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tbiagreement.htm

    Exhibit
      10.1

    

    

    

    

    

    

    

    

    

    AGREEMENT
      OF MERGER

    

    

    

    

    DATED
      AS OF NOVEMBER 27, 2007

    

    among

    

    

    PREMIER
      FINANCIAL BANCORP, INC.

    

    and

    

    TRADERS
      BANKSHARES, INC.

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    TABLE
      OF CONTENTS

    

    
      
        	 	 	Page
	Section 1.	 Merger	 
	 	 	 
	
                1.1

              	
                General
                  Effect of Merger; Assets

              	
                2

              
	
                1.2

              	
                Liabilities
                  of Surviving Company

              	
                2

              
	
                1.3

              	
                Name,
                  Directors and Officers of Surviving Company

              	
                2

              
	
                1.4

              	
                Offices,
                  Policies of Surviving Company

              	
                3

              
	
                1.5

              	
                Capital
                  Structure of Surviving Company

              	
                3

              
	
                1.6

              	
                Change
                  in Method of Effecting Acquisition

              	
                3

              
	 	 	 
	 	 	 
	 Section
                2.	 Conversion,
                Exchange and Cancellation of Shares	
                 

              
	 	 	 

      

      
        	
                2.1

              	
                General

              	
                4

              
	
                2.2

              	
                Stock
                  Consideration and Cash Consideration

              	
                4

              
	
                2.3

              	
                Manner
                  of Exchange

              	
                4

              
	
                2.4

              	
                Fractional
                  Shares

              	
                5

              
	
                2.5

              	
                Lost
                  Certificates

              	
                5

              

      

      
        	 	 	 
	 	 	 
	
                Section
                  3.

              	
                Representations,
                  Warrantis and Covenants of Premier

              	 
	 	 	 

      

      
        	
                3.1

              	
                Organization,
                  Standing and Authority

              	
                6

              
	
                3.2

              	
                Capital
                  Structure

              	
                6

              
	
                3.3

              	
                Premier
                  Subsidiaries

              	
                7

              
	
                3.4

              	
                Authority

              	
                8

              
	
                3.5

              	
                Premier
                  Financial Statements

              	
                8

              
	
                3.6

              	
                Allowance
                  for Possible Loan Losses

              	
                9

              
	
                3.7

              	
                Accuracy
                  of Annual Reports

              	
                9

              
	
                3.8

              	
                Absence
                  of Undisclosed Liabilities

              	
                9

              
	
                3.9

              	
                Tax
                  Matters

              	
                9

              
	
                3.10

              	
                Loans

              	
                10

              
	
                3.11

              	
                Properties

              	
                10

              
	
                3.12

              	
                Compliance
                  with Laws

              	
                10

              
	
                3.13

              	
                Employee
                  Benefit Plans

              	
                11

              
	
                3.14

              	
                Commitments
                  and Contracts

              	
                11

              
	
                3.15

              	
                Labor

              	
                12

              
	
                3.16

              	
                Material
                  Contracts Furnished

              	
                12

              
	
                3.17

              	
                Material
                  Contracts

              	
                12

              
	
                3.18

              	
                Material
                  Contract Defaults

              	
                12

              
	
                3.19

              	
                Legal
                  Proceedings

              	
                13

              
	
                3.20

              	
                Absence
                  of Certain Changes or Events

              	
                13

              
	
                3.21

              	
                Reports

              	
                13

              
	
                3.22

              	
                Investments

              	
                13

              

      

       

       

      
        
          
            
            

          

          
            ii

            
              

            

          

          Exhibit
            10.1 -
            continued

        

      

       

      

        
          	
                  3.23

                	
                  Securities
                    Portfolio

                	
                  13

                
	
                  3.24

                	
                  Environmental
                    Matters

                	
                  14

                
	
                  3.25

                	
                  Accuracy
                    of Proxy Statement

                	
                  14

                
	
                  3.26

                	
                  Interim
                    Bank Formation; Adoption Agreement

                	
                  14

                
	
                  3.27

                	
                  Filing
                    of Application to Merge

                	
                  14

                
	
                  3.28

                	
                  Best
                    Efforts

                	
                  14

                
	
                  3.29

                	
                  Conduct
                    of Business - Acquisitions

                	
                  15

                
	
                  3.30

                	
                  Conduct
                    of Business - Affirmative Covenants of Premier

                	
                  15

                

        

        
          	 	 	 
	 	 	 
	
                  Section
                    4.

                	
                  Representations,
                    Warranties and Covenants of Traders

                	 
	 	 	 
	
                  4.1

                	
                  Organization,
                    Standing and Authority

                	
                  16

                
	
                  4.2

                	
                  Capital
                    Structure

                	
                  16

                
	
                  4.3

                	
                  Subsidiary

                	
                  16

                
	
                  4.4

                	
                  Authority

                	
                  16

                
	
                  4.5

                	
                  Traders
                    Financial Statements

                	
                  17

                
	
                  4.6

                	
                  Accuracy
                    of Annual Reports

                	
                  17

                
	
                  4.7

                	
                  Allowance
                    for Possible Loan Losses

                	
                  17

                
	
                  4.8

                	
                  Absence
                    of Undisclosed Liabilities

                	
                  17

                
	
                  4.9

                	
                  Tax
                    Matters

                	
                  18

                
	
                  4.10

                	
                  Loans

                	
                  19

                
	
                  4.11

                	
                  Properties

                	
                  19

                
	
                  4.12

                	
                  Compliance
                    with Laws

                	
                  19

                
	
                  4.13

                	
                  Employee
                    Benefit Plans

                	
                  19

                
	
                  4.14

                	
                  Commitments
                    and Contracts

                	
                  20

                
	
                  4.15

                	
                  Labor

                	
                  21

                
	
                  4.16

                	
                  Material
                    Contracts Furnished

                	
                  21

                
	
                  4.17

                	
                  Material
                    Contracts

                	
                  21

                
	
                  4.18

                	
                  Material
                    Contract Defaults

                	
                  21

                
	
                  4.19

                	
                  Legal
                    Proceedings

                	
                  21

                
	
                  4.20

                	
                  Absence
                    of Certain Changes or Events

                	
                  22

                
	
                  4.21

                	
                  Reports

                	
                  22

                
	
                  4.22

                	
                  Accuracy
                    of Proxy Statement

                	
                  22

                
	
                  4.23

                	
                  Investments

                	
                  22

                
	
                  4.24

                	
                  Securities
                    Portfolio

                	
                  22

                
	
                  4.25

                	
                  Environmental
                    Matters

                	
                  22

                
	
                  4.26

                	
                  Best
                    Efforts

                	
                  23

                
	
                  4.27

                	
                  Conduct
                    of Business – Negative Covenants of Traders

                	
                  23

                
	
                  4.28

                	
                  Conduct
                    of Business – Affirmative Covenants of Traders

                	
                  24

                
	 4.29	CEO/CFO
                  Certification Checklist	26
	 4.30	Branch
                  Operations Certification	26
	 4.31	Termination
                  of "Trade-In Your Mortgage" Program	26

        

         

         

        
          
            
            

          

          
            iii

            
              

            

          

          Exhibit
            10.1 -
            continued

        

        
          	
                  Section
                    5.

                	
                  Indemnification
                    and Confidentiality

                	 
	 	 	 

        

        
          	
                  5.1

                	
                  Access
                    and Information

                	
                  27

                
	
                  5.2

                	
                  Furnishing
                    Information and Indemnification

                	
                  27

                
	
                  5.3

                	
                  Confidentiality

                	
                  28

                
	
                  5.4

                	
                  Updates
                    to Information

                	
                  28

                
	 	 	 
	 	 	 

        

        
          
            	
                    Section
                      6.

                  	
                    Conditions
                      Precedent

                  	 
	 	 	 

          

          
            	
                    (a)

                  	
                    Governmental
                      Approvals

                  	
                    29

                  
	
                    (b)

                  	
                    Shareholder
                      Approval

                  	
                    29

                  
	
                    (c)

                  	
                    Registration
                      Statement

                  	
                    29

                  
	
                    (d)

                  	
                    Affiliates

                  	
                    29

                  
	
                    (e)

                  	
                    No
                      Divestiture or Adverse Condition

                  	
                    30

                  
	
                    (f)

                  	
                    Accuracy
                      of Representations and Warranties; Performance of Obligations
                      and
                      Covenants - Premier

                  	
                    30

                  
	
                    (g)

                  	
                    Accuracy
                      of Representations and Warranties; Performance of Obligations
                      and
                      Covenants – Traders

                  	
                    30

                  
	
                    (h)

                  	
                    Opinion
                      of Counsel for Traders

                  	
                    30

                  
	
                    (i)

                  	
                    Opinion
                      of Counsel for Premier

                  	
                    32

                  
	
                    (j)

                  	
                    Less
                      than 20% Dissenters

                  	
                    33

                  
	
                    (k)

                  	
                    Tax
                      Ruling or Opinion Letter

                  	
                    34

                  
	
                    (l)

                  	
                    Absence
                      of Material Adverse Changes - Premier

                  	
                    34

                  
	
                    (m)

                  	
                    Absence
                      of Material Adverse Changes – Traders

                  	
                    34

                  
	(n)	Consent
                    of Lenders	34
	(o)	Financing	35
	(p)	No
                    Excess Parachute Payment	35
	(q)	Fairness
                    Opinion	35

          

          
            	 	 	 
	 	 	 
	
                    Section
                      7.

                  	
                    Closing
                      Date and Effective Time

                  	 
	 	 	 
	
                    7.1

                  	
                    Closing
                      Date

                  	
                    36

                  
	
                    7.2

                  	
                    Effective
                      Time

                  	
                    36

                  

          

          
            	 	 	 
	 	 	 
	
                    Section
                      8.

                  	
                    Termination
                      of Agreement

                  	 
	 	 	 
	
                    8.1

                  	
                    Grounds
                      for Termination

                  	
                    37

                  
	
                    8.2

                  	
                    Effect
                      of Termination

                  	
                    38

                  
	
                    8.3

                  	
                    Lost
                      Opportunity Costs

                  	
                    38

                  
	
                    8.4

                  	
                    Return
                      of Information

                  	
                    39

                  

          

          
            	 	 	 
	 	 	 
	
                    Section
                      9.

                  	
                    Waiver
                      and Amendment

                  	
                    40

                  
	 	 	 
	 	 	 
	
                    Section
                      10.

                  	
                    Meeting
                      of Shareholders of Traders

                  	
                    41

                  
	 	 	 
	 	 	 
	
                    Section
                      11.

                  	
                    Rights
                      of Dissenting Shareholders

                  	
                    42

                  
	 	 	 

          

           

          
            
              
              

            

            
              iv

              
                

              

            

            Exhibit
              10.1 -
              continued

          

          
            	
                    Section
                      12.

                  	
                    Indemnification

                  	 
	 	 	 
	
                    12.1

                  	
                    Indemnification

                  	
                    43

                  
	
                    12.2

                  	
                    Insurance

                  	
                    43

                  
	
                    12.3

                  	
                    Consolidation
                      or Merger

                  	
                    43

                  

          

          
            	
                    12.4

                  	
                    Survival

                  	
                    43

                  
	12.5	Regulatory Constraints 	43

          

          
            
              	 	 	 
	 	 	 
	
                      Section
                        13.

                    	
                      Operations
                        after the Closing Date

                    	 
	 	 	 
	13.1	Maintenance
                      of Existence	44
	
                      13.2

                    	
                      Employees
                        of Traders

                    	
                      44

                    
	
                      13.3

                    	
                      Severance

                    	
                      45

                    
	
                      13.4

                    	
                      Survival

                    	
                      46

                    

            

          

          
            
              	 	 	 
	 	 	 
	
                      Section
                        14.

                    	
                      Miscellaneous

                    	 
	 	 	 
	
                      14.1

                    	
                      Public
                        Announcements

                    	
                      46

                    
	
                      14.2

                    	
                      Brokers
                        and Finders

                    	
                      46

                    
	
                      14.3

                    	
                      Disclosed
                        In Writing

                    	
                      46

                    
	
                      14.4

                    	
                      Entire
                        Agreement

                    	
                      46

                    
	
                      14.5

                    	
                      Counterparts

                    	
                      46

                    
	
                      14.6

                    	
                      Invalid
                        Provisions

                    	
                      46

                    
	
                      14.7

                    	
                      Notices

                    	
                      46

                    
	
                      14.8

                    	
                      Headings

                    	
                      47

                    
	
                      14.9

                    	
                      Expenses

                    	
                      47

                    
	
                      14.10

                    	
                      Governing
                        Law

                    	
                      47

                    
	
                      14.11

                    	
                      No
                        Assignment

                    	
                      47

                    
	
                      14.12

                    	
                      Effectiveness
                        of Agreement

                    	
                      47

                    
	
                      14.13

                    	
                      Further
                        Acts

                    	
                      48

                    
	
                      14.14

                    	
                      Representations
                        and Warranties Not to Survive

                    	
                      48

                    
	
                      14.15

                    	
                      Individual
                        Directors

                    	
                      48

                    

            

             

          

        

      

    

    

    
      
        
        

      

      
        v

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    AGREEMENT
      OF MERGER

    

     

    THIS
      AGREEMENT OF MERGER (hereinafter
      sometimes referred to as the "Agreement”), made and entered into as of the
      27th day of
      November, 2007, by and between PREMIER FINANCIAL BANCORP INC. (“Premier”) and
      TRADERS BANKSHARES, INC. (“Traders”), and its directors, or a majority of
      them;

    

    W
      I T N E S S E T H:

     

    WHEREAS,
      Premier is a corporation duly
      organized and validly existing under the laws of the Commonwealth of Kentucky
      and a registered bank holding company, with its principal office and place
      of
      business located in the City of Huntington, County of Cabell and State of West
      Virginia, with authorized capital stock consisting of 10,000,000 common shares,
      no par value per share (“Premier Common Stock”), of which 5,237,899 shares are
      currently outstanding and 1,000,000 preferred shares, no par value per share,
      none of which are currently outstanding (“Premier Preferred Stock”);
      and

     

    WHEREAS,
      Traders is a corporation duly
      organized and validly existing under the laws of the State of West Virginia
      and
      a registered bank holding company, with its principal office and place of
      business located in Spencer, County of Roane, State of West Virginia, with
      authorized capital stock consisting of 360,000 common shares, par value $5.00
      (“Traders Common Stock”), of which 180,000 are currently outstanding;
      and

     

    WHEREAS,
      Premier and Traders have
      agreed to the merger of Traders with and into a wholly-owned subsidiary of
      Premier, to be organized under the laws of the State of West Virginia, so
      that upon consummation of the merger Traders will be a wholly-owned subsidiary
      of Premier; and

     

    WHEREAS,
      the Board of Directors of
      Premier has approved this agreement and has authorized the execution hereof
      in
      counterparts; and

     

    WHEREAS,
      the Board of Directors of
      Traders has approved this agreement, authorized the execution hereof in
      counterparts, and directed that it be submitted to its shareholders for
      approval, ratification and confirmation; and

     

    WHEREAS,
      Premier has agreed to cause a
      new West Virginia corporation to be organized which shall be named TBI
      Acquisition Company, or such other name as Premier may determine (“Interim
      Company”), with its principal office and place of business to be located in
      Spencer, County of Roane, State of West Virginia, and all shares of its capital
      stock to be owned by Premier; and

     

    WHEREAS,
      Premier has agreed to cause
      Interim Company to approve this Agreement and authorize the execution of an
      Adoption Agreement substantially in the form attached hereto as “Exhibit A”
which is incorporated herein by reference.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    NOW,
      THEREFORE, in consideration of the
      foregoing premises, which are not mere recitals but an integral part hereof,
      and
      in consideration of the mutual agreements hereinafter set forth, the parties
      hereto agree as follows:

    

    Section
      1.     Merger

     

    1.1           General
      Effect of Merger; Assets.  At the Effective Time (hereinafter
      defined in Section 7.2) and subject to the terms and conditions hereof and
      of
      the attendant Plan of Merger (“Plan of Merger”) attached hereto as “Exhibit B”,
      Traders shall merge with and into Interim Company (the “Merger”) under the
      charter of Interim Company pursuant to the provisions of and with the effect
      provided in the West Virginia Business Corporation Act, Chapter
      31D.  Interim Company shall be (and is hereinafter called when
      reference is made to it at and after the consummation of the Merger) the
“Surviving Company”.  At the Effective Time of the Merger, the
      corporate existence of Traders shall, as provided in the West Virginia Business
      Corporation Act, Chapter 31D, Article 11 of the West Virginia Code, be merged
      with and into Interim Company and continued in the Surviving Company and the
      separate existence of Traders shall cease.  The Surviving Company
      shall thereupon and thereafter possess all of the rights, privileges, immunities
      and franchises, of a public as well as of a private nature, of the Interim
      Company and Traders; and all property, real, personal and mixed, and all debts
      due on whatever account, including subscriptions to shares, if any, and all
      other choses in action, and all and every other interest of or belonging to
      or
      due to the Interim Company and Traders, and each of them, shall be deemed to
      be
      transferred to and vested in the Surviving Company without further act or deed;
      and the title to any real estate, or any interest therein, vested in the Interim
      Company and Traders and each of them, before the Merger, shall not revert or
      in
      any way be impaired by reason of the Merger.

     

    1.2           Liabilities
      of Surviving Company.  From and after the Effective Time of the
      Merger, the Surviving Company shall be liable for all liabilities of Traders
      and
      Interim Company and all deposits, debts, liabilities, obligations and contracts
      of Traders and Interim Company, respectively, matured or unmatured, whether
      accrued, absolute, contingent or otherwise, and whether or not reflected or
      reserved against on balance sheets, books of account or records of Traders
      or
      Interim Company, as the case may be, shall be those of and are hereby expressly
      assumed by the Surviving Company and shall not be released or impaired by the
      Merger, and all rights of creditors and other obligees and all liens on property
      of either Traders or Interim Company shall be preserved unimpaired, and the
      Surviving Company shall have all rights and shall be liable for all obligations
      of Traders under all employee benefit plans and arrangements of Traders and
      such
      plans and related trusts shall continue in effect without any interruption
      or
      termination unless and until changed as therein or by law provided or permitted
      or as mutually agreed to by the parties hereto.

     

    1.3           Name,
      Directors and Officers of Surviving Company.  From and after the
      Effective Time, the name of the Surviving Company shall be “Traders Bankshares,
      Inc.”.  The Articles of Incorporation and the By-laws of Interim
      Company in effect immediately prior to the Effective Time (which shall be
      substantially the same as the Articles of Incorporation and By-laws of Traders)
      shall be the Articles of Incorporation and By-laws of the Surviving Company
      until changed as therein or by law provided.  Until changed by the
      shareholder or Board of Directors of Surviving Company, as the case may be,
      the
      directors and officers of the Surviving Company at the Effective Time shall
      be
      those persons who are directors and officers respectively of Traders immediately
      before the Effective Time.  The committees of the Board of Directors
      of the Surviving Company at the Effective Time shall be the same as and shall
      be
      composed of the same persons who are serving on committees appointed by the
      Board of Directors of Traders as they exist immediately before the Effective
      Time.  The committees of officers of the Surviving Company at the
      Effective Time shall be the same as and shall be composed of the same officers
      who are serving on the committees of officers of Traders as they exist
      immediately before the Effective Time.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    1.4           Offices,
      Policies of Surviving Company.  Until changed by the Board of
      Directors of the Surviving Company, from and after the Effective Time, the
      business and location of the Surviving Company shall be the same as that of
      Traders.  Unless contrary to law, all corporate acts, plans, policies,
      applications, agreements, loan commitments, orders, registrations, licenses,
      approvals and authorizations of Traders and Interim Company, their respective
      shareholders, boards of directors, committees elected or appointed by their
      boards of directors, officers and agents, which were valid and effective
      immediately before the Effective Time shall be taken for all purposes at and
      after the Effective Time as the acts, plans, policies, applications, agreements,
      orders, registrations, licenses, approvals, and authorizations of Surviving
      Company and shall be effective and binding thereon as the same were with respect
      to Traders and Interim Company immediately before the Effective
      Time.

     

    1.5           Capital
      Structure of Surviving Company.  The capital structure of the
      Surviving Company shall be the same as the capital structure of Interim
      Company.

     

    1.6           Change
      in Method of Effecting Acquisition.  Premier may at any time prior
      to the Effective Time change the method of effecting the combination with
      Traders (including, without limitation, the provisions of this Section 1 if
      and
      to the extent it deems such change to be necessary, appropriate or desirable;
      however, that no such change shall (i) cause the approval of the stockholders
      of
      Premier to be required as a condition to the Merger, (ii) alter or change the
      amount or kind of Merger Consideration (as hereinafter defined), or the relative
      proportions of cash and Premier Common Stock included therein, (iii) adversely
      affect the tax treatment of Traders’ stockholders as a result of receiving the
      Merger Consideration or (iv) materially impede or delay consummation of the
      transactions contemplated by this Agreement; and provided further, that Premier
      shall provide Traders prior written notice of such change and the reasons
      therefore.

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      2.     Conversion, Exchange and Cancellation of
      Shares

     

    2.1           General.  The
      manner of converting and exchanging Traders Common Stock, all of which is
      represented by outstanding share certificates, into Premier Common Stock and
      cash shall be as hereinafter provided in this Section 2.

    

    2.2           Stock
      Consideration and Cash Consideration.

    

    (a)           Each
      holder of a share of Traders Common Stock (other than those shares of Traders
      Common Stock for which appraisal rights have been perfected pursuant to the
      West Virginia Business Corporation Act), shall receive in respect thereof,
      subject to the limitations set forth in this Agreement, (i) 3.75 shares of
      Premier Common Stock (the “Stock Consideration”) and (ii) $50.00 cash, without
      interest (the “Cash Consideration”).  The Cash Consideration and the
      Stock Consideration are sometimes referred to herein collectively as the “Merger
      Consideration.”

     

    (b)           Outstanding
      Premier Stock.  Each share of Premier Common Stock issued and
      outstanding immediately prior to the Effective Time shall remain issued and
      outstanding and unaffected by the Merger.

     

    (c)           Treasury
      Shares.  Each share of Traders Common Stock held as Treasury Stock
      immediately prior to the Effective Time shall be canceled and retired at the
      Effective Time and no consideration shall be issued in exchange
      therefore.

     

    (d)           Merger
      Sub.  Each share of capital stock of Interim Company issued and
      outstanding immediately prior to the Effective Time shall remain outstanding
      and
      unaffected by the Merger, and no consideration shall be issued in exchange
      therefor.

     

    2.3           Manner
      of Exchange.   After the Effective Time of the Merger, except
      for persons exercising their rights as dissenting shareholders of Traders,
      each
      holder of a certificate theretofore evidencing outstanding shares of Traders
      Common Stock, upon surrender of such certificate, accompanied by a Letter of
      Transmittal, to Premier shall be entitled to receive in exchange therefor a
      certificate or certificates representing the number of full shares of Premier
      Common Stock for which shares of Traders Common Stock theretofore represented
      by
      the certificate or certificates so surrendered shall have been exchanged as
      provided in this Section 2, plus cash as provided in Section 2.2(a), without
      interest.  Until so surrendered, each outstanding certificate which,
      prior to the Effective Time of the Merger, represented Traders Common Stock
      will
      be deemed to evidence the right to receive the Cash Consideration (without
      interest) plus the number of full shares of Premier Common Stock into which
      the
      shares of Traders Common Stock represented thereby may be converted, and will
      be
      deemed for all corporate purposes of Premier to evidence ownership of the number
      of full shares of Premier Common Stock and Cash Consideration into which the
      shares of Traders Common Stock represented thereby were
      converted.  Until such outstanding certificates formerly representing
      Traders Common Stock are surrendered, no dividend payable to holders of record
      of Premier Common Stock for any period as of any date subsequent to the
      Effective Time of the Merger shall be paid to the holder of such outstanding
      certificates in respect thereof and no interest will be paid on the Cash
      Consideration.  After the Effective Time of the Merger there shall be
      no further registry of transfers on the records of Traders of shares of Traders
      Common Stock.  Upon surrender of certificates of Traders Common Stock
      for exchange for Premier Common Stock, there shall be paid to the record holder
      of the certificates of Premier Common Stock issued in exchange therefor (i)
      the
      Cash Consideration, (ii) the amount of dividends theretofore paid with respect
      to such full shares of Premier Common Stock as of any date subsequent to the
      Effective Time of the Merger which have not yet been paid to a public official
      pursuant to abandoned property laws and (iii) at the appropriate payment date
      the amount of dividends with a record date after the Effective Time of the
      Merger, but prior to surrender and a payment date subsequent to
      surrender.  No interest shall be payable with respect to such
      dividends or Cash Consideration upon surrender of outstanding
      certificates.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    2.4           Fractional
      Shares.  Premier will not issue fractional shares or fractional
      share certificates, but in lieu of the issuance of fractional shares will pay
      cash, without interest, to any Traders shareholder otherwise entitled to receive
      such fractional shares.  The amount of such cash payment will be
      determined by multiplying the fractional share interest to which a Traders
      shareholder would otherwise be entitled by the volume-weighted average of the
      closing price of Premier Common Stock for the five trading days ending with
      the
      fifth business day before the Effective Time.  Payment for fractional
      shares will be made with respect to each shareholder at the time such
      shareholder’s certificates of Traders Common Stock are exchanged.

     

    2.5           Lost
      Certificates.  If a certificate evidencing outstanding shares of
      Traders Common Stock is lost, stolen or destroyed, the registered owner thereof
      shall be entitled to receive the Premier  certificate and cash,
      without interest, to which he would otherwise be entitled on exchange of such
      certificate, by notifying Premier in writing of such lost, stolen or destroyed
      certificate and giving Premier evidence of loss and a bond sufficient to
      indemnify Premier against any claim that may be made against it on account
      of
      the alleged lost, stolen and destroyed certificate and the issuance of the
      certificate and cash.

    
      
        
        

      

      
        5

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      3.                      Representations,
      Warranties and Covenants of Premier

    

    Except
      as disclosed in writing, Premier
      hereby represents and warrants to and covenants with Traders that:

     

    3.1           Organization,
      Standing and Authority.  Premier  is a corporation duly
      organized, validly existing and in good standing under the laws of the
      Commonwealth of Kentucky, and is a duly registered bank holding company under
      the provisions of the Bank Holding Company Act of 1956, as
      amended.  Premier has the corporate power to execute and deliver this
      Agreement, and has taken all action required by law, its Articles of
      Incorporation, its By-laws or otherwise, to authorize such execution and
      delivery, the Merger and the consummation of the transactions contemplated
      hereby, and this Agreement is a valid and binding agreement of Premier in
      accordance with its terms.  No action of Premier’s shareholders is or
      will be required to approve this Agreement or the Merger.  At the
      Effective Time, Premier will have corporate power to carry on its business
      as
      then to be conducted and will be qualified to do business in every jurisdiction
      in which the character and location of the assets to be owned by it or the
      nature of the business to be transacted by it require
      qualification.

     

    3.2           Capital
      Structure.  The authorized capital stock of Premier consists of
      10,000,000 shares of Premier Common Stock, of which 5,237,899 shares are
      currently issued and outstanding and 1,000,000 shares of Premier Preferred
      Stock, none of which are currently issued and outstanding.  All of
      such shares are fully paid and non-assessable.  Premier does not have
      any other shares of Premier Common Stock or Premier Preferred Stock or any
      other
      capital stock issued or outstanding.  Premier does not have any
      outstanding subscriptions, options or other agreements or commitments obligating
      it to issue shares of its capital stock except that (i) Premier has
      reserved 511,000 shares of Premier Common Stock to be issued upon the exercise
      of stock options granted to certain Premier employees and (ii) Premier has
      entered into or will enter into an Agreement of Merger with Citizens First
      Bank,
      Inc., a West Virginia state banking corporation (“Citizens First”) in which
      Premier intends to purchase each of Citizens First 400,000 shares of common
      stock for the following consideration: (x) 1.20 shares of Premier Common Stock
      and (y) an amount of cash, without interest, determined by taking the
      volume-weighted average of the closing price of Premier Common Stock for the
      five (5) trading days ending with the fifth business day before the effective
      time of Premier/Citizens First merger multiplied by 1.20 and subtracting that
      sum from $29.25.  In no event, however, shall the cash to be paid per
      share of Citizens First exceed $13.25.

     

    As
      of September 30, 2007 152,417 option grants for Premier Common Stock were
      outstanding, of which 85,764 were immediately exercisable.  Neither
      the holders of Premier Common Stock or Premier Preferred Stock have any
      preemptive rights with respect to the issuance of additional authorized shares
      of Premier Common Stock.  Nothing in this Agreement shall prohibit or
      impair the ability and right of Premier to increase its authorized capital
      stock, or issue or agree to commit to issue additional shares of its capital
      stock, and any increase in authorized capital stock, or issuance, or agreement
      or commitment to issue, additional shares of Premier Common Stock (other than
      an
      issuance, or agreement or commitment to issue, resulting from a stock dividend,
      stock split, or reverse stock split) shall not alter or affect the Merger
      Consideration set forth in Section 2.2 hereof.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    3.3           Premier
      Subsidiaries.  At the date of this Agreement, Premier has five (5)
      state bank subsidiaries, and one (1) non-banking/non-holding company subsidiary,
      as follows:

    

    (a)        Premier
      State Banks:

    

    Citizens
      Deposit Bank and Trust,
      Inc.;

    Farmers
      Deposit Bank, Eminence,
      Kentucky;

    Ohio
      River Bank, Inc.;

    First
      Central Bank, Inc.;
      and

    Boone
      County Bank, Inc.

    

    hereinafter
      referred to as “Premier State Banks”.

    

    (b)        Premier
      has one (1) non-bank/non-bank holding company subsidiary:

    

    Mt.
      Vernon Financial Holdings,
      Inc.

    

    hereinafter
      referred to as the “Premier Non-Bank Subsidiary”.

    

    The
      Premier State Banks and Premier
      Non-Bank Subsidiary are hereinafter jointly referred to as the “Premier
      Subsidiaries”.

    

    Except
      for the Premier State Banks and
      Premier Non-Bank Subsidiary, Premier has no subsidiaries.

     

    Each
      of the Premier State Banks is a
      banking corporation, duly organized, validly existing under the laws of either
      the State of West Virginia or Ohio, or the Commonwealth of Kentucky, and has
      the
      corporate power and is duly authorized to own all of its properties and assets
      and to carry on its business as is now being conducted.  The Premier
      Non-Bank Subsidiary is a corporation, validly existing under the laws of the
      Commonwealth of Kentucky, and has the corporate power and is duly authorized
      to
      own all of its properties and assets and to carry on its business as is now
      being conducted.  Premier owns all of the issued and outstanding
      capital stock of each of the Premier Subsidiaries, free and clear of any liens,
      claims, security interest, encumbrances, charges or rights of third parties
      of
      any kind whatsoever, except that (i) all Premier’s 100% interest in Boone County
      Bank is pledged as collateral for a $7,000,000 loan from First Guaranty Bank
      of
      Hammond, Louisiana and (ii) all of Premier’s 100% interest in Farmers Deposit
      Bank and Citizens Deposit Bank are pledged as collateral for a $6,500,000 loan
      and a $3,500,000 line of credit from The Bankers’ Bank of Kentucky, Inc. of
      Frankfort, Kentucky.

     

    As
      stated above, Premier has previously
      entered into or intends to enter into an agreement to acquire Citizens
      First.  Citizens First is a state banking corporation duly organized,
      validly existing and in good standing under the laws of West
      Virginia.  The authorized capital stock of Citizens First Bank
      consists of 750,000 shares of common stock, of which 400,000 shares are issued
      and outstanding.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    Nothing
      in this Agreement shall prohibit or impair the ability and right of Premier
      or
      any Premier Subsidiary to create or acquire, or agree to create or acquire,
      any
      other subsidiaries or entities or to acquire, consolidate or merge with any
      other company, corporation, bank or banking association, or to acquire or
      establish any branch prior to the Effective Time.

     

    3.4           Authority.  The
      execution and delivery of this Agreement do not, and the consummation of the
      Merger and transactions contemplated hereby will not, violate any provision
      of
      the Articles of Incorporation or By-laws of Premier, or any provision of, or
      result in the acceleration of any obligation under, any material mortgage,
      deed
      of trust, note, lien, lease, franchise, license, permit, agreement, instrument,
      order, arbitration award, judgment, injunction or decree, or result in the
      termination of any material license, franchise, lease, or permit to which
      Premier is a party or by which it is bound, and will not violate or conflict
      with any other material restriction of any kind or character to which Premier
      is
      subject.

     

    3.5           Premier
      Financial Statements.  Premier has delivered to Traders prior to
      the execution of this Agreement copies of the following financial statements
      of
      Premier (which, together with all future financial statements to be furnished
      are collectively referred to herein as the “Premier Financial Statements”): the
      audited Consolidated Balance Sheets of Premier as of December 31, 2006, December
      31, 2005 and December 31, 2004, and the related Consolidated Statements of
      Income, Consolidated Statements of Cash Flows and of Consolidated Statements
      of
      Changes in Shareholders’ Equity for the years then ended, and the notes
      thereto.  The Premier Financial Statements (as of the dates thereof
      and for the periods covered thereby):

     

    (a)           are
      in accordance with the books and records of Premier, which are complete and
      correct in all material respects that are required by generally accepted
      accounting principles (except as otherwise required or approved by applicable
      regulatory authorities or by applicable law) and which have been maintained
      in
      accordance with good business practices; and

     

    (b)           present
      fairly, in all material respects, the financial position and results of
      operations and cash flows of Premier as of the dates and for the periods
      indicated, in accordance with generally accepted accounting principles (except
      as otherwise required or approved by applicable regulatory authorities or by
      applicable law), applied on a basis consistent with prior years, and do not
      fail
      to disclose any material extraordinary or out-of-period items.

     

    Premier’s
      unaudited Balance Sheet and
      the related unaudited Statement of Income and Statement of Changes in Cash
      Flows, for the calendar quarter ended September 30, 2007, and for each calendar
      quarter thereafter until the Effective Time, all of which Premier shall deliver
      to Traders as soon as practicable, will be prepared in accordance with
      accounting principals consistently applied and will fairly present Premier’s
      financial condition and results of operations as of such date and for such
      period, except for footnote disclosures, which generally do not include all
      of
      the disclosures normally required for annual financial statements.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    3.6           Allowance
      for Possible Loan Losses.  The allowance for possible loan losses
      shown on the Consolidated Balance Sheet of Premier as of December 31, 2006, and
      September 30, 2007, has been established and is adequate in all material
      respects under the requirements of generally accepted accounting principles
      to
      provide for possible losses, net of recoveries relating to loans previously
      charged off, on loans outstanding (including accrued interest receivable) as
      of
      December 31, 2006.

     

    3.7           Accuracy
      of Annual Reports.  The annual report of Premier to its
      shareholders for the years 2006, 2005 and 2004 heretofore delivered to Traders
      do not contain as of the dates thereof any untrue statement of material fact
      or
      omit to state any material fact necessary to make the statements therein not
      misleading.

     

    3.8           Absence
      of Undisclosed Liabilities.  At December 31, 2006, and September
      30, 2007, none of Premier or the Premier Subsidiaries had any obligation or
      liability (contingent or otherwise) which was material, or which when combined
      with all similar obligations or liabilities would have been material, to Premier
      (i) except as disclosed in the Premier Financial Statements or as disclosed
      to
      Traders in writing and (ii) except, in the case of any of the Premier Banks,
      for
      unfunded loan commitments made in the ordinary course of their respective
      businesses and consistent with generally accepted banking practices; nor does
      there exist a set of circumstances resulting from transactions effected or
      events occurring on or prior to December 31, 2006, or from any action omitted
      to
      be taken during such period that, to the knowledge of Premier, could reasonably
      be expected to result in any such material obligation or liability, except
      as
      previously disclosed to Traders in writing, or as disclosed or provided for
      in
      the Premier Financial Statements.  The amounts set up as liabilities
      for taxes in the Premier Financial Statements are sufficient for the payment
      of
      all respective taxes (including, without limitation, federal, state, local
      and
      foreign excise, franchise, property, payroll, income, capital stock and sales
      and use taxes) accrued in accordance with generally accepted accounting
      principles and unpaid at December 31, 2006.  Since December 31, 2006,
      none of Premier or the Premier Subsidiaries has incurred or paid any obligation
      or liability which would be material (on a consolidated basis) to Premier,
      except for obligations incurred or paid in connection with transactions by
      it in
      the ordinary course of its business consistent with generally accepted banking
      practices and except as disclosed herein.

     

    3.9           Tax
      Matters.

     

    (a)           All
      federal, state, local and foreign tax returns, (including, without limitation,
      estimated tax returns, withholding tax returns with respect to employees, and
      FICA and FUTA returns) required to be filed by or on behalf of any of Premier
      or
      the Premier Subsidiaries have been timely filed or requests for extensions
      have
      been timely filed, granted and have not expired and all returns filed are
      complete and accurate to the best information and belief of Premier
      management.  All taxes shown on filed returns have been
      paid.  As of the date hereof, and as of the Effective Time, there is
      no audit examination, deficiency or refund litigation or matter in controversy
      with respect to any taxes that might result in a determination adverse to any
      of
      Premier or the Premier Subsidiaries, except as reserved against in the Premier
      Financial Statements, or as previously disclosed to Traders in
      writing.  Except as disclosed by Premier in writing, all taxes,
      interest, additions and penalties due with respect to completed and settled
      examinations or concluded litigation have been paid.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (b)           None
      of Premier or the Premier Subsidiaries has executed an extension or waiver
      of
      any statute of limitations on the assessment or collection of any tax due that
      is currently in effect.

     

    (c)           To
      the extent any federal, state, local or foreign taxes are due from any of
      Premier or the Premier Subsidiaries for the period or periods beginning January
      1, 2007, or thereafter through and including the Effective Time, adequate
      provision on an estimated basis has been or will be made for the payment of
      such
      taxes by establishment of appropriate tax liability accounts on the last monthly
      financial statements of Premier or the Premier Subsidiaries prepared before
      the
      Effective Time.

     

    (d)           Deferred
      taxes of Premier or the Premier Subsidiaries have been provided for in
      accordance with generally accepted accounting principles.

     

    3.10           Loans.  Except
      as previously disclosed to Traders in writing or as disclosed or provided for
      in
      the Premier Financial Statements, to the best knowledge and belief of its
      management, each loan reflected as an asset of any Premier Bank in the Premier
      Financial Statements as of December 31, 2006, or acquired since that date,
      is
      the legal, valid and binding obligation of the obligor named therein,
      enforceable in accordance with its terms, was made in the ordinary course of
      business, was not known to be uncollectible at the time it was made and was
      made
      in accordance with the standard loan policies of such lending bank, and no
      loan
      having an unpaid balance (principal and accrued interest) in excess of
      $500,000.00 is subject to any asserted defense, offset or counterclaim known
      to
      Premier.

     

    3.11           Properties.  Except
      as previously disclosed to Traders in writing, or disclosed in the Premier
      Financial Statements, Premier and the Premier Subsidiaries have good and
      marketable title, free and clear of all material liens, encumbrances, charges,
      defaults or equities of whatever character, to all of the respective properties
      and assets, tangible or intangible, whether real, personal or mixed, reflected
      in the Premier Financial Statements as being owned by them at December 31,
      2006
      or acquired by them after December 31, 2006.  To the best knowledge
      and belief of Premier management, all buildings, and all fixtures, equipment
      and
      other property and assets which in the opinion of management are material to
      its
      business on a consolidated basis, held under leases or subleases by any of
      Premier and the Premier Subsidiaries, as the case may be, are held under valid
      instruments enforceable in accordance with their respective terms (except as
      previously disclosed in writing to Traders and except as enforceability may
      be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium or
      other similar laws affecting the enforcement of creditors’ rights generally and
      except that the availability of the equitable remedy of specific performance
      or
      injunctive relief is subject to the discretion of the court before which any
      proceedings may be brought).

     

    3.12           Compliance
      with Laws.  Premier and each of the respective Premier
      Subsidiaries, to Premier’s best knowledge and belief:

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (a)           is
      in compliance with all laws, regulations, reporting and licensing requirements
      and orders applicable to its business or any of its employees (because of such
      employee’s activities on behalf of it), the breach or violation of which could
      have a material adverse effect on such business; and

     

    (b)           has
      received no notification (not previously disclosed to Traders in writing) from
      any agency or department of federal, state or local government or regulatory
      authorities or the staff thereof asserting that any such entity is not in
      compliance with any of the statutes, regulations, rules or ordinances which
      such
      governmental authority or regulatory authority enforces, or threatening to
      revoke any license, franchise, permit or governmental authorization, and is
      subject to no agreement with any regulatory authorities with respect to its
      assets or business.

    

    3.13           Employee
      Benefit Plans.  With respect to any plan or arrangement of Premier
      or any Premier Subsidiary which constitutes an employee benefit within the
      meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974,
      as amended (“ERISA”):

     

    (a)           All
      “employee benefit plans”, as defined in Section 3(3) of ERISA, which cover one
      or more employees employed by any of Premier or any Premier Subsidiary (each
      individually, a “Plan”, and collectively, the “Plans”) comply in all material
      respects with ERISA and, where applicable for tax-qualified or tax-favored
      treatment, with the Internal Revenue Code of 1986.  As of December 31,
      2006, none of Premier or any Premier Subsidiary had any material liability
      under
      any Plan that is not reflected on the audited statements of financial condition
      of Premier or the unaudited balance sheets of the Premier Subsidiaries, as
      of
      such date, or in the notes thereto (other than such normally unrecorded
      liabilities under the Plans for sick leave, holiday, education, bonus, vacation,
      incentive compensation and anniversary awards, provided that such liabilities
      are not in any event material).  Neither the Plans nor any trustee or
      administrator thereof has engaged in a “prohibited transaction” within the
      meaning of Section 406 of ERISA or, where applicable, Section 4975 of the
      Internal Revenue Code of 1986 for which no exemption is applicable, nor have
      there been any “reportable events” within the meaning of Section 4043 of ERISA
      for which the 30-day notice therefor has not been waived.

     

    (b)           No
      litigation is pending against any Plan or plan fiduciary seeking the payment
      of
      benefits or alleging a breach of trust or fiduciary duty by any plan
      fiduciary.

     

    (c)           Neither
      Premier nor any Premier Subsidiary is a party to any multiemployer pension
      plan
      as defined in Section 414(f) of the Internal Revenue Code of 1986 and Section
      3(37) of ERISA.

     

    3.14           Commitments
      and Contracts.   Neither Premier nor any Premier Subsidiary
      is a party or subject to any of the following (whether written or oral, express
      or implied):

     

     (i)           any
      employment contract or understanding (including any understandings or
      obligations with respect to severance or termination pay liabilities or fringe
      benefits) with any present or former officer, director, employee or
      consultant;

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (ii)           any
      plan, contract or understanding providing for bonuses, pensions, options,
      deferred compensation, retirement payments, profit sharing or similar
      understandings with respect to any present or former officer, director or
      consultant;

    

               (iii)           any
      contract or agreement with any labor union;

     

    (iv)           any
      contract not made in the ordinary course of business containing covenants
      limiting the freedom of Premier or any Premier Subsidiary to compete in any
      line
      of business or with any person or involving any restriction of the area in
      which, or method by which, Premier or any Premier Subsidiary will carry on
      its
      business (other than as may be required by law or applicable regulatory
      authorities).

     

    3.15           Labor.   No
      work stoppage involving Premier or any Premier Subsidiary is pending or, to
      the
      best Premier’s knowledge, threatened.  Neither Premier nor any Premier
      Subsidiary is involved in, or threatened with or affected by, any labor dispute,
      arbitration, lawsuit or administrative proceeding which could materially and
      adversely affect the business of Premier or any Premier
      Subsidiary.  Employees of Premier or any Premier Subsidiary are not
      represented by any labor union nor are any collective bargaining agreements
      otherwise in effect with respect to such employees.

     

    3.16           Material
      Contracts Furnished.  Premier has made available to Traders true
      and complete copies of all material contracts, leases and other agreements
      to
      which Premier or any Premier Subsidiary are parties or by which they are bound
      and of all employment, pension, retirement, stock option, profit sharing and
      deferred compensation, consultant, bonus, group insurance or similar plans
      with
      respect to any of the directors, officers, or other employees of Premier or
      any
      Premier Subsidiary.

     

    3.17           Material
      Contracts.  Except as previously disclosed to Traders in writing
      and except as is otherwise provided in this Agreement, none of Premier or the
      Premier Subsidiaries, nor any of their respective assets, businesses or
      operations is, as of the date hereof, a party to, or is bound or affected by,
      or
      receives benefits under, (i) any material agreement, arrangement or commitment
      not cancellable by it without penalty, other than agreements, arrangements
      or
      commitments entered into in the ordinary course of its business and negotiated
      on an arms-length basis, or (ii) any material agreement, arrangement or
      commitment relating to the employment, election or retention in office of any
      director or officer other than agreements, arrangements or commitments entered
      into in the ordinary course of its business and negotiated on an arms-length
      basis.

     

    3.18           Material
      Contract Defaults.  None of Premier or the Premier Subsidiaries is
      in default in any material respect under any material contract, agreement,
      commitment, arrangement, lease, insurance policy or other instrument to which
      it
      is a party or by which its respective assets, business or operations may be
      bound or affected or under which it or its respective assets, business or
      operations receive benefits, and there has not occurred any event which with
      the
      lapse of time or the giving of notice or both would constitute such a default,
      except as previously disclosed to Traders in writing.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    3.19           Legal
      Proceedings.  Except as previously disclosed by Premier to Traders
      in writing, there are no actions, suits or proceedings instituted or pending,
      or
      to the best knowledge of Premier, threatened (or unasserted but considered
      probable of assertion and which if asserted would have at least a reasonable
      probability of an unfavorable outcome), including eminent domain proceedings,
      against or relating to any of Premier or the Premier Subsidiaries, respectively,
      or against any property, asset, interest or right of any of them, that could
      have a material and adverse effect on the condition (financial or other, present
      or prospective), business, properties, assets, operations, liabilities or
      prospects of Premier or any of the Premier Subsidiaries, respectively, or that
      threaten or would impede the consummation of the transactions contemplated
      by
      this Agreement.  None of Premier or the Premier Subsidiaries is a
      party to any agreement or instrument or is subject to any charter or other
      corporate restriction or any judgment, order, writ, injunction, stay, decree,
      rule, regulation, code or ordinance that threatens or might impede the
      consummation of the transactions contemplated by this Agreement.

     

    3.20           Absence
      of Certain Changes or Events.  Since December 31, 2006, none of
      Premier or the Premier Subsidiaries has:  (i) incurred any material
      liability, except in the ordinary course of its business, and except as
      permitted pursuant to this Agreement; (ii) suffered any material adverse change
      in its business, operations, assets or condition (financial or other); or (iii)
      failed to operate its business consistent with generally acceptable banking
      practice.

     

    3.21           Reports.  Since
      January 1, 2006, each of Premier and the Premier Subsidiaries has filed all
      reports and statements, together with any amendments required to be made with
      respect thereto, which they were required to file with:  (i) the
      Securities and Exchange Commission, including, but not limited to, Forms 10-K,
      Forms 10-Q, Forms 8-K and proxy statements; (ii) the Board of Governors of the
      Federal Reserve System; (iii) the Office of the Comptroller of the Currency;
      (iv) the Federal Deposit Insurance Corporation; (v) the West Virginia Department
      of Banking; (vi) the Kentucky Office of Financial Institutions; (vii) the Ohio
      Department of Banking; and (viii) any other governmental agency or regulatory
      authority having jurisdiction over its operations.  Each of such
      reports and documents, including the financial statements, exhibits and
      schedules thereto, and each other document delivered to Traders by Premier
      does
      not contain any statement which, at the time and in the light of the
      circumstances under which it was made, is false or misleading with respect
      to
      any material fact or which omits to state any material fact necessary in order
      to make the statements contained therein not false or misleading.

     

    3.22           Investments.   Except
      as incurred in the ordinary course of business as heretofore conducted or as
      previously disclosed to Traders in writing, all securities owned by Premier
      and
      the Premier Subsidiaries of record and beneficially are free and clear of all
      mortgages, liens, pledges and encumbrances.  Any securities owned of
      record by Premier and the Premier Subsidiaries in an amount equal to 5% or
      more
      of the issued and outstanding voting securities of the issuer have been
      previously disclosed to Traders in writing.  There are no voting
      trusts or other agreements or undertakings with respect to the voting of such
      securities.

     

    3.23           Securities
      Portfolio.    Since December 31, 2006, there have been
      no significant changes in the quality of Premier’s or any of the Premier Banks’
portfolios of securities except as previously disclosed to Traders in
      writing.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    3.24           Environmental
      Matters.  To the knowledge of Premier, neither Premier nor any
      Premier Subsidiary nor any properties owned or operated by Premier or any
      Premier Subsidiary has been or is in violation of or liable under any
      Environmental Law (as hereinafter defined).  There are no actions,
      suits or proceedings, or demands, claims, notices or investigations (including,
      without limitation notices, demand letters or requests for information from
      any
      environmental agency) instituted or pending, or to the best knowledge of
      Premier’s management, threatened relating to the liability of any properties
      owned or operated by Premier or any Premier Subsidiary under any Environmental
      Law.  “Environmental Law” means any federal, state, local or foreign
      law, statute, ordinance, rule, regulation, code, license, permit, authorization,
      approval, consent, order, judgment, decree, injunction or agreement with any
      regulatory authority relating to (i) the protection, preservation or restoration
      of the environment (including, without limitation, air, water vapor, surface
      water, ground water, drinking water supply, surface soil, sub-surface soil,
      plant and animal life or any other natural resource) and/or (ii) the use,
      storage, recycling, treatment, generation, transportation, processing, handling,
      labeling, production, release or disposal of any substance presently listed,
      defined, designated or classified as hazardous, toxic, radioactive or dangerous,
      or otherwise regulated, whether by type or by quantity, including any material
      containing any such substance as a component.

     

    3.25           Accuracy
      of Proxy Statement.  The material which refers to Premier and
      which will be submitted by Premier for inclusion in the proxy statement referred
      to in Section 10 hereof, or in any amendment or supplement thereto, mailed
      to
      the holders of Traders Common Stock will not contain any untrue statements
      of
      material fact or omit to state any material fact required to be stated therein
      or necessary to make the statements contained therein not
      misleading.

     

    3.26           Interim
      Company Formation; Adoption Agreement.  Premier at its sole cost
      and expense shall cause to be organized Interim Company as a West Virginia
      corporation and shall cause Interim Company to execute and enter into an
      Adoption Agreement in substantially the form attached hereto as “Exhibit A” and
      a Plan of Merger in substantially the form annexed hereto as “Exhibit B” and
      cause Interim Company to take such action as is provided in this Agreement
      or in
      said Adoption Agreement or Plan of Merger upon Interim Company’s part to be
      taken.  Immediately prior to the Effective Time, Premier will own all
      of the issued and outstanding shares of Interim Company’s capital
      stock.

     

    3.27           Filing
      of Application to Merge.  Premier at its sole cost and expense
      shall cause to be filed with the Federal Reserve Board, Federal Deposit
      Insurance Corporation, West Virginia Board of Banking and Financial Institutions
      and the Kentucky Office of Financial Institutions an application to merge
      Traders and Interim Company, and shall cause Interim Company to take such action
      as is provided in this Agreement upon Interim Company’s part to be
      taken.

     

    3.28           Best
      Efforts.  On or prior to the Closing Date (hereinafter defined in
      Section 7.1 hereof), Premier will, to the extent permitted by applicable laws,
      rules and regulations, take such actions, and execute and deliver all such
      agreements, documents, certificates or amendments to this Agreement as may
      be
      necessary or desirable to effectuate the provisions and intent of this
      Agreement.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    3.29           Conduct
      of Business - Acquisitions.  Premier and Traders have agreed in
      principle that continued growth of Premier through the acquisition of, or
      consolidation or merger with, one or more banks or bank holding companies,
      and
      the payment of cash, the issuance of additional shares of Premier, or both,
      as
      consideration therefor, all upon proper terms and conditions, will inure to
      the
      benefit of Premier and to Traders in the event the Merger is
      effected.  Traders has agreed that in the event the Merger is
      effected, such contemplated actions will inure to the benefit of Traders as
      well
      as to Premier, and has generally approved, in principle, such acts. Traders
      hereby consents to, and agrees that Premier, without obtaining any further
      consent or approval of Traders, may acquire, consolidate or merge with any
      other
      company, corporation, bank or banking association, or acquire any assets of
      any
      other company, corporation, bank or banking association, and no agreement to
      issue Premier Common Stock or issuance thereof in connection with any such
      act
      shall alter or affect the Merger Consideration set forth in Section 2.2
      hereof.

    

    3.30           Conduct
      of Business - Affirmative Covenants of Premier.  Premier covenants
      and agrees that:

     

    (a)           Subsequent
      to the date of this Agreement and prior to the Effective Time, Premier and
      the
      Premier Subsidiaries will operate their respective businesses only in the normal
      course and manner.

     

    (b)           Immediately
      upon the execution of this Agreement, Premier will direct its accountants to
      give Traders access to all information, documents and working papers pertaining
      to Premier;

     

    (c)           From
      and after the execution of this Agreement, Premier will promptly advise Traders
      of any material adverse change in its or any Premier Subsidiary’s respective
      financial conditions, assets, business operations or key personnel and of any
      material breach of any representation or warranty made by Premier in this
      Agreement;

     

    (d)           Subsequent
      to the date of this Agreement and prior to the Effective Time Premier shall
      maintain in full force and effect adequate fire, casualty, public liability,
      employee fidelity and other insurance coverage in effect on the date of this
      Agreement in order to protect Premier against losses for which insurance
      protection can reasonably be obtained;

     

    (e)           Premier
      will use its best efforts in good faith to take or cause to be taken all actions
      required under this Agreement on its part to be taken as promptly as practicable
      so as to permit the consummation of the Merger and the transactions contemplated
      hereby at the earliest possible date and cooperate fully with Traders to that
      end.

     

     

    
      
         

      

      
        15

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

    

     

    Section
      4.     Representations, Warranties and Covenants
      of Traders.

    

    Traders
      hereby represents and warrants
      to and covenants with Premier that:

    

    4.1           Organization,
      Standing and Authority.  Traders is a corporation duly organized,
      validly existing and in good standing under the laws of the State of West
      Virginia, and is a duly registered, and is a duly registered bank holding
      company under the provisions of the Bank Holding Company Act of 1956, as
      amended.  Traders has the corporate power to execute and deliver this
      Agreement, and has taken all action required by law, its Articles of
      Incorporation, its By-laws or otherwise, to authorize such execution and
      delivery, the Merger and the consummation of the transactions contemplated
      hereby, and this Agreement is a valid and binding agreement of Traders in
      accordance with its terms, subject only to the requirement of ratification,
      confirmation and approval by Traders’ shareholders.  At the Effective
      Time, Traders and its subsidiary bank will have corporate power to carry on
      its
      business as then to be conducted and will be qualified to do business in every
      jurisdiction in which the character and location of the assets to be owned
      by it
      or the nature of the business to be transacted by it require
      qualification.

     

    4.2           Capital
      Structure.  The authorized capital stock of Traders consists of
      360,000 shares of Traders Common Stock, par value of $5.00 per share, of which
      180,000 shares are issued and outstanding.  Traders does not have any
      subscriptions, options, warrants, calls, or other agreements or commitments,
      of
      any kind relating to or obligating it to issue any shares of its capital
      stock.  Further, there are no securities outstanding which are
      convertible into capital stock of Traders.  None of the shares of
      Traders Common Stock has been issued in violation of any preemptive rights
      of
      shareholders.

     

    4.3           Subsidiary.  Traders
      has one subsidiary:  Traders Bank, Inc. (hereinafter the “Traders’
Subsidiary Bank”).  Traders will not organize or acquire any other
      subsidiaries prior to the Effective Time of the Merger without the written
      consent of the President of Premier.

     

    The
      Traders’ Subsidiary Bank is a
      banking corporation, duly organized, validly existing under the laws of the
      State of West Virginia, and has the corporate power and is duly authorized
      to
      own all of its properties and assets and to carry on its business as is now
      being conducted.  Traders owns all of the issued and outstanding
      capital stock of the Traders’ Subsidiary Bank, free and clear of any liens,
      claims, security interest, encumbrances, charges or rights of third parties
      of
      any kind whatsoever.

     

    4.4           Authority.  The
      execution and delivery of this Agreement do not, and the consummation of the
      Merger and transactions contemplated hereby will not, violate any provision
      of
      the Articles of Incorporation or By-laws of Traders, or any provision of, or
      result in the acceleration of any obligation under, any material mortgage,
      deed
      of trust, note, lien, lease, franchise, license, permit, agreement, instrument,
      order, arbitration award, judgment, injunction or decree, or result in the
      termination of any material license, franchise, lease, or permit to which
      Traders is a party or by which it is bound, and will not violate or conflict
      with any other material restriction of any kind or character to which Traders
      is
      subject.

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    4.5           Traders
      Financial Statements.  Traders has delivered to Premier prior to
      the execution of this Agreement copies of the following financial statements
      of
      Traders (which, together with all future financial statements to be furnished
      are collectively referred to herein as the “Traders Financial
      Statements”):  the audited Consolidated Balance Sheets of Traders as
      of December 31, 2006, December 31, 2005 and December 31, 2004, and the related
      Consolidated Statements of Income, Consolidated Statements of Cash Flows and
      Consolidated Statements of Changes in Shareholders’ Equity for the years then
      ended, and the notes thereto.  The Traders Financial Statements (as of
      the dates thereof and for the periods covered thereby):

     

    (a)           are
      in accordance with the books and records of Traders, which are complete and
      correct in all material respects that are required by generally accepted
      accounting principles (except as otherwise required or approved by applicable
      regulatory authorities or by applicable law) and which have been maintained
      in
      accordance with good business practice; and

     

    (b)           present
      fairly the financial position and results of operations and cash flows of
      Traders as of the dates and for the periods indicated, in accordance with
      generally accepted accounting principles (except as otherwise required or
      approved by applicable regulatory authorities or by applicable law), applied
      on
      a basis consistent with prior years, and do not fail to disclose any material
      extraordinary or out-of-period items.

     

    Traders’
unaudited
      Consolidated Balance
      Sheet and the related unaudited Consolidated Statement of Income and
      Consolidated Statement of Changes in Shareholders’ Equity, for the calendar
      quarter ending September 30, 2007, and for each calendar quarter thereafter
      until the Effective Time, all of which Traders shall deliver to Premier as
      soon
      as practicable, will be prepared in accordance with accounting principles
      consistently applied and will fairly present Traders’ financial condition and
      results of operations as of such date and for such period, except for footnote
      disclosures, which generally do not include all of the disclosures normally
      required for annual financial statements.

     

    4.6           Accuracy
      of Annual Reports.  Traders’ annual reports to its shareholders
      for the years 2006 and 2005 heretofore delivered to Premier do not contain
      as of
      the dates thereof any untrue statement of material fact or omit to state any
      material fact necessary to make the statements therein not
      misleading.

     

    4.7           Allowance
      for Possible Loan Losses.  The allowances for possible loan losses
      shown on the Consolidated Balance Sheet of Traders and Traders Subsidiary Bank
      as of December 31, 2006 and September 30, 2007, have been established and are
      adequate in all material respects under the requirements of generally accepted
      accounting principles to provide for possible losses, net of recoveries relating
      to loans previously charged off, on loans outstanding (including accrued
      interest receivable) as of December 31, 2006 and September 30, 2007,
      respectively.

     

    4.8           Absence
      of Undisclosed Liabilities.  At December 31, 2006 and
      September 30, 2007, neither Traders nor the Traders’ Bank Subsidiary
      had any obligation or liability (contingent or otherwise) which was material,
      or
      which when combined with all similar obligations or liabilities would have
      been
      material, to Traders (i) except as disclosed in the Traders Financial Statements
      or as previously disclosed to Premier in writing; and (ii) except, in the case
      of Traders’ Subsidiary Bank any unfunded loan commitments made in the ordinary
      course of its business and consistent with generally accepted banking practices;
      nor does there exist a set of circumstances resulting from transactions effected
      or events occurring on or prior to December 31, 2006, or from any action omitted
      to be taken during such period that, to the knowledge of Traders, could
      reasonably be expected to result in any such material obligation or liability,
      except as previously disclosed to Premier in writing, or as disclosed or
      provided for in the Traders Financial Statements.  The amounts set up
      as liabilities for taxes in the Traders Financial Statements are sufficient
      for
      the payment of all respective taxes (including, without limitation, federal,
      state, local and foreign excise, franchise, property, payroll, income, capital
      stock and sales and use taxes) accrued in accordance with generally accepted
      accounting principles and unpaid at December 31, 2006 and September 30,
      2007.  Since December 31, 2006, neither Traders nor Traders’
Subsidiary Bank has incurred or paid any obligation or liability which would
      be
      material to Traders, except for obligations incurred or paid in connection
      with
      transactions by it in the ordinary course of its business consistent with
      generally accepted banking practices and except as disclosed
      herein.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    4.9           Tax
      Matters. 

     

    (a)           All
      federal, state, local and foreign tax returns, (including, without limitation,
      estimated tax returns, withholding tax returns with respect to employees, and
      FICA and FUTA returns) required to be filed by or on behalf of Traders or
      Traders’ Subsidiary Bank have been timely filed or requests for extensions have
      been timely filed, granted and have not expired and all returns filed are
      complete and accurate to the best information and belief of Traders
      management.  All taxes shown on filed returns have been
      paid.  As of the date hereof, and as of the Effective Time, there is
      no audit examination, deficiency or refund litigation or matter in controversy
      with respect to any taxes that might result in a determination adverse to
      Traders or Traders’ Subsidiary Bank, except as reserved against in the Traders
      Financial Statements, or as previously disclosed to Premier in
      writing.  All taxes, interest, additions and penalties due with
      respect to completed and settled examinations or concluded litigation have
      been
      paid.

     

    (b)           Neither
      Traders nor the Traders’ Subsidiary Bank has executed an extension or waiver of
      any statute of limitations on the assessment or collection of any tax due that
      is currently in effect.

     

    (c)           To
      the extent any federal, state, local or foreign taxes are due from Traders
      or
      the Traders’ Subsidiary Bank for the period or periods beginning January 1,
      2007, or thereafter through and including the Effective Time, adequate provision
      on an estimated basis has been or will be made for the payment of such taxes
      by
      establishment of appropriate tax liability accounts on the last monthly
      financial statements of Traders or the Traders’ Subsidiary Bank, prepared before
      the Effective Time.

     

    (d)           Deferred
      taxes of Traders and the Traders’ Subsidiary Bank have been provided for in
      accordance with generally accepted accounting principles.

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    4.10           Loans.  Except
      as previously disclosed to Premier in writing or as disclosed or provided for
      in
      Traders’ Financial Statements, to the best knowledge and belief of its
      management, each loan reflected as an asset of Traders or Traders’ Subsidiary
      Bank in the Traders Financial Statements as of December 31, 2006, or acquired
      since that date, is the legal, valid and binding obligation of the obligor
      named
      therein, enforceable in accordance with its terms, was made in the ordinary
      course of business, was not known to be uncollectible at the time it was made
      and was made in accordance with the standard loan policies of such lending
      bank,
      and no loan having an unpaid balance (principal and accrued interest) in excess
      of $50,000.00 is subject to any asserted defense, offset or counterclaim known
      to Traders or Traders’ Subsidiary Bank.

     

    4.11           Properties.  Except
      as previously disclosed to Premier in writing or disclosed in the Traders
      Financial Statements, Traders and the Traders’ Subsidiary Bank have good and
      marketable title, free and clear of all material liens, encumbrances, charges,
      defaults or equities of whatever character, to all of the respective properties
      and assets, tangible or intangible, whether real, personal or mixed, reflected
      in the Traders Financial Statements as being owned by it at December 31, 2006
      or
      acquired by it after December 31, 2006.  To the best knowledge and
      belief of Traders, all buildings, and all fixtures, equipment and other property
      and assets which in the opinion of management are material to its business,
      held
      under leases or subleases by Traders or the Traders’ Subsidiary Bank are held
      under valid instruments enforceable in accordance with their respective terms
      (except as previously disclosed in writing to Premier and except as
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws affecting the enforcement
      of
      creditors’ rights generally and except that the availability of the equitable
      remedy of specific performance or injunctive relief is subject to the discretion
      of the court before which any proceedings may be brought).

     

    4.12           Compliance
      with Laws.   Except as previously disclosed in writing to
      Premier, Traders and the Traders’ Subsidiary Bank, to Traders’ best knowledge
      and belief:

     

    (a)           is
      in compliance with all laws, regulations, reporting and licensing requirements
      and orders applicable to its business or any of its employees (because of such
      employee’s activities on behalf of it), the breach or violation of which could
      have a material adverse effect on such business; and

     

    (b)           has
      received no notification (not previously disclosed to Premier in writing) from
      any agency or department of federal, state or local government or regulatory
      authorities or the staff thereof asserting that any such entity is not in
      compliance with any of the statutes, regulations, rules or ordinances which
      such
      governmental authority or regulatory authority enforces, or threatening to
      revoke any license, franchise, permit or governmental authorization, and is
      subject to no agreement with any regulatory authorities with respect to its
      assets or business.

     

    4.13           Employee
      Benefit Plans.  Except as previously disclosed in writing to
      Premier, with respect to any plan or arrangement of Traders or Traders’
Subsidiary Bank which constitutes an employee benefit plan within the meaning
      of
      Section 3(3) of ERISA:

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

     (a)           Except
      for liabilities to the Pension Benefit Guaranty Corporation pursuant to Section
      4007 of ERISA, all of which have been fully paid, and except for liabilities
      to
      the Internal Revenue Service under Section 4971 of the Internal Revenue Code
      of
      1954, if any, all of which have been fully paid, neither Traders nor Traders’
Subsidiary Bank has any liability to the Pension Benefit Guaranty Corporation
      or
      to the Internal Revenue Service with respect to any pension plan qualified
      under
      Section 401 of the Internal Revenue Code of 1954.

     

     (b)           All
      “employee benefit plans”, as defined in Section 3(3) of ERISA, which cover one
      or more employees employed by Traders or Traders’ Subsidiary Bank (each
      individually, a “Plan”, and collectively, the “Plan”) comply in all material
      respects with ERISA and, where applicable for tax-qualified or tax-favored
      treatment, with the Internal Revenue Code of 1986.  As of December 31,
      2006, no material liability under any Plan that is not reflected in the Traders
      Financial Statements (other than such normally unrecorded liabilities under
      the
      Plans for sick leave, holiday, education, bonus, vacation, incentive
      compensation and anniversary awards, provided that such liabilities are not
      in
      any event material).  Neither the Plans nor any trustee or
      administrator thereof has engaged in a “prohibited transaction” within the
      meaning of Section 406 of ERISA or, where applicable, Section 4975 of the
      Internal Revenue Code of 1986 for which no exemption is applicable, nor have
      there been any “reportable events” within the meaning of Section 4043 of ERISA
      for which the 30-day notice therefor has not been waived.

     

    (c)           No
      litigation is pending against any plan or plan fiduciary seeking the payment
      of
      benefits or alleging a breach of trust or fiduciary duty by any plan
      fiduciary.

     

    (d)           Neither
      Traders nor the Traders’ Subsidiary Bank is a party to any multiemployer pension
      plan as defined in Section 414(f) of the Code and Section 3(37) of
      ERISA.

     

    4.14           Commitments
      and Contracts.  Except as previously disclosed in writing to
      Premier, neither Traders nor the Traders’ Subsidiary Bank is a party or subject
      to any of the following (whether written or oral, express or
      implied):

     

    (i)           any
      employment contract or understanding (including any understandings or
      obligations with respect to severance or termination pay liabilities or fringe
      benefits) with any present or former officer, director, employee or consultant
      (other than those which are terminable at will not involve in excess of $25,000
      per year);

     

    (ii)           any
      plan, contract or understanding providing for bonuses, pensions, options,
      deferred compensation, retirement payments, profit sharing or similar
      understandings with respect to any present or former officer, director or
      consultant involving in excess of $25,000 per year;

     

    (iii)           any
      contract or agreement with any labor union;

     

    (iv)           any
      contract not made in the ordinary course of business containing covenants
      limiting the freedom of Traders to compete in any line of business or with
      any
      person or involving any restriction of the area in which, or method by which,
      Traders will carry on its business (other than as may be required by law or
      applicable regulatory authorities);

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (v)           any
      lease with annual rental payments aggregating $50,000 or more.

     

    4.15           Labor.  No
      work stoppage involving Traders or Traders’ Subsidiary Bank is pending or, to
      the best of Traders’ knowledge, threatened.  Neither Traders nor
      Traders Subsidiary Bank is involved in, or threatened with or affected by,
      any
      labor dispute, arbitration, lawsuit or administrative proceeding which could
      materially and adversely affect the business of Traders or Traders’ Subsidiary
      Bank.  Employees of Traders or the Traders’ Subsidiary Bank are not
      represented by any labor union nor are any collective bargaining agreements
      otherwise in effect with respect to such employees.

     

    4.16           Material
      Contracts Furnished.  Traders has made available to Premier true
      and complete copies of all material contracts, leases and other agreements
      to
      which Traders or the Traders’ Subsidiary Bank is a party or by which it is bound
      and of all employment, pension, retirement, stock option, profit sharing,
      deferred compensation, consultant, bonus, group insurance, or similar plans
      with
      respect to any of the directors, officers, or other employees of Traders or
      the
      Traders’ Subsidiary Bank.

     

    4.17           Material
      Contracts.  Except as previously disclosed to Premier in writing
      and except as is otherwise provided in this Agreement, neither Traders nor
      Traders’ Subsidiary Bank or any of their respective assets, businesses or
      operations is, as of the date hereof, a party to, or is bound or affected by,
      or
      receives benefits under, (i) any material agreement, arrangement or commitment
      not cancellable by it without penalty, other than agreements, arrangements
      or
      commitments entered into in the ordinary course of its business and negotiated
      on an arms-length basis, or (ii) any material agreement, arrangement or
      commitment relating to the employment, election or retention in office of any
      director or officer other than agreements, arrangements or commitments entered
      into in the ordinary course of its business and negotiated on an arms-length
      basis.

     

    4.18           Material
      Contract Defaults.  Neither Traders nor the Traders’ Subsidiary
      Bank is in default in any material respect under any material contract,
      agreement, commitment, arrangement, lease, insurance policy or other instrument
      to which it is a party or by which its respective assets, business or operations
      may be bound or affected or under which it or its respective assets, business
      or
      operations receive benefits, and there has not occurred any event which with
      the
      lapse of time or the giving of notice or both would constitute such a default,
      except as previously disclosed to Premier in writing.

     

    4.19           Legal
      Proceedings.  Except as previously disclosed to Premier by Traders
      in writing, there are no actions, suits or proceedings instituted or pending,
      or
      to the best knowledge of Traders threatened (or unasserted but considered
      probable of assertion and which if asserted would have at least a reasonable
      probability of an unfavorable outcome), including eminent domain proceedings,
      against or relating to Traders or the Traders’ Subsidiary Bank, or against any
      property, asset, interest or right of Traders or the Traders’ Subsidiary Bank,
      that could have a material and adverse effect on the condition (financial or
      other, present or prospective), business, properties, assets, operations,
      liabilities or prospects of Traders or the Traders’ Subsidiary Bank, or that
      threaten or would impede the consummation of the transactions contemplated
      by
      this Agreement.  Neither Traders nor the Traders’ Subsidiary Bank is a
      party to any agreement or instrument or subject to any charter or other
      corporate restriction or any judgment, order, writ, injunction, stay, decree,
      rule, regulation, code or ordinance that threatens or might impede the
      consummation of the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    4.20           Absence
      of Certain Changes or Events.  Since December 31, 2006, neither
      Traders nor the Traders’ Subsidiary Bank has:  (i) incurred any
      material liability, except in the ordinary course of its business, consistent
      with generally acceptable banking practice and except as permitted pursuant
      to
      this Agreement; (ii) suffered any material adverse change in its business,
      operations, assets or condition (financial or other); or (iii) failed to operate
      its business consistent with generally acceptable banking practice.

     

    4.21           Reports.  Since
      January 1, 2006, Traders and the Traders’ Subsidiary Bank has filed all reports
      and statements, together with any amendments required to be made with respect
      thereto, which it was required to file with:  (i) the Board of
      Governors of the Federal Reserve System; (ii) the Federal Deposit Insurance
      Corporation; (iii) the West Virginia Department of Banking; and (iv) any other
      governmental agency or regulatory authority having jurisdiction over its
      operations.  Each of such reports and documents, including the
      financial statements, exhibits and schedules thereto, and each other document
      delivered to Premier by Traders does not contain any statement which, at the
      time and in the light of the circumstances under which it was made, is false
      or
      misleading with respect to any material fact or which omits to state any
      material fact necessary in order to make the statements contained therein not
      false or misleading.

     

    4.22           Accuracy
      of Proxy Statement.  The material which refers to Traders and the
      Traders’ Subsidiary Bank and which will be submitted by Traders for inclusion in
      the proxy statement referred to in Section 10 hereof, or in any amendment or
      supplement thereto, mailed to the holders of Traders Common Stock will not
      contain any untrue statements of material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements contained
      therein not misleading.

     

    4.23           Investments.  Except
      as incurred in the ordinary course of business as heretofore conducted or as
      previously disclosed to Premier in writing, all securities owned by Traders
      and
      the Traders’ Subsidiary Bank of record and beneficially are free and clear of
      all mortgages, liens, pledges and encumbrances.  Any securities owned
      of record by Traders or the Traders’ Subsidiary Bank in an amount equal to 5% or
      more of the issued and outstanding voting securities of the issuer have been
      previously disclosed to Premier in writing.  There are no voting
      trusts or other agreements or undertakings with respect to the voting of such
      securities.

     

    4.24           Securities
      Portfolio.  Since December 31, 2006, there have been no
      significant changes in the quality of the Traders’ Subsidiary Bank’s portfolio
      of securities except as previously disclosed to Premier in writing.

     

    4.25           Environmental
      Matters.  To the knowledge of Traders, neither Traders nor the
      Traders’ Subsidiary Bank nor any properties owned or operated by Traders or the
      Traders’ Subsidiary Bank has been or is in violation of or liable under any
      Environmental Law (as hereinafter defined).  There are no actions,
      suits or proceedings, or demands, claims, notices or investigations (including,
      without limitation notices, demand letters or requests for information from
      any
      environmental agency) instituted or pending, or the best knowledge of Traders’
management, threatened relating to the liability of any properties owned or
      operated by Traders’ or the Traders’ Subsidiary Bank under any Environmental
      Law.  “Environmental Law” means any federal, state, local or foreign
      law, statute, ordinance, rule, regulation, code, license, permit, authorization,
      approval, consent, order, judgment, decree, injunction or agreement with any
      regulatory authority relating to (i) the protection, preservation or restoration
      of the environment (including, without limitation, air, water vapor, surface
      water, ground water, drinking water supply, surface soil, subsurface soil,
      plant
      and animal life or any other natural resource) and/or (ii) the use, storage,
      recycling, treatment, generation, transportation, processing, handling,
      labeling, production, release or disposal of any substance presently listed,
      defined, designated or classified as hazardous, toxic, radioactive or dangerous,
      or otherwise regulated, whether by type or by quantity, including any material
      containing any such substance as a component.

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    4.26           Best
      Efforts.  On or prior to the Closing Date (hereinafter defined),
      Traders will, to the extent permitted by applicable laws, rules and regulations,
      take such actions and execute and deliver all such agreements, documents,
      certificates or amendments to this Agreement as may be necessary or desirable
      to
      effectuate the provisions and intent of this Agreement.

     

    4.27           Conduct
      of Business - Negative Covenants of Traders.  Except as otherwise
      contemplated hereby, between the date hereof and the Effective Time, or the
      time
      when this Agreement terminates as provided herein, Traders will not, without
      the
      prior written approval of the President of Premier:

    

    (a)           Make
      any change in its authorized capital stock.

    

    (b)           Issue
      any shares of its capital stock, securities convertible into its capital stock,
      or any long term debt securities.

    

    (c)           Issue
      or grant any options, warrants, or other rights to purchase shares of its common
      stock.

     

    (d)           Declare
      or pay any dividends or other distributions on any shares of common stock,
      except for regular quarterly dividends not to exceed Twenty-Five Cents ($0.25)
      per share.

     

    (e)           Purchase
      or otherwise acquire or agree to acquire for a consideration any share of
      Traders Common Stock (other than in a fiduciary capacity).

     

    (f)           Except
      as otherwise contemplated herein, enter into or amend any employment, pension,
      retirement, stock option, profit sharing, deferred compensation, consultant,
      bonus, group insurance, or similar plan in respect of any of its directors,
      officers, or other employees, or increase the current level of contributions
      to
      any such plan now in effect.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (g)           Take
      any action materially and adversely affecting this Agreement or the transactions
      contemplated hereby or the financial condition (present or prospective),
      businesses, properties, or operations of Traders or the Traders Subsidiary
      Bank.

     

    (h)           Acquire,
      consolidate or merge with any other company, corporation, bank or banking
      association, or acquire, other than in the ordinary course of business, any
      assets of any other company, corporation, bank, or banking
      association.

     

    (i)           Mortgage,
      pledge, or subject to a lien or any other encumbrance, any of its assets,
      dispose of any of its assets, incur or cancel any debts or claims, or increase
      the current level of compensation or benefits payable to its officers, employees
      or directors except in the ordinary course of business as heretofore conducted
      or take any other action not in the ordinary course of their business as
      heretofore conducted or incur any material obligation or enter into any material
      contract.

     

    (j)           Amend
      its Articles of Incorporation or Association, By-laws or Charter.

     

    (k)           Take
      any action to solicit, initiate, encourage, or authorize any person, including
      directors, officers and other employees, to solicit from any third party any
      inquiries or proposals relating to the disposition of the business or assets
      of
      Traders, or the acquisition of their Traders Common Stock, or the merger of
      Traders with any person other than Premier, and Traders shall promptly notify
      Premier orally of all the relevant details relating to all inquiries and
      proposals which it may receive relating to any of such
      matters.  Nothing herein shall be construed to limit or affect the
      fiduciary obligation of Traders’ officers and directors to Traders
      shareholders.

    

    4.28           Conduct
      of Business - Affirmative Covenants of Traders.  Traders covenants
      and agrees that:

     

    (a)           It
      will promptly advise Premier in writing of the name and address of and number
      of
      shares of Traders Common Stock held by each shareholder who elects to exercise
      his, her or its rights to appraisal in connection with the Merger pursuant
      to
      the West Virginia Business Corporation Act.

     

    (b)           Except
      as specifically required herein, subsequent to the date of this Agreement and
      prior to the Effective Time it will operate its business only in the normal
      course and manner.

     

    (c)           It
      will make available to Premier for review prior to Traders or Traders’
Subsidiary Bank’s final loan approval, any loan documentation, credit
      memorandums or other related documentation requested or received by Traders
      or
      Traders’ Subsidiary Bank in its decision making process in determining whether
      to extend credit to any borrower for:

    

    
      	
               

            	
              (1)

            	
              Any
                new loan, or renewal of an existing loan, that totals $200,000 or
                greater;
                or

            

    

    

    
      	
               

            	
              (2)

            	
              Any
                new loan, or renewal of an existing loan, which, when included with
                all
                other loans from Traders or Traders’ Subsidiary Bank to any such borrower
                and their related interests, would cause such borrower’s total loans from
                Traders or Traders’ Subsidiary Bank, including loans from Traders or
                Traders’ Subsidiary Bank to their related interests, to exceed
                $400,000.

            

    

     

    
 

    
      
        
        

      

      
        24

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    Any
      objections by Premier to proposed loans reviewed hereunder will be made in
      writing to Traders’ Subsidiary Bank within forty-eight (48) hours of receipt by
      Premier of the information provided hereunder.

     

    (d)           From
      and after the execution of this Agreement, Traders will promptly advise Premier
      of any material adverse change in the financial condition, assets, business
      operations or key personnel of Traders or the Traders’ Subsidiary Bank and of
      any material breach of any representation or warranty made by Traders or the
      Traders Subsidiary Bank in this Agreement.

     

    (e)           Immediately
      upon the execution of this Agreement, it will direct its accountants to give
      Premier access to all information, documents and working papers pertaining
      to
      Traders or the Traders’ Subsidiary Bank.

     

    (f)           Subsequent
      to the date of this Agreement and prior to the Effective Time, Traders and
      the
      Traders’ Subsidiary Bank shall maintain in full force and effect adequate fire,
      casualty, public liability, employee fidelity and other insurance coverage
      in
      effect on the date of this Agreement in order to protect Traders and the
      Traders’ Subsidiary Bank against losses for which insurance protection can
      reasonably be obtained.

     

    (g)           Within
      ten days from the execution of this Agreement, Traders shall furnish to Premier
      a list, accurate as of the close of business on a date not more than ten (10)
      days prior to the date on which such list is furnished, containing the names
      and
      addresses of all holders of Traders Common Stock as the same appear on the
      stock
      registration books of Traders and the number of shares held by
      each.  At the Effective Time, Traders shall furnish to Premier a list,
      true, correct and complete as of the close of business on the preceding day,
      containing the names and addresses of all holders of Traders Common Stock as
      the
      same appear on Traders’ stock registration books and the number of shares held
      by each.

     

    (h)           It
      will use its best efforts in good faith to take or cause to be taken all action
      required under this Agreement on its part to be taken as promptly as practicable
      so as to permit the consummation of the Merger and the transactions contemplated
      hereby at the earliest possible date and cooperate fully with Premier to that
      end.

     

    (i)           Subsequent
      to the date of this Agreement and prior to the Effective Time, Traders and
      the
      Traders’ Subsidiary Bank shall take all steps necessary and appropriate
      to:

    

    
      	
               

            	
              (1)

            	
              Terminate
                pursuant to the terms thereof any and all employment contracts to
                which
                either Traders or the Traders’ Subsidiary Bank is a
                party.

            

    

    

    
      	
               

            	
              (2)

            	
              Terminate
                any defined benefit plan to which either Traders or the Traders’
                Subsidiary Bank is a party; provided, however, that if all
                appropriate steps are taken for termination and the defined benefit
                plan
                is frozen, the actual termination of any defined benefit plan need
                not be
                accomplished prior to, or at,
                Closing.

            

    

    

    
      	
               

            	
              (3)

            	
              Terminate
                any and all deferred compensation plans to which either Traders or
                the
                Traders’ Subsidiary Bank is a party; provided, however, that
                liability for accrued but unpaid deferred compensation shall remain
                on the
                balance sheet of Traders.

            

    

    

    
      	
               

            	
              (4)

            	
              Terminate
                any and all employee “carve-out life insurance” benefit
                plans.

            

    

     

    
 

    
      
        
        

      

      
        25

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    Premier
      acknowledges and agrees that termination of the employee benefit plans, as
      required by this section, will require the payment of cash and/or other
      consideration to affected employees, in accordance with the terms thereof and
      applicable law.

    

     (j)           Promptly
      advise Premier prior to the institution of any new mortgage program by Traders’
Subsidiary Bank.

     

    4.29           CEO/CFO
      Certification Checklist.    The CEO/CFO Certification
      checklist completed by Traders prior to the execution of this Agreement is
      true
      and correct in all respects and a new true and accurate CEO/CFO Certification
      checklist will be executed prior to the Effective Date.

     

    4.30           Branch
      Operations Certification.    The Branch Operations
      Certification for each branch of Traders’ Subsidiary Bank completed prior to the
      execution of this Agreement is true and correct in all respects and a new true
      and accurate Branch Operations Certification for each branch will be executed
      prior to the Effective Date.

    

    4.31           ”Trade-In
      Your Mortgage” Program.  Traders’ Subsidiary Bank has ceased
      offering the 5.99% APR “Trade-In Your Mortgage” program.

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      5.     Indemnification and
      Confidentiality

     

    5.1           Access
      and Information.  Traders and Premier shall each afford to the
      other, and to the other’s accountants, counsel and other representatives, full
      access during normal business hours throughout the period prior to the Closing
      Date to all of its properties, books, contracts, commitments and records
      (including but not limited to tax returns), and, during such period, each shall
      furnish promptly to the other (i) a copy of each report, schedule and other
      document filed or received by it pursuant to the requirements of federal or
      state securities and banking laws and (ii) all other information concerning
      its
      business, properties and personnel as such other party may reasonably request,
      provided that no investigation pursuant to this Section 5.1 shall affect any
      representations or warranties or the conditions to the obligations of the
      parties to consummate the Merger.

     

    5.2           Furnishing
      Information and Indemnification.  Premier and the Premier
      Subsidiaries, on the one hand, and Traders and the Traders’ Subsidiary Bank, on
      the other hand, have furnished or will furnish as soon as practicable after
      the
      date of this Agreement, to each other all the information (including financial
      statements, information and schedules) concerning themselves required for
      inclusion in:

    

    (a)           any
      applications to be filed by any of Premier or Traders with the Federal Reserve
      Board, the Federal Deposit Insurance Corporation, the Kentucky Office of
      Financial Institutions and the West Virginia Board of Banking and Financial
      Institutions;

     

    (b)           the
      registration statement to be filed with the Securities and Exchange Commission
      on behalf of under the Securities Act of 1933 in connection with the Merger
      and
      the proxy statement to solicit the approval of Traders shareholders to the
      Merger, and any documents to be filed with the Securities and Exchange
      Commission in connection therewith;

     

    (c)           any
      filings to be made by Premier with state securities authorities in connection
      with the transactions contemplated hereunder; and

     

    (d)           any
      other request, application, statement, report or material to be made or filed
      by
      any party to or with any regulatory authority or any governmental agency,
      department or instrumentality in connection with the transactions contemplated
      hereunder.

     

    Premier
      represents and warrants to
      Traders, and Traders represents and warrants to Premier, that all information
      so
      furnished for such requests, statements, applications, reports and materials
      shall be true and correct in all material respects without omission of any
      material fact required to be stated to make the information therein not false
      or
      misleading.  Premier will indemnify and hold harmless Traders and
      Traders’ Subsidiary Bank, and Traders will indemnify and hold harmless Premier
      and each of the Premier Subsidiaries, and each of their respective directors
      and
      officers, and each person, if any, who controls such entities within the meaning
      of the Securities Act of 1933, from and against any and all losses, damages,
      expenses or liabilities to which such entity, or any such director, officer
      or
      controlling person may become subject under applicable laws (including the
      Securities Act of 1933 and the Securities Exchange Act of 1934) and rules and
      regulations thereunder and will reimburse the other, and any such director,
      officer or controlling person, for any legal or other expenses reasonably
      incurred in connection with investigating or defending any actions, whether
      or
      not resulting in liability, insofar as such losses, damages, expenses,
      liabilities or actions arise out of or are based upon any untrue statement
      or
      alleged untrue statement of a material fact contained in any such request,
      statement, application, report or material or arise out of or are based upon
      the
      omission or alleged omission to state therein a material fact required to be
      stated therein or necessary in order to make the statements therein not
      misleading, but only insofar as any such statement or omission was made in
      reliance upon and in conformity with information furnished in writing in
      connection therewith by such indemnifying party for use therein.

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    5.3           Confidentiality.  It
      is hereby agreed that, except (i) as otherwise required in the performance
      by
      the parties of their respective obligations hereunder or under the Merger and
      (ii) as otherwise required by law, any non-public information received from
      the other party during the course of the investigation contemplated pursuant
      hereto shall remain and be kept as confidential information by it and all copies
      thereof will be returned promptly at the request of the party furnishing such
      information in the event of the termination of this Agreement and the
      Merger.  Each of the parties may disclose such information to its
      respective employees, affiliates, counsel, accountants, representatives,
      professional advisors and consultants, and shall require each of them to agree
      to keep all such information confidential.

     

    5.4           Updates
      to Information.  At the reasonable request of any party hereto,
      any other party will update by amendment or supplement any disclosure made
      in
      writing by such party to the other party and each party hereby represents and
      warrants that such written disclosures, as so amended or supplemented, shall
      be
      true, correct and complete as of the date or dates thereof.

    
      
        
        

      

      
        28

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      6.     Conditions Precedent

    

    The
      consummation of this Agreement and
      the Merger is conditioned upon the following:

     

    (a)           Governmental
      Approvals.  The approval of and consent to the Merger and the
      transactions contemplated hereby shall have been given prior to the Effective
      Time by the regulatory agencies whose approval or consent is required,
      including, without limitation, to the extent provided by applicable laws, rules
      and regulations, the Board of Governors of the Federal Reserve System, the
      Federal Deposit Insurance Corporation, the Kentucky Office of Financial
      Institutions, the West Virginia Board of Banking and Financial Institutions
      and
      the Securities and Exchange Commission, and all notice periods, waiting periods
      delay periods and all periods for review, objection or appeal of or to any
      of
      the consents, approvals, or permissions required by law with respect to the
      consummation of the Merger and this Agreement shall have
      expired.  Such approvals shall not be conditioned or restricted in a
      manner which, in the judgment of the Board of Directors of Premier, materially
      adversely affects the economic assumptions of the transactions contemplated
      hereby so as to render inadvisable consummation of the Merger.

     

    (b)           Shareholder
      Approval.  The shareholders of Traders and Interim Company shall
      have ratified, confirmed and approved this Agreement and the terms and
      conditions herein contained by the affirmative vote of shareholders of each
      such
      corporation, owning at least a majority of its capital stock outstanding, and
      final approval of this Agreement shall have taken place as provided in Section
      10 hereof, and all provisions of Section 10 shall have been fully complied
      with.

    

    (c)           Registration
      Statement.  Premier at its sole cost and expense shall have
      prepared and filed an effective registration statement on Form S-4 or on such
      other appropriate form as may be prescribed by the Securities and Exchange
      Commission and as Premier may reasonably be able to prepare and file, providing
      timely registration under the provisions of the Securities Act of 1933, as
      amended, of the Premier Common Stock to be exchanged in connection with the
      Merger, and a prospectus shall have been delivered to all shareholders of
      Traders prior to obtaining the approval of this Agreement by such shareholders
      as provided in Section 10, which prospectus may be the same document or part
      of
      the same document to the extent permitted by the rules and regulations of the
      Securities and Exchange Commission as the proxy statement referred to in Section
      10, or in the alternative, Premier shall have received an opinion of its counsel
      that registration of such shares under the Securities Act of 1933 is not
      required.  The Registration Statement shall be effective and all
      post-effective amendments filed by Premier with respect to such registration
      statement shall have been declared effective or shall have been withdrawn and
      no
      stop orders suspending the effectiveness thereof shall have been issued and
      no
      proceedings for that purpose shall, before the Effective Time, have been
      initiated nor, to the knowledge of Premier, threatened by the Securities and
      Exchange Commission.

     

    (d)           Affiliates.  Traders
      agrees to deliver to Premier a letter identifying all persons whom it believes
      to be, at the time the Merger is submitted to a vote of Traders stockholders,
      “affiliates” of Traders, for purposes of Rule 145 or Rule 144 (as applicable)
      under the Securities Act of 1933, and shall use its best efforts to cause each
      person who is identified as an “affiliate” in such letter to deliver to Premier
      prior to the Closing Date a written agreement providing that such person will
      agree not to sell, pledge, transfer or otherwise dispose of the shares of
      Premier Common Stock to be received by such person in the Merger except in
      compliance with the applicable provisions of the Securities Act of 1933 and
      the
      rules and regulations thereunder.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (e)           No
      Divestiture or Adverse Condition.  The approvals, consents and
      permissions referred to in subparagraphs (a), (b) and (c) hereof shall not
      have
      required the divestiture or cessation of any significant part of the present
      operations conducted by Premier, Traders or any Premier Subsidiary, and shall
      not have imposed any other condition, which divestiture, cessation or condition
      Premier deems to be materially disadvantageous or burdensome.

     

    (f)           Accuracy
      of Representations and Warranties; Performance of Obligations and Covenants
      -
      Premier.  Unless waived by Traders, the representations and
      warranties of Premier contained in this Agreement shall be correct on and as
      of
      the Closing Date and thereafter until the Effective Time in all material
      respects with the same effect as though made on and as of such Effective Time
      except for changes which are not in the aggregate material and adverse to the
      financial condition, businesses, properties, or operations of Premier and
      Premier shall have performed in all material respects all of its obligations
      and
      agreements hereunder theretofore to be performed by it and Traders shall have
      received on the Closing Date an appropriate certificate (in affidavit form)
      to
      the foregoing effect dated as of the Closing Date and executed on behalf of
      Premier by one or more appropriate executive officers of Premier.

     

    (g)           Accuracy
      of Representations and Warranties; Performance of Obligations and Covenants
      -
      Traders.  Unless waived by Premier, the representations and
      warranties of Traders contained in this Agreement shall be correct on and as
      of
      the Closing Date and thereafter until the Effective Time with the same effect
      as
      though made on and as of such Effective Time except for changes which are not
      in
      the aggregate material and adverse to the financial condition, businesses,
      properties or operations of Traders, and Traders shall have performed in all
      material respects all of its obligations and agreements hereunder theretofore
      to
      be performed by it and Premier shall have received on the Closing Date an
      appropriate certificate (in affidavit form) to the foregoing effect dated as
      of
      the Closing Date and executed on behalf of Traders by one or more appropriate
      executive officers of Traders.

     

    (h)           Opinion
      of Counsel for Traders.  Premier shall have received an opinion of
      Jackson Kelly, PLLC, counsel for Traders, dated the Closing Date, with respect
      to such matters as  Premier may reasonably request and to the effect
      that:

    

    
      	
               

            	
              (1)

            	
              Traders
                is a corporation duly organized, validly existing and in good standing
                under the laws of the State of West Virginia, is a bank holding company
                under the Bank Holding Company Act of 1956 and is duly authorized
                to own
                its properties and to conduct its business as then being
                conducted.

            

    

    

    
      	
               

            	
              (2)

            	
              Traders’
                Subsidiary Bank is a banking corporation validly existing and in
                good
                standing under the laws of the State of West Virginia and is duly
                authorized to own its properties and to conduct its business as then
                being
                conducted.

            

    

     

    
 

    
      
        
        

      

      
        30

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    
      	
               

               

            	
              (3)

            	
              The
                authorized capitalization of Traders is as set forth in such opinion
                and
                the shares of Traders Common Stock issued and outstanding (as of
                a date
                specified in such opinion not more than 5 days prior to the date
                of such
                opinion) are as stated in such opinion.  Such issued and
                outstanding shares of stock are validly issued, fully paid and were
                not
                issued in violation of any preemptive rights of the shareholders
                of
                Traders.  As of such date, there are, to the best of such
                counsel’s knowledge, no options, warrants, rights, commitments or
                convertible securities outstanding or authorized on behalf of Traders,
                calling for the purchase from it of shares of unissued capital stock
                or
                capital stock held as treasury
                shares.

            

    

    

    
      	
               

            	
              (4)

            	
              Traders
                had the corporate power and authority to execute, deliver and perform
                its
                obligations under this Agreement.  This Agreement has been duly
                authorized, executed and delivered by Traders and constitutes the
                legal,
                valid and binding obligation of Traders, enforceable in accordance
                with
                its terms.

            

    

    

    
      	
               

            	
              (5)

            	
              All
                necessary corporate proceedings of the board of directors and the
                shareholders of Traders, to the extent required by law, its Articles
                of
                Incorporation and Bylaws or otherwise, to authorize the execution
                and
                delivery of this Agreement by Traders and the consummation of the
                Merger
                by Traders pursuant to this Agreement have been duly and validly
                taken.  The number of shares of stock of Traders voted for and
                against the Merger are as stated in such counsel’s opinion; and the number
                of shares of such stock as to which shareholders have perfected their
                rights to dissent and appraisal under the West Virginia Business
                Corporation Act are as stated in such counsel’s
                opinion.

            

    

    

    
      	
               

            	
              (6)

            	
              Such
                counsel has reviewed the registration statement filed by Premier
                as
                described in Section 6(c), and with respect to all information relating
                to
                Traders contained therein, such counsel does not know of any respect
                in
                which the registration statement contained any false or misleading
                statement of any material fact or failed to state a material fact
                which
                was necessary to be stated to prevent the statements made from being
                false
                or misleading in any material respect (except as to the financial
                statements and related notes and schedules and other financial data,
                as to
                which such counsel need express no
                opinion).

            

    

    

    
      	
               

            	
              (7)

            	
              The
                consummation of the Merger will not violate or result in a breach
                of, or
                constitute a default under, the Articles of Incorporation or By-Laws
                of
                Traders or constitute a breach or termination of, or default under,
                any
                agreement or instrument of which such counsel has knowledge and which
                would have a material adverse affect on the business of Traders,
                and to
                which Traders is a party or by which it or any of its property is
                bound.

            

    

     

    
 

    
      
        
        

      

      
        31

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    
      	
               

            	
              (8)

            	
              Such
                counsel does not know of any breach of any warranty contained in
                this
                Agreement on the part of Traders or any failure on the part of Traders
                to
                perform any of the conditions precedent to the consummation of the
                Merger
                imposed upon it herein.

            

    

    

    (i)           Opinion
      of Counsel for Premier.  Traders shall have received the opinion
      of Huddleston Bolen LLP, counsel for Premier, dated the Closing Date, with
      respect to such matters as Traders may reasonably request and to the effect
      that:

    

    
      	
               

            	
              (1)

            	
              Premier
                is a corporation duly organized, validly existing and in good standing
                under the laws of the Commonwealth of Kentucky, is a bank holding
                company
                under the Bank Holding Company Act of 1956, and is duly authorized
                to own
                its properties and to conduct its business as then being
                conducted.

            

    

    

    
      	
               

            	
              (2)

            	
              Each
                of the Premier State Banks are banking corporations duly organized,
                validly existing and in good standing under the laws of the States
                of Ohio
                or West Virginia or the Commonwealth of Kentucky, as the case may
                be, and
                each is duly authorized to own its properties and to conduct its
                business
                as then being conducted.

            

    

    

    
      	
               

            	
              (3)

            	
              The
                authorized capitalization of Premier is as set forth in such opinion
                and
                the shares of Premier Common Stock issued and outstanding (as of
                a date
                specified in such opinion not more than 5 days prior to the date
                of such
                opinion) are as stated in such opinion.  Such issued and
                outstanding shares of stock are validly issued, fully paid and
                non-assessable, and were not issued in violation of any preemptive
                rights
                of the shareholders of Premier or any Premier Subsidiary.  As of
                such date, there are, to the best of such counsel’s knowledge, no options,
                warrants, rights, commitments or convertible securities outstanding
                or
                authorized on behalf of Premier or any Premier Subsidiary, calling
                for the
                purchase from any of them of shares of unissued capital stock or
                capital
                stock held as treasury shares, except as otherwise permitted by the
                Agreement or for those shares of stock issued pursuant to any employee
                stock option plan of Premier.  All of the issued and outstanding
                shares of each of the Premier Subsidiaries are held of record by
                Premier.

            

    

    

    
      	
               

            	
              (4)

            	
              All
                necessary corporate proceedings of the Boards of Directors and the
                shareholders of Premier and Interim Company to the extent required
                by law,
                their Articles of Incorporation or Association or By-Laws or otherwise,
                to
                authorize the execution and delivery of this Agreement or the Adoption
                Agreement and the consummation of the Merger pursuant to this Agreement
                have been duly and validly taken.  Premier and Interim Company
                have the corporate power and authority to execute, deliver and perform
                this Agreement or the Adoption Agreement.  This Agreement has
                been duly authorized, executed and delivered by Premier and Interim
                Company (by virtue of the Adoption Agreement) and constitutes the
                legal,
                valid and binding obligation of Premier and Interim Company in accordance
                with its terms.

            

    

     

    
 

    
      
        
        

      

      
        32

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    
      	
               

            	
              (5)

            	
              The
                consummation of the Merger will not violate or result in a breach
                of, or
                constitute a default under the Articles of Incorporation or By-Laws
                of
                Premier or constitute a breach or termination of, or default under,
                any
                agreement or instrument of which such counsel has knowledge and to
                which
                Premier is a party or by which it or its property is
                bound.

            

    

    

    
      	
               

            	
              (6)

            	
              To
                the best of such counsel’s knowledge, all approvals of public authorities,
                federal, state or local, the granting of which is necessary for the
                consummation of the Merger by Premier have been
                obtained.

            

    

    

    
      	
               

            	
              (7)

            	
              The
                shares of Premier Common Stock into which shares of Traders Common
                Stock
                are to be converted upon the Effective Time will upon the Effective
                Time
                be duly authorized, and such shares, when transferred to holders
                of
                Traders Common Stock pursuant to the terms of the Merger, will be
                validly
                issued, fully paid and nonassessable shares of Premier Common
                Stock.

            

    

    

    
      	
               

            	
              (8)

            	
              Such
                counsel has reviewed the registration statement described in Section
                6(c),
                and with respect to all information relating to the Merger and to
                Premier
                and the Premier Subsidiaries contained therein, such counsel does
                not know
                of any respect in which the registration statement contained any
                false or
                misleading statement of any material fact or failed to state a material
                fact which was necessary to be stated to prevent the statements made
                from
                being false or misleading in any material respect (except as to the
                financial statements and related notes and schedules and other financial
                data, as to which such counsel need express no
                opinion).

            

    

    

    
      	
               

            	
              (9)

            	
              The
                registration statement has been filed on the proper form under the
                rules
                and regulations of the Securities and Exchange Commission, notice
                of
                effectiveness of the registration statement has been received, and,
                to the
                best of such counsel’s knowledge, no stop order suspending the
                effectiveness of the registration statement has been issued and no
                proceeding for that purpose has been
                instituted.

            

    

     

    (j)           Less
      than 20% Dissenters.  Unless waived by Premier, the holders of no
      more than 20% of the outstanding shares of Traders Common Stock shall have
      elected to exercise their statutory rights to appraisal in connection with
      the
      transactions contemplated hereby, pursuant to the West Virginia Business
      Corporation Act.

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (k)           Tax
      Ruling or Opinion Letter.  Premier and Traders shall have received
      a ruling from the Internal Revenue Service, or at their option, Traders shall
      have received an opinion of tax counsel acceptable to it and Premier shall
      have
      received an opinion of tax counsel acceptable to it, to the effect
      that:

    

    
      	
               

            	
              (1)

            	
              The
                Merger will constitute and qualify as a reorganization within the
                meaning
                of Sections 368 of the Internal Revenue Code and Traders, Surviving
                Company and Premier will each qualify as “a party to a reorganization” as
                that term is defined in the Internal Revenue
                Code;

            

    

    

    
      	
               

            	
              (2)

            	
              No
                gain or loss will be recognized by the shareholders of Traders who
                exchange their Traders Common Stock for Premier Common Stock pursuant
                to
                the Merger, except that gain or loss may be recognized as to cash
                received
                as Merger Consideration and cash received in lieu of fractional share
                interests;

            

    

    

    
      	
               

            	
              (3)

            	
              No
                gain or loss will be recognized by Premier, Traders, or Surviving
                Company
                by reason of the Merger; and

            

    

    

    
      	
               

            	
              (4)

            	
              The
                holding period of Premier Common Stock received by Traders shareholders
                in
                exchange for Traders Common Stock will include the holding period
                of the
                shares of Traders Common Stock so exchanged, provided that the Traders
                Common Stock is held as a capital asset at the Effective
                Time.

            

    

     

    (l)           Absence
      of Material Adverse Changes - Premier.  Unless waived by Traders
      at or before the Effective Time, there shall have been no material adverse
      change in the financial condition, business or assets of Premier since December
      31, 2006, and there shall be no suit, action or proceeding pending or threatened
      against Premier or any Premier Subsidiary which, if successful, would have
      a
      material adverse effect on Premier or the Surviving Company after the
      consummation of the Merger.

     

    (m)           Absence
      of Material Adverse Changes - Traders.  Unless waived by Premier
      at or before the Effective Time, there shall have been no material adverse
      change in the financial condition, business or assets of Traders since December
      31, 2006, and there shall be no suit, action or proceeding pending or threatened
      against Traders which if successful would have a material adverse effect on
      Traders or the Surviving Traders after the consummation of the
      Merger.

     

    (n)           Consent
      of Lenders.   Premier shall have received the consents of
      First Guaranty Bank of Hammond, Louisiana and The Bankers’ Bank of Kentucky,
      Inc. of Frankfort, Kentucky as may be required by those loan agreements entered
      into by Premier with First Guaranty Bank and The Bankers’ Bank of Kentucky, as
      identified in Section 3.3 on or before midnight on the forty-fifth (45th) day following
      the
      date of this Agreement.  Premier shall use its best efforts to obtain
      such consents.  In the event that this Agreement is terminated because
      such consents are not available, Premier shall reimburse Traders and Traders’
Bank Subsidiary for their out-of-pocket costs with respect to this Agreement
      (not to exceed Seventy Five Thousand Dollars ($75,000)) and the transactions
      contemplated herein.

    

    
      
        
        

      

      
        34

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (o)           Financing.    Premier
      shall have received a loan commitment on or before midnight on the forty-fifth
      (45th) day
      following the date of this Agreement sufficient to fund the Cash Consideration
      from either The Bankers’ Bank of Kentucky or First Guaranty Bank on terms and
      conditions reasonably satisfactory to Premier for the Cash
      Consideration.  Premier shall use its best efforts to obtain such
      financing.  In the event that this Agreement is terminated because
      such financing is not available from The Bankers’ Bank of Kentucky, First
      Guaranty Bank, or another lender, Premier shall reimburse Traders and Traders’
Bank Subsidiary for their out-of-pocket costs with respect to this Agreement
      (not to exceed Seventy Five Thousand Dollars ($75,000)) and the transactions
      contemplated herein.

    

    (p)           No
      Excess Parachute Payment.    As a result, directly or
      indirectly, of the transactions contemplated by this Agreement (including,
      without limitation, as a result of any termination of employment prior to or
      following the Effective Time), neither Premier, Traders nor the Traders’
Subsidiary Bank will be obligated to make a payment that would be characterized
      as an “excess parachute payment” to an individual who is a “disqualified
      individual” (as such terms are defined in Section 280G of the Internal Revenue
      Code), without regard to whether such payment is reasonable compensation for
      personal services performed or to be performed in the future.

    

    (q)           Fairness
      Opinion.  Traders shall have received an opinion from its
      financial advisor, Baxter Fentriss and Company, that the Merger Consideration
      is
      fair, from a financial point of view, to the shareholders of
      Traders.

    
      
          

      

      
        35

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      7.     Closing Date and Effective
      Time

     

    7.1           Closing
      Date.  The closing shall be effected as soon as practicable after
      all of the conditions contained herein shall have been satisfied.  The
      closing shall be held at the offices of Premier in Huntington, West Virginia,
      and the closing date (“Closing Date”) shall be a mutually agreeable date
      following the date of final approval by such regulatory agencies whose approval
      is required of the Merger and the transactions contemplated hereby but, in
      no
      event, later than forty-five (45) days following the date of such final approval
      and/or the date when all such conditions are satisfied, whichever date shall
      last occur.

     

    7.2           Effective
      Time.  Subject to the terms and upon satisfaction on or before the
      Closing Date of all conditions specified in this Agreement, the Merger shall
      be
      effective at the time specified in the certificate of merger to be issued by
      the
      Secretary of State of West Virginia (such time herein called “Effective
      Time”).

    
      
           

      

      
        36

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      8.     Termination of Agreement

     

    8.1           Grounds
      for Termination.  This Agreement and the transactions contemplated
      hereby may be terminated at any time prior to the Closing Date, either before
      or
      after the meeting of the shareholders of Traders:

    

    (a)           By
      mutual consent in writing of Traders and Premier; or

     

    (b)           By
      Traders by giving written notice thereof to Premier if (i) a material adverse
      change shall have occurred in the financial condition, results of operations
      or
      business of Premier or any Premier Bank since December 31, 2006, or (ii) Premier
      has in any material respect breached any covenant, undertaking, representation
      or warranty contained in this Agreement and such breach has not been cured
      within thirty (30) days after the giving of such notice; or

     

    (c)           By
      Premier by giving written notice thereof to Traders if (i) a material adverse
      change shall have occurred in the financial condition, results of operations
      or
      business of Traders since December 31, 2006 or (ii) Traders has breached any
      covenant, undertaking, representation or warranty contained in this Agreement
      and such breach has not been cured within thirty (30) days after the giving
      of
      such notice; or

     

    (d)           By
      either Traders or Premier upon written notice to the other if any regulatory
      agency whose approval of the transactions contemplated by this Agreement is
      required denies such application for approval by final order or ruling (which
      order or ruling shall not be considered final until expiration or waiver of
      all
      periods for review or appeal); or

     

    (e)           By
      either Traders or Premier upon written notice to the other if any condition
      precedent to either party’s performance hereunder is not satisfied or fulfilled;
      or

     

    (f)           By
      either Traders or Premier if the Merger shall violate any non-appealable final
      order, decree or judgment of any court or governmental body having competent
      jurisdiction; or

     

    (g)           By
      either Traders or Premier upon the bankruptcy, insolvency or assignment for
      the
      benefit of creditors of Traders, Premier or of any of the Premier Banks;
      or

     

    (h)           By
      either Traders or Premier, if the shareholders of Traders shall fail to approve
      the Merger by the vote required under the West Virginia Business Corporation
      Act
      and the Articles of Incorporation and Bylaws of Traders; or

     

    (i)           By
      either Traders or Premier, if the Closing does not occur on or before April
      30,
      2008 unless extended by mutual agreement in writing; or

    

    (j)           By
      Traders by giving written notice thereof to Premier during the five day period
      (“Election Period”) ending two business days prior to the Closing Date, if the
      volume weighted average of the daily closing price per share of Premier Common
      Stock for the five trading days ending with the tenth trading day prior to
      the
      Closing Date (“Closing Price”) is less than $11.20, unless Premier by giving
      written notice to Traders after having received a termination notice from
      Traders, at its option, increases the Stock Consideration to a sufficient ratio
      such that Traders shareholders receive shares of Premier Common Stock which
      are
      the equivalent to at least $42.00, based upon the Closing Price and the total
      Merger Consideration being received by Traders shareholders is equal to at
      least
      $92.00 per share; or

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (k)           By
      Premier by giving written notice thereof to Traders during the Election Period
      if the Closing Price is more than $16.80, unless Traders by giving written
      notice to Premier after having received a termination notice from Premier,
      at
      its option, decreases the Stock Consideration to a sufficient ratio such that
      Traders shareholders receive shares of Premier Common Stock which are the
      equivalent to, at the greatest, $63.00 based upon the Closing Price and the
      total Merger Consideration being received by Traders’ shareholders is equal to,
      at the greatest, $113.00 per share.

     

    8.2           Effect
      of Termination.  In the event of termination of this Agreement for
      any reason other than a breach thereof, neither party hereto shall have any
      liability to the other of any nature whatsoever, including any liability for
      loss, damages, or expenses suffered or claimed to be suffered by reason thereof,
      except as provided in Section 8.3.

     

    8.3.           Lost
      Opportunity Costs.

     

    (a)           Traders
      shall pay promptly to Premier a cancellation fee of $500,000 (the “Termination
      Fee”) if a Triggering Event (as defined in Section 8.3(b) below) has occurred;
      provided that Premier has not breached in any material respect the obligations
      of Premier contained in this Agreement.  The Termination Fee shall be
      payable in immediately available funds.

    

    (b)           For
      purposes of this Section 8.3, a “Triggering Event” shall mean:

    

    (i)           a
      breach of this Agreement which would permit Premier to terminate this Agreement;
      or

    

    (ii)           the
      occurrence of both paragraphs (A) and (B):

     

    (A)           The
      Traders Board of Directors fails to recommend the Merger to Traders shareholders
      and to continue such recommendation until the Traders shareholders meeting
      duly
      called and held for the purpose of approving the Merger (the “Shareholders
      Meeting”), unless the Traders Board of Directors reasonably concludes that one
      of the conditions precedent to Traders’ obligation to close, other than the
      required shareholders’ vote, is not likely to be met, or unless a recommendation
      of the Merger would constitute a breach of the Traders Board of Directors
      fiduciary duty, and

     

    (B)           the
      shareholders of Traders fail to approve and adopt the Merger at the Shareholders
      Meeting in accordance with the terms hereof; or

    

    
      
        
        

      

      
        38

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    (iii)           the
      occurrence of both paragraphs (A) and (B):

     

    (A)           The
      shareholders of Traders fail to approve and adopt the Merger at the Shareholders
      Meeting in accordance with the terms hereof and,

     

    (B)           pursuant
      to an offer or negotiations initiated or commenced while this Agreement is
      in
      effect, either:  (a) within 6 months following the date hereof,
      Traders announces or enters into a contract for a transaction with any person
      or
      group of persons relating to a merger or other business combination involving
      Traders or the sale or other disposition of a majority of the assets of, or
      equity interest in, Traders other than a transaction pursuant to which Traders
      is the surviving corporation and the shareholders of Traders are the owners
      of a
      majority of the stock of the surviving corporation subsequent to the transaction
      (an “Acquisition Transaction”) and such transaction is consummated within 12
      months following the date hereof; (b) within 12 months following the date
      hereof, a tender or exchange offer is commenced by any person or group of
      persons to acquire equity securities of Traders if, after giving effect to
      such
      offer, such person or group would own or have the right to acquire a majority
      equity interest in Traders (a “Tender Offer”), and such equity interest is
      acquired pursuant to such Tender Offer within 18 months following the date
      hereof.

     

    As
      used in this Section 8.3, the terms
“person” and “group of persons” shall have the meaning set forth in Section
      13(d) of the Securities Exchange Act of 1934.

     

    8.4           Return
      of Information.  In the event of the termination of this Agreement
      for any reason, each party shall deliver to the other party, and shall require
      each of its officers, agents, employees and independent advisers (including
      legal, financial and accounting advisers) to deliver to the other party all
      documents, work papers, and other material obtained from such other party
      relating to the transactions contemplated hereby, whether obtained before or
      after the execution hereof, including information obtained pursuant to Section
      5
      hereof.  Each party agrees that notwithstanding any other provision
      contained in this Agreement, the undertakings and covenants regarding
      confidentiality contained in Section 5 shall survive termination of this
      Agreement.

    
      
        
        

      

      
        39

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      9.     Waiver and Amendment

     

    Except
      with respect to required
      approvals of the applicable governmental authorities and shareholders, Premier
      or Traders by written instrument signed by its President at any time (whether
      before or after approval of the Agreement or the Merger by the shareholders
      of
      Traders), may extend the time for the performance of any of the obligations
      or
      other acts of the other and may waive, with respect to the other:  (i)
      any inaccuracies in the representations or warranties contained in this
      Agreement or in any document delivered pursuant hereto, (ii) compliance
      with any of the covenants, undertakings or agreements, or satisfaction of any
      of
      the conditions to its obligations, contained in this Agreement, and/or (iii)
      the
      performance (including performance to the satisfaction of a party or its
      counsel) of any obligations set out herein.  This Agreement may be
      amended or supplemented at any time by mutual agreement of the parties (except
      that they may not be amended in any material respect after approval by the
      shareholders of the parties without further approval by such
      shareholders).  Any waiver, amendment or supplement hereof shall be in
      writing.  Any waiver by Premier or Traders of a condition to its
      obligation to perform this Agreement and the subsequent Closing hereunder shall
      be without prejudice to the rights or remedies it may have arising out of any
      breach of any representation, warranty, covenant or other agreement
      hereunder.

    

    
      
        
        

      

      
        40

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      10.     Meeting of Shareholders of
      Traders

     

    Traders
      shall take all steps necessary
      to call and hold a meeting of its shareholders in accordance with applicable
      law
      and the Articles of Incorporation and By-laws of Traders as soon as practicable
      for the purpose of submitting this Agreement to its shareholders for their
      ratification, approval and confirmation, and Traders will send to its
      shareholders for purposes of such meeting a proxy statement which will not
      contain any untrue statement of material fact or omit to state any material
      fact
      required to be stated therein or necessary to make the statements contained
      therein not misleading and which will otherwise comply with all applicable
      laws,
      rules and regulations.  Premier agrees to assist Traders in the
      preparation of such proxy statement which will adequately disclose all
      information relevant and material to the Merger and which will comply with
      all
      such laws, rules and regulations.  Premier agrees that the material
      submitted by it to Traders for inclusion in the proxy statement which refers
      to
      the Merger and to Premier and the Premier Subsidiaries will not contain any
      untrue statement of material fact or omit to state any material fact required
      to
      be stated therein or necessary to make the statements contained therein not
      misleading and which will otherwise comply with all applicable laws, rules
      and
      regulations.  Traders will cause such proxy statement to be mailed by
      First Class mail postage prepaid to all of its shareholders at the last known
      address of each such shareholder contained in Traders’ records and in the proxy
      statement and at such meeting of its shareholders Traders will recommend that
      all shareholders vote in favor of this Agreement and the
      Merger.  Notwithstanding the foregoing, Traders may disclose to any or
      all of its shareholders any facts with respect to Premier which Traders
      reasonably deems to be material to such shareholders’ consideration of this
      Agreement and the Merger.

    

    
      
        
        

      

      
        41

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

     

    Section
      11.     Rights of Dissenting
      Shareholders

     

    Any
      shareholder of Traders who properly
      exercises his right to dissent and perfects his appraisal rights under West
      Virginia law shall be entitled, with respect to any shares as to which he or
      she
      shall so dissent, to the fair value of such shares as of the day prior to the
      date on which the shareholders of Traders voted to approve the Merger, excluding
      any appreciation or depreciation in anticipation of the Merger.  The
      procedures to be followed and the rights of such dissenting shareholders shall
      be those set forth in the West Virginia Business Corporation Act, Sections
      31D-13-1301 et seq.

    
      
        
        

      

      
        42

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      12.  Indemnification

    

    12.1           Indemnification.  Following
      the Closing Date and for a period of three (3) years thereafter, Premier shall
      indemnify, defend and hold harmless the present directors, officers and
      employees of Traders and Traders’ Subsidiary Bank (an “Indemnified Party)”
against all costs and expenses (including reasonable attorneys’ fees),
      judgments, fines, losses, claims, damages or liabilities (collectively, “Costs”)
      incurred in connection with any claim, action, suit, proceeding or omissions
      occurring at or prior to the Closing Date (including, but not limited to, the
      transactions contemplated by this Agreement to the fullest extent that Premier
      is permitted or required to indemnify (and advance expenses to) its directors
      and officers under the laws of the State of Kentucky, Premier’s articles of
      incorporation, Premier’s bylaws, and any agreement as in effect as of the date
      hereof.

     

    12.2           Insurance.  For
      a period of six (6) years from the Closing Date, Premier shall use its
      reasonable best efforts to provide director’s and officer’s liability insurance
      for the present and former officers and directors of Traders and Traders’
Subsidiary Bank with respect to claims against such directors and officers
      arising from facts or events which occurred before the Closing Date, which
      insurance shall contain at least the same coverage and amounts, and contain
      terms and conditions no less advantageous, as coverage currently being provided
      by Traders, but in no event shall the premium for said coverage exceed
      $78,000  Alternatively, Traders, at its option, may purchase the
      coverage provided for in this Section 12.2 prior to Closing for a premium not
      to
      exceed $78,000.

     

    12.3           Consolidation
      or Merger.  If Premier or any of its successors or assigns shall
      consolidate with or merge into any other entity and shall not be the continuing
      or surviving entity of such consolidation or merger or shall transfer all or
      substantially all of its assets to any entity, then and in each case, proper
      provision shall be made so that the successors and assigns of Premier shall
      assume the obligations set forth in this Section 12.

     

    12.4           Survival.  Provisions
      of this Section 12 shall survive the Closing Date and are intended to be for
      the
      benefit of, and shall be enforceable by, each Indemnified Party and his or
      her
      heirs and representatives.

     

    12.5           Regulatory
      Constraints.  The indemnification provided for herein is subject
      in all respects to any applicable legal and regulatory limitations and
      prohibitions for indemnification of officers and directors of a financial
      institution; provided, however, that for any indemnification which
      is permissible with the approval of one or more regulatory agencies, Premier
      shall use reasonable efforts to obtain all of such approvals.

    

    
      
        
        

      

      
        43

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      13.   Operations after the Closing Date

     

    13.1           Maintenance
      of Existence.  For a period of at least one year after the Closing
      Date, if and as permitted by regulatory authorities, all locations of Trader’s
      Banking Subsidiary shall utilize signage and a trade name which uses in some
      form the name “Traders”.  For a period of at least two years after the
      Closing Date, if Trader’s Banking Subsidiary is merged with any other subsidiary
      of Premier, Premier shall appoint to the board of directors of the surviving
      entity of such merger such number of directors from the current board of
      directors of Traders as of the date hereof, or if an insufficient number of
      current directors is available, from the Spencer, West Virginia area to ensure
      that at least fifty percent (50%) of the board of directors of such surviving
      entity are from the Spencer, West Virginia area.

     

    13.2           Employees
      of Traders.  Premier shall consider the current employees of Traders
      and Traders’ Subsidiary Bank for employment after the Closing
      Date.  Premier agrees that those employees of Traders and the Traders’
Subsidiary Bank who become employees of Premier or its subsidiaries on the
      Closing Date (Traders employees), while they remain employees of Premier or
      its
      subsidiaries after the Closing Date, will be provided with benefits under
      employee benefit plans during their period of employment which are no less
      favorable in the aggregate than those provided by Premier to similarly situated
      employees of Premier and its subsidiaries, except as provided
      herein.  Premier and Traders agree that all employees of Traders and
      Surviving Bank at the Effective Time shall be considered “at will” employees and
      no employment contracts between Traders or Traders’ Subsidiary Bank and any of
      their employees will extend beyond the Effective Time.  Except as
      hereinafter provided, as of the Closing Date, in the event of termination or
      amendment of any employee benefit and welfare plan in which Traders employees
      are eligible to participate, (i) such plans will take into account for purposes
      of eligibility, participation, vesting and benefit accrual (except that there
      shall not be any benefit accrual for past service under any qualified defined
      benefit pension plans), the service of such employees with Traders or the
      Traders’ Subsidiary Bank as if such service were with Premier and its
      subsidiaries; (ii) provided Traders or the Traders’ Subsidiary Bank employee is
      currently covered under Traders’ medical and/or health plan at Closing Date,
      Traders or the Traders’ Subsidiary Bank employees will not be subject to any
      waiting periods or preexisting condition limitations under any medical, dental
      or health plans of Premier or its subsidiaries in which they are eligible to
      participate and may participate, except that Traders or the Traders’ Subsidiary
      Bank employees hired within 90 days prior to the Closing Date will be subject
      to
      the waiting periods, preexisting  condition limitations, and/or
      eligibility requirements of Premier’s benefit plans calculated using the Traders
      or the Traders’ Subsidiary Bank’s date of hire; (iii) Traders or the Traders’
Subsidiary Bank employees will retain credit for unused sick leave and vacation
      play which has been accrued as of the Closing Date; and (iv) for purposes of
      determining the entitlement of Traders or the Traders’ Subsidiary Bank employees
      to sick leave and vacation pay following the Closing Date, the service of such
      employees with the Traders or the Traders’ Subsidiary Bank shall be treated as
      if such service were with Premier and its
      subsidiaries.  Notwithstanding anything else to the contrary,
      employees of Traders and Traders’ Subsidiary Bank who are eligible for four (4)
      weeks’ paid vacation as of the date hereof shall continue to be eligible to
      receive four (4) weeks’ paid vacation during their employment after the
      Closing.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    13.3           Severance. 
      Premier agrees that each Traders or the Traders’ Subsidiary Bank employee who is
      involuntarily terminated (other than for cause for actions arising after the
      Closing Date) within twelve (12) months of the Closing Date, shall receive,
      upon
      execution of an appropriate full release, a severance payment equal to one
      (1)
      week of base pay (at the rate in effect on the termination date) for each year
      of service at Traders or the Traders’ Subsidiary Bank (with credit for partial
      years of service), with a minimum payment equal to four (4) weeks of base pay
      and a maximum payment equal to eight (8) weeks of base pay, except for employees
      with twenty five (25) or more years of service, whose maximum payment shall
      be
      equal to ten (10) weeks of base pay.

     

    “Cause”
as
      used in this Agreement shall
      mean embezzlement, personal dishonesty causing injury to Traders, the Traders’
Subsidiary Bank, Premier or any Premier State Bank, gross personal misconduct
      which is repetitive and results in a decline in the net worth of Traders, the
      Traders’ Subsidiary Bank, Premier or any Premier State Bank, breach of a
      fiduciary duty involving personal profit, conviction of a felony involving
      personal dishonesty, knowing and willful failure to perform duties, intentional
      injury to Traders, the Traders’ Subsidiary Bank, Premier or any Premier State
      Bank, gross incompetence, or any material breach of any term or condition of
      employment.

    

    13.4           Survival.                      The
      provisions of this Section 13 shall survive the Closing Date.

    
      
        
        

      

      
        45

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    Section
      14.     Miscellaneous

     

    14.1           Public
      Announcements.  Prior to the Closing Date, each party shall use
      its best efforts to consult with the other party with respect to any prepared
      public announcement, statement or release to the press, or statement to a
      competitor, customer or other third party (except to its consultants or to
      the
      regulatory authorities in connection with applications for governmental
      approvals or filings) with respect to this Agreement or the Merger or the
      transactions contemplated hereby or thereby, except as may be necessary, in
      the
      opinion of counsel, to comply with any law, governmental order or
      regulation.

     

    14.2           Brokers
      and Finders.  Traders and Premier represent each to the other that
      this Agreement and the Merger contemplated hereby are the result of direct
      negotiations between them and further, except for fees due Baxter Fentriss
      and
      Company, that neither Traders nor Premier has incurred any liability for any
      broker’s, finder’s or similar fees in connection with this Agreement or the
      Merger.

     

    14.3           Disclosed
      In Writing.  As used in this Agreement, the phrase “disclosed in
      writing” shall mean disclosed or delivered prior to or within 20 days after, the
      date of this Agreement by means of a writing describing in reasonable detail
      the
      matters contained therein and delivered in accordance with Section 14.7
      hereof.  For purposes of this Agreement, anything appearing,
      contained, disclosed or described (i) in any Premier Financial Statement or
      Traders Financial Statement (including the notes thereto), (ii) in any call
      report or similar periodic report furnished to the Federal Deposit Insurance
      Corporation, the Office of the Comptroller of the Currency, the Federal Reserve
      Board or the West Virginia Department of Banking, or (iii) in any periodic
      report or other document filed with the Securities and Exchange Commission
      (including, but not limited to, Forms 8-K, Forms 10-K, Forms 10-Q, Annual
      Reports, and proxy statements) by either of Premier or Traders, shall be deemed
      to be previously disclosed.

     

    14.4           Entire
      Agreement.  This Agreement embodies the entire agreement among the
      parties and there have been no agreements, representations, or warranties among
      the parties other than those set forth herein or those provided for
      herein.

     

    14.5           Counterparts.  This
      Agreement has been executed in a number of identical counterparts, and each
      such
      counterpart shall be deemed to be an original instrument, but in making proof
      of
      this Agreement, it shall not be necessary to produce or account for more than
      one such counterpart.

     

    14.6           Invalid
      Provisions.  The invalidity or unenforceability of any particular
      provision of this Agreement shall not affect the other provisions hereof, and
      this Agreement shall be construed in all respects as if such invalid or
      unenforceable provision were omitted.

     

    14.7           Notices.  Any
      notices or other communication required or permitted hereunder shall be
      sufficiently given if sent by registered or certified mail, postage prepaid,
      addressed as follows:

    

    
      
        
        

      

      
        46

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    TO
      TRADERS:

    Gary
      L. Brown, President and Chief Executive Officer

    Traders
      Bankshares, Inc.

    303
      Main Street

    Spencer,
      West Virginia    25276

    

    with
      a copy
      to:              Charles
      D. Dunbar, Esquire

    Jackson
      Kelly PLLC

    1600
      Laidley Tower (Zip
      25301)

    P.O.
      Box 553

    Charleston,
      West Virginia
      25322

    

    TO
      PREMIER:             Robert
      Walker, President and Chief Executive Officer

    Premier
      Financial Bancorp,
      Inc.

    2883
      Fifth Avenue

    Huntington,
      West Virginia
      25301

    

    with
      a copy
      to:              Thomas
      J. Murray, Esquire

    Daniel
      J. Konrad, Esquire

    Huddleston
      Bolen LLP

    P.
      O. Box 2185

    Huntington,
      West
      Virginia  25722

    

    or
      such other addresses as shall be furnished in writing by either party to the
      other party.  Any such notice or communication shall be deemed to have
      been given as of the date so mailed.

     

    14.8           Headings.  The
      captions contained in this Agreement are inserted solely for convenience of
      reference and shall not affect the meaning or interpretation of this
      Agreement.

     

    14.9           Expenses.  Each
      of the parties hereto will pay its own fees and expenses incurred in connection
      with the transactions contemplated by this Agreement, except as otherwise
      specifically provided herein.

     

    14.10                      Governing
      Law.  This Agreement shall be governed by and construed in
      accordance with the laws of the State of West Virginia and the United States
      of
      America.

     

    14.11                      No
      Assignment.  This Agreement shall be binding upon and shall inure
      to the benefit of the parties hereto and their respective successors and
      assigns; provided, however, that this Agreement may not be assigned by either
      party without the written consent of the other party.

     

    14.12                      Effectiveness
      of Agreement.  This Agreement shall become effective and binding
      as to Premier and Traders when one or more counterparts shall have been signed
      and delivered by Premier and Traders, and shall become effective and binding
      as
      to Interim Company when Interim Company has executed an Adoption Agreement
      in
      substantially the form attached hereto as Exhibit “A”.

    

    
      
        
        

      

      
        47

        
          

        

      

      
        
          Exhibit
            10.1 -
            continued

        

      

       

    

    14.13                      Further
      Acts.  Premier and Traders each agree to execute and deliver on or
      before the Closing Date such other documents, certificates, agreements, or
      other
      writings and to take such other actions as may be necessary or desirable in
      order to consummate or implement expeditiously the transactions contemplated
      by
      this Agreement.

     

    14.14                      Representations
      and Warranties Not to Survive.  Except for the representations and
      warranties contained in Sections 5, 8.3, 12, 13, 14.9 and 14.15, the
      representations and warranties included or provided in this Agreement shall
      not
      survive the Effective Time.

     

    14.15                      Individual
      Directors.  The several Directors of Traders who are signatories
      to this Agreement have joined into this Agreement to evidence their assent
      hereto, and for the express purpose of binding themselves, and each of them,
      to
      the fulfillment of each of the terms and conditions hereof by the respective
      parties and to the diligent, expeditious and good faith pursuit, and timely
      consummation, of the transactions herein contemplated.  Each of the
      Directors hereby agrees to cooperate fully with the parties, their assistants
      and agents, in consummating the Merger, to vote appropriately upon all corporate
      resolutions of the board of directors toward that end, and to take no action
      inconsistent with the purposes of this Agreement or the consummation of the
      Merger.  Nothing in this Agreement shall be construed to limit or
      affect the fiduciary obligation of Traders’ officers and directors to Traders
      shareholders or the ability of any director to vote his or her shares of common
      stock of the Traders.

     

    IN
      WITNESS WHEREOF, Premier and Traders
      have caused this Agreement to be executed by their duly authorized officers
      and
      their corporate seals to be hereunto affixed as of the date first above written,
      pursuant to resolutions adopted by the boards of directors of Premier and
      Traders, acting by a majority thereof, and WITNESS also the signatures hereto
      of
      a majority of the board of directors of Traders.

    

    PREMIER
      FINANCIAL BANCORP,
      INC.

    

    By
_/s/
      Robert W.
      Walker______________________

    Robert
      Walker, President and Chief
      Executive Officer

    

    ATTEST:

    

    _/s/
      Toney K. Adkins________________

    Toney
      K. Adkins,

    Assistant
      Secretary

    
      
          

      

      
        48

        
          

        

      

      
        Exhibit
          10.1 -
          continued

      

    

    TRADERS
      BANKSHARES, INC.

    

    By
_/s/
      Gary L.
      Brown______________________

    Gary
      L. Brown, President
      and

    Chief
      Executive Officer

    

    ATTEST:

    _/s/
      David F. Boothe____________________

    David
      Boothe, Secretary

    
 

    The
      following Directors of Traders

    Bankshares,
      Inc. do hereby join in the

    foregoing
      Agreement to evidence their consent

    and
      agreement thereto:

    

    _/s/
      C. I. McKown, II___________________

    _C.
      I. McKown, II____________, Director

    

    

    _/s/
      John M. Denbigh ___________________

    _John
      M. Denbigh ____________, Director

    
 

    _/s/
      Doug Bentz        
___________________

    _Doug
      Bentz     ______________, Director

    

    

    _/s/
      Wayne Harris____        
_____________

    _Wayne
      Harris_     ___________, Director

    

    

    _/s/
      Samuel P.
      Sommrville_                         
__

    _Samuel
      P. Sommerville___ ____, Director

    

    

    _/s/
      Fred C. Hardman___________________

    _Fred
      C. Hardman___________, Director

    

    

    _/s/
      Kay Cottrell_______________________

    _Kay
      Cottrell_______________, Director

    

    

    _/s/
      Gary L. Brown_____________________

    _Gary
      L. Brown_____________, Director

    

    

     

     

    
      49exv4w1

 

Exhibit 4.1

NORDSTROM, INC.,

as Issuer

to

WELLS FARGO BANK,  NATIONAL ASSOCIATION,

as Trustee

 

INDENTURE

 

Dated as of [                       ]

 

Debt Securities

 

 

Reconciliation and tie between

Trust Indenture Act of 1939 (the “Trust Indenture Act”)

and Indenture

	 	 	 	 	 
	Trust Indenture	 	 	 
	Act Section	 	Indenture Section	 
	§310(a)(1)
	 	 	6.7	 
	 
	 	 	 	 
	(a)(2)
	 	 	6.7	 
	 
	 	 	 	 
	(b)
	 	 	6.8	 
	 
	 	 	 	 
	§312(a)
	 	 	7.1	 
	 
	 	 	 	 
	(b)
	 	 	7.2	 
	 
	
(c)
	 	 	7.2	 
	 
	 	 	 	 
	§313(a)
	 	 	7.3	 
	 
	 	 	 	 
	(b)(2)
	 	 	7.3	 
	 
	 	 	 	 
	(c)
	 	 	7.3	 
	 
	 	 	 	 
	(d)
	 	 	7.3	 
	 
	 	 	 	 
	§314(a)
	 	 	7.4	 
	 
	 	 	 	 
	(c)(1)
	 	 	1.2	 
	 
	 	 	 	 
	(c)(2)
	 	 	1.2	 
	 
	 	 	 	 
	(e)
	 	 	1.2	 
	 
	 	 	 	 
	(f)
	 	 	1.2	 
	 
	 	 	 	 
	§316(a) (last sentence)
	 	 	1.1	 
	 
	 	 	 	 
	(a)(1)(A)
	 	 	5.12	 
	 
	 	 	 	 
	(a)(1)(B)
	 	 	5.13	 
	 
	 	 	 	 
	(b)
	 	 	5.8	 
	 
	 	 	 	 
	§317(a)(1)
	 	 	5.3	 
	 
	 	 	 	 
	(a)(2)
	 	 	5.4	 
	 
	 	 	 	 
	(b)
	 	 	10.3	 
	 
	 	 	 	 
	§318(a)
	 	 	1.8	 
	 
	 	 	 	 

 

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1 Definitions and Other Provisions of General Application	 	 	 1	 
	 
	Section 1.1.
	 	Definitions	 	 	1	 
	Section 1.2.
	 	Compliance Certificates and Opinions	 	 	11	 
	Section 1.3.
	 	Form of Documents Delivered to Trustee	 	 	11	 
	Section 1.4.
	 	Acts of Holders	 	 	12	 
	Section 1.5.
	 	Notices, etc. to Trustee and Company	 	 	14	 
	Section 1.6.
	 	Notice to Holders of Securities; Waiver	 	 	14	 
	Section 1.7.
	 	Language of Notices	 	 	15	 
	Section 1.8.
	 	Conflict with Trust Indenture Act	 	 	15	 
	Section 1.9.
	 	Effect of Headings and Table of Contents	 	 	15	 
	Section 1.10.
	 	Successors and Assigns	 	 	15	 
	Section 1.11.
	 	Separability Clause	 	 	16	 
	Section 1.12.
	 	Benefits of Indenture	 	 	16	 
	Section 1.13.
	 	Governing Law	 	 	16	 
	Section 1.14.
	 	Legal Holidays	 	 	16	 
	Section 1.15.
	 	Counterparts	 	 	16	 
	Section 1.16.
	 	Judgment Currency	 	 	16	 
	Section 1.17.
	 	No Security Interest Created	 	 	17	 
	Section 1.18.
	 	Limitation on Individual Liability	 	 	17	 
	 
	ARTICLE 2 Securities Forms	 	 	18	 
	 
	Section 2.1.
	 	Forms Generally	 	 	18	 
	Section 2.2.
	 	Form of Trustee’s Certificate of Authentication	 	 	18	 
	Section 2.3.
	 	Securities in Global Form	 	 	18	 
	 
	ARTICLE 3 The Securities	 	 	19	 
	 
	Section 3.1.
	 	Amount Unlimited; Issuable in Series	 	 	19	 
	Section 3.2.
	 	Currency; Denominations	 	 	23	 
	Section 3.3.
	 	Execution, Authentication, Delivery and Dating	 	 	23	 
	Section 3.4.
	 	Temporary Securities	 	 	25	 
	Section 3.5.
	 	Registration, Transfer and Exchange	 	 	26	 
	Section 3.6.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	29	 
	Section 3.7.
	 	Payment of Interest and Certain
Additional Amounts; Rights to Interest and Certain Additional Amounts Preserved	 	 	30	 
	Section 3.8.
	 	Persons Deemed Owners	 	 	32	 
	Section 3.9.
	 	Cancellation	 	 	33	 
	Section 3.10.
	 	Computation of Interest	 	 	33	 
	 
	ARTICLE 4 Satisfaction and Discharge of Indenture	 	 	33	 

i

 

	 	 	 	 	 	 	 
	Section 4.1.
	 	Satisfaction and Discharge	 	 	33	 
	Section 4.2.
	 	Defeasance and Covenant Defeasance	 	 	35	 
	Section 4.3.
	 	Application of Trust Money	 	 	39	 
	 
	ARTICLE 5 Remedies	 	 	39	 
	 
	Section 5.1.
	 	Events of Default	 	 	39	 
	Section 5.2.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	41	 
	Section 5.3.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	42	 
	Section 5.4.
	 	Trustee May File Proofs of Claim	 	 	43	 
	Section 5.5.
	 	Trustee May Enforce Claims without Possession of Securities or Coupons	 	 	43	 
	Section 5.6.
	 	Application of Money Collected	 	 	44	 
	Section 5.7.
	 	Limitations on Suits	 	 	44	 
	Section 5.8.
	 	Unconditional Right of Holders to Receive Principal and any Premium, Interest and Additional Amounts	 	 	45	 
	Section 5.9.
	 	Restoration of Rights and Remedies	 	 	45	 
	Section 5.10.
	 	Rights and Remedies Cumulative	 	 	45	 
	Section 5.11.
	 	Delay or Omission Not Waiver	 	 	45	 
	Section 5.12.
	 	Control by Holders of Securities	 	 	46	 
	Section 5.13.
	 	Waiver of Past Defaults	 	 	46	 
	Section 5.14.
	 	Waiver of Usury, Stay or Extension Laws	 	 	47	 
	Section 5.15.
	 	Undertaking for Costs	 	 	47	 
	 
	ARTICLE 6 The Trustee	 	 	47	 
	 
	Section 6.1.
	 	Certain Rights of Trustee	 	 	47	 
	Section 6.2.
	 	Notice of Defaults	 	 	49	 
	Section 6.3.
	 	Not Responsible for Recitals or Issuance of Securities	 	 	49	 
	Section 6.4.
	 	May Hold Securities	 	 	50	 
	Section 6.5.
	 	Money Held in Trust	 	 	50	 
	Section 6.6.
	 	Compensation and Reimbursement	 	 	50	 
	Section 6.7.
	 	Corporate Trustee Required; Eligibility	 	 	51	 
	Section 6.8.
	 	Resignation and Removal; Appointment of Successor	 	 	51	 
	Section 6.9.
	 	Acceptance of Appointment by Successor	 	 	53	 
	Section 6.10.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	54	 
	Section 6.11.
	 	Appointment of Authenticating Agent	 	 	54	 
	 
	ARTICLE 7 Holders Lists and Reports by Trustee and Company	 	 	56	 
	 
	Section 7.1.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	56	 
	Section 7.2.
	 	Preservation of Information; Communications to Holders	 	 	57	 
	Section 7.3.
	 	Reports by Trustee	 	 	57	 
	Section 7.4.
	 	Reports by Company	 	 	57	 

 ii 

 

	 	 	 	 	 	 	 
	ARTICLE 8 Consolidation, Amalgamation, Merger and Sales	 	 	58	 
	 
	Section 8.1.
	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	58	 
	Section 8.2.
	 	Successor Person Substituted for Company	 	 	59	 
	 
	ARTICLE 9 Supplemental Indentures	 	 	59	 
	 
	Section 9.1.
	 	Supplemental Indentures without Consent of Holders	 	 	59	 
	Section 9.2.
	 	Supplemental Indentures with Consent of Holders	 	 	60	 
	Section 9.3.
	 	Execution of Supplemental Indentures	 	 	62	 
	Section 9.4.
	 	Effect of Supplemental Indentures	 	 	62	 
	Section 9.5.
	 	Reference in Securities to Supplemental Indentures	 	 	62	 
	Section 9.6.
	 	Conformity with Trust Indenture Act	 	 	62	 
	Section 9.7.
	 	Notice of Supplemental Indenture	 	 	62	 
	 
	ARTICLE 10 Covenants	 	 	63	 
	 
	Section 10.1.
	 	Payment of Principal, any Premium, Interest and Additional Amounts	 	 	63	 
	Section 10.2.
	 	Maintenance of Office or Agency	 	 	63	 
	Section 10.3.
	 	Money for Securities Payments to Be Held in Trust	 	 	64	 
	Section 10.4.
	 	Additional Amounts	 	 	65	 
	Section 10.5.
	 	Limitation on Liens	 	 	66	 
	Section 10.6.
	 	Limitation on Sale and Leaseback	 	 	67	 
	Section 10.7.
	 	Corporate Existence	 	 	68	 
	Section 10.8.
	 	Waiver of Certain Covenants	 	 	68	 
	Section 10.9.
	 	Company Statement as to Compliance; Notice of Certain Defaults	 	 	69	 
	 
	ARTICLE 11 Redemption of Securities	 	 	69	 
	 
	Section 11.1.
	 	Applicability of Article	 	 	69	 
	Section 11.2.
	 	Election to Redeem; Notice to Trustee	 	 	69	 
	Section 11.3.
	 	Selection by Trustee of Securities to be Redeemed	 	 	70	 
	Section 11.4.
	 	Notice of Redemption	 	 	70	 
	Section 11.5.
	 	Deposit of Redemption Price	 	 	72	 
	Section 11.6.
	 	Securities Payable on Redemption Date	 	 	72	 
	Section 11.7.
	 	Securities Redeemed in Part	 	 	73	 
	 
	ARTICLE 12 Sinking Funds	 	 	73	 
	 
	Section 12.1.
	 	Applicability of Article	 	 	73	 
	Section 12.2.
	 	Satisfaction of Sinking Fund Payments with Securities	 	 	73	 
	Section 12.3.
	 	Redemption of Securities for Sinking Fund	 	 	74	 
	 
	ARTICLE 13 Repayment at the Option of Holders	 	 	74	 

 iii 

 

	 	 	 	 	 	 	 
	Section 13.1.
	 	Applicability of Article	 	 	74	 
	 
	ARTICLE 14 Securities in Foreign Currencies	 	 	75	 
	 
	Section 14.1.
	 	Applicability of Article	 	 	75	 
	 
	ARTICLE 15 Meetings of Holders of Securities	 	 	75	 
	 
	Section 15.1.
	 	Purposes for Which Meetings May Be Called	 	 	75	 
	Section 15.2.
	 	Call, Notice and Place of Meetings	 	 	75	 
	Section 15.3.
	 	Persons Entitled to Vote at Meetings	 	 	76	 
	Section 15.4.
	 	Quorum; Action	 	 	76	 
	Section 15.5.
	 	Determination of Voting Rights; Conduct and Adjournment of Meetings	 	 	77	 
	Section 15.6.
	 	Counting Votes and Recording Action of Meetings	 	 	78	 

 iv 

 

     INDENTURE, dated as of [           ], 2007 (the “Indenture”), between NORDSTROM, INC.,
a corporation duly organized and existing under the laws of the State of Washington (hereinafter
called the “Company”), having its principal executive office located at 1617 Sixth Avenue,
Suite 500, Seattle, Washington 98101, and WELLS FARGO BANK,  NATIONAL ASSOCIATION, a national
banking association, duly organized and existing under the laws of the United States (hereinafter
called the “Trustee”), having its Corporate Trust
Office located at 625 Marquette Avenue, N9311-110, Minneapolis, MN
55479.

Recitals

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

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

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

     Now, Therefore, This Indenture Witnesseth:

     For and in consideration of the premises and the purchase from time to time of the Securities
by the Holders (as herein defined) thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders of the Securities of any series thereof and any Coupons (as
herein defined) as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

     Section 1.1. Definitions.

     Except as otherwise expressly provided in or pursuant to this Indenture or unless the context
otherwise requires, for all purposes of this Indenture:

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

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

 1 

 

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

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

     (5) the word “or” is always used inclusively (for example, the phrase “A or B” means “A
or B or both”, not “either A or B but not both”).

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

     “Act”, when used with respect to any Holders, has the meaning specified in Section
1.4.

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

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

     “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time
of determination, the present value (discounted at the imputed rate of interest of such transaction
determined in accordance with generally accepted accounting principles) of the obligation of the
lessee for net rental payments during the remaining term of the lease included in such Sale and
Leaseback Transaction (including any period for which such lease has been extended or may, at the
option of the lessor, be extended).

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

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

 2 

 

different
newspapers in the same city meeting the foregoing requirements and in each case on any day that is
a Business Day in the place of publication.

     “Authorized Officer” means, when used with respect to the Company, the Chairman of the
Board of Directors, a Vice Chairman, a President, any Vice President, the Chief Financial Officer,
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company.

     “Bearer Security” means any Security in the form established pursuant to Section 2.1
which is payable to bearer.

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

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

     “Business Day”, with respect to any Place of Payment or other location, means, unless
otherwise specified with respect to any Securities pursuant to Section 3.1, any day other than a
Saturday, Sunday or other day on which banking institutions in such Place of Payment or other
location are authorized or obligated by law, regulation or executive order to close.

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

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

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

     “Company Request” and “Company Order” mean, respectively, a written request or
order, as the case may be, signed in the name of the Company by the Chairman of the Board of
Directors, a President or a Vice President, and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary of the Company, and delivered to the Trustee.

     “Consolidated Net Assets” means the aggregate amount of assets (less applicable
reserves and other properly deductible items) after deducting therefrom (i) all current liabilities
(excluding

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any indebtedness for money borrowed having a maturity of less than 12 months from the
date of the most recent consolidated balance sheet of the Company but which by its terms is
renewable or extendable beyond 12 months from such date at the option of the borrower) and (ii) all
investments in Subsidiaries other than Restricted Subsidiaries, all as set forth on the most recent
consolidated balance sheet of the Company and computed in accordance with generally accepted
accounting principles.

     “Conversion Event” means the cessation of use of a Foreign Currency both by the
government of the country or the confederation which issued such Foreign Currency and for the
settlement of transactions by a central bank or other public institutions of or within the
international banking community or any currency unit or composite currency for the purposes for
which it was established.

     “Corporate
Trust Office” means the principal office of the Trustee in
the City of Minneapolis,
State of Minnesota, at which at any particular time its corporate trust business shall be administered,
which office at the date of the execution of this Indenture is
located at 625 Marquette Avenue, N9311-110, Minneapolis, MN 55479, except that with
respect to the presentation of Securities for payment or for registration of transfer or exchange
and the location of the Securities Registrar, such term means the office or agency of the Trustee
at which, at any particular time, its corporate agency business shall be conducted.

     “Corporation” includes corporations and limited liability companies and, except for
purposes of Article Eight, associations, companies and business trusts.

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

     “Currency”, with respect to any payment, deposit or other transfer in respect of the
principal of or any premium or interest on or any Additional Amounts with respect to any Security,
means Dollars or the Foreign Currency, as the case may be, in which such payment, deposit or other
transfer is required to be made by or pursuant to the terms hereof or such Security and, with
respect to any other payment, deposit or transfer pursuant to or contemplated by the terms hereof
or such Security, means Dollars.

     “CUSIP number” means the alphanumeric designation assigned to a Security by Standard &
Poor’s Rating Service, CUSIP Service Bureau.

     “Debt” has the meaning specified in Section 10.5.

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

     “Dollars” or “$” means a dollar or other equivalent unit of legal tender for
payment of public or private debts in the United States of America.

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

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

     “Foreign Currency” means any currency, currency unit or composite currency, including,
without limitation, the Euro, issued by the government of one or more countries other than the

 4 

 

United States of America or by any recognized confederation or association of such governments.

     “Funded Debt” means Debt which matures more than one year from the date of creation,
or which is extendable or renewable at the sole option of the obligor so that it may become payable
more than one year from such date or which is classified, in accordance with U.S. generally
accepted accounting principles, as long-term debt on the consolidated balance sheet for the
most-recently ended fiscal quarter (or if incurred subsequent to the date of such balance sheet,
would have been so classified) of the person for which the determination is being made. Funded
Debt does not include (1) obligations created pursuant to leases, (2) any Debt or portion thereof
maturing by its terms within one year from the time of any computation of the amount of outstanding
Funded Debt unless such debt shall be extendable or renewable at the sole option of the obligor in
such manner that it may become payable more than one year from such time, or (3) any Debt for the
payment or redemption of which money in the necessary amount shall have deposited in trust either
at or before the maturity date thereof.

     “Government Obligations” means securities which are (i) direct obligations of the
United States of America or the other government or governments in the confederation which issued
the Foreign Currency in which the principal of or any premium or interest on such Security or any Additional Amounts
in respect thereof shall be payable, in each case where the payment or payments thereunder are
supported by the full faith and credit of such government or governments 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 other government or governments, in each case where the timely payment or
payments thereunder are unconditionally guaranteed as a full faith and credit obligation by the
United States of America or such other government or governments, and which, in the case of (i) or
(ii), are not callable or redeemable at the option of the issuer or issuers thereof, and shall also
include a depositary 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 or other amount
with respect to any such Government Obligation held by such custodian for the account of the holder
of a depositary 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 depositary receipt from any
amount received by the custodian in respect of the Government Obligation or the specific payment of
interest on or principal of or other amount with respect to the Government Obligation evidenced by
such depositary receipt.

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

     “Indenture” means this instrument as it may from time to time be supplemented or
amended by one or more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and, with respect to any Security, by the terms and provisions of such Security
and any Coupon appertaining thereto established pursuant to Section 3.1 (as such terms and
provisions may be amended pursuant to the applicable provisions hereof).

 5 

 

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

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

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

     “Judgment Currency” has the meaning specified in Section 1.16.

     “Legal Holidays” has the meaning specified in Section 1.14.

     “Maturity”, with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as provided in or pursuant to
this Indenture, whether at the Stated Maturity or by declaration of acceleration, notice of
redemption or repurchase, notice of option to elect repayment or otherwise, and includes the
Redemption Date.

     “Mortgage” means with respect to any property or assets, any mortgage, deed of trust,
pledge, hypothecation, assignment, security interest, lien, encumbrance, or other security
arrangement of any kind or nature whatsoever on or with respect to such property or assets
(including any conditional sale or other title retention agreement having substantially the same
economic effect as the foregoing).

     “New York Banking Day” has the meaning specified in Section 1.16.

     “Office” or “Agency”, with respect to any Securities, means an office or
agency of the Company maintained or designated in a Place of Payment for such Securities pursuant
to Section 10.2 or any other office or agency of the Company maintained or designated for such
Securities pursuant to Section 10.2 or, to the extent designated or required by Section 10.2 in
lieu of such office or agency, the Corporate Trust Office of the Trustee.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a
President or a Vice President, and by the Chief Financial Officer, the Treasurer, an Assistant

 6 

 

Treasurer, the Secretary or an Assistant Secretary of the Company, that complies with the
requirements of Section 314(e) of the Trust Indenture Act and is delivered to the Trustee.

     “Operating Property” means any real property or equipment located within the United
States and owned by, or leased to, the Company or any of its Subsidiaries that has a net book value
(after deduction of accumulated depreciation) in excess of 1.0% of Consolidated Net Assets.

     “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or
counsel for the Company or other counsel who shall be reasonably acceptable to the Trustee, that,
if required by the Trust Indenture Act, complies with the requirements of Section 314(e) of the
Trust Indenture Act.

     “Original Issue Discount Security” means a Security issued pursuant to this Indenture
which provides for declaration of an amount less than the principal face amount thereof to be due
and payable upon acceleration pursuant to Section 5.2.

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

	 	(a)	 	any such Security theretofore cancelled by the Trustee or the
Security Registrar or delivered to the Trustee or the Security Registrar for
cancellation;
	 
	 	(b)	 	any such Security for whose payment at the Maturity thereof
money in the necessary amount has been theretofore deposited pursuant hereto
(other than pursuant to Section 4.2) with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent) for the Holders of
such Securities and any Coupons appertaining thereto, provided that, if such
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee
has been made;
	 
	 	(c)	 	any such Security with respect to which the Company has
effected defeasance pursuant to the terms hereof, except to the extent provided
in Section 4.2;
	 
	 	(d)	 	any such Security which has been paid pursuant to Section 3.6
or in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, unless there shall have been
presented to the Trustee proof satisfactory to it that such Security is held by
a bona fide purchaser in whose hands such Security is a valid obligation of the
Company; and

7

 

	 	(e)	 	any such Security converted or exchanged as contemplated by
this Indenture into Common Stock or other securities, if the terms of such
Security provide for such conversion or exchange pursuant to Section 3.1;

provided, however, that in determining whether the Holders of the requisite principal amount of
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or are present at a meeting of Holders of Securities for quorum purposes, (i) the
principal amount of an Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes shall be equal to the
amount of the principal thereof that pursuant to the terms of such Original Issue Discount Security
would be declared (or shall have been declared to be) due and payable upon a declaration of
acceleration thereof pursuant to Section 5.2 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such determination and that
shall be deemed Outstanding for such purposes shall be equal to the principal face amount of such
Indexed Security at original issuance, unless otherwise provided in or pursuant to this Indenture,
and (iii) the principal amount of a Security denominated in a Foreign Currency shall be the Dollar
equivalent, determined on the date of original issuance of such Security, of the principal amount
(or, in the case of an Original Issue Discount Security, the Dollar equivalent on the date of
original issuance of such Security of the amount determined as provided in (i) above) of such
Security, and (iv) Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor, shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in making any such
determination or relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Securities so owned which shall have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee (A) the
pledgee’s right so to act with respect to such Securities and (B) that the pledgee is not the
Company or any other obligor upon the Securities or any Coupons appertaining thereto or an
Affiliate of the Company or such other obligor.

     “Paying Agent” means any Person authorized by the Company to pay the principal of, or
any premium or interest on, or any Additional Amounts with respect to, any Security or any Coupon
on behalf of the Company.

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

     “Place of Payment”, with respect to any Security, means the place or places where the
principal of, or any premium or interest on, or any Additional Amounts with respect to such
Security are payable as provided in or pursuant to this Indenture or such Security.

     “Predecessor Security” of any particular Security means every previous Security
evidencing all or a portion of the same indebtedness as that evidenced by such particular Security;
and, for the purposes of this definition, any Security authenticated and delivered under Section
3.6 in exchange for or in lieu of a lost, destroyed, mutilated or stolen Security or any

8

 

Security to which a mutilated, destroyed, lost or stolen Coupon appertains shall be deemed to
evidence the same indebtedness as the lost, destroyed, mutilated or stolen Security or the Security
to which a mutilated, destroyed, lost or stolen Coupon appertains.

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

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

     “Registered Security” means any Security established pursuant to Section 2.1 which is
registered in a Security Register.

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

     “Required Currency” has the meaning specified in Section 1.16.

     “Responsible Officer” means any vice president, any assistant vice president, the
secretary, any assistant secretary, the treasurer, any assistant treasurer, or any trust officer or
any other officer of the Trustee customarily performing functions similar to those performed by any
of the above designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his or her knowledge of and
familiarity with the particular subject.

     “Restricted Subsidiary” means any Subsidiary of the Company that owns any Operating
Property.

     “Sale and Leaseback Transaction” has the meaning specified in Section 10.6.

     “Security” or “Securities” means any note or notes, bond or bonds, debenture
or debentures, or any other evidences of indebtedness, as the case may be, authenticated and
delivered under this Indenture; provided, however, that, if at any time there is more than one
Person acting as Trustee under this Indenture, “Securities”, with respect to any such Person, shall
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 3.5.

     “Senior Funded Debt” means all Funded Debt of the Company or any Person (except Funded
Debt, the payment of which is subordinated to the payment of the Securities).

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

9

 

     “Stated Maturity”, with respect to any Security or any installment of principal
thereof or interest thereon or any Additional Amounts with respect thereto, means the date
established by or pursuant to this Indenture or such Security as the fixed date on which the
principal of such Security or such installment of principal or interest is, or such Additional
Amounts are, due and payable.

     “Subsidiary” means any Corporation of which at least a majority of the outstanding
stock having by the terms thereof ordinary voting power to elect a majority of the directors,
managers or trustees of such Corporation, irrespective of whether or not at the time stock of any
other class or classes of such Corporation shall have or might have voting power by reason of the
happening of any contingency, is at the time, directly or indirectly, owned or controlled by the
Company or by one or more Subsidiaries thereof, or by the Company and one or more Subsidiaries
thereof.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, and any
reference herein to the Trust Indenture Act or a particular provision thereof shall mean such Act
or provision, as the case may be, as amended or replaced from time to time or as supplemented from
time to time by rules or regulations adopted by the Commission under or in furtherance of the
purposes of such Act or provision, as the case may be.

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

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

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

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

10

 

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

     Section 1.2. Compliance Certificates and Opinions.

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

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture 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;

     (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 1.3. Form of Documents Delivered to Trustee.

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

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon an Opinion of Counsel, provided that such officer, after reasonable inquiry,
has no reason to believe and does not believe that the Opinion of Counsel with respect to the
matters upon which his certificate or opinion is based is erroneous. Any such Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or

11

 

representations by, an officer or officers of the Company stating that the information with
respect to such factual matters is in the possession of the Company, provided that such counsel,
after reasonable inquiry, has no reason to believe and does not believe that the certificate or
opinion or representations with respect to such matters are erroneous.

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

     Section 1.4. Acts of Holders.

     (1) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by or pursuant to this Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing. If, but only if, Securities of a series are
issuable as Bearer Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided in or pursuant to this Indenture to be given or taken by Holders of
Securities of such series may, alternatively, be embodied in and evidenced by the record of Holders
of Securities of such series voting in favor thereof, either in person or by proxies duly appointed
in writing, at any meeting of Holders of Securities of such series duly called and held in
accordance with the provisions of Article 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 sufficient for any purpose of this Indenture and (subject to
Section 315 of the Trust Indenture Act) conclusive in favor of the Trustee and the Company and any
agent of the Trustee or the Company, if made in the manner provided in this Section. The record of
any meeting of Holders of Securities shall be proved in the manner provided in Section 15.6.

     Without limiting the generality of this Section 1.4, unless otherwise provided in or pursuant
to this Indenture, a Holder, including a U.S. Depositary that is a Holder of a global Security, may
make, give or take, by a proxy or proxies duly appointed in writing, any request, demand,
authorization, direction, notice, consent, waiver or other Act provided in or pursuant to this
Indenture to be made, given or taken by Holders, and a U.S. Depositary that is a Holder of a global
Security may provide its proxy or proxies to the beneficial owners of interests in any such global
Security through such U.S. Depositary’s standing instructions and customary practices.

     The Company shall fix a record date for the purpose of determining the Persons who are
beneficial owners of interest in any permanent global Security held by a U.S. Depositary entitled
under the procedures of such U.S. Depositary to make, give or take, by a proxy or proxies duly
appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or
other Act provided in or pursuant to this Indenture to be made, given or taken by Holders. If

12

 

such a record date is fixed, the Holders on such record date or their duly appointed proxy or
proxies, and only such Persons, shall be entitled to make, give or take such request, demand,
authorization, direction, notice, consent, waiver or other Act, whether or not such Holders remain
Holders after such record date. No such request, demand, authorization, direction, notice,
consent, waiver or other Act shall be valid or effective if made, given or taken more than 90 days
after such record date.

     (2) The fact and date of the execution by any Person of any such instrument or writing
referred to in this Section 1.4 may be proved in any reasonable manner; and the Trustee may in any
instance require further proof with respect to any of the matters referred to in this Section.

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

     (4) The ownership, principal amount and serial numbers of Bearer Securities held by any
Person, and the date of the commencement and the date of the termination of holding the same, 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 reasonably acceptable to the Company,
wherever situated, if such certificate shall be deemed by the Company and 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 (i) another certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is produced, or (ii)
such Bearer Security is produced to the Trustee by some other Person, or (iii) such Bearer Security
is surrendered in exchange for a Registered Security, or (iv) such Bearer Security is no longer
Outstanding. The ownership, principal amount and serial numbers of Bearer Securities held by the
Person so executing such instrument or writing and the date of the commencement and the date of the
termination of holding the same may also be proved in any other manner which the Company and the
Trustee deem sufficient.

     (5) If the Company shall solicit from the Holders of any Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the Company may at its
option (but is not obligated to), by Board Resolution, fix in advance a record date for the
determination of Holders of Registered Securities entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act. If such a record date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other Act may be given
before or after such record date, but only the Holders of Registered Securities of record at the
close of business on such record date shall be deemed to be Holders for the purpose 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

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of Registered Securities shall be deemed effective unless it shall become effective pursuant
to the provisions of this Indenture not later than six months after the record date.

     (6) Any request, demand, authorization, direction, notice, consent, waiver or other Act by the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done or suffered to be done by the Trustee, any Security Registrar,
any Paying Agent or the Company in reliance thereon, whether or not notation of such Act is made
upon such Security.

     Section 1.5. Notices, etc. to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver or other 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 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 any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to the Company addressed to the attention of its Treasurer, at the address
of its principal office specified in the first paragraph of this instrument or at any other
address previously furnished in writing to the Trustee by the Company.

     Section 1.6. Notice to Holders of Securities; Waiver.

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

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

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

     In any case where notice to Holders of Registered Securities is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder of a

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Registered Security shall affect the sufficiency of such notice with respect to other Holders
of Registered Securities or the sufficiency of any notice to Holders of Bearer Securities given as
provided herein. Any notice which is mailed in the manner herein provided shall be conclusively
presumed to have been duly given or provided. In the case by reason of the suspension of regular
mail service or by reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made by any reasonable alternate
method of delivery, with notice of such to be provided to the Trustee shall constitute a
sufficient notification for every purpose hereunder.

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

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders of Securities shall be filed
with the Trustee, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

     Section 1.7. Language of Notices.

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

     Section 1.8. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with any duties under any required
provision of the Trust Indenture Act imposed by operation of Section 318(c) thereof, such required
provision shall control.

     Section 1.9. Effect of Headings and Table of Contents.

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

     Section 1.10. Successors and Assigns.

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

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     Section 1.11. Separability Clause.

     In case any provision in this Indenture, any Security or any Coupon shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

     Section 1.12. Benefits of Indenture.

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

     Section 1.13. Governing Law.

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

     Section 1.14. Legal Holidays.

     Unless otherwise specified in or pursuant to this Indenture or any Securities, in any case
where any Interest Payment Date, Stated Maturity or Maturity of any Security, or the last date on
which a Holder has the right to convert or exchange Securities of a series that are convertible or
exchangeable, shall be a Legal Holiday at any Place of Payment, then (notwithstanding any other
provision of this Indenture, any Security or any Coupon other than a provision in any Security or
Coupon that specifically states that such provision shall apply in lieu hereof) payment need not be
made at such Place of Payment on such date, and such Securities need not be converted or exchanged
on such date but such payment may be made, and such Securities may be converted or exchanged, on
the next succeeding day that is a Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date or at the Stated Maturity or Maturity or on such
last day for conversion or exchange, and no interest shall accrue on the amount payable on such
date or at such time for the period from and after such Interest Payment Date, Stated Maturity,
Maturity or last day for conversion or exchange, as the case may be, to such next succeeding
Business Day.

     Section 1.15. Counterparts.

     This Indenture may be executed in several counterparts, each of which shall be an original and
all of which shall constitute but one and the same instrument.

     Section 1.16. Judgment Currency.

     The Company agrees, to the fullest extent that it may effectively do so under applicable law,
that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum
due in respect of the principal of, or premium or interest, if any, or Additional Amounts on the
Securities of any series (the “Required Currency”) into a currency in which a judgment will

16

 

be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City of New York the
requisite amount of the Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which a final unappealable judgment is given and (b) its obligations under
this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied
by any tender, or any recovery pursuant to any judgment (whether or not entered in accordance with
clause (a)), in any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the full amount of the
Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as
an alternative or additional cause of action for the purpose of recovering in the Required Currency
the amount, if any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of the foregoing, “New York
Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York or
a day on which banking institutions in The City of New York are authorized or obligated by law,
regulation or executive order to be closed.

     Section 1.17. No Security Interest Created.

     Subject to the provisions of Section 10.5, nothing in this Indenture or in any Securities,
express or implied, shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in effect in any
jurisdiction where property of the Company or its Subsidiaries is or may be located.

     Section 1.18. Limitation on Individual Liability.

     No recourse under or upon any obligation, covenant or agreement contained in this Indenture or
in any Security, or for any claim based thereon or otherwise in respect thereof, shall be had
against any incorporator, shareholder, officer or director, as such, past, present or future, of
the Company, either directly or through the Company, whether by virtue of any constitution, statute
or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the obligations issued hereunder are solely corporate
obligations, and that no such personal liability whatever shall attach to, or is or shall be
incurred by, the incorporators, shareholders, officers or directors, as such, of the Company, or
any of them, because of the creation of the indebtedness hereby authorized, or under or by reason
of the obligations, covenants or agreements contained in this Indenture or in any Security or
implied therefrom; and that any and all such personal liability of every name and nature, either at
common law or in equity or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, shareholder, officer or director, as such, because of the
creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants
or agreements contained in this Indenture or in any Security or implied therefrom, are hereby
expressly waived and released as a condition of, and as a consideration for, the execution of this
Indenture and the issuance of such Security.

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ARTICLE 2

Securities Forms

     Section 2.1. Forms Generally.

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

     Unless otherwise provided in or pursuant to this Indenture or any Securities, the Securities
shall be issuable in registered form without Coupons and shall not be issuable upon the exercise of
warrants.

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

     Section 2.2. Form of Trustee’s Certificate of Authentication.

     Subject to Section 6.11, the Trustee’s certificate of authentication shall be in substantially
the following form:

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

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
as Trustee	 	 
	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

     Authorized Officer
	 	 

     Section 2.3. Securities in Global Form.

     Unless otherwise provided in or pursuant to this Indenture or any Securities, the Securities
shall not be issuable in temporary or permanent global form. If Securities of a series shall be
issuable in global form, any such Security may provide that it or any number of such Securities
shall represent the aggregate amount of all Outstanding Securities of such series (or such lesser
amount as is permitted by the terms thereof) from time to time endorsed thereon and

18

 

may also provide that the aggregate amount of Outstanding Securities represented thereby may
from time to time be increased or reduced to reflect exchanges. Any endorsement of any Security in
global form to reflect the amount, or any increase or decrease in the amount, or changes in the
rights of Holders, of Outstanding Securities represented thereby shall be made in such manner and
by such Person or Persons as shall be specified therein or in the Company Order to be delivered
pursuant to Section 3.3 or 3.4 with respect thereto. Subject to the provisions of Section 3.3 and,
if applicable, Section 3.4, the Trustee shall deliver and redeliver, in each case at the Company’s
expense, 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 3.3 or 3.4 has been, or simultaneously is, delivered, any instructions by the
Company with respect to a Security in global form shall be in writing but need not be accompanied
by or contained in an Officers’ Certificate and need not be accompanied by an Opinion of Counsel.

     Notwithstanding the provisions of Section 3.7, unless otherwise specified in or pursuant to
this Indenture or any Securities, payment of principal of, any premium and interest on, and any
Additional Amounts in respect of, any Security in temporary or permanent global form shall be made
to the Person or Persons specified therein.

     Notwithstanding the provisions of Section 3.8 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company or the Trustee shall treat as the
Holder of such principal amount of Outstanding Securities represented by a global Security (i) in
the case of a global Security in registered form, the Holder of such global Security in registered
form, or (ii) in the case of a global Security in bearer form, the Person or Persons specified
pursuant to Section 3.1.

ARTICLE 3

The Securities

     Section 3.1. 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.

     With respect to any Securities to be authenticated and delivered hereunder, there shall be
established in or pursuant to a Board Resolution and set forth in an Officers’ Certificate, or
established in one or more indentures supplemental hereto,

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

     (2) any limit upon the aggregate principal amount of the Securities of such title or
the Securities of such series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of such series pursuant to Section 3.4,

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3.5, 3.6, 9.5 or 11.7, upon repayment in part of any Registered Security of such series
pursuant to Article Thirteen, upon surrender in part of any Registered Security for
conversion into Common Stock or exchange for other securities pursuant to its terms, or
pursuant to or as contemplated by the terms of such Securities);

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

     (4) if any of such Securities are to be issuable in global form, when any of such
Securities are to be issuable in global form and (i) whether such Securities are to be
issued in temporary or permanent global form or both, (ii) whether beneficial owners of
interests in any such global Security may exchange such interests for Securities of the same
series and of like tenor and of any authorized form and denomination, and the circumstances
under which any such exchanges may occur, if other than in the manner specified in Section
3.5, and (iii) the name of the Depositary or the U.S. Depositary, as the case may be, with
respect to any such global Security;

     (5) if any of such Securities are to be issuable as Bearer Securities or in global
form, the date as of which any such Bearer Security or global Security shall be dated (if
other than the date of original issuance of the first of such Securities to be issued);

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

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

     (8) the rate or rates at which such Securities shall bear interest, if any, or the
method or methods, if any, by which such rate or rates are to be determined, the date or
dates, if any, from which such interest shall accrue or the method or methods, if any, by
which such date or dates are to be determined, the Interest Payment Dates, if any, on which
such interest shall be payable and the Regular Record Date, if any, for the interest payable
on Registered Securities on any Interest Payment Date, whether and under what circumstances
Additional Amounts on such Securities or any of them shall be payable, the notice, if any,
to Holders regarding the determination of interest on a floating rate

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Security and the manner of giving such notice, and the basis upon which interest shall
be calculated if other than that of a 360-day year of twelve 30-day months;

     (9) if in addition to or other than the Borough of Manhattan, The City of New York, the
place or places where the principal of, any premium and interest on or any Additional
Amounts with respect to such Securities shall be payable, any of such Securities that are
Registered Securities may be surrendered for registration of transfer or exchange, any of
such Securities may be surrendered for conversion or exchange and notices or demands to or
upon the Company in respect of such Securities and this Indenture may be served, the extent
to which, or the manner in which, any interest payment or Additional Amounts on a global
Security on an Interest Payment Date, will be paid and the manner in which any principal of
or premium, if any, on any global Security will be paid;

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

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

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

     (13) whether the Securities of the series will be convertible into shares of Common
Stock and/or exchangeable for other securities, and if so, the terms and conditions upon
which such Securities will be so convertible or exchangeable, and any deletions from or
modifications or additions to this Indenture to permit or to facilitate the issuance of such
convertible or exchangeable Securities or the administration thereof;

     (14) if other than the principal amount thereof, the portion of the principal amount of
any of such Securities that shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 5.2 or the method by which such portion is to be
determined;

     (15) if other than Dollars, the Foreign Currency in which payment of the principal of,
any premium or interest on or any Additional Amounts with respect to any of such Securities
shall be payable;

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     (16) if the principal of, any premium or interest on or any Additional Amounts with
respect to any of such Securities are to be payable, at the election of the Company or a
Holder thereof or otherwise, in Dollars or in a Foreign Currency other than that in which
such Securities are stated to be payable, the date or dates on which, the period or periods
within which, and the other terms and conditions upon which, such election may be made, and
the time and manner of determining the exchange rate between the Currency in which such
Securities are stated to be payable and the Currency in which such Securities or any of them
are to be paid pursuant to such election, and any deletions from or modifications of or
additions to the terms of this Indenture to provide for or to facilitate the issuance of
Securities denominated or payable, at the election of the Company or a Holder thereof or
otherwise, in a Foreign Currency;

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

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

     (19) whether either or both of Section 4.2(2) relating to defeasance or Section 4.2(3)
relating to covenant defeasance shall not be applicable to the Securities of such series, or
any covenants in addition to those specified in Section 4.2(3) relating to the Securities of
such series which shall be subject to covenant of defeasance, and any deletions from, or
modifications or additions to, the provisions of Article Four in respect of the Securities
of such series;

     (20) whether any of such Securities are to be issuable upon the exercise of warrants,
and the time, manner and place for such Securities to be authenticated and delivered;

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

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

22

 

     (23) any other terms of such Securities and any other deletions from or modifications
or additions to this Indenture in respect of such Securities.

     All Securities of any one series and all Coupons, if any, appertaining to Bearer Securities of
such series shall be substantially identical except as to Currency of payments due thereunder,
denomination and the rate of interest thereon, or method of determining the rate of interest, if
any, Maturity, and the date from which interest, if any, shall accrue and except as may otherwise
be provided by the Company in or pursuant to the Board Resolution and set forth in the Officers’
Certificate or in any indenture or indentures supplemental hereto pertaining to such series of
Securities. The terms of the Securities of any series may provide, without limitation, that the
Securities shall be authenticated and delivered by the Trustee on original issue from time to time
upon written order of persons designated in the Officers’ Certificate or supplemental indenture and
that such persons are authorized to determine, consistent with such Officers’ Certificate or any
applicable supplemental indenture, such terms and conditions of the Securities of such series as
are specified in such Officers’ Certificate or supplemental indenture. All Securities of any one
series need not be issued at the same time and, unless otherwise so provided, a series may be
reopened for issuances of additional Securities of such series or to establish additional terms of
such series of Securities. If a separate entity is named as a Trustee in connection with issuance
of any series of Securities, the Company agrees to enter into a supplemental indenture in
connection with such issuance.

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

     Section 3.2. Currency; Denominations.

     Unless otherwise provided in or pursuant to this Indenture, the principal of, any premium and
interest on and any Additional Amounts with respect to the Securities shall be payable in Dollars.
Unless otherwise provided in or pursuant to this Indenture, Registered Securities denominated in
Dollars shall be issuable in registered form without Coupons in denominations of $1,000 and any
integral multiple thereof, and the Bearer Securities denominated in Dollars shall be issuable in
the denomination of $5,000 and integral multiples thereof. Securities not denominated in Dollars shall be issuable in such
denominations as are established with respect to such Securities in or pursuant to this Indenture.

     Section 3.3. Execution, Authentication, Delivery and Dating.

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

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     Securities and any Coupons appertaining thereto bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities and Coupons or did not hold such offices at the date
of original issuance 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, together with any Coupons appertaining thereto, executed by the
Company, to the Trustee for authentication and, provided that the Board Resolution and Officers’
Certificate or supplemental indenture or indentures with respect to such Securities referred to in
Section 3.1 and a Company Order for the authentication and delivery of such Securities have been
delivered to the Trustee, the Trustee in accordance with the Company Order and subject to the
provisions hereof and of such Securities shall authenticate and deliver such Securities. In
authenticating such Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities and any Coupons appertaining thereto, the Trustee shall be entitled
to receive, and (subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be
fully protected in relying upon,

     (1) an Opinion of Counsel to the effect that:

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

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

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

     (d) this Indenture has been qualified under the Trust Indenture Act; and

     (2) an Officers’ Certificate stating that all conditions precedent to the execution,
authentication and delivery of such Securities and Coupons, if any, appertaining thereto, have

24

 

been complied with and that, to the best knowledge of the Persons executing such certificate,
no event which is, or after notice or lapse of time would become, an Event of Default with respect
to any of the Securities shall have occurred and be continuing.

     If all the Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Opinion of Counsel and an Officers’ Certificate at the time of issuance of
each Security, but such opinion and certificate, with appropriate modifications, shall be delivered
at or before the time of issuance of the first Security of such series. After any such first
delivery, any separate written request by an Authorized Officer of the Company that the Trustee
authenticate and deliver Securities of such series for original issue will be deemed to be a
certification by the Company that all conditions precedent provided for in this Indenture relating
to authentication and delivery of such Securities continue to have been complied with.

     The Trustee shall not be required to authenticate or to cause an Authenticating Agent to
authenticate any Securities if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise
in a manner which is not reasonably acceptable to the Trustee or if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken.

     Each Registered Security shall be dated the date of its authentication. Each Bearer Security
and any Bearer Security in global form shall be dated as of the date specified in or pursuant to
this Indenture.

     No Security or Coupon appertaining thereto shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose, unless there appears on such Security a
certificate of authentication substantially in the form provided for in Section 2.2 or 6.11
executed by or on behalf of the Trustee or by the Authenticating Agent by the manual signature of
one of its authorized officers. Such certificate upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and delivered hereunder.
Except as permitted by Section 3.6 or 3.7, the Trustee shall not authenticate and deliver any
Bearer Security unless all Coupons appertaining thereto then matured have been detached and
cancelled.

     Section 3.4. Temporary Securities.

     Pending the preparation of definitive Securities, the Company may execute and deliver to the
Trustee and, upon Company Order, the Trustee shall authenticate and deliver, in the manner provided
in Section 3.3, temporary Securities in lieu thereof 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
or pursuant to this Indenture, in bearer form with one or more Coupons or without Coupons and with
such appropriate insertions, omissions, substitutions and other variations as the officers of the
Company executing such Securities may determine, as conclusively evidenced by their execution of
such Securities. Such temporary Securities may be in global form.

     Except in the case of temporary Securities in global form, which shall be exchanged in
accordance with the provisions thereof, if temporary Securities are issued, the Company shall

25

 

cause definitive Securities to be prepared without unreasonable delay. After the preparation
of definitive Securities of the same series and containing terms and provisions that are identical
to those of any temporary Securities, such temporary Securities shall be exchangeable for such
definitive Securities upon surrender of such temporary Securities at an Office or Agency for such
Securities, without charge to any Holder thereof. Upon surrender for cancellation of any one or
more temporary Securities (accompanied by any unmatured Coupons appertaining thereto), the Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of authorized denominations of the same series and containing
identical terms and provisions; provided, however, that no definitive Bearer Security, except as
provided in or pursuant to this Indenture, 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 or
pursuant to this Indenture. Unless otherwise provided in or pursuant to this Indenture with
respect to a temporary global Security, until so exchanged the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series.

     Section 3.5. Registration, Transfer and Exchange.

     With respect to the Registered Securities of each series, if any, the Company shall cause to
be kept a register (each such register being herein sometimes referred to as the “Security
Register”) at an Office or Agency for such series in which, subject to such reasonable regulations
as it may prescribe, the Company shall provide for the registration of the Registered Securities of
such series and of transfers of the Registered Securities of such series. Such Office or Agency
shall be the “Security Registrar” for that series of Securities. Unless otherwise specified in or
pursuant to this Indenture or the Securities, the Trustee shall be the initial Security Registrar
for each series of Securities. The Company shall have the right to remove and replace from time to
time the Security Registrar for any series of Securities; provided that no such removal or
replacement shall be effective until a successor Security Registrar with respect to such series of
Securities shall have been appointed by the Company and shall have accepted such appointment by the
Company. In the event that the Trustee shall not be or shall cease to be Security Registrar with
respect to a series of Securities, it shall have the right to examine the Security Register for
such series at all reasonable times. There shall be only one Security Register for each series of
Securities.

     Upon surrender for registration of transfer of any Registered Security of any series at any
Office or Agency for such 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 denominated as authorized in or pursuant to this Indenture, of a like
aggregate principal amount bearing a number not contemporaneously outstanding and containing
identical terms and provisions.

     At the option of the Holder, Registered Securities of any series may be exchanged for other
Registered Securities of the same series containing identical terms and provisions, in any
authorized denominations, and of a like aggregate principal amount, upon surrender of the
Securities to be exchanged at any Office or Agency for such series. Whenever any Registered

26

 

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

     If provided in or pursuant to this Indenture, with respect to Securities of any series, at the
option of the Holder, Bearer Securities of such series may be exchanged for Registered Securities
of such series containing identical terms, denominated as authorized in or pursuant to this
Indenture and in the same aggregate principal amount, upon surrender of the Bearer Securities to be
exchanged at any Office or Agency for such series, with all unmatured Coupons and all matured
Coupons in default thereto appertaining. If the Holder of a Bearer Security is unable to produce
any such unmatured Coupon or Coupons or matured Coupon or Coupons in default, such exchange may be
effected if the Bearer Securities are accompanied by payment in funds acceptable to the Company and
the Trustee in an amount equal to the face amount of such missing Coupon or Coupons, or the
surrender of such missing Coupon or Coupons may be waived by the Company and the Trustee if there
is furnished to them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Bearer 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 10.2, interest represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an Office or Agency for such series located outside
the United States. Notwithstanding the foregoing, in case a Bearer Security of any series is
surrendered at any such Office or Agency for such series in exchange for a Registered Security of
such series and like tenor after the close of business at such Office or Agency on (i) any Regular
Record Date and before the opening of business at such Office or Agency on the next succeeding
Interest Payment Date, or (ii) any Special Record Date and before the opening of business at such
Office or Agency on the related date for payment of Defaulted Interest, such Bearer Security shall
be surrendered without the Coupon relating to such Interest Payment Date or proposed date of
payment, as the case may be (or, if such Coupon is so surrendered with such Bearer Security, such
Coupon shall be returned to the Person so surrendering the Bearer Security), and interest or
Defaulted Interest, as the case may be, shall 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 shall be payable only to the Holder of such Coupon when due
in accordance with the provisions of this Indenture.

     If provided in or pursuant to this Indenture with respect to Securities of any series, at the
option of the Holder, Registered Securities of such series may be exchanged for Bearer Securities
upon such terms and conditions as may be provided in or pursuant to this Indenture with respect to
such series.

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

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

28

 

Payment Date or proposed date for payment, as the case may be, in respect of such Registered
Security, but shall be payable on such Interest Payment Date or proposed date for payment, as the
case may be, only to the Person to whom interest in respect of such portion of such global Security
shall be 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 entitling the Holders thereof to the
same benefits under this Indenture as the Securities surrendered upon such registration of transfer
or exchange.

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

     No service charge by the Company shall be made for any registration of transfer or exchange,
or redemption of Securities, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge and any other expenses (including fees and expenses of the
Trustee) that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.4, 9.5 or 11.7 not involving any transfer.

     Except as otherwise provided in or pursuant to this Indenture, the Company shall not be
required (i) to issue, register the transfer of or exchange any Securities during a period
beginning at the opening of business 15 days before the day of mailing of a notice of redemption of
Securities of like tenor and the same series under Section 11.3 and ending at the close of business
on the day of such mailing, or (ii) to register the transfer of or exchange any Registered Security
selected for redemption in whole or in part, except in the case of any Security to be redeemed in
part, the portion thereof not to be redeemed, or (iii) to exchange any Bearer Security selected for
redemption except, to the extent provided with respect to such Bearer Security, that such Bearer
Security may be exchanged for a Registered Security of like tenor and the same series, provided
that such Registered Security shall be immediately surrendered for redemption with written
instruction for payment consistent with the provisions of this Indenture or (iv) to issue, register
the transfer of or exchange any Security which, in accordance with its terms, 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 3.6. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security or a Security with a mutilated Coupon appertaining to it is
surrendered to the Trustee, subject to the provisions of this Section 3.6, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the
same series containing identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons appertaining thereto corresponding to the Coupons, if
any, appertaining to the surrendered Security.

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

     Notwithstanding the foregoing provisions of this Section 3.6, in case any mutilated,
destroyed, lost or stolen Security or Coupon has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, pay such Security or Coupon;
provided, however, that payment of principal of, any premium or interest on or any Additional
Amounts with respect to any Bearer Securities shall, except as otherwise provided in Section 10.2,
be payable only at an Office or Agency for such Securities located outside the United States and,
unless otherwise provided in or pursuant to this Indenture, any interest on Bearer Securities and
any Additional Amounts with respect to such interest shall be payable only upon presentation and
surrender of the Coupons appertaining thereto.

     Upon the issuance of any new Security under this Section 3.6, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Security, with any Coupons appertaining thereto issued pursuant to this Section 3.6
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 a separate obligation of the Company,
whether or not the destroyed, lost or stolen Security and Coupons appertaining thereto 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 such series and any Coupons, if any, duly issued hereunder.

     The provisions of this Section 3.6, as amended or supplemented pursuant to this Indenture with
respect to particular Securities or generally, shall be 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 3.7. Payment of Interest and Certain Additional Amounts; Rights to Interest and
Certain Additional Amounts Preserved.

     Unless otherwise provided in or pursuant to this Indenture, any interest on and any Additional
Amounts with respect to any Registered Security which shall be payable, and are

30

 

punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person
in whose name such Security (or one or more Predecessor Securities) is registered as of the close
of business on the Regular Record Date for such interest.

     Unless otherwise provided in or pursuant to this Indenture, any interest on and any Additional
Amounts with respect to any Registered Security which shall be payable, but shall not be punctually
paid or duly provided for, on any Interest Payment Date for such Registered Security (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the Holder 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 provided in Clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Person in
whose name such Registered Security (or a Predecessor Security thereof) shall be registered
at the close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed by the Company in the following manner. The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on
such Registered Security, the Special Record Date therefor and the date of the proposed
payment, and at the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date
of the proposed payment, such money when so deposited to be held in trust for the benefit of
the Person entitled to such Defaulted Interest as in this Clause provided. The Special
Record Date for the payment of such Defaulted Interest 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 notification to the Trustee of the proposed payment. The Trustee shall, in the name
and at the expense of the Company, cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to
the Holder of such Registered Security (or a Predecessor Security thereof) 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 of general
circulation in the Borough of Manhattan, The City of New York, but such publication shall
not be a condition precedent to the establishment of such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date therefor having
been mailed as aforesaid, such Defaulted Interest shall be paid to the Person in whose name
such Registered Security (or a Predecessor Security thereof) shall be registered at the
close of business on such Special Record Date and shall no longer be payable pursuant to the
following clause (2).

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

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     Unless otherwise provided in or pursuant to this Indenture or the Securities of any particular
series pursuant to the provisions of this Indenture, at the option of the Company, interest on
Registered Securities that bear interest may be paid by mailing a check to the address of the
Person entitled thereto as such address shall appear in the Security Register or by transfer to an
account maintained by the payee with a bank located in the United States.

     Subject to the foregoing provisions of this Section and Section 3.5, 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.

     In the case of any Registered Security of any series that is convertible into shares of Common
Stock or exchangeable for other securities, which Registered Security is converted or exchanged
after any Regular Record Date and on or prior to the next succeeding Interest Payment Date (other
than any Registered Security with respect to which the Stated Maturity is prior to such Interest
Payment Date), interest with respect to which the Stated Maturity is on such Interest Payment Date
shall be payable on such Interest Payment Date notwithstanding such conversion or exchange, and
such interest (whether or not punctually paid or duly provided for) shall be paid to the Person in
whose name that Registered Security (or one or more predecessor Registered Securities) is
registered at the close of business on such Regular Record Date. Except as otherwise expressly
provided in the immediately preceding sentence, in the case of any Registered Security which is
converted or exchanged, interest with respect to which the Stated Maturity is after the date of
conversion or exchange of such Registered Security shall not be payable.

     Section 3.8. 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 in the Security Register as the owner of such Registered Security
for the purpose of receiving payment of principal of, any premium and (subject to Sections 3.5 and
3.7) interest on and any Additional Amounts with respect to such Registered Security and for all
other purposes whatsoever, whether or not any payment with respect to such Registered Security
shall be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee
shall be affected by notice to the contrary.

     The Company, the Trustee and any agent of the Company or the Trustee may treat the bearer of
any Bearer Security or the bearer of any Coupon as the absolute owner of such Security or Coupon
for the purpose of receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not any payment with respect to such Security or Coupon shall be overdue,
and none of the Company, the Trustee or any agent of the Company or the Trustee shall be affected
by notice to the contrary.

     No Holder of any beneficial interest in any global Security held on its behalf by a Depositary
shall have any rights under this Indenture with respect to such global Security, and such
Depositary may be treated by the Company, the Trustee, and any agent of the Company or

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the Trustee as the owner of such global Security for all purposes whatsoever. 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 global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.

     Section 3.9. Cancellation.

     All Securities and Coupons surrendered for payment, redemption, registration of transfer,
exchange or conversion or for credit against any sinking fund payment shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee, and any such Securities and Coupons, as
well as Securities and Coupons surrendered directly to the Trustee for any such purpose, shall be
cancelled promptly by the Trustee. 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 all Securities so delivered shall be cancelled promptly
by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by or pursuant to this
Indenture. All cancelled Securities and Coupons held by the Trustee shall be destroyed by the
Trustee (subject to the record retention requirements of the Exchange
Act), unless by a Company Order the Company directs their return to it.

     Section 3.10. Computation of Interest.

     Except as otherwise provided in or pursuant to this Indenture or in any Security, interest on
the Securities shall be computed on the basis of a 360-day year of twelve 30-day months.

ARTICLE 4

Satisfaction and Discharge of Indenture

     Section 4.1. Satisfaction and Discharge.

     Upon the direction of the Company by a Company Order, this Indenture shall cease to be of
further effect with respect to any series of Securities specified in such Company Order and any
Coupons appertaining thereto, and the Trustee, on receipt of a Company Order, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture as to such series, when

     (1) either

     (a) all Securities of such series theretofore authenticated and delivered and all
Coupons appertaining thereto (other than (i) Coupons appertaining to Bearer Securities of
such series surrendered in exchange for Registered Securities of such series and maturing
after such exchange whose surrender is not required or has been waived as provided in
Section 3.5, (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 3.6, (iii) Coupons
appertaining to Securities of such series called for redemption and maturing after the

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relevant Redemption Date whose surrender has been waived as provided in Section 11.7,
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 10.3) 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 deposited or caused to be
deposited with the Trustee as trust funds in trust for such purpose, money in the Currency
in which such Securities are payable in an amount sufficient to pay and discharge the entire
indebtedness on such Securities and any Coupons appertaining thereto not theretofore
delivered to the Trustee for cancellation, including the principal of, any premium and
interest on, and any Additional Amounts with respect to such Securities and any Coupons
appertaining thereto, to the date of such deposit (in the case of Securities which have
become due and payable) or to the Maturity thereof, as the case may be;

     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to the Outstanding Securities of such series and any Coupons
appertaining thereto; and

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

     In the event there are Securities of two or more series hereunder, the Trustee shall be
required to execute an instrument acknowledging satisfaction and discharge of this Indenture only
if requested to do so with respect to Securities of such series as to which it is Trustee and if
the other conditions thereto are met.

     Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 6.6 and, if money shall
have been deposited with the Trustee pursuant to subclause (b) of clause (1) of this Section, the
obligations of the Company and the Trustee with respect to the Securities of such series under
Sections 3.5, 3.6, 4.3, 10.2 and 10.3, with respect to the payment of Additional Amounts,

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if any, with respect to such Securities as contemplated by Section 10.4 (but only to the
extent that the Additional Amounts payable with respect to such Securities exceed the amount
deposited in respect of such Additional Amounts pursuant to Section 4.1(1)(b)), and with respect to
any rights to convert or exchange such Securities into Common Stock or other securities shall
survive.

     Section 4.2. Defeasance and Covenant Defeasance.

     (1) Unless pursuant to Section 3.1, either or both of (i) defeasance of the Securities of or
within a series under clause (2) of this Section 4.2 shall not be applicable with respect to the
Securities of such series or (ii) covenant defeasance of the Securities of or within a series under
clause (3) of this Section 4.2 shall not be applicable with respect to the Securities of such
series, then such provisions, together with the other provisions of this Section 4.2 (with such
modifications thereto as may be specified pursuant to Section 3.1 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 4.2(2) or Section 4.2(3) be applied to such Outstanding
Securities and any Coupons appertaining thereto upon compliance with the conditions set forth below
in this Section 4.2.

     (2) Upon the Company’s exercise of the above option applicable to this Section 4.2(2) 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 clause (4) of this Section 4.2 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, which shall thereafter be deemed to be
“Outstanding” only for the purposes of clause (5) of this Section 4.2 and the other Sections of
this Indenture referred to in clauses (i) and (ii) below, and to have satisfied all of its other
obligations under such Securities and any Coupons appertaining thereto and this 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: (i) the rights
of Holders of such Outstanding Securities and any Coupons appertaining thereto to receive, solely
from the trust fund described in clause (4) of this Section 4.2 and as more fully set forth in such
clause, payments in respect of the principal of (and premium, if any) and interest, if any, on, and
Additional Amounts, if any, with respect to, such Securities and any Coupons appertaining thereto
when such payments are due, and any rights of such Holder to convert such Securities into Common
Stock or exchange such Securities for other securities, (ii) the obligations of the Company and the
Trustee with respect to such Securities under Sections 3.5, 3.6, 10.2 and 10.3 and with respect to
the payment of Additional Amounts, if any, on such Securities as contemplated by Section 10.4 (but
only to the extent that the Additional Amounts payable with respect to such Securities exceed the
amount deposited in respect of such Additional Amounts pursuant to Section 4.2(4)(a) below), and
with respect to any rights to convert such Securities into Common Stock or exchange such Securities
for other securities, (iii) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and (iv) this Section

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4.2. The Company may exercise its option under this Section 4.2(2) notwithstanding the prior
exercise of its option under clause (3) of this Section 4.2 with respect to such Securities and any
Coupons appertaining thereto.

     (3) Upon the Company’s exercise of the option to have this Section 4.2(3) apply with respect
to any Securities of or within a series, the Company shall be released from its obligations under
Section 10.5 and Section 10.6, and, to the extent specified pursuant to Section 3.1(19), any other
covenant applicable to such Securities, with respect to such Outstanding Securities and any Coupons
appertaining thereto on and after the date the conditions set forth in clause (4) of this Section
4.2 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 any such 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 such
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 5.1(4) or
otherwise, as the case may be, but, except as specified above, the remainder of this Indenture and
such Securities and Coupons appertaining thereto shall be unaffected thereby.

     (4) The following shall be the conditions to application of clause (2) or (3) of this Section
4.2 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 6.7 who shall agree to
comply with the provisions of this Section 4.2 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 Dollars or in such Foreign Currency in which such
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 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 their
terms will provide, not later than one day before the due date of any payment of principal
of (and premium, 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 to the Trustee, to pay and discharge,
and which shall be applied by the Trustee (or other

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qualifying trustee) to pay and discharge, (y) the principal of (and premium, if any)
and interest, if any, on such Outstanding Securities and any Coupons appertaining thereto at
the Stated Maturity of such principal or installment of principal or premium or interest and
(z) any mandatory sinking fund payments or analogous payments applicable to such Outstanding
Securities and any Coupons appertaining thereto on the days 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 and, with respect
to defeasance only, at any time during the period ending on the 123rd 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 clause (2) of this Section 4.2, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (i) the Company has
received from the Internal Revenue Service a letter ruling, or there has been published by
the Internal Revenue Service a Revenue 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 clause (3) of this Section 4.2, 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 Opinion of Counsel to the effect
that, after the 123rd day after the date of deposit, all money and Government Obligations
(or other property as may be provided pursuant to Section 3.1) (including the proceeds
thereof) deposited or caused to be deposited with the Trustee (or other qualifying trustee)
pursuant to this clause (4) to be held in trust will not be subject to any case or
proceeding (whether voluntary or involuntary) in respect of the Company under

37

 

any Federal or State bankruptcy, insolvency, reorganization or other similar law, or
any decree or order for relief in respect of the Company issued in connection therewith.

     (g) 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 or covenant
defeasance under clause (2) or (3) of this Section 4.2 (as the case may be) have been
complied with.

     (h) Notwithstanding any other provisions of this Section 4.2(4), 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 3.1.

     (5) Unless otherwise specified in or pursuant to this Indenture or any Security, if, after a
deposit referred to in Section 4.2(4)(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 3.1 or the terms of
such Security to receive payment in a Currency other than that in which the deposit pursuant to
Section 4.2(4)(a) has been made in respect of such Security, or (b) a Conversion Event occurs in
respect of the Foreign Currency in which the deposit pursuant to Section 4.2(4)(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, if any), and interest, if any, on, and Additional Amounts, if any, with respect to,
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 into the Currency in which such Security becomes payable as a result of
such election or Conversion Event based on (x) in the case of payments made pursuant to clause (a)
above, the applicable market exchange rate for such Currency in effect on the second Business Day
prior to each payment date, or (y) with respect to a Conversion Event, the applicable market
exchange rate for such Foreign Currency in effect (as nearly as feasible) at the time of the
Conversion Event.

     The Company shall pay and indemnify the Trustee (or other qualifying trustee, collectively for
purposes of this Section 4.2(5) and Section 4.3, the “Trustee”) against any tax, fee or other
charge, imposed on or assessed against the Government Obligations deposited pursuant to this
Section 4.2 or the principal or 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 Section 4.2 to the contrary notwithstanding, 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 clause (4) of this Section 4.2
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 Section 4.2.

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     Section 4.3. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all money and Government
Obligations (or other property as may be provided pursuant to Section 3.1) (including the proceeds
thereof) deposited with the Trustee pursuant to Section 4.1 or 4.2 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 (including
the Company acting as its own 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, if any) and interest and Additional Amounts, if any; but such
money and Government Obligations need not be segregated from other funds except to the extent
required by law.

ARTICLE 5

Remedies

     Section 5.1. Events of Default.

     “Event of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body),
unless such event is specifically deleted or modified in or pursuant to the supplemental indenture,
Board Resolution or Officers’ Certificate establishing the terms of such Series pursuant to this
Indenture:

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

     (2) default in the payment of the principal of or any premium on any Security of such series,
or any Additional Amounts payable with respect thereto, when such principal or premium becomes or
such Additional Amounts become due and payable at their Maturity; or

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

     (4) default in the performance, or breach, of any covenant or warranty of the Company in this
Indenture or the Securities (other than a covenant or warranty a default in the performance or the
breach of which is elsewhere in this Section specifically dealt with or which has been expressly
included in this Indenture solely for the benefit of a series of Securities other than such
series), and continuance of such default or breach for a period of 60 days after there has been
given, by registered or certified mail, to the Company by the Trustee or to the Company and the

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Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of
such series, a written notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder; or

     (5) if any event of default as defined in any mortgage, indenture or instrument under which
there may be issued, or by which there may be secured or evidenced, any Debt of the Company
(including any Event of Default under any other series of Securities), whether such Debt now exists
or shall hereafter be created or incurred, shall happen and shall consist of default in the payment
of more than $100 million in principal amount of such Debt at the maturity thereof (after giving
effect to any applicable grace period) or shall result in such Debt in principal amount in excess
of $100 million becoming or being declared due and payable prior to the date on which it would
otherwise become due and payable;

     (6) the Company shall fail within 60 days to pay, bond or otherwise discharge any uninsured
judgment or court order for the payment of money in excess of $100 million, which is not stayed on
appeal or is not otherwise being appropriately contested in good faith;

     (7) the entry by a court having competent jurisdiction of:

     (a) a decree or order for relief in respect of the Company in an involuntary proceeding
under any applicable bankruptcy, insolvency, reorganization or other similar law and such
decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or

     (b) a decree or order adjudging the Company to be insolvent, or approving a petition
seeking reorganization, arrangement, adjustment or composition of the Company and such
decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or

     (c) a final and non-appealable order appointing a custodian, receiver, liquidator,
assignee, trustee or other similar official of the Company or of any substantial part of the
property of the Company, or ordering the winding up or liquidation of the affairs of the
Company; or

     (8) the commencement by the Company of a voluntary proceeding under any applicable bankruptcy,
insolvency, reorganization or other similar law or of a voluntary proceeding seeking to be
adjudicated insolvent or the consent by the Company to the entry of a decree or order for relief in
an involuntary proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any insolvency proceedings against it, or the filing by the
Company of a petition or answer or consent seeking reorganization, arrangement, adjustment or
composition of the Company or relief under any applicable law, or the consent by the Company to the
filing of such petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee or similar official of the Company or any substantial part of the
property of the Company or the making by the Company of an assignment for the benefit of creditors,
or the taking of corporate action by the Company in furtherance of any such action; or

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     (9) any other Event of Default provided in or pursuant to this Indenture with respect to
Securities of such series.

     Section 5.2. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time Outstanding (other
than an Event of Default specified in clause (7) or (8) of Section 5.1) occurs and is continuing,
then the Trustee or the Holders of not less than 25% in principal amount of the Outstanding
Securities of such series may declare the principal of all the Securities of such series, or such
lesser amount as may be provided for in the Securities of such series, to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders),
and upon any such declaration such principal or such lesser amount shall become immediately due and
payable.

     If an Event of Default specified in clause (7) or (8) of Section 5.1 occurs, all unpaid
principal of and accrued interest on the Outstanding Securities of that series (or such lesser
amount as may be provided for in the Securities of such series) 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 of any Security of that series.

     At any time after a declaration of acceleration with respect to the Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of not less than a majority in
principal amount of the Outstanding Securities of such 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 of money sufficient to pay

     (a) all overdue installments of any interest on and Additional Amounts with respect to
all Securities of such series and any Coupon appertaining thereto,

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

     (c) to the extent that payment of such interest or Additional Amounts is lawful,
interest upon overdue installments of any interest and 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 all other
amounts due the Trustee under Section 6.6; and

     (2) all Events of Default with respect to Securities of such series, other than the
non-payment of the principal of, any premium and interest on, and any Additional Amounts with

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respect to Securities of such series which shall have become due solely by such declaration of
acceleration, shall have been cured or waived as provided in Section 5.13.

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

     Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

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

     (2) default is made in the payment of the principal of or any premium on any Security or any
Additional Amounts with respect thereto at their Maturity,

the Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders
of such Securities and any Coupons appertaining thereto, the whole amount of money then due and
payable with respect to such Securities and any Coupons appertaining thereto, with interest upon
the overdue principal, any premium and, to the extent that payment of such interest shall be
legally enforceable, upon any overdue installments of interest and Additional Amounts at the rate
or rates borne by or provided for in such Securities, and, in addition thereto, such further amount
of money as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and all other amounts due to the Trustee under Section 6.6.

     If the Company fails to pay the money it is required to pay the Trustee pursuant to the
preceding paragraph forthwith upon the demand of the Trustee, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the collection of the money so
due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the
same against the Company or any other obligor upon such Securities and any Coupons appertaining
thereto and collect the monies 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 and any Coupons
appertaining thereto, wherever situated.

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

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     Section 5.4. Trustee May File Proofs of Claim.

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

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

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder of Securities or any Coupons to
make such payments to the Trustee and, in the event that the Trustee shall consent to the making of
such payments directly to the Holders of Securities or any Coupons, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel and any other amounts due the Trustee under Section 6.6.

     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 any 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 any Coupon in any such proceeding.

     Section 5.5. Trustee May Enforce Claims without Possession of Securities or Coupons.

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

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of each and every Holder of the Securities or Coupons in respect of which such judgment has
been recovered.

     Section 5.6. Application of Money Collected.

     Any
money or other property 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 or other property on
account of principal, or any premium, interest or Additional Amounts, upon presentation of the
Securities or Coupons, or both, as the case may be, and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under
Section 6.6;

     SECOND: To the payment of the amounts then due and unpaid upon the Securities and any
Coupons for principal and any premium, interest and Additional Amounts 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 any premium, interest and Additional Amounts, respectively;

     THIRD:
The balance, if any, to the Person or Persons entitled thereto or as
a court of competent jurisdiction may direct.

     Section 5.7. Limitations on Suits.

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

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

     (2) the Holders of not less than 25% in principal amount of the Outstanding Securities
of such 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 such indemnity as is reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred in compliance
with such request;

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

     (5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of such series;

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it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture or any Security to
affect, disturb or prejudice the rights of any other such Holders or Holders of Securities of any
other series, or to obtain or to seek to obtain priority or preference over any other Holders or to
enforce any right under this Indenture, except in the manner herein provided and for the equal and
ratable benefit of all such Holders.

     Section 5.8. Unconditional Right of Holders to Receive Principal and any Premium, Interest
and Additional Amounts.

     Notwithstanding any other provision in this Indenture, the Holder of any Security or Coupon
shall have the right, which is absolute and unconditional, to receive payment of the principal of,
any premium and (subject to Sections 3.5 and 3.7) interest on, and any Additional Amounts with
respect to such Security or payment of such Coupon, as the case may be, on the respective Stated
Maturity or Maturities therefor specified in such Security or Coupon (or, in the case of
redemption, on the Redemption Date or, in the case of repayment at the option of such Holder if
provided in or pursuant to this Indenture, on the date such repayment is due) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired without the consent
of such Holder.

     Section 5.9. Restoration of Rights and Remedies.

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

     Section 5.10. 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 3.6, no right or
remedy herein conferred upon or reserved to the Trustee or to each and every Holder of a Security
or a Coupon is intended to be exclusive of any other right or remedy, and every right and remedy,
to the extent permitted by law, shall be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not, to the extent permitted by
law, prevent the concurrent assertion or employment of any other appropriate right or remedy.

     Section 5.11. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Security or Coupon to exercise any
right or remedy accruing upon any Event of Default shall impair any such right or

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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 any Holder of a Security or a
Coupon may be exercised from time to time, and as often as may be deemed expedient, by the Trustee
or by such Holder, as the case may be.

     Section 5.12. Control by Holders of Securities.

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

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

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

     (3) such direction is not unduly prejudicial to the rights of the other Holders of
Securities of such series not joining in such action.

     Section 5.13. Waiver of Past Defaults.

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

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

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

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to waive any past default hereunder. If a record date is fixed,
the Holders on such record date, or their duly designated proxies, and only such Persons, shall be
entitled to waive any default hereunder, or to retract (prior to the requisite percentage for such
waiver to become effective having been obtained) any such waiver previously given, whether or not
such Holders remain Holders after such record date; provided, that such waiver shall be effected no
later than the 90th day after such record date.

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

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     Section 5.14. Waiver of Usury, Stay or Extension Laws.

     The Company covenants that (to the extent that it may lawfully do so) 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 expressly waives (to the
extent that it may lawfully do so) 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 5.15. 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 5.15 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 Outstanding Securities of any series, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest,
if any, on or Additional Amounts, if any, with respect to 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, and, in the case of repayment, on or after the date for repayment) or for the
enforcement of the right, if any, to convert or exchange any Security into Common Stock or other
securities in accordance with its terms.

ARTICLE 6

The Trustee

     Section 6.1. Certain Rights of Trustee.

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

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee;

     (2) the Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, coupon or other

47

 

paper or document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties;

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

     (4) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or a Company Order (in each case, other than delivery of any
Security, together with any Coupons appertaining thereto, to the Trustee for authentication
and delivery pursuant to Section 3.3 which shall be sufficiently evidenced as provided
therein) and any resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;

     (5) 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 shall be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely upon an
Officers’ Certificate;

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

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

     (8) 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, coupon or other paper or document, but
the Trustee, in its discretion, may but shall not be obligated to 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,
during business hours and upon reasonable notice, the books, records and premises of the
Company, personally or by agent or attorney; and

     (9) 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.

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     (10) the Trustee shall not be liable for any action taken or error of judgment made in
good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall
be proved that the Trustee was negligent in ascertaining the pertinent facts, acted in bad
faith or engaged in willful misconduct;

     (11) the Authenticating Agent, Paying Agent, and Security Registrar shall have the same
protections as the Trustee set forth hereunder; and

     (12) the Trustee shall not be liable with respect to any action taken, suffered or
omitted to be taken by it in good faith in accordance with an Act of the Holders hereunder,
and, to the extent not so provided herein, with respect to any act requiring the Trustee to
exercise its own discretion, relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture or any Securities, unless it shall be
proved that, in connection with any such action taken, suffered or omitted or any such act,
the Trustee was negligent, acted in bad faith or engaged in willful misconduct.

     Section 6.2. 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 by mail to all Holders of Securities of such series entitled
to receive reports pursuant to Section 7.3(3), notice of such default hereunder actually known to a
Responsible Officer of the Trustee, unless such default shall have been cured or waived; provided,
however, that, except in the case of a default in the payment of the principal of (or premium, if
any), or interest, if any, on, or Additional Amounts or any sinking fund or purchase fund
installment with respect to, any Security of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the best interest of the Holders of Securities and
Coupons of such series; and provided, further, that in the case of any default of the character
specified in Section 5.1(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 60 days after the occurrence thereof. For the purpose of this
Section, the term “default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.

     Section 6.3. 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
or the Coupons, except that the Trustee represents that it is duly authorized to execute and
deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that
the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are
true and accurate, subject to the qualifications set forth therein. Neither the Trustee nor any

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Authenticating Agent shall be accountable for the use or application by the Company of the
Securities or the proceeds thereof.

     Section 6.4. May Hold Securities.

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

     Section 6.5. Money Held in Trust.

     Except as provided in Section 4.3 and Section 10.3, money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law and shall be
held uninvested. The Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed to in writing with the Company.

     Section 6.6. Compensation and Reimbursement.

     The Company agrees:

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

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture or arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder (including
the reasonable compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as are attributable to the Trustee’s
negligence or bad faith; and

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

     As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien prior to the Securities of any series upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the payment of principal of, and
premium or interest on or any Additional Amounts with respect to
particular Securities or any Coupons
appertaining thereto.

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     To the extent permitted by law, any compensation or expense incurred by the Trustee after a
default specified in or pursuant to Section 5.1 is intended to constitute an expense of
administration under any then applicable bankruptcy or insolvency law. “Trustee” for purposes of
this Section 6.6 shall include any predecessor Trustee but the negligence or bad faith of any
Trustee shall not affect the rights of any other Trustee under this Section 6.6.

     The provisions of this Section 6.6 shall survive the satisfaction and discharge of this
Indenture or the earlier resignation or removal of the Trustee and shall apply with equal force and
effect to the Trustee in its capacity as Authenticating Agent, Paying Agent or Security Registrar.

     Section 6.7. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder that is a Corporation organized and doing
business under the laws of the United States of America, any state thereof or the District of
Columbia, that is eligible under Section 310(a)(1) of the Trust Indenture Act to act as trustee
under an indenture qualified under the Trust Indenture Act and that has a combined capital and
surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least
$50,000,000. If such corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of its supervising or examining authority, then for the purposes of this
Section, 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 6.8. Resignation and Removal; Appointment of Successor.

     (1) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee pursuant to Section 6.9.

     (2) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 6.9 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 with respect to such series.

     (3) 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.

     (4) If at any time:

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

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     (b) the Trustee shall cease to be eligible under Section 6.7 and shall fail to resign
after written request therefor by the Company or any such Holder, or

     (c) 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 with respect to all Securities or the Securities of such series, or (ii) subject to Section
315(e) of the Trust Indenture Act, 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 removal of the Trustee with respect
to all Securities of such series and the appointment of a successor Trustee or Trustees.

     (5) 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 such series (it being understood that any
such successor Trustee may be appointed with respect to the Securities of one or more or all of
such series and that at any time there shall be only one Trustee with respect to the Securities of
any particular series) and shall comply with the applicable requirements of Section 6.9. If,
within one year after such resignation, removal or incapacity, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such series delivered to
the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements of Section 6.9,
become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to
the Securities of any series shall have been so appointed by the Company or the Holders of
Securities and accepted appointment in the manner required by Section 6.9, any Holder of a Security
who has been a bona fide Holder of a Security of such series for at least six months may, on behalf
of himself and all others similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such series.

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

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     (7) In no event shall any retiring Trustee be liable for the acts or omissions of any
successor Trustee hereunder.

     Section 6.9. Acceptance of Appointment by Successor.

     (1) Upon the appointment hereunder of any successor Trustee with respect to all Securities,
such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and the
retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and duties hereunder of
the retiring Trustee; but, on the request of the Company or such successor Trustee, such retiring
Trustee, upon payment of its charges, shall execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and, subject to Section
10.3, 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 6.6.

     (2) Upon the appointment hereunder of any successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the retiring Trustee and such successor Trustee
shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall
accept such appointment and which (1) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, such successor Trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the retiring Trustee is
not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same
trust, that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall
be responsible for any notice given to, or received by, or any act or failure to act on the part of
any other Trustee hereunder, and, upon the execution and delivery of such supplemental indenture,
the resignation or removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall have no further responsibility for the exercise of rights and
powers or for the performance of the duties and obligations vested in the Trustee under this
Indenture with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates other than as hereinafter expressly set forth, 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 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 such successor Trustee, such retiring Trustee, upon payment of its charges with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates and
subject to Section 10.3 shall duly assign, transfer and deliver to such

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successor Trustee, to the extent contemplated by such supplemental indenture, the property and
money held by such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, subject to its claim, if any,
provided for in Section 6.6.

     (3) Upon request of any Person appointed hereunder as a 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 (1) or (2) of this
Section, as the case may be.

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

     Section 6.10. 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, without
the execution or filing of any paper or any further act on the part of any of the parties hereto.
In case any Securities shall have been authenticated but not delivered by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.

     Section 6.11. Appointment of Authenticating Agent.

     The Trustee may appoint one or more Authenticating Agents acceptable to the Company with
respect to one or more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of that or those series issued upon original issue, exchange,
registration of transfer, partial redemption or partial repayment or pursuant to Section 3.6, and
Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference
is made in this Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent.

     Each Authenticating Agent must be acceptable to the Company and, except as provided in or
pursuant to this Indenture, shall at all times be a corporation that would be permitted by the
Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture Act,
is authorized under applicable law and by its charter to act as an Authenticating Agent and has a
combined capital and surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture
Act) of at least $50,000,000. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in the manner and with
the effect specified in this Section.

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

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

     The Company agrees to pay each Authenticating Agent from time to time reasonable compensation
for its services under this Section. If the Trustee makes such payments, it shall be entitled to
be reimbursed for such payments, subject to the provisions of Section 6.6.

     The provisions of Sections 3.8, 6.3 and 6.4 shall be applicable to each Authenticating Agent.

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

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

	 	 	 	 	 	 	 
	 	 	[NAME OF TRUSTEE],

          as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

as Authenticating Agent
	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Authorized Officer
	 	 

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

ARTICLE 7

Holders Lists and Reports by Trustee and Company

     Section 7.1. Company to Furnish Trustee Names and Addresses of Holders.

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

     (1) semi-annually with respect to Securities of each series not later than May 15 and
November 15 of the year or upon such other dates as are set forth in or pursuant to the
Board Resolution or indenture supplemental hereto authorizing such series, a list, in each
case in such form as the Trustee may reasonably require, of the names and addresses of
Holders as of the applicable date, and

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

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

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     Section 7.2. Preservation of Information; Communications to Holders.

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

     Every Holder of Securities or Coupons, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company, the Trustee, any Paying Agent or any Security
Registrar shall be held accountable by reason of the disclosure of any such information as to the
names and addresses of the Holders of Securities in accordance with Section 312(c) of the Trust
Indenture Act, regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant to a request made
under Section 312(b) of the Trust Indenture Act.

     Section 7.3. Reports by Trustee.

     (1) Within 60 days after May 15 of each year commencing with the first May 15 following the
first issuance of Securities pursuant to Section 3.1, if required by Section 313(a) or 313(b) of
the Trust Indenture Act, the Trustee shall transmit, pursuant to Section 313(c) of the Trust
Indenture Act, a brief report dated as of such May 15 with respect to any of the events specified
in said Section 313(a) which may have occurred since the later of the immediately preceding May 15
and the date of this Indenture.

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

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

     Section 7.4. Reports by Company.

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

     (1) file with the Trustee, within 15 days after the Company 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, if
the Company is not required to file information, documents or reports pursuant to either of said
Sections, then it shall file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the supplementary and periodic
information, documents and reports which may be required pursuant to Section 13 of the 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

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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 to Holders within 30 days after the filing thereof with the Trustee, in the
manner and to the extent provided in Section 313(c) of the Trust Indenture Act, such summaries of
any information, documents and reports required to be filed by the Company pursuant to paragraphs
(1) and (2) of this Section as may be required by rules and regulations prescribed from time to
time by the Commission. Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not constitute notice of any
information contained therein or determinable from information contained herein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

ARTICLE 8

Consolidation, Amalgamation, Merger and Sales

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

     The Company shall not consolidate or amalgamate with or merge into any other Person (whether
or not affiliated with the Company), or convey, transfer or lease its properties and assets as an
entirety or substantially as an entirety to any other Person (whether or not affiliated with the
Company), and the Company shall not permit any other Person (whether or not affiliated with the
Company) to consolidate or amalgamate with or merge into the Company or convey, transfer or lease
its properties and assets as an entirety or substantially as an entirety to the Company; unless:

     (1) in case the Company shall consolidate or amalgamate with or merge into another Person or
convey, transfer or lease its properties and assets as an entirety or substantially as an entirety
to any Person, the Person formed by such consolidation or amalgamation or into which the Company is
merged or the Person which acquires by conveyance or transfer, or which leases, the properties and
assets of the Company as an entirety or substantially as an entirety shall be a Corporation
organized and existing under the laws of the United States of America, any state thereof or the
District of Columbia and shall expressly assume, by an indenture (or indentures, if at such time
there is more than one Trustee) supplemental hereto, executed by the successor Person and delivered
to the Trustee the due and punctual payment of the principal of, any premium and interest on and
any Additional Amounts with respect to all the Securities and the performance of every obligation
in this Indenture and the Outstanding Securities on the part of the Company to be performed or
observed and shall provide for conversion or exchange rights in accordance with the provisions of
the Securities of any series that are convertible or exchangeable into Common Stock or other
securities;

     (2) immediately after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Company or a Subsidiary as a result of such transaction as having been
incurred by the Company or such Subsidiary at the time of such transaction, no

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Event of Default or event which, after notice or lapse of time, or both, would become an Event
of Default, shall have occurred and be continuing; and

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

     Section 8.2. Successor Person Substituted for Company.

     Upon any consolidation or amalgamation by the Company with or merger of the Company into any
other Person or any conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety to any Person in accordance with Section 8.1, the successor Person
formed by such consolidation or amalgamation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; and thereafter, except in the case of a
lease, the predecessor Person shall be released from all obligations and covenants under this
Indenture, the Securities and the Coupons.

ARTICLE 9

Supplemental Indentures

     Section 9.1. 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, 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 contained herein and in the Securities; or

     (2) to add to the covenants of the Company for the benefit of the Holders of all or any series
of Securities (as shall be specified in such supplemental indenture or indentures) or to surrender
any right or power herein conferred upon the Company; or

     (3) to add to or change any of the provisions of this Indenture to provide that Bearer
Securities may be registrable as to principal, to change or eliminate any restrictions on the
payment of principal of, any premium or interest on or any Additional Amounts with respect to
Securities, to permit Bearer Securities to be issued in exchange for Registered Securities, to
permit Bearer Securities to be exchanged for Bearer Securities of other authorized denominations or
to permit or facilitate the issuance of Securities in uncertificated form, provided any such

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action shall not adversely affect the interests of the Holders of Outstanding Securities of
any series or any Coupons appertaining thereto in any material respect; or

     (4) to establish the form or terms of Securities of any series and any Coupons appertaining
thereto as permitted by Sections 2.1 and 3.1; or

     (5) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of Section 6.9; or

     (6) to cure any ambiguity or 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 adversely affect the
interests of the Holders of Securities of any series then Outstanding or any Coupons appertaining
thereto in any material respect, provided that any amendment made solely to conform the provisions
of this Indenture to the corresponding description of the Securities contained in the applicable
prospectus or prospectus supplement shall be deemed to not adversely affect the interests of the
Holders; or

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

     (8) to add any additional Events of Default with respect to all or any series of Securities
(as shall be specified in such supplemental indenture); or

     (9) 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
Article Four, provided that any such action shall not adversely affect the interests of any Holder
of an Outstanding Security of such series and any Coupons appertaining thereto or any other
Outstanding Security or Coupon in any material respect; or

     (10) to secure the Securities pursuant to Section 10.5 or otherwise; or

     (11) to make provisions with respect to conversion or exchange rights of Holders of Securities
of any series; or

     (12) to amend or supplement any provision contained herein or in any supplemental indenture,
provided that no such amendment or supplement shall materially adversely affect the interests of
the Holders of any Securities then Outstanding.

     Section 9.2. Supplemental Indentures with Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company (when authorized by or

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

     (1) change the Stated Maturity of the principal of, or any premium or installment of interest
on or any Additional Amounts with respect to, any Security, or reduce the principal amount thereof
or the rate (or modify the calculation of such rate) of interest thereon or any Additional Amounts
with respect thereto, or any premium payable upon the redemption thereof or otherwise, or change
the obligation of the Company to pay Additional Amounts pursuant to Section 10.4 (except as
contemplated by Section 8.1(1) and permitted by Section 9.1(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 5.2 or the amount thereof provable in
bankruptcy pursuant to Section 5.4, change the redemption provisions or adversely affect the right
of repayment at the option of any Holder as contemplated by Article Thirteen, or change the Place
of Payment, Currency in which the principal of, any premium or interest on, or any Additional
Amounts with respect to any Security is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date or, in the case of repayment at the option of the
Holder, on or after the date for repayment), or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any series, the
consent of whose Holders is required for any such supplemental indenture, or the consent of whose
Holders is required for any waiver (of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences) provided for in this Indenture, or reduce the
requirements of Section 15.4 for quorum or voting, or

     (3) modify any of the provisions of this Section, Section 5.13 or Section 10.8, except to
increase any such percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding Security affected
thereby, or

     (4) make any change that adversely affects the right to convert or exchange any Security into
or for Common Stock or other securities in accordance with its terms.

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

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

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     Section 9.3. Execution of Supplemental Indentures.

     As a condition to executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trust created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Section 315 of the Trust
Indenture Act) shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture and an
Officers’ Certificate stating that all conditions precedent to the execution of such supplemental
indenture have been fulfilled. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Section 9.4. Effect of Supplemental Indentures.

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

     Section 9.5. 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 satisfactory to 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 9.6. 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 9.7. Notice of Supplemental Indenture.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to Section 9.2, the Company shall transmit to the Holders of Outstanding Securities of any
series affected thereby a notice setting forth the substance of such supplemental indenture.

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ARTICLE 10

Covenants

     Section 10.1. Payment of Principal, any Premium, Interest and Additional Amounts.

     The Company covenants and agrees for the benefit of the Holders of the Securities of each
series that it will duly and punctually pay the principal of, any premium and interest on and any
Additional Amounts with respect to the Securities of such series in accordance with the terms
thereof, any Coupons appertaining thereto and this Indenture. Any interest due on any Bearer
Security on or before the Maturity thereof, and any Additional Amounts payable with respect to such
interest, shall be payable only upon presentation and surrender of the Coupons appertaining thereto
for such interest as they severally mature.

     Section 10.2. Maintenance of Office or Agency.

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

     Except as otherwise provided in or pursuant to this Indenture, no payment of principal,
premium, interest or Additional Amounts with respect to Bearer Securities shall be made at any
Office or Agency 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,

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if amounts owing with respect to any Bearer Securities shall be payable in Dollars, payment of
principal of, any premium or interest on and any Additional Amounts with respect to any such
Security may be made at a designated Corporate Trust Office of the Trustee or any Office or Agency
designated by the Company in the Borough of Manhattan, The City of New York, if (but only if)
payment of the full amount of such principal, premium, interest or Additional Amounts at all
offices outside the United States maintained for such purpose by the Company in accordance with
this Indenture is illegal or effectively precluded by exchange controls or other similar
restrictions.

     The Company may also from time to time designate one or more other Offices or Agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an Office or
Agency in each Place of Payment for Securities of any series for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other Office or Agency. Unless otherwise provided in or pursuant to
this Indenture, the Company hereby designates as the Place of Payment for each series of Securities
located in Minneapolis, Minnesota, and initially appoints the office of the Trustee at Wells Fargo Bank,
N.A., Corporate Trust Operations, 608 Second Avenue South, N9303-121,
Minneapolis, Minnesota, 55479.

     Unless otherwise specified with respect to any Securities pursuant to Section 3.1, 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 this
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 10.3. Money for Securities Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it shall, on or before each due date of the principal of, any premium or interest on or
Additional Amounts with respect to any of the Securities of such 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 3.1 for the Securities of such series)
sufficient to pay the principal or any premium, interest or Additional Amounts so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and
shall promptly notify the Trustee of its action or failure so to act.

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

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

     (1) hold all sums held by it for the payment of the principal of, any premium or interest on
or any Additional Amounts with respect to Securities of such series in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as
provided in or pursuant to this Indenture;

     (2) give the Trustee notice of any default by the Company (or any other obligor upon the
Securities of such series) in the making of any payment of principal, any premium or interest on or
any Additional Amounts with respect to the Securities of such series; and

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

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

     Except
as otherwise provided herein or pursuant hereto and subject to any
applicable escheat and abandoned property laws, 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, any
premium or interest on or any Additional Amounts with respect to any Security of any series or any
Coupon appertaining thereto and remaining unclaimed for two years after such principal or any such
premium or interest or any such Additional Amounts shall have become due and payable shall be paid
to the Company on Company Request, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security or any Coupon appertaining thereto shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the Company cause to be
published once, in an Authorized Newspaper in each Place of Payment for such series or to be mailed
to Holders of Registered Securities of such series, or both, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication or mailing nor shall it be later than two years after such principal and
any premium or interest or Additional Amounts shall have become due and payable, any unclaimed
balance of such money then remaining will be repaid to the Company.

     Section 10.4. Additional Amounts.

     If any Securities of a series provide for the payment of Additional Amounts, the Company
agrees to pay to the Holder of any such Security or any Coupon appertaining thereto

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

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

     Section 10.5. Limitation on Liens.

     The Company agrees that it will not, and will not permit any Restricted Subsidiary to, create,
incur, issue, assume or guarantee any notes, bonds, debentures or other similar evidence of
indebtedness for money borrowed (“Debt”), secured by a Mortgage upon any Operating Property, or
upon shares of capital stock or Debt issued by any Restricted Subsidiary and owned by the Company
or any Restricted Subsidiary, whether owned at the date of this Indenture or hereafter acquired,
without effectively providing concurrently that the Outstanding Securities hereunder (together
with, if the Company shall so determine, any other Debt of the Company or such Restricted
Subsidiary then existing or thereafter created which is not subordinate to the Securities) shall be
secured equally and ratably with or, at the option of the Company, prior to such Debt so long as
such Debt shall be so secured, unless, at the time of such creation, incurrence, issuance,
assumption or guarantee, after giving effect thereto and to the retirement of any Debt which is
concurrently being retired, the aggregate amount of all such Debt secured by Mortgages which

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would otherwise be subject to such restrictions (other than any Debt secured by Mortgages permitted
in Clauses (1) through (7) of this Section 10.5), together with all Attributable Debt with respect
to Sale and Leaseback Transactions (other than certain Sale and Leaseback Transactions that are
permitted under paragraph (b) of Section 10.6 below) would not exceed the greater of (i) 15% of
Consolidated Net Assets and (ii) $150,000,000; provided, however, that this Section shall not apply
to, and there shall be excluded from Debt in any computation under this Section, Debt secured by:

     (1) Mortgages on property existing at the time of the acquisition thereof;

     (2) Mortgages on property of a Corporation existing at the time such Corporation is merged
into or consolidated with the Company or a Restricted Subsidiary or at the time of a sale, lease or
other disposition of the properties of such Corporation (or a division thereof) as an entirety or
substantially as an entirety to the Company or a Restricted Subsidiary, provided that any such
Mortgage does not extend to any property owned by the Company or Restricted Subsidiary immediately
prior to such merger, consolidation, sale, lease or disposition;

     (3) Mortgages on property of a corporation existing at the time such corporation becomes a
Restricted Subsidiary;

     (4) Mortgages in favor of the Company or a Restricted Subsidiary;

     (5) Mortgages to secure all or part of the cost of acquisition, construction, development or
improvement of the underlying property, or to secure Debt incurred to provide funds for any such
purpose, provided that the commitment of the creditor to extend the credit secured by any such
Mortgage shall have been obtained not later than 365 days after the later of (A) the completion of
the acquisition, construction, development or improvement of such property or (B) the placing in
operation of such property;

     (6) Mortgages in favor of the United States of America or any State thereof, or any
department, agency or instrumentality or political subdivision thereof, to secure partial,
progress, advance or other payments; and

     (7) Mortgages existing on the date of this Indenture or any extension, renewal, replacement or
refunding of any Debt secured by a Mortgage existing on the date of this Indenture or referred to
in clauses (1) to (3) or (5) of this Section 10.5, provided that the principal amount of Debt
secured thereby and not otherwise authorized by clauses (1) to (3) or (5) shall not exceed the
principal amount of Debt, plus any premium or fee payable in connection with any such extension,
renewal, replacement or refunding, so secured at the time of such extension, renewal, replacement
or refunding.

     Section 10.6. Limitation on Sale and Leaseback

     (a) The Company agrees that it will not, and will not permit any Restricted Subsidiary to
enter into any arrangement with any person providing for the leasing by the Company or any Restricted Subsidiary of any Operating Property that has been or is to be sold or

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transferred by the Company or such Restricted Subsidiary to such person with the intention of
taking back a lease of such property (a “Sale and Leaseback Transaction”), without equally and
ratably securing the Securities (and, if the Company shall so determine, any other Debt ranking
equally with the Securities), unless the terms of such sale or transfer have been determined by the
Board of Directors to be fair and arm’s-length and either:

	 	•	 	within 180 days after the receipt of the proceeds of the sale or transfer, the
Company or any Restricted Subsidiary applies an amount equal to the greater of the net
proceeds of the sale or transfer or the fair value of such Operating Property at the
time of such sale or transfer to the prepayment or retirement (other than any mandatory
prepayment or retirement) of Senior Funded Debt; or
	 
	 	•	 	the Company or such Restricted Subsidiary would be entitled, at the effective
date of the sale or transfer, to incur Debt secured by a Mortgage on such Operating
Property, in an amount at least equal to the Attributable Debt in respect of the Sale
and Leaseback Transaction, without equally and ratably securing the Securities pursuant
to Section 10.5 above.

     (b) The foregoing restriction in paragraph (a) above will not apply to any Sale and Leaseback
Transaction (i) for a term of not more than three years including renewals, or (ii) between the
Company and a Restricted Subsidiary or between Restricted Subsidiaries provided that the lessor
shall be the Company or a wholly owned Restricted Subsidiary.

     Section 10.7. Corporate Existence.

     Subject to Article Eight, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and that of each Subsidiary and
their respective rights (charter and statutory) and franchises; provided, however, that the
foregoing shall not obligate the Company or any Subsidiary to preserve any such right or franchise
if the Company or any Subsidiary shall determine that the preservation thereof is no longer
desirable in the conduct of its business or the business of such Subsidiary and that the loss
thereof is not disadvantageous in any material respect to any Holder.

     Section 10.8. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 10.5 or 10.6 with respect to the Securities of any series if before
the time for such compliance the Holders of at least a majority in principal amount of the
Outstanding Securities of such series, by Act of such Holders, either shall waive such compliance
in such instance or generally shall have waived compliance with such term, provision or condition,
but no such waiver shall extend to or affect such term, provision or condition except to the extent
so expressly waived, and, until such waiver shall become effective, the obligations of the Company
and the duties of the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

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     Section 10.9. Company Statement as to Compliance; Notice of Certain Defaults.

     (1) The Company shall deliver to the Trustee, within 120 days after the end of each fiscal
year, a written statement (which need not be contained in or accompanied by an Officers’
Certificate) signed by the principal executive officer, the principal financial officer or the
principal accounting officer of the Company, stating that

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

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

     (2) The Company shall deliver to the Trustee, within five days after the occurrence thereof,
written notice of any Event of Default or any event which after notice or lapse of time or both
would become an Event of Default pursuant to clause (4) of Section 5.1.

     (3) The Trustee shall have no duty to monitor the Company’s compliance with the covenants
contained in this Article 10 other than as specifically set forth in this Section 10.9.

ARTICLE 11

Redemption of Securities

     Section 11.1. Applicability of Article.

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

     Section 11.2. 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 (a) less than all of
the Securities of any series or (b) all of the Securities of any series, with the same issue date,
interest rate or formula, Stated Maturity and other terms, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities
of such series to be redeemed.

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     Section 11.3. Selection by Trustee of Securities to be Redeemed.

     If less than all of the Securities of any series with the same issue date, interest rate or
formula, Stated Maturity and other terms are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 60 days and not less
then 30 days prior to the Redemption Date by the Trustee from
the Outstanding Securities of such series not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the selection for redemption
of portions of the principal amount of Registered Securities of such series; provided, however,
that no such partial redemption shall reduce the portion of the principal amount of a Registered
Security of such series not redeemed to less than the minimum denomination for a Security of such
series established herein or pursuant hereto.

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

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

     Unless otherwise specified in or pursuant to this Indenture or the Securities of any series,
if any Security selected for partial redemption is converted into Common Stock or exchanged for
other securities in part before termination of the conversion or exchange right with respect to the
portion of the Security so selected, the converted portion of such Security shall be deemed (so far
as may be) to be the portion selected for redemption. Securities which have been converted or
exchanged during a selection of Securities to be redeemed shall be treated by the Trustee as
Outstanding for the purpose of such selection.

     Section 11.4. Notice of Redemption.

     Notice of redemption shall be given in the manner provided in Section 1.6, not less than 30
nor more than 60 days prior to the Redemption Date, unless a shorter period is specified in the
Securities to be redeemed, to the Holders of Securities to be redeemed. Failure to give notice by
mailing in the manner herein provided to the Holder of any Registered Securities designated for
redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect
the validity of the proceedings for the redemption of any other Securities or portion thereof.

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

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price,

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     (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 of such Security will receive, without charge, a new Security or Securities of authorized
denominations for the principal amount thereof remaining unredeemed,

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

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

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

     (8) 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 fixed
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, the Trustee and any
Paying Agent is furnished,

     (9) if Bearer Securities of any series are to be redeemed and no Registered Securities of such
series are to be redeemed, and if such Bearer Securities may be exchanged for Registered Securities
not subject to redemption on the Redemption Date pursuant to Section 3.5 or otherwise, the last
date, as determined by the Company, on which such exchanges may be made,

     (10) in the case of Securities of any series that are convertible into Common Stock or
exchangeable for other securities, the conversion or exchange price or rate, the date or dates on
which the right to convert or exchange the principal of the Securities of such series to be
redeemed will commence or terminate and the place or places where such Securities may be
surrendered for conversion or exchange, and

     (11) the
CUSIP number and/or similar numbers of such Securities, if
any (or any other numbers used by a Depositary to identify such Securities).

     A notice of redemption published as contemplated by Section 1.6 need not identify particular
Registered Securities to be redeemed.

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

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     Section 11.5. Deposit of Redemption Price.

     On or prior to any Redemption Date, the Company shall deposit, with respect to the Securities
of any series called for redemption pursuant to Section 11.4, with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.3) an amount of money in the applicable Currency sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date, unless
otherwise specified pursuant to Section 3.1 or in the Securities of such series) any accrued
interest on and Additional Amounts with respect thereto, all such Securities or portions thereof
which are to be redeemed on that date.

     Section 11.6. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest 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 any accrued interest
and Additional Amounts to the Redemption Date; provided, however, that, except as otherwise
provided in or pursuant to this Indenture or the Bearer Securities of such series, installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable only upon presentation and surrender of Coupons for such interest (at an Office or Agency
located outside the United States except as otherwise provided in Section 10.2), and provided,
further, that, except as otherwise specified in or pursuant to this Indenture or the Registered
Securities of such series, installments of interest on Registered Securities whose Stated Maturity
is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or
more Predecessor Securities, registered as such at the close of business on the Regular Record
Dates therefor according to their terms and the provisions of Section 3.7.

     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 any interest or Additional Amounts represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an Office or Agency for such Security located
outside of the United States except as otherwise provided in Section 10.2.

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

     Section 11.7. Securities Redeemed in Part.

     Any Registered Security which is to be redeemed only in part shall be surrendered at any
Office or Agency for such Security (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security
without service charge, a new Registered Security or Securities of the same series, containing
identical terms and provisions, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered. If a Security in global form is so surrendered, the Company shall
execute, and the Trustee shall authenticate and deliver to the U.S. Depositary or other Depositary
for such Security in global form as shall be specified in the Company Order with respect thereto to
the Trustee, without service charge, a new Security in global form in a denomination equal to and
in exchange for the unredeemed portion of the principal of the Security in global form so
surrendered.

ARTICLE 12

Sinking Funds

     Section 12.1. Applicability of Article.

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

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of
such minimum amount provided for by the terms of Securities of such series is herein referred to as
an “optional sinking fund payment”. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 12.2.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series and this Indenture.

     Section 12.2. Satisfaction of Sinking Fund Payments with Securities.

     The Company may, in satisfaction of all or any part of any sinking fund payment with respect
to the Securities of any series to be made pursuant to the terms of
such Securities, accompanied by a written notice to the Trustee, (1) deliver
Outstanding Securities of such series (other than any of such Securities previously called for
redemption or any of such Securities in respect of which cash shall have been released to the

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Company), together in the case of any Bearer Securities of such series with all unmatured
Coupons appertaining thereto, and (2) apply as a credit Securities of such series which have been
redeemed either at the election of the Company pursuant to the terms of such series of Securities
or through the application of permitted optional sinking fund payments pursuant to the terms of
such Securities, provided that such series of Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee at the Redemption
Price specified in such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly. If, as a result of the delivery
or credit of Securities of any series in lieu of cash payments pursuant to this Section 12.2, the
principal amount of Securities of such series to be redeemed in order to satisfy the remaining
sinking fund payment shall be less than $100,000, the Trustee need not call Securities of such
series for redemption, except upon Company Request, and such cash payment shall be held by the
Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided,
however, that the Trustee or such Paying Agent shall at the request of the Company from time to
time pay over and deliver to the Company any cash payment so being held by the Trustee or such
Paying Agent upon delivery by the Company to the Trustee of Securities of that series purchased by
the Company having an unpaid principal amount equal to the cash payment requested to be released to
the Company.

     Section 12.3. Redemption of Securities for Sinking Fund.

     Not less than 75 days prior to each sinking fund payment date for any series of Securities,
the Company shall deliver to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing mandatory sinking fund payment for that series pursuant to the terms of that series, the
portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting of Securities of that series pursuant to
Section 12.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory
sinking fund payment, and will also deliver to the Trustee any Securities to be so credited and not
theretofore delivered. If such Officers’ Certificate shall specify an optional amount to be added
in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be
obligated to pay the amount therein specified. Not less than 60 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment
date in the manner specified in Section 11.3 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in Section 11.4. Such
notice having been duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 11.6 and 11.7.

ARTICLE 13

Repayment at the Option of Holders

     Section 13.1. Applicability of Article.

     Securities of any series which are repayable at the option of the Holders thereof before their
Stated Maturity shall be repaid in accordance with the terms of the Securities of such series. The
repayment of any principal amount of Securities pursuant to such option of the Holder to

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require repayment of Securities before their Stated Maturity, for purposes of Section 3.9,
shall not operate as a payment, redemption or satisfaction of the indebtedness represented by such
Securities unless and until the Company, at its option, shall deliver or surrender the same to the
Trustee with a directive that such Securities be cancelled. Notwithstanding anything to the
contrary contained in this Section 13.1, in connection with any repayment of Securities, the
Company may arrange for the purchase of any Securities by an agreement with one or more investment
bankers or other purchasers to purchase such Securities by paying to the Holders of such Securities
on or before the close of business on the repayment date an amount not less than the repayment
price payable by the Company on repayment of such Securities, and the obligation of the Company to
pay the repayment price of such Securities shall be satisfied and discharged to the extent such
payment is so paid by such purchasers.

ARTICLE 14

Securities in Foreign Currencies

     Section 14.1. Applicability of Article.

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

ARTICLE 15

Meetings of Holders of Securities

     Section 15.1. 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 Act provided by this Indenture to be made, given or taken by
Holders of Securities of such series.

     Section 15.2. Call, Notice and Place of Meetings.

     (1) The Trustee may at any time call a meeting of Holders of Securities of any series for any
purpose specified in Section 15.1, to be held at such time and at such place in the Borough of
Manhattan, The City of New York, or, if Securities of such series have been issued in whole or

75

 

in part as Bearer Securities, in London or in such place outside the United States 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 1.6, not less than 21 nor more
than 180 days prior to the date fixed for the meeting.

     (2) In case at any time the Company (by or 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 15.1, by written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have mailed notice of or made the first publication
of the notice of such meeting within 21 days after receipt of such request (whichever shall be
required pursuant to Section 1.6) or shall not thereafter proceed to cause the meeting to be held
as provided herein, then the Company or the Holders of Securities of such series in the amount
above specified, as the case may be, may determine the time and the place in the Borough of
Manhattan, The City of New York, or, if Securities of such series are to be issued as Bearer
Securities, in London for such meeting and may call such meeting for such purposes by giving notice
thereof as provided in clause (1) of this Section.

     Section 15.3. 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 15.4. Quorum; Action.

     The Persons entitled to vote a majority in principal amount of the Outstanding Securities of a
series shall constitute a quorum for any meeting of Holders of Securities of such series. In the
absence of a quorum within 30 minutes after the time appointed for any such meeting, the meeting
shall, if convened at the request of Holders of Securities of such series, be dissolved. In any
other case the meeting may be adjourned for a period of not less than 10 days as determined by the
chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at
any reconvened meeting, such reconvened 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
reconvened meeting. Notice of the reconvening of any adjourned meeting shall be given as provided
in Section 15.2(1), except that such notice need be given only once not less than five days prior
to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly the percentage, as provided above, of the principal amount
of the Outstanding Securities of such series which shall constitute a quorum.

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     Except as limited by the proviso to Section 9.2, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted only by
the affirmative vote of the Holders of a majority in principal amount of the Outstanding Securities
of that series; provided, however, that, except as limited by the proviso to Section 9.2, any
resolution with respect to any request, demand, authorization, direction, notice, consent, waiver
or other Act which this Indenture expressly provides may be made, given or taken by the Holders of
a specified percentage, which is less than a majority, in principal amount of the Outstanding
Securities of a series may be adopted at a meeting or an adjourned meeting duly reconvened and at
which a quorum is present as aforesaid by the affirmative vote of the Holders of such specified
percentage in principal amount of the Outstanding Securities of such series.

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

     Section 15.5. Determination of Voting Rights; Conduct and Adjournment of Meetings.

     (1) Notwithstanding any other provisions of this Indenture, the Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Holders of Securities of such
series in regard to proof of the holding of Securities of such series and of the appointment of
proxies and in regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate. Except as otherwise
permitted or required by any such regulations, the holding of Securities shall be proved in the
manner specified in Section 1.4 and the appointment of any proxy shall be proved in the manner
specified in Section 1.4 or by having the signature of the person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 1.4 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 1.4
or other proof.

     (2) The Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders of Securities as
provided in Section 15.2(2), 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.

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

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     (4) Any meeting of Holders of Securities of any series duly called pursuant to Section 15.2 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 15.6. Counting Votes and Recording Action of Meetings.

     The vote upon any resolution submitted to any meeting of Holders of Securities of any series
shall be by written ballots on which shall be subscribed the signatures of the Holders of
Securities of such series or of their representatives by proxy and the principal amounts and serial
numbers of the Outstanding Securities of such series held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the secretary of the meeting
their verified written reports in triplicate of all votes cast at the meeting. A record, at least
in triplicate, of the proceedings of each meeting of Holders of Securities of any series shall be
prepared by the secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more persons having knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 15.2 and, if applicable, Section 15.4.
Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one such copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any record so signed and verified shall be conclusive evidence of the matters therein stated.

* * * * *

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

	 	 	 	 	 	 	 
	 	 	NORDSTROM, INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 
	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK,  NATIONAL ASSOCIATION	 	 
	 

	 	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 
	 	 

Name:
	 	 
	 

	 	 	 	Title:

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