Document:

Exhibit 4(c)
 

Aon Corporation

and

THE BANK OF NEW YORK TRUST
COMPANY, N.A., Trustee

INDENTURE

Dated as of
______________________

Senior Subordinated Debt
Securities

 

   
 

CROSS-REFERENCE SHEET*

BETWEEN

Provisions of Sections 310
through 318(a) of the Trust Indenture Act of 1939

and the within Indenture between Aon Corporation and

U.S. Bank Trust National Association, Trustee:

	
  SECTION OF ACT

  	
   

  	
  SECTION OF INDENTURE

  
	
   

  	
   

  	
   

  
	
  310(a)(1) and (2)

  	
   

  	
  7.09

  
	
  310(a)(3) and(4)

  	
   

  	
  Not applicable

  
	
  310(b)

  	
   

  	
  7.08 and 7.10(b)

  
	
  310(c)

  	
   

  	
  Not applicable

  
	
  311(a) and (b)

  	
   

  	
  7.13

  
	
  311(c)

  	
   

  	
  Not applicable

  
	
  312(a)

  	
   

  	
  5.01 and 5.02(a)

  
	
  312(b) and (c)

  	
   

  	
  5.02(b) and (c)

  
	
  313(a)

  	
   

  	
  5.04(a)

  
	
  313(b)(1)

  	
   

  	
  Not applicable

  
	
  313(b)(2)

  	
   

  	
  5.04(b)

  
	
  313(c)

  	
   

  	
  5.04(c)

  
	
  313(d)

  	
   

  	
  5.04(d)

  
	
  314(a)

  	
   

  	
  5.03

  
	
  314(b)

  	
   

  	
  Not applicable

  
	
  314(c)(1) and (2)

  	
   

  	
  17.04

  
	
  314(c)(3)

  	
   

  	
  Not applicable

  
	
  314(d)

  	
   

  	
  Not applicable

  
	
  314(e)

  	
   

  	
  17.04

  
	
  314(f)

  	
   

  	
  Not applicable

  
	
  315(a), (c) and (d)

  	
   

  	
  7.01

  
	
  315(b)

  	
   

  	
  6.07

  
	
  315(e)

  	
   

  	
  6.08

  
	
  316(a)(1)

  	
   

  	
  6.01 and 6.06

  
	
  316(a)(2)

  	
   

  	
  Omitted

  
	
  316(a) last sentence

  	
   

  	
  8.04

  
	
  316(b)

  	
   

  	
  6.04

  
	
  317(a)

  	
   

  	
  6.02

  
	
  317(b)

  	
   

  	
  4.03(a)

  
	
  318(a)

  	
   

  	
  17.06

  
	
   

  	
   

  	
   

  

* This Cross-Reference
Sheet is not part of the Indenture.

 

 

TABLE OF CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ONE DEFINITIONS

  	
   

  	
  7

  
	
  Section 1.01

  	
   

  	
  Definitions

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWO ISSUE, EXECUTION, REGISTRATION AND
  EXCHANGE OF SECURITIES

  	
   

  	
  14

  
	
  Section 2.01

  	
   

  	
  Amount Unlimited; Issuable in Series

  	
   

  	
  14

  
	
  Section 2.02

  	
   

  	
  Form of Trustee’s Certificate of Authentication

  	
   

  	
  17

  
	
  Section 2.03

  	
   

  	
  Form, Execution, Authentication, Delivery and Dating
  of Securities

  	
   

  	
  17

  
	
  Section 2.04

  	
   

  	
  Denominations, Record Date

  	
   

  	
  19

  
	
  Section 2.05

  	
   

  	
  Exchange and Registration of Transfer of Securities

  	
   

  	
  19

  
	
  Section 2.06

  	
   

  	
  Temporary Securities

  	
   

  	
  22

  
	
  Section 2.07

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Securities

  	
   

  	
  22

  
	
  Section 2.08

  	
   

  	
  Securities in Global Form

  	
   

  	
  23

  
	
  Section 2.09

  	
   

  	
  Cancellation

  	
   

  	
  24

  
	
  Section 2.10

  	
   

  	
  Computation of Interest

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THREE REDEMPTION OF SECURITIES

  	
   

  	
  25

  
	
  Section 3.01

  	
   

  	
  Redemption of Securities, Applicability of Article

  	
   

  	
  25

  
	
  Section 3.02

  	
   

  	
  Notice of Redemption, Selection of Securities

  	
   

  	
  25

  
	
  Section 3.03

  	
   

  	
  Payment of Securities Called for Redemption

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR PARTICULAR COVENANTS OF THE COMPANY

  	
   

  	
  27

  
	
  Section 4.01

  	
   

  	
  Payment of Principal, Premium, Interest and
  Additional Amounts

  	
   

  	
  27

  
	
  Section 4.02

  	
   

  	
  Offices for Notices and Payments, Etc.

  	
   

  	
  27

  
	
  Section 4.03

  	
   

  	
  Provisions as to Paying Agent

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FIVE SECURITYHOLDER LISTS AND REPORTS BY THE
  COMPANY AND THE TRUSTEE

  	
   

  	
  29

  
	
  Section 5.01

  	
   

  	
  Securityholder Lists

  	
   

  	
  29

  
	
  Section 5.02

  	
   

  	
  Preservation and Disclosure of Lists

  	
   

  	
  30

  
	
  Section 5.03

  	
   

  	
  Reports by the Company

  	
   

  	
  31

  
	
  Section 5.04

  	
   

  	
  Reports by the Trustee

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX REMEDIES ON DEFAULT

  	
   

  	
  33

  
	
  Section 6.01

  	
   

  	
  Events of Default

  	
   

  	
  33

  
	
  Section 6.02

  	
   

  	
  Payment of Securities on Default; Suit Therefor

  	
   

  	
  35

  
	
  Section 6.03

  	
   

  	
  Application of Moneys Collected by Trustee

  	
   

  	
  36

  

 3
 

 

 

	
  Section 6.04

  	
   

  	
  Proceedings by Securityholders

  	
   

  	
  37

  
	
  Section 6.05

  	
   

  	
  Remedies Cumulative and Continuing

  	
   

  	
  38

  
	
  Section 6.06

  	
   

  	
  Direction of Proceedings

  	
   

  	
  38

  
	
  Section 6.07

  	
   

  	
  Notice of Defaults

  	
   

  	
  38

  
	
  Section 6.08

  	
   

  	
  Undertaking to Pay Costs

  	
   

  	
  39

  
	
  Section 6.09

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN CONCERNING THE TRUSTEE

  	
   

  	
  40

  
	
  Section 7.01

  	
   

  	
  Duties and Responsibilities of Trustee

  	
   

  	
  40

  
	
  Section 7.02

  	
   

  	
  Reliance on Documents,
  Opinions, Etc.

  	
   

  	
  41

  
	
  Section 7.03

  	
   

  	
  No Responsibility for Recitals, Etc.

  	
   

  	
  41

  
	
  Section 7.04

  	
   

  	
  Ownership of Securities or Coupons

  	
   

  	
  42

  
	
  Section 7.05

  	
   

  	
  Moneys to be Held in Trust

  	
   

  	
  42

  
	
  Section 7.06

  	
   

  	
  Compensation and Expenses of Trustee

  	
   

  	
  42

  
	
  Section 7.07

  	
   

  	
  Officer’s Certificate as Evidence

  	
   

  	
  42

  
	
  Section 7.08

  	
   

  	
  Conflicting Interest of Trustee

  	
   

  	
  43

  
	
  Section 7.09

  	
   

  	
  Eligibility of Trustee

  	
   

  	
  47

  
	
  Section 7.10

  	
   

  	
  Resignation or Removal of Trustee

  	
   

  	
  48

  
	
  Section 7.11

  	
   

  	
  Acceptance b Successor Trustee

  	
   

  	
  49

  
	
  Section 7.12

  	
   

  	
  Successor by Merger, Etc.

  	
   

  	
  50

  
	
  Section 7.13

  	
   

  	
  Limitations on Rights of Trustee as Creditor

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT CONCERNING THE SECURITYHOLDERS

  	
   

  	
  53

  
	
  Section 8.01

  	
   

  	
  Action by Securityholders

  	
   

  	
  53

  
	
  Section 8.02

  	
   

  	
  Proof of Execution by Securityholders

  	
   

  	
  54

  
	
  Section 8.03

  	
   

  	
  Who are Deemed Absolute Owners

  	
   

  	
  55

  
	
  Section 8.04

  	
   

  	
  Company-Owned Securities Disregarded

  	
   

  	
  55

  
	
  Section 8.05

  	
   

  	
  Revocation of Consents; Future Securityholders Bound

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE NINE SECURITYHOLDERS’ MEETINGS

  	
   

  	
  56

  
	
  Section 9.01

  	
   

  	
  Purposes of Meetings

  	
   

  	
  56

  
	
  Section 9.02

  	
   

  	
  Call of Meetings by Trustee

  	
   

  	
  56

  
	
  Section 9.03

  	
   

  	
  Call of Meetings by Company or Securityholders

  	
   

  	
  57

  
	
  Section 9.04

  	
   

  	
  Qualification for Voting

  	
   

  	
  57

  
	
  Section 9.05

  	
   

  	
  Regulations

  	
   

  	
  57

  
	
  Section 9.06

  	
   

  	
  Voting

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN SUPPLEMENTAL INDENTURES

  	
   

  	
  58

  
	
  Section 10.01

  	
   

  	
  Supplemental Indentures Without Consent of
  Securityholders

  	
   

  	
  58

  
	
  Section 10.02

  	
   

  	
  Supplemental Indentures With Consent of Securityholders

  	
   

  	
  59

  
	
  Section 10.03

  	
   

  	
  Compliance with Trust Indenture Act; Effect of
  Supplemental Indentures

  	
   

  	
  61

  
	
  Section 10.04

  	
   

  	
  Notation on Securities

  	
   

  	
  61

  

 4
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN CONSOLIDATION, MERGER, CONVEYANCE,
  TRANSFER OR LEASE

  	
   

  	
  61

  
	
  Section 11.01

  	
   

  	
  Company may Consolidate, Etc., Only On Certain Terms

  	
   

  	
  61

  
	
  Section 11.02

  	
   

  	
  Successor Corporation Substituted

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE SATISFACTION AND DISCHARGE OF
  INDENTURE; UNCLAIMED MONEYS

  	
   

  	
  62

  
	
  Section 12.01

  	
   

  	
  Discharge of Indenture

  	
   

  	
  62

  
	
  Section 12.02

  	
   

  	
  Deposited Moneys to be Held in Trust by Trustee

  	
   

  	
  63

  
	
  Section 12.03

  	
   

  	
  Paying Agent to Repay Moneys Held

  	
   

  	
  63

  
	
  Section 12.04

  	
   

  	
  Return of Unclaimed Moneys

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  	
  64

  
	
  Section 13.01

  	
   

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

  	
   

  	
  64

  
	
  Section 13.02

  	
   

  	
  Defeasance and Discharge

  	
   

  	
  64

  
	
  Section 13.03

  	
   

  	
  Covenant Defeasance

  	
   

  	
  64

  
	
  Section 13.04

  	
   

  	
  Conditions to Defeasance or Covenant Defeasance

  	
   

  	
  65

  
	
  Section 13.05

  	
   

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

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FOURTEEN SUBORDINATION

  	
   

  	
  67

  
	
  Section 14.01

  	
   

  	
  Agreement to Subordinate

  	
   

  	
  67

  
	
  Section 14.02

  	
   

  	
  No Payment on Securities if Senior Indebtedness in
  Default

  	
   

  	
  68

  
	
  Section 14.03

  	
   

  	
  Distribution on Acceleration of Securities;
  Dissolution and Reorganization; Subrogation of Securities

  	
   

  	
  69

  
	
  Section 14.04

  	
   

  	
  Reliance by Senior Indebtedness on Subordination
  Provisions

  	
   

  	
  72

  
	
  Section 14.05

  	
   

  	
  Trustee’s Relation to Senior Indebtedness

  	
   

  	
  72

  
	
  Section 14.06

  	
   

  	
  Other Provisions Subject Hereto

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FIFTEEN CONVERSION

  	
   

  	
  73

  
	
  Section 15.01

  	
   

  	
  Conversion Privilege

  	
   

  	
  73

  
	
  Section 15.02

  	
   

  	
  Conversion Procedure; Conversion Price; Fractional
  Shares

  	
   

  	
  73

  
	
  Section 15.03

  	
   

  	
  Adjustment of Conversion Price for Common Stock

  	
   

  	
  74

  
	
  Section 15.04

  	
   

  	
  Consolidation or Merger of the Company

  	
   

  	
  77

  
	
  Section 15.05

  	
   

  	
  Notice of Adjustment

  	
   

  	
  77

  
	
  Section 15.06

  	
   

  	
  Notice in Certain Events

  	
   

  	
  78

  
	
  Section 15.07

  	
   

  	
  Company to Reserve Stock; Registration; Listing

  	
   

  	
  78

  
	
  Section 15.08

  	
   

  	
  Taxes on Conversion

  	
   

  	
  79

  
	
  Section 15.09

  	
   

  	
  Conversion After Record Date

  	
   

  	
  79

  
	
  Section 15.10

  	
   

  	
  Corporate Action Regarding Par Value of Common Stock

  	
   

  	
  79

  
	
  Section 15.11

  	
   

  	
  Company Determination Final

  	
   

  	
  80

  
	
  Section 15.12

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  80

  

 5
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SIXTEEN IMMUNITY OF INCORPORATORS,
  STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  	
  80

  
	
  Section 16.01

  	
   

  	
  Indenture and Securities Solely Corporate
  Obligations

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVENTEEN MISCELLANEOUS PROVISIONS

  	
   

  	
  80

  
	
  Section 17.01

  	
   

  	
  Benefits of Indenture Restricted to Parties and
  Securityholders

  	
   

  	
  80

  
	
  Section 17.02

  	
   

  	
  Provisions Binding on Company’s Successors

  	
   

  	
  80

  
	
  Section 17.03

  	
   

  	
  Addresses For Notices, Etc.

  	
   

  	
  80

  
	
  Section 17.04

  	
   

  	
  Evidence of Compliance With Conditions Precedent

  	
   

  	
  81

  
	
  Section 17.05

  	
   

  	
  Legal Holidays

  	
   

  	
  81

  
	
  Section 17.06

  	
   

  	
  Trust Indenture Act to Control

  	
   

  	
  81

  
	
  Section 17.07

  	
   

  	
  Execution in Counterparts

  	
   

  	
  81

  
	
  Section 17.08

  	
   

  	
  Illinois Contract

  	
   

  	
  81

  

 

 6

 

THIS INDENTURE, dated as of the           
day of                     
between Aon Corporation, a corporation duly organized and existing under the
laws of the State of Delaware (hereinafter sometimes called the “Company”)
and The Bank of New York Trust Company, N.A., a national banking association
(hereinafter sometimes called the “Trustee”, which term shall include
any successor trustee appointed pursuant to Article Seven).

WITNESSETH:

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

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

NOW, THEREFORE, in order to declare the terms and
conditions upon which the Securities are authenticated, issued and received,
and in consideration of the premises, of the purchase and acceptance of the
Securities by the Holders thereof and of the sum of one dollar to it duly paid
by the Trustee at the execution of these presents, the receipt whereof is
hereby acknowledged, the Company covenants and agrees with the Trustee, for the
equal and proportionate benefit of the respective Holders from time to time of
the Securities, as follows:

ARTICLE ONE

DEFINITIONS

Section 1.01 
Definitions. The terms defined in this Section (except as
herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section. All other terms
used in this Indenture which are defined in the Trust Indenture Act of 1939 and
the Securities Act of 1933, as amended, shall have the meanings (except as
herein otherwise expressly provided or unless the context otherwise requires)
assigned to such terms in the Trust Indenture Act of 1939 and in said
Securities Act as in force at the date of this Indenture as originally executed.

ADDITIONAL AMOUNTS

The term “Additional Amounts” shall mean any
additional amounts which are required by a Security or by or pursuant to a
supplemental indenture or Board Resolution under circumstances specified
therein, to be paid by the Company in respect of certain taxes, assessments or
governmental charges imposed on certain Holders of Securities and which are
owing to such Holders of Securities.

 7
 

 

AUTHORIZED NEWSPAPER

The term “Authorized Newspaper” shall mean a newspaper
in an official language of the country of publication of general circulation in
the place in connection with which the term is used. If it shall be 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

The term “Board of Directors” shall mean the Board of
Directors of the Company, the Executive Committee of the Company or any other
committee duly authorized to exercise the powers and authority of the Board of
Directors with respect to this Indenture or any security.

BOARD RESOLUTION

The term “Board Resolution” shall mean a resolution certified
by the Corporate Secretary or any Assistant Secretary of the Company to have
been duly adopted by, or pursuant to the authority of, 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

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

CLOSING PRICE

The term “Closing Price” of the Common Stock shall
mean the last reported sale price of such stock as shown on the Composite Tape
of the NYSE (or, if such stock is not listed or admitted to trading on the
NYSE, on the principal national securities exchange on which such stock is
listed or admitted to trading), or, in case no such sale takes place on such
day, the average of the closing bid and asked prices on the NYSE (or, if such
stock is not listed or admitted to trading on the NYSE, on the principal
national securities exchange on which such stock is listed or admitted to
trading), or, if it is not listed or admitted to trading on any national
securities exchange, the average of the closing bid and asked prices as
reported by the National Association of Securities Dealers Automated Quotation
System (NASDAQ), or if such stock is not so reported, the average of the
closing bid and asked prices as furnished by any member of the National
Association of Securities Dealers, Inc., selected from time to time by the
Company for that purpose.

COMMON DEPOSITARY

The term “Common Depositary” shall have the meaning
specified in Section 2.06.

 8
 

 

COMMON STOCK

The term “Common Stock” shall mean the class of Common
Stock, par value $1.00 per share, of the Company authorized at the date of this
Indenture as originally signed, or any other class of stock resulting from
successive changes or reclassifications of such Common Stock, and in any such
case including any shares thereof authorized after the date of this Indenture,
and any other shares of stock of the Company which do not have any priority in
the payment of dividends or upon liquidation over any other class of stock.

COMPANY

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

COMPANY ORDER

The term “Company order” means a written order signed
in the name of the Company by the President or any Executive Vice President or
any Vice President or the Treasurer and by the Corporate Secretary or any
Assistant secretary.

CAPITALIZED LEASE OBLIGATION

The term “Capitalized Lease Obligation” shall mean
indebtedness represented by obligations under a lease that is required to be
capitalized for financial reporting purposes in accordance with generally
accepted accounting principles and the amount of such indebtedness shall be the
capitalized amount of such obligations determined in accordance with such
principles.

CONVERSION AGENT

The term “Conversion Agent” shall mean any Person
authorized by the Company to receive Securities to be converted into Common
Stock on behalf of the Company. The Company initially authorizes the Trustee to
act as Conversion Agent for the Securities on its behalf. The Company may at
any time from time to time authorize one or more Persons to act as Conversion
Agent in addition to or in place of the Trustee with respect to any series of
Securities issued under this Indenture.

CONVERSION PRICE

The term “Conversion Price” shall mean, with respect
to any series of Securities which are convertible into Common Stock, the price
per share of Common Stock at which the Securities of such series are so
convertible as set forth in the Board Resolution with respect to such series (or
in any supplemental indenture entered into pursuant to Section 10.01(g) with
respect to such series), as the same may be adjusted from time to time in
accordance with Section 15.03 (or such supplemental indenture).

 9
 

 

COUPON

The term “coupon” shall mean any interest coupon
appertaining to a security.

COUPON SECURITY

The term “Coupon Security” shall mean any security
authenticated and delivered with one or more coupons appertaining thereto.

COVENANT DEFEASANCE

The term “covenant defeasance” shall have the meaning
specified in Section 13.03.

CURRENT MARKET PRICE

The term “Current Market Price” on any date shall mean
the average of the daily Closing Prices per share of Common Stock for any
thirty (30) consecutive Trading Days selected by the Company prior to the date
in question, which thirty (30) consecutive Trading Day period shall not
commence more than forty-five (45) Trading Days prior to the day in question;
provided that with respect to Section 15.03(3), the “Current Market Price”
of the Common Stock shall mean the average of the daily Closing Prices per
share of Common Stock for the five (5) consecutive Trading Days ending on
the date of the distribution referred to in Section 15.03(3) (or if
such date shall not be a Trading Day, on the Trading Day immediately preceding
such date).

DEFEASANCE

The term “defeasance” shall have the meaning specified
in Section 13.02.

DESIGNATED SUBSIDIARY

The term “Designated Subsidiary” shall mean Combined
Insurance Company of America.

EVENT OF DEFAULT

The term “Event of Default” shall mean any event
specified as such in Section 6.01.

GOVERNMENT OBLIGATION

The term “Government Obligation” shall have the
meaning specified in section 13.04.

HOLDER

The terms “Holder”, “Holder of Securities”, “Securityholder”
or other similar terms, shall mean (a) in the case of any Registered
Security, the person in whose name at the time such Security is registered on
the registration books kept for that purpose in accordance with the terms
hereof, and (b) in the case of any Unregistered Security, the bearer of
such Security.

 10
 

 

INDENTURE

The term “Indenture” shall mean this instrument as
originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof.

INTEREST

The term “Interest” shall mean, when used with respect
to non-interest bearing Securities, interest payable on or after maturity.

INTEREST PAYMENT DATE

The term “Interest Payment Date,” when used with
respect to any Security, means the stated maturity of an installment of
interest on such Security.

JUNIOR SUBORDINATED INDEBTEDNESS

The term “Junior Subordinated Indebtedness” shall mean
(i) indebtedness of the Company (whether outstanding on the date of the
Indenture or thereafter created, incurred, assumed or guaranteed by the
Company) which, pursuant to the terms of the instrument creating or evidencing
the same, is subordinate to the Securities in right of payment or in rights
upon liquidation and (ii) indebtedness under the junior subordinated
indenture dated as of January 13, 1997, as supplemented, between the
Company and The Bank of New York, a New York banking corporation.

NYSE

The term “NYSE” shall mean the New York Stock
Exchange.

OFFICERS’ CERTIFICATE

The term “Officers’ Certificate” shall mean a
certificate signed by the Chairman of the Board of Directors or the President
or any Executive Vice President or any Vice President or the Treasurer and by
the Corporate Secretary or any Assistant Secretary.

OPINION OF COUNSEL

The term “Opinion of Counsel” shall mean an opinion in
writing signed by legal counsel, who may be an employee for counsel to the
Company, or who may be other counsel acceptable to the Trustee.

ORIGINAL ISSUE DISCOUNT SECURITIES

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

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OUTSTANDING

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

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

(b)  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 Securities are to be redeemed prior to the
maturity thereof, notice of such redemption shall have been given as provided
in Article Three, or provisions satisfactory to the Trustee shall have
been made for giving such notice;

(c)  Securities
in lieu of and in substitution for which other Securities shall have been
authenticated and delivered pursuant to the terms of Section 2.07, unless
proof satisfactory to the Trustee is presented that any such Securities are
held by bona fide Holders in due course in whose hands such Securities are
valid obligations of the Company; and

(d)  Securities
which have been defeased pursuant to Section 13.02.

PERSON

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

PLACE OF PAYMENT

The term “Place of Payment,” when used with respect to
the Securities of any series, means the office or agency of the Company in the
Borough of Manhattan, The City of New York, designated and maintained by the
Company pursuant to Section 4.02 and such other place or places where the
principal of (and premium, if any) and interest (and Additional Amounts, if
any) on the Securities of that series are payable as specified as contemplated
by Section 2.01.

REGISTERED SECURITY

The term “Registered Security” shall mean any Security
registered on the Security registration books of the Company.

REGULAR RECORD DATE

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

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RESPONSIBLE OFFICER

The term “responsible officer” when used with respect
to the Trustee shall mean the chairman of the board of directors, any vice
chairman of the board of directors, the chairman of the executive committee,
the vice chairman of the executive committee, the president, any vice
president, the cashier, the secretary, the treasurer, any senior trust officer
or trust officer, any assistant vice president, or any other officer of the
Trustee customarily performing functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his knowledge of and familiarity
with the particular subject.

SECURITY REGISTER AND SECURITY REGISTRAR

The term “Security Register” and “Security Registrar”
shall have the respective meanings specified in Section 2.05.

SENIOR INDEBTEDNESS

The term “Senior Indebtedness” shall mean the
principal of and interest (including, without limitation, any interest accruing
subsequent to the filing of a petition or other action concerning bankruptcy or
other similar proceedings) on the following, whether presently outstanding or
hereafter incurred:  (a) all
indebtedness of the Company (i) for money borrowed (other than that
evidenced by the Securities), (ii) which is evidenced by a note, debenture
or similar instrument (including a purchase money mortgage) given in connection
with the acquisition of any property or assets (other than inventory or other
similar property acquired in the ordinary course of business), including
securities, or (iii) for the payment of money relating to a Capitalized
Lease Obligation; (b) any liabilities of others described in the preceding
clause (a) which the Company has guaranteed or which is otherwise its
legal liability; (c) indebtedness of the Company under interest rate
swaps, caps or similar hedging agreements and foreign exchange contracts,
currency swaps or similar agreements; and (d) renewals, extensions,
refundings, restructurings, amendments and modifications of any such
indebtedness or guarantee. Notwithstanding anything to the contrary in this
Indenture or the Securities, “Senior Indebtedness” shall not include (w) any
indebtedness of the Company to a subsidiary, or (y) any Junior
Subordinated Indebtedness.

TRADING DAY

The term “Trading Day” shall mean, with respect to the
Common Stock, so long as the Common Stock is listed or admitted to trading on
the NYSE, a day on which the NYSE is open for the transaction of business, or,
if the Common Stock is not listed or admitted to trading on the NYSE, a day on
which the principal national securities exchange on which the Common Stock is
listed is open for the transaction of business, or, if the Common Stock is not
so listed or admitted for trading on any national securities exchange, a day on
which NASDAQ is open for the transaction of business.

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TRUST INDENTURE ACT OF 1939

Except as otherwise provided in Section 10.03,
the term “Trust Indenture Act of 1939” shall mean the Trust Indenture Act of
1939 as in force at the date of this Indenture as originally executed.

UNITED STATES

The term “United States” shall mean the United States
of America, its territories, possessions and other areas subject to its
jurisdiction, including the Commonwealth of Puerto Rico.

UNREGISTERED SECURITY

The term “Unregistered Security” shall mean any
Security other than a Registered Security.

U.S. DEPOSITARY

The term “U.S. Depositary” shall mean, with respect to
the Securities of any series issuable or issued in whole or in part in the form
of one or more permanent global Securities, the Person designated as U.S.
Depositary by the Company pursuant to Section 2.01, which must be a
clearing agency registered under the Securities Exchange Act of 1934, as
amended, until a successor U.S. Depositary shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter “U.S. Depositary”
shall mean or include each Person who is then a U.S. Depositary hereunder, and
if at any time there is more than one such Person, “U.S. Depositary” shall mean
the U.S. Depositary with respect to the Securities of that series.

U.S. DOLLAR

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

U.S. PERSON

The term “U.S. person” shall mean a citizen or
resident of the United States, a corporation, partnership or other entity
created or organized in or under the laws of the United States or any political
subdivision thereof or an estate or trust the income of which is subject to
United States Federal income tax regardless of its source.

ARTICLE TWO

ISSUE, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES

Section 2.01 
Amount Unlimited; Issuable in Series. The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is unlimited.

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The Securities may be issued in one or more series.
There shall be established in or pursuant to a Board Resolution, and set forth
in an Officers’ Certificate, or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series:

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

(2)          any
limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Section 2.05,
2.06, 2.07, 3.02 or 10.04);

(3)          whether
any Securities of the series are to be issuable in permanent global form with
or without coupons and, if so, (a) whether beneficial owners of interests
in any such permanent global Security may exchange such interests for
Securities of such series and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may occur, if
other than in the manner provided in Section 2.05, and (b) the name
of the Common Depositary or the U.S. Depositary, as the case may be, with respect
to any global Security;

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

(5)          the
rate or rates, which may be fixed or variable, at which the Securities of the
series shall bear interest, if any, and if the rate is variable, the manner of
calculation thereof, the date or dates from which such interest shall accrue,
the Interest Payment Dates on which such interest shall be payable and, in the
case of Registered Securities the Regular Record Date for the determination of
Holders of such Securities to whom interest is payable on any Interest Payment
Date;

(6)          the
place or places (in addition to such place or places specified in this
Indenture) where the principal of (and premium, if any), interest, if any, and
Additional Amounts, if any, on Securities of the series shall be payable;

(7)          the
period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in
part, at the option of the Company, pursuant to any sinking fund or otherwise;

(8)          the
obligation, if any, of the Company to redeem or purchase Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of
a Holder thereof and the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation, and,
where applicable, the obligation of the Company to select the Securities to be
redeemed;

(9)          if
other than U.S. Dollars, the currency or currencies, or units, including
European Currency Units (“ECUs”), based on or related to currencies, in which
the 

 15
 

 

Securities of the series
shall be denominated and in which payments of principal of, any premium or
interest on, and any other amounts payable with respect to such Securities
shall or may be payable;

(10)        the
denominations in which Securities of the series shall be issuable, if other
than $1,000 or integral multiples thereof with respect to Registered and
Unregistered Securities;

(11)        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 or which the Trustee shall be entitled to
claim pursuant to Section 6.02;

(12)        if
other than Registered Securities, whether the Securities of the series will be
issuable as Registered Securities or Unregistered Securities (with or without
coupons), or both; any restrictions applicable to the offer, sale or delivery
of Unregistered Securities; if other than as provided for in Section 2.05,
the terms upon which Unregistered Securities of the series may be exchanged for
Registered Securities of such series and vice versa; if other than as provided
for in Section 2.05 and Section 2.06, the terms upon which
Unregistered Securities shall be issued in definitive form; and, if other than
as provided for in Section 4.02, the circumstances, if any, under which
payment on any Unregistered Security or coupon will be made upon presentation
of such Unregistered Security or coupon at an agency of the Company outside the
United States or by transfer to an account in, or by mail to an address in, the
United States;

(13)        whether
and under what circumstances the Company 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 Company will have the option to redeem such Securities rather than
pay such Additional Amounts;

(14)        if
either or both of Section 13.02 and Section 13.03 shall be
inapplicable to the Securities of the series (provided that if no such
inapplicability shall be specified, then both Section 13.02 and Section 13.03
shall be applicable to the Securities of the series); and

(15)        whether
the series of Securities is convertible and if Article Fifteen shall be
applicable to the Securities of the series (provided that if convertability is
not specified, then the Securities of the series shall not be convertible and Article Fifteen
shall not apply; and provided further that if the series of Securities is
convertible and if no applicability of Article Fifteen shall be specified,
then Article Fifteen shall be applicable to the Securities of the Series).

(16)        to
provide for the terms and conditions of conversion into Common Stock of the
Securities of any series which are convertible into Common Stock, if different
from those set forth in Article Fifteen.

 16
 

 

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

All Securities of any one series shall be
substantially identical except (i) as to denomination and (ii) that
Securities of any series may be issuable as either Registered Securities or
Unregistered Securities and (iii) as may otherwise be provided in or
pursuant to such Board Resolution and set forth in such Officers’ Certificate
or in any such indenture supplemental hereto.

If any of the terms of the series are established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Corporate Secretary or any Assistant
Secretary of the Company and delivered to the Trustee at the same time as or
prior to the delivery of the Officers’ Certificate setting forth the terms of
the series.

Section 2.02 
Form of Trustee’s Certificate of Authentication.

The Trustee’s certificate of authentication shall be
in the following form:

[FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION]

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

The Bank of New York Trust Company, N.A., as Trustee,

By:  ________________________________
        Authorized Officer

Section 2.03 
Form, Execution, Authentication, Delivery and Dating of Securities.
The Securities of each series and the coupons, if any, to be attached thereto,
shall be in the forms approved from time to time by or pursuant to a Board
Resolution, or established in one or more indentures supplemental hereto, and
shall be printed, lithographed, engraved or otherwise produced in such manner
as the officers executing the same may determine, as evidenced by their
execution of such securities. Such Securities and the coupons, if any, to be
attached thereto may have such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed, engraved or otherwise produced thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Indenture,
or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Securities may be listed, or to conform to usage.

Each Security and coupon shall be executed on behalf
of the Company by its Chairman of the Board of Directors or its Vice Chairman
of the Board of Directors or its President or any Executive Vice President or
any Vice President and by its Treasurer or any Assistant Treasurer or its
Secretary or any Assistant Secretary, under its Corporate seal. Such signatures
may be the manual or facsimile signatures of the present or any future such
officers. The seal of the 

 17
 

 

Company may be in the
form of a facsimile thereof and may be impressed, affixed, imprinted or
otherwise reproduced on the Securities.

Each Security and coupon bearing the manual or
facsimile signatures of individuals who were at any time the proper officers of
the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of such Security, or the Security to which such coupon appertains. At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company and, in the case of Coupon Securities, having attached thereto
appropriate coupons, to the Trustee for authentication, together with a Company
Order for the authentication and delivery of such Securities, and the Trustee
in accordance with such Company order shall authenticate and deliver such
Securities. If the form or terms of the Securities or coupons of the series
have been established in or pursuant to one or more Board Resolutions as
permitted by this Section and Section 2.01, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 7.01) shall be fully protected in relying upon, an
opinion of Counsel stating:

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

(b)  if the terms
of such Securities have been established by or pursuant to Board Resolution as
permitted by Section 2.01, that such terms have been established in
conformity with the provisions of this Indenture; and

(c)  that each
such Security and coupon, when authenticated and delivered by the Trustee and
issued by the Company in the manner and subject to any conditions specified in
such opinion of Counsel, will constitute valid and legally binding obligations
of the Company, enforceable in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium and other laws of general
applicability relating to or affecting the enforcement of creditors’ rights and
to general equity principles.

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

Notwithstanding the provisions of Section 2.01
and of the immediately preceding paragraph, if all Securities of a series are
not to be originally issued at one time, it shall not be necessary to deliver
the Officers’ Certificate otherwise required pursuant to Section 2.01 or
the Company Order and opinion of Counsel otherwise required pursuant to the immediately
preceding paragraph at or prior to the time of authentication of each Security
of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to
be issued.

 18
 

 

Every Registered Security shall be dated the date of
its authentication. Each Unregistered Security shall be dated as provided in or
pursuant to the Board Resolution or supplemental indenture referred to in Section 2.01
or, if no such terms are specified, the date of its original issuance.

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

Section 2.04 
Denominations, Record Date. The Securities shall be issuable as
Registered Securities or Unregistered Securities in such denominations as may
be specified as contemplated in Section 2.01. In the absence of any such
specification with respect to any series, such Securities shall be issuable as
Registered securities in the denominations contemplated by Section 2.01.

The term “record date” as used with respect to an
Interest Payment Date (except a date for payment of defaulted interest) shall
mean such day or days as shall be specified in the terms of the Registered
Securities of any particular series as contemplated by Section 2.01;
provided, however, that in the absence of any such provisions with respect to
any series, such term shall mean (a) the last day of the calendar month
next preceding such Interest Payment Date if such Interest Payment Date is the
fifteenth day of a calendar month; or (b) the fifteenth day of a calendar
month next preceding such Interest Payment Date if such Interest Payment Date
is the first day of the calendar month; provided, further, that if the day
which would be the record date as provided herein shall be a day on which
banking institutions in the City of Chicago or the City of New York are
authorized by law or required by executive order to close, then it shall mean
the next preceding day which shall not be a day on which such institutions are
so authorized or required to close.

The person in whose name any Registered Security is
registered at the close of business on the Regular Record Date with respect to
an Interest Payment Date shall be entitled to receive the interest payable and
Additional Amounts, if any, payable on such Interest Payment Date
notwithstanding the cancellation of such Registered Security upon any transfer
or exchange thereof subsequent to such Regular Record Date and prior to such
Interest Payment Date; provided, however, that if and to the extent the Company
shall default in the payment of the interest and Additional Amounts, if any,
due on such Interest Payment Date, such defaulted interest and Additional
Amounts, if any, shall cease to be payable to the Holder on such Regular Record
Date and may either be paid to the persons in whose names Outstanding
Registered Securities are registered at the close of business on a subsequent
record date established by notice given by mail by or on behalf of the Company
to the Holders of Securities of the series in default not less than fifteen
days preceding such subsequent record date, such record date to be not less
than five days preceding the date of payment of such defaulted interest, or be
paid at any time in any other lawful manner.

Section 2.05 
Exchange and Registration of Transfer of Securities. Registered
Securities of any series may be exchanged for a like aggregate principal amount
of Registered Securities of 

 19
 

 

other
authorized denominations of such series. Registered Securities to be exchanged
shall be surrendered at the office or agency to be designated and maintained by
the Company for such purpose in the City of Chicago or the Borough of
Manhattan, The City of New York, in accordance with the provisions of Section 4.02,
and the Company shall execute and register and the Trustee shall authenticate
and deliver in exchange therefor the Registered Security or Registered
Securities which the Holder making the exchange shall be entitled to receive.

If the Securities of any series are issued in both
registered and unregistered form, except as otherwise specified pursuant to Section 2.01,
at the option of the Holder thereof, Unregistered Securities of any series may
be exchanged for Registered Securities of such series of any authorized
denominations and of a like aggregate principal amount, upon surrender of such
Unregistered Securities to be exchanged at the agency of the Company that shall
be maintained for such purpose in accordance with Section 4.02, with, in
the case of Unregistered Securities that are Coupon Securities, all unmatured
coupons and all matured coupons in default thereto appertaining. At the option
of the Holder thereof, if Unregistered Securities of any series are issued in
more than one authorized denomination, except as otherwise specified pursuant
to Section 2.01, such Unregistered Securities may be exchanged for
Unregistered Securities of such series of other authorized denominations and of
a like aggregate principal amount, upon surrender of such Unregistered
Securities to be exchanged at the agency of the Company that shall be
maintained for such purpose in accordance with Section 4.02 or as
specified pursuant to Section 2.01, with, in the case of Unregistered
Securities that are coupon securities, all unmatured coupons and all matured
coupons in default thereto appertaining. Unless otherwise specified pursuant to
Section 2.01, Registered Securities of any series may not be exchanged for
Unregistered Securities of such series. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange
is entitled to receive.

The Company (or its designated agent (the “Security
Registrar”)) shall keep, at such office or agency, a Security Register (the “Security
Register”) in which, subject to such reasonable regulations as it may prescribe,
the Company shall register securities and shall register the transfer of
Registered Securities as in this Article Two provided. The Security
Register shall be in written form or in any other form capable of being
converted into written form within a reasonable time. At all reasonable times
the Security Register shall be open for inspection by the Trustee. Upon due
presentment for registration of transfer of any Registered Security of a
particular series at such office or agency, the Company shall execute and the
Company or the Security Registrar shall register and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new
Registered Security or Registered Securities of such series for an equal
aggregate principal amount and stated maturity.

Unregistered Securities (except for any temporary
bearer Securities) and coupons shall be transferable by delivery.

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

 20
 

 

Notwithstanding the foregoing, except as otherwise
specified as contemplated by Section 2.01, any permanent global Security
shall be exchangeable only as provided in this paragraph. If the beneficial
owners of interests in a permanent global Security are entitled to exchange
such interests for Securities of such series and of like tenor and principal
amount of another authorized form and denomination, as specified and as subject
to the conditions contemplated by Section 2.01, then without unnecessary
delay but in any event not later than the earliest date on which such interests
may be so exchanged, the Company shall deliver to the Trustee definitive
Securities of that series in aggregate principal amount equal to the principal
amount of such permanent global Security, executed by the Company. On or after
the earliest date on which such interests may be so exchanged, such permanent
global Securities shall be surrendered from time to time by the Common
Depositary or the U.S. Depositary, as the case may be, and in accordance with
instructions given to the Trustee and the Common Depositary or the U.S.
Depositary, as the case may be, as shall be specified in the Company order with
respect thereto to the Trustee, as the Company’s agent for such purpose, to be
exchanged, in whole or in part, for definitive Securities of the same series
without charge. The Trustee shall authenticate and make available for delivery,
in exchange for each portion of such surrendered permanent global Security, a
like aggregate principal amount of definitive Securities of the same series of
authorized denominations and of like tenor as the portion of such permanent
global Security to be exchanged which shall be in the form of the Securities of
such series; provided, however, that no such exchanges may occur during a
period beginning at the opening of business fifteen days before the day of the
mailing of a notice of Redemption of Securities of that series selected for
Redemption under Article III and ending at the close of business on the
day of such mailing. Promptly following any such exchange in part, such
permanent global Security shall be returned by the Trustee to the Common
Depositary or the U.S. Depositary, as the case may be, or such other Common
Depositary or U.S. Depositary referred to above in accordance with the
instructions of the Company referred to above. If a Security in the form
specified for such series is issued in exchange for any portion of a permanent
global Security after the close of business at the office or agency where such
exchange occurs on any Regular Record Date and before the opening of business
at such office or agency on the relevant Interest Payment Date, such interest
will not be payable on such Interest Payment Date in respect of such Security in
the form specified for such series, but will be payable on such Interest
Payment Date only to the Person to whom interest in respect of such portion of
such permanent global Security is payable in accordance with the provisions of
this Indenture.

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

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

The Company shall not be required to exchange or
register a transfer of (a) any Registered Securities of any series for a
period of fifteen days next preceding any selection of such Registered
Securities of such series to be redeemed, or (b) any Security of any such
series selected for Redemption except, in the case of any such series to be
redeemed in part, the portion thereof not to be so redeemed.

 21
 

 

Notwithstanding anything herein or in the terms of any
series of securities to the contrary, neither the Company nor the Trustee
(which shall rely on an Officers’ Certificate and an opinion of Counsel) shall
be required to exchange any Unregistered Security for a Registered Security or
vice versa if such exchange would result in adverse Federal income tax
consequences to the Company (including the inability of the Company to deduct
from its income, as computed for Federal income tax purposes, the interest
payable on any Securities) under then applicable United States Federal income
tax laws.

Section 2.06 
Temporary Securities. Pending the preparation of definitive
securities of any series, the Company may execute and upon Company Order the
Trustee shall authenticate and deliver temporary Securities of such series
(printed, lithographed, typewritten or otherwise produced). Temporary
Securities of any series shall be issuable in any authorized denominations, and
in the form approved from time to time by or pursuant to a Board Resolution but
with such omissions, insertions and variations as may be appropriate for
temporary Securities, all as may be determined by the officers executing such
temporary Securities, such determination to be evidenced by such execution. Every
temporary 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
like effect, as the definitive Securities. Except in the case of temporary
Securities in global form (which, except as otherwise provided pursuant to Section 2.01,
shall be exchanged in accordance with the provisions of Section 2.05),
without unnecessary delay the Company shall execute and shall furnish
definitive Securities of such series evidenced by the temporary Securities and
thereupon any or all temporary Registered Securities of such series may be
surrendered in exchange therefor without charge at the office or agency to be
designated and maintained by the Company for such purpose in the City of
Chicago or the Borough of Manhattan, The City of New York, in accordance with
the provisions of Section 4.02 and in the case of Unregistered Securities
at any agency maintained by the Company for such purpose as specified pursuant
to Section 2.01, and the Trustee shall authenticate and deliver in
exchange for such temporary Securities an equal aggregate principal amount of
definitive Securities of the same series and stated maturity of authorized
denominations and in the case of such Securities that are Coupon Securities,
having attached thereto the 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. The provisions of this Section 2.06
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 2.01.

If temporary Securities of any series are issued in
global form, any such temporary global Security shall, unless otherwise
provided therein pursuant to Section 2.01, be delivered to the office of a
depositary or common depositary (the “Common Depositary”) for credit to the
respective accounts of the beneficial owners of such Securities (or to such
other accounts as they may direct).

Section 2.07 
Mutilated, Destroyed, Lost or Stolen Securities.

In case any temporary or definitive Security of any
series or, in the case of a Coupon Security, any coupon appertaining thereto,
shall become mutilated or be destroyed, lost or stolen, the Company in the case
of a mutilated Security or coupon shall, and in the case of a lost, stolen or
destroyed Security or coupon may, in its discretion, execute, and upon Company
Order the

 

 22

 

Trustee shall
authenticate and deliver, a new Security of the same series and stated maturity
as the mutilated, destroyed, lost or stolen Security or, in the case of a
Coupon Security, a new Coupon Security of the same series as the mutilated,
destroyed, lost or stolen Coupon Security or, in the case of a coupon, a new
Coupon Security of the same series as the Coupon Security to which such
mutilated, destroyed, lost or stolen coupon appertains, bearing a number not
contemporaneously outstanding, in exchange and substitution for the mutilated
Security, or in lieu of and in substitution for the Security so destroyed, lost
or stolen or in exchange for the Coupon Security to which such mutilated,
destroyed, lost or stolen coupon appertains, with all appurtenant coupons not
destroyed, lost or stolen. In every case the applicant for a substituted
Security or coupon shall furnish to the Company and to the Trustee such
security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company and to the Trustee evidence to their satisfaction of the
destruction, loss or theft of such Security or coupon, as the case may be, and
of the ownership thereof. The Trustee may authenticate any such substituted
Security and deliver the same upon the written request or authorization of any
officer of the Company. Upon the issuance of any substituted Security or
coupon, 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 and in addition a further sum not
exceeding ten dollars for each security so issued in substitution. In case any
security or coupon which has matured or is about to mature shall become
mutilated or be destroyed, lost or stolen, the company may, instead of issuing
a substituted Security, pay or authorize the payment of the same (without
surrender thereof except in the case of a mutilated Security or coupon) if the
applicant for such payment shall furnish the Company and the Trustee with such
security or indemnity as they may require to save each of them harmless and, in
case of destruction, loss or theft, evidence to the satisfaction of the Company
of the destruction, loss or theft of such Security or coupon and of the
ownership thereof.

Every substituted Security with, in the case of any
such Security that is a Coupon Security, its coupons, issued pursuant to the
provisions of this Section by virtue of the fact that any Security or
coupon is destroyed, lost or stolen shall, with respect to such Security or
coupon, constitute an additional contractual obligation of the Company, whether
or not the destroyed, lost or stolen Security or coupon 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 Securities, and the coupons appertaining
thereto, duly issued hereunder.

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

Section 2.08 
Securities in Global Form. If Securities
of a series are issuable in global form, as specified as contemplated by Section 2.01,
then, notwithstanding the provisions of Section 2.01, any such Security
shall represent such of the Outstanding Securities of such series as shall be
specified therein and may provide that it shall represent the aggregate amount
of Outstanding Securities from time to time endorsed thereon and that the
aggregate amount of 

 23
 

 

Outstanding Securities
represented thereby may from time to time be reduced to reflect exchanges. Any
endorsement of a Security in global form to reflect the amount, or any increase
or decrease in the amount, of Outstanding Securities represented thereby shall
be made by the Trustee in such manner and upon instructions given by such
Person as shall be specified therein or in the Company Order to be delivered to
the Trustee pursuant to Section 2.03 or Section 2.06. Subject to the
provisions of Section 2.03 and, if applicable, Section 2.06, the Trustee
shall deliver and redeliver any security in permanent global form in the manner
and upon instructions, given by the Person specified therein or in the
applicable Company Order. If a Company Order pursuant to Section 2.03 or
2.06 has been, or simultaneously is, delivered, any instructions by the Company
with respect to endorsement or delivery or redelivery of a Security in global
form shall be in writing but need not comply with Section 17.04 and need
not be accompanied by an opinion of Counsel.

The provisions of Section 2.09 shall apply to any
Security represented by a Security in global form if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not be
accompanied by an opinion of Counsel) with regard to the reduction in the
principal amount of Securities represented thereby.

Notwithstanding the provisions of Section 2.04,
unless otherwise specified as contemplated by Section 2.01, payment of
principal of, any premium and interest on, and any other amounts payable with
respect to any Security in permanent global form shall be made to the Person
specified therein.

Notwithstanding the provisions of Section 8.03
and except as provided in the preceding paragraph, the Company, the Trustee and
any agent of the Company and the Trustee shall treat a Person as the Holder of
such principal amount of Outstanding Securities represented by a permanent
global Security as shall be specified in a written statement of the Holder of
such permanent global security.

Section 2.09 
Cancellation. All Securities surrendered
for payment, Redemption, exchange or registration of transfer, and all coupons
surrendered for payment, as the case may be, shall, if surrendered to the
Company or any agent of the Company or of the Trustee, be delivered to the
Trustee and promptly canceled by it or, if surrendered to the Trustee, be
canceled 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 shall destroy canceled Securities and coupons and deliver a certificate
of destruction to the Company or, if requested to do so by the Company, shall
return such canceled Securities and coupons to the Company.

Section 2.10 
Computation of Interest. Except as
otherwise specified as contemplated by Section 2.01 for securities of any
series, interest on the Securities of each series shall be computed on the
basis of a 360-day year of twelve 30-day months.

 24
 

 

ARTICLE THREE

REDEMPTION OF SECURITIES

Section 3.01 
Redemption of Securities, Applicability of Article.
Redemption of Securities of any series as permitted or required by the terms
thereof shall be made in accordance with such terms and this Article; provided,
however, that if any provision of any series of Securities shall conflict with
any provision of this Article, the provision of such series of Securities shall
govern.

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

Section 3.02 
Notice of Redemption, Selection of Securities.

In case the Company shall desire to exercise the right
to redeem all, or, as the case may be, any part of a series of Securities
pursuant to the terms and provisions applicable to such series, it shall fix a
date for Redemption and shall mail a notice of such Redemption at least thirty
and not more than sixty days prior to the date fixed for Redemption to the
Holders of the securities and, in the case of Securities in global form, to the
Common Depositary or the U.S. Depositary, as the case may be, of such series
which are Registered Securities to be redeemed as a whole or in part at their
last addresses as the same appear on the Security Register. Such mailing shall
be by prepaid first class mail. Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the Holder shall have received such notice. In any case, failure to give notice
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 any other Security of such series.

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 as described in Section 5.04, shall be given by
mailing notice of such Redemption, by first class mail, postage prepaid, at
least thirty days and not more than sixty days 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 Company, the Trustee
shall make such information available to the Company for such purpose). Notice
of Redemption to any other Holder of an Unregistered Security of, such series
shall be published in an Authorized Newspaper in the Borough of Manhattan, The
City of New York and in an Authorized Newspaper in London, in each case, once
in each of two successive calendar weeks, the first publication to be not less
than thirty nor more than sixty 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 shall have received
such notice. In any case, 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 any other Security of such series.

Each such notice of Redemption shall specify the date
fixed for Redemption, the Redemption price at which such Securities are to be
redeemed, the Place of Payment, that 

 25
 

 

payment will be made upon
presentation and surrender of such Securities and, in the case of Coupon
Securities, of all coupons appertaining thereto maturing after the date fixed
for Redemption, that interest and Additional Amounts, if any, accrued to the
date fixed for Redemption will be paid as specified in said notice and that on
and after said date interest, if any, thereon or on the portions thereof to be
redeemed will cease to accrue. If less than all of the Securities of a series
are to be redeemed, any notice of Redemption published in an Authorized
Newspaper shall specify the numbers of the Securities to be redeemed. In case
any Security is to be redeemed in part only, the notice of Redemption shall
state the portion of the principal amount thereof to be redeemed and shall
state that, upon surrender of such Security, a new Security or Securities in
principal amount equal to the unredeemed portion thereof will be issued of the
same series.

Prior to the Redemption date specified in the notice
of Redemption given as provided in this Section, the Company will deposit in
trust with the Trustee or with one or more paying agents (or, if the Company is
acting as its own paying agent, segregate and hold in trust as provided in Section 4.03)
an amount of money sufficient to redeem on the Redemption date all the
Securities or portions of Securities so called for Redemption at the
appropriate Redemption price, together with accrued interest, if any, to the
date fixed for Redemption. The Company will give the Trustee notice of each
Redemption at least forty-five days prior to the date fixed for Redemption
(unless a shorter notice is acceptable to the Trustee) as to the aggregate
principal amount of securities to be redeemed.

If less than all of the Securities of a series are to
be redeemed, the Trustee shall select, pro rata or by lot or in such other
manner as it shall deem reasonable and fair, the numbers of the Securities to
be redeemed in whole or in part; provided that in case the Securities of such
series have different terms and maturities, the Securities to be redeemed shall
be selected by the Company and the Company shall give notice thereof to the
Trustee.

Section 3.03 
Payment of Securities Called for Redemption.
If notice of Redemption has been given as above provided, the Securities or
portions of Securities with respect to which such notice has been given shall
become due and payable on the date and at the Place of Payment stated in such
notice at the applicable Redemption price, together with interest, if any (and
Additional Amounts, if any), accrued to the date fixed for Redemption, and on
and after said date (unless the Company shall default in the payment of such
Securities at the Redemption price, together with interest, if any, and
Additional Amounts, if any, accrued to said date) interest on the Securities or
portions of Securities so called for Redemption shall cease to accrue. On
presentation and surrender of such Securities subject to Redemption at said
Place of Payment in said notice specified, the said Securities or the specified
portions thereof shall be paid and redeemed by the Company at the applicable
Redemption price, together with interest, if any, and Additional Amounts, if
any, accrued thereon to the date fixed for Redemption. Interest, if any (and
Additional Amounts, if any), maturing on or prior to the date fixed for
Redemption shall continue to be payable (but without interest thereon unless
the Company shall default in payment thereof) in the case of Coupon securities
to the bearers of the coupons for such interest upon surrender thereof, and in
the case of Registered Securities to the Holders thereof registered as such on
the Security Register on the relevant record date subject to the terms and
provisions of Section 2.04. At the option of the Company payment may be
made by check to (or to the order 

 26
 

 

of) the Holders of the
Securities or other persons entitled thereto against presentation and surrender
of such Securities.

If any Coupon Security surrendered for Redemption
shall not be 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 Company 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 Company shall execute and the Trustee shall authenticate and deliver
to the Holder thereof, at the expense of the Company, a new Security or
Securities of the same series and stated maturity, of authorized denominations,
in aggregate principal amount equal to the unredeemed portion of the Security
so presented.

ARTICLE FOUR

PARTICULAR COVENANTS OF THE COMPANY

Section 4.01 
Payment of Principal, Premium, Interest and
Additional Amounts. The Company will duly and punctually pay or
cause to be paid the principal of (and premium, if any), interest, if any, and
Additional Amounts, if any, on each of the Securities at the place, at the
respective times and in the manner provided in the terms of the Securities and
in this Indenture. The interest on Coupon Securities (together with any
Additional Amounts) shall be payable only upon presentation and surrender of
the several coupons for such interest installments as are evidenced thereby as
they severally mature. The interest, if any, on any temporary bearer Securities
(together with any Additional Amounts) 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. The interest on Registered Securities (together with any
Additional Amounts) shall be payable only to or upon the written order of the
Holders thereof and at the option of the Company may be paid by mailing checks
for such interest payable to or upon the order of such Holders at their last
addresses as they appear on the Security Register for such Securities.

Section 4.02 
Offices for Notices and Payments, Etc. As
long as any of the Securities of a series remain outstanding, the Company will
designate and maintain, in the City of Chicago and the Borough of Manhattan,
The City of New York, an office or agency where the Registered Securities of
such series may be presented for registration of transfer and for exchange as
in this Indenture provided, an office or agency where notices and demands to or
upon the Company in respect of the Securities of such series or of this
Indenture may be served, and an office or agency where the securities of such
series may be presented for payment. The Company will give to the Trustee
notice of the location of each such office or agency and of any change in the
location thereof. In case the Company shall fail to maintain any such office or
agency in the City of Chicago and the Borough of Manhattan, The City of New
York, or shall fail to give such notice of the location or of any change in the
location thereof, presentations may be made and notices and demands may be
served at the corporate trust office of the Trustee in the City of Chicago and
the Company hereby appoints the Trustee as its agent to receive all such
presentations, notices and demands.

 27

 

If Unregistered Securities of any series are
Outstanding, the Company will maintain or cause the Trustee to maintain one or
more 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
such Unregistered Securities, and coupons, if any, appertaining thereto may be
presented for payment. Except as provided pursuant to Section 2.01, no payment
on any Unregistered Security or coupon will be made upon presentation of such
Unregistered Security or coupon at an agency of the Company 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. Notwithstanding the foregoing, payments in
U.S. Dollars with respect to Unregistered Securities of any series and coupons
appertaining thereto which are payable in U.S. Dollars may be made at an agency
of the Company maintained in the City of Chicago and the Borough of Manhattan,
The City of New York if the full amount of such payment in U.S. Dollars at each
agency maintained by the Company outside the United States for payment on such
Unregistered Securities is illegal or effectively precluded by exchange
controls or other similar restrictions.

The Company may also from time to time designate one
or more other offices or agencies where the Securities of one or more series
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however, that no such designation
or rescission shall in any manner relieve the Company of its obligations to
maintain an office or agency in each place of payment for Securities of any Series for
such purposes. The Company will give prompt written notice to the Trustee of
any such designation or rescission and of any change in the location of any
such other office or agency.

The Company hereby initially designates
_____________________, located at ________________________, ______,
______________ ________ as the Security Registrar and as the office or agency
of the Company in the City of Chicago, where the Securities may be presented
for payment and, in the case of Registered Securities, for registration of
transfer and for exchange as in this Indenture provided and where notices and
demands to or upon the Company in respect of the Securities of any series or of
this Indenture may be served.

Section 4.03  Provisions as to Paying Agent.
(a)  Whenever the Company 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,

(1)           that it will hold
sums held by it as such agent for the payment of the principal of (and premium,
if any), interest, if any, or Additional Amounts, if any, on the Securities of
such series in trust for the benefit of the Holders of the Securities of such
series, or coupons appertaining thereto, as the case may be, entitled thereto
and will notify the Trustee of the receipt of sums to be so held,

(2)           that it will give
the Trustee notice of any failure by the Company (or by any other obligor on
the securities of such series) to make any payment of the principal of (or
premium, if any), interest, if any, or Additional Amounts, if any, on the
Securities of such series when the same shall be due and payable, and

 28
 

 

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

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

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

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

(e)           Anything in this Section to
the contrary notwithstanding, the agreement to hold sums in trust as provided
in this Section is subject to the provisions of Sections 12.02 and 12.03.

ARTICLE FIVE

SECURITYHOLDER LISTS AND REPORTS BY THE

COMPANY AND THE TRUSTEE

Section 5.01  Securityholder
Lists. The Company covenants and agrees that it will furnish or cause to be
furnished to the Trustee with respect to the Securities of each series:

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

(b)           at such other times
as the Trustee may request in writing, within thirty days after receipt by the
Company of any such request, a list in such form as the Trustee may reasonably
require of the names and addresses of the Holders of Securities of the
particular series specified by the Trustee as of a date not more than fifteen
days prior to the time such information is furnished; provided, however, that
if and so long as the Trustee shall be the Security Registrar any such list
shall exclude names and addresses received by the Trustee in its capacity as 

 29
 

 

Security Registrar, and if and so long as all of the
Securities of any series are Registered Securities, such list shall not be
required to be furnished.

Section 5.02  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 each series of Securities
contained in the most recent list furnished to it as provided in section 5.01
or received by the Trustee in its capacity as Security Registrar. The Trustee
may destroy any list furnished to it as provided in Section 5.01 upon
receipt of a new list so furnished.

(b)           In case three or
more Holders of 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 Security of such series 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 Securities of a
particular series (in which case the applicants must hold Securities of such
series) or with Holders of all Securities with respect to their rights under
this Indenture or under such Securities and it is accompanied by a copy of the
form of proxy or other communication which such applicants propose to transmit,
then the Trustee shall, within five Business Days after the receipt of such
application, at its election, either

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

(2)           inform such applicants as to the
approximate number of Holders of Securities of such series or all Securities,
as the case may be, 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, 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 Trustee shall elect not to afford to such
applicants access to such information, the Trustee shall, upon the written
request of such applicants, mail to each Holder of such series or all
Securities, as the case may be, 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 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,
together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to
the best interests of the Holders of Securities of such series or all
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,
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 

 30
 

 

enter an order so declaring, the Trustee shall mail
copies of such material to all such Holders 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 Securities, by receiving and holding the same, agrees with
the Company and the Trustee that neither the Company nor the Trustee nor any
agent of the Company or of the Trustee shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the
Holders of Securities in accordance with the provisions of subsection (b) of
this Section, regardless of the source from which such information was derived,
and that the trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under said subsection (b).

Section 5.03  Reports by the Company. The Company
covenants:

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

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

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

(d)           If
Unregistered Securities of any series are Outstanding, to file with the listing
agent of the Company with respect to such series such documents and reports of
the Company as may be required from time to time by the rules and
regulations of any stock exchange on which such Unregistered Securities are
listed.

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Section 5.04  Reports by the Trustee. (a)  On
or before July 15, and on or before July 15 of each year thereafter,
so long as any Securities of any series are Outstanding hereunder, the Trustee
shall transmit to the Holders of Securities of such series, as provided in
subsection (c) of this Section, a brief report (if required by Section 313(a) of
the Trust Indenture Act of 1939) dated as of the preceding May 15, with
respect to:

(1)           its eligibility
under Section 7.09, and its qualifications under Section 7.08, 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;

(2)           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)
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,
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 one-half of one percent of the
principal amount of the Securities for any series outstanding on the date of
such report;

(3)           the amount, interest
rate, and maturity date of all other indebtedness owing by the Company (or by
any other obligor on the Securities) 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 an indebtedness based upon a creditor relationship
arising in any manner described in paragraphs (2), (3), (4), or (6) of
subsection (b) of Section 7.13;

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

(5)           any additional issue
of Securities of such series which it has not previously reported; and

(6)           any action taken by
the Trustee in the performance of its duties under this Indenture which it has
not previously reported and which in its opinion materially affects the
Securities, 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 6.07.

(b)           The
Trustee shall transmit to the Holders of Securities, 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) 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 execution of
this Indenture), for the reimbursement of which it claims or may claim a lien
or charge prior to that of the Securities of any 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 for each series shall
not be required (but may elect) to report such advances if such advances
remaining unpaid at any time aggregate ten percent or less of the principal
amount of 

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Securities for such series outstanding at such time,
such report to be transmitted within ninety days after such time.

(c)           Reports pursuant to
this Section shall be transmitted by mail:

(i)            to all Holders of Registered
Securities, as the names and addresses of such Holders appear upon the Security
Register;

(ii)           to such other Holders of Securities
as have, within two years preceding such transmission, filed their names and
addresses with the Trustee for that purpose; and

(iii)          to each Holder of a Security whose
name and address are preserved at the time by the Trustee as provided in Section 5.02.

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

ARTICLE SIX

REMEDIES ON DEFAULT

Section 6.01  Events of
Default. In case one or more of the following Events of Default with respect
to a particular series of Securities shall have occurred and be continuing:

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

(b)           default in the
payment of any installment of interest, if any, or in the payment of any
Additional Amount 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 thirty days; or

(c)           failure on the part
of the Company duly to observe or perform any other of the covenants or
agreements on the part of the Company in this Indenture applicable to
Securities of such series for a period of ninety days after the date on which
written notice of such failure, specifying such failure and requiring the
Company to remedy the same and stating that such notice is a “Notice of Default”
hereunder, shall have been given to the Company by the Trustee, or to the
Company and the Trustee by the Holders of at least twenty-five percent in
aggregate principal amount of the Securities of such series at the time
Outstanding; or

(d)           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 appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Company or for any substantial part of its property, or
ordering the winding-up or liquidation of its affairs and such decree or order
shall remain unstayed and in effect for a period of ninety days; or

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

(f)            any other Event of
Default provided with respect to Securities of such series;

then in each and every such case, unless the principal
amount of all the Securities of such series shall have already become due and
payable, either the Trustee or the Holders of not less than twenty-five percent
in aggregate principal amount of the Securities of such series then
Outstanding, by notice in writing to the Company (and to the Trustee if given
by Holders of such Securities) may declare the principal amount of all the
Securities (or, with respect to Original Issue Discount Securities, such lesser
amount as may be specified in the terms of such Securities) of such series to
be due and payable immediately, and upon any such declaration such principal
amount (or specified amount) shall become and shall be immediately due and
payable, any provision of this Indenture or the Securities of such series
contained to the contrary notwithstanding. The foregoing provisions, however,
are subject to the conditions that if, at any time after the principal of the
Securities of any series 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, the Company shall pay or shall
deposit with the Trustee a sum sufficient to pay all matured installments of
interest, if any, expand all Additional Amounts, if any, due upon all the
Securities of such series and the principal of (and premium, if any, on) all
Securities of such series (or, with respect to Original Issue Discount
Securities, such lesser amount as may be specified in the terms of such
Securities), which shall have become due otherwise than by acceleration (with
interest, if any, upon such principal and premium, if any, and, to the extent
that payment of such interest is enforceable under applicable law, on overdue
installments of interest and Additional Amounts, if any, at the same rate as
the rate of interest specified in the Securities of such series, as the case
may be (or, with respect to Original Issue Discount Securities at the rate
specified in the terms of such securities for interest on overdue principal
thereof upon maturity, redemption or acceleration of such series, as the case
may be), to the date of such payment or deposit), and such amount as shall be
sufficient to cover reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by the Trustee except as a result of its negligence or bad
faith, and any and all defaults under the Indenture, other than the nonpayment
of amounts which shall have become due by acceleration, shall have been
remedied, then and in every such case the Holders of a majority in aggregate
principal amount of the Securities of such series then Outstanding, by written
notice to the Company and to the Trustee, may rescind and annul such
declaration and its consequences; provided no such waiver or rescission and
annulment shall extend to or shall affect any subsequent default or shall
impair any right consequent thereon.

In case the Trustee shall have proceeded to enforce
any right under this Indenture and such proceedings shall have been
discontinued or abandoned because of such rescission and annulment or for any
other reason or shall have been determined adversely to the Trustee, then and
in every such case the Company, the Trustee and the Holders of Securities, as
the case may be, shall be restored respectively to their former positions and
rights hereunder, and all rights, 

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remedies and powers of the Company, the Trustee and
the Holders of Securities, as the case may be, shall continue as though no such
proceedings had been taken.

Section 6.02  Payment of
Securities on Default; Suit Therefor.

The Company covenants that (1) in case default
shall be made in the payment of any installment of interest, if any, on any of
the Securities of any series or any Additional Amounts in payable respect of
any of the Securities of any series, as and when the same shall become due and
payable, and such default shall have continued for a period of thirty days, or (2) in
case default shall be made in the payment of the principal of (or premium, if
any, on) any of the Securities of any series, as and when the same shall have
become due and payable, whether upon maturity of such series or upon redemption
or upon declaration or otherwise, then upon demand of the Trustee, the Company
will pay to the Trustee, for the benefit of the Holders of the Securities of
such series, and the coupons, if any, appertaining to such Securities, the
whole amount that then shall have become due and payable on all such Securities
of such series and such coupons, for principal (and premium, if any) or
interest, if any, or Additional Amounts, if any, as the case may be, with
interest upon the overdue principal (and premium, if any) and (to the extent
that payment of such interest is enforceable under applicable law) upon overdue
installments of interest, if any, and Additional Amounts, if any, at the same
rate as the rate of interest specified in the Securities of such series (or,
with respect to Original Issue Discount Securities, at the rate specified in
the terms of such Securities for interest on overdue principal thereof upon
maturity, redemption or acceleration); and, in addition thereto, such further
amount as shall be sufficient to cover reasonable compensation to the Trustee,
its agents, attorneys and counsel, and all other reasonable expenses and
liabilities incurred, and all advances made, by the Trustee except as a result
of its negligence or bad faith.

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 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 Company
or other obligor upon such Securities and collect in the manner provided by law
out of the property of the Company or other obligor upon such 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 upon
Securities of any series under Title 11 of the United States Code or any other
applicable law, or in case a receiver or trustee shall have been appointed for
the property of the Company or such other obligor, or in the case of any other
judicial proceedings relative to the Company or such other obligor, or to the
creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Securities of such series shall
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section, shall be entitled and empowered, by intervention in
such proceedings or otherwise, to file and prove a claim or claims for the
whole amount of principal (or, with respect to Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of that series), and premium, if any, interest, if any, and Additional
Amounts, if any, owing and unpaid in respect of the Securities of such series,
and to file such 

 35
 

 

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, its agents, attorneys and counsel, and for
reimbursement of all reasonable expenses and liabilities incurred, and all
advances made, by the Trustee except as a result of its negligence or bad
faith) and of the Holders of the Securities and coupons of such series allowed
in any such judicial proceedings relative to the Company or other obligor upon
the Securities of such series, or to the creditors or property of the Company
or such other obligor, and 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 of such series and
of the Trustee on their behalf; and any receiver, assignee or trustee in
bankruptcy or reorganization is hereby authorized by each of the Holders of the
Securities and coupons of such series to make payments to the Trustee and, in
the event that the Trustee shall consent to the making of payments directly to
the Securityholders of such series, to pay to the Trustee such amount as shall
be sufficient to cover reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other reasonable expenses and liabilities
incurred, and all advances made, by the Trustee except as a result of its
negligence or bad faith.

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

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

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

Section 6.03  Application
of Moneys Collected by Trustee. Any moneys collected by the Trustee
pursuant to Section 6.02 shall be applied in the order following, at the
date or dates fixed by the Trustee and, in case of the distribution of such
moneys on account of principal (or premium, if any) or interest, if any, upon
presentation of the several Securities and coupons 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 reasonable costs and expenses applicable to such series of
collection, reasonable compensation to the Trustee, its agents, attorneys and
counsel, and all 

 36
 

 

other reasonable expenses and liabilities incurred,
and all advances made, by the Trustee except as a result of its negligence or
bad faith;

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

THIRD:  In case
the principal of the Securities in respect of which moneys have been collected
shall have become due, by declaration or otherwise, to the payment of the whole
amount then owing and unpaid upon the Securities of such series for principal
(and premium, if any), interest, if any, and Additional Amounts, if any, and
(to the extent that such interest has been collected by the Trustee) upon
overdue installments of interest, if any, and Additional Amounts, if any, at
the same rate as the rate of interest specified in the Securities of such
series (or, with respect to Original Issue Discount Securities, at the rate
specified in the terms of such Securities for interest on overdue principal
thereof upon maturity, Redemption or acceleration); and in case such moneys
shall be insufficient to pay in full the whole amount so due and unpaid upon
the Securities of such series, then to the payment of such principal (and
premium, if any), interest, if any, and Additional Amounts, if any, without
preference or priority of principal and premium, if any, over interest, if any,
and Additional Amounts, if any, or of interest, if any, and Additional Amounts,
if any, over principal and premium, if any, or of any other Security of such
series over any other Security of such series, ratably to the aggregate of such
principal and premium, if any, and accrued and unpaid interest, if any, and
Additional Amounts, if any.

Section 6.04  Proceedings
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 proceedings at law
or in equity or in bankruptcy or otherwise, upon or under or with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless such Holder previously shall have given to the
Trustee written notice of default and of the continuance thereof, as
hereinbefore provided, and unless also the Holders of not less than twenty-five
percent in aggregate principal amount of the Securities of such series then
Outstanding shall have made written request upon the Trustee to institute such
action or proceedings in its own name as trustee hereunder and shall have
offered to the Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, and the
Trustee for sixty days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such action or proceedings and no
direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 6.06; it being understood and intended, and
being expressly covenanted by the taker and Holder of every Security with every
other taker and Holder and the Trustee, that no one or more Holders of
Securities or

 37
 

 

coupons appertaining to such Securities shall have any
right in any manner whatever by virtue of or by availing himself of any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holder of Securities or coupons appertaining to such Securities, or to
obtain or seek to obtain priority over or preference to any other such Holder
or to enforce any right under this Indenture, except in the manner herein provided
and for the equal, ratable and common benefit of all Holders of Securities and
coupons. 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.

Notwithstanding any other provisions in this
Indenture, however, the right of any Holder of any Security to receive payment
of the principal of (and premium, if any) and interest, if any, and Additional
Amounts, if any, on such Security or coupon, on or after the respective due
dates expressed in such Security or coupon, 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. With respect to
Original Issue Discount Securities, principal shall mean such amount as shall
be due and payable be specified in the terms of such Securities.

Section 6.05  Remedies
Cumulative and Continuing. All powers and remedies given by this Article Six
to the Trustee or to the Holders of Securities or coupons shall, to the extent
permitted by law, be deemed cumulative and not exclusive of any thereof or of
any other powers and remedies available to the Trustee or the Holders of
Securities or coupons, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture, and no delay or omission of the Trustee or of any Holder of any of
the Securities or coupons to exercise any right or power accruing upon any
default occurring and continuing as aforesaid shall impair any such right or
power or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to the provisions of Section 6.04,
every power and remedy given by this Article Six or by law to the Trustee
or to the Holders of Securities or coupons may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or by the Holders of
Securities or coupons, as the case may be.

Section 6.06  Direction
of Proceedings. The Holders of a majority in aggregate principal amount of
the Outstanding Securities of any series shall have the right to direct the
time, method, and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series; provided, however, that (subject to
the provisions of Section 7.01) the Trustee shall have the right to
decline to follow any such direction if the Trustee, being advised by counsel,
determines that the action or proceedings so directed may not lawfully be taken
or if the Trustee in good faith by its board of directors or executive
committee or a trust committee of directors or trustees and/or responsible
officers shall determine that the action or proceedings so directed would
involve the Trustee in personal liability.

Section 6.07  Notice of
Defaults. 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, (ii) if any Unregistered Securities of that series are then
Outstanding, to all Holders thereof who have filed their names and addresses with
the Trustee as described in Section 5.04 by mailing such notice to such
Holders at such addresses and (iii) to all 

 38
 

 

Holders of then Outstanding Registered Securities of
that series, by mailing such notice to such Holders at their addresses as they
shall appear on the Security Register, unless in each case such defaults shall
have been cured before the mailing or publication of such notice (the term “defaults”
for the purpose of this Section being hereby defined to be the events
specified in Sections 6.01(a), (b), (c), (d) and (e) and any
additional events specified in the terms of any series of Securities pursuant
to Section 2.01, not including periods of grace, if any, provided for
therein, and irrespective of the giving of written notice specified in Section 6.01(c) or
in the terms of any Securities established pursuant to Section 2.01); and
provided that, except in the case of default in the payment of the principal of
or interest, if any, premium or Additional Amounts, if any, on any of the
Securities of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee, or a
trust committee of directors or Responsible Officers of the Trustee in good
faith determines that the withholding of such notice is in the interests of the
Holders of the Securities of such series.

Section 6.08  Undertaking
to Pay Costs. All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for
any action taken or omitted by it as Trustee, the filing by any party litigant
in such suit of 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 of any
series, or group of such Securityholders, holding in the aggregate more than
ten percent in aggregate principal amount of any Securities of any series, or
to any suit instituted by any Securityholders for the enforcement of the
payment of the principal of (or premium, if any), interest, if any, or
Additional Amounts, if any, on any Security on or after the due date expressed
in such Security.

Section 6.09  Waiver of
Past Defaults. The Holders of not less than a majority in principal amount
of the Outstanding Securities of any series may on behalf of the Holders of all
the Securities of such series waive any past default hereunder with respect to
such series and its consequences, except a default

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

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

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

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ARTICLE SEVEN

CONCERNING THE TRUSTEE

Section 7.01  Duties and
Responsibilities of Trustee. The Trustee, except during the continuance of
an Event of Default of a particular series, undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture. In case
an Event of Default with respect to a particular series has occurred (which has
not been cured), the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent man would exercise or use under the circumstances
in the conduct of his 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 a particular series and after
the curing of all Events of Default with respect to such series which may have
occurred:

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

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

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

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

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

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Section 7.02  Reliance on
Documents, Opinions, Etc. Subject to the provisions of Section 7.01:

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

(b)           any request,
direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an instrument signed in the name of the Company by
the Chairman of the Board of Directors or any Vice Chairman of the Board of
Directors or the President or any Executive Vice President or any vice
President or the Treasurer and by the Secretary or any Assistant Secretary or,
if the other signatory is other than the Treasurer, any Assistant Treasurer
(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 any Assistant Secretary of the Company;

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

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

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

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

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

Section 7.03  No
Responsibility for Recitals, Etc. The recitals contained herein and in the
Securities, other than the Trustee’s certificate of authentication, shall be
taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the 

 41
 

 

Securities, provided that the Trustee shall not be
relieved of its duty to authenticate Securities only as authorized by this
Indenture. The Trustee shall not be accountable for the use or application by
the Company of Securities or the proceeds thereof.

Section 7.04  Ownership
of Securities or Coupons. The Trustee or any agent of the Company or of the
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities or coupons with the same rights it would have if it were
not Trustee, or an agent of the Company or of the Trustee.

Section 7.05  Moneys to
be Held in Trust. Subject to the provisions of Section 12.04 hereof,
all moneys received by the Trustee or any paying agent shall, until used or
applied as herein provided, be held in trust for the purposes for which they
were received, but need not be segregated from other funds except to the extent
required by law. Neither the Trustee nor any paying agent shall be under any
liability for interest on any moneys received by it hereunder except such as it
may agree with the Company to pay thereon. So long as no Event of Default shall
have occurred and be continuing, all interest allowed on any such moneys shall
be paid from time to time upon the written order of the Company, signed by its
Chairman of the Board of Directors or any Vice Chairman of the Board of
Directors or its President or any Executive Vice President or any Vice
President or its Treasurer or any Assistant Treasurer.

Section 7.06  Compensation
and Expenses of Trustee. The Company covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to, reasonable
compensation, and, except as otherwise expressly provided, the Company will pay
or reimburse the Trustee upon its request for all 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,
expenses and disbursements of its counsel and of all persons not regularly in
its employ) except any such expense, disbursement or advance as may arise from
its negligence or bad faith. The Company also covenants to indemnify the
Trustee for, and to hold it harmless against, any loss, liability or expense
incurred without negligence or bad faith on the part of the Trustee, arising
out of or in connection with the acceptance or administration of this trust,
including the costs and expenses of defending itself against any claim of
liability in the premises. The obligations of the Company under this Section to
compensate the Trustee and to pay or reimburse the Trustee for reasonable expenses,
disbursements and advances shall constitute additional indebtedness hereunder. Such
additional indebtedness shall be secured by a lien prior to that of the
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.

Section 7.07  Officer’s
Certificate as Evidence. Subject to the provisions of Section 7.01,
whenever in the administration of the provisions of this Indenture the Trustee
shall deem it necessary or desirable that a matter be proved or established
prior to taking or suffering any action to be taken hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed)
may, in the absence of negligence or bad faith on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate
delivered to the Trustee, and such Certificate, in the absence of negligence or
bad faith on the part of the Trustee, shall be full warrant to the Trustee for
any action taken, suffered or omitted by it under the provisions of this
Indenture upon the faith thereof.

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Section 7.08  Conflicting
Interest of Trustee. (a)  If the Trustee has or shall acquire any
conflicting interest, as defined in this Section, it shall, within ninety days
after ascertaining that it has such conflicting interest, either eliminate such
conflicting interest or resign in the manner and with the effect specified in Section 7.10.

(b)           In the event that
the Trustee shall fail to comply with the provisions of subsection (a) of
this Section, the Trustee shall, within ten days after the expiration of such
ninety-day period, transmit notice of such failure to all Securityholders of
the series affected by the conflicting interest as the names and addresses of
such Holders appear on the Security Register.

(c)           For the purposes of
this Section the Trustee shall be deemed to have a conflicting interest
with respect to a particular series if Securities of such series are in default
(as such term is defined herein, but exclusive of any period of grace or
requirement of notice) and:

(1)           the Trustee is trustee under this
Indenture with respect to the Outstanding Securities of any other series or is
trustee under another indenture under which any other securities, or
certificates of interest or participation in any other securities, of the
Company are outstanding, unless such other indenture is a collateral trust
indenture under which the only collateral consists of Securities issued under
this Indenture, provided that there shall be excluded from the operation of
this paragraph this Indenture with respect to the Securities of any series
other than that series, and any other indenture or indentures under which other
securities, or certificates of interest or participation in other securities of
the Company are outstanding if (i) this Indenture is, and, if applicable,
this Indenture and such other indenture or indentures are wholly unsecured and
ranks equally, and such other indenture or indentures are hereafter qualified
under the Trust Indenture Act of 1939, unless the Securities and Exchange
Commission shall have found and declared by order pursuant to subsection (b) of
Section 305 or subsection (c) of Section 307 of the Trust
Indenture Act of 1939 that differences exist between the provisions of this
Indenture with respect to such particular series and one or more other series
in this Indenture and the provisions of such other indenture or indentures
which are so likely to involve a material conflict of interest as to make it
necessary in the public interest or for the protection of investors to
disqualify the Trustee from acting as such under this Indenture with respect to
such particular series and such other series or such other indenture or
indentures, or (ii) the Company shall have sustained the burden of
proving, on application to the Securities and Exchange Commission and after
opportunity for hearing thereon, that trusteeship under this Indenture with
respect to such particular series and such other series or under this Indenture
and such other indenture or indentures is not so likely to involve a material
conflict of interest as to make it necessary in the public interest or for the
protection of investors to disqualify the Trustee from acting as such under
this Indenture with respect to such particular series and such other series or
under this Indenture and such other indenture or indentures;

(2)           the Trustee or any of its directors
or executive officers is an obligor upon the Securities of any series issued
under this Indenture or an underwriter for the Company;

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(3)           the Trustee directly or indirectly
controls or is directly or indirectly controlled by or is under direct or
indirect common control with the Company or an underwriter for the Company;

(4)           the Trustee or any of its directors
or executive officers is a director, officer, partner, employee, appointee, or
representative of the Company, or of an underwriter (other than the Trustee
itself) for the Company who is currently engaged in the business of
underwriting, except that (A) one individual may be a director or an
executive officer or both of the Trustee and a director or an executive officer
or both of the Company, but may not be at the same time an executive officer of
both the Trustee and the Company; (B) if and so long as the number of
directors of the Trustee in office is more than nine, one additional individual
may be a director or an executive officer or both of the Trustee and a director
of the Company; and (C) the Trustee may be designated by the Company or by
any underwriter for the Company to act in the capacity of transfer agent,
registrar, custodian, paying agent, fiscal agent, escrow agent, or depositary,
or in any other similar capacity, or, subject to the provisions of paragraph (1) of
this subsection (c), to act as trustee, whether under an indenture or
otherwise;

(5)           ten percent or more of the voting
securities of the Trustee is beneficially owned either by the Company or by any
director, partner or executive officer thereof, or twenty percent or more of
such voting securities is beneficially owned, collectively, by any two or more
of such persons; or ten percent or more of the voting securities of the Trustee
is beneficially owned either by an underwriter for the Company or by any
director, partner, or executive officer thereof, or is beneficially owned,
collectively, by any two or more such persons;

(6)           the Trustee is the beneficial owner
of, or holds as collateral security for an obligation which is in default, (A) five
percent or more of the voting securities, or ten percent or more of any other
class of security, of the Company, not including the Securities issued under
this Indenture and securities issued under any other indenture under which the
Trustee is also trustee, or (B) ten percent or more of any class of
security of an underwriter for the Company;

(7)           the Trustee is the beneficial owner
of, or holds as collateral security for an obligation which is in default, five
percent or more of the voting securities of any person who, to the knowledge of
the Trustee, owns ten percent or more of the voting securities of, or controls
directly or indirectly or is under direct or indirect common control with, the
Company;

(8)           the Trustee is the beneficial owner
of, or holds as collateral security for an obligation which is in default, ten
percent or more of any class of security of any person who, to the knowledge of
the Trustee, owns fifty percent or more of the voting securities of the
Company; or

(9)           the Trustee owns, on the date of
default on a Security or any anniversary of such default, in the capacity of
executor, administrator, testamentary or inter vivos trustee, guardian,
committee or conservator, or in any other similar capacity, an aggregate 

 44
 

 

                                                of
twenty-five percent or more of the voting securities, or of any class of
security, of any person, the beneficial ownership of a specified percentage of
which would have constituted a conflicting interest under paragraph (6), (7),
or (8) of this subsection (c). As to any such securities of which the
Trustee acquired ownership through becoming executor, administrator, or
testamentary trustee of an estate which included them, the provisions of the
preceding sentence shall not apply, for a period of two years from the date of
such acquisition, to the extent that such securities included in such estate do
not exceed twenty-five percent of such voting securities or twenty-five percent
of any such class of security. Promptly after the dates of any such default and
the anniversary of such default if such default shall be continuing, the
Trustee shall make a check of its holdings of such securities in any of the
above-mentioned capacities as of such dates. If the Company fails to make
payment in full of principal of or interest on any of the Securities when and
as the same become due and payable, and such failure continues for thirty days
thereafter, the Trustee shall make a prompt check of its holdings of such
securities in any of the above-mentioned capacities as of the date of the
expiration of such thirty-day period, and after such date, notwithstanding the
foregoing provisions of this paragraph (9), all such securities so held by the
Trustee, with sole or joint control over such securities vested in it, shall,
but only so long as such failure shall continue, be considered as though
beneficially owned by the Trustee for the purposes of paragraphs (6), (7), and (8) of
this subsection (c).

The specification of percentages in paragraphs (5) to
(9), inclusive, of this subsection (c) shall not be construed as
indicating that the ownership of such percentages of the securities of a person
is or is not necessary or sufficient to constitute direct or indirect control
for the purposes of paragraph (3) or (7) of this subsection (c).

For the purposes of paragraphs (6), (7), (8), and (9) of
this subsection (c) only, (A) the terms “security” and “securities”
shall include only such securities as are generally known as corporate
securities, but shall not include any note or evidence of indebtedness issued
to evidence an obligation to repay moneys lent to a person by one or more
banks, trust companies or banking firms, or any certificate of interest or
participation, in any such note or evidence of indebtedness; (B) an
obligation shall be deemed to be in default when a default in payment of
principal shall have continued for thirty days or more and shall not have been
cured; and (C) the Trustee shall not be deemed to be the owner or Holder
of (i) any security which it holds as collateral security (as trustee or
otherwise) for an obligation which is not in default as defined in clause (B) above,
or (ii) any security which it holds as collateral security under this
Indenture, irrespective of any default hereunder, or (iii) any security
which it holds as agent for collection, or as custodian, escrow agent, or
depositary, or in any similar representative capacity.

Except as provided above, the word “security” or “securities”
as used in this Indenture shall mean any note, stock, treasury stock, bond,
debenture, evidence of indebtedness, certificate of interest or participation
in any profit sharing agreement, collateral-trust certificate, preorganization
certificate or subscription, transferable share, investment contract,
voting-trust certificate, certificate of deposit for a security, fractional
undivided interest in oil, gas, or other mineral rights, or, in general, any
interest or instrument commonly known as a “security”, or any certificate of
interest or participation in, temporary or interim certificate for, receipt
following guarantee of, or warrant or right to subscribe to or purchase, any of
the foregoing.

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(d)           For the purposes of
this Section:

(1)           The term “underwriter” when used with
reference to the Company shall mean every person who, within one year prior to
the time as of which the determination is made, has purchased from the Company
with a view to, or has offered or has sold for the Company in connection with,
the distribution of any security of the Company outstanding at such time, or
has participated or has had a direct or indirect participation in any such
undertaking, or has participated or has had a participation in the direct or
indirect underwriting if any such undertaking, but such terms shall not include
a person whose interest was limited to a commission from an underwriter or
dealer not in excess of the usual and customary distributors or sellers,
commission.

(2)           The term “director” shall mean any
director of a corporation or any individual performing similar functions with
respect to any organization whether incorporated or unincorporated.

(3)           The term “person” shall mean an
individual, a corporation, a partnership, an association, a joint-stock
company, a trust, an unincorporated organization, or a government or political
subdivision thereof. As used in this paragraph, the term “trust” shall include
only a trust where the interest or interests of the beneficiary or
beneficiaries are evidenced by a security.

(4)           The term “voting security” shall mean
any security presently entitling the owner or Holder thereof to vote in the
direction or management of the affairs of a person, or any security issued
under or pursuant to any trust, agreement or arrangement whereby a trustee or
trustees or agent or agents for the owner or Holder of such security are
presently entitled to vote in the direction or management of the affairs of a
person.

(5)           The term “Company” shall mean any
obligor upon the Securities.

(6)           The term “executive officer” shall
mean the president, every vice president, every trust officer, the cashier, the
secretary, and the treasurer of a corporation, and any individual customarily
performing similar functions with respect to any organization whether
incorporated or unincorporated.

(e)           The percentages of
voting securities and other securities specified in this Section shall be
calculated in accordance with the following provisions:

(A)          A
specified percentage of the voting securities of the Trustee, the Company or
any other person referred to in this Section (each of whom is referred to
as a “person” in this paragraph) means such amount of the outstanding voting
securities of such person as entitles the Holder or Holders thereof to cast
such specified percentage of the aggregate votes which the Holders of all the
outstanding voting securities of such person are entitled to cast in the
direction or management of the affairs of such person.

(B)           A
specified percentage of a class of securities of a person means such percentage
of the aggregate amount of securities of the class outstanding.

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(C)           The
term “amount,” when used in regard to securities, means the principal amount if
relating to evidences of indebtedness, the number of shares if relating to
capital shares, and the number of units if relating to any other kind of security.

(D)          The
term “outstanding” means issued and not held by or for the account of the
issuer. The following securities shall not be deemed outstanding within the
meaning of this definition:

(i) securities of an issuer held in a sinking
fund relating to securities of the issuer of the same class;

(ii) securities of an issuer held in a sinking
fund relating to another class of securities of the issuer, if the obligation
evidenced by such other class of securities is not in default as to principal
or interest or otherwise;

(iii) securities pledged by the issuer thereof as
security for an obligation of the issuer not in default as to principal or
interest or otherwise; and

(iv) securities held in escrow if placed in
escrow by the issuer thereof;

provided, however, that any voting securities of an
issuer shall be deemed outstanding if any person other than the issuer is
entitled to exercise the voting rights thereof.

(E)           A
security shall be deemed to be of the same class as another security if both
securities confer upon the holder or holders thereof substantially the same
rights and privileges; provided, however, that in the case of secured evidences
of indebtedness, all of which are issued under a single indenture, differences
in the interest rates or maturity dates of various series thereof shall not be
deemed sufficient to constitute such series different classes and provided,
further, that, in the case of unsecured evidences of indebtedness, differences
in the interest rates or maturity dates thereof shall not be deemed sufficient
to constitute them securities of different classes, whether or not they are
issued under a single indenture.

Section 7.09  Eligibility
of Trustee. There shall at all times be a trustee hereunder which shall be
a corporation organized and doing business under the laws of the United States
or of any State or Territory thereof or of the District of Columbia, which (a) is
authorized under such laws to exercise corporate trust powers, and (b) is
subject to supervision or reexamination by Federal, State, Territorial or
District of Columbia authority and (c) shall have at all times a combined
capital and surplus of not less than one hundred million dollars. 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 at any time shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published. In case at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 7.10.

 47
 

 

Section 7.10  Resignation
or Removal of Trustee. (a)  The Trustee, or any trustee or trustees
hereafter appointed, may, upon sixty days’ written notice to the Company, at
any time resign with respect to one or more or all series by giving written
notice of resignation to the Company, 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 London, (ii) if any Unregistered Securities of a
series affected are then outstanding, by mailing notice of such resignation to
the Holders thereof who have filed their names and addresses with the Trustee
as described in Section 5.04 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 Security Register. Upon receiving such
notice of resignation the Company shall promptly a point a successor trustee
with respect to the applicable series by written instrument, in duplicate,
executed by order of the Board of Directors of the Company, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and
have accepted appointment within thirty days after the mailing of such notice
of resignation to the Securityholders, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee, or
any Securityholder who has been a bona fide Holder of a Security or Securities
of the applicable series for at least six months may, subject to the provisions
of Section 6.08, 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:

(1)           the Trustee shall fail to comply,
with the provisions of subsection (a) of Section 7.08 with respect to
any series of Securities after written request therefor by the Company 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

(2)           the Trustee shall cease to be
eligible in accordance with the provisions of Section 7.09 with respect to
any series of Securities 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 with respect to any series of Securities, or, shall be adjudged a
bankrupt or insolvent, or a receiver of the Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation,

then, in any such case, the Company may remove the
Trustee with respect to the applicable series of Securities and appoint a
successor trustee with respect to such series by written instrument, in
duplicate, executed by order of the Board of Directors of the Company, one copy
of which instrument shall be delivered to the Trustee so removed and one copy
to the successor trustee, or, subject to the provisions of Section 6.08,
any Securityholder of such series who has been a bona fide Holder of a Security
or Securities of the applicable series for at least six months may, on behalf
of himself and all others similarly situated, petition any court of competent 

 48
 

 

jurisdiction for the removal of the Trustee and the
appointment of a successor trustee with respect to such series. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

(c)           The Holders of a
majority in aggregate principal amount of the Securities of any series 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.

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

Section 7.11  Acceptance
by Successor Trustee. Any successor trustee appointed as provided in Section 7.10
shall execute, acknowledge and deliver to the Company 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 the rights,
powers, duties and obligations with respect to such series of its predecessor
hereunder, with like effect as if originally named as trustee herein; but,
nevertheless, on the written request of the Company or of the successor
trustee, the trustee ceasing to act shall, upon payment of any amounts then due
it pursuant to the provisions of Section 7.06, execute and deliver an
instrument transferring to such successor trustee all the rights and powers of
the trustee so ceasing to act. Upon request of any such successor trustee, the
Company shall execute any and all instruments in writing in order more fully
and certainly to vest in and confirm to such successor trustee all such rights
and powers. Any trustee leasing to act shall, nevertheless, retain a lien upon
all property or funds held or collected by such trustee to secure any amounts
then due it pursuant to the provisions of Section 7.06.

In case of the appointment hereunder of a successor
trustee with respect to the Securities of one or more (but not all) series, the
Company, 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 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 unless at the time of such acceptance such
successor trustee shall be qualified under the provisions of Section 7.08
and eligible under the provisions of section 7.09.

Upon acceptance of appointment by a successor trustee
as provided in this Section, the Company shall give notice of the succession of
such trustee hereunder (a) if any Unregistered 

 49
 

 

Securities of a series 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, (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 5.04,
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
Company 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 Security Register. If the Company fails
to mail such notice in the prescribed manner within ten days after the
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be so given at the expense of the Company.

Section 7.12  Successor
by Merger, Etc. Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be qualified under the provisions of Section 7.08 and
eligible under the provisions of Section 7.09, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.

Section 7.13  Limitations
on Rights of Trustee as Creditor. (a)  Subject to the provisions of
subsection (b) of this Section, if the Trustee shall be or shall become a
creditor directly or indirectly, secured or unsecured, of the Company or on any
other obligor on the Securities within three months prior to a default, as
defined in subsection (c) of this Section, or subsequent to such a
default, then, unless and until such default shall be cured, the Trustee shall
set apart and hold in a special account for the benefit of the Trustee
individually, the Holders of the Securities of any series for which it is
acting as trustee, the Holders of any coupons appertaining to such Securities,
and the holders of other indenture securities (as defined in subsection (c) of
this Section):

(1)           an amount equal to any and all
reductions in the amount due and owing upon any claim as such creditor in
respect of principal or interest, effected after the beginning of such three
months’ period and valid as against the Company and its other creditors, except
any such reduction resulting from the receipt or disposition of any property
described in paragraph (2) of this subsection or from the exercise of any
right of set-off which the Trustee could have exercised if a petition in
bankruptcy had been filed by or against the Company upon the date of such
default; and

(2)           all property received by the Trustee
in respect of any claim as such creditor, either as security therefor, or in
satisfaction or composition thereof, or otherwise, after the beginning of such
three months’ period, or an amount equal to the proceeds of any such property,
if disposed of, subject, however, to the rights, if any, of the Company and its
other creditors, in such property or such proceeds.

Nothing herein contained, however, shall affect the
right of the Trustee:

 50
 

 

(A)          to
retain for its own account (i) payments made on account of any such claim
by any person (other than the Company) who is liable thereon, and (ii) the
proceeds of the bona fide sale of any such claim by the Trustee to a third
person, and (iii) distributions made in cash, securities, or other
property in respect of claims filed against the Company in bankruptcy or
receivership or in proceedings for reorganization pursuant to Title 11 of the
United States Code or applicable State law;

(B)           to
realize, for its own account, upon any property held by it as security for any
such claim, if such property was so held prior to the beginning of such three
months’ period;

(C)           to
realize, for its own account, but only to the extent of the claim hereinafter
mentioned, upon any property held by it as security for any such claim, if such
claim was created after the beginning of such three months’ period and such
property was received as security therefor simultaneously with the creation
thereof, and if the Trustee shall sustain the burden of proving that at the
time such property was so received the Trustee had no reasonable cause to
believe that a default as defined in subsection (c) of this Section would
occur within three months; or

(D)          to
receive payment on any claim referred to in paragraph (B) or (C), against
the release of any property held as security for such claim as provided in such
paragraph (8) or (C), as the case may be, to the extent of the fair value
of such property.

For the purposes of paragraphs (B), (C) and (D),
property substituted after the beginning of such three months’ period for
property held as security at the time of such substitution shall, to the extent
of the fair value of the property released, have the same status as the
property released, and, to the extent that any claim referred to in any of such
paragraphs is created in renewal of or in substitution for or for the purpose
of prepaying or refunding any preexisting claim of the Trustee as such
creditor, such claim shall have the same status as such preexisting claim.

If the Trustee shall be required to account, the funds
property held in such special account and the Proceeds thereof shall be
apportioned between the Trustee, the Securityholders and the holders of other
indenture securities in such manner that the Trustee, the Securityholders and
the holders of other indenture securities realize, as a result of payments from
such special account and payments of dividends on claims filed against the
Company in bankruptcy or receivership or in proceedings for reorganization
pursuant to Title 11 of the United States Code or “applicable State law, the same
percentage of their respective claims, figured before crediting to the claim of
the Trustee anything on account of the receipt by it from the Company of the
funds and property in such special account and before crediting to the
respective claims of the Trustee, the Securityholders and the holders of the
other indenture securities, dividends on claims filed against the Company in
bankruptcy or receivership or in proceedings for reorganization pursuant to
Title 11 of the United States Code or applicable State law, but after crediting
thereon receipts on account of the indebtedness represented by their respective
claims from all sources other than from such dividends and from the funds and
property so held in such special account. As used in this paragraph, with
respect to any claim, the term “dividends” shall include any distribution with
respect to such claim, in bankruptcy or receivership or in proceedings for
reorganization pursuant to Title 11 of the United States Code or applicable
State law, whether such distribution is made 

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in cash, securities, or other property, but shall not
include any such distribution with respect to the secured portion, if any, of
such claim. The court in which such bankruptcy, receivership, or proceeding for
reorganization is pending shall have jurisdiction (i) to apportion between
the Trustee, the Securityholders and the holders of other indenture securities,
in accordance with the provisions of this paragraph, the funds and property
held in such special account and the proceeds thereof, or (ii) in lieu of
such apportionment, in whole or in part, to give to the provisions of this
paragraph due consideration in determining the fairness of the distributions to
be made to the Trustee, the Securityholders and the holders of other indenture
securities with respect to their respective claims, in which event it shall not
be necessary to liquidate or to appraise the value of any securities or other
property held in such special account or as security for any such claim, or to
make a specific allocation of such distributions as between the secured and
unsecured portions of such claims, or otherwise to apply the provisions of this
paragraph as a mathematical formula.

Any Trustee who has resigned or been removed after the
beginning of such three months’ period shall be subject to the provisions of
this subsection (a) as though such resignation or removal had not
occurred. If any Trustee has resigned or been removed prior to the beginning of
such three months’ period, it shall be subject to the provisions of this
subsection (a) if and only if the following conditions exist:

(i)            the receipt of
property or reduction of claim which would have given rise to the obligation to
account, if such Trustee had continued as trustee, occurred after the beginning
of such three months’ period; and

(ii)           such receipt of
property or reduction of claim occurred within three months after such
resignation or removal.

(b)           There
shall be excluded from the operation of subsection (a) of this Section a
creditor relationship arising from:

(1)           the ownership or
acquisition of securities issued under any indenture, or any security or
securities having a maturity of one year or more at the time of acquisition by
the Trustee;

(2)           advances authorized
by a receivership or bankruptcy court of competent jurisdiction, or by this
Indenture, for the purpose of preserving any property which shall at any time
be subject to the lien of this Indenture or of discharging tax liens or other
prior liens or encumbrances thereon, if notice of such advance and of
circumstances surrounding the making thereof is given to the Securityholders at
the time and in the manner provided in this Indenture;

(3)           disbursements made
in the ordinary course of business in the capacity of trustee under an indenture,
transfer agent, registrar, custodian, paying agent, fiscal agent or depositary,
or other similar capacity;

(4)           an indebtedness
created as a result of services rendered or premises rented; or an indebtedness
created as a result of goods or securities sold in a cash transaction as
defined in subsection (c) of this Section;

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(5)           the ownership of
stock or of other securities of a corporation organized under the provisions of
Section 25(a) of the Federal Reserve Act, as amended, which is
directly or indirectly a creditor of the Company; or

(6)           the acquisition, ownership,
acceptance or negotiation of any drafts, bills of exchange, acceptances, or
obligations which fall within the classification of self-liquidating paper as
defined in subsection (c) of this Section.

(c)           As used in this
Section:

(1)           The term “default” shall mean any
failure to make payment in full of the principal of or interest upon any of the
Securities or upon the other indenture securities when and as such principal or
interest becomes due and payable.

(2)           The term “other indenture securities”
shall mean securities upon which the Company is an obligor (as defined in the
Trust Indenture Act of 1939) outstanding under any other indenture (A) under
which the Trustee is also trustee, (B) which contains provisions
substantially similar to the provisions of subsection (a) of this Section,
and (C) under which a default exists at the time of the apportionment of
the funds and property held in said special account.

(3)           The term “cash transaction” shall
mean any transaction in which full payment for goods or securities sold is made
within seven days after delivery of the goods or securities in currency or in
checks or other orders drawn upon banks or bankers and payable upon demand.

(4)           The term “self-liquidating paper”
shall mean any draft, bill of exchange, acceptance or obligation which is made,
drawn, negotiated or incurred by the Company for the purposes of financing the
purchase, processing, manufacture, shipment, storage or sale of goods, wares or
merchandise and which is secured by documents evidencing title to, possession
of, or a lien upon, the goods, wares or merchandise or the receivables or
proceeds arising from the sale of the goods, wares or merchandise previously
constituting the security, provided the security is received by the Trustee
simultaneously with the creation of the creditor relationship with the Company
arising from the making, drawing, negotiating or incurring of the draft, bill
of exchange, acceptance or obligation.

(5)           The term “Company” shall mean any
obligor upon the Securities.

ARTICLE EIGHT

CONCERNING THE SECURITYHOLDERS

Section 8.01  Action by
Securityholders. Whenever in this Indenture it is provided that the Holders
of a specified aggregate principal amount of the outstanding Securities of any
series may take any action (including the making of any demand or request, the
giving of any notice, consent or waiver or the taking of any other action), the
fact that at the time of taking any such action the Holders of such specified
amount have joined therein may be evidenced (a) by any instrument or any
number of instruments of similar tenor executed by Securityholders in person or
by agent or proxy appointed in writing, or (b) by the record of the
Holders of securities voting 

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in favor thereof at any meeting of Securityholders
duly called and held in accordance with the provisions of Article Nine, or
(c) by a combination of such instrument or instruments and any such record
of such a meeting of Securityholders.

In determining whether the Holders of a specified
aggregate principal amount of the Outstanding Securities have taken 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 principal amount of
any original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be outstanding for such purposes
shall be equal to the amount of the principal thereof that could be declared to
be due and payable upon an Event of Default pursuant to the terms of such
Original Issue Discount Security at the time the taking of such action is
evidenced to the Trustee.

Section 8.02  Proof of
Execution by Securityholders. Subject to the provisions of Sections 7.01,
7.02 and 9.05, proof of the execution of any instrument by a Securityholder or
its agent or proxy shall be sufficient if made in the following manner:

(a)           In the case of
Holders of Unregistered Securities, the fact and date of the execution by any
such person of any instrument may be proved by the certificate of any notary
public or other officer of any jurisdiction authorized to take acknowledgments
of deeds or administer oaths that the person executing such instruments
acknowledged to him the execution thereof, or by an affidavit of a witness to
such execution sworn to before any such notary or other such officer. Where
such execution is by or on behalf of any legal entity other than an individual,
such certificate or affidavit shall also constitute sufficient proof of the
authority of the person executing the same. The fact of the holding by any
Holder of a Security of any series, and the identifying number of such Security
and the date of his holding the same, may be proved by the production of such
Security or by a certificate executed by any trust company, bank, banker or
recognized securities dealer wherever situated satisfactory to the Trustee, if
such certificate shall be deemed by the Trustee to be satisfactory. Each such
certificate shall be dated and shall state that on the date thereof a Security
of such series bearing a specified identifying number was deposited with or
exhibited to such trust company, bank, banker or recognized securities dealer
by the person named in such certificate. Any such certificate may be issued in
respect of one or more Securities of one or more series specified therein. The
holding by the person named in any such certificate of any Securities of any
series specified therein shall be presumed to continue for a period of one year
from the date of such certificate unless at the time of any determination of
such holding (1) another certificate bearing a later date issued in
respect of the same Securities shall be produced, or (2) the Security of
such series specified in such certificate shall be produced by some other
person, or (3) the Security of such series specified in such certificates
shall have ceased to be outstanding. Subject to Sections 7.01. 7.02 and 9.05,
the fact and date of the execution of any such instrument and the amount and
numbers of Securities of any series held by the person so executing such
instrument and the amount and numbers of any Security or Securities for such
series may also be proven in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee for such series or in any other
manner which the Trustee for such series may deem sufficient.

(b)           In the case of
Registered Securities, the ownership of such Securities shall be proved by the
Security Register or by a certificate of the Security Registrar.

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Section 8.03  Who are
Deemed Absolute Owners. The Company, the Trustee, any paying agent, any
transfer agent and any Security Registrar 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 Company, the
Trustee, any paying agent, any transfer agent nor any Security Registrar shall
be affected by any notice to the contrary. The Company, the Trustee, any paying
agent, any transfer agent and any Security Registrar may, subject to Section 2.04
hereof, treat the person in whose name a Registered Security shall be
registered upon the Security Register as the absolute owner of such Registered
Security (whether or not such Registered Security shall be overdue) for the
purpose of receiving payment thereof or on account thereof and for all other
purposes and neither the Company, the Trustee, any paying agent, any transfer
agent nor any Security Registrar shall be affected by any notice to the
contrary.

Section 8.04  Company-Owned
Securities Disregarded. In determining whether the Holders of the required
aggregate principal amount of Securities have given any request, demand,
authorization, direction, notice, consent or waiver under this Indenture,
Securities which are owned by the Company or by any person directly or
indirectly controlling or controlled by or under direct or indirect control
with the Company, 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 request, demand,
authorization, direction, notice, consent or waiver only Securities which the
Trustee knows are so owned shall be disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding for the purposes of
this Section if the pledgee shall establish to the satisfaction of the
Trustee the pledgor’s right to vote such securities and that the pledgee is not
a person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company. 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.

Section 8.05  Revocation
of Consents; Future Securityholders Bound. At any time prior to the taking
of any action by the Holders of the aggregate principal amount of the
Outstanding Securities specified in this Indenture in connection with such
action, any Holder of a Security the identifying number of which is shown by the
evidence to be included in the Securities the Holders of which have consented
to such action may, by filing written notice with the Trustee at its office and
upon proof of holding as provided in Section 8.02, revoke such action so
far as concerns such 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 Security issued
in exchange or substitution therefor Irrespective of whether or not any
notation in regard thereto is made upon such Security. Any action taken by the
Holders of the aggregate principal amount of the Securities specified in this
Indenture in connection with such action shall be conclusively binding upon the
Company, the Trustee and the Holders of all the Securities of each series
intended to be affected thereby.

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ARTICLE NINE

SECURITYHOLDERS’ MEETINGS

Section 9.01  Purposes of
Meetings. A meeting of Securityholders of any series may be called at any
time and from time to time pursuant to the provisions of this Article for
any of the following purposes:

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

(2)           to remove the Trustee and appoint a
successor trustee pursuant to the provisions of Article Seven;

(3)           to consent to the execution of an
indenture or indentures supplemental hereto pursuant to the provisions of Section 10.02;
or

(4)           to take any other action authorized
to be taken by or on behalf of the Holders of any specified aggregate principal
amount of the Securities of such series, as the case may be, under any other
provision of this Indenture or under applicable law.

Section 9.02  Call of Meetings
by Trustee. The Trustee may at any time call a meeting of Holders of
Securities of any series to take any action specified in Section 9.01, to
be held at such time and at such place in the Borough of Manhattan, The City of
New York, or in London, as the Trustee shall determine. Notice of every meeting
of the Holders of Securities of any or all series, setting forth the time and
place of such meeting and in general terms the action proposed to be taken at
such meeting, shall be given (i) if any Unregistered Securities of such
series are then outstanding, to all Holders thereof, by publication at least
twice in an Authorized Newspaper in the Borough of Manhattan, The City of New
York and at least twice in an Authorized Newspaper in London prior to the date
fixed for the meeting, the first publication, in each case, to be not less than
twenty nor more than one hundred eighty days prior to the date fixed for the
meeting and the last publication to be not more than five days prior to the
date fixed for the meeting, (ii) if any Unregistered Securities of such
series are then Outstanding, to all Holders thereof who have filed their names
and addresses with the Trustee as described in Section 5.04, by mailing
such notice to such Holders at such addresses, not less than twenty nor more
than one hundred eighty days prior to the date fixed for the meeting and (iii) to
all Holders of then Outstanding Registered Securities of such series, by
mailing such notice to such Holders at their addresses as they shall appear on
the Security Register, not less than twenty nor more than one hundred eighty
days prior to the date fixed for the meeting. Failure of any Holder or Holders
to receive such notice or any defect therein shall in no case affect the
validity of any action taken at such meeting. Any meeting of Holders of
Securities of any series shall be valid without notice if the Holders of all
Securities of such series Outstanding, the Company and the Trustee are present
in person or by proxy or shall have waived notice thereof before or after the
meeting.

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Section 9.03  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 ten percent in aggregate principal
amount of the Securities of any series, as the case may be, then Outstanding,
shall have requested the Trustee to call a meeting of Securityholders of
Securities of such series to take any action authorized in Section 9.01,
by written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have mailed or published as
provided in Section 9.02, the notice of such meeting within thirty days
after receipt of such request, then the Company or the Holders of Securities of
such series in the amount above specified may determine the time and the place
in said Borough of Manhattan or London for such meeting and may call such
meeting to take any action authorized in Section 9.01, by mailing or
publishing notice thereof as provided in Section 9.02.

Section 9.04  Qualification
for Voting. To be entitled to vote at any meeting of Securityholders a
person shall be a Holder of one or more Securities of the series with respect
to which a meeting is being held or a person appointed by an instrument in
writing as proxy by such a Holder. The only persons who shall be entitled to be
present or to speak at any meeting of the Securityholders shall be the persons
entitled to vote at such meeting and their counsel and any representatives of
the Trustee and its counsel and any representatives of the Company and its
counsel.

Section 9.05  Regulations.
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Securityholders,
in regard to proof of the holding of Securities and of the appointment of
proxies, and in regard to the appointment and duties of inspectors of votes,
the submission and examination of proxies, certificates and other evidence of
the right to vote, and such other matters concerning the conduct of the meeting
as it shall think fit.

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

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

Section 9.06  Voting.
The vote upon any resolution submitted to any meeting of Securityholders shall
be by written ballot on which shall be subscribed the signatures of the
Securityholders or proxies and on which shall be inscribed the identifying
number or numbers or 

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to which shall be attached a list of identifying
numbers of the 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 or against any resolution and who shall make and file with
the secretary of the meeting their verified reports in duplicate of all votes
cast at the meeting. A record in duplicate of the proceedings of each meeting
of Securityholders shall be prepared by the secretary of the meeting and there
shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and 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 9.02. The
record shall be signed and verified by the permanent chairman and secretary of
the meeting and one of the duplicates shall be delivered to the 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.

ARTICLE TEN

SUPPLEMENTAL INDENTURES

Section 10.01  Supplemental
Indentures Without Consent of Securityholders. The Company, when authorized
by Board Resolution, and the Trustee may from time to time and at any time enter
into an indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act of 1939 as in force at the date of the
execution thereof) for one or more of the following purposes:

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

(b)           to add to the
covenants of the Company for the Holders of all or any series of Securities, or
the coupons appertaining to such Securities, to add any additional Events of
Default with respect to all or any series of Securities, or the coupons
appertaining to such Securities, or to surrender any right or power conferred
upon the Company;

(c)           to add or change any
of the provisions of this Indenture to such extent as shall be necessary to
permit or facilitate the issuance of global Securities or Securities of any
series in bearer form, registrable or not registrable as to principal, and with
or without interest coupons, and to provide for exchangeability of such
Securities with Registered Securities issued hereunder and to make all
appropriate changes for such purpose, and to add or change any of the provisions
of this Indenture to such extent as shall be necessary to permit or facilitate
the issuance of uncertificated Securities of any series;

(d)           to cure any
ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture or in the terms of any series of Securities which may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture or in the terms of any series of Securities; to convey,
transfer, assign, mortgage or pledge any property to or with the Trustee; or to
make such other provisions in regard to matters 

 58
 

 

or questions arising under this Indenture or under any
supplemental indenture or in the terms of any series of Securities as shall not
adversely affect the interests of the Holders of any series of Securities or
any coupons appertaining to such securities in any material respect;

(e)           to evidence and
provide for the acceptance and appointment hereunder by a successor trustee
with respect to the Securities of one or more series and to add or change any
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one trustee, pursuant
to Section 7.11;

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

(g)           to provide for the
terms and conditions of conversion into Common Stock of the Securities of any
series which are convertible into Common Stock, if different from those set
forth in Article 15.

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, assignment, mortgage or pledge of any
property thereunder, but the Trustee shall not be obligated to enter into any
such supplemental indenture which adversely affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

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

Section 10.02  Supplemental
Indentures With Consent of Securityholders. With the consent (evidenced as
provided in Section 8.01) of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities of each series
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 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 modifying in
any manner the rights of the Holders of the Securities of each such series or
any coupons appertaining to such Securities; provided, however, that, without the
consent of the Holder of each Outstanding Security affected thereby, no such
supplemental indenture shall:

(a)           extend the stated
maturity of any Securities, or reduce the principal amount thereof or premium,
if any, or reduce the rate or extend the time of payment of any interest or
Additional Amounts thereon or reduce the amount due and payable upon
acceleration of the maturity thereof or the amount provable in bankruptcy, or
make the principal of, or interest, premium or Additional Amounts on any Security
payable in any coin or currency other than that provided in such Security,

(b)           impair the right to
institute suit for the enforcement of any such payment on or after the stated
maturity thereof (or, in the case of Redemption, on or after the Redemption
date therefor),

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(c)           reduce the aforesaid
percentage in principal amount of Securities of any series, the consent of
whose Holders is required for any such supplemental indenture, or the consent
of whose Holders is required pursuant to Section 6.01 to waive defaults,
or

(d)           modify any of the
provisions of this Section or Section 6.09, except to increase any
such percentage or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, provided, however, that this clause shall not be
deemed to require the consent of any Holder with respect to changes in the
references to “the Trustee” and concomitant changes in this Section or the
deletion of this proviso, in accordance with the requirements of Sections 7.11
and 10.01(e).

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

An amendment under this Section 10.02 may not
make any change that adversely affects the rights under Article Fourteen
of any holder of an issue of Senior Indebtedness unless the holders of that
issue, pursuant to its terms, consent to the change.

Upon the request of the Company, accompanied by a copy
of 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 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.

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

Promptly after the execution and delivery by the
Company, and the Trustee of any supplemental indenture pursuant to the
provisions of this Section, the Trustee shall give notice of such supplemental
indenture (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 as described in Section 5.04, 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
London and in each case such notice shall set forth in general terms the
substance of such supplemental indenture. Any failure of the Company to mail or
publish such notice, or any defect therein, shall not, however in any way
impair or affect the validity of any such supplemental indenture.

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Section 10.03  Compliance
with Trust Indenture Act; Effect of Supplemental Indentures. Any
supplemental indenture executed pursuant to the provisions of this Article Ten
shall comply with the Trust Indenture Act of 1939, as then in effect. Upon the
execution of any supplemental indenture pursuant to the provisions of this Article Ten,
this Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the Holders
of 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.

The Trustee, subject to the provisions of Sections
7.01 and 7.02, may receive an opinion of Counsel as conclusive evidence that
any such supplemental indenture complies with the provisions of this Article Ten.

Section 10.04  Notation on Securities. Securities of
any series authenticated and delivered after the execution of any supplemental
indenture pursuant to the provision of this Article Ten may bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. New Securities of any series so modified as to conform,
in the opinion of the Trustee and the Board of Directors of the Company, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared by the Company, authenticated by the Trustee and delivered, without
charge to the Securityholders, in exchange for the Securities of such series
then outstanding.

ARTICLE ELEVEN

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 11.01  Company may Consolidate, Etc., Only On
Certain Terms. So long as any Securities shall be Outstanding, the Company
shall not consolidate with or merge into any other Person or convey, transfer
or lease its properties and assets substantially as an entirety to any Person
unless:

(a)           the
corporation formed by such consolidation or into which the Company is merged or
the Person which acquires by conveyance or transfer, or which leases, the
properties and assets of the Company substantially as an entirety shall be a
corporation organized and existing under the laws of the United States of
America, any State thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, the due and punctual payment of
the principal of (and premium, if any), interest, if any, and Additional
Amounts, if any, on all the Securities and the performance of every covenant of
this Indenture on the part of the Company to be performed or observed;

(b)           immediately
after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Company as a result of such transaction as having
been incurred by the Company 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;

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(c)           if,
as a result of any such consolidation or merger or such conveyance, transfer or
lease, properties or assets of the Company would become subject to a mortgage,
pledge, lien, security interest or other encumbrance of any nature which would
not be permitted by this Indenture, the Company or such successor corporation
or such person, firm or corporation, as the case may be, shall take such steps
as shall be necessary effectively to secure the Securities (together with, if
the Company so determines, any other indebtedness for money borrowed of the
Company then existing or thereafter created which is not subordinate to the
Securities) equally and ratably with (or, at the option of the Company, prior
to) all indebtedness secured thereby; and

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

Section 11.02  Successor
Corporation Substituted. So long as any Securities shall be outstanding,
upon any consolidation or any conveyance, transfer or lease of the properties
and assets of the Company substantially as an entirety in accordance with Section 11.01,
the successor corporation formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect if such successor
corporation had been named as the Company herein, and thereafter, except in the
case of a lease, the predecessor corporation shall be relieved of all
obligations and covenants under this Indenture and the Securities and any
coupons.

ARTICLE TWELVE

SATISFACTION AND DISCHARGE OF INDENTURE;

UNCLAIMED MONEYS

Section 12.01  Discharge
of Indenture. This Indenture shall upon Company Order cease to be of
further effect (except as to any surviving rights of registration of transfer
or exchange of Securities herein expressly provided for), and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

(a)           either:

(i)            all Securities theretofore
authenticated and delivered (other than (A) Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.07
and (B) Securities for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid
to the Company or discharged from such trust, as provided in Section 12.04)
have been delivered to the Trustee for cancellation; or

(ii)           all such Securities not theretofore
delivered to the Trustee for cancellation:

(A)          have
become due and payable, or

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(B)           will
become due and payable at their stated maturity within one year, or

(C)           are
to be called for Redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of Redemption by the Trustee in the name,
and at the expense, of the Company,

and the Company, in the case of (A), (B) or (C) above,
has deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose an amount sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any), interest, if any, and
Additional Amounts (if any) to the date of such deposit (in the case of
Securities which have become due and payable) or to the stated maturity or date
of Redemption, as the case may be;

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

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

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 7.06
and, if money shall have been deposited with the Trustee pursuant to subclause (ii) of
clause (a) of this Section or if money or obligations shall have been
deposited with or received by the Trustee pursuant to Section 13.02, the
obligations of the Trustee under Section 6.03 and Section 12.04 shall
survive.

Section 12.02  Deposited Moneys to be Held in Trust by
Trustee. Subject to Section 12.04, all moneys deposited with the
Trustee pursuant to this Indenture shall be held in trust and applied by it to
the payment, either directly or through any paying agent (including the Company
acting as its own paying agent), to the Holders of the particular securities
and of any coupons appertaining to such Securities 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 premium, if any),
interest, if any, and Additional Amounts, if any.

Section 12.03  Paying Agent to Repay Moneys Held. In
connection with the satisfaction and discharge of this Indenture, all moneys
then held by any paying agent under the provisions of this Indenture shall,
upon demand of the Company, 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.

Section 12.04  Return of Unclaimed Moneys. Any moneys
deposited with or paid to the Trustee or any paying agent for the payment of
the principal of (and premium, if any), interest, if any, and Additional
Amounts, if any, on any Security and not applied but remaining unclaimed for
three years after the date upon which such principal (and premium, if any),
interest, if any, and Additional Amounts, if any, shall have become due and
payable, shall be repaid to the Company by the Trustee or such paying agent on
demand, and the Holder of such Security or 

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any coupon appertaining to such Security 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 any paying agent with
respect to such moneys shall thereupon cease; provided, however, 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 in respect of
Unregistered Securities of any series, may at the expense of the Company cause
to be published once, in an Authorized Newspaper in the Borough of Manhattan,
The City of New York and once in an Authorized Newspaper in London, 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 publication, any unclaimed balance
of such money then remaining will be repaid to the Company.

ARTICLE THIRTEEN

DEFEASANCE AND COVENANT DEFEASANCE

Section 13.01  Applicability of Article; Company’s Option
to Effect Defeasance or Covenant Defeasance. Unless pursuant to Section 2.01
provision is made for the inapplicability of either or both of (a) defeasance
of the Securities of a series under Section 13.02 or (b) covenant
defeasance of the Securities of a series under Section 13.03, then the
provisions of such Section or Sections, as the case may be, together with
the other provisions of this Article Thirteen, shall be applicable to the
Securities of such series, and the Company may at its option by Board
Resolution, at any time, with respect to the Securities of such series, elect
to have either Section 13.02 (unless inapplicable) or Section 13.03
(unless inapplicable) be applied to the Outstanding securities of such series
upon compliance with the applicable conditions set forth below in this Article Thirteen.

Section 13.02  Defeasance and Discharge. Upon the
Company’s exercise of the option provided in Section 13.01 to defease the
Outstanding Securities of a particular series, the Company shall be discharged
from its obligations with respect to the Outstanding Securities of such series
on the date the applicable conditions set forth in Section 13.04 are
satisfied (hereinafter, “Defeasance”). Defeasance shall mean that the Company
shall be deemed to have paid and discharged the entire indebtedness represented
by the Outstanding Securities of such series and to have satisfied all its
other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging the same); provided, however, that the
following rights, obligations, powers, trusts, duties and immunities shall
survive until otherwise terminated or discharged hereunder: (a) the rights
of Holders of Outstanding Securities of such series to receive, solely from the
trust fund provided for in Section 13.04, payments in respect of the
principal of (and premium, if any), interest, if any, and Additional Amounts,
if any, on such Securities when such payments are due, (b) the Company’s
obligations with respect to such Securities under Sections 2.05, 2.06, 2.07,
4.02 and 12.04, (c) the rights, powers, trusts, duties and immunities of
the Trustee hereunder and (d) this Article Thirteen. Subject to
compliance with this Article Thirteen, the Company may exercise its option
with respect to defeasance under this Section 13.02 notwithstanding the
prior exercise of its option with respect to covenant defeasance under Section 13.03
in regard to the Securities of such series.

Section 13.03  Covenant Defeasance. Upon the Company’s
exercise of the option provided in Section 13.01 to obtain a covenant
defeasance with respect to the outstanding 

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Securities of a particular series, the Company shall
be released from its obligations under this Indenture (except its obligations
under Sections 2.05, 2.06, 2.07, 4.01, 4.02, 6.02, 7.05 and 7.10) with respect
to the Outstanding Securities of such series on and after the date the
applicable conditions set forth in Section 13.04 are satisfied
(hereinafter, “Covenant Defeasance”). Covenant defeasance shall mean that, with
respect to the Outstanding Securities of such series, the Company may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in this Indenture (except its obligations under Sections
2.05, 2.06, 2.07, 4.01, 4.02, 6.02, 7.05 and 7.10), whether directly or
indirectly by reason of any reference elsewhere herein in any such Section or
Article or by reason of any reference in any such Section or Article to
any other provision herein or in any other document, and such omission to
comply shall not constitute an Event of Default under Section 6.01(c) with
respect to Outstanding Securities of such series, and the remainder of this
Indenture and of the Securities of such series shall be unaffected thereby.

Section 13.04  Conditions
to Defeasance or Covenant Defeasance. The following shall be conditions to
defeasance under Section 13.02 and covenant defeasance under Section 13.03
with respect to the Outstanding Securities of a particular series:

(a)           The Company shall irrevocably have
deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 7.09 who shall agree to comply with
the provisions of this Article Thirteen applicable to it) as trust funds
in trust for the purpose of making the following payments, specifically pledged
as security for, and dedicated solely to, the benefit of the Holders of such
Securities, (i) money in an amount, or (ii) Governmental Obligations
which through the schedule payment of principal and interest in respect thereof
in accordance with their terms will provide, not later than the due date of any
payment, money in an amount, 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 and discharge, and which shall be applied by the Trustee (or
other qualifying trustee) to pay and discharge, (A) the principal of (and
premium, if any, on), each installment of principal of (and premium, if any),
interest (if any) and all Additional Amounts due (if any) on the Outstanding
Securities of such series on the stated maturity of such principal or
installment of principal, interest or Additional Amount and (B) any
mandatory sinking fund payments or analogous payments applicable to the
Outstanding Securities of such series on the day on which such payments are due
and payable in accordance with terms of this Indenture and of such Securities. For
this purpose, “Government Obligations” means securities that are (I) direct
obligations of the government which issued the currency in which the Securities
of such series are denominated for the payment of which its full faith and
credit is pledged or (II) obligations of a Person controlled or supervised
by and acting as an agency or instrumentality of such government the payment of
which is unconditionally guaranteed as a full faith and credit obligation by
such government, which, in either case, are not callable or redeemable at the
option of the issuer thereof, and shall also include a depository receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act
of 1933, as amended) as custodian with respect to any such Government
Obligation or a specific payment of principal of or interest on any such
Government Obligation held by such custodian for the account of the holder of
such depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by 

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the custodian in respect of such Government Obligation
or the specific payment of principal of or interest on such Government
Obligation evidenced by such depository receipt.

(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 of such series shall have occurred and
be continuing on the date of such deposit or, insofar as subsections 6.01(d) and
(e) are concerned, at any time during the period ending on the 91st day
after the date of such deposit (it being understood that this condition shall
not be deemed satisfied until the expiration of such period).

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

(d)           Such defeasance or
covenant defeasance shall not cause any securities of such series then listed
on any national securities exchange registered under the Securities Exchange
Act of 1934, as amended, to be delisted.

(e)           In the case of an
election with respect to Section 13.02, the Company shall have delivered
to the Trustee an Opinion of Counsel stating that (i) the Company has
received from the Internal Revenue Service a private letter ruling pertaining
to this transaction or a comparable form of transaction, or (ii) since the
date of this Indenture there has been a change in the applicable Federal income
tax law (including, but not limited to, a change in the Internal Revenue Code,
proposed, temporary or final Treasury regulations, Revenue Rulings, Revenue
Procedures, Internal Revenue Service Notices, Announcements, and other public
announcements), in either case to the effect that, and based thereon such
opinion shall confirm that, the Holders of the Outstanding Securities of such
series will not recognize income, gain or loss for Federal income tax purposes
as a result of such defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such defeasance had not occurred.

(f)            In the case of an
election with respect to Section 13.03, the Company shall have delivered
to the Trustee an opinion of Counsel to the effect that the Holders of the
Outstanding Securities of such series will not recognize income, gain or loss
for Federal income tax purposes as a result of such covenant defeasance and
will be subject to Federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such covenant defeasance had
not occurred.

(g)           Such defeasance or
covenant defeasance shall be effected in compliance with any additional terms,
conditions or limitations which may be imposed on the Company in connection
therewith pursuant to Section 3.01.

(h)           The Company shall
have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to
either the defeasance under Section 13.02 or the covenant defeasance under
Section 13.03 (as the case may be) have been complied with.

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Section 13.05  Deposited
Money and Government Obligations to be Held in Trust; Other Miscellaneous
Provisions. Subject to the provisions of Section 12.04, all money and
Government Obligations (including the proceeds thereof) deposited with the
Trustee (or other qualifying trustee — collectively for purposes of this Section 13.05,
the “Trustee”) pursuant to Section 13.04 in respect of the Outstanding
Securities of a particular series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any paying agent
(including the Company acting as its own paying agent) as the Trustee may
determine, to the Holders of such Securities of all sums due and to become due
thereon in respect of principal (and premium, if any), interest and Additional
Amounts, if any, but such money need not be segregated from other funds except
to the extent required by law.

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the
Government Obligations deposited pursuant to Section 13.04 or the
principal and interest received in respect thereof, other than any such tax,
fee or other charge which by law is for the account of the Holders of the
Outstanding Securities of such series.

Anything in this Article Thirteen to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company request any money or Government obligations held by it as
provided in Section 13.04 which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited for the purpose for which such money or
Government Obligations were deposited.

ARTICLE FOURTEEN

SUBORDINATION

Section 14.01  Agreement
to Subordinate. The Company, for itself and its successors, and each
Holder, by his acceptance of Securities, agree that the payment of the
principal of, any premium or interest on, or any other amounts due on the
Securities is subordinated in right of payment, to the extent and in the manner
stated in this Article Fourteen, to the prior payment in full of all
Senior Indebtedness. Each Holder by his acceptance of the Securities authorizes
and directs the Trustee on his behalf to take such action as may be necessary
or appropriate to effectuate, as between the holders of Senior Indebtedness and
such Holder, the subordination provided in this Article and appoints the
Trustee his attorney-in-fact for such purpose. If the Trustee does not file a
proper claim or proof of debt in the form required in any voluntary or
involuntary dissolution, winding up, liquidation, reorganization, arrangement
or similar proceedings relating to the Company prior to 30 days before the
expiration of time to file such claim or claims, then any holder or holders of
Senior Indebtedness or their representative or representatives are hereby
authorized to and have the right to file an appropriate claim for and on behalf
of the Holders.

The Securities shall be senior in right of payment and
in rights upon liquidation to all Junior Subordinated Indebtedness.

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Section 14.02  No Payment
on Securities if Senior Indebtedness in Default. Anything in this Indenture
to the contrary notwithstanding, no payment on account of principal of (and
premium, if any) or Redemption of, interest on or other amounts due on the
Securities, and no Redemption, purchase, or other acquisition of the
Securities, shall be made by or on behalf of the Company (i) unless full
payment of amounts then due for principal, sinking funds and interest and of
all other amounts then due on all Senior Indebtedness has been made or duly
provided for pursuant to the terms of the instrument governing such Senior
Indebtedness, (ii) if, at the time of such payment, Redemption, purchase
or other acquisition, or immediately after giving effect thereto, there shall
exist under any Senior Indebtedness, or any agreement pursuant to which any
Senior Indebtedness is issued, any default, which default shall not have been
cured or waived and which default shall have resulted in the full amount of
such Senior Indebtedness being declared due and payable or (iii) if, at
the time of such payment, Redemption, purchase or other acquisition, the
Trustee shall have received written notice from the holder or holders of any
Senior Indebtedness or their representative or representatives (a “Payment
Blockage Notice”) that there exists under such Senior Indebtedness, or any
agreement pursuant to which such Senior Indebtedness is issued, any default,
which default shall not have been cured or waived, permitting the holders
thereof to declare the full amount of such Senior Indebtedness due and payable,
but only for the period (the “Payment Blockage Period”) commencing on the date
of receipt of the Payment Blockage Notice and ending (unless earlier terminated
by notice given to the Trustee by the holders of such Senior Indebtedness) on
the earlier of (A) the date on which such event of default shall have been
cured or waived or (B) 180 days from the receipt of the Payment Blockage
Notice. Upon termination of a Payment Blockage Period, payments on account of
principal of, any premium or interest on, or any other amounts payable with
respect to the Securities (other than amounts due and payable by reason of the
acceleration of the maturity of the Securities) and redemptions, purchases or
other acquisitions may be made by or on behalf of the Company. Notwithstanding
anything herein to the contrary, (A) only one Payment Blockage Notice may
be given during any period of 360 consecutive days with respect to the same
event of default and any other events of default on the same issue of Senior
Indebtedness existing and known to the Person giving such notice at the time of
such notice and (B) no new Payment Blockage Period may be commenced by the
holder or holders of the same issue of Senior Indebtedness or their
representative or representatives during any period of 360 consecutive days
unless all events of default which were the object of the immediately preceding
Payment Blockage Notice, and any other event of default on the same issue of
Senior Indebtedness existing and known to the Person giving such notice at the
time of such notice, have been cured or waived. The provisions of this Section 14.02
shall not prevent a sinking fund payment (if any) in respect of Securities made
with Securities properly acquired prior to the happening of such default.

In the event that, notwithstanding the provisions of
this Section 14.02, payments are made by or on behalf of the Company in
contravention of the provisions of this Section 14.02, such payments shall
be held by the Trustee, any Paying Agent or the Holders, as applicable, in
trust for the benefit of, and shall be paid over to and delivered to, the
holders of Senior Indebtedness or their representative or the trustee under the
indenture or other agreement (if any), pursuant to which any instruments
evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, for application to the payment of all Senior Indebtedness
remaining unpaid to the extent necessary to pay all Senior Indebtedness in full
in

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accordance with the terms of such Senior Indebtedness,
after giving effect to any concurrent payment or distribution to or for the
holders of Senior Indebtedness.

The Company shall give prompt written notice to the
Trustee and any Paying Agent of any default under any Senior Indebtedness or
under any agreement pursuant to which any Senior Indebtedness may have been
issued.

Section 14.03  Distribution
on Acceleration of Securities; Dissolution and Reorganization; Subrogation of
Securities. (a)  Upon (i) any acceleration of the principal
amount due on the Securities because of an Event of Default or (ii) any
distribution of assets of the Company upon any dissolution, winding up,
liquidation or reorganization of the Company (whether in bankruptcy, insolvency
or receivership proceedings or upon an assignment for the benefit of creditors
or any other dissolution, winding up, liquidation or reorganization of the
Company):

(1)           the holders of all Senior
Indebtedness shall first be entitled to receive payment in full of the
principal thereof, the interest thereon and any other amounts due thereon
before the Holders are entitled to receive payment on account of the principal
of, any premium or interest on, or any other amounts due on the Securities;

(2)           any payment or distribution of assets
of the Company of any kind or character, whether in cash, property or
securities other than securities 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 subordinate, at least to
the extent provided in this Article Fourteen with respect to the
Securities, to the payment in full without diminution or modification by such
plan of all Senior Indebtedness), to which the Holders or the Trustee would be
entitled except for the provisions of this Article, shall be paid by the
liquidating trustee or agent or other Person making such a payment or
distribution, directly to the holders of Senior Indebtedness (or their
representatives) or trustee(s) acting on their behalf), ratably according
to the aggregate amounts remaining unpaid on account of the principal of, any
premium or interest on, and other amounts due on the Senior Indebtedness held
or represented by each, to the extent necessary to make payment in full of all
Senior Indebtedness remaining unpaid, after giving effect to any concurrent
payment or distribution to the holders of such Senior Indebtedness; and

(3)           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 other than securities 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 subordinate, at least to the extent provided in this Article with
respect to the Securities, to the payment in full without diminution or
modification by such plan of Senior Indebtedness), shall be received by the
Trustee or the Holders before all Senior Indebtedness is paid in full, such
payment or distribution shall be held in trust for the benefit of, and be paid
over to, the holders of the Senior Indebtedness remaining unpaid (or their
representatives) or trustee(s) acting on their behalf), ratably as
aforesaid, for application to the payment of such Senior 

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Indebtedness until all such Senior Indebtedness shall have been paid in
full, after giving effect to any concurrent payment or distribution to the
holders of such Senior Indebtedness.

Subject to the payment in full of all Senior
Indebtedness, the Holders shall be subrogated to the rights of the holders of
Senior Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to the Senior Indebtedness until the
principal of, any premium or interest on, and any other amounts payable with
respect to the Securities shall be paid in full and, for purposes of such
subrogation, no such payments or distributions to the holders of Senior
Indebtedness of cash, property or securities which otherwise would have been
payable or distributable to Holders shall, as between the Company, its
creditors other than the holders of Senior Indebtedness, and the Holders, be
deemed to be a payment by the Company to or on account of the Senior
Indebtedness, it being understood that the provisions of this Article Fourteen
are and are intended solely for the purpose of defining the relative rights of
the Holders, on the one hand, and the holders of Senior Indebtedness, on the
other hand.

Nothing contained in this Article or elsewhere in
this Indenture or in the Securities is intended to or shall impair, as between
the Company and its creditors other than the holders of Senior Indebtedness,
the obligation of the Company, which is absolute and unconditional, to pay to
the Holders the principal of, any premium or interest on, and any Additional
Amounts with respect to the Securities as and when the same shall become due
and payable in accordance with the terms of the Securities or is intended to or
shall affect the relative rights of the Holders and creditors of the Company
other than holders of Senior Indebtedness or, as between the Company and the
Trustee, the obligations of the Company to the Trustee, nor shall anything
herein or therein prevent the Trustee or the Holders from exercising all
remedies otherwise permitted by law upon default under this Indenture, subject
to the rights, if any, under this Article of the holders of Senior
Indebtedness in respect of cash, property and securities of the company
received upon the exercise of any such remedy. Upon distribution of assets of
the Company referred to in this Article, the Trustee, subject to the provisions
of Section 7.01 hereof, and the Holders shall be entitled to rely upon a
certificate of the liquidating trustee or agent or other Person making any
distribution to the Trustee or to the Holders for the purpose of ascertaining
the Persons entitled to participate in such distribution, the holders of the
Senior Indebtedness and other indebtedness of the Company, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article. The Trustee, however, shall
not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness.
Nothing contained in this Article Fourteen or elsewhere in this Indenture,
or in any of the Securities, shall prevent the application by the Trustee of
any moneys which were deposited with it hereunder, prior to its receipt of
written notice of facts which would prohibit such application, for the purpose
of the payment of or on account of the principal of, any premium or interest
on, or any Additional Amounts with respect to the Securities unless, prior to
the date on which such application is made by the Trustee, the Trustee shall be
charged with notice under Section 14.03(c) hereof of the facts which
would prohibit the making of such application.

(b)           The provisions of
this Article shall not be applicable to any cash, properties or securities
received by the Trustee or by any Holder when received as a holder of Senior 

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Indebtedness and nothing in this Indenture shall
deprive the Trustee or such Holder of any of its rights as such holder.

(c)           The Company shall
give prompt written notice to the Trustee of any fact known to the Company
which would prohibit the making of any payment of money to or by the Trustee in
respect of the Securities pursuant to the provisions of this Article. The
Trustee, subject to the provisions of Section 7.01 hereof, shall be
entitled to assume that no such fact exists unless the Company or any holder of
Senior Indebtedness or any trustee therefor has given such notice to the
Trustee. Notwithstanding the provisions of this Article or any other
provisions of this Indenture, the Trustee shall not be charged with knowledge
of the existence of any fact which would prohibit the making of any payment of
monies to or by the Trustee in respect of the Securities pursuant to the
provisions in this Article, unless, and until three Business Days after, the
Trustee shall have received written notice thereof at the address designated
pursuant to Section 17.03 hereof from the Company or any holder or holders
of Senior Indebtedness or from any trustee therefor; and, prior to the receipt
of any such written notice, the Trustee, subject to the provisions of Section 7.01
hereof, shall be entitled in all respects conclusively to assume that no such
fact exists; provided that if on a date not less than two Business Days
immediately preceding the date upon which by the terms hereof any such monies
may become payable for any purpose including, without limitation, the principal
of, any premium or interest on, and any Additional Amounts with respect to any
Security, and any amounts immediately due and payable upon the execution of any
instrument acknowledging satisfaction and discharge of this Indenture, as
provided in Article Four hereof), the Trustee shall not have received with
respect to such monies the notice provided for in this Section 14.03(c),
then, anything herein contained to the contrary notwithstanding, the Trustee
shall have full power and authority to receive such monies and to apply the
same to the purpose for which they were received, and shall not be affected by
any notice to the contrary which may be received by it on or after such prior
date.

The Trustee shall be entitled to rely on the delivery
to it of a written notice by a Person representing himself to be a holder of
Senior Indebtedness (or a trustee on behalf of such holder) to establish that
such notice has been given by a holder of Senior Indebtedness (or a trustee 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 Senior Indebtedness to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article, 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; nor shall the Trustee be charged with knowledge of the curing or
waiving of any default of the character specified in Section 14.02 hereof
or that any event or any condition preventing any payment in respect of the
Securities shall have ceased to exist, unless and until the Trustee shall have
received an Officer’s Certificate to such effect.

(d)           The provisions of
this Section 14.03 applicable to the Trustee shall also apply to any
Paying Agent for the Company.

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Section 14.04  Reliance
by Senior Indebtedness on Subordination Provisions. Each Holder of any
Security by his acceptance thereof acknowledges and agrees that the foregoing
subordination provisions are, and are intended to be, an inducement and a
consideration for each holder of any Senior Indebtedness, whether such Senior
Indebtedness was created or acquired before or after the issuance of the
Securities, to acquire and continue to hold, or to continue to hold, such
Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed
conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness. Notice
of any default in the payment of any Senior Indebtedness, except as expressly
stated in this Article, and notice of acceptance of the provisions hereof are
hereby expressly waived. Except as otherwise expressly provided herein, no
waiver, forbearance or release by any holder of Senior Indebtedness under such
Senior Indebtedness or under this Article shall constitute a release of
any of the obligations or liabilities of the Trustee or Holders of the
Securities provided in this Article. Except as otherwise expressly provided
herein, no right of any present or future holder of Senior Indebtedness to
enforce the subordination provisions hereof shall at any time or in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or any such holder or by any noncompliance by the Company with the terms,
provisions or covenants of this Indenture, regardless of any knowledge thereof
which such holder may have otherwise been charged with.

Section 14.05  Trustee’s
Relation to Senior Indebtedness. The Trustee in its individual capacity
shall be entitled to all the rights set forth in this Article in respect
of any Senior Indebtedness at any time held by it, to the same extent as any
holder of Senior Indebtedness, and nothing in this Indenture shall deprive the
Trustee of any of its rights as such holder.

With respect to the holders of Senior Indebtedness,
the Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article, and no implied
covenants or obligations with respect to the holders of Senior Indebtedness
shall be read into this Indenture against the Trustee. The Trustee shall not owe
any fiduciary duty to the holders of Senior Indebtedness but shall have only
such obligations to such holders as are expressly set forth in this Article.

Each Holder of a Security by his acceptance thereof
authorizes and directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this Article and
appoints the Trustee his attorney-in-fact for any and all such purposes,
including, in the event of any dissolution, winding up or liquidation or
reorganization under any applicable bankruptcy law of the Company (whether in
bankruptcy, insolvency or receivership proceedings or otherwise), the timely
filing of a claim for the unpaid balance of such Holder’s Securities in the
form required in such proceedings and the causing of such claim to be approved.
If the Trustee does not file a claim or proof of debt in the form required in
such proceedings prior to 10 days before the expiration of the time to file
such claims or proofs, then the holders of Senior Indebtedness, jointly, or
their representative shall have the right to demand, sue for, collect, receive
and receipt for the payments and distributions in respect of the Securities
which are required to be paid or delivered to the holders of Senior
Indebtedness as provided in this Article and to file and prove all claims
therefor and to take all such other action in the name of the Holders or
otherwise, as such holder of Senior Indebtedness or representative thereof may
determine to be necessary or appropriate for the enforcement of the provisions
of this Article.

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Section 14.06  Other
Provisions Subject Hereto. Except as expressly stated in this Article,
notwithstanding anything contained in this Indenture to the contrary, all the
provisions of this Indenture and the Securities are subject to the provisions
of this Article. However, nothing in this Article shall apply to or
adversely affect the claims of, or payment to, the Trustee pursuant to Section 7.06.

ARTICLE FIFTEEN

CONVERSION

Section 15.01  Conversion
Privilege. If so provided in a Board Resolution with respect to the
Securities of any series, the Holder of a Security of such series shall have
the right, at such Holder’s option, to convert, in accordance with the terms of
such series of Securities and this Article Fifteen, all or any part (in a
denomination of, unless otherwise specified in a Board Resolution or
supplemental indenture with respect to Securities of such series, $1,000 in
principal amount or any integral multiple thereof) of such Security into shares
of Common Stock or, as to any Securities called for redemption, at any time
prior to the time and date fixed for such redemption (unless the Company shall
default in the payment of the Redemption Price, in which case such right shall
not terminate at such time and date). The provisions of this Article Fifteen
shall not be applicable to the Securities of a series unless otherwise
specified in a Board Resolution with respect to the Securities of such series.

Section 15.02  Conversion
Procedure; Conversion Price; Fractional Shares. (a)  Each Security to
which this Article is applicable shall be convertible at the office of the
Conversion Agent, and at such other place or places, if any, specified in a
Board Resolution with respect to the Securities of such series, into fully paid
and nonassessable shares (calculated to the nearest 1/100th of a share) of
Common Stock. The Securities will be converted into shares of Common Stock at
the Conversion Price therefor. No payment or adjustment shall be made in
respect of dividends on the Common Stock or accrued interest on a converted
Security except as described in Section 15.09. The Company may, but shall
not be required, in connection with any conversion of Securities, to issue a
fraction of a share of Common Stock and, if the Company shall determine not to
issue any such fraction, the Company shall, subject to Section 15.03(4),
make a cash payment (calculated to the nearest cent) equal to such fraction
multiplied by the Closing Price of the Common Stock on the last Trading Day
prior to the date of conversion.

(b)           Before any Holder of
a Security shall be entitled to convert the same into Common Stock, such Holder
shall surrender such Security duly endorsed to the Company or in blank, at the
office of the Conversion Agent or at such other place or places, if any, specified
in a Board Resolution with respect to the Securities of such series, and shall
give written notice to the Company at said office or place that he elects to
convert the same and shall state in writing therein the principal amount of
Securities to be converted and the name or names (with addresses) in which he
wishes the certificate or certificates for Common Stock to be issued; provided,
however, that no Security or portion thereof shall be accepted for conversion
unless the principal amount of such Security or such portion, when added to the
principal amount of all other Securities or portions thereof then being
surrendered by the Holder thereof for conversion, exceeds the then effective
Conversion Price with respect thereto. If more than one Security shall be
surrendered for conversion at one time by the same Holder, the number of full
shares of Common Stock which shall be deliverable upon conversion shall be
computed on the basis of the 

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aggregate principal amount of the Securities (or
specified portions thereof to the extent permitted thereby) so surrendered. Subject
to the next succeeding sentence, the Company will, as soon as practicable
thereafter, issue and deliver at said office or place to such Holder of a
Security, or to his nominee or nominees, certificates for the number of full
shares of Common Stock to which he shall be entitled as aforesaid, together,
subject to the last sentence of paragraph (a) above, with cash in lieu of
any fraction of a share to which he would otherwise be entitled. The Company
shall not be required to deliver certificates for shares of Common Stock while
the stock transfer books for such stock or the Security Register are duly
closed for any purpose, but certificates for shares of Common Stock shall be
issued and delivered as soon as practicable after the opening of such books or
Security Register. A Security shall be deemed to have been converted as of the
close of business on the date of the surrender of such Security for conversion
as provided above, and the Person or Persons entitled to receive the Common
Stock issuable upon such conversion shall be treated for all purposes as the
record Holder or Holders of such Common Stock as of the close of business on
such date. In case any Security shall be surrendered for partial conversion,
the Company shall execute and the Trustee shall authenticate and deliver to or
upon the written order of the Holder of the Securities so surrendered, without
charge to such Holder (subject to the provisions of Section 15.08), a new
Security or securities in authorized denominations in an aggregate principal
amount equal to the unconverted portion of the surrendered Security.

Section 15.03  Adjustment
of Conversion Price for Common Stock. The Conversion Price with respect to
any Security which is convertible into Common Stock shall be adjusted from time
to time as follows:

(1)           In case the Company shall, at any
time or from time to time while any of such securities are outstanding, (i) pay
a dividend in shares of its Common Stock to holders of Common Stock, (ii) combine
its outstanding shares of Common Stock into a smaller number of shares of
Common Stock, (iii) subdivide its outstanding shares of Common Stock into
a greater number of shares of Common Stock or (iv) make a distribution in
shares of Common Stock to holders of Common Stock, then the Conversion Price in
effect immediately before such action shall be adjusted so that the Holders of
such Securities, upon conversion thereof into Common Stock immediately
following such event, shall be entitled to receive the kind and amount of
shares of capital stock of the Company which they would have owned or been
entitled to receive upon or by reason of such event if such Securities had been
converted immediately before the record date (or, if no record date, the
effective date) for such event. An adjustment made pursuant to this Section 15.03(l) shall
become effective retroactively immediately after the record date in the case of
a dividend or distribution and shall become effective retroactively immediately
after the effective date in the case of a subdivision or combination. For the
purposes of this Section 15.03(l), each Holder of Securities shall be
deemed to have failed to exercise any right to elect the kind or amount of
securities receivable upon the payment of any such dividend, subdivision,
combination or distribution (provided that if the kind or amount of securities
receivable upon such dividend, subdivision, combination or distribution is not
the same for each nonelecting share, then the kind and amount of securities or
other property receivable upon such dividend, subdivision, combination or
distribution for each nonelecting share shall be 

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                deemed to be the
kind and amount so receivable per share by a plurality of the nonelecting
shares).

(2)           In case the Company
shall, at any time or from time to time while any of such Securities are
outstanding, issue rights or warrants to all holders of shares of its Common
Stock entitling them (for a period expiring within 45 days after the record
date for such issuance) to subscribe for or purchase shares of Common Stock (or
securities convertible into shares of Common Stock) at a price per share less
than the Current Market Price of the Common Stock at such record date (treating
the price per share of the securities convertible into Common Stock as equal to
(x) the sum of (i) the price for a unit of the security convertible
into Common Stock and (ii) any additional consideration initially payable
upon the conversion of such security into Common Stock divided by (y) the
number of shares of Common Stock initially underlying such convertible
security), the Conversion Price with respect to such Securities shall be
adjusted so that it shall equal the price determined by dividing the Conversion
Price in effect immediately prior to the date of issuance of such rights or
warrants by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding on the date of issuance of such rights or warrants
plus the number of additional shares of Common Stock offered for subscription
or purchase (or into which the convertible securities so offered are initially
convertible), and the denominator of which shall be the number of shares of
Common Stock outstanding on the date of issuance of such rights or warrants
plus the number of shares or securities which the aggregate offering price of
the total number of shares or securities so offered for subscription or
purchase (or the aggregate purchase price of the convertible securities so
offered plus the aggregate amount of any additional consideration initially
payable upon conversion of such securities into Common Stock) would purchase at
such Current Market Price of the Common Stock. Such adjustment shall become
effective retroactively immediately after the record date for the determination
of stockholders entitled to receive such rights or warrants.

(3)           In case the Company
shall, at any time or from time to time while any of such Securities are
outstanding, distribute to all holders of shares of its Common Stock(including
any such distribution made in connection with a consolidation or merger in
which the Company is the continuing corporation and the Common Stock is not
changed or exchanged) cash, evidences of its indebtedness, securities or assets
(excluding (i) regular periodic cash dividends in amounts, if any,
determined from time to time by the Board of Directors, (ii) dividends
payable in shares of Common Stock for which adjustment is made under Section 15.03(l) or
(iii) rights or warrants to subscribe for or purchase securities of the
Company (excluding those referred to in Section 15.03(2))), then in each
such case the Conversion Price with respect to such Securities shall be
adjusted so that it shall equal the price determined by dividing the Conversion
Price in effect immediately prior to the date of such distribution by a
fraction, the numerator of which shall be the Current Market Price of the
Common Stock on the record date referred to below, and the denominator of which
shall be such Current Market Price of the Common Stock less the then fair
market value (as determined by the Board of Directors of the Company, whose
determination shall be conclusive) of the portion of the cash or assets or
evidences of indebtedness or securities so distributed or of such subscription
rights or warrants applicable to one share of Common Stock (provided that such 

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denominator shall never
be less than 1.0); provided, however, that no adjustment shall be made with
respect to any distribution of rights to purchase securities of the Company if
a Holder of Securities would otherwise be entitled to receive such rights upon
conversion at any time of such Securities into Common Stock unless such rights
are subsequently redeemed by the Company, in which case such redemption shall
be treated for purposes of this section as a dividend on the Common Stock. Such
adjustment shall become effective retroactively immediately after the record
date for the determination of stockholders entitled to receive such
distribution; and in the event that such distribution is not so made, the
Conversion Price shall again be adjusted to the Conversion Price which would
then be in effect if such record date had not been fixed.

(4)           The Company shall be
entitled to make such additional adjustments in the Conversion Price, in
addition to those required by subsections 15.03(1), 15.03(2) and 15.03(3),
as shall be necessary in order that any dividend or distribution of Common
Stock, any subdivision, reclassification or combination of shares of Common Stock
or any issuance of rights or warrants referred to above shall not be taxable to
the holders of Common Stock for United States Federal income tax purposes.

(5)           In any case in which
this Section 15.03 shall require that any adjustment be made effective as
of or retroactively immediately following a record date, the Company may elect
to defer (but only for five (5) Trading Days following the filing of the
statement referred to in Section 15.05) issuing to the Holder of any
Securities converted after such record date the shares of Common Stock and
other capital stock of the Company issuable upon such conversion over and above
the shares of Common Stock and other capital stock of the company issuable upon
such conversion on the basis of the Conversion Price prior to adjustment;
provided, however, that the Company shall deliver to such Holder a due bill or
other appropriate instrument evidencing such Holder’s right to receive such
additional shares upon the occurrence of the event requiring such adjustment.

(6)           All calculations
under this Section 15.03 shall be made to the nearest cent or
one-hundredth of a share or security, with one-half cent and 0.005 of a share,
respectively, being rounded upward. Notwithstanding any other provision of this
Section 15.03, the Company shall not be required to make any adjustment of
the Conversion Price unless such adjustment would require an increase or
decrease of at least 1% of such price. Any lesser adjustment shall be carried
forward and shall be made at the time of and together with the next subsequent
adjustment which, together with any adjustment or adjustments so carried
forward, shall amount to an increase or decrease of at least 1% in such price.
Any adjustments under this Section 15.03 shall be made successively whenever
an event requiring such an adjustment occurs.

(7)           In the event that at
any time, as a result of an adjustment made pursuant to this Section 15.03,
the Holder of any Security thereafter surrendered for conversion shall become
entitled to receive any shares of stock of the Company other than shares of
Common Stock into which the Securities originally were convertible, the
Conversion Price of such other shares so receivable upon conversion of any such
Security shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as 

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to practicable the provisions with respect to Common Stock contained in
subparagraphs (1) through (6) of this Section 15.03, and the
provision of Sections 15.01, 15.02 and 15.04 through 15.09 with respect to the
Common Stock shall apply on like or similar terms to any such other shares and
the determination of the Board of Directors as to any such adjustment shall be
conclusive.

(8)           No adjustment shall be made pursuant
to this Section (i) if the effect thereof would be to reduce the
Conversion Price below the par value (if any) of the Common Stock or (ii) subject
to 15.03(5) hereof, with respect to any Security that is converted prior
to the time such adjustment otherwise would be made.

Section 15.04  Consolidation
or Merger of the Company. In case of either (a) any consolidation or
merger to which the Company is a party, other than a merger or consolidation in
which the company is the surviving or continuing corporation and which does not
result in a reclassification of, or change (other than a change in par value or
from par value to no par value or from no par value to par value, as a result
of a subdivision or combination) in, outstanding shares of Common Stock or (b) any
sale or conveyance of all or substantially all of the property and assets of
the Company to another Person, then each Security then outstanding shall be
convertible from and after such merger, consolidation, sale or conveyance of
property and assets into the kind and amount of shares of stock or other
securities and property (including cash) receivable upon such consolidation,
merger, sale or conveyance by a holder of the number of shares of Common Stock
into which such Securities would have been converted immediately prior to such consolidation,
merger, sale or conveyance, subject to adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Article Fifteen
(and assuming such holder of Common Stock failed to exercise his rights of election,
if any, as to the kind or amount of securities, cash or other property
(including cash) receivable upon such consolidation, merger, sale or conveyance
(provided that, if the kind or amount of securities, cash or other property
(including cash) receivable upon such consolidation, merger, sale or conveyance
is not the same for each nonelecting share, then the kind and amount of
securities, cash or other property (including cash) receivable upon such
consolidation, merger, sale or conveyance for each nonelecting share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
nonelecting shares or securities)). The Company shall not enter into any of the
transactions referred to in clause (a) or (b) of the preceding
sentence unless effective provision shall be made so as to give effect to the
provisions set forth in this Section 15.04. The provisions of this Section 15.04
shall apply similarly to successive consolidations, mergers, sales or
conveyances.

Section 15.05  Notice of
Adjustment. Whenever an adjustment in the Conversion Price with respect to
a series of Securities is required:

(1)           the Company shall forthwith place on
file with the Trustee and any Conversion Agent for such Securities a
certificate of the Treasurer of the Company, stating the adjusted Conversion
Price determined as provided herein and setting forth in reasonable detail such
facts as shall be necessary to show the reason for and the manner of computing
such adjustment, such certificate to be conclusive evidence that the adjustment
is correct; and

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(2)           a notice stating that the Conversion
Price has been adjusted and setting forth the adjusted Conversion Price shall
forthwith be mailed, first class postage prepaid, by the Company to the Holders
of record of such Outstanding Securities.

Section 15.06  Notice in
Certain Events.

In case:

(1)           of a consolidation or merger to which
the Company is a party and for which approval of any stockholders of the
company is required, or of the sale or conveyance to another Person or entity
or group of Persons or entities acting in concert as a partnership, limited
partnership, syndicate or other group (within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934) of all or substantially all of the
property and assets of the Company; or

(2)           of the voluntary or involuntary
dissolution, liquidation or winding up of the Company; or

(3)           of any action triggering an
adjustment of the Conversion Price pursuant to this Article Fifteen;

then, in each case, the Company shall cause to be
filed with the Trustee and the Conversion Agent for the applicable Securities,
and shall cause to be mailed, first class postage prepaid, to the Holders of
record of applicable securities, at least fifteen (15) days prior to the
applicable date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of any distribution or grant of
rights or warrants triggering an adjustment to the Conversion Price pursuant to
this Article Fifteen, or, if a record is not to be taken, the date as of
which the holders of record of Common Stock entitled to such distribution,
rights or warrants are to be determined, or (y) the date on which any
reclassification, consolidation, merger, sale, conveyance, dissolution, liquidation
or winding up triggering an adjustment to the Conversion Price pursuant to this
Article Fifteen is expected to become effective, and the date as of which
it is expected that holders of Common Stock of record shall be entitled to
exchange their Common Stock for securities or other property deliverable upon
such reclassification, consolidation, merger, sale, conveyance, dissolution,
liquidation or winding up.

Failure to give such notice or any defect therein
shall not affect the legality or validity of the proceedings described in
clause (1), (2) or (3) of this Section.

Section 15.07  Company to Reserve Stock; Registration;
Listing. (a)  The Company shall at all times reserve and keep
available, free from preemptive rights, out of its authorized but unissued
shares of Common Stock, for the purpose of effecting the conversion of the
Securities, such number of its duly authorized shares of Common Stock as shall
from time to time be sufficient to effect the conversion of all applicable
outstanding securities into such Common Stock at any time (assuming that, at
the time of the computation of such number of shares or securities, all such
Securities would be hold by a single holder); provided, however, that nothing
contained herein shall preclude the Company from satisfying its obligations in
respect of the conversion of the Securities by delivery of purchased shares of
Common Stock which are held in the treasury of the Company. The Company shall
from time to time, in accordance with the laws 

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of the State of Delaware, use its best efforts to
cause the authorized amount of the Common Stock to be increased if the
aggregate of the authorized amount of the Common Stock remaining unissued and
the issued shares of such Common Stock in its treasury (other than any such
shares reserved for issuance in any other connection) shall not be sufficient
to permit the conversion of all securities.

(b)           If any shares of
Common Stock which would be issuable upon conversion of Securities hereunder
require registration with or approval of any governmental authority before such
shares or securities may be issued upon such conversion, the Company will in
good faith and as expeditiously as possible endeavor to cause such shares or
securities to be duly registered or approved, as the case may be. The Company
will endeavor to list the shares of Common Stock required to be delivered upon
conversion of the Securities prior to such delivery upon the principal national
securities exchange upon which the outstanding Common Stock is listed at the
time of such delivery.

Section 15.08  Taxes on
Conversion. The Company shall pay any and all documentary, stamp or similar
issue or transfer taxes that may be payable in respect of the issue or delivery
of shares of Common Stock on conversion of Securities pursuant hereto. The
Company shall not, however, be required to pay any such tax which may be
payable in respect of any transfer involved in the issue or delivery of shares
of Common Stock or the portion, if any, of the Securities which are not so converted
in a name other than that in which the Securities so converted were registered,
and no such issue or delivery shall be made unless and until the Person
requesting such issue has paid to the Company the amount of such tax or has
established to the satisfaction of the Company that such tax has been paid.

Section 15.09  Conversion
After Record Date. If any Securities are surrendered for conversion
subsequent to the record date preceding an Interest Payment Date but on or
prior to such Interest Payment Date (except Securities called for Redemption on
a Redemption Date between such record date and Interest Payment Date), the
Holder of such Securities at the close of business on such record date shall be
entitled to receive the interest payable on such Securities on such Interest
Payment Date notwithstanding the conversion thereof. Securities surrendered for
conversion during the period from the close of business on any record date next
preceding any Interest Payment Date to the opening of business on such Interest
Payment Date shall (except in the case of Securities which have been called for
Redemption on a Redemption Date within such period) be accompanied by payment
in New York Clearing House funds or other funds acceptable to the Company of an
amount equal to the interest payable on such Interest Payment Date on the
securities being surrendered for conversion. Except as provided in this Section 15.09,
no adjustments in respect of payments of interest on securities surrendered for
conversion or any dividends or distributions or interest on the Common Stock
issued upon conversion shall be made upon the conversion of any Securities.

Section 15.10  Corporate
Action Regarding Par Value of Common Stock. Before taking any action which
would cause an adjustment reducing the applicable Conversion Price below the
then par value (if any) of the shares of Common Stock deliverable upon
conversion of the Securities, the Company will take any corporate action which
may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue fully paid and nonassessable shares of Common Stock
at such adjusted Conversion Price.

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Section 15.11  Company
Determination Final. Any determination that the Company or the Board of
Directors must make pursuant to this Article is conclusive.

Section 15.12  Trustee’s
Disclaimer. The Trustee has no duty to determine when an adjustment under
this Article should be made, how it should be made or what it should be.
The Trustee makes no representation as to the validity or value of any
securities or assets issued upon conversion of Securities. The Trustee shall
not be responsible for the Company’s failure to comply with this Article. Each
Conversion Agent other than the Company shall have the same protection under this
Section as the Trustee.

ARTICLE SIXTEEN

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

Section 16.01  Indenture
and Securities Solely Corporate Obligations. No recourse under or upon any
obligations covenant or agreement contained in this Indenture, or in any
covenant or agreement contained in this Indenture, or in any Security, or
because of any indebtedness evidenced thereby, shall be had against any past,
present or future incorporator, stockholder, officer or director, as such, of the
Company or of any successor Corporation, either directly or through the Company
or any successor corporation, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any
legal or equitable proceeding or otherwise, all such liability being expressly
waived and released by the acceptance of the Securities by the Holders thereof
and as part of the consideration for the issue of the Securities and coupons.

ARTICLE SEVENTEEN

MISCELLANEOUS PROVISIONS

Section 17.01  Benefits
of Indenture Restricted to Parties and Securityholders. Nothing in this
Indenture or in the Securities or coupons, 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 or coupons, 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 or coupons.

Section 17.02  Provisions
Binding on Company’s Successors. All the covenants, stipulations, promises
and agreements in this Indenture contained by or on behalf of the Company shall
bind its successors and assigns, whether so expressed or not.

Section 17.03  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 Holders of Securities to or on the Company may be given or served by being
deposited postage prepaid first class mail in a post office letter box
addressed (until another address is filed by the Company with the Trustee), as
follows:  Aon Corporation, 123 North
Wacker Drive, Chicago, Illinois 60606, Attention: Treasurer. Any notice,
direction, request or demand by the Company any Securityholder to or upon the
Trustee shall be deemed to have been sufficiently given or 

 80
 

 

made, for all purposes, if given or made in writing at
its principal office at 111 East Wacker Drive, Suite 3000, Chicago,
Illinois 60601, Attention: Corporate Trust Services, or at any other address
previously furnished in writing to the Company by the Trustee.

Section 17.04  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 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 (1) a
statement that the person making such certificate or opinion has read such
covenant or condition; (2) a brief statement as to the nature and scope of
the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; (3) a statement that,
in the opinion of 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 (4) a statement as
to whether or not, in the opinion of such person, such condition or covenant
has been complied with.

Section 17.05  Legal
Holidays. In any case where the date of maturity of any interest, premium
or Additional Amounts on or principal of the Securities or the date fixed for
Redemption of any Securities shall not be a Business Day in a city where
payment thereof is to be made, then payment of any interest, premium or
Additional Amounts on, or principal of, such Securities need not be made on
such date in such city but may be made on the next succeeding Business Day with
the same force and effect as if made on the date of maturity or the date fixed
for Redemption, and no interest shall accrue for the period after such date.

Section 17.06  Trust
Indenture Act to Control. If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with another provision included in
this Indenture which is required to be included in this Indenture by any of
Sections 310 to 317, inclusive, of the Trust Indenture Act of 1939, such
required provision shall control.

Section 17.07  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 17.08  Illinois
Contract. This Indenture and each Security shall be deemed to be a contract
made under the laws of the State of Illinois, and for all purposes shall be
governed by and construed in accordance with the laws of said State.

 81
 

 

IN WITNESS WHEREOF, Aon Corporation has caused this
Indenture to be signed and acknowledged by its Chairman of the Board or its
President or one of its Executive Vice Presidents or one of its Vice Presidents
or its Treasurer, and its Corporate seal to be affixed hereunto, and the same
to be attested by its Secretary or an Assistant Secretary; and The Bank of New
York Trust Company, N.A. has caused this Indenture to be signed and
acknowledged by one of its Vice Presidents and its corporate seal to be affixed
hereunto, and the same to be attested by its Secretary or an Assistant
Secretary or an authorized officer, all as of the day and year first above
written.

	
  

  	
   

  	
  Aon Corporation

  
	
  [Corporate Seal]

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
   

  	 

	
  Attest:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
   

  	
  [Name]

  	 

	
   

  	
   

  	
   

  	
  [Title]

  	 

	
  Attest:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  Assistant
  Secretary

  	
   

  	
   

  	
   

  	 

 

 82
 

 

STATE OF ILLINOIS          )

            )SS:

COUNTY OF COOK            )

On the _____________________________________ day of
______________________, ________ before me personally came
________________________, to me known, who, being by me duly sworn, did depose
and say that he resides at _______________, that he is the
________________________ of ________________________, one of the [corporations]
described in and which executed the foregoing instrument; that he knows the
seal of said corporation; that the seal affixed to said instrument is such
Corporate seal; that it was so affixed by authority of the Board of Directors
of said Corporation, and that he signed his name thereto by like authority.

	
  

  	
   

  
	
   

  	
  Notary Public

  

 

 83Exhibit 10.1

 

LOAN AGREEMENT

 

 

By and Among

 

 

WCW LANDCO, LLC,

as Borrower

 

ESQUIRE LTD., INC.,

NEVADA PALACE, INC.

NP LAND, LLC,

 

as Guarantors

 

 

and

 

 

OCM LANDCO, LLC,

 

as Lender

 

Dated as of September 30, 2005

 

 

THIS LOAN AGREEMENT
(this “Agreement”), dated as of September 30, 2005, is entered into by
and among WCW Landco, LLC, a Nevada limited liability company (“WCW” or
the “Borrower”), Esquire Ltd., Inc., a Nevada corporation (“Esquire”),
Nevada Palace, Inc., a Nevada corporation (“Nevada Palace”), NP Land,
LLC, a limited liability company (“NP Land” and collectively with
Esquire and Nevada Palace, the “Guarantors”), and OCM LandCo, LLC, a
Nevada limited liability company (“LandCo” or the “Lender”).

 

W I T N E S S E T H

 

WHEREAS, pursuant
to the CUP Agreement and subject to the terms and conditions set forth therein
and herein, LandCo has agreed to loan to WCW, on the 1A Closing Date, the
principal amount of Four Million Two Hundred Eighty-Two Thousand Four Hundred
Fifty-Four Dollars ($4,282,454) (the “Loan”) evidenced by a promissory
note in the form attached hereto as Exhibit A (the “Note”),
that will be used by WCW at the 1A Closing solely to fund the acquisition by
WCW from Nevada Palace of 33 1/3% of the total number of
membership units in NP Land issued and outstanding (such purchase, the “NP
Land Purchase” and such units, the “Wortman NP Land Units”).

 

WHEREAS, as an inducement to
and in consideration of the making of the Loan by Lender, the contribution of
certain assets to NP Land, the other Contemplated Transactions, and the
benefits flowing therefrom (including from the Nevada Palace Fixed Rent Lease
and the Nevada Palace Lease), the Guarantors are entering into the Guarantee
Agreements and, as applicable, the Pledge Agreements.

 

WHEREAS, pursuant to the CUP
Agreement and subject to the terms and conditions set forth therein, herein and
in the Note, at the Second Closing, the Loan, including the principal and any
and all interest accrued thereon, shall become immediately due and payable, and
as payment in full for the principal of the Loan, WCW shall exchange the Note
for all of the Wortman NP Land Units by transferring such Wortman NP Land Units
to LandCo, and all interest accrued on the Loan shall be waived, and the Note
shall be canceled.

 

WHEREAS, pursuant to the CUP
Agreement and subject to the terms and conditions set forth therein, herein and
in the Security Documents, at the Second Closing, the guarantees granted by the
Guarantors under the Guarantee Agreements and the security interests in the
Collateral granted by the Borrower and the Guarantors under the Pledge
Agreements and the Deed of Trust shall be released.

 

NOW, THEREFORE, in
consideration of the representations, warranties, covenants, agreements and
conditions set forth herein, and intending to be legally bound hereby, the
parties hereto agree as follows:

 

 

SECTION 1. 
DEFINITIONS

1.1.          Defined
Terms

 

(a)           Capitalized
terms used herein and not otherwise defined have the meanings set forth in the
CUP Agreement, which meanings shall continue to apply herein without regard to
whether the CUP Agreement has been Terminated.

 

(b)           As
used in this Agreement, the following terms shall have the following meanings:

 

“AcquisitionCo”: OCM AcquisitionCo,
LLC, a Nevada limited liability company.

 

“Agreement”:  as defined in the preamble hereto.

 

“Borrower”:
 as defined in the preamble hereto.

 

“Business
Tangible Property”:  all tangible
assets, including furniture, fixtures and equipment, owned or leased by the
Borrower or any Guarantor on the date of this Agreement.

 

“Capital
Stock”:  shares of capital stock,
partnership interests in a partnership or limited partnership, member’s
interests in a limited liability company, beneficial interests in a trust or
other equity ownership interests in a Person, and any warrants, options or
other rights entitling the holder thereof to purchase or acquire any such
equity ownership interest.

 

“CCR”:  Cannery Casino Resorts, LLC, a Nevada limited
liability company.

 

“Collateral”:
 from the date hereof to the Second
Closing Date, the rights in and to the collateral of the Borrower and each
Guarantor as evidenced by the Pledge Agreements and the Deed of Trust and as generally
described in Section 5.

 

“CUP
Agreement”:  that certain First
Amendment and Restatement of Contribution and Unit Purchase Agreement, dated as
of September 23, 2005, by and among Paulos, Wortman, MGIM, Millennium, CCR, WCW,
Oaktree, AcquisitionCo, and LandCo including all amendments thereto or
restatements thereof.

 

“Deed of
Trust”:  as defined in Section 5.4

 

“Default”:
 any of the events specified in Section
7, whether or not any requirement for the giving of notice, the lapse of time
or both, or any other condition, has been satisfied.

 

“Dollars”
and “$”:  dollars in lawful
currency of the United States of America.

 

 

2

 

“Esquire”:  as defined in the preamble hereto.

 

“Esquire
Guarantee Agreement”:  as defined in
Section 5.3.

 

“Esquire
Pledge Agreement”:  as defined in
Section 5.3.

 

“Event of
Default”:  any of the events
specified in Section 7, provided that any requirement for the giving of
notice, the lapse of time or both, or any other condition, has been satisfied.

 

“Guarantee
Agreements”:  the Nevada Palace
Guarantee Agreement, the NP Land Guarantee Agreement and the Esquire Guarantee
Agreement, individually or collectively, as the case may be.

 

“Guarantors”:  as defined in the preamble hereto.

 

“Indemnified
Liabilities”:  as defined in Section
8.6.

 

“Indemnified
Person”:  as defined in Section 8.6.

 

“Knowledge”:  as defined in the CUP Agreement; provided,
however, that the Knowledge of the Borrower shall be limited to the
Knowledge of Wortman.

 

“LandCo”:  as defined in the preamble hereto.

 

“Lender”:
 as defined in the preamble hereto.

 

“Loan”:  as defined in the first recital hereto.

 

“Loan
Documents”:  this Agreement, the Notes,
the Pledge Agreements, the Guarantee Agreements, the Deed of Trust and any
certificate or other document made or delivered pursuant hereto or thereto.

 

“Material
Adverse Effect”:  any event,
circumstance, occurrence, state of facts, condition, change or effect that,
individually or in the aggregate, is or would reasonably be expected to be
materially adverse to (a) the validity or enforceability of this Agreement or any
of the other Loan Documents or (b) the business, results of operations,
condition (financial or otherwise) or prospects of the Borrower or any Guarantor.  Notwithstanding the immediately preceding
sentence, the following are not and shall not contribute to or result in a
Material Adverse Effect: (i) any condition or event which adversely affects the
gaming industry generally or the gaming industry in Nevada, in either case which
does not adversely affect the Borrower or any Guarantor disproportionately relative
to other entities operating in such industry; (ii) any changes in general
economic conditions in the United States; (iii) any outbreak of hostilities or
escalation thereof involving the United States or the declaration by the United
States of war; and (iv) the performance or consummation of any of the transactions
contemplated by this Agreement or the other Loan Documents.

 

“Maturity
Date”:  as defined in Section 2.4.

 

3

 

“MGIM”:  MGIM, LLC, a Nevada limited liability
company.

 

“Millennium”:  Millennium Gaming, Inc., a Nevada corporation.

 

“Nevada
Gaming Authorities”:  the NGC and the
NGCB.

 

“Nevada
Palace”:  as defined in the preamble
hereto.

 

“Nevada
Palace Guarantee Agreement”:  as
defined in Section 5.2.

 

“Nevada
Palace Pledge Agreement”:  as defined
in Section 5.2.

 

“NGC”:  the Nevada Gaming Commission.

 

“NGCB”:  the Nevada State Gaming Control Board.

 

“Note”:  as defined in the first recital hereto.

 

“NP Land”:  as defined in the preamble hereto.

 

“NP Land
Guarantee Agreement”:  as defined in
Section 5.4.

 

“NP Land
Pledge Agreement”:  as defined in
Section 5.4.

 

“NP Land
Purchase”:  as defined in the first
recital hereto.

 

“Paulos”:  William J. Paulos, an individual.

 

“PBGC”:  the Pension Benefit Guaranty Corporation.

 

“Plan”:
 at a particular time, any employee
benefit plan which is covered by ERISA and in respect of which the Borrower,
any Guarantor or any ERISA Affiliate of any of them is (or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer”
as defined in Section 3(5) of ERISA.

 

“Pledge
Agreements”:  the WCW Pledge Agreement,
the Nevada Palace Pledge Agreement, the NP Land Pledge Agreement and the
Esquire Pledge Agreement, individually or collectively, as the case may be.

 

“Property”:  the property more specifically set forth on
Exhibit A to the Deed of Trust.

 

“Responsible
Officer”:  with respect to the
Borrower or any Guarantor, Wortman (or any manager or member exercising similar
authority), or any employee designated by any of the foregoing.

 

“Taxes”:  as defined in Section 2.8(b).

 

4

 

“Terminated,”
“Termination” (or words of similar effect):  valid termination of the CUP Agreement in
accordance with Section 8.1 thereof.

 

“Title
Insurance Policy”:  an ALTA mortgagee
title insurance policy in a form acceptable to Lender (or, if the Property is
in a state which does not permit the issuance of such ALTA policy, such form as
shall be permitted in such state and acceptable to Lender) issued with respect
to the Property and insuring the Deed of Trust.

 

“Transferee”:  as defined in Section 8.9.

 

“Voidable
Transfer”:  as defined in Section
8.10.

 

“Voluntary
Termination” as defined in Section 2.3(a).

 

“WCW”:  as defined in the preamble hereto.

 

“WCW Pledge
Agreement”:  as defined in Section
5.1.

 

“Wortman”:  William C. Wortman,  an individual.

 

“Wortman NP
Land Units”:  as defined in the first
recital hereto.

 

1.2.          Other
Definitional Provisions.  

 

(a)           Unless
otherwise specified therein, all terms defined in this Agreement shall have
their defined meanings when used in the other Loan Documents.

 

(b)           As
used herein and in any other Loan Document, accounting terms not defined in
Section 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.

 

(c)           The
words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement or any other Loan Document shall
refer to this Agreement or such other Loan Document as a whole and not to any
particular provision of this Agreement or such other Loan Document.

 

(d)           The
meanings given to terms defined in this Agreement or any other Loan Document
shall be equally applicable to both the singular and plural forms of such
terms.

 

(e)           Whenever
the context may require, any pronoun used in this Agreement or any other Loan
Document shall include the corresponding masculine, feminine and neuter forms.

 

(f)            All
references in this Agreement or any other Loan Document to Sections, Exhibits
and Schedules shall be deemed to be references to Sections of, and Exhibits and
Schedules to, this Agreement or such other Loan Document unless the context
shall

 

5

 

otherwise require.  All Exhibits and Schedules attached to this
Agreement or any other Loan Document shall be deemed incorporated herein or
therein as if set forth in full herein or therein.

 

(g)           The
words “include,” “includes” and “including” when used in
this Agreement or any other Loan Document shall be deemed to be followed by the
phrase “without limitation.”

 

(h)           The
word “or” as used in this Agreement or any other Loan Document is used in
the inclusive sense of “and/or.”

 

(i)            References
to a “party” in this Agreement or any other Loan Document are also to
its successors and permitted assigns.

 

(j)            Unless
otherwise expressly provided in this Agreement or any other Loan Document, any
agreement, instrument or statute defined or referred to herein or therein or in
any agreement, instrument or statute defined or referred to herein or therein means
such agreement, instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver or
consent and (in the case of statutes) by succession of comparable successor
statutes.

 

SECTION 2. 
AMOUNT AND TERMS OF THE LOAN

 

2.1.          Loan.  The Lender agrees, on the terms and
conditions hereinafter set forth, to make the Loan to the Borrower on the 1A
Closing Date, subject to the satisfaction or wavier, at or prior to the 1A
Closing Date, of the conditions set forth in Sections 5.1(a) and 5.2(a) of the
CUP Agreement.

 

2.2.          Repayment
of Loan; Evidence of Debt.

 

(a)           The
Borrower unconditionally promises to pay to LandCo, or any successor or
permitted assignee or third party beneficiary thereof, on the applicable Maturity
Date (or such earlier date on which the Loan becomes due and payable pursuant
to Section 7), the then unpaid principal amount of the Loan due and payable on
such Maturity Date (or such earlier date on which the Loan becomes due and
payable pursuant to Section 7).  The
Borrower further agrees to pay interest on the unpaid principal amount of the
Loan as set forth in Section 2.3.

 

(b)           The
Borrower’s unconditional promise to pay the Loan and any interest thereon shall
be evidenced by the Note, which shall be executed and delivered by the Borrower
on the 1A Closing Date in connection with the making of the Loan by the Lender.

 

2.3.          Interest.  Interest shall
accrue on the unpaid principal amount of the Loan, as evidenced by the Note, as
follows:

 

(a)           Interest Rate.  Interest on the Loan
shall accrue at a rate per annum equal to twelve percent (12%); provided,
however, that if the CUP Agreement is Terminated (i) by the Oaktree Parties
pursuant to Section 8.1(g) of the CUP Agreement solely because the Oaktree
Licenses will not or cannot be obtained (other than as a result of the failure
by any

 

6

 

Selling Party
to perform in any material respect any of its obligations under the CUP
Agreement that causes, or results in, such Oaktree Licenses not being obtained),
(ii) by the Selling Parties pursuant to Section 8.1(c) or 8.1(f) of the CUP
Agreement solely because of the failure by any LandCo Party to perform in any
material respect any of its obligations under the CUP Agreement or (iii) by
either the Selling Parties or the Oaktree Parties pursuant to Section 8.1(d) of
the CUP Agreement and the Oaktree Licenses have not been obtained (in each case
of (i) through (iii), a “Voluntary Termination”), then no interest on the
Loan shall accrue from the date of such Voluntary Termination of the CUP
Agreement until the date that is six (6) months after the date of such
Voluntary Termination of the CUP Agreement, at which time interest on the Loan shall
accrue at a rate per annum equal to six percent (6%); and provided, further,
that Termination of the CUP Agreement because of termination or expiration of
the Mendenhall Purchase Agreement or failure of the Mendenhall Purchase to
close shall in no circumstances be considered a Voluntary Termination.

 

(b)           Interest Payment Dates.  Interest on the Loan accrued in accordance
with Section 2.3(a) shall be payable as follows:

 

(i)            If
the Second Closing occurs, then all interest accrued on the Loan shall be
waived.

 

(ii)           If
the CUP Agreement is Terminated for any reason (including as a result of a
Voluntary Termination), then all interest accrued on the Loan in accordance
with Section 2.3(a) from the 1A Closing Date to the applicable Maturity Date of
the Loan as set forth in Section 2.4 shall be immediately due and payable in
arrears on such applicable Maturity Date.

 

(c)           Compounding.  Any interest not paid when due pursuant to
Section 2.3(b) shall be compounded with and added to the principal of the Loan and
shall thereafter constitute a part of the Loan hereunder and shall accrue
interest at the rate then applicable to the Loan.

 

(d)           Default Interest.  Upon an Event of Default, the interest rate applicable to the Loan as set forth in
Section 2.3(a) shall increase by 300 basis points per annum above the rate
otherwise applicable to the Loan on the ninetieth (90th) day
following the date of such Event of Default and on each ninetieth (90th)
day thereafter until the Loan is paid in full; provided, however,
that the interest rate shall not exceed the maximum rate permitted by
applicable Law.

 

(e)           Computation.  Interest
shall be calculated on the basis of the actual number of days elapsed over a
365- (or 366-, as the case
may be) day year.

 

2.4.          Maturity
Dates.  The then unpaid principal
amount of the Loan shall be immediately due and payable on the following dates
(each, a “Maturity Date”) which, if not falling on a Business Day, shall
be extended to the immediately following Business Day (with interest accruing thereon
pursuant to Section 2.3):

 

(a)           If
the Second Closing occurs, the then unpaid principal amount of the Loan shall
be immediately due and payable on the Second Closing Date, at which time the

 

7

 

Borrower shall exchange the
Note for all of the Wortman NP Land Units by transferring such Wortman NP Land
Units to LandCo pursuant to the terms and conditions of the CUP Agreement as
payment in full for all principal of the Loan.

 

(b)           If the CUP Agreement is
Terminated pursuant to Section 8.1(c), 8.1(d), 8.1(e), 8.1(f) or 8.1(g) of the
CUP Agreement as a result of the failure by any
Selling Party to perform in any material respect any of
its obligations under the CUP Agreement, or if the CUP Agreement is Terminated
pursuant to any of the aforementioned Sections as a result of the termination
or expiration of the Mendenhall Purchase Agreement or failure of the Mendenhall
Purchase to close, the then unpaid principal amount of the Loan shall be
immediately due and payable on the date that is six (6) months following the
date of such Termination.

 

(c)           If the CUP Agreement is
Terminated pursuant to Section 8.1(c), 8.1(d), 8.1(e), 8.1(f) or 8.1(g) of the
CUP Agreement as a result of a Voluntary Termination, the then unpaid principal
amount of the Loan shall be immediately due and payable on the date that is
eighteen (18) months following the date of such Voluntary Termination.

 

(d)           If
the CUP Agreement is Terminated pursuant to Section 8.1(a) or 8.1(h) of the CUP
Agreement or the CUP Agreement is Terminated pursuant to Section 8.1(c), 8.1(d),
8.1(e), 8.1(f) or 8.1(g) of the CUP Agreement for any reason other than a
reason set forth in Section 2.4(b) or (c) hereof, the then unpaid principal
amount of the Loan shall be immediately due and payable on the date that is
twelve (12) months following the date of such Termination.

 

2.5.          Prepayments.  The Loan, along with all accrued but unpaid
interest thereon, (a) may not be prepaid prior to the earlier of the Second
Closing or Termination of the CUP Agreement, and (b) may be prepaid in whole or
in part at the option of the Borrower at any time after any of the events set
forth in clause (a) upon at least five (5) Business Days’ prior written notice
to the Lender.  Any such prepayment shall
be in an amount of One Million Dollars ($1,000,000) or any Five Hundred
Thousand Dollar ($500,000) increment thereof and shall be applied first to
accrued but unpaid interest and then to outstanding principal.

 

2.6.          Method
of Payment.  All payments (including
prepayments) to be made by the Borrower hereunder, whether on account of
principal, interest or otherwise, shall be made without offset or counterclaim except
as permitted by Section 9.5 of the CUP Agreement and shall be made prior to 11:00
A.M., Nevada time, on the due date thereof to the Lender, at the Lender’s
office set forth on the signature page hereto, in Dollars and in immediately
available funds.  Any payment made after
such time shall be deemed to be made as of the opening of business on the
immediately following Business Day.

 

2.7.          Use
of Proceeds. The proceeds of the Loan shall be used by the Borrower
exclusively to fund the NP Land Purchase and for no other purpose whatsoever.

 

2.8.          Expenses
and Withholding Taxes.

 

8

 

(a)           The
Borrower agrees to pay the Lender any and all expenses or other amounts
otherwise agreed to be paid by the Borrower in any provision of this Agreement
or in any other Loan Document.

 

(b)           All payments made by
the Borrower under this Agreement or the Note shall be made free and clear of,
and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
assessments, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority with respect to
this Agreement or any other Loan Document, and all interest, penalties or
similar liabilities with respect thereto (all such taxes, levies, imposts,
duties, charges, fees, assessments, deductions or withholdings being referred
to collectively as “Taxes”), unless the Borrower is compelled by Law to
make such deduction or withholding.  If
any such Taxes are required to be withheld from any amounts payable to the Lender
hereunder or under the Note, the amounts so payable to the Lender shall be
increased to the extent necessary to yield to the Lender (after payment of all
such Taxes) principal, interest or any such other amounts payable hereunder in
the amounts or at the rates the Lender would have received had no such
obligation been imposed on the Borrower. 
In addition, the Borrower shall pay any Taxes to the relevant
Governmental Authority in accordance with applicable Law, and as promptly as
possible thereafter, the Borrower shall send to the Lender proof of payment
thereof.  If the Borrower fails to pay
any such Taxes when due to the appropriate Governmental Authority or fails to
remit to the Lender such proof, the Borrower shall indemnify the Lender for any
incremental Taxes that may become payable by the Lender as a result of any
failure to pay any such amounts.

 

SECTION 3.  CONDITIONS PRECEDENT

 

3.1.          The effectiveness of this Agreement and the Lender’s obligation to make the
Loan are subject to the satisfaction or wavier, at or prior to the 1A Closing
Date, of the conditions set forth in Sections 5.1(a) and 5.2(a) of the CUP
Agreement (which itself shall be in full force and effect, enforceable against
the parties thereto in accordance with the terms and conditions thereof).

 

3.2.          A
title company acceptable to Lender and dated as of the Closing Date shall be
irrevocably committed to issue a Title Insurance Policy, in a form acceptable
to Lender in its sole discretion and dated as of the 1A Closing Date.  Such Title Insurance Policy shall include
reinsurance and direct access agreements as are acceptable to Lender and shall
(i) provide coverage in amounts satisfactory to Lender, (ii) insure Lender that
the Mortgage creates a valid lien on the Property encumbered thereby of the
requisite priority, free and clear of all exceptions from coverage other than
Permitted Encumbrances and standard exceptions and exclusions from coverage (as
modified by the terms of any endorsements), (iii) contain such endorsements and
affirmative coverages as Lender may reasonably request, and (iv) name Lender as
the insured.  The Title Insurance Policy
shall be assignable.  Lender also shall
have received evidence that all costs and premiums in respect of such Title
Insurance Policy have been paid by Borrower.

 

9

 

SECTION 4.  REPRESENTATIONS AND
WARRANTIES

 

To induce the
Lender to make the Loan hereunder, the Borrower hereby represents and warrants
to the Lender as of the date hereof:

 

4.1.          No
Liabilities.  The Borrower was formed
on April 26, 2005, for the sole purpose of effecting the NP Land Purchase and
has no Liabilities as of the date hereof except for those Liabilities contemplated
by this Agreement, the other Loan Documents or the CUP Agreement.

 

4.2.          Purpose
of Loans.  The proceeds of the Loan
are to be used by the Borrower exclusively to effect the NP Land Purchase and
for no other purpose whatsoever.

 

SECTION 5.  SECURITY INTERESTS
AND COLLATERAL

 

5.1.          Borrower
Collateral.  As security for the timely payment of all principal
and accrued interest under this Agreement and the Note, the Borrower agrees to
grant to the Lender, for the benefit of the Lender, a continuing security
interest in all right, title and interest in and to all of
the membership units in NP Land held by WCW (including, for the avoidance of
doubt, the Wortman NP Land Units), including
in each case any and all distributions thereon and the right to any and all
proceeds from the sale or transfer thereof, and in connection
therewith, the Borrower shall enter into a pledge and security agreement in the
form attached hereto as Exhibit B (the “WCW
Pledge Agreement”) simultaneously herewith for the
benefit of the Lender; provided, however, that the WCW Pledge
Agreement shall provide that if the Second Closing occurs, the security granted
pursuant to the WCW Pledge Agreement shall be released as of the Second
Closing.

 

5.2.          Nevada
Palace Collateral.  Nevada Palace, which as
of the 1A Closing is owned 100% by Wortman (who is also the owner as of the 1A
Closing of 100% of the Borrower), agrees to guarantee the timely payment by the
Borrower of all principal and accrued interest under this Agreement and the
Note and, in connection therewith, shall enter into a guarantee agreement in
the form attached hereto as Exhibit C1 (the
“Nevada Palace Guarantee Agreement”) simultaneously herewith for the
benefit of the Lender, and as security for such guarantee, agrees to grant to
the Lender, for the benefit of the Lender, a continuing security interest in
all of Nevada Palace’s assets, tangible or intangible, whether now owned or
hereafter acquired, including all right, title and interest in and to all of
the member’s units in NP Land held by Nevada Palace (including any and all
distributions thereon), and any and all additions, attachments, accessories and
accessions to any such assets, any and all substitutions, replacements or
exchanges therefor and any and all proceeds from the sale or transfer thereof
and any and all other proceeds (including insurance proceeds) thereon, and in
connection therewith, shall enter into a pledge and security agreement in the
form attached hereto as Exhibit C2 (the
“Nevada Palace Pledge Agreement”) simultaneously herewith for the
benefit of the Lender; provided, however, that the Nevada Palace
Pledge Agreement shall provide that if the Second Closing occurs, the security
granted pursuant to the Nevada Palace Pledge Agreement shall be released as of
the Second Closing.

 

10

 

5.3           Esquire
Collateral.  Esquire, which as of the
1A Closing is owned 100% by Wortman (who is also the owner as of the 1A Closing
of 100% of the Borrower), agrees to guarantee the timely payment by the
Borrower of all principal and accrued interest under this Agreement and the
Note and, in connection therewith, shall enter into a guarantee agreement in
the form attached hereto as Exhibit D1 (the
“Esquire Guarantee Agreement”) simultaneously herewith for the benefit
of the Lender, and as security for such guarantee, agrees to grant to the
Lender, for the benefit of the Lender, a continuing security interest in all of
Esquire’s assets, tangible or intangible, whether now owned or hereafter
acquired, and any and all additions, attachments, accessories and accessions to
any such assets, any and all substitutions, replacements or exchanges therefor
and any and all proceeds from the sale or transfer thereof and any and all
other proceeds (including insurance proceeds) thereon, and in connection
therewith, shall enter into a pledge and security agreement in the form
attached hereto as Exhibit D2 (the
“Esquire Pledge Agreement”) simultaneously herewith for the benefit of
the Lender; provided, however, that the Esquire Pledge Agreement
shall provide that if the Second Closing occurs, the security granted pursuant
to the Esquire Pledge Agreement shall be released as of the Second Closing.

 

5.4           NP
Land Collateral.  NP Land, which as of the
1A Closing is owned 100% by Nevada Palace and WCW and, together with the
Borrower, holds all of the assets required to run the Nevada Palace Hotel and Casino
as of the 1A Closing, agrees to guarantee the timely payment by the Borrower of
all principal and accrued interest under this Agreement and the Note and, in
connection therewith, shall enter into a guarantee agreement in the form
attached hereto as Exhibit E1 (the
“NP Land Guarantee Agreement”) simultaneously herewith for the benefit
of the Lender, and as security for such guarantee, agrees to grant to the
Lender, for the benefit of the Lender, a continuing security interest in all of
NP Land’s assets, tangible or intangible, whether now owned or hereafter
acquired, and any and all additions, attachments, accessories and accessions to
any such assets, any and all substitutions, replacements or exchanges therefor
and any and all proceeds from the sale or transfer thereof and any and all
other proceeds (including insurance proceeds) thereon, and in connection therewith,
shall enter into a pledge and security agreement in the form attached hereto as
Exhibit E2 (the “NP Land Pledge
Agreement”) and a deed of trust in the form attached hereto as Exhibit E3 (the “Deed of Trust”) simultaneously
herewith for the benefit of the Lender; provided, however, that the
NP Land Pledge Agreement and the Deed of Trust shall provide that if the Second
Closing occurs, the security granted pursuant to the NP Land Pledge Agreement and
the Deed of Trust shall be released as of the Second Closing.

 

SECTION 6.  COVENANTS

 

The Borrower and
each Guarantor hereby agree that, so long as the Loan (including the payment of
any and all accrued interest thereon) and all other obligations shall remain
unpaid in whole or in part:

 

6.1.          Financial
Statements; Certificates.  The
Borrower and each Guarantor shall furnish to the Lender, at the Borrower’s or
such Guarantor’s sole expense:

 

(a)           so
long as the NP Business Loan Agreement remains in full force and effect, a copy
of any document, certificate or notice provided to the lenders or administrative

 

11

 

or other agent pursuant thereto, delivered promptly
after delivery of such document, certificate or notice under the NP Business
Loan Agreement;

 

(b)           without
duplication, as soon as practicable, but in any event not later than one-hundred
and twenty (120) days after the end of (i) each fiscal year of the Nevada
Palace Acquired Companies, a copy of the audited consolidated balance sheet of
the Nevada Palace Acquired Companies as at the end of such year, and the
related audited consolidated statements of operations and cash flows for such
year, and the report thereon of Piercy, Bowler, Taylor & Kern, independent
certified public accountants, and (ii) each fiscal year of each of WCW and NP
Land, a copy of the unaudited consolidated balance sheet of each of WCW and NP
Land as at the end of such year, certified by a Responsible Officer as being
fairly stated in all material respects;

 

(c)           without
duplication, as soon as practicable, but in any event not later than thirty
(30) after the end of each of the first three (3) quarterly periods of (i) each
fiscal year of the Nevada Palace Acquired Companies, a copy of the unaudited
consolidated balance sheet of the Nevada Palace Acquired Companies as at the
end of such quarter, and the related unaudited consolidated statements of
operations and cash flows for such quarter, certified by a Responsible Officer
as being fairly stated in all material respects (subject to normal year-end
audit adjustments), and (ii) each fiscal year of each of WCW and NP Land, a
copy of the unaudited consolidated balance sheet of each of WCW and NP Land as
at the end of such quarter, certified by a Responsible Officer as being fairly
stated in all material respects (subject to normal year-end adjustments);

 

(d)           promptly,
such additional financial and other information regarding the Borrower or any Guarantor
as the Lender may from time to time reasonably request in writing; and

 

(e)           concurrently
with the delivery of any quarterly or annual financial statements of the
Borrower or any Guarantor pursuant to this Section 6.1, a certificate of a
Responsible Officer (i) stating that the Borrower or such Guarantor during such
period has observed or performed all of its covenants and other agreements in
this Agreement and the other Loan Documents to be observed or performed by it,
and that such Responsible Officer has obtained no knowledge of any Default or
Event of Default except as specified in such certificate.

 

All such financial statements delivered
pursuant to this Section 6.1 for the Nevada Palace Acquired Companies (or any
assignee of this Agreement) shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with GAAP
applied consistently throughout the periods reflected therein and with prior
periods (except as approved by such accountants or officer, as the case may be,
and disclosed therein).  All such
financial statements delivered pursuant to this Section 6.1 for each of WCW and
NP Land shall be complete and correct in all material respects and shall be
prepared on the cash basis of accounting in a manner consistent with the
internal financial reporting of each of WCW and NP Land.

 

6.2.          Compliance;
Maintenance of Existence.  The
Borrower and each Guarantor shall (a) comply in all material respects with all Laws,
(b) perform all obligations

 

12

 

under all Contracts to which
the Borrower or any Guarantor is a party in all material respects, and (c)(i)
preserve, renew and keep in full force and effect its organizational existence
and (ii) take all reasonable action to maintain all rights, privileges and
franchises necessary or desirable in the ordinary course of its business,
except as permitted by the CUP Agreement or Section 6.5.

 

6.3.          Inspection
of Property; Books and Records; Discussions.  The Borrower and each Guarantor shall (a)
keep proper books of records and account in which full, true and correct
entries in conformity with GAAP and all Laws shall be made of all dealings and
transactions in relation to its business and activities and (b) permit
representatives of the Lender (not more frequently than twice per year if no
Default or Event of Default exists) upon reasonable notice to the Borrower or
any Guarantor to visit and inspect its properties and request and obtain copies
of its financial records and to discuss the business, operations, properties
and financial and other condition of the Borrower or any Guarantor with
officers of the Borrower or any Guarantor and with their independent certified
public accountants.

 

6.4.          Notices.  The Borrower shall promptly give notice to
the Lender of:

 

(a)           the
occurrence of any Default or Event of Default;

 

(b)           the
occurrence of any event that could be a default under the NP Business Loan Agreement,
whether or not such event may give rise to a right to notice or otherwise, and
whether or not any such right is waived by a party thereto;

 

(c)           any
Action or, to the Knowledge of the Borrower, investigation (i) that may exist at
any time between the Borrower or any Guarantor, on the one hand, and any
Governmental Authority, on the other hand, that is reasonably expected to have
a Material Adverse Effect or (ii) that relates to any Loan Document; and

 

(d)           any
other development or event that could reasonably be expected to have a Material
Adverse Effect.

 

Each notice
pursuant to this Section 6.4 shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action the affected party proposes to take with respect
thereto.

 

6.5.          Conduct
of the Business.  Except as contemplated
by the CUP Agreement or, from and after the Second Closing Date or Termination
of the CUP Agreement, as is reasonably necessary to effect a refinancing of the
Borrower, any Guarantor or CCR, the proceeds of which will be used to repay the
obligations pursuant to the loans made by LandCo under the CUP Agreement, the Borrower
and each Guarantor shall not, unless otherwise consented to by the Lender:

 

(a)           with
respect to NP Land, incur or commit to incur any capital expenditures outside
the Ordinary Course of Business or incur any Debt;

 

(b)           create
or permit any Lien on any Business Tangible Property that is not an Excluded
Asset, other than Permitted Exceptions;

 

13

 

(c)           sell
or otherwise transfer any of its material assets or properties other than
Excluded Assets;

 

(d)           amend
its Governing Documents;

 

(e)           issue,
sell, pledge, encumber, transfer, dispose of or otherwise create any Lien on,
or redeem, purchase or acquire, any shares of its Capital Stock or any other
equity or debt interests, or grant any options, warrants, purchase rights,
subscription rights, conversion rights, exchange rights or other agreements or
rights to purchase or otherwise acquire, any shares of its Capital Stock or any
other equity or debt interests, or grant any stock appreciation, phantom stock,
profit participation or similar rights;

 

(f)            effect
any recapitalization, reclassification, stock split or like change in its
capitalization;

 

(g)           declare
or pay any dividends on or make any other distributions (whether in cash,
property or otherwise) in respect of any of its Capital Stock or any other
equity interest;

 

(h)           make
any change in the principal nature of its business;

 

(i)            make
any change in any method of accounting for financial reporting, except for any
change in financial reporting after the 1A Closing Date required by reason of a
concurrent change in or interpretation of GAAP;

 

(j)            enter
into (i) any transaction with a Person or entity affiliated with or
related to itself, except upon arms-length terms and conditions, or
(ii) any transaction which is motivated by an intent to evade this
Agreement or any other Loan Document; or

 

(k)           make
any commitment (whether or not in writing) to any of the foregoing.

 

6.6.          Limitation
on Fundamental Changes.  The Borrower
and each Guarantor shall not enter into any merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution), or convey, sell, lease, assign, transfer or
otherwise dispose of, all or substantially all of its property, business or
assets, except as contemplated by the CUP Agreement.

 

6.7.          Payment
of Taxes.  The Borrower and each
Guarantor shall pay, discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all material taxes,
assessments and governmental charges or levies imposed upon any of them or
their income or profits.

 

6.8.          Ownership.  The direct and indirect ownership structure
of the Capital Stock of the Borrower and each Guarantor shall at all times remain
as of the 1A Closing Date except for such changes as are contemplated by the
CUP Agreement or, after the Second Closing, as are permitted under the Company
Amended Operating Agreement or the Omnibus Management Agreement.

 

14

 

6.9.          Proceeds.
 The Borrower shall use the proceeds from
the Loan solely to fund the NP Land Purchase and for no other purpose
whatsoever.

 

SECTION 7.  DEFAULTS AND EVENTS
OF DEFAULT

 

7.1.          Events
of Default.  If any of the following
events shall occur and be continuing:

 

(a)           the
Borrower shall fail to pay any principal of or interest on the Loan when due and
payable in accordance with the terms hereof;

 

(b)           the
Borrower shall fail to perform or observe (i) any term, covenant, or agreement
contained in Sections 6.2, 6.5, 6.6, 6.8 and 6.9, or (ii) any other term,
covenant or agreement contained in this Agreement or any other Loan Document
(other than as provided in Sections 7.1(a) and 7.1(b)) and, in the case of any
default under this clause (ii), such default shall continue unremedied for
thirty (30) days after the Lender shall have given notice thereof to the
Borrower;

 

(c)           an
“Event of Default” (as such term is defined therein) shall be declared under
the Esquire Loan Agreement, the Nevada Palace Oaktree Loan Agreement or, after
the Second Closing, the Company Oaktree Loan Agreement;

 

(d)           after
the Termination of the CUP Agreement for any reason, there shall have occurred
any “Event of Default,” as such term is defined under the NP Business Loan
Agreement (which shall not include (i) any “event of default” that has been
waived by any lender or administrative or other agent under the NP Business
Loan Agreement to the extent such waiver is unconditional (or, if conditional,
the conditions to such waiver have been fully satisfied prior to the date of
Termination) or not temporally limited (or, if temporally limited, such wavier
shall not expire until at least the applicable Maturity Date), (ii) any “event
of default” that has been cured or (iii) any “event of default” that has occurred
prior to the date of Termination of the CUP Agreement and is continuing through
such date of Termination);

 

(e)           the
Borrower or any Guarantor shall (i) apply for or consent to the appointment of,
or the taking of possession by, a receiver, custodian, trustee or liquidator of
itself or of all or a substantial part of its property, (ii) admit in writing
its inability, or be generally unable, to pay its debts as such debts become
due, (iii) make a general assignment for the benefit of its creditors, (iv)
commence a voluntary case under the federal bankruptcy Laws (as now or
hereafter in effect), (v) file a petition seeking to take advantage of any
other Law relating to bankruptcy, insolvency, reorganization, winding-up,
or composition or readjustment of debts, (vi) fail to controvert in a timely
and appropriate manner, or acquiesce in writing to, any petition filed against
the Borrower or any Guarantor, as the case may be, in an involuntary case under
such federal Laws, or (vii) take any corporate action for the purpose of
affecting any of the foregoing;

 

(f)            an
Action shall be commenced (including commencement of such Action by way of
service of process on the Borrower or any Guarantor), in any court of competent
jurisdiction, seeking (i) the liquidation, reorganization, dissolution or
winding-up, or

 

15

 

the composition or readjustment
of debts of the Borrower or any Guarantor, (ii) the appointment of a trustee, receiver,
custodian, liquidator or the like of the Borrower or any Guarantor or of all or
any substantial part of the assets of the Borrower or any Guarantor or (iii)
similar relief in respect of the Borrower or any Guarantor under any Law
relating to bankruptcy, insolvency, reorganization, winding up, or composition
or readjustment of debts, or a warrant of attachment, execution or similar
process shall be issued against a substantial part of the property of the
Borrower or any Guarantor and such Action shall continue undismissed or
unstayed and in effect for a period of forty-five (45) days, or an Order
approving or ordering any of the foregoing shall be entered in an involuntary
case under such federal bankruptcy Laws;

 

(g)           a
trustee shall be appointed to administer any Plan under Section 4042 of ERISA,
or the PBGC shall institute proceedings to terminate, or to have a trustee
appointed to administer any Plan and such proceedings shall continue
undismissed or unstayed and in effect for a period of thirty (30) days, and any
such event shall result in any liability which is material in relation to the
consolidated financial condition of the Borrower or any Guarantor;

 

(h)           there
shall have been entered by a court of competent jurisdiction within the United
States one or more judgments or decrees for payment of money involving a
liability against the Borrower or any Guarantor in excess of $1,000,000 that is
not otherwise covered by insurance;

 

(i)            the
obligation of any Guarantor under its respective Guarantee Agreement is limited
or terminated by operation of Law (other than as a result of an action taken by
the Nevada Gaming Authorities solely attributable to any action or inaction of
the Lender or any of its respective Affiliates) or the obligation of such
Guarantor thereunder is limited or terminated by such Guarantor;

 

(j)            the
Borrower or any Guarantor is enjoined, restrained or in any way prevented by
Order from continuing to conduct all or any material part of its business;

 

(k)           this
Agreement or any other Loan Document that purports to create a security
interest in the Collateral shall, for any reason (other than as a result of an
action taken by the Nevada Gaming Authorities solely attributable to any action
or inaction of the Lender or any of its respective Affiliates), fail or cease
to create a valid and perfected first priority Lien on or security interest in
the Collateral covered hereby or thereby (other than as disclosed on Schedule 1
to any Pledge Agreement or pursuant to Section 10.1 of the Deed of Trust);

 

(l)            any
direct or indirect change in the ownership of Capital Stock of the Borrower or
any Guarantor shall occur, other than changes of ownership as are permitted by
the CUP Agreement or, after the Second Closing, as are permitted under the
Company Amended Operating Agreement or the Omnibus Management Agreement; or

 

(m)          any
provision of any Loan Document shall at any time for any reason (other than as
a result of an action taken by the Nevada Gaming Authorities solely
attributable to any action or inaction of the Lender or any of its respective
Affiliates) be declared to be null and void, or the validity or enforceability
thereof shall be contested by the Borrower or any Guarantor, or an Action shall
be commenced by the Borrower, or any Guarantor, or by any

 

16

 

Governmental Authority (other
than an Action by the Nevada Gaming Authorities brought as a result of an
action taken by the Nevada Gaming Authorities solely attributable to any action
or inaction of the Lender or any of its respective Affiliates) having
jurisdiction over the Borrower or any Guarantor seeking to establish the
invalidity or unenforceability thereof, or the Borrower or any Guarantor shall
deny that the Borrower or any Guarantor has any liability or obligation
purported to be created under any Loan Document;

 

then, and in any such event, (i)
if such event is an Event of Default specified in paragraph (e) or (f) of this
Section 7, automatically the Loan hereunder (with accrued interest thereon) and
all other amounts owing under this Agreement and the other Loan Documents shall
immediately become due and payable, and (ii) if such event is any other Event
of Default, the Lender may declare the Loan hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement and the other Loan
Documents to be due and payable forthwith, whereupon the same shall immediately
become due and payable.  Except as
expressly provided above in this Section 7.1, presentment, demand, protest and
all other notices of any kind are hereby expressly waived.  Subject to Section 7.2, the rights of the
Lender under this Section 7.1 are in addition to other rights and remedies
which the Lender may have, including the right to:

 

(A)          Terminate
this Agreement and any of the other Loan Documents as to any future liability
or obligation of the Lender, but without affecting any of the security
interests in the Collateral.

 

(B)           Without
notice to or demand upon the Borrower, make such payments and do such acts as
the Lender considers necessary or reasonable to protect its security interests
in the Collateral.  The Borrower and each
Guarantor agrees to assemble the Collateral if the Lender so requires, and to
make the Collateral available to the Lender at a place that the Lender may
designate which is reasonably convenient to both parties.  The Borrower and each Guarantor authorizes
the Lender to enter the premises where the Collateral is located, to take and
maintain possession of the Collateral, or any part of it, and to pay, purchase,
contest or compromise any Lien that in the Lender’s determination appears to
conflict with the security interest in and to the Collateral and to pay all
expenses incurred in connection therewith and to charge the Borrower therefor.  With respect to the Borrower’s or any Guarantor’s
owned premises, the Borrower and each Guarantor hereby grants the Lender a
license to enter into possession of such premises and to occupy the same,
without charge, in order to exercise any of the Lender’s rights or remedies
provided herein, at law, in equity or otherwise.

 

(C)           To
the extent permitted by applicable Law, foreclose on the Collateral and ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise
for sale and sell (in the manner provided for herein) the Collateral.  The Borrower and each Guarantor hereby grants
to the Lender a license or other right to use, without charge, the labels,
patents, copyrights, trade secrets, trade names, trademarks, service marks and
advertising matter, or any property of a similar nature, as it pertains to the
Collateral, in completing production of, advertising for sale and selling any
Collateral and rights of the Borrower or any Guarantor under all licenses and
all franchise agreements shall inure to the Lender’s benefit.

 

(D)          To
the extent permitted by applicable Law, sell the Collateral at either a public
or private sale, or both, by way of one or more contracts or

 

17

 

transactions,
for cash or on terms, in such manner and at such places (including the Borrower’s
or any Guarantor’s premises) as the Lender determines is commercially
reasonable.  It is not necessary that the
Collateral be present at any such sale. 
The Borrower and each Guarantor covenants and agrees that it will, upon
the Lender’s request, execute and deliver such documents and take such other
action as the Lender deems necessary or advisable in order that any such sale
may be made in compliance with Law.  Each
purchaser at any such sale shall hold the Collateral so sold absolutely and
free from any claim or right of whatsoever kind, including any equity or right
of redemption of the Borrower or any Guarantor, as applicable, which may be
waived, and the Borrower and any Guarantor, to the extent permitted by Law,
hereby specifically waives all rights of redemption, stay or appraisal which it
has or may have under any Law now existing or hereafter adopted.

 

(E)           The
Lender shall give notice of the disposition of the Collateral as follows:

 

(1)           The
Lender shall give the Borrower and each Guarantor a notice in writing of the
time and place of public sale, or, if the sale is a private sale or some other
disposition other than a public sale, the time on or after which the private
sale or other disposition is to be made; and

 

(2)           The
notice shall be personally delivered or mailed, postage prepaid, to the Borrower
and each Guarantor, at least ten (10) days before the earliest time of
disposition set forth in the notice; no notice needs to be given prior to the
disposition of any portion of the Collateral that is perishable or threatens to
decline speedily in value or that is of a type customarily sold on a recognized
market.

 

The Lender
shall not be obligated to make any such sale pursuant to any such notice. The Lender
may, without notice or publication, adjourn any public or private sale or cause
the same to be adjourned from time to time by announcement at the time and
place fixed for the sale, and such sale may be made at any time or place to
which the same may be so adjourned.  In
case of any sale of all or any part of the Collateral on credit or for future
delivery, the Collateral so sold may be retained by the Lender until the
selling price is paid by the purchaser thereof, but the Lender shall not incur
any liability in case of the failure of such purchaser to take up and pay for
the Collateral so sold and, in case of any such failure, such Collateral may
again be sold upon like notice.

 

(F)           The
Lender may credit bid and purchase at any public sale and may purchase at any
private sale, each as conducted in accordance with clause (E) above.

 

(G)           The
Lender may seek the appointment of a receiver or keeper to take possession of
all or any portion of the Collateral or to operate same and, to the maximum
extent permitted by Law, may seek the appointment of such a receiver without
the requirement of prior notice or a hearing.

 

18

 

7.2.          Effect
of Gaming Laws.

 

(a)           The remedies set forth
in Section 7.1 shall be subject to applicable limitations set forth in the
Pledge Agreements and the Deed of Trust required for purposes of the Gaming
Laws or with respect to the Nevada Gaming Authorities, if any.

 

(b)           In
connection with exercising its rights under Section 7.1, the Lender may, if it
so elects in its sole discretion, require the Borrower and any Guarantor to cooperate
with the Lender and immediately to take all actions required by the Lender to
assist with the preparation and filing by the Lender of all applications for
licensure and approval with all applicable regulatory authorities as are
necessary, if any, for the Lender to acquire ownership and control of any
Person owning or operating the Businesses of Nevada Palace or Esquire, or of
the Businesses and the hotels and casinos operated by Nevada Palace or Esquire.  To enforce the provisions of this Section
7.2(b), to the extent they are applicable, the Lender is empowered to request
the appointment of a receiver or supervisor from the Nevada Gaming Authorities
or, if applicable, from any court of competent jurisdiction or to engage a
licensed third party operator to operate such Businesses until such time as the
Lender is prepared to sell and transfer the Collateral to a third party
purchaser licensed by the Nevada Gaming Authorities.  The Borrower and each Guarantor shall use
reasonable best efforts to obtain the approval of the applicable Nevada Gaming
Authority, if required, for any action or transactions contemplated by this
Agreement or the Loan Documents, including preparation, execution and filing
with the applicable Nevada Gaming Authority of any applications relating to the
change of control of such Businesses and the properties and assets of the
Borrower or any Guarantor, to the extent approval is required by applicable Law.

 

SECTION 8.  MISCELLANEOUS

 

8.1.          Cooperation
with Gaming Laws.  To the extent the
Nevada Gaming Authorities have regulatory jurisdiction over the Borrower or any
Guarantor, the Lender shall cooperate with the Nevada Gaming Authorities in
connection with the administration of their regulatory jurisdiction over the
Borrower or such Guarantor, including through the provision of such documents
or other information as may be requested by the Nevada Gaming Authorities
relating to the Lender or such companies. 
In connection therewith, to the extent the foregoing sentence is
applicable, the Lender, its successors and its permitted assignees and
designees acknowledge that each of them is subject to being called forward by
the Nevada Gaming Authorities, in the discretion of the Nevada Gaming
Authorities, for licensing or a finding of suitability in order to remain
entitled to the benefits under this Agreement and the other Loan
Documents.  

 

8.2.          Termination.  This Agreement shall terminate on the last
Maturity Date to occur of the Loan.  As
set forth in Section 7.1(A), the Lender shall also have the right to terminate
its obligations under this Agreement immediately and without notice upon the
occurrence and during the continuation of an Event of Default.  No termination of this Agreement shall
relieve or discharge the Borrower or any Guarantor of its duties, obligations
or covenants hereunder, and except as expressly set forth in the applicable
Pledge Agreements or the Deed of Trust, the Lender’s security interest in the
Collateral shall remain in effect until the Loan and other obligations under
this Agreement (including Sections 2.8 and 8.6) or the Note

 

19

 

has been paid in full.  When all obligations under the Loan have been
paid in full, the Note shall be canceled. 
When this Agreement has been terminated and all such obligations have
been paid in full, or when the security interests in the Collateral are
otherwise released pursuant to the applicable Pledge Agreements or the Deed of
Trust, the Lender shall, at the Borrower’s or any Guarantor’s sole expense,
execute and deliver any UCC termination statements, lien releases, mortgage
releases, discharges of security interests and other similar discharge or
release documents (and, if applicable, in recordable form) as are reasonably
necessary to release, as of record, the security interests in the Collateral.

 

8.3.          Amendments
and Waivers.  The provisions of this
Agreement and the other Loan Documents may be amended, supplemented, modified
or waived; provided, however, that any such amendment,
supplement, modification or waiver be in writing and executed by each party
hereto; and provided, further, that for the purposes of waiver by
the Borrower and any Guarantor under this Section 8.3, as well as any other
waiver, agreement or consent (including an agreement or consent as to
satisfactoriness, reasonability or termination) granted to or required of the Borrower
or any Guarantor under this Agreement, such waiver by or agreement or consent
of the Borrower or any Guarantor shall be considered effective if given by
Wortman, acting on behalf of all of them.

 

8.4.          Notices.  Any and
all notices and demands by a party hereto to the other party hereto required or
desired to be given hereunder shall be in writing and shall be validly given or
made only if: (a) delivered by hand; (b) delivered by FedEx or other similar
overnight delivery or courier service which keeps records of deliveries; or (c)
served by telecopy or similar facsimile transmission, so long as such method is
followed up by one of the methods set forth in (a) or (b).  Delivery of notice by method (a) or (b) shall
be effective upon receipt.  Delivery of
notice by telecopy or similar facsimile transmission shall be effective upon the
printing by sender of a positive confirmation sheet, so long as such sheet
reflects that the telecopy or facsimile was received during regular business
hours.  Telecopy or facsimile
transmissions shown as having been received at any other time shall be deemed
received on the next Business Day. 
Notice on behalf of a party hereto may be signed and sent by any
attorney for such party.

 

(a)           Address of the Borrower and each Guarantor.  Any notice
or demand to the Borrower or any Guarantor shall be addressed to the applicable
party at:

 

WCW Landco,
LLC

211 North
Rampart Boulevard

Las Vegas,
Nevada  89145

Attn:  William Wortman

Fax:  (702) 507-5992

 

20

 

with a copy to

 

Michael E.
Kearney

Santoro,
Driggs, Walch, Kearney, Johnson & Thompson

400 South
Fourth Street, Suite 300

Las Vegas,
Nevada  89101

Fax:  (702) 791-1912

 

(b)           Address of the Lender. 
Any notice or demand to the Lender shall be addressed
to LandCo at:

 

OCM LandCo,
LLC

333 South
Grand Avenue, 28th Floor

Los Angeles,
California  90071

Attn:  Chris Brothers

Attn:  Skardon Baker

Fax:  (213) 830-6394

 

with a copy to

 

Munger, Tolles
& Olson LLP

355 South
Grand Avenue, 35th Floor

Los Angeles,
California  90071

Attn:  Robert Knauss

Fax:  (213) 683-5137

 

(c)           Change of Address.  Each of the parties hereto may change its address for the
purpose of receiving notices or demands as herein provided by a written notice
given in the manner aforesaid to the others, which notice of change of address
shall not become effective, however, until the actual receipt thereof by the
others.

 

8.5.          No
Waiver; Cumulative Remedies.  No
failure to exercise and no delay in exercising, on the part of the Lender, any
right, remedy, power or privilege hereunder or under the other Loan Documents
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by Law.

 

8.6.          Survival
of Representations and Warranties.  All
representations and warranties made hereunder or incorporated by reference
herein, in the other Loan Documents and in any document, certificate or
statement delivered pursuant hereto or in connection herewith or therewith
shall survive the execution and delivery of this Agreement and the making of
the Loan hereunder until repaid in full.

 

21

 

8.7.          Payment
of Expenses and Taxes.  The Borrower
agrees (a) to pay or reimburse the Lender for all its reasonable out-of-pocket
costs and expenses incurred in connection with any amendment, supplement or
modification to, this Agreement and the other Loan Documents, including the
reasonable fees and expenses of counsel in connection therewith, (b) to pay or
reimburse the Lender for all its out-of-pocket costs and expenses incurred in
connection with the enforcement or preservation of any rights under this
Agreement or the other Loan Documents, including the fees and disbursements of
counsel to the Lender, (c) to pay,
indemnify or reimburse the Lender for, and hold the Lender harmless from, any
and all recording and filing fees and any and all liabilities with respect to,
or resulting from any delay in paying, stamp, excise and other taxes (other
than any net income or franchise taxes), if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement and the other Loan Documents, and (d) to pay,
indemnify, and hold the Lender and its respective directors, officers,
employees, affiliates and agents (each, an “Indemnified Person”)
harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement and the other
Loan Documents and the use of proceeds of the Loan (all the foregoing in this
clause (d), collectively, the “Indemnified Liabilities”); provided,
however, that the Borrower shall have no obligation hereunder to any
Indemnified Person with respect to Indemnified Liabilities arising from the
gross negligence or willful misconduct of such Indemnified Person; and provided,
further, that no matter may be indemnified pursuant to this Section 8.7
to the extent already fully indemnified pursuant to Article IX of the CUP
Agreement.  This Section 8.7 shall
survive termination of this Agreement.

 

8.8.          Attorneys’
Fees For Disputes.  In the event any
Action is commenced by any party hereto against any other party hereto in
connection herewith, including any bankruptcy proceeding, the prevailing party
shall be entitled to recover, in addition to its costs of enforcement, its
costs and expenses, including reasonable attorneys’ fees.

 

8.9.          Transfer;
Successors and Assigns.  The Borrower
and each Guarantor may not assign or transfer any of its rights or obligations
under this Agreement at any time without the prior written consent of the
Lender.  Prior to the 1A Closing, the
Lender may assign this Agreement to an Affiliate with the prior written consent
of the Borrower.  After the 1A Closing, the
Lender may freely assign any Note or this Agreement to any Person (including
AcquisitionCo), including assigning rights to payment or to declare an Event of
Default and pursue remedies hereunder, and to designate any Person (including
AcquisitionCo) a third party beneficiary under any Note or this Agreement; provided,
however, that promptly following such assignment or designation, the
Lender must provide notice of such assignment or designation to the Borrower
and each Guarantor.  Subject to the
foregoing, this Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lender and their respective successors and assigns.

 

8.10.        Disclosure.  The Borrower authorizes the Lender to
disclose to any assignee (a “Transferee”) and any prospective Transferee,
any and all financial information in the Lender’s possession concerning the
Borrower, any Guarantor and their respective Affiliates

 

22

 

which has been
delivered to such Lender by or on behalf of the Borrower or any Guarantor
pursuant to this Agreement or which has been delivered to such Lender by or on
behalf of the Borrower or any Guarantor in connection with such Lender’s credit
evaluation of the Borrower, any Guarantor and their respective Affiliates prior
to becoming a party to this Agreement.

 

8.11.        Revival
and Reinstatement of Obligations.  If
the incurrence or payment of any principal, accrued interest or other
obligations by the Borrower or any Guarantor or the transfer to Lender of any Collateral
should for any reason subsequently be declared to be void or voidable under any
state or federal Law relating to creditors’ rights, including provisions of the
bankruptcy Laws relating to fraudulent conveyances, preferences or other
voidable or recoverable payments of money or transfers of property (each, a “Voidable
Transfer”), and if the Lender is required to repay or restore, in whole or
in part, any such Voidable Transfer, or elects to do so upon the reasonable
advice of its counsel, then, as to any such Voidable Transfer, or the amount
thereof that the Lender is required or elects to repay or restore, and as to
all reasonable costs, expenses and attorneys’ fees of the Lender related
thereto, the liability of the Borrower or any Guarantor automatically shall be
revived, reinstated and restored and shall exist as though such Voidable
Transfer had never been made (including with respect to this Agreement, the
Pledge Agreements, the Guarantee Agreements and the Deed of Trust).

 

8.12.        Counterparts.  This Agreement may be executed by facsimile
and in any number of counterparts, each of which when executed by and delivered
shall be an original, but all such counterparts shall constitute one and the
same Agreement.  Any signature page of
this Agreement may be detached from any counterpart without impairing the legal
effect of any signatures thereon, and may be attached to another counterpart,
identical in form thereto, but having attached to it one or more additional
signature pages.

 

8.13.        Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

8.14.        Integration.  This Agreement, the other Loan Documents and
the CUP Agreement and the other documents contemplated thereby represent the
agreement of the Borrower and the Lender with respect to the subject matter
hereof, and there are no promises, undertakings, representations or warranties
by the Borrower and the Lender relative to subject matter hereof not expressly set
forth or referred to herein or therein.

 

8.15.        GOVERNING LAW.   THE INTERNAL LAWS OF THE STATE OF NEVADA
APPLICABLE TO CONTRACTS MADE AND WHOLLY PERFORMED THEREIN SHALL GOVERN THE
VALIDITY, CONSTRUCTION, PERFORMANCE AND EFFECT OF THIS AGREEMENT.

 

8.16.        WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES ITS
RESPECTIVE RIGHT TO A JURY TRIAL OF ANY PERMITTED ACTION ARISING OUT OF THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY, OR ANY

 

23

 

DEALINGS
BETWEEN ANY OF THE PARTIES HERETO RELATING TO THE SUBJECT MATTER OF THIS
AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.  THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, ANY
OTHER LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS.  THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR OTHER MODIFICATIONS
TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY.

 

8.17.        Service
of Process; Consent To Jurisdiction. 
The parties hereto hereby irrevocably submit and consent to the
non-exclusive jurisdiction of any federal or state court located within Reno,
Nevada over any dispute arising out of or relating to this Agreement, the other
Loan Documents or any of the transactions contemplated hereby or thereby.  The parties hereto hereby irrevocably waive,
to the fullest extent permitted by applicable Law, any objection which they may
now or hereafter have to the laying of venue of any such dispute brought in
such court or any defense of inconvenient forum for the maintenance of such
dispute.  Each of the parties hereto
agrees that a judgment in any such dispute may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
applicable Law.  The parties hereto
irrevocably consent to the service of any process, pleading, notice or other
papers by the mailing of copies thereof by registered, certified or first class
mail, postage prepaid, to such party’s address set forth in Section 8.4 or
permitted under Nevada law.

 

8.18.        Interpretation.  The parties hereto agree that no party hereto
shall be deemed to be the drafter of this Agreement and that in the event this
Agreement is ever construed by a court of law or equity, such court shall not
construe this Agreement or any provision hereof against any party hereto as the
drafter of the Agreement.  The parties
hereto acknowledge that each of them has contributed substantially and
materially to the preparation hereof. 
The captions appearing at the commencement of the sections hereof are
descriptive only and for convenience in reference to this Agreement and in no
way whatsoever define, limit or describe the scope or intent of this Agreement,
nor in any way affect this Agreement.

 

[Remainder of page
intentionally left blank.]

 

24

 

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

 

	
  Lender:

  	
  Borrower:

  
	
   

  	
   

  
	
  OCM LandCo,
  LLC

  	
  WCW Landco,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Stephen
  Kaplan

  	
   

  	
  By:

  	
  /s/ William
  C. Wortman

  	
   

  
	
   

  	
  Name:

  	
  Stephen
  Kaplan

  	
  Its:

  	
  Managing
  Member

  	
   

  
	
   

  	
  Title:

  	
  Manager

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Ronald
  Beck

  	
   

  	
  Guarantor:

  
	
   

  	
  Name:

  	
  Ronald Beck

  	
   

  
	
   

  	
  Title:

  	
  Manager

  	
  Esquire
  Ltd., Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  C. Wortman

  	
   

  
	
  Lender’s
  Office:

  	
  Its:

  	
  Managing
  Member

  	
   

  
	
  333 South
  Grand Avenue, 28th Floor

  	
   

  
	
  Los Angeles,
  California 90071

  	
   

  
	
   

  	
  Guarantor:

  
	
   

  	
   

  
	
   

  	
  Nevada
  Palace, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  C. Wortman

  	
   

  
	
   

  	
  Its:

  	
  Managing
  Member

  	
   

  
	
   

  	
   

  
	
   

  	
  Guarantor:

  
	
   

  	
   

  
	
   

  	
  NP Land, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  C. Wortman

  	
   

  
	
   

  	
  Its:

  	
  Managing
  Member

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