Document:

exv4w2

Exhibit 4.2

 

NABORS INDUSTRIES, INC.

as Issuer

and

NABORS INDUSTRIES LTD.,

as Guarantor

and

WILMINGTON TRUST COMPANY

as Trustee

and

CITIBANK, N.A.

as Securities Administrator

INDENTURE

Dated as of                     

SUBORDINATED DEBT SECURITIES

 

 

 

Reconciliation and tie between certain Sections

of this Indenture, dated as of                      and

Sections 310 through 318, inclusive, of

the Trust Indenture Act of 1939:

	 	 	 
	Trust Indenture Act Section	Indenture Section
	310 (a)(1)
	 	6.10
	(a)(2)
	 	6.10
	(a)(3)
	 	N/A
	(a)(4)
	 	N/A
	(a)(5)
	 	6.10
	(b)
	 	6.10
	(c)
	 	N/A
	311 (a)
	 	6.11
	(b)
	 	6.11
	(c)
	 	N/A
	312 (a)
	 	2.06
	(b)
	 	15.03
	(c)
	 	15.03
	313 (a)
	 	6.06
	(b)
	 	6.06
	(c)
	 	6.06
	(d)
	 	6.06
	314 (a)
	 	3.03
	(a)(4)
	 	3.04
	(b)
	 	N/A
	(c)(1)
	 	15.04
	(c)(2)
	 	15.04
	(c)(3)
	 	N/A
	(d)
	 	N/A
	(e)
	 	15.05
	315 (a)
	 	6.01
	(b)
	 	6.05
	(c)
	 	6.01
	(d)
	 	6.01
	(e)
	 	5.11
	316 (a)(last sentence)
	 	2.09
	(a)(1)(A)
	 	5.05
	(a)(1)(B)
	 	5.04
	(a)(2)
	 	N/A
	(b)
	 	5.07
	(c)
	 	N/A
	317 (a)(1)
	 	5.08
	(a)(2)
	 	5.09
	(b)
	 	2.05
	318 (a)
	 	15.01

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE ONE

	DEFINITIONS AND INCORPORATION BY REFERENCE

	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	SECTION 1.02. Other Definitions
	 	 	6	 
	SECTION 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	7	 
	SECTION 1.04. Rules of Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE TWO

	THE SECURITIES

	 
	 	 	 	 
	SECTION 2.01. Form and Dating
	 	 	8	 
	SECTION 2.02. Amount Unlimited; Issuable in Series
	 	 	8	 
	SECTION 2.03. Execution and Authentication
	 	 	11	 
	SECTION 2.04. Registrar and Paying Agent
	 	 	12	 
	SECTION 2.05. Paying Agent to Hold Money in Trust
	 	 	13	 
	SECTION 2.06. Holder Lists
	 	 	13	 
	SECTION 2.07. Transfer and Exchange
	 	 	13	 
	SECTION 2.08. Replacement Securities
	 	 	18	 
	SECTION 2.09. Outstanding Securities
	 	 	19	 
	SECTION 2.10. Temporary Securities
	 	 	19	 
	SECTION 2.11. Cancellation
	 	 	19	 
	SECTION 2.12. Defaulted Interest
	 	 	19	 
	SECTION 2.13. Persons Deemed Owners
	 	 	20	 
	SECTION 2.14. CUSIP Numbers
	 	 	20	 
	 
	 	 	 	 
	ARTICLE THREE

	COVENANTS

	 
	 	 	 	 
	SECTION 3.01. Payment of Securities
	 	 	20	 
	SECTION 3.02. Maintenance of Office or Agency
	 	 	20	 
	SECTION 3.03. SEC Reports; Financial Statements
	 	 	21	 
	SECTION 3.04. Compliance Certificate
	 	 	21	 
	SECTION 3.05. Corporate Existence
	 	 	21	 
	SECTION 3.06. Waiver of Stay, Extension or Usury Laws
	 	 	22	 
	SECTION 3.07. Payment of Additional Amounts
	 	 	22	 
	 
	 	 	 	 
	ARTICLE FOUR

	CONSOLIDATION, MERGER AND SALE

	 
	 	 	 	 
	SECTION 4.01. Limitation on Mergers and Consolidations of the Company
	 	 	24	 
	SECTION 4.02. Limitation on Mergers and Consolidations of any Guarantor
	 	 	24	 
	SECTION 4.03. Successors Substituted
	 	 	25	 

i 

 

	 	 	 	 	 

	ARTICLE FIVE

	DEFAULTS AND REMEDIES

	 
	 	 	 	 
	SECTION 5.01. Events of Default
	 	 	25	 
	SECTION 5.02. Acceleration
	 	 	27	 
	SECTION 5.03. Other Remedies
	 	 	28	 
	SECTION 5.04. Waiver of Existing Defaults
	 	 	28	 
	SECTION 5.05. Control by Majority
	 	 	28	 
	SECTION 5.06. Limitations on Suits
	 	 	29	 
	SECTION 5.07. Rights of Holders to Receive Payment
	 	 	29	 
	SECTION 5.08. Collection Suit by Trustee
	 	 	29	 
	SECTION 5.09. Trustee May File Proofs of Claim
	 	 	30	 
	SECTION 5.10. Priorities
	 	 	30	 
	SECTION 5.11. Undertaking for Costs
	 	 	30	 
	 
	 	 	 	 
	ARTICLE SIX

	TRUSTEE

	 
	 	 	 	 
	SECTION 6.01. Duties of Trustee
	 	 	31	 
	SECTION 6.02. Rights of Trustee
	 	 	32	 
	SECTION 6.03. Individual Rights of Trustee
	 	 	33	 
	SECTION 6.04. Trustee’s Disclaimer
	 	 	33	 
	SECTION 6.05. Notice of Defaults
	 	 	33	 
	SECTION 6.06. Reports by Trustee to Holders
	 	 	34	 
	SECTION 6.07. Compensation and Indemnity
	 	 	34	 
	SECTION 6.08. Replacement of Trustee
	 	 	35	 
	SECTION 6.09. Successor Trustee by Merger, etc.
	 	 	36	 
	SECTION 6.10. Eligibility; Disqualification
	 	 	36	 
	SECTION 6.11. Preferential Collection of Claims Against Company
	 	 	36	 
	 
	 	 	 	 
	ARTICLE SEVEN

	DISCHARGE OF INDENTURE, DEFEASANCE AND COVENANT DEFEASANCE

	 
	 	 	 	 
	SECTION 7.01. Satisfaction and Discharge of Indenture
	 	 	36	 
	SECTION 7.02. Legal Defeasance
	 	 	37	 
	SECTION 7.03. Covenant Defeasance
	 	 	39	 
	SECTION 7.04. U.S. Government Obligations
	 	 	40	 
	SECTION 7.05. Application of Trust Money
	 	 	40	 
	SECTION 7.06. Repayment to Company
	 	 	40	 
	SECTION 7.07. Reinstatement
	 	 	41	 
	 
	 	 	 	 
	ARTICLE EIGHT

	SUPPLEMENTAL INDENTURES

	 
	 	 	 	 
	SECTION 8.01. Without Consent of Holders
	 	 	41	 
	SECTION 8.02. With Consent of Holders
	 	 	43	 
	SECTION 8.03. Compliance with Trust Indenture Act
	 	 	45	 

ii 

 

	 	 	 	 	 

	SECTION 8.04. Revocation and Effect of Consents
	 	 	45	 
	SECTION 8.05. Notation on or Exchange of Securities
	 	 	45	 
	SECTION 8.06. Trustee and Securities Administrator to Sign Amendments, etc.
	 	 	46	 
	SECTION 8.07 Subordination Unimpaired
	 	 	46	 
	 
	 	 	 	 
	ARTICLE NINE

	GUARANTEES OF SECURITIES

	 
	 	 	 	 
	SECTION
9.01. Guarantees of Securities
	 	 	46	 
	 
	 	 	 	 
	ARTICLE TEN

	REDEMPTION

	 
	 	 	 	 
	SECTION 10.01. Applicability of Article
	 	 	47	 
	SECTION 10.02. Notices to Trustee
	 	 	47	 
	SECTION 10.03. Selection of Securities to be Redeemed
	 	 	47	 
	SECTION 10.04. Notices to Holders
	 	 	48	 
	SECTION 10.05. Effect of Notices of Redemption
	 	 	49	 
	SECTION 10.06. Deposit of Redemption Price
	 	 	49	 
	SECTION 10.07. Securities Redeemed in Part
	 	 	49	 
	SECTION 10.08. Optional Redemption
	 	 	49	 
	 
	 	 	 	 
	ARTICLE ELEVEN

	CONVERSION OF SECURITIES

	 
	 	 	 	 
	SECTION 11.01. Conversion of Securities
	 	 	49	 
	 
	 	 	 	 
	ARTICLE TWELVE

	SINKING FUNDS

	 
	 	 	 	 
	SECTION 12.01. Sinking Funds
	 	 	50	 
	 
	 	 	 	 
	ARTICLE THIRTEEN

	REPAYMENT AT OPTION OF HOLDERS

	 
	 	 	 	 
	SECTION 13.01. Repayment at Option of Holders
	 	 	50	 
	 
	 	 	 	 
	ARTICLE FOURTEEN

	SUBORDINATION OF SECURITIES

	 
	 	 	 	 
	SECTION 14.01. Securities Subordinated to Senior Debt
	 	 	50	 
	SECTION 14.02. Distribution on Dissolution, Liquidation and Reorganization; Subrogation of Securities
	 	 	51	 
	SECTION 14.03. Payments on Securities Permitted
	 	 	53	 
	SECTION 14.04. Authorization of Holders to Trustee to Effect Subordination
	 	 	53	 

iii 

 

	 	 	 	 	 

	SECTION 14.05. Notices to Trustee
	 	 	53	 
	SECTION 14.06. Trustee as a Holder of Senior Debt
	 	 	54	 
	SECTION 14.07. Modification of Terms of Senior Debt
	 	 	54	 
	 
	 	 	 	 
	ARTICLE FIFTEEN

	MISCELLANEOUS

	 
	 	 	 	 
	SECTION 15.01. Trust Indenture Act Controls
	 	 	54	 
	SECTION 15.02. Notices
	 	 	54	 
	SECTION 15.03. Communication by Holders with Other Holders
	 	 	56	 
	SECTION 15.04. Certificate and Opinion as to Conditions Precedent
	 	 	56	 
	SECTION 15.05. Statements Required in Certificate or Opinion
	 	 	56	 
	SECTION 15.06. Rules by Trustee and Agents
	 	 	57	 
	SECTION 15.07. Legal Holidays
	 	 	57	 
	SECTION 15.08. No Recourse Against Others
	 	 	57	 
	SECTION 15.09. Governing Law
	 	 	57	 
	SECTION 15.10. Consent to Jurisdiction and Service of Process
	 	 	57	 
	SECTION 15.11. Waiver of Immunity
	 	 	58	 
	SECTION 15.12. Judgment Currency
	 	 	58	 
	SECTION 15.13. No Adverse Interpretation of Other Agreements
	 	 	58	 
	SECTION 15.14. Successors
	 	 	58	 
	SECTION 15.15. Severability
	 	 	58	 
	SECTION 15.16. Counterpart Originals
	 	 	58	 
	SECTION 15.17. U.S.A. Patriot Act
	 	 	59	 
	SECTION 15.18. Force Majeure
	 	 	59	 
	SECTION 15.19. Table of Contents, Headings, etc.
	 	 	59	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT A            Form of Security
	 	 	A-1	 

iv 

 

     THIS INDENTURE dated as of                     , is among Nabors Industries, Inc., a Delaware
corporation (the “Company”), each Guarantor, if any, Wilmington Trust Company, a Delaware banking
corporation, as trustee (the “Trustee”) and Citibank, N.A., a national banking association, as
paying agent, registrar, security custodian, and authentication agent (the “Securities
Administrator”).

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

     This Indenture is subject to the provisions of the Trust Indenture Act that are required to be
a part of this Indenture and shall, to the extent applicable, be governed by such provisions.

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

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

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01. Definitions

     “Additional Securities” means any Securities issued under this Indenture in accordance with
Section 2.03, as part of the same series as an existing series to the extent outstanding.

     “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
purposes of this definition, “control” of a 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” shall have
meanings correlative to the foregoing. The Trustee may request and may conclusively rely upon an
Officers’ Certificate to determine whether any Person is an Affiliate of any specified Person.

     “Agent” means any Registrar or Paying Agent.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Security, the rules and procedures of the Depositary, Euroclear or
Clearstream that apply to such transfer or exchange.

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

1

 

     “Board of Directors” of any Person means the board of directors, board of managers (or other
comparable governing body) of such Person or any committee thereof duly authorized, with respect to
any particular matter, to act by or on behalf of the board of directors of such Person.

     “Business Day” means any day that is not a Legal Holiday.

     “Capital Stock” means (i) in the case of a corporation or a company, corporate stock or
shares; (ii) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock; (iii) in the
case of a partnership or limited liability company, partnership or membership interests (whether
general or limited); and (iv) any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person.

     “Clearstream” means Clearstream Banking, société anonyme or any successor securities clearing
agency.

     “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute.

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

     “Corporate Trust Office” means (i) with respect to the Trustee, the office at which this
Indenture shall be principally administered, which office shall initially be located at the address
of the Trustee specified in Section 15.02 and may be located at such other address as the Trustee
may give notice to the Company, the Holders and the Securities Administrator or such other address
as a successor Trustee may designate from time to time by notice to the Company, the Holders and
the Securities Administrator, and (ii) with respect to the Securities Administrator, the office at
which this Indenture shall be principally administered, which office shall initially be located at
the address of the Securities Administrator specified in Section 15.02 and may be located at such
other address as the Securities Administrator may give notice to the Company, the Holders, the
Trustee or such other address as a successor Securities Administrator may designate from time to
time by notice to the Company, the Holders and the Trustee.

     “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

     “Debt” means any obligation created or assumed by any Person for the repayment of money
borrowed and any purchase money obligations created or assumed by such Person and any guarantee of
the foregoing.

     “Default” means any event, act or condition that is, or after notice or the passage of time or
both would be, an Event of Default.

     “Definitive Security” means a certificated Security registered in the name of the Holder
thereof and issued in accordance with Section 2.07, substantially in the form of Exhibit A
hereto,

2

 

except that such Security shall not bear the Global Security Legend and shall not have the
“Schedule of Exchanges of Securities” attached thereto.

     “Depositary” means The Depository Trust Company and its successors.

     “Discount at Issue 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.

     “Euroclear” means Euroclear Bank N.V./S.A. or any successor securities clearance agency.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute.

     “Floating or Adjustable Rate Provision” means a formula or provision, specified in or pursuant
to a resolution of the Board of Directors of the Company, provided for in an Officers’ Certificate
or Issuer Order or a supplemental Indenture, providing for the determination, whether pursuant to
objective factors or pursuant to the sole discretion of any Person (including the Company or one or
more officer designees thereof), and periodic adjustment of the interest rate borne by a Floating
or Adjustable Rate Security.

     “Floating or Adjustable Rate Security” means any Security which provides for interest thereon
at a periodic rate that may vary from time to time over the term thereof in accordance with a
Floating or Adjustable Rate Provision.

     “Foreign Currency” means a currency used by the government of a country other than the United
States of America.

     “GAAP” means generally accepted accounting principles in the United States of America, as in
effect from time to time.

     “Global Security” means a permanent global security substantially in the form of
Exhibit A attached hereto that bears the Global Security Legend and that has the “Schedule
of Exchanges of Securities” attached thereto and that is deposited with or on behalf of and
registered in the name of the Depositary or its nominee.

     “Global Security Legend” means the legend set forth in Section 2.07(f) which is required to be
placed on all global securities issued under this Indenture.

     “Guarantor” means NIL and/or any other Person to the extent that any of such Persons have
guaranteed any of the Securities pursuant to Article Nine until a successor Person shall have
assumed the obligations of NIL pursuant to the applicable provisions of the Indenture, and
thereafter “Guarantor” shall mean such successor Person(s).

     “Holder” means a Person in whose name a Security is registered on the Registrar’s books.

3

 

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more supplemental indentures entered into pursuant to the
applicable provisions of this instrument, including, for all purposes of this instrument, and any
such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part
of and govern this instrument and any such supplemental indenture, respectively. The term
“Indenture” shall also include the terms of particular series of Securities established as
contemplated by Section 2.02.

     “Indirect Participant” means a Person who holds a beneficial interest in a Global Security
through a Participant.

     “Interest Payment Date” has the meaning assigned to such term in the applicable Securities.

     “Issue Date” means the first date on which the Securities are issued under this Indenture.

     “Issuer Order” means a written request or order signed in the name of the Company by (i) any
single Officer of the Company, or (ii) any Person designated in an Issuer Order of the Company
previously delivered to the Trustee for Securities of any series by any Officer of the Company and
delivered to the Trustee for Securities of any series.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in any of
New York, New York, Houston, Texas or a place of payment are authorized or obligated by law,
regulation or executive order to remain closed.

     “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, by declaration of acceleration, call for redemption or otherwise.

     “NIL” means Nabors Industries Ltd., a Bermuda exempted company.

     “Officer” means the Chairman of the Board of Directors, the Chief Executive Officer, the
President, any Vice Chairman of the Board of Directors, any Vice President (including any Vice
President, whether or not designated by a number or a word or words added before or after the title
“Vice President”), the Chief Financial Officer, the Chief Accounting Officer, the General Counsel,
the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Assistant Secretary of
a Person.

     “Officers’ Certificate” means a certificate signed by two Officers of a Person, one of who
must be the principal executive officer, the principal financial officer, or the principal
accounting officer of the Person and that complies with Section 15.04 and Section 15.05 of this
Indenture and is delivered to the Trustee and Securities Administrator, as applicable.

     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee or Securities Administrator, as applicable, and that complies with Section 15.04 and
Section 15.05 of this Indenture. Such counsel may be an employee of or counsel to the Company, the
Guarantor, the Trustee or the Securities Administrator.

4

 

     “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to
The Depository Trust Company, shall include Euroclear and Clearstream).

     “Paying Agent” means the Securities Administrator.

     “Person” means any individual, corporation, limited liability company, limited or general
partnership, joint venture, incorporated or unincorporated association, joint-stock company, trust,
unincorporated organization or government or other agency or political subdivision thereof or other
entity of any kind.

     “PIK Securities” means any series of Securities where interest is payable, at the election of
the Company or a Holder of such Security, in additional Securities.

     “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” means the price at which the Securities may be redeemed, as set forth in
the form of Securities.

     “Registrar” means the Securities Administrator.

     “Responsible Officer” means, when used with respect to the Trustee and the Securities
Administrator, any officer assigned by each of the Trustee and Securities Administrator to
administer corporate trust matters or to whom any corporate trust matter is referred because of
such person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means debentures, notes or other evidences of indebtedness issued from time to
time, in one or more series under this Indenture and includes Additional Securities.

     “Securities Act” means the Securities Act of 1933, as amended, and any successor statute.

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

     “Securities Custodian” means the Securities Administrator, as custodian on behalf of the
Depositary with respect to the Securities in global form, or any successor entity thereto.

     “Senior Debt” means (i) all Debt of the Company, whether currently outstanding or hereafter
issued, unless by the terms of the instrument creating or evidencing such Debt, it is provided that
such Debt is not superior in right of payment to the Securities, and (ii) any modifications,
refunding, deferrals, renewals or extensions of any such Debt or securities, notes

5

 

or other evidence of Debt issued in exchange for such Debt; provided that in no such
event shall “Senior Debt” include (x) Debt of the Company owed or owing to any Subsidiary of the
Company or any officer, director or employee of the Company or any Subsidiary of the Company, (y)
Debt to trade creditors or (z) any liability for taxes owed or owing by the Company.

     “Stated Maturity” means, with respect to any Security, the date specified in such Security as
the fixed date on which the principal of such Security is due and payable.

     “Subsidiary” means, with respect to any Person, (i) any corporation, association or other
business entity (other than a partnership, joint venture or limited liability company) of which
more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or trustees thereof
is at the time of determination owned or controlled, directly or indirectly, by such first Person
or one or more of the other Subsidiaries of such first Person or a combination thereof and (ii) any
partnership, joint venture or limited liability company of which (x) more than 50% of the capital
accounts, distribution rights, total equity and voting interests or general and limited partnership
interests, as applicable, are owned or controlled, directly or indirectly, by such first Person or
one or more of the other Subsidiaries of such first Person or a combination thereof, whether in the
form of membership, general, special or limited partnership interests or otherwise, (y) such first
Person or any of the Subsidiaries of such first Person is a controlling general partner or
otherwise controls such entity and (z) such entity is consolidated in the consolidated financial
statements of such first Person in accordance with GAAP.

     “Taxes” means any tax, duty, levy, impost, assessment or other governmental charge of whatever
nature imposed or levied by or on behalf of the Government of Bermuda or by an authority or agency
therein or thereof having the power to tax, including any interest, penalties or other charges in
respect thereof.

     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended (15 U.S.C.
Sections 77aaa-77bbbb), as in effect on the Issue Date, except as provided in Section 8.03.

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

     “Uniform Commercial Code” means the Uniform Commercial Code as in effect in the State of New
York from time to time.

     “U.S. Government Obligations” means nonredeemable direct obligations (or certificates
representing an ownership interest in such obligations) of the United States of America for the
payment of which the full faith and credit of the United States of America is pledged.

          SECTION 1.02. Other Definitions.

6

 

	 	 	 
	Term	 	Defined in Section
	“Additional Amounts”

	 	Section 3.07
	“Authorized Agent”

	 	Section 15.10
	“Covenant Defeasance”

	 	Section 7.03
	“Event of Default”

	 	Section 5.01
	“Guaranteed Securities”

	 	Section 9.03(a)
	“Guarantees”

	 	Section 9.03(a)
	“Indenture Obligations”

	 	Section 9.03(a)
	“Judgment Currency”

	 	Section 15.12
	“Notice of Default”

	 	Section 5.01(iii)
	“Payment Blockage Notice”

	 	Section 14.01
	“Payment Blockage Period”

	 	Section 14.01
	“Paying Agent”

	 	Section 2.04
	“Registrar”

	 	Section 2.04
	“Senior Nonmonetary Default”

	 	Section 14.01
	“Territory”

	 	Section 3.07

          SECTION 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, such provision is incorporated by reference in and made a part of
this Indenture. The following TIA terms used in this Indenture have the following meanings:

     “commission” means the SEC;

     “indenture securities” means the Securities;

     “indenture security holder” means a Holder;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the indenture securities means the Company and any Guarantor (if applicable).

     All other terms used in this Indenture, and not otherwise defined herein, that are defined by
the TIA, defined by a TIA reference to another statute or defined by an SEC rule under the TIA have
the meanings so assigned to them. All references in this Indenture to “Sections” or “Articles” are
to Sections or Articles, as applicable, of this Indenture, unless otherwise expressly indicated.

          SECTION 1.04. Rules of Construction. Unless the context otherwise requires: (1) a term has
the meaning assigned to it; (2) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP; (3) “or” is not exclusive; (4) words in the singular include the
plural, and in the plural include the singular; (5) words implying any gender shall apply to all
genders; (6) the term “merger” includes a statutory compulsory share

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exchange and a conversion of a corporation into a limited liability company, a partnership or
other entity and vice versa and (7) provisions apply to successive events and transactions.

ARTICLE TWO

THE SECURITIES

          SECTION 2.01. Form and Dating.

          (a) General. The Securities, any notations thereon relating to the Guarantees and the
Trustee’s certificate of authentication shall be substantially in the form of Exhibit A to
this Indenture, the terms of which are hereby incorporated into this Indenture, or in such other
form or forms as shall be established by or pursuant to one or more resolutions of the Board of
Directors of the Company, provided for in an Officers’ Certificate or Issuer Order or in one or
more indentures supplemental to this Indenture, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by this Indenture, and
may have such notations, legends or endorsements required by law, securities exchange rule, the
Depositary, any Agent, authenticating agent, conversion agent or any other agent with respect to
the Securities of the series, the Company’s certificate of incorporation, bylaws, agreements to
which the Company is subject, if any, or usage, as may be determined by the officers executing such
Securities and the Guarantee (if applicable), as evidenced by their execution thereof. If the form
of Securities of any series is established by action taken pursuant to a resolution of the Board of
Directors of the Company, a copy of an appropriate record of such action shall be certified by the
Corporate Secretary or an Assistant Corporate Secretary of the Company and delivered to the Trustee
at or prior to the authentication and delivery of such Securities.

          (b) Global Securities. Securities issued in global form shall include the Global Security
Legend contained in Exhibit A and the Schedule of Exchanges of Interests in the Global
Security attached thereto. Securities issued in definitive form shall not include the Global
Security Legend contained in Exhibit A or the Schedule of Exchanges of Interests in the
Global Security attached thereto. Each Global Security shall represent such of the outstanding
Securities as shall be specified therein, and each shall provide that it shall represent the
aggregate principal amount of outstanding Securities from time to time endorsed thereon and that
the aggregate principal amount of outstanding Securities represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of
a Global Security to reflect the amount of any increase or decrease in the aggregate principal
amount of outstanding Securities represented thereby shall be made by the Trustee or the Securities
Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder
thereof as required by Section 2.07.

          (c) Definitive Securities. Notwithstanding any other provision of this Article Two, any
issuance of Definitive Securities shall be at the Company’s discretion, except in the specific
circumstances set forth in Section 2.07(a).

          SECTION 2.02. 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. Prior to the issuance of Securities of any series,
there shall be established in or pursuant to one or more resolutions of the Board of

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Directors of the Company, provided for in an Officers’ Certificate or Issuer Order or
established in one or more indentures supplemental hereto:

          (a) the title of the Securities of the series (which shall distinguish the Securities of the
series from Securities of any other series);

          (b) 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
and except for any Securities which are deemed never to have been authenticated and delivered
hereunder);

          (c) the Person to whom any interest on a Security of the series shall be payable, if other
than the Person in whose name that Security is registered at the close of business on the record
date for such interest;

          (d) the date or dates, or the method or methods (and related procedures) by which such date or
dates will be determined or extended, on which the principal of the Securities of the series is
payable;

          (e) whether the series of Securities will be issued in combination with other securities
registered under the registration statement relating to the series of Securities;

          (f) whether the Securities of the series will be subject to optional redemption or purchase at
the option of the holders thereof or the Company or required to be redeemed or purchased upon the
occurrence of certain events, including without limitation a change of control, and the terms of
any such redemption or purchase;

          (g) the rate or rates at which the Securities of the series shall bear interest, if any, or
the Floating or Adjustable Rate Provision pursuant to which such rates shall be determined, the
date or dates from which such interest shall accrue, the Interest Payment Dates on which any such
interest shall be payable and the record date for any interest payable on any Interest Payment
Date;

          (h) whether the Securities of the series are to be secured and the extent of such security, if
applicable;

          (i) the place or places where the principal of (and premium, if any) and interest, if any, on
Securities of the series shall be payable;

          (j) if applicable, the period or periods within which, the price or prices at which (including
premium, if any) and the terms and conditions upon which Securities of the series shall be
redeemed, in whole or in part, at the option of the Company pursuant to a sinking fund or
otherwise;

          (k) 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

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conditions upon which Securities of the series shall be redeemed or purchased, in whole or in
part, pursuant to such obligation;

          (l) if applicable, the terms of any right to convert or exchange Securities of the series into
any securities or property of the Company or other issuers;

          (m) if other than denominations of $2,000 and any integral multiples of $1,000 in excess
thereof (or the equivalent thereof in one or more Foreign Currencies, currency units or composite
currencies), the denominations in which Securities of the series shall be issuable;

          (n) if the amount of payments of principal of (or premium, if any) or interest, if any, on any
Securities of the series may be determined with reference to one or more indices, the manner in
which such amounts shall be determined;

          (o) if other than currency of the United States, one or more Foreign Currencies, currency
units or composite currencies in which the Securities of the series are to be denominated;

          (p) if other than the coin or currency in which the Securities of the series are denominated,
the coin or currency in which payment of the principal of (and premium, if any) and interest, if
any, on the Securities of the series shall be payable;

          (q) the price or prices (expressed as a percentage of the principal amount thereof) at which
the Securities will be issued and, if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 5.02 or provable under any applicable
federal or state bankruptcy or similar law pursuant to Section 5.03;

          (r) the Depositary or Depositaries for the Global Security or Global Securities and any
circumstance other than those set forth in Section 2.07 in which any such Global Security may be
transferred to, and registered and exchanged for Securities registered in the name of, a Person
other than the Depositary for such Global Security or a nominee thereof and in which any such
transfer may be registered or, if the Securities of the series are not to be issued in the form of
one or more Global Securities, the terms of any Securities to be issued in the form of Definitive
Securities;

          (s) whether the Securities are to be issued as Discount at Issue Securities;

          (t) whether the interest, if any, on the Securities is to be payable, at the election of the
Company or a holder thereof, in cash or in PIK Securities and the period or periods within which,
and the terms and conditions upon which, such election may be made;

          (u) any other event or events of default applicable with respect to the Securities of the
series in addition to those provided in Section 5.01;

          (v) any other covenant or warranty included for the benefit of Securities of the series in
addition to (and not inconsistent with) those included in this Indenture for the benefit of
Securities of all series, or any other covenant or warranty included for the benefit of Securities
of

10

 

the series in lieu of any covenant or warranty included in this Indenture for the benefit of
Securities of all series, or any provision that any covenant or warranty included in this Indenture
for the benefit of Securities of all series shall not be for the benefit of Securities of the
series, or any combination of such covenants, warranties or provisions;

          (w) any restriction or condition on the transferability of the Securities of the series;

          (x) any Agent, authenticating agent, conversion agent or any other agents with respect to the
Securities of the series;

          (y) whether the Securities of the series shall have the benefits of any Guarantee and, if so,
whether such Guarantee will be by NIL only or by one or more of NIL and/or any other Guarantor
jointly and severally and the terms and provisions applicable to any
such Guarantee; and

          (z) 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 one or more resolutions of the Board of
Directors of the Company, any Officers’ Certificate or Issuer Order referred to above or in any
such indenture supplemental hereto.

     If any of the terms of the series are established by action taken pursuant to one or more
resolutions of the Board of Directors of the Company, an Officers’ Certificate or Issuer Order, a
copy of such action shall be delivered to the Trustee and Securities Administrator.

          SECTION 2.03. Execution and Authentication. One Officer of the Company shall sign the
Securities on behalf of the Company by manual or facsimile signature. The Company’s seal may be
(but shall not be required to be) impressed, affixed, imprinted or reproduced on the Securities and
may be in facsimile form.

     If an Officer of the Company whose signature is on this Indenture or a Security no longer
holds that office at the time the Trustee authenticates such Security or at any time thereafter,
the Security shall be valid nevertheless.

     A Security shall not be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose until authenticated by the manual signature of an authorized signatory of the
Trustee, which signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.

     The Trustee shall authenticate and deliver Securities of any series executed by the Company
and delivered to the Trustee for authentication along with an Issuer Order. Such Issuer Order
shall specify the amount of the Securities to be authenticated and the date on which the issue of
Securities is to be authenticated and either detail or attach the information from Section 2.02.
The Company may issue Additional Securities under this Indenture. In authenticating such
Securities, the Trustee shall receive, and shall be entitled to conclusively rely upon, an Opinion
of Counsel substantially to the effect that:

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          (a) if the form of such Securities has been established by or pursuant to one or more
resolutions of the Board of Directors of the Company, provided for in an Officers’ Certificate or
Issuer Order or in one or more indentures supplemental to this Indenture, that such form has been
established in conformity with the provisions of this Indenture; and

          (b) 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 transfer, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors’ rights and to general equity
principles.

     The aggregate principal amount of Securities outstanding at any time for any series of
Securities may not exceed the aggregate principal amount of Securities authorized for issuance by
the Company pursuant to the Issuer Order for that series, except for the issuance of additional
Securities with respect to PIK Securities and as provided in Section 2.09. Subject to the
foregoing, the aggregate principal amount of Securities that may be issued under this Indenture
shall not be limited.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. Unless limited by the terms of such appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as an Agent to deal with the Company, the Guarantor or any of their respective
Affiliates.

     The Trustee initially appoints the Securities Administrator as the authenticating agent and
the Company hereby accepts such appointment.

          SECTION 2.04. Registrar and Paying Agent. The Company shall maintain in the continental
United States an office or agency where Securities may be presented for registration of transfer or
exchange (“Registrar”) and an office or agency where Securities may be presented for payment
(“Paying Agent”). The Registrar shall keep a register of the Securities and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any
additional paying agent.

     The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture. The agreement shall implement the provisions of this Indenture
that relate to such Agent. The Company shall notify the Trustee of the name and address of any
Agent not a party to this Indenture. The Company may change any Paying Agent or Registrar without
notice to any Holder. If the Company fails to appoint or maintain another entity as Registrar or
Paying Agent, the Trustee shall act as such. The Guarantor, if any, or any of its Subsidiaries may
act as Paying Agent or Registrar.

     The Company initially appoints the Securities Administrator as Registrar and Paying Agent for
the Securities at its corporate trust office. The place of payment with respect to the

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Securities, in addition to the Corporate Trust Office of the Trustee, shall be The City of New
York, and the Company hereby appoints the Securities Administrator as its Paying Agent in The City
of New York, at its corporate trust office in such city, as specified in Section 15.02, the
intention of the Company being that the Securities shall at all times be payable in The City of New
York.

     The immunities, protections and exculpations available to the Trustee under this Indenture
shall also be available to the Securities Administrator, each Agent, authenticating agent, and the
Company’s obligations under Section 6.07 to compensate and indemnify the Trustee shall extend
likewise to the Securities Administrator, each Agent and authenticating agent.

     The Company initially appoints The Depository Trust Company to act as Depositary with respect
to each Global Security.

          SECTION 2.05. Paying Agent to Hold Money in Trust. The Company shall require each Paying
Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the
benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal
of or premium, if any, Additional Amounts, if any, or interest, if any, on the Securities, whether
such money shall have been paid to it by the Company or any Guarantor, and will notify the Trustee
in writing of any default by the Company or any Guarantor in making any such payment. While any
such default continues, the Trustee may require a Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. The Company at any time may require a Paying Agent
to pay all money held by it to the Trustee and to account for any funds disbursed. Upon payment
over to the Trustee and upon accounting for any funds disbursed, the Paying Agent (if other than
the Company) shall have no further liability for the money. If the Company or a Subsidiary of the
Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit
of the Holders all money held by it as Paying Agent.

          SECTION 2.06. Holder Lists. The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of Holders and shall
otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least seven Business Days before each Interest Payment Date, and at such
other times as the Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Holders, and the Company shall
otherwise comply with TIA Section 312(a).

          SECTION 2.07. Transfer and Exchange.

          (a) Transfer and Exchange of Global Securities. A Global Security may not be transferred as a
whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to
the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to
a successor Depositary or a nominee of such successor Depositary. Global Securities also may be
exchanged or replaced, in whole, as provided in Section 2.08. Owners of beneficial interests in
Global Securities shall not be entitled to receive Definitive Securities unless:

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     (i) the Company delivers to the Trustee and the Registrar notice from the
Depositary that it is unwilling or unable to continue to act as Depositary or that
it is no longer a clearing agency registered under the Exchange Act and, in either
case, a successor Depositary is not appointed by the Company within 90 days;

     (ii) there has occurred and is continuing an Event of Default and the
Depositary notifies the Trustee of its decision to exchange the Global Securities
for Definitive Securities; or

     (iii) any such owner requests (through a Participant or an Indirect
Participant) an exchange of its beneficial interest in a Global Security for a
Definitive Security, and the Depositary gives the Trustee and the Registrar, in
accordance with the Applicable Procedures, at least 20 days’ prior notice of the
request.

Upon the occurrence of any of the events in clause (i), (ii) or (iii) above, Definitive Securities
shall be issued in such names and authorized denominations as the Depositary shall instruct the
Trustee and the Registrar in accordance with the Applicable Procedures. Neither the Company, the
Guarantor, if any, nor the Trustee or the Registrar will be liable for any delay by the Depositary
in identifying the owners of beneficial interests in a Global Security, and each of the Company,
the Guarantor, the Trustee and the Registrar may conclusively rely on, and will be protected in
relying on, instructions from the Depository for all purposes of this Indenture.

          (b) Transfer and Exchange of Beneficial Interests in the Global Securities. The transfer and
exchange of beneficial interests in the Global Securities shall be effected through the Depositary,
in accordance with the provisions of this Indenture and the Applicable Procedures. Transfers of
beneficial interests in the Global Securities also shall require compliance with either
subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following
provisions of this Section 2.07, as applicable:

     (i) Transfer of Beneficial Interests in the Same Global Security. Beneficial
interests in any Global Security may be transferred to Persons who take delivery
thereof in the form of a beneficial interest in such Global Security. No written
orders or instructions shall be required to be delivered to the Registrar to effect
such transfers.

     (ii) All Other Transfers and Exchanges of Beneficial Interests in Global
Securities. In connection with all transfers and exchanges of beneficial interests
that are not subject to (i) above, the transferor of such beneficial interest must
deliver to the Registrar either:

     (A) (i) a written order from a Participant or an Indirect Participant given to
the Depositary in accordance with the Applicable Procedures directing the Depositary
to credit or cause to be credited a beneficial interest in another Global Security
in an amount equal to the beneficial interest to be transferred or exchanged; and

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          (ii) instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase; or

     (B) (i) a written order from a Participant or an Indirect Participant given to
the Depositary in accordance with the Applicable Procedures directing the Depositary
to cause to be issued a Definitive Security in an amount equal to the beneficial
interest to be transferred or exchanged; and

          (ii) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Security shall be
registered to effect the transfer or exchange referred to in Section
2.07(b)(ii)(B)(i) above.

Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in
Global Securities contained in this Indenture, or the Securities or otherwise applicable under the
Securities Act, the principal amount of each relevant Global Security shall be adjusted pursuant to
Section 2.07(g).

          (c) If any holder of a beneficial interest in Global Security proposes to exchange such
beneficial interest for a Definitive Security or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of a Definitive Security, then, upon satisfaction of the
conditions set forth in Section 2.07(b)(ii)(B), the Registrar shall cause the aggregate principal
amount of the applicable Global Security to be reduced accordingly pursuant to Section 2.07(g), and
the Company shall execute and the Trustee shall authenticate and deliver to the Person designated
in the instructions a Definitive Security in the appropriate principal amount. Any Definitive
Security issued in exchange for a beneficial interest pursuant to this Section 2.07(c) shall be
registered in such name or names and in such authorized denomination or denominations as the holder
of such beneficial interest shall instruct the Registrar through instructions from the Depositary
and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Securities
to the Persons in whose names such Securities are so registered.

          (d) A Holder of a Definitive Security may exchange such Security for a beneficial interest in
a Global Security or transfer such Definitive Security to a Person who takes delivery thereof in
the form of a beneficial interest in a Global Security at any time, in each case in accordance with
the Applicable Procedures. Upon receipt of a request for such an exchange or transfer, the Trustee
shall cancel the applicable Definitive Security and the Registrar shall increase or cause to be
increased the aggregate principal amount of one of the Global Securities.

          (e) A Holder of Definitive Securities may transfer such Securities to a Person who takes
delivery thereof in the form of a Definitive Security. Upon receipt by the Registrar of a request
by a Holder of Definitive Securities to register a transfer or exchange of Definitive Securities
and the presentation or surrender to the Registrar of such Definitive Securities duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or by its attorney duly authorized in writing, the Registrar shall register
the Definitive Security pursuant to the instructions from the Holder thereof.

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          (f) Global Security Legend. A substantially similar form of the following legend shall appear
on the face of all Global Securities issued under this Indenture unless specifically stated
otherwise in the applicable provisions of this Indenture:

     THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE REGISTRAR MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE
BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE INDENTURE AND (III) THIS GLOBAL
SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE INDENTURE.

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY 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 MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH
OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

          (g) Cancellation and/or Adjustment of Global Securities. At such time as all beneficial
interests in a particular Global Security have been exchanged for Definitive Securities or a
particular Global Security has been redeemed, repurchased or canceled in whole and not in part,
each such Global Security shall be returned to or retained and canceled by the Trustee in
accordance with Section 2.11. At any time prior to such cancellation, if any beneficial interest
in a Global Security is exchanged for or transferred to a Person who will take delivery thereof in
the form of a beneficial interest in another Global Security or for Definitive Securities, the

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principal amount of Securities represented by such Global Security shall be reduced
accordingly and an endorsement shall be made on such Global Security by the Trustee or by the
Securities Custodian at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Security, such other Global Security
shall be increased accordingly and an endorsement shall be made on such Global Security by the
Trustee or by the Securities Custodian at the direction of the Trustee to reflect such increase.

          (h) General Provisions Relating to Transfers and Exchanges.

     (i) To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Global Securities and Definitive
Securities upon the Company’s order or at the Registrar’s request.

     (ii) No service charge shall be made to a holder of a beneficial interest in a
Global Security or to a Holder of a Definitive Security for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any transfer tax or similar governmental charge or other fee required by law
and payable in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchange or transfer pursuant to Section 2.10,
Section 8.05 and Section 10.07).

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

     (iv) None of the Company, the Trustee or the Registrar shall be required (A) to
issue, to register the transfer of or to exchange any Securities during a period
beginning at the opening of business 15 days before the day of mailing of a notice
of redemption under Section 10.04 and ending at the close of business on such day or
(B) to register the transfer of or to exchange any Securities so selected for
redemption in whole or in part, except the unredeemed portion of any Security being
redeemed in part.

     (v) Prior to the due presentation for registration of transfer of any Security,
the Company, the Guarantor, if any, the Trustee, the Paying Agent or the Registrar
may deem and treat the Person in whose name a Security is registered as the absolute
owner of such Security for the purpose of receiving any payment on such Security and
for all other purposes whatsoever, whether or not such Security is overdue, and none
of the Company, the Guarantor, if any, the Trustee, the Paying Agent or the
Registrar shall be affected by notice to the contrary.

     (vi) The Trustee shall authenticate Global Securities and Definitive Securities
upon receipt of an Issuer Order and in accordance with the other provisions of
Section 2.03 to the extent applicable.

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     (vii) All certifications, certificates and Opinions of Counsel required to be
submitted to the Registrar pursuant to this Section 2.07 to effect a registration of
transfer or exchange may be submitted by facsimile.

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

     (ix) Neither the Trustee nor any Agent shall have any responsibility for any
actions taken or not taken by the Depositary.

          SECTION 2.08. Replacement Securities. If a mutilated Security is surrendered to the Registrar
or if the Holder of a Security claims that the Security has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement Security if the
requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Holder (a)
satisfies the Company or the Trustee within a reasonable time after such Holder has notice of such
loss, destruction or wrongful taking and the Registrar does not register a transfer prior to
receiving such notification, (b) makes such request to the Company or Trustee prior to the Security
being acquired by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code
(a “protected purchaser”) and (c) satisfies any other reasonable requirements of the Trustee. If
required by the Trustee or the Company, such Holder must furnish an indemnity bond that is
sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee, any
Agent or any authenticating agent from any loss which any of them may suffer if a Security is
replaced. The Company and the Trustee may charge for their expenses in replacing a Security. If,
after the delivery of such replacement Security, a protected purchaser of the original Security in
lieu of which such replacement Security was issued presents for payment or registration such
original Security, the Trustee shall be entitled to recover such replacement Security from the
Person to whom it was delivered or any Person taking therefrom, except a protected purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Trustee or the Company in connection therewith.
Every replacement Security is a contractual obligation of the Company.

     In case any such mutilated, destroyed, lost or wrongfully taken 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.

     The provisions of this Section 2.08 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 wrongfully taken Securities.

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          SECTION 2.09. Outstanding Securities. The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Security effected by the Trustee
hereunder and those described in this Section 2.09 as not outstanding; provided,
however, that in determining whether the Holders of the requisite principal amount of
outstanding Securities are present at a meeting of Holders of Securities for quorum purposes or
have consented to or voted in favor of any request, demand, authorization, direction, notice,
consent, waiver, amendment or modification hereunder, Securities held for the account of the
Company or any of its Affiliates shall be disregarded and deemed not to be outstanding, except that
in determining whether the Trustee shall be protected in making such a determination or relying
upon any such quorum, consent or vote, only Securities which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded.

     The principal amount of a Discount at Issue Security that shall be deemed to be outstanding
shall be the amount of the principal thereof that would be due and payable as of the date of such
determination upon acceleration of the Maturity thereof pursuant to Section 5.02.

     If a Security is replaced pursuant to Section 2.08, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a protected
purchaser.

     If the principal amount of any Security is considered paid under Section 3.01, it ceases to be
outstanding and interest on it, if any, ceases to accrue.

          SECTION 2.10. Temporary Securities. Until Definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities. Temporary Securities
shall be substantially in the form of Definitive Securities, but may have variations that the
Company considers appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate Definitive Securities in exchange for temporary
Securities. Until so exchanged, temporary Securities shall in all respects be entitled to the same
benefits under this Indenture as Definitive Securities.

          SECTION 2.11. Cancellation. The Company or the Guarantor, if any, at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the
Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The
Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment,
replacement or cancellation. All canceled Securities held by the Trustee shall be disposed of in
accordance with the usual disposal procedures of the Trustee. The Company may not issue new
Securities to replace Securities that have been paid or that have been delivered to the Trustee for
cancellation.

          SECTION 2.12. Defaulted Interest. If the Company defaults in a payment of interest on the
Securities, it shall pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest on the defaulted interest, in each case at the rate provided in the Securities and in the
manner provided in Section 3.01. The Company may pay the defaulted interest to the Persons who are
Holders on a subsequent special record date. At least 15 days before any special record date, the
Company (or the Trustee, in the name of and at the expense of the Company)

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shall mail to Holders a notice that states the special record date, the related payment date
and the amount of such interest to be paid.

          SECTION 2.13. Persons Deemed Owners. The Company, the Guarantor, if any, the Trustee, any
Agent and any authenticating agent may treat the Person in whose name any Security is registered as
the owner of such Security for the purpose of receiving payments of principal of or premium, if
any, Additional Amounts, if any, or interest, if any, on such Security and for all other purposes.
None of the Company, the Guarantor, the Trustee, any Agent or any authenticating agent shall be
affected by any notice to the contrary.

          SECTION 2.14. CUSIP Numbers. The Company in issuing the Securities may use “CUSIP,” “ISIN,”
“Common Code” or similar numbers (if then generally in use), and, if so, the Trustee shall use such
numbers in notices of redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee
of any change in any such number.

ARTICLE THREE

COVENANTS

          SECTION 3.01. Payment of Securities. The Company shall pay the principal of and premium, if
any, Additional Amounts, if any, and interest, if any, on the Securities on the dates and in the
manner provided in the Securities and this Indenture. Principal, premium, if any, Additional
Amounts, if any, and interest, if any, shall be considered paid on the date due if the Paying
Agent, other than the Company or a Subsidiary of the Company, holds by 11:00 a.m., Eastern time, on
that date money deposited by or on behalf of the Company designated for and sufficient to pay all
principal, premium, if any, Additional Amounts, if any, and interest, if any, then due.

     Further, to the extent lawful, the Company shall pay interest on overdue principal, premium,
if any, Additional Amounts, if any, and interest (without regard to any applicable grace period),
if any, from time to time on demand at the rate then in effect on the Securities.

          SECTION 3.02. Maintenance of Office or Agency. So long as any of the Securities shall remain
outstanding, the Company will, in accordance with Section 2.04, maintain an office or agency (which
may be an office of the Trustee or an affiliate of the Trustee, or the Registrar) in the
continental United States where the Securities may be surrendered for exchange or registration of
transfer as provided in this Indenture, where notices and demands to or upon the Company in respect
to the Securities may be served, and where the Securities may be presented or surrendered for
payment. The Company may also from time to time designate one or more other offices or agencies in
the continental United States where Securities may be presented or surrendered for any and 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
under Section 2.04 to maintain an office or agency in The City of New York where any Securities may
be presented or surrendered for payment. The

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Company will give to the Trustee and the Securities Administrator prompt written notice of the
location of any such office or agency and of any change of location thereof. In case the Company
shall fail to maintain any such office or agency or shall fail to give such notice of the location
or of any change in the location thereof, such surrenders, presentations and demands may be made
and notices may be served at the designated Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee its agent to receive at the aforesaid office all such surrenders,
presentations, notices and demands.

          SECTION 3.03. SEC Reports; Financial Statements. The Company and each Guarantor, if any,
covenant and agree, so long as any Securities are outstanding, to file with the Trustee copies
relating to one of either the Company or any Guarantor, within 15 days after the Company or any
Guarantor, as appropriate, files the same with the SEC, of the annual reports and of the
information, documents and other reports (or copies of such portions of any of the foregoing as the
SEC may from time to time by rules and regulations prescribe) which the Company or any Guarantor,
as appropriate, is required to file with the SEC pursuant to Section 13 or Section 15(d) of the
Exchange Act; or, if the Company or any Guarantor, as appropriate, is not required to file
information, documents or reports pursuant to either of such sections, then to file with the
Trustee and the SEC, in accordance with rules and regulations prescribed from time to time by the
SEC, such of the supplementary and periodic information, documents and reports, if any, which may
be required pursuant to Section 13 of the Exchange Act, in respect of a security listed and
registered on a national securities exchange as may be prescribed from time to time in such rules
and regulations. Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

          SECTION 3.04. Compliance Certificate. The Company and any Guarantor shall deliver to the
Trustee, within 120 days after the end of each fiscal year of the Company, a statement signed by
two Officers of the Company (one of whom shall be the Chief Executive Officer, Chief Financial
Officer or Chief Accounting Officer of the Company) and two Officers of each Guarantor, if any (one
of whom shall be the Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer
of such Guarantor), which statement need not constitute an Officers’ Certificate, complying with
TIA Section 314(a)(4) and stating that in the course of performance by the signing Officers of the
Company and Officers of such Guarantor of their duties as such Officers, they would normally obtain
knowledge of the keeping, observing, performing and fulfilling by the Company and such Guarantor,
respectively, of their obligations under this Indenture, and further stating, as to each such
Officer signing such statement, that to the best of his knowledge, each of the Company and such
Guarantor has kept, observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the terms, provisions
and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which such Officer may have knowledge and what action the
Company or such Guarantor, as the case may be, are taking or proposes to take with respect
thereto).

          SECTION 3.05. Corporate Existence. Subject to Article Four, each of the Company and any
Guarantor will do or cause to be done all things necessary to preserve and

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keep in full force and effect its corporate existence, under the laws of its jurisdiction of
incorporation or formation.

          SECTION 3.06. Waiver of Stay, Extension or Usury Laws. Each of the Company and any Guarantor
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 or any usury law or other law, which would prohibit or forgive the Company or any Guarantor
from paying all or any portion of the principal of or premium, if any, Additional Amounts, if any,
or interest, if any, on the Securities as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to
the extent that they may lawfully do so) each of the Company and any Guarantor hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

          SECTION 3.07. Payment of Additional Amounts. Unless otherwise required by Bermudan law,
neither the Company nor any Guarantor will deduct or withhold from payments made with respect to
the Securities and the Guarantees, if any, on account of any present or future Taxes. In the event
that either the Company or any Guarantor is required to withhold or deduct on account of any Taxes
due from any payment made under or with respect to the Securities or any Guarantees, as the case
may be, the Company or such Guarantor, as the case may be, will pay such additional amounts
(“Additional Amounts”) as may be necessary so that the net amount received by each Holder of
Securities will equal the amount that the Holder would have received if the Taxes had not been
required to be withheld or deducted; provided that no Additional Amounts will be payable with
respect to a payment made to a Holder to the extent: (a) that any Taxes would not have been so
imposed but for the existence of any present or former connection between the Holder and Bermuda,
other than the mere receipt of the payment, acquisition, ownership or disposition of such
Securities or the exercise or enforcement of rights under the Securities, the Guarantees, if any,
or this Indenture; (b) of any estate, inheritance, gift, sales, transfer or personal property Taxes
imposed with respect to the Securities or any other Taxes payable other than by withholding or
deduction, except as described below or as otherwise provided in this Indenture; (c) that any such
Taxes would not have been imposed but for the presentation of the Securities, where presentation is
required, for payment on a date more than 30 days after the date on which the payment became due
and payable or the date on which payment thereof is duly provided for, whichever is later, except
to the extent that the beneficiary or Holder thereof would have been entitled to Additional Amounts
had the Securities been presented for payment on any date during such 30-day period; or (d) that
the Holder would not be liable or subject to such withholding or deduction of Taxes but for the
failure to make a valid declaration of non-residence or other similar claim for exemption, if: (i)
the making of the declaration or claim is required or imposed by statute, treaty, regulation,
ruling or administrative practice of the relevant taxing authority as a precondition to an
exemption from, or reduction in, the relevant Taxes; and (ii) at least 60 days prior to the first
payment with respect to which the Company or such Guarantor shall apply this clause (d), the
Company or such Guarantor shall have notified all Holders of the Securities in writing that they
shall be required to provide this declaration or claim. The Company and such Guarantor shall also
(w) withhold or deduct such Taxes as required; (x) remit the full amount of Taxes deducted or
withheld to the relevant taxing authority

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in accordance with all applicable laws; (y) use reasonable efforts to obtain from each
relevant taxing authority imposing the Taxes certified copies of tax receipts evidencing the
payment of any Taxes deducted or withheld; and (z) upon request, make available to the Holders of
the Securities, within 60 days after the date the payment of any Taxes deducted or withheld is due
pursuant to applicable law, certified copies of tax receipts evidencing such payment by the Company
or such Guarantor and, notwithstanding the Company’s or such Guarantor’s efforts to obtain the
receipts, if the same are not obtainable, other evidence of such payments.

     In addition, the Company or any Guarantor will pay any stamp, issue, registration, documentary
or other similar taxes and duties, including interest, penalties and additional amounts with
respect thereto, payable in Bermuda or the United States, or any political subdivision or taxing
authority of or in the foregoing with respect to the creation, issue, offering, enforcement,
redemption or retirement of the Securities or Guarantees.

     At least 30 days prior to each date on which any payment under or with respect to the
Securities is due and payable, if the Company or any Guarantor becomes obligated to pay Additional
Amounts with respect to such payment, the Company (or in respect of the Guarantees, such Guarantor)
shall deliver to the Trustee and the Securities Administrator an Officers’ Certificate stating the
fact that such Additional Amounts will be payable, and the amounts so payable and will set forth
such other information as is necessary to enable the Trustee or to allow the Trustee to cause the
Paying Agent to pay such Additional Amounts to the Holders on the payment date. Whenever in this
Indenture there is mentioned, in any context, the payment of principal of and premium, if any,
Additional Amounts, if any, or interest (including defaulted interest), if any, or any other amount
payable on or with respect to any of the Securities, such mention shall be deemed to include
mention of the payment of Additional Amounts provided for in this Section 3.07 to the extent that,
in such context, Additional Amounts are, were or would be payable in respect thereof pursuant to
the provisions of this Section 3.07 and express mention of the payment of Additional Amounts in
those provisions hereof shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made (if applicable).

     If payments with respect of the Securities or any Guarantees become subject generally to the
taxing jurisdiction of any Territory or any political subdivision or taxing authority thereof or
therein having power to tax, other than or in addition to Bermuda or the United States or any
political subdivision or taxing authority therein or thereof having power to tax, immediately upon
becoming aware thereof the Company shall notify the Trustee in writing of such event, and thereupon
the Company or such Guarantor, as the case may be, shall be obligated to pay Additional Amounts in
respect thereof on terms corresponding to the terms of the foregoing provisions of this Section
3.07 with the substitution for (or, as the case may be, in addition to) the references herein to
Bermuda or any political subdivision or authority therein or thereof having power to tax of
references to that other or additional Territory or any political subdivision or authority therein
or thereof having power to tax to whose taxing jurisdiction such payments shall have become subject
as aforesaid. The term “Territory” means for this purpose any jurisdiction in which the Company or
any Guarantor, as the case may be, is incorporated or in which it has its place of central
management or central control.

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     The obligations of the Company and any Guarantor under this Section 3.07 shall survive the
termination of this Indenture and the payment of all amounts under or with respect to this
Indenture and the Securities.

ARTICLE FOUR

CONSOLIDATION, MERGER AND SALE

          SECTION 4.01. Limitation on Mergers and Consolidations of the Company. The Company shall not
consolidate or amalgamate with or merge into any other Person or convey, transfer or lease its
properties and assets substantially as an entirety to any Person unless:

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

     (ii) immediately after giving effect to such transaction, no Default or Event
of Default shall have occurred and be continuing; and

     (iii) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, amalgamation, merger,
conveyance, transfer or lease and such supplemental indenture comply with this
Article Four and that all conditions precedent herein provided for relating to such
transaction have been complied with.

          SECTION 4.02. Limitation on Mergers and Consolidations of any Guarantor. The Guarantor, if
any, shall not consolidate or amalgamate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person unless:

     (i) the Person formed by such consolidation or amalgamation or into which such
Guarantor is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of such Guarantor 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, the due and punctual
payment of all obligations in respect of the Guarantees and the performance of every
covenant of this Indenture on the part of the Guarantor to be performed;

     (ii) immediately after giving effect to such transaction, no Default or Event
of Default shall have occurred and be continuing; and

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     (iii) such Guarantor has delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel, each stating that such consolidation, amalgamation, merger,
conveyance, transfer or lease and such supplemental indenture comply with this
Article Four and that all conditions precedent herein provided for relating to such
transaction have been complied with.

          SECTION 4.03. Successors Substituted. Upon any consolidation or amalgamation of the Company
or any Guarantor with, or merger of the Company or any Guarantor into, any other Person, or any
conveyance, transfer or lease of the properties and assets of the Company or any Guarantor
substantially as an entirety in accordance with Section 4.01 or Section 4.02, the successor Person
formed by such consolidation or amalgamation or into which the Company or such Guarantor is merged
or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company or such Guarantor, as the case may be, under
this Indenture with the same effect as if such successor Person had been named as the Company or
such Guarantor, as the case may be, herein, and thereafter, except in the case of a lease to
another Person, the predecessor Person shall be relieved of all obligations and covenants under
this Indenture and the Securities.

ARTICLE FIVE

DEFAULTS AND REMEDIES

          SECTION 5.01. Events of Default. For any series of Securities, “Event of Default” means any
one of the following events with respect to that series (whatever the reason for such Event of
Default, whether or not it shall be occasioned by the provisions of Article Fourteen and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

     (i) default in the payment of the principal of or premium, if any, on any
Security of that series at its Maturity, and continuance of such default for a
period of 10 days; or

     (ii) default in the payment of interest, if any, or Additional Amounts, if any,
upon any Security of that series when they become due and payable, and continuance
of such default for a period of 30 days; or

     (iii) default in the observance or performance, or breach, of any covenant of
the Company or any Guarantor in any Security of that series or this Indenture (other
than a covenant a default in whose performance or whose breach is elsewhere in this
Section 5.01 specifically dealt with), and continuance of such default or breach for
a period of 90 days after there has been given, by registered or certified mail, to
the Company and any Guarantor by the Trustee or to the Company, any Guarantor and
the Trustee by the Holders of at least 25% in aggregate principal amount of the
applicable series of 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

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     (iv) the entry by a court having jurisdiction in the premises of (A) a decree
or order for relief in respect of the Company or any Guarantor in an involuntary
case or proceeding under any applicable Bankruptcy Law or (B) a decree or order
adjudging the Company or any Guarantor a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company or any Guarantor under any applicable
Bankruptcy Law, or appointing a custodian, receiver, receiver and manager, interim
receiver, administrator, monitor, liquidator, assignee, trustee, sequestrator or
other similar official of the Company or any Guarantor or of any substantial part of
the property of the Company or any Guarantor, or ordering the winding up or
liquidation of the affairs of the Company or any Guarantor, 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 90 consecutive days; or

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

     (vi) the Guarantees applicable to that series, if any, cease to be in full
force and effect or become unenforceable or invalid or are declared null and void
(other than in accordance with the terms of such Guarantees) or any Guarantor denies
or disaffirms its obligations under such Guarantees.

     The Trustee shall not be deemed to know of a Default or Event of Default unless a Responsible
Officer at the Corporate Trust Office of the Trustee has actual knowledge of such Default or Event
of Default or the Trustee receives written notice at the Corporate Trust Office of the Trustee of
such Default or Event of Default with specific reference to such Default, the Securities and this
Indenture.

     When a Default is cured, or when an Event of Default is deemed cured pursuant to Section 5.04,
such Default, or Event of Default, as the case may be, ceases.

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          SECTION 5.02. Acceleration. If an Event of Default with respect to a series of Securities
(other than an Event of Default specified in Section 5.01(iv) or Section 5.01(v)) occurs and is
continuing, the Trustee by notice to the Company and any Guarantor, or by the Holders of at least
25% in aggregate principal amount of the applicable series of then outstanding Securities by
written notice to the Company, any Guarantor and the Trustee, may declare the principal of (or, if
any of the Securities of that series are Discount at Issue Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof), premium, if any,
Additional Amounts, if any, and accrued and unpaid interest, if any, on all then outstanding such
Securities to be due and payable immediately. Upon any such declaration the amounts due and payable
on the applicable Securities, as determined in accordance with the next succeeding paragraph, shall
be due and payable immediately. If an Event of Default specified in Section 5.01(iv) or Section
5.01(v) occurs, the principal of, premium, if any, Additional Amounts, if any, and interest, if
any, on all Securities then outstanding shall ipso facto become and be immediately due and payable
without any declaration, notice or other act on the part of the Trustee or any Holder.

     At any time after such an acceleration has occurred and before a judgment for payment of the
money due has been obtained by the Trustee as provided hereinafter in this Article Five, the
Holders of a majority in aggregate principal amount of the applicable series of outstanding
Securities, by written notice to the Company, any Guarantor and the Trustee, may rescind and annul
such acceleration and its consequences in relation to the applicable series if:

          (a) the Company or any Guarantor has paid or deposited with the Trustee a sum sufficient to
pay:

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

     (ii) all overdue interest, if any, and Additional Amounts, if any, on the
applicable series of Securities,

     (iii) to the extent that payment of such interest is lawful, interest upon
overdue interest, if any, and overdue Additional Amounts, if any, at the rate or
rates prescribed therefor in such Securities or in this Indenture, and

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

          (b) all Events of Default with respect to that series, other than the non-payment of the
principal of the applicable series of Securities which have become due solely by such declaration
of acceleration, have been cured or waived as provided in Section 5.04.

     No such rescission shall affect any subsequent Event of Default or impair any right consequent
thereon.

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     If the Maturity of Securities is accelerated pursuant to this Section 5.02, 100% of the
principal amount thereof and premium, if any, shall become due and payable plus Additional Amounts
in respect thereof, if any, and accrued and unpaid interest in respect thereof, if any, to the date
of payment.

          SECTION 5.03. Other Remedies. If an Event of Default with respect to a series of Securities
occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of
principal of, premium, if any, Additional Amounts, if any, or interest, if any, on the applicable
series of Securities or to enforce the performance of any provision of such Securities, the related
Guarantees, if any, or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities in the
applicable series or does not produce any of them in the proceeding. A delay or omission by the
Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All
remedies are cumulative to the extent permitted by law.

          SECTION 5.04. Waiver of Existing Defaults. Subject to Section 5.07 and Section 8.02, the
Holders of a majority in aggregate principal amount of the applicable series of Securities then
outstanding may waive an existing Default or Event of Default and its consequences as it relates to
that series of Securities by notice to the Trustee (including waivers obtained in connection with a
tender offer for such series of Securities or a solicitation of consents in respect of such series
of Securities, provided that in each case such offer or solicitation is made to all Holders of such
series of Securities on equal terms), except (1) a continuing Default or Event of Default in the
payment of the principal of or premium, if any, Additional Amounts, if any, or interest, if any, on
the applicable series of Securities or (2) a continuing Default in respect of a provision that
under Section 8.02 cannot be amended without the consent of each Holder of the series of Securities
affected. Upon any such waiver, such Default shall cease to exist with respect to the applicable
series of Securities, and any Event of Default arising therefrom shall be deemed to have been cured
for every purpose of this Indenture with respect to that series of Securities; but no such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon. For the
avoidance of doubt, Holders of each separate series of Securities will vote separately with respect
to all matters related to such series.

          SECTION 5.05. Control by Majority. The Holders of a majority in aggregate principal amount of
the applicable series of Securities then outstanding may 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 it hereunder with respect to such series of Securities. The Trustee, however, may
refuse to follow any direction that conflicts with applicable law, this Indenture or the applicable
supplemental indenture that the Trustee determines may be unduly prejudicial to the rights of other
Holders of such series of Securities, or that may involve the Trustee in personal liability;
provided, however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. Prior to taking any action hereunder, the
Trustee shall receive indemnification from such Holders reasonably satisfactory to it against all
losses and expenses caused by taking or not taking such action subject to the Trustee’s duty to act
with the required standard of care during a default. For the

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avoidance of doubt, Holders of each separate series of Securities will vote separately with
respect to all matters related to such series.

          SECTION 5.06. Limitations on Suits. Subject to Section 5.07, a Holder may pursue a remedy
with respect to this Indenture (including the Guarantees, if any) or the Securities only if:

     (i) such Holder gives to the Trustee written notice of a continuing Event of
Default;

     (ii) the Holders of at least 25% in aggregate principal amount of the
applicable series of Securities then outstanding make a written request to the
Trustee to pursue the remedy;

     (iii) such Holder or Holders furnish to the Trustee reasonable indemnity
satisfactory to the Trustee against any loss, liability or expense;

     (iv) the Trustee does not comply with the request within 60 days after receipt
of the request and the furnishing of indemnity; and

     (v) during such 60-day period the Holders of a majority in aggregate principal
amount of the applicable series of Securities then outstanding do not give the
Trustee a direction inconsistent with the request.

     A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder (it being understood that the Trustee does not have an
affirmative duty to ascertain whether or not such action or forbearances are unduly prejudicial to
such Holders).

          SECTION 5.07. Rights of Holders to Receive Payment. Notwithstanding any other provision of
this Indenture, the right of any Holder of a Security to receive payment of principal of and
premium, if any, Additional Amounts, if any, and interest, if any, on the Security, on or after any
respective due dates expressed in the Security, or to bring suit against the Company or any
Guarantor for the enforcement of any such payment on or after such respective dates, is absolute
and unconditional and shall not be impaired or affected without the consent of such Holder.

          SECTION 5.08. Collection Suit by Trustee. If an Event of Default specified in Section 5.01(i)
or Section 5.01(ii) occurs and is continuing (whether or not such payment is prohibited by the
provisions of Article Fourteen), the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company and the Guarantor for (i) the amount of
principal of and premium, if any, Additional Amounts, if any, and interest, if any, remaining
unpaid on the applicable series of Securities and (ii) interest on overdue principal, if any,
premium, if any, Additional Amounts, if any, and, to the extent lawful, interest on overdue
interest, if any, and such further amount as shall be sufficient to cover the reasonable and
documented costs and expenses of collection, including the reasonable and documented compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, all of which as it
relates to such Securities.

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          SECTION 5.09. Trustee May File Proofs of Claim. The Trustee is authorized to file such proofs
of claim and other papers or documents and to take such actions, including participating as a
member, voting or otherwise, of any committee of creditors, 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 the Holders
allowed in any judicial proceedings relative to the Company and any Guarantor or their respective
creditors or properties and shall be entitled and empowered to collect, receive and distribute any
money or other property payable or deliverable on any such claims and any Custodian 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 to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07. To the extent that the payment of any such compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07 out of the estate in any such proceeding, shall be denied for any reason, payment of
the same shall be secured by a lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties which the Holders of the Securities may be
entitled to receive in such proceeding whether in liquidation or under any plan of reorganization
or arrangement or otherwise. 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 5.10. Priorities. If the Trustee collects any money pursuant to this Article Five, it
shall pay out the money in the following order:

	 	 	First: to the Trustee for amounts due under Section 6.07;

	 	 	Second: subject to Article Fourteen, to Holders for amounts due and unpaid on the applicable
series of Securities for principal, premium, if any, Additional Amounts, if any, and
interest, if any, ratably and without preference or priority of any kind amongst Holders of
the same series of Securities, according to the amounts due and payable on such Securities
for principal, premium, if any, Additional Amounts, if any, and interest, if any,
respectively; and

	 	 	Third: to the Company and any Guarantor.

     The Trustee, upon prior written notice to the Company and any Guarantor, may fix a record date
and payment date for any payment to Holders pursuant to this Article Five. At least 15 days before
such record date, the Trustee shall mail to each Holder and the Company a notice that states the
record date, the payment date and amount to be paid.

          SECTION 5.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a
trustee, a court in its discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may assess

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reasonable costs, including reasonable attorneys’ fees, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 5.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 5.07, or a suit by a Holder or Holders of more than 10% in aggregate principal amount of
the applicable series of Securities then outstanding.

ARTICLE SIX

TRUSTEE

          SECTION 6.01. Duties of Trustee.

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

          (b) Except during the continuance of an Event of Default:

     (i) the Trustee need perform only those duties that are specifically set forth
in this Indenture and no others, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

     (ii) 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. However, the Trustee shall examine
such certificates and opinions to determine whether or not, on their face, they
appear to conform to the requirements of this Indenture.

          (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

     (i) this paragraph does not limit the effect of Section 6.01(b) above;

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

     (iii) the Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it pursuant
to Section 5.05.

          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 6.01.

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          (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee may refuse to perform any duty or exercise any right or power
unless it receives indemnity satisfactory to it against any loss, liability or expense.

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law. All money received by the Trustee
shall, until applied as herein provided, be held in trust for the payment of the principal of and
premium, if any, Additional Amounts, if any, and interest, if any, on the Securities.

          (g) In no event shall the Trustee be responsible or liable for special, indirect, punitive or
consequential loss or damage of any kind whatsoever (including, but not limited to, lost off of
profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action.

          SECTION 6.02. Rights of Trustee.

          (a) The Trustee may rely conclusively on any resolution, certificate, statement, direction,
consent, order, bond, note or other paper or document believed by it to be genuine and to have been
signed or presented by the proper Person. The Trustee need not investigate any fact or matter
stated in any such paper or document.

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. 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.

          (c) The Trustee may act through agents or attorneys and shall not be responsible for the
misconduct or negligence of any agent or attorney appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers conferred upon it by this
Indenture.

          (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company or any Guarantor shall be sufficient if signed by an Officer of the
Company or such Guarantor, as the case may be.

          (f) The Trustee is not required to give any bond or surety with respect to the performance of
its duties or the exercise of its powers under this Indenture.

          (g) In the event the Trustee receives inconsistent or conflicting requests and indemnity from
two or more groups of Holders of a series of Securities, each representing less than a majority in
aggregate principal amount of the outstanding Securities of such series,

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pursuant to the provisions of this Indenture, the Trustee may determine what action, if any,
shall be taken.

          (h) The Trustee’s immunities and protections from liability and its right to indemnification
in connection with the performance of its duties under this Indenture shall extend and be
enforceable by the Trustee in each of its capacities hereunder and shall extend to the Trustee’s
officers, directors, agents, attorneys and employees. Such immunities and protections and right to
indemnity, together with the Trustee’s right to compensation, shall survive the Trustee’s
resignation or removal, the discharge of this Indenture and final payment of the Securities.

          (i) The permissive right of the Trustee to take the actions permitted by this Indenture shall
not be construed as an obligation or duty to do so.

          (j) Except for information provided by the Trustee concerning the Trustee, the Trustee shall
have no responsibility for any information in any preliminary prospectus, final prospectus,
preliminary offering memorandum, offering memorandum or other disclosure material distributed with
respect to the Securities, and the Trustee shall have no responsibility for compliance with any
U.S. Federal or State securities or employee benefit plan laws in connection with the Securities.

          (k) The Trustee may request that the Company or any Guarantor, as the case may be, deliver an
Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized
at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any Officer, including any person specified as so authorized herein and not
superseded.

          SECTION 6.03. Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company, any
Guarantor or any of their Affiliates with the same rights it would have if it were not the Trustee.
Any Agent may do the same with like rights. However, the Trustee is subject to Section 6.10 and
Section 6.11.

          SECTION 6.04. Trustee’s Disclaimer. The Trustee makes no representation as to the validity or
adequacy of this Indenture, the Securities or the Guarantees, if any, it shall not be accountable
for the Company’s use of the proceeds from the Securities or any money paid to the Company or upon
the Company’s direction under any provision hereof, it shall not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee and it shall not be
responsible for any statement or recital herein or any statement in the Securities other than its
certificate of authentication.

          SECTION 6.05. Notice of Defaults. If a Default or Event of Default occurs and is continuing
and it is actually known to a Responsible Officer of the Trustee, the Trustee shall mail to Holders
of any applicable series of Securities a notice of the Default or Event of Default within 90 days
after it occurs. Except in the case of a Default or Event of Default in payment of principal of or
premium, if any, Additional Amounts, if any, or interest, if any, on any Security, the Trustee may
withhold the notice if and so long as a committee of its

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Responsible Officers in good faith determines that withholding the notice is in the interests
of Holders of such series of Securities.

          SECTION 6.06. Reports by Trustee to Holders. By July 15th of each year following
the date of issuance of any Securities, the Trustee shall mail to Holders a brief report dated as
of May 15 of such year that complies with TIA Section 313(a); provided, however,
that if no event described in TIA Section 313(a) has occurred within the 12 months preceding the
reporting date, no report need be transmitted. The Trustee also shall comply with TIA Section
313(b). The Trustee shall also transmit by mail all reports as required by TIA Sections 313(c) and
313(d).

     A copy of each report at the time of its mailing to Holders shall be filed with the SEC and
each securities exchange, if any, on which the Securities are listed. The Company shall notify the
Trustee if and when the Securities are listed on any securities exchange.

          SECTION 6.07. Compensation and Indemnity. The Company and any Guarantor jointly and severally
agree to pay to the Trustee from time to time such compensation as agreed to by the Company, any
Guarantor and the Trustee, for its acceptance of this Indenture and its services hereunder. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Company and any Guarantor jointly and severally agree to reimburse the Trustee upon
request for all reasonable and documented disbursements, advances and expenses incurred by it. Such
expenses shall include the reasonable and documented compensation, disbursements and expenses of
the Trustee’s agents and counsel.

     The Company and any Guarantor jointly and severally agree to indemnify the Trustee or any
predecessor Trustee and their agents, employees, officers and directors for and to hold them
harmless against any and all loss, liability, damage, claim, or expense (including reasonable and
documented fees and expenses of counsel and taxes, other than taxes based upon, measured by or
determined by the income of the Trustee) incurred by it arising out of or in connection with this
Indenture or the administration of this trust, including the reasonable and documented costs and
expenses of enforcing this Indenture against the Company and of defending itself against any third
party claim (whether asserted by any Holder or any other Person), except as set forth in the next
paragraph. The Trustee shall notify the Company and any Guarantor promptly of any claim for which
it may seek indemnity; however, failure to give such notice shall not relieve the Company or any
Guarantor of their obligations. The Company shall defend the claim and the Trustee shall cooperate
in the defense. The Trustee may have separate counsel, and the Company and any Guarantor shall pay
the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld.

     Notwithstanding anything herein to the contrary, neither the Company nor any Guarantor shall
be obligated to reimburse any fee or expense or indemnify against any loss, liability, damage,
claim or expense incurred by the Trustee through negligence or willful misconduct.

     To secure the payment obligations of the Company and any Guarantor in this Section 6.07, the
Trustee shall have a lien prior to the Securities on all money or property held or collected by the
Trustee, except that held in trust to pay principal of and premium, if any, and

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Additional Amounts, if any, and interest, if any, on the Securities. Such lien shall survive
the satisfaction and discharge of this Indenture.

     Then the Trustee incurs expenses or renders services after an Event of Default specified in
Section 5.01(iv) or (v) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.

          SECTION 6.08. Replacement of Trustee. A resignation or removal of the Trustee and appointment
of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 6.08.

     The Trustee may resign and be discharged from the trust hereby created by so notifying the
Company and any Guarantor. The Holders of a majority in aggregate principal amount of the then
outstanding Securities may remove the Trustee by so notifying the Trustee and the Company. The
Company may remove the Trustee if:

          (i) the Trustee fails to comply with Section 6.10;

          (ii) the Trustee is adjudged a bankrupt or an insolvent or an order for relief
is entered with respect to the Trustee under any Bankruptcy Law;

          (iii) a Custodian or public officer takes charge of the Trustee or its
property; or

          (iv) the Trustee otherwise becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company or any Guarantor shall promptly appoint a successor Trustee. Within one year
after the successor Trustee takes office, the Holders of a majority in principal amount of the
Securities then outstanding may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

     If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least 10% in aggregate
principal amount of the Securities then outstanding may petition any court of competent
jurisdiction at the expense of the Company for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 6.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company and any Guarantor. Thereupon, the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all the rights, powers and
duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided for in Section 6.07.
Notwithstanding replacement of the Trustee pursuant to this Section 6.08, the obligations of the

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Company and any Guarantor under Section 6.07 shall continue for the benefit of the retiring
Trustee.

          SECTION 6.09. Successor Trustee by Merger, etc. Subject to Section 6.10, if the Trustee
consolidates, merges or converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further act shall be the
successor Trustee; provided, however, that in the case of a transfer of all or
substantially all of its corporate trust business to another corporation, the transferee
corporation expressly assumes all of the Trustee’s liabilities hereunder.

     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; and in case at that time any
of the Securities shall not have been authenticated, any successor to the Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name of the successor to
the Trustee; and in all such cases such certificates shall have the full force which it is anywhere
in the Securities or in this Indenture provided that the certificate of the Trustee shall have.

          SECTION 6.10. Eligibility; Disqualification. 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 and authorized under such laws to exercise
corporate trust power, shall be subject to supervision or examination by Federal or State (or the
District of Columbia) authority and shall have, or be a Subsidiary of a bank or bank holding
company having, a combined capital and surplus of at least $100 million as set forth in its most
recent published annual report of condition.

     This Indenture shall always have a Trustee that satisfies the requirements of TIA Sections
310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is subject to and shall comply with the provisions
of TIA Section 310(b) during the period of time required by this Indenture. Nothing in this
Indenture shall prevent the Trustee from filing with the SEC the application referred to in the
penultimate paragraph of TIA Section 310(b).

          SECTION 6.11. Preferential Collection of Claims Against Company. The Trustee is subject to
and shall comply with the provisions of TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated therein.

ARTICLE SEVEN

DISCHARGE OF INDENTURE, DEFEASANCE AND COVENANT DEFEASANCE

          SECTION 7.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further
effect with respect to the applicable series of Securities (except as provided in the last
paragraph of this Section 7.01), and the Trustee, on demand of the Company, shall execute proper
instruments acknowledging the satisfaction and discharge of this Indenture with respect to such
series of Securities, when:

          (a) either:

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     (i) all outstanding Securities of the applicable series theretofore
authenticated and issued (other than destroyed, lost or wrongfully taken Securities
of the applicable series that have been replaced or paid) have been delivered to the
Trustee for cancellation; or

     (ii) all outstanding Securities of the applicable series not theretofore
delivered to the Trustee for cancellation:

     (1) have become due and payable,

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

     (3) will be scheduled for redemption by their terms within one year,
and the Company, in the case of clause (1) or (2) above or this clause (3),
has deposited or caused to be deposited with the Trustee as funds
(immediately available to the Holders of the applicable series of Securities
in the case of clause (1)) in trust for such purpose an amount of cash or,
in the case of clause (2) or this clause (3), U.S. Government Obligations or
a combination thereof which, together with earnings thereon, will be
sufficient, in the case of clause (2) or this clause (3), 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 the entire indebtedness on such Securities for principal, premium,
if any, Additional Amounts, 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;

          (b) the Company has paid all other sums payable by it hereunder; and

          (c) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture have been complied with,
together with an Opinion of Counsel to the same effect.

     However, the obligations of the Company in Section 2.04, Section 2.07, Section 2.08, Section
3.02 and this Section 7.01, the obligations of the Company and any Guarantor in Section 6.07,
Section 6.08, and Section 7.07 and the obligations of the Trustee and the Paying Agent in Section
7.06 shall survive the satisfaction and discharge of this Indenture until the Securities of the
applicable series are no longer outstanding. Thereafter, only the obligations of the Company and
any Guarantor in Section 6.07 and the obligations of the Trustee and the Paying Agent in Section
7.06 shall survive with respect to such series of Securities.

          SECTION 7.02. Legal Defeasance. The Company and any Guarantor may, subject as provided
herein, terminate by legal defeasance all of their obligations with respect to any series of
Securities if:

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          (a) the Company has irrevocably deposited or caused to be irrevocably deposited with the
Trustee as trust funds in trust for the purpose of making the following payments dedicated solely
to the benefit of the Holders of such series of Securities (A) cash in an amount, or (B) U.S.
Government Obligations, or (C) 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, without consideration of the reinvestment of any such amounts and
after payment of all taxes or other charges or assessments in respect thereof payable by the
Trustee, the principal of and premium, if any, Additional Amounts, if any and interest, if any, on
all Securities of that series on each date that such principal, premium, if any, Additional
Amounts, if any, or interest, if any, is due and payable and to pay all other sums payable by it
hereunder; provided that the Trustee shall have been irrevocably instructed to apply such money or
the proceeds of such U.S. Government Obligations to the payment of said principal, premium, if any,
Additional Amounts, if any, and interest, if any, with respect to the Securities of that series as
the same shall become due;

          (b) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to such legal defeasance have been complied with, and an Opinion of Counsel to
the same effect;

          (c) no Default or Event of Default shall have occurred and be continuing on the date of such
deposit or, insofar as Section 5.01(iv) and Section 5.01(v) are concerned, at any time during the
period ending on the 91st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period) with respect to such
series of Securities;

          (d) the Company shall have delivered to the Trustee an Opinion of Counsel from nationally
recognized counsel acceptable to the Trustee to the effect that, based on a ruling of the Internal
Revenue Service or a change in U.S. Federal income tax law occurring after the date of this
Indenture, the Holders of such series of Securities will not recognize income, gain or loss for
U.S. Federal income tax purposes as a result of the Company’s exercise of its option under this
Section 7.02 and will be subject to U.S. Federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such option had not been exercised;

          (e) such deposit and legal defeasance will not result in a breach or violation of, or
constitute a default under, any other agreement or instrument to which the Company or any Guarantor
is a party or by which it is bound; and

          (f) such deposit and legal defeasance shall not cause the Trustee to have a conflicting
interest as defined in TIA Section 310(b).

     In such event, payment of the series of Securities may not be accelerated because of an Event
of Default, Article Nine, Article Fourteen and the other provisions of this Indenture shall cease
to be of further effect with respect to that series of Securities (except as provided in the next
succeeding paragraph), and the Trustee, on demand of the Company, shall execute proper instruments
acknowledging such legal defeasance.

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     However, the obligations of the Company in Section 2.04, Section 2.07, Section 2.08, Section
3.02 and this Section 7.02, the obligations of the Company and any Guarantor in Section 6.07,
Section 6.08 and Section 7.07 and the obligations of the Trustee and the Paying Agent in Section
7.06 shall survive such legal defeasance until the Securities of the applicable series are no
longer outstanding. Thereafter, only the obligations of the Company and any Guarantor in Section
6.07 and the obligations of the Trustee and the Paying Agent in Section 7.06 shall survive with
respect to such series of Securities.

     The Company may exercise its option under this Section 7.02 notwithstanding its prior exercise
of its Covenant Defeasance option under Section 7.03.

          SECTION 7.03. Covenant Defeasance. The Company and the Guarantor, if any, may, subject as
provided herein and with respect to any series of Securities, be released from their respective
obligations to comply with, and shall have no liability in respect of any term, condition or
limitation with respect to such series of Securities, set forth in Section 3.03, Section 3.07 and
Section 4.01 Article Nine and Article Fourteen, and such omission to comply with any of Section
3.03, Section 3.07, Section 4.01, Article Nine and Article Fourteen shall not constitute an Event
of Default under Section 5.01 (“Covenant Defeasance”), with the remainder of this Indenture and
such series of Securities unaffected thereby if:

          (a) the Company has irrevocably deposited or caused to be irrevocably deposited with the
Trustee as trust funds in trust for the purpose of making the following payments dedicated solely
to the benefit of the Holders of such series of Securities (A) cash in an amount, or (B) U.S.
Government Obligations, or (C) 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, without consideration of the reinvestment of any such amounts and
after payment of all taxes or other charges or assessments in respect thereof payable by the
Trustee, the principal of and premium, if any, Additional Amounts, if any and interest, if any, on
all Securities of that series on each date that such principal, premium, if any, Additional
Amounts, if any, or interest, if any, is due and payable and to pay all other sums payable by it
hereunder; provided that the Trustee shall have been irrevocably instructed to apply such money
and/or the proceeds of such U.S. Government Obligations to the payment of said principal, premium,
if any, Additional Amounts, if any, and interest, if any, with respect to the Securities as the
same shall become due;

          (b) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to the Covenant Defeasance contemplated by this provision have been complied
with, and an Opinion of Counsel to the same effect;

          (c) no Default or Event of Default shall have occurred and be continuing on the date of such
deposit or, insofar as Section 5.01(iv) and Section 5.01(v) are concerned, at any time during the
period ending on the 91st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period) with respect to such
series of Securities;

          (d) the Company shall have delivered to the Trustee an Opinion of Counsel from nationally
recognized counsel acceptable to the Trustee to the effect that the Holders of

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such series of Securities will not recognize income, gain or loss for U.S. Federal income tax
purposes as a result of the Company’s exercise of its option under this Section 7.02 and will be
subject to U.S. Federal income tax on the same amounts, in the same manner and at the same times as
would have been the case if such option had not been exercised;

          (e) such Covenant Defeasance will not result in a breach or violation of, or constitute a
default under, any other agreement or instrument to which the Company or any Guarantor is a party
or by which it is bound;

          (f) such Covenant Defeasance shall not cause the Trustee to have a conflicting interest as
defined in TIA Section 310(b); and

          (g) at the time of the deposit in Section 7.03(a) above, (A) no default in the payment of
principal, premium or interest on any Senior Debt shall have occurred and be continuing or (B) no
other event of default with respect to any Senior Debt shall have occurred and be continuing and
shall have resulted in such Senior Debt becoming or being declared due and payable prior to the
date on which it would otherwise have become due and payable, or, in the case of either (A) or (B)
above, each such default or event of default shall have been cured or waived or shall have ceased
to exist.

          SECTION 7.04. U.S. Government Obligations. In order to have money available on a payment date
under Section 7.01, Section 7.02 and Section 7.03 to pay principal of or premium, if any,
Additional Amounts, if any, or interest, if any, on the applicable series of Securities, the U.S.
Government Obligations shall be payable as to principal or interest, if any, on or before such
payment date in such amounts as will provide the necessary money. U.S. Government Obligations shall
not be callable at the issuer’s option.

          SECTION 7.05. Application of Trust Money. The Trustee or a trustee satisfactory to the
Trustee and the Company shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 7.01, Section 7.02 and Section 7.03. Such money or U.S. Government Obligations
so held in trust shall not be subject to the provisions of Article Fourteen. It shall apply the
deposited money and the money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and premium, if any, Additional
Amounts, if any, and interest, if any, on Securities of the applicable series with respect to which
the deposit was made.

          SECTION 7.06. Repayment to Company. The Trustee and the Paying Agent shall promptly pay to
the Company upon written request any excess money or securities held by them at any time. Subject
to the requirements of any applicable abandoned property laws, the Trustee and the Paying Agent
shall pay to the Company upon written request any money held by them for the payment of principal
of, premium, if any, Additional Amounts, if any, or interest, if any, that remains unclaimed for
two years after the date upon which such payment shall have become due; provided,
however, that the Company shall have either caused notice of such payment to be mailed to
each Holder entitled thereto no less than 30 days prior to such repayment or within such period
shall have published such notice in a financial newspaper of widespread circulation published in
The City of New York. After payment to the Company, Holders entitled to the money must look to the
Company for payment as unsecured general

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creditors unless an applicable abandoned property law designates another Person, and all
liability of the Trustee and the Paying Agent with respect to such money shall cease.

          SECTION 7.07. Reinstatement. If the Trustee or the Paying Agent is unable to apply any money
or U.S. Government Obligations in accordance with Section 7.01, Section 7.02 or Section 7.03 by
reason of any legal proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the obligations of the
Company and any Guarantor under this Indenture as it relates to the applicable series of Securities
and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to
Section 7.01, Section 7.02 or Section 7.03, as the case may be, until such time as the Trustee or
the Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance
with Section 7.01, Section 7.02 or Section 7.03; provided, however, that if the Company or
any Guarantor has made any payment of principal of or interest, if any, on any Securities of the
applicable series because of the reinstatement of its obligations, the Company or such Guarantor,
as the case may be, shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money or U.S. Government Obligations held by the Trustee or the Paying Agent.

ARTICLE EIGHT

SUPPLEMENTAL INDENTURES

          SECTION 8.01. Without Consent of Holders. The Company, each Guarantor, if any, the Trustee
and the Securities Administrator may amend or supplement this Indenture or any of the Securities or
waive any provision hereof or thereof without the consent of any Holder:

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

          (ii) to evidence the succession of another Person to the Company or any
Guarantor, or successive successions, and the assumption by the successor Person of
the covenants, agreements and obligations of the Company or any Guarantor pursuant
to Section 4.01 or Section 4.03;

          (iii) to add to the covenants of the Company or any Guarantor such further
covenants, restrictions, conditions or provisions as the Company or any Guarantor
and the Trustee shall consider to be for the protection of the Holders of any or all
series of Securities, to surrender any right or power herein conferred upon the
Company or any Guarantor, and to make the occurrence, or the occurrence and
continuance, of a default in any such additional covenants, restrictions, conditions
or provisions an Event of Default permitting the enforcement of all or any of the
several remedies provided in this Indenture, provided that in respect of any such
additional covenant, restriction, condition or provision such amendment or
supplement may provide for a particular period of grace after default (which period
may be shorter or longer than that allowed in the case of other defaults) or may
provide for an immediate enforcement upon such an Event of Default or may limit the
remedies available to the Trustee upon such

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an Event of Default or may limit the right of the Holders of a majority in
aggregate principal amount of each series of affected Securities to waive such an
Event of Default;

          (iv) to add to, change or eliminate any of the provisions of this Indenture in
respect of one or more series of Securities, including, without limitation, with
respect to any of the provisions of Article Fourteen; provided that any such
addition, change or elimination (i) shall neither (A) apply to any Security of any
series created prior to the execution of such supplemental Indenture and entitled to
the benefit of such provision nor (B) modify the rights of the Holder of any such
Security with respect to such provision or (ii) shall become effective only when
there is no such Security outstanding;

          (v) to add any additional Events of Default for the benefit of the Holders of
all or any series of Securities (and if such additional Events of Default are to be
for the benefit of less than all series of Securities, stating that such additional
Events of Default are expressly being included solely for the benefit of such
series);

          (vi) to establish the form or terms of Securities of any series as permitted by
Article Two;

          (vii) to cure any ambiguity or omission or to correct or supplement any
provision contained herein or in any supplemental indenture which may be defective
or inconsistent with any other provision contained herein or in any supplemental
indenture, provided that no such action shall adversely affect the interests of the
Holders of the Securities;

          (viii) to provide for uncertificated Securities in addition to or in place of
certificated Securities, if any, provided that such uncertificated Securities are
issued in registered form for purposes of Section 163(f) of the Code, or in a manner
such that uncertificated notes are described in Section 163(f)(2)(B) of the Code;

          (ix) 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 of any
series denominated in one or more Foreign Currencies, currency units or composite
currencies;

          (x) to provide for the issuance of Additional Securities and related
Guarantees, if any, in accordance with this Indenture;

          (xi) to secure the Securities of any series;

          (xii) 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

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more than one Trustee pursuant to the requirements of Section 6.08 or provide
additional roles to any Trustee such as any Agent, authenticating agent, conversion
agent or any other agent role specific to a particular series of Securities;

          (xiii) to effect or maintain, or otherwise comply with the requirements of the
SEC in connection with, the qualification of this Indenture under the TIA;

          (xiv) to give effect to any provision of this Indenture; or

          (xv) to make any other change that does not adversely affect the rights of any
Holder.

     Upon the request of the Company and each Guarantor, if any, accompanied by a resolution of the
Board of Directors of each of the Company and each Guarantor, if any, authorizing the execution of
any supplemental indenture entered into to effect any such amendment, supplement or waiver, and
upon receipt by the Trustee and the Securities Administrator of the documents described in Section
8.06, the Trustee and the Securities Administrator shall join with the Company and each Guarantor,
if any, in the execution of such supplemental indenture. After an amendment, supplement or waiver
under this Section 8.01 becomes effective, the Company shall mail to the Holders of each Security
affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such amendment, supplement or waiver.

          SECTION 8.02. With Consent of Holders. Except as provided below in this Section 8.02, the
Company, each Guarantor, if any, the Trustee and the Securities Administrator may amend or
supplement this Indenture with the consent (including consents obtained in connection with a tender
offer for the Securities or a series of Securities or a solicitation of consents in respect of the
Securities or a series of Securities, provided that such offer or solicitation is made to all
Holders of the applicable series of Securities then outstanding on equal terms) of the Holders of
at least a majority in aggregate principal amount of the series of Securities affected by such
supplemental indenture then outstanding affected thereby.

     The Holders of a majority in aggregate principal amount of the Securities of a series then
outstanding may waive compliance in a particular instance by the Company or any Guarantor with any
provision of this Indenture or the applicable Securities (including waivers obtained in connection
with a tender offer for such Securities or a solicitation of consents in respect of such
Securities, provided that in each case such offer or solicitation is made to all Holders of the
Securities or the series of Securities, as applicable, then outstanding on equal terms).

     Upon the request of the Company and each Guarantor, if any, accompanied by a resolution of the
Board of Directors of each of the Company and each Guarantor, if any, authorizing the execution of
any supplemental indenture entered into to effect any such amendment, supplement or waiver, and
upon the filing with the Trustee and the Securities Administrator of evidence of the consent of the
Holders as aforesaid, and upon receipt by the Trustee and the Securities Administrator of the
documents described in Section 8.06, the Trustee

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and the Securities Administrator shall join with the Company and each Guarantor, if any, in
the execution of such supplemental indenture. After an amendment, supplement or waiver under this
Section 8.02 becomes effective, the Company shall mail to the Holders of each Security affected
thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company
to mail such notice, or any defect therein, shall not, however, in any way impair or affect the
validity of any such amendment, supplement or waiver.

     It shall not be necessary for the consent of the Holders under this Section 8.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

     Without the consent of each Holder affected, an amendment, supplement or waiver under this
Section 8.02 may not:

     (i) extend the final maturity of the principal of any of the Securities;

     (ii) reduce the principal amount of any of the Securities (including reducing
the amount of the principal of a Discount at Issue Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 5.02);

     (iii) reduce the rate or extend the time of payment of interest, including
default interest, Additional Amounts or any change in the Floating or Adjustable
Rate Provision pursuant to which such rate is determined that would reduce such rate
for any period, if any, on any of the Securities;

     (iv) reduce any amount payable on redemption of any of the Securities;

     (v) change the currency in which the principal of or premium, if any,
Additional Amounts, if any, or interest, if any, on any of the Securities is
payable;

     (vi) impair the right to institute suit for the enforcement of any payment of
principal of or premium, if any, Additional Amounts, if any, or interest, if any, on
any Security pursuant to Section 5.07 and Section 5.08, except as limited by Section
5.06;

     (vii) make any change in the percentage of principal amount of the Securities
necessary to waive compliance with or to modify certain provisions of this Indenture
pursuant to Section 5.04 or Section 5.07 or this clause of this Section 8.02;

     (viii) waive a continuing Default or Event of Default in the payment of
principal of or premium, if any, Additional Amounts, if any, or interest, including
default interest, if any, on the Securities; or

     (ix) make any change in the subordination provisions of this Indenture that
would adversely affect the Holders.

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     The right of any Holder to participate in any consent required or sought pursuant to any
provision of this Indenture (and the obligation of the Company to obtain any such consent otherwise
required from such Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of the Securities as of a record date fixed by the Company in accordance with
Section 8.04 of this Indenture.

          SECTION 8.03. Compliance with Trust Indenture Act. Every amendment or supplement to this
Indenture or the Securities shall comply in form and substance with the TIA as then in effect.

          SECTION 8.04. Revocation and Effect of Consents. A consent to an amendment, a supplement or a
waiver by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if
notation of the consent is not made on any Security. However, any such Holder or subsequent Holder
may revoke the consent as to its Security or portion of a Security if the Trustee receives written
notice of revocation at any time prior to (but not after) the date the Trustee receives an
Officers’ Certificate certifying that the Holders of the requisite principal amount of Securities
have consented (and not theretofore revoked such consent) to the amendment, supplement or waiver.
An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter
binds every Holder, and a consent thereto given in connection with a tender of a Holder’s
Securities shall not be rendered invalid by such tender.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver or to take any
other action with respect to the Securities under this Indenture. If a record date is fixed, then
notwithstanding the provisions of the immediately preceding paragraph, those Persons who were
Holders at the close of business on such record date (or their duly designated proxies), and only
those Persons, shall be entitled to consent to such amendment, supplement or waiver or to revoke
any consent previously given, whether or not such Persons continue to be Holders after such record
date, and for this purpose the Securities then outstanding shall be computed as of such record
date. No consent shall be valid or effective for more than 90 days after such record date unless
consents from Holders of the principal amount of the Securities required hereunder for such
amendment, supplement or waiver to be effective shall have also been given and not revoked within
such 90-day period.

     After an amendment, supplement or waiver becomes effective, it shall bind every Holder of the
series of Securities unless it is of the type described in any of Section 8.02(i) through Section
8.02(viii). In such case, the amendment, supplement or waiver shall bind each Holder who has
consented to it and every subsequent Holder that evidences the same debt as the consenting Holder’s
Security.

          SECTION 8.05. Notation on or Exchange of Securities. If a supplement changes the terms of a
Security, the Trustee may require the Holder of the Security to deliver it to the Trustee. The
Trustee may place an appropriate notation on the Security regarding the changed terms and return it
to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange
for the Security shall issue and the Trustee shall

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authenticate a new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such amendment or supplement.

          SECTION 8.06. Trustee and Securities Administrator to Sign Amendments, etc. The Trustee and
the Securities Administrator shall sign any supplemental indenture authorized pursuant to this
Article Eight if the supplemental indenture does not adversely affect the applicable rights,
duties, liabilities or immunities of the Trustee or the Securities Administrator. If it does, the
Trustee or the Securities Administrator, as applicable, may, but need not, sign it. In signing or
refusing to sign such supplemental indenture, the Trustee and the Securities Administrator shall
receive, and subject to Section 6.01, shall be fully protected in conclusively relying upon, an
Opinion of Counsel and an Officers’ Certificate, as conclusive evidence that all conditions
precedent to such supplemental indenture have been complied with, that such supplemental indenture
is authorized or permitted by this Indenture, that it is not inconsistent herewith, and that it
will be valid and binding upon the Company and each Guarantor, if any, in accordance with its
terms.

          SECTION 8.07 Subordination Unimpaired. No provisions in any supplemental Indenture that
affect the superior position of the holders of Senior Debt shall be effective against holders of
Senior Debt.

ARTICLE NINE

GUARANTEES OF SECURITIES

          SECTION
9.01. Guarantees of Securities. Any series of Securities may be guaranteed by one or  more of the
Guarantor and any other Guarantor. The terms and the form of any such
Guarantee will be established in the manner contemplated by
Section 2.02 for that particular series of Securities.

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ARTICLE TEN

REDEMPTION

          SECTION 10.01. Applicability of Article. The provisions of this Article Ten shall be
applicable to each series of Securities except as otherwise specified as contemplated by Section
2.02 for such series of Securities.

          SECTION 10.02. Notices to Trustee. If the Company elects to redeem the Securities of a series
pursuant to the redemption provisions of Section 10.08, it shall furnish to the Trustee and the
Securities Administrator, at least five days before notice of such redemption is to be given
pursuant to Section 10.04, an Officers’ Certificate setting forth the Redemption Date, the
principal amount of such Securities to be redeemed and the Redemption Price (or the method of
calculating the Redemption Price).

          SECTION 10.03. Selection of Securities to be Redeemed. If less than all of the Securities of
a series are to be redeemed, the Trustee shall select the Securities to be redeemed by such method
as the Trustee in its sole discretion shall deem fair and appropriate. The particular Securities to
be redeemed shall be selected by the Trustee from the outstanding Securities of the applicable
series not previously called for redemption.

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     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Security selected for partial redemption, the principal amount
thereof to be redeemed. Securities and portions of them selected shall be in minimum amounts of
$2,000 and integral multiples of $1,000 in excess thereof. Except as provided in the preceding
sentence, provisions of this Indenture that apply to Securities called for redemption also apply to
portions of Securities called for redemption.

          SECTION 10.04. Notices to Holders.

          (a) At least 20 days but not more than 75 days before a Redemption Date (unless a different
notice period is specified in the applicable Securities), the Company shall mail in conformity with
Section 15.02 a notice of redemption to each Holder whose Securities are to be redeemed. The notice
shall identify the Securities to be redeemed (including CUSIP, ISIN or similar numbers, if any) and
shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price (or the method of calculating the Redemption Price);

     (iii) if any Security is being redeemed in part, the portion of the principal
amount of such Security to be redeemed and that, after the Redemption Date, upon
surrender of such Security, a new Security or Securities in principal amount equal
to the unredeemed portion will be issued;

     (iv) the name and address of the Paying Agent;

     (v) that Securities called for redemption must be surrendered to the Paying
Agent at the address specified in such notice to collect the Redemption Price;

     (vi) that unless the Company defaults in making the redemption payment,
interest, if any, on Securities called for redemption ceases to accrue on and after
the Redemption Date and the only remaining right of the Holders is to receive
payment of the Redemption Price upon surrender to the Paying Agent of the
Securities; and

     (vii) the aggregate principal amount of Securities being redeemed.

     If any of the Securities to be redeemed is in the form of a Global Security, then the Company
shall modify such notice to the extent necessary to accord with the procedures of the Depositary
applicable to redemptions.

          (b) At the Company’s request, the Trustee shall give the notice required in Section 10.04(a)
in the Company’s name; provided, however, that the Company shall deliver to the
Trustee, at least 15 days prior to the requested mailing date (unless the Trustee consents in
writing to a shorter period), an Officers’ Certificate requesting that the Trustee give such notice
and setting forth the information to be stated in such notice as provided in Section 10.04(a).

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          SECTION 10.05. Effect of Notices of Redemption. Once notice of redemption is mailed pursuant
to Section 10.04, Securities called for redemption become due and payable on the Redemption Date at
the Redemption Price. Upon surrender to the Paying Agent, such Securities shall be paid out at the
Redemption Price, plus accrued and unpaid interest, if any, up to, but not including, the
Redemption Date; provided, however, that if the Redemption Date is after the taking
of a record of the Holders on a record date and on or prior to the related Interest Payment Date,
if any, any accrued and unpaid interest shall be payable to the Person in whose name the redeemed
Securities are registered on such record date. Failure to give notice or any defect in the notice
to any Holder shall not affect the validity of the notice to any other Holder.

          SECTION 10.06. Deposit of Redemption Price. At or prior to 11:00 a.m. New York City time on
the Redemption Date, the Company shall deposit with the Trustee or with the Paying Agent
immediately available funds sufficient to pay the Redemption Price of all Securities to be redeemed
on that date, plus accrued and unpaid interest thereon, if any, up to, but not including, the
Redemption Date. The Trustee or the Paying Agent shall return to the Company any money not required
for that purpose less the expenses of the Trustee as provided herein.

     If the Company complies with the preceding paragraph, interest on the Securities, if any, or
portions thereof to be redeemed (whether or not such Securities are presented for payment) will
cease to accrue on the applicable Redemption Date. If any Security called for redemption shall not
be so paid upon surrender because of the failure of the Company to comply with the preceding
paragraph, then interest, if any, will be paid on the unpaid principal, premium, if any, and
Additional Amounts, if any, from the Redemption Date until such principal, premium, if any, and
Additional Amounts, if any, are paid and, to the extent lawful, on interest, if any, not paid on
such unpaid principal, in each case at the rate provided in the Securities and in Section 3.01.

          SECTION 10.07. Securities Redeemed in Part. Upon surrender of a Security that is redeemed in
part, the Company shall issue and the Trustee shall authenticate for the Holder, at the expense of
the Company, a new Security equal in principal amount to the unredeemed portion of the Security
surrendered.

          SECTION 10.08. Optional Redemption. The Securities may be redeemed at any time on such terms
and subject to such conditions as are specified in such Securities or supplemental Indenture.

     Any redemption pursuant to this Section 10.08 shall be made, to the extent applicable,
pursuant to the provisions of Section 10.02 through Section 10.07.

ARTICLE ELEVEN

CONVERSION OF SECURITIES

          SECTION 11.01. Conversion of Securities. Any series of Securities may, if so specified in
accordance with Section 2.02, be convertible or exchangeable into any securities or property of the
Company or an Affiliate of the Company. The terms and the form of any such

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conversion right will be established in the manner contemplated by Section 2.02 for that
particular series of Securities.

ARTICLE TWELVE

SINKING FUNDS

          SECTION 12.01. Sinking Funds. Any series of Securities may, if so specified in accordance
with Section 2.02, have a requirement for a sinking fund for the retirement of Securities of such
series. The terms and requirements of any such sinking fund and the related payments will be
established in the manner contemplated by Section 2.02 for that particular series of Securities.

ARTICLE THIRTEEN

REPAYMENT AT OPTION OF HOLDERS

          SECTION 13.01. Repayment at Option of Holders. Any series of Securities may, if so specified
in accordance with Section 2.02, have provisions for the repayment of such Securities before their
Maturity at the option of Holders of Securities of such series. The terms and requirements of any
such repayment and option will be established in the manner contemplated by Section 2.02 for that
particular series of Securities.

ARTICLE FOURTEEN

SUBORDINATION OF SECURITIES

          SECTION 14.01. Securities Subordinated to Senior Debt. The Company, for itself, its
successors and assigns, covenants and agrees, and each Holder, by his acceptance of any securities
hereunder, likewise covenants and agrees, that the payment of the principal of and premium, if any,
Additional Amounts, if any, and interest, if any, on each and all of the Securities is hereby
expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment
to the prior payment in full of all Senior Debt.

          (b) If:

     (i) the Company shall default in the payment of any principal of, premium, if
any, or interest, if any, on any Senior Debt when the same becomes due and payable,
whether at maturity or at a date fixed for prepayment or by declaration of
acceleration or otherwise, or

     (ii) any other default shall occur with respect to Senior Debt and the maturity
of such Senior Debt has been accelerated in accordance with its terms,

then, upon written notice of such default to the Company and the Trustee by the holders of Senior
Debt or any trustee therefor, unless and until, in either case, the default has been cured or
waived or has ceased to exist, or, any such acceleration has been rescinded or such Senior Debt has
been paid in full, no direct or indirect payment (in cash, property, securities, by set-off or
otherwise) shall be made or agreed to be made on account of the principal of, premium, if any,
Additional Amounts, if any, or interest, if any, on any of the Securities, or in respect of any

50

 

redemption, retirement, purchase or other acquisition of any of the Securities other than those
made in capital stock of the Company (or cash in lieu of fractional shares thereof).

          (c) If any default occurs (other than a default described in Section 14.01(b)) under the
Senior Debt, pursuant to which the maturity thereof may be accelerated immediately without further
notice (except such notice as may be required to effect such acceleration) or at the expiration of
any applicable grace periods (a “Senior Nonmonetary Default”), then, upon the receipt by the
Company and the Trustee of written notice thereof (a “Payment Blockage Notice”) from or on behalf
of holders of such Senior Debt of the Company specifying an election to prohibit such payment and
other action by the Company in accordance with the following provisions of this Section 14.01(c),
the Company may not make any payment or take any other action that would be prohibited by Section
14.01(b) during the period (the “Payment Blockage Period”) commencing on the date of receipt of
such Payment Blockage Notice and ending on the earlier of (i) the date, if any, on which the
holders of such Senior Debt or their representative notifies the Trustee that such Senior
Nonmonetary Default is cured or waived or ceases to exist or the Senior Debt to which such Senior
Nonmonetary Default relates is discharged or (ii) the 179th day after the date of receipt of such
Payment Blockage Notice. Notwithstanding the provisions described in the immediately preceding
sentence, the Company may resume payments on the Securities following such Payment Blockage Period.

          SECTION 14.02. Distribution on Dissolution, Liquidation and Reorganization; Subrogation of
Securities. Upon any distribution of assets of the Company upon any dissolution, winding up,
liquidation or reorganization of the Company, whether in bankruptcy, insolvency, reorganization or
receivership proceedings or upon an assignment for the benefit of creditors or any other
marshalling of the assets and liabilities of the Company or otherwise (subject to the power of a
court of competent jurisdiction to make other equitable provision reflecting the rights conferred
in this Indenture upon the Senior Debt and the holders thereof with respect to the Securities and
the Holders by a lawful plan or reorganization under applicable bankruptcy law):

          (a) the holders of all Senior Debt shall be entitled to receive payment in full of the
principal thereof, premium, if any, interest, and any interest thereon, due thereon before the
Holders are entitled to receive any payment upon the principal, premium, Additional Amounts,
interest of or on the Securities or interest on overdue amounts thereof;

          (b) any payment or distribution of assets of the Company, any Guarantor or any other obligor
upon the Securities of any kind or character, whether in cash, property or securities, to which the
Holders or the Trustee (on behalf of the Holders) would be entitled except for the provisions of
this Article Fourteen shall be paid by the liquidating trustee or agent or other person making such
payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or
otherwise, directly to the holders of Senior Debt or their representative or representatives or to
the trustee or trustees under any indenture under which any instruments evidencing any of such
Senior Debt may have been issued, ratably according to the aggregate amounts remaining unpaid on
account of the principal of, premium, if any, interest, if any, and any interest thereon, on the
Senior Debt of the Company held or represented by each, to the extent necessary to make payment in
full of all Senior Debt remaining unpaid, after giving effect to any concurrent payment or
distribution to the holders of such Senior Debt; and

51

 

          (c) in the event that, notwithstanding the foregoing, any payment or distribution of assets of
the Company, any Guarantor (if applicable) or any other obligor upon the Securities of any kind or
character, whether in cash, property or securities, shall be received by the Trustee (on behalf of
the Holders) or the Holders before all Senior Debt is paid in full, such payment or distribution
shall be paid over to the holders of such Senior Debt or their representative or representatives or
to the trustee or trustees under any indenture under which any instruments evidencing any of such
Senior Debt may have been issued, ratably as aforesaid, for application to the payment of all
Senior Debt remaining unpaid until all such Senior Debt shall have been paid in full, after giving
effect to any concurrent payment or distribution to the holders of such Senior Debt.

     Subject to the payment in full of all Senior Debt, the Holders shall be subrogated to the
rights of the holders of such Senior Debt to receive payments or distributions of cash, property or
securities of the Company applicable to Senior Debt until the principal, premium, interest, and any
interest thereon, of or on the Securities shall be paid in full and no such payments or
distributions to the Holders of cash, property or securities otherwise distributable to the Senior
Debt shall, as between the Company, its creditors other than the holders of Senior Debt, and the
Holders, be deemed to be a payment by the Company to or on account of the Securities. It is
understood that the provisions of this Article Fourteen are and are intended solely for the purpose
of defining the relative rights of the Holders, on the one hand, and the holders of Senior Debt, on
the other hand. Nothing contained in this Article Fourteen 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 Debt, and the Holders, the obligation of the Company, which is unconditional and
absolute, to pay to the Holders the principal of and premium, if any, Additional Amounts, if any,
and interest, if any, on the Securities as and when the same shall become due and payable in
accordance with their terms, or to affect the relative rights of the Holders and creditors of the
Company other than the holders of Senior Debt, nor shall anything herein or in the Securities
prevent the Trustee or any Holder from exercising all remedies otherwise permitted by applicable
law upon default under this Indenture, subject to the rights, if any, under this Article Fourteen
of the holders of such Senior Debt in respect of cash, property or securities of the Company
received upon the exercise of any such remedy. Upon any payment or distribution of assets of the
Company referred to in this Article Fourteen, the Trustee shall be entitled to conclusively rely
upon a certificate of the liquidating trustee or agent or other person making any distribution to
the Trustee for the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of Senior Debt 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 Fourteen.

     The Trustee, however, shall not be deemed to owe any fiduciary duty to the holders of Senior
Debt. The Trustee shall not be liable to any such holder if it shall pay over or distribute to or
on behalf of Holders or the Company moneys or assets to which any holder of Senior Debt shall be
entitled by virtue of this Article Fourteen. The rights and claims of the Trustee under Section
6.07 shall not be subject to the provisions of this Article Fourteen.

     If the Trustee or any Holder 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

52

 

file such claim in such proceeding, then the holder of any Senior Debt is hereby authorized,
and has the right, to file an appropriate claim or claims for or on behalf of such Holder.

          SECTION 14.03. Payments on Securities Permitted. Nothing contained in this Indenture or in
any of the Securities shall (i) affect the obligation of the Company to make, or prevent the
Company from making, at any time except as provided in Section 14.01 and Section 14.02, payments of
principal of and premium, if any, Additional Amounts, if any, and interest, if any, on the
Securities or (ii) prevent the application by the Trustee of any moneys deposited with it hereunder
to the payment of or on account of the principal of and premium, if any, Additional Amounts, if
any, and interest, if any, on the Securities unless the Trustee shall have received at the
Corporate Trust Office of the Trustee written notice of any event prohibiting the making of such
payment two Business Days (A) prior to the date fixed for such payment, (B) prior to the execution
of an instrument to satisfy and discharge this Indenture based upon the deposit of funds, (C) prior
to the execution of an instrument acknowledging the defeasance of such Securities pursuant to
Section 7.02 or (D) prior to any deposit pursuant to Section 7.03(a) with respect to such
Securities.

          SECTION 14.04. Authorization of Holders to Trustee to Effect Subordination. Each Holder by
his acceptance thereof, whether upon original issue or upon transfer or assignment, authorizes and
directs the Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination as provided in this Article Fourteen and appoints the Trustee his
attorney-in-fact for any and all such purposes.

          SECTION 14.05. Notices to Trustee. The Company shall give prompt written notice to a
Responsible Officer of the Trustee located at the Corporate Trust Office of the Trustee of any fact
known to the Company which would prevent the making of any payment to or by the Trustee in respect
of the Securities. Notwithstanding the provisions of this Article Fourteen or any other provisions
of this Indenture, neither the Trustee nor any Paying Agent (other than the Company) shall be
charged with knowledge of the existence of any Senior Debt or of any event which would prohibit the
making of any payment of moneys to or by the Trustee or such Paying Agent, unless and until the
Trustee or such Paying Agent shall have received (in the case of the Trustee, at the Corporate
Trust Office of the Trustee) written notice thereof from the Company or from the holder of any
Senior Debt or from the trustee for or representative of any Senior Debt together with proof
satisfactory to the Trustee of such holding of such Senior Debt or of the authority of such trustee
or representative; provided, however, that if at least two Business Days prior to the date upon
which by the terms hereof any such moneys may become payable for any purpose (including, without
limitation, the payment of principal and premium, if any, Additional Amounts, if any, and interest,
if any, on any Security) or the date on which the Trustee shall execute an instrument acknowledging
satisfaction and discharge of this Indenture or the defeasance of Securities pursuant to Section
7.02 or the date on which a deposit pursuant to Section 7.03(a) is made, the Trustee shall not have
received with respect to such moneys or the moneys deposited with it as a condition to such
satisfaction and discharge or defeasance the notice provided for in this Section 14.05, then,
anything herein contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such moneys and to apply the same to the purpose for which they were received,
and shall not be affected by any notice to the contrary, which may be received by it on or after
such two Business Days prior to such date. The Trustee shall be entitled to conclusively rely on
the delivery to it of a written

53

 

notice by a person representing himself to be a holder of Senior
Debt (or a trustee or representative on behalf of such holder) to establish that such a notice has
been given by a holder of Senior Debt or a trustee or representative on behalf of any such holder.
In the event that the Trustee determines in good faith that further evidence is required with
respect to the right of any Person as a holder of Senior Debt to participate in any payment or
distribution pursuant to this Article Fourteen, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Debt 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 Fourteen 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 14.06. Trustee as a Holder of Senior Debt. The Trustee shall be entitled to all the
rights set forth in this Article Fourteen in respect of any Senior Debt at any time held by it to
the same extent as any other holder of Senior Debt and nothing in this Indenture shall be construed
to deprive the Trustee of any of its rights as such holder.

          SECTION 14.07. Modification of Terms of Senior Debt. Any renewal or extension of the time of
payment of any Senior Debt or the exercise by the holders of Senior Debt of any of their rights
under any instrument creating or evidencing such Senior Debt, including without limitation the
waiver of default thereunder, may be made or done all without notice to or assent from Holders or
the Trustee.

     No compromise, alteration, amendment, modification, extension, renewal or other change of, or
waiver, consent or other action in respect of, any liability or obligation under or in respect of,
or of any of the terms, covenants or conditions of any indenture or other instrument under which
any Senior Debt is outstanding or of such Senior Debt, whether or not such release is in accordance
with the provisions of any applicable document, shall in any way alter or affect any of the
provisions of this Article Fourteen or of the Securities relating to the subordination thereof

ARTICLE FIFTEEN

MISCELLANEOUS

          SECTION 15.01. Trust Indenture Act Controls. Any reference to a requirement under the TIA
shall apply to this Indenture irrespective of whether or not this Indenture is then qualified
thereunder. If any provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA (or in any other indenture
qualified thereunder), the provision required by the TIA shall control.

          SECTION 15.02. Notices. Any notice or communication by the Company, the Guarantor, if any,
the Trustee or the Securities Administrator to the others is duly given if in writing and delivered
in person, by facsimile or by overnight air courier guaranteeing next day delivery or if mailed by
first-class mail (registered or certified, return receipt requested), in each case to the other’s
address:

54

 

If to either the Company or the Guarantor, if any, to it at:

Nabors Industries, Inc.

515 West Greens Road, Suite 1200

Houston, Texas 77067

Attention: General Counsel

Facsimile: (281) 775-8431

If to the Trustee:

Wilmington Trust Company

Rodney Square North

1100 N. Market Street

Wilmington, DE 19890

Attention: Corporate Market Services

Facsimile: (302) 636-4145

If to the Securities Administrator:

Citibank, N.A.

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Wafaa Orfy

Facsimile: (212) 816-5527

     Each of the Company, the Guarantor, if any, the Trustee and the Securities Administrator by
notice to the others may designate additional or different addresses for subsequent notices or
communications.

     All notices and communications shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next Business Day after
timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.
Notwithstanding the foregoing, notices to the Trustee shall be effective only upon receipt.

     Any notice or communication to a Holder shall be mailed by first-class mail, postage prepaid,
to the Holder’s address shown on the register kept by the Registrar. Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

     If a notice or communication is delivered or mailed in the manner provided above within the
time prescribed, it is duly given, whether or not the addressee receives it.

     If the Company or any Guarantor mails a notice or communication to Holders, it shall mail a
copy to the Trustee and the Securities Administrator at the same time.

55

 

     All notices or communications, including, without limitation, notices to the Trustee or the
Securities Administrator or the Company or any Guarantor by Holders, shall be in writing, except as
set forth below, and in the English language.

     In case by reason of the suspension of regular mail service, or by reason of any other cause,
it shall be impossible to mail any notice required by this Indenture, then such method of
notification as shall be made with the approval of the Trustee shall constitute a sufficient
mailing of such notice.

          SECTION 15.03. Communication by Holders with Other Holders. Holders may communicate pursuant
to TIA Section 312(b) with other Holders with respect to their rights under this Indenture, the
Securities or the Guarantees. The Company, the Guarantor, if any, the Trustee, the Securities
Administrator, each Agent and anyone else shall have the protection of TIA Section 312(c).

          SECTION 15.04. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company or any Guarantor to the Trustee or the Securities Administrator to take
any action under this Indenture, the Company or any Guarantor shall, if requested by the Trustee or
the Securities Administrator, furnish to the Trustee or the Securities Administrator:

     (i) an Officers’ Certificate (which shall include the statements set forth in
Section 15.05) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

     (ii) an Opinion of Counsel (which shall include the statements set forth in
Section 15.05) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been complied with.

          SECTION 15.05. Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a condition or covenant provided for in this Indenture shall
include:

     (i) a statement that the Person making such certificate or opinion has read
such covenant or condition;

     (ii) 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;

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

     (iv) a statement as to whether or not, in the opinion of such Person, such
condition or covenant has been complied with.

56

 

          SECTION 15.06. Rules by Trustee and Agents. The Trustee may make reasonable rules for action
by or at a meeting of Holders. The Securities Administrator , the Registrar or the Paying Agent may
make reasonable rules and set reasonable requirements for its functions.

          SECTION 15.07. Legal Holidays. If a payment date is a Legal Holiday at a place of payment,
payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period. If a record date is a Legal Holiday, the record
date shall not be affected.

          SECTION 15.08. No Recourse Against Others. A director, officer, employee or stockholder of
the Company or any Guarantor, as such, shall not have any liability for any obligations of the
Company or any Guarantor under the Securities, the Guarantees or this Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each Holder by
accepting a Security waives and releases all
such liability. The waiver and release shall be part of the consideration for the issue of the
Securities.

          SECTION 15.09. Governing Law. This Indenture, the Securities and the Guarantees shall be
governed by and construed in accordance with the laws of the State of New York, without giving
effect to applicable principles of conflicts of law.

          SECTION 15.10. Consent to Jurisdiction and Service of Process. Where a Guarantor, if any, is
not organized under the laws of the United States (including the States thereof and the District of
Columbia), such Guarantor hereby or immediately upon becoming a Guarantor appoints the Company as
the authorized agent thereof (the “Authorized Agent”) upon whom process may be served in any
action, suit or proceeding arising out of or based on this Indenture or the Securities which may be
instituted in the Supreme Court of the State of New York or the United States District Court for
the Southern District of New York, in either case in the Borough of Manhattan, The City of New
York, by the Holder of any Security, and to the fullest extent permitted by applicable law, such
Guarantor hereby waives any objection which it may now or hereafter have to the laying of venue of
any such proceeding and expressly and irrevocably accepts and submits, for the benefit of the
Holders from time to time of the Securities, to the nonexclusive jurisdiction of any such court in
respect of any such action, suit or proceeding, for itself and with respect to its properties,
revenues and assets. Such appointment shall be irrevocable unless and until the appointment of a
successor authorized agent for such purpose, and such successor’s acceptance of such appointment,
shall have occurred. Such Guarantor agrees to take any and all actions, including the filing of
any and all documents and instruments, that may be necessary to continue such appointment in full
force and effect as aforesaid. Service of process upon the Authorized Agent with respect to any
such action shall be deemed, in every respect, effective service of process upon such Guarantor.
Notwithstanding the foregoing, any action against such Guarantor arising out of or based on any
Security or the Guarantees may also be instituted by the Holder of such Security in any court in
the jurisdiction of organization of such Guarantor, and such Guarantor expressly accepts the
jurisdiction of any such court in any such action. The Company hereby accepts the foregoing
appointment, as applicable, as agent for service of process.

57

 

          SECTION 15.11. Waiver of Immunity. To the extent that the Guarantor, if any, or any of its
properties, assets or revenues may have or may hereafter become entitled to, or have attributed to
it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit
or proceeding, from the giving of any relief in any thereof, from set-off or counterclaim, from the
jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from
attachment in aid of execution of judgment, or from execution of judgment, or other legal process
or proceeding for the giving of any relief or for the enforcement of any judgment, in any
jurisdiction in which proceedings may at any time be commenced, with respect to its obligations,
liabilities or any other matter under or arising out of or in connection with this Indenture or the
Securities, the Guarantor, to the maximum extent permitted by law, hereby irrevocably and
unconditionally
waives, and agrees not to plead or claim, any such immunity and consents to such relief and
enforcement.

          SECTION 15.12. Judgment Currency. The Guarantor, if any, agrees to indemnify the Trustee and
each Holder against any loss incurred by it as a result of any judgment or order being given or
made and expressed and paid in a currency (the “Judgment Currency”) other than U.S. dollars and as
a result of any variation as between (a) 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 (b) the spot
rate of exchange in The City of New York at which the Trustee or such Holder 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 the Trustee or such Holder. The foregoing indemnity shall constitute a
separate and independent obligation of the Guarantor and 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.

          SECTION 15.13. No Adverse Interpretation of Other Agreements. This Indenture may not be used
to interpret another indenture, loan or debt agreement of the Company, the Guarantor, if any, or
any other Subsidiary of the Guarantor. Any such indenture, loan or debt agreement may not be used
to interpret this Indenture.

          SECTION 15.14. Successors. All agreements of the Company and the Guarantor, if any, in this
Indenture and the Securities shall bind their respective successors. All agreements of the Trustee
and the Securities Administrator in this Indenture shall bind its successor.

          SECTION 15.15. Severability. 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 15.16. Counterpart Originals. The parties may sign any number of copies of this
Indenture by manual or facsimile signature. Each signed copy shall be an original, but all of them
together represent the same agreement. The exchange of copies of this Indenture and of signature
pages by facsimile or PDF transmission shall constitute effective execution and delivery of this
Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall
be deemed to be their original signatures for all purposes.

58

 

          SECTION 15.17. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act,
the Trustee, like all financial institutions and in order to help fight the funding of terrorism
and money laundering, is required to obtain, verify, and record information that identifies each
person or legal entity that establishes a relationship or opens an account with the Trustee. The
parties to this Indenture agree that they will provide the Trustee with such information as it may
request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

          SECTION 15.18. Force Majeure. In no event shall the Trustee or the Securities Administrator be
liable for any failure or delay in the performance of its obligations hereunder arising out of or
caused by, directly or indirectly, forces beyond its control, including, without limitation,
strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services; it beyond understood that
the Trustee and the Securities Administrator shall use reasonable efforts which are consistent with
accepted practices in the banking industry to resume performance as soon as practicable under the
circumstances.

          SECTION 15.19. Table of Contents, Headings, etc. The Table of Contents and headings of the
Articles and Sections of this Indenture have been inserted for convenience of reference only, are
not to be considered a part hereof and shall in no way modify or restrict any of the terms or
provisions hereof.

* *    * *    * *

59

 

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

	 	 	 	 	 	 	 

	 	 	Company:

NABORS INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Trustee:

WILMINGTON TRUST COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Securities Administrator:

CITIBANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Wafaa Orfy
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Guarantor, if any:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 

	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

60

 

	 	 	 	 	 	 	 

	 	 	Guarantor, if any:	 	 
	 
	 	 	 

	 	 
	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

61

 

EXHIBIT A

FACE OF SECURITY

GLOBAL SECURITY LEGEND

     THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE REGISTRAR MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL
SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE INDENTURE AND
(III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.10 OF THE INDENTURE.

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS
SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY 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 MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.*

 

			
	*	 	This paragraph should be included only if the
Security is a Global Security.

Exhibit A-1

 

NABORS INDUSTRIES, INC.

___ SUBORDINATED NOTE DUE ___

			
	 	 	 
	No.                     	 	 
	CUSIP No.                     
	 	[$]                    
	[ISIN:].                     	 	 
	[Common Code:]                     	 	 

     Nabors Industries, Inc., a Delaware corporation (the “Company”), for value received promises
to pay to                      or registered assigns, the principal sum of                      [Dollars] [if
applicable, insert one or more foreign currencies, currency units or composite currencies] [or such
greater or lesser amount as is indicated on the Schedule of Exchanges of Interests in the Global
Securities on the other side of this Security*] on                     .

     [if applicable, insert – Interest Payment Dates:                     

     Record Dates:                     ]

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by facsimile
by one of its duly authorized officers.

Dated:

	 	 	 	 	 

	 	 	NABORS INDUSTRIES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

Certificate of Authentication:

CITIBANK, N.A.

as Authenticating Agent, certifies that this is one of the Securities referred to in the
within-mentioned Indenture.

	 	 	 

	By:
	 	 
	 

	 	 
	 

	 	Authorized Signatory

 

			
	*	 	This phrase should be included only if the Security is a Global Security.

Exhibit A-2

 

REVERSE OF SECURITY

NABORS INDUSTRIES, INC.

___ SUBORDINATED NOTE DUE ______ 

     This Security is one of a duly authorized issue of ___ Subordinated Notes due ___ (the
“Securities”) of Nabors Industries, Inc., a Delaware corporation (the “Company”).

     [if applicable, insert – 1. Interest. The Company promises to pay interest on the principal
amount of this Security at [a rate of ___% per annum][if the Security is a Floating or Adjustable
Rate Security, insert – a rate per annum [computed/determined] in accordance with the [insert
defined name of Floating or Adjustable Rate Provision] set forth below], [if the Security is to
bear interest at a rate determined with reference to an index, refer to description of index below]
until the principal hereof is paid or made available for payment. The Company will pay interest on
                                         (each an “Interest Payment Date”), beginning                                 
        , or if any
such day is not a Business Day, on the next succeeding Business Day. Interest on this Security will
accrue from the most recent Interest Payment Date on which interest has been paid or, if no
interest has been paid, from                                         ; provided that if there is no existing Default
in the payment of interest, and if this Security is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such
next succeeding Interest Payment Date. Further, to the extent lawful, the Company shall pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal, premium, if any, Additional Amounts, if any, and interest (without regard to any
applicable grace period), from time to time on demand at the rate [if applicable, insert – then in
effect on the Securities] [if applicable, insert – of ___% per annum (to the extent that the
payment of such interest shall be legally enforceable)]. Interest will be computed on the basis of
a 360-day year of twelve 30-day months.]

     [if applicable, insert – 2. Method of Payment. The Company will pay interest on this Security
(except defaulted interest) to the Persons who are registered Holders of this Security at the close
of business on the record date next preceding the Interest Payment Date, even if this Security is
canceled after such record date and on or before such Interest Payment Date. The Holder must
surrender this Security to a Paying Agent to collect payments of principal and premium, if any. The
Company will pay the principal of and premium, if any, and Additional Amounts, if any, and interest
on this Security in money of the [United States of America] ___ that at the time of payment is
legal tender for payment of public and private debts. Payments in respect of the Securities
represented by a Global Security (including principal, premium, if any, Additional Amounts, if any,
and interest) will be made by wire transfer of immediately available funds to the accounts
specified by The Depository Trust Company. The Company will make all payments in respect of a
certificated Security (including principal, premium, if any, Additional Amounts, if any, and
interest) at the Corporate Trust Office of the Trustee or at the office or agency of the Paying
Agent maintained for such purpose in The City of New York or, at its option, by mailing a check to
the registered address of each Holder thereof; provided, however, that payments on
a certificated Security will be made by wire transfer to a U.S. dollar account maintained by the
payee with a bank in the [United States] ___ if such Holder elects

Exhibit A-3

 

payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such
effect designating such account no later than 30 days immediately preceding the relevant due date
for payment (or such other date as the Trustee may accept in its discretion).]

     [If the Security is not to bear interest prior to Maturity, insert – The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of ___% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such default in payment
to the date payment of such principal has been made or duly provided for. Interest on any overdue
principal shall be payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of ___% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of such demand for
payment to the date payment of such interest has been made or duly provided for, and such interest
shall also be payable on demand.]

     3. Ranking [if applicable, insert – and Guarantees.] This Security is subordinated in right
of payment to Senior Debt as set forth in the Indenture hereinafter referred to, is an unsecured
obligation of the Company [if applicable, insert – and is guaranteed pursuant to guarantees (the
“Guarantees”) by [Nabors Industries Ltd., a Bermuda exempted company/                                         ] (the
“Guarantor”). The Guarantees are unsecured obligations of the Guarantor. References herein to the
Indenture or the Securities shall be deemed also to refer to the Guarantees set forth in the
Indenture except where the context otherwise requires.] [if applicable, insert – and is guaranteed
pursuant to guarantees (the “Guarantees”) by Nabors Industries Ltd., a Bermuda exempted company,
and                                          (jointly, the “Guarantor” unless the context implies otherwise). The
Guarantees are unsecured obligations of each Guarantor for which each is jointly and severally
liable. References herein to the Indenture or the Securities shall be deemed also to refer to the
Guarantees set forth in the Indenture except where the context otherwise requires.]

     [if the Security is a Floating or Adjustable Rate Security with respect to which the
principal, premium, if any, or interest, if any, may be determined with reference to an index,
insert the text of the Floating or Adjustable Rate Provision.]

     [if applicable, insert – 4. Optional Redemption.

     (a) This Security is redeemable, in whole or in part, at any time, at the Company’s option, at
a Redemption Price equal to [the greater of (1) 100% of the principal amount of this Security then
outstanding to be redeemed, or (2) the sum of the present values of the remaining scheduled
payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date),
if any, computed by discounting such payments to the Redemption Date on a semiannual basis
(assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the sum of ___
basis points plus the Adjusted Treasury Rate on the third Business Day prior to the Redemption
Date, as calculated by an Independent Investment Banker, plus accrued and unpaid interest hereon,
if any, up to, but not including, the Redemption Date (subject to the right of the holder of record
of this Security on the relevant record date to receive interest on the relevant Interest Payment
Date as provided in Section 10.05 of the Indenture).]

Exhibit A-4

 

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities” for the maturity corresponding to the Optional Redemption Comparable
Treasury Issue (if no maturity is within three months before or after the remaining term of this
Security, yields for the two published maturities most closely corresponding to the Optional
Redemption Comparable Treasury Issue will be determined and the Adjusted Treasury Rate will be
interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest
month); or if such release (or any successor release) is not published during the week preceding
the calculation date or does not contain such yields, the rate per annum equal to the semiannual
equivalent yield to maturity of the Optional Redemption Comparable Treasury Issue, calculated using
a price for the Optional Redemption Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Optional Redemption Comparable Treasury Price for such redemption
date.

     “Independent Investment Banker” means                     , or if such firm is unwilling or unable
to serve as such, an independent investment and banking institution of national standing appointed
by the Trustee.

     “Optional Redemption Reference Treasury Dealer” means each of up to five dealers to be
selected by the Company [if applicable, insert – and the Guarantor], and [its/their] respective
successors; provided that if any of the foregoing ceases to be, and has no affiliate that is, a
primary U.S. governmental securities dealer (a “Primary Treasury Dealer”), the Company [and the
Guarantor] will substitute for it another Primary Treasury Dealer.

     “Optional Redemption Comparable Treasury Issue” means the U.S. Treasury security selected by
an Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of this Security, or, if, in the reasonable judgment of the
Independent Investment Banker, there is no such security, then the Optional Redemption Comparable
Treasury Issue will mean the U.S. Treasury security or securities selected by the Independent
Investment Banker as having an actual or interpolated maturity or maturities comparable to the
remaining term of this Security.

     “Optional Redemption Comparable Treasury Price” means (1) the average of five Optional
Redemption Reference Treasury Dealer Quotations for the applicable redemption date, after excluding
the highest and lowest Optional Redemption Reference Treasury Dealer Quotations, or (2) if the
Independent Investment Banker obtains fewer than five such Optional Redemption Reference Treasury
Dealer Quotations, the average of all such quotations.

     “Optional Redemption Reference Treasury Dealer Quotations” means, with respect to each
Optional Redemption Reference Treasury Dealer and any Redemption Date for this Security, the
average, as determined by the Independent Investment Banker of the bid and asked prices for the
Optional Redemption Comparable Treasury Issue (expressed in each case as a

Exhibit A-5

 

percentage of its principal amount) quoted in writing to the Independent Investment Banker and
the Trustee at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption
Date.]

     [if applicable, insert – The sinking fund for Securities of this series provides for the
redemption on                      in each year beginning with the year ___ and ending with the year ___
of [not less than [$]                     (“mandatory sinking fund”) and not more than] [$]                    
aggregate principal amount of Securities of this series. Securities of this series acquired or
redeemed by the Company otherwise than through [mandatory] sinking fund payments may be credited
against subsequent [mandatory] sinking fund payments otherwise required to be made [in the inverse
order in which they become due).]

     [If the Security is convertible into or exchangeable for other securities or property, specify
the conversion or exchange features and the form of conversion notice pursuant to the Indenture.]

     [If the Security is not a Discount at Issue Security, insert – If an Event of Default shall
occur and be continuing, the principal of the Securities may be declared due and payable in the
manner and with the effect provided in the Indenture.]

     [If the Security is a Discount at Issue Security, insert – If an Event of Default with respect
to the Securities shall occur and be continuing, an amount of principal of the Securities may be
declared due and payable in the manner and with the effect provided in the Indenture. Such amount
shall be equal to [Insert formula for determining the amount]. Upon payment (i) of the amount of
principal so declared due and payable and (ii) of interest, if any, on any overdue principal and
overdue interest (in each case to the extent that the payment of such interest shall be legally
enforceable), all of the Company’s obligations in respect of the payment of the principal of and
interest, if any, on the Securities shall terminate.]

     5. Paying Agent and Registrar. Initially, Citibank, N.A. (the “Trustee”), the Securities
Administrator under the Indenture, will act as Paying Agent and Registrar. The Company may change
any Paying Agent, Registrar, co-registrar or additional paying agent without notice to any Holder.
[if applicable, insert – The Guarantor or any of its Subsidiaries may act in any such capacity.]

     6. Indenture. The Company issued this Security under an Indenture dated as of
                     (as amended, supplemented or otherwise modified from time to time, the
“Indenture”) among the Company [if applicable, insert – , the Guarantor] and the Trustee. The terms
of this Security include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). This
Security [if applicable, insert – and the Guarantees] [is/are] subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a statement of such terms.
To the extent any provision of this Security conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling (to the extent permitted
by law). The Securities are [secured/unsecured] obligations of the Company. The Company initially
has issued [$]                     aggregate principal amount of Securities.

Exhibit A-6

 

The Company may issue Additional Securities under the Indenture. Capitalized terms used but
not defined in this Security have the respective meanings given to such terms in the Indenture.

     7. Denominations, Transfer, Exchange. The Securities are issuable only in registered form
without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof. The transfer of this Security may be registered and this Security may be exchanged as
provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things,
to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required
by law or permitted by the Indenture. The Registrar need not exchange or register the transfer of
this Security during the period between a record date and the corresponding Interest Payment Date.

     8. Persons Deemed Owners. The registered Holder of a Security shall be treated as its owner
for all purposes.

     9. Amendments and Waivers. Subject to certain exceptions and limitations, the Indenture or
this Security may be amended or supplemented to the extent they effect the Securities or their
Holders with the consent of the Holders of at least a majority in aggregate principal amount of the
then outstanding Securities, and compliance in a particular instance by the Company [and the
Guarantor] with any provision of the Indenture with respect to the Securities may be waived (other
than certain provisions, including any continuing Default or Event of Default in the payment of the
principal of or premium, if any, Additional Amounts, if any, or interest, if any, on the
Securities) by the Holders of at least a majority in aggregate principal amount of the Securities
then outstanding in accordance with the terms of the Indenture. Without the consent of any Holder,
the Company[, the Guarantor] and the Trustee may amend or supplement the Indenture or this Security
to: (i) convey, transfer, assign, mortgage or pledge to the Trustee as security for this Security
any property or assets; (ii) to evidence the succession of another entity to the Company [or the
Guarantor], or successive successions, and the assumption by the successor entity of the covenants,
agreements and obligations of the Company [or the Guarantor] pursuant to Section 4.01 or Section
4.03 of the Indenture; (iii) to add to the covenants of the Company [or the Guarantor] such further
covenants, restrictions, conditions or provisions as the Company [or the Guarantor] and the Trustee
shall consider to be for the protection of the Holders of Securities, to surrender any right or
power conferred upon the Company [or the Guarantor], and to make the occurrence, or the occurrence
and continuance, of a default in any such additional covenants, restrictions, conditions or
provisions an Event of Default permitting the enforcement of all or any of the several remedies
provided in the Indenture, provided that in respect of any such additional covenant, restriction,
condition or provision such amendment or supplement may provide for a particular period of grace
after default (which period may be shorter or longer than that allowed in the case of other
defaults) or may provide for an immediate enforcement upon such an Event of Default or may limit
the remedies available to the Trustee upon such an Event of Default or may limit the right of the
Holders of a majority in aggregate principal amount of the Securities to waive such an Event of
Default; (iv) to add to, change or eliminate any of the provisions of the Indenture in respect of
the Securities including without limitation, with respect to any of the provisions of Article
Fourteen of the Indenture; provided that any such addition, change or elimination (1) shall neither
(A) apply to Securities created prior to the execution of such supplemental indenture and entitled
to the benefit of such provision nor (B) modify the rights of the Holder of any such

Exhibit A-7

 

Security with respect to such provision or (2) shall become effective only when there is no
such Security outstanding; (v) to add any additional Events of Default for the benefit of the
Holders of the Securities; (vi) to establish the form or terms of Securities of any series as
permitted by Article Two of the Indenture; (vii) to cure any ambiguity or omission or to correct or
supplement any provision contained in the Indenture or in any supplemental indenture which may be
defective or inconsistent with any other provision contained in the Indenture or in any
supplemental indenture, provided that no such action shall adversely affect the interests of the
Holders of this Security; (viii) to provide for uncertificated Securities in addition to or in
place of certificated Securities, subject to any restrictions contained in the Indenture; (ix) to
add to or change any of the provisions of the Indenture to such extent as shall be necessary to
permit or facilitate the issuance of Securities denominated in one or more Foreign Currencies,
currency units or composite currencies; (x) to provide for the issuance of Additional Securities
and related Guarantees, if any, in accordance with the Indenture; (xi) to secure the Securities;
(xii) to evidence and provide for the acceptance of appointment by a successor Trustee with respect
to the Securities and to add to or change any of the provisions of the Indenture as shall be
necessary to provide for or facilitate the administration of the trusts under Indenture by more
than one Trustee pursuant to the requirements of the Indenture or provide additional roles to any
Trustee such as any Agent, authenticating agent, conversion agent or any other agent role to the
Securities; (xiii) to effect or maintain, or otherwise comply with the requirements of the SEC in
connection with, the qualification of the Indenture under the TIA; (xiv) to effect any provision of
the Indenture; or (xv) to make any other change that does not adversely affect the rights of any
Holder.

     The right of any Holder to participate in any consent required or sought pursuant to any
provision of the Indenture (and the obligation of the Company to obtain any such consent otherwise
required from such Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of this Security as of a record date fixed by the Company in accordance with the
terms of the Indenture.

     10. Defaults and Remedies. Events of Default include: (i) default in the payment of the
principal of or premium, if any, on any Security at its Maturity, and continuance of such default
for a period of 10 days; or (ii) default in the payment of interest, if any, or Additional Amounts,
if any, upon any of the Securities when they become due and payable, and continuance of such
default for a period of 30 days; or (iii) default in the performance or observance, or breach, of
any covenant of the Company [or any Guarantor] in any Security or the Indenture (other than a
covenant a default in whose performance or whose breach is elsewhere in Section 5.01 of the
Indenture as it relates to this series of Securities specifically dealt with), and continuance of
such default or breach for a period of 90 days after there has been given, by registered or
certified mail, to the Company [and the Guarantor] by the Trustee or to the Company[, the
Guarantor] and the Trustee by the Holders of at least 25% in aggregate 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” under the Indenture; or (iv) certain
events specified in the Indenture relating to the bankruptcy, insolvency or reorganization of the
Company [or any Guarantor]; or (v) the Guarantees cease to be in full force and effect or become
unenforceable or invalid or are declared null and void (other than in accordance with the terms of
such Guarantees) or any Guarantor denies or disaffirms its obligations under such Guarantees.]

Exhibit A-8

 

     If an Event of Default (other than an Event of Default referred to in clause (iv) of the
preceding paragraph) with respect to this Security occurs and is continuing, the Trustee by notice
to the Company [and the Guarantor], or by the Holders of at least 25% in aggregate principal amount
of the then outstanding Securities by written notice to the Company[, the Guarantor] and the
Trustee, may declare all of the then outstanding Securities to be due and payable immediately. If
an Event of Default referred to in such clause (iv) occurs, acceleration of all amounts payable on
the Securities shall be automatic. The amount due and payable upon the acceleration of any Security
is equal to 100% of the principal amount thereof plus premium, if any, Additional Amounts, if any,
and accrued and unpaid interest, if any, to the date of payment. Holders may not enforce the
Indenture or this Security except as provided in the Indenture. The Trustee does require indemnity
reasonably satisfactory to it before it enforces the Indenture or this Security. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then outstanding Securities
may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders
notice of any continuing default (except a default in payment of principal, premium, if any,
Additional Amounts, if any, or interest, if any) if it determines that withholding notice is in
their interests. Each of the Company [and the Guarantor] must furnish an annual compliance
certificate to the Trustee.

     11. Additional Amounts. If the Company [or the Guarantor] is required to withhold or deduct
any amount for or on account of any Taxes for any payment made under or with respect to this
Security, it will pay any Additional Amounts.

     12. Discharge or Defeasance Prior to Maturity. The Indenture shall be satisfied and
discharged upon the payment of all of the Securities, and it may be satisfied and discharged
(except for certain obligations) upon the irrevocable deposit with the Trustee of cash, or U.S.
Government Obligations or a combination thereof sufficient for such payment. The Indenture also
contains provisions for defeasance of (i) the entire indebtedness of the Company on the Securities
and (ii) certain restrictive covenants and the related Events of Default, subject to compliance by
the Company with certain conditions set forth in the Indenture.

     13. Trustee Dealings with the Company [and the Guarantor]. The Trustee in its individual or
any other capacity may become the owner or pledgee of this Security and may otherwise deal with the
Company[, the Guarantor] or any of [its/their] Affiliates with the same rights it would have if it
were not the Trustee.

     14. No Recourse Against Others. A director, officer, employee or stockholder of the Company
[or the Guarantor], as such, shall not have any liability for any obligations of the Company [or
the Guarantor] under this Security[, the Guarantees] or the Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. Each Holder by accepting this
Security waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of this Security.

     15. Authentication. This Security shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose until authenticated by the manual signature of an authorized
signatory of the Trustee, which signature shall be conclusive evidence that this Security has been
authenticated under the Indenture.

Exhibit A-9

 

     16. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused a CUSIP number to be printed on this
Security as a convenience to the Holders of this Security. No representation is made as to the
correctness of such number either as printed on this Security or as contained in any notice of a
redemption and that reliance may be placed only on the other identification numbers printed on this
Security.

     17. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     18. Governing Law. The Indenture[, the Guarantees] and this Security shall be governed by and
construed in accordance with, the laws of the State of New York, without regard to conflicts of law
principles.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Request may be made to it at:

Nabors Industries, Inc.

515 West Greens Road, Suite 1200

Houston, Texas 77067

Attention: General Counsel

Telephone No.: (281) 874-0035

Telecopier No.: (281) 775-8431

Exhibit A-10

 

[if applicable, insert – FORM OF NOTATION ON SECURITY

RELATING TO GUARANTEES

     The Guarantor (which term includes any successor Person in such capacity under the Indenture),
has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and
subject to the provisions in the Indenture, the due and punctual payment of the principal of and
premium, if any, Additional Amounts, if any, and interest, if any, on these Securities and all
other amounts due and payable under the Indenture and these Securities by the Company.

     The obligations of the Guarantor to the Holders of Securities and to the Trustee pursuant to
the Guarantees and the Indenture are expressly set forth in Article Nine of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Guarantees.

	 	 	 	 	 	 	 

	 	 	Guarantor:	 	 
	 
	 	 	 	 	 	 
	 	 	NABORS INDUSTRIES LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 
	 

	 	 

	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:
	 	]	 	 

Exhibit A-11

 

ASSIGNMENT FORM

     To assign this Security, fill in the form below: (I) or (we) assign and transfer this
Security to:                                                             

 

(Insert assignee’s social security or tax I.D. number)

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint                                                              as agent to transfer
this Security on the books of the Company. The agent may substitute another to act for him.

	 	 	 

	Date:
	 	 
	 

	 	 
	 
	 	 
	Your Signature:
	 	 
	 

	 	 
	 

	 	(Sign exactly as your name appears on the face of this Security)
	 
	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Participant in a Recognized Signature Guaranty Medallion Program)

Exhibit A-12

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY**

     The following increases or decreases in the principal amount of this Global Security have been
made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount	 	 
	 	 	Amount of	 	Amount of	 	of Global Security	 	 
	 	 	Decrease in	 	Increase in	 	Following Such	 	Signature of Authorized
	Date of	 	Principal Amount	 	Principal Amount	 	Decrease (or	 	Signatory, Trustee or
	Transaction	 	of Global Security	 	of Global Security	 	Increase)	 	Securities Custodian
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 

 

			
	**	 	This Schedule should be included only if the
Security is a Global Security.

Exhibit A-13

 

[FORM OF CONVERSION NOTICE]

To Nabors Industries, Inc.:

The undersigned owner of this Security hereby irrevocably exercises the option to convert this
Security, or portion hereof (which is $2,000 or an integral multiple of $1,000 in excess thereof)
below designated, into shares of [describe the “Exchange Securities,” which are the securities into
which this Security is convertible or for which this Security is exchangeable], in accordance with
the terms of the Indenture, and directs that the [Exchange Securities] issuable and deliverable
upon the conversion, together with any check in payment for fractional [Exchange Securities] and
any Securities representing any unconverted principal amount hereof, be issued and delivered to the
registered holder hereof unless a different name has been indicated below. If this Notice is being
delivered on a date after the close of business on a record date and prior to the opening of
business on the related Interest Payment Date (unless this Security or the portion thereof being
converted has been called for redemption on a Redemption Date within such period), this Notice is
accompanied by payment of an amount equal to the interest payable on such Interest Payment Date, if
any, of the principal of this Security to be converted. If [Exchange Securities] are to be issued
in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect hereto. Any amount required to be paid by the undersigned on account of
interest accompanies this Security.

Principal Amount to be Converted (which is $2,000 or an integral multiple of $1,000 in excess
thereof, if less than all [if applicable, insert the equivalent thereof in one or more Foreign
Currencies, currency units or composite currencies]):

[$]                           Dated                     

	 	 	 

	 

	 	 
	 

	 	Signature

[If applicable, Signature(s) must be guaranteed by an institution which is a member of one of the
following recognized signature Guarantee Programs: (i) The Securities Transfer Agent Medallion
Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock
Exchange Medallion Program (SEMP); or (iv) another guarantee program acceptable to the Trustee.

	 	 	 

	 

	 	 
	 
	 

	 	Signature Guarantee]

Exhibit A-14

 

Fill in for registration of Exchange Securities and Security if to be issued otherwise than to the
registered holder.

	 	 	 

	 

	 	 
	 

	 	(Name)
	 
	 	 
	 

	 	 
	 

	 	(Address)
	 
	 	 
	 

	 	     Please print Name and Address

     
(including zip code)

Social Security or other Taxpayer Identifying Number:                     

Exhibit A-15exv4w4

Exhibit 4.4

GRAHAM CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

1. Purpose of Plan

     The purpose of the Plan is to provide employees of the Company with an opportunity to
purchase Common Stock at a discount through payroll deductions. The Plan is intended to qualify as
an employee stock purchase plan under Section 423 of the Code, and the provisions of the Plan shall
be construed consistent with such intention.

2. Definitions

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Applicable Percentage” means, with respect to an Offering Period, 85%, or
such other percentage from 85% to 100%, as determined by the Committee in its sole discretion for
that Offering Period and applicable to all Participants.

     (b) “Board” means the Board of Directors of Graham.

     (c) “Code” means the Internal Revenue Code of 1986, as amended from time to time,
and any regulations promulgated and other official guidance issued thereunder.

     (d) “Committee” means the committee established pursuant to Section 4 to be
responsible for the general administration of the Plan.

     (e) “Common Stock” means Graham’s common stock, par value $0.10 per share.

     (f) “Company” means Graham and each of its U.S. “subsidiary corporations,” as
defined by Section 424(f) of the Code.

     (g) “Eligible Compensation” means the regular earnings of an Eligible Employee,
including salary, overtime, bonuses, and salary reduction contributions pursuant to elections under
a plan subject to Sections 125 or 401(k) of the Code.

     (h) “Eligible Employee” means any employee of the Company that meets the
eligibility requirements of Section 5.

     (i) “Enrollment Form” means the electronic or hardcopy form filed with the
Committee or its designated agent pursuant to Section 6.

     (j) “Fair Market Value” of Common Stock on a given date means the closing sale
price of the Common Stock on the NYSE Amex, or if the NYSE Amex is not open for trading on such
date, then on the most recent preceding date when the NYSE Amex is open for trading.

     (k) “Graham” means Graham Corporation, a Delaware corporation.

     (l) “Offering Commencement Date” means, with respect to an Offering Period, the
first day of that Offering Period.

     (m) “Offering Period” means a six-month period; provided, however, that the first
Offering Period shall commence on September 1, 2010 and shall end on December 31, 2010. Successive
Offering Periods shall commence on the day following the end of the preceding Offering Period
(i.e., January 1 or July 1) and shall end on the six-month anniversary of the commencement date
(i.e., June 30 or December 31).

     (n) “Participant” means an Eligible Employee who elects to participate in the
Plan by filing an Enrollment Form pursuant to Section 6.

 

 

     (o) “Payroll Deduction Account” means the account established for a Participant
to hold payroll deductions pursuant to Section 6.

     (p) “Plan” means this Graham Corporation Employee Stock Purchase Plan, as set
forth herein and as amended from time to time.

     (q) “Purchase Date” means, with respect to an Offering Period, the last day of that
Offering Period.

     (r) “Rule 16b-3” means Rule 16b-3 promulgated under the Securities Exchange Act
of 1934, as amended, or any successor rule thereto.

3. Shares Subject to the Plan

     Subject to the provisions of Section 12, the total number of shares of Common Stock which
may be purchased by employees under the Plan shall not exceed 200,000. Shares subject to the Plan
may be either authorized but unissued shares or shares that were once issued and subsequently
reacquired by the Company.

4. Administration of the Plan

     The Plan shall be administered by the Committee appointed by the Board, which shall be
comprised of two or more members of the Board, and each member of the Committee shall be a
“non-employee director” within the meaning of Rule 16b-3. The Committee shall be the Compensation
Committee of the Board unless the Board shall appoint another committee to administer the Plan.

     Subject to the express provisions of the Plan, the Committee shall have the authority to
take any and all actions necessary to implement the Plan and to interpret the Plan, to prescribe,
amend and rescind rules and regulations relating to it, and to make all other determinations
necessary or advisable in administering the Plan. All of such determinations shall be final and
binding upon all persons. The Committee may request advice or assistance or employ such other
persons as are necessary for proper administration of the Plan.

5. Eligible Employees

     Any employee of the Company shall be eligible to participate in the Plan, except an employee
who owns (or is considered as owning within the meaning of Section 424(d) of the Code) stock
possessing 5% or more of the total combined voting power or value of all classes of stock of the
Company. No director of the Company who is not an employee shall be eligible to participate in the
Plan.

6. Election to Participate

     An Eligible Employee may become a Participant effective on the first day of any Offering
Period coincident with or following the date he or she becomes an Eligible Employee by filing with
the Committee or its designated agent an Enrollment Form authorizing specified regular payroll
deductions from his or her Eligible Compensation. Such regular payroll deductions shall be subject
to a maximum deduction of a maximum dollar amount specified by the Committee for such Offering
Period.

     Payroll deductions for an Offering Period shall commence on the first payroll date occurring
on or after the applicable Offering Commencement Date and shall end on the last payroll date
occurring on or before the Purchase Date for that Offering Period. A Participant’s payroll
deductions shall be credited to the Payroll Deduction Account that the Company has established in
the name of the Participant.

     A Participant may at any time withdraw from the Plan and cease to be a Participant following
the end of the Offering Period in which the election is made to discontinue participation. A
Participant may, to be effective as of the first day of the next following Offering Period,
increase or decrease his or her payroll deduction by filing a new Enrollment Form. Elections shall
last the entire Offering Period, or until the employee ceases to be a Participant, whichever is
longer.

     Enrollment Forms must be filed with the Committee or its designated agent not less than ten
days before the beginning of an Offering Period to be effective for that Offering Period, unless a
shorter period

 

 

of time is prescribed by the Committee. An Enrollment Form not filed within the
prescribed filing period shall be effective the first day of the Offering Period following the
Offering Period in which it would otherwise become effective.

     As a condition of participation in the Plan, each Participant agrees to notify the Company if
he or she sells or otherwise disposes of any Common Stock purchased by him or her under the Plan
within two years of the Purchase Date on which such shares were purchased.

7. Purchase of Shares

     Each Participant having eligible funds in his or her Payroll Deduction Account on a Purchase
Date shall be deemed, without any further action, to have purchased the number of full shares of
Common Stock which the eligible funds in his or her Payroll Deduction Account could purchase on
that Purchase Date at a price per share that shall be the lesser of (a) the Applicable Percentage
of the Fair Market Value of such share on the Purchase Date, or (b) the Applicable Percentage of
the Fair Market Value of such share on the Offering Commencement Date. The Payroll Deduction
Account of each such Participant shall be charged for the amount of such purchase and shares shall
be issued to the Participant as of the Purchase Date. No fractional shares shall be purchased; any
funds in a Participant’s Payroll Deduction Account that are insufficient to purchase a full share
shall be retained in the Participant’s Payroll Deduction Account for the following Offering Period,
subject to earlier payment to the Participant pursuant to Section 13 or 15. Except for amounts not
expended because of the preceding sentence, any funds left over in a Participant’s Payroll
Deduction Account after a Purchase Date shall be returned to the Participant.

     As soon as administratively practicable following each Purchase Date on which a purchase of
shares occurs, the Company shall arrange for the delivery to each Participant or his or her broker,
or a broker designated by the Committee, of the shares purchased by that Participant on that
Purchase Date.

8. Registration of Shares

     Shares of Common Stock will be registered only in the name of the Participant or, if he or she
so indicates on his or her Enrollment Form, in the Participant’s name jointly with one other
person, with right of survivorship.

9. Limitation on Purchases

     (a) During any one calendar year, no Participant shall have the right to purchase under the
Plan (and all other plans qualified under Section 423 of the Code) shares of Common Stock having a
Fair Market Value (determined as of an Offering Commencement Date) in excess of $25,000. The
purpose of this limitation is to comply with Section 423(b)(8) of the Code and shall be interpreted
accordingly.

     (b) A Participant’s Payroll Deduction Account may not be used to purchase Common Stock on
any Purchase Date to the extent that after such purchase the Participant would own (or be
considered as owning within the meaning of Section 424(d) of the Code) stock possessing 5% or more
of the total combined voting power or value of all classes of stock of the Company. For this
purpose, stock which the Participant may purchase under any outstanding option shall be treated as
owned by such Participant. As of the first Purchase Date on which this Section 9(b) limits a
Participant’s ability to purchase Common Stock, the employee shall cease to be an Eligible Employee
and a Participant.

10. Rights as a Stockholder

     None of the rights or privileges of a stockholder of Graham shall exist with respect to shares
of Common Stock purchased under the Plan until the date as of which such shares are delivered
pursuant to Section 7.

11. Rights Not Transferable

     Except as expressly provided in Section 13, neither payroll deductions credited to a
Participant’s Payroll Deduction Account nor any rights with regard to participation in the Plan nor
the right to receive shares of Common Stock shall be transferable in any way by a Participant.

12. Change in Capital Structure

 

 

     In the event of a stock dividend, stock split or combination of shares, recapitalization or
merger in which Graham is the surviving corporation or other change in Graham’s capital stock
applicable to all stockholders generally, the number and kind of shares of stock or other
securities of Graham to be subject to the Plan, the maximum number of shares or other securities
which may be delivered under the Plan, and other relevant provisions shall be appropriately
adjusted by the Committee, whose determination shall be binding on all persons.

     If Graham is a party to a consolidation or a merger in which Graham is not the surviving
corporation, a transaction that results in the acquisition of substantially all of Graham’s
outstanding stock by a single person or entity, or a sale or transfer of substantially all of
Graham’s assets, the Committee may take such actions with respect to the Plan as the Committee
deems appropriate.

     Notwithstanding anything in the Plan to the contrary, the Committee may take the foregoing
actions without the consent of any Participant, and the Committee’s determination shall be
conclusive and binding on all persons for all purposes.

13. Retirement, Termination and Death

     In the event of a Participant’s death or retirement or termination of employment for any
reason, or in the event that a Participant ceases to be such, then no further purchase of shares
shall be made by him or her under the Plan. In such event, the amount remaining in the employee’s
Payroll Deduction Account shall be refunded to him or her without interest. In the event of a
Participant’s death, the amount in his or her Payroll Deduction Account shall be delivered without
interest to the beneficiary designated by the Participant in a writing filed with the Company. If
no beneficiary has been designated, or if the designated beneficiary does not survive the
Participant, such amount shall be delivered to the employee’s estate without interest.

14. Amendment of the Plan

     The Board may at any time, or from time to time, amend the Plan in any respect; provided,
however, that the stockholders of Graham must approve any amendment that would materially
(a) increase the benefits accruing to Participants under the Plan, (b) increase (other than
pursuant to Section 12) the number of securities that may be issued under the Plan, or (c) modify
the requirements as to eligibility for participation in the Plan.

15. Termination of the Plan

     The Plan and all rights of employees hereunder shall terminate on the earlier of: (a) the
Purchase Date that Participants become entitled to purchase a number of shares greater than the
number of shares remaining available for purchase under the Plan; or (b) a date specified by the
Board in its sole discretion. In the event that the Plan terminates under circumstances described
in clause (a) of this Section, the shares remaining as of the termination date shall be purchased
by Participants on a pro-rata basis. Upon termination of the Plan, all amounts in an employee’s
Payroll Deduction Account that are not used to purchase Common Stock will be refunded to such
employee.

16. General Provisions

     (a) Term of Plan. The Plan shall become effective upon (a) due approval of the Plan
by the stockholders of the Company within 12 months after its adoption by the Board, and (b) the
effectiveness of a Registration Statement on Form S-8 under the Securities Act, as amended,
covering the shares of Common Stock subject to the Plan. Once effective, the Plan shall continue in
effect until all of the shares of Common Stock available under the Plan, as increased or adjusted
from time to time, have been issued under the Plan, unless sooner terminated by the Board.

     (b) Use of Funds. All payroll deductions received or held by the Company under the
Plan shall be general corporate funds, and as such, may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate payroll deductions or pay interest
thereon.

     (c) No Limit on Other Compensation Plans or Arrangements. Nothing contained in the
Plan shall prevent the Company from adopting or continuing in effect other or additional
compensation plans or

 

 

arrangements, and such plans or arrangements may be either generally
applicable or applicable only in specific cases.

     (d) No Right to Employment. Participation in the Plan shall not be construed as
giving a Participant the right to be retained as an employee of the Company, nor will it affect in
any way the right of the Company to terminate a Participant’s employment at any time, with or
without cause.

     (e) No Guarantee of Tax Consequences. No person connected with the Plan in any
capacity, including, but not limited to, the Company and its directors, officers, agents and
employees, makes any representation, commitment, or guarantee that any tax treatment, including,
but not limited to, federal, state and local income tax treatment, will be applicable, or that such
tax treatment will apply to or be available to a Participant on account of participation in the
Plan.

     (f) Government and Other Regulations. The Plan, and the grant and exercise of the
rights to purchase shares hereunder, and the Company’s obligation to sell and deliver shares upon
the exercise of rights to purchase shares, shall be subject to all applicable federal, state and
foreign laws, rules and regulations, and to such approvals by any regulatory or government agency
as may, in the opinion of counsel for the Company, be required.

     (g) Indemnification. The Company shall indemnify and hold harmless each member of the
Board or the Committee and other persons connected with the Plan in any capacity, including, but
not limited to, the employees and directors of the Company performing services on behalf of the
Committee, against any liability, cost or expense arising as a result of any claim asserted by any
person or entity with respect to any action or failure to act of such individuals taken in
connection with this Plan, except claims or liabilities arising on account of the willful
misconduct or bad faith of such Board member, Committee member or individual.

     (h) Governing Law; Venue. The validity and construction of the Plan and all
determinations made and actions taken pursuant hereto, to the extent that federal laws do not
control, will be governed by the laws of the State of New York, without giving effect to the
principles of conflicts of laws. Any action arising under or related to the Plan shall be subject
to the jurisdiction and venue of the courts located in Monroe County, New York.

     (i) Severability. If any provision of the Plan is, becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan under any law
deemed applicable by the Committee, then such provision shall be construed or deemed amended to
conform to applicable laws, or if it cannot be so construed or deemed amended without, in the
determination of the Committee, materially altering the purpose or intent of the Plan, such
provision shall be stricken as to such jurisdiction, and the remainder of the Plan shall remain in
full force and effect.

     (j) References. Unless otherwise indicated, all references to “Sections” contained
herein are references to Sections of this Plan.

     (k) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (l) Gender and Number. As used herein, and as appropriate to the context, the
masculine pronoun shall include the feminine and the neuter, and the single shall include the
plural.

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