1012.Additional
Amounts.If any Securities of a series provide for the payment of Additional
Amounts, the Company will pay to the Holder of any Security of such series or
any coupon appertaining thereto Additional Amounts as may be specified as
contemplated by Section 301. Whenever in this Indenture there is
mentioned, in any context except in the case of Section 502(1), the
payment of the principal of or any premium or interest on, or in respect of,
any Security of any series or payment of any related coupon or the net proceeds
received on the sale or exchange of any Security of any series, such mention
shall be deemed to include mention of the payment of Additional Amounts
provided by the terms of such series established pursuant to Section 301
to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms and express mention of the
payment of Additional Amounts (if applicable) in any provisions hereof shall
not be construed as excluding Additional Amounts in those provisions hereof
where such express mention is not made.

 

Except as otherwise specified as contemplated by
Section 301, if the Securities of a series provide for the payment of
Additional Amounts, at least 10 days prior to the first Interest Payment
Date with respect to that series of Securities (or if the Securities of that
series will not bear interest prior to Maturity, the first day on which a
payment of principal and any premium is made), and at least 10 days prior
to each date of payment of principal and any premium or interest if there has
been any change with respect to the matters set forth in the below-mentioned
Officers’ Certificate, the Company will furnish the Trustee and the Company’s
principal Paying Agent or Paying Agents, if other than the Trustee, with an
Officers’ Certificate instructing the Trustee and such Paying Agent or Paying
Agents whether such payment of principal of and any premium or interest on the
Securities of that series shall be made to Holders of Securities of that series
or any related coupons who are not United States persons without withholding
for or on account of any tax, assessment or other governmental charge described
in the Securities of the series. If any such withholding shall be required,
then such Officers’ Certificate shall speclfy by country the amount, if any,
required to be withheld on such payments to such Holders of Securities of that
series or related coupons and the Company will pay to the Trustee or such
Paying Agent the Additional Amounts required by the terms of such Securities.
If the Trustee or any Paying Agent, as the case may be, shall not so receive
the above-mentioned certificate, then the Trustee or such Paying Agent shall be
entitled (i) to assume that no such withholding or deduction is required
with respect to any payment cf principal or interest with respect to any
Securities of a series or related coupons until it shall have received a certificate
advising otherwise and (ii) to make all payments of principal and interest
with respect to the Securities of a series or related coupons without
withholding or deductions until otherwise advised. The Company covenants to
indemnify the Trustee and any Paying Agent for, and to hold them harmless
against, any loss, liability or expense reasonably incurred without negligence
or bad faith on their part arising out of or in connection with actions taken
or omitted by any them or in reliance on any Officers’ Certificate furnished
pursuant to this Section or in reliance on the Company’s not furnishing
such an Officers’ Certificate. SECTION 1013.Waiver
of Certain Covenants.The Company may omit in any particular instance to comply
with

 

40

 

any term, provision or condition set forth in Sections 1004 to 1010,
inclusive, if before or after the time for such compliance the Holders of at
least a majority in principal amount of all outstanding Securities of such
series, by Act of such Holders, either waive such compliance in such instance
or generally waive compliance with such covenant or condition, but no such
waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

 

ARTICLE ELEVEN

REDEMPTION
OF SECURITIES

 

SECTION 1101.Applicability
of Article.Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section301 for Securities of any series)
in accordance with this Article. SECTION 1102.Election
to Redeem; Notice to Trustee.The election of the Company to redeem any
Securities shall be evidenced by or pursuant to a Board Resolution. In case of
any redemption at the election of the Company of all or less than all of the Securities
of any series, the Company shall, at least 45 days prior to the giving of the
notice of redemption in Section 1104 (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities of such series to be redeemed. In the case
of any redemption of Securities prior to the expiration of any restriction on
such redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with such restriction. SECTION 1103.Selection
by Trustee of Securities to Be Redeemed. If less than all the Securities of any
series issued on the same day with the same terms are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series issued on such date with the same terms not previously called for
redemption, by such method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for Securities of that series or any integral
multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of
that series.

 

The Trustee shall promptly notify the Company and the Security
Registrar (lf other than itself) in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption,
the principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemptiorl of Securities
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the pertion of the principal amount of such Security which has been or
is to be redeemed. SECTION 1104.Notice of
Redemption.Notice of redemption shall he given in the manner provided in
Section 106, not less than 30 days nor more than 60 days prior
to the Redemption Date, unless a shorter period is specified by the terms of
such series established pursuant to Section 301, to each Holder of
Securities to be redeemed, but failure to give such notice in the manner herein
provided to the Holder of any Security designated for redemption as a whole or
in part, or any defect in the notice to any such Holder, shall not affect the
validity of the proceedings for the redemption of any other such Security or
portion thereof.

 

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

 

All notices of redemption shall state:

 

(1)                                  the
Redemption Date,

 

(2)                                  the
Redemption Price, accrued interest to the Redemption Date payable as provided
in Section 1106, if any, and Additional Amounts, if any,

 

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

 

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

 

(5)                                  that
on the Redemption Date the Redemption Price and accrued interest to the
Redemption Date payable as provided in Section 1106, if any, will become
due and payable upon each such Security, or the portion thereof, to be redeemed
and, if applicable, that interest thereon shall cease to accrue on and after
said date unless the Company shall default in the payment of the Redemption
Price and any accrued interest thereon,

 

(6)                                  the
Place or Places of Payment where such Securities, together in the case of Bearer
Securities with all coupons appertaining thereto, if any, maturing after the
Redemption Date, are to be surrendered for payment of the Redemption Price and

 

41

 

accrued interest,
if any, or for conversion,

 

(7)                                  that,
unless otherwise specified in such notice, Bearer Securities of any series, if
any, surrendered for redemption must be accompanied by all coupons maturing
subsequent to the date fmed for redemption or the amount of any such missing
coupon or coupons will be deducted from the Redemption Price, unless security
or indemnity satisfactory to the Company and the Trustee for such series and
any Paying Agent is furnished,

 

(8)                                  if
Bearer Securities of any series are to be redeemed and any Registered Securities
of such series are not to be redeemed, and if such Bearer Securities may be
exchanged for Registered Securities not subject to redemption on this
Redemption Date pursuant to Section 305 or otherwise, the last date, as
determined by the Company, on which such exchanges may be made,

 

(9)                                  the
CUSIP number of such Security, if any, and

 

(10)                            if
applicable, that a Holder of Securities who desires to convert Securities for
redemption must satisfy the requirements for conversion contained in such
Securities, the then existing conversion price or rate, and the date and time
when the option to convert shall expire.

 

Notice of redemption of Securities to be redeemed
shall be given by the Company or, at the Company’s request, by the Trustee in
the name and at the expense of the Company. SECTION 1105.Deposit
of Redemption Price.At least one Business Day prior to any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money in the currency or
currencies, currency unit or units or composite currency or currencies in which
the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) sufficient to
pay on the Redemption Date the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities or portions thereof which are to be redeemed on that date. SECTION 1106.Securities Payable on Redemption
Date.Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified in the currency or currencies, currency unit
or units or composite currency or currencies in which the Securities of such
series are payable (except as otherwise specified pursuant to Section 301
for the Securities of such series) (together with accrued interest, if any, to
the Redemption Date), and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall, if the same were interest-bearing, cease to bear interest and
the coupons for such interest appertaining to any Bearer Securities so to be
redeemed, except to the extent provided below, shall be void. Upon surrender of
any such Security for redemption in accordance with said notice, together with
all coupons, if any, appertaining thereto maturing after the Redemption Date,
such Security shall be paid by the Company at the Redemption Price, together
with accrued interest, if any, to the Redemption Date; provided, however, that installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only at an office or agency located outside
the United States (except as otherwise provided in Section 1002) and,
unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of coupons for such interest; and provided further that, installments of
interest on Registered Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Securities, or one or
more Predecessor Securities, registered as such at the close of business on the
relevant Regular Record Dates according to their terms and the provisions of
Section 307.

 

If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant coupons maturing after the Redemption Date, such
Security may be paid after deducting from the Redemption Price an amount equal
to the face amount of all such missing coupons, or the surrender of such
missing coupon or coupons may be waived by the Company and the Trustee if there
be furnished to them such security or indemnity as they may require to save
each of them and any Paying Agent harmless. If thereafter the Holder of such
Security shall surrender to the Trustee or any Paying Agent any such missing
coupon in respect of which a deduction shall have been made from the Redemption
Price, such Holder shall be entitled to receive the amount so deducted; provided, however, that interest
represented by coupons shall be payable only at an office or agency located
outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those coupons.

 

If any Security called for redemption by the Company
shall not be so paid upon surrender thereof for redemption by reason of a
failure to comply with Section 1105, the principal (and premium or
Make-Whole Amount, if any) shall, until paid, bear interest from the Redemption
Date at the rate borne by the Security. SECTION 1107.Securities
Redeemed in Part.Any Registered Security which is to be redeemed only in part
(pursuant to the provisions of this Article) shall be surrendered at a Place of
Payment therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing) and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge
a new Security or Securities of the same series, of any authorized denomination
as requested by such Holder in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so
surrendered.

 

42

 

ARTICLE TWELVE

[INTENTIONALLY
OMITTED]

 

ARTICLE THIRTEEN

REPAYMENT
AT THE OPTION OF HOLDERS

 

SECTION 1301.Applicability
of Article.Repayment of Securities of any series before their Stated Maturity
at the option of Holders thereof shall be made in accordance with the terms of
such Securities, if any, and (except as otherwise specified by the terms of
such series established pursuant to Section 301) in accordance with this
Article. SECTION 1302.Repayment of
Securities.Securities of any series subject to repayment in whole or in part at
the option of the Holders thereof will, unless otherwise provided in the terms
of such Securities, be repaid at a price equal to the principal amount thereof,
together with interest, if any, thereon accrued to the Repayment Date specified
in or pursuant to the terms of such Securities. The Company covenants that at
least one Business Day prior to the Repayment Date it will deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003) an amount
of money in the currency or currencies, currency unit or units or composite
currency or currencies in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities
of such series) sufficient to pay the principal (or, if so provided by the
terms of the Securities of any series, a percentage of the principal) of, and
(except if the Repayment Date shall be an Interest Payment Date) accrued
interest on, all the Securities or portions thereof, as the case may be, to be
repaid on such date. SECTION 1303.Exercise of
Option.Securities of any series subject to repayment at the option of the
Holders thereof will contain an “Option to Elect Repayment” form on the reverse
of such Securities. In order for any Security to be repaid at the option of the
Holder, the Trustee must receive at the Place of Payment therefore specified in
the terms of such Security (or at such other place or places of which the
Company shall from time to time notify the Holders of such Securities) not
earlier than 60 days nor later than 30 days prior to the Repayment
Date (1)the Security so providing for such repayment together with the “Option
to Elect Repayment” form on the reverse thereof duly completed by the Holder
(or by the Holder’s attorney duly authorized in writing) or (2) a
telegram, telex, facsimile transmission or a letter from a member of a national
securities exchange, or the National Association of Securities
Dealers, Inc. (“ASD”), or a commercial bank or trust company in the United
States setting forth the name of the Holder of the Security, the principal
a’hiount of the Security, the principal amount of the Security to be repaid,
the CUSIP number, if any, or a description of the tenor and terms of the
Security, a statement that the option to elect repayment is being exercised
thereby and a guarantee that the Security to be repaid, together with the duly
completed form entitled “Option to Elect Repayment” on the reverse of the
Security, will be received by the Trustee not later than the fifth Business Day
after the date of such telegram, telex, facsimile transmission or letter; provided, however, that such telegram,
telex, facsimile transmission or letter shall only be effective if such
Security and form duly completed are received by the Trustee by such fifth
Business Day. If less than the entire principal amount of such Security is to
be repaid in accordance with the terms of such Security, the principal amount
of such Security to be repaid, in increments of the minimum denomination for
Securities of such series, and the denomination or denominations of the Security
or Securities to be issued to the Holder for the portion of the principal
amount of such Security surrendered that is not to be repaid, must be
specified. The principal amount of any Security providing for repayment at the
option of the Holder thereof may not be repaid in part if, following such
repayment, the unpaid principal amount of such Security would be less than the
minimum authorized denomination of Securities of the series of which such
Security to be repaid is a part. Except as otherwise may be provided by the
terms of any Security providing for repayment at the option of the Holder
thereof, exercise of the repayment option by the Holder shall be irrevocable
unless waived by the Company. SECTION 1304.When
Securities Presented for Repayment Become Due and Payable.If Securities of any
series that provide for repayment at the option of the Holders thereof shall
have been surrendered as provided in this Article and as provided by or
pursuant to the terms of such Securities, such Securities or the portion
thereof, as the case may be, to be repaid shall become due and payable and
shall be paid by the Company on the Repayment Date therein specified, and on
and after such Repayment Date (unless the Company shall default in the payment
of such Securities on such Repayment Date) such Securities shall, if the same
were interest-bearing, cease to bear interest and the coupons for such interest
appertaining to any Bearer Securities so to be repaid, except to the extent
provided below, shall be void. Upon surrender of any such Security for
repayment in accordance with such provisions, together with coupons, If any,
appertaining thereto maturing after the Repayment Date, the principal amount of
such Security so to be repaid
shall be paid by the Company, together with accrued interest, if any, on the
Repayment Date; provided, however,
that coupons whose Stated Maturity is on or prior to the Repayment Date shall
be payable at an office or agency located outside the United States (except as
otherwise provided in Section 1002) and, unless otherwise specified
pursuant to Section 301, only upon presentation and surrender of such
coupons; and provided further
that, in the case of Registered Securities, installments of interest, if any,
whose Stated Maturity is on or prior to the Repayment Date shall be payable
(but with interest thereon, unless the Company shall default in the payment
thereof) to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business relevant Regular Record
Dates according to their terms and the provisions of Section 307.

 

If any Bearer Security surrendered for repayment shall not be
accompanied by all appurtenant coupons maturing after the Repayment Date, such
Security may be paid after deducting from the amount payable therefor as
provided in Section 1302 an amount equal to the face amount of all such
missing coupons, or the surrender of such missing coupon or coupons may be
waived by the Company and the Trustee if there be furnished to it such security
or indemnity as they may require to save it and any Paying Agent harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
Paying Agent any such missing coupon in respect of which a deduction shall have
been made as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided,
however, that interest represented by coupons shall be payable only
at an office or agency located outside the United States

 

43

 

(except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only presentation and
surrender of those coupons.

 

If the principal amount of any Security surrendered
for repayment shall not be so repaid upon surrender thereof by reason of a
failure by the Company to comply with this Section 1304, such principal
amount (together with interest, if any, thereon accrued to such Repayment Date)
shall, until paid, bear interest from the Repayment Date at the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) set forth in such Security. SECTION 1306.Securities Repaid in Part.Upon surrender of any
Registered Security which is to be repaid in part only, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security, without service charge and at the expense of the Company, a new
Registered Security or Securities of the same series, of any authorized
denomination specified by the Holder, in an aggregate principal amount equal to
and in exchange for the portion of the principal of such Security so
surrendered which is not to be repaid.

 

ARTICLE FOURTEEN

DEFEASANCE
AND COVENANT DEFEASANCE

 

SECTION 1401.Applicability
of Article; Company’s Option to Effect Defeasance or Covenant Defeasance.If,
pursuant to Section 301, provision is made for either or both of
(a) defeasance of the Securities of or within a series under
Section 1402 or (b) covenant defeasance of the Securities of or
within a series under Section 1403, then the provisions of such
Section or Sections, as the case may be, together with the other
provisions of this Article (with such modifications thereto as may be
specified pursuant to Section 301 with respect to any Securities), shall
be applicable to such Securities and any coupons appertaining thereto, and the
Company may at its option by Board Resolution, at any time, with respect to
such Securities and any coupons appertaining thereto, elect to have Section 1402
(if applicable) or Section 1403 (if applicable) be applied to such
Outstanding Securities and any coupons appertaining thereto upon compliance
with the conditions set forth below in this Article. SECTION 1402.Defeasance
and Discharge.Upon the Company’s exercise of the above option applicable to
this Section with respect to any Securities of or within a series, the
Company shall be deemed to have been discharged from its obligations with
respect to such Outstanding Securities and any coupons appertaining thereto on
the date the conditions set forth in Section 1404 are satisfied
(hereinafter, “defeasance”). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Outstanding Securities and any coupons appertaining
thereto, whch shall thereafter be deemed to be “Outstanding” only for the
purposes of Section 1405 and the other Sections of this Indenture referred
to in clauses (A) and (B) below, and to have satisfied all of its other
obligations under such Securities and any coupons appertaining thereto and ths
Indenture insofar as such Securities and any coupons appertaining thereto are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (A) the rights
of Holders of such Outstanding Securities and any coupons appertaining thereto
to receive, solely from the trust fund described in Section 1404 and as
more fully set forth in such Section, payments in respect of the principal of
(and premium or Make-Whole Amount, if any) and interest, if any, on such
Securities and any coupons appertaining thereto when such payments are due, (B)
the Company’s obligations with respect to such Securities under Sections 305,
306, 1002 and 1003 and with respect to the payment of Additional Amounts, if
any, on such Securities as contemplated by Section 1012, (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and (D)
this Article. Subject to compliance with this Article Fourteen, the
Company may exercise its option under this Section notwithstanding the
prior exercise of its option under Section 1403 with respect to such
Securities and any coupons appertaining thereto.

 

SECTION 1403.Covenant Defeasance.Upon the
Company’s exercise of the above option applicable to this Section with
respect to any Securities of or within a series, the Company shall be released
from its obligations under Sections 1004 to 1010, inclusive and, if
specified pursuant to Section 301, its obligations under any other
covenant, with respect to such Outstanding Securities and coupons appertaining
thereto on and after the date the conditions set forth in Section 1304 are
satisfied (hereinafter, “covenant defeasance”), and such Securities and any
coupons appertaining thereto shall thereafter be deemed to be not “Outstanding”
for the purposes of any direction, waiver, consent or declaration or Act of
Holders (and the consequences of any thereof) in connection with
Sections 1004 to 1010, inclusive, or such other covenant, but shall
continue to be deemed “Outstanding” for all other purposes hereunder. For this
purpose, such covenant defeasance means that, with respect to such Outstanding
Securities and any coupons appertaining thereto, the Company may omit to comply
with and shall have no liability in respect of any term, condition or
limitation set forth in any such Section or such other covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
Section or such other covenant or by reason of reference in any
Section or such other covenant to any other provision herein or in any
other document and such omission to comply shall not constitute a default or an
Event of Default under Section 501(3) or 501(7) otherwise, as the case may
be, but, except as specified above, remainder of this Indenture and such
Securities and any coupons appertaining thereto shall be unaffected thereby. SECTION 1404.Conditions to Defeasance or Covenant
Defeasance. The following shall be the conditions to application of
Section 1402 or Section 1403 to any Outstanding Securities of or
within a series and any coupons appertaining thereto:

 

(a)                                  The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 607 who
shall agree to comply with the provisions of this Article Fourteen
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities and any coupons appertaining
thereto, (1) an amount in such currency, currencies or currency unit in which
such

 

44

 

Securities and any coupons appertaining thereto are then specified as
payable at Stated Maturity, or (2) Government Obligations applicable to such
Securities and coupons appertaining thereto (determined on the basis of the
currency, currencies or currency unit in which such Securities and coupons
appertaining thereto are then specified as payable at Stated Maturity) which
through the scheduled payment of principal and interest in respect thereof in
accordance with the terms will provide, not later than one day before the due
date of any payment of principal of (and premium or Make-Whole Amount, if any)
and interest, if any, on such Securities and any coupons appertaining thereto, money
in an amount, or (3) a combination thereof, in any case, in an amount,
sufficient, without consideration of any reinvestment of such principal and
interest, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered the Trustee,
to pay and discharge, and which shall be applied by the Trustee (or other
qualifying trustee) to pay and discharge, the principal of (and premium or
Make-Whole Amount, if any) and interest, if any, on such Outstanding Securities
and any coupons, appertaining thereto on the Stated Maturity of such principal
or installment of principal or interest or analogous payments applicable to
such Outstanding Securities and any coupons appertaining thereto on the day on
which such payments are due and payable in accordance with the terms of this
Indenture and of such Securities and any coupons appertaining thereto.

 

(b)                                 Such
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a default under, this Indenture or any other material agreement
or instrument to which the Company is a party or by which it is bound.

 

(c)                                  No
Event of Default or event which with notice or lapse of time or both would
become an Event of Default with respect to such Securities and any coupons
appertaining thereto shall have occurred and be continuing on the date of such
deposit or, insofar as Sections 501(7) and 501(8) are concerned, at any time
during the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period).

 

(d)                                 In
the case of an election under Section 1402, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (i) the
Company 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 such Outstanding Securities and any coupons appertaining thereto
will not recognize income, gain or loss for Federal income tax purposes as a
result of such defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such defeasance had not occurred.

 

(e)                                  In
the case of an election under Section 1403, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders
of such Outstanding Securities and any coupons appertaining thereto will not
recognize income, gain or loss for Federal income tax purposes as a result of
such covenant defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such covenant defeasance had not occurred.

 

(f)                                    The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the
defeasance under Section 1402 or the covenant defeasance under
Section 1403 (as the case may be) have been complied with and an Opinion
of Counsel to the effect that either (i) as a result of a deposit pursuant
to subsection (a) above and the related exercise of the Company’s
option under Section 1402 or Section 1403 (as the case may be),
registration is not required under the Investment Company Act of 1940, as
amended, by the Company with respect to the trust funds representing such
deposit or by the Trustee for such trust funds or (ii) all necessary
registrations under said Act have been effected.

 

(g)                                 Notwithstanding
any other provisions of this Section, such defeasance or covenant defeasance
shall be effected in compliance with any additional or substitute terms,
conditions or limitations which may be imposed on the Company in connection
therewith pursuant to Section 301. SECTION 1406.Deposited Money and Government Obligations
to Be Held in Trust; Other Miscellaneous Provisions.Subject to the provisions
of the last paragraph of Section 1003, all money and Government
Obligations (or other property as may be provided pursuant to Section 301)
(including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 1405, the
“Trustee”) pursuant to Section 1404 in respect of any Outstanding
Securities of any series and any coupons appertaining thereto shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Securities and any coupons appertaining thereto and this Indenture, to the
payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of such Securities and any coupons appertaining
thereto of all sums due and to become due thereon in respect of principal (and
premium or Make-Whole Amount, if any) and interest and Additional Amounts, if
any, but such money need not be segregated from other funds except to the
extent required by law.

 

Unless otherwise specified with respect to any Security pursuant to
Section 301, if, after a deposit referred to in Section 1404(a) has
been made, (a) the Holder of a Security in respect of which such deposit
was made is entitled to, and does, elect pursuant to Section 301 or the
terms of such Security to receive payment in a currency or currency unit other
than that in which the deposit pursuant to Section 1404(a) has been made
in respect of such Security, or (b) a Conversion Event occurs in respect of the
currency or currency unit in which the deposit pursuant to Section 1404(a)
has been made, the indebtedness represented by such Security and any coupons
appertaining thereto shall be deemed to have been, and will be, fully
discharged and satisfied through the payment of the principal of (and premium
or Make-Whole Amount, if any), and interest, if any, on such Security as the
same becomes due out of the proceeds yielded by converting (from time to time
as specified below in the case of any such election) the amount or other
property deposited in respect of such Security

 

45

 

into the currency or currency unit in which such Security becomes
payable as a result of such election or Conversion Event based on the
applicable market exchange rate for such currency or currency unit in effect on
the second Business Day prior to each payment date, except, with respect to a
Conversion Event, for such currency or currency unit in effect (as nearly as
feasible) at the time of the Conversion Event.

 

The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the Government Obligations
deposited pursuant to Section 1404 or the principal and interest received
in respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of such Outstanding Securities and any coupons
appertaining thereto.

 

Anything in this Article to the contrary notwithstanding, subject
to Section 606, the Trustee shall deliver or pay to the Company from time
to time upon Company Request any money or Government Obligations (or other
property and any proceeds therefrom) held by it as provided in
Section 1404 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect a defeasance or covenant defeasance, as
applicable, in accordance with this Article.

 

ARTICLE FIFTEEN

 

MEETINGS
OF HOLDERS OF SECURITIES

 

SECTION 1501.Purposes
for Which Meetings May Be Called.A meeting of Holders of Securities of any
series may be called at any time and from time to time pursuant to this Article to
make, give or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be made, given or
taken by Holders of Securities of such series. SECTION 1602.Call,
Notice and Place of Meetings

 

(a)                                  The
Trustee may at any time call a meeting of Holders of Securities of any series
for any purpose specified in Section 1501, to be held at such time and at
such place in the Borough of Manhattan, The City of New York, or in London as
the Trustee shall determine. Notice of every meeting of Holders of Securities
of any series, setting forth the time and the place of such meeting and in
general terms the action proposed to be taken at such meeting, shall be given,
in the manner provided in Section 106, not less than 21 nor more than
180 days prior to the date fixed for the meeting.

 

(b)                                 In
case at any time the Company pursuant to a Board Resolution, or the Holders of
at least 10% in principal amount of the Outstanding Securities of any series,
shall have requested the Trustee to call a meeting of the Holders of Securities
of such series for any purpose specified in Section 1501, by written
request setting forth in reasonable detail the action proposed to be taken at
the meeting, and the Trustee shall not have made the first publication of the
notice of such meeting within 21 days after receipt of such request or
shall not thereafter proceed to cause the meeting to be held as provided
herein, then the Company or the Holders of Securities of such series in the
amount above sperified, as the case may be, may determine the time and the
place in the Borough of Manhattan, The City of New York, or in London for such
meeting and may call such meeting for such purposes by giving notice thereof as
provided in subsection (a) of this Section. SECTION 1503.Persons
Entitled to Vote at Meetings.To be entitled to vote at any meeting of Holders
of Securities of any series, a Person shall be (1) a Holder of one or more
Outstanding Securities of such series, or (2) a Person appointed by an
instrument in writing as proxy for a Holder or Holders of one or more
outstanding Securities of such series by such Holder or Holders. The only
Persons who shall be entitled to be present or to speak at any meeting of
Holders of Securities of any series shall be the Persons entitled to vote at
such meeting and their counsel, any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel. SECTION 1504.Quorum; Action.The Persons entitled to
vote a majority in principal amount of the Outstanding Securities of a series
shall constitute a quorum for a meeting of Holders of Securities of such
series; provided, however, that
if any action is to be taken at such meeting with respect to a consent or
waiver which this Indenture expressly provides may be given by the Holders of
not less than a specified percentage in principal amount of the Outstanding
Securities of a series, the Persons entitled to vote such specified percentage
in principal amount of the Outstanding Securities of such series shall
constitute a quorum. In the absence of a quorum within 30 minutes after the
time appointed for any such meeting, the meeting shall, if convened at the
request of Holders of Securities of such series, be dissolved. In any other
case the meeting may be adjourned for a period of not less than 10 days as
determined by the chairman of the meeting prior to the adjournment of such
meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for a period of not less than
10 days as determined by the chairman of the meeting prior to the
adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1502(a), except that
such notice need be given only once not less than five days prior to the date
on which the meeting is scheduled to be reconvened. Notice of the reconvening
of any adjourned meeting shall state expressly the percentage, as provided
above, of the principal amount of the Outstanding Securities of such series
which shall constitute a quorum.

 

Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum
is present as aforesaid may be adopted by the affirmative vote of the Holders
of a majority in principal amount of the Outstanding Securities of that series;
provided, howeuer, that, except as limited by the proviso to Section 902,
any resolution with respect

 

46

 

to any request, demand, authorization, direction, notice, consent,
waiver or other action which this Indenture expressly provides may be made,
given or taken by the Holders of a specific percentage, which is less than a
majority, in principal amount the Outstanding Securities of a series may be
adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in principal amount of the Outstanding Securities of that
series.

 

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

 

Notwithstanding the foregoing provisions of this Section 1504, if
any action is to be taken at a meeting of Holders of Securities of any series
with respect to any request, demand, authorization, direction, notice, consent,
waiver or other act that this Indenture expressly provides may be made, given
or taken by the Holders of a specified percentage in principal amount of all
Outstanding Securities affected thereby, or of the Holders of such series and
one or more additional series:

 

(i)                                     there
shall be no minimum quorum requirement for such meeting: and

 

(ii)                                  the
principal amount of the Outstanding Secur&iee af such series that vote in
favor of such request, demand, authorization, direction, notice, consent,
waiver or other action shall be taken into account in determining whether such
request, demand, authorization, direction, notice, consent, waiver or other
action has been made, given or taken under this Indenture. SECTION 1505.Determination
of Voting Rights; Conduct and Adjournment of Meetings.

 

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

 

(b)                                 The
Trustee shall, by an instrument in writing appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders
of Securities provided in Section 1502(b), in which case the Company or
the Holders of Securities of the series calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities
of such series represented at the meeting.

 

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

 

(d)                                 Any
meeting of Holders of Securities of any series duly called pursuant to
Section 1502 at which a quorum is present may be adjourned from time to
time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting, and the
meeting may be held as so adjourned without further notice. SECTION 1506.Counting Votes and Recording Action of
Meetings. The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
Series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the fact, setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1502 and, if
applicable, Section 1504. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of meeting and one such copy
shall be delivered to the Company and another to the Trustee to be preserved by
the Trustee, the latter to have attached thereto the ballots voted at the
meeting. Any record so signed and verified shall be conclusive evidence of the
matters therein stated. SECTION 1607.Evidence of Action Taken by Holders.Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by a specified
percentage in principal amount of the Holders of any or all series may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such specified percentage of Holders in person or by agent duly
appointed in writing; and, except as herein otherwise

 

47

 

expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee. Proof and execution of any instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Article Six) conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Article. SECTION 1508.Proof
of Execution of Instruments.Subject to Article Six, the execution of any
instrument by a Holder or his agent or proxy may be proved in accordance with
such reasonable rules and regulations as may be prescribed by the Trustee or in
such manner as shall be satisfactory to the Trustee.

 

*  * 
*  *  *  *

 

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

 

IN WITNESS WHEREOF,.the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested. all as of the day and year first above written.

 

	
   

  	
   

  	
  COLONIAL REALTY LIMITED PARTNERSHIP

  
	
   

  	
   

  	
  By:

  	
  COLONIAL PROPERTIES HOLDING COMPANY, INC.

  
	
   

  	
   

  	
  By:

  	
  /s/ Douglas B. Nunnelley

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: CHIEF FINANCIAL OFFICER

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST

  	
   

  	
   

  
	
  By:

  	
  /s/ Howard B. Nelson

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Assistant Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANKERS TRUST COMPANY, as Truetee

  
	
   

  	
   

  	
  By:

  	
  /s/ Jenna Kaufman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
  ATTEST

  	
   

  	
   

  
	
  By:

  	
  /s/ KEVIN WEEKE

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: Assistant Treasurer

  	
   

  	
   

  
							

 

48

 

	
  STATE OF ALABAMA

  	
  )

  	
   

  
	
   

  	
  )

  	
  as:

  
	
  COUNTY OF MONTGOMERY

  	
  )

  	
   

  
	
   

  	
   

  	
   

  

 

On the 19th day of July, 1996, before me personally came to me known,
Douglas B. Nunnelley who, being by me duly sworn, did depose and say that
he/she resides in Birmingham, Alabama, that he/she is the Senior Vice President
of Colonial Properties Holding Company, Inc. one of the parties described in
and which executed the foregoing instrument: and that he/she signed his/her
name thereto by authority of said corporation.

 

[Notarial Seal]

 

	
   

  	
  /s/ Denise M.Grissom

  	
   

  
	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
  COMMISSION EXPIRES: MY COMMISSION EXPIRES
  MAY 28, 1998

  

 

49

 

	
  STATE OF ALABAMA

  	
  )

  	
   

  
	
   

  	
  )

  	
  as:

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  
	
   

  	
   

  	
   

  

 

 

On the 2nd day of July, 1996, before me personally came to me known,
Jenna Kaufman, who, being by me duly sworn, did depose and say that she/he
resides at New York, New York that she/he is a Vice President of Banker Trust
Company, one of the parties described in and which executed the foregoing
instrument; and that he/she signed his/her name thereto by authority of said
corporation.

 

[Notarial Seal]

 

	
   

  	
  /s/ MARGARET BEREZA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
  COMMISSION EXPIRES:

  	
   

  
	
   

  	
   

  	
  MARGARET BEREZA

  
	
   

  	
   

  	
  Notary Public State of
  New York

  
	
   

  	
   

  	
  No. S1-6023900

  
	
   

  	
   

  	
  Qualified in New York
  County

  
	
   

  	
   

  	
  Commission Expires
  2/22/98

  

 

EXHIBIT A

 

FORMS OF
CERTIFICATION

 

EXHIBIT
A-1

 

FORM OF
CERTIFICATE TO BE GIVEN BY PERSON ENTITLED

TO
RECEIVE BEARER SECURITY OR TO OBTAIN INTEREST

PAYABLE
PRIOR TO THE EXCHANGE DATE

CERTIFICATE

 

[Insert title or sufficient description of Securities
to be delivered]

 

This is to certify that, as of the date hereof, and except as set forth
below, the above-captioned Securities held by you for our account (i) are
owned by person(s) that are not citizens or residents of the United States,
domestic companies, domestic corporations or any estate or trust the income of
which is subject to United States federal income taxation regardless of its
source (“United States person(s)”), (ii) are owned by United States
person(s) that are (a) foreign branches of United States financial
institutions (financial institutions, as defined in United States Treasury
Regulations Section 2.165-12(c)(l)(v) are herein referred to as
“financial institutions”) purchasing for their own account or for resale, or
(b) United States person(s) who acquired the Securities through foreign
branches of United States financial institutions and who hold the Securities
through such United States financial institutions on the date hereof (and in
either case (a) or (b), each such United States financial institution
hereby agrees, on its own behalf or through its agent, that you may advise
Colonial Realty Limited Partnership or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A),(B)
or (C) of the United States Internal Revenue Code of 1986, as amended, and the
regulations thereunder), or (iii) are owned by United States or foreign
financial institution(s) for purposes of resale during the restricted period
(as defined in United States Treasury Regulations
Section 1.163-5(c)(2)(i)(D)(7)), and, in addition, if the owner is a
United States or foreign financial institution described in clause (iii)
above (whether or not also described in clause (i) or (ii)),this is to
further certify that such financial institution has not acquired the Securities
for purposes of resale directly or indirectly to a United States person or to a
person within the United States or its possessions.

 

As used herein, “United States”
means the United States of America (including the States and the District of
Columbia); and “possessions” include Puerto Rico, the US. Virgin Islands, Guam,
American Samoa, Wake Island and the Northern Mariana Islands.

 

We undertake to advise you promptly by tested telex on or prior to the
date on which you intend to submit your certification relating to the
above-captioned Securities held by you for our account in accordance with your
Operating Procedures if any applicable statement herein is not correct on such
date, and in the absence of any such notification it may be assumed that this
certification applies as of such date.

 

50

 

This certificate excepts and does not relate to [US.
$]                       of
such interest in the above-captioned Securities in respect of which we are not
able to certify and as to which we understand an exchange for an interest in a
Permanent Global Security or an exchange for and delivery of definitive
Securities (or, if relevant, collection of any interest) cannot be made until
we do so certify.

 

We understand that this certificate may be required in connection with
certain tax legislation in the United States. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

 

51

 

Dated:                       ,
19

[To be dated no earlier than the 15th day prior to

(i) the Exchange Date or (ii) the relevant
Interest

Payment Date occurring prior to the Exchange Date,

as applicable]

 

 

	
   

  	
  [Name of Person Making Certification]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Authorized Signatory)

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

EXHIBIT
A-2

 

FORM OF
CERTIFICATE TO BE GIVEN BY EUROCLEAR

AND
CEDEL S.A. IN CONNECTION WITH THE EXCHANGE

OF A
PORTION OF A TEMPORARY GLOBAL SECURITY OR TO

OBTAIN
INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE

CERTIFICATE

 

[Insert title or sufficient description of Securities
to be delivered]

 

This is to certify that, based solely on written certifications that we
have received in writing, by tested telex or by electronic transmission from
each of the persons appearing in our records as persons entitled to a portion
of the principal amount set forth below (our “Member organizations”)
substantially in the form attached hereto, as of the date hereof, [US.
$]                    principal
amount of the above-captioned Securities (i) is owned by person(s) that
are not citizens or residents of the United States, domestic companies,
domestic corporations or any estate or trust the income of which is subject to
United States Federal income taxation regardless of its source (“United States
person(s)”), (ii) is owned by United States person(s) that are
(a) foreign branches of United States financial institutions (financial
institutions, as defined in U.S. Treasury Regulations
Section 1.165-12(c)(1)(v) are herein referred to as “financial
institutions”) purchasing for their own account or for resale, or
(b) United States person(s) who acquired the Securities through foreign
branches of United States financial institutions and who hold the Securities
through such United States financial institutions on the date hereof (and in
either case (a) or (b), each such financial institution has agreed, on its
own behalf or through its agent, that we may advise Colonial Realty Limited
Partnership or its agent that such financial institution will comply with the
requirements of Section 165(j)(3)(A),(B) or (C) of the Internal
Revenue Code of 1986, as amended, and the regulations thereunder), or
(iii) is owned by United States or foreign financial institution(s) for
purposes of resale during the restricted period (as defined in United States
Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, to the further
effect, that financial institutions described in clause (iii) above
(whether or not also described in clause (i) or (ii)) have certified
that they have not acquired the Securities for purposes of resale directly or
indirectly to a United States person or to a person within the United States or
its possessions.

 

As used herein, “United States” means the United States of America
(including the States and the District of Columbia): and its “possessions”
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

 

We further certify that (i) we are not making available herewith
for exchange (or, if relevant, collection of any interest) any portion of the
temporary global Security representing the above captioned Securities excepted
in the above-referenced certificates of Member Organizations and (ii) as
of the date hereof we have not received any notification from any of our Member
Organizations to the effect that the statements made by such Member
Organizations with respect to any portion of the part submitted herewith for
exchange (or, if relevant,
collection of any interest) are no longer true and cannot be relied upon as of
the date hereof.

 

52

 

We understand that this certification is required in connection with
certain tax legislation in the United States. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

 

Dated:                     19

[To be dated no earlier than the Exchange Date or the

relevant Interest Payment Date occurring prior to the

Exchange Date, as applicable]

 

 

	
   

  	
  [Morgan Guaranty Trust Company of

  New York, Brussels Office,] as

  Operator of the Euroclear System [Cedel S.A.]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  

 

53

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