Document:

Exhibit 10.1

 

THE
BANK HOLDINGS,

as Company

 

INDENTURE

Dated as of November 3, 2005

U.S. BANK NATIONAL ASSOCIATION,

As Trustee

JUNIOR SUBORDINATED DEBT SECURITIES 

 

Due December 15, 2035

 

 

TABLE
CONTENTS

 

	
  ARTICLE I

  
	
  DEFINITIONS

  
	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Additional
  Interest

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Additional
  Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authenticating
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Bankruptcy
  Law

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Board
  of Directors

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Board
  Resolution

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Business
  Day

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Calculation
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Capital
  Securities

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Capital
  Securities Guarantee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Capital
  Treatment Event

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Common
  Securities

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Company

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Debt
  Security

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Debt
  Security Register

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Declaration

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Default

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Defaulted
  Interest

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Deferred
  Interest

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Event of
  Default

  	
   

  
				

 

i

 

	
   

  	
  Extension
  Period

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Federal
  Reserve

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Indenture

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Initial
  Purchaser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Institutional
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Interest
  Payment Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Interest
  Rate

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Investment
  Company Event

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LIBOR

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LIBOR Banking Day

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LIBOR
  Business Day

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LIBOR
  Determination Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Liquidation
  Amount

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Maturity
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Officers’
  Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Opinion
  of Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Outstanding

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Paying
  Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Person

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Predecessor
  Security

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Principal
  Office of the Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Redemption
  Date

  	
   

  

 

ii

 

	
   

  	
  Redemption
  Price

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Responsible
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Securityholder

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Senior
  Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Special
  Event

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Special
  Redemption Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Subsidiary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tax Event

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Trust

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Trust
  Indenture Act

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Trust
  Securities

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  United
  States

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. Person

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
  DEBT SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Authentication
  and Dating

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.02.

  	
  Form of
  Trustee’s Certificate of Authentication

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.03.

  	
  Form and
  Denomination of Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.04.

  	
  Execution
  of Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.05.

  	
  Exchange
  and Registration of Transfer of Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.06.

  	
  Mutilated,
  Destroyed, Lost or Stolen Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.07.

  	
  Temporary
  Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.08.

  	
  Payment of
  Interest

  	
   

  
				

 

iii

 

	
  SECTION 2.09.

  	
  Cancellation
  of Debt Securities Paid, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.10.

  	
  Computation
  of Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.11.

  	
  Extension
  of Interest Payment Period

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.12.

  	
  CUSIP
  Numbers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
  PARTICULAR COVENANTS OF THE COMPANY

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Payment of Principal, Premium and Interest; Agreed Treatment of the
  Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.02.

  	
  Offices for Notices and Payments, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.03.

  	
  Appointments to Fill Vacancies in Trustee’s Office

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.04.

  	
  Provision as to Paying Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.05.

  	
  Certificate to Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.06.

  	
  Additional Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.07.

  	
  Compliance with Consolidation Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.08.

  	
  Limitation on Dividends

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.09.

  	
  Covenants as to the Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
  LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Securityholders’ Lists

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.02.

  	
  Preservation and Disclosure of Lists

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.02.

  	
  Payment of Debt Securities on Default; Suit Therefor

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.03.

  	
  Application of Moneys Collected by Trustee

  	
   

  

 

iv

 

	
  SECTION 5.04.

  	
  Proceedings by Securityholders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.05.

  	
  Proceedings by Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.06.

  	
  Remedies Cumulative and Continuing

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.07.

  	
  Direction of Proceedings and Waiver of Defaults by Majority of
  Securityholders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.08.

  	
  Notice of Defaults

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.09.

  	
  Undertaking to Pay Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
  CONCERNING THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Duties and Responsibilities of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.02.

  	
  Reliance on Documents, Opinions, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.03.

  	
  No Responsibility for Recitals, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.04.

  	
  Trustee, Authenticating Agent, Paying Agents, Transfer Agents or
  Registrar May Own Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.05.

  	
  Moneys to be Held in Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.06.

  	
  Compensation and Expenses of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.07.

  	
  Officers’ Certificate as Evidence

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.08.

  	
  Eligibility of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.09.

  	
  Resignation or Removal of Trustee, Calculation Agent, Paying Agent or
  Debt Security Registrar

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.10.

  	
  Acceptance by Successor

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.11.

  	
  Succession by Merger, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.12.

  	
  Authenticating Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
  CONCERNING THE SECURITYHOLDERS

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Action by Securityholders

  	
   

  

 

v

 

	
  SECTION 7.02.

  	
  Proof of Execution by Securityholders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.03.

  	
  Who Are Deemed Absolute Owners

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.04.

  	
  Debt Securities Owned by Company Deemed Not Outstanding

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.05.

  	
  Revocation of Consents; Future Securityholders Bound

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
  SECURITYHOLDERS’ MEETINGS

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Purposes of Meetings

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.02.

  	
  Call of Meetings by Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.03.

  	
  Call of Meetings by Company or Securityholders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.04.

  	
  Qualifications for Voting

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.05.

  	
  Regulations

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.06.

  	
  Voting

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.07.

  	
  Quorum; Actions

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.08.

  	
  Written Consent Without a Meeting

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Supplemental Indentures without Consent of Securityholders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.02.

  	
  Supplemental Indentures with Consent of Securityholders

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.03.

  	
  Effect of Supplemental Indentures

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.04.

  	
  Notation on Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.05.

  	
  Evidence of Compliance of Supplemental Indenture to be furnished to
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
  REDEMPTION OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Optional Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.02.

  	
  Special Event Redemption

  	
   

  

 

vi

 

	
  SECTION 10.03.

  	
  Notice of Redemption; Selection of Debt Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.04.

  	
  Payment of Debt Securities Called for Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
  CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  Company May Consolidate, etc., on Certain Terms

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.02.

  	
  Successor Entity to be Substituted

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.03.

  	
  Opinion of Counsel to be Given to Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
  SATISFACTION AND DISCHARGE OF INDENTURE

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
  Discharge of Indenture

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.02.

  	
  Deposited Moneys to be Held in Trust by Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.03.

  	
  Paying Agent to Repay Moneys Held

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.04.

  	
  Return of Unclaimed Moneys

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  
	
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  
	
   

  	
   

  	
   

  
	
  SECTION 13.01.

  	
  Indenture and Debt Securities Solely Corporate Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  
	
  MISCELLANEOUS PROVISIONS

  
	
   

  	
   

  	
   

  
	
  SECTION 14.01.

  	
  Successors

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.02.

  	
  Official Acts by Successor Entity

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.03.

  	
  Surrender of Company Powers

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.04.

  	
  Addresses for Notices, etc

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.05.

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.06.

  	
  Evidence of Compliance with Conditions Precedent

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.07.

  	
  Non-Business Days

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.08.

  	
  Table of Contents, Headings, etc

  	
   

  

 

vii

 

	
  SECTION 14.09.

  	
  Execution in Counterparts

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.10.

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.11.

  	
  Assignment

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14.12.

  	
  Acknowledgment of Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV

  
	
  SUBORDINATION OF DEBT SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 15.01.

  	
  Agreement to Subordinate

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15.02.

  	
  Default on Senior Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15.03.

  	
  Liquidation; Dissolution; Bankruptcy

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15.04.

  	
  Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15.05.

  	
  Trustee to Effectuate Subordination

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15.06.

  	
  Notice by the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15.07.

  	
  Rights of the Trustee, Holders of Senior Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15.08.

  	
  Subordination May Not Be Impaired

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  FORM OF DEBT SECURITY

  	
   

  

 

viii

 

THIS INDENTURE, dated as of November 3,
2005, between The Bank Holdings, a
bank holding company incorporated in Nevada
(hereinafter sometimes called the “Company”), and U.S. Bank National
Association as trustee (hereinafter sometimes called the “Trustee”).

 

W I T N E S S E T H:

 

WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issuance of its Junior Subordinated Debt Securities due December 15, 2035 (the “Debt Securities”)
under this Indenture and to provide, among other things, for the execution and
authentication, delivery and administration thereof, the Company has duly
authorized the execution of this Indenture.

 

NOW, THEREFORE, in consideration of the premises, and the purchase of
the Debt Securities by the holders thereof, the Company covenants and agrees
with the Trustee for the equal and proportionate benefit of the respective
holders from time to time of the Debt Securities as follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01.  Definitions.

 

The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes
of this Indenture and of any indenture supplemental hereto shall have the
respective meanings specified in this Section 1.01. All accounting terms
used herein and not expressly defined shall have the meanings assigned to such
terms in accordance with generally accepted accounting principles and the term “generally
accepted accounting principles” means such accounting principles as are
generally accepted in the United States at the time of any computation. The
words “herein,” “hereof’ and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

 

“Additional Interest“ shall
have the meaning set forth in Section 3.06.

 

“Additional Provisions“ shall
have the meaning set forth in Section 15.01.

 

“Authenticating Agent“ means
any agent or agents of the Trustee which at the time shall be appointed and
acting pursuant to Section 6.12.

 

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

 

“Board of Directors“ means the
board of directors or the executive committee or any other duly authorized
designated officers of the Company.

 

 

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

 

“Business Day“ means any day other
than a Saturday, Sunday or any other day on which banking institutions in
Boston, Massachusetts, New York City or the city of the Principal Office of the
Trustee or the Company are permitted or required by any applicable law or
executive order to close.

 

“Calculation Agent“ means the
Person identified as “Trustee” in the first paragraph hereof with respect to
the Debt Securities and the Institutional Trustee with respect to the Trust
Securities.

 

“Capital Securities“ means
undivided beneficial interests in the assets of the Trust which are designated
as “TP Securities” and rank pari passu with Common Securities issued by the
Trust; provided, however, that if an Event of Default (as defined in the
Declaration) has occurred and is continuing, the rights of holders of such
Common Securities to payment in respect of distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights of holders
of such Capital Securities.

 

“Capital Securities Guarantee“
means the guarantee agreement that the Company will enter into with U.S. Bank
National Association or other Persons that operates directly or indirectly for
the benefit of holders of Capital Securities of the Trust.

 

“Capital Treatment Event“ means, if
the Company is organized and existing under the laws of the United States or
any state thereof or the District of Columbia, the receipt by the Company and
the Trust of an Opinion of Counsel experienced in such matters to the effect
that, as a result of (a) any amendment to, or change in, the laws, rules or
regulations of the United States or any political subdivision thereof or
therein, or any rules, guidelines or policies of any applicable regulatory
authority for the Company or (b) any official or administrative
pronouncement or action or decision interpreting or applying such laws, rules or
regulations, which amendment or change is effective or which pronouncement,
action or decision is announced on or after the date of original issuance of
the Debt Securities, there is more than an insubstantial risk that, within 90
days of the receipt of such opinion, the aggregate Liquidation Amount of the
Capital Securities will not be eligible to be treated by the Company as “Tier 1
Capital” (or the then equivalent thereof) for purposes of the capital adequacy
guidelines of the Federal Reserve (or any successor regulatory authority with
jurisdiction over bank or financial holding companies), as then in effect and
applicable to the Company (or if the Company is not a bank holding company,
such guidelines applied to the Company as if the Company were subject to such
guidelines); provided, however, that the inability of the Company to treat all
or any portion of the aggregate Liquidation Amount of the Capital Securities as
Tier 1 Capital shall not constitute the basis for a Capital Treatment
Event, if such inability results from the Company having cumulative preferred
stock, minority interests in consolidated subsidiaries, or any other class of
security or interest which the Federal Reserve or OTS, as applicable, may now
or hereafter accord Tier 1 Capital treatment in excess of the amount which
may now or hereafter qualify for treatment as Tier 1 Capital under
applicable capital adequacy guidelines; provided further, however, that the
distribution of the Debt Securities in connection with the liquidation of

 

2

 

the Trust by the Company shall not in and of itself
constitute a Capital Treatment Event unless such liquidation shall have
occurred in connection with a Tax Event or an Investment Company Event.

 

“Certificate“ means a certificate
signed by any one of the principal executive officer, the principal financial
officer or the principal accounting officer of the Company.

 

“Common Securities“ means undivided
beneficial interests in the assets of the Trust which are designated as “Common
Securities” and rank pari passu with Capital Securities issued by the Trust;
provided, however, that if an Event of Default (as defined in the Declaration)
has occurred and is continuing, the rights of holders of such Common Securities
to payment in respect of distributions and payments upon liquidation,
redemption and otherwise are subordinated to the rights of holders of such
Capital Securities.

 

“Company“ means The Bank Holdings, a bank holding company incorporated in Nevada, and, subject to the provisions of Article XI,
shall include its successors and assigns.

 

“Debt Security“ or “Debt Securities”
has the meaning stated in the first recital of this Indenture.

 

“Debt Security Register“ has the
meaning specified in Section 2.05.

 

“Declaration“ means the Amended and
Restated Declaration of Trust of the Trust dated as of November 3, 2005, as amended or supplemented from time to
time.

 

“Default“ means any event, act or condition
that with notice or lapse of time, or both, would constitute an Event of
Default.

 

“Defaulted Interest“ has the meaning
set forth in Section 2.08.

 

“Deferred Interest“ has the meaning
set forth in Section 2.11.

 

“Event of Default“ means any event
specified in Section 5.01, which has continued for the period of time, if
any, and after the giving of the notice, if any, therein designated.

 

“Extension Period“ has the meaning set
forth in Section 2.11.

 

“Federal Reserve“ means the Board of
Governors of the Federal Reserve System. 

 

“Indenture“ means this instrument as
originally executed or, if amended or supplemented as herein provided, as so
amended or supplemented, or both.

 

“Initial
Purchaser“ means the initial purchaser of the Capital Securities.

 

“Institutional Trustee“ has the
meaning set forth in the Declaration.

 

“Interest Payment Date“ means March 15, June 15,
September 15 and December 15 of each year, commencing on December 15, 2005, during the term of this
Indenture.

 

3

 

“Interest Payment Period” means the period
from and including an Interest Payment Date, or in the case of the first
Interest Payment Period, the original date of issuance of the Debt Securities,
to, but excluding, the next succeeding Interest Payment Date or, in the case of
the last Interest Payment Period, the Redemption Date, Special Redemption Date
or Maturity Date, as the case may be.

 

“Interest Rate“ means, with respect to
any Interest Period, a per annum rate of interest, equal to LIBOR, as
determined on the LIBOR Determination Date for such Interest Payment Date, plus
1.42%; provided, however, that the
Interest Rate for any Interest Payment Period may not exceed the highest rate
permitted by New York law, as the same may be modified by United States law of
general application.

 

“Investment Company Event“ means
the receipt by the Company and the Trust of an Opinion of Counsel experienced
in such matters to the effect that, as a result of a change in law or
regulation or written change in interpretation or application of law or
regulation by any legislative body, court, governmental agency or regulatory
authority, there is more than an insubstantial risk that the Trust is or,
within 90 days of the date of such opinion will be, considered an “investment
company” that is required to be registered under the Investment Company Act of
1940, as amended, which change or prospective change becomes effective or would
become effective, as the case may be, on or after the date of the original
issuance of the Debt Securities.

 

“LIBOR“ means the London Interbank Offered
Rate for U.S. Dollar deposits in Europe as determined by the Calculation Agent
according to Section 2.10(b).

 

“LIBOR Banking Day“ has the meaning set forth
in Section 2.10(b)(1).

 

“LIBOR Business Day“ has the meaning
set forth in Section 2.10(b)(1).

 

“LIBOR Determination Date“ has the
meaning set forth in Section 2.10(b).

 

“Liquidation Amount“ means the
liquidation amount of $1,000 per Trust Security.

 

“Maturity Date“ means December 15, 2035.

 

“Notice“ has the meaning set forth in Section 2.11.

 

“Officers’ Certificate“ means a
certificate signed by the Chairman of the Board, the Vice Chairman, the
President or any Vice President, and by the Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Comptroller, an Assistant Comptroller,
the Secretary or an Assistant Secretary of the Company, and delivered to the
Trustee. Each such certificate shall include the statements provided for in Section 14.06
if and to the extent required by the provisions of such Section.

 

“Opinion of Counsel“ means an
opinion in writing signed by legal counsel, who may be an employee of or
counsel to the Company, or may be other counsel reasonably satisfactory to the
Trustee. Each such opinion shall include the statements provided for in Section 14.06
if and to the extent required by the provisions of such Section.

 

4

 

“OTS“ means the Office of Thrift Supervision
and any successor federal agency that is primarily responsible for regulating
the activities of savings and loan holding companies.

 

“Outstanding“ means, when used with
reference to Debt Securities, subject to the provisions of Section 7.04,
as of any particular time, all Debt Securities authenticated and delivered by
the Trustee or the Authenticating Agent under this Indenture, except

 

(a)           Debt Securities
theretofore canceled by the Trustee or the Authenticating Agent or delivered to
the Trustee for cancellation;

 

(b)           Debt Securities, or
portions thereof, for the payment or redemption of which moneys in the
necessary amount shall have been deposited in trust with the Trustee or with
any Paying Agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own Paying
Agent); provided, that, if such Debt Securities, or portions thereof,
are to be redeemed prior to maturity thereof, notice of such redemption shall
have been given as provided in Articles X and XIV or provision satisfactory to
the Trustee shall have been made for giving such notice; and

 

(c)           Debt Securities paid
pursuant to Section 2.06 or in lieu of or in substitution for which other
Debt Securities shall have been authenticated and delivered pursuant to the
terms of Section 2.06 unless proof satisfactory to the Company and the
Trustee is presented that any such Debt Securities are held by bona fide
holders in due course.

 

“Paying Agent“ has the meaning set
forth in Section 3.04(e).

 

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

 

“Predecessor Security“ of any
particular Debt Security means every previous Debt Security evidencing all or a
portion of the same debt as that evidenced by such particular Debt Security;
and, for the purposes of this definition, any Debt Security authenticated and
delivered under Section 2.06 in lieu of a lost, destroyed or stolen Debt
Security shall be deemed to evidence the same debt as the lost, destroyed or
stolen Debt Security.

 

“Principal Office of the Trustee“
means the office of the Trustee, at which at any particular time its corporate
trust business shall be principally administered, which at all times shall be
located within the United States and at the time of the execution of this
Indenture shall be One Federal Street, 3rd Floor, Boston,
Massachusetts 02110.

 

“Redemption Date“ has the meaning set
forth in Section 10.01.

 

“Redemption Price“ means 100% of
the principal amount of the Debt Securities being redeemed plus accrued and
unpaid interest on such Debt Securities to the Redemption Date.

 

“Responsible Officer“ means, with
respect to the Trustee, any officer within the Principal Office of the Trustee
with direct responsibility for the administration of the Indenture,

 

5

 

including any vice-president, any assistant
vice-president, any secretary, any assistant secretary, the treasurer, any
assistant treasurer, any trust officer or other officer of the Principal Office
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 that officer’s knowledge of and familiarity with the particular
subject.

 

“Securityholder,” “holder of Debt
Securities“ or other similar terms, means any Person in whose name at the time
a particular Debt Security is registered on the Debt Security Register.

 

“Senior Indebtedness“ means, with
respect to the Company, (i) the principal, premium, if any, and interest
in respect of (A) indebtedness of the Company for money borrowed and (B) indebtedness
evidenced by securities, debentures, notes, bonds or other similar instruments
issued by the Company; (ii) all capital lease obligations of the Company; (iii) all
obligations of the Company issued or assumed as the deferred purchase price of
property, all conditional sale obligations of the Company and all obligations
of the Company under any title retention agreement (but excluding trade
accounts payable arising in the ordinary course of business); (iv) all
obligations of the Company for the reimbursement of any letter of credit, any
banker’s acceptance, any security purchase facility, any repurchase agreement
or similar arrangement, any interest rate swap, any other hedging arrangement,
any obligation under options or any similar credit or other transaction; (v) all
obligations of the type referred to in clauses (i) through (iv) above
of other Persons for the payment of which the Company is responsible or liable
as obligor, guarantor or otherwise; and (vi) all obligations of the type
referred to in clauses (i) through (v) above of other Persons secured
by any lien on any property or asset of the Company (whether or not such
obligation is assumed by the Company), whether incurred on or prior to the date
of this Indenture or thereafter incurred, unless, with the prior approval of
the Federal Reserve if not otherwise generally approved, it is provided in the
instrument creating or evidencing the same or pursuant to which the same is
outstanding, that such obligations are not superior or are pari passu in right
of payment to the Debt Securities; provided, however, that Senior Indebtedness
shall not include (A) any debt securities issued to any trust other than
the Trust (or a trustee of such trust) that is a financing vehicle of the Company
(a “financing entity”), in connection with the issuance by such financing
entity of equity or other securities in transactions substantially similar in
structure to the transactions contemplated hereunder and in the Declaration, (B) any
guarantees of the Company in respect of the equity or other securities of any
financing entity referred to in clause (A) above or (C) any other
instruments classified as subordinated or pari passu to
the Debt Securities by the Federal Reserve.

 

“Special Event“ means any of a Tax
Event, an Investment Company Event or a Capital Treatment Event.

 

“Special Redemption Date“ has the
meaning set forth in Section 10.02.

 

“Special
Redemption Price” means, with respect to the redemption of any Debt Security
following a Special Event, an amount in cash equal to 103.525% of the principal
amount of Debt Securities to be redeemed prior to December 15, 2006 and thereafter equal to the

 

6

 

percentage of
the principal amount of the Debt Securities that is specified below for the
Special Redemption Date plus, in each case, unpaid interest accrued thereon to
the Special Redemption Date:

 

	
  Special
  Redemption During the

  12-Month Period Beginning December 15

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  103.140

  	
  %

  
	
  2007

  	
   

  	
  102.355

  	
  %

  
	
  2008

  	
   

  	
  101.570

  	
  %

  
	
  2009

  	
   

  	
  100.785

  	
  %

  
	
  2010 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

“Subsidiary“ means, with respect to any
Person, (i) any corporation, at least a majority of the outstanding voting
stock of which is owned, directly or indirectly, by such Person or by one or
more of its Subsidiaries, or by such Person and one or more of its
Subsidiaries, (ii) any general partnership, joint venture or similar
entity, at least a majority of the outstanding partnership or similar interests
of which shall at the time be owned by such Person, or by one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries, and (iii) any
limited partnership of which such Person or any of its Subsidiaries is a
general partner. For the purposes of this definition, “voting stock” means
shares, interests, participations or other equivalents in the equity interest
(however designated) in such Person having ordinary voting power for the
election of a majority of the directors (or the equivalent) of such Person,
other than shares, interests, participations or other equivalents having such
power only by reason of the occurrence of a contingency.

 

“Tax Event“ means the receipt by the
Company and the Trust of an Opinion of Counsel experienced in such matters to
the effect that, as a result of any amendment to or change (including any
announced prospective change) in the laws or any regulations thereunder of the
United States or any political subdivision or taxing authority thereof or
therein, or as a result of any official administrative pronouncement (including
any private letter ruling, technical advice memorandum, regulatory procedure,
notice or announcement (an “Administrative Action”)) or judicial decision
interpreting or applying such laws or regulations, regardless of whether such
Administrative Action or judicial decision is issued to or in connection with a
proceeding involving the Company or the Trust and whether or not subject to
review or appeal, which amendment, clarification, change, Administrative Action
or decision is enacted, promulgated or announced, in each case on or after the
date of original issuance of the Debt Securities, there is more than an
insubstantial risk that: (i) the Trust is, or will be within 90 days of
the date of such opinion, subject to United States federal income tax with
respect to income received or accrued on the Debt Securities; (ii) interest
payable by the Company on the Debt Securities is not, or within 90 days of the
date of such opinion, will not be, deductible by the Company, in whole or in
part, for United States federal income tax purposes; or (iii) the Trust
is, or will be within 90 days of the date of such opinion, subject to or
otherwise required to pay, or required to withhold from distributions to
holders of Trust Securities, more than a de minimis amount of other taxes
(including withholding taxes), duties, assessments or other governmental
charges.

 

7

 

“Trust“ means The
Bank Holdings Statutory Trust I, the Connecticut statutory trust, or any
other similar trust created for the purpose of issuing Capital Securities in
connection with the issuance of Debt Securities under this Indenture, of which
the Company is the sponsor.

 

“Trust Indenture Act“ means the Trust
Indenture Act of 1939, as amended from time-to-time, or any successor
legislation.

 

“Trust Securities“ means Common
Securities and Capital Securities of The Bank
Holdings Statutory Trust I.

 

“Trustee“ means the Person identified as “Trustee”
in the first paragraph hereof, and, subject to the provisions of Article VI
hereof, shall also include its successors and assigns as Trustee hereunder.

 

“United States“ means the United
States of America and the District of Columbia.

 

“U.S. Person“ has the meaning given to
United States Person as set forth in Section 7701(a)(30) of the Internal
Revenue Code of 1986, as amended.

 

ARTICLE II

DEBT SECURITIES

 

SECTION 2.01.  Authentication and Dating.

 

Upon the execution and delivery of this Indenture, or from time to time
thereafter, Debt Securities in an aggregate principal amount not in excess of $15,464,000 may be executed and delivered by the
Company to the Trustee for authentication, and the Trustee shall thereupon
authenticate and make available for delivery said Debt Securities to or upon
the written order of the Company, signed by its Chairman of the Board of
Directors, Vice Chairman, President or Chief Financial Officer or one of its
Vice Presidents, without any further action by the Company hereunder. In
authenticating such Debt Securities, and accepting the additional
responsibilities under this Indenture in relation to such Debt Securities, the
Trustee shall be entitled to receive, and (subject to Section 6.01) shall
be fully protected in relying upon a copy of any Board Resolution or Board
Resolutions relating thereto and, if applicable, an appropriate record of any
action taken pursuant to such resolution, in each case certified by the
Secretary or an Assistant Secretary or other officers with appropriate
delegated authority of the Company as the case may be.

 

The Trustee shall have the right to decline to authenticate and deliver
any Debt Securities under this Section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or if a
Responsible Officer of the Trustee in good faith shall determine that such
action would expose the Trustee to personal liability to existing
Securityholders.  The Trustee shall also
be entitled to receive an opinion of counsel to the effect that (1) all
conditions precedent to the execution, delivery and authentication of the
Securities have been complied with; (2) the Securities are not required to
be registered under the Securities Act; and (3) the Indenture is not
required to be qualified under the Trust Indenture Act.

 

8

 

The definitive Debt Securities shall be typed, printed, lithographed or
engraved on steel engraved borders or may be produced in any other manner, all
as determined by the officers executing such Debt Securities, as evidenced by
their execution of such Debt Securities.

 

SECTION 2.02.  Form of Trustee’s Certificate of
Authentication.

 

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

 

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

 

U.S. Bank National Association, not in its individual capacity but
solely as Trustee

 

	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
					

 

SECTION 2.03.  Form and Denomination of Debt
Securities.

 

The Debt Securities shall be substantially in the form of Exhibit A
hereto. The Debt Securities shall be in registered, certificated form without
coupons and in minimum denominations of $100,000 and any multiple of $1,000 in
excess thereof. The Debt Securities shall be numbered, lettered, or otherwise
distinguished in such manner or in accordance with such plans as the officers
executing the same may determine with the approval of the Trustee as evidenced
by the execution and authentication thereof.

 

SECTION 2.04.  Execution of Debt Securities.

 

The Debt Securities shall be signed in the name and on behalf of the
Company by the manual or facsimile signature of any of its Chairman of the
Board of Directors, Vice Chairman, President or Chief Financial Officer or one
of its Executive Vice Presidents, Senior Vice Presidents or Vice Presidents,
under its corporate seal (if legally required), which may be affixed thereto or
printed, engraved or otherwise reproduced thereon, by facsimile or otherwise,
and which need not be attested. Only such Debt Securities as shall bear thereon
a certificate of authentication substantially in the form herein before
recited, executed by the Trustee or the Authenticating Agent by the manual
signature of an authorized officer, shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the
Trustee or the Authenticating Agent upon any Debt Security executed by the
Company shall be conclusive evidence that the Debt Security so authenticated
has been duly authenticated and delivered hereunder and that the holder is
entitled to the benefits of this Indenture.

 

In case any officer of the Company who shall have signed any of the
Debt Securities shall cease to be such officer before the Debt Securities so
signed shall have been authenticated and delivered by the Trustee or the
Authenticating Agent, or disposed of by the Company, such Debt Securities
nevertheless may be authenticated and delivered or disposed of as though the
Person who signed such Debt Securities had not ceased to be such officer of the
Company; and any Debt Security may be signed on behalf of the Company by such
Persons as, at the actual date of the execution of such Debt Security, shall be
the proper officers of the

 

9

 

Company,
although at the date of the execution of this Indenture any such person was not
such an officer.

 

Every Debt Security shall be dated the date of its authentication.

 

SECTION 2.05.  Exchange and Registration of Transfer of
Debt Securities.

 

The Company shall cause to be kept, at the office or agency maintained
for the purpose of registration of transfer and for exchange as provided in Section 3.02,
a register (the “Debt Security Register”) for the Debt Securities issued
hereunder in which, subject to such reasonable regulations as it may prescribe,
the Company shall provide for the registration and transfer of all Debt
Securities as provided in this Article II. 
Such register shall be in written form or in any other form capable of
being converted into written form within a reasonable time.

 

Debt Securities to be exchanged may be surrendered at the Principal
Office of the Trustee or at any office or agency to be maintained by the
Company for such purpose as provided in Section 3.02, and the Company
shall execute, the Company or the Trustee shall register and the Trustee or the
Authenticating Agent shall authenticate and make available for delivery in
exchange therefor the Debt Security or Debt Securities which the Securityholder
making the exchange shall be entitled to receive. Upon due presentment for
registration of transfer of any Debt Security at the Principal Office of the
Trustee or at any office or agency of the Company maintained for such purpose
as provided in Section 3.02, the Company shall execute, the Company or the
Trustee shall register and the Trustee or the Authenticating Agent shall
authenticate and make available for delivery in the name of the transferee or
transferees a new Debt Security for a like aggregate principal amount.
Registration or registration of transfer of any Debt Security by the Trustee or
by any agent of the Company appointed pursuant to Section 3.02, and
delivery of such Debt Security, shall be deemed to complete the registration or
registration of transfer of such Debt Security.

 

All Debt Securities presented for registration of transfer or for
exchange or payment shall (if so required by the Company or the Trustee or the
Authenticating Agent) be duly endorsed by, or be accompanied by, a written
instrument or instruments of transfer in form satisfactory to the Company and
either the Trustee or the Authenticating Agent duly executed by, the holder or
such holder’s attorney duly authorized in writing.

 

Neither the Trustee nor the Debt Security Registrar shall be
responsible for ascertaining whether any transfer hereunder complies with the
registration provisions of or any exemptions from the Securities Act (under and
as defined in the Declaration), applicable state securities laws or the
applicable laws of any other jurisdiction, ERISA, the United States Internal
Revenue Code of 1986, as amended, or the Investment Company Act (under and as
defined in the Declaration).

 

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

 

10

 

The Company or the Trustee shall not be required to exchange or
register a transfer of any Debt Security for a period of 15 days immediately
preceding the date of selection of Debt Securities for redemption.

 

Notwithstanding the foregoing, Debt Securities may not be transferred
except in compliance with the restricted securities legend set forth below,
unless otherwise determined by the Company in accordance with applicable law,
which legend shall be placed on each Debt Security:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY
ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY
ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”) TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A “NON
U.S. PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO REGULATION S UNDER THE
SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR
FOR THE ACCOUNT OF SUCH AN “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH
THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY
WITH THE FOREGOING RESTRICTIONS.

 

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS
AND WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS
SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT.

 

11

 

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975
OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), (EACH A “PLAN”),
OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY
PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY
PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN, UNLESS
SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER
U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,
95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND
HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER
OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY
ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN
TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL
DELIVER TO THE COMPANY AND TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE
REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.

 

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A
PRINCIPAL AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO
LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO
BE THE HOLDER OF THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO,
THE RECEIPT OF DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

 

THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED
STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL
DEPOSIT INSURANCE CORPORATION. THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF
DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY, IS
INELIGIBLE AS COLLATERAL

 

12

 

FOR A LOAN BY
THE COMPANY OR ANY OF ITS SUBSIDIARIES AND IS NOT SECURED.

 

SECTION 2.06.  Mutilated, Destroyed, Lost or Stolen Debt
Securities.

 

In case any Debt Security shall become mutilated or be destroyed, lost
or stolen, the Company shall execute, and upon its written request the Trustee
shall authenticate and deliver, a new Debt Security bearing a number not
contemporaneously outstanding, in exchange and substitution for the mutilated Debt
Security, or in lieu of and in substitution for the Debt Security so destroyed,
lost or stolen. In every case the applicant for a substituted Debt Security
shall furnish to the Company and the Trustee such security or indemnity as may
be required by them to save each of them harmless, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company and
the Trustee evidence to their satisfaction of the destruction, loss or theft of
such Debt Security and of the ownership thereof.

 

The Trustee may authenticate any such substituted Debt Security and
deliver the same upon the written request or authorization of any officer of
the Company. Upon the issuance of any substituted Debt Security, 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 connected therewith. In case any Debt Security which has matured or is
about to mature or has been called for redemption in full shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substitute Debt Security, pay or authorize the payment of the same (without
surrender thereof except in the case of a mutilated Debt Security) if the
applicant for such payment shall furnish to the Company and the Trustee such
security or indemnity as may be required by them to save each of them harmless
and, in case of destruction, loss or theft, evidence satisfactory to the
Company and to the Trustee of the destruction, loss or theft of such Security
and of the ownership thereof.

 

Every substituted Debt Security issued pursuant to the provisions of
this Section 2.06 by virtue of the fact that any such Debt Security is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Debt Security
shall be found at any time, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Debt Securities
duly issued hereunder. All Debt Securities shall be held and owned upon the
express condition that, to the extent permitted by applicable law, the
foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Debt Securities and shall preclude any
and all other rights or remedies notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

 

SECTION 2.07.  Temporary Debt Securities.

 

Pending the preparation of definitive Debt Securities, the Company may
execute and the Trustee shall authenticate and make available for delivery
temporary Debt Securities that are typed, printed or lithographed. Temporary
Debt Securities shall be issuable in any authorized denomination, and
substantially in the form of the definitive Debt Securities but with such
omissions, insertions and variations as may be appropriate for temporary Debt
Securities, all as

 

13

 

may be
determined by the Company. Every such temporary Debt Security shall be executed
by the Company and be authenticated by the Trustee upon the same conditions and
in substantially the same manner, and with the same effect, as the definitive
Debt Securities. Without unreasonable delay, the Company will execute and
deliver to the Trustee or the Authenticating Agent definitive Debt Securities
and thereupon any or all temporary Debt Securities may be surrendered in
exchange therefor, at the Principal Office of the Trustee or at any office or
agency maintained by the Company for such purpose as provided in Section 3.02,
and the Trustee or the Authenticating Agent shall authenticate and make
available for delivery in exchange for such temporary Debt Securities a like
aggregate principal amount of such definitive Debt Securities. Such exchange
shall be made by the Company at its own expense and without any charge therefor
except that in case of any such exchange involving a registration of transfer
the Company may require payment of a sum sufficient to cover any tax, fee or
other governmental charge that may be imposed in relation thereto. Until so
exchanged, the temporary Debt Securities shall in all respects be entitled to
the same benefits under this Indenture as definitive Debt Securities
authenticated and delivered hereunder.

 

SECTION 2.08.  Payment of Interest.

 

Each Debt Security will bear interest at the then applicable Interest
Rate from and including each Interest Payment Date or, in the case of the first
Interest Payment Period, the original date of issuance of such Debt Security
to, but excluding, the next succeeding Interest Payment Date or, in the case of
the last Interest Payment Period, the Redemption Date, Special Redemption Date
or Maturity Date, as applicable, on the principal thereof, on any overdue
principal and (to the extent that payment of such interest is enforceable under
applicable law) on Deferred Interest and on any overdue installment of interest
(including Defaulted Interest), payable (subject to the provisions of Article XII)
on each Interest Payment Date commencing on December 15,
2005. Interest and any Deferred Interest on any Debt Security that is
payable, and is punctually paid or duly provided for by the Company, on any
Interest Payment Date shall be paid to the Person in whose name said Debt
Security (or one or more Predecessor Securities) is registered at the close of
business on the regular record date for such interest installment, except that
interest and any Deferred Interest payable on the Maturity Date shall be paid
to the Person to whom principal is paid. In the event that any Debt Security or
portion thereof is called for redemption and the redemption date is subsequent
to a regular record date with respect to any Interest Payment Date and either
on or prior to such Interest Payment Date, interest on such Debt Security will
be paid upon presentation and surrender of such Debt Security.

 

Any interest on any Debt Security, other than Deferred Interest, that
is payable, but is not punctually paid or duly provided for by the Company, on
any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith
cease to be payable to the registered holder on the relevant regular record
date by virtue of having been such holder, and such Defaulted Interest shall be
paid by the Company to the Persons in whose names such Debt Securities (or
their respective Predecessor Securities) are registered at the close of
business on a special record date for the payment of such Defaulted Interest,
which shall be fixed in the following manner: the Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each such Debt Security and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements reasonably

 

14

 

satisfactory
to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the
Trustee shall fix a special record date for the payment of such Defaulted
Interest which shall not be more than fifteen nor less than ten days prior to
the date of the proposed payment and not less than ten days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall
promptly notify the Company of such special record date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at his or her address as it
appears in the Debt Security Register, not less than ten days prior to such
special record date. Notice of the proposed payment of such Defaulted Interest
and the special record date therefor having been mailed as aforesaid, such
Defaulted Interest shall be paid to the Persons in whose names such Debt
Securities (or their respective Predecessor Securities) are registered on such
special record date and thereafter the Company shall have no further payment
obligation in respect of the Defaulted Interest.

 

Any interest scheduled to become payable on an Interest Payment Date
occurring during an Extension Period shall not be Defaulted Interest and shall
be payable on such other date as may be specified in the terms of such Debt
Securities.

 

The term “regular record date” as used in this Indenture shall mean the
fifteenth day prior to the applicable Interest Payment Date whether or not such
date is a Business Day.

 

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

 

SECTION 2.09.  Cancellation of Debt Securities Paid, etc.

 

All Debt Securities surrendered for the purpose of payment, redemption,
exchange or registration of transfer, shall, if surrendered to the Company or
any Paying Agent, be surrendered to the Trustee and promptly canceled by it,
or, if surrendered to the Trustee, shall be promptly canceled by it, and no
Debt Securities shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Indenture. The Trustee shall dispose of all
canceled Debt Securities in accordance with its customary practices, unless the
Company otherwise directs the Trustee in writing, in which case the Trustee shall
dispose of such Debt Securities as directed by the Company. If the Company
shall acquire any of the Debt Securities, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Debt Securities unless and until the same are surrendered to the Trustee for
cancellation.

 

SECTION 2.10.  Computation of Interest.

 

(a)           The amount of interest
payable for any Interest Payment Period will be computed on the basis of a
360-day year and the actual number of days elapsed in the relevant interest
period; provided, however, that upon the occurrence of a Special
Event Redemption

 

15

 

pursuant to Section 10.02 the amounts payable
pursuant to this Indenture shall be calculated as set forth in the definition
of Special Redemption Price.

 

(b)           LIBOR, for any Interest
Payment Period, shall be determined by the Calculation Agent in accordance with
the following provisions:

 

(1)           On
the second LIBOR Business Day (provided, that on such day commercial banks are
open for business (including dealings in foreign currency deposits) in London
(a “LIBOR Banking Day”), and otherwise the next preceding LIBOR Business Day
that is also a LIBOR Banking Day) prior to March 15, June 15, September 15
and December 15 (or, with respect to the first Interest Payment Period, on
November 1, 2005) (each such day, a “LIBOR
Determination Date” for the following Interest Payment Period), the Calculation
Agent shall obtain the rate for three-month U.S. Dollar deposits in Europe,
which appears on Telerate Page 3750 (as defined in the International Swaps
and Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange
Definitions) or such other page as may replace such Telerate Page 3750
on the Moneyline Telerate, Inc. service (or such other service or services
as may be nominated by the British Banker’s Association as the information
vendor for the purpose of displaying London Interbank offered rates for U.S.
dollar deposits), as of 11:00 a.m. (London time) on such LIBOR
Determination Date, and the rate so obtained shall be LIBOR for such Interest
Payment Period.  “LIBOR Business Day”
means any day that is not a Saturday, Sunday or other day on which commercial
banking institutions in The City of New York or Boston, Massachusetts are
authorized or obligated by law or executive order to be closed. If such rate is
superseded on Telerate Page 3750 by a corrected rate before 12:00 noon
(London time) on the same LIBOR Determination Date, the corrected rate as so
substituted will be LIBOR for that Interest Payment Period.

 

(2)           If,
on any LIBOR Determination Date, such rate does not appear on Telerate Page 3750
or such other page as may replace such Telerate Page 3750 on the
Moneyline Telerate, Inc. service (or such other service or services as may
be nominated by the British Banker’s Association as the information vendor for
the purpose of displaying London Interbank offered rates for U.S. dollar
deposits), the Calculation Agent shall determine the arithmetic mean of the
offered quotations of the Reference Banks (as defined below) to leading banks
in the London Interbank market for three-month U.S. Dollar deposits in Europe
(in an amount determined by the Calculation Agent) by reference to requests for
quotations as of approximately 11:00 a.m. (London time) on the LIBOR
Determination Date made by the Calculation Agent to the Reference Banks. If, on
any LIBOR Determination Date, at least two of the Reference Banks provide such
quotations, LIBOR shall equal the arithmetic mean of such quotations. If, on
any LIBOR Determination Date, only one or none of the Reference Banks provide
such a quotation, LIBOR shall be deemed to be the arithmetic mean of the
offered quotations that at least two leading banks in the City of New York (as
selected by the Calculation Agent) are quoting on the relevant LIBOR
Determination Date for three-month U.S. Dollar deposits in Europe at
approximately 11:00 a.m. (London

 

16

 

time) (in an amount
determined by the Calculation Agent). As used herein, “Reference Banks” means
four major banks in the London Interbank market selected by the Calculation
Agent.

 

(3)           If
the Calculation Agent is required but is unable to determine a rate in
accordance with at least one of the procedures provided above, LIBOR for the
applicable Interest Payment Period shall be LIBOR in effect for the immediately
preceding Interest Payment Period.

 

(c)           All percentages
resulting from any calculations on the Debt Securities will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with
five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or
..09876545) being rounded to 9.87655% (or .0987655)), and all dollar amounts used
in or resulting from such calculation will be rounded to the nearest cent (with
one-half cent being rounded upward).

 

(d)           As soon as practicable
following each LIBOR Determination Date, but in no event later than the 30th
day following such LIBOR Determination Date, the Calculation Agent shall
notify, in writing, the Company, the Institutional Trustee and the Paying Agent
of the applicable Interest Rate in effect for the related Interest Payment
Period. The Calculation Agent shall, upon the request of the holder of any Debt
Securities, provide the Interest Rate then in effect. All calculations made by
the Calculation Agent in the absence of manifest error shall be conclusive for
all purposes and binding on the Company and the Holders of the Debt Securities.  Any error in a calculation of the Coupon Rate
by the Calculation Agent may be corrected at any time by the delivery of notice
of such corrected Coupon Rate as provided above.  The Paying Agent shall be entitled to rely on
information received from the Calculation Agent or the Company as to the
Interest Rate. The Company shall, from time to time, provide any necessary
information to the Paying Agent relating to any original issue discount and
interest on the Debt Securities that is included in any payment and reportable
for taxable income calculation purposes. 
Failure to notify the Company, the Institutional Trustee or the Paying
Agent of the applicable Coupon Rate shall not affect the obligation of the
Company to make payment on Debentures at such Coupon Rate. 

 

SECTION 2.11.  Extension of Interest Payment Period.

 

As long as it is acting in good faith, and so long as no Event of
Default pursuant to paragraphs (c), (e) or (f) of Section 5.01
of the Indenture has occurred and is continuing the Company shall have the
right, from time to time and without causing an Event of Default, to defer
payments of interest on the Debt Securities by extending the interest
distribution period on the Debt Securities at any time and from time to time
during the term of the Debt Securities, for up to twenty consecutive quarterly
periods (each such extended interest distribution period, an “Extension Period”),
during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). No Extension Period may end
on a date other than an Interest Payment Date or extend beyond the Maturity
Date, any Redemption Date or any Special Redemption Date, as the case may be.
During any Extension Period, interest will continue to accrue on the Debt
Securities, and interest on such accrued interest (such accrued interest and
interest thereon referred to herein as “Deferred Interest”) will accrue at an
annual rate equal to the Interest Rate applicable during such Extension Period,
compounded quarterly

 

17

 

from the date
such Deferred Interest would have been payable were it not for the Extension
Period, to the extent permitted by law. No interest or Deferred Interest shall
be due and payable during an Extension Period, except at the end thereof. At
the end of any such Extension Period the Company shall pay all Deferred
Interest then accrued and unpaid on the Debt Securities; provided, however,
that no Extension Period may extend beyond the Maturity Date; and provided
further, however, that during any such Extension Period, the
Company shall be subject to the restrictions set forth in Section 3.08 of
this Indenture. Prior to the termination of any Extension Period, the Company
may further extend such period, provided, that such period together with
all such previous and further consecutive extensions thereof shall not exceed
twenty consecutive quarterly periods, or extend beyond the Maturity Date. Upon
the termination of any Extension Period and upon the payment of all Deferred
Interest, the Company may commence a new Extension Period, subject to the
foregoing requirements. The Company must give the Trustee notice of its
election to begin any Extension Period (“Notice”) not later than the related regular
record date for the relevant Interest Payment Date.  The Notice shall describe why the Company has
elected to begin an Extension Period. 
The Notice shall acknowledge and affirm the Company’s understanding that
it is prohibited from issuing dividends and other distributions during the
Extension Period.  Upon receipt of the
Notice, an Initial Purchaser shall have the right, at its sole discretion, to
disclose the name of the Company, the fact that the Company has elected to
begin an Extension Period and other information that such Initial Purchaser, at
its sole discretion, deems relevant to the Company’s election to begin an
Extension Period.  The Trustee shall give
notice of the Company’s election to begin a new Extension Period to the
Securityholders.

 

SECTION 2.12.  CUSIP Numbers.

 

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

 

SECTION 2.13.  Income Tax
Certification.  

 

As a condition to the payment of any principal of or interest on the
Debt Securities without the imposition of withholding tax, the Trustee shall
require the previous delivery of properly completed and signed applicable U.S.
federal income tax certifications (generally, an Internal Revenue Service Form W-9
(or applicable successor form) in the case of a person that is a “United States
person” within the meaning of Section 7701 (a)(30) of the Code (under and
as defined in the Declaration) or an Internal Revenue Service Form W-8 (or
applicable successor form) in the case of a person that is not a “United States
person” within the meaning of Section 7701(a)(30) of the Code, and any
other certification acceptable to it to enable the Trustee or any Paying Agent
to determine their respective duties and liabilities with respect to any taxes
or other charges that they may be required to pay, deduct or withhold in
respect of such Debt Securities.

 

18

 

 

ARTICLE III

PARTICULAR COVENANTS OF THE COMPANY

 

SECTION 3.01.  Payment of Principal, Premium and
Interest; Agreed Treatment of the Debt Securities.

 

(a)           The Company covenants
and agrees that it will duly and punctually pay or cause to be paid all payments
due on the Debt Securities at the place, at the respective times and in the
manner provided in this Indenture and the Debt Securities. At the option of the
Company, each installment of interest on the Debt Securities may be paid (i) by
mailing checks for such interest payable to the order of the holders of Debt
Securities entitled thereto as they appear on the Debt Security Register or (ii) by
wire transfer to any account with a banking institution located in the United
States designated by such holders to the Paying Agent no later than the related
record date. Notwithstanding anything to the contrary contained in this
Indenture or any Debt Security, if the Trust or the Trustee of the Trust is the
holder of any Debt Security, then all payments in respect of such Debt Security
shall be made by the Company in immediately available funds when due.  

 

(b)           The Company will treat
the Debt Securities as indebtedness, and the interest payable in respect of
such Debt Securities as interest, for all U.S. federal income tax purposes. As
a condition to the payment of any principal of or interest on any Debt Security
without the imposition of withholding tax, the Company shall require the
previous delivery of properly completed and signed applicable U.S. federal
income tax certifications (generally, an Internal Revenue Service Form W-9
(or applicable successor form) in the case of a Person that is a U.S. Person or
an Internal Revenue Service Form W-8 (or applicable successor form) in the
case of a Person that is not a U.S. Person and any other certification
acceptable to it to enable the Company and the Trustee to determine their
respective duties and liabilities with respect to any taxes or other charges
that they may be required to pay or withhold in respect of such Debt Security
or the holder of such Debt Security under any present or future law or
regulation of the United States or any political subdivision thereof or taxing
authority therein or to comply with any reporting or other requirements under
any such law or regulation.

 

(c)           As of the date of this
Indenture, the Company represents that it has no intention to exercise its
right under Section 2.11 to defer payments of interest on the Debt
Securities by commencing an Extension Period.

 

SECTION 3.02.  Offices for Notices and Payments, etc.

 

So long as any of the Debt Securities remain outstanding, the Company
will maintain in New York, New York an office or agency where the Debt
Securities may be presented for payment, an office or agency where the Debt
Securities may be presented for registration of transfer and for exchange as
provided in this Indenture and an office or agency where notices and demands to
or upon the Company in respect of the Debt Securities or of this Indenture may
be served. The Company hereby appoints the Trustee at U.S. Bank National
Association, 100 Wall Street, 19th Floor, New York, New York 10005,
Attention: Corporate Trust Services – The Bank
Holdings Statutory Trust I as
such office or agency.  In case the

 

19

 

Company shall
fail to maintain any such office or agency in New York, New York or shall fail
to give such notice of the location or of any change in the location thereof,
presentations and demands may be made and notices may be served at the
Principal Office of the Trustee.

 

In addition to any such office or agency, the Company may from time to
time designate one or more other offices or agencies where the Debt Securities
may be presented for registration of transfer and for exchange in the manner
provided in this Indenture, and the Company may from time to time rescind such
designation, as the Company may deem desirable or expedient; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain any such office or agency in New York, New York
for the purposes above mentioned. The Company will give to the Trustee prompt
written notice of any such designation or rescission thereof.

 

SECTION 3.03.  Appointments to Fill Vacancies in Trustee’s
Office.

 

The Company, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 6.09, a
Trustee, so that there shall at all times be a Trustee hereunder.

 

SECTION 3.04.  Provision as to Paying Agent.

 

(a)           If the Company shall
appoint a Paying Agent other than the Trustee, it will cause such Paying Agent
to execute and deliver to the Trustee an instrument in which such agent shall
agree with the Trustee, subject to the provision of this Section 3.04:

 

(1)           that
it will hold all sums held by it as such agent for the payment of all payments
due on the Debt Securities (whether such sums have been paid to it by the
Company or by any other obligor on the Debt Securities) in trust for the
benefit of the holders of the Debt Securities;

 

(2)           that
it will give the Trustee prompt written notice of any failure by the Company
(or by any other obligor on the Debt Securities) to make any payment on the
Debt Securities when the same shall be due and payable; and

 

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

 

(b)           If the Company shall
act as its own Paying Agent, it will, on or before each due date of the
payments due on the Debt Securities, set aside, segregate and hold in trust for
the benefit of the holders of the Debt Securities a sum sufficient to pay such
payments so becoming due and will notify the Trustee in writing of any failure
to take such action and of any failure by the Company (or by any other obligor
under the Debt Securities) to make any payment on the Debt Securities when the
same shall become due and payable.

 

Whenever the Company shall have one or more Paying Agents for the Debt
Securities, it will, on or prior to each due date of the payments on the Debt
Securities, deposit with a Paying Agent a sum sufficient to pay all payments so
becoming due, such sum to be held

 

20

 

in trust for
the benefit of the Persons entitled thereto and (unless such Paying Agent is
the Trustee) the Company shall promptly notify the Trustee in writing of its
action or failure to act.

 

(c)           Anything in this Section 3.04
to the contrary notwithstanding, the Company may, at any time, for the purpose
of obtaining a satisfaction and discharge with respect to the Debt Securities,
or for any other reason, pay, or direct any Paying Agent to pay to the Trustee
all sums held in trust by the Company or any such Paying Agent, such sums to be
held by the Trustee upon the same terms and conditions herein contained.

 

(d)           Anything in this Section 3.04
to the contrary notwithstanding, the agreement to hold sums in trust as
provided in this Section 3.04 is subject to Sections 12.03 and 12.04.

 

(e)           The Company hereby
initially appoints the Trustee to act as Paying Agent (the “Paying Agent”).

 

SECTION 3.05.  Certificate to Trustee.

 

The Company will deliver to the Trustee on or before 120 days after the
end of each fiscal year, so long as Debt Securities are outstanding hereunder,
a Certificate stating that in the course of the performance by the signers of
their duties as officers of the Company they would normally have knowledge of any
default by the Company in the performance of any covenants of the Company
contained herein, stating whether or not they have knowledge of any such
default and, if so, specifying each such default of which the signers have
knowledge and the nature thereof.

 

SECTION 3.06.  Additional Interest.

 

If and for so long as the Trust is the holder of all Debt Securities
and is subject to or otherwise required to pay, or is required to withhold from
distributions to holders of Trust Securities, any additional taxes (including
withholding taxes), duties, assessments or other governmental charges as a
result of a Tax Event, the Company will pay such additional amounts (the “Additional
Interest”) on the Debt Securities as shall be required so that the net amounts
received and retained by the Trust for distribution to holders of Trust
Securities after paying all taxes (including withholding taxes), duties,
assessments or other governmental charges will be equal to the amounts the
Trust would have received and retained for distribution to holders of Trust
Securities after paying all taxes (including withholding taxes on distributions
to holders of Trust Securities), duties, assessments or other governmental
charges if no such additional taxes, duties, assessments or other governmental
charges had been imposed. Whenever in this Indenture or the Debt Securities
there is a reference in any context to the payment of principal of or premium,
if any, or interest on the Debt Securities, such mention shall be deemed to
include mention of payments of the Additional Interest provided for in this
paragraph to the extent that, in such context, Additional Interest is, was or
would be payable in respect thereof pursuant to the provisions of this
paragraph and express mention of the payment of Additional Interest (if
applicable) in any provisions hereof shall not be construed as excluding
Additional Interest in those provisions hereof where such express mention is
not made; provided, however, that, notwithstanding anything to
the contrary contained in this Indenture or any Debt Security, the

 

21

 

deferral of
the payment of interest during an Extension Period pursuant to Section 2.11
shall not defer the payment of any Additional Interest that may be due and
payable.

 

SECTION 3.07.  Compliance with Consolidation Provisions.

 

The Company will not, while any of the Debt Securities remain
outstanding, consolidate with, or merge into any other Person, or merge into
itself, or sell, convey, transfer or otherwise dispose of all or substantially
all of its property or capital stock to any other Person unless the provisions
of Article XI hereof are complied with.

 

SECTION 3.08.  Limitation on Dividends.

 

If Debt Securities are initially issued to the Trust or a trustee of
such Trust in connection with the issuance of Trust Securities by the Trust
(regardless of whether Debt Securities continue to be held by such Trust) and (i) there
shall have occurred and be continuing an Event of Default, (ii) the
Company shall be in default with respect to its payment of any obligations
under the Capital Securities Guarantee or (iii) the Company shall have
given notice of its election to defer payments of interest on the Debt
Securities by extending the interest distribution period as provided herein and
such period, or any extension thereof, shall have commenced and be continuing,
then the Company may not (A) declare or pay any dividends or distributions
on, or redeem, purchase, acquire, or make a liquidation payment with respect
to, any of the Company’s capital stock or (B) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Company that rank pari passu
in all respects with or junior in interest to the Debt Securities or (C) make
any payment under any guarantees of the Company that rank pari passu in all respects with or junior
in interest to the Capital Securities Guarantee (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company (I)
in connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors or consultants, (II) in connection with a dividend reinvestment or stockholder
stock purchase plan or (III) in connection with the issuance of capital stock
of the Company (or securities convertible into or exercisable for such capital
stock), as consideration in an acquisition transaction entered into prior to
the occurrence of (i), (ii) or (iii) above,
(b) as a result of any exchange, reclassification, combination or
conversion of any class or series of the Company’s capital stock (or any
capital stock of a subsidiary of the Company) for any class or series of the
Company’s capital stock or of any class or series of the Company’s indebtedness
for any class or series of the Company’s capital stock, (c) the purchase
of fractional interests in shares of the Company’s capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security
being converted or exchanged, (d) any declaration of a dividend in
connection with any stockholder’s rights plan, or the issuance of rights, stock
or other property under any stockholder’s rights plan, or the redemption or
repurchase of rights pursuant thereto, or (e) any dividend in the form of
stock, warrants, options or other rights where the dividend stock or the stock
issuable upon exercise of such warrants, options or other rights is the same
stock as that on which the dividend is being paid or ranks pari passu
with or junior to such stock).

 

22

 

SECTION 3.09.  Covenants as to the Trust.

 

For so long as such Trust Securities remain outstanding, the Company
shall maintain 100% ownership of the Common Securities; provided, however,
that any permitted successor of the Company under this Indenture that is a U.S.
Person may succeed to the Company’s ownership of such Common Securities. The
Company, as owner of the Common Securities, shall use commercially reasonable
efforts to cause the Trust (a) to remain a statutory trust, except in
connection with a distribution of Debt Securities to the holders of Trust
Securities in liquidation of the Trust, the redemption of all of the Trust
Securities or certain mergers, consolidations or amalgamations, each as
permitted by the Declaration, (b) to otherwise continue to be classified
as a grantor trust for United States federal income tax purposes and (c) to
cause each holder of Trust Securities to be treated as owning an undivided
beneficial interest in the Debt Securities.

 

ARTICLE IV

LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

 

SECTION 4.01.  Securityholders’ Lists.

 

The Company covenants and agrees that it will furnish or cause to be
furnished to the Trustee:

 

(a)           on each regular record
date for an Interest Payment Date, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Securityholders of the
Debt Securities as of such record date; and

 

(b)           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, except that no
such lists need be furnished under this Section 4.01 so long as the
Trustee is in possession thereof by reason of its acting as Debt Security
registrar.

 

SECTION 4.02.  Preservation and Disclosure of Lists.

 

(a)           The Trustee shall
preserve, in as current a form as is reasonably practicable, all information as
to the names and addresses of the holders of Debt Securities (1) contained
in the most recent list furnished to it as provided in Section 4.01 or (2) received
by it in the capacity of Debt Securities registrar (if so acting) hereunder.
The Trustee may destroy any list furnished to it as provided in Section 4.01
upon receipt of a new list so furnished.

 

(b)           In case three or more
holders of Debt Securities (hereinafter referred to as “applicants”) apply in
writing to the Trustee and furnish to the Trustee reasonable proof that each
such applicant has owned a Debt Security for a period of at least six months
preceding the date of such application, and such application states that the
applicants desire to communicate with other holders of Debt Securities with
respect to their rights under this Indenture or under such Debt Securities and
is accompanied by a copy of the form of proxy or other communication

 

23

 

which such applicants propose to transmit, then the
Trustee shall within five Business Days after the receipt of such application,
at the election of the Company, either:

 

(1)           afford
such applicants access to the information preserved at the time by the Trustee
in accordance with the provisions of subsection (a) of this Section 4.02,
or

 

(2)           inform
such applicants as to the approximate number of holders of Debt Securities
whose names and addresses appear in the information preserved at the time by
the Trustee in accordance with the provisions of subsection (a) of
this Section 4.02, and as to the approximate
cost of mailing to such Securityholders the form of proxy or other
communication, if any, specified in such application.

 

If the Company shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Securityholder of Debt Securities whose name and address appear in
the information preserved at the time by the Trustee in accordance with the
provisions of subsection (a) of this Section 4.02 a copy of the
form of proxy or other communication which is specified in such request with
reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender, the Trustee shall mail
to such applicants, and file with the Securities and Exchange Commission, if
permitted or required by applicable law, together with a copy of the material
to be mailed, a written statement of the Company to the effect that such
mailing would be contrary to the best interests of the holders of all Debt
Securities, as the case may be, or would be in violation of applicable law.
Such written statement shall specify the basis of such opinion. If said
Commission, as permitted or required by applicable law, after opportunity for a
hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, said Commission
shall find, after notice and opportunity for hearing, that all the objections
so sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Securityholders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

 

(c)           Each and every holder
of Debt Securities, by receiving and holding the same, agrees with the Company
and the Trustee that neither the Company nor the Trustee nor any Paying Agent
shall be held accountable by reason of the disclosure of any such information
as to the names and addresses of the holders of Debt Securities in accordance
with the provisions of subsection (b) of this Section 4.02,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under said subsection (b).

 

24

 

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

 

SECTION 5.01.  Events of Default.

 

The
following events shall be “Events of Default” with respect to Debt Securities:

 

(a)           the Company defaults in
the payment of any interest upon any Debt Security when it becomes due and
payable (unless the Company has elected and may defer interest payments
pursuant to Section 2.11), and continuance of such default for a period of
30 days; for the avoidance of doubt, an extension of any interest distribution
period by the Company in accordance with Section 2.11 of this Indenture
shall not constitute a default under this clause 5.01(a); or

 

(b)           the Company defaults in
the payment of all or any part of the principal of (or premium, if any, on) any
Debt Securities as and when the same shall become due and payable either at
maturity, upon redemption, by declaration of acceleration pursuant to Section 5.01
of this Indenture or otherwise; or

 

(c)           the Company defaults in
the payment of any interest upon any Debt Security when it becomes due and
payable following the nonpayment of any such interest as a result of Extension
Period for 20 or more consecutive quarterly periods; or

 

(d)           the Company defaults in
the performance of, or breaches, any of its covenants or agreements in Sections
3.06, 3.07, 3.08 or 3.09 of this Indenture (other than a covenant or agreement
a default in whose performance or whose breach is elsewhere in this Section specifically
dealt with), and continuance of such default or breach for a period of 90 days
after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the holders of not less than
25% in aggregate principal amount of the outstanding Debt Securities, 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

 

(e)           a court having
jurisdiction in the premises shall enter a decree or order for relief in
respect of the Company in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or appoints a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Company or for any substantial part of its property, or orders
the winding-up or liquidation of its affairs and such decree or order shall
remain unstayed and in effect for a period of 90 consecutive days; or

 

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

 

25

 

(g)           the Trust shall have
voluntarily or involuntarily liquidated, dissolved, wound-up its business or
otherwise terminated its existence except in connection with (1) the
distribution of the Debt Securities to holders of the Trust Securities in
liquidation of their interests in the Trust, (2) the redemption of all of
the outstanding Trust Securities or (3) certain mergers, consolidations or
amalgamations, each as permitted by the Declaration.

 

If an Event of Default specified under clause (c) of this Section 5.01
occurs and is continuing with respect to the Debt Securities, then, and in each
and every such case, unless the principal of the Debt Securities shall have
already become due and payable, either the Trustee or the holders of not less
than 25% in aggregate principal amount of the Debt Securities then outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal of the Debt Securities and
any premium and interest accrued, but unpaid, thereon, if any, to be due and
payable immediately, and upon any such declaration the same shall become
immediately due and payable.  If an Event
of Default specified under clause (e) or (f) of this Section 5.01
occurs, then, in each and every such case, the entire principal amount of the
Debt Securities and any premium and interest accrued, but unpaid, thereon shall
ipso facto become immediately due
and payable without further action. 
Notwithstanding anything to the contrary in this Section 5.01, if
at any time during the period in which this Indenture remains in force and
effect, the Company ceases or elects to cease to be subject to the supervision
and regulations of the Federal Reserve, OTS, OCC or similar regulatory
authority overseeing bank, thrift, savings and loan or financial holding
companies or similar institutions requiring specifications for the treatment of
capital similar in nature to the capital adequacy guidelines under the Federal
Reserve rules and regulations, then the first sentence of this paragraph
shall be deemed to include clauses (a), (b) and (d) under this Section 5.01
as an Event of Default resulting in an acceleration of payment of the Debt
Securities to the same extent as provided herein for clause (c).

 

With respect to clause (d) of this Section 5.01, the Company
agrees that in the event of a breach by the Company of its covenants or
agreements mentioned therein, any remedy at law or in damages may prove
inadequate and therefore the Company agrees that the Trustee shall be entitled to
injunctive relief against the Company in the event of any breach or threatened
breach by the Company, in addition to any other relief (including damages)
available to the Trustee under this Indenture or under law.

 

The foregoing provisions, however, are subject to the condition that
if, at any time after the principal of the Debt Securities shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, (i) the
Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Debt Securities and all payments
on the Debt Securities which shall have become due otherwise than by
acceleration (with interest upon all such payments and Deferred Interest, to
the extent permitted by law) and such amount as shall be sufficient to cover
reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and all other amounts due to the
Trustee pursuant to Section 6.06, if any, and (ii) all Events of
Default under this Indenture, other than the non-payment of the payments on
Debt Securities which shall have become due by acceleration, shall have been cured,
waived or otherwise remedied as provided herein, and in each and every such
case the holders of a majority in aggregate principal amount of the Debt

 

26

 

Securities
then outstanding, by written notice to the Company and to the Trustee, may
waive all defaults and rescind and annul such declaration and its consequences,
but no such waiver or rescission and annulment shall extend to or shall affect
any subsequent default or shall impair any right consequent thereon; provided,
however, that if the Debt Securities are held by the Trust or a trustee of the
Trust, such waiver or rescission and annulment shall not be effective until the
holders of a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have consented to such waiver or rescission and
annulment.

 

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

 

SECTION 5.02.  Payment of Debt Securities on Default;
Suit Therefor.

 

The Company covenants that upon the occurrence of an Event of Default
pursuant to clause 5.01(a), 5.01(b) or 5.01(c), and upon demand of the
Trustee, the Company will pay to the Trustee, for the benefit of the holders of
the Debt Securities, the whole amount that then shall have become due and
payable on all Debt Securities including Deferred Interest accrued on the Debt
Securities; and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including a reasonable
compensation to the Trustee, its agents, attorneys and counsel, and any other
amounts due to the Trustee under Section 6.06. In case the Company shall
fail forthwith to pay such amounts upon such demand, the Trustee, in its own
name and as trustee of an express trust, shall be entitled and empowered to
institute any actions or proceedings at law or in equity for the collection of
the sums so due and unpaid, and may prosecute any such action or proceeding to
judgment or final decree, and may enforce any such judgment or final decree
against the Company or any other obligor on such Debt Securities and collect in
the manner provided by law out of the property of the Company or any other
obligor on such Debt Securities wherever situated the moneys adjudged or
decreed to be payable.

 

In case there shall be pending proceedings for the bankruptcy or for
the reorganization of the Company or any other obligor on the Debt Securities
under Bankruptcy Law, or in case a receiver or trustee shall have been appointed
for the property of the Company or such other obligor, or in the case of any
other similar judicial proceedings relative to the Company or other obligor
upon the Debt Securities, or to the creditors or property of the Company or
such other obligor, the Trustee, irrespective of whether the principal of the
Debt Securities shall then be due and payable as therein expressed or by
declaration of acceleration or otherwise and irrespective of whether the
Trustee shall have made any demand pursuant to the provisions of this Section 5.02,
shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of
principal and interest owing and unpaid in respect of the Debt Securities and,
in case of any judicial proceedings, to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for reasonable compensation to the
Trustee and each predecessor Trustee, and their respective agents, attorneys

 

27

 

and counsel,
and for reimbursement of all other amounts due to the Trustee under Section 6.06)
and of the Securityholders allowed in such judicial proceedings relative to the
Company or any other obligor on the Debt Securities, or to the creditors or
property of the Company or such other obligor, unless prohibited by applicable
law and regulations, to vote on behalf of the holders of the Debt Securities in
any election of a trustee or a standby trustee in arrangement, reorganization,
liquidation or other bankruptcy or insolvency proceedings or Person performing
similar functions in comparable proceedings, and to collect and receive any
moneys or other property payable or deliverable on any such claims, and to
distribute the same after the deduction of its charges and expenses; and any
receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the Securityholders 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 Securityholders, to pay to the Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Trustee, each predecessor
Trustee and their respective agents, attorneys and counsel, and all other
amounts due to the Trustee under Section 6.06.

 

Nothing herein contained shall be construed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Debt Securities or the rights of any holder thereof or to authorize the Trustee
to vote in respect of the claim of any Securityholder in any such proceeding.

 

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

 

In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the
holders of the Debt Securities, and it shall not be necessary to make any
holders of the Debt Securities parties to any such proceedings.

 

SECTION 5.03.  Application of Moneys Collected by Trustee.

 

Any moneys collected by the Trustee shall be applied in the following
order, at the date or dates fixed by the Trustee for the distribution of such
moneys, upon presentation of the several Debt Securities in respect of which
moneys have been collected, and stamping thereon the payment, if only partially
paid, and upon surrender thereof if fully paid:

 

First: To the
payment of costs and expenses incurred by, and reasonable fees of, the Trustee,
its agents, attorneys and counsel, and of all other amounts due to the Trustee
under Section 6.06;

 

Second: To the
payment of all Senior Indebtedness of the Company if and to the extent required
by Article XV;

 

28

 

Third: To the
payment of the amounts then due and unpaid upon Debt Securities, in respect of
which or for the benefit of which money has been collected, ratably, without
preference or priority of any kind, according to the amounts due on such Debt
Securities; and

 

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

 

SECTION 5.04.  Proceedings by Securityholders.

 

No holder of any Debt Security shall have any right to institute any suit,
action or proceeding for any remedy hereunder, unless such holder previously
shall have given to the Trustee written notice of an Event of Default with
respect to the Debt Securities and unless the holders of not less than 25% in
aggregate principal amount of the Debt Securities then outstanding shall have
given the Trustee a written request to institute such action, suit or
proceeding and shall have offered to the Trustee such reasonable indemnity as
it may require against the costs, expenses and liabilities to be incurred
thereby, and the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity shall have failed to institute any such action, suit or
proceeding; provided, that no holder of Debt Securities shall have any
right to prejudice the rights of any other holder of Debt Securities, obtain
priority or preference over any other such holder or enforce any right under
this Indenture except in the manner herein provided and for the equal, ratable
and common benefit of all holders of Debt Securities.

 

Notwithstanding any other provisions in this Indenture, however, the
right of any holder of any Debt Security to receive payment of the principal
of, premium, if any, and interest on such Debt Security when due, or to
institute suit for the enforcement of any such payment, shall not be impaired
or affected without the consent of such holder. For the protection and
enforcement of the provisions of this Section, each and every Securityholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

 

SECTION 5.05.  Proceedings by Trustee.

 

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

 

SECTION 5.06.  Remedies Cumulative and Continuing.

 

Except as otherwise provided in Section 2.06, all powers and
remedies given by this Article V to the Trustee or to the Securityholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive
of any other powers and remedies available to the Trustee or the holders of the
Debt Securities, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to the Debt Securities, and no
delay or omission of the Trustee or of any holder of any of the Debt Securities
to exercise any right or power accruing upon any Event of Default occurring and
continuing as aforesaid shall impair any such right or power, or

 

29

 

shall be
construed to be a waiver of any such default or an acquiescence therein; and,
subject to the provisions of Section 5.04, every power and remedy given by
this Article V or by law to the Trustee or to the Securityholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Securityholders.

 

SECTION 5.07.  Direction of Proceedings and Waiver of
Defaults by Majority of Securityholders.

 

The holders of a majority in aggregate principal amount of the Debt
Securities affected (voting as one class) at the time outstanding and, if the
Debt Securities are held by the Trust or a trustee of the Trust, the holders of
a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust 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 such
Debt Securities; provided, however, that if the Debt Securities
are held by the Trust or a trustee of the Trust, such time, method and place or
such exercise, as the case may be, may not be so directed until the holders of
a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have directed such time, method and place or such
exercise, as the case may be; provided, further, that (subject to the
provisions of Section 6.01) the Trustee shall have the right to decline to
follow any such direction if the Trustee being advised by counsel shall
determine that the action so directed would be unjustly prejudicial to the
holders not taking part in such direction or if the Trustee being advised by
counsel determines that the action or proceeding so directed may not lawfully
be taken or if a Responsible Officer of the Trustee shall determine that the
action or proceedings so directed would involve the Trustee in personal
liability. Prior to any declaration of acceleration, or ipso facto acceleration,
of the maturity of the Debt Securities, the holders of a majority in aggregate
principal amount of the Debt Securities at the time outstanding may on behalf
of the holders of all of the Debt Securities waive (or modify any previously
granted waiver of) any past default or Event of Default and its consequences,
except a default (a) in the payment of principal of, premium, if any, or
interest on any of the Debt Securities, (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of
the holder of each Debt Security affected, or (c) in respect of the
covenants contained in Section 3.09; provided, however, that
if the Debt Securities are held by the Trust or a trustee of the Trust, such
waiver or modification to such waiver shall not be effective until the holders
of a majority in Liquidation Amount of the Trust Securities of the Trust shall
have consented to such waiver or modification to such waiver; provided, further,
that if the consent of the holder of each outstanding Debt Security is
required, such waiver or modification to such waiver shall not be effective
until each holder of the outstanding Capital Securities of the Trust shall have
consented to such waiver or modification to such waiver. Upon any such waiver
or modification to such waiver, the Default or Event of Default covered thereby
shall be deemed to be cured for all purposes of this Indenture and the Company,
the Trustee and the holders of the Debt Securities shall be restored to their
former positions and rights hereunder, respectively; but no such waiver or
modification to such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereon. Whenever any Default
or Event of Default hereunder shall have been waived as permitted by this Section 5.07,
said Default or Event of Default shall for all purposes of the Debt Securities
and this Indenture be deemed to have been cured and to be not continuing.

 

30

 

SECTION 5.08.  Notice of Defaults.

 

The Trustee shall, within 90 days after a Responsible Officer of the
Trustee shall have actual knowledge or received written notice of the
occurrence of a Default with respect to the Debt Securities, mail to all Securityholders,
as the names and addresses of such holders appear upon the Debt Security
Register, notice of all Defaults with respect to the Debt Securities known to
the Trustee, unless such defaults shall have been cured before the giving of
such notice (the term “defaults” for the purpose of this Section 5.08
being hereby defined to be the events specified in subsections (a), (b), (c),
(d), (e) and (f) of Section 5.01, not including periods of
grace, if any, provided for therein); provided, that, except in the case
of default in the payment of the principal of, premium, if any, or interest on
any of the Debt Securities, the Trustee shall be protected in withholding such
notice if and so long as a Responsible Officer of the Trustee in good faith
determines that the withholding of such notice is in the interests of the
Securityholders.

 

SECTION 5.09.  Undertaking to Pay Costs.

 

All parties to this Indenture agree, and each holder of any Debt
Security by such holder’s acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement
of any right or remedy under this Indenture, or in any suit against the Trustee
for any action taken or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, 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 5.09 shall not apply to
any suit instituted by the Trustee, to any suit instituted by any
Securityholder, or group of Securityholders, holding in the aggregate more than
10% in principal amount of the Debt Securities (or, if such Debt Securities are
held by the Trust or a trustee of the Trust, more than 10% in liquidation
amount of the outstanding Capital Securities), to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Debt Security against the Company on or
after the same shall have become due and payable, or to any suit instituted in
accordance with Section 14.12.

 

ARTICLE VI

CONCERNING THE TRUSTEE

 

SECTION 6.01.  Duties and Responsibilities of Trustee.

 

With respect to the holders of Debt Securities issued hereunder, the
Trustee, prior to the occurrence of an Event of Default with respect to the
Debt Securities and after the curing or waiving of all Events of Default which
may have occurred, with respect to the Debt Securities, undertakes to perform
such duties and only such duties as are specifically set forth in this
Indenture. In case an Event of Default with respect to the Debt Securities has
occurred (which has not been cured or waived), 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

 

31

 

person would
exercise or use under the circumstances in the conduct of such person’s own
affairs.

 

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

 

(a)           prior to the occurrence
of an Event of Default with respect to the Debt Securities and after the curing
or waiving of all Events of Default which may have occurred

 

(1)           the
duties and obligations of the Trustee with respect to the Debt Securities shall
be determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable except for the performance of such duties and
obligations with respect to the Debt Securities as are specifically set forth
in this Indenture, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and

 

(2)           in
the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but, in the case
of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform on
their face to the requirements of this Indenture;

 

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

 

(c)           the Trustee shall not
be liable with respect to any action taken or omitted to be taken by it in good
faith, in accordance with the direction of the Securityholders pursuant to Section 5.07,
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;

 

(d)           the Trustee shall not
be charged with knowledge of any Default or Event of Default with respect to
the Debt Securities unless either (1) a Responsible Officer shall have actual
knowledge of such Default or Event of Default or (2) written notice of
such Default or Event of Default shall have been given to the Trustee by the
Company or any other obligor on the Debt Securities or by any holder of the
Debt Securities, except with respect to an Event of Default pursuant to
Sections 5.01(a), 5.01(b) or 5.01(c) hereof (other than an Event of
Default resulting from the default in the payment of Additional Interest or
premium, if any, if the Trustee does not have actual knowledge or written
notice that such payment is due and payable), of which the Trustee shall be
deemed to have knowledge; and

 

(e)           in
the absence of bad faith on the part of the Trustee, the Trustee may seek and
rely on reasonable instructions from the Company.

 

32

 

None of the provisions contained in this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of
its rights or powers.

 

SECTION 6.02.  Reliance on Documents, Opinions, etc.

 

Except as otherwise provided in Section 6.01:

 

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

 

(b)           any request, direction,
order or demand of the Company mentioned herein shall be sufficiently evidenced
by an Officers’ Certificate (unless other evidence in respect thereof be herein
specifically prescribed); and any Board Resolution may be evidenced to the
Trustee by a copy thereof certified by the Secretary or an Assistant Secretary
of the Company;

 

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

 

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

 

(e)           the Trustee shall not
be liable for any action taken or omitted by it in good faith and reasonably
believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Indenture; nothing contained herein shall, however,
relieve the Trustee of the obligation, upon the occurrence of an Event of
Default with respect to the Debt Securities (that has not been cured or waived)
to exercise with respect to the Debt Securities such of the rights and powers
vested in it by this Indenture, and to use the same degree of care and skill in
their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs;

 

(f)            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, consent, order, approval, bond, debenture, coupon or other paper or
document, unless requested in writing to do so by the holders of not less than
a majority in aggregate principal amount of the outstanding Debt Securities
affected thereby; provided, however, that if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities likely to
be incurred by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it
by the terms of this Indenture, the Trustee may require reasonable indemnity
against such expense or liability as a condition to so proceeding; and

 

33

 

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

 

SECTION 6.03.  No Responsibility for Recitals, etc.

 

The recitals contained herein and in the Debt Securities (except in the
certificate of authentication of the Trustee or the Authenticating Agent) shall
be taken as the statements of the Company and the Trustee and the
Authenticating Agent assume no responsibility for the correctness of the same.
The Trustee and the Authenticating Agent make no representations as to the
validity or sufficiency of this Indenture or of the Debt Securities. The
Trustee and the Authenticating Agent shall not be accountable for the use or application
by the Company of any Debt Securities or the proceeds of any Debt Securities
authenticated and delivered by the Trustee or the Authenticating Agent in
conformity with the provisions of this Indenture.

 

SECTION 6.04.  Trustee, Authenticating Agent, Paying
Agents, Transfer Agents or Registrar May Own Debt Securities.

 

The Trustee or any Authenticating Agent or any Paying Agent or any
transfer agent or any Debt Security registrar, in its individual or any other
capacity, may become the owner or pledgee of Debt Securities with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, transfer agent or Debt Security registrar.

 

SECTION 6.05.  Moneys to be Held in Trust.

 

Subject to the provisions of Section 12.04, all moneys received by
the Trustee or any Paying Agent shall, until used or applied as herein
provided, be held in trust for the purpose for which they were received, but
need not be segregated from other funds except to the extent required by law.
The Trustee and any Paying Agent shall be under no liability for interest on
any money received by it hereunder except as otherwise agreed in writing with
the Company. So long as no Event of Default shall have occurred and be
continuing, all interest allowed on any such moneys, if any, shall be paid from
time to time to the Company upon the written order of the Company, signed by
the Chairman of the Board of Directors, the President, the Chief Operating
Officer, a Vice President, the Treasurer or an Assistant Treasurer of the
Company.

 

SECTION 6.06.  Compensation and Expenses of Trustee.

 

Other than as provided in the Fee Agreement of even date herewith
between Cohen Bros. & Company, the Trustee, and the Company (as
defined in the Declaration), the Company covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to, such
compensation as shall be agreed to in writing between the Company and the
Trustee (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and the Company will pay or
reimburse the Trustee upon its written request for all documented reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the reasonable expenses and disbursements of its
counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance that

 

34

 

arises from
its negligence, willful misconduct or bad faith. The Company also covenants to
indemnify each of the Trustee (including in its individual capacity) and any
predecessor Trustee (and its officers, agents, directors and employees) for,
and to hold it harmless against, any and all loss, damage, claim, liability or
expense including taxes (other than taxes based on the income of the Trustee),
except to the extent such loss, damage, claim, liability or expense results
from the negligence, willful misconduct or bad faith of such indemnitee,
arising out of or in connection with the acceptance or administration of this
Trust, including the costs and expenses of defending itself against any claim
or liability in the premises. The obligations of the Company under this Section 6.06
to compensate and indemnify the Trustee and to pay or reimburse the Trustee for
documented expenses, disbursements and advances shall constitute additional
indebtedness hereunder. Such additional indebtedness shall be secured by (and
the Company hereby grants and pledges to the Trustee) a lien prior to that of
the Debt Securities upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the benefit of the holders of
particular Debt Securities.

 

Without prejudice to any other rights available to the Trustee under
applicable law, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified in subsections (e), (f) or (g) of
Section 5.01, the expenses (including the reasonable charges and expenses
of its counsel) and the compensation for the services are intended to
constitute expenses of administration under any applicable federal or state
bankruptcy, insolvency or other similar law.

 

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

 

Notwithstanding anything in this Indenture or any Debt Security to the
contrary, the Trustee shall have no obligation whatsoever to advance funds to
pay any principal of or interest on or other amounts with respect to the Debt
Securities or otherwise advance funds to or on behalf of the Company.  

 

SECTION 6.07.  Officers’ Certificate as Evidence.

 

Except as otherwise provided in Sections 6.01 and 6.02, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking
or omitting any action hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of negligence,
willful misconduct or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers’ Certificate delivered to the
Trustee, and such certificate, in the absence of negligence, willful misconduct
or bad faith on the part of the Trustee, shall be full warrant to the Trustee
for any action taken or omitted by it under the provisions of this Indenture
upon the faith thereof.

 

SECTION 6.08.  Eligibility of Trustee.

 

The Trustee hereunder shall at all times be a U.S. Person that is a
banking corporation or national association organized and doing business under
the laws of the United States of America or any state thereof or of the
District of Columbia and authorized under such

 

35

 

laws to
exercise corporate trust powers, having a combined capital and surplus of at
least fifty million U.S. dollars ($50,000,000) and subject to supervision or
examination by federal, state, or District of Columbia authority. If such
corporation or national association publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising
or examining authority, then for the purposes of this Section 6.08 the
combined capital and surplus of such corporation or national association shall
be deemed to be its combined capital and surplus as set forth in its most
recent records of condition so published.

 

The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as
Trustee, notwithstanding that such corporation or national association shall be
otherwise eligible and qualified under this Article.

 

In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 6.08, the Trustee shall
resign immediately in the manner and with the effect specified in Section 6.09.

 

If the Trustee has or shall acquire any “conflicting interest” within
the meaning of § 310(b) of the Trust Indenture Act, the Trustee shall
either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to this Indenture.

 

SECTION 6.09.  Resignation or Removal of Trustee,
Calculation Agent, Paying Agent or Debt Security Registrar.

 

(a)           The Trustee, or any
trustee or trustees hereafter appointed, the Calculation Agent, the Paying
Agent and any Debt Security Registrar may at any time resign by giving written
notice of such resignation to the Company and by mailing notice thereof, at the
Company’s expense, to the holders of the Debt Securities at their addresses as
they shall appear on the Debt Security Register. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor or successors by
written instrument, in duplicate, executed by order of its Board of Directors,
one copy of which instrument shall be delivered to the resigning party and one
copy to the successor. If no successor shall have been so appointed and have
accepted appointment within 30 days after the mailing of such notice of
resignation to the affected Securityholders, the resigning party may petition
any court of competent jurisdiction for the appointment of a successor, or any
Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months may, subject to the provisions of Section 5.09,
on behalf of himself or herself and all others similarly situated, petition any
such court for the appointment of a successor. Such court may thereupon, after
such notice, if any, as it may deem proper and prescribe, appoint a successor.

 

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

 

(1)           the
Trustee shall fail to comply with the provisions of the last paragraph of Section 6.08
after written request therefor by the Company or by any Securityholder who has
been a bona fide holder of a Debt Security or Debt Securities for at least six
months,

 

36

 

(2)           the
Trustee shall cease to be eligible in accordance with the provisions of Section 6.08
and shall fail to resign after written request therefor by the Company or by
any such Securityholder, or

 

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

 

then, in any such case, the Company may remove the Trustee and appoint
a successor Trustee by written instrument, in duplicate, executed by order of
the Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor Trustee, or, subject to the
provisions of Section 5.09, if no successor Trustee shall have been so
appointed and have accepted appointment within 30 days of the occurrence of any
of (1), (2) or (3) above, any Securityholder who has been a bona fide
holder of a Debt Security or Debt Securities for at least six months may, on
behalf of himself or herself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and
appoint a successor Trustee.

 

(c)           Upon prior written
notice to the Company and the Trustee, the holders of a majority in aggregate
principal amount of the Debt Securities at the time outstanding may at any time
remove the Trustee and nominate a successor Trustee, which shall be deemed
appointed as successor Trustee unless within ten Business Days after such
nomination the Company objects thereto, in which case or in the case of a
failure by such holders to nominate a successor Trustee, the Trustee so removed
or any Securityholder, upon the terms and conditions and otherwise as in subsection (a) of
this Section 6.09 provided, may petition any court of competent
jurisdiction for an appointment of a successor.

 

(d)           Any resignation or
removal of the Trustee, the Calculation Agent, the Paying Agent and any Debt
Security Registrar and appointment of a successor pursuant to any of the
provisions of this Section 6.09 shall become effective upon acceptance of
appointment by the successor as provided in Section 6.10.

 

SECTION 6.10.  Acceptance by Successor.

 

Any successor Trustee, Calculation Agent, Paying Agent or Debt Security
Registrar appointed as provided in Section 6.09 shall execute, acknowledge
and deliver to the Company and to its predecessor an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the retiring
party shall become effective and such successor, without any further act, deed
or conveyance, shall become vested with all the rights, powers, duties and
obligations with respect to the Debt Securities of its predecessor hereunder,
with like effect as if originally named herein; but, nevertheless, on the
written request of the Company or of the successor, the party ceasing to act
shall, upon payment of the amounts then due it pursuant to the provisions of Section 6.06,
execute and deliver an instrument transferring to such successor all the rights
and powers of the party so ceasing to act and shall duly assign, transfer and
deliver to such successor all property and money held by such retiring party

 

37

 

hereunder.
Upon reasonable request of any such successor, the Company shall execute any
and all instruments in writing for more fully and certainly vesting in and
confirming to such successor all such rights and powers. Any party ceasing to
act shall, nevertheless, retain a lien upon all property or funds held or
collected to secure any amounts then due it pursuant to the provisions of Section 6.06.

 

If a successor Trustee is appointed, the Company, the retiring Trustee
and the successor Trustee shall execute and deliver an indenture supplemental
hereto which shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Debt Securities as to which the
predecessor Trustee is not retiring shall continue to be vested in the
predecessor Trustee, and 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 Trust hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be Trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee.

 

No successor Trustee shall accept appointment as provided in this Section 6.10
unless at the time of such acceptance such successor Trustee shall be eligible
and qualified under the provisions of Section 6.08.

 

In no event shall a retiring Trustee, Calculation Agent, Paying Agent
or Debt Security Registrar be liable for the acts or omissions of any successor
hereunder.

 

Upon acceptance of appointment by a successor Trustee, Calculation Agent,
Paying Agent or Debt Security Registrar as provided in this Section 6.10,
the Company shall mail notice of the succession to the holders of Debt
Securities at their addresses as they shall appear on the Debt Security
Register. If the Company fails to mail such notice within ten Business Days
after the acceptance of appointment by the successor, the successor shall cause
such notice to be mailed at the expense of the Company.

 

SECTION 6.11.  Succession by Merger, etc.

 

Any Person into which the Trustee may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
Person 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; provided, that such Person shall be otherwise eligible
and qualified under this Article.

 

In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any of the Debt Securities shall have been
authenticated but not delivered, any such successor to the Trustee may adopt
the certificate of authentication of any predecessor Trustee, and deliver such
Debt Securities so authenticated; and in case at that time any of the Debt
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Debt Securities either in the name of any predecessor
hereunder or in the name of the

 

38

 

successor
Trustee; and in all such cases such certificates shall have the full force
which it is anywhere in the Debt Securities or in this Indenture provided that
the certificate of the Trustee shall have; provided, however,
that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Debt Securities in the name of any predecessor Trustee
shall apply only to its successor or successors by merger, conversion or
consolidation.

 

SECTION 6.12.  Authenticating Agents.

 

There may be one or more Authenticating Agents appointed by the Trustee
upon the request of the Company with power to act on its behalf and subject to
its direction in the authentication and delivery of Debt Securities issued upon
exchange or registration of transfer thereof as fully to all intents and
purposes as though any such Authenticating Agent had been expressly authorized
to authenticate and deliver Debt Securities; provided, that the Trustee shall
have no liability to the Company for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of Debt
Securities. Any such Authenticating Agent shall at all times be a Person
organized and doing business under the laws of the United States or of any
state or territory thereof or of the District of Columbia authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
at least $50,000,000 and being subject to supervision or examination by
federal, state, territorial or District of Columbia authority. If such Person
publishes reports of condition at least annually pursuant to law or the
requirements of such authority, then for the purposes of this Section 6.12
the combined capital and surplus of such Person 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 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 herein specified in this Section.

 

Any Person into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from
any merger, consolidation or conversion to which any Authenticating Agent shall
be a party, or any Person succeeding to all or substantially all of the
corporate trust business of any Authenticating Agent, shall be the successor of
such Authenticating Agent hereunder, if such successor Person is otherwise
eligible under this Section 6.12 without the execution or filing of any
paper or any further act on the part of the parties hereto or such
Authenticating Agent.

 

Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time terminate the agency of any Authenticating Agent with respect to the Debt
Securities by giving written notice of termination to such Authenticating Agent
and to the Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall cease to be
eligible under this Section 6.12, the Trustee may, and upon the request of
the Company shall, promptly appoint a successor Authenticating Agent eligible
under this Section 6.12, shall give written notice of such appointment to
the Company and shall mail notice of such appointment to all holders of Debt
Securities as the names and addresses of such holders appear on the Debt
Security Register. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all rights, powers, duties and
responsibilities with respect to the Debt Securities of its predecessor
hereunder, with like effect as if originally named as Authenticating Agent
herein.

 

39

 

Other than as provided in the Fee Agreement of even date herewith
between Cohen Bros. & Company, the Company, and the Trustee (as
defined in the Declaration), the Company agrees to pay to any Authenticating
Agent from time to time reasonable compensation for its services. Any
Authenticating Agent shall have no responsibility or liability for any action
taken by it as such in accordance with the directions of the Trustee and shall
receive such reasonable indemnity as it may require against the costs, expenses
and liabilities incurred in furtherance of its duties under this Section 6.12.

 

ARTICLE VII

CONCERNING THE SECURITYHOLDERS

 

SECTION 7.01.  Action by Securityholders.

 

Whenever in this Indenture it is provided that the holders of a
specified percentage in aggregate principal amount of the Debt Securities or
aggregate Liquidation Amount of the Capital Securities may take any action
(including the making of any demand or request, the giving of any notice,
consent or waiver or the taking of any other action), the fact that at the time
of taking any such action the holders of such specified percentage have joined
therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by such Securityholders or holders of
Capital Securities, as the case may be, in person or by agent or proxy
appointed in writing, or (b) by the record of such holders of Debt
Securities voting in favor thereof at any meeting of such Securityholders duly
called and held in accordance with the provisions of Article VIII or of
such holders of Capital Securities duly called and held in accordance with the
provisions of the Declaration, or (c) by a combination of such instrument
or instruments and any such record of such a meeting of such Securityholders or
holders of Capital Securities, as the case may be, or (d) by any other method
the Trustee deems satisfactory.

 

If the Company shall solicit from the Securityholders any request,
demand, authorization, direction, notice, consent, waiver or other action or
revocation of the same, the Company may, at its option, as evidenced by an
Officers’ Certificate, fix in advance a record date for such Debt Securities
for the determination of Securityholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other action or revocation
of the same, but the Company shall have no obligation to do so. If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other action or revocation of the same may be given before
or after the record date, but only the Securityholders of record at the close
of business on the record date shall be deemed to be Securityholders for the
purposes of determining whether Securityholders of the requisite proportion of
outstanding Debt Securities have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other
action or revocation of the same, and for that purpose the outstanding Debt
Securities shall be computed as of the record date; provided, however,
that no such authorization, agreement or consent by such Securityholders on the
record date 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.

 

40

 

SECTION 7.02.  Proof of Execution by Securityholders.

 

Subject to the provisions of Sections 6.01, 6.02 and 8.05, proof of the
execution of any instrument by a Securityholder or such Securityholder’s agent
or proxy shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee. The ownership of Debt Securities shall be proved
by the Debt Security Register or by a certificate of the Debt Security
Registrar. The Trustee may require such additional proof of any matter referred
to in this Section as it shall deem necessary.

 

The record of any Securityholders’ meeting shall be proved in the
manner provided in Section 8.06.

 

SECTION 7.03.  Who Are Deemed Absolute Owners.

 

Prior to due presentment for registration of transfer of any Debt
Security, the Company, the Trustee, any Authenticating Agent, any Paying Agent,
any transfer agent and any Debt Security registrar may deem the Person in whose
name such Debt Security shall be registered upon the Debt Security Register to
be, and may treat such Person as, the absolute owner of such Debt Security
(whether or not such Debt Security shall be overdue) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and
interest on such Debt Security and for all other purposes; and neither the
Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor
any transfer agent nor any Debt Security registrar shall be affected by any
notice to the contrary. All such payments so made to any holder for the time
being or upon such holder’s order shall be valid, and, to the extent of the sum
or sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon any such Debt Security.

 

SECTION 7.04.  Debt Securities Owned by Company Deemed
Not Outstanding.

 

In determining whether the holders of the requisite aggregate principal
amount of Debt Securities have concurred in any direction, consent or waiver
under this Indenture, Debt Securities which are owned by the Company or any
other obligor on the Debt Securities or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company (other than the Trust) or any other obligor on the Debt Securities
shall be disregarded and deemed not to be outstanding for the purpose of any
such determination; provided, that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction,
consent or waiver, only Debt Securities which a Responsible Officer of the
Trustee actually knows are so owned shall be so disregarded. Debt Securities so
owned which have been pledged in good faith may be regarded as outstanding for
the purposes of this Section 7.04 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right to vote such Debt Securities
and that the pledgee is not the Company or any such other obligor or Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company or any such other obligor. In the case of a
dispute as to such right, any decision by the Trustee taken upon the advice of
counsel shall be full protection to the Trustee.

 

41

 

SECTION 7.05.  Revocation of Consents; Future
Securityholders Bound.

 

At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 7.01, of the taking of any action by the holders of
the percentage in aggregate principal amount of the Debt Securities specified
in this Indenture in connection with such action, any holder (in cases where no
record date has been set pursuant to Section 7.01) or any holder as of an
applicable record date (in cases where a record date has been set pursuant to Section 7.01)
of a Debt Security (or any Debt Security issued in whole or in part in exchange
or substitution therefor) the serial number of which is shown by the evidence
to be included in the Debt Securities the holders of which have consented to
such action may, by filing written notice with the Trustee at the Principal
Office of the Trustee and upon proof of holding as provided in Section 7.02,
revoke such action so far as concerns such Debt Security (or so far as concerns
the principal amount represented by any exchanged or substituted Debt
Security). Except as aforesaid any such action taken by the holder of any Debt
Security shall be conclusive and binding upon such holder and upon all future
holders and owners of such Debt Security, and of any Debt Security issued in
exchange or substitution therefor or on registration of transfer thereof,
irrespective of whether or not any notation in regard thereto is made upon such
Debt Security or any Debt Security issued in exchange or substitution therefor.

 

ARTICLE VIII

SECURITYHOLDERS’ MEETINGS

 

SECTION 8.01.  Purposes of Meetings.

 

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

 

(a)           to give any notice to
the Company or to the Trustee, or to give any directions to the Trustee, or to
consent to the waiving of any default hereunder and its consequences, or to
take any other action authorized to be taken by Securityholders pursuant to any
of the provisions of Article V;

 

(b)           to remove the Trustee
and nominate a successor trustee pursuant to the provisions of Article VI;

 

(c)           to consent to the
execution of an indenture or indentures supplemental hereto pursuant to the
provisions of Section 9.02; or

 

(d)           to take any other
action authorized to be taken by or on behalf of the holders of any specified
aggregate principal amount of such Debt Securities under any other provision of
this Indenture or under applicable law.

 

SECTION 8.02.  Call of Meetings by Trustee.

 

The Trustee may at any time call a meeting of Securityholders to take
any action specified in Section 8.01, to be held at such time and at such
place in The City of New York, the Borough of Manhattan, or Boston,
Massachusetts, as the Trustee shall determine. Notice of every

 

42

 

meeting of the
Securityholders, 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 mailed
to holders of Debt Securities affected at their addresses as they shall appear
on the Debt Securities Register. Such notice shall be mailed not less than 20
nor more than 180 days prior to the date fixed for the meeting.

 

SECTION 8.03.  Call of Meetings by Company or
Securityholders.

 

In case at any time the Company pursuant to a Board Resolution, or the
holders of at least 10% in aggregate principal amount of the Debt Securities,
as the case may be, then outstanding, shall have requested the Trustee to call
a meeting of Securityholders, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall
not have mailed the notice of such meeting within 20 days after receipt of such
request, then the Company or such Securityholders may determine the time and
the place in for such meeting and may call such meeting to take any action
authorized in Section 8.01, by mailing notice thereof as provided in Section 8.02.

 

SECTION 8.04.  Qualifications for Voting.

 

To be entitled to vote at any meeting of Securityholders a Person shall
be (a) a holder of one or more Debt Securities with respect to which the
meeting is being held or (b) a Person appointed by an instrument in
writing as proxy by a holder of one or more such Debt Securities. The only
Persons who shall be entitled to be present or to speak at any meeting of
Securityholders shall be the Persons entitled to vote at such meeting and their
counsel and any representatives of the Trustee and its counsel and any
representatives of the Company and its counsel.

 

SECTION 8.05.  Regulations.

 

Notwithstanding any other provisions of this Indenture, the Trustee may
make such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holding of Debt Securities and of
the appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates
and other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall deem appropriate.

 

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 Securityholders as provided in Section 8.03, in which case
the Company or the Securityholders 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 majority vote at the
meeting.

 

Subject to the provisions of Section 7.04, at any meeting each
holder of Debt Securities with respect to which such meeting is being held or
proxy therefor shall be entitled to one vote for each $1,000 principal amount
of Debt Securities held or represented by such holder; provided, however,
that no vote shall be cast or counted at any meeting in respect of any Debt
Security challenged as not outstanding and ruled by the chairman of the meeting
to be not outstanding. The chairman of the meeting shall have no right to vote
other than by virtue of Debt

 

43

 

Securities
held by such chairman or instruments in writing as aforesaid duly designating
such chairman as the Person to vote on behalf of other Securityholders. Any
meeting of Securityholders duly called pursuant to the provisions of Section 8.02
or 8.03 may be adjourned from time to time by a majority of those present,
whether or not constituting a quorum, and the meeting may be held as so
adjourned without further notice.

 

SECTION 8.06.  Voting.

 

The vote upon any resolution submitted to any meeting of holders of
Debt Securities with respect to which such meeting is being held shall be by
written ballots on which shall be subscribed the signatures of such holders or
of their representatives by proxy and the serial number or numbers of the Debt
Securities held or represented by them. The permanent chairman of the meeting
shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in triplicate of all
votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of Securityholders shall be prepared by the secretary of the meeting
and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and 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 mailed as provided in Section 8.02.
The record shall show the serial numbers of the Debt Securities voting in favor
of or against any resolution. The record shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one of
the duplicates shall be delivered to the Company and the other to the Trustee
to be preserved by the Trustee, the latter to have attached thereto the ballots
voted at the meeting.  Any record so
signed and verified shall be conclusive evidence of the matters therein
stated.  

 

SECTION 8.07.  Quorum; Actions.

 

The Persons entitled to vote a majority in outstanding principal amount
of the Debt Securities shall constitute a quorum for a meeting of
Securityholders; provided, however, that if any action is to be
taken at such meeting with respect to a consent, waiver, request, demand,
notice, authorization, direction or other action which may be given by the
holders of not less than a specified percentage in outstanding principal amount
of the Debt Securities, the Persons holding or representing such specified
percentage in outstanding principal amount of the Debt Securities will
constitute a quorum. In the absence of a quorum within 30 minutes of the time
appointed for any such meeting, the meeting shall, if convened at the request
of Securityholders, be dissolved. In any other case the meeting may be
adjourned for a period of not less than 10 days as determined by the permanent
chairman of the meeting prior to the adjournment of such meeting. In the
absence of a quorum at any such adjourned meeting, such adjourned meeting may
be further adjourned for a period of not less than 10 days as determined by the
permanent chairman of the meeting prior to the adjournment of such adjourned
meeting. Notice of the reconvening of any adjourned meeting shall be given as
provided in Section 8.02, 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 outstanding principal
amount of the Debt Securities which shall constitute a quorum.

 

44

 

 

Except as limited by the proviso in the first paragraph of Section 9.02,
any resolution presented to a meeting or adjourned meeting duly reconvened at
which a quorum is present as aforesaid may be adopted by the affirmative vote
of the holders of not less than a majority in outstanding principal amount of
the Debt Securities; provided, however, that, except as limited
by the proviso in the first paragraph of Section 9.02, any resolution with
respect to any consent, waiver, request, demand, notice, authorization,
direction or other action that this Indenture expressly provides may be given
by the holders of not less than a specified percentage in outstanding principal
amount of the Debt Securities may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid only by
the affirmative vote of the holders of not less than such specified percentage
in outstanding principal amount of the Debt Securities.

 

Any resolution passed or decision taken at any meeting of holders of
Debt Securities duly held in accordance with this Section shall be binding
on all the Securityholders, whether or not present or represented at the
meeting.

 

SECTION 8.08.  Written Consent Without a Meeting.

 

Whenever under this Indenture, Securityholders are required or
permitted to take any action by vote, such action may be taken without a
meeting on written consent, setting forth the action so taken, signed by the
Securityholders of all outstanding Debt Securities entitled to vote thereon.  No consent shall be effective to take the
action referred to therein unless, within sixty days of the earliest dated
consent delivered in the manner required by this paragraph to the Trustee,
written consents signed by a sufficient number of Securityholders to take
action are delivered to the Trustee at its Principal Office.  Delivery made to the Trustee at its Principal
Office, shall be by hand or by certificated or registered mail, return receipt
requested.  Written consent thus given by
the Securityholders of such number of Debt Securities as is required hereunder,
shall have the same effect as a valid vote of Securityholders of such number of
Debt Securities.

 

ARTICLE IX

SUPPLEMENTAL INDENTURES

 

SECTION 9.01.  Supplemental Indentures without Consent of
Securityholders.

 

The Company, when authorized by a Board Resolution, and the Trustee may
from time to time and at any time enter into an indenture or indentures
supplemental hereto, without the consent of the Securityholders, for one or
more of the following purposes:

 

(a)           to evidence the
succession of another Person to the Company, or successive successions, and the
assumption by the successor Person of the covenants, agreements and obligations
of the Company, pursuant to Article XI hereof;

 

(b)           to add to the covenants
of the Company such further covenants, restrictions or conditions for the
protection of the holders of Debt Securities as the Board of Directors shall
consider to be for the protection of the holders of such Debt Securities, and
to make the occurrence, or the occurrence and continuance, of a Default in any
of such additional

 

45

 

covenants, restrictions or conditions a Default or an
Event of Default permitting the enforcement of all or any of the several
remedies provided in this Indenture as herein set forth; provided, however,
that in respect of any such additional covenant, restriction or condition such
supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of
other defaults) or may provide for an immediate enforcement upon such default
or may limit the remedies available to the Trustee upon such default;

 

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

 

(d)           to add to, delete from,
or revise the terms of Debt Securities, including, without limitation, any terms
relating to the issuance, exchange, registration or transfer of Debt
Securities, including to provide for transfer procedures and restrictions
substantially similar to those applicable to the Capital Securities, as
required by Section 2.05 (for purposes of assuring that no registration of
Debt Securities is required under the Securities Act of 1933, as amended);
provided, that any such action shall not adversely affect the interests of the
holders of the Debt Securities then outstanding (it being understood, for
purposes of this proviso, that transfer restrictions on Debt Securities
substantially similar to those applicable to Capital Securities shall not be
deemed to adversely affect the holders of the Debt Securities);

 

(e)           to evidence and provide
for the acceptance of appointment hereunder by a successor Trustee with respect
to the Debt Securities 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 6.10;

 

(f)            to make any change
(other than as elsewhere provided in this paragraph) that does not adversely
affect the rights of any Securityholder in any material respect; or

 

(g)           to provide for the
issuance of and establish the form and terms and conditions of the Debt
Securities, to establish the form of any certifications required to be
furnished pursuant to the terms of this Indenture or the Debt Securities, or to
add to the rights of the holders of Debt Securities.

 

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

 

Any supplemental indenture authorized by the provisions of this Section 9.01
may be executed by the Company and the Trustee without the consent of the
holders of any of the Debt Securities at the time outstanding, notwithstanding
any of the provisions of Section 9.02.

 

46

 

SECTION 9.02.  Supplemental Indentures with Consent of
Securityholders.

 

With the consent (evidenced as provided in Section 7.01) of the
holders of not less than a majority in aggregate principal amount of the Debt
Securities at the time outstanding affected by such supplemental indenture, the
Company, when authorized by a Board Resolution, and the Trustee may from time
to time and at any time enter into an indenture or indentures supplemental
hereto (which shall conform to the provisions of the Trust Indenture Act, then
in effect, applicable to indentures qualified thereunder) for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the holders of the Debt Securities; provided,
however, that no such supplemental indenture shall without such consent
of the holders of each Debt Security then outstanding and affected thereby (i) change
the Maturity Date of any Debt Security, or reduce the principal amount thereof
or any premium thereon, or reduce the rate (or manner of calculation of the
rate) or extend the time of payment of interest thereon, or reduce (other than
as a result of the maturity or earlier redemption of any such Debt Security in
accordance with the terms of this Indenture and such Debt Security) or increase
the aggregate principal amount of Debt Securities then outstanding, or change
any of the redemption provisions, or make the principal thereof or any interest
or premium thereon payable in any coin or currency other than United States
Dollars, or impair or affect the right of any Securityholder to institute suit
for payment thereof or impair the right of repayment, if any, at the option of
the holder, or (ii) reduce the aforesaid percentage of Debt Securities the
holders of which are required to consent to any such supplemental indenture;
and provided, further, that if the Debt Securities are held by
the Trust or a trustee of such trust, such supplemental indenture shall not be
effective until the holders of a majority in Liquidation Amount of the
outstanding Capital Securities shall have consented to such supplemental
indenture; provided, further, that if the consent of the
Securityholder of each outstanding Debt Security is required, such supplemental
indenture shall not be effective until each holder of the outstanding Capital
Securities shall have consented to such supplemental indenture.

 

Upon the request of the Company accompanied by a Board Resolution
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders (and
holders of Capital Securities, if required) as aforesaid, the Trustee shall
join with the Company in the execution of such supplemental indenture unless
such supplemental indenture affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such supplemental
indenture.

 

Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, prepared by the
Company, setting forth in general terms the substance of such supplemental
indenture, to the Securityholders as their names and addresses appear upon the
Debt Security Register. Any failure of the Trustee to mail such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.

 

47

 

It shall not be necessary for the consent of the Securityholders under
this Section 9.02 to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such consent shall
approve the substance thereof.

 

SECTION 9.03.  Effect of Supplemental Indentures.

 

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

 

SECTION 9.04.  Notation on Debt Securities.

 

Debt Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article IX may
bear a notation as to any matter provided for in such supplemental indenture.
If the Company or the Trustee shall so determine, new Debt Securities so
modified as to conform, in the opinion of the Board of Directors of the
Company, to any modification of this Indenture contained in any such
supplemental indenture may be prepared and executed by the Company,
authenticated by the Trustee or the Authenticating Agent and delivered in
exchange for the Debt Securities then outstanding.

 

SECTION 9.05.  Evidence of Compliance of Supplemental
Indenture to be furnished to Trustee.

 

The Trustee, subject to the provisions of Sections 6.01 and 6.02,
shall, in addition to the documents required by Section 14.06, receive an
Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the requirements
of this Article IX. The Trustee shall receive an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this Article IX
is authorized or permitted by, and conforms to, the terms of this Article IX
and that it is proper for the Trustee under the provisions of this Article IX
to join in the execution thereof.

 

ARTICLE X

REDEMPTION OF SECURITIES

 

SECTION 10.01.  Optional Redemption.

 

At any time the Company shall have the right, subject to the receipt by
the Company of prior approval from any regulatory authority with jurisdiction
over the Company if such approval is then required under applicable capital
guidelines or policies of such regulatory authority, to redeem the Debt
Securities, in whole or (provided that all accrued and unpaid interest has been
paid on all Debt Securities for all Interest Periods terminating on or prior to

 

48

 

such date)
from time to time in part, on any March 15,
June 15, September 15 or December 15
on or after December 15, 2010 (the “Redemption
Date”), at the Redemption Price.

 

SECTION 10.02.  Special Event Redemption.

 

If a Special Event shall occur and be continuing, the Company shall
have the right, subject to the receipt by the Company of prior approval from
any regulatory authority with jurisdiction over the Company if such approval is
then required under applicable capital guidelines or policies of such
regulatory authority, to redeem the Debt Securities, in whole or in part, at
any time within 90 days following the occurrence of such Special Event (the “Special
Redemption Date”), at the Special Redemption Price.

 

SECTION 10.03.  Notice of Redemption; Selection of Debt
Securities.

 

In case the Company shall desire to exercise the right to redeem all,
or, as the case may be, any part of the Debt Securities, it shall fix a date
for redemption and shall mail, or cause the Trustee to mail (at the expense of
the Company) a notice of such redemption at least 30 and not more than 60 days
prior to the date fixed for redemption to the holders of Debt Securities so to be
redeemed as a whole or in part at their last addresses as the same appear on
the Debt Security Register. Such mailing shall be by first class mail. The
notice if mailed in the manner herein provided shall be conclusively presumed
to have been duly given, whether or not the holder receives such notice. In any
case, failure to give such notice by mail or any defect in the notice to the
holder of any Debt Security designated for redemption as a whole or in part
shall not affect the validity of the proceedings for the redemption of any
other Debt Security.

 

Each such notice of redemption shall specify the CUSIP number, if any,
of the Debt Securities to be redeemed, the date fixed for redemption, the
redemption price (or manner of calculation of the price) at which Debt
Securities are to be redeemed, the place or places of payment, that payment
will be made upon presentation and surrender of such Debt Securities, that
interest accrued to the date fixed for redemption will be paid as specified in
said notice, and that on and after said date interest thereon or on the
portions thereof to be redeemed will cease to accrue. If less than all the Debt
Securities are to be redeemed the notice of redemption shall specify the
numbers of the Debt Securities to be redeemed. In case the Debt Securities are
to be redeemed in part only, the notice of redemption shall state the portion
of the principal amount thereof to be redeemed and shall state that on and
after the date fixed for redemption, upon surrender of such Debt Security, a
new Debt Security or Debt Securities in principal amount equal to the
unredeemed portion thereof will be issued.

 

Prior to 10:00 a.m. New York City time on the Redemption Date or
the Special Redemption Date specified in the notice of redemption given as
provided in this Section, the Company will deposit with the Trustee or with one
or more Paying Agents an amount of money sufficient to redeem on the redemption
date all the Debt Securities so called for redemption at the appropriate
redemption price, together with unpaid interest accrued to such date.

 

The Company will give the Trustee notice not less than 45 nor more than
60 days prior to the Redemption Date as to the Redemption Price at which the
Debt Securities are to be redeemed and the aggregate principal amount of Debt
Securities to be redeemed and the Trustee

 

49

 

shall select,
in such manner as in its sole discretion it shall deem appropriate and fair,
the Debt Securities or portions thereof (in integral multiples of $1,000) to be
redeemed.

 

SECTION 10.04.  Payment of Debt Securities Called for
Redemption.

 

If notice of redemption has been given as provided in Section 10.03,
the Debt Securities or portions of Debt Securities with respect to which such
notice has been given shall become due and payable on the Redemption Date or
the Special Redemption Date (as the case may be) and at the place or places
stated in such notice at the applicable redemption price, together with
interest accrued to the date fixed for redemption, and on and after said
Redemption Date or the Special Redemption Date (unless the Company shall
default in the payment of such Debt Securities at the redemption price,
together with unpaid interest accrued thereon to said date) interest on the
Debt Securities or portions of Debt Securities so called for redemption shall
cease to accrue. On presentation and surrender of such Debt Securities at a
place of payment specified in said notice, such Debt Securities or the
specified portions thereof shall be paid and redeemed by the Company at the
applicable redemption price, together with unpaid interest accrued thereon to
the Redemption Date or the Special Redemption Date (as the case may be).

 

Upon presentation of any Debt Security redeemed in part only, the
Company shall execute and the Trustee shall authenticate and make available for
delivery to the holder thereof, at the expense of the Company, a new Debt
Security or Debt Securities of authorized denominations in principal amount
equal to the unredeemed portion of the Debt Security so presented.

 

ARTICLE XI

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

 

SECTION 11.01.  Company May Consolidate, etc., on
Certain Terms.

 

Nothing contained in this Indenture or in the Debt Securities shall prevent
any consolidation or merger of the Company with or into any other corporation
or corporations (whether or not affiliated with the Company) or successive
consolidations or mergers in which the Company or its successor or successors
shall be a party or parties, or shall prevent any sale, conveyance, transfer or
other disposition of all or substantially all of the property or capital stock
of the Company or its successor or successors to any other corporation (whether
or not affiliated with the Company, or its successor or successors) authorized
to acquire and operate the same; provided, however, that the
Company hereby covenants and agrees that, (i) upon any such consolidation,
merger (where the Company is not the surviving corporation), sale, conveyance,
transfer or other disposition, the successor entity shall be a corporation
organized and existing under the laws of the United States or any state thereof
or the District of Columbia (unless such corporation has (1) agreed to
make all payments due in respect of the Debt Securities or, if outstanding, the
Capital Securities and Capital Securities Guarantee without withholding or
deduction for, or on account of, any taxes, duties, assessments or other
governmental charges under the laws or regulations of the jurisdiction of
organization or residence (for tax purposes) of such corporation or any
political subdivision or taxing authority thereof or therein unless required by
applicable law, in which case such corporation shall have agreed to pay such

 

50

 

additional
amounts as shall be required so that the net amounts received and retained by
the holders of such Debt Securities or Capital Securities, as the case may be,
after payment of all taxes (including withholding taxes), duties, assessments
or other governmental charges, will be equal to the amounts that such holders
would have received and retained had no such taxes (including withholding
taxes), duties, assessments or other governmental charges been imposed, (2) irrevocably
and unconditionally consented and submitted to the jurisdiction of any United
States federal court or New York state court, in each case located in The City
of New York, Borough of Manhattan, in respect of any action, suit or proceeding
against it arising out of or in connection with this Indenture, the Debt
Securities, the Capital Securities Guarantee or the Declaration and irrevocably
and unconditionally waived, to the fullest extent permitted by law, any
objection to the laying of venue in any such court or that any such action,
suit or proceeding has been brought in an inconvenient forum and (3) irrevocably
appointed an agent in The City of New York for service of process in any
action, suit or proceeding referred to in clause (2) above) and such
corporation expressly assumes all of the obligations of the Company under the
Debt Securities, this Indenture, the Capital Securities Guarantee and the
Declaration and (ii) after giving effect to any such consolidation,
merger, sale, conveyance, transfer or other disposition, no Default or Event of
Default shall have occurred and be continuing. 

 

SECTION 11.02.  Successor Entity to be Substituted.

 

In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition contemplated in Section 11.01 and upon the assumption
by the successor entity, by supplemental indenture, executed and delivered to
the Trustee and reasonably satisfactory in form to the Trustee, of the due and
punctual payment of the principal of and premium, if any, and interest on all
of the Debt Securities and the due and punctual performance and observance of
all of the covenants and conditions of this Indenture to be performed or
observed by the Company, such successor entity shall succeed to and be substituted
for the Company, with the same effect as if it had been named herein as the
Company, and thereupon the predecessor entity shall be relieved of any further
liability or obligation hereunder or upon the Debt Securities. Such successor
entity thereupon may cause to be signed, and may issue either in its own name
or in the name of the Company, any or all of the Debt Securities issuable
hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee or the Authenticating Agent; and, upon the order of
such successor entity instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee or the
Authenticating Agent shall authenticate and deliver any Debt Securities which
previously shall have been signed and delivered by the officers of the Company,
to the Trustee or the Authenticating Agent for authentication, and any Debt
Securities which such successor entity thereafter shall cause to be signed and
delivered to the Trustee or the Authenticating Agent for that purpose. All the
Debt Securities so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Debt Securities theretofore or thereafter
issued in accordance with the terms of this Indenture as though all of such
Debt Securities had been issued at the date of the execution hereof.

 

SECTION 11.03.  Opinion of Counsel to be Given to Trustee.

 

The Trustee, subject to the provisions of Sections 6.01 and 6.02, shall
receive, in addition to the Opinion of Counsel required by Section 9.05,
an Opinion of Counsel as

 

51

 

conclusive
evidence that any consolidation, merger, sale, conveyance, transfer or other
disposition, and any assumption, permitted or required by the terms of this Article XI
complies with the provisions of this Article XI.

 

ARTICLE XII

SATISFACTION AND DISCHARGE OF INDENTURE

 

SECTION 12.01.  Discharge of Indenture.

 

When (a) the Company shall deliver to the Trustee for cancellation
all Debt Securities theretofore authenticated (other than any Debt Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced or paid as provided in Section 2.06) and not theretofore
canceled, or (b) all the Debt Securities not theretofore canceled or
delivered to the Trustee for cancellation shall have become due and payable, or
are by their terms to become due and payable within one year or are to be
called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption, and the Company shall deposit
with the Trustee, in trust, funds, which shall be immediately due and payable,
sufficient to pay at maturity or upon redemption all of the Debt Securities
(other than any Debt Securities which shall have been destroyed, lost or stolen
and which shall have been replaced or paid as provided in Section 2.06)
not theretofore canceled or delivered to the Trustee for cancellation,
including principal and premium, if any, and interest due or to become due to
such date of maturity or redemption date, as the case may be, but excluding,
however, the amount of any moneys for the payment of principal of, and premium,
if any, or interest on the Debt Securities (1) theretofore repaid to the
Company in accordance with the provisions of Section 12.04, or (2) paid
to any state or to the District of Columbia pursuant to its unclaimed property
or similar laws, and if in the case of either clause (a) or clause (b) the
Company shall also pay or cause to be paid all other sums payable hereunder by
the Company, then this Indenture shall cease to be of further effect except for
the provisions of Sections 2.05, 2.06, 3.01, 3.02, 3.04, 6.06, 6.09 and 12.04
hereof, which shall survive until such Debt Securities shall mature or are
redeemed, as the case may be, and are paid in full. Thereafter, Sections 6.06,
6.09 and 12.04 shall survive, and the Trustee, on demand of the Company
accompanied by an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have been complied with, and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture, the Company, however, hereby
agreeing to reimburse the Trustee for any costs or expenses thereafter
reasonably and properly incurred by the Trustee in connection with this
Indenture or the Debt Securities.

 

SECTION 12.02.  Deposited Moneys to be Held in Trust by
Trustee.

 

Subject to the provisions of Section 12.04, all moneys deposited
with the Trustee pursuant to Section 12.01 shall be held in trust and
applied by it to the payment, either directly or through any Paying Agent (including
the Company if acting as its own Paying Agent), to the holders of the
particular Debt Securities for the payment of which such moneys have been
deposited with the Trustee, of all sums due and to become due thereon for
principal, and premium, if any, and interest.

 

52

 

SECTION 12.03.  Paying Agent to Repay Moneys Held.

 

Upon the satisfaction and discharge of this Indenture, all moneys then
held by any Paying Agent of the Debt Securities (other than the Trustee) shall,
upon demand of the Company, be repaid to the Company or paid to the Trustee,
and thereupon such Paying Agent shall be released from all further liability
with respect to such moneys.

 

SECTION 12.04.  Return of Unclaimed Moneys.

 

Any moneys deposited with or paid to the Trustee or any Paying Agent
for payment of the principal of, and premium, if any, or interest on Debt
Securities and not applied but remaining unclaimed by the holders of Debt
Securities for two years after the date upon which the principal of, and
premium, if any, or interest on such Debt Securities, as the case may be, shall
have become due and payable, shall be repaid to the Company by the Trustee or
such Paying Agent on written demand; and the holder of any of the Debt Securities
shall thereafter look only to the Company for any payment which such holder may
be entitled to collect and all liability of the Trustee or such Paying Agent
with respect to such moneys shall thereupon cease.

 

ARTICLE XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

SECTION 13.01.  Indenture and Debt Securities Solely
Corporate Obligations.

 

No recourse for the payment of the principal of or premium, if any, or
interest on any Debt Security, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture, or
in any such Debt Security, or because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder,
officer, director, employee or agent, as such, past, present or future, of the
Company or of any predecessor or successor corporation of the Company, either
directly or through the Company or any successor corporation of 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 all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Debt Securities.

 

ARTICLE XIV

MISCELLANEOUS PROVISIONS

 

SECTION 14.01.  Successors.

 

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

 

53

 

SECTION 14.02.  Official Acts by Successor Entity.

 

Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
like board, committee, officer or other authorized Person of any entity that
shall at the time be the lawful successor of the Company.

 

SECTION 14.03.  Surrender of Company Powers.

 

The Company by instrument in writing executed by authority of 2/3
(two-thirds) of its Board of Directors and delivered to the Trustee may
surrender any of the powers reserved to the Company and thereupon such power so
surrendered shall terminate both as to the Company and as to any permitted
successor.

 

SECTION 14.04.  Addresses for Notices, etc.

 

Any notice or demand which by any provision of this Indenture is required
or permitted to be given or served by the Trustee or by the Securityholders on
the Company may be given or served in writing, duly signed by the party giving
such notice, and shall be delivered, telecopied (which telecopy shall be
followed by notice delivered or mailed by first class mail) or mailed by first
class mail to the Company at:

 

The Bank Holdings

9990 Double R Boulevard

Reno, Nevada 89521

Attention:  Jack Buchold

 

Any notice, direction, request or demand by any Securityholder or the
Company to or upon the Trustee shall be deemed to have been sufficiently given
or made, for all purposes, if given or made in writing at the office of U.S.
Bank National Association at:

 

One Federal Street, 3rd
Floor

Boston, Massachusetts 02110

Attn: Corporate Trust Services – The Bank
Holdings Statutory Trust I

 

SECTION 14.05.  Governing Law.

 

This Indenture and the Debt Securities shall each be governed by, and
construed in accordance with, the laws of the State of New York, without regard
to conflict of laws principles of said State other than Section 5-1401 of
the New York General Obligations Law.

 

SECTION 14.06.  Evidence of Compliance with Conditions
Precedent.

 

Upon any application or demand by the Company to the Trustee to take
any action under any of the provisions of this Indenture, the Company shall
furnish to the Trustee an Officers’ Certificate stating that in the opinion of
the signers 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

 

54

 

have been
complied with (except that no such Opinion of Counsel is required to be
furnished to the Trustee in connection with the authentication and issuance of
Debt Securities issued on the date of this Indenture).

 

Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture (except certificates delivered pursuant to Section 3.05)
shall include (a) a statement that the person making such certificate or
opinion has read such covenant or condition and the definitions relating
thereto; (b) 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; (c) a statement that, in the
opinion of such person, he or she has made such examination or investigation as
is necessary to enable him or her to express an informed opinion as to whether
or not such covenant or condition has been complied with; and (d) a
statement as to whether or not, in the opinion of such person, such condition
or covenant has been complied with.

 

SECTION 14.07.  Non-Business Days.

 

Notwithstanding anything to the contrary contained herein, if any
Interest Payment Date, other than on the Maturity Date, any Redemption Date or
the Special Redemption Date, falls on a day that is not a Business Day, then
any interest payable will be paid on, and such Interest Payment Date will be
moved to, the next succeeding Business Day, and additional interest will accrue
for each day that such payment is delayed as a result thereof.  If the Maturity Date, any Redemption Date or
the Special Redemption Date falls on a day that is not a Business Day, then the
principal, premium, if any, and/or interest payable on such date will be paid
on the next succeeding Business Day, and no additional interest will accrue in
respect of such payment made on such next succeeding Business Day.

 

SECTION 14.08.  Table of Contents, Headings, etc.

 

The table of contents and the titles and headings of the articles and
sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or
restrict any of the terms or provisions hereof.

 

SECTION 14.09.  Execution in Counterparts.

 

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

 

SECTION 14.10.  Severability.

 

In case any one or more of the provisions contained in this Indenture
or in the Debt Securities shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Indenture or of
such Debt Securities, but this Indenture and such Debt Securities shall be
construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

 

55

 

SECTION 14.11.  Assignment.

 

Subject to Article XI, the Company will have the right at all
times to assign any of its rights or obligations under this Indenture and the
Debt Securities to a direct or indirect wholly owned Subsidiary of the Company;
provided, however, that, in the event of any such assignment, the
Company will remain liable for all such obligations. Subject to the foregoing,
this Indenture is binding upon and inures to the benefit of the parties hereto
and their respective successors and assigns. This Indenture may not otherwise
be assigned by the parties thereto.

 

SECTION 14.12.  Acknowledgment of Rights.

 

The Company acknowledges that, with respect to any Debt Securities held
by the Trust or the Institutional Trustee of the Trust, if the Institutional
Trustee of the Trust fails to enforce its rights under this Indenture as the
holder of Debt Securities held as the assets of the Trust after the holders of
a majority in Liquidation Amount of the Capital Securities of the Trust have so
directed in writing such Institutional Trustee, a holder of record of such
Capital Securities may to the fullest extent permitted by law institute legal
proceedings directly against the Company to enforce such Institutional Trustee’s
rights under this Indenture without first instituting any legal proceedings
against such Institutional Trustee or any other Person. Notwithstanding the
foregoing, if an Event of Default has occurred and is continuing and such event
is attributable to the failure of the Company to pay interest (or premium, if
any) or principal on the Debt Securities on the date such interest (or premium,
if any) or principal is otherwise due and payable (or in the case of
redemption, on the redemption date), the Company acknowledges that a holder of
record of Capital Securities of the Trust may directly institute a proceeding
against the Company for enforcement of payment to such holder directly of the
principal of (or premium, if any) or interest on the Debt Securities having an
aggregate principal amount equal to the aggregate Liquidation Amount of the
Capital Securities of such holder on or after the respective due date specified
in the Debt Securities.

 

ARTICLE XV

SUBORDINATION OF DEBT SECURITIES

 

SECTION 15.01.  Agreement to Subordinate.

 

The Company covenants and agrees, and each holder of Debt Securities
issued hereunder and under any supplemental indenture (the “Additional
Provisions”) by such Securityholder’s acceptance thereof likewise covenants and
agrees, that all Debt Securities shall be issued subject to the provisions of
this Article XV; and each holder of a Debt Security, whether upon original
issue or upon transfer or assignment thereof, accepts and agrees to be bound by
such provisions.

 

The payment by the Company of the payments due on all Debt Securities
issued hereunder and under any Additional Provisions shall, to the extent and
in the manner hereinafter set forth, be subordinated and junior in right of
payment to the prior payment in full of all Senior Indebtedness of the Company,
whether outstanding at the date of this Indenture or thereafter incurred.

 

56

 

No provision of this Article XV shall prevent the occurrence of
any Default or Event of Default hereunder.

 

SECTION 15.02.  Default on Senior Indebtedness.

 

In the event and during the continuation of any default by the Company
in the payment of principal, premium, interest or any other payment due on any
Senior Indebtedness of the Company following any applicable grace period, or in
the event that the maturity of any Senior Indebtedness of the Company has been
accelerated because of a default, and such acceleration has not been rescinded
or canceled and such Senior Indebtedness has not been paid in full, then, in
either case, no payment shall be made by the Company with respect to the
payments due on the Debt Securities.

 

In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee when such payment is prohibited by the preceding
paragraph of this Section 15.02, such payment shall, subject to Section 15.06,
be held in trust for the benefit of, and shall be paid over or delivered to,
the holders of Senior Indebtedness or their respective representatives, or to
the trustee or trustees under any indenture pursuant to which any of such
Senior Indebtedness may have been issued, as their respective interests may
appear, but only to the extent that the holders of the Senior Indebtedness (or
their representative or representatives or a trustee) notify the Trustee in
writing within 90 days of such payment of the amounts then due and owing on the
Senior Indebtedness and only the amounts specified in such notice to the
Trustee shall be paid to the holders of Senior Indebtedness.

 

SECTION 15.03.  Liquidation; Dissolution; Bankruptcy.

 

Upon any payment by the Company or distribution of assets of the Company
of any kind or character, whether in cash, property or securities, to creditors
upon any dissolution or winding-up or liquidation or reorganization of the
Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due upon all Senior Indebtedness
of the Company shall first be paid in full, or payment thereof provided for in
money in accordance with its terms, before any payment is made by the Company
on the Debt Securities; and upon any such dissolution or winding-up or
liquidation or reorganization, any payment by the Company, or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, to which the Securityholders or the Trustee would be entitled to
receive from the Company, except for the provisions of this Article XV,
shall be paid by the Company, or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Securityholders or by the Trustee under this Indenture if received by
them or it, directly to the holders of Senior Indebtedness of the Company (pro
rata to such holders on the basis of the respective amounts of Senior
Indebtedness held by such holders, as calculated by the Company) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent necessary
to pay such Senior Indebtedness in full, in money or money’s worth, after
giving effect to any concurrent payment or distribution to or for the holders
of such Senior Indebtedness, before any payment or distribution is made to the
Securityholders.

 

57

 

In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in
cash, property or securities, prohibited by the foregoing, shall be received by
the Trustee before all Senior Indebtedness of the Company is paid in full, or
provision is made for such payment in money in accordance with its terms, such
payment or distribution shall be held in trust for the benefit of and shall be paid
over or delivered to the holders of such Senior Indebtedness or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, as calculated
by the Company, for application to the payment of all Senior Indebtedness of
the Company remaining unpaid to the extent necessary to pay such Senior
Indebtedness in full in money in accordance with its terms, after giving effect
to any concurrent payment or distribution to or for the benefit of the holders
of such Senior Indebtedness.

 

For purposes of this Article XV, the words “cash, property or
securities” shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article XV
with respect to the Debt Securities to the payment of all Senior Indebtedness
of the Company, that may at the time be outstanding, provided, that (a) such
Senior Indebtedness is assumed by the new corporation, if any, resulting from
any such reorganization or readjustment, and (b) the rights of the holders
of such Senior Indebtedness are not, without the consent of such holders,
altered by such reorganization or readjustment. The consolidation of the
Company with, or the merger of the Company into, another corporation or the
liquidation or dissolution of the Company following the conveyance, transfer or
other disposition of its property as an entirety, or substantially as an
entirety, to another corporation upon the terms and conditions provided for in Article XI
of this Indenture shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 15.03 if such other
corporation shall, as a part of such consolidation, merger, conveyance or
transfer, comply with the conditions stated in Article XI of this
Indenture. Nothing in Section 15.02 or in this Section 15.03 shall
apply to claims of, or payments to, the Trustee under or pursuant to Section 6.06
of this Indenture.

 

SECTION 15.04.  Subrogation.

 

Subject to the payment in full of all Senior Indebtedness of the
Company, the Securityholders shall be subrogated to the rights of the holders
of such Senior Indebtedness to receive payments or distributions of cash,
property or securities of the Company applicable to such Senior Indebtedness
until all payments due on the Debt Securities shall be paid in full; and, for
the purposes of such subrogation, no payments or distributions to the holders
of such Senior Indebtedness of any cash, property or securities to which the
Securityholders or the Trustee would be entitled except for the provisions of
this Article XV, and no payment over pursuant to the provisions of this Article XV
to or for the benefit of the holders of such Senior Indebtedness by
Securityholders or the Trustee, shall, as between the Company, its creditors
other than holders of Senior Indebtedness of the Company, and the holders of
the Debt Securities be deemed to be a payment or distribution by the Company to
or on account of such Senior Indebtedness. It is understood that the provisions
of this Article XV are and are intended solely for the purposes of
defining the relative rights of the holders of the Debt Securities, on the one
hand, and the holders of such Senior Indebtedness, on the other hand.

 

58

 

Nothing contained in this Article XV or elsewhere in this
Indenture, any Additional Provisions or in the Debt Securities is intended to
or shall impair, as between the Company, its creditors other than the holders
of Senior Indebtedness of the Company, and the holders of the Debt Securities,
the obligation of the Company, which is absolute and unconditional, to pay to
the holders of the Debt Securities all payments on the Debt Securities as and
when the same shall become due and payable in accordance with their terms, or
is intended to or shall affect the relative rights of the holders of the Debt
Securities and creditors of the Company, other than the holders of Senior
Indebtedness of the Company, nor shall anything herein or therein prevent the
Trustee or the holder of any Debt Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article XV of the holders of
such Senior Indebtedness in respect of cash, property or securities of the
Company received upon the exercise of any such remedy.

 

Upon any payment or distribution of assets of the Company referred to
in this Article XV, the Trustee, subject to the provisions of Article VI
of this Indenture, and the Securityholders shall be entitled to conclusively
rely upon any order or decree made by any court of competent jurisdiction in
which such dissolution, winding-up, liquidation or reorganization proceedings
are pending, or a certificate of the receiver, trustee in bankruptcy,
liquidation trustee, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Securityholders, for the purposes of
ascertaining the Persons entitled to participate in such distribution, the
holders of Senior Indebtedness and other indebtedness of the Company, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article XV.

 

SECTION 15.05.  Trustee to Effectuate Subordination.

 

Each Securityholder by such Securityholder’s acceptance thereof
authorizes and directs the Trustee on such Securityholder’s behalf to take such
action as may be necessary or appropriate to effectuate the subordination
provided in this Article XV and appoints the Trustee such Securityholder’s
attorney-in-fact for any and all such purposes.

 

SECTION 15.06.  Notice by the Company.

 

The Company shall give prompt written notice to a Responsible Officer
of the Trustee at the Principal Office of the Trustee of any fact known to the
Company that would prohibit the making of any payment of moneys to or by the
Trustee in respect of the Debt Securities pursuant to the provisions of this Article XV.
Notwithstanding the provisions of this Article XV
or any other provision of this Indenture or any Additional Provisions, the
Trustee shall not be charged with knowledge of the existence of any facts that
would prohibit the making of any payment of moneys to or by the Trustee in
respect of the Debt Securities pursuant to the provisions of this Article XV,
unless and until a Responsible Officer of the Trustee at the Principal Office
of the Trustee shall have received written notice thereof from the Company or a
holder or holders of Senior Indebtedness or from any trustee therefor; and
before the receipt of any such written notice, the Trustee, subject to the
provisions of Article VI of this Indenture, shall be entitled in all
respects to assume that no such facts exist; provided, however,
that if the Trustee shall not have received the notice provided for in this Section 15.06
at least two Business Days prior to the date upon which by the terms hereof any
money may become payable for any

 

59

 

purpose (including,
without limitation, the payment of the principal of (or premium, if any) or
interest on any Debt Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purposes for which they were received,
and shall not be affected by any notice to the contrary that may be received by
it within two Business Days prior to such date.

 

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

 

SECTION 15.07.  Rights of the Trustee, Holders of Senior
Indebtedness.

 

The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article XV in respect of any Senior Indebtedness
at any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture or any Additional Provisions shall
deprive the Trustee of any of its rights as such holder.

 

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

 

Nothing in this Article XV shall apply to claims of, or payments
to, the Trustee under or pursuant to Section 6.06.

 

SECTION 15.08.  Subordination May Not Be Impaired.

 

No right of any present or future holder of any Senior Indebtedness of
the Company to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company, or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by the Company, with the terms,

 

60

 

provisions and
covenants of this Indenture, regardless of any knowledge thereof that any such
holder may have or otherwise be charged with.

 

Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness of the Company may, at any time and from
time to time, without the consent of or notice to the Trustee or the
Securityholders, without incurring responsibility to the Securityholders and
without impairing or releasing the subordination provided in this Article XV
or the obligations hereunder of the holders of the Debt Securities to the
holders of such Senior Indebtedness, do any one or more of the following: (a) change
the manner, place or terms of payment or extend the time of payment of, or
renew or alter, such Senior Indebtedness, or otherwise amend or supplement in any
manner such Senior Indebtedness or any instrument evidencing the same or any
agreement under which such Senior Indebtedness is outstanding; (b) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing such Senior Indebtedness; (c) release any Person liable
in any manner for the collection of such Senior Indebtedness; and (d) exercise
or refrain from exercising any rights against the Company, and any other
Person.

 

U.S. Bank National Association, in its capacity as Trustee, hereby
accepts the trusts in this Indenture declared and provided, upon the terms and
conditions herein above set forth.

 

61

 

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

 

	
   

  	
  The Bank Holdings

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Hal Giomi

  
	
   

  	
  Name:

  	
   

  	
  Hal
  Giomi

  
	
   

  	
  Title:

  	
   

  	
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S.
  Bank National Association, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul D. Allen

  
	
   

  	
  Name:

  	
  Paul D. Allen

  
	
   

  	
  Title:

  	
  Vice President

  
								

 

62

 

EXHIBIT A

 

FORM OF
JUNIOR SUBORDINATED DEBT SECURITY

DUE 2035

 

[FORM OF
FACE OF SECURITY]

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY
ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY
ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A “NON
U.S. PERSON” IN AN “OFFSHORE TRANSACTION” PURSUANT TO REGULATION S UNDER THE
SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR
FOR THE ACCOUNT OF SUCH AN “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH
THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY
WITH THE FOREGOING RESTRICTIONS.

 

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS
AND WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS
SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT.

 

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,

 

A-1

 

INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975
OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), (EACH A “PLAN”),
OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY
PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY
PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN, UNLESS
SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER
U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,
95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND
HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER
OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY
ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN
TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL
DELIVER TO THE COMPANY AND TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE
REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.

 

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS
HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN
EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A
PRINCIPAL AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO
LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO
BE THE HOLDER OF THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO,
THE RECEIPT OF DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

 

THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED
STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL
DEPOSIT INSURANCE CORPORATION. THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF
DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY, IS
INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES
AND IS NOT SECURED.

 

A-2

 

 Form of Junior Subordinated Debt Security
due 2035

 

of

 

The
Bank Holdings

 

The Bank Holdings, a bank
holding company incorporated in Nevada
(the “Company”), for value received promises to pay to U.S. Bank National
Association, not in its individual capacity but solely as Institutional Trustee
for The Bank Holdings Statutory Trust I,
a Connecticut statutory trust (the “Holder”), or registered assigns, the principal
sum of Fifteen Million Four Hundred Sixty Four
Thousand Dollars on December 15,
2035 and to pay interest on said principal sum from November 3, 2005, or from the most recent
interest payment date (each such date, an “Interest Payment Date”) to which interest
has been paid or duly provided for, quarterly (subject to deferral as set forth
herein) in arrears on March 15, June 15, September 15
and December 15 of each year
commencing December 15, 2005, at a
variable per annum rate equal to LIBOR (as defined in the Indenture) plus 1.42% (the “Interest Rate”) (provided, however,
that the Interest Rate for any Interest Payment Period may not exceed the
highest rate permitted by New York law, as the same may be modified by United
States law of general applicability) until the principal hereof shall have
become due and payable, and on any overdue principal and (without duplication
and to the extent that payment of such interest is enforceable under applicable
law) on any overdue installment of interest at an annual rate equal to the
Interest Rate in effect for each such Extension Period compounded quarterly.
The amount of interest payable on any Interest Payment Date shall be computed
on the basis of a 360-day year and the actual number of days elapsed in the relevant
interest period.  Notwithstanding
anything to the contrary contained herein, if any Interest Payment Date, other
than on the Maturity Date, any Redemption Date or the Special Redemption Date,
falls on a day that is not a Business Day, then any interest payable will be
paid on, and such Interest Payment Date will be moved to, the next succeeding
Business Day, and additional interest will accrue for each day that such
payment is delayed as a result thereof. 
If the Maturity Date, any Redemption Date or the Special Redemption Date
falls on a day that is not a Business Day, then the principal, premium, if any,
and/or interest payable on such date will be paid on the next succeeding
Business Day, and no additional interest will accrue in respect of such payment
made on such next succeeding Business Day. 
The interest installment so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture,
be paid to the Person in whose name this Debt Security (or one or more
Predecessor Securities, as defined in said Indenture) is registered at the
close of business on the regular record date for such interest installment,
except that interest and any Deferred Interest payable on the Maturity Date
shall be paid to the Person to whom principal is paid. Any such interest
installment not punctually paid or duly provided for shall forthwith cease to
be payable to the registered holders on such regular record date and may be
paid to the Person in whose name this Debt Security (or one or more Predecessor
Debt Securities) is registered at the close of business on a special record
date to be fixed by the Trustee for the payment of such defaulted interest,
notice whereof shall be given to the registered holders of the Debt Securities
not less than 10 days prior to such special record date, all as more fully
provided in the Indenture. The principal of and interest on this Debt Security
shall be payable at the office or agency of the Trustee (or other Paying Agent
appointed by the Company) maintained for that purpose in any coin or currency
of the United States of America that at the time of payment is legal tender for
payment of public and private debts; provided, however, that

 

A-3

 

payment of
interest may be made at the option of the Company by check mailed to the
registered holder at such address as shall appear in the Debt Security Register
or by wire transfer or immediately available funds to an account appropriately
designated by the holder hereof. Notwithstanding the foregoing, so long as the
holder of this Debt Security is the Institutional Trustee, payment of the
principal of and premium, if any, and interest on this Debt Security shall be
made in immediately available funds when due at such place and to such account
as may be designated by the Institutional Trustee. All payments in respect of
this Debt Security shall be payable in any coin or currency of the United
States of America that at the time of payment is legal tender for payment of
public and private debts.

 

Upon submission of Notice (as defined in the Indenture) and so long as
it is acting in good faith, and so long as no Event of Default pursuant to
paragraphs (c), (e) or (f) of Section 5.01 of the Indenture has
occurred and is continuing the Company shall have the right, from time to time
and without causing an Event of Default, to defer payments of interest on the
Debt Securities by extending the interest distribution period on the Debt
Securities at any time and from time to time during the term of the Debt
Securities, for up to 20 consecutive quarterly periods (each such extended
interest distribution period, an “Extension Period”), during which Extension
Period no interest shall be due and payable (except any Additional Interest
that may be due and payable). During any Extension Period, interest will
continue to accrue on the Debt Securities, and interest on such accrued
interest (such accrued interest and interest thereon referred to herein as “Deferred
Interest”) will accrue at an annual rate equal to the Interest Rate applicable
during such Extension Period, compounded quarterly from the date such Deferred
Interest would have been payable were it not for the Extension Period, to the
extent permitted by law. No Extension Period may end on a date other than an
Interest Payment Date. At the end of any such Extension Period the Company
shall pay all Deferred Interest then accrued and unpaid on the Debt Securities;
provided, however, that no Extension Period may extend beyond the
Maturity Date; and provided, further, however, during any such
Extension Period, the Company may not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Company’s capital stock or (ii) make any
payment of principal of or premium, if any, or interest on or repay, repurchase
or redeem any debt securities of the Company that rank pari passu in all
respects with or junior in interest to the Debt Securities or (iii) make
any payment under any guarantees of the Company that rank in all respects pari passu with or junior in respect to
the Capital Securities Guarantee (other than (a) repurchases, redemptions
or other acquisitions of shares of capital stock of the Company (A) in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors or consultants, (B) in connection with a dividend reinvestment
or stockholder stock purchase plan or (C) in connection with the issuance
of capital stock of the Company (or securities convertible into or exercisable
for such capital stock), as consideration in an acquisition transaction entered
into prior to the applicable Extension Period, (b) as a result of any
exchange, reclassification, combination or conversion of any class or series of
the Company’s capital stock (or any capital stock of a subsidiary of the
Company) for any class or series of the Company’s capital stock or of any class
or series of the Company’s indebtedness for any class or series of the Company’s
capital stock, (c) the purchase of fractional interests in shares of the
Company’s capital stock pursuant to the conversion or exchange provisions of
such capital stock or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any stockholder’s rights plan, or
the issuance of rights, stock or other property under any stockholder’s rights
plan, or the redemption or

 

A-4

 

repurchase of
rights pursuant thereto, or (e) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock
issuable upon exercise of such warrants, options or other rights is the same stock
as that on which the dividend is being paid or ranks pari passu
with or junior to such stock). Prior to the termination of any Extension
Period, the Company may further extend such Extension Period; provided,
that no Extension Period (including all previous and further consecutive
extensions that are part of such Extension Period) shall exceed 20 consecutive
quarterly periods, or extend beyond the Maturity Date. Upon the termination of
any Extension Period and upon the payment of all Deferred Interest, the Company
may commence a new Extension Period, subject to the foregoing requirements. The
Company must give the Trustee notice of its election to begin any Extension
Period (“Notice”) not later than the related regular record date for the
relevant Interest Payment Date.  The
Notice shall describe why the Company has elected to begin an Extension
Period.  The Notice shall acknowledge and
affirm the Company’s understanding that it is prohibited from issuing dividends
and other distributions during the Extension Period.  Upon receipt of the Notice, an Initial
Purchaser shall have the right, at its sole discretion, to disclose the name of
the Company, the fact that the Company has elected to begin an Extension Period
and other information that such Initial Purchaser, at its sole discretion,
deems relevant to the Company’s election to begin an Extension Period.  The Trustee shall give notice of the Company’s
election to begin a new Extension Period to the Securityholders.

 

The indebtedness evidenced by this Debt Security is, to the extent
provided in the Indenture, subordinate and junior in right of payment to the
prior payment in full of all Senior Indebtedness, and this Debt Security is
issued subject to the provisions of the Indenture with respect thereto. Each
holder of this Debt Security, by accepting the same, (a) agrees to and
shall be bound by such provisions, (b) authorizes and directs the Trustee
on such holder’s behalf to take such action as may be necessary or appropriate
to acknowledge or effectuate the subordination so provided and (c) appoints
the Trustee such holder’s attorney-in-fact for any and all such purposes. Each
holder hereof, by such holder’s acceptance hereof, hereby waives all notice of
the acceptance of the subordination provisions contained herein and in the
Indenture by each holder of Senior Indebtedness, whether now outstanding or
hereafter incurred, and waives reliance by each such holder upon said
provisions.

 

The Company waives diligence, presentment, demand for payment, notice
of nonpayment, notice of protest, and all other demands and notices.

 

This Debt Security shall not be entitled to any benefit under the
Indenture hereinafter referred to and shall not be valid or become obligatory
for any purpose until the certificate of authentication hereon shall have been
signed by or on behalf of the Trustee.

 

The provisions of this Debt Security are continued on the reverse side
hereof and such continued provisions shall for all purposes have the same
effect as though fully set forth at this place.

 

A-5

 

IN WITNESS WHEREOF, the Company has duly executed this certificate.

 

	
   

  	
  The Bank Holdings

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  , 2005

  	
   

  
							

 

CERTIFICATE OF
AUTHENTICATION

 

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

 

	
   

  	
  U.S. Bank National
  Association, not in its

  individual capacity but solely as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  , 2005

  	
   

  
					

 

A-6

 

[FORM OF
REVERSE OF SECURITY]

 

This Debt Security is one of a duly authorized series of Debt
Securities of the Company, all issued or to be issued pursuant to an Indenture
(the “Indenture”), dated as of November 3,
2005, duly executed and delivered between the Company and U.S. Bank
National Association, as Trustee (the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the holders of the Debt Securities
(referred to herein as the “Debt Securities”) of which this Debt Security is a
part. The summary of the terms of this Debt Security contained herein does not
purport to be complete and is qualified by reference to the Indenture.

 

Upon the occurrence and continuation of a Tax Event, an Investment
Company Event or a Capital Treatment Event (each a “Special Event”), this Debt
Security may become due and payable, in whole or in part, at any time, within
90 days following the occurrence of such Tax Event, Investment Company Event or
Capital Treatment Event (the “Special Redemption Date”), as the case may be, at
the Special Redemption Price.

 

The Company shall also have the right to redeem this Debt Security at
the option of the Company, in whole or in part, on any March 15, June 15, September 15 or December 15 on or after December 15,
2010 (a “Redemption Date”), at the Redemption Price.

 

Any redemption pursuant to the preceding paragraph will be made,
subject to the receipt by the Company of prior approval from any regulatory
authority with jurisdiction over the Company if such approval is then required
under applicable capital guidelines or policies of such regulatory authority,
upon not less than 30 days’ nor more than 60 days’ notice. If the Debt
Securities are only partially redeemed by the Company, the Debt Securities will
be redeemed pro rata or by lot or by any other method utilized by the
Trustee.

 

“Redemption Price” means 100% of the principal amount of the Debt
Securities being redeemed plus accrued and unpaid interest on such Debt
Securities to the Redemption Date.

 

“Special Redemption Price” means, with respect to the redemption of any
Debt Security following a Special Event, an amount in cash equal to 103.525% of
the principal amount of Debt Securities to be redeemed prior to December 15, 2006 and thereafter equal to
the percentage of the principal amount of the Debt Securities that is specified
below for the Special Redemption Date plus, in each case, unpaid interest
accrued thereon to the Special Redemption Date:

 

	
  Special
  Redemption During the

  12-Month Period Beginning December 15

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  103.140

  	
  %

  
	
  2007

  	
   

  	
  102.355

  	
  %

  
	
  2008

  	
   

  	
  101.570

  	
  %

  
	
  2009

  	
   

  	
  100.785

  	
  %

  
	
  2010 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

A-7

 

In the event of redemption of this Debt Security in part only, a new
Debt Security or Debt Securities for the unredeemed portion hereof will be
issued in the name of the holder hereof upon the cancellation hereof.

 

In certain cases where an Event of Default, as defined in the
Indenture, shall have occurred and be continuing, the principal of all of the
Debt Securities may be declared, and, in certain cases, shall ipso facto
become, due and payable, and upon such declaration of acceleration shall become
due and payable, in each case, in the manner, with the effect and subject to
the conditions provided in the Indenture.

 

The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Debt Securities at the time outstanding
affected thereby, as specified in the Indenture, to execute supplemental
indentures for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or of modifying in any manner the rights of the holders
of the Debt Securities; provided, however, that no such
supplemental indenture shall, among other things, without the consent of the
holders of each Debt Security then outstanding and affected thereby (i) change
the Maturity Date of any Debt Security, or reduce the principal amount thereof
or any premium thereon, or reduce the rate (or manner of calculation of the
rate) or extend the time of payment of interest thereon, or reduce (other than
as a result of the maturity or earlier redemption of any such Debt Security in
accordance with the terms of the Indenture and such Debt Security) or increase
the aggregate principal amount of Debt Securities then outstanding, or change
any of the redemption provisions, or make the principal thereof or any interest
or premium thereon payable in any coin or currency other than United States
Dollars, or impair or affect the right of any holder of Debt Securities to
institute suit for the payment thereof, or (ii) reduce the aforesaid
percentage of Debt Securities, the holders of which are required to consent to
any such supplemental indenture. The Indenture also contains provisions
permitting the holders of a majority in aggregate principal amount of the Debt
Securities at the time outstanding, on behalf of all of the holders of the Debt
Securities, to waive any past default in the performance of any of the
covenants contained in the Indenture, or established pursuant to the Indenture,
and its consequences, except (a) a default in payments due in respect of
any of the Debt Securities, (b) in respect of covenants or provisions of
the Indenture which cannot be modified or amended without the consent of the
holder of each Debt Security affected, or (c) in respect of the covenants
of the Company relating to its ownership of Common Securities of the Trust. Any
such consent or waiver by the registered holder of this Debt Security (unless
revoked as provided in the Indenture) shall be conclusive and binding upon such
holder and upon all future holders and owners of this Debt Security and of any
Debt Security issued in exchange herefor or in place hereof (whether by
registration of transfer or otherwise), irrespective of whether or not any
notation of such consent or waiver is made upon this Debt Security.

 

No reference herein to the Indenture and no provision of this Debt
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay all payments due on this
Debt Security at the time and place and at the rate and in the money herein
prescribed.

 

A-8

 

As provided in the Indenture and subject to certain limitations herein
and therein set forth, this Debt Security is transferable by the registered
holder hereof on the Debt Security Register of the Company, upon surrender of
this Debt Security for registration of transfer at the office or agency of the
Trustee in Boston, Massachusetts accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company or the Trustee duly
executed by the registered holder hereof or such holder’s attorney duly
authorized in writing, and thereupon one or more new Debt Securities of
authorized denominations and for the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
made for any such registration of transfer, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
relation thereto.

 

Prior to due presentment for registration of transfer of this Debt Security,
the Company, the Trustee, any Authenticating Agent, any Paying Agent, any
transfer agent and the Debt Security registrar may deem and treat the
registered holder hereof as the absolute owner hereof (whether or not this Debt
Security shall be overdue and notwithstanding any notice of ownership or
writing hereon) for the purpose of receiving payment of the principal of and
premium, if any, and interest on this Debt Security and for all other purposes,
and neither the Company nor the Trustee nor any Authenticating Agent nor any
Paying Agent nor any transfer agent nor any Debt Security registrar shall be
affected by any notice to the contrary.

 

No recourse shall be had for the payment of the principal of or the
interest on this Debt Security, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for the issuance hereof,
expressly waived and released.

 

The Debt Securities are issuable only in registered certificated form
without coupons. As provided in the Indenture and subject to certain
limitations herein and therein set forth, Debt Securities are exchangeable for
a like aggregate principal amount of Debt Securities of a different authorized
denomination, as requested by the holder surrendering the same.

 

All terms used in this Debt Security that are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

 

THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THE
DEBT SECURITIES, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER
THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

 

A-9Exhibit 4.1

 

 

 

PLUM CREEK
TIMBERLANDS, L.P.,

 

as Issuer

 

and

 

PLUM CREEK
TIMBER COMPANY, INC.,

 

as Guarantor

 

to

 

U.S. Bank
National Association,

 

as Trustee

 

Indenture

 

Dated as of November 14,
2005

 

 

Debt
Securities

 

 

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I
  DEFINITIONS

  	
   

  
	
  SECTION 1.1

  	
  CERTAIN TERMS DEFINED

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II
  SECURITIES

  	
   

  
	
  SECTION 2.1

  	
  FORMS GENERALLY

  	
   

  
	
  SECTION 2.2

  	
  FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  	
   

  
	
  SECTION 2.3

  	
  AMOUNT UNLIMITED; ISSUABLE IN SERIES

  	
   

  
	
  SECTION 2.4

  	
  AUTHENTICATION AND DELIVERY OF SECURITIES

  	
   

  
	
  SECTION 2.5

  	
  EXECUTION OF SECURITIES

  	
   

  
	
  SECTION 2.6

  	
  CERTIFICATE OF AUTHENTICATION

  	
   

  
	
  SECTION 2.7

  	
  DENOMINATION AND DATE OF SECURITIES; PAYMENT OF INTEREST

  	
   

  
	
  SECTION 2.8

  	
  REGISTRATION, TRANSFER AND EXCHANGE

  	
   

  
	
  SECTION 2.9

  	
  MUTILATED, DEFACED, DESTROYED, LOST AND STOLEN SECURITIES

  	
   

  
	
  SECTION 2.10

  	
  CANCELLATION OF SECURITIES; DESTRUCTION THEREOF

  	
   

  
	
  SECTION 2.11

  	
  TEMPORARY SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III COVENANTS OF THE ISSUER

  	
   

  
	
  SECTION 3.1

  	
  PAYMENT OF PRINCIPAL AND INTEREST

  	
   

  
	
  SECTION 3.2

  	
  OFFICES FOR PAYMENTS, ETC.

  	
   

  
	
  SECTION 3.3

  	
  APPOINTMENT TO FILL A VACANCY IN OFFICE OF
  TRUSTEE

  	
   

  
	
  SECTION 3.4

  	
  PAYING AGENTS

  	
   

  
	
  SECTION 3.5

  	
  COMPLIANCE CERTIFICATES

  	
   

  
	
  SECTION 3.6

  	
  EXISTENCE

  	
   

  
	
  SECTION 3.7

  	
  LUXEMBOURG PUBLICATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV SECURITYHOLDER LISTS AND
  REPORTS BY THE ISSUER AND THE TRUSTEE

  	
   

  
	
  SECTION 4.1

  	
  ISSUER TO FURNISH TRUSTEE INFORMATION AS TO
  NAMES AND ADDRESSES OF SECURITYHOLDERS

  	
   

  
	
  SECTION 4.2

  	
  REPORTS BY THE ISSUER

  	
   

  
	
  SECTION 4.3

  	
  REPORTS BY THE TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V REMEDIES OF THE TRUSTEE AND
  SECURITYHOLDERS ON EVENT OF DEFAULT

  	
   

  
	
  SECTION 5.1

  	
  EVENT OF DEFAULT DEFINED, ACCELERATION OF
  MATURITY; WAIVER OF DEFAULT

  	
   

  
	
  SECTION 5.2

  	
  COLLECTION OF INDEBTEDNESS BY TRUSTEE;
  TRUSTEE MAY PROVE DEBT

  	
   

  

 

i

 

	
  SECTION 5.3

  	
  APPLICATION OF PROCEEDS

  	
   

  
	
  SECTION 5.4

  	
  SUITS FOR ENFORCEMENT

  	
   

  
	
  SECTION 5.5

  	
  RESTORATION OF RIGHTS ON ABANDONMENT OF
  PROCEEDINGS

  	
   

  
	
  SECTION 5.6

  	
  LIMITATIONS ON SUITS BY SECURITYHOLDERS

  	
   

  
	
  SECTION 5.7

  	
  UNCONDITIONAL RIGHT OF SECURITYHOLDERS TO
  INSTITUTE CERTAIN SUITS

  	
   

  
	
  SECTION 5.8

  	
  POWERS AND REMEDIES CUMULATIVE; DELAY OR
  OMISSION NOT WAIVER OF DEFAULT

  	
   

  
	
  SECTION 5.9

  	
  CONTROL BY HOLDERS OF SECURITIES

  	
   

  
	
  SECTION 5.10

  	
  WAIVER OF PAST DEFAULTS

  	
   

  
	
  SECTION 5.11

  	
  TRUSTEE TO GIVE NOTICE OF DEFAULT, BUT MAY WITHHOLD
  IN CERTAIN CIRCUMSTANCES

  	
   

  
	
  SECTION 5.12

  	
  RIGHT OF COURT TO REQUIRE FILING OF
  UNDERTAKING TO PAY COSTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI CONCERNING THE TRUSTEE

  	
   

  
	
  SECTION 6.1

  	
  DUTIES AND RESPONSIBILITIES OF THE TRUSTEE;
  DURING DEFAULT; PRIOR TO DEFAULT

  	
   

  
	
  SECTION 6.2

  	
  CERTAIN RIGHTS OF THE TRUSTEE

  	
   

  
	
  SECTION 6.3

  	
  TRUSTEE NOT RESPONSIBLE FOR RECITALS,
  DISPOSITION OF SECURITIES OR APPLICATION OF PROCEEDS THEREOF

  	
   

  
	
  SECTION 6.4

  	
  TRUSTEE AND AGENTS MAY HOLD
  SECURITIES, GUARANTEES OR COUPONS; COLLECTIONS, ETC

  	
   

  
	
  SECTION 6.5

  	
  MONEYS HELD BY TRUSTEE

  	
   

  
	
  SECTION 6.6

  	
  COMPENSATION AND INDEMNIFICATION OF TRUSTEE
  AND ITS PRIOR CLAIM

  	
   

  
	
  SECTION 6.7

  	
  RIGHT OF TRUSTEE TO RELY ON OFFICER’S CERTIFICATE,
  ETC

  	
   

  
	
  SECTION 6.8

  	
  INDENTURES NOT CREATING POTENTIAL
  CONFLICTING INTERESTS FOR THE TRUSTEE

  	
   

  
	
  SECTION 6.9

  	
  QUALIFICATION OF TRUSTEE: CONFLICTING
  INTERESTS

  	
   

  
	
  SECTION 6.10

  	
  PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE

  	
   

  
	
  SECTION 6.11

  	
  RESIGNATION AND REMOVAL; APPOINTMENT OF
  SUCCESSOR TRUSTEE

  	
   

  
	
  SECTION 6.12

  	
  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR
  TRUSTEE

  	
   

  
	
  SECTION 6.13

  	
  MERGER, CONVERSION, CONSOLIDATION OR
  SUCCESSION TO BUSINESS OF TRUSTEE

  	
   

  
	
  SECTION 6.14

  	
  PREFERENTIAL COLLECTION OF CLAIMS AGAINST
  THE ISSUER

  	
   

  
	
  SECTION 6.15

  	
  APPOINTMENT OF AUTHENTICATING AGENT

  	
   

  

 

ii

 

	
  ARTICLE VII CONCERNING THE
  SECURITYHOLDERS

  	
   

  
	
  SECTION 7.1

  	
  EVIDENCE OF ACTION TAKEN BY SECURITYHOLDERS

  	
   

  
	
  SECTION 7.2

  	
  PROOF OF EXECUTION OF INSTRUMENTS AND OF
  HOLDING OF SECURITIES

  	
   

  
	
  SECTION 7.3

  	
  HOLDERS TO BE TREATED AS OWNERS

  	
   

  
	
  SECTION 7.4

  	
  SECURITIES OWNED BY ISSUER DEEMED NOT
  OUTSTANDING

  	
   

  
	
  SECTION 7.5

  	
  RIGHT OF REVOCATION OF ACTION TAKEN

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII SUPPLEMENTAL INDENTURES

  	
   

  
	
  SECTION 8.1

  	
  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
  SECURITYHOLDERS

  	
   

  
	
  SECTION 8.2

  	
  SUPPLEMENTAL INDENTURES WITH CONSENT OF
  SECURITYHOLDERS

  	
   

  
	
  SECTION 8.3

  	
  EFFECT OF SUPPLEMENTAL INDENTURE

  	
   

  
	
  SECTION 8.4

  	
  DOCUMENTS TO BE GIVEN TO TRUSTEE

  	
   

  
	
  SECTION 8.5

  	
  NOTATION ON SECURITIES IN RESPECT OF
  SUPPLEMENTAL INDENTURES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX CONSOLIDATION, MERGER, SALE
  OR CONVEYANCE

  	
   

  
	
  SECTION 9.1

  	
  ISSUER MAY CONSOLIDATE, ETC., ONLY ON
  CERTAIN TERMS

  	
   

  
	
  SECTION 9.2

  	
  SUCCESSOR SUBSTITUTED

  	
   

  
	
  SECTION 9.3

  	
  OPINION OF COUNSEL TO BE GIVEN TO TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X SATISFACTION AND DISCHARGE
  OF INDENTURE; UNCLAIMED MONEYS

  	
   

  
	
  SECTION 10.1

  	
  SATISFACTION AND DISCHARGE OF INDENTURE

  	
   

  
	
  SECTION 10.2

  	
  APPLICATION BY TRUSTEE OF FUNDS DEPOSITED
  FOR PAYMENT OF SECURITIES

  	
   

  
	
  SECTION 10.3

  	
  REPAYMENT OF MONEYS HELD BY PAYING AGENT

  	
   

  
	
  SECTION 10.4

  	
  RETURN OF MONEYS HELD BY TRUSTEE AND PAYING
  AGENT UNCLAIMED FOR TWO YEARS

  	
   

  
	
  SECTION 10.5

  	
  INDEMNITY FOR U.S. GOVERNMENT OF
  OBLIGATIONS

  	
   

  
	
  SECTION 10.6

  	
  EFFECT ON SUBORDINATION PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI MISCELLANEOUS PROVISIONS

  	
   

  
	
  SECTION 11.1

  	
  INCORPORATORS, STOCKHOLDERS, OFFICERS AND
  DIRECTORS OF GENERAL PARTNER OR ISSUER EXEMPT FROM INDIVIDUAL LIABILITY

  	
   

  
	
  SECTION 11.2

  	
  PROVISIONS OF INDENTURE FOR THE SOLE
  BENEFIT OF PARTIES AND HOLDERS OF SECURITIES AND COUPONS

  	
   

  
	
  SECTION 11.3

  	
  SUCCESSORS AND ASSIGNS OF ISSUER AND
  GUARANTOR BOUND BY INDENTURE

  	
   

  

 

iii

 

	
  SECTION 11.4

  	
  NOTICES AND DEMANDS ON ISSUER, TRUSTEE AND
  HOLDERS OF SECURITIES AND COUPONS

  	
   

  
	
  SECTION 11.5

  	
  OFFICER’S CERTIFICATES AND OPINIONS OF
  COUNSEL; STATEMENTS TO BE CONTAINED THEREIN

  	
   

  
	
  SECTION 11.6

  	
  PAYMENTS DUE ON SATURDAYS, SUNDAYS AND
  HOLIDAYS

  	
   

  
	
  SECTION 11.7

  	
  CONFLICT OF ANY PROVISION OF INDENTURE WITH
  TRUST INDENTURE ACT

  	
   

  
	
  SECTION 11.8

  	
  NEW YORK LAW TO GOVERN

  	
   

  
	
  SECTION 11.9

  	
  COUNTERPARTS

  	
   

  
	
  SECTION 11.10

  	
  EFFECT OF HEADINGS

  	
   

  
	
  SECTION 11.11

  	
  SECURITIES IN A FOREIGN CURRENCY

  	
   

  
	
  SECTION 11.12

  	
  JUDGMENT CURRENCY

  	
   

  
	
  SECTION 11.13

  	
  AGREEMENT TO SUBORDINATE

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII REDEMPTION OF SECURITIES
  AND SINKING FUNDS

  	
   

  
	
  SECTION 12.1

  	
  APPLICABILITY OF ARTICLE

  	
   

  
	
  SECTION 12.2

  	
  NOTICE OF REDEMPTION; PARTIAL REDEMPTIONS

  	
   

  
	
  SECTION 12.3

  	
  PAYMENT OF SECURITIES CALLED FOR REDEMPTION

  	
   

  
	
  SECTION 12.4

  	
  EXCLUSION OF CERTAIN SECURITIES FROM
  ELIGIBILITY FOR SELECTION FOR REDEMPTION

  	
   

  
	
  SECTION 12.5

  	
  MANDATORY AND OPTIONAL SINKING FUNDS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII THE GUARANTEES

  	
   

  
	
  SECTION 13.1

  	
  GUARANTEES

  	
   

  
	
  SECTION 13.2

  	
  PROCEEDINGS AGAINST THE GUARANTOR

  	
   

  
	
  SECTION 13.3

  	
  GUARANTEES FOR BENEFIT OF HOLDERS OF
  SECURITIES

  	
   

  
	
  SECTION 13.4

  	
  ADDITIONAL GUARANTORS

  	
   

  

 

iv

 

THIS
INDENTURE, dated as of November 14, 2005 by and among PLUM CREEK
TIMBERLANDS, L.P., a Delaware limited partnership (the “Issuer”), PLUM CREEK
TIMBER COMPANY, INC., a Delaware corporation (the “Guarantor”), and U.S. Bank
National Association, a national banking association, as trustee (the “Trustee”),

 

W I T N E S S E T H:

 

WHEREAS,
the Issuer has duly authorized the issue from time to time of its unsecured
debentures, notes or other evidences of indebtedness to be issued in one or
more series (the “Securities”) up to such principal amount or amounts as may
from time to time be authorized in accordance with the terms of this Indenture;

 

WHEREAS,
the Issuer has duly authorized the execution and delivery of this Indenture to
provide, among other things, for the authentication, delivery and
administration of the Securities;

 

WHEREAS,
the Guarantor has duly authorized the execution and delivery of this Indenture
and its guarantees of the Securities (the “Guarantees”) as provided herein; and

 

WHEREAS,
all things necessary to make this Indenture a valid indenture and agreement
according to its terms have been done;

 

NOW,
THEREFORE:

 

In
consideration of the premises and the purchases of the Securities by the
holders thereof, it is mutually covenanted and agreed for the equal and
proportionate benefit of the respective holders from time to time of the
Securities and of the coupons, if any, appertaining thereto as follows:

 

ARTICLE I

DEFINITIONS

 

SECTION 1.1                     CERTAIN TERMS DEFINED.  The following terms (except as otherwise expressly provided or unless
the context otherwise clearly requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings
specified in this Section.  All other
terms used in this Indenture that are defined in the Trust Indenture Act of
1939, as amended (the “Trust Indenture Act”), or the definitions of which in
the Securities Act of 1933, as amended (the “Securities Act”), are referred to
in the Trust Indenture Act, including terms defined therein by reference to the
Securities Act (except as herein otherwise expressly provided or unless the
context otherwise requires), shall have the meaning assigned to such terms in
the Trust Indenture Act and in the Securities Act as in effect from time to
time.  All accounting terms used herein
and not expressly defined shall have the meanings assigned to such terms in
accordance with generally accepted accounting principles, and the term “generally
accepted accounting principles” means such accounting principles as are
generally accepted at the time of any computation unless a different time shall
be specified with respect to such series of Securities as provided for in Section 2.3.  The words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to
any

 

1

 

particular Article, Section or
other subdivision.  The terms defined in
this Article have the meanings assigned to them in this Article and
include the plural as well as the singular.

 

“Affiliate”
has the same meaning as given to that term in Rule 405 of the Securities
Act or any successor provision.

 

“Authenticating
Agent” shall have the meaning set forth in Section 6.15.

 

“Authorized
Newspaper” means a newspaper (which, in the case of The City of New York, will,
if practicable, be The Wall Street Journal
(Eastern Edition), in the case of the United Kingdom of Great Britain and
Northern Ireland (the “United Kingdom”), will, if practicable, be The Financial Times (London Edition) and,
in the case of the Grand Duchy of Luxembourg (“Luxembourg”), will, if
practicable, be the Luxemburger Wort)
published in an official or common language of the country of publication
customarily published at least once a day for at least five days in each
calendar week and of general circulation in The City of New York, the United
Kingdom or Luxembourg, as applicable.  If
it shall be impractical in the opinion of the Trustee to make any publication
of any notice required hereby in an Authorized Newspaper, any publication or
other notice in lieu thereof which is made or given with the approval of the
Trustee shall constitute a sufficient publication of such notice.

 

“Board
of Directors” means the board of directors of the Guarantor, the sole member of
the General Partner or, if the Issuer shall be succeeded by a corporation
pursuant to the provisions of this Indenture, the board of directors of the
Issuer’s corporate successor or any committee of such applicable board duly
authorized to act generally or in any particular respect hereunder.

 

“Board
Resolution” means a copy of a resolution certified by the secretary or an
assistant secretary of the Guarantor or, if the Issuer shall be succeeded by a
corporation pursuant to the provisions of this Indenture, of the Issuer’s
corporate successor to have been duly adopted by the Board of Directors and to
be in full force and effect on the date of such certification, and delivered to
the Trustee.

 

“Business
Day” means, with respect to any Security, a day that is not a day on which
banking institutions in the city (or in any of the cities, if more than one) in
which amounts are payable, as specified in the form of such Security, are
authorized or required by any applicable law or regulation to be closed.

 

“Capital
Stock” means, with respect to any corporation, any and all shares, interests,
rights to purchase (other than convertible or exchangeable indebtedness that is
not itself otherwise capital stock), warrants, options, participations or other
equivalents of or interests (however designated) in stock issued by that
corporation.

 

“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 and
delivery 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 on such date.

 

“Corporate
Trust Office” means the principal office of the Trustee at which at any time
its corporate trust business shall be administered, which office at the date
hereof is located

 

2

 

at 100 Wall Street, 16th
Floor, New York, New York 10004, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Issuer, or the
principal corporate trust office of any successor Trustee (or such other
address as such successor Trustee may designate from time to time by notice to
the Holders and the Issuer).

 

“Coupon”
means any interest coupon appertaining to an Unregistered Security.

 

“Covenant
Defeasance” shall have the meaning set forth in Section 10.1(C).

 

“Debt”
means, with respect to any Person, any indebtedness of such Person, whether or
not contingent, in respect of (i) borrowed money or evidenced by bonds,
notes, debentures or similar instruments, (ii) indebtedness secured by any
Lien on any property or asset owned by such Person, but only to the extent of
the lesser of (x) the amount of indebtedness so secured and (y) the fair market
value (determined in good faith by the board of directors of such Person or, in
the case of the Issuer or a Subsidiary, by the Board of Directors) of the property
subject to such Lien, (iii) reimbursement obligations, contingent or
otherwise, in connection with any letters of credit actually issued or amounts
representing the balance deferred and unpaid of the purchase price of any
property except any such balance that constitutes an accrued expense or trade
payable, or (iv) any lease of property by such Person as lessee which is
required to be reflected on such Person’s balance sheet as a capitalized lease
in accordance with generally accepted accounting principals, and also includes,
to the extent not otherwise included, any obligation of such Person to be
liable for, or to pay, as obligor, guarantor or otherwise (other than for
purposes of collection in the ordinary course of business), Debt of the types
referred to above of another Person (it being understood that Debt shall be
deemed to be incurred by such Person whenever such Person shall create, assume,
guarantee or otherwise become liable in respect thereof).

 

“Depositary”
means, with respect to the Securities of any series issuable or issued in the
form of one or more Registered Global Securities, the Person designated as
Depositary by the Issuer pursuant to Section 2.3 until a successor
Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Depositary” shall mean or include each Person who is
then a Depositary hereunder, and if at any time there is more than one such
Person, “Depositary” as used with respect to the Securities of any such series
shall mean the Depositary with respect to the Registered Global Securities of
that series.

 

“Dollar”
or “$” means the coin or currency of the United States of America as at the
time of payment is legal tender for the payment of public and private debts.

 

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

 

“Event
of Default” means any event or condition specified as such in Section 5.1.

 

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

 

3

 

“Fair
Value” when used with respect to any Voting Equity Interests of the Issuer
means the fair value as determined in good faith by the Board of Directors of
the Issuer.

 

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

 

“General
Partner” means Plum Creek Timber I, L.L.C., a Delaware limited liability
company and wholly owned subsidiary of the Guarantor, until a successor shall
have become such pursuant to the applicable provisions of this Indenture, and
thereafter “General Partner” shall mean such successor corporation.

 

“Guarantees”
means each Guarantee executed pursuant to the provisions of this Indenture.

 

“Guarantor”
means Plum Creek Timber Company, Inc., a Delaware corporation until a
successor shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Guarantor” shall mean such successor Person.

 

“Holder,”
“Holder of Securities,” “Securityholder” or any other similar terms mean (a) in
the case of any Registered Security, the person in whose name such Security is
registered in the security register kept by the Issuer for that purpose in
accordance with the terms hereof, and (b) in the case of any Unregistered
Security, the bearer of such Security, or any Coupon appertaining thereto, as
the case may be.

 

“Indenture”
means this instrument as originally executed and delivered or, if amended or
supplemented as herein provided, as so amended or supplemented or both, and
shall include the forms and terms of particular series of Securities
established as contemplated hereunder, provided,
that, if at any time more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean, with respect to one or more series of
Securities for which such person is trustee, this instrument as originally
executed and delivered or, if amended or supplemented as herein provided, as so
amended or supplemented or both, and shall include the forms and terms of those
particular series of Securities for which such Person is Trustee established as
contemplated hereunder, exclusive, however, of any provisions or terms which
relate solely to other series of Securities for which such person is not
Trustee, regardless of when such terms or provisions were adopted.

 

“IRS”
means the Internal Revenue Service of the United States Department of the
Treasury, or any successor entity.

 

“Issuer”
means (except as otherwise provided in Article IX) Plum Creek Timberlands,
L.P., a Delaware limited partnership, and, subject to Article IX, its
successors and assigns.

 

“Issuer
Order” means a written statement, request or order signed in the name of the
Issuer by the chairman of the Board of Directors, or the president, any vice
president or the treasurer of the General Partner or Guarantor, as sole member
of the General Partner, provided that if the Issuer shall be succeeded by a
corporation pursuant to the provisions of this Indenture,

 

4

 

“Issuer Order” shall mean a
written statement, request, or order of the Issuer signed in its name by the
chairman of the Board of Directors, the president, any vice president or the
treasurer of the Issuer.

 

“Judgment
Currency” has the meaning set forth in Section 11.12.

 

“Lien”
means any mortgage, deed of trust, lien, charge, pledge, security interest,
security agreement or other encumbrance of any kind.

 

“Non-U.S.
Person” means any person that is not a “U.S. person” as such term is defined in
Rule 902 of the Securities Act.

 

“Officer’s
Certificate” means a certificate signed by the chairman of the Board of
Directors, or the president, any vice president or the treasurer of the General
Partner or Guarantor, as sole member of the General Partner and delivered to
the Trustee, provided that if the Issuer shall be succeeded by a corporation
pursuant to the provisions of this Indenture, “Officer’s Certificate” shall
mean a certificate signed by the chairman of the board of directors, the
president or any vice president or treasurer of such successor corporation, and
delivered to the Trustee.  Each such
certificate shall comply with Section 314 of the Trust Indenture Act and
include the statements provided for in Section 11.5.

 

“Opinion
of Counsel” means an opinion in writing signed by legal counsel who may be an
employee of the Issuer or the General Partner or other counsel satisfactory to
the Trustee.  Each such opinion shall
comply with Section 314 of the Trust Indenture Act and include the
statements provided for in Section 11.5.

 

“Original
Issue Date” of any Security (or portion thereof) means the earlier of (a) the
date of such Security or (b) the date of any Security (or portion thereof)
for which such Security was issued (directly or indirectly) on registration of
transfer, exchange or substitution.

 

“Original
Issue Discount Security” means any Security that provides for an amount less
than the principal amount thereof to be due and payable upon a declaration of
acceleration of the maturity thereof pursuant to Section 5.1.

 

“Outstanding”
(except as otherwise provided in Section 7.4), when used with reference to
Securities, means, subject to the provisions of Section 7.4, as of any
particular time, all Securities authenticated and delivered by the Trustee
under this Indenture, except:

 

(1)                                  Securities theretofore cancelled by the Trustee
or delivered to the Trustee for cancellation;

 

(2)                                  Securities, or portions thereof, for the
payment or redemption of which moneys or U.S. Government Obligations (as
provided for in Section 10.1) in the necessary amount shall have been
deposited in trust with the Trustee or with any paying agent (other than the
Issuer) or shall have been set aside, segregated and held in trust by the
Issuer for the Holders of such Securities (if the Issuer shall act as its own
paying agent), provided, that if
such Securities, or portions thereof, are to be redeemed prior to the maturity
thereof, notice of such redemption shall have been given as herein provided, or
provisions satisfactory to the Trustee shall have been made for giving such
notice; and

 

5

 

(3)                                  Securities which shall have been paid or in
substitution for which other Securities shall have been authenticated and
delivered pursuant to the terms of Section 2.9 (except with respect to any
such Security as to which proof satisfactory to the Trustee is presented that
such Security is held by a person in whose hands such Security is a legal,
valid and binding obligation of the Issuer).

 

In
determining whether the Holders of the requisite principal amount of Outstanding
Securities of any or all series have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of an
Original Issue Discount Security that shall be deemed to be Outstanding for
such purposes shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon a declaration of
acceleration of the maturity thereof pursuant to Section 5.1.

 

“Periodic
Offering” means an offering of Securities of a series from time to time, the
specific terms of which Securities, including, without limitation, the rate or
rates of interest, if any, thereon, the stated maturity or maturities thereof
and the redemption provisions, if any, with respect thereto, are to be determined
by the Issuer or its agents upon the issuance of such Securities.

 

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

 

“principal”
whenever used with reference to the Securities or any Security or any portion
thereof, shall be deemed to include “and premium, if any,” provided, however, that such inclusion of
premium, if any, shall under no circumstances result in the double counting of
such premium for the purpose of any calculation required hereunder.

 

“record
date” shall have the meaning set forth in Section 2.7.

 

“Registered
Global Security” means a Security evidencing all or a part of a series of
Registered Securities, issued to the Depositary for such series in accordance
with Section 2.4, and bearing the legend prescribed in Section 2.4
and any other legend required by the Depositary for such series.

 

“Registered
Security” means any Security registered on the Security register of the Issuer.

 

“Required
Currency” shall have the meaning set forth in Section 11.12.

 

“Responsible
Officer” when used with respect to the Trustee means the chairman of the board
of directors, any vice chairman of the board of directors, the chairman of the
trust committee, the chairman of the executive committee, any vice chairman of
the executive committee, the president, any vice president (whether or not
designated by numbers or words added before or after the title “Vice President”),
the cashier, the secretary, the treasurer, any trust officer, any assistant
trust officer, any assistant vice president, any assistant cashier, any
assistant secretary, any assistant treasurer, or any other officer or assistant
officer of the Trustee customarily performing functions similar to those
performed by the persons who at the time shall

 

6

 

be such officers,
respectively, or to whom any corporate trust matter is referred because of his
or her knowledge of and familiarity with the particular subject.

 

“Security”
or “Securities” (except as otherwise provided in Section 7.4) has the
meaning stated in the first recital of this Indenture, or, as the case may be,
Securities that have been authenticated and delivered under this Indenture.

 

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

 

“Senior
Indebtedness”, when used with respect to the Subordinated Securities of any
series, shall have the meaning established pursuant to Subsection 2.3(9) 
with respect to the Subordinated Securities of such series.

 

“Senior
Securities” means Securities other than Subordinated Securities.

 

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

 

“Subordinated
Securities” means Securities that by the terms established pursuant to Subsection 2.3(9) are
subordinated in right of payment to Senior Indebtedness of the Issuer.

 

“Subordination
Provisions”, when used with respect to the Subordinated  Securities of any series, shall have the
meaning established pursuant to Subsection 2.3(9)  with respect to
the Subordinated Securities of such series.

 

“Subsidiary,”
with respect to any Person, means (i) a corporation a majority of whose
Voting Equity Interests is at the time, directly or indirectly, owned by such
Person, by such Person and one or more Subsidiaries of such Person or by one or
more Subsidiaries of such Person, (ii) any other Person (other than a
corporation) in which such Person, one or more Subsidiaries of such Person, or
such Person and one or more Subsidiaries of such Person, directly or
indirectly, at the date of determination thereof has at least majority
ownership interest, or (iii) a partnership in which such Person or a
Subsidiary of such Person is, at the time, a general partner.

 

“Trustee”
means the Person identified as “Trustee” in the first paragraph hereof and,
subject to the provisions of Article VI, shall also include any successor
trustee.  “Trustee” shall also mean or
include each Person who is then a trustee hereunder, and if at any time there
is more than one such Person, “Trustee” as used with respect to the Securities
of any series shall mean the trustee with respect to the Securities of such
series.

 

“Unregistered
Security” means any Security other than a Registered Security.

 

“U.S.
Government Obligations” shall have the meaning set forth in Section 10.1(A).

 

“Voting
Equity Interests” means Equity Interests which at the time are entitled to vote
in the election of, as applicable, directors, members or partners generally; provided, that, for

 

7

 

the purposes hereof, Equity
Interests that carry only the right to vote conditionally on the happening of
an event shall not be considered Voting Equity Interests whether or not such
event shall have happened.

 

“Yield
to Maturity” means the yield to maturity on a series of securities, calculated
at the time of issuance of such series, or, if applicable, at the most recent
redetermination of interest on such series, and calculated in accordance with
accepted financial practice.

 

ARTICLE II

SECURITIES

 

SECTION 2.1                     FORMS GENERALLY.  The Securities and Guarantees of each series and the Coupons, if any,
to be attached thereto shall be substantially in such form (not inconsistent
with this Indenture) as shall be established by or pursuant to one or more
Board Resolutions (as set forth in a Board Resolution or, to the extent
established pursuant to but not set forth in a Board Resolution, an Officer’s
Certificate detailing such establishment) or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture and may have imprinted or otherwise reproduced thereon such legend or
legends or endorsements, not inconsistent with the provisions of this
Indenture, as may be required to comply with any law or with any rules or
regulations pursuant thereto, or with any rules of any securities exchange
or to conform to general usage, all as may be determined by the officers
executing such Securities, Guarantees and Coupons, if any, as evidenced by
their execution of such Securities, Guarantees and Coupons.

 

The
definitive Securities and Coupons, if any, (and Guarantees) shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities and
Coupons, if any, (and Guarantees) as evidenced by their execution of such
Securities and Coupons, if any.

 

SECTION 2.2                     FORM OF TRUSTEE’S
CERTIFICATE OF AUTHENTICATION.  The Trustee’s certificate of authentication
on all Securities shall be in substantially the following form:

 

“This
is one of the Securities referred to in the within-mentioned Indenture.

 

	
   

  	
  U.S. Bank National
  Association,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory”

  

 

If
at any time there shall be an Authenticating Agent appointed with respect to
any series of Securities, then the Trustee’s Certificate of Authentication to
be borne by the Securities of each such series shall be substantially as
follows:

 

8

 

“This
is one of the Securities referred to in the within-mentioned Indenture.

 

	
   

  	
  U.S. Bank National Association,

  
	
   

  	
  as Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory”

  

 

SECTION 2.3                     AMOUNT UNLIMITED; ISSUABLE
IN SERIES.  The aggregate principal amount of Securities
which may be authenticated and delivered under this Indenture is unlimited.

 

The
Securities may be issued in one or more series. 
There shall be established in or pursuant to one or more Board
Resolutions (and to the extent established pursuant to but not set forth in a
Board Resolution, in an Officer’s Certificate detailing such establishment) or
established in one or more indentures supplemental hereto, prior to the initial
issuance of Securities of any series,

 

(1)                                  the designation of the Securities of the
series, which shall distinguish the Securities of the series from the
Securities of all other series, and which may be part of a series of Securities
previously issued;

 

(2)                                  any limit upon the aggregate principal amount
of the Securities of the series that may be authenticated and delivered under
this Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 2.8, 2.9, 2.11, 8.5 or 12.3);

 

(3)                                  if other than Dollars, the Foreign Currency
or Foreign Currencies in which the Securities of the series are denominated;

 

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

 

(5)                                  the rate or rates at which the Securities of
the series shall bear interest, if any, the date or dates from which such
interest shall accrue, on which such interest shall be payable, the terms and
conditions of any deferral of interest and the additional interest, if any,
thereon, the right, if any, of the Issuer to extend the interest payment
periods and the duration of the extensions and (in the case of Registered
Securities) the date or dates on which a record shall be taken for the
determination of Holders to whom interest is payable and/or the method by which
such rate or rates or date or dates shall be determined;

 

(6)                                  the place or places where and the manner in
which, the principal of and any interest on Securities of the series shall be
payable, if other than as provided in Section 3.2;

 

9

 

(7)                                  the right, if any, of the Issuer to redeem
Securities, in whole or in part, at its option and the period or periods within
which, or the date or dates on which, the price or prices at which and any
terms and conditions upon which Securities of the series may be so redeemed,
pursuant to any sinking fund or otherwise;

 

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

 

(9)                                  if the Securities of such series are
Subordinated Securities, the terms pursuant to which the Securities of such
series will be made subordinate in right of payment to Senior Indebtedness and
the definition of such Senior Indebtedness with respect to such series (in the
absence of an express statement to the effect that the Securities of such
series are subordinate in right of payment to all such Senior Indebtedness, the
Securities of such series shall not be subordinate to Senior Indebtedness and
shall not constitute Subordinated Securities); and, in the event that the
Securities of such series are Subordinated Securities, such Board Resolution,
Officer’s Certificate or supplemental indenture, as the case may be, establishing
the terms of such series shall expressly state which articles, sections or
other provisions thereof constitute the “Subordination Provisions” with respect
to the Securities of such series;

 

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

 

(11)                            the percentage of the principal amount at
which the Securities will be issued and if other than the principal amount
thereof, the portion of the principal amount of Securities of the series which
shall be payable upon declaration of acceleration of the maturity thereof and
the terms and conditions of any acceleration;

 

(12)                            if other than the coin, currency or
currencies in which the Securities of the series are denominated, the coin,
currency or currencies in which payment of the principal of or interest on the
Securities of such series shall be payable, including composite currencies or
currency units;

 

(13)                            if the principal of or interest on the
Securities of the series are to be payable, at the election of the Issuer or a
Holder thereof, in a coin or currency other than that in which the Securities
are denominated, the period or periods within which, and the terms and
conditions upon which, such election may be made;

 

(14)                            if the amount of payments of principal of and
interest on the Securities of the series may be determined with reference to an
index or formula based on a coin, currency, composite currency or currency unit
other than that in which the Securities of the series are denominated, the
manner in which such amounts shall be determined;

 

10

 

(15)                            whether the Securities of the series will be
issuable as Registered Securities (and if so, whether such Securities will be
issuable as Registered Global Securities) or Unregistered Securities (with or
without Coupons), or any combination of the foregoing, any restrictions
applicable to the offer, sale or delivery of Unregistered Securities or the
payment of interest thereon and, if other than as provided in Section 2.8,
the terms upon which Unregistered Securities of any series may be exchanged for
Registered Securities of such series and vice versa;

 

(16)                            whether and under what circumstances the
Issuer will pay additional amounts on the Securities of the series held by a
person who is not a U.S. person in respect of any tax, assessment or
governmental charge withheld or deducted and, if so, whether the Issuer will
have the option to redeem the Securities of the series rather than pay such
additional amounts;

 

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

 

(18)                            any trustees, depositaries, authenticating or
paying agents, transfer agents or registrars of any other agents with respect
to the Securities of such series;

 

(19)                            any deletion from modification of or addition
to the Events of Default or covenants with respect to the Securities of such
series;

 

(20)                            if the Securities of the series are to be
convertible into or exchangeable for any other security or property of the
Issuer, including, without limitation, securities of another Person held by the
Issuer or its Affiliates and, if so, the terms thereof; and

 

(21)                            any other terms of the series.

 

All
Securities of any one series, the Guarantees appertaining to any Securities of
such series and Coupons, if any, appertaining thereto shall be substantially
identical, except in the case of Registered Securities as to denomination and
except as may otherwise be provided by or pursuant to the Board Resolution or
Officer’s Certificate referred to above or as set forth in any indenture
supplemental hereto.  All Securities of
any one series need not be issued at the same time and may be issued from time
to time, consistent with the terms of this Indenture, if so provided by or
pursuant to such Board Resolution, such Officer’s Certificate or in any
indenture supplemental hereto.

 

SECTION 2.4                     AUTHENTICATION AND DELIVERY
OF SECURITIES.  The Issuer may deliver Securities of any
series having attached thereto appropriate Coupons and Guarantees, if any,
executed by the Issuer to the Trustee for authentication together with the
applicable documents referred to below in this Section 2.4, and the
Trustee shall thereupon authenticate and deliver such Securities, Guarantees
and Coupons, if any, to or upon the order of the Issuer (contained in the
Issuer Order referred to below in this Section) or pursuant to such procedures
acceptable to the Trustee and to such recipients as may be specified from time
to time by an Issuer Order.  The maturity
date, original issue date, interest rate and any other terms of the Securities
and Guarantees of such series and Coupons, if any, appertaining thereto shall
be

 

11

 

determined by or pursuant to
such Issuer Order and procedures.  If
provided for in such procedures, such Issuer Order may authorize authentication
and delivery pursuant to oral or electronic instructions from the Issuer or its
duly authorized agent or agents, which instructions, if oral, shall be promptly
confirmed in writing.  In authenticating
such Securities and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to
receive (in the case of subparagraphs (2), (3) and (4) below only at
or before the time of the first request of the Issuer to the Trustee to
authenticate Securities of such series) and (subject to Section 6.1) shall
be fully protected in relying upon, the following enumerated documents unless
and until such documents have been superseded or revoked:

 

(1)                                  an Issuer Order requesting such
authentication and setting forth delivery instructions if the Securities,
Guarantees and Coupons, if any, are not to be delivered to the Issuer, provided that, with respect to Securities
of a series subject to a Periodic Offering, (a) such Issuer Order may be
delivered by the Issuer to the Trustee prior to the delivery to the Trustee of
such Securities for authentication and delivery, (b) the Trustee shall
authenticate and deliver Securities of such series for original issue from time
to time, in an aggregate principal amount not exceeding the aggregate principal
amount established for such series, pursuant to an Issuer Order or pursuant to
procedures acceptable to the Trustee as may be specified from time to time by
an Issuer Order, (c) the maturity date or dates, original issue date or
dates, interest rate or rates and any other terms of Securities of such series
shall be determined by an Issuer Order or pursuant to such procedures and (d) if
provided for in such procedures, such Issuer Order may authorize authentication
and delivery pursuant to oral or electronic instructions from the Issuer or its
duly authorized agent or agents, which instructions, if oral, shall be promptly
confirmed in writing;

 

(2)                                  any Board Resolution, Officer’s Certificate
and/or executed supplemental indenture referred to in Section 2.1 and 2.3 by
or pursuant to which the forms and terms of the Securities, Guarantees and
Coupons, if any, were established;

 

(3)                                  an Officer’s Certificate setting forth the
form or forms and terms of the Securities, Guarantees and Coupons, if any,
stating that the form or forms and terms of the Securities, Guarantees and
Coupons, if any, have been established pursuant to Sections 2.1 and 2.3 and
comply with this Indenture, and covering such other matters as the Trustee may
reasonably request; and

 

(4)                                  At the option of the Issuer, either one or
more Opinions of Counsel, or a letter addressed to the Trustee permitting it to
rely on one or more Opinions of Counsel, substantially to the effect that:

 

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

 

(b)                                 in the case of an underwritten offering, the
terms of the Securities have been duly authorized and established in conformity
with the provisions of this Indenture, and, in the case of an offering that is
not underwritten, certain terms of the Securities have been established pursuant
to a Board Resolution, an

 

12

 

Officer’s
Certificate or a supplemental indenture in accordance with this Indenture, and
when such other terms as are to be established pursuant to procedures set forth
in an Issuer Order shall have been established, all such terms will have been
duly authorized by the Issuer and will have been established in conformity with
the provisions of this Indenture; and

 

(c)                                  such Securities, Guarantees and Coupons, if
any, when executed by the Issuer and the Guarantor, as applicable, and
authenticated by the Trustee in accordance with the provisions of this Indenture
and delivered to and duly paid for by the purchasers thereof, and subject to
any conditions specified in such Opinion of Counsel, will have been duly issued
under this Indenture, will be entitled to the benefits of this Indenture, and
will be valid and binding obligations of the Issuer, enforceable in accordance
with their respective terms except as the enforceability thereof may be limited
by (i) bankruptcy, insolvency, reorganization, liquidation, moratorium,
fraudulent transfer or similar laws affecting creditors’ rights generally, (ii) rights
of acceleration, if any, and (iii) the availability of equitable remedies
may be limited by equitable principles of general applicability and such
counsel need express no opinion with regard to the enforceability of Section 6.6
or of a judgment denominated in a currency other than Dollars.

 

In
rendering such opinions, any counsel may qualify any opinions as to
enforceability by stating that such enforceability may be limited by
bankruptcy, insolvency, reorganization, liquidation, moratorium, fraudulent
transfer and other similar laws affecting the rights and remedies of creditors
and is subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).  Such counsel may rely upon opinions of other
counsel (copies of which shall be delivered to the Trustee) reasonably
satisfactory to the Trustee, in which case the opinion shall state that such
counsel believes he and the Trustee are entitled so to rely.  Such counsel may also state that, insofar as
such opinion involves factual matters, he has relied, to the extent he deems
proper, upon certificates of officers of the Issuer and its subsidiaries and
certificates of public officials.

 

The
Trustee shall have the right to decline to authenticate and deliver any
Securities under this section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken by the Issuer or if the
Trustee in good faith by its board of directors or board of trustees, executive
committee or a trust committee of directors or trustees  shall determine that such action would expose
the Trustee to personal liability to existing Holders or would affect the Trustee’s
own rights, duties or immunities under the Securities, this Indenture or
otherwise.

 

If
the Issuer shall establish pursuant to Section 2.3 that the Securities of
a series are to be issued in the form of one or more Registered Global
Securities, then the Issuer shall execute and the Trustee shall, in accordance
with this Section and the Issuer Order with respect to such series,
authenticate and deliver one or more Registered Global Securities that (i) shall
represent and shall be denominated in an amount equal to the aggregate
principal amount of all of the Securities of such series issued and not yet
cancelled, (ii) shall be registered in the name of the Depositary for such
Registered Global Security or Securities or the nominee of such Depositary, (iii) shall
be delivered by the Trustee to such Depositary or delivered or held

 

13

 

pursuant to such Depositary’s
instructions and (iv) shall bear a legend substantially to the following
effect:  “Unless and until it is
exchanged in whole or in part for Securities in definitive registered form,
this Security may not be transferred except as a whole by the Depositary to the
nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.”

 

Each
Depositary designated pursuant to Section 2.3 must, at the time of its
designation and at all times while it serves as Depositary, be a clearing
agency registered under the Exchange Act and any other applicable statute or
regulation.

 

SECTION 2.5                     EXECUTION OF SECURITIES.  The Securities and each Coupon appertaining thereto, if any, shall be
executed on behalf of the Issuer by the chairman of the Board of Directors, or
the president or any vice president of the General Partner or Guarantor, as
sole member of the General Partner.  The
Guarantee shall be executed on behalf of the Guarantor by the chairman of the
Board of Directors or the president or any vice president of the Guarantor and
attested to by its treasurer, any assistant treasurer, its secretary or any
assistant secretary.  The signature of
any of these officers on the Securities and each Coupon appertaining thereto,
if any, or Guarantee may be manual or facsimile signatures of the present or
any future such authorized officer and may be imprinted or otherwise reproduced
on the Securities or the Guarantees.

 

The
Guarantees, Securities, or Coupons, if any, bearing the manual or facsimile
signatures of individuals who were at any time the proper officers of the
Issuer’s General Partner, the Guarantor or any successor Person of the Issuer,
as applicable shall bind the Issuer or the Guarantor, notwithstanding that such
individuals or any of them have ceased to hold such officer prior to the
authentication and delivery of such Securities, Coupons or Guarantees or did
not hold such  offices at the date of
such Securities, Coupons or Guarantees.

 

SECTION 2.6                     CERTIFICATE OF
AUTHENTICATION.  Only such Securities as shall bear thereon a
certificate of authentication substantially in the form hereinbefore recited,
executed by the Trustee by the manual signature of one of its authorized
officers, shall be entitled to the benefits of this Indenture or be valid or obligatory
for any purpose.  No Coupon or Guarantee
shall be entitled to the benefits of this Indenture or shall be valid and
obligatory for any purpose until the certificate of authentication on the
Security to which such Coupon or Guarantee appertains shall have been duly
executed by the Trustee.  The execution
of such certificate by the Trustee upon any Security executed by the Issuer
shall be conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the Holder is entitled to the
benefits of this Indenture.

 

SECTION 2.7                     DENOMINATION AND DATE OF
SECURITIES; PAYMENT OF INTEREST.  The Securities of each series shall be
issuable as Registered Securities or Unregistered Securities in denominations
established as contemplated by Section 2.3 or, with respect to the
Registered Securities of any series, if not so established, in denominations of
$1,000 and any integral multiple thereof. 
If denominations of Unregistered Securities of any series are not so
established, such Securities shall be issuable in denominations of $1,000 and
$5,000.  The Securities of each series
shall be numbered, lettered or otherwise distinguished in such manner or in
accordance with such plan as the officers of the Issuer

 

14

 

executing the same may
determine with the approval of the Trustee, as evidenced by the execution and
authentication thereof.

 

Each
Registered Security and Guarantee shall be dated the date of its
authentication.  Each Unregistered
Security shall be dated as provided in the Board Resolution referred to in Section 2.3.  The Securities of each series shall bear
interest, if any, from the date, and such interest shall be payable on the
dates, established as contemplated by Section 2.3.

 

The
person in whose name any Registered Security of any series is registered at the
close of business on any record date applicable to a particular series with
respect to any interest payment date for such series shall be entitled to receive
the interest, if any, payable on such interest payment date notwithstanding any
transfer or exchange of such Registered Security subsequent to the record date
and prior to such interest payment date, except if and to the extent the Issuer
shall default in the payment of the interest due on such interest payment date
for such series, in which case such defaulted interest shall be paid to the
persons in whose names Outstanding Registered Securities for such series are
registered at the close of business on a subsequent record date (which shall be
not less than five Business Days prior to the date of payment of such defaulted
interest) established by notice given by mail by or on behalf of the Issuer to
the Holders of Registered Securities not less than 15 days preceding such
subsequent record date.  The term “record
date” as used with respect to any interest payment date (except a date for
payment of defaulted interest) for the Securities of any series shall mean the
date specified as such in the terms of the Registered Securities of such series
established as contemplated by Section 2.3, or, if no such date is so
established, if such interest payment date is the first day of a calendar
month, the fifteenth day of the preceding calendar month or, if such interest
payment date is the fifteenth day of a calendar month, the first day of such
calendar month, whether or not such record date is a Business Day.

 

SECTION 2.8                     REGISTRATION, TRANSFER AND
EXCHANGE.  The Issuer will keep at each office or agency
to be maintained for the purpose as provided in Section 3.2 for each
series of Securities a register or registers in which, subject to such
reasonable regulations as the Issuer may prescribe, it will provide for the
registration of Registered Securities of such series and the registration of
transfer of Registered Securities of such series.  Such register shall be in written form in the
English language or in any other form capable of being converted into such form
within a reasonable time.  At all
reasonable times such register or registers shall be open for inspection by the
Trustee.

 

Upon
due presentation for registration of transfer of any Registered Security of any
series at any such office or agency to be maintained for the purpose as
provided in Section 3.2, the Issuer shall execute and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new
Registered Security or Registered Securities of the same series, maturity date,
interest rate and original issue date in authorized denominations for a like
aggregate principal amount.

 

Unregistered
Securities (except for any temporary global Unregistered Securities) and
Coupons (except for Coupons attached to any temporary global Unregistered
Securities) shall be transferable by delivery.

 

15

 

At
the option of the Holder thereof, Registered Securities of any series (other
than a Registered Global Security, except as set forth below) may be exchanged
for a Registered Security or Registered Securities of such series having
authorized denominations and an equal aggregate principal amount, upon
surrender of such Registered Securities to be exchanged at the agency of the
Issuer that shall be maintained for such purpose in accordance with Section 3.2
and upon payment, if the Issuer shall so require, of the charges hereinafter
provided.  If the Securities of any
series are issued in both registered and unregistered form, at the option of
the Holder thereof, except as otherwise specified pursuant to Section 2.3,
Unregistered Securities of any series may be exchanged for Registered
Securities of such series having authorized denominations and an equal
aggregate principal amount, upon surrender of such Unregistered Securities to
be exchanged at the agency of the Issuer that shall be maintained for such
purpose in accordance with Section 3.2, with, in the case of Unregistered
Securities that have Coupons attached, all unmatured Coupons and all matured
Coupons in default thereto appertaining, and upon payment, if the Issuer shall
so require, of the charges hereinafter provided.  At the option of the Holder thereof, if
Unregistered Securities of any series, maturity date, interest rate and
original issue date are issued in more than one authorized denomination, except
as otherwise specified pursuant to Section 2.3, such Unregistered
Securities may be exchanged for Unregistered Securities of such series having
authorized denominations and an equal aggregate principal amount, upon
surrender of such Unregistered Securities to be exchanged at the agency of the
Issuer that shall be maintained for such purpose in accordance with Section 3.2
or as specified pursuant to Section 2.3, with, in the case of Unregistered
Securities that have Coupons attached, all unmatured Coupons and all matured
Coupons in default thereto appertaining, and upon payment, if the Issuer shall
so require, of the charges hereinafter provided.  Registered Securities of any series may not
be exchanged for Unregistered Securities of such series unless (1) otherwise
specified pursuant to Section 2.3 and (2) the Issuer has delivered to
the Trustee an Opinion of Counsel that (x) the Issuer has received from the IRS
a ruling or (y) since the date hereof, there has been a change in the
applicable United States Federal income tax law, in either case to the effect
that the inclusion of terms permitting Registered Securities to be exchanged
for Unregistered Securities would result in no United States Federal income tax
effect adverse to the Issuer or to any Holder. 
Whenever any Securities are so surrendered for exchange, the Issuer
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.  All Securities and Coupons, if any, surrendered
upon any exchange or transfer provided for in this Indenture shall be promptly
cancelled and disposed of by the Trustee, and the Trustee shall deliver a
certificate of disposition thereof to the Issuer.

 

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

 

The
Issuer or the registrar may require payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any
exchange or registration of transfer of Securities.  No service charge shall be made for any such
transaction.

 

The
Issuer shall not be required to exchange or register a transfer of (a) any
Securities of any series for a period of 15 days preceding the first mailing of
notice of redemption of Securities of such series to be redeemed or (b) any
Securities selected, called or

 

16

 

being called for redemption,
in whole or in part, except, in the case of any Security to be redeemed in
part, the portion thereof not so to be redeemed.

 

Notwithstanding
any other provision of this Section 2.8, unless and until it is exchanged
in whole or in part for Securities in definitive registered form, a Registered
Global Security representing all or a portion of the Securities of a series may
not be transferred except as a whole by the Depositary for such series to a
nominee of such Depositary or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary or by such Depositary or any such
nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

 

If
at any time the Depositary for any Registered Securities of a series
represented by one or more Registered Global Securities notifies the Issuer
that it is unwilling or unable to continue as Depositary for such Registered
Securities or if at any time the Depositary for such Registered Securities
shall no longer be eligible under Section 2.4, the Issuer shall appoint a
successor Depositary eligible under Section 2.4 with respect to such
Registered Securities.  If a successor
Depositary eligible under Section 2.4 for such Registered Securities is
not appointed by the Issuer within 90 days after the Issuer receives such
notice or becomes aware of such ineligibility, the Issuer’s election pursuant
to Section 2.3 that such Registered Securities be represented by one or
more Registered Global Securities shall no longer be effective and the Issuer
will execute, and the Trustee, upon receipt of an Officer’s Certificate for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive registered
form without coupons, in any authorized denominations, in an aggregate
principal amount equal to the principal amount of the Registered Global
Security or Securities representing such Registered Securities in exchange for
such Registered Global Security or Securities.

 

The
Issuer may at any time and in its sole discretion determine that the Registered
Securities of any series issued in the form of one or more Registered Global
Securities shall no longer be represented by a Registered Global Security or
Securities.  In such event the Issuer
will execute, and the Trustee, upon receipt of any Officer’s Certificate for
the authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive registered
form without coupons, in any authorized denominations, in an aggregate
principal amount equal to the principal amount of the Registered Global
Security or Securities representing such Registered Securities, in exchange for
such Registered Global Security or Securities.

 

If
specified by the Issuer pursuant to Section 2.3 with respect to Securities
represented by a Registered Global Security, the Depositary for such Registered
Global Security may surrender such Registered Global Security in exchange in
whole or in part for Securities of the same series in definitive registered
form on such terms as are acceptable to the Issuer and such Depositary.  Thereupon, the Issuer shall execute, and the
Trustee shall authenticate and deliver, without service charge,

 

(i)                                     to the Person specified by such Depositary a
new Registered Security or Securities of the same series, of any authorized
denominations as requested by such Person, in an aggregate principal amount
equal to and in exchange for such Person’s beneficial interest in the
Registered Global Security; and

 

17

 

(ii)                                  to such Depositary a new Registered Global
Security in a denomination equal to the difference, if any, between the
principal amount of the surrendered Registered Global Security and the
aggregate principal amount of Registered Securities authenticated and delivered
pursuant to clause (i) above.

 

Upon
the exchange of a Registered Global Security for Securities in definitive
registered form without coupons, in authorized denominations, such Registered
Global Security shall be cancelled by the Trustee or an agent of the Issuer or
the Trustee.  Securities in definitive
registered form without coupons issued in exchange for a Registered Global
Security pursuant to this Section 2.8 shall be registered in such names
and in such authorized denominations as the Depositary for such Registered
Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee or an agent of the Issuer
or the Trustee.  The Trustee or such
agent shall deliver such Securities to or as directed by the Persons in whose
names such Securities are so registered.

 

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

 

Notwithstanding
anything herein or in the terms of any series of Securities to the contrary,
none of the Issuer, the Trustee or any agent of the Issuer or the Trustee (any
of which, other than the Issuer, shall rely on an Officer’s Certificate and an
Opinion of Counsel) shall be required to exchange any Unregistered Security for
a Registered Security if such exchange would result in United States Federal
income tax consequences adverse to the Issuer (such as, for example, the
inability of the Issuer to deduct from its income, as computed for United
States Federal income tax purposes, the interest payable on the Unregistered
Securities) under then applicable United States Federal income tax laws.

 

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

 

SECTION 2.9                     MUTILATED, DEFACED,
DESTROYED, LOST AND STOLEN SECURITIES.  In case any temporary or definitive Security,
any Coupon appertaining to any Security or Guarantee appertaining to any
Security shall be mutilated, defaced, destroyed, lost or stolen, the Issuer in
its discretion may execute and, upon the written request of any officer of the
Issuer, the Trustee shall authenticate and deliver, a new Security of the same
series, maturity date, interest rate and original issue date, bearing a number
or other distinguishing symbol not contemporaneously outstanding, in exchange
and substitution for the mutilated or defaced Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen with Coupons and
Guarantees corresponding to the Coupons and Guarantees appertaining to the
Securities so mutilated, defaced, destroyed, lost or stolen, or in exchange or
substitution for the Security to which such mutilated, defaced, destroyed, lost
or stolen Coupon

 

18

 

or Guarantee appertained,
with Coupons or Guarantees appertaining thereto corresponding to the Coupons or
Guarantees so mutilated, defaced, destroyed, lost or stolen.  In every case, the applicant for a substitute
Security, Guarantee or Coupon shall furnish to the Issuer and to the Trustee
and any agent of the Issuer or the Trustee such security or indemnity as may be
required by them to indemnify and defend and to save each of them harmless and,
in every case of destruction, loss or theft, evidence to their satisfaction of
the destruction, loss or theft of such Security, Guarantee or Coupon and of the
ownership thereof, and in the case of mutilation or defacement shall surrender
the Security and related Guarantees and Coupons to the Trustee or such agent.

 

Upon
the issuance of any substitute Security, Guarantee or Coupon, the Issuer or the
registrar 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) or its agent
connected therewith.  In case any
Security or Coupon which has matured or is about to mature or has been called
for redemption in full shall become mutilated or defaced or be destroyed, lost
or stolen, the Issuer may, instead of issuing a substitute Security, pay or
authorize the payment of the same or the relevant Coupon (without surrender
thereof except in the case of a mutilated or defaced Security or Coupon), if
the applicant for such payment shall furnish to the Issuer and to the Trustee
and any agent of the Issuer or the Trustee such security or indemnity as any of
them may require to save each of them harmless, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Issuer and
the Trustee and any agent of the Issuer or the Trustee evidence to their
satisfaction of the destruction, loss or theft of such Security or Coupons and
of the ownership thereof.

 

Every
substitute Security or Coupon of any series issued pursuant to the provisions
of this Section by virtue of the fact that any such Security or Coupon is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Issuer, whether or not the destroyed, lost or stolen Security or Coupon
shall be at any time enforceable by anyone and shall be entitled to all the
benefits of (but shall be subject to all the limitations of rights set forth
in) this Indenture equally and proportionately with any and all other
Securities or Coupons of such series duly authenticated and delivered hereunder.  All Securities, Guarantees and Coupons shall
be held and owned upon the express condition that, to the extent permitted by
law, the foregoing provisions are exclusive with respect to the replacement or
payment of mutilated, defaced or destroyed, lost or stolen Securities,
Guarantees and Coupons and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the
contrary with respect to the replacement or payment of negotiable instruments or
other securities without their surrender.

 

SECTION 2.10              CANCELLATION OF SECURITIES;
DESTRUCTION THEREOF.  All Securities and Coupons surrendered for
payment, redemption, registration of transfer or exchange, or for credit
against any payment in respect of a sinking or analogous fund, if any, if
surrendered to the Issuer or any agent of the Issuer or the Trustee or any
agent of the Trustee, shall be delivered to the Trustee or its agent for
cancellation or, if surrendered to the Trustee, shall be cancelled by it; and
no Securities or Coupons shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Indenture.  The Trustee or its agent shall dispose of
cancelled Securities and Coupons held by it and deliver a certificate of
disposition to the Issuer.  If the Issuer
or its agent shall acquire any of the Securities or Coupons, such acquisition
shall not operate as a redemption or satisfaction of the indebtedness
represented

 

19

 

by such Securities or
Coupons unless and until the same are delivered to the Trustee or its agent for
cancellation.

 

SECTION 2.11              TEMPORARY SECURITIES.  Pending the preparation of definitive Securities for any series, the
Issuer may execute and the Trustee shall authenticate and deliver temporary
Securities for such series (printed, lithographed, typewritten or otherwise
reproduced, in each case in form satisfactory to the Trustee).  Temporary Securities of any series shall be
issuable as Registered Securities without coupons, or as Unregistered
Securities with or without coupons attached thereto, of any authorized
denomination, and substantially in the form of the definitive Securities of
such series but with such omissions, insertions and variations as may be
appropriate for temporary Securities, all as may be determined by the Issuer
with the concurrence of the Trustee as evidenced by the execution and
authentication thereof.  Temporary
Securities may contain such references to any provisions of this Indenture as
may be appropriate.  Every temporary
Security shall be executed by the Issuer and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Securities. 
Without unreasonable delay the Issuer shall execute and shall furnish
definitive Securities of such series and thereupon temporary Registered
Securities of such series may be surrendered in exchange therefor without
charge at each office or agency to be maintained by the Issuer for that purpose
pursuant to Section 3.2 and, in the case of Unregistered Securities, at
any agency maintained by the Issuer for such purpose as specified pursuant to Section 2.3,
and the Trustee shall authenticate and deliver in exchange for such temporary
Securities of such series an equal aggregate principal amount of definitive
Securities of the same series having authorized denominations and, in the case
of Unregistered Securities, having attached thereto any appropriate Coupons.  Until so exchanged, the temporary Securities
of any series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series, unless otherwise established pursuant to Section 2.3.  The provisions of this Section are
subject to any restrictions or limitations on the issue and delivery of
temporary Unregistered Securities of any series that may be established
pursuant to Section 2.3 (including any provision that Unregistered
Securities of such series initially be issued in the form of a single global
Unregistered Security to be delivered to a depositary or agency located outside
the United States and the procedures pursuant to which definitive or global
Unregistered Securities of such series would be issued in exchange for such
temporary global Unregistered Security).

 

ARTICLE III

COVENANTS OF THE ISSUER

 

SECTION 3.1                     PAYMENT OF PRINCIPAL AND
INTEREST.  The Issuer covenants and agrees for the
benefit of each series of Securities that it will duly and punctually pay or
cause to be paid the principal of, and interest on, if any, each of the
Securities of such series (together with any additional amounts payable
pursuant to the terms of such Securities) at the place or places, at the
respective time or times and in the manner provided in such Securities and in
the Coupons, if any, appertaining thereto and in this Indenture.  The interest on Securities with Coupons
attached (together with any additional amounts payable pursuant to the terms of
such Securities) shall be payable only upon presentation and surrender of the
several Coupons for such interest installments as are evidenced thereby as they
severally mature.  If any temporary
Unregistered Security provides that interest thereon may be paid while such Security
is in temporary form, the interest on any such temporary Unregistered Security
(together with

 

20

 

any additional amounts
payable pursuant to the terms of such Security) shall be paid, as to the
installments of interest evidenced by Coupons attached thereto, if any, only
upon presentation and surrender thereof, and, as to the other installments of
interest, if any, only upon presentation of such Securities for notation
thereon of the payment of such interest, in each case subject to any
restrictions that may be established pursuant to Section 2.3.  The interest, if any, on Registered
Securities (together with any additional amounts payable pursuant to the terms
of such Securities) shall be payable only to or upon the written order of the
Holders thereof and, at the option of the Issuer, may be paid by wire transfer
or by mailing checks for such interest payable to or upon the written order of
such Holders at their last addresses as they appear on the Securities register
of the Issuer.

 

SECTION 3.2                     OFFICES FOR PAYMENTS, ETC.  So
long as any Registered Securities are authorized for issuance pursuant to this
Indenture or are outstanding hereunder, the Issuer will maintain in the Borough
of Manhattan, The City of New York, an office or agency where the Registered
Securities of each series may be presented for payment, where the Securities of
each series may be presented for exchange as is provided in this Indenture and,
if applicable, pursuant to Section 2.3 and where the Registered Securities
of each series may be presented for registration of transfer as in this
Indenture provided.

 

The
Issuer will maintain one or more offices or agencies in a city or cities
located outside the United States (including any city in which such an agency
is required to be maintained under the rules of any stock exchange on
which the Securities of such series are listed) where the Unregistered
Securities, if any, of each series and Coupons, if any, appertaining thereto
may be presented for payment.  No payment
on any Unregistered Security or Coupon will be made upon presentation of such
Unregistered Security or Coupon at an agency of the Issuer within the United
States, nor will any payment be made by transfer to an account in, or by mail
to an address in, the United States unless pursuant to applicable United States
laws and regulations then in effect such payment can be made without tax
consequences adverse to the Issuer. 
Notwithstanding the foregoing, payments in Dollars of Unregistered
Securities of any series and Coupons appertaining thereto which are payable in
Dollars may be made at an agency of the Issuer maintained in the Borough of
Manhattan, The City of New York if such payment in Dollars at each agency
maintained by the Issuer outside the United States for payment on such
Unregistered Securities is illegal or effectively precluded by exchange
controls or other similar restrictions.

 

The
Issuer will maintain in the Borough of Manhattan, The City of New York, an
office or agency where notices and demands to or upon the Issuer in respect of
the Securities of any series, the Coupons appertaining thereto or this
Indenture may be served.

 

The
Issuer will give to the Trustee written notice of the location of each such
office or agency and of any change of location thereof.  In case the Issuer shall fail to maintain any
agency required by this Section to be located in the Borough of Manhattan,
The City of New York, or shall fail to give such notice of the location or for
any change in the location of any of the above agencies, presentations and
demands may be made and notices may be served at the Corporate Trust Office of
the Trustee.

 

The
Issuer may from time to time designate one or more additional offices or
agencies where the Securities of a series and any Coupons appertaining thereto
may be presented

 

21

 

for payment, where the
Securities of that series may be presented for exchange as provided in this
Indenture and pursuant to Section 2.3 and where the Registered Securities
of that series may be presented for registration of transfer as in this
Indenture provided, and the Issuer may from time to time rescind any such
designation, as the Issuer may deem desirable or expedient; provided, that no such designation or
rescission shall in any manner relieve the Issuer of its obligations to
maintain the agencies provided for in this Section.  The Issuer shall give to the Trustee prompt
written notice of any such designation or rescission thereof.

 

SECTION 3.3                     APPOINTMENT TO FILL A
VACANCY IN OFFICE OF TRUSTEE.  The Issuer, whenever necessary to avoid or
fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 6.10, a Trustee, so that there shall at all times be a Trustee
with respect to each series of Securities hereunder.

 

SECTION 3.4                     PAYING AGENTS.  Whenever the Issuer shall appoint a paying agent other than the Trustee
with respect to the Securities of any series, it will cause such paying agent
to execute and deliver to the Trustee an instrument in which such agent shall
agree with the Trustee, subject to the provisions of this Section,

 

(a)                                  that it will hold all sums received by it as
such agent for the payment of the principal of or interest on the Securities of
such series (whether such sums have been paid to it by the Issuer or by any
other obligor on the Securities of such series) in trust for the benefit of the
Holders of the Securities of such series, or Coupons appertaining thereto, if
any, or of the Trustee;

 

(b)                                 that it will give the Trustee notice of any
failure by the Issuer (or by any other obligor on the Securities of such
series) to make any payment of the principal of or interest on the Securities
of such series when the same shall be due and payable; and

 

(c)                                  that it will pay any such sums so held in
trust by it to the Trustee upon the Trustee’s written request at any time
during the continuance of the failure referred to in the foregoing clause (b).

 

The
Issuer will, on or prior to each due date of the principal of or interest on
the Securities of such series, deposit with the paying agent a sum sufficient
to pay such principal or interest so becoming due, and (unless such paying
agent is the Trustee) the Issuer will promptly notify the Trustee of any
failure to take such action.

 

If
the Issuer shall act as its own paying agent with respect to the Securities of
any series, it will, on or before each due date of the principal of or interest
on the Securities of such series, set aside, segregate and hold in trust for
the benefit of the Holders of the Securities of such series or the Coupons
appertaining thereto a sum sufficient to pay such principal or interest so
becoming due.  The Issuer will promptly
notify the Trustee of any failure to take such action.

 

Anything
in this Section to the contrary notwithstanding, but subject to Section 10.1,
the Issuer may at any time, for the purpose of obtaining a satisfaction and
discharge with respect to one or more or all series of Securities hereunder, or
for any other reason, pay or cause to be paid to the Trustee all sums held in
trust for any such series by the Issuer or any paying agent hereunder, as
required by this Section, such sums to be held by the Trustee upon the trusts
herein contained.

 

22

 

Anything
in this Section to the contrary notwithstanding, the agreement to hold
sums in trust as provided in this Section is subject to the provisions of
Sections 10.3 and 10.4.

 

SECTION 3.5                     COMPLIANCE CERTIFICATES.  The Issuer will furnish to the Trustee within 90 days following the end
of each fiscal year a brief certificate (which need not comply with Section 11.5)
from the principal executive, financial or accounting officer of the Issuer
stating that in the course of the performance by the signer of his or her
duties as an officer of the Issuer he or she would normally have knowledge of
any default or non-compliance by the Issuer in the performance of any covenants
or conditions contained in this Indenture, stating whether or not he or she has
knowledge of any such default or non-compliance and, if so, describing each
such default or non-compliance of which the signer has knowledge and the nature
thereof.

 

SECTION 3.6                     EXISTENCE.  Subject to Article IX, the Issuer will do or cause to be done all
things necessary to preserve and keep in full force and effect its existence
and the rights (charter and statutory), licenses and franchises of the Issuer
and its Subsidiaries; provided,
that the Issuer shall not be required to preserve any such right, license or
franchise, if, in the judgment of the Issuer, the preservation thereof is no
longer desirable in the conduct of the business of the Issuer and its
Subsidiaries taken as a whole and the loss thereof is not disadvantageous in
any material respect to the Securityholders.

 

SECTION 3.7                     LUXEMBOURG PUBLICATIONS.  In the event of the publication of any notice pursuant to Section 5.11,
6.11, 6.12, 8.2, 10.4, 11.4 or 12.2, the party making such publication in the
Borough of Manhattan, The City of New York and London shall also, to the extent
that notice is required to be given to Holders of Securities of any series by
applicable Luxembourg law or stock exchange regulation, as evidenced by an
Officer’s Certificate delivered to such party, make a similar publication in
Luxembourg.

 

ARTICLE IV

SECURITYHOLDER LISTS AND REPORTS BY THE

ISSUER AND THE TRUSTEE

 

SECTION 4.1                     ISSUER TO FURNISH TRUSTEE
INFORMATION AS TO NAMES AND ADDRESSES OF SECURITYHOLDERS.  If and so long as the Trustee shall not be the Security registrar for
the Securities of any series, the Issuer and any other obligor on the
Securities will furnish or cause to be furnished to the Trustee a list in such
form as the Trustee may reasonably require of the names and addresses of the
Holders of the Registered Securities of such series pursuant to Section 312
of the Trust Indenture Act:

 

(a)                                  semi-annually not more than 5 days after each
record date for the payment of interest on such Registered Securities, as
hereinabove specified, as of such record date and on dates to be determined
pursuant to Section 2.3 for non-interest bearing Registered Securities in
each year; and

 

(b)                                 at such other times as the Trustee may
reasonably request in writing, within thirty days after receipt by the Issuer
of any such request as of a date not more than 15 days prior to the time such
information is furnished.

 

23

 

SECTION 4.2                     REPORTS BY THE ISSUER.  The Issuer covenants to file with the Trustee, within 15 days after the
Guarantor is required to file the same with the Commission, copies of the
annual reports and of the information, documents, and other reports that the
Guarantor may be required to file with the Commission pursuant to Section 13
or Section 15(d) of the Exchange Act or pursuant to Section 314
of the Trust Indenture Act.

 

Delivery
of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Issuer’s compliance with any
covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officer’s Certificates).

 

SECTION 4.3                     REPORTS BY THE TRUSTEE.

 

(a)                                  On or before the first July 15 which
occurs not less than 60 days after the earliest date of issuance of any Securities
and on or before July 15 in each year thereafter, so long as any
Securities are Outstanding hereunder, the Trustee shall transmit by mail as
provided below to the Securityholders of each series of outstanding Securities,
as hereinafter in this Section provided, a brief report dated as of the
preceding May 15 with respect to:

 

(i)                                     its eligibility under Section 6.10 and
its qualification under Section 6.9, or in lieu thereof, if to the best of
its knowledge it has continued to be eligible and qualified under such
Sections, a written statement to such effect;

 

(ii)                                  the character and amount of any advances (and
if the Trustee elects to so state, the circumstances surrounding the making
thereof) made by the Trustee (as such) which remain unpaid on the date of such
report and for the reimbursement of which it claims or may claim a lien or
charge, prior to that of the Securities of such series, on any property or
funds held or collected by it as Trustee, except that the Trustee shall not be
required (but may elect) to report such advances if such advances so remaining
unpaid aggregate not more than 0.5% of the principal of the Securities of such
series outstanding on the date of such report;

 

(iii)                               the amount, interest rate and maturity date
of all other indebtedness owing by the Issuer (or any other obligor on the
Securities of such series) to the Trustee in its individual capacity on the
date of such report, with a brief description of any property held as
collateral security therefor, except any indebtedness based upon a creditor
relationship;

 

(iv)                              the property and funds, if any, physically in
the possession of the Trustee (as such) in respect of the Securities of such
series on the date of such report;

 

(v)                                 any additional issue of Securities of such
series which the Trustee has not previously reported; and

 

24

 

(vi)                              any action taken by the Trustee in the
performance of its duties under this Indenture which the Trustee has not
previously reported and which in the Trustee’s opinion materially affects the
Securities of such series, except action in respect of a default, notice of
which has been or is to be withheld by it in accordance with the provisions of Section 5.11.

 

(b)                                 The Trustee shall transmit to the Securityholders
of each series, as provided in subsection (c) of this Section, a
brief report with respect to the character and amount of any advances (and if
the Trustee elects so to state, the circumstances surrounding the making
thereof) made by the Trustee (as such) in respect of the Securities of such
series since the date of the last report transmitted pursuant to the provisions
of subsection (a) of this Section (or if no such report has yet
been so transmitted, since the date of this Indenture) for the reimbursement of
which it claims or may claim a lien or charge prior to that of the Securities
of such series on property or funds held or collected by it as Trustee and
which it has not previously reported pursuant to this subsection (b),
except that the Trustee shall not be required (but may elect) to report such
advances if such advances remaining unpaid at any time aggregate 10% or less of
the principal amount of Securities of such series outstanding at such time,
such report to be transmitted within 90 days after such time.

 

(c)                                  Reports pursuant to this Section shall
be transmitted by mail to all Holders of Securities of such series, as the
names and addresses of such Holders appear upon the Securities register as of a
date not more than 15 days prior to the mailing thereof.

 

(d)                                 A copy of each such report shall, at the time
of such transmission to Securityholders, be furnished to the Issuer and be
filed by the Trustee with each stock exchange upon which the Securities of such
series are listed and also with the Commission. 
The Issuer agrees to notify the Trustee when and as Securities of any
series become listed on any national securities exchange.

 

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

ON EVENT OF DEFAULT

 

SECTION 5.1                     EVENT OF DEFAULT DEFINED,
ACCELERATION OF MATURITY; WAIVER OF DEFAULT. 
“Event of Default”
with respect to Securities of any series, wherever used herein, means any one
of the following events which shall have occurred and be continuing (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):

 

(a)                                  default in the payment of any installment of
interest upon any of the Securities of such series as and when the same shall
become due and payable, and continuance of such default for a period of 30
days; provided, that, a valid extension of an

 

25

 

interest
payment period by the Issuer in accordance with the terms of such Securities
shall not constitute a failure to pay interest; or

 

(b)                                 default in the payment of all or any part of
the principal on any of the Securities of such series as and when the same
shall become due and payable either at maturity, upon any redemption, by
declaration or otherwise; or

 

(c)                                  default in the payment of any sinking fund
installment as and when the same shall become due and payable by the terms of
the Securities of such series; or

 

(d)                                 failure on the part of the Issuer duly to
observe or perform any other of the covenants or agreements on the part of the
Issuer in the Securities of such series or contained in this Indenture (other
than a covenant or agreement included in this Indenture solely for the benefit
of a series of Securities other than such series) for a period of 90 days
after the date on which written notice specifying such failure, stating that
such notice is a “Notice of Default” hereunder and demanding that the Issuer
remedy the same, shall have been given by registered or certified mail, return
receipt requested, to the Issuer by the Trustee, or to the Issuer and the
Trustee by the holders of at least 25% in aggregate principal amount of the
Outstanding Securities of the series to which such covenant or agreement
relates; or

 

(e)                                  a court having jurisdiction in the premises
shall enter a decree or order for relief in respect of the Issuer, the General
Partner or the Guarantor in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of the Issuer, the General Partner or the Guarantor for
any substantial part of its or their respective property or ordering the
winding up or liquidation of its or their affairs, and such decree or order
shall remain unstayed and in effect for a period of 60 consecutive days; or

 

(f)                                    the Issuer, the General Partner or the
Guarantor shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or
consent to the appointment or taking possession by a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of the Issuer,
the General Partner or the Guarantor or for any substantial part of its or
their property, or make any general assignment for the benefit of creditors; or

 

(g)                                 any other Event of Default provided in the
supplemental indenture, officer’s certified or Board Resolution under which
such series of Securities is issued or in the form of Security for such series.

 

If
an Event of Default described in clause (a), (b) or (c) occurs and is
continuing, then, and in each and every such case, except for any series of
Securities the principal of which shall have already become due and payable,
either the Trustee or the Holders of not less than 25% in aggregate principal
amount of the Securities of each such affected series then Outstanding
hereunder (each such series voting as a separate class) by notice in writing to
the Issuer (and to the Trustee if given by Securityholders), may declare the
entire principal (or, if the

 

26

 

Securities of such series
are Original Issue Discount Securities, such portion of the principal amount as
may be specified in the terms of such series) of all Securities of such series,
and the interest accrued thereon, if any, to be due and payable immediately,
and upon any such declaration, the same shall become immediately due and
payable.

 

Except
as otherwise provided in the terms of any series of Senior Securities pursuant
to Section 2.3, if an Event of Default described in clause (d) or (g) above
with respect to all series of the Senior Securities then Outstanding, occurs
and is continuing, then, and in each and every such case, unless the principal
of all of the Senior Securities shall have already become due and payable,
either the Trustee or the Holders of not less than 25% in aggregate principal
amount of all of the Senior Securities then Outstanding hereunder (treated as
one class) by notice in writing to the Issuer (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Senior
Securities of any series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of such series) of all
of the Senior Securities then Outstanding, and the interest accrued thereon, if
any, to be due and payable immediately, and upon such declaration, the same
shall become immediately due and payable. 
If an Event of Default described in clause (e) or (f) above
occurs and is continuing, then the principal amount of all the Senior
Securities then Outstanding, and the interest accrued thereon, if any, shall
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder.

 

Except
as otherwise provided in the terms of any series of Subordinated Securities
pursuant to Section 2.3, if an Event of Default described in clause (d) or
(g) above with respect to all series of Subordinated Securities then Outstanding,
occurs and is continuing, then, and in each and every such case, unless the
principal of all of the Subordinated Securities shall have already become due
and payable, either the Trustee or the Holders of not less than 25% in
aggregate principal amount of all of the Subordinated Securities then
Outstanding hereunder (treated as one class) by notice in writing to the Issuer
(and to the Trustee if given by Securityholders), may declare the entire
principal (or, if the Subordinated Securities of any series are Original Issue
Discount Securities, such portion of the principal amount as may be specified
in the terms of such series) of all of the Subordinated Securities then
Outstanding, and the interest accrued thereon, if any, to be due and payable immediately,
and upon such declaration, the same shall become immediately due and
payable.  If an Event of Default
described in clause (e) or (f) above occurs and is continuing, then
the principal amount of all of the Subordinated Securities then Outstanding,
and the interest accrued thereon, if any, shall become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.

 

If
an Event of Default described in clause (d) or (g) occurs and is
continuing, which Event of Default is with respect to less than all series of
Senior Securities then Outstanding, then, and in each and every such case,
except for any series of Senior Securities the principal of which shall have
already become due and payable, either the Trustee or the Holders of not less
than 25% in aggregate principal amount of the Senior Securities of each such
affected series then Outstanding hereunder (each such series voting as a
separate class) by notice in writing to the Issuer (and to the Trustee if given
by Securityholders), may declare the entire principal (or, if the Securities of
such series are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of such series) of all
Securities of such

 

27

 

series, and the interest
accrued thereon, if any, to be due and payable immediately, and upon any such
declaration, the same shall become immediately due and payable.

 

If
an Event of Default described in clause (d) or (g) occurs and is
continuing, which Event of Default is with respect to less than all series of
Subordinated Securities then Outstanding, then, and in each and every such
case, except for any series of Subordinated Securities the principal of which
shall have already become due and payable, either the Trustee or the Holders of
not less than 25% in aggregate principal amount of the Subordinated Securities
of each such affected series then Outstanding hereunder (each such series
voting as a separate class) by notice in writing to the Issuer (and to the
Trustee if given by Securityholders), may declare the entire principal (or, if
the Securities of such series are Original Issue Discount Securities, such
portion of the principal amount as may be specified in the terms of such
series) of all Securities of such series, and the interest accrued thereon, if
any, to be due and payable immediately, and upon any such declaration, the same
shall become immediately due and payable.

 

The
foregoing provisions are subject to the condition that if, at any time after
the principal (or, if the Securities are Original Issue Discount Securities,
such portion of the principal as may be specified in the terms thereof) of the
Securities of any series (or of all the Securities, as the case may be) shall
have been so declared due and payable, and before any judgment or decree for
the payment of the moneys due shall have been obtained or entered as
hereinafter provided,

 

(A)                              the Issuer shall pay or shall deposit with
the Trustee a sum sufficient to pay

 

(i)                                     all matured installments of interest upon all
the Securities of such series (or all the Securities, as the case may be); and

 

(ii)                                  the principal of any and all Securities of
such series (or of all the Securities, as the case may be) which shall have
become due otherwise than by acceleration; and

 

(iii)                               interest upon such principal and, to the
extent that payment of such interest is enforceable under applicable law, on
overdue installments of interest, at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified
in the Securities of such series (or at the respective rates of interest or
Yields to Maturity of all the Securities, as the case may be) to the date of
such payment or deposit; and

 

(iv)                              all amounts payable to the Trustee pursuant
to Section 6.6; and

 

(B)                                all Events of Default under the Indenture,
other than the non-payment of the principal of Securities which shall have
become due by acceleration, shall have been cured, waived or otherwise remedied
as provided herein,

 

then and in every such case
the Holders of a majority in aggregate principal amount of all the Securities
of such series voting as a separate class (or of all the Securities, as the
case may be, voting as a single class), then Outstanding, by written notice to
the Issuer and to the Trustee, may

 

28

 

waive all defaults with
respect to such series (or with respect to all the Securities, as the case may
be) and rescind and annul such declaration and its consequences, but no such
waiver or rescission and annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon.

 

For
all purposes under this Indenture, if a portion of the principal of any
Original Issue Discount Securities shall have been accelerated and declared due
and payable pursuant to the provisions hereof, then, from and after such
declaration, unless such declaration has been rescinded and annulled, the
principal amount of such Original Issue Discount Securities shall be deemed,
for all purposes hereunder, to be such portion of the principal thereof as
shall be due and payable as a result of such acceleration, and payment of such
portion of the principal thereof as shall be due and payable as a result of
such acceleration, together with interest, if any, thereon and all other
amounts owing thereunder, shall constitute payment in full of such Original
Issue Discount Securities.

 

SECTION 5.2                     COLLECTION OF INDEBTEDNESS
BY TRUSTEE; TRUSTEE MAY PROVE DEBT. 
The Issuer covenants
that (a) in case default shall be made in the payment of any installment
of interest on any of the Securities of any series when such interest shall
have become due and payable, and such default shall have continued for a period
of 30 days, or (b) in case default shall be made in the payment of all or
any part of the principal of any of the Securities of any series when the same
shall have become due and payable, whether upon maturity of the Securities of
such series or upon any redemption or by declaration or otherwise, then upon
demand of the Trustee, the Issuer will pay to the Trustee for the benefit of
the Holders of the Securities of such series the whole amount that then shall
have become due and payable on all Securities of such series, and such Coupons,
for principal and interest, as the case may be (with interest to the date of
such payment upon the overdue principal and, to the extent that payment of such
interest is enforceable under applicable law, on overdue installments of
interest at the same rate as the rate of interest or Yield to Maturity (in the
case of Original Issue Discount Securities) specified in the Securities of such
series); and in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, and such other amount due the
Trustee under Section 6.6 in respect of Securities of such series.

 

Until
such demand is made by the Trustee, the Issuer may pay the principal of and
interest on the Securities of any series to the registered Holders, whether or
not the Securities of such series be overdue.

 

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

 

In
case there shall be pending proceedings relative to the Issuer, the Guarantor
or any other obligor upon the Securities under Title 11 of the United States
Code or any other applicable Federal or state bankruptcy, insolvency or other
similar law, or in case a receiver,

 

29

 

assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official
shall have been appointed for or taken possession of the Issuer, the Guarantor
or their property or such other obligor, or in case of any other comparable
judicial proceedings relative to the Issuer, the Guarantor or other obligor upon
the Securities, or to the creditors or property of the Issuer, the Guarantor or
such other obligor, 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
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such proceedings or otherwise:

 

(a)                                  to file and prove a claim or claims for the
whole amount of principal and interest (or, if the Securities of any series are
Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of such series) owing and unpaid in respect of the
Securities or Guarantees of any series, 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 amounts payable to the Trustee under Section 6.6)
and of the Securityholders allowed in any judicial proceedings relative to the
Issuer, any Guarantor or other obligor upon the Securities, or to the creditors
or property of the Issuer or such other obligor; and

 

(b)                                 unless prohibited by applicable law and
regulations, to vote on behalf of the holders of the Securities or Guarantees
of any series in any election of a receiver, assignee, trustee or a standby
trustee in arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings, custodian or other person performing similar functions in
respect of any such proceedings; and

 

(c)                                  to collect and receive any moneys or other
property payable or deliverable on any such claims, and to distribute all
amounts received with respect to the claims of the Securityholders and of the
Trustee on their behalf; and any trustee, receiver, or liquidator, custodian or
other similar official performing similar functions in respect of any such
proceedings is hereby authorized by each of the Securityholders to make
payments to the Trustee, and, in the event that the Trustee shall consent to
the making of payments directly to the Securityholders, to pay to the Trustee
its costs and expenses of collection and all other amounts due to it pursuant
to Section 6.6.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or vote for or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities or Guarantees of any series or the rights of any Holder thereof, or
to authorize the Trustee to vote in respect of the claim of any Securityholder
in any such proceeding, except as aforesaid in clause (b).

 

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

 

30

 

Coupons appertaining to such
Securities in respect of which such action was taken, after payment of all sums
due to the Trustee under Section 6.6 in respect of such Securities.

 

In
any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be
a party) the Trustee shall be held to represent all the Holders of the
Securities, Guarantees or Coupons appertaining to such Securities in respect to
which such action was taken, and it shall not be necessary to make any Holders
of such Securities, Guarantees or Coupons appertaining to such Securities
parties to any such proceedings.

 

SECTION 5.3                     APPLICATION OF PROCEEDS.  Any moneys collected by the Trustee pursuant to this Article in
respect of any series shall be applied in the following order at the date or
dates fixed by the Trustee and, in case of the distribution of such moneys on
account of principal or interest, upon presentation of the several Securities,
Guarantees and Coupons appertaining to such Securities in respect of which
monies have been collected and stamping (or otherwise noting) thereon the
payment, or issuing Securities of such series in reduced principal amounts in
exchange for the presented Securities of like series if only partially paid, or
upon surrender thereof if fully paid:

 

FIRST:  To the payment of costs
and expenses applicable to such series of Securities and Guarantees in respect
of which monies have been collected, including all amounts due to the Trustee
and each predecessor Trustee pursuant to Section 6.6 in respect to such
series of Securities;

 

SECOND:  If the Securities of
such series are Subordinated Securities, to the payment of amounts then due and
unpaid to the holders of Senior Indebtedness with respect to such series, to
the extent required pursuant to the Subordination Provisions established with
respect to the Securities of such series pursuant to Section 2.3(9).

 

THIRD:  In case the principal of
the Securities and Guarantees of such series in respect of which moneys have
been collected shall not have become and be then due and payable, to the
payment of interest on the Securities and Guarantees of such series in default
in the order of the maturity of the installments on such interest, with
interest (to the extent that such interest has been collected by the Trustee
and is permitted by applicable law) upon the overdue installments of interest at
the same rate as the rate of interest or Yield to Maturity (in the case of
Original Issue Discount Securities) specified in such Securities, such payments
to be made ratably to the persons entitled thereto, without discrimination or
preference;

 

FOURTH:  In case the principal of
the Securities and Guarantees of such series in respect of which moneys have
been collected shall have become and shall be then due and payable, to the
payment of the whole amount then owing and unpaid upon all the Securities and Guarantees
of such series for principal and interest, with interest upon the overdue
principal, and (to the extent that such interest has been collected by the
Trustee and is permitted by applicable law) upon the overdue installations of
interest at the same rate as the rate of interest or

 

31

 

Yield
to Maturity (in the case of Original Issue Discount Securities) specified in
the Securities of such series; and in case such moneys shall be insufficient to
pay in full the whole amount so due and unpaid upon the Securities and
Guarantees of such series, then to the payment of such principal and interest
or Yield to Maturity, without preference or priority of principal over interest
or Yield to Maturity, or of interest or Yield to Maturity over principal, or of
any installment of interest over any other installment of interest or of any
Security and Guarantee of such series over any other Security and Guarantee of
such series, ratably to the aggregate of such principal and accrued and unpaid
interest or Yield to Maturity; and

 

FIFTH:  To the payment of the
remainder, if any, to the Issuer or to such party as a court of competent
jurisdiction shall direct.

 

SECTION 5.4                     SUITS FOR ENFORCEMENT.  In case an Event of Default has occurred, has not been waived and is
continuing, the Trustee may in its discretion proceed to protect and enforce
the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in
this Indenture or in aid of the exercise of any power granted in this Indenture
or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.

 

SECTION 5.5                     RESTORATION OF RIGHTS ON
ABANDONMENT OF PROCEEDINGS.  In case the Trustee shall have proceeded to
enforce any right under this Indenture and such proceedings shall have been
discontinued or abandoned for any reason, or shall have been determined
adversely to the Trustee, then and in every such case the Issuer, the Guarantor
and the Trustee shall be restored respectively to their former positions and rights
hereunder, and all rights, remedies and powers of the Issuer, the Guarantor,
the Trustee and the Securityholders shall continue as though no such
proceedings had been taken.

 

SECTION 5.6                     LIMITATIONS ON SUITS BY
SECURITYHOLDERS.  No Holder of any Security of any series or of
any Coupon appertaining thereto shall have any right by virtue or by availing
of any provision of this Indenture to institute any action or proceeding at law
or in equity or in bankruptcy or otherwise upon or under or with respect to this
Indenture or such Security, or for the appointment of a trustee, receiver,
liquidator, custodian or other similar official or for any other remedy
hereunder or thereunder, unless (a) such Holder previously shall have
given to a Responsible Officer of the Trustee written notice of an Event of
Default with respect to Securities of such series and of the continuance
thereof, as hereinbefore provided, and (b) the Holders of not less than
25% in aggregate principal amount of the Securities of such affected series
then Outstanding (treated as a single class) shall have made written request
upon the Trustee to institute such action or proceedings in its own name as
Trustee hereunder and shall have offered to the Trustee reasonable security or
indemnity satisfactory to it against the costs, expenses and liabilities to be
incurred therein or thereby, and (c) the Trustee for 60 days after its
receipt of such notice, request and offer of indemnity shall have failed to
institute any such action or proceeding, and (d) no direction inconsistent
with such written request shall have been given to the Trustee pursuant to Section 5.9;
it being understood and intended, and being expressly covenanted by the taker and
Holder of every Security or

 

32

 

Coupon with every other
taker and Holder and the Trustee, that no one or more Holders of Securities of
any series or Coupons appertaining to such Securities shall have any right in
any manner whatever by virtue or by availing of any provision of this Indenture
or any Security to affect, disturb or prejudice the rights of any other such
taker or Holder of Securities or Coupons appertaining to such Securities, or to
obtain or seek to obtain priority over or preference to any other such taker or
Holder or to enforce any right under this Indenture or any Security, except in
the manner herein provided and for the equal, ratable and common benefit of all
Holders of Securities of the applicable series and Coupons appertaining to such
Securities.  For the protection and
enforcement of the provisions of this Section, each and every Securityholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

 

SECTION 5.7                     UNCONDITIONAL RIGHT OF
SECURITYHOLDERS TO INSTITUTE CERTAIN SUITS. 
Notwithstanding any
other provision in this Indenture and any provision of any Security, the right
of any Holder of any Security or Coupon to receive payment of the principal of
and interest on such Security or Coupon on or after the respective due dates
expressed in such Security or Coupon or the applicable redemption dates
provided for in such Security, or to institute suit for the enforcement of any
such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

 

SECTION 5.8                     POWERS AND REMEDIES
CUMULATIVE; DELAY OR OMISSION NOT WAIVER OF DEFAULT.  Except as provided in Section 5.6, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders of Securities,
Guarantees or Coupons is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

No
delay or omission of the Trustee or of any Holder of Securities, Guarantees or
Coupons to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Event of Default or an
acquiescence therein.  Every power and
remedy given by this Indenture, any Security, Guarantee or law to the Trustee
or to the Holders of Securities, Guarantees or Coupons may be exercised from
time to time, and as often as shall be deemed expedient, by the Trustee or,
subject to Section 5.6, by the Holders of Securities, Guarantees or
Coupons.

 

SECTION 5.9                     CONTROL BY HOLDERS OF
SECURITIES.  The Holders of a majority in aggregate
principal amount of the Securities of each series affected (with each such series
voting as a separate class) at the time Outstanding shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee with respect to the Securities of such series by this Indenture; provided, that such direction shall not be
otherwise than in accordance with law and the provisions of this Indenture; and
provided, further, that (subject to the provisions
of Section 6.1) the Trustee shall have the right to decline to follow any
such direction if (a) the Trustee, being advised by counsel, shall
determine that the action or proceeding so directed may not lawfully be taken;
or (b) if the Trustee by its trust committee of directors or Responsible
Officers of the Trustee shall determine in good faith that the action or

 

33

 

proceedings so directed
would involve the Trustee in personal liability; or (c) if the Trustee in
good faith shall so determine that the actions or forbearances specified in or
pursuant to such direction would be unduly prejudicial to the interests of
Holders of the Securities of all affected series not joining in the giving of
said direction, it being understood that (subject to Section 6.1) the
Trustee shall have no duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders.

 

Nothing
in this Indenture shall impair the right of the Trustee in its discretion to
take any action deemed proper by the Trustee and which is not inconsistent with
such direction or directions by Securityholders.

 

SECTION 5.10              WAIVER OF PAST DEFAULTS.  Prior to the declaration of acceleration of the maturity of the
Securities of any series as provided in Section 5.1, the Holders of a
majority in aggregate principal amount of the Securities of such series at the
time Outstanding (voting as a single class) may on behalf of the Holders of all
such Securities waive any past default or Event of Default described in Section 5.1
and its consequences, except a default in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Security affected.  In the case of
any such waiver, the Issuer, the Trustee and the Holders of all such Securities
shall be restored to their former positions and rights hereunder, respectively,
and such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this Indenture;
but no such waiver shall extend to any subsequent or other default or impair
any right consequent thereon.

 

SECTION 5.11              TRUSTEE TO GIVE NOTICE OF
DEFAULT, BUT MAY WITHHOLD IN CERTAIN CIRCUMSTANCES.  The Trustee shall, within ninety days after the occurrence of a default
with respect to the Securities of any series, give notice of all defaults with
respect to that series known to the Trustee (i) if any Unregistered
Securities of that series are then Outstanding, to the Holders thereof, by
publication at least once in an Authorized Newspaper in the Borough of
Manhattan, The City of New York and at least once in an Authorized Newspaper in
London (and, if required by Section 3.7, at least once in an Authorized
Newspaper in Luxembourg) and (ii) to all Holders of Securities of such
series in the manner and to the extent provided in Section 313(c) of
the Trust Indenture Act, unless in each case such defaults shall have been
cured before the mailing or publication of such notice (the term “default” for
the purpose of this Section being hereby defined to mean any event or
condition which is, or with notice or lapse of time or both would become, an
Event of Default); provided,
that, except in the case of default in the payment of the principal of or
interest on any of the Securities of such series, or in the payment of any
sinking fund installment on 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 or trustees and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Securityholders of such series.

 

SECTION 5.12              RIGHT OF COURT TO REQUIRE
FILING OF UNDERTAKING TO PAY COSTS.  All parties to this Indenture agree, and each
Holder of any Security or Coupon 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, suffered or omitted by it as

 

34

 

Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit,
and that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholder or
group of Securityholders of any series holding in the aggregate more than 10%
in aggregate principal amount of the Securities of such series, or, in the case
of any suit relating to or arising under clause (d) or (g) of Section 5.1
(if the suit relates to Securities of more than one but less than all series),
10% in aggregate principal amount of Securities then Outstanding and affected
thereby, or in the case of any suit relating to or arising under clause (d) or
(g) (if the suit under clause (d) or (g) relates to all the
Securities then Outstanding), or (e) or (f) of Section 5.1, 10%
in aggregate principal amount of all Securities then Outstanding, or to any
suit instituted by any Securityholder for the enforcement of the payment of the
principal of or interest on any Security on or after the due date expressed in
such Security or any date fixed for redemption.

 

ARTICLE VI

CONCERNING THE TRUSTEE

 

SECTION 6.1                     DUTIES AND RESPONSIBILITIES
OF THE TRUSTEE; DURING DEFAULT; PRIOR TO DEFAULT.  Prior to the occurrence of an Event of Default with respect to the
Securities of a particular series and after the curing or waiving of all Events
of Default which may have occurred with respect to such series, the Trustee
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture with respect to such series of Securities.  In case an Event of Default with respect to
the Securities of a series has occurred and has not been cured or waived, the
Trustee shall exercise with respect to such series of Securities such of the
rights and powers vested in it by this Indenture with respect to such series of
Securities, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

 

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

 

(a)                                  prior to the occurrence of an Event of
Default with respect to the Securities of any series and after the curing or
waiving of all such Events of Default with respect to such series which may
have occurred:

 

(i)                                     the duties and obligations of the Trustee
with respect to the Securities of any series shall be determined solely by the
express provisions of this Indenture, and the Trustee shall not be liable
except for the performance of such duties and obligations as are specifically
set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

 

(ii)                                  in the absence of bad faith on the part of
the Trustee, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
statements,

 

35

 

certificates
or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such statements, certificates or opinions
which by any provision hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture but need not
confirm or investigate the accuracy of mathematical calculations or other facts
stated therein;

 

(b)                                 the Trustee shall not be liable for any 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; and

 

(c)                                  the Trustee shall not be liable with respect
to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders pursuant to Section 5.9 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.

 

None
of the provisions contained in this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur personal financial liability in
the performance of any of its duties or in the exercise of any of its rights or
powers, if there shall be reasonable ground for believing that the repayment of
such funds or adequate indemnity against such liability is not reasonably
assured to it.

 

The
provisions of this Section 6.1 are in furtherance of and subject to Section 315
of the Trust Indenture Act.

 

SECTION 6.2                     CERTAIN RIGHTS OF THE
TRUSTEE.  In furtherance of and subject to the Trust
Indenture Act, and subject to Section 6.1:

 

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

 

(b)                                 any request, direction, order or demand of
the Issuer mentioned herein shall be sufficiently evidenced by an Issuer Order
(unless other evidence in respect thereof is specifically prescribed herein or
in the terms established in respect of any series); and any resolution of the
Board of Directors may be evidenced to the Trustee by a copy thereof certified
by the secretary or an assistant secretary of the Guarantor;

 

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

 

(d)                                 the Trustee shall be under no obligation to
exercise any of the trusts or powers vested in it by this Indenture at the
request, order or direction of any of the

 

36

 

Holders
of any series of Securities or any related Guarantees pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the
Trustee reasonable security or indemnity against the costs, expenses and liabilities
which might be incurred therein or thereby;

 

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

 

(f)                                    prior to the occurrence of an Event of
Default hereunder and after the curing or waiving of all Events of Default, 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, consent, order, approval, appraisal, bond, debenture, note,
coupon, security, or other paper or document unless (i) requested in
writing so to do by the Holders of not less than a majority in aggregate
principal amount of the Securities of all series affected then Outstanding
(treated as one class) or (ii) otherwise provided in the terms of any
series of Securities pursuant to Section 2.3; provided, that, if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely to be incurred by it
in the making of such investigation is, in the opinion of the Trustee, not
reasonably assured to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require reasonable security or indemnity
against such expenses or liabilities as a condition to proceeding; the
reasonable expenses of every such investigation shall be paid by the Issuer or,
if paid by the Trustee or any predecessor trustee, shall be repaid by the
Issuer upon demand;

 

(g)                                 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 not regularly in its employ and the Trustee shall
not be responsible for any misconduct or negligence on the part of any such
agent or attorney appointed with due care by it hereunder;

 

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

 

(i)                                     the rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder; and

 

(j)                                     the Trustee may request that the Issuer
deliver a certificate setting forth the names of individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this
Indenture.

 

SECTION 6.3                     TRUSTEE NOT RESPONSIBLE FOR
RECITALS, DISPOSITION OF SECURITIES OR APPLICATION OF PROCEEDS THEREOF.  The recitals contained herein and in the Securities and Guarantees,
except the Trustee’s certificates of

 

37

 

authentication, shall be
taken as the statements of the Issuer or the Guarantor, and the Trustee assumes
no responsibility for the correctness of the same.  The Trustee makes no representation as to the
validity or sufficiency of this Indenture or of the Securities, Guarantees  or Coupons. 
The Trustee shall not be accountable for the use or application by the
Issuer of any of the Securities or of the proceeds thereof.

 

SECTION 6.4                     TRUSTEE AND AGENTS MAY HOLD
SECURITIES, GUARANTEES OR COUPONS; COLLECTIONS, ETC.  The Trustee or any agent of the Issuer or of the Trustee, in its
individual or any other capacity, may become the owner or pledgee of
Securities, Guarantees or Coupons with the same rights it would have if it were
not the Trustee or such agent and may otherwise deal with the Issuer or the
Guarantor and receive, collect, hold and retain collections from the Issuer or
the Guarantor with the same rights it would have if it were not the Trustee or
such agent.

 

SECTION 6.5                     MONEYS HELD BY TRUSTEE.  Subject to the provisions of Section 10.4 hereof, all moneys
received by the Trustee shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by mandatory
provisions of law.  Neither the Trustee
nor any agent of the Issuer or the Trustee shall be under any liability for
interest on any moneys received by it hereunder.

 

SECTION 6.6                     COMPENSATION AND
INDEMNIFICATION OF TRUSTEE AND ITS PRIOR CLAIM.  The Issuer covenants and agrees to pay to the Trustee from time to
time, and the Trustee shall be entitled to, such compensation as the Issuer and
the Trustee shall agree in writing (which shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust), and the
Issuer covenants and agrees to pay or reimburse the Trustee and each
predecessor trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by or on behalf of it in accordance with any of
the provisions of this Indenture (including the reasonable compensation and the
expenses and disbursements of its counsel and of all agents and other persons
not regularly in its employ) except any such expense, disbursement or advance
as may arise from its negligence or bad faith. 
The Issuer also covenants to indemnify each of the Trustee or any
predecessor Trustee and their agents for, and to hold them harmless against,
any and all loss, damage, claims, liability or expense, including taxes (other
than taxes based upon, measured by or determined by the income of the Trustee),
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses of defending itself
against any claim (whether asserted by the Issuer, or any Holder or any other
Person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, or in connection with enforcing the provisions
of this Section, except to the extent that such loss, damage, claim, liability
or expense is due to its own negligence or bad faith.  When the Trustee incurs expenses or renders
services in connection with an Event of Default specified in Section 5.1(e) or
Section 5.1(f), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to
constitute expenses of administration under any applicable bankruptcy,
insolvency or other similar law.  The
obligations of the Issuer under this Section to compensate and indemnify
the Trustee and each predecessor trustee and to pay or reimburse the Trustee
and each predecessor trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture.  Such
additional indebtedness shall be a senior claim to that of the

 

38

 

Securities upon all property
and funds held or collected by the Trustee as such, except funds held in trust
for the benefit of the Holders of particular Securities or Coupons, and the
Securities are hereby subordinated to such senior claim.

 

SECTION 6.7                     RIGHT OF TRUSTEE TO RELY ON
OFFICER’S CERTIFICATE, ETC.  Subject to Sections 6.1 and 6.2, whenever in
the administration of the trusts of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking
or suffering or omitting any action hereunder, such matter (unless other evidence
in respect thereof be herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officer’s Certificate delivered to
the Trustee, and such certificate, in the absence of negligence or bad faith on
the part of the Trustee, shall be full warrant to the Trustee for any action
taken, suffered or omitted by it under the provisions of this Indenture upon
the faith thereof.

 

SECTION 6.8                     INDENTURES NOT CREATING
POTENTIAL CONFLICTING INTERESTS FOR THE TRUSTEE.  The following indenture is hereby specifically described for the
purposes of Section 310(b)(1) of the Trust Indenture Act:  this Indenture with respect to series of
Securities that are of an equal priority.

 

SECTION 6.9                     QUALIFICATION OF TRUSTEE:
CONFLICTING INTERESTS.  The Trustee shall comply with Section 310(b) of
the Trust Indenture Act.

 

SECTION 6.10              PERSONS ELIGIBLE FOR
APPOINTMENT AS TRUSTEE.  The Trustee for each series of Securities
hereunder shall at all times be a corporation or banking association organized
and doing business under the laws of the United States of America, any State
thereof or the District of Columbia, having a combined capital and surplus of
at least $50,000,000, and which is authorized under such laws to exercise
corporate trust powers and is subject to supervision or examination by Federal,
state or District of Columbia authority. 
If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published.  In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.11.

 

The
provisions of this Section 6.10 are in furtherance of and subject to Section 310(a) of
the Trust Indenture Act.

 

SECTION 6.11              RESIGNATION AND REMOVAL;
APPOINTMENT OF SUCCESSOR TRUSTEE.  (a) The Trustee, or any trustee or
trustees hereafter appointed, may at any time resign with respect to one or
more or all series of Securities by giving written notice of resignation to the
Issuer and (i) if any Unregistered Securities of a series affected are
then Outstanding, by giving notice of such resignation to the Holders thereof, by
publication at least once in an Authorized Newspaper in the Borough of
Manhattan, The City of New York, and at least once in an Authorized Newspaper
in London (and, if required by Section 3.7, at least once in an Authorized
Newspaper in Luxembourg), (ii) if any Unregistered Securities of a series

 

39

 

affected are then
Outstanding, by mailing notice of such resignation to the Holders thereof who
have filed their names and addresses with the Trustee pursuant to Section 313(c)(2) of
the Trust Indenture Act at such addresses as were so furnished to the Trustee
and (iii) by mailing notice of such resignation to the Holders of then
Outstanding Registered Securities of each series affected at their addresses as
they shall appear on the registry books. 
Upon receiving such notice of resignation, the Issuer shall promptly
appoint a successor trustee or trustees with respect to the applicable series
by written instrument in duplicate, executed by authority of the Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee or trustees.  If no successor trustee shall have been so
appointed with respect to any series and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning trustee (at
no expense to itself) may petition any court of competent jurisdiction for the
appointment of a successor trustee, or any Securityholder who has been a bona
fide Holder of a Security or Securities of the applicable series for at least
six months may, subject to the provisions of Section 5.12, on behalf of
himself and all others similarly situated, petition any such court for the
appointment of a successor trustee.  Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

 

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

 

(i)                                     the Trustee shall fail to comply with the
provisions of Section 310(b) of the Trust Indenture Act with respect
to any series of Securities after written request therefor by the Issuer or by
any Securityholder who has been a bona fide Holder of a Security or Securities
of such series for at least six months; or

 

(ii)                                  the Trustee shall cease to be eligible in
accordance with the provisions of Section 6.10 and Section 310(a) of
the Trust Indenture Act and shall fail to resign after written request therefor
by the Issuer or by any Securityholder; or

 

(iii)                               the Trustee shall become incapable of acting
with respect to any series of Securities, or shall be adjudged bankrupt or
insolvent, or a receiver or liquidator of the Trustee or of its property shall
be appointed, or any public officer shall take charge or control of the Trustee
or of its property or affairs for the purpose of rehabilitation, conservation
or liquidation;

 

then, in any such case, the
Issuer may remove the Trustee with respect to the applicable series of
Securities and appoint a successor trustee for such series by written instrument,
in duplicate, executed by order of the Board of Directors of the Issuer, one
copy of which instrument shall be delivered to the Trustee so removed and one
copy to the successor trustee, or, subject to the provisions of Section 315(e) of
the Trust Indenture Act, any Securityholder who has been a bona fide Holder of
a Security or Securities 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 and the appointment of a successor
trustee with respect to such series. 
Such court may thereupon, after such notice, if any, as it may deem
proper and so prescribe, remove the Trustee and appoint a successor trustee.

 

40

 

(c)                                  The Holders of a majority in aggregate
principal amount of the Securities of each series at the time outstanding may
at any time remove the Trustee with respect to Securities of such series and
appoint a successor trustee with respect to the Securities of such series by
delivering to the Trustee so removed, to the successor trustee so appointed and
to the Issuer the evidence provided for in Section 7.1 of the action in
that regard taken by the Securityholders.

 

(d)                                 Any resignation or removal of the Trustee
with respect to any series and any appointment of a successor trustee with
respect to such series pursuant to any of the provisions of this Section 6.11
shall become effective upon acceptance of appointment by the successor trustee
as provided in Section 6.12.

 

SECTION 6.12              ACCEPTANCE OF APPOINTMENT BY
SUCCESSOR TRUSTEE.  Any successor trustee appointed as provided
in Section 6.11 shall execute and deliver to the Issuer and to its
predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee with respect to
all or any applicable series shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all
rights, powers, duties and obligations with respect to such series of its
predecessor hereunder, with like effect as if originally named as trustee for
such series hereunder; but, nevertheless, on the written request of the Issuer
or of the successor trustee, upon payment of its charges then unpaid, the
trustee ceasing to act shall, subject to Section 10.4, pay over to the
successor trustee all moneys at the time held by it hereunder and shall execute
and deliver an instrument transferring to such successor trustee all such
rights, powers, duties and obligations. 
Upon request of any such successor trustee, the Issuer shall execute any
and all instruments in writing for more fully and certainly vesting in and confirming
to such successor trustee all such rights and powers.  Any trustee ceasing to act shall,
nevertheless, retain a prior claim upon all property or funds held or collected
by such trustee to secure any amounts then due it pursuant to the provisions of
Section 6.6.

 

If
a successor trustee is appointed with respect to the Securities of one or more
(but not all) series, the Issuer, the predecessor trustee and each successor
trustee with respect to the Securities of any applicable series shall execute
and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the predecessor trustee with respect to
the Securities of any series as to which the predecessor trustee is not retiring
shall continue to be vested in the predecessor trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one
trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such trustees co-trustees of the same trust and that
each such trustee shall be trustee of a trust or trusts under separate
indentures.

 

No
successor trustee with respect to any series of Securities shall accept
appointment as provided in this Section 6.12 unless at the time of such
acceptance such successor trustee shall be qualified under Section 310(b) of
the Trust Indenture Act and eligible under the provisions of Section 6.10.

 

Upon
acceptance of appointment by any successor trustee as provided in this Section 6.12,
the Issuer shall give notice thereof (a) if any Unregistered Securities of
a series

 

41

 

affected are then Outstanding,
to the Holders thereof, by publication of such notice at least once in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and at
least once in an Authorized Newspaper in London (and, if required by Section 3.7,
at least once in an Authorized Newspaper in Luxembourg), (b) if any
Unregistered Securities of a series affected are then Outstanding, to the
Holders thereof who have filed their names and addresses with the Trustee
pursuant to Section 313(c)(2) of the Trust Indenture Act, by mailing
such notice to such Holders at such addresses as were so furnished to the
Trustee (and the Trustee shall make such information available to the Issuer
for such purpose) and (c) to the Holders of Registered Securities of each
series affected, by mailing such notice to such Holders at their addresses as
they shall appear on the registry books. 
If the acceptance of appointment is substantially contemporaneous with
the resignation, then the notice called for by the preceding sentence may be
combined with the notice called for by Section 6.11.  If the Issuer fails to give such notice
within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be given at the expense of the
Issuer.

 

SECTION 6.13              MERGER, CONVERSION,
CONSOLIDATION OR SUCCESSION TO BUSINESS OF TRUSTEE.  Any corporation or banking association into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation or
banking association resulting from any merger, conversion or consolidation to
which the Trustee shall be a party, or any corporation or banking association
succeeding to the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided,
that such corporation or banking association shall be qualified under Section 310(b) of
the Trust Indenture Act and eligible under the provisions of Section 6.10,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.

 

In
case at the time such successor to the Trustee shall succeed to the trusts
created by this Indenture any of the Securities of any series shall have been
authenticated but not delivered, any such successor to the Trustee may adopt
the certificate of authentication of any predecessor trustee and deliver such
Securities so authenticated; and, in case at that time any of the Securities of
any series shall not have been authenticated, any such successor to the Trustee
may authenticate such Securities either in the name of any predecessor
hereunder or in the name of the successor Trustee; and in all such cases such
certificate of authentication shall have the full force which under this
Indenture or the Securities of such series it is provided that the certificate
of authentication of the Trustee shall have; provided,
that the right to adopt the certificate of authentication of any predecessor
trustee or to authenticate Securities of any series in the name of any
predecessor trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

 

SECTION 6.14              PREFERENTIAL COLLECTION OF
CLAIMS AGAINST THE ISSUER.  The Trustee shall comply with Section 311(a) of
the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of
the Trust Indenture Act.  A Trustee who
has resigned or been removed shall be subject to Section 311(a) of
the Trust Indenture Act to the extent indicated.

 

SECTION 6.15              APPOINTMENT OF AUTHENTICATING
AGENT.  As long as any Securities of a series remain
Outstanding, the Trustee may, by an instrument in writing, appoint with the
approval of the Issuer an authenticating agent (the “Authenticating

 

42

 

Agent”) which shall be
authorized to act on behalf of the Trustee to authenticate Securities,
including Securities issued upon exchange, registration of transfer, partial
redemption or pursuant to Section 2.9. 
Securities of each such series authenticated by such Authenticating
Agent shall be entitled to the benefits of this Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee.  Whenever reference is made in this Indenture
to the authentication and delivery of Securities of any series by the Trustee
or to 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 for such series and a Certificate of Authentication
executed on behalf of the Trustee by such Authenticating Agent.  Such Authenticating Agent shall at all times
be a corporation organized and doing business under the laws of the United
States of America or of any State, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least
$45,000,000 (determined as provided in Section 6.10 with respect to the
Trustee) and subject to supervision or examination by Federal or state
authority.

 

Any
corporation into which any 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 any Authenticating Agent shall be
a party, or any corporation succeeding to the corporate agency business of any
Authenticating Agent, shall continue to be the Authenticating Agent with
respect to all series of Securities for which it served as Authenticating Agent
without the execution or filing of any paper or any further act on the part of
the Trustee or such Authenticating Agent. 
Any Authenticating Agent may at any time, and if it shall cease to be
eligible shall, resign by giving written notice of resignation to the Trustee and
to the Issuer.

 

Upon
receiving such a notice of resignation or upon such a termination, or in case
at any time any Authenticating Agent shall cease to be eligible in accordance
with the provisions of this Section 6.15 with respect to one or more
series of Securities, the Trustee shall upon receipt of an Issuer Order appoint
a successor Authenticating Agent, and the Issuer shall provide notice of such
appointment to all Holders of Securities of such series in the manner and to
the extent provided in Section 11.4. 
Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. 
The Issuer agrees to pay to the Authenticating Agent for such series
from time to time reasonable compensation. 
The Authenticating Agent for the Securities of any series shall have no
responsibility or liability for any action taken by it as such at the direction
of the Trustee.

 

Sections
6.2, 6.3, 6.4, 6.6 and 7.3 shall be applicable to any Authenticating Agent.

 

ARTICLE VII

CONCERNING THE SECURITYHOLDERS

 

SECTION 7.1                     EVIDENCE OF ACTION TAKEN BY
SECURITYHOLDERS.  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by a specified percentage in principal amount of the
Securityholders of any or all series may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such specified
percentage of

 

43

 

Securityholders in person or
by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee.  Proof of
execution of any instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Sections 6.1 and
6.2) conclusive in favor of the Trustee and the Issuer, if made in the manner
provided in this Article.

 

SECTION 7.2                     PROOF OF EXECUTION OF
INSTRUMENTS AND OF HOLDING OF SECURITIES. 
Subject to Sections
6.1 and 6.2, the execution of any instrument by a Securityholder or his agent
or proxy may be proved in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee.  The holding
of Registered Securities shall be proved by the Security register or by a
certificate of the registrar thereof.

 

SECTION 7.3                     HOLDERS TO BE TREATED AS
OWNERS.  The Issuer, the Guarantor, the Trustee and
any agent of the Issuer, the Guarantor or the Trustee may deem and treat the
person in whose name any Security shall be registered upon the Security register
for such series as the absolute owner of such Security (whether or not such
Security shall be overdue and notwithstanding any notation of ownership or
other writing thereon) for the purpose of receiving payment of or on account of
the principal of and, subject to the provisions of this Indenture, interest on
such Security and for all other purposes; and neither the Issuer, the
Guarantor, the Trustee nor any agent of the Issuer, the Guarantor or the
Trustee shall be affected by any notice to the contrary.  The Issuer, the Guarantor, the Trustee and
any agent of the Issuer, the Guarantor or the Trustee may treat the Holder of
any Unregistered Security and the Holder of any Coupon as the absolute owner of
such Unregistered Security or Coupon (whether or not such Unregistered Security
or Coupon shall be overdue) for the purpose of receiving payment thereof or on
account thereof and for all other purposes, and neither the Issuer, the
Guarantor, the Trustee, nor any agent of the Issuer, the Guarantor, or the
Trustee shall be affected by any notice to the contrary.  All such payments so made to any such person,
or upon his order, shall be valid, and, to the extent of the sum or sums so
paid, effectual to satisfy and discharge the liability for moneys payable upon
any such Unregistered Security or Coupon.

 

SECTION 7.4                     SECURITIES OWNED BY ISSUER
DEEMED NOT OUTSTANDING.  In determining whether the Holders of the
requisite aggregate principal amount of Outstanding Securities of any or all
series have concurred in any request, demand, authorization, direction, notice,
consent, waiver or other action by Securityholders under this Indenture,
Securities which are owned by the Issuer or any other obligor on the Securities
with respect to which such determination is being made or by any person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Issuer or any other obligor on the Securities with
respect to which such determination is being made shall be disregarded and deemed
not to be Outstanding for the purpose of any such determination, except that
for the purpose of determining whether the Trustee shall be protected in
relying on any such action only Securities which the Trustee knows are so owned
shall be so disregarded.  Securities so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Securities and that the pledgee is not the
Issuer or any other obligor upon the Securities or any person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Issuer or any other obligor on the Securities.  In case of a dispute as to such

 

44

 

right, the advice of counsel
shall be full protection in respect of any decision made by the Trustee in
accordance with such advice.  Upon
request of the Trustee, the Issuer shall furnish to the Trustee promptly an Officer’s
Certificate listing and identifying all Securities, if any, known by the Issuer
to be owned or held by or for the account of any of the above-described
persons; and, subject to Sections 6.1 and 6.2, the Trustee shall be entitled to
accept such Officer’s Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Securities not listed therein are
Outstanding for the purpose of any such determination.

 

SECTION 7.5                     RIGHT OF REVOCATION OF
ACTION TAKEN.  At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 7.1, of the taking of
any action by the Holders of the percentage in aggregate principal amount of
the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action, any Holder of a Security the serial
number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action
may, by filing written notice at the Corporate Trust Office and upon proof of
holding as provided in this Article, revoke such action so far as concerns such
Security.  Except as aforesaid, any such
action taken by the Holder of any Security shall be conclusive and binding upon
such Holder and upon all future Holders and owners of such Security and of any
Securities issued in exchange or substitution therefor or on registration of
transfer thereof, irrespective of whether or not any notation in regard thereto
is made upon any such Security.  Any
action taken by the Holders of the percentage in aggregate principal amount of
the Securities of any or all series, as the case may be, specified in this
Indenture in connection with such action shall be conclusively binding upon the
Issuer, the Trustee and the Holders of all the Securities affected by such
action.

 

ARTICLE VIII

SUPPLEMENTAL INDENTURES

 

SECTION 8.1                     SUPPLEMENTAL INDENTURES
WITHOUT CONSENT OF SECURITYHOLDERS.  The Issuer, when authorized by or pursuant to
a Board Resolution  (which resolution may
provide general terms or parameters for such action and may provide that the
specific terms of such action may be determined in accordance with or pursuant
to an Issuer Order), the Guarantor and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto for one or
more of the following purposes:

 

(a)                                  to convey, transfer, assign, mortgage or
pledge to the Trustee as security for the Securities of one or more series any
property or assets;

 

(b)                                 to evidence the succession of another Person
to the Issuer or the Guarantor, or successive successions, and the assumption
by the successor corporation of the covenants, agreements and obligations of
the Issuer pursuant to Article IX;

 

(c)                                  to add to the covenants of the Issuer or the
Guarantor such further covenants, restrictions, conditions or provisions as the
Issuer, the Guarantor and the Trustee shall consider to be for the protection
of the Holders of Securities or Coupons, and to make the occurrence, or the
occurrence and continuance, of a default in any such additional covenants,
restrictions, conditions or provisions an Event of Default permitting

 

45

 

the
enforcement of all or any of the several remedies provided in this Indenture as
herein set forth; provided, that
in respect of any such additional covenant, restriction, condition or provision
such supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of
other defaults) or may provide for an immediate enforcement upon such an Event
of Default or may limit the remedies available to the Trustee upon such an
Event of Default or may limit the right of the Holders of a majority in
aggregate principal amount of the Securities of such series to waive such an
Event of Default;

 

(d)                                 to cure any ambiguity or to correct or
supplement any provision contained herein or in any supplemental indenture
which may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture, or to make any other provisions as the
Issuer may deem necessary or desirable, provided,
that no such action shall adversely affect the interests of the Holders of the
Securities, Guarantees or Coupons;

 

(e)                                  to establish the forms or terms of Securities
of any series or of the Coupons or Guarantees appertaining to such Securities
as permitted by Sections 2.1 and 2.3;

 

(f)                                    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 6.12; and

 

(g)                                 to change or eliminate any of the provisions
of this Indenture, or to add any new provision to this Indenture, in respect of
one or more series of Securities; provided, however, that any such change,
elimination or addition shall not apply to any Security Outstanding on the date
of such indenture supplemental hereto.

 

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

 

Any
supplemental indenture authorized by the provisions of this Section may be
executed without the consent of the Holders of any of the Securities at the
time outstanding, notwithstanding any of the provisions of Section 8.2.

 

SECTION 8.2                     SUPPLEMENTAL INDENTURES WITH
CONSENT OF SECURITYHOLDERS.

 

(A)                              Except as set forth in paragraph (C) below,
with the consent (evidenced as provided in Article VII) of the Holders of
not less than a majority in aggregate principal amount of the Securities at the
time Outstanding of all series of Senior Securities affected by such
supplemental indenture (voting as one class), the Issuer, when authorized by or

 

46

 

pursuant
to a Board Resolution (which resolution may provide general terms or parameters
for such action and may provide that the specific terms of such action may be
determined in accordance with or pursuant to an Issuer Order), and the Trustee
may, from time to time and at any time, enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as in force and effect at the date of execution thereof) for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of the Securities of each
such series or of the Guarantees and the Coupons appertaining to such
Securities.

 

(B)                                Except as set forth in paragraph (C) below,
with the consent (evidenced as provided in Article VII) of the Holders of
not less than a majority in aggregate principal amount of the Securities at the
time Outstanding of all series of Subordinated Securities affected by such
supplemental indenture (voting as one class), the Issuer, when authorized by or
pursuant to a Board Resolution (which resolution may provide general terms or
parameters for such action and may provide that the specific terms of such
action may be determined in accordance with or pursuant to an Issuer Order),
and the Trustee may, from time to time and at any time, enter into an indenture
or indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as in force and effect at the date of execution thereof)
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the
Securities of each such series or of the Guarantees and the Coupons
appertaining to such Securities.

 

(C)                                No such supplemental indenture shall (i) extend
the final maturity of any Security, or reduce the principal amount thereof, or
premium thereon, if any, or reduce the rate or extend the time of payment of
interest thereon, or reduce any amount payable on redemption thereof, or make
the principal thereof (including any amount in respect of original issue discount),
or premium thereon, if any, or interest thereon payable in any coin or currency
other than that provided in the Securities and Coupons or in accordance with
the terms thereof, or reduce the amount of the principal of an Original Issue
Discount Security that would be due and payable upon an acceleration of the
maturity thereof pursuant to Section 5.1 or the amount thereof provable in
bankruptcy pursuant to Section 5.2, or in the case of Subordinated
Securities of any series, modify any of the Subordination Provisions or the
definition of “Senior Indebtedness” relating to such series in a manner adverse
to the holders of such Subordinated Securities, or alter the provisions of Section 11.11
or 11.12 or impair or affect the right of any Securityholder to institute suit
for the payment thereof when due or, if the Securities provide therefor, any
right of repayment at the option of the Securityholder, in each case without
the consent of the Holder of each Security so affected, or (ii) reduce the
aforesaid percentage of Securities of any series, the consent of the Holders of
which is required for any such supplemental indenture, without the consent of
the Holders of each Security so affected.

 

(D)                               A supplemental indenture which changes or
eliminates any covenant or other provision of this Indenture which has
expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of Holders of Securities or
Guarantees of such series, or of Coupons appertaining to such Securities,

 

47

 

with
respect to such covenant or provision, shall be deemed not to affect the rights
under this Indenture of the Holders of Securities or Guarantees of any other
series or of the Coupons appertaining to such Securities.

 

Upon
the request of the Issuer, accompanied by a copy of a resolution of the Board
of Directors (which resolution may provide general terms or parameters for such
action and may provide that the specific terms of such action may be determined
in accordance with or pursuant to an Issuer Order) certified by the secretary
or an assistant secretary of the Guarantor authorizing the execution of any
such supplemental indenture, and upon the filing with the Trustee of evidence
of the consent of the Holders of the Securities as aforesaid and other
documents, if any, required by Section 7.1, the Trustee shall join with
the Issuer in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.

 

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

 

Promptly
after the execution by the Issuer and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Trustee shall give notice
thereof (i) to the Holders of then Outstanding Registered Securities of
each series affected thereby, by mailing a notice thereof by first-class mail
to such Holders at their addresses as they shall appear on the Security
register, (ii) if any Unregistered Securities of a series affected thereby
are then Outstanding, to the Holders thereof who have filed their names and
addresses with the Trustee pursuant to Section 313(c)(2) of the Trust
Indenture Act, by mailing a notice thereof by first-class mail to such Holders
at such addresses as were so furnished to the Trustee and (iii) if any
Unregistered Securities of a series affected thereby are then Outstanding, to
all Holders thereof, by publication of a notice thereof at least once in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and at
least once in an Authorized Newspaper in London (and, if required by Section 3.7,
at least once in an Authorized Newspaper in Luxembourg), and in each case such
notice shall set forth in general terms the substance of such supplemental
indenture.  Any failure of the Issuer to
give such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

 

SECTION 8.3                     EFFECT OF SUPPLEMENTAL
INDENTURE.  Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be
deemed to be modified and amended in accordance therewith and the respective
rights, limitations of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Issuer and the Holders of Securities of each
series affected thereby shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

 

SECTION 8.4                     DOCUMENTS TO BE GIVEN TO
TRUSTEE.  The Trustee, subject to the provisions of
Sections 6.1 and 6.2, may receive an Officer’s Certificate and an Opinion of
Counsel as conclusive evidence that any supplemental indenture executed
pursuant to this Article 8 complies with the applicable provisions of this
Indenture.

 

48

 

SECTION 8.5                     NOTATION ON SECURITIES IN
RESPECT OF SUPPLEMENTAL INDENTURES.  Securities of any series authenticated and
delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article may bear a notation in form approved by the
Trustee for such series as to any matter provided for by such supplemental
indenture or as to any action taken by Securityholders.  If the Issuer or the Trustee shall so
determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the
Issuer, authenticated by the Trustee and delivered in exchange for the
Securities of such series then Outstanding.

 

ARTICLE IX

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

 

SECTION 9.1                     ISSUER MAY CONSOLIDATE,
ETC., ONLY ON CERTAIN TERMS.  The Issuer shall not consolidate with or
merge into any other Person or transfer or lease its properties and assets
substantially as an entirety to any Person, and the Issuer shall not permit any
other Person to consolidate with or merge into the Issuer, unless:

 

(a)                                  either the Issuer shall be the continuing
Person, or the successor Person (if other than the Issuer) formed by such
consolidation or into which the Issuer is merged or to which the properties and
assets of the Issuer substantially as an entirety are transferred or leased
shall be a corporation, partnership, limited liability company or other entity
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
supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of the Issuer under the
Securities and this Indenture; and

 

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

 

SECTION 9.2                     SUCCESSOR SUBSTITUTED.  The successor formed by such consolidation or into which the Issuer is
merged or to which such transfer or lease is made shall succeed to and be
substituted for, and may exercise every right and power of, the Issuer under
this Indenture with the same effect as if such successor had been named as the
Issuer herein, and thereafter (except in the case of a lease to another Person)
the predecessor shall be relieved of all obligations and covenants under the
Indenture and the Securities and, in the event of such conveyance or transfer,
any such predecessor may be dissolved and liquidated.

 

SECTION 9.3                     OPINION OF COUNSEL TO BE
GIVEN TO TRUSTEE.  The Trustee, subject to the provisions of
Sections 6.1 and 6.2, may receive an Opinion of Counsel as conclusive evidence
that any such consolidation, merger, sale or conveyance, and any such
assumption, complies with the provisions of this Article IX.

 

49

 

ARTICLE X

SATISFACTION AND DISCHARGE OF INDENTURE;

UNCLAIMED MONEYS

 

SECTION 10.1              SATISFACTION AND DISCHARGE
OF INDENTURE.

 

(A)                              If at any time (i) the Issuer shall have
paid or caused to be paid the principal of and interest on all the Securities
of any series Outstanding hereunder and all unmatured Coupons appertaining
thereto (other than Securities of such series and Coupons appertaining thereto
which have been destroyed, lost or stolen and which have been replaced or paid
as provided in Section 2.9) as and when the same shall have become due and
payable, or (ii) the Issuer shall have delivered to the Trustee for
cancellation all Securities of any series theretofore authenticated and all
unmatured Coupons appertaining thereto (other than any Securities of such
series and Coupons appertaining thereto which shall have been destroyed, lost
or stolen and which shall have been replaced or paid as provided in Section 2.9)
or (iii) in the case of any series of Securities where the exact amount
(including the currency of payment) of principal of and interest due on which
can be determined at the time of making the deposit referred to in clause (b) below,
(a) all the Securities of such series and all unmatured Coupons
appertaining thereto not theretofore delivered to the Trustee for cancellation
shall have become due and payable, or are by their terms to become due and
payable within one year or are to be called for redemption within one year
under arrangements satisfactory to the Trustee for the giving of notice of
redemption, and (b) the Issuer shall have irrevocably deposited or caused
to be deposited with the Trustee as trust funds in trust the entire amount in (i) cash
(other than moneys repaid by the Trustee or any paying agent to the Issuer in
accordance with Section 10.4), (ii) in the case of any series of
Securities the payments on which may only be made in Dollars, direct
obligations of the United States of America, backed by its full faith and
credit (“U.S. Government Obligations”), maturing as to principal and interest
at such times and in such amounts as will insure the availability of cash
sufficient to pay at such maturity or upon such redemption, as the case may be,
or (iii) a combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay (a) the principal
and interest on all Securities of such series and Coupons appertaining thereto
on each date that such principal or interest is due and payable and (b) any
mandatory sinking fund payments on the dates on which such payments are due and
payable in accordance with the terms of the Indenture and the Securities of
such series; (x) the principal and interest on all Securities of such series
and Coupons appertaining thereto on each date that such principal or interest
is due and payable and (y) any mandatory sinking fund payments on the dates on
which such payments are due and payable in accordance with the terms of the
Indenture and the Securities of such series; and if, in any such case, the
Issuer shall also pay or cause to be paid all other sums payable hereunder by
the Issuer, then this Indenture shall cease to be of further effect (except as
to (i) rights of registration of transfer and exchange of Securities of
such Series and of Coupons appertaining thereto pursuant to Section 2.8
and the Issuer’s right of optional redemption, if any, (ii) substitution
of mutilated, defaced, destroyed, lost or stolen Securities or Coupons, (iii) rights
of holders of Securities and Coupons appertaining thereto to receive payments
of principal thereof and interest thereon, upon the original stated due dates
therefor (but not upon acceleration), and remaining rights of the Holders to
receive mandatory sinking fund payments, if any, (iv) any optional
redemption rights of such series of Securities to the extent to be exercised to
make such call for redemption within one

 

50

 

year, (v) the rights,
obligations, duties and immunities of the Trustee hereunder, including those
under Section 6.6, (vi) the rights of the Holders of Securities of
such series and Coupons appertaining thereto as beneficiaries hereof with
respect to the property so deposited with the Trustee payable to all or any of
them, and (vii) the obligations of the Issuer under Section 3.2) and
the Trustee, on demand of the Issuer accompanied by an Officer’s Certificate
and an Opinion of Counsel and at the cost and expense of the Issuer, shall
execute proper instruments acknowledging such satisfaction of and discharging
this Indenture; provided, that
the rights of Holders of the Securities and Coupons to receive amounts in
respect of principal of and interest on the Securities and Coupons held by them
shall not be delayed longer than required by then-applicable mandatory rules or
policies of any securities exchange upon which the Securities are listed.  The Issuer agrees to reimburse the Trustee
for any costs or expenses thereafter reasonably and properly incurred and to
compensate the Trustee for any services thereafter reasonably and properly
rendered by the Trustee in connection with this Indenture or the Securities of
such series.

 

(B)                                The following provisions shall apply to the
Securities of each series unless specifically otherwise provided in a Board
Resolution, Officer’s Certificate or indenture supplemental hereto provided
pursuant to Section 2.3.  In
addition to discharge of the Indenture pursuant to the next preceding
paragraph, in the case of any series of Securities the exact amounts (including
the currency of payment) of principal of and interest due on which can be
determined at the time of making the deposit referred to in clause (a) below,
the Issuer shall be deemed to have paid and discharged the entire indebtedness
on all the Securities of such a series and the Coupons appertaining thereto on
the date of the deposit referred to in subparagraph (a) below, and the
provisions of this Indenture with respect to the Securities of such series and
Coupons appertaining thereto shall no longer be in effect (except as to (i) rights
of registration of transfer and exchange of Securities of such series and of
Coupons appertaining thereto pursuant to Section 2.8 and the Issuer’s
right of optional redemption, if any, (ii) substitution of mutilated,
defaced, destroyed, lost or stolen Securities or Coupons, (iii) rights of
Holders of Securities and Coupons appertaining thereto to receive payments of
principal thereof and interest thereon, upon the original stated due dates
therefor (but not upon acceleration), and remaining rights of the Holders to
receive mandatory sinking fund payments, if any, (iv) any optional
redemption rights of such series of Securities to the extent to be exercised to
make such call for redemption within one year, (v) the rights,
obligations, duties and immunities of the Trustee hereunder, (vi) the
rights of the Holders of Securities of such series and Coupons appertaining thereto
as beneficiaries hereof with respect to the property so deposited with the
Trustee payable to all or any of them and (vii) the obligations of the
Issuer under Section 3.2) and the Trustee, at the expense of the Issuer,
shall at the Issuer’s request, execute proper instruments acknowledging the
same, if

 

(a)                                  with reference to this provision the Issuer
has irrevocably deposited or caused to be irrevocably deposited with the
Trustee as trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of such series and
Coupons appertaining thereto (i) cash in an amount, or (ii) in the
case of any series of Securities the payments on which may only be made in
Dollars, U.S. Government Obligations, maturing as to principal and interest at
such times and in such amounts as will insure the availability of cash or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay

 

51

 

(A) the
principal and interest on all Securities of such series and Coupons
appertaining thereto on each date that such principal or interest is due and
payable and (b) any mandatory sinking fund payments on the dates on which
such payments are due and payable in accordance with the terms of the Indenture
and the Securities of such series;

 

(b)                                 such deposit will not result in a breach or
violation of, or constitute a default under, any agreement or instrument to
which the Issuer is a party or by which it is bound;

 

(c)                                  the Issuer has delivered to the Trustee an
Opinion of Counsel based on the fact that (x) the Issuer has received from, or
there has been published by, the IRS a ruling or (y) since the date hereof,
there has been a change in the applicable United States Federal income tax law,
in either case to the effect that, and such opinion shall confirm that, the
Holders of the Securities of such series and Coupons appertaining thereto will
not recognize income, gain or loss for United States Federal income tax
purposes as a result of such deposit, defeasance and discharge and will be
subject to United States Federal income tax on the same amount and in the same
manner and at the same times, as would have been the case if such deposit,
defeasance and discharge had not occurred; and

 

(d)                                 the Issuer has delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to the defeasance contemplated by
this provision have been complied with.

 

(C)                                The Issuer shall be released from its
obligations under Sections 3.6 and 9.1 and unless otherwise provided for in the
Board Resolution, Officer’s Certificate or Indenture supplemental hereto
establishing such series of Securities, from all covenants and other
obligations referred to in Section 2.3(19) or 2.3(21) with respect to such
series of Securities, and any Coupons appertaining thereto, outstanding on and
after the date the conditions set forth below are satisfied (hereinafter, “covenant
defeasance”).  For this purpose, such
covenant defeasance means that, with respect to the Outstanding Securities of
any series, the Issuer may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in such Section, whether
directly or indirectly by reason of any reference elsewhere herein to such Section or
by reason of any reference in such Section to any other provision herein
or in any other document and such omission to comply shall not constitute an
Event of Default under Section 5.1, but the remainder of this Indenture
and such Securities and Coupons shall be unaffected thereby.  The following shall be the conditions to
application of this subsection C of this Section 10.1:

 

(a)                                  The Issuer has irrevocably deposited or
caused to be deposited with the Trustee 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 the Securities of such
series and coupons appertaining thereto, (i) cash in an amount, or (ii) in
the case of any series of Securities the payments on which may only be made in
Dollars, U.S. Government Obligations maturing as to principal and interest at
such times and in such amounts as will insure the availability of cash or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay (A) the principal and

 

52

 

interest
on all Securities of such series and Coupons appertaining thereof and (B) any
mandatory sinking fund payments on the day on which such payments are due and
payable in accordance with the terms of the Indenture and the Securities of
such series;

 

(b)                                 No Event of Default or event which with
notice or lapse of time or both would become an Event of Default with respect
to the Securities shall have occurred and be continuing on the date of such
deposit;

 

(c)                                  Such covenant defeasance shall not cause the
Trustee to have a conflicting interest as defined in Section 6.9 and for
purposes of the Trust Indenture Act with respect to any securities of the
Issuer;

 

(d)                                 Such covenant defeasance shall not result in
a breach or violation of, or constitute a default under any agreement or
instrument to which the Issuer is a party or by which it is bound;

 

(e)                                  Such covenant defeasance shall not cause any
Securities then listed on any registered national securities exchange under the
Exchange Act to be delisted;

 

(f)                                    The Issuer shall have delivered to the
Trustee an Officer’s Certificate and Opinion of Counsel to the effect that the
Holders of the Securities of such series and Coupons appertaining thereto will
not recognize income, gain or loss for United States Federal income tax
purposes as a result of such covenant defeasance and will be subject to United
States 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; and

 

(g)                                 The Issuer shall have delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for relating to the covenant defeasance
contemplated by this provision have been complied with.

 

SECTION 10.2              APPLICATION BY TRUSTEE OF
FUNDS DEPOSITED FOR PAYMENT OF SECURITIES. 
Subject to Section 10.4,
all moneys deposited with the Trustee (or other trustee) pursuant to Section 10.1
shall be held in trust and applied by it to the payment, either directly or
through any paying agent (including the Issuer acting as its own paying agent),
to the Holders of the particular Securities of such series and of Coupons
appertaining thereto for the payment or redemption of which such moneys have
been deposited with the Trustee, of all sums due and to become due thereon for
principal and interest; but such money need not be segregated from other funds
except to the extent required by law.

 

SECTION 10.3              REPAYMENT OF MONEYS HELD BY
PAYING AGENT.  In connection with the satisfaction and
discharge of this Indenture with respect to Securities of any series, all
moneys then held by any paying agent under the provisions of this Indenture
with respect to such series of Securities shall, upon demand of the Issuer, be
repaid to it or paid to the Trustee and thereupon such paying agent shall be
released from all further liability with respect to such moneys.

 

53

 

SECTION 10.4              RETURN OF MONEYS HELD BY
TRUSTEE AND PAYING AGENT UNCLAIMED FOR TWO YEARS.  Any moneys deposited with or paid to the Trustee or any paying agent
for the payment of the principal of or interest on any Security of any series
and of any Coupons attached thereto and not applied but remaining unclaimed for
two years after the date upon which such principal or interest shall have
become due and payable, shall, upon the written request of the Issuer and
unless otherwise required by mandatory provisions of applicable escheat or
abandoned or unclaimed property law, be repaid to the Issuer by the Trustee for
such series or such paying agent, and the Holder of the Securities of such
series and of any Coupons appertaining thereto shall, unless otherwise required
by mandatory provisions of applicable escheat or abandoned or unclaimed
property laws, thereafter look only to the Issuer and the Guarantor for any
payment which such Holder may be entitled to collect, and all liability of the
Trustee or any paying agent with respect to such moneys shall thereupon cease; provided, that the Trustee or such paying
agent, before being required to make any such repayment with respect to moneys
deposited with it for any payment (a) in respect of Registered Securities
of any series, shall at the expense of the Issuer, mail by first-class mail to
Holders of such Securities at their addresses as they shall appear on the Security
register, and (b) in respect of Unregistered Securities of any series,
shall at the expense of the Issuer cause to the published once, in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and once
in an Authorized Newspaper in London (and, if required by Section 3.7,
once in an Authorized Newspaper in Luxembourg), notice, that such moneys remain
and that, after  a date specified
therein, which shall not be less than thirty days from the date of such mailing
or publication, any unclaimed balance of such money then remaining will be
repaid to the Issuer.

 

SECTION 10.5              INDEMNITY FOR U.S.
GOVERNMENT OF OBLIGATIONS.  The Issuer shall pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
U.S. Government Obligations deposited pursuant to Section 10.1 or the
principal or interest received in respect of such obligations.

 

SECTION 10.6              EFFECT ON SUBORDINATION
PROVISIONS.  Unless otherwise expressly established
pursuant to Section 2.3 with respect to the Subordinated Securities of any
series, the provisions of Section 11.13 hereof, insofar as they pertain to
the Subordinated Securities of such series, and the Subordination Provisions
established pursuant to Section 2.3(9) with respect to such series,
are hereby expressly made subject to the provisions for satisfaction and
discharge and defeasance and covenant defeasance set forth in Section 10.1
hereof and, anything herein to the contrary notwithstanding, upon the
effectiveness of such satisfaction and discharge and defeasance and
covenant  defeasance pursuant to Section 10.1
with respect to the Securities of such series, such Securities shall thereupon
cease to be so subordinated and shall no longer be subject to the provisions
of  Section 11.13 or the
Subordination Provisions established pursuant to Section 2.3(9) with
respect to such series and, without limitation to the foregoing, all moneys,
U.S. Government Obligations and other securities or property deposited with the
Trustee (or other qualifying trustee) in trust in connection with such
satisfaction and discharge, defeasance or covenant defeasance, as the case may
be, and all proceeds therefrom may be applied to pay the principal of, premium,
if any, and interest, if any, on, and mandatory sinking fund payments, if any,
with respect to the Securities of such series as and when the same shall become
due and payable notwithstanding the provisions of Section 11.13 or such
Subordination Provisions.

 

54

 

ARTICLE XI

MISCELLANEOUS PROVISIONS

 

SECTION 11.1              INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS OF GENERAL PARTNER OR ISSUER EXEMPT FROM INDIVIDUAL
LIABILITY.  No recourse under or upon any obligation,
covenant or agreement contained in this Indenture, or in any Security, or
because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such, or against any past, present or future stockholder,
officer or director, as such, of the Guarantor, the General Partner or Issuer
or of any successor, either directly or through the Guarantor, the General
Partner or Issuer or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any
legal or equitable proceeding or otherwise, all such liability being expressly
waived and released by the acceptance of the Securities, Guarantees and the
Coupons, if any, appertaining thereto by the Holders thereof and as part of the
consideration for the issue of the Securities, Guarantees and the Coupons
appertaining thereto.

 

SECTION 11.2              PROVISIONS OF INDENTURE FOR
THE SOLE BENEFIT OF PARTIES AND HOLDERS OF SECURITIES AND COUPONS.  Nothing in this Indenture, in the Securities, Guarantees or in the
Coupons appertaining thereto, expressed or implied, shall give or be construed
to give to any person, firm or corporation, other than the parties hereto and
their successors and the Holders of the Securities, Guarantees or Coupons, if
any and, in the case of the Subordinated Securities of any series, the holders
of Senior Indebtedness with respect to such series, any legal or equitable
right, remedy or claim under this Indenture or under any covenant or provision
herein contained, all such covenants and provisions being for the sole benefit
of the parties hereto and their successors and of the Holders of the
Securities, Guarantees or Coupons, if any and, in the case of the Subordinated
Securities of any series, the holders of Senior Indebtedness with respect to
such series.

 

SECTION 11.3              SUCCESSORS AND ASSIGNS OF
ISSUER AND GUARANTOR BOUND BY INDENTURE. 
All the covenants,
stipulations, promises and agreements in this Indenture contained by or in
behalf of the Issuer and the Guarantor shall bind their respective successors
and assigns, whether so expressed or not.

 

SECTION 11.4              NOTICES AND DEMANDS ON
ISSUER, TRUSTEE AND HOLDERS OF SECURITIES AND COUPONS.  Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Trustee or by the Holders of
Securities or Coupons, if any, to or on the Issuer may be given or served by
being deposited postage prepaid, first-class mail (except as otherwise
specifically provided herein) addressed (until another address of the Issuer is
filed by the Issuer with the Trustee) to Plum Creek Timber Company, Inc.,
999 Third Avenue, Suite 4300, Seattle, Washington 98104-4096,
Attention:  Secretary.  Any notice, direction, request or demand by
the Issuer or any Holder of Securities or Coupons, if any, to or upon the
Trustee shall be deemed to have been sufficiently given or served by being
deposited postage prepaid, first-class mail (except as otherwise specifically
provided herein) addressed (until another address of the Trustee is filed by
the Trustee with the Issuer) to 1420 Fifth Avenue, 7th Floor, Seattle, WA  98101, Attention: Thomas Zrust, Vice
President and shall be deemed effective upon receipt by the Trustee.

 

55

 

Where
this Indenture provides for notice to Holders of Registered Securities, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class mail, postage prepaid, to each Holder
entitled thereto, at his last address as it appears in the Security register.  In any case where notice to such Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. 
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice.  Waivers of notice by Holders shall
be filed with the Trustee, but such filing shall not be a condition precedent
to the validity of any action taken in reliance upon such waiver.

 

Where
this Indenture provides for notice to holders of Unregistered Securities, such
notice shall be sufficiently given (unless otherwise expressly provided herein)
by giving notice to such Holders (a) by publication of such notice at
least once in an Authorized Newspaper in the Borough of Manhattan, The City of
New York, and at least once in an Authorized Newspaper in London (and, if
required by Section 3.7, once in an Authorized Newspaper in Luxembourg),
and (b) by mailing such notice to the Holders of Unregistered Securities
who have filed their names and addresses with the Trustee pursuant to Section 313(c)(2) of
the Trust Indenture Act at such addresses as were so furnished to the Trustee.

 

In
case, by reason of the suspension of or irregularities in regular mail service,
it shall be impracticable to mail notice to the Issuer when such notice is
required to the given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be reasonably satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice.

 

SECTION 11.5              OFFICER’S CERTIFICATES AND
OPINIONS OF COUNSEL; STATEMENTS TO BE CONTAINED THEREIN.  Upon any application or demand by the Issuer to the Trustee to take any
action under any of the provisions of this Indenture, the Issuer shall furnish
to the Trustee an Officer’s Certificate stating that all conditions precedent
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent have been complied with, except that in
the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating
to such particular application or demand, no additional certificate or opinion
need be furnished.

 

Each
certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant provided for in
this Indenture shall include (a) a statement that the person making such
certificate or opinion has read such covenant or condition, (b) 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, (c) a statement that, in the opinion of such person, he has made
such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with and (d) a statement as to whether or not, in the opinion of
such person, such condition or covenant has been complied with.

 

56

 

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

 

Any
certificate, statement or opinion of an officer of the Issuer or of counsel may
be based, insofar as it relates to accounting matters, upon a certificate or
opinion of or representations by an accountant or firm of accountants in the
employ of the Issuer, unless such officer or counsel, as the case may be, knows
that the certificate or opinion of or representations with respect to the
accounting matters upon which his certificate, statement or opinion may be
based as aforesaid are erroneous, or in the exercise of reasonable care should
know that  the same are erroneous.

 

Any
certificate or opinion of any independent firm of public accountants filed with
and directed to the Trustee shall contain a statement that such firm is
independent.

 

SECTION 11.6              PAYMENTS DUE ON SATURDAYS,
SUNDAYS AND HOLIDAYS.  If the date of maturity of interest on or
principal of the Securities of any series or any Coupons appertaining thereto
or the date fixed for redemption or repayment of any such Security or Coupon
shall not be a Business Day, then payment of interest or principal need not be
made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the date of maturity or the date fixed for
redemption, and no interest shall accrue for the period after such date.

 

SECTION 11.7              CONFLICT OF ANY PROVISION OF
INDENTURE WITH TRUST INDENTURE ACT.  If and to the extent that any provision of
this Indenture limits, qualifies or conflicts with duties imposed by, or with
another provision (an “incorporated provision”) included in this Indenture by
operation of Sections 310 to 318, inclusive, of the Trust Indenture Act, such
imposed duties or incorporated provision shall control.

 

SECTION 11.8              NEW YORK LAW TO GOVERN.  THIS INDENTURE AND EACH SECURITY AND COUPON
SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK, AND
FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF SUCH STATE INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW.

 

SECTION 11.9              COUNTERPARTS.  This Indenture may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

 

57

 

SECTION 11.10       EFFECT OF HEADINGS.  The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

 

SECTION 11.11       SECURITIES IN A FOREIGN
CURRENCY.  Unless otherwise specified in an Officer’s
Certificate delivered pursuant to Section 2.3 of this Indenture with
respect to a particular series of Securities, whenever for purposes of this
Indenture any action may be taken by the Holders of a specified percentage in
aggregate principal amount of Securities of all series or all series affected
by a particular action at the time Outstanding and, at such time, there are
Outstanding Securities of any series which are denominated in a Foreign
Currency, then the principal amount of Securities of such series which shall be
deemed to be Outstanding for the purpose of taking such action shall be that
amount of Dollars that could be obtained for such amount at the Market Exchange
Rate.  For purposes of this Section 11.11,
Market Exchange Rate shall mean the noon Dollar buying rate in The City of New
York for cable transfers of such currency or currencies as published by the
Federal Reserve Bank of New York as of the most recent available date.  If such Market Exchange Rate is not available
for any reason with respect to such currency, the Trustee shall use, in its
sole discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York or quotations from one or more major banks in
The City of New York or in the country of issue of the currency in question,
which for purposes of the euro shall be any member state of the European Union
that has adopted the euro, as the Trustee shall deem appropriate.  The provisions of this paragraph shall apply
in determining the equivalent principal amount in respect of Securities of a
series denominated in a currency other than Dollars in connection with any
action taken by Holders of Securities pursuant to the terms of this Indenture.

 

All
decisions and determinations of the Trustee regarding the Market Exchange Rate
or any alternative determination provided for in the preceding paragraph shall
be in its sole discretion and shall, in the absence of manifest error, be
conclusive to the extent permitted by law for all purposes and irrevocably
binding upon the Issuer and all Holders.

 

SECTION 11.12       JUDGMENT CURRENCY.  The Issuer 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 interest on the Securities of any series (the “Required Currency”) into a
currency in which a judgment will 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
Required Currency with the Judgment Currency on the day on which final
unappealable judgment is entered, unless such day is not a New York Banking
Day, then, to the extent permitted by applicable law, 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 Required Currency with the
Judgment Currency on the New York Banking Day preceding the day on which final
unappealable judgment is entered 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 subsection (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

 

58

 

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 required by law or executive order to
close.

 

SECTION 11.13       AGREEMENT TO SUBORDINATE.  The Issuer, for itself, its successors and assigns, covenants and
agrees, and each Holder of Subordinated Securities of any series by his
acceptance thereof, likewise covenants and agrees, that the payment of the
principal of (and premium, if any) and interest, if any, on, and mandatory
sinking fund payments, if any, in respect of each and all of the Subordinated
Securities of such series shall be expressly subordinated, to the extent and in
the manner provided in the Subordination Provisions established with respect to
the Subordinated Securities of such series pursuant to Section 2.3(9) hereof,
in right of payment to the prior payment in full of all Senior Indebtedness
with respect to such series.

 

ARTICLE XII

REDEMPTION OF SECURITIES AND SINKING FUNDS

 

SECTION 12.1              APPLICABILITY OF ARTICLE.  The provisions of this Article shall be applicable to the
Securities of any series which are redeemable before their maturity or to any
sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 2.3 for Securities of such series.

 

SECTION 12.2              NOTICE OF REDEMPTION; PARTIAL
REDEMPTIONS.  Notice of redemption to the Holders of
Registered Securities of any series to be redeemed as a whole or in part at the
option of the Issuer shall be given by mailing notice of such redemption by
first class mail, postage prepaid, at least 30 days and not more than 60 days
prior to the date fixed for redemption to such Holders of Securities of such
series at their last addresses as they shall appear upon the registry
books.  Notice of redemption to the
Holders of Unregistered Securities to be redeemed as a whole or in part, who
have filed their names and addresses with the Trustee pursuant to Section 313(c)(2) of
the Trust Indenture Act shall be given by mailing notice of such redemption, by
first class mail, postage prepaid, at least 30 days and not more than 60 prior
to the date fixed for redemption, to such Holders at such addresses as were so
furnished to the Trustee (and, in the case of any such notice given by the
Issuer, the Trustee shall make such information available to the Issuer for
such purpose).  Notice of redemption to
all other Holders of Unregistered Securities shall be published in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and in
an Authorized Newspaper in London (and, if required by Section 3.7, in an
Authorized Newspaper in Luxembourg), in each case, once in each of three
successive calendar weeks, the first publication to be not less than 30 nor
more than 60 days prior to the date fixed for redemption.  Any notice which is mailed in the manner
herein provided shall be conclusively presumed to have been duly given, whether
or not the Holder receives the notice. 
Failure to give notice by mail, or any defect in the notice to the
Holder of any Security of a series designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of
such Security of such series.

 

59

 

The
notice of redemption to each such Holder shall specify the principal amount of
each Security of such series held by such Holder to be redeemed, the date fixed
for redemption, the redemption price, the place or places of payment, that
payment will be made upon presentation and surrender of such Securities and, in
the case of Securities with Coupons attached thereto, of all Coupons
appertaining thereto maturing after the date fixed for redemption, that such
redemption is pursuant to the mandatory or optional sinking fund, or both, if
such be the case, that interest accrued to the date fixed for redemption will
be paid as specified in such notice and that on and after said date interest
thereon or on the portions thereof to be redeemed will cease to accrue.  In case any Security of a series is to be
redeemed in part only, the notice of redemption to Holders of Securities of the
series shall state the portion of the principal amount thereof to be redeemed
and shall state that on and after the date fixed for redemption, upon surrender
of such Security, a new Security or Securities of such series in principal
amount equal to the unredeemed portion thereof will be issued.

 

The
notice of redemption of Securities of any series to be redeemed at the option
of the Issuer shall be given by the Issuer or, at the Issuer’s request, by the
Trustee in the name and at the expense of the Issuer.

 

On
or before the redemption date specified in the notice of redemption given as
provided in this Section, the Issuer will deposit with the Trustee or with one
or more paying agents (or, if the Issuer is acting as its own paying agent, set
aside, segregate and hold in trust as provided in Section 3.4) an amount
of money sufficient to redeem on the redemption date all the Securities of such
series so called for redemption at the appropriate redemption price, together
with accrued interest to the date fixed for redemption.  The Issuer will deliver to the Trustee at
least 70 days prior to the date fixed for redemption, or such shorter period as
shall be acceptable to the Trustee, an Officer’s Certificate stating the aggregate
principal amount of Securities to be redeemed. 
In case of a redemption at the election of the Issuer prior to the
expiration of any restriction on such redemption, the Issuer shall deliver to
the Trustee, prior to the giving of any notice of redemption to Holders
pursuant to this Section, an Officer’s Certificate stating that such
restriction has been complied with.

 

If
less than all the Securities of a series are to be redeemed, the Trustee shall
select, in such manner as it shall deemed appropriate and fair, in its sole
discretion, Securities of such series to be redeemed in whole or in part.  Securities may be redeemed in part in
multiples equal to the minimum authorized denomination for Securities of such
series or any multiple thereof.  The Trustee
shall promptly notify the Issuer in writing of the Securities of such series
selected for redemption and, in the case of any Securities of such series
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 of any series shall relate, in the case of any Security redeemed or
to be redeemed only in part, to the portion of the principal amount of such Security
which has been or is to be redeemed.

 

SECTION 12.3              PAYMENT OF SECURITIES CALLED
FOR REDEMPTION.  If notice of redemption has been given as
above provided, the Securities or portions of Securities specified in such
notice shall become due and payable on the date and at the place stated in such
notice at the applicable redemption price, together with interest accrued to
the date fixed for redemption, and on and after said date (unless the Issuer
shall default in the payment of such Securities at the redemption price,
together with interest accrued to said date)

 

60

 

interest on the Securities
or portions of Securities so called for redemption shall cease to accrue, and
the unmatured Coupons, if any, appertaining thereto shall be void, and, except
as provided in Sections 6.5 and 10.4, such Securities shall cease from and
after the date fixed for redemption to be entitled to any benefit or security
under this Indenture, and the Holders thereof shall have no right in respect of
such Securities except the right to receive the redemption price thereof and
unpaid interest to the date fixed for redemption.  On presentation and surrender of such
Securities at a place of payment specified in said notice, together with all
Coupons, if any, appertaining thereto maturing after the date fixed for
redemption, said Securities or the specified portions thereof shall be paid and
redeemed by the Issuer at the applicable redemption price, together with
interest accrued thereon to the date fixed for redemption; provided, that
payment of interest becoming due on or prior to the date fixed for redemption
shall be payable in the case of Securities with Coupons attached thereto, to
the Holders of the Coupons for such interest upon surrender thereof, and in the
case of Registered Securities, to the Holder of such Registered Securities
registered as such on the relevant record date, subject to the terms and
provisions of Section 2.3 and 2.7 hereof.

 

If
any Security called for redemption shall not be so paid upon surrender thereof
for redemption, the principal shall, until paid or duly provided for, bear
interest from the date fixed for redemption at the rate of interest or Yield to
Maturity (in the case of an Original Issue Discount Security) borne by such
Security.

 

If
any Security with Coupons attached thereto is surrendered for redemption and is
not accompanied by all appurtenant Coupons maturing after the date fixed for
redemption, the surrender of such missing Coupon or Coupons may be waived by
the Issuer and the Trustee, if there be furnished to each of them such security
or indemnity as they may require to save each of them harmless.

 

Upon
presentation of any Security redeemed in part only, the Issuer shall execute
and the Trustee shall authenticate and deliver to or on the order of the Holder
thereof, at the expense of the Issuer, a new Security or Securities of such
series, of authorized denominations, in principal amount equal to the
unredeemed portion of the Security so presented.

 

SECTION 12.4              EXCLUSION OF CERTAIN
SECURITIES FROM ELIGIBILITY FOR SELECTION FOR REDEMPTION.  Securities shall be excluded from eligibility for selection for
redemption if they are identified by registration and certificate number in an
Officer’s Certificate delivered to the Trustee at least 40 days prior to the
last date on which notice of redemption may be given as being owned of record
and beneficially by, and not pledged or hypothecated by, either (a) the
Issuer or (b) an entity specifically identified in such written statement
as directly or indirectly controlling or controlled by or under direct or
indirect common control with the Issuer.

 

SECTION 12.5              MANDATORY AND OPTIONAL
SINKING FUNDS.  The minimum amount of any sinking fund
payment provided for by the terms of the 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 the Securities of any series
is herein referred to as an “optional sinking fund payment.”  The date on which a sinking fund payment is
to be made is herein referred to as the “sinking fund payment date.”

 

61

 

In
lieu of making all or any part of any mandatory sinking fund payment with
respect to any series of Securities in cash, the Issuer may at its option (a) deliver
to the Trustee Securities of such series theretofore purchased or otherwise
acquired (except upon redemption pursuant to the mandatory sinking fund) by the
Issuer or receive credit for Securities of such series (not previously so
credited) theretofore purchased or otherwise acquired (except as aforesaid) by
the Issuer and delivered to the Trustee for cancellation pursuant to Section 2.10,
(b) receive credit for optional sinking fund payments (not previously so
credited) made pursuant to this Section, or (c) receive credit for
Securities of such series (not previously so credited) redeemed by the Issuer
through any optional redemption provision contained in the terms of such
series.  Securities so delivered or
credited shall be received or credited by the Trustee at the sinking fund
redemption price specified in such Securities.

 

On
or before the 60th day next preceding each sinking fund payment date for any
series, the Issuer will deliver to the Trustee an Officer’s Certificate (which
need not contain the statements required by Section 11.5) (a) specifying
the portion of the mandatory sinking fund payment to be satisfied by payment of
cash and the portion to be satisfied by credit of Securities of such series and
the basis for such credit, (b) stating that none of the Securities of such
series has theretofore been so credited, (c) stating that no defaults in
the payment of interest or Events of Default with respect to such series have
occurred (which have not been waived or cured) and are continuing and (d) stating
whether or not the Issuer intends to exercise its right to make an optional
sinking fund payment with respect to such series and, if so, specifying the
amount of such optional sinking fund payment which the Issuer intends to pay on
or before the next succeeding sinking fund payment date.  Any Securities of such series to be credited
and required to be delivered to the Trustee in order for the Issuer to be entitled
to credit therefor as aforesaid which have not theretofore been delivered to
the Trustee shall be delivered for cancellation pursuant to Section 2.10
to the Trustee with such Officer’s Certificate (or reasonably promptly
thereafter if acceptable to the Trustee). 
Such Officer’s Certificate shall be irrevocable and upon its receipt by
the Trustee, the Issuer shall become unconditionally obligated to make all the
cash payments or payments therein referred to, if any, on or before the next
succeeding sinking fund payment date. 
Failure of the Issuer, on or before any such 60th day, to deliver such
Officer’s Certificate and Securities specified in this paragraph, if any, shall
not constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Issuer (i) that the mandatory sinking fund
payment for such series due on the next succeeding sinking fund payment date
shall be paid entirely in cash without the option to deliver or credit
Securities of such series in respect thereof and (ii) that the Issuer will
make no optional sinking fund payment with respect to such series as provided
in this Section.

 

If
the sinking fund payment or payments (mandatory or optional or both) to be made
in cash on the next succeeding sinking fund payment date plus any unused
balance of any preceding sinking fund payments made in cash shall exceed
$50,000 (or the equivalent thereof in any Foreign Currency) or a lesser sum in
Dollars (or the equivalent thereof in any Foreign Currency) if the Issuer shall
so request with respect to the Securities of any particular series, such cash
shall be applied on the next succeeding sinking fund payment date to the
redemption of Securities of such series at the sinking fund redemption price
together with accrued interest to the date fixed for redemption.  If such amount shall be $50,000 (or the
equivalent thereof in any Foreign Currency) or less and the Issuer makes no
such request then it shall be carried over until a sum in excess of $50,000 (or
the equivalent thereof in any Foreign Currency) is available.  The Trustee shall select, in the manner
provided in Section 12.2, for redemption on such sinking fund

 

62

 

payment date a sufficient
principal amount of Securities of such series to absorb said cash, as nearly as
may be, and shall (if requested in writing by the Issuer) inform the Issuer of
the serial numbers of the Securities of such series (or portions thereof) so
selected.  Securities shall be excluded
from eligibility for redemption under this Section if they are identified
by registration and certificate number in an Officer’s Certificate delivered to
the Trustee at least 60 days prior to the sinking fund payment date as being
owned of record and beneficially by, and not pledged or hypothecated by, either
(a) the Issuer or (b) an entity specifically identified in such
Officer’s Certificate as directly or indirectly controlling or controlled by or
under direct or indirect common control with the Issuer.  The Trustee, in the name and at the expense
of the Issuer (or the Issuer, if it shall so request the Trustee in writing)
shall cause notice of redemption of the Securities of such series to be given
in substantially the manner provided in Section 12.2 (and with the effect
provided in Section 12.3) for the redemption of Securities of such series
in part at the option of the Issuer.  The
amount of any sinking fund payments not so applied or allocated to the
redemption of Securities of such series shall be added to the next cash sinking
fund payment for such series and, together with such payment, shall be applied
in accordance with the provisions of this Section.  Any and all sinking fund moneys held on the
stated maturity date of the Securities of any particular series (or earlier, if
such maturity is accelerated), which are not held for the payment or redemption
of particular Securities of such series shall be applied, together with other
moneys, if necessary, sufficient for the purpose, to the payment of the principal
of, and interest on, the Securities of such series at maturity.

 

On
or before each sinking fund payment date, the Issuer shall pay to the Trustee
in cash or shall otherwise provide for the payment of all interest accrued to
the date fixed for redemption on Securities to be redeemed on the next
following sinking fund payment date.

 

The
Trustee shall not redeem or cause to be redeemed any Securities of a series
with sinking fund moneys or give any notice of redemption of Securities for
such series by operation of the sinking fund during the continuance of a
default in payment of interest on such Securities or of any Event of Default
except that, where the giving of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Issuer a sum
sufficient for such redemption.  Except
as aforesaid, any moneys in the sinking fund for such series at the time when
any such default or Event of Default shall occur, and any moneys thereafter
paid into the sinking fund, shall, during the continuance of such default or
Event of Default be deemed to have been collected under Article Five and
held for the payment of all such Securities. 
In case such Event of Default shall have been waived as provided in Section 5.10
or the default cured on or before the sixtieth day preceding the sinking fund
payment date in any year, such moneys shall thereafter be applied on the next
succeeding sinking fund payment date in accordance with this Section to
the redemption of such Securities.

 

ARTICLE XIII

THE GUARANTEES

 

SECTION 13.1              GUARANTEES.  The provisions of this Article XIII shall be applicable to the
Securities, Coupons and Guarantees.  The
Guarantor (which term includes any successor Person under this Indenture) for
consideration received hereby unconditionally and irrevocably guarantees on a
senior basis (each a “Guarantee”, and collectively, the “Guarantees”)

 

63

 

to the Holders from time to
time of the Securities (a) the full and prompt payment of the principal of
and any premium, if any, on any Security when and as the same shall become due,
whether at the maturity thereof, by acceleration, redemption or otherwise and (b) the
full and prompt payment of any interest on any Security when and as the same
shall become due and payable.  Each and
every default in the payment of the principal of or interest or any premium on
any Security shall give rise to a separate cause of action hereunder, and
separate suits may be brought hereunder as each cause of action arises.  The obligations of the Guarantor hereunder
shall be evidenced by Guarantees accompanying the Securities issued hereunder.

 

An
Event of Default under this Indenture or the Security shall constitute an event
of default under the Guarantees, and shall entitle the Holders to accelerate
the obligations of the Guarantor hereunder in the same manner and to the same
extent as the obligations of the Issuer.

 

The
obligations of the Guarantor hereunder shall be as principal and not merely as
surety, shall be absolute and unconditional and shall remain in full force and
effect until the entire principal and interest and any premium on the
Securities shall have been paid or provided for in accordance with provisions
of this Indenture, and such obligations shall not be affected, modified or
impaired upon the happening from time to time of any event, including without
limitation any of the following, whether or not with notice to, or the consent
of, the Guarantor:

 

(a)                                  the failure to give notice to the Guarantor
of the occurrence of an Event of Default;

 

(b)                                 the waiver, surrender, compromise,
settlement, release or termination of the payment, performance or observance by
the Issuer or the Guarantor of any or all of the obligations, covenants or
agreements of either of them contained in this Indenture or the Securities;

 

(c)                                  the acceleration, extension or any other
changes in the time for payment of any principal of or interest or any premium
on any Security or for any other payment under this Indenture or of the time
for performance of any other obligations, covenants or agreements under or
arising out of this Indenture or the Securities;

 

(d)                                 the modification or amendment (whether
material or otherwise) of any obligation, covenant or agreement set forth in
this Indenture or the Securities;

 

(e)                                  the taking or the omission of any of the
actions referred to in this Indenture and in any of the actions under the
Securities;

 

(f)                                    any failure, omission, delay or lack on the
part of the Trustee to enforce, assert or exercise any right, power or remedy
conferred on the Trustee in this Indenture, or any other action or acts on the
part of the Trustee or any of the Holders from time to time of the Securities;

 

(g)                                 the voluntary or involuntary liquidation,
dissolution, sale or other disposition of all or substantially all the assets,
marshaling of assets and liabilities, receivership, insolvency, bankruptcy,
assignment for the benefit of creditors, reorganization, arrangement,
composition with creditors or readjustment of, or

 

64

 

other
similar proceedings affecting the Guarantor or the Issuer or any of the assets
of any of them, or any allegation or contest of the validity of the Guarantee
in any such proceeding;

 

(h)                                 to the extent permitted by law, the release
or discharge by operation of law of the Guarantor from the performance or
observance of any obligation, covenant or agreement contained in this
Indenture;

 

(i)                                     to the extent permitted by law, the release
or discharge by operation of law of the Issuer from the performance or
observance of any obligation, covenant or agreement contained in this
Indenture;

 

(j)                                     the default or failure of the Issuer or the
Trustee fully to perform any of its obligations set forth in this Indenture or
the Securities;

 

(k)                                  the invalidity, irregularity or
unenforceability of this Indenture or the Securities or any part of any
thereof;

 

(l)                                     any judicial or governmental action affecting
the Issuer or any Securities or consent or indulgence granted by the Issuer by
the Holders or by the Trustee; or

 

(m)                               the recovery of any judgment against the
Issuer or any action to enforce the same or any other circumstance which might constitute
a legal or equitable discharge of a surety or guarantor.

 

The
Guarantees shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Issuer for liquidation or
reorganization, should the Issuer become insolvent or make an assignment for
the benefit of creditors or should a receiver or trustee be appointed for all
or any significant part of the Issuer’s assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated, as the case
may be, if at any time any payment in respect of the Securities is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee on the Securities, whether as a “voidable preference,”
“fraudulent transfer” or otherwise, all as though such payment had not been
made.  In the event that any payment, or
any part there, is rescinded, reduced, restored or returned, the Securities
shall, to the fullest extent permitted by laws, be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced, restored or
returned.

 

The
Guarantor shall be subrogated to all rights of the Holder of any Security
against the Issuer in respect of any amounts paid to the Trustee or such Holder
by the Guarantor pursuant to the provisions of its Guarantee; provided,
however, that the Guarantor shall be entitled to enforce, or to receive any
payments arising out of or based upon, such right of subrogation until the
principal of, and premium, if any, and interest on, and any other amounts
payable with respect to, all Securities shall have been paid in full and all
other obligations contained in the Securities and this Indenture shall have
been performed.  If any amount shall be
paid to the Guarantor in violation of the preceding sentence and all amounts
payable in respect of the Securities shall not have been paid in full, such
amount shall be deemed to have been paid to the Guarantor for the benefit of,
and held in trust for the benefit of, the Holders, and shall forthwith be paid
to the Trustee for the benefit of the Holders to be credited and applied upon

 

65

 

such amounts.  The Guarantor acknowledges that it will
receive direct and indirect benefits from the issuance of the Securities
pursuant to this Indenture.

 

The
Guarantor shall have the right to seek contribution from any non-paying
Guarantor so long as the exercise of such right does not impair the rights of
the Holders under the Guarantee.  The Guarantee
set forth in this Section 13.1 shall not be valid and obligatory for any
purpose with respect to a Security until the certificate of authentication of
such Security shall have been signed by or on behalf of the Trustee.  The Guarantee is a guarantee of payment and
not of collection.

 

If
an officer of the Guarantor whose signature is on this Indenture or a Security
no  longer holds that office at the time
the Trustee authenticates such Security or at any time thereafter, the
Guarantor’s Guarantee of such Security shall be valid nevertheless.

 

The
delivery of any Security by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of any Guarantee set forth in this
Indenture on behalf of the Guarantor.

 

SECTION 13.2              PROCEEDINGS AGAINST THE
GUARANTOR.  In the event of a default in the payment of
principal of or any premium on any Security when and as the same shall become
due, whether at the Stated Maturity thereof, by acceleration, call for
redemption or otherwise, or in the event of a default in the payment of any
interest on any Security when and as the same shall become due, the Trustee
shall have the right to proceed first and directly against the Guarantor under
this Indenture without first proceeding against the Issuer or exhausting any
other remedies which it may have and without resorting to any other Security
held by the Trustee.

 

The
Trustee shall have the right, power and authority to do all things it deems
necessary or otherwise advisable to enforce the provisions of this Indenture
relating to the Guarantees and protect the interests of the Holders of the
Securities and, in the event of a default in payment of the principal of or any
premium on any Security when and as the same shall become due, whether at the
Stated Maturity thereof, by acceleration, call for redemption or otherwise, or
in the event of a default in the payment of any interest on any Security when
and as the same shall become due, the Trustee may institute or appear in such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any of its rights and the rights of the Holders, whether
for the specific enforcement of any covenant or agreement in this Indenture
relating to the Guarantee or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy. Without limiting the generality
of the foregoing, in the event of a default in payment of the principal of or
interest or any premium on any Security when due, the Trustee may institute a
judicial proceeding for the collection of the sums so due and unpaid, and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Guarantor and collect the moneys adjudged or decreed to be payable
in the manner provided by law out of the property of the Guarantor, wherever
situated.

 

SECTION 13.3              GUARANTEES FOR BENEFIT OF
HOLDERS OF SECURITIES.  The Guarantees contained in this Indenture
are entered into by the Guarantor for the benefit of the Holders from time to
time of the Securities.  Such provisions
shall not be deemed to create any right in, or to be in whole or in part for
the benefit of, any person other than

 

66

 

the Trustee, the Guarantor,
the Holders from time to time of the Securities, and their permitted successors
and assigns.

 

SECTION 13.4              ADDITIONAL GUARANTORS.  Any Person may become a Guarantor by executing and delivering to the
Trustee (a) a supplemental indenture in form and substance satisfactory to
the Trustee, which subjects such person to the provisions of this Indenture as
a Guarantor, and (b) an Opinion of Counsel to the effect that such
supplemental indenture has been duly authorized and executed by such person and
constitutes the legal, valid, binding and enforceable obligation of such person
(subject to such customary exceptions concerning fraudulent conveyance laws,
creditors’ rights and equitable principles as may be acceptable to the Trustee
in its discretion).

 

67

 

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

 

 

	
   

  	
  PLUM CREEK TIMBERLANDS,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  PLUM CREEK TIMBER I,
  L.L.C.

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  PLUM CREEK TIMBER COMPANY,
  INC.

  
	
   

  	
   

  	
   

  	
   its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ William R. Brown

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  William R. Brown

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President
  and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLUM CREEK TIMBER COMPANY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ William R. Brown

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William R. Brown

  
	
   

  	
   

  	
   

  	
  Title: Executive Vice
  President and

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  US BANK NATIONAL
  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Thomas Zrust

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas Zrust

  
	
   

  	
   

  	
  Title

  	
  Vice President

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