Document:

Exhibit
4.2

 

 

 

 

ARCH CAPITAL GROUP
LTD.

to

[NAME OF TRUSTEE],

Trustee

 

INDENTURE

Dated as of
        , 200_

 

Senior Debt Securities

 

 

Reconciliation and tie between Trust Indenture Act of
1939 and Indenture, dated as of        
,     . 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture
  Section

  	
   

  
	
  § 310(a)

  	
  609

  	
   

  
	
   

  	
  (b)

  	
  608, 610

  	
   

  
	
   

  	
  (c)

  	
  Not Applicable

  	
   

  
	
  § 311(a)

  	
  613

  	
   

  
	
   

  	
  (b)

  	
  613

  	
   

  
	
   

  	
  (c)

  	
  Not Applicable

  	
   

  
	
  § 312(a)

  	
  701, 702(a)

  	
   

  
	
   

  	
  (b)

  	
  702(b)

  	
   

  
	
   

  	
  (c)

  	
  702(c)

  	
   

  
	
  § 313(a)

  	
  703(a)

  	
   

  
	
   

  	
  (b)

  	
  703(b)

  	
   

  
	
   

  	
  (c)

  	
  703(b)

  	
   

  
	
   

  	
  (d)

  	
  703(c)

  	
   

  
	
  § 314(a)

  	
  704

  	
   

  
	
   

  	
  (b)

  	
  Not Applicable

  	
   

  
	
   

  	
  (c)

  	
  102

  	
   

  
	
   

  	
  (d)

  	
  Not Applicable

  	
   

  
	
   

  	
  (e)

  	
  102

  	
   

  
	
   

  	
  (f)

  	
  Not Applicable

  	
   

  
	
  § 315(a)

  	
  601

  	
   

  
	
   

  	
  (b)

  	
  602, 703(b)

  	
   

  
	
   

  	
  (c)

  	
  601(b)

  	
   

  
	
   

  	
  (d)

  	
  601(c)

  	
   

  
	
   

  	
  (e)

  	
  514

  	
   

  
	
  § 316(a)(1)

  	
  512, 513

  	
   

  
	
   

  	
  (b)

  	
  508

  	
   

  
	
   

  	
  (c)

  	
  104(d)

  	
   

  
	
  § 317(a)(1)

  	
  503

  	
   

  
	
   

  	
  (a)(2)

  	
  504

  	
   

  
	
   

  	
  (b)

  	
  1003

  	
   

  
	
  § 318(a)

  	
  107

  	
   

  
					

 

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

 

TABLE OF CONTENTS

Page

	
  ARTICLE ONE

  
	
   

  
	
  DEFINITIONS AND OTHER
  PROVISIONS

  OF GENERAL APPLICATION

  
	
   

  
	
  SECTION 101.

  	
  Definitions.

  	
  1

  
	
  SECTION 102.

  	
  Compliance
  Certificates and Opinions.

  	
  7

  
	
  SECTION 103.

  	
  Form of
  Documents Delivered to Trustee.

  	
  8

  
	
  SECTION 104.

  	
  Acts of Holders.

  	
  9

  
	
  SECTION 105.

  	
  Notices, Etc.,
  to Trustee and Company.

  	
  10

  
	
  SECTION 106.

  	
  Notice to
  Holders; Waiver.

  	
  10

  
	
  SECTION 107.

  	
  Conflict with
  Trust Indenture Act.

  	
  11

  
	
  SECTION 108.

  	
  Effect of
  Headings and Table of Contents.

  	
  11

  
	
  SECTION 109.

  	
  Successors and
  Assigns.

  	
  11

  
	
  SECTION 110.

  	
  Separability
  Clause.

  	
  11

  
	
  SECTION 111.

  	
  Benefits of
  Indenture.

  	
  11

  
	
  SECTION 112.

  	
  Governing Law.

  	
  11

  
	
  SECTION 113.

  	
  Legal Holidays.

  	
  11

  
	
  SECTION 114.

  	
  References to
  Currency.

  	
  12

  
	
  SECTION 115.

  	
  Agent for
  Service; Submission to Jurisdiction; Waiver of Immunities.

  	
  12

  
	
  SECTION 116.

  	
  Judgment
  Currency.

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  	
   

  
	
  SECURITY FORMS

  
	
   

  	
   

  	
   

  
	
  SECTION 201.

  	
  Forms Generally.

  	
  13

  
	
  SECTION 202.

  	
  Form of
  Trustee’s Certificate of Authentication.

  	
  14

  
	
  SECTION 203.

  	
  Securities
  Issuable in the Form of a Global Security.

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  	
   

  	
   

  
	
  THE SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 301.

  	
  Amount
  Unlimited; Issuable in Series.

  	
  16

  
	
  SECTION 302.

  	
  Denominations.

  	
  19

  
	
  SECTION 303.

  	
  Execution,
  Authentication, Delivery and Dating.

  	
  19

  
	
  SECTION 304.

  	
  Temporary
  Securities.

  	
  21

  
				

 

-i-

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 305.

  	
  Registration,
  Registration of Transfer and Exchange.

  	
  21

  
	
  SECTION 306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities.

  	
  22

  
	
  SECTION 307.

  	
  Payment of
  Interest; Interest Rights Preserved.

  	
  23

  
	
  SECTION 308.

  	
  Persons Deemed
  Owners.

  	
  24

  
	
  SECTION 309.

  	
  Cancellation.

  	
  24

  
	
  SECTION 310.

  	
  Computation of
  Interest.

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND
  DISCHARGE

  
	
   

  	
   

  	
   

  
	
  SECTION 401.

  	
  Satisfaction and
  Discharge of Indenture.

  	
  25

  
	
  SECTION 402.

  	
  Application of
  Trust Funds; Indemnification.

  	
  26

  
	
  SECTION 403.

  	
  Defeasance and
  Discharge of Indenture.

  	
  27

  
	
  SECTION 404.

  	
  Defeasance of
  Certain Obligations.

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  
	
   

  	
   

  	
   

  
	
  REMEDIES

  
	
   

  	
   

  	
   

  
	
  SECTION 501.

  	
  Events of
  Default.

  	
  30

  
	
  SECTION 502.

  	
  Acceleration of
  Maturity: Rescission and Annulment.

  	
  31

  
	
  SECTION 503.

  	
  Collection of
  Indebtedness and Suits for Enforcement by Trustee.

  	
  32

  
	
  SECTION 504.

  	
  Trustee May File
  Proofs of Claim.

  	
  33

  
	
  SECTION 505.

  	
  Trustee May
  Enforce Claims Without Possession of Securities.

  	
  34

  
	
  SECTION 506.

  	
  Application of
  Money Collected.

  	
  34

  
	
  SECTION 507.

  	
  Limitation on
  Suits.

  	
  35

  
	
  SECTION 508.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest.

  	
  35

  
	
  SECTION 509.

  	
  Restoration of
  Rights and Remedies.

  	
  36

  
	
  SECTION 510.

  	
  Rights and
  Remedies Cumulative.

  	
  36

  
	
  SECTION 511.

  	
  Delay or
  Omission Not Waiver.

  	
  36

  
	
  SECTION 512.

  	
  Control by
  Holders.

  	
  37

  
	
  SECTION 513.

  	
  Waiver of Past
  Defaults.

  	
  37

  
	
  SECTION 514.

  	
  Undertaking for
  Costs.

  	
  37

  
	
  SECTION 515.

  	
  Waiver of Stay
  or Extension Laws.

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  
	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  SECTION 601.

  	
  Certain Duties
  and Responsibilities.

  	
  38

  
				

 

-ii-

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 602.

  	
  Notice of
  Defaults.

  	
  40

  
	
  SECTION 603.

  	
  Certain Rights
  of Trustee.

  	
  40

  
	
  SECTION 604.

  	
  Not Responsible
  for Recitals or Issuance of Securities.

  	
  41

  
	
  SECTION 605.

  	
  May Hold
  Securities.

  	
  41

  
	
  SECTION 606.

  	
  Money Held in
  Trust.

  	
  41

  
	
  SECTION 607.

  	
  Compensation and
  Reimbursement.

  	
  42

  
	
  SECTION 608.

  	
  Disqualification;
  Conflicting Interests.

  	
  42

  
	
  SECTION 609.

  	
  Corporate
  Trustee Required; Eligibility.

  	
  42

  
	
  SECTION 610.

  	
  Resignation and
  Removal; Appointment of Successor.

  	
  43

  
	
  SECTION 611.

  	
  Acceptance of Appointment
  by Successor.

  	
  44

  
	
  SECTION 612.

  	
  Merger,
  Conversion, Consolidation or Succession to Business.

  	
  46

  
	
  SECTION 613.

  	
  Preferential
  Collection of Claims Against Company.

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  
	
  HOLDERS’ LISTS
  AND REPORTS BY TRUSTEE AND COMPANY

  
	
   

  	
   

  	
   

  
	
  SECTION 701.

  	
  Company to
  Furnish Trustee Names and Addresses of Holders.

  	
  46

  
	
  SECTION 702.

  	
  Preservation of
  Information; Communications to Holders.

  	
  47

  
	
  SECTION 703.

  	
  Reports by
  Trustee.

  	
  49

  
	
  SECTION 704.

  	
  Reports by
  Company.

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  
	
   

  	
   

  	
   

  
	
  SECTION 801.

  	
  When Company May
  Merge or Transfer Assets.

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  
	
  AMENDMENTS &
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  SECTION 901.

  	
  Amendments or
  Supplemental Indentures without Consent of Holders.

  	
  51

  
	
  SECTION 902.

  	
  Amendments or
  Supplemental Indentures with Consent of Holders.

  	
  52

  
	
  SECTION 903.

  	
  Execution of
  Supplemental Indentures.

  	
  53

  
	
  SECTION 904.

  	
  Effect of
  Supplemental Indentures.

  	
  53

  
	
  SECTION 905.

  	
  Conformity with
  Trust Indenture Act.

  	
  53

  
	
  SECTION 906.

  	
  Reference in
  Securities to Supplemental Indentures.

  	
  53

  
				

 

-iii-

 

	
   

  	
  Page

  
	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  SECTION 1001.

  	
  Payment of
  Principal, Premium and Interest.

  	
  54

  
	
  SECTION 1002.

  	
  Maintenance of
  Office or Agency.

  	
  54

  
	
  SECTION 1003.

  	
  Money for Securities;
  Payments to Be Held in Trust.

  	
  55

  
	
  SECTION 1004.

  	
  Corporate
  Existence.

  	
  56

  
	
  SECTION 1005.

  	
  Maintenance of
  Properties.

  	
  56

  
	
  SECTION 1006.

  	
  Statement by
  Officers as to Default.

  	
  57

  
	
  SECTION 1007.

  	
  Waiver of
  Certain Covenants.

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  	
   

  	
   

  
	
  REDEMPTION OF
  SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 1101.

  	
  Applicability of
  Article.

  	
  57

  
	
  SECTION 1102.

  	
  Election to
  Redeem; Notice to Trustee.

  	
  57

  
	
  SECTION 1103.

  	
  Selection by
  Trustee of Securities to Be Redeemed.

  	
  58

  
	
  SECTION 1104.

  	
  Notice of
  Redemption.

  	
  58

  
	
  SECTION 1105.

  	
  Deposit of
  Redemption Price.

  	
  59

  
	
  SECTION 1106.

  	
  Securities
  Payable on Redemption Date.

  	
  59

  
	
  SECTION 1107.

  	
  Securities
  Redeemed in Part.

  	
  60

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  	
   

  	
   

  
	
  SINKING FUNDS

  
	
   

  	
   

  	
   

  
	
  SECTION 1201.

  	
  Applicability of
  Article.

  	
  61

  
	
  SECTION 1202.

  	
  Satisfaction of
  Sinking Fund Payments with Securities.

  	
  61

  
	
  SECTION 1203.

  	
  Redemption of
  Securities for Sinking Fund.

  	
  61

  
				

 

 

-iv-

 

INDENTURE, dated as of        ,200_, between Arch Capital Group Ltd., a Bermuda company
(herein called the “Company” or the “Issuer”), having its principal office at
20 Horseneck Lane, Greenwich, CT 20380, and [Name of Trustee], a
[            ], as
trustee hereunder (herein called the “Trustee”).

RECITALS OF THE COMPANY

 

The Company has duly authorized the execution and delivery
of this Indenture to provide for the issuance from time to time of its
unsecured debentures, notes or other evidences of indebtedness (herein called
the “Securities”), to be issued in one or more series as in this Indenture
provided.

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

 

DEFINITIONS AND OTHER
PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101.       Definitions.

 

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

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

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

(3)  all accounting terms not otherwise defined
herein have the meanings assigned to them in accordance with generally accepted
accounting principles in the United States, and, except as otherwise herein
expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted 

 

hereunder shall mean such accounting principles as are
generally accepted at the date of such computation;

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

(5)  all references used herein to the male
gender shall include the female gender.

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

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

“Board of Directors” means either the board of directors
of the Company or any duly authorized committee of that board duly authorized
to act hereunder.

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

“Business Day” means, with respect to any Securities,
a day that in the City of New York, in the City of Boston, Massachusetts or in
any Place of Payment is not a day on which banking institutions are authorized
by law or regulation to close.

“Capital Stock” for any entity means any and all
shares, interests, rights to purchase, warrants, options, participations or
other equivalents of or interests in (however designated) shares issued by that
entity.

“Certificated Securities” means Securities that are in
registered definitive form.

“Commission” means the Securities and Exchange Commission,
as from time to time constituted, created under the Securities Exchange Act of
1934, or, if at any time after the execution of this instrument such Commission
is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties at such time.

 

-2-

 

“Common Shares” means the common shares, $0.01 par
value per share, of the Company existing on the date of this Indenture or any
other shares of Capital Stock of the Company into which such common shares
shall be reclassified or changed.

“Company” means 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 Request” or “Company Order” means a written
request or order signed in the name of the Company by its chairman of the
board, a vice chairman, its president or a vice president, and by its treasurer,
an assistant treasurer, its secretary or an assistant secretary, and delivered
to the Trustee.

“Corporate Trust Office” means the office of the
Trustee at which at any particular time the trust created by this Indenture
shall be administered, which office, at the time of the execution of this
Indenture, is located at
[          ].

“Defaulted Interest” has the meaning specified in
Section 307.

“Depositary” means, unless otherwise specified by the
Company pursuant to either Section 203 or 301, with respect to Securities of
any series issuable or issued as a Global Security, The Depository Trust
Company, New York, New York, or any successor thereto registered under the
Securities Exchange Act of 1934, as amended, or other applicable statute or
regulation.

“Event of Default” has the meaning specified in Section
501.

“Global Security” means a Security issued to evidence
all or a part of any series of Securities which is executed by the Company and
authenticated and delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction, all in accordance with this Indenture and pursuant to
a Company Order, which shall be registered in the name of the Depositary or its
nominee.

“Holder” means a Person in whose name a Security is
registered in the Security Register.

“Holder Action” has the meaning specified in Section
702(d).

“Indenture” means this instrument as originally executed
or as it may from time to time be supplemented or amended by one or more
amendments or indentures supplemental 

 

-3-

 

hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of particular series of
Securities established as contemplated by Section 301.

“Interest,” when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest payable after Maturity.

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

“Issuer” means the Person named as the “Issuer” 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 “Issuer” shall mean such successor corporation.

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

“Officers’ Certificate” means a certificate signed by
the chairman of the board, the president or a vice president, and by the
treasurer, an assistant treasurer, the secretary or an assistant secretary, of
the Company, and delivered to the Trustee.

“Opinion of Counsel” means written opinion of counsel,
who may be counsel for the Company and who shall be acceptable to the Trustee.

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

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

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

                   (ii)        Securities for whose payment or
redemption money or evidences of indebtedness in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Securities; provided
that, if such Securities are to be redeemed, notice of such re-

 

-4-

 

demption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made; and

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

provided, however, that in determining whether the
Holders of the requisite principal amount of the Outstanding Securities have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which the Trustee knows to be so owned shall be so disregarded.  Securities so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor.  In case of a dispute as to such right, any
decision by the Trustee shall be full protection to the Trustee.  Upon request of the Trustee, the Company
shall furnish to the Trustee promptly an Officers’ Certificate listing and
identifying all Securities, if any, known by the Company to be owned or held by
or for the account of any of the above-described persons; and, subject to
Section 601, the Trustee shall be entitled to accept such Officers’ Certificate
as conclusive evidence of the facts therein set forth and of the fact that all
Securities not listed therein are Outstanding for the purposes of any such
determination.

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

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

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

“Predecessor Security” of any particular Security
means every previous Security evidencing all or a portion of the same debt as
that evidenced by such particular Security; 

 

-5-

 

and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

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

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

“Regular Record Date” for the interest payable on any
Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 301.

“Responsible Officer,” when used with respect to the
Trustee, means any officer of the Trustee assigned by the Trustee to administer
its corporate trust matters.

“Securities” has the meaning stated in the first recital
of this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.

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

“Special Record Date” for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.

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

“Subsidiary” means, with respect to any Person:

(1)           any corporation or company a majority
of whose Capital Stock with voting power, under ordinary circumstances, to
elect directors is, at the date of determination, directly or indirectly, owned
by such Person (a “subsidiary”), by one or more subsidiaries of such Person or
by such Person and one or more subsidiaries of such Person;

(2)           a partnership in which such Person or
a subsidiary of such Person is, at the date of determination, a general partner
of such partnership; or

 

-6-

 

(3)           any partnership, limited liability
company or other Person in which such Person, a subsidiary of such Person or
such Person and one or more subsidiaries of such Person, directly or indirectly,
at the date of determination, have (x) at least a majority ownership
interest or (y) the power to elect or appoint or direct the election or
appointment of the managing partner or member of such Person or, if applicable,
a majority of the directors or other governing body of such Person.

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

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

“U.S. Government Obligations” means securities which
are (i) direct obligations of the United States of America for the payment of
which its full faith and credit is pledged or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America the payment of which is unconditionally guaranteed as
to the timely payment of principal and interest as a full faith and credit
obligation by the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank or trust company which is a
member of the Federal Reserve System and having a combined capital and surplus
of at least $50,000,000 as custodian with respect to any such obligation
evidenced by such depository receipt or a specific payment of interest on or
principal of any such obligation held by such custodian for the account of the
holder of a depository receipt; provided that (except as required by
law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by
the custodian in respect of the obligation set forth in (i) or (ii) above or
the specific payment of interest on or principal of such obligation evidenced
by such depository receipt.

SECTION 102.       Compliance
Certificates and Opinions.

 

Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers’ Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and, where appropriate as to matters of
law, an Opinion of Counsel stating that in the opinion of such counsel all such
conditions 

 

-7-

 

precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate
or opinion need be furnished.

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

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

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

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

(4)  a statement as to whether, in the opinion of
each such Person, such condition or covenant has been complied with.

SECTION 103.       Form of
Documents Delivered to Trustee.

 

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

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

 

-8-

 

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

SECTION 104.       Acts of
Holders.

 

(a)  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company.  Such instrument
or instruments (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the “Act” of the Holders signing such
instrument or instruments.  Proof of execution
of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 601)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this section.

(b)  The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may be proved in accordance with such reasonable rules and regulations as may
be prescribed by the Trustee or in any reasonable manner which the Trustee
deems sufficient.

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

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

 

-9-

 

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

SECTION 105.       Notices,
Etc., to Trustee and Company.

 

Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,

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

(2)  the Company by the Trustee or by any Holder
shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
the Company addressed to it at the address of its principal office specified in
the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company, to the attention of the
general counsel of the Company.

SECTION 106.       Notice to
Holders; Waiver.

 

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

In case by reason of the suspension of regular mail
service or by reason of any other case it shall be impracticable to give such
notice by mail, then such notification as shall 

 

-10-

 

be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

SECTION 107.       Conflict
with Trust Indenture Act.

 

If any provision hereof limits, qualifies or conflicts
with another provision which is required or deemed to be included in this
Indenture by any of the provisions of the Trust Indenture Act, such required or
deemed provision shall control.

SECTION 108.       Effect of
Headings and Table of Contents.

 

The article and section headings herein and the table
of contents are for convenience only and shall not affect the construction
hereof.

SECTION 109.       Successors
and Assigns.

 

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

SECTION 110.       Separability
Clause.

 

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

SECTION 111.       Benefits of
Indenture.

 

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

SECTION 112.       Governing
Law.

 

This Indenture and the Securities shall be governed by
and construed in accordance with the laws of the State of New York.

SECTION 113.       Legal
Holidays.

 

In any case where any Interest Payment Date,
Redemption Date or Stated Maturity of any Security shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities) payment of interest or principal (and premium,
if any) need not be made at such Place of Payment on such date, but may be made
on the next succeeding Business Day at such Place of Payment with the same
force and 

 

-11-

 

effect as if made on the Interest Payment Date or
Redemption Date, or at the Stated Maturity, provided that no interest
shall accrue for the period from and after such Interest Payment Date,
Redemption Date or Stated Maturity, as the case may be.

SECTION 114.       References
to Currency.

 

All references in this Indenture to “dollars” or “$”
are to the currency of the United States of America.

SECTION 115.       Agent for
Service; Submission to Jurisdiction; Waiver of Immunities.

 

By the execution and delivery of this Indenture, the
Company (i) acknowledges that it has, by separate written instrument,
designated and appointed National Registered Agents, Inc. (the “Process
Agent”), 440 9th Avenue, 5th Floor,  New York, New York 10001, United States, as
its authorized agent upon which process may be served in any suit, action or
proceeding arising out of or relating to the Notes or this Indenture that may
be instituted in any Federal or state court in the State of New York, The City
of New York, the Borough of Manhattan, or brought under Federal or state
securities laws or brought by the Trustee (whether in its individual capacity
or in its capacity as Trustee hereunder), and acknowledges that the Process
Agent has accepted such designation, (ii) submits to the jurisdiction of any
such court in any such suit, action or proceeding and (iii) agrees that service
of process upon the Process Agent and written notice of said service to it at
its principal office in accordance with Section 105 hereof), shall be deemed in
every respect effective service of process upon it in any such suit or
proceeding.  The Company further agrees
to take any and all action, including the execution and filing of any and all
such documents and instruments as may be necessary to continue such designation
and appointment of the Process Agent in full force and effect so long as the
Securities shall be outstanding; provided that the Company may (and shall, to
the extent the Process Agent ceases to be able to be served on the basis
contemplated herein) by written notice to the Trustee, designate such
additional or alternative agents for service of process under this
Section 115 that (i) maintains an office located in the Borough of
Manhattan, The City of New York in the State of New York, (ii) are either
(x) counsel for the Company or (y) a corporate service company which acts
as agent for service of process for other Persons in the ordinary course of its
business and (iii) agrees to act as agent for service of process in
accordance with this Section 115. Such notice shall identify the name of
such agent for process and the address of such agent for process in the Borough
of Manhattan, The City of New York, State of New York.  Notwithstanding the foregoing, there shall,
at all times, be at least one agent for service of process for the Company
appointed and acting in accordance with this Section 115.

To the extent that the Company has or hereafter may
acquire any immunity from jurisdiction of any court or from any legal process
(whether through service of notice, attachment prior to judgment, attachment in
aid of execution, execution or otherwise) with 

 

-12-

 

respect to itself or its property, it hereby
irrevocably waives such immunity in respect of its obligations under the
above-referenced documents, to the extent permitted by law.

SECTION 116.       Judgment
Currency.

 

The Company hereby agrees to indemnify the Trustee and
each Holder against any loss incurred by any of them as a result of any
judgment or order being given or made for any amount due under this Indenture
or the Securities and such judgment or order being expressed and paid in a
currency (the “Judgment Currency”) other than U.S. dollars and as result of any
variation as between (i) the rate of exchange at which the U.S. dollar
amount is converted into the Judgment Currency for the purpose of such judgment
or order and (ii) the spot rate of exchange in The City of New York at which
any such person on the date of payment of such judgment or order is able to
purchase U.S. dollars with the amount of the Judgment Currency actually
received by such person.  The foregoing
indemnity shall continue in full force and effect notwithstanding any such
judgment or order as aforesaid.  The
term “spot rate of exchange” shall include any premiums and costs of exchange
payable in connection with the purchase of, or conversion into, U.S. dollars.

ARTICLE TWO

 

SECURITY FORMS

 

SECTION 201.       Forms
Generally.

 

The Securities of each series shall be in substantially
the forms established in one or more indentures supplemental hereto or approved
from time to time by or pursuant to a Board Resolution in accordance with
Section 301, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture and any indenture supplemental hereto, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities
exchange or securities regulatory authority or as may, consistently herewith,
be determined by the officers executing such Securities, as evidenced by their
execution of the Securities.  If the
form of Securities of any series is established by action taken pursuant to a
Board Resolution, a copy of an appropriate record of such action shall be
certified by the secretary or an assistant secretary of the Company and delivered
to the Trustee at or prior to the delivery of the Company Order contemplated by
Section 303 for the authentication and delivery of such Securities.

 

-13-

 

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

SECTION 202.       Form of
Trustee’s Certificate of Authentication.

 

The Trustee’s certificate of authentication required
by this article shall be in substantially the form set forth below.

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

 

	
  [NAME OF
  TRUSTEE],

  
	
  as Trustee

  
	
   

  
	
   

  
	
  By

  	
   

  
	
  Authorized Signatory”

  

 

SECTION 203.       Securities
Issuable in the Form of a Global Security.

 

(a)  If the Issuer shall establish pursuant to
Sections 201 and 301 that the Securities of a particular series are to be
issued in whole or in part in the form of one or more Global Securities, then
the Issuer shall execute and the Trustee shall, in accordance with Section 303
and the Company Order delivered to the Trustee thereunder, authenticate and
deliver, such Global Security or Securities, which (i) shall represent,
and shall be denominated in an amount equal to the aggregate principal amount
of, the Outstanding Securities of such series to be represented by such Global
Security or Securities, (ii) shall be registered in the name of the
Depositary for such Global Security or Securities or its nominee,
(iii) shall be delivered by the Trustee to the Depositary or its custodian
or pursuant to the Depositary’s instruction and (iv) shall bear a legend
substantially to the following effect: “UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE (I) BY THE DEPOSITARY TO
A NOMINEE OF THE  DEPOSITARY OR
(II) BY A NOMINEE OF THE DEPOSITARY OR THE DEPOSITARY TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS REQUESTED BY AN AU-

-14-

 

THORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

(b)  Notwithstanding any other provision of this
section or of Section 305, unless the terms of a Global Security expressly
permit such Global Security to be exchanged in whole or in part for individual
Securities, a Global Security may be transferred, in whole but not in part and
in the manner provided in Section 305, only to another nominee of the
Depositary for such Global Security, or to a successor Depositary for such
Global Security selected or approved by the Issuer or to a nominee of such
successor Depositary.

(c)  (i) 
If at any time the Depositary for a Global Security notifies the Issuer
that it is unwilling or unable to continue as Depositary for such Global
Security or if at any time the Depositary for the Securities for such series
shall no longer be eligible or in good standing under the Securities Exchange
Act of 1934, as amended, or other applicable statute or regulation, the Issuer
shall appoint a successor Depositary with respect to such Global Security.  If a successor Depositary for such Global
Security is not appointed by the Issuer within 90 days after the Issuer
receives such notice or becomes aware of such ineligibility, the Issuer will
execute a Company Order for the authentication and delivery of individual
Securities of such series in exchange for such Global Security, and the
Trustee, upon receipt of such Company Order, will authenticate and deliver
individual Securities of such series of like tenor and terms in definitive form
in an aggregate principal amount equal to the principal amount of the Global
Security in exchange for such Global Security.

                   (ii)        If an Event of Default shall have occurred and be continuing
or an event shall have occurred which with the giving of notice or lapse of
time or both, would constitute an Event of Default with respect to the
Securities represented by such Global Security, the Trustee, upon receipt of a
Company Order for the authentication and delivery of individual Securities of
such series in exchange for such Global Security, will authenticate and deliver
individual Securities of such series of like tenor and terms in definitive form
in an aggregate principal amount equal to the principal amount of the Global
Security in exchange for such Global Security.

                  (iii)        The Issuer may at any time and in its sole discretion
determine that the Securities of any series issued or issuable in the form of
one or more Global Securities shall no longer be represented by such Global
Security or Securities.  In such event
the Issuer will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of individual Securities of such series in exchange
in whole or in part for such Global Security, will authenticate and deliver
individual Securities of such series of like tenor and terms in definitive form
in an aggregate principal amount equal to the principal amount of such Global 

 

-15-

 

Security or Securities representing such series to be
so exchanged for such Global Security or Securities.

                  (iv)        If specified by the Issuer pursuant to Section 301 with
respect to Securities issued or issuable in the form of a Global Security, the
Depositary for such Global Security may surrender such Global Security in
exchange in whole or in part for individual Securities of such series of like
tenor and terms in definitive form on such terms as are acceptable to the
Issuer and such Depositary.  Thereupon
the Issuer shall execute, and the Trustee shall authenticate and deliver,
without service charge, (1) to each Person specified by such Depositary a new
Security or Securities of the same series of like tenor and terms and of any
authorized denomination of $1,000 and any integral multiple thereof as
requested by such Person in aggregate principal amount equal to and in exchange
for such Person’s beneficial interest in the Global Security; and (2) to such
Depositary a new Global Security of like tenor and terms and in a denomination
equal to the difference, if any, between the principal amount of the surrendered
Global Security and the aggregate principal amount of Securities delivered to
Holders thereof.

                   (v)        In any exchange provided for in any of the preceding four
paragraphs, the Issuer will execute and the Trustee will authenticate and
deliver individual Securities in definitive registered form in authorized
denominations of $1,000 and any integral multiple thereof.  Upon the exchange of a Global Security for
individual Securities, such Global Security shall be cancelled by the
Trustee.  Securities issued in exchange
for a Global Security pursuant to this section shall be registered in such
names and in such authorized denominations as the Depositary for such Global
Security, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee. 
The Trustee shall deliver such Securities to the persons in whose names
such Securities are so registered.

ARTICLE THREE

 

THE SECURITIES

 

SECTION 301.       Amount
Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities which may
be authenticated and delivered under this Indenture is unlimited.

The Securities may be issued in one or more
series.  There shall be established in
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,

 

-16-

 

(1) 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 Sections 203,
304, 305, 306, 906 or 1107);

(2)  the issue price, expressed as a percentage
of the aggregate principal amount;

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

(4)  the rate or rates at which the Securities of
the series shall bear interest, if any, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest shall
be payable and the Regular Record Date for the interest payable on the Interest
Payment Date;

(5)  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;

(6)  the period of periods within which, the
price or prices or ratios at which and the terms and conditions upon which
Securities of the series may be redeemed, converted or exchanged, in whole or
in part;

(7)  if other than denominations of $1,000 and
any integral multiple thereof, the denominations in which Securities of the
series shall be issuable;

(8)  if other than the full principal amount, the
portion of the principal amount of Debt Securities of the series which will be
payable upon declaration of acceleration or provable in bankruptcy;

(9)  any events of default not set forth in this
Indenture;

(10)  the currency or currencies, including
composite currencies, in which payment of the principal of (and premium, if
any) and interest, if any, on such Securities shall be payable (if other than
the currency of the United States of America), which unless otherwise specified
shall be the currency of the United States of America as at the time of payment
is legal tender for payment of public or private debts;

 

-17-

 

(11)  if the principal of (and premium, if any) or
interest, if any, on such Securities is to be payable, at the election of the
Company or any Holder thereof, in a coin or currency other than that in which
such Securities are stated to be payable, then the period or periods within
which, and the terms and conditions upon which, such election may be made;

(12)  whether interest will be payable in cash or
additional Securities at the Company’s or the Holders’ option and the terms and
conditions upon which the election may be made;

(13)  if such Securities are to be denominated in
a currency or currencies, including composite currencies, other than the
currency of the United States of America, the equivalent price in the currency
of the United States of America for purposes of determining the voting rights
of Holders of such Securities as Outstanding Securities under this Indenture;

(14)  if the amount of payments of principal of
(and premium, if any), or portions thereof, or interest, if any, on such
Securities may be determined with reference to an index, formula or other
method based on a coin or currency other than that in which such Securities are
stated to be payable, the manner in which such amounts shall be determined;

(15)  any restrictive covenants or other material
terms relating to the offered debt securities, which covenants and terms shall
not be inconsistent with the provisions of this Indenture;

(16)  whether the Securities of the series shall
be issued in whole or in part in the form of a Global Security or Securities;
the terms and conditions, if any, upon which such Global Security or Securities
may be exchanged in whole or in part for other individual Securities; and the
Depositary for such Global Security or Securities;

(17)  any listing of such Securities on any
securities exchange;

(18)  additional or alternative provisions, if
any, related to defeasance and discharge of the offered debt securities;

(19)  the applicability of any guarantees;

(20)  if convertible into Common Shares, the terms
on which such Securities are convertible, including the initial conversion
price, the conversion period, any events requiring an adjustment of the
applicable conversion price and any requirements relating to the reservation of
such Common Shares for purposes of conversion;

 

-18-

 

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

(22)  each initial Place of Payment; and

(23)  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 as to denomination and except 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 Securities of any series
are established by action taken pursuant to a Board Resolution, a copy of an appropriate
record of such action shall be certified by the secretary or an assistant
secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate setting forth the terms of the Securities
of any series.

SECTION 302.       Denominations.

 

The Securities of each series shall be issuable in
registered form without coupons in such denominations as shall be specified as
contemplated by Section 301.  In the
absence of any such provisions with respect to the Securities of any series,
the Securities of such series shall be issuable in denominations of $1,000 and
any integral multiple thereof.

SECTION 303.       Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the
Company by its chairman of the Board of Directors, a vice chairman, its
president or one of its vice presidents, under its corporate seal reproduced
thereon attested by its secretary or one of its assistant secretaries.  The signature of any of these officers on
the Securities may be manual or facsimile.

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

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 to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver
such Securities.  If the form or terms
of the Securities of the series have been es-

 

-19-

 

tablished in or pursuant to one or more Board
Resolutions as permitted by Sections 201 and 301, or by one or more indentures
supplemental hereto as provided by Section 901, 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 601) shall be fully protected in relying upon, an Opinion
of Counsel stating

(a)  that such
form has been established in conformity with the provisions of this Indenture;

(b)  that such
terms have been established in conformity with the provisions of this
Indenture;

(c)  that this
Indenture and such Securities, 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 their terms, subject
to bankruptcy, insolvency, fraudulent conveyance, reorganization and other laws
of general applicability relating to or affecting the enforcement of creditors’
rights and to general equity principles;

(d)  that all
laws and requirements in respect of the execution and delivery by the Company
of the Securities have been complied with; and

(e)  such other
matters as the Trustee may reasonably request.

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

Each Security shall be dated the date of its authentication
unless otherwise provided by the terms established and contemplated by Section
301.

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.

 

-20-

 

SECTION 304.       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 which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu
of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities
may determine, as evidenced by their execution of such Securities.

If temporary Securities of any series are issued, the
Company will cause definitive Securities of that series to be prepared without
unreasonable delay.  After the
preparation of definitive Securities of such series, the temporary Securities
of such series shall be exchangeable for definitive Securities of such series
upon surrender of the temporary Securities of such series at the office or
agency of the Company in a Place of Payment for that series, without charge to
the Holder.  Upon surrender for
cancellation of any one or more temporary Securities of any series the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations.  Until so
exchanged the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of
such series.

SECTION 305.       Registration,
Registration of Transfer and Exchange.

 

The Company shall cause to be kept at one of its offices
or agencies maintained pursuant to Section 1002 or at the Corporate Trust
Office of the Trustee a register (the register maintained in such office and in
any other office or agency of the Company in a Place of Payment being herein
sometimes collectively referred to as the “Security Register”) in which,
subject to Section 203 and to such reasonable regulations as it may prescribe,
the Company shall provide for the registration of Securities and of transfers
of Securities.  The Trustee initially is
hereby appointed “Security Registrar” for the purpose of registering Securities
and transfers of Securities as herein provided.  The Company may act as Security Registrar and may change or
appoint a Security Registrar without prior notice to Holders or to the Trustee.

Subject to Section 203, upon surrender for
registration of transfer of any Security of any series at the office or agency
in a Place of Payment for that series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities of the same series, of
any authorized denominations and of a like aggregate principal amount and
tenor.

Subject to Section 203, at the option of the Holder,
Securities of any series may be exchanged for other Securities of the same
series, of any authorized denominations and of a 

 

-21-

 

like aggregate principal amount and tenor, upon
surrender of the Securities to be exchanged at such office or agency.  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.

Subject to Section 203, all Securities issued upon any
registration or transfer or exchange of Securities shall be valid obligations
of the Company, evidencing the same debt, and entitled to the same benefits
under this Indenture, as the Securities surrendered upon such registration of
transfer or exchange.

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

No service charge shall be made for any registration
of transfer or exchange of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 203, 304, 906 or 1107 not
involving any transfer.

The Company shall not be required (i) to issue,
register the transfer of or exchange Securities of any series during a period
beginning at the opening of business 15 days before the day of the mailing of a
notice of redemption of Securities of that series selected for redemption
(under Section 1103) and ending at the close of business on the day of such
mailing, or (ii) to register the transfer of or exchange any Security so selected
for redemption in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

SECTION 306.       Mutilated,
Destroyed, Lost and Stolen Securities.

 

If there shall be delivered to the Company and the
Trustee (i)(A) any mutilated Security or (B) evidence to their satisfaction of
the destruction, loss or theft of any Security and (ii) such security or
indemnity as may be required by them to hold each of them and any agent of
either of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon its request the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security or in exchange
for such mutilated Security, a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously outstanding.

 

-22-

 

In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security.

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

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

The provisions of this section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.

SECTION 307.       Payment of
Interest; Interest Rights Preserved.

 

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

Any interest on any Security of any series which is
payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at
its election in each case, as provided in clause (1) or (2) below:

(1)  The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the Securities of such series
(or their respective Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. 
The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security of such series and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date 

-23-

 

of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor to be mailed, first-class postage prepaid,
to each Holder of Securities of such series at his address as it appears in the
Security Register, not less than 10 days prior to such Special Record
Date.  Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (2).

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

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

SECTION 308.       Persons
Deemed Owners.

 

Subject to Section 203, the Company, the Trustee and
any agent of the Company or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of
receiving payment of principal of (and premium, if any) and (subject to Section
307) interest on such Security and for all other purposes whatsoever, whether
or not such Security be overdue, and none of the Company, the Trustee or any
agent of the Company or the Trustee shall be affected by notice to the
contrary.

SECTION 309.       Cancellation.

 

All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person 

 

-24-

 

other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. 
The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee. 
No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this section, except as expressly permitted
by this Indenture.  The Trustee shall
destroy cancelled Securities and deliver a certificate of such destruction to
the Company.

SECTION 310.       Computation
of Interest.

 

Except as otherwise specified as contemplated by
Section 301 for the Securities of any series, interest on the Securities of
each series shall be computed on the basis of a year of 12 30-day months.

ARTICLE FOUR

 

SATISFACTION AND
DISCHARGE

 

SECTION 401.       Satisfaction
and Discharge of Indenture.

 

This Indenture shall upon Company Request cease to be
of further effect with respect to any series of Securities (except as to (i)
any surviving rights of registration of transfer or exchange of Securities
herein expressly provided for, (ii) rights hereunder of Holders to receive payments
of principal of, and premium, if any, and interest on, Securities, and other
rights, duties and obligations of the Holders as beneficiaries hereof with
respect to the amounts, if any, so deposited with the Trustee, (iii) remaining
obligations of the Company to make mandatory sinking fund payments and
(iv) the rights, obligations and immunities of the Trustee hereunder), and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to any
series of Securities, when

(1)  either

(A)  all Securities of such series theretofore
authenticated and delivered (other than (i) Securities of such series which
have been mutilated, destroyed, lost or stolen and which have been replaced or
paid as provided in Section 306 and (ii) Securities of such series for whose
payment money has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or

 

-25-

 

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

                    (i)         have become due and payable, or

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

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

and the Company,
in the case of (i), (ii) or (iii) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount in
cash 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) and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity or Redemption
Date, as the case may be;

(2)  if all series of Securities are being discharged,
the Company has paid or caused to be paid all other sums payable hereunder by
the Company; and

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

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 607,
and, if money shall have been deposited with the Trustee pursuant to subclause
(B) of clause (1) of this section, the obligations of the Trustee under Section
402 and the next to last paragraph of Section 1003, shall survive.

SECTION 402.       Application
of Trust Funds; Indemnification.

 

(a)  Subject to the provisions of the next to
last paragraph of Section 1003, all money deposited with the Trustee pursuant
to Section 401, all money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 403 or 404 and all money received by the Trustee in
respect of U.S. Government Obligations deposited with the Trustee pursuant to
Section 403 or 404 shall be held in trust and applied by it, in accordance with
the provisions of the 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, 

 

-26-

 

to the Persons entitled thereto, of the principal (and
premium, if any) and interest for whose payment such money has been deposited
with or received by the Trustee or to make mandatory sinking fund payments or
analogous payments as contemplated by Section 403 or 404, but such money need
not be segregated from other funds except to the extent required by law.

(b)  The Company shall pay and shall indemnify
the Trustee against any tax, fee or other charge imposed on or assessed against
U.S. Government Obligations deposited pursuant to Section 403 or 404, or the
interest and principal received in respect of such obligations other than any
payable by or on behalf of Holders.

(c)  The Trustee shall deliver or pay to the
Company from time to time upon Company Request any U.S. Government Obligations
or money held by it as provided in Section 403 or 404 which, in the opinion of
a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are then in excess of
the amount thereof which then would have been required to be deposited for the
purpose for which such obligations or money were deposited or received.

SECTION 403.       Defeasance
and Discharge of Indenture.

 

The Company shall be deemed to have paid and
discharged the entire indebtedness on all the Outstanding Securities on the
91st day after the date of the deposit referred to in subparagraph (1) of this
section, and the provisions of this Indenture, as it relates to such
Outstanding Securities, shall no longer be in effect (and the Trustee, at the
expense of the Company, shall at Company Request, execute proper instruments
acknowledging the same), except as to:

(a)  the rights
of Holders of Securities to receive, from the trust funds described in
subparagraph (1) hereof, (i) payment of the principal of (and premium, if any)
and each installment of principal of (and premium, if any) or interest on the
Outstanding Securities on the Stated Maturity of such principal or installment
of principal or interest and (ii) the benefit of any mandatory sinking fund
payments applicable to the Securities on the day on which such payments are due
and payable in accordance with the terms of this Indenture and the Securities;

(b)  the
Company’s obligations with respect to such Securities under Sections 305, 306,
1002 and 1003; and

(c)  the
obligations of the Company to the Trustee under Section 607,

provided that the following conditions shall have been satisfied:

 

-27-

 

(1)  the
Company has or caused to be irrevocably deposited (except as provided in
Section 402) with the Trustee as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the
Securities, (i) money in an amount, or (ii) U.S. Government Obligations which
through the payment of interest and principal in respect thereof in accordance
with their terms will provide not later than one day before the due date of any
payment referred to in clause (A) or (B) of this subparagraph money in an
amount, or (iii) a combination thereof, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge (A) the principal of (and premium, if any) and each installment
of principal of (and premium, if any) and interest on the Outstanding
Securities on the Stated Maturity of such principal or installment of principal
or interest or on the applicable Redemption Date and (B) any mandatory sinking
fund payments applicable to the Securities on the day on which such payments
are due and payable in accordance with the terms of this Indenture and of the
Securities;

(2)  such
deposit shall not cause the Trustee with respect to the Securities to have a
conflicting interest for purposes of the Trust Indenture Act with respect to
the Securities;

(3)  such
deposit will not result in a breach or violation of, or constitute a default
under, any applicable laws, this Indenture or any other agreement or instrument
to which the Company is a party or by which it is bound;

(4)  no Event
of Default or event which with notice or lapse of time would become an Event of
Default with respect to the Securities shall have occurred and be continuing on
the date of such deposit or during the period ending on the 91st day after such
date; and

(5)  if the
deposit referred to in subparagraph (1) of this section is to be made on or
prior to one year from the Stated Maturity for payment of principal of the
Outstanding Securities, the Company has delivered to the Trustee an Opinion of
Counsel with no material qualifications or a favorable ruling of the Internal
Revenue Service, in either case to the effect that Holders of the Securities
will not recognize income, gain or loss for federal income tax purposes as a
result of such deposit, defeasance and discharge and will be subject to federal
income tax on the same amount and in the same manner and at the same times, as
would have been the case if such deposit, defeasance and discharge had not occurred.

 

-28-

 

SECTION 404.       Defeasance
of Certain Obligations.

 

If this section is specified to be applicable to
Securities of any series, the Company may omit to comply with any term,
provision or condition set forth in the sections of this Indenture or such
Security with respect to the Securities of that series (“Covenant Defeasance”)
if:

(1)  with reference to this section, the Company
has deposited or caused to be irrevocably deposited with the Trustee as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of the Securities of that series, (i) money in an
amount, or (ii) U.S. Government Obligations which through the payment of
interest and principal in respect thereof in accordance with their terms will
provide not later than one day before the due date of any payment referred to
in clause (A) or (B) of this subparagraph 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 (A) the principal of (and premium,
if any) and each installment of principal (and premium, if any) and interest on
the Outstanding Securities of that series on the Stated Maturity of such
principal or installment of principal or interest and (B) any mandatory sinking
fund payments or analogous payments applicable to Securities of such series on
the day on which such payments are due and payable in accordance with the terms
of the Indenture and of such Securities;

(2)  such deposit shall not cause the Trustee
with respect to the Securities of that series to have a conflicting interest
for purposes of the Trust Indenture Act with respect to the Securities of any
series;

(3)  such deposit will 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;

(4)  if the deposit referred to in subparagraph
(1) of this section is to be made on or prior to one year from the Stated
Maturity for payment of principal of the Outstanding Securities, the Company
has delivered to the Trustee an Opinion of Counsel with no material
qualifications or a favorable ruling of the Internal Revenue Service, in either
case to the effect that Holders of the Securities will not recognize income,
gain or loss for federal income tax purposes as a result of such deposit and
defeasance of certain obligations and will be subject to federal income tax on
the same amount and in the same manner and at the same times, as would have
been the case if such deposit and defeasance had not occurred; and

 

-29-

 

(5)  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 defeasance
contemplated by this section have been complied with.

In the event the Company effects Covenant Defeasance
with respect to any Securities and such Securities are declared due and payable
because of the occurrence of any Event of Default, other than an Event of
Default with respect to any covenant as to which there has been Covenant
Defeasance, the U.S. Government Obligations on deposit with the Trustee will be
sufficient to pay amounts due on such Securities at the time of the Stated
Maturity but may not be sufficient to pay amounts due on such Securities at the
time of the acceleration resulting from such Event of Default.

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.       Events of
Default.

 

“Event of Default” (except as otherwise specified or
contemplated by Section 301 for Securities of any series) wherever used herein
with respect to Securities of any series, means any one of the following
events:

(1)  default in the payment of any interest upon
any Security of that series when it becomes due and payable, and continuance of
such default for a period of 60 days; or

(2)  default in the payment of the principal of
(or premium, if any, on) any Security of that series at its Maturity; or

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

(4)  default in the performance, or breach, of
any material covenant or warranty of the Company in this Indenture (other than
a covenant or warranty a default in whose performance or whose breach is elsewhere
in this section specifically dealt with or which has expressly been included in
this Indenture solely for the benefit of series of Securities other than that
series) for a period of 60 days after there has been given, and continuance of
such by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities a written notice specifying such default or breach
and re-

 

-30-

 

quiring it to be remedied
and stating that such notice is a “Notice of Default” hereunder; or

(5)  the entry by a court having jurisdiction in
the premises of (A) a decree or order for relief in respect of the Company in
an involuntary case or proceeding under any applicable bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or order adjudging the
Company a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company under any applicable law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company
or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of
60 consecutive days; or

(6)  the commencement by the Company of a
voluntary case or proceeding under any applicable bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Company in an involuntary case or
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable law, or the consent by it
to the filing of such petition or to the appointment of or taking possession by
a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of the Company or of any substantial part of its property, or the
making by it of an assignment for the benefit of creditors, or the admission by
it in writing of its inability to pay its debts generally as they become due
and its willingness to have a case commenced against it or to seek an order for
relief under any applicable bankruptcy, insolvency or other similar law or the
taking of corporate action by the Company in furtherance of any such action; or

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

SECTION 502.       Acceleration
of Maturity: Rescission and Annulment.

 

If an Event of Default (other than an Event of Default
resulting from bankruptcy, insolvency or reorganization) with respect to
Securities of any series at the time Outstanding occurs and is continuing, then
in every such case the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of that series may declare the principal
amount (or, if the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of that series) of all of the Securities of that series to be due and
payable immediately, by a notice in writing to the 

 

-31-

 

Company (and to the Trustee if given by Holders), and
upon any such declaration such principal amount (or specified amount) shall
become immediately due and payable.

In the case of an Event of Default resulting from
bankruptcy, insolvency or reorganization, which occurs and is continuing with
respect to Securities of any series at the time Outstanding, then all unpaid
principal of and accrued interest on all such Outstanding Securities of that series
shall become immediately due and payable without any notice or other action on
the part of the Trustee or the Holders of any Securities of such series.

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

(1)  the Company has paid or deposited with the
Trustee a sum sufficient to pay

(A)  all overdue interest on all Securities of
that series,

(B)  the principal of (and premium, if any, on)
any Securities of that series which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate or rates
prescribed therefor in such Securities,

(C)  to the extent that payment of such interest
is lawful, interest upon overdue interest at the rate or rates prescribed
therefor in such Securities, and

(D)  all sums paid or advanced by the Trustee and
any predecessor Trustee hereunder and all sums due the Trustee and any
predecessor Trustee under Section 607;

and

(2)  all Events of Default with respect to
Securities of that series, other than the non-payment of the principal of
Securities of that series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 513.

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

SECTION 503.       Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if

 

-32-

 

(1)  default is made in the payment of any
interest on any Security when such interest becomes due and payable and such
default continues for a period of 30 days, or

(2)  default is made in the payment of the
principal of (or premium, if any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities, the whole amount then
due and payable on such Securities for principal (and premium, if any) and
interest and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal (and premium, if any) and on any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including all amounts due the Trustee and
any predecessor Trustee under Section 607.

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

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

SECTION 504.       Trustee May
File Proofs of Claim.

 

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

 

-33-

 

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

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

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section
607.

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.

SECTION 505.       Trustee May
Enforce Claims Without Possession of Securities.

 

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

SECTION 506.       Application
of Money Collected.

 

Any money collected by the Trustee pursuant to this
article shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest, upon presentation of the Securities
and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

FIRST:  To the
payment of all amounts due the Trustee and each predecessor Trustee under
Section 607;

 

-34-

 

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

THIRD:  To the
Company.

SECTION 507.       Limitation
on Suits.

 

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

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

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

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

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

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

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

 

-35-

 

SECTION 508.       Unconditional
Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in this Indenture,
the Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of (and premium, if any) and
(subject to Section 307) interest on such Security on the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

SECTION 509.       Restoration
of Rights and Remedies.

 

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

SECTION 510.       Rights and
Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

SECTION 511.       Delay or
Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder
of any Securities to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or any acquiescence therein.  Every right and remedy given by this article or by law to the
Trustee or to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

-36-

 

SECTION 512.       Control by
Holders.

 

The Holders of a majority in principal amount of the
Outstanding Securities of any series (or if more than one series is affected
thereby, of all series so affected, voting as a single class) shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, with respect to the Securities of such series, provided
that

(1)  such direction shall not be in conflict with
any rule of law or with this Indenture, expose the Trustee to personal
liability or be unduly prejudicial to holders not joining therein, and

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

Nothing in this Indenture shall impair the right of
the Trustee to take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

SECTION 513.       Waiver of
Past Defaults.

 

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

(1)  in the payment of the principal of (or
premium, if any) or interest on any Security of such series, or

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

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

SECTION 514.       Undertaking
for Costs.

 

All parties to this Indenture agree, and each Holder
of any Security by his acceptance thereof shall be deemed to have agreed, that
any court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for
any action taken, suffered 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 

 

-37-

 

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 Company, to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the
aggregate more than 10% in principal amount of the Outstanding Securities of
any series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of (or premium, if any) or interest on any Securities
on or after the Stated Maturity or Maturities expressed in such Security (or,
in the case of redemption, on or after the Redemption Date).  This Section 514 shall be in lieu of Section
315(e) of the Trust Indenture Act and such Section 315(e) is hereby expressly
excluded from this Indenture, as permitted by the Trust Indenture Act.

SECTION 515.       Waiver of
Stay or Extension Laws.

 

The Company covenants (to the extent that it may lawfully
do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been
enacted.

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601.       Certain
Duties and Responsibilities.

 

(a)  Except during the continuance of an Event of
Default with respect to the Securities of any series,

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

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

 

-38-

 

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

(c)  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

(1)  this subsection shall not be construed to
limit the effect of subsection (a) of this section;

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

(3)  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 a majority in principal amount of the
Outstanding Securities of any series, determined as provided in Section 512,
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 with respect to the Securities of such series;
and

(4)  no provision of this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

(d)  Whether or not therein expressly so
provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be subject
to the provisions of this section.

 

-39-

 

SECTION 602.       Notice of
Defaults.

 

Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall
transmit by mail to all Holders of Securities of such series, as their names
and addresses appear in the Security Register, notice of such default hereunder
known to the Trustee, unless such default shall have been cured or waived; provided,
however, that, except in the case of a default in the payment of the
principal of (or premium, if any) or interest on any Security of such series or
in the payment of any sinking fund installment with respect to 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 interest of the Holders of
Securities of such series; and provided, further, that in the
case of any default of the character specified in Section 501(4) with respect
to Securities of such series, no such notice to Holders shall be given until at
least 30 days after the occurrence thereof. 
For the purpose of this section, the term “default” means any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to Securities of such series.

SECTION 603.       Certain
Rights of Trustee.

 

Subject to the provisions of Section 601:

(a)  the
Trustee may rely and shall be protected in acting or refraining from acting
upon any Board Resolution, resolution, Officers’ Certificate, certificate,
statement, instrument, Opinion of Counsel, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness 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 or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

(c)  whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an
Officers’ Certificate;

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

 

-40-

 

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

(f)  the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness 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; and

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

SECTION 604.       Not
Responsible for Recitals or Issuance of Securities.

 

The recitals contained herein and in the Securities,
except the Trustee’s certificates of authentication, shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for their
correctness.  The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities.  The Trustee shall not be
accountable for the use or application by the Company of Securities or the
proceeds thereof.

SECTION 605.       May Hold
Securities.

 

The Trustee, any Paying Agent, any Security Registrar
or any other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 608 and 612,
may otherwise deal with, and collect obligations owed to it by, the Company
with the same rights it would have if it were not Trustee, Paying Agent,
Security Registrar or such other agent.

SECTION 606.       Money Held
in Trust.

 

Money held by the Trustee in trust hereunder need not
be segregated from other funds except to the extent required by law.  The Trustee shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed with
the Company.

 

-41-

 

SECTION 607.       Compensation
and Reimbursement.

 

The Company agrees

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

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

(3)  to indemnify each of the Trustee and any
predecessor Trustee for, and to hold it harmless against, any loss, liability
or expense, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder and the performance of its
duties hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability
or expense is due to its own negligence or bad faith.

To ensure the performance of the obligations of the
Company under this section, the Trustee shall have a senior claim to which the
Securities are hereby made subordinate upon all property and funds held or
collected by the Trustee as such, except property and funds held in trust for
the payment of principal of, premium, if any, or interest on particular Securities.

SECTION 608.       Disqualification;
Conflicting Interests.

 

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

SECTION 609.       Corporate
Trustee Required; Eligibility.

 

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 of America,
any State thereof or the District of Columbia, authorized under such laws to
exercise corporate trust powers having (or, in the case of the subsidiary of a
bank holding company that guarantees the obligations of the Trustee under this
Indenture, such holding company’s parent shall have) a combined capital and
surplus of at least $50,000,000 subject to supervision or examination by 

 

-42-

 

Federal or State authority.  If such corporation or holding company parent publishes reports
of condition at least annually, pursuant to law or the requirements of said
supervising or examining authority, then for the purposes of this section, the
combined capital and surplus of such corporation or holding company parent
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. 
If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this section, it shall resign immediately in the manner and
with the effect hereinafter specified in this article.

SECTION 610.       Resignation
and Removal; Appointment of Successor.

 

(a)  No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.

(b)  The Trustee may resign at any time with
respect to the Securities of one or more series by giving written notice
thereof to the Company.  If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.  If
the acceptance of appointment is substantially contemporaneous with the
resignation, then the notice called for by the first sentence of this subsection
may be combined with the instrument called for by Section 611.

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

(d)  If at any time:

(1)  the Trustee shall fail to comply with Section 608
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

(2)  the Trustee shall cease to be eligible under
Section 609 and shall fail to resign after written request therefor by the
Company or by any such Holder, or

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

 

-43-

 

then, in any such case, (i) the Company by a Board
Resolution may remove the Trustee with respect to all Securities, or (ii)
subject to Section 514, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Securities and the appointment of a successor
Trustee or Trustees.

(e)  If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Trustee for
any cause, with respect to the Securities of one or more series, the Company,
by a Board Resolution, shall promptly appoint a successor Trustee or Trustees
with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities
of one or more or all of such series and that at any time there shall be only
one Trustee with respect to the Securities of any particular series) and shall
comply with the applicable requirements of Section 611.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor appointed by the Company.  If no successor Trustee with respect to the
Securities of any series shall have been so appointed by the Company or the
Holders and accepted appointment in the manner required by Section 611, any
Holder who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

(f)  The Company shall give notice of each resignation
and each removal of the Trustee with respect to the Securities of any series
and each appointment of a successor Trustee with respect to the Securities of
any series by mailing written notice of such event by first-class mail, postage
prepaid, to all Holders of Securities of such series as their names and
addresses appear in the Security Register. 
Each notice shall include the name of the successor Trustee with respect
to the Securities of such series and the address of its Corporate Trust Office.

SECTION 611.       Acceptance
of Appointment by Successor.

 

(a)  In case of the appointment hereunder of a successor
Trustee with respect to all Securities, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with 

 

-44-

 

all the rights, powers, trusts and duties of the
retiring Trustee; but, on the request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver
an instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee
hereunder.

(b)  In case of the appointment hereunder of a successor
Trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and each successor Trustee with respect to the
Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary
or desirable to transfer and confirm to, and to vest in, each successor Trustee
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates, (2) if the retiring Trustee is not retiring with respect
to all Securities, shall contain such provisions as shall be deemed necessary
or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.

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

(d)  No successor Trustee shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be qualified
and eligible under this article.

 

-45-

 

SECTION 612.       Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into which the Trustee may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee (including the administration of this Indenture),
shall be the successor of the Trustee hereunder, provided such corporation
shall be otherwise qualified and eligible under this article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto.  In case any Securities
shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

SECTION 613.       Preferential
Collection of Claims Against Company.

 

If and when the Trustee shall be or become a creditor
of the Company (or any other obligor upon the Securities), the Trustee shall be
subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Company (or any such other obligor).  A trustee who has resigned or been removed
shall be subject to the Trust Indenture Act Section 311(a) to the extent
provided therein.

 

ARTICLE SEVEN

 

HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY

 

SECTION 701.       Company to
Furnish Trustee Names and Addresses of Holders.

 

The Company will furnish or cause to be furnished to
the Trustee with respect to the Securities of each series

(a) 
semi-annually, not more than fifteen days after each Regular Record
Date, or, in the case of any series of Securities on which semi-annual interest
is not payable, not more than fifteen days after such semi-annual dates as may
be specified by the Trustee, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of such Regular Record
Date or such semi-annual date, as the case may be, and

 

-46-

 

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

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

SECTION 702.       Preservation
of Information; Communications to Holders.

 

(a)  The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained
in the most recent list furnished to the Trustee as provided in Section 701 and
the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar.  The Trustee may
destroy any list furnished to it as provided in Section 701 upon receipt of a
new list so furnished.

(b)  If three or more Holders (herein 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 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
with respect to their rights under this Indenture or under the Securities and
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

                    (i)        afford such applicants access to the
information preserved at the time by the Trustee in accordance with Section
702(a), or

                   (ii)        inform such applicants as to the
approximate number of Holders whose names and addresses appear in the
information preserved at the time by the Trustee in accordance with Section
702(a), and as to the approximate cost of mailing to such Holders the form of
proxy or other communication, if any, specified in such application.

If the
Trustee shall elect not to afford such applicants access to such information,
the Trustee shall, upon the written request of such applicants, mail to each
Holder whose name and address appear in the information preserved at the time
by the Trustee in accordance with Section 702(a) 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 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 interest of 

 

-47-

 

the Holders or would be in violation of applicable
law.  Such written statement shall
specify the basis of such opinion.  If
the 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, the Commission shall find, after notice and opportunity for
hearing, that all the objections so sustained have been met and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such
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)  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 either of them shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders in accordance with Section 702(b), regardless of
the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request
made under Section 702(b).

(d)  Subject to Sections 702(a), 702(b), 702(c)
and 601, if the Company or any other person (other than the Trustee) shall
desire to communicate with Holders of Securities to solicit or obtain from them
any proxy, consent, authorization, waiver, approval of a plan of
reorganization, arrangement or readjustment or other action (“Holder Action”),
the Trustee shall have no duty to participate in such communication or solicitation
or the processing of responses in any manner except (i) to furnish the rules
and regulations and to perform the functions referred to in Section 104 and
(ii) to receive (A) the instruments evidencing the Holder Action together with
(B) the Officers’ Certificate and Opinion of Counsel referred to below.  The Company hereby covenants that any and
all communications and solicitations distributed by it in connection with any
Holder Action will comply in all material respects with applicable law,
including without limitation applicable law concerning adequacy of disclosure.  The Trustee shall have no responsibility for
the accuracy or completeness of any materials circulated to solicit any Holder
Action nor for any related communications nor for the compliance thereof with
applicable law.  No Holder Action shall
become effective until the Trustee shall have received from the Company or
other person who solicited the Holder Action (1) the instruments evidencing
such Holder Action and (2) (x) (in the case of Holder Action solicited by the
Company or the representative of the Company’s estate if the Company is the
debtor in any bankruptcy or other insolvency proceeding) an Officers’
Certificate and (y) (in all cases) an Opinion of Counsel, each specifying the
Holder Action taken and stating that such Holder Action has been duly and
validly taken in compliance with this Indenture in all material respects.  Such Officers’ Certificate, if any, shall
also certify that (after giving effect to such Holder Action) no Event of
Default or event or condition which, with notice or lapse of time or both,
would become an Event of Default has occurred and is continuing or has not been
waived.

 

-48-

 

(e)  The Depositary may grant proxies and otherwise
authorize its participants which own the Global Securities to give or take any
Act which a Holder is entitled to take under this Indenture; provided, however,
that the Depositary has delivered a list of such participants to the Trustee.

SECTION 703.       Reports by
Trustee.

 

(a)  Within 60 days after [                   ] of each year commencing
with the first [                       ]
following the date of this Indenture, the Trustee shall transmit by mail to all
Holders, as their names and addresses appear in the Security Register, a brief report
dated as of such [                           ],
to the extent required by Section 313(a) of the Trust Indenture Act.

(b)  The Trustee shall comply with Sections
313(b) and 313(c) of the Trust Indenture Act.

(c)  A copy of each such report shall, at the
time of such transmission to Holders, be filed by the Trustee with the
Commission and with the Company.  The
Company will notify the Trustee when any Securities are listed on any stock
exchange.

SECTION 704.       Reports by
Company.

 

The Company shall:

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

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

 

-49-

 

ARTICLE EIGHT

 

SUCCESSOR CORPORATION

 

SECTION 801.       When Company
May Merge or Transfer Assets.

 

The Company shall not consolidate or amalgamate with
or merge with or into any other person (other than a Subsidiary) or convey,
transfer, sell or lease its properties and assets substantially as an entirety
to any person (other than a Subsidiary), permit any person (other than a Subsidiary)
to consolidate with or merge into the Company, or permit any person (other than
a Subsidiary) to convey, transfer, sell or lease that person’s properties and
assets substantially as an entirety to the Company, unless:

(1)  either (a) the Company shall be the
surviving person or (b) the person (if other than the Company) formed by such
consolidation or into which the Company is merged or the person which acquires
by conveyance, transfer or lease the properties and assets of the Company substantially
as an entirety shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form reasonably satisfactory to the
Trustee, all of the obligations of the Company under the Securities and this
Indenture;

(2)  immediately after giving effect to such
transaction, no Event of Default, and no event that, after notice or lapse of
time or both, would become an Event of Default, shall have occurred and be
continuing; and

(3)  the Company shall have delivered to the
Trustee an Officers’ Certificate stating that such consolidation, merger,
conveyance, transfer, sale or lease and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture,
comply with this Section 801 and that all conditions precedent herein provided
for relating to such transaction have been satisfied.

The successor person formed by such consolidation or
into which the Company is merged or the successor person to which such
conveyance, transfer, sale or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor had been named as the
Company herein; and thereafter, the Company shall be discharged from all obligations
and covenants under this Indenture and the Securities.  Subject to Section 903, the Company, the
Trustee and the successor person shall enter into a supplemental indenture to
evidence the succession and substitution of such successor person and such
discharge and release of the Company.

 

-50-

 

ARTICLE NINE

 

AMENDMENTS &
SUPPLEMENTAL INDENTURES

 

SECTION 901.       Amendments
or Supplemental Indentures without Consent of Holders.

 

The Company, when authorized by a Board
Resolution,  and the Trustee, at any
time and from time to time, may amend or supplement this Indenture or the
Securities without the consent of any Holder, so long as such changes, other
than those in clause (2), do not materially and adversely affect the interests
of the Holder:

(1)           to cure any ambiguity, omission,
defect or inconsistency;

(2)           to make any modifications or
amendments that do not, in the good faith opinion of the Company’s Board of
Directors and the Trustee, adversely affect the interests of the Holders in any
material respect;

(3)           to provide for the assumption of the
Company’s obligations under this Indenture by a successor upon any merger,
consolidation or asset transfer as permitted by and in compliance with Article
Eight of this Indenture;

(4)           to provide any security for or
guarantees of the Securities;

(5)           to add Events of Default with respect
to the Securities; or

(6)           to add to the Company’s covenants for
the benefit of the Holders or to surrender any right or power conferred upon
the Company by this Indenture;

(7)           to make any change necessary for the
registration of the Securities under the Securities Act or to comply with the
TIA, or any amendment thereto, or to comply with any requirement of the SEC in
connection with the qualification of the Indenture under the TIA, provided that
such modification or amendment does not, in the good faith opinion of the
Company’s Board of Directors and the Trustee, adversely affect the interests of
the Holders of the Securities in any material respect; or

(8)           to provide for uncertificated
Securities in addition to or in place of certificated Securities or to provide
for bearer Securities; or

(9)           to add to or change any of the
provisions of this Indenture to such extent as shall be necessary to permit or
facilitate the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons; or

 

-51-

 

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

(11)         to establish the form or terms of
Securities of any series as permitted by Sections 201 and 301; or

(12)         to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee with respect to the
Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 611(b).

SECTION 902.       Amendments
or Supplemental Indentures with Consent of Holders.

 

With the written consent of the Holders of not less
than a majority in aggregate principal amount of the Securities at the time
Outstanding, the Company, when authorized by a Board Resolution, and the
Trustee, at any time and from time to time, may amend or supplement this
Indenture or the Securities.  However,
without the consent of each Holder affected, an amendment to this Indenture or
the Securities may not:

(1)           change the Stated Maturity of the
principal of or any installment of interest with respect to the Securities;

(2)           reduce the principal amount of, or
the rate of interest on, the Securities;

(3)           change the currency of payment of
principal of or interest on the Securities;

(4)           impair the right to institute suit
for the enforcement of any payment on or with respect to the Securities;

(5)           reduce the above-stated percentage of
Holders of the Securities of any series necessary to modify or amend this
Indenture;

(6)           modify the foregoing requirements or
reduce the percentage of Outstanding Securities necessary to waive any covenant
or past default; and

(7)           if the Securities are convertible,
adversely affect the right to convert the Securities into Common Shares in
accordance with the provisions of this Indenture.

 

-52-

 

It shall not be necessary for any Act of the Holders
under this Section 902 to approve the particular form of any proposed amendment
or supplemental indenture, but it shall be sufficient if such Act approves the
substance thereof.

After an amendment or supplemental indenture under
this Section 902 becomes effective, the Company shall mail to each Holder a
notice briefly describing the amendment or supplemental indenture.

An amendment or 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.

SECTION 903.       Execution of
Supplemental Indentures.

 

The Trustee shall sign any supplemental indenture
authorized pursuant to this article if the amendment contained therein does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may,
but need not, sign such supplemental indenture.  In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying upon,
an Officers’ Certificate and an Opinion of Counsel stating that the execution
of such supplemental indenture is authorized or permitted by this Indenture.

SECTION 904.       Effect of
Supplemental Indentures.

 

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

SECTION 905.       Conformity
with Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this
article shall conform to the requirements of the Trust Indenture Act as then in
effect.

SECTION 906.       Reference in
Securities to Supplemental Indentures.

 

Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to this article may,
and shall if required by the Trustee, bear a 

 

-53-

 

notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture.  If the Company shall so determine, new Securities of any series
so modified as to conform, in the opinion of the Trustee and the Company, to
any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding
Securities of such series.

ARTICLE TEN

 

COVENANTS

 

SECTION 1001.     Payment of
Principal, Premium and Interest.

 

The Company covenants and agrees for the benefit of
each series of Securities that it will duly and punctually pay the principal of
(and premium, if any) and interest on the Securities of that series in
accordance with the terms of the Securities and this Indenture.  At the option of the Company, payment of
principal (and premium, if any) and interest may be made by wire transfer or
(subject to collection) by check mailed to the address of the Person entitled
thereto at such address as shall appear in the Security Register.

SECTION 1002.     Maintenance
of Office or Agency.

 

The Company will maintain in each Place of Payment for
any series of Securities an office or agency where Securities of that series
may be presented or surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Securities
of that series and this Indenture may be served.  The Company hereby initially appoints the Trustee its office or
agency for each of said purposes.  The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

The Company may also from time to time designate one
or more other offices or agencies where the Securities of one or more series
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its obligation
to maintain an office or agency in each Place of Payment for Securities of any
series for such purposes.  The Company
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.

 

-54-

 

SECTION 1003.     Money for
Securities; Payments to Be Held in Trust.

 

If the Company shall at any time act as its own Paying
Agent with respect to any series of Securities, it will, on or before each due
date of the principal of (and premium, if any) or interest on any of the
Securities of that series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal (and premium, if
any) or interest so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify the
Trustee of its action or failure so to act.

Whenever the Company shall have one or more Paying
Agents for any series of Securities, it will, on or prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with a Paying Agent a sum sufficient to pay the principal (and
premium, if any) or interest 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.

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

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

(2)  give the Trustee notice of any default by
the Company (or any other obligor upon the Securities of that series) in the
making of any payment of principal (and premium, if any) or interest on the
Securities of that series; and

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

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

 

-55-

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal
of (and premium, if any) or interest on any Security of any series and
remaining unclaimed for two years after such principal (and premium, if any) or
interest has become due and payable shall be paid to the Company on Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look, only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to
make any such repayment, may at the expense of the Company cause to be mailed
or published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in the
City, County and State of New York, or both, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such mailing or publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

The Company shall have no obligation to make payment
of principal of (or premium, if any) or interest on any Security in immediately
available funds, except that if the Company shall have received original
payment for Securities in immediately available funds it shall make available
immediately available funds for payment of the principal of such Securities.

SECTION 1004.     Corporate
Existence.

 

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

SECTION 1005.     Maintenance
of Properties.

 

The Company will use its reasonable efforts to cause
all material properties used or useful in the conduct of its business to be
maintained and kept in good condition, repair and working order (subject to
wear and tear) and supplied with all necessary material equipment and will use
its reasonable efforts to cause to be made all necessary material repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this section shall prevent the Company from
discontinuing the operation or maintenance of any of 

 

-56-

 

such properties if such discontinuance is, in the
judgment of the Company, desirable in the conduct of its business and not
disadvantageous in any material respect to the Holders.

SECTION 1006.     Statement by
Officers as to Default.

 

The Company will deliver to the Trustee, within 120
days after the end of each fiscal year of the Company ending after the date
hereof, a certificate of the principal executive officer, principal financial
officer or principal accounting officer of the Company stating whether or not
to the best knowledge of the signers thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions of
this Indenture, and if the Company shall be in default, specifying all such
defaults and the nature and status thereof of which they may have knowledge.

SECTION 1007.     Waiver of
Certain Covenants.

 

The Company may omit in any particular instance to
comply with any term, provision or condition set forth in Section 1006 if
before or after the time for such compliance the Holders of at least a majority
in principal amount of the Outstanding Securities (taken together as one class)
shall, by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 1101.     Applicability
of Article.

 

Securities of any series which are redeemable before
their Stated Maturity shall be redeemable in accordance with their terms and
(except as otherwise specified as contemplated by Section 301 for Securities of
any series) in accordance with this article.

SECTION 1102.     Election to
Redeem; Notice to Trustee.

 

The election of the Company to redeem any Securities
shall be evidenced by a Board Resolution. 
In case of any redemption at the election of the Company of less than
all the Securities of any series, the Company shall, at least 45 days prior to
the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities of such series to 

 

-57-

 

be redeemed, such notice to be accompanied by a
written statement signed by an authorized officer of the Company stating that
no defaults in the payment of interest or Events of Default with respect to the
Securities of that series have occurred (which have not been waived or
cured).  In the case of any redemption
of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee an Officers’ Certificate evidencing
compliance with such restriction.

SECTION 1103.     Selection by
Trustee of Securities to Be Redeemed.

 

If less than all the Securities of any series are to
be redeemed, the particular Securities to be redeemed shall be selected not
more than 60 days prior to the Redemption Date by the Trustee, from the
Outstanding Securities of such series not previously called for redemption, by
such method as the Trustee in its sole discretion shall deem fair and
appropriate and which may provide for the selection or redemption of portions
(equal to the minimum authorized denomination for Securities of that series or
any integral multiple thereof) of the principal amount of Securities of such
series of a denomination larger than the minimum authorized denomination for
Securities of that series.

The Trustee shall promptly notify the Company in
writing of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.

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

SECTION 1104.     Notice of
Redemption.

 

Notice of redemption shall be given by first-class
mail, postage prepaid, mailed not less than 45 nor more than 60 days prior to
the Redemption Date, to each Holder of Securities to be redeemed, at his
address appearing in the Security Register. 
Any notice which is mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not such Holder
receives the notice.  Failure to give
notice by mail, or any defect in the notice to any such Holder in respect of
any Security, shall not affect the validity of the proceedings for the
redemption of any other Security.

All notices of redemption shall state:

(1)  the Redemption Date,

 

-58-

 

(2)  the Redemption Price and any accrued interest,

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

(4)  that on the Redemption Date the Redemption
Price and any accrued interest will become due and payable upon each such
Security to be redeemed together with accrued interest thereon and, if
applicable, that interest thereon will cease to accrue on and after said date,

(5)  the place or places where such Securities
are to be surrendered for payment of the Redemption Price and any accrued
interest,

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

(7)  the CUSIP number and, if applicable, the
ISIN number, of the Securities being redeemed.

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

SECTION 1105.     Deposit of
Redemption Price.

 

On or prior to any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section
1003) an amount of money, in funds immediately available on the due date,
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.

SECTION 1106.     Securities
Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid,
the Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified together with accrued
interest thereon, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. 
Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest to the Redemption Date; provided,
however, that installments of interest whose Stated Maturity is on the
Redemption Date shall be payable to the 

 

-59-

 

Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

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

The Trustee shall not redeem any Securities of any
series pursuant to this article (unless all Outstanding Securities of such
series are to be redeemed) or mail or give any notice of redemption of
Securities during the continuance of an Event of Default hereunder known to the
Trustee with respect to such series, except that, where the mailing of notice
of redemption of any Securities shall theretofore have been made, the Trustee
shall redeem or cause to be redeemed such Securities, provided that it shall
have received from the Company a sum sufficient for such redemption.  Except as aforesaid, any moneys theretofore
or thereafter received by the Trustee shall, during the continuance of such
Event of Default, be deemed to have been collected under Article Five and held
for the payment of all such Securities of such series.  In case such Event of Default shall have been
waived as provided in Section 513 or the default cured on or before the
sixtieth day preceding the Redemption Date, such moneys shall thereafter be
applied in accordance with the provisions of this article.

SECTION 1107.     Securities
Redeemed in Part.

 

Any Security which is to be redeemed only in part
shall be surrendered at a Place of Payment therefor (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or his attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Security without service charge, a new Security or Securities of the same
series, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Security so surrendered.

 

-60-

 

ARTICLE TWELVE

 

SINKING FUNDS

 

SECTION 1201.     Applicability
of Article.

 

The provisions of this article shall be applicable to
any sinking fund for the retirement of Securities of a series except as
otherwise specified as contemplated by Section 301 for Securities of such
series.

The minimum amount of any sinking fund payment provided
for by the terms of Securities of any series is herein referred to as a
“mandatory sinking fund payment,” and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein referred
to as an “optional sinking fund payment.” 
If provided for by the terms of Securities of any series, the cash
amount of any sinking fund payment may be subject to reduction as provided in
Section 1202.  Each sinking fund
payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

SECTION 1202.     Satisfaction
of Sinking Fund Payments with Securities.

 

The Company (1) may deliver Outstanding Securities of
a series (other than any previously called for redemption) and (2) may apply as
credit Securities of a series which have been redeemed either at the election
of the Company pursuant to the terms of such Securities or through the application
of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series; provided that such Securities have not been previously so credited.  Such Securities shall be received and
credited for such purpose by the Trustee at the Redemption Price specified in
such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.

SECTION 1203.     Redemption of
Securities for Sinking Fund.

 

Not less than 60 days prior to each sinking fund payment
date for any series of Securities, the Company (1) will deliver to the Trustee
an Officers’ Certificate (A) stating that no defaults in the payment of
interest or Events of Default with respect to Securities of that series have
occurred (which have not been waived or cured), (B) specifying the amount of
the next ensuing sinking fund payment for that series pursuant to the terms of
Securities of that series, (C) stating whether or not the Company intends to
exercise its right, if any, to make an optional sinking fund payment with
respect to such series on the next ensuing sinking fund 

 

-61-

 

payment date and, if so, specifying the amount of such
optional sinking fund payment and (D) specifying the portion of such sinking
fund payment, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting
Securities of that series pursuant to Section 1202 and (2) will also
deliver to the Trustee any Securities to be so delivered.  Not less than 30 days before each such
sinking fund payment date the Trustee shall select the Securities of such
series to be redeemed upon such sinking fund payment date in the manner specified
in Section 1103 and cause notice of the redemption thereof to be given in the
name of and at the expense of the Company in the manner provided in Section
1104.  Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in
the manner stated in Sections 1105, 1106 and 1107.  Failure of the Company, on or before any such 60th day, to
deliver such Officers’ Certificate and Securities specified in this section, if
any, shall not constitute a default but shall constitute, on and as of such
date, the irrevocable election of the Company (a) that the mandatory
sinking fund payment for such series due on the next succeeding sinking fund
payment date shall be paid entirely in cash without the option to deliver or
credit Securities of such series in respect thereof and (b) that the
Company will make no optional sinking fund payment with respect to Securities
of such series as provided in this article.

The Trustee shall not redeem or cause to be redeemed
any Security of a series with sinking fund moneys or mail any notice of
redemption of Securities of such series by operation of the sinking fund during
the continuance of a default in payment of interest on such Securities or of
any Event of Default with respect to such series except that, where the mailing
of notice of redemption of any Securities shall therefore have been made, the
Trustee shall redeem or cause to be redeemed such Securities, provided that it
shall have received from the Company a sum sufficient for such redemption.  Except as aforesaid, any moneys in the sinking
fund for such series at the time when any such default or Event of Default
shall occur, and any moneys thereafter paid into the sinking fund, shall,
during the continuance of such default or Event of Default, be deemed to have
been collected under Article Five and held for the payment of all such
Securities of such series.  In case such
Event of Default shall have been waived as provided in Section 513 or the
default cured on or before the 60th day preceding the sinking fund payment date,
such moneys shall thereafter be applied on the next succeeding sinking fund
payment date in accordance with this section to the redemption of such Securities.

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

 

-62-

 

IN WITNESS WHEREOF, ARCH CAPITAL GROUP LTD. has caused
this Indenture to be duly executed as a deed the day and year first before
written.

	
  ARCH CAPITAL
  GROUP LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	 
	
  Name:

  
	 
	
  Title:

  
			

 

 

IN WITNESS WHEREOF, the undersigned, being duly
authorized, has executed this Indenture as of the date first above written.

	
  [NAME OF
  TRUSTEE]

  
	
   

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit
4.4

 

 

 

ARCH CAPITAL GROUP LTD.

 

to

[NAME OF TRUSTEE],

Trustee

INDENTURE

 

Dated as of
        , 200_

Subordinated Debt
Securities

 

 

 

 

Reconciliation and tie between Trust Indenture Act of
1939 and Indenture, dated as of        
,     . 

	
  Trust Indenture 

  Act Section

  	
   

  	
  Indenture
  Section

  	
   

  
	
  § 310(a)

  	
  609

  	
   

  
	
   

  	
  (b)

  	
  608, 610

  	
   

  
	
   

  	
  (c)

  	
  Not Applicable

  	
   

  
	
  § 311(a)

  	
  613

  	
   

  
	
   

  	
  (b)

  	
  613

  	
   

  
	
   

  	
  (c)

  	
  Not Applicable

  	
   

  
	
  § 312(a)

  	
  701, 702(a)

  	
   

  
	
   

  	
  (b)

  	
  702(b)

  	
   

  
	
   

  	
  (c)

  	
  702(c)

  	
   

  
	
  § 313(a)

  	
  703(a)

  	
   

  
	
   

  	
  (b)

  	
  703(b)

  	
   

  
	
   

  	
  (c)

  	
  703(b)

  	
   

  
	
   

  	
  (d)

  	
  703(c)

  	
   

  
	
  § 314(a)

  	
  704

  	
   

  
	
   

  	
  (b)

  	
  Not Applicable

  	
   

  
	
   

  	
  (c)

  	
  102

  	
   

  
	
   

  	
  (d)

  	
  Not Applicable

  	
   

  
	
   

  	
  (e)

  	
  102

  	
   

  
	
   

  	
  (f)

  	
  Not Applicable

  	
   

  
	
  § 315(a)

  	
  601

  	
   

  
	
   

  	
  (b)

  	
  602, 703(b)

  	
   

  
	
   

  	
  (c)

  	
  601(b)

  	
   

  
	
   

  	
  (d)

  	
  601(c)

  	
   

  
	
   

  	
  (e)

  	
  514

  	
   

  
	
  § 316(a)(1)

  	
  512, 513

  	
   

  
	
   

  	
  (b)

  	
  508

  	
   

  
	
   

  	
  (c)

  	
  104(d)

  	
   

  
	
  § 317(a)(1)

  	
  503

  	
   

  
	
   

  	
  (a)(2)

  	
  504

  	
   

  
	
   

  	
  (b)

  	
  1003

  	
   

  
	
  § 318(a)

  	
  107

  	
   

  
					

 

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

 

 

TABLE OF CONTENTS

	
   

  	
   

  	
  Page

  

 

	
  ARTICLE ONE

  
	
   

  
	
  DEFINITIONS AND
  OTHER PROVISIONS

  
	
  OF GENERAL
  APPLICATION

  
	
   

  
	
  SECTION 101.

  	
  Definitions.

  	
  1

  
	
  SECTION 102.

  	
  Compliance
  Certificates and Opinions.

  	
  7

  
	
  SECTION 103.

  	
  Form of
  Documents Delivered to Trustee.

  	
  8

  
	
  SECTION 104.

  	
  Acts of Holders.

  	
  9

  
	
  SECTION 105.

  	
  Notices, Etc.,
  to Trustee and Company.

  	
  10

  
	
  SECTION 106.

  	
  Notice to Holders;
  Waiver.

  	
  10

  
	
  SECTION 107.

  	
  Conflict with
  Trust Indenture Act.

  	
  10

  
	
  SECTION 108.

  	
  Effect of
  Headings and Table of Contents.

  	
  11

  
	
  SECTION 109.

  	
  Successors and
  Assigns.

  	
  11

  
	
  SECTION 110.

  	
  Separability
  Clause.

  	
  11

  
	
  SECTION 111.

  	
  Benefits of
  Indenture.

  	
  11

  
	
  SECTION 112.

  	
  Governing Law.

  	
  11

  
	
  SECTION 113.

  	
  Legal Holidays.

  	
  11

  
	
  SECTION 114.

  	
  References to
  Currency.

  	
  11

  
	
  SECTION 115.

  	
  Agent for
  Service; Submission to Jurisdiction; Waiver of Immunities.

  	
  12

  
	
  SECTION 116.

  	
  Judgment
  Currency.

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  	
   

  
	
  SECURITY FORMS

  
	
   

  	
   

  	
   

  
	
  SECTION 201.

  	
  Forms Generally.

  	
  13

  
	
  SECTION 202.

  	
  Form of Trustee’s Certificate of Authentication.

  	
  13

  
	
  SECTION 203.

  	
  Securities Issuable in the Form of a Global Security.

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  	
   

  	
   

  
	
  THE SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 301.

  	
  Amount
  Unlimited; Issuable in Series.

  	
  16

  
	
  SECTION 302.

  	
  Denominations.

  	
  18

  
	
  SECTION 303.

  	
  Execution,
  Authentication, Delivery and Dating.

  	
  18

  
				

 

-i-

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 304.

  	
  Temporary
  Securities.

  	
  20

  
	
  SECTION 305.

  	
  Registration,
  Registration of Transfer and Exchange.

  	
  20

  
	
  SECTION 306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities.

  	
  21

  
	
  SECTION 307.

  	
  Payment of
  Interest; Interest Rights Preserved.

  	
  22

  
	
  SECTION 308.

  	
  Persons Deemed
  Owners.

  	
  23

  
	
  SECTION 309.

  	
  Cancellation.

  	
  23

  
	
  SECTION 310.

  	
  Computation of
  Interest.

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND
  DISCHARGE

  
	
   

  	
   

  	
   

  
	
  SECTION 401.

  	
  Satisfaction and Discharge of Indenture.

  	
  24

  
	
  SECTION 402.

  	
  Application of Trust Funds; Indemnification.

  	
  25

  
	
  SECTION 403.

  	
  Defeasance and Discharge of Indenture.

  	
  26

  
	
  SECTION 404.

  	
  Defeasance of Certain Obligations.

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  
	
   

  	
   

  	
   

  
	
  REMEDIES

  
	
   

  	
   

  	
   

  
	
  SECTION 501.

  	
  Events of Default.

  	
  29

  
	
  SECTION 502.

  	
  Acceleration of Maturity: Rescission and Annulment.

  	
  30

  
	
  SECTION 503.

  	
  Collection of Indebtedness and Suits for Enforcement by Trustee.

  	
  31

  
	
  SECTION 504.

  	
  Trustee May File Proofs of Claim.

  	
  32

  
	
  SECTION 505.

  	
  Trustee May Enforce Claims Without Possession of Securities.

  	
  32

  
	
  SECTION 506.

  	
  Application of Money Collected.

  	
  33

  
	
  SECTION 507.

  	
  Limitation on Suits.

  	
  33

  
	
  SECTION 508.

  	
  Unconditional Right of Holders to Receive Principal, Premium and
  Interest.

  	
  34

  
	
  SECTION 509.

  	
  Restoration of Rights and Remedies.

  	
  34

  
	
  SECTION 510.

  	
  Rights and Remedies Cumulative.

  	
  34

  
	
  SECTION 511.

  	
  Delay or Omission Not Waiver.

  	
  34

  
	
  SECTION 512.

  	
  Control by Holders.

  	
  35

  
	
  SECTION 513.

  	
  Waiver of Past Defaults.

  	
  35

  
	
  SECTION 514.

  	
  Undertaking for Costs.

  	
  35

  
	
  SECTION 515.

  	
  Waiver of Stay or Extension Laws.

  	
  36

  
				

 

-ii-

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE SIX

  
	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  SECTION 601.

  	
  Certain Duties
  and Responsibilities.

  	
  36

  
	
  SECTION 602.

  	
  Notice of
  Defaults.

  	
  37

  
	
  SECTION 603.

  	
  Certain Rights
  of Trustee.

  	
  38

  
	
  SECTION 604.

  	
  Not Responsible
  for Recitals or Issuance of Securities.

  	
  39

  
	
  SECTION 605.

  	
  May Hold
  Securities.

  	
  39

  
	
  SECTION 606.

  	
  Money Held in
  Trust.

  	
  39

  
	
  SECTION 607.

  	
  Compensation and
  Reimbursement.

  	
  39

  
	
  SECTION 608.

  	
  Disqualification;
  Conflicting Interests.

  	
  40

  
	
  SECTION 609.

  	
  Corporate
  Trustee Required; Eligibility.

  	
  40

  
	
  SECTION 610.

  	
  Resignation and
  Removal; Appointment of Successor.

  	
  40

  
	
  SECTION 611.

  	
  Acceptance of
  Appointment by Successor.

  	
  42

  
	
  SECTION 612.

  	
  Merger,
  Conversion, Consolidation or Succession to Business.

  	
  43

  
	
  SECTION 613.

  	
  Preferential
  Collection of Claims Against Company.

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  
	
  HOLDERS’ LISTS
  AND REPORTS BY TRUSTEE AND COMPANY

  
	
   

  	
   

  	
   

  
	
  SECTION 701.

  	
  Company to
  Furnish Trustee Names and Addresses of Holders.

  	
  44

  
	
  SECTION 702.

  	
  Preservation of
  Information; Communications to Holders.

  	
  44

  
	
  SECTION 703.

  	
  Reports by
  Trustee.

  	
  46

  
	
  SECTION 704.

  	
  Reports by
  Company.

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  
	
  SUCCESSOR
  CORPORATION

  
	
   

  	
   

  	
   

  
	
  SECTION 801.

  	
  When Company May
  Merge or Transfer Assets.

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  
	
  AMENDMENTS &
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  
	
  SECTION 901.

  	
  Amendments or Supplemental Indentures without Consent of Holders.

  	
  48

  
				

 

-iii-

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 902.

  	
  Amendments or Supplemental Indentures with Consent of Holders.

  	
  49

  
	
  SECTION 903.

  	
  Execution of Supplemental Indentures.

  	
  50

  
	
  SECTION 904.

  	
  Effect of Supplemental Indentures.

  	
  50

  
	
  SECTION 905.

  	
  Conformity with Trust Indenture Act.

  	
  50

  
	
  SECTION 906.

  	
  Reference in Securities to Supplemental Indentures.

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  SECTION 1001.

  	
  Payment of
  Principal, Premium and Interest.

  	
  51

  
	
  SECTION 1002.

  	
  Maintenance of
  Office or Agency.

  	
  51

  
	
  SECTION 1003.

  	
  Money for
  Securities; Payments to Be Held in Trust.

  	
  51

  
	
  SECTION 1004.

  	
  Corporate
  Existence.

  	
  53

  
	
  SECTION 1005.

  	
  Maintenance of
  Properties.

  	
  53

  
	
  SECTION 1006.

  	
  Statement by
  Officers as to Default.

  	
  53

  
	
  SECTION 1007.

  	
  Waiver of
  Certain Covenants.

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  	
   

  	
   

  
	
  REDEMPTION OF
  SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 1101.

  	
  Applicability of
  Article.

  	
  54

  
	
  SECTION 1102.

  	
  Election to
  Redeem; Notice to Trustee.

  	
  54

  
	
  SECTION 1103.

  	
  Selection by
  Trustee of Securities to Be Redeemed.

  	
  54

  
	
  SECTION 1104.

  	
  Notice of
  Redemption.

  	
  55

  
	
  SECTION 1105.

  	
  Deposit of
  Redemption Price.

  	
  56

  
	
  SECTION 1106.

  	
  Securities
  Payable on Redemption Date.

  	
  56

  
	
  SECTION 1107.

  	
  Securities
  Redeemed in Part.

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  	
   

  	
   

  
	
  SINKING FUNDS

  
	
   

  	
   

  	
   

  
	
  SECTION 1201.

  	
  Applicability of Article.

  	
  57

  
	
  SECTION 1202.

  	
  Satisfaction of Sinking Fund Payments with Securities.

  	
  57

  
	
  SECTION 1203.

  	
  Redemption of Securities for Sinking Fund.

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  
	
   

  	
   

  	
   

  
	
  SUBORDINATION

  
	
   

  	
   

  	
   

  
	
  SECTION 1301.

  	
  Agreement to Subordinate.

  	
  59

  
				

 

-iv-

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1302.

  	
  Default on Senior Indebtedness.

  	
  59

  
	
  SECTION 1303.

  	
  Liquidation; Dissolution; Bankruptcy.

  	
  60

  
	
  SECTION 1304.

  	
  Subrogation.

  	
  62

  
	
  SECTION 1305.

  	
  Trustee to Effectuate Subordination.

  	
  62

  
	
  SECTION 1306.

  	
  Notice by the Company.

  	
  63

  
	
  SECTION 1307.

  	
  Rights of the Trustee; Holders of Senior Indebtedness.

  	
  63

  
	
  SECTION 1308.

  	
  Subordination May Not Be Impaired.

  	
  64

  
	
  SECTION 1309.

  	
  Article Applicable to Paying Agents.

  	
  64

  
	
  SECTION 1310.

  	
  Defeasance of This Article.

  	
  65

  
	
  SECTION 1311.

  	
  Subordination Language to Be Included in Securities.

  	
  65

  

 

-v-

 

INDENTURE, dated as of        , 200_, between Arch Capital Group Ltd., a Bermuda company
(herein called the “Company” or the “Issuer”), having its principal office at
20 Horseneck Lane, Greenwich, CT 20380, and [Name of Trustee], a
[             ],
as trustee hereunder (herein called the “Trustee”).

RECITALS OF THE COMPANY

The Company has duly authorized the execution and delivery
of this Indenture to provide for the issuance from time to time of its
unsecured debentures, notes or other evidences of indebtedness (herein called
the “Securities”), to be issued in one or more series as in this Indenture
provided.

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

 

DEFINITIONS AND OTHER
PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101.       Definitions.

 

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

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

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

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

 

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

(5)  all references used herein to the male gender
shall include the female gender.

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

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

“Board of Directors” means either the board of directors
of the Company or any duly authorized committee of that board duly authorized
to act hereunder.

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

“Business Day” means, with respect to any Securities,
a day that in the City of New York, in the City of Boston, Massachusetts or in
any Place of Payment is not a day on which banking institutions are authorized
by law or regulation to close.

“Capital Stock” for any entity means any and all
shares, interests, rights to purchase, warrants, options, participations or
other equivalents of or interests in (however designated) shares issued by that
entity.

“Certificated Securities” means Securities that are in
registered definitive form.

“Commission” means the Securities and Exchange Commission,
as from time to time constituted, created under the Securities Exchange Act of
1934, or, if at any time after the execution of this instrument such Commission
is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties at such time.

“Common Shares” means the common shares, $0.01 par
value per share, of the Company existing on the date of this Indenture or any
other shares of Capital Stock of the Company into which such common shares
shall be reclassified or changed.

“Company” means 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.

 

-2-

 

“Company Request” or “Company Order” means a written
request or order signed in the name of the Company by its chairman of the
board, a vice chairman, its president or a vice president, and by its
treasurer, an assistant treasurer, its secretary or an assistant secretary, and
delivered to the Trustee.

“Corporate Trust Office” means the office of the Trustee
at which at any particular time the trust created by this Indenture shall be
administered, which office, at the time of the execution of this Indenture, is
located at [               ],
Attn:
[               ].

“Default Notice” has the meaning specified in Section 13.02(b).

“Defaulted Interest” has the meaning specified in Section
307.

“Depositary” means, unless otherwise specified by the
Company pursuant to either Section 203 or 301, with respect to Securities of
any series issuable or issued as a Global Security, The Depository Trust
Company, New York, New York, or any successor thereto registered under the
Securities Exchange Act of 1934, as amended, or other applicable statute or
regulation.

“Event of Default” has the meaning specified in
Section 501.

“Global Security” means a Security issued to evidence
all or a part of any series of Securities which is executed by the Company and
authenticated and delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction, all in accordance with this Indenture and pursuant to
a Company Order, which shall be registered in the name of the Depositary or its
nominee.

“Holder” means a Person in whose name a Security is
registered in the Security Register.

“Holder Action” has the meaning specified in Section
702(d).

“Indenture” means this instrument as originally executed
or as it may from time to time be supplemented or amended by one or more
amendments or indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of particular series
of Securities established as contemplated by Section 301.

“Interest,” when used with respect to an Original
Issue Discount Security which by its terms bears interest only after Maturity,
means interest payable after Maturity.

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

“Issuer” means the Person named as the “Issuer” 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 “Issuer” shall mean such successor corporation.

 

-3-

 

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

“Officers’ Certificate” means a certificate signed by
the chairman of the board, the president or a vice president, and by the
treasurer, an assistant treasurer, the secretary or an assistant secretary, of
the Company, and delivered to the Trustee.

“Opinion of Counsel” means written opinion of counsel,
who may be counsel for the Company and who shall be acceptable to the Trustee.

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

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

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

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

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

provided, however, that in determining whether the
Holders of the requisite principal amount of the Outstanding Securities have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Securities owned by the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor shall be disregarded
and deemed not to be Outstanding, except that, in determining whether the
Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities which the
Trustee knows to be so owned shall be so disregarded.  Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such 

 

-4-

 

Securities and that the pledgee is not the Company or
any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor.  In case of a
dispute as to such right, any decision by the Trustee shall be full protection
to the Trustee.  Upon request of the
Trustee, the Company shall furnish to the Trustee promptly an Officers’
Certificate listing and identifying all Securities, if any, known by the Company
to be owned or held by or for the account of any of the above-described
persons; and, subject to Section 601, the Trustee shall be entitled to accept
such Officers’ Certificate as conclusive evidence of the facts therein set
forth and of the fact that all Securities not listed therein are Outstanding
for the purposes of any such determination.

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

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

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

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

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

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

“Regular Record Date” for the interest payable on any
Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 301.

“Responsible Officer,” when used with respect to the
Trustee, means any officer of the Trustee assigned by the Trustee to administer
its corporate trust matters.

“Securities” has the meaning stated in the first recital
of this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.

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

 

-5-

 

“Senior Indebtedness,” unless otherwise specified in
one or more indentures supplemental hereto or approved pursuant to a Board
Resolution in accordance with Section 301, means, with respect to the Company,
(i) the principal (including redemption payments), premium, if any,
interest and other payment obligations in respect of (A) indebtedness of
the Company for money borrowed and (B) indebtedness evidenced by
securities, debentures, bonds, notes or other similar instruments issued by the
Company, including any such securities issued under any deed, indenture or
other instrument to which the Company is a party (including, for the avoidance
of doubt, indentures pursuant to which subordinated debentures have been or may
be issued); (ii) all capital lease obligations of the Company;
(iii) all obligations of the Company issued or assumed as the deferred purchase
price of property, all conditional sale obligations of the Company, all hedging
agreements and agreements of a similar nature thereto and all agreements
relating to any such agreements, and all obligations of the Company under any
title retention agreement (but excluding trade accounts payable arising in the
ordinary course of business); (iv) all obligations of the Company for
reimbursement on any letter of credit, banker’s acceptance, security purchase
facility or similar credit transaction; (v) all obligations of the type
referred to in clauses (i) through (iv) above of other Persons for the payment
of which the Company is responsible or liable as obligor, guarantor or
otherwise; (vi) all obligations of the type referred to in clauses (i)
through (v) above of other Persons secured by any lien on any property or asset
of the Company (whether or not such obligation is assumed by the Company); and
(vii) any deferrals, amendments, renewals, extensions, modifications and
refundings of all obligations of the type referred to in clauses (i) through
(vi) above, in each case whether or not contingent and whether outstanding at
the date hereof or thereafter incurred, except, in each case, for the
Securities and any such other indebtedness or deferral, amendment, renewal,
extension, modification or refunding that contains express terms, or is issued
under a deed, indenture or other instrument that contains express terms,
providing that it is subordinate to or ranks pari  passu with the
Securities.  Such Senior Indebtedness
shall continue to be Senior Indebtedness and be entitled to the benefits of the
subordination provisions of this Indenture irrespective of any amendment,
modification or waiver of any term of such Senior Indebtedness and
notwithstanding that no express written subordination agreement may have been
entered into between the holders of such Senior Indebtedness and the Trustee or
any of the Holders.

“Special Record Date” for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.

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

“Subsidiary” means, with respect to any Person:

(1)                                  any corporation or company a majority of
whose Capital Stock with voting power, under ordinary circumstances, to elect
directors is, at the date of determination, directly or indirectly, owned by
such Person (a “subsidi-

 

-6-

 

ary”), by one or more subsidiaries of such Person or
by such Person and one or more subsidiaries of such Person;

(2)                                  a partnership in which such Person or a
subsidiary of such Person is, at the date of determination, a general partner
of such partnership; or

(3)                                  any partnership, limited liability
company or other Person in which such Person, a subsidiary of such Person or
such Person and one or more subsidiaries of such Person, directly or
indirectly, at the date of determination, have (x) at least a majority
ownership interest or (y) the power to elect or appoint or direct the
election or appointment of the managing partner or member of such Person or, if
applicable, a majority of the directors or other governing body of such Person.

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

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

“U.S. Government Obligations” means securities which
are (i) direct obligations of the United States of America for the payment of
which its full faith and credit is pledged or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America the payment of which is unconditionally guaranteed as
to the timely payment of principal and interest as a full faith and credit
obligation by the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank or trust company which is a
member of the Federal Reserve System and having a combined capital and surplus
of at least $50,000,000 as custodian with respect to any such obligation
evidenced by such depository receipt or a specific payment of interest on or
principal of any such obligation held by such custodian for the account of the
holder of a depository receipt; provided that (except as required by
law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by
the custodian in respect of the obligation set forth in (i) or (ii) above or
the specific payment of interest on or principal of such obligation evidenced
by such depository receipt.

SECTION 102.       Compliance
Certificates and Opinions.

 

Upon any application or request by the Company to the
Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officers’ Cer-

 

-7-

 

tificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with and, where appropriate as to matters of law, an Opinion of
Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

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

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

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

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

(4)  a statement as to whether, in the opinion of
each such Person, such condition or covenant has been complied with.

SECTION 103.       Form of
Documents Delivered to Trustee.

 

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

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

 

-8-

 

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

SECTION 104.       Acts of
Holders.

 

(a)  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company.  Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments.  Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
601) conclusive in favor of the Trustee and the Company, if made in the manner
provided in this section.

(b)  The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may be proved in accordance with such reasonable rules and regulations as may
be prescribed by the Trustee or in any reasonable manner which the Trustee
deems sufficient.

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

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

(e)  Any request, demand, authorization,
direction, notice, consent, waiver or other Act of the Holder of any Security
shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange
therefor 

 

-9-

 

or in lieu thereof in respect of anything done,
omitted or suffered to be done by the Trustee or the Company in reliance
thereon, whether or not notation of such action is made upon such Security.

SECTION 105.       Notices,
Etc., to Trustee and Company.

 

Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,

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

(2)  the Company by the Trustee or by any Holder
shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
the Company addressed to it at the address of its principal office specified in
the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company, to the attention of the
general counsel of the Company.

SECTION 106.       Notice to
Holders; Waiver.

 

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

In case by reason of the suspension of regular mail
service or by reason of any other case it shall be impracticable to give such
notice by mail, then such notification as shall be made with the approval of
the Trustee shall constitute a sufficient notification for every purpose
hereunder.

SECTION 107.       Conflict
with Trust Indenture Act.

 

If any provision hereof limits, qualifies or conflicts
with another provision which is required or deemed to be included in this
Indenture by any of the provisions of the Trust Indenture Act, such required or
deemed provision shall control.

 

-10-

 

SECTION 108.       Effect of
Headings and Table of Contents.

 

The article and section headings herein and the table
of contents are for convenience only and shall not affect the construction
hereof.

SECTION 109.       Successors
and Assigns.

 

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

SECTION 110.       Separability
Clause.

 

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

SECTION 111.       Benefits of
Indenture.

 

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

SECTION 112.       Governing
Law.

 

This Indenture and the Securities shall be governed by
and construed in accordance with the laws of the State of New York.

SECTION 113.       Legal Holidays.

 

In any case where any Interest Payment Date,
Redemption Date or Stated Maturity of any Security shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities) payment of interest or principal (and premium,
if any) need not be made at such Place of Payment on such date, but may be made
on the next succeeding Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date or Redemption Date, or
at the Stated Maturity, provided that no interest shall accrue for the
period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be.

SECTION 114.       References
to Currency.

 

All references in this Indenture to “dollars” or “$”
are to the currency of the United States of America.

 

-11-

 

SECTION 115.       Agent for
Service; Submission to Jurisdiction; Waiver of Immunities.

 

By the execution and delivery of this Indenture, the
Company (i) acknowledges that it has, by separate written instrument,
designated and appointed National Registered Agents, Inc. (the “Process
Agent”), 440 9th Avenue, 5th Floor,  New York, New York 10001, United States, as
its authorized agent upon which process may be served in any suit, action or
proceeding arising out of or relating to the Notes or this Indenture that may
be instituted in any Federal or state court in the State of New York, The City
of New York, the Borough of Manhattan, or brought under Federal or state
securities laws or brought by the Trustee (whether in its individual capacity
or in its capacity as Trustee hereunder), and acknowledges that the Process
Agent has accepted such designation, (ii) submits to the jurisdiction of any
such court in any such suit, action or proceeding and (iii) agrees that service
of process upon the Process Agent and written notice of said service to it at
its principal office in accordance with Section 105 hereof), shall be deemed in
every respect effective service of process upon it in any such suit or
proceeding.  The Company further agrees
to take any and all action, including the execution and filing of any and all
such documents and instruments as may be necessary to continue such designation
and appointment of the Process Agent in full force and effect so long as the
Securities shall be outstanding; provided that the Company may (and shall, to
the extent the Process Agent ceases to be able to be served on the basis
contemplated herein) by written notice to the Trustee, designate such
additional or alternative agents for service of process under this
Section 115 that (i) maintains an office located in the Borough of
Manhattan, The City of New York in the State of New York, (ii) are either
(x) counsel for the Company or (y) a corporate service company which acts
as agent for service of process for other Persons in the ordinary course of its
business and (iii) agrees to act as agent for service of process in
accordance with this Section 115. Such notice shall identify the name of
such agent for process and the address of such agent for process in the Borough
of Manhattan, The City of New York, State of New York.  Notwithstanding the foregoing, there shall,
at all times, be at least one agent for service of process for the Company
appointed and acting in accordance with this Section 115.

To the extent that the Company has or hereafter may acquire
any immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, it
hereby irrevocably waives such immunity in respect of its obligations under the
above-referenced documents, to the extent permitted by law.

SECTION 116.       Judgment
Currency.

 

The Company hereby agrees to indemnify the Trustee and
each Holder against any loss incurred by any of them as a result of any
judgment or order being given or made for any amount due under this Indenture
or the Securities and such judgment or order being expressed and paid in a
currency (the “Judgment Currency”) other than U.S. dollars and as result of any
variation as between (i) the rate of exchange at which the U.S. dollar
amount is converted into the Judgment Currency for the purpose of such judgment
or order and (ii) the spot rate of exchange in The City of New York at which
any such person on the date of payment of such judg-

 

-12-

 

ment or order is able to purchase U.S. dollars with
the amount of the Judgment Currency actually received by such person.  The foregoing indemnity shall continue in
full force and effect notwithstanding any such judgment or order as
aforesaid.  The term “spot rate of
exchange” shall include any premiums and costs of exchange payable in
connection with the purchase of, or conversion into, U.S. dollars.

ARTICLE TWO

 

SECURITY FORMS

 

SECTION 201.       Forms
Generally.

 

The Securities of each series shall be in
substantially the forms established in one or more indentures supplemental
hereto or approved from time to time by or pursuant to a Board Resolution in
accordance with Section 301, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture and any indenture supplemental hereto, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or securities regulatory authority or as may, consistently
herewith, be determined by the officers executing such Securities, as evidenced
by their execution of the Securities. 
If the form of Securities of any series is established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the secretary or an assistant secretary of the Company
and delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such Securities.

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

SECTION 202.       Form of
Trustee’s Certificate of Authentication.

 

The Trustee’s certificate of authentication required
by this article shall be in substantially the form set forth below.

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

	
  [NAME OF
  TRUSTEE],

  
	
  as Trustee

  

 

-13-

 

	
  By

  	
   

  
	
  Authorized Signatory”

  

 

SECTION 203.       Securities
Issuable in the Form of a Global Security.

 

(a)  If the Issuer shall establish pursuant to
Sections 201 and 301 that the Securities of a particular series are to be
issued in whole or in part in the form of one or more Global Securities, then
the Issuer shall execute and the Trustee shall, in accordance with Section 303
and the Company Order delivered to the Trustee thereunder, authenticate and
deliver, such Global Security or Securities, which (i) shall represent,
and shall be denominated in an amount equal to the aggregate principal amount
of, the Outstanding Securities of such series to be represented by such Global
Security or Securities, (ii) shall be registered in the name of the
Depositary for such Global Security or Securities or its nominee,
(iii) shall be delivered by the Trustee to the Depositary or its custodian
or pursuant to the Depositary’s instruction and (iv) shall bear a legend
substantially to the following effect: “UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE (I) BY THE DEPOSITARY TO
A NOMINEE OF THE  DEPOSITARY OR
(II) BY A NOMINEE OF THE DEPOSITARY OR THE DEPOSITARY TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

(b)  Notwithstanding any other provision of this
section or of Section 305, unless the terms of a Global Security expressly
permit such Global Security to be exchanged in whole or in part for individual
Securities, a Global Security may be transferred, in whole but not in part and
in the manner provided in Section 305, only to another nominee of the
Depositary for such Global Security, or to a successor Depositary for such
Global Security selected or approved by the Issuer or to a nominee of such
successor Depositary.

(c)  (i) 
If at any time the Depositary for a Global Security notifies the Issuer
that it is unwilling or unable to continue as Depositary for such Global
Security or if at any time the Depositary for the Securities for such series
shall no longer be eligible or in good standing under the Securities Exchange
Act of 1934, as amended, or other applicable statute or regulation, the Issuer
shall appoint a successor Depositary with respect to such Global Security.  If a successor Depositary for such Global
Security is not appointed by the Issuer within 90 days after the Issuer
receives such notice or becomes aware of such ineligibility, the Issuer will
execute a Company 

 

-14-

 

Order for the authentication and delivery of
individual Securities of such series in exchange for such Global Security, and
the Trustee, upon receipt of such Company Order, will authenticate and deliver
individual Securities of such series of like tenor and terms in definitive form
in an aggregate principal amount equal to the principal amount of the Global
Security in exchange for such Global Security.

                   (ii)        If an Event of Default shall have occurred and be continuing
or an event shall have occurred which with the giving of notice or lapse of
time or both, would constitute an Event of Default with respect to the
Securities represented by such Global Security, the Trustee, upon receipt of a
Company Order for the authentication and delivery of individual Securities of
such series in exchange for such Global Security, will authenticate and deliver
individual Securities of such series of like tenor and terms in definitive form
in an aggregate principal amount equal to the principal amount of the Global
Security in exchange for such Global Security.

                  (iii)        The Issuer may at any time and in its sole discretion
determine that the Securities of any series issued or issuable in the form of
one or more Global Securities shall no longer be represented by such Global
Security or Securities.  In such event
the Issuer will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of individual Securities of such series in
exchange in whole or in part for such Global Security, will authenticate and
deliver individual Securities of such series of like tenor and terms in
definitive form in an aggregate principal amount equal to the principal amount
of such Global Security or Securities representing such series to be so
exchanged for such Global Security or Securities.

                  (iv)        If specified by the Issuer pursuant to Section 301 with
respect to Securities issued or issuable in the form of a Global Security, the
Depositary for such Global Security may surrender such Global Security in
exchange in whole or in part for individual Securities of such series of like
tenor and terms in definitive form on such terms as are acceptable to the
Issuer and such Depositary.  Thereupon
the Issuer shall execute, and the Trustee shall authenticate and deliver,
without service charge, (1) to each Person specified by such Depositary a new
Security or Securities of the same series of like tenor and terms and of any
authorized denomination of $1,000 and any integral multiple thereof as
requested by such Person in aggregate principal amount equal to and in exchange
for such Person’s beneficial interest in the Global Security; and (2) to such
Depositary a new Global Security of like tenor and terms and in a denomination
equal to the difference, if any, between the principal amount of the
surrendered Global Security and the aggregate principal amount of Securities
delivered to Holders thereof.

                   (v)        In any exchange provided for in any of the preceding four
paragraphs, the Issuer will execute and the Trustee will authenticate and
deliver individual Securities in definitive registered form in authorized
denominations of $1,000 and any integral multiple thereof.  Upon the exchange of a Global Security for
individual Securities, such Global Security shall be cancelled by the
Trustee.  Securities issued in exchange
for a Global Security pursuant to this section shall be registered in such
names and in such authorized denominations as the Depositary for such Global
Security, pursuant to instructions from its direct or indirect participants or
other-

 

-15-

 

wise, shall instruct the Trustee.  The Trustee shall deliver such Securities to
the persons in whose names such Securities are so registered.

ARTICLE THREE

 

THE SECURITIES

 

SECTION 301.       Amount
Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities which may
be authenticated and delivered under this Indenture is unlimited.

The Securities may be issued in one or more
series.  There shall be established in
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) 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 Sections 203,
304, 305, 306, 906 or 1107);

(2)  the issue price, expressed as a percentage
of the aggregate principal amount;

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

(4)  the rate or rates at which the Securities of
the series shall bear interest, if any, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest shall
be payable and the Regular Record Date for the interest payable on the Interest
Payment Date;

(5)  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;

(6)  the period of periods within which, the
price or prices or ratios at which and the terms and conditions upon which
Securities of the series may be redeemed, converted or exchanged, in whole or
in part;

(7)  if other than denominations of $1,000 and
any integral multiple thereof, the denominations in which Securities of the
series shall be issuable;

 

-16-

 

(8)  if other than the full principal amount, the
portion of the principal amount of Debt Securities of the series which will be
payable upon declaration of acceleration or provable in bankruptcy;

(9)  any events of default not set forth in this
Indenture;

(10)  the currency or currencies, including
composite currencies, in which payment of the principal of (and premium, if
any) and interest, if any, on such Securities shall be payable (if other than
the currency of the United States of America), which unless otherwise specified
shall be the currency of the United States of America as at the time of payment
is legal tender for payment of public or private debts;

(11)  if the principal of (and premium, if any) or
interest, if any, on such Securities is to be payable, at the election of the
Company or any Holder thereof, in a coin or currency other than that in which
such Securities are stated to be payable, then the period or periods within
which, and the terms and conditions upon which, such election may be made;

(12)  whether interest will be payable in cash or
additional Securities at the Company’s or the Holders’ option and the terms and
conditions upon which the election may be made;

(13)  if such Securities are to be denominated in
a currency or currencies, including composite currencies, other than the
currency of the United States of America, the equivalent price in the currency
of the United States of America for purposes of determining the voting rights
of Holders of such Securities as Outstanding Securities under this Indenture;

(14)         if the amount of payments of principal
of (and premium, if any), or portions thereof, or interest, if any, on such
Securities may be determined with reference to an index, formula or other
method based on a coin or currency other than that in which such Securities are
stated to be payable, the manner in which such amounts shall be determined;

(15) any
restrictive covenants or other material terms relating to the offered debt
securities, which covenants and terms shall not be inconsistent with the
provisions of this Indenture;

(16)  whether the Securities of the series shall
be issued in whole or in part in the form of a Global Security or Securities;
the terms and conditions, if any, upon which such Global Security or Securities
may be exchanged in whole or in part for other individual Securities; and the
Depositary for such Global Security or Securities;

 

-17-

 

(17)  if other than as set forth in this
Indenture, any terms with respect to subordination of such Securities,
including, without limitation, the definition of “Senior Indebtedness”;

(18)  any listing of such Securities on any
securities exchange;

(19)  additional or alternative provisions, if
any, related to defeasance and discharge of the offered debt securities;

(20)  the applicability of any guarantees;

(21)  if convertible into Common Shares, the terms
on which such Securities are convertible, including the initial conversion
price, the conversion period, any events requiring an adjustment of the
applicable conversion price and any requirements relating to the reservation of
such Common Shares for purposes of conversion;

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

(23)  each initial Place of Payment; and

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

All Securities of any one series shall be
substantially identical except as to denomination and except 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 Securities of any series
are established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by the secretary or an
assistant secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officers’ Certificate setting forth the terms of the
Securities of any series.

SECTION 302.       Denominations.

 

The Securities of each series shall be issuable in registered
form without coupons in such denominations as shall be specified as
contemplated by Section 301.  In the
absence of any such provisions with respect to the Securities of any series,
the Securities of such series shall be issuable in denominations of $1,000 and
any integral multiple thereof.

SECTION 303.       Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the Company
by its chairman of the Board of Directors, a vice chairman, its president or
one of its vice presidents, under its corporate 

 

-18-

 

seal reproduced thereon attested by its secretary or
one of its assistant secretaries.  The
signature of any of these officers on the Securities may be manual or
facsimile.

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

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 to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver
such Securities.  If the form or terms
of the Securities of the series have been established in or pursuant to one or
more Board Resolutions as permitted by Sections 201 and 301, or by one or more
indentures supplemental hereto as provided by Section 901, 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 601) shall be fully protected in relying upon,
an Opinion of Counsel stating

(a)  that such
form has been established in conformity with the provisions of this Indenture;

(b)  that such
terms have been established in conformity with the provisions of this
Indenture;

(c)  that this
Indenture and such Securities, 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 their terms, subject
to bankruptcy, insolvency, fraudulent conveyance, reorganization and other laws
of general applicability relating to or affecting the enforcement of creditors’
rights and to general equity principles;

(d)  that all
laws and requirements in respect of the execution and delivery by the Company
of the Securities have been complied with; and

(e)  such other
matters as the Trustee may reasonably request.

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

Each Security shall be dated the date of its
authentication unless otherwise provided by the terms established and
contemplated by Section 301.

 

-19-

 

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 304.       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 which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu
of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities
may determine, as evidenced by their execution of such Securities.

If temporary Securities of any series are issued, the
Company will cause definitive Securities of that series to be prepared without
unreasonable delay.  After the
preparation of definitive Securities of such series, the temporary Securities
of such series shall be exchangeable for definitive Securities of such series
upon surrender of the temporary Securities of such series at the office or
agency of the Company in a Place of Payment for that series, without charge to
the Holder.  Upon surrender for
cancellation of any one or more temporary Securities of any series the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations.  Until so
exchanged the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of
such series.

SECTION 305.       Registration,
Registration of Transfer and Exchange.

 

The Company shall cause to be kept at one of its offices
or agencies maintained pursuant to Section 1002 or at the Corporate Trust
Office of the Trustee a register (the register maintained in such office and in
any other office or agency of the Company in a Place of Payment being herein
sometimes collectively referred to as the “Security Register”) in which,
subject to Section 203 and to such reasonable regulations as it may prescribe,
the Company shall provide for the registration of Securities and of transfers
of Securities.  The Trustee initially is
hereby appointed “Security Registrar” for the purpose of registering Securities
and transfers of Securities as herein provided.  The Company may act as Security Registrar and may change or appoint
a Security Registrar without prior notice to Holders or to the Trustee.

Subject to Section 203, upon surrender for
registration of transfer of any Security of any series at the office or agency
in a Place of Payment for that series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee
or 

 

-20-

 

transferees, one or more new Securities of the same
series, of any authorized denominations and of a like aggregate principal
amount and tenor.

Subject to Section 203, at the option of the Holder,
Securities of any series may be exchanged for other Securities of the same
series, of any authorized denominations and of a like aggregate principal
amount and tenor, upon surrender of the Securities to be exchanged at such
office or agency.  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.

Subject to Section 203, all Securities issued upon any
registration or transfer or exchange of Securities shall be valid obligations
of the Company, evidencing the same debt, and entitled to the same benefits
under this Indenture, as the Securities surrendered upon such registration of
transfer or exchange.

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

No service charge shall be made for any registration
of transfer or exchange of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 203, 304, 906 or 1107 not
involving any transfer.

The Company shall not be required (i) to issue, register
the transfer of or exchange Securities of any series during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption (under Section
1103) and ending at the close of business on the day of such mailing, or (ii)
to register the transfer of or exchange any Security so selected for redemption
in whole or in part, except the unredeemed portion of any Security being redeemed
in part.

SECTION 306.       Mutilated,
Destroyed, Lost and Stolen Securities.

 

If there shall be delivered to the Company and the
Trustee (i)(A) any mutilated Security or (B) evidence to their satisfaction of
the destruction, loss or theft of any Security and (ii) such security or
indemnity as may be required by them to hold each of them and any agent of
either of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon its request the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security or in exchange
for such mutilated Security, a new Security of the same series and of like
tenor and principal amount and bearing a number not contemporaneously
outstanding.

 

-21-

 

In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security.

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

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

The provisions of this section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.

SECTION 307.       Payment of
Interest; Interest Rights Preserved.

 

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

Any interest on any Security of any series which is
payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at
its election in each case, as provided in clause (1) or (2) below:

(1)  The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the Securities of such series
(or their respective Predecessor Securities) are registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. 
The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security of such series and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall 

 

-22-

 

fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company
of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder of Securities of such series at his address as it appears in the
Security Register, not less than 10 days prior to such Special Record
Date.  Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (2).

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

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

SECTION 308.       Persons
Deemed Owners.

 

Subject to Section 203, the Company, the Trustee and
any agent of the Company or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of
receiving payment of principal of (and premium, if any) and (subject to Section
307) interest on such Security and for all other purposes whatsoever, whether
or not such Security be overdue, and none of the Company, the Trustee or any
agent of the Company or the Trustee shall be affected by notice to the
contrary.

SECTION 309.       Cancellation.

 

All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and shall be promptly cancelled by it.  The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and all
Securities so delivered shall be promptly cancelled by the Trustee.  No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this section, ex-

 

-23-

 

cept as expressly permitted by this Indenture.  The Trustee shall destroy cancelled
Securities and deliver a certificate of such destruction to the Company.

SECTION 310.       Computation
of Interest.

 

Except as otherwise specified as contemplated by Section
301 for the Securities of any series, interest on the Securities of each series
shall be computed on the basis of a year of 12 30-day months.

ARTICLE FOUR

 

SATISFACTION AND
DISCHARGE

 

SECTION 401.       Satisfaction
and Discharge of Indenture.

 

This Indenture shall upon Company Request cease to be
of further effect with respect to any series of Securities (except as to (i)
any surviving rights of registration of transfer or exchange of Securities
herein expressly provided for, (ii) rights hereunder of Holders to receive
payments of principal of, and premium, if any, and interest on, Securities, and
other rights, duties and obligations of the Holders as beneficiaries hereof
with respect to the amounts, if any, so deposited with the Trustee, (iii)
remaining obligations of the Company to make mandatory sinking fund payments
and (iv) the rights, obligations and immunities of the Trustee hereunder),
and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with
respect to any series of Securities, when

(1)  either

(A)  all Securities of such series theretofore authenticated
and delivered (other than (i) Securities of such series which have been
mutilated, destroyed, lost or stolen and which have been replaced or paid as provided
in Section 306 and (ii) Securities of such series for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 1003) have been delivered to the Trustee for cancellation;
or

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

                    (i)        have become due and payable, or

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

 

-24-

 

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

and the Company,
in the case of (i), (ii) or (iii) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount in
cash 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) and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

(2)  if all series of Securities are being
discharged, the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and

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

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 607,
and, if money shall have been deposited with the Trustee pursuant to subclause
(B) of clause (1) of this section, the obligations of the Trustee under Section
402 and the next to last paragraph of Section 1003, shall survive.

SECTION 402.       Application
of Trust Funds; Indemnification.

 

(a)  Subject to the provisions of the last
paragraph of Section 1003, all money deposited with the Trustee pursuant to
Section 401, all money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 403 or 404 and all money received by the Trustee in
respect of U.S. Government Obligations deposited with the Trustee pursuant to
Section 403 or 404 shall be held in trust and applied by it, in accordance with
the provisions of the 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 Persons entitled thereto, of
the principal (and premium, if any) and interest for whose payment such money
has been deposited with or received by the Trustee or to make mandatory sinking
fund payments or analogous payments as contemplated by Section 403 or 404, but
such money need not be segregated from other funds except to the extent
required by law.

(b)  The Company shall pay and shall indemnify
the Trustee against any tax, fee or other charge imposed on or assessed against
U.S. Government Obligations deposited pursuant to Section 403 or 404, or the
interest and principal received in respect of such obligations other than any
payable by or on behalf of Holders.

 

-25-

 

(c)  The Trustee shall deliver or pay to the
Company from time to time upon Company Request any U.S. Government Obligations
or money held by it as provided in Section 403 or 404 which, in the opinion of
a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are then in excess of
the amount thereof which then would have been required to be deposited for the
purpose for which such obligations or money were deposited or received.

SECTION 403.       Defeasance
and Discharge of Indenture.

 

The Company shall be deemed to have paid and
discharged the entire indebtedness on all the Outstanding Securities on the
91st day after the date of the deposit referred to in subparagraph (1) of this
section, and the provisions of this Indenture, as it relates to such Outstanding
Securities, shall no longer be in effect (and the Trustee, at the expense of
the Company, shall at Company Request, execute proper instruments acknowledging
the same), except as to:

(a)  the rights
of Holders of Securities to receive, from the trust funds described in
subparagraph (1) hereof, (i) payment of the principal of (and premium, if any)
and each installment of principal of (and premium, if any) or interest on the
Outstanding Securities on the Stated Maturity of such principal or installment
of principal or interest and (ii) the benefit of any mandatory sinking fund payments
applicable to the Securities on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities;

(b)  the
Company’s obligations with respect to such Securities under Sections 305, 306,
1002 and 1003; and

(c)  the
obligations of the Company to the Trustee under Section 607,

provided that the following conditions shall have been satisfied:

(1)  the
Company has or caused to be irrevocably deposited (except as provided in
Section 402) with the Trustee as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the
Securities, (i) money in an amount, or (ii) U.S. Government Obligations which
through the payment of interest and principal in respect thereof in accordance
with their terms will provide not later than one day before the due date of any
payment referred to in clause (A) or (B) of this subparagraph money in an
amount, or (iii) a combination thereof, sufficient, in the opinion of a
nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge (A) the principal of (and premium, if any) and each installment
of principal of (and premium, if any) and interest on the Outstanding
Securities on the Stated Maturity of such principal or installment of principal
or interest or on the applicable Redemption Date and (B) any mandatory sinking
fund payments applicable to the Securities on the day on which such pay-

 

-26-

 

ments are due and payable
in accordance with the terms of this Indenture and of the Securities;

(2)  such
deposit shall not cause the Trustee with respect to the Securities to have a
conflicting interest for purposes of the Trust Indenture Act with respect to
the Securities;

(3)  such
deposit will not result in a breach or violation of, or constitute a default
under, any applicable laws, this Indenture or any other agreement or instrument
to which the Company is a party or by which it is bound;

(4)  no Event
of Default or event which with notice or lapse of time would become an Event of
Default with respect to the Securities shall have occurred and be continuing on
the date of such deposit or during the period ending on the 91st day after such
date; and

(5)  if the
deposit referred to in subparagraph (1) of this section is to be made on or
prior to one year from the Stated Maturity for payment of principal of the
Outstanding Securities, the Company has delivered to the Trustee an Opinion of
Counsel with no material qualifications or a favorable ruling of the Internal
Revenue Service, in either case to the effect that Holders of the Securities
will not recognize income, gain or loss for federal income tax purposes as a
result of such deposit, defeasance and discharge and will be subject to federal
income tax on the same amount and in the same manner and at the same times, as
would have been the case if such deposit, defeasance and discharge had not occurred.

SECTION 404.       Defeasance
of Certain Obligations.

 

If this section is specified to be applicable to
Securities of any series, the Company may omit to comply with any term,
provision or condition set forth in the sections of this Indenture or such
Security with respect to the Securities of that series (“Covenant Defeasance”)
if:

(1)  with reference to this section, the Company
has deposited or caused to be irrevocably deposited with the Trustee as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of the Securities of that series, (i) money in an
amount, or (ii) U.S. Government Obligations which through the payment of
interest and principal in respect thereof in accordance with their terms will
provide not later than one day before the due date of any payment referred to
in clause (A) or (B) of this subparagraph 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 (A) the principal of (and premium, if any)
and each installment of principal (and premium, if any) and interest on the
Outstanding Securities of that series on the Stated Maturity of such princi-

 

-27-

 

pal or installment of principal or interest and (B)
any mandatory sinking fund payments or analogous payments applicable to
Securities of such series on the day on which such payments are due and payable
in accordance with the terms of the Indenture and of such Securities;

(2)  such deposit shall not cause the Trustee
with respect to the Securities of that series to have a conflicting interest
for purposes of the Trust Indenture Act with respect to the Securities of any
series;

(3)  such deposit will 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;

(4)  if the deposit referred to in subparagraph
(1) of this section is to be made on or prior to one year from the Stated
Maturity for payment of principal of the Outstanding Securities, the Company
has delivered to the Trustee an Opinion of Counsel with no material
qualifications or a favorable ruling of the Internal Revenue Service, in either
case to the effect that Holders of the Securities will not recognize income,
gain or loss for federal income tax purposes as a result of such deposit and
defeasance of certain obligations and will be subject to federal income tax on
the same amount and in the same manner and at the same times, as would have
been the case if such deposit and defeasance had not occurred; and

(5)  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 defeasance
contemplated by this section have been complied with.

In the event the Company effects Covenant Defeasance
with respect to any Securities and such Securities are declared due and payable
because of the occurrence of any Event of Default, other than an Event of
Default with respect to any covenant as to which there has been Covenant
Defeasance, the U.S. Government Obligations on deposit with the Trustee will be
sufficient to pay amounts due on such Securities at the time of the Stated
Maturity but may not be sufficient to pay amounts due on such Securities at the
time of the acceleration resulting from such Event of Default.

 

-28-

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.       Events of
Default.

 

“Event of Default” (except as otherwise specified or
contemplated by Section 301 for Securities of any series) wherever used herein
with respect to Securities of any series, means any one of the following
events:

(1)  default in the payment of any interest upon
any Security of that series when it becomes due and payable, and continuance of
such default for a period of 60 days; or

(2)  default in the payment of the principal of (or
premium, if any, on) any Security of that series at its Maturity; or

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

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

(5)  the entry by a court having jurisdiction in
the premises of (A) a decree or order for relief in respect of the Company in
an involuntary case or proceeding under any applicable bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or order adjudging the
Company a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company under any applicable law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the
Company or of any substantial part of its property, or ordering the winding up
or liquidation of its affairs, and the continuance of any such decree or order
for relief or any such other decree or order unstayed and in effect for a
period of 60 consecutive days; or

(6)  the commencement by the Company of a
voluntary case or proceeding under any applicable bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Company in an involuntary case or 

 

-29-

 

proceeding under any applicable bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it of
a petition or answer or consent seeking reorganization or relief under any
applicable law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Company or of any
substantial part of its property, or the making by it of an assignment for the
benefit of creditors, or the admission by it in writing of its inability to pay
its debts generally as they become due and its willingness to have a case
commenced against it or to seek an order for relief under any applicable
bankruptcy, insolvency or other similar law or the taking of corporate action
by the Company in furtherance of any such action; or

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

SECTION 502.       Acceleration
of Maturity: Rescission and Annulment.

 

If an Event of Default (other than an Event of Default
resulting from bankruptcy, insolvency or reorganization) with respect to
Securities of any series at the time Outstanding occurs and is continuing, then
in every such case the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of that series may declare the principal
amount (or, if the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the
terms of that series) of all of the Securities of that series to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable.

In the case of an Event of Default resulting from
bankruptcy, insolvency or reorganization, which occurs and is continuing with
respect to Securities of any series at the time Outstanding, then all unpaid
principal of and accrued interest on all such Outstanding Securities of that
series shall become immediately due and payable without any notice or other
action on the part of the Trustee or the Holders of any Securities of such series.

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

(1)  the Company has paid or deposited with the
Trustee a sum sufficient to pay

(A)  all overdue interest on all Securities of
that series,

 

-30-

 

(B)  the principal of (and premium, if any, on)
any Securities of that series which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate or rates
prescribed therefor in such Securities,

(C)  to the extent that payment of such interest
is lawful, interest upon overdue interest at the rate or rates prescribed
therefor in such Securities, and

(D)  all sums paid or advanced by the Trustee and
any predecessor Trustee hereunder and all sums due the Trustee and any
predecessor Trustee under Section 607;

and

(2)  all Events of Default with respect to
Securities of that series, other than the non-payment of the principal of
Securities of that series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 513.

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

SECTION 503.       Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if

(1)  default is made in the payment of any
interest on any Security when such interest becomes due and payable and such
default continues for a period of 30 days, or

(2)  default is made in the payment of the
principal of (or premium, if any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities, the whole amount then
due and payable on such Securities for principal (and premium, if any) and
interest and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal (and premium, if any) and on any
overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including all amounts due the Trustee and
any predecessor Trustee under Section 607.

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

 

-31-

 

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

SECTION 504.       Trustee May
File Proofs of Claim.

 

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

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

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

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding
is hereby authorized by each Holder to make such payments to the Trustee and,
in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section
607.

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.

SECTION 505.       Trustee May
Enforce Claims Without Possession of Securities.

 

All rights of action and claims under this Indenture
or the Securities may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or the 

 

-32-

 

production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, be for the ratable benefit
of the Holders of the Securities in respect of which such judgment has been recovered.

SECTION 506.       Application
of Money Collected.

 

Any money collected by the Trustee pursuant to this article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
(or premium, if any) or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

FIRST:  To the
payment of all amounts due the Trustee and each predecessor Trustee under Section
607;

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

THIRD:  To the
Company.

SECTION 507.       Limitation
on Suits.

 

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

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

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

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

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

 

-33-

 

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

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

SECTION 508.       Unconditional
Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in this Indenture,
the Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of (and premium, if any) and
(subject to Section 307) interest on such Security on the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

SECTION 509.       Restoration
of Rights and Remedies.

 

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

SECTION 510.       Rights and
Remedies Cumulative.

 

Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 306, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

SECTION 511.       Delay or
Omission Not Waiver.

 

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

 

-34-

 

constitute a waiver of any such Event of Default or
any acquiescence therein.  Every right
and remedy given by this article or by law to the Trustee or to the Holders may
be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

SECTION 512.       Control by
Holders.

 

The Holders of a majority in principal amount of the
Outstanding Securities of any series (or if more than one series is affected
thereby, of all series so affected, voting as a single class) shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, with respect to the Securities of such series, provided
that

(1)  such direction shall not be in conflict with
any rule of law or with this Indenture, expose the Trustee to personal
liability or be unduly prejudicial to holders not joining therein, and

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

Nothing in this Indenture shall impair the right of
the Trustee to take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

SECTION 513.       Waiver of
Past Defaults.

 

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

(1)  in the payment of the principal of (or
premium, if any) or interest on any Security of such series, or

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

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

SECTION 514.       Undertaking
for Costs.

 

All parties to this Indenture agree, and each Holder
of any Security by his acceptance thereof shall be deemed to have agreed, that
any court may in its discretion require, in any 

 

-35-

 

suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as 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 Company,
to any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of
the Outstanding Securities of any series, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of (or premium, if
any) or interest on any Securities on or after the Stated Maturity or Maturities
expressed in such Security (or, in the case of redemption, on or after the
Redemption Date).  This Section 514
shall be in lieu of Section 315(e) of the Trust Indenture Act and such Section
315(e) is hereby expressly excluded from this Indenture, as permitted by the
Trust Indenture Act.

SECTION 515.       Waiver of
Stay or Extension Laws.

 

The Company covenants (to the extent that it may lawfully
do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been
enacted.

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601.       Certain
Duties and Responsibilities.

 

(a)  Except during the continuance of an Event of
Default with respect to the Securities of any series,

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

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

 

-36-

 

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)  In case an Event of Default has occurred
with respect to Securities of any series and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this Indenture with
respect to such series of Securities, and use the same degree of care and skill
in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

(c)  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 wilful misconduct, except
that

(1)  this subsection shall not be construed to
limit the effect of Subsection (a) of this section;

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

(3)  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 a majority in principal amount of the
Outstanding Securities of any series, determined as provided in Section 512,
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 with respect to the Securities of such series;
and

(4)  no provision of this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

(d)  Whether or not therein expressly so
provided, every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Trustee shall be subject to the
provisions of this section.

SECTION 602.       Notice of
Defaults.

 

Within 90 days after the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall
transmit by mail to all Holders of Securities of such series, as their names
and addresses appear in the Security Register, notice of such default hereunder
known to the Trustee, unless such default shall have been cured or waived; provided,
however, that, except in the case of a default in the payment of the
principal of (or premium, if any) 

 

-37-

 

or interest on any Security of such series or in the
payment of any sinking fund installment with respect to 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 interest of the Holders of Securities
of such series; and provided, further, that in the case of any
default of the character specified in Section 501(4) with respect to Securities
of such series, no such notice to Holders shall be given until at least 30 days
after the occurrence thereof.  For the
purpose of this section, the term “default” means any event which is, or after
notice or lapse of time or both would become, an Event of Default with respect
to Securities of such series.

SECTION 603.       Certain
Rights of Trustee.

 

Subject to the provisions of Section 601:

(a)  the
Trustee may rely and shall be protected in acting or refraining from acting
upon any Board Resolution, resolution, Officers’ Certificate, certificate,
statement, instrument, Opinion of Counsel, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness 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 or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

(c)  whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an
Officers’ Certificate;

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

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

(f)  the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry 

 

-38-

 

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;
and

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

SECTION 604.       Not Responsible
for Recitals or Issuance of Securities.

 

The recitals contained herein and in the Securities,
except the Trustee’s certificates of authentication, shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for their
correctness.  The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities.  The Trustee shall not be
accountable for the use or application by the Company of Securities or the
proceeds thereof.

SECTION 605.       May Hold
Securities.

 

The Trustee, any Paying Agent, any Security Registrar
or any other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 608 and 612,
may otherwise deal with, and collect obligations owed to it by, the Company
with the same rights it would have if it were not Trustee, Paying Agent,
Security Registrar or such other agent.

SECTION 606.       Money Held
in Trust.

 

Money held by the Trustee in trust hereunder need not
be segregated from other funds except to the extent required by law.  The Trustee shall be under no liability for
interest on any money received by it hereunder except as otherwise agreed with
the Company.

SECTION 607.       Compensation
and Reimbursement.

 

The Company agrees

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

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

 

-39-

 

(3)  to indemnify each of the Trustee and any
predecessor Trustee for, and to hold it harmless against, any loss, liability
or expense, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder and the performance of its
duties hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability
or expense is due to its own negligence or bad faith.

To ensure the performance of the obligations of the
Company under this section, the Trustee shall have a senior claim to which the
Securities are hereby made subordinate upon all property and funds held or
collected by the Trustee as such, except property and funds held in trust for
the payment of principal of, premium, if any, or interest on particular Securities.

SECTION 608.       Disqualification;
Conflicting Interests.

 

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

SECTION 609.       Corporate
Trustee Required; Eligibility.

 

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 of America, any State thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers having (or, in
the case of the subsidiary of a bank holding company that guarantees the
obligations of the Trustee under this Indenture, such holding company’s parent
shall have) a combined capital and surplus of at least $50,000,000 subject to
supervision or examination by Federal or State authority.  If such corporation or holding company parent
publishes reports of condition at least annually, pursuant to law or the requirements
of said supervising or examining authority, then for the purposes of this
section, the combined capital and surplus of such corporation or holding
company parent shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
article.

SECTION 610.       Resignation
and Removal; Appointment of Successor.

 

(a)  No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.

(b)  The Trustee may resign at any time with
respect to the Securities of one or more series by giving written notice
thereof to the Company.  If the instrument
of acceptance by a successor Trustee required by Section 611 shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any 

 

-40-

 

court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities of such series.  If the acceptance of appointment is
substantially contemporaneous with the resignation, then the notice called for
by the first sentence of this subsection may be combined with the instrument
called for by Section 611.

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

(d)  If at any time:

(1)  the Trustee shall fail to comply with
Section 608 after written request therefor by the Company or by any Holder
who has been a bona fide Holder of a Security for at least six months, or

(2)  the Trustee shall cease to be eligible under
Section 609 and shall fail to resign after written request therefor by the
Company or by any such Holder, or

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

then, in any such case, (i) the Company by a Board
Resolution may remove the Trustee with respect to all Securities, or (ii) subject
to Section 514, any Holder who has been a bona fide Holder of a Security for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee
with respect to all Securities and the appointment of a successor Trustee or
Trustees.

(e)  If the Trustee shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Trustee for any cause, with respect to the Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee
or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there
shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor appointed by the Company.  If no successor Trustee with respect to the
Securities of any series shall have been so appointed by the Company or the
Holders and accepted 

 

-41-

 

appointment in the manner required by Section 611, any
Holder who has been a bona fide Holder of a Security of such series for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

(f)  The Company shall give notice of each
resignation and each removal of the Trustee with respect to the Securities of
any series and each appointment of a successor Trustee with respect to the
Securities of any series by mailing written notice of such event by first-class
mail, postage prepaid, to all Holders of Securities of such series as their
names and addresses appear in the Security Register.  Each notice shall include the name of the successor Trustee with
respect to the Securities of such series and the address of its Corporate Trust
Office.

SECTION 611.       Acceptance
of Appointment by Successor.

 

(a)  In case of the appointment hereunder of a
successor Trustee with respect to all Securities, every such successor Trustee
so appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.

(b)  In case of the appointment hereunder of a
successor Trustee with respect to the Securities of one or more (but not all)
series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary
or desirable to transfer and confirm to, and to vest in, each successor Trustee
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be
vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become 

 

-42-

 

vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

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

(d)  No successor Trustee shall accept its
appointment unless at the time of such acceptance such successor Trustee shall
be qualified and eligible under this article.

SECTION 612.       Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into which the Trustee may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee (including the administration of this Indenture),
shall be the successor of the Trustee hereunder, provided such corporation
shall be otherwise qualified and eligible under this article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto.  In case any Securities
shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.

SECTION 613.       Preferential
Collection of Claims Against Company.

 

If and when the Trustee shall be or become a creditor
of the Company (or any other obligor upon the Securities), the Trustee shall be
subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Company (or any such other obligor).  A trustee who has resigned or been removed
shall be subject to the Trust Indenture Act Section 311(a) to the extent
provided therein.

 

-43-

 

ARTICLE SEVEN

 

HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY

 

SECTION 701.       Company to
Furnish Trustee Names and Addresses of Holders.

 

The Company will furnish or cause to be furnished to
the Trustee with respect to the Securities of each series

(a) 
semi-annually, not more than fifteen days after each Regular Record
Date, or, in the case of any series of Securities on which semi-annual interest
is not payable, not more than fifteen days after such semi-annual dates as may
be specified by the Trustee, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of such Regular Record
Date or such semi-annual date, as the case may be, and

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

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

SECTION 702.       Preservation
of Information; Communications to Holders.

 

(a)  The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained
in the most recent list furnished to the Trustee as provided in Section 701 and
the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar.  The Trustee may destroy
any list furnished to it as provided in Section 701 upon receipt of a new list
so furnished.

(b)  If three or more Holders (herein 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 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 with
respect to their rights under this Indenture or under the Securities and 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

                    (i)        afford such applicants access to the
information preserved at the time by the Trustee in accordance with Section
702(a), or

                   (ii)        inform such applicants as to the
approximate number of Holders whose names and addresses appear in the
information preserved at the time by the Trustee in ac-

 

-44-

 

cordance with Section 702(a), and as to the
approximate cost of mailing to such Holders the form of proxy or other communication,
if any, specified in such application.

If the Trustee shall elect not to afford such applicants
access to such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder whose name and address appear in the
information preserved at the time by the Trustee in accordance with Section
702(a) 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 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
interest of the Holders or would be in violation of applicable law.  Such written statement shall specify the
basis of such opinion.  If the
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, the Commission shall find, after notice and opportunity for
hearing, that all the objections so sustained have been met and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such
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)  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 either of them shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders in accordance with Section 702(b), regardless of
the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request
made under Section 702(b).

(d)  Subject to Sections 702(a), 702(b), 702(c)
and 601, if the Company or any other person (other than the Trustee) shall
desire to communicate with Holders of Securities to solicit or obtain from them
any proxy, consent, authorization, waiver, approval of a plan of
reorganization, arrangement or readjustment or other action (“Holder Action”),
the Trustee shall have no duty to participate in such communication or
solicitation or the processing of responses in any manner except (i) to furnish
the rules and regulations and to perform the functions referred to in Section
104 and (ii) to receive (A) the instruments evidencing the Holder Action
together with (B) the Officers’ Certificate and Opinion of Counsel referred to
below.  The Company hereby covenants
that any and all communications and solicitations distributed by it in
connection with any Holder Action will comply in all material respects with
applicable law, including without limitation applicable law concerning adequacy
of disclosure.  The Trustee shall have
no responsibility for the accuracy or completeness of any materials circulated
to solicit any Holder Action nor for any related communications nor for the
compliance thereof with applicable law. 
No Holder Action shall become effective until the Trustee shall have
received from the Company or other person who solicited the Holder Action (1)
the instruments evidencing such Holder Action 

 

-45-

 

and (2) (x) (in the case of Holder Action solicited by
the Company or the representative of the Company’s estate if the Company is the
debtor in any bankruptcy or other insolvency proceeding) an Officers’
Certificate and (y) (in all cases) an Opinion of Counsel, each specifying the
Holder Action taken and stating that such Holder Action has been duly and
validly taken in compliance with this Indenture in all material respects.  Such Officers’ Certificate, if any, shall also
certify that (after giving effect to such Holder Action) no Event of Default or
event or condition which, with notice or lapse of time or both, would become an
Event of Default has occurred and is continuing or has not been waived.

(e)  The Depositary may grant proxies and
otherwise authorize its participants which own the Global Securities to give or
take any Act which a Holder is entitled to take under this Indenture; provided,
however, that the Depositary has delivered a list of such participants
to the Trustee.

SECTION 703.       Reports by
Trustee.

 

(a)  Within 60 days after [                   ]  of each year commencing with the first [                      ] following the date of this Indenture, the
Trustee shall transmit by mail to all Holders, as their names and addresses
appear in the Security Register, a brief report dated as of such [                           ], to the extent
required by Section 313(a) of the Trust Indenture Act.

(b)  The Trustee shall comply with Sections
313(b) and 313(c) of the Trust Indenture Act.

(c)  A copy of each such report shall, at the
time of such transmission to Holders, be filed by the Trustee with the
Commission and with the Company.  The
Company will notify the Trustee when any Securities are listed on any stock
exchange.

SECTION 704.       Reports by
Company.

 

The Company shall:

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

 

-46-

 

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

ARTICLE EIGHT

 

SUCCESSOR CORPORATION

 

SECTION 801.       When Company
May Merge or Transfer Assets.

 

The Company shall not consolidate or amalgamate with
or merge with or into any other person (other than a Subsidiary) or convey,
transfer, sell or lease its properties and assets substantially as an entirety
to any person (other than a Subsidiary), permit any person (other than a
Subsidiary) to consolidate with or merge into the Company, or permit any person
(other than a Subsidiary) to convey, transfer, sell or lease that person’s
properties and assets substantially as an entirety to the Company, unless:

(1)  either (a) the Company shall be the
surviving person or (b) the person (if other than the Company) formed by such
consolidation or into which the Company is merged or the person which acquires
by conveyance, transfer or lease the properties and assets of the Company
substantially as an entirety shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, in form reasonably satisfactory
to the Trustee, all of the obligations of the Company under the Securities and
this Indenture;

(2)  immediately after giving effect to such
transaction, no Event of Default, and no event that, after notice or lapse of
time or both, would become an Event of Default, shall have occurred and be
continuing; and

(3)  the Company shall have delivered to the
Trustee an Officers’ Certificate stating that such consolidation, merger,
conveyance, transfer, sale or lease and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture,
comply with this Section 801 and that all conditions precedent herein provided
for relating to such transaction have been satisfied.

The successor person formed by such consolidation or
into which the Company is merged or the successor person to which such
conveyance, transfer, sale or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor had been named as the
Company herein; and thereafter, the Company shall be discharged from all
obligations and covenants under this Indenture and the Securities.  Subject to Section 903, the Company, the
Trustee and the suc-

 

-47-

 

cessor person shall enter into a supplemental
indenture to evidence the succession and substitution of such successor person
and such discharge and release of the Company.

ARTICLE NINE

 

AMENDMENTS &
SUPPLEMENTAL INDENTURES

 

SECTION 901.       Amendments
or Supplemental Indentures without Consent of Holders.

 

The Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may amend or supplement
this Indenture or the Securities without the consent of any Holder, so long as
such changes, other than those in clause (2), do not materially and adversely
affect the interests of the Holder:

(1)           to cure any ambiguity, omission,
defect or inconsistency;

(2)           to make any modifications or
amendments that do not, in the good faith opinion of the Company’s Board of
Directors and the Trustee, adversely affect the interests of the Holders in any
material respect;

(3)           to provide for the assumption of the
Company’s obligations under this Indenture by a successor upon any merger,
consolidation or asset transfer as permitted by and in compliance with Article
Eight of this Indenture;

(4)           to provide any security for or
additional guarantees of the Securities;

(5)           to add Events of Default with respect
to the Securities; or

(6)           to add to the Company’s covenants for
the benefit of the Holders or to surrender any right or power conferred upon
the Company by this Indenture;

(7)           to make any change necessary for the
registration of the Securities under the Securities Act or to comply with the
TIA, or any amendment thereto, or to comply with any requirement of the SEC in
connection with the qualification of the Indenture under the TIA, provided that
such modification or amendment does not, in the good faith opinion of the
Company’s Board of Directors and the Trustee, adversely affect the interests of
the Holders of the Securities in any material respect; or

(8)           to provide for uncertificated
Securities in addition to or in place of certificated Securities or to provide
for bearer Securities; or

 

-48-

 

(9)           to add to or change any of the
provisions of this Indenture to such extent as shall be necessary to permit or
facilitate the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons; or

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

(11)         to establish the form or terms of
Securities of any series as permitted by Sections 201 and 301; or

(12)         to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee with respect to the
Securities of one or more series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 611(b).

SECTION 902.       Amendments
or Supplemental Indentures with Consent of Holders.

 

With the written consent of the Holders of not less
than a majority in aggregate principal amount of the Securities at the time
Outstanding, the Company, when authorized by a Board Resolution, and the
Trustee, at any time and from time to time, may amend or supplement this
Indenture or the Securities.  However,
without the consent of each Holder affected, an amendment to this Indenture or
the Securities may not:

(1)           change the Stated Maturity of the
principal of or any installment of interest with respect to the Securities;

(2)           reduce the principal amount of, or
the rate of interest on, the Securities;

(3)           change the currency of payment of
principal of or interest on the Securities;

(4)           impair the right to institute suit
for the enforcement of any payment on or with respect to the Securities;

(5)           reduce the above-stated percentage of
Holders of the Securities of any series necessary to modify or amend this Indenture;

(6)           modify the foregoing requirements or
reduce the percentage of Outstanding Securities necessary to waive any covenant
or past default; and

(7)           if the Securities are convertible,
adversely affect the right to convert the Securities into Common Shares in
accordance with the provisions of this Indenture.

 

-49-

 

It shall not be necessary for any Act of the Holders
under this Section 902 to approve the particular form of any proposed amendment
or supplemental indenture, but it shall be sufficient if such Act approves the
substance thereof.

After an amendment or supplemental indenture under
this Section 902 becomes effective, the Company shall mail to each Holder a
notice briefly describing the amendment or supplemental indenture.

An amendment or 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.

SECTION 903.       Execution of
Supplemental Indentures.

 

The Trustee shall sign any supplemental indenture
authorized pursuant to this article if the amendment contained therein does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may,
but need not, sign such supplemental indenture.  In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying upon,
an Officers’ Certificate and an Opinion of Counsel stating that the execution
of such supplemental indenture is authorized or permitted by this Indenture.

SECTION 904.       Effect of
Supplemental Indentures.

 

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

SECTION 905.       Conformity
with Trust Indenture Act.

 

Every supplemental indenture executed pursuant to this
article shall conform to the requirements of the Trust Indenture Act as then in
effect.

SECTION 906.       Reference in
Securities to Supplemental Indentures.

 

Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to this article may,
and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture.  If the Company shall so determine, new
Securities of any series so modified as to conform, in the opinion of the
Trustee and the Company, to any such supplemental indenture may be pre-

 

-50-

 

pared and executed by the Company and authenticated
and delivered by the Trustee in exchange for Outstanding Securities of such
series.

ARTICLE TEN

 

COVENANTS

 

SECTION 1001.     Payment of
Principal, Premium and Interest.

 

The Company covenants and agrees for the benefit of
each series of Securities that it will duly and punctually pay the principal of
(and premium, if any) and interest on the Securities of that series in
accordance with the terms of the Securities and this Indenture.  At the option of the Company, payment of
principal (and premium, if any) and interest may be made by wire transfer or
(subject to collection) by check mailed to the address of the Person entitled
thereto at such address as shall appear in the Security Register.

SECTION 1002.     Maintenance
of Office or Agency.

 

The Company will maintain in each Place of Payment for
any series of Securities an office or agency where Securities of that series
may be presented or surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Securities
of that series and this Indenture may be served.  The Company hereby initially appoints the Trustee its office or
agency for each of said purposes.  The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

The Company may also from time to time designate one
or more other offices or agencies where the Securities of one or more series
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however, that no
such designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in each Place of Payment for
Securities of any series for such purposes. 
The Company 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.

SECTION 1003.     Money for
Securities; Payments to Be Held in Trust.

 

If the Company shall at any time act as its own Paying
Agent with respect to any series of Securities, it will, on or before each due
date of the principal of (and premium, if any) or interest on any of the
Securities of that series, segregate and hold in trust for the benefit of the 

 

-51-

 

Persons entitled thereto a sum sufficient to pay the
principal (and premium, if any) or interest so becoming due until such sums shall
be paid to such Persons or otherwise disposed of as herein provided and will
promptly notify the Trustee of its action or failure so to act.

Whenever the Company shall have one or more Paying
Agents for any series of Securities, it will, on or prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with a Paying Agent a sum sufficient to pay the principal (and
premium, if any) or interest 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.

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

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

(2)  give the Trustee notice of any default by
the Company (or any other obligor upon the Securities of that series) in the
making of any payment of principal (and premium, if any) or interest on the
Securities of that series; and

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

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

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal
of (and premium, if any) or interest on any Security of any series and
remaining unclaimed for two years after such principal (and premium, if any) or
interest has become due and payable shall be paid to the Company on Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look, only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to
make any such repayment, 

 

-52-

 

may at the expense of the Company cause to be mailed
or published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in the
City, County and State of New York, or both, notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such mailing or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

The Company shall have no obligation to make payment
of principal of (or premium, if any) or interest on any Security in immediately
available funds, except that if the Company shall have received original
payment for Securities in immediately available funds it shall make available
immediately available funds for payment of the principal of such Securities.

SECTION 1004.     Corporate
Existence.

 

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

SECTION 1005.     Maintenance
of Properties.

 

The Company will use its reasonable efforts to cause
all material properties used or useful in the conduct of its business to be
maintained and kept in good condition, repair and working order (subject to
wear and tear) and supplied with all necessary material equipment and will use
its reasonable efforts to cause to be made all necessary material repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times;
provided, however, that nothing in this section shall prevent the
Company from discontinuing the operation or maintenance of any of such
properties if such discontinuance is, in the judgment of the Company, desirable
in the conduct of its business and not disadvantageous in any material respect
to the Holders.

SECTION 1006.     Statement by
Officers as to Default.

 

The Company will deliver to the Trustee, within 120
days after the end of each fiscal year of the Company ending after the date
hereof, a certificate of the principal executive officer, principal financial
officer or principal accounting officer of the Company stating whether or not
to the best knowledge of the signers thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions of
this Indenture, and if the Company shall be in default, specifying all such
defaults and the nature and status thereof of which they may have knowledge.

 

-53-

 

SECTION 1007.     Waiver of
Certain Covenants.

 

The Company may omit in any particular instance to
comply with any term, provision or condition set forth in Section 1006 if
before or after the time for such compliance the Holders of at least a majority
in principal amount of the Outstanding Securities (taken together as one class)
shall, by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 1101.     Applicability
of Article.

 

Securities of any series which are redeemable before
their Stated Maturity shall be redeemable in accordance with their terms and
(except as otherwise specified as contemplated by Section 301 for Securities of
any series) in accordance with this article.

SECTION 1102.     Election to
Redeem; Notice to Trustee.

 

The election of the Company to redeem any Securities
shall be evidenced by a Board Resolution. 
In case of any redemption at the election of the Company of less than
all the Securities of any series, the Company shall, at least 45 days prior to
the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities of such series to be redeemed, such notice
to be accompanied by a written statement signed by an authorized officer of the
Company stating that no defaults in the payment of interest or Events of
Default with respect to the Securities of that series have occurred (which have
not been waived or cured).  In the case
of any redemption of Securities prior to the expiration of any restriction on
such redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee an Officers’ Certificate
evidencing compliance with such restriction.

SECTION 1103.     Selection by
Trustee of Securities to Be Redeemed.

 

If less than all the Securities of any series are to
be redeemed, the particular Securities to be redeemed shall be selected not
more than 60 days prior to the Redemption Date by the Trustee, from the
Outstanding Securities of such series not previously called for redemption, by
such method as the Trustee in its sole discretion shall deem fair and
appropriate and which may provide for the selection or redemption of portions
(equal to the minimum authorized denomination for Securities of that series or
any integral multiple thereof) of the principal amount of Secu-

 

-54-

 

rities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

The Trustee shall promptly notify the Company in
writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be
redeemed.

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

SECTION 1104.     Notice of
Redemption.

 

Notice of redemption shall be given by first-class
mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to
the Redemption Date, to each Holder of Securities to be redeemed, at his
address appearing in the Security Register. 
Any notice which is mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not such Holder
receives the notice.  Failure to give
notice by mail, or any defect in the notice to any such Holder in respect of
any Security, shall not affect the validity of the proceedings for the
redemption of any other Security.

All notices of redemption shall state:

(1)  the Redemption Date,

(2)  the Redemption Price and any accrued interest,

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

(4)  that on the Redemption Date the Redemption
Price and any accrued interest will become due and payable upon each such Security
to be redeemed together with accrued interest thereon and, if applicable, that
interest thereon will cease to accrue on and after said date,

(5)  the place or places where such Securities
are to be surrendered for payment of the Redemption Price and any accrued
interest,

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

(7)  the CUSIP number and, if applicable, the
ISIN number, of the Securities being redeemed.

 

-55-

 

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

SECTION 1105.     Deposit of
Redemption Price.

 

On or prior to any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting
as its own Paying Agent, segregate and hold in trust as provided in Section
1003) an amount of money, in funds immediately available on the due date,
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.

SECTION 1106.     Securities
Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid,
the Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified together with accrued
interest thereon, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. 
Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest to the Redemption Date; provided,however,
that installments of interest whose Stated Maturity is on the Redemption Date
shall be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

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

The Trustee shall not redeem any Securities of any series
pursuant to this article (unless all Outstanding Securities of such series are
to be redeemed) or mail or give any notice of redemption of Securities during
the continuance of an Event of Default hereunder known to the Trustee with
respect to such series, except that, where the mailing of notice of redemption
of any Securities shall theretofore have been made, the Trustee shall redeem or
cause to be redeemed such Securities, provided that it shall have received from
the Company a sum sufficient for such redemption.  Except as aforesaid, any moneys theretofore or thereafter received
by the Trustee shall, during the continuance of such Event of Default, be
deemed to have been collected under Article Five and held for the payment of
all such Securities of such series.  In
case such Event of Default shall have been waived as provided in Section 513 or
the default cured on or before the sixtieth day preceding the Redemption Date,
such moneys shall thereafter be applied in accordance with the provisions of
this article.

 

-56-

 

SECTION 1107.     Securities
Redeemed in Part.

 

Any Security which is to be redeemed only in part
shall be surrendered at a Place of Payment therefor (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or his attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Security without service charge, a new Security or Securities of the same
series, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Security so surrendered.

ARTICLE TWELVE

 

SINKING FUNDS

 

SECTION 1201.     Applicability
of Article.

 

The provisions of this article shall be applicable to
any sinking fund for the retirement of Securities of a series except as
otherwise specified as contemplated by Section 301 for Securities of such series.

The minimum amount of any sinking fund payment
provided for by the terms of Securities of any series is herein referred to as
a “mandatory sinking fund payment,” and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein referred
to as an “optional sinking fund payment.” 
If provided for by the terms of Securities of any series, the cash
amount of any sinking fund payment may be subject to reduction as provided in
Section 1202.  Each sinking fund
payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

SECTION 1202.     Satisfaction
of Sinking Fund Payments with Securities.

 

The Company (1) may deliver Outstanding Securities of
a series (other than any previously called for redemption) and (2) may apply as
credit Securities of a series which have been redeemed either at the election
of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms
of such series; provided that such Securities have not been previously
so credited.  Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

 

-57-

 

SECTION 1203.     Redemption of
Securities for Sinking Fund.

 

Not less than 60 days prior to each sinking fund payment
date for any series of Securities, the Company (1) will deliver to the Trustee
an Officers’ Certificate (A) stating that no defaults in the payment of
interest or Events of Default with respect to Securities of that series have
occurred (which have not been waived or cured), (B) specifying the amount of
the next ensuing sinking fund payment for that series pursuant to the terms of
Securities of that series, (C) stating whether or not the Company intends to
exercise its right, if any, to make an optional sinking fund payment with
respect to such series on the next ensuing sinking fund payment date and, if
so, specifying the amount of such optional sinking fund payment and
(D) specifying the portion of such sinking fund payment, if any, which is
to be satisfied by payment of cash and the portion thereof, if any, which is to
be satisfied by delivering and crediting Securities of that series pursuant to
Section 1202 and (2) will also deliver to the Trustee any Securities to be
so delivered.  Not less than 30 days
before each such sinking fund payment date the Trustee shall select the
Securities of such series to be redeemed upon such sinking fund payment date in
the manner specified in Section 1103 and cause notice of the redemption thereof
to be given in the name of and at the expense of the Company in the manner
provided in Section 1104.  Such notice
having been duly given, the redemption of such Securities shall be made upon
the terms and in the manner stated in Sections 1105, 1106 and 1107.  Failure of the Company, on or before any
such 60th day, to deliver such Officers’ Certificate and Securities specified
in this section, if any, shall not constitute a default but shall constitute,
on and as of such date, the irrevocable election of the Company (a) that
the mandatory sinking fund payment for such series due on the next succeeding
sinking fund payment date shall be paid entirely in cash without the option to
deliver or credit Securities of such series in respect thereof and
(b) that the Company will make no optional sinking fund payment with
respect to Securities of such series as provided in this article.

The Trustee shall not redeem or cause to be redeemed
any Security of a series with sinking fund moneys or mail any notice of redemption
of Securities of such series by operation of the sinking fund during the
continuance of a default in payment of interest on such Securities or of any
Event of Default with respect to such series except that, where the mailing of
notice of redemption of any Securities shall therefore have been made, the
Trustee shall redeem or cause to be redeemed such Securities, provided that it
shall have received from the Company a sum sufficient for such redemption.  Except as aforesaid, any moneys in the
sinking fund for such series at the time when any such default or Event of
Default shall occur, and any moneys thereafter paid into the sinking fund,
shall, during the continuance of such default or Event of Default, be deemed to
have been collected under Article Five and held for the payment of all such
Securities of such series.  In case such
Event of Default shall have been waived as provided in Section 513 or the
default cured on or before the 60th day preceding the sinking fund payment
date, such moneys shall thereafter be applied on the next succeeding sinking
fund payment date in accordance with this section to the redemption of such
Securities.

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

 

-58-

 

ARTICLE THIRTEEN

 

SUBORDINATION

 

SECTION 1301.     Agreement to
Subordinate.

 

(a)  The Company covenants and agrees, and each
Holder of Securities issued hereunder by such Holder’s acceptance thereof
likewise covenants and agrees, that (except as otherwise specified as
contemplated by Section 301 for Securities of any series) all Securities shall
be issued subject to the provisions of this article; and each Holder of a
Security, whether upon original issue or upon transfer or assignment thereof,
accepts and agrees to be bound by such provisions.

(b)  The payment by the Company of the principal
of, and interest on, the Securities issued hereunder shall, to the extent and
in the manner hereinafter set forth, be subordinated and junior in right of
payment to the prior payment in full of all Senior Indebtedness of the Company,
whether outstanding at the date of this Indenture or thereafter incurred.

(c)  No provision of this article shall prevent
the occurrence of any default or Event of Default hereunder.

SECTION 1302.     Default on
Senior Indebtedness.

 

(a)  No direct or indirect payment by or on
behalf of the Company of principal of, premium, if any, or interest on the
Securities, whether pursuant to the terms of the Securities or upon
acceleration, by way of repurchase, redemption, defeasance or otherwise, will
be made if, at the time of such payment, there exists a default in the payment
when due of all or any portion of the obligations under or in respect of any
Senior Indebtedness, whether at maturity, on account of mandatory redemption or
prepayment, acceleration or otherwise, and such default shall not have been cured
or waived or the benefits of this sentence waived by or on of the holders of
Senior Indebtedness.

(b)  In addition, during the continuance of any
non-payment default or non-payment event of default with respect to any Senior
Indebtedness pursuant to which the maturity thereof may be accelerated, and
upon receipt by the Trustee of written notice (a “Payment Blockage Notice”)
from a holder or holders of such Senior Indebtedness or the trustee or agent
acting on behalf of such Senior Indebtedness, then, unless and until such
default or event of default has been cured or waived or has ceased to exist or
such Senior Indebtedness has been discharged or repaid in full in cash, or the
requisite holders of such Senior Indebtedness have otherwise agreed in writing,
no payment of any kind or character with respect to any principal of or
interest on or distribution will be made by or on behalf of the Company on
account of or with respect to the 

 

-59-

 

Securities, during a period (a “Payment Blockage
Period”) commencing on the date of receipt of such Payment Blockage Notice by
the Trustee and ending 179 days thereafter.

Notwithstanding
anything herein to the contrary, (x) in no event will a Payment Blockage Period
extend beyond 179 days from the date the Payment Blockage Notice in respect
thereof was given and (y) there must be 180 days in any 360-day period during
which no Payment Blockage Period is in effect. 
Not more than one Payment Blockage Period may be commenced with respect
to the Securities during any period of 360 consecutive days.  No default or event of default that existed
or was continuing on the date of commencement of any Payment Blockage Period
with respect to the Senior Indebtedness initiating such Payment Blockage Period
may be, or be made, the basis for the commencement of any other Payment
Blockage Period by the holder or holders of such Senior Indebtedness or the
trustee or agent acting on behalf of such Senior Indebtedness, whether or not
within a period of 360 consecutive days, unless such default or event of
default has been cured or waived for a period of not less than 90 consecutive
days.

(c)  In the event that, notwithstanding the
foregoing, any payment shall be received by the Trustee when such payment is
prohibited by the preceding paragraph of this section, such payment shall be
held in trust for the benefit of, and shall be paid over or delivered to, the
holders of Senior Indebtedness or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments
evidencing such Senior Indebtedness may have been issued, as their respective interests
may appear, as calculated by the Company, to the extent necessary to pay such
Senior Indebtedness in full, in cash, after giving effect to any concurrent
payment or distribution to or for the benefit of the holders of such Senior
Indebtedness, before any payment or distribution is made to the Holders or to
the Trustee.

SECTION 1303.     Liquidation;
Dissolution; Bankruptcy.

 

(a)  Upon any distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
creditors upon any total or partial dissolution, winding-up, liquidation or
reorganization of the Company, whether voluntary or involuntary, assignment for
the benefit of creditors or marshalling of the Company’s assets, or in
bankruptcy, insolvency, receivership or other similar proceedings, whether
voluntary or involuntary, all principal, premium, if any, and interest due or
to become due to all Senior Indebtedness of the Company shall first be paid in
full in cash, or such payment duly provided for to the satisfaction of the
holders of the Senior Indebtedness, before the Holders are entitled to receive
or retain any payment; and upon any such dissolution or winding-up or
liquidation or reorganization, any payment by the Company, or distribution of assets
of the Company of any kind or character whether in cash, property or
securities, which the Holders or the Trustee would be entitled to receive from
the Company, except for the provisions of this article, shall be paid by the
Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent
or other Person making such payment or distribution, or by the Holders or by
the Trustee under this Indenture if received by them or it, directly to the
holders of Senior Indebtedness of the Company or their respective
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing 

 

-60-

 

such Senior Indebtedness may have been issued, as
their respective interests may appear, as calculated by the Company, to the
extent necessary to pay such Senior Indebtedness in full in cash, or such
payment duly provided for to the satisfaction of the holders of the Senior
Indebtedness, after giving effect to any concurrent payment or distribution to
or for the benefit of the holders of such Senior Indebtedness, before any
payment or distribution is made to the Holders or to the Trustee.

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

(c)  For purposes of this article, the words
“cash, property or securities” shall not be deemed to include shares of stock
of the Company as reorganized or readjusted, or securities of the Company or
any other corporation provided for by a plan of reorganization or readjustment,
the payment of which is subordinated at least to the extent provided in this
article with respect to the Securities to the payment of all Senior
Indebtedness of the Company that may at the time be outstanding; provided,
however, that (i) such Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment,
and (ii) the rights of the holders of such Senior Indebtedness are not,
without the consent of such holders, altered by such reorganization or
readjustment.  The amalgamation or
consolidation of the Company with, or the merger of the Company into, another
corporation or the liquidation or dissolution of the Company following the
conveyance or transfer of its properties or assets substantially as an
entirety, to another corporation upon the terms and conditions provided for in
Article Eight of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section 1303 if such
other corporation shall, as part of such amalgamation, consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article Eight of
this Indenture.  Nothing in Section 1302
or in this section shall apply to claims of, or payments to, the Trustee under
or pursuant to Section 607 of this Indenture.

(d)  If the Trustee or any Holder of Securities
does not file a proper claim or proof of debt in the form required in any
proceeding referred to above prior to 30 days before the expiration of the time
to file such claim in such proceeding, then the holder of any Senior Indebtedness
is hereby authorized, and has the right, to file an appropriate claim or claims
for or on behalf of such Holder of Securities.

 

-61-

 

SECTION 1304.     Subrogation.

 

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

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

(c)  Upon any payment or distribution of assets
of the Company referred to in this article, the Trustee, subject to the
provisions of Section 601 of this Indenture, and the Holders shall be entitled
to rely conclusively upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding-up, liquidation or
reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidation trustee, agent or other Person making such
payment or distribution, delivered to the Trustee or the Holders, for the
purposes of ascertaining the Persons entitled to participate in such
distribution, the holders of Senior Indebtedness and other indebtedness of the
Company the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this article.

SECTION 1305.     Trustee to
Effectuate Subordination.

 

Each Holder of Securities by such Holder’s acceptance
thereof authorizes and directs the Trustee on such Holder’s behalf to take such
action as may be necessary or appropriate 

 

-62-

 

to effectuate the subordination provided in this
article and appoints the Trustee such Holder’s attorney-in-fact for any and all
such purposes.

SECTION 1306.     Notice by the
Company.

 

(a)           The Company shall give prompt written
notice to a Responsible Officer of the Trustee of any fact known to the Company
that would prohibit the making of any payment of monies to or by the Trustee in
respect of the Securities pursuant to the provisions of this article.  Notwithstanding the provisions of this
article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts that would prohibit the
making of any payment of monies to or by the Trustee in respect of the
Securities pursuant to the provisions of this article, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a Holder or holders of Senior Indebtedness or from any
representative or trustee therefor; and before the receipt of any such written
notice, the Trustee, subject to the provisions of Section 601 of this
Indenture, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have
received the notice provided for in this section at least two Business Days
prior to the date upon which by the terms hereof any money may become payable
for any purpose (including, without limitation, the payment of the principal of
or interest on any Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purposes for which such money was
received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.

(b)  The Trustee, subject to the provisions of
Section 601 of this Indenture, shall be entitled to conclusively rely on the
delivery to it of a written notice by a Person representing himself to be a
holder of Senior Indebtedness of the Company (or a trustee or representative on
behalf of such holder), to establish that such notice has been given by a
holder of such Senior Indebtedness or a trustee or representative on behalf of
any such holder or holders.  In the
event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of such Senior
Indebtedness to participate in any payment or distribution pursuant to this
article, the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held
by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and any other facts pertinent to the rights of
such Person under this article and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

SECTION 1307.     Rights of the
Trustee; Holders of Senior Indebtedness.

 

(a)  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 other
holder of Senior Indebtedness, and nothing in this Indenture shall deprive the Trustee
of any of its rights as such holder.

 

-63-

 

(b)           With
respect to the holders of Senior Indebtedness of the Company, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this article and no implied covenants or
obligations with respect to the holders of such Senior Indebtedness shall be
read into this Indenture against the Trustee. 
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of such Senior Indebtedness and, subject to the provisions of Section 601 of
this Indenture, the Trustee shall not be liable to any holder of such Senior
Indebtedness if it shall pay over or deliver to Holders, the Company or any other
Person money or assets to which any holder of such Senior Indebtedness shall be
entitled by virtue of this article or otherwise.

SECTION 1308.     Subordination
May Not Be Impaired.

 

(a)  No right of any present or future holder of
any Senior Indebtedness of the Company to enforce subordination as herein
provided shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of the Company or by any act or failure to act, in
good faith, by any such holder, or by any noncompliance by the Company with the
terms, provisions and covenants of this Indenture, regardless of any knowledge
thereof that any such holder may have or otherwise be charged with.

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

(c)  Each present and future holder of Senior
Indebtedness shall be entitled to the benefit of the provisions of this article
notwithstanding that such holder is not a party to this Indenture.

SECTION 1309.     Article
Applicable to Paying Agents.

 

In case at any time any Paying Agent other than the
Trustee shall have been appointed by the Company and be then acting hereunder,
the term “Trustee” as used in this article shall in such case (unless the
context otherwise requires) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if
such Paying Agent were named in this article in addition to or in place of the
Trustee; provided, however, that this section shall not apply to
the Company or any Affiliate of the Company if it or 

 

-64-

 

such Affiliate acts as Paying Agent.

SECTION 1310.     Defeasance of
This Article.

 

Notwithstanding anything contained herein to the contrary,
payments from cash or the proceeds of United States Government Obligations held
in trust under Article Four hereof by the Trustee (or other qualifying trustee)
and which were deposited in accordance with the terms of Article Four hereof
and not in violation of Section 1302 hereof for the payment of principal of and
interest on the Securities shall not be subordinated to the prior payment of
any Senior Indebtedness or subject to the restrictions set forth in this
article, and none of the Holders shall be obligated to pay over any such amount
to the Company or any holder of Senior Indebtedness or any other creditor of
the Company.

SECTION 1311.     Subordination
Language to Be Included in Securities.

 

Each Security shall contain a subordination provision
which will be substantially in the following form:

“The Securities are subordinated in right of payment,
in the manner and to the extent set forth in the Indenture, to the prior
payment in full of all Senior Indebtedness (as defined in the Indenture, or as
set forth in one or more indentures supplemental hereto, a Board Resolution in
accordance with Section 301 of the Indenture or in this Security).  Each Holder by accepting a Security agrees
to such subordination and authorizes the Trustee to give it effect.”

 

-65-

 

IN WITNESS WHEREOF, ARCH CAPITAL GROUP LTD. has caused
this Indenture to be duly executed as a deed the day and year first before
written.

	
  ARCH CAPITAL GROUP
  LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  
	 
	
  Name:

  
	 
	
  Title:

  
			

 

 

IN WITNESS WHEREOF, the undersigned, being duly
authorized, has executed this Indenture as of the date first above written.

	
  [NAME OF TRUSTEE]

  
	
   

  
	
   

  
	
  By:

  	
   

  
	 
	
  Name:

  
	 
	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]