Document:

Exhibit 4.1

 

INTERNATIONAL LEASE
FINANCE CORPORATION

 

AS ISSUER

 

AND

 

THE GUARANTOR
PARTIES NAMED HEREIN

 

AS GUARANTORS

 

TO

 

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

 

AS TRUSTEE

 

 

 

INDENTURE

 

Dated as of August 11,
2010

 

 

 

SENIOR SECURED NOTES

DUE 2014, 2016 AND
2018

 

 

INTERNATIONAL
LEASE FINANCE CORPORATION

 

Reconciliation and
tie between Trust Indenture Act

of 1939 and Indenture

 

	
  Trust Indenture Act Section

  	
   

  
	
   

  	
   

  
	
  310(a)(1)

  	
  6.09

  
	
  (a)(2)

  	
  6.09

  
	
  (a)(3)

  	
  Not Applicable

  
	
  (a)(4)

  	
  Not Applicable

  
	
  (a)(5)

  	
  6.09

  
	
  (b)

  	
  6.08, 6.10

  
	
  311(a)

  	
  6.13(a), 6.13(c)

  
	
  (b)

  	
  6.13(b)

  
	
  312(a)

  	
  7.01,7.02(a)

  
	
  (b)

  	
  7.02(b)

  
	
  (c)

  	
  7.02(c)

  
	
  313 (a)

  	
  7.03(a)

  
	
  (b)

  	
  7.03(b)

  
	
  (c)

  	
  7.03(a), 7.03(b)

  
	
  (d)

  	
  7.03(b)

  
	
  314 (a)

  	
  7.04

  
	
  (b)

  	
  14.01

  
	
  (c)(1)

  	
  1.03

  
	
  (c)(2)

  	
  1.03

  
	
  (c)(3)

  	
  N/A

  
	
  (d)

  	
  7.04

  
	
  (e)

  	
  1.03

  
	
  315(a)

  	
  6.01(a)

  
	
  (b)

  	
  6.02

  
	
  (c)

  	
  6.01(b)

  
	
  (d)

  	
  6.01(c)

  
	
  (d)(1)

  	
  6.01(c)(i)

  
	
  (d)(2)

  	
  6.01(c)(ii)

  
	
  (d)(3)

  	
  6.01(c)(iii)

  
	
  (e)

  	
  5.14

  
	
  316(a)

  	
  1.01

  
	
  (a)(1)(A)

  	
  5.02, 5.12

  
	
  (a)(1)(B)

  	
  5.13

  
	
  (a)(2)

  	
  Not Applicable

  
	
  (b)

  	
  5.08

  
	
  (c)

  	
  Not Applicable

  
	
  317(a) (1)

  	
  5.03

  
	
  (a)(2)

  	
  5.04

  
	
  (b)

  	
  10.03

  
	
  318(a)

  	
  1.08

  

 

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

 

i

 

Contents

 

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Article I

  	
  DEFINITIONS
  AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions

  	
  2

  
	
  Section 1.02.

  	
  Other
  Definitions

  	
  10

  
	
  Section 1.03.

  	
  Compliance
  Certificates and Opinions

  	
  10

  
	
  Section 1.04.

  	
  Form of
  Documents Delivered to Trustee

  	
  11

  
	
  Section 1.05.

  	
  Acts of
  Holders

  	
  12

  
	
  Section 1.06.

  	
  Notices, Etc.,
  to Trustee and Company

  	
  12

  
	
  Section 1.07.

  	
  Notice
  to Holders; Waiver

  	
  13

  
	
  Section 1.08.

  	
  Conflict
  with Trust Indenture Act

  	
  13

  
	
  Section 1.09.

  	
  Effect
  of Headings and Table of Contents

  	
  14

  
	
  Section 1.10.

  	
  Successors
  and Assigns

  	
  14

  
	
  Section 1.11.

  	
  Separability
  Clause

  	
  14

  
	
  Section 1.12.

  	
  Benefits
  of Indenture

  	
  14

  
	
  Section 1.13.

  	
  Governing
  Law

  	
  14

  
	
  Section 1.14.

  	
  Legal
  Holidays

  	
  14

  
	
  Section 1.15.

  	
  USA
  Patriot Act

  	
  14

  
	
  Section 1.16.

  	
  Waiver
  of Jury Trial

  	
  15

  
	
  Section 1.17.

  	
  Force
  Majeure

  	
  15

  
	
   

  	
   

  	
   

  
	
  Article II

  	
  SECURITY
  FORMS

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Forms of
  Original Securities and Exchange Securities

  	
  15

  
	
  Section 2.02.

  	
  Forms of Securities other
  than the 2014 Notes, 2016 Notes and the 2018 Notes (including the Exchange
  Securities for each such series)

  	
  16

  
	
  Section 2.03.

  	
  Form of Trustee’s
  Certificate of Authentication for Securities other than the 2014 Notes, the
  2016 Notes and the 2018 Notes (including the Exchange Securities for each
  such series)

  	
  16

  
	
  Section 2.04.

  	
  Provisions of Global
  Securities other than the 2014 Notes, the 2016 Notes and the 2018 Notes
  (including the Exchange Securities for each such series)

  	
  16

  
	
   

  	
   

  	
   

  
	
  Article III

  	
  THE
  SECURITIES

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Amount
  Unlimited; Issuable in Series

  	
  17

  
				

 

ii

 

	
  Section 3.02.

  	
  Denominations

  	
  20

  
	
  Section 3.03.

  	
  Execution,
  Authentication, Delivery and Dating

  	
  21

  
	
  Section 3.04.

  	
  Temporary
  Securities

  	
  23

  
	
  Section 3.05.

  	
  Registration;
  Registration of Transfer and Exchange

  	
  23

  
	
  Section 3.06.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  	
  25

  
	
  Section 3.07.

  	
  Payment
  of Interest; Interest Rights Preserved

  	
  26

  
	
  Section 3.08.

  	
  Persons
  Deemed Owners

  	
  27

  
	
  Section 3.09.

  	
  Cancellation

  	
  27

  
	
  Section 3.10.

  	
  Computation
  of Interest

  	
  28

  
	
   

  	
   

  	
   

  
	
  Article IV

  	
  SATISFACTION
  AND DISCHARGE

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Satisfaction
  and Discharge of Indenture and the Mortgage

  	
  28

  
	
  Section 4.02.

  	
  Application
  of Trust Money

  	
  29

  
	
   

  	
   

  	
   

  
	
  Article V

  	
  REMEDIES

  	
  29

  
	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
  Events
  of Default

  	
  29

  
	
  Section 5.02.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  	
  31

  
	
  Section 5.03.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee

  	
  33

  
	
  Section 5.04.

  	
  Trustee
  May File Proofs of Claim

  	
  33

  
	
  Section 5.05.

  	
  Trustee
  May Enforce Claims Without Possession of Securities

  	
  34

  
	
  Section 5.06.

  	
  Application
  of Money Collected

  	
  34

  
	
  Section 5.07.

  	
  Limitation on Suits

  	
  35

  
	
  Section 5.08.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest

  	
  35

  
	
  Section 5.09.

  	
  Restoration
  of Rights and Remedies

  	
  36

  
	
  Section 5.10.

  	
  Rights
  and Remedies Cumulative

  	
  36

  
	
  Section 5.11.

  	
  Delay or
  Omission Not Waiver

  	
  36

  
	
  Section 5.12.

  	
  Control
  by Holders

  	
  36

  
	
  Section 5.13.

  	
  Waiver
  of Past Defaults

  	
  37

  
	
  Section 5.14.

  	
  Undertaking
  for Costs

  	
  37

  
	
  Section 5.15.

  	
  Waiver
  of Stay or Extension Laws

  	
  38

  
	
   

  	
   

  	
   

  
	
  Article VI

  	
  THE
  TRUSTEE

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Certain
  Duties and Responsibilities

  	
  38

  
	
  Section 6.02.

  	
  Notice
  of Defaults

  	
  39

  
				

 

iii

 

	
  Section 6.03.

  	
  Certain
  Rights of Trustee

  	
  39

  
	
  Section 6.04.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
  41

  
	
  Section 6.05.

  	
  May Hold
  Securities

  	
  41

  
	
  Section 6.06.

  	
  Money
  Held in Trust

  	
  41

  
	
  Section 6.07.

  	
  Compensation
  and Reimbursement

  	
  41

  
	
  Section 6.08.

  	
  Disqualification;
  Conflicting Interests

  	
  42

  
	
  Section 6.09.

  	
  Corporate
  Trustee Required; Eligibility

  	
  42

  
	
  Section 6.10.

  	
  Resignation
  and Removal; Appointment of Successor

  	
  42

  
	
  Section 6.11.

  	
  Acceptance
  of Appointment by Successor

  	
  44

  
	
  Section 6.12.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
  45

  
	
  Section 6.13.

  	
  Preferential
  Collection of Claims Against Company

  	
  45

  
	
  Section 6.14.

  	
  Appointment
  of Authentication Agent

  	
  49

  
	
  Section 6.15.

  	
  Roles of
  Trustee

  	
  50

  
	
   

  	
   

  	
   

  
	
  Article VII

  	
  HOLDERS’
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
  50

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
  Company
  to Furnish Trustee Names and Addresses of Holders

  	
  50

  
	
  Section 7.02.

  	
  Preservation
  of Information; Communications to Holders

  	
  50

  
	
  Section 7.03.

  	
  Reports
  by Trustee

  	
  51

  
	
  Section 7.04.

  	
  Reports
  by Company

  	
  52

  
	
   

  	
   

  	
   

  
	
  Article VIII

  	
  CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
  53

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Company
  May Consolidate, Etc., Only on Certain Terms

  	
  53

  
	
  Section 8.02.

  	
  Successor
  Corporation Substituted

  	
  54

  
	
   

  	
   

  	
   

  
	
  Article IX

  	
  SUPPLEMENTAL
  INDENTURE

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Supplemental
  Indentures Without Consent of Holders

  	
  54

  
	
  Section 9.02.

  	
  Supplemental
  Indentures with Consent of Holders

  	
  56

  
	
  Section 9.03.

  	
  Execution
  of Supplemental Indentures

  	
  57

  
	
  Section 9.04.

  	
  Effect
  of Supplemental Indentures

  	
  58

  
	
  Section 9.05.

  	
  Conformity
  with Trust Indenture Act

  	
  58

  
	
  Section 9.06.

  	
  Reference
  in Securities to Supplemental Indentures

  	
  58

  
	
  Section 9.07.

  	
  Reservation
  of Rights of Trustee

  	
  58

  
	
   

  	
   

  	
   

  
	
  Article X

  	
  COVENANTS

  	
  58

  
	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
  Payment
  of Principal, Premium and Interest

  	
  58

  
	
  Section 10.02.

  	
  Maintenance
  of Office or Agency

  	
  59

  
				

 

iv

 

	
  Section 10.03.

  	
  Money
  for Securities Payments to Be Held in Trust

  	
  59

  
	
  Section 10.04.

  	
  Corporate
  Existence

  	
  60

  
	
  Section 10.05.

  	
  Payment
  of Taxes and Other Claims

  	
  61

  
	
  Section 10.06.

  	
  Restrictions upon
  Mortgages, Liens or Pledge of Property; Restrictions upon Mortgages on
  Collateral

  	
  61

  
	
  Section 10.07.

  	
  Restrictions
  on the Payment of Dividends

  	
  63

  
	
  Section 10.08.

  	
  Restrictions on Permitting
  Restricted Subsidiaries to Become Non-Restricted Subsidiaries and
  Non-Restricted Subsidiaries to Become Restricted Subsidiaries

  	
  63

  
	
  Section 10.09.

  	
  Restriction
  on Investments in Non-Restricted Subsidiaries

  	
  64

  
	
  Section 10.10.

  	
  Statement
  by Officers as to Default

  	
  64

  
	
  Section 10.11.

  	
  Waiver
  of Certain Covenants

  	
  64

  
	
   

  	
   

  	
   

  
	
  Article XI

  	
  REDEMPTION
  OF SECURITIES

  	
  65

  
	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
  Applicability
  of Article

  	
  65

  
	
  Section 11.02.

  	
  Election
  to Redeem; Notice to Trustee

  	
  65

  
	
  Section 11.03.

  	
  Selection
  by Security Registrar of Securities to Be Redeemed

  	
  65

  
	
  Section 11.04.

  	
  Notice
  of Redemption

  	
  65

  
	
  Section 11.05.

  	
  Deposit
  of Redemption Price

  	
  66

  
	
  Section 11.06.

  	
  Securities
  Payable on Redemption Date

  	
  66

  
	
  Section 11.07.

  	
  Securities
  Redeemed in Part

  	
  67

  
	
   

  	
   

  	
   

  
	
  Article XII

  	
  SINKING
  FUNDS

  	
  67

  
	
   

  	
   

  	
   

  
	
  Section 12.01.

  	
  Applicability
  of Article

  	
  67

  
	
  Section 12.02.

  	
  Satisfaction
  of Sinking Fund Payments with Securities

  	
  67

  
	
  Section 12.03.

  	
  Redemption
  of Securities for Sinking Fund

  	
  68

  
	
   

  	
   

  	
   

  
	
  Article XIII

  	
  DEFEASANCE
  AND COVENANT DEFEASANCE

  	
  68

  
	
   

  	
   

  	
   

  
	
  Section 13.01.

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

  	
  68

  
	
  Section 13.02.

  	
  Defeasance
  and Discharge

  	
  68

  
	
  Section 13.03.

  	
  Covenant
  Defeasance

  	
  69

  
	
  Section 13.04.

  	
  Conditions
  to Defeasance or Covenant Defeasance

  	
  69

  
	
  Section 13.05.

  	
  Deposited Money and U.S.
  Government Obligations to Be Held in Trust; Other Miscellaneous Provisions

  	
  71

  
	
  Section 13.06.

  	
  Knowledge
  of Trustee

  	
  72

  
				

 

v

 

	
  Article XIV

  	
  SECURITY
  ARRANGEMENTS

  	
  72

  
	
   

  	
   

  	
   

  
	
  Section 14.01.

  	
  Security

  	
  72

  
	
  Section 14.02.

  	
  Authorization
  of Actions to Be Taken

  	
  73

  
	
  Section 14.03.

  	
  Determinations
  Relating to Collateral

  	
  73

  
	
  Section 14.04.

  	
  Release
  of Liens

  	
  74

  
	
  Section 14.05.

  	
  Limitation
  on Duty of Trustee in Respect of Collateral

  	
  74

  
	
   

  	
   

  	
   

  
	
  Article XV

  	
  GUARANTEES

  	
  75

  
	
   

  	
   

  	
   

  
	
  Section 15.01.

  	
  Guaranteed
  Obligations

  	
  75

  
	
  Section 15.02.

  	
  Limitation
  on Guarantor Party Liability

  	
  75

  
	
  Section 15.03.

  	
  Execution
  and Delivery

  	
  75

  
	
  Section 15.04.

  	
  Release
  of Guarantor Parties

  	
  76

  
				

 

Appendix A          —            Provisions Relating to Initial Securities, Exchange
Securities and any other Additional Securities that are 2014 Notes, 2016 Notes
or 2018 Notes

 

EXHIBIT INDEX

 

Exhibit A                —            Initial Security

 

Exhibit B                —            Exchange Security

 

vi

 

INDENTURE, dated as of
August 11, 2010 (this “Indenture”),
among International Lease Finance Corporation, a corporation duly organized and
existing under the laws of the State of California (herein called the “Company”), and certain subsidiaries of the
Company (the “Guarantor Parties”) from time to
time parties hereto, and The Bank of New York Mellon Trust Company, N.A., as
paying agent, security registrar and authentication agent and trustee,
(together with its successors and assigns, in such capacity, as the context
requires, the “Paying Agent”, “Security Registrar” or “Authentication Agent”, and in such
capacities, the “Trustee”).

 

RECITALS
OF THE COMPANY

 

The Company and the
Guarantor Parties have each duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its debentures,
notes or other evidences of indebtedness (herein called the “Securities”) and with respect to the
Guarantor Parties, the Guaranteed Obligations in respect thereof, to be issued
in one or more series as in this Indenture provided.

 

Each party agrees as
follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of (a) $1.35 billion aggregate principal amount of
the Company’s 6 1/2% Senior Secured Notes due 2014 issued on the Issue Date
(the “Original 2014 Notes” and,
together with any Additional Securities that may be issued after the Issue Date
of the same series as the Original 2014 Notes, the “2014 Notes”), $1.275 billion aggregate
principal amount of the Company’s 6 3/4% Senior Secured Notes due 2016 issued
on the Issue Date (the “Original 2016 Notes”
and, together with any Additional Securities that may be issued after the Issue
Date of the same series as the Original 2016 Notes, the “2016 Notes”) and $1.275 billion
aggregate principal amount of the Company’s 7 1/8% Senior Secured Notes due
2018 issued on the Issue Date (the “Original 2018 Notes”
and, together with any Additional Securities that may be issued after the Issue
Date of the same series as the Original 2018 Notes, the “2018 Notes”; the Original 2014 Notes
together with the Original 2016 Notes and the Original 2018 Notes, the “Original Securities”), (b) if and when
issued as provided in a Registration Agreement (as defined in Appendix A hereto
(the “Appendix”)) in exchange for
Initial Securities (as defined in Appendix A), the 2014 Notes (the “2014 Exchange Notes”),
the 2016 Notes (the “2016 Exchange Notes”) and the 2018
Notes (the “2018 Exchange Notes” and together with the 2014 Exchange Notes and
the 2016 Exchange Notes, the “Exchange
Securities”) issued in an Exchange Offer (as defined in the
Appendix) or otherwise registered under the Securities Act (as defined in the
Appendix) and issued in the form of Exhibit B and (c) any other
Additional Securities.  Subject to the
conditions and compliance with the covenants set forth herein, the Company may
issue an unlimited aggregate principal amount of Additional Securities (as
defined herein).

 

Each party agrees that the
Company and the Guarantor Parties have contemporaneously entered into the
Security Documents for the benefit of the Secured Parties, as set forth
therein.

 

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

 

1

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE I

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

 

Section 1.01.  Definitions.

 

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

 

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

 

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

 

(3)           all accounting terms not otherwise defined
herein have the meanings assigned to them in accordance with generally accepted
accounting principles as in effect on the date in question;

 

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

 

(5)           Whenever in this Indenture there is mentioned,
in any context, principal, interest or any other amount payable under or with
respect to any Securities, such mention shall be deemed to include mention of
the payment of Additional Interest, to the extent that, in such context,
Additional Interest is, was, or would be payable in respect thereof.

 

(a)           Terms Defined in the Mortgage.  For all purposes of this
Indenture, all capitalized terms used but not defined in this Indenture shall
have the respective meanings assigned to such terms in the Mortgage.

 

(b)           Certain terms, used principally in Articles 6 and 10,
are defined in those Articles.

 

“Act” when used with respect to any Holder, has the meaning
specified in Section 1.05.

 

“Accelerated Series” has the meaning specified in Section 5.06.

 

“Additional Interest” means all additional interest then owing
pursuant to the Registration Agreement.

 

2

 

“Additional Securities” means Securities issued from time to
time under this Indenture subsequent to the Issue Date.

 

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

 

“Applicable Premium”
means:

 

(a)           with respect to the 2014 Notes, on any
applicable redemption date, the greater of:

 

(1)   1.0% of the then outstanding principal amount of the
2014 Notes; and

 

(2)   the excess of:

 

(i)            the
present value of the sum of the principal amount that would be payable on such
2014 Note at maturity and all required interest payments due on such 2014 Note,
through September 1, 2014 (excluding accrued but unpaid interest),
computed using a discount rate equal to the Treasury Rate as of such redemption
date plus 50 basis points; over

 

(ii)           the
then outstanding principal amount of the 2014 Notes being redeemed; and

 

(b)           with respect to the 2016 Notes, on any
applicable redemption date, the greater of:

 

(1)   1.0% of the then outstanding principal amount of the
2016 Notes; and

 

(2)   the excess of:

 

(i)            the
present value of the sum of the principal amount that would be payable on such
2016 Note at maturity and all required interest payments due on such 2016 Note,
through September 1, 2016 (excluding accrued but unpaid interest),
computed using a discount rate equal to the Treasury Rate as of such redemption
date plus 50 basis points; over

 

(ii)           the then outstanding principal amount of the
2016 Notes being redeemed;

 

(c)           with respect to the 2018 Notes, on any
applicable redemption date, the greater of:

 

(1)   1.0% of the then outstanding principal amount of the
2018 Notes; and

 

(2)   the excess of:

 

(i)            the
present value of the sum of the principal amount that would be payable on such
2018 Note at maturity and all required interest payments due on such
2018 Note, through September 1, 2018 (excluding accrued but unpaid

 

3

 

interest), computed using a discount
rate equal to the Treasury Rate as of such redemption date plus 50 basis
points; over

 

(ii)           the
then outstanding principal amount of the 2018 Notes being redeemed.

 

“Appraisal” has the meaning set forth in the Mortgage.

 

“Appraised Value” has the meaning set forth in the Mortgage.

 

“Authentication
Agent” means the Person or Persons appointed Authentication Agent or
Agents pursuant to Section 6.14.

 

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

 

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

 

“Business Day,” when used with respect to any Place of Payment,
means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in that Place of Payment are authorized or
obligated by law to close or such other day as provided in or pursuant to an
Officers’ Certificate or supplemental indenture referred to in Section 3.01.

 

“Collateral” has the meaning set forth in the Mortgage.

 

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

 

“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.

 

“Company Request” or “Company
Order” means a written request or order signed in the name of the
Company or any Guarantor Party, as the case may be, by its Chairman of the
Board, its President, its Chief Financial Officer or a Vice President, and by
its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee, the Paying Agent, Authentication Agent or the Security
Registrar, as applicable.

 

“Consolidated Net Tangible Assets” has the meaning specified in
Section 10.06.

 

“Corporate Trust Office” means the principal office of the
Trustee at 700 S. Flower Street, Suite 500, Los Angeles, California,
90017, Attention: Corporate Unit (facsimile for receipt of such notices: (213)
630-6298) or such other location as shall be designated by written notice to
the other parties hereto.

 

4

 

“corporation” includes corporations, associations, companies
and business trusts.

 

“covenant defeasance” has the meaning specified in Section 13.03.

 

“Debt-to-Collateral Value Ratio” shall have the meaning as set
forth in the Mortgage.

 

“Defaulted Interest” has the meaning specified in Section 3.07.

 

“defeasance” has the meaning specified in Section 13.02.

 

“Depositary” means, with respect to the Securities of any
series issuable or issued in whole or in part in the form of one or more Global
Securities, the Person designated as Depositary by the Company pursuant to
Section 3.01, and if at any time there is more than one such Person, “Depositary” as used with respect to the
Securities of any series shall mean the Depositary with respect to the
Securities of such series.

 

“Event of Default” has the meaning specified in Section 5.01.

 

“Global Security” means (i) with respect to 2014 Notes,
2016 Notes and 2018 Notes, a Security in fully registered, global form without
interest coupons subject to the provisions of the Appendix and
(ii) otherwise, a Security in the form prescribed in Section 2.04
evidencing all or part of a series of Securities, issued to the Depositary for
such series or its nominee, and registered in the name of such Depositary or
nominee.

 

“Guaranteed
Obligations” shall have the meaning as set forth in the Mortgage.

 

“Guarantor
Parties” shall have the meaning as set forth in the Mortgage.

 

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

 

“Indenture” means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of particular series of Securities established as
contemplated by Section 3.01.

 

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

 

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

 

“Issue Date” means August 20, 2010, the date on which the
Original Securities are issued.

 

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

 

5

 

“Mortgage” means that certain Aircraft Mortgage and Security
Agreement and Guaranty dated as of August 11, 2010 among International
Lease Finance Corporation, the Guarantor Parties and the Additional Grantors
referred to therein and the Security Trustee.

 

“mortgages” means any mortgage, pledge, lien or other
encumbrance of any nature.

 

“Non-Restricted Subsidiary” means (i) any Subsidiary which
shall be designated by the Board of Directors as a Non-Restricted Subsidiary,
and (ii) any other Subsidiary of which the majority of the voting stock is
owned directly or indirectly by one or more Non-Restricted Subsidiaries, if
such other Subsidiary is a corporation, or in which a Non-Restricted Subsidiary
is a general partner, if such other Subsidiary is a limited partnership.  An initial list of Non-Restricted
Subsidiaries is set forth in Exhibit C hereto.

 

“Offering Memorandum” means the Offering Memorandum, dated
August 11, 2010, of the Company relating to the issuance of the Original
Securities.

 

“Officers’ Certificate” means a certificate signed by the
Chairman of the Board, the President, the Chief Financial Officer or a Vice
President, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, of the Company and/or any Guarantor Party, as the case may
be, and delivered to the Trustee.

 

“Opinion of Counsel” means a written opinion, reasonably
acceptable to the Trustee, the Paying Agent, Authentication Agent, Security
Registrar or Security Trustee if addressed to them, of counsel who may be an
employee of the Company or any Guarantor Party, as the case may be.

 

“Original Issue Discount Security” means any Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 5.02.

 

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

 

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

 

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

 

(iii)                               Securities which have been defeased pursuant to
Section 13.02 hereof; and

 

(iv)                              Securities which have been paid pursuant to
Section 3.06 or in exchange for or in lieu of which other Securities have
been authenticated and delivered pursuant to this Indenture, other than any
such Securities in respect of which there shall have 

 

6

 

been presented to the
Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are valid
obligations of the Company;

 

provided, however,
that in determining whether the
Holders of the requisite principal amount of the Outstanding Securities have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, (i) the principal amount of an Original Issue Discount 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, (ii) the
principal amount of a Security denominated in a foreign currency or currency
unit shall be the U.S. dollar equivalent, determined as of the date of original
issuance of such Security, of the principal amount of such Security (or, in the
case of an Original Issue Discount Security denominated in a foreign currency
or currency unit, the U.S. dollar equivalent, determined as of the date of
original issuance of such Security, of the amount determined as provided in (i) above),
and (iii) Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee or the Security Registrar shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee or the Security Registrar actually
knows to be so owned shall be so disregarded. 
Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee or the Security Registrar the pledgee’s right so to act with respect to
such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

 

“Owner Trust”
has the meaning set forth in the Mortgage.

 

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

 

“Permitted
Collateral Liens” has the meaning ascribed to “Permitted Liens” in
the Mortgage.

 

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

 

“Place of Payment,” when used with respect to the Securities of
any series, means the place or places where the principal of (and premium, if
any) and interest on the Securities of that series are payable as specified in
or as contemplated by Section 3.01.

 

“Pool
Aircraft” has the meaning set forth in the Mortgage.

 

“Predecessor Security” of any particular Security means every
previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.06 in

 

7

 

exchange for or in lieu of
a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

 

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

 

“Redemption Price,” when used with respect to any Security to
be redeemed, means a redemption price equal to 100% of the principal amount of
such Securities as of, plus the Applicable Premium as of, and accrued and
unpaid interest (and Additional Interest, if any) to, the Redemption Date,
subject to the rights of Holders on the relevant record date to receive
interest due on the relevant Interest Payment Date.

 

“Registrar’s Corporate Trust Office” means the principal office
of the Security Registrar at 700 S. Flower Street, Suite 500, Los Angeles,
California, 90017, Attention: Corporate Unit (facsimile for receipt of such
notices: (213) 630-6298) or at such other location at which at any particular
time its corporate trust business shall be administered.

 

“Regular Record Date” for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 3.01.

 

“Responsible Officer,” when used with respect to the Trustee,
means any officer within Corporate Trust Administration (or any successor group
of the Trustee), including any managing director, vice president, assistant
vice president, corporate trust officer, assistant corporate trust officer,
associate or any other officer or assistant officer of the Trustee customarily
performing functions similar to those performed by the persons who at that time
shall be such officers having direct responsibility for the administration of
this Indenture, and also means, with respect to a particular corporate trust
matter, any other officer to whom such trust matter is referred because of his
or her knowledge of and familiarity with the particular subject.

 

“Restricted Subsidiary” means any Subsidiary other than a
Non-Restricted Subsidiary; provided,
however, that the Board of Directors may, subject to
Section 10.08 designate any Non-Restricted Subsidiary, substantially all
of the physical properties or business of which are located in the United
States of America, its territories and possessions, or Puerto Rico and which
does not meet the requirements of clause (ii) of the definition of
Non-Restricted Subsidiary, as a Restricted Subsidiary.

 

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

 

“Security
Documents” means the Mortgage and each other agreement, supplement,
instrument or document executed and delivered pursuant thereto to secure any of
the Secured Obligations (as such term is defined in the Mortgage) pursuant to
the terms thereto.

 

“Security Register” and “Security
Registrar” have the respective meanings specified in Section 3.05.

 

“Secured
Party” has the meaning set forth in the Mortgage.

 

8

 

“Security Trustee” means the Person named as
the “Security Trustee” under the Mortgage, which initially shall be Wells Fargo
Bank Northwest, National Association, until a successor Security Trustee shall
have become such pursuant to the applicable provisions of the Security
Documents, and thereafter “Security Trustee” shall mean or include each Person
who is then a Security Trustee thereunder, and if at any time there is more
than one such Person, “Security Trustee” as used with respect to the Securities
of any series shall mean the Security Trustee with respect to the Securities of
that series.

 

“SPC”
has the meaning set forth in the Mortgage.

 

“Special Record Date” for the payment of any Defaulted Interest
means a date fixed by the Trustee pursuant to Section 3.07.

 

“Stated Maturity,” when used with respect to any Security or
any installment of principal thereof or interest thereon, means the date
specified in such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is due and payable,
subject to any provisions for adjustment or deferral of any such date as
contemplated by Section 3.01.

 

“Subsidiary” means a corporation, partnership or trust more
than 50% of the outstanding Voting Stock of which is owned, directly or
indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries.

 

“Treasury Rate”
means, as of the applicable Redemption Date, the yield to maturity as of such
redemption date of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519) that has become publicly available at least two Business
Days prior to such Redemption Date (or, if such Statistical Release is no
longer published, any publicly available source of similar market data)) most
nearly equal to the period from such redemption date to, in the case of the
2014 Notes, September 1, 2014, in the case of the 2016 Notes, September 1,
2016 and in the case of the 2018 Notes, September 1, 2018; provided, however, that
if the period from such redemption date to September 1, 2014 in the case
of the 2014 Notes, September 1, 2016 in the case of the 2016 Notes and
September 1, 2018 in the case of the 2018 Notes, is less than one year,
the weekly average yield on actually traded United States Treasury securities
adjusted to a constant maturity of one year will be used.

 

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

 

“Trust Indenture Act” means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed; provided, however, that in the event that the Trust
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means,
to the extent 

 

9

 

required by such amendment,
the Trust Indenture Act of 1939, as amended and except as provided in Section 9.05.

 

“U.S. Government Obligations” has the meaning specified in
Section 13.04(a).

 

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

 

“Voting Stock” means stock or other interests evidencing
ownership in a corporation, partnership or trust which ordinarily has voting
power for the election of directors, or other persons performing equivalent
functions, whether at all times or only so long as no senior class of stock has
such voting power by reason of any contingency.

 

Section 1.02.  Other
Definitions.

 

	
  Term

  	
   

  	
  Defined
  in

  Section

  
	
  “Appendix”

  	
   

  	
  Preamble

  
	
  “Clearstream”

  	
   

  	
  Appendix A

  
	
  “Common Depositary”

  	
   

  	
  Appendix A

  
	
  “Definitive Security”

  	
   

  	
  Appendix A

  
	
  “Depositary”

  	
   

  	
  Appendix A

  
	
  “Euroclear”

  	
   

  	
  Appendix A

  
	
  “Exchange Offer”

  	
   

  	
  Appendix A

  
	
  “Exchange Securities”

  	
   

  	
  Preamble

  
	
  “Federal Bankruptcy Act”

  	
   

  	
  6.13

  
	
  “Global Securities Legend”

  	
   

  	
  Appendix A

  
	
  “Initial Purchasers”

  	
   

  	
  Appendix A

  
	
  “Initial Securities”

  	
   

  	
  Appendix A

  
	
  “Notice of Default”

  	
   

  	
  5.01

  
	
  “Original Securities”

  	
   

  	
  Preamble

  
	
  “Purchase Agreement”

  	
   

  	
  Appendix A

  
	
  “QIB”

  	
   

  	
  Appendix A

  
	
  “Registration Agreement”

  	
   

  	
  Appendix A

  
	
  “Registration Default”

  	
   

  	
  Appendix A

  
	
  “Registration Rights
  Agreement”

  	
   

  	
  Appendix A

  
	
  “Regulation S”

  	
   

  	
  Appendix A

  
	
  “Regulation S Securities”

  	
   

  	
  Appendix A

  
	
  “Restricted Period”

  	
   

  	
  Appendix A

  
	
  “Restricted Securities
  Legend”

  	
   

  	
  Appendix A

  
	
  “Rule 144A”

  	
   

  	
  Appendix A

  
	
  “Rule 144A
  Securities”

  	
   

  	
  Appendix A

  
	
  “Securities Custodian”

  	
   

  	
  Appendix A

  
	
  “Shelf Registration
  Statement”

  	
   

  	
  Appendix A

  
	
  “Transfer Restricted
  Securities”

  	
   

  	
  Appendix A

  
	
  “Unrestricted Definitive
  Security”

  	
   

  	
  Appendix A

  

 

Section 1.03.  Compliance
Certificates and Opinions.

 

Except as otherwise
expressly provided by this Indenture, upon any application or request by the
Company or any Guarantor Party to the Trustee, the Security Registrar or the
Paying Agent to take any action under any provision of this Indenture, the
Company or the Guarantor Party, as the case may be, shall furnish to the
Trustee or the Paying Agent, as applicable, an Officers’ Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with and an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with, except that in the case of any such application
or request as to which the furnishing of such 

 

10

 

documents is specifically
required by any provision of this Indenture relating to such particular
application or request, including any request to authenticate and deliver
Securities of any series pursuant to Section 3.03, no additional
certificate or opinion need be furnished.

 

Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture, other than certificates provided pursuant to Section 7.04(d),
shall include

 

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

 

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

 

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

 

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

 

Section 1.04.  Form of
Documents Delivered to Trustee.

 

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

 

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

 

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

 

11

 

Section 1.05.  Acts of
Holders.

 

(a)           Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the
Company.  Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01) conclusive
in favor of the Trustee and the Company, if made in the manner provided in this
Section.

 

(b)           The fact and date of the execution by any Person of
any such instrument or writing may be proved by the affidavit of a witness of
such execution or by a certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof.  Where such execution is by a signer acting in
a capacity other than his or her individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his or her authority.  The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner which the Trustee deems sufficient.

 

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

 

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

 

Section 1.06.  Notices, Etc.,
to Trustee and Company.

 

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

 

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

 

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

 

12

 

(c)           the Paying Agent or Security Registrar by any Holder
or the Company shall be sufficient for every purpose hereunder if made, given
furnished or filed in writing to or with the Paying Agent or Security
Registrar, respectively, at the Registrar’s Corporate Trust Office or any such
other address previously furnished in writing to the Company and the Trustee by
the Paying Agent, Authentication Agent or Security Registrar, as the case may
be.

 

The
Trustee agrees to accept and act upon instructions or directions pursuant to
this Indenture sent by unsecured e-mail, pdf, facsimile transmission or other
similar unsecured electronic methods; provided, however, that (a) the
party providing such written instructions, subsequent to such transmission of
written instructions, shall provide the originally executed instructions or
directions to the Trustee in a timely manner, and (b) such originally
executed instructions or directions shall be signed by an authorized
representative of the party providing such instructions or directions.  If the party elects to give the Trustee
e-mail or facsimile instructions (or instructions by a similar electronic
method) and the Trustee in its discretion elects to act upon such instructions,
the Trustee’s understanding of such instructions shall be deemed controlling.  The Trustee shall not be liable for any
losses, costs or expenses arising directly or indirectly from the Trustee’s
reliance upon and compliance with such instructions notwithstanding such
instructions conflict or are inconsistent with a subsequent written
instruction.  The party providing
electronic instructions agrees to assume all risks arising out of the use of
such electronic methods to submit instructions and directions to the Trustee,
including without limitation the risk of the Trustee acting on unauthorized
instructions, and the risk or interception and misuse by third parties.

 

Section 1.07.  Notice to
Holders; Waiver.

 

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

 

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

 

Section 1.08.  Conflict
with Trust Indenture Act.

 

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

 

13

 

which is automatically
deemed included in this Indenture by any of the provisions of the Trust
Indenture Act, such required or automatically included provision shall control.

 

Section 1.09.  Effect of
Headings and Table of Contents.

 

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

 

Section 1.10.  Successors
and Assigns.

 

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

 

Section 1.11.  Separability
Clause.

 

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

 

Section 1.12.  Benefits of
Indenture.

 

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

 

Section 1.13.  Governing
Law.

 

This Indenture and the
Securities shall be governed by and construed in accordance with the laws of
the State of New York without regard to its conflict of law principles (except
Sections 5-1401 and 5-1402 of the New York General Obligations Law).

 

Section 1.14.  Legal
Holidays.

 

In any case where any
Interest Payment Date, Redemption Date or Stated Maturity of any Security shall
not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of interest or
principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date
or Redemption Date, or at the Stated Maturity, provided that no interest, except as provided in Section 5.02(a)(iii),
if applicable, shall accrue for the period from and after such Interest Payment
Date, Redemption Date or Stated Maturity, as the case may be.

 

Section 1.15.  USA Patriot
Act.

 

The parties hereto
acknowledge that, in accordance with Section 326 of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (as
amended, modified or supplemented from time to time, the “USA Patriot Act”), the Trustee, the Paying
Agent, the Authentication Agent and the Security Registrar, like all financial
institutions, are required to 

 

14

 

obtain, verify and record
information that identifies each person or legal entity that opens an
account.  The parties to this Indenture
agree that they will provide the Trustee, the Paying Agent, the Authentication
Agent, and the Security Registrar with such information as the Trustee, the
Paying Agent, the Authentication Agent and the Security Registrar may
reasonably request in order for the Trustee, the Paying Agent, the
Authentication Agent and the Security Registrar to satisfy the requirements of
the USA Patriot Act.

 

Section 1.16.  Waiver of
Jury Trial.

 

EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT.

 

Section 1.17.  Force
Majeure.

 

In no event shall the
Trustee be responsible or 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 being understood that the Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

 

ARTICLE II

 

SECURITY FORMS

 

Section 2.01.  Forms of
Original Securities and Exchange Securities.

 

Provisions relating to the
Initial Securities, the Exchange Securities and any other Additional Securities
that are 2014 Notes, 2106 Notes or 2018 Notes are set forth in the Appendix,
which is hereby incorporated in and expressly made a part of this
Indenture.  (i) The Initial
Securities and the Trustee’s certificate of authentication and (ii) any
Additional Securities that are 2014 Notes, 2016 Notes or 2018 Notes (if issued
as Transfer Restricted Securities) and the Trustee’s certificate of
authentication shall each be substantially in the form of Exhibit A
hereto, which is hereby incorporated in and expressly made a part of this
Indenture.  (i) The Exchange
Securities and the Trustee’s certificate of authentication and (ii) any
Additional Securities that are 2014 Notes, 2016 Notes or 2018 Notes issued
other than as Transfer Restricted Securities and the Trustee’s certificate of
authentication shall each be substantially in the form of Exhibit B
hereto, which is hereby incorporated in and expressly made a part of this
Indenture.  The Securities may have
notations, legends or endorsements required by law, stock exchange rule, or
usage (provided that any such
notation, legend or endorsement is in a form acceptable to the Company).

 

15

 

Section 2.02.  Forms of
Securities other than the 2014 Notes, 2016 Notes and the 2018 Notes (including
the Exchange Securities for each such series).

 

The Securities of each
series other than the 2014 Notes, 2016 Notes and 2018 Notes shall be in
substantially the form (including permanent global form) as shall be
established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with the rules of any securities exchange or as may, consistently herewith,
be determined by the officers executing such Securities, as evidenced by their
execution of such Securities.  If the
form of Securities of any series is established by action taken pursuant to a
Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 3.03 for the authentication and delivery of such
Securities.  If all of the Securities of
any series established by action taken pursuant to a Board Resolution are not
to be issued at one time, it shall not be necessary to deliver a record of such
action at the time of issuance of each Security of such series, but an appropriate
record of such action shall be delivered at or before the time of issuance of
the first Security of such series.

 

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

 

Section 2.03.  Form of
Trustee’s Certificate of Authentication for Securities other than the 2014
Notes, the 2016 Notes and the 2018 Notes (including the Exchange Securities for
each such series).

 

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

 

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

 

	
   

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

  
	
   

  	
      as
  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  
				

 

Section 2.04.  Provisions
of Global Securities other than the 2014 Notes, the 2016 Notes  and the
2018 Notes (including the Exchange Securities for each such series).

 

If Securities of a series
other than the 2014 Notes, 2016 Notes and 2018 Notes are issuable in whole or
in part in global form, as contemplated by Section 3.01(q), then,
notwithstanding the provisions of Sections 3.01 and 3.02, any such Security shall
represent such 

 

16

 

of the Outstanding
Securities of such series as shall be specified therein and may 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 to
reflect exchanges.  The global form may
be permanent or temporary.  Any
endorsement of a Security in global form to reflect the amount, or any increase
or decrease in the principal amount, of Outstanding Securities represented
thereby shall be made by the Trustee in such manner and upon instructions given
by such Person or Persons as shall be specified therein or in the Company Order
to be delivered to the Trustee pursuant to Section 3.03 or Section 3.04.  Subject to the provisions of Section 3.03
and, if applicable, Section 3.04, the Trustee shall deliver and redeliver
any Security in permanent global form in the manner and upon instructions given
by the Person or Persons specified therein or in the applicable Company
Order.  If a Company Order pursuant to
Section 3.03 or 3.04 has been or simultaneously is delivered, any
instructions by the Company with respect to endorsement or delivery or
redelivery of such a Security in global form shall be in writing but need not
comply with Section 1.03 and need not be accompanied by an Opinion of
Counsel.

 

Notwithstanding the other
provisions of this Indenture, unless otherwise specified as contemplated by
Section 3.01, payment of principal of and any premium and interest on any
such Security in permanent global form shall be made to the Person or Persons
specified therein.

 

Notwithstanding the
provisions of Section 3.07 and except as provided in the preceding
paragraph, the Company, the Trustee, the Security Registrar and any agent of
the Company, the Trustee or the Security Registrar shall treat a Person as the
Holder of such principal amount of Outstanding Securities represented by such a
permanent Global Security as shall be specified in a written or electronic
statement of the Depositary with respect to such permanent Global Security, for
purposes of obtaining any consents or directions required to be given by the
Holders pursuant to this Indenture.

 

Unless otherwise provided
as contemplated by Section 3.01 with respect to any series of Securities
other than the 2014 Notes, 2016 Notes and 2018 Notes, any Global Security shall
provide, in addition to the provisions established pursuant to Sections 2.01
and 3.01 and set forth in the preceding paragraphs, that the Depositary will
not sell, assign, transfer or otherwise convey any beneficial interest in such
Global Security unless such beneficial interest is in an amount equal to an
authorized denomination for Securities of such series, and that the Depositary,
by accepting such Global Security, agrees to be bound by such provision.

 

ARTICLE III

 

THE SECURITIES

 

Section 3.01.  Amount
Unlimited; Issuable in Series.

 

The aggregate principal
amount of Original Securities which may be authenticated and delivered under
this Indenture on the Issue Date is $1.35 billion aggregate principal amount of
the 2014 Notes, $1.275 billion aggregate principal amount of the 2016 Notes and
$1.275 billion aggregate principal amount of the 2018 Notes.  The Company may from time to time after the
Issue Date issue Additional Securities under this Indenture in an unlimited
principal amount, 

 

17

 

which may be of the same
series or a different series than Securities of any other series previously
issued.  Any series may be reopened at
any time and from time to time, after its original issue date.

 

All 2014 Exchange Notes
shall be of the same series as all other 2014 Notes for all purposes under this
Indenture.  All 2016 Exchange Notes shall
be of the same series as all other 2016 Notes for all purposes under this
Indenture.  All 2018 Exchange Notes shall
be of the same series as all other 2018 Notes for all purposes under this
Indenture.  The 2014 Notes shall be of a
separate series of Securities from the 2016 Notes and the 2018 Notes, the 2016
Notes shall be of a separate series of Securities from the 2014 Notes and the 2018
Notes, the 2018 Notes shall be of a separate series of Securities from the 2014
and the 2016 Notes and each of the 2014 Notes, the 2016 Notes and the 2018
Notes shall be of a separate series of Securities from any other Additional
Securities, unless the Officers’ Certificate establishing such Additional
Securities specifies that they are 2014 Notes, 2016 Notes or 2018 Notes,
respectively.

 

The Securities may be
issued in one or more series and the Securities of each such series shall rank
equally and pari passu with the
Securities of each other series, unless otherwise provided pursuant to this
Section 3.01.  There shall be
established in or pursuant to a Board Resolution and, subject to Section 3.03,
set forth, or determined in the manner provided, in an Officers’ Certificate,
or established in one or more indentures supplemental hereto, prior to the
issuance of Additional Securities of any series after the Issue Date,

 

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

 

(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
or transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 3.04, 3.05, 3.06, 9.06 or 11.07 and except for
any Securities which, pursuant to Section 3.03, shall not have been issued
and sold by the Company and are therefore 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
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest;

 

(d)           the date or dates on which the principal of the
Securities of the series is payable and any provision for the deferral of any
such date;

 

(e)           the rate or rates (or the formula pursuant to which
such rate or rates shall be determined) at which the Securities of the series
shall bear interest, if any, including the rate of interest applicable on
overdue payments of principal or interest, if different from the rate of
interest stated in the Security; the date or dates from which such interest
shall accrue, the Interest Payment Dates on which such interest shall be
payable and any provisions for the adjustment or deferral of any such date and
the Regular Record Date or any formula for determining the Record Date for the
interest payable on any Interest Payment Date;

 

18

 

(f)            the place or places where the principal of (and
premium, if any) and interest, if any, on the Securities of the series shall be
payable, and the place or places where the Securities of the series may be
presented for registration of transfer or exchange and the place or places
where notices and demands to or upon the Company in respect of the Securities
of the series may be made;

 

(g)           if applicable, the period or periods within which, the
price or prices at which and the terms and conditions upon which Securities of
the series may be redeemed, in whole or in part, at the option of the Company;

 

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

 

(i)            if other than denominations of $2,000 and any integral
multiples of $1,000, the denominations in which Securities of the series shall
be issuable;

 

(j)            the currency or currencies, including composite
currencies, in which payment of the principal of (and premium, if any) and
interest, if any, on the Securities of the series shall be payable if other
than the currency of the United States, which may be different for principal,
premium, if any, and interest, if any;

 

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

 

(l)            if the amount of payments of principal of (and
premium, if any) or interest, if any, on the Securities of the series may be
determined with reference to an index, the manner in which such amounts shall
be determined;

 

(m)          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;

 

(n)           if the Securities of the series shall not rank equally
and pari passu with the Securities of each other series issued under this
Indenture, the ranking of the Securities of the series;

 

(o)           any Event of Default with respect to the Securities of
the series, if not set forth herein, and any additions, modifications or
deletions in the Events of Default, covenants of the Company, notice
requirements or redemption provisions set forth herein with respect to the
Securities of such series;

 

19

 

(p)           whether either or both of Section 13.02 and
Section 13.03 shall not apply to the Securities of the series;

 

(q)           whether the Securities of the series shall be issued
in whole or in part in the form of one or more Global Securities and, in such
case, the Depositary for such Global Security or Securities, which Depositary
shall be, if then required by applicable law or regulation, a clearing agency
registered under the Securities Exchange Act of 1934, as amended, the form of
any legend or legends which shall be borne by such Global Securities in
addition to or in lieu of those set forth in Exhibit A hereto and any
circumstances in addition to or in lieu of those set forth in Section 2.2
of the Appendix in which any such Global Security may be exchanged in whole or
in part for Additional Securities registered, or any transfer of such Global
Security in whole or in part may be registered, in the name or names of Persons
other than the depositary for such Global Security or a nominee thereof;

 

(r)            whether either or both of Article 14 or Article 15
shall apply to the Securities of such series, and if so, any necessary terms
related thereto; and

 

(s)           any other terms of the series, including the covenants
to be applicable to Securities of such series.

 

The foregoing requirements
shall be inapplicable to the Original Securities and the Exchange Securities provided that (i) the form of the Original Securities
and the form of the Exchange Securities shall be set forth in an exhibit to an
Officers’ Certificate to be delivered to the Trustee on the Issue Date and (ii) such
forms shall conform to Exhibits A and B, respectively.

 

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 the Board Resolution referred to
above and (subject to Section 3.03) set forth in the Officers’ Certificate
referred to above or in any such indenture supplemental hereto.  All Securities of any one series need not be
issued at one time and, unless otherwise provided, a series may be reopened for
issuances of additional Securities of such series.

 

If any of the terms of the
series are established by action taken pursuant to a Board Resolution, a copy
of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior
to the delivery of the Officers’ Certificate setting forth the terms of the
series.  If all of the Securities of any
series established by action taken pursuant to a Board Resolution are not to be
issued at one time, it shall not be necessary to deliver a record of such
action at the time of issuance of each Security of such series, but an
appropriate record of such action shall be delivered at or before the time of
issuance of the first Security of such series.

 

Section 3.02.  Denominations.

 

Except as otherwise
specified as contemplated by Section 3.01 for Securities of any series,
the Securities of each series shall be issuable in registered form without
coupons in such denominations as shall be specified as contemplated by Section 3.01.  In the absence of any such 

 

20

 

provisions with respect to
the Securities of any series, the Securities of such series shall be issuable
in denominations of $2,000 and any integral multiples of $1,000 in excess
thereof.

 

Section 3.03.  Execution,
Authentication, Delivery and Dating.

 

The Securities shall be
executed on behalf of the Company by its Chairman of the Board, its President,
its Chief Financial Officer or one of its Vice Presidents.  The signature of any of these officers on the
Securities may be manual or facsimile.

 

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

 

At any time and from time
to time after the execution and delivery of this Indenture, the Company may
deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities and any other documents as may be reasonably
requested by the Trustee, and the Trustee in accordance with the Company Order
shall authenticate and make available for delivery such Securities.  The Trustee shall authenticate and make
available for delivery upon such Company Order (a) Original Securities for
original issue on the Issue Date in an aggregate principal amount of $1.35
billion of the 2014 Notes, in an aggregate principal amount of $1.275 billion
of the 2016 Notes and in an aggregate principal amount of $1.275 billion of the
2018 Notes, (b) subject to the terms of this Indenture, Additional
Securities in an aggregate principal amount to be determined at the time of
issuance and specified therein and (c) the Exchange Securities for
issuance in an Exchange Offer pursuant to a Registration Agreement for a like
principal amount of Initial Securities of the same series exchanged pursuant
thereto or otherwise pursuant to an effective registration statement under the
Securities Act.  Such order shall specify
the amount of the Securities to be authenticated and the date on which the
original issue of Securities is to be authenticated.  Notwithstanding anything to the contrary in
the Indenture or the Appendix, any issuance of Additional Securities after the
Issue Date shall be in a principal amount of at least $2,000, whether such
Additional Securities are of the same or a different series than the Original
Securities.  Guaranteed Obligations in
respect of any such Securities shall be authenticated and made available in
connection therewith.

 

If all of the Securities of
any series are not to be issued at one time and if the Board Resolution or
supplemental indenture establishing such series shall so permit, such Company
Order may set forth procedures in compliance with the terms of this Indenture
for the issuance of such Securities and determining the terms of particular
Securities of such series, such as interest rate, maturity date, date of
issuance and date from which interest shall accrue.  In authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be provided with, and (subject to Section 6.01)
shall be fully protected in relying upon, an Opinion of Counsel stating,

 

(a)           the form of such Securities is in conformity with the
provisions of this Indenture;

 

21

 

(b)           if the terms of such Securities have been established
by or pursuant to a Board Resolution as permitted by Section 3.01, that
such terms have been established in conformity with the provisions of this
Indenture; and

 

(c)           that 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 and paid for, will be legally
valid and binding obligations of the Company, enforceable against the Company
in accordance with their terms, except as limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws or equitable principles affecting
creditors’ rights generally, and except that such counsel may advise that the
enforceability of the Securities is subject to the effect of general principles
of equity including, without limitation, concepts of materiality,
reasonableness, good faith and fair dealing and the possible unavailability of
specific performance or injunctive relief, regardless of whether considered in
a proceeding in equity or at law, and, if applicable, to provisions of law
which may require that a judgment for money damages rendered by a court in the
United States be expressed in United States dollars.

 

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

 

Notwithstanding the
provisions of Section 3.01 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall
not be necessary to deliver the Officers’ Certificate otherwise required
pursuant to Section 3.01 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the time
of authentication of each Security of such series if such documents are
delivered at or prior to the time of authentication upon original issuance of
the first Security of such series to be issued.

 

Each Security shall be
dated the date of its authentication.

 

No Security shall be
entitled to any benefit under this Indenture or the Mortgage or be valid or
obligatory for any purpose unless there appears on such Security a certificate
of authentication substantially in the form provided for herein executed by the
Trustee by manual signature, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this
Indenture.  Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Security Registrar for cancellation as provided in Section 3.09
together with a written statement (which need not comply with Section 1.03
and need not be accompanied by an Opinion of Counsel) stating that such
Security has never been issued and sold by the Company, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

The Trustee may appoint one
or more authentication agents reasonably acceptable to the Company to
authenticate the Securities.  Any such
appointment shall be evidenced by an 

 

22

 

instrument signed by a
Responsible Officer, a copy of which shall be furnished to the Company.  Unless limited by the terms of such
appointment, an authentication 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 authentication agent has the
same rights as any Security Registrar, Paying Agent or agent for service of
notices and demands.

 

Section 3.04.  Temporary
Securities.

 

Pending the preparation of
definitive Securities of any series, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Securities which
are printed, lithographed, typewritten, reproduced or otherwise produced, in
any authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as evidenced by their execution of
such Securities.

 

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

 

Section 3.05.  Registration;
Registration of Transfer and Exchange.

 

The Company shall cause to
be kept at the Registrar’s Corporate Trust Office a register (the register
maintained in such office and in any other office or agency of the Company in a
Place of Payment being herein sometimes referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities and of transfers of
Securities (which shall, with respect to the 2014 Notes, the 2016 Notes and the
2018 Notes (including the Exchange Securities for each such series), at all
times also be subject to compliance with the Appendix).  The Bank of New York Mellon Trust Company,
N.A. is hereby appointed “Security Registrar” for the purpose of registering
Securities and transfers of Securities as herein provided.

 

Upon surrender for
registration of transfer of any Security of any series at the Registrar’s
Corporate Trust Office, the Company shall execute, and the Trustee shall
authenticate and make available for delivery, in the name of the designated
transferee or transferees, one or more new Securities of the same series, of
any authorized denominations and of a like tenor and aggregate principal amount
and Stated Maturity.

 

At the option of the
Holder, Securities of any series may be exchanged for other Securities of the
same series, of any authorized denominations and of a like tenor, aggregate 

 

23

 

principal amount and Stated
Maturity, upon surrender of the Securities to be exchanged at the Registrar’s
Corporate Trust Office.  Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and make available for delivery, the Securities
which the Holder making the exchange is entitled to receive.

 

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

 

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

 

No service charge to the
Holder shall be made for any registration of transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Securities, other than exchanges pursuant
to Section 3.04, 9.06 or 11.07 not involving any transfer.

 

The Company shall not be
required (i) to issue, register the transfer of or exchange any Security
during a period beginning at the opening of business 15 days before any
selection for redemption of Securities of like tenor and of the series of which
such Security is a part and ending at the close of business on the earliest
date on which the relevant notice of redemption is deemed to have been given to
all Holders of Securities of such series to be redeemed, or (ii) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

 

If at any time the
Depositary for the Securities of a series notifies the Company that it is
unwilling or unable to continue as Depositary for the Securities of such series
or if at any time the Depositary for the Securities of such series shall no
longer be eligible under Section 3.01, the Company shall appoint a successor
Depositary with respect to the Securities of such series.  If a successor Depositary for the Securities
of such series is not appointed by the Company within 90 days after the
Company receives such notice or becomes aware of such ineligibility, the Company’s
election to issue Global Securities pursuant to Section 3.01 shall no
longer be effective with respect to the Securities of such series and the
Company will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive form in an
aggregate principal amount equal to the principal amount of the Global Security
or Securities representing such series in exchange for such Global Security or
Securities.

 

The Company may at any time
and in its sole discretion determine that the Securities of any series issued
in the form of one or more Global Securities shall no longer be represented by
such Global Security or Securities.  In
such event the Company will execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of definitive Securities of such
series and such other documents as may be reasonably requested by the Trustee,
will authenticate and deliver, Securities of such series in definitive form and
in an aggregate principal 

 

24

 

amount equal to the
principal amount of the Global Security or Securities representing such series
in exchange for such Global Security or Securities.

 

Notwithstanding any other
provision in this Indenture, a Global Security (other than a Global Security
representing a 2014 Note, a 2016 Note, a 2018 Note or an Exchange Security,
transfer of which shall be subject to the Appendix) may not be transferred
except as a whole by the Depositary with respect to such Global Security to a
nominee of such Depositary, or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary, or except to the Trustee in
exchange for definitive Securities as provided in this Indenture.  Unless otherwise provided as contemplated by
Section 3.01 with respect to any series of Securities evidenced in whole
or in part by a Global Security, the Depositary may not sell, assign, transfer
or otherwise convey any beneficial interest in a Global Security evidencing all
or part of the Securities of such series unless such beneficial interest is in
an amount equal to an authorized denomination for Securities of such series.

 

Section 3.06.  Mutilated,
Destroyed, Lost and Stolen Securities.

 

If any mutilated Security
is surrendered to the Security Registrar, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

 

If there shall be delivered
to the Company, the Trustee and the Security Registrar (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by the Trustee or Security Registrar
to save the Company, the Trustee, Security Registrar and any agent of either of
them harmless, then, in the absence of notice to the Company, the Trustee or
the Security Registrar that such Security has been acquired by a bona fide purchaser, the Company shall
execute and, upon receipt of a Company Order, the Trustee shall authenticate
and make available for delivery, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series and of like tenor, principal amount
and Stated Maturity and bearing a number not contemporaneously
outstanding.  If after the delivery of
such new Security, a bona fide
purchaser of the original Security in lieu of which such new Security was
issued presents for payment such original Security, the Company, the Trustee
and the Security Registrar shall be entitled to recover such new Security from
the Person to whom it was delivered or any Person taking therefrom, except a
holder in due course, and the Security Registrar, Trustee and the Company shall
be entitled to recover upon the indemnity provided therefor to the extent of
any loss, damage, cost or expenses incurred by the Company, the Trustee or the
Security Registrar or any agent of any of them in connection therewith.  Such indemnification of the Company shall not
require the posting of a bond.

 

In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and
payable or shall have become subject to notice of redemption in full, the
Company in its discretion may, instead of issuing a new Security, pay such
Security without surrender thereof, except that any mutilated security shall be
surrendered to the Security Registrar for cancellation.

 

25

 

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

 

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

 

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

 

Section 3.07.  Payment of
Interest; Interest Rights Preserved.

 

Unless otherwise provided
as contemplated by Section 3.01 with respect to any series of Securities,
interest on any Security which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest.

 

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

 

(a)           The Company may elect to make payment of any
Defaulted Interest to the Person or Persons in whose names the Securities of
such series (or their respective Predecessor Securities) are registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee and the
Paying Agent in writing of the amount of Defaulted Interest proposed to be paid
on each Security of such series and the date of the proposed payment, and at
the same time the Company shall deposit with the Paying Agent an amount of
money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Paying Agent
for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this Clause provided. 
Thereupon the Company shall fix a Special Record Date for the payment of
such Defaulted Interest which shall be not more than 15 days and not less than
10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee and the Paying Agent of the notice of the
proposed payment.  The Company shall
promptly notify the Trustee and the Paying Agent of such Special Record Date
and, in the name and at the expense of the Company, the Paying Agent shall
cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first-class postage prepaid, to each Holder
of Securities of such series at his or her address as it appears in the

 

26

 

Security
Register, not less than 10 days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following Clause (b).

 

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

 

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

 

Section 3.08.  Persons
Deemed Owners.

 

Prior to due presentment of
a Security for registration of transfer, the Company, the Trustee, the Security
Registrar and any agent of the Company, the Trustee or the Security Registrar
may treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of (and
premium, if any) and (subject to Section 3.07) interest on such Security
and for all other purposes whatsoever, whether or not such Security be overdue,
and neither the Company, any Guarantor Party, the Trustee, the Security
Registrar nor any agent of the Company, any Guarantor Party, the Trustee or the
Security Registrar shall be affected by notice to the contrary.

 

Notwithstanding the
foregoing, with respect to any Global Security, nothing herein shall prevent
the Company, the Trustee, the Security Registrar or any agent of the Company,
the Trustee or the Security Registrar, from giving effect to any written certification,
proxy or other authorization furnished by a Depositary or impair, as between a
Depositary and holders of beneficial interests in any Global Security, the
operation of customary practices governing the exercise of the rights of the
Depositary as Holder of such Global Security.

 

Section 3.09.  Cancellation.

 

All Securities surrendered
for payment, redemption, registration of transfer or exchange or for credit
against any sinking fund payment shall, if surrendered to any Person other than
the Security Registrar, be delivered to the Security Registrar and shall be
promptly cancelled by it.  The Company
may at any time deliver to the Security Registrar for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and may deliver to the Security
Registrar (or to any other Person for delivery to the Security Registrar) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly cancelled by the Security Registrar. 
No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted

 

27

 

by this Indenture.  All cancelled Securities held by the Security
Registrar shall be disposed of by it in its customary manner.

 

Section 3.10.  Computation
of Interest.

 

Except as otherwise
specified as contemplated by Section 3.01 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a
360-day year of twelve 30-day months.

 

ARTICLE IV

 

SATISFACTION AND DISCHARGE

 

Section 4.01.  Satisfaction
and Discharge of Indenture and the Mortgage.

 

This Indenture, the
Guaranteed Obligations and the Mortgage shall upon Company Request cease to be
of further effect (except as to any surviving rights of registration of
transfer or exchange of Securities herein expressly provided for), and the
Trustee, upon receipt of such Company Request and at the sole expense of the
Company, shall execute instruments prepared by the Company and reasonably
acceptable to the Trustee acknowledging satisfaction and discharge of this
Indenture, the Guaranteed Obligations and the Mortgage, which instruments shall
be reasonably requested by the Company, when

 

(a)           either

 

(i)            all Securities theretofore authenticated and
delivered (other than (A) Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 3.06
and (B) Securities for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid
to the Company or discharged from such trust, as provided in Section 10.03),
have been delivered to the Security Registrar for cancellation; or

 

(ii)           all such Securities not theretofore delivered to
the Security Registrar for cancellation (A) have become due and payable,
or (B) will become due and payable at their Stated Maturity within one
year, or (C) have been called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the sole expense, of the Company, and the
Company, in the case of (A), (B) or (C), has deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Security Registrar for cancellation, for principal
(and premium, if any) and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

 

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

 

28

 

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

 

Notwithstanding the
satisfaction and discharge of this Indenture, the Guaranteed Obligations and
the Mortgage, the obligations of the Company and the Guarantor Parties to the
Trustee, the Paying Agent, the Authentication Agent and the Security Registrar
(acting in any capacity under this Indenture) under Section 6.07, and, if
money shall have been deposited with the Trustee pursuant to subclause (ii) of
Clause (a) of this Section, the obligations of the Trustee under Section 4.02
and the obligations of the Trustee and the Paying Agent under the last
paragraph of Section 10.03 shall survive such satisfaction and discharge.

 

Section 4.02.  Application
of Trust Money.

 

Subject to the provisions
of the last paragraph of Section 10.03, all money deposited with the
Trustee pursuant to Section 4.01 shall be held in trust and applied by it,
in accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest for whose
payment such money has been deposited with the Trustee.

 

ARTICLE V

 

REMEDIES

 

Section 5.01.  Events of
Default.

 

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

 

(a)           default in the payment of any installment of
interest upon any Security of that series when it becomes due and payable, and
continuance of such default for a period of 30 days or more; or

 

(b)           default in the payment of all or any part of the
principal of (or premium, if any, on) any Security of that series when it
becomes due and payable at its Maturity; or

 

(c)           default in the performance, or breach, of any
covenant or agreement of the Company or any Guarantor Party in this Indenture
or any Security of that series or in the Mortgage or any other Security
Document (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with or which
has expressly been included in this Indenture solely for the benefit of series
of Securities other than that series), and continuance of such default or
breach for a period of 60 days (except in the case of Section 10.06
hereof, the Mortgage, the other Security Documents and Articles 14 and 15

 

29

 

hereof),
or 180 days in case of Section 10.06 hereof, the Mortgage, the other
Security Documents and Articles 14 and 15 hereof, after there has been given a
written notice, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the Outstanding Securities of that series, specifying such default or
breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder; or

 

(d)           default under any mortgage, indenture (excluding
this Indenture) or instrument under which there is issued, or which secures or
evidences, any indebtedness for borrowed money of the Company or any Restricted
Subsidiary now existing or hereinafter created, which default shall constitute
a failure to pay principal of such indebtedness in an amount exceeding
$50,000,000 when due and payable (other than as a result of acceleration),
after expiration of any applicable grace period with respect thereto, or shall
have resulted in an aggregate principal amount of such indebtedness exceeding
$50,000,000 becoming or being declared due and payable prior to the date on
which it would otherwise have become due and payable, without such indebtedness
having been discharged or such acceleration having been rescinded or annulled
within a period of 30 days after there has been given a written notice, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the
Securities of that series at the time Outstanding, specifying such default with
respect to the other indebtedness and requiring the Company to cause such
indebtedness to be discharged or cause such acceleration to be rescinded or
annulled and stating that such notice is a “Notice of Default” hereunder; or

 

(e)           unless the applicable Collateral has been
released from the Liens securing the Securities of the related series in
accordance with the provisions of the Security Documents (i) any Security
Document ceases to be in full force and effect (except as permitted by the
terms of this Indenture or the Security Documents), or any of the Security
Documents ceases to give the holders of the Securities of the related series a
valid, perfected security interest (except as permitted by the terms of this
Indenture or the Security Documents), in each case (x) with respect to
Collateral with an Appraised Value equal to or more than 3% of the aggregate
Appraised Value under the Appraisals available on the Issue Date and described
in the Offering Memorandum and (y) for a period of 180 days after there
has been given a written notice, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in principal amount of the Securities of that series at the time
Outstanding, specifying such default or (ii) the repudiation or
disaffirmation by the Company or any Guarantor Party in writing of its material
obligations under the Security Documents or the final and unappealable
determination in a judicial proceeding of competent jurisdiction that the
Security Documents are unenforceable or invalid against the Company or any
Guarantor Party party thereto for any reason with respect to Collateral with an
Appraised Value equal to or more than 3% of the aggregate Appraised Value under
the Appraisals available on the Issue Date and described in the Offering
Memorandum which repudiation, disaffirmation or determination is not rescinded,
stayed, or waived by the Persons having such authority pursuant to the Security
Documents or otherwise cured within 60 days after there has been given a
written notice, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the Securities of that series at the time Outstanding, specifying
such occurrence; provided, however, that if, after
giving pro forma effect to such release or invalidity of any such security
interest and any replacement Pool

 

30

 

Aircraft
or cash collateral provided under this Indenture or the applicable Security
Documents, the Debt-to-Collateral Value Ratio does not exceed 63%, no such
default shall exist; or

 

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

 

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

 

(h)           any other Event of Default provided in the
supplemental indenture, if any, or Officers’ Certificate, if any, with respect
to Securities of that series.

 

Section 5.02.  Acceleration
of Maturity; Rescission and Annulment.

 

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

 

At any time after such a
declaration of acceleration with respect to Securities of any series has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the
Holders of a majority in

 

31

 

principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

 

(a)           the Company has paid or deposited with the
Paying Agent a sum sufficient to pay

 

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

 

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

 

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

 

(iv)          all sums paid or advanced by the Trustee or the
Paying Agent hereunder or by the Security Trustee under the Mortgage and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
the Security Trustee, the Paying Agent, the Security Registrar, the
Authentication Agent and their respective agents and counsel;

 

and

 

(b)           all Events of Default with respect to Securities
of that series, other than the nonpayment of the principal of Securities of
that series which have become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 5.13.

 

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

 

Upon receipt by the Trustee
of any declaration of acceleration, or rescission and annulment thereof, with
respect to Securities of a series all or part of which is represented by a
Global Security, the Trustee and the Company shall establish a record date for
determining Holders of Outstanding Securities of such series entitled to join
in such declaration of acceleration, or rescission and annulment, as the case
may be, which record date shall be at the close of business on the day the
Trustee receives such declaration of acceleration, or rescission and annulment,
as the case may be.  The Holders on such
record date, or their duly designated proxies, and only such Persons, shall be
entitled to join in such declaration of acceleration, or rescission and
annulment, as the case may be, whether or not such Holders remain Holders after
such record date; provided, that unless such declaration of
acceleration, or rescission and annulment, as the case may be, shall have
become effective by virtue of the requisite percentage having been obtained
prior to the day which is 90 days after such record date, such declaration of
acceleration, or rescission and annulment, as the case may be, shall
automatically and without further action by any Holder be cancelled and of no
further effect.  Nothing in this
paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after
expiration of such 90-day period, a new declaration of acceleration, or
rescission or annulment thereof, as the case may be, that is identical to a
declaration of acceleration, or rescission or annulment thereof, which has been
cancelled pursuant to the proviso to the preceding sentence, in which event a
new record date shall be established pursuant to the provisions of this Section 5.02.

 

32

 

Section 5.03.  Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that
if

 

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

 

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

 

(c)           default is made in the making or satisfaction of
any sinking fund payment or analogous obligation when and if the same becomes
due pursuant to the terms of any Security, the Company will, upon demand of the
Trustee, pay to the Paying Agent, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for
principal, including any sinking fund payment or analogous obligations (and
premium, if any) and interest and, to the extent that payment of such interest
shall be legally enforceable, interest on any overdue principal (and premium,
if any) and on any overdue interest, at the rate or rates prescribed therefor
in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee
and the Paying Agent and their respective agents and counsel.

 

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

 

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

 

Section 5.04.  Trustee
May File Proofs of Claim.

 

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

 

33

 

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

 

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

 

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay to the Trustee
any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents, advisors and counsel, and any other
amounts due the Trustee under Section 6.07.

 

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 5.05.  Trustee
May Enforce Claims Without Possession of Securities.

 

All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by
the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall be paid and applied as provided in Section 5.06.

 

Section 5.06.  Application of Money Collected.

 

Any money and property
collected by the Trustee pursuant to this Article, any cash proceeds received
by the Security Trustee in respect of any Collateral pursuant to Section 3.01
of the Mortgage, and any payments by the
Company or any Guarantor Party to the Trustee or Security Trustee following an
acceleration of a series of Securities, so long as such acceleration has not
been rescinded as provided herein, shall be applied or held by the
Trustee or the Security Trustee, as the case may be, in the following order, at
the date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal (or premium, if any) or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

 

FIRST: To the payment of
all amounts due the Trustee, the Security Trustee, the Paying Agent, the
Security Registrar and the Authentication Agent under Section 6.07 or the
Mortgage;

 

SECOND: To the Trustee for
the benefit of the Holders of each series of Securities that shall have then
been accelerated as a result of the occurrence and continuance of an Event

 

34

 

of Default (collectively, “Accelerated Series”) until repayment in
full of the Secured Obligations in respect of all such Accelerated Series;

 

THIRD: To be held by the
Security Trustee as cash collateral for any series of Securities that has not
then been accelerated, until all such series of Securities shall have either
become Accelerated Series or matured, in each case, to be then paid to the
Trustee to be applied to repayment in full of the Secured Obligations in
respect of all such series (after repayment of the Trustee’s fees and expenses
and indemnities); and

 

FOURTH: If any funds shall
be left remaining, to the Company, the Guarantor Parties or to whomsoever a
court of competent jurisdiction may direct.

 

Section 5.07.  Limitation
on Suits.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 5.08.  Unconditional
Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of
(and premium, if any) and (subject to Section 3.07) interest on such
Security on the Stated Maturity or Maturities expressed in such Security (or,
in the case of redemption, on the Redemption Date)

 

35

 

and to institute suit for
the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

 

Section 5.09.  Restoration
of Rights and Remedies.

 

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

 

Section 5.10.  Rights and
Remedies Cumulative.

 

Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities in the last paragraph of Section 3.06, no right
or remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  To the
extent permitted by applicable law, the assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

Section 5.11.  Delay or
Omission Not Waiver.

 

To the extent permitted by
applicable law, no delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. 
Every right and remedy given by this Article or by law to the
Trustee or to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by the Trustee or by the Holders, as the case may be,
in accordance with the terms of this Indenture.

 

Section 5.12.  Control by
Holders.

 

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

 

(a)           such direction shall not be in conflict with any
rule of law or with this Indenture or the Mortgage,

 

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

 

(c)           to the extent such direction relates to the
Collateral, Mortgage or other Security Documents, the Trustee shall promptly
instruct the Security Trustee to take such action.

 

36

 

Upon receipt by the Trustee
of any purported direction with respect to Securities of a series all or part
of which is represented by a Global Security, the Trustee shall establish a
record date for determining Holders of Outstanding Securities of such series
entitled to join in such direction, which record date shall be at the close of
business on the day the Trustee receives such direction.  The Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to join in
such direction, whether or not such Holders remain Holders after such record
date; provided  that, unless such majority in principal
amount shall have been obtained prior to the day which is 90 days after such
record date, such direction shall automatically and without further action by
any Holder be cancelled and of no further effect.  Nothing in this paragraph shall prevent a
Holder, or a proxy of a Holder, from giving, after expiration of such 90-day
period, a new direction identical to a direction which has been cancelled
pursuant to the proviso to the preceding sentence, in which event a new record
date shall be established pursuant to the provisions of this Section 5.12.

 

Section 5.13.  Waiver of
Past Defaults.

 

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

 

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

 

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

 

The Company may, but shall
not be obligated to, fix a record date for the purpose of determining the
Persons entitled to waive any past default hereunder.  If a record date is fixed, the Holders on
such record date, or their duly designated proxies, and only such Persons,
shall be entitled to waive any default hereunder, whether or not such Holders
remain Holders after such record date; provided
that, unless such majority in
principal amount shall have been obtained prior to the date which is 90 days
after such record date, any such waiver previously given shall automatically
and without further action by any Holder be cancelled and of no further effect.

 

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

 

Section 5.14.  Undertaking
for Costs.

 

All parties to this
Indenture agree, and each Holder of any Security by his or her acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture or the Mortgage, or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant
in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and

 

37

 

expenses, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder or group of Holders holding in the aggregate more than
10% in principal amount of the Outstanding Securities of any series, or to any
suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security on or after the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).

 

Section 5.15.  Waiver of
Stay or Extension Laws.

 

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

 

ARTICLE VI

 

THE TRUSTEE

 

Section 6.01.  Certain
Duties and Responsibilities.

 

(a)           Except during the continuance of an Event of Default
actually known to a Responsible Officer of the Trustee,

 

(i)            the Trustee undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; 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;
but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture but need not investigate the
accuracy of mathematical calculations or other facts stated therein.

 

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

 

38

 

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

 

(i)            this Subsection shall not be construed to limit
the effect of Subsection (a) of this Section;

 

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

 

(iii)          the Trustee shall not be liable with respect to
any action taken or omitted to be taken by it in good faith in accordance with
the direction of the Holders of a majority in principal amount of the
Outstanding Securities of any series, determined as provided in Section 5.12;
and

 

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

 

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

 

Section 6.02.  Notice of
Defaults.

 

Within 90 days after the
occurrence of any default hereunder with respect to the Securities of any
series, the Trustee shall transmit by mail to all Holders of Securities of such
series, as their names and addresses appear in the Security Register, notice of
such default hereunder actually known to the Trustee, unless such default shall
have been cured or waived; provided, however, that, except in the case of a
default in the payment of the principal of (or premium, if any) or interest on
any Security of such series or in the payment of any sinking fund installment
with respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors or Responsible Officers of the
Trustee in good faith determine that the withholding of such notice is in the
interest of the Holders of Securities of such series.  For the purpose of this Section, the term “default” means any event which is, or after
notice or lapse of time or both would become, an Event of Default with respect
to Securities of such series.  The
Trustee shall not be charged with notice of an Event of Default or default
without a Responsible Officer receiving a notice or actual knowledge of such
occurrence.

 

Section 6.03.  Certain
Rights of Trustee.

 

Subject to the provisions
of Section 6.01:

 

39

 

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

 

(b)           any request or direction of the Company
mentioned herein shall be sufficiently evidenced by a Company Request or
Company Order or as otherwise expressly provided herein and any resolution of
the Board of Directors may be sufficiently evidenced by a Board Resolution;

 

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

 

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

 

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

 

(f)            the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney at the expense of the Company and shall incur no
liability of any kind by reason of such inquiry or investigation, except for
liability which may arise due to the gross negligence or willful misconduct on
the part of the Trustee;

 

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

 

(h)           in no event shall the Trustee, its directors,
officers, agents or employees be responsible or liable for special, indirect,
punitive or consequential loss or damage of any kind whatsoever (including, but
not limited to, loss 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; and

 

40

 

(i)            the rights, privileges, protections, immunities
and benefits given to the Trustee, including its right to be indemnified, are
extended to, and shall be enforceable by, the Paying Agent, Authentication
Agent and Security Registrar.

 

Prior to taking any action
under this Indenture, the Trustee will be entitled to indemnification
satisfactory to it in its sole discretion against all losses, liabilities, fees
and expenses caused by taking or not taking such action in accordance with this
Indenture.

 

Section 6.04.  Not
Responsible for Recitals or Issuance of Securities.

 

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

 

Section 6.05.  May Hold
Securities.

 

The Trustee, any Paying
Agent, any Security Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 6.08 and 6.13, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, Paying Agent,
Security Registrar or such other agent.

 

Section 6.06.  Money Held
in Trust.

 

Money held by the Trustee
or the Paying Agent in trust hereunder need not be segregated from other funds
except to the extent required by law. 
Neither the Paying Agent nor the Trustee shall be under any liability
for interest on any money received by it hereunder except as otherwise agreed
with the Company.

 

Section 6.07.  Compensation
and Reimbursement.

 

The Company agrees:

 

(a)           to pay to the Trustee, the Paying Agent, the
Security Registrar and the Authentication Agent from time to time such
compensation as shall be agreed to in writing between the Company and the
Trustee for all services rendered by the Trustee, the Paying Agent, the
Security Registrar and the Authentication Agent hereunder (which compensation
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

 

(b)           except as otherwise expressly provided herein,
to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents, advisors and counsel), except

 

41

 

any
such expense, disbursement or advance as shall be determined to have been
caused by its own negligence or willful misconduct; and

 

(c)           to indemnify the Trustee, the Paying Agent, the
Security Registrar and the Authentication Agent, their affiliates, officers,
directors, employees and agents for, and to hold each of them harmless against,
any loss, liability or expense incurred without negligence or willful
misconduct on their part, arising out of or in connection with the acceptance
or administration of the trust or trusts hereunder, including the costs and
expenses of defending themselves against any claim or liability in connection
with the exercise or performance of any of their powers or duties hereunder.

 

The provisions of this
Section 6.07 shall survive any defeasance of the Securities in accordance
with Article 13 or other termination of this Indenture and the resignation
and removal of the Trustee in accordance with Section 6.10 or the removal
of the Paying Agent, Securities Registrar or Authentication Agent.

 

When the Trustee incurs
expenses or renders services in connection with an Event of Default, the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

 

Section 6.08.  Disqualification;
Conflicting Interests.

 

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

 

Section 6.09.  Corporate
Trustee Required; Eligibility.

 

There shall at all times be
a Trustee hereunder which shall be a corporation organized and doing business
under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000 subject
to supervision or examination by Federal or State authority.  If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.  No obligor upon
the Securities or Person directly or indirectly controlling, controlled by, or
under common control with such obligor shall serve as Trustee upon the
Securities.  If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section,
it shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

 

Section 6.10.  Resignation
and Removal; Appointment of Successor.

 

(a)           No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 6.11.

 

42

 

(b)           The Trustee may resign at any time with respect
to the Securities of one or more series by giving written notice thereof to the
Company.  If the instrument of acceptance
by a successor Trustee required by Section 6.11 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may, at the expense of the Company, petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

 

(c)           The Trustee may be removed at any time with
respect to the Securities of any series by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series, delivered to the
Trustee and to the Company.  The removed
Trustee may, at the expense of the Company, petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

(d)           If at any time:

 

(i)            the Trustee shall fail to comply with Section 6.08
after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

 

(ii)           the Trustee shall cease to be eligible under
Section 6.09 and shall fail to resign after written request therefor by
the Company or by any such Holder, or

 

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

 

then, in any such case, (A) the
Company by a Board Resolution may remove the Trustee with respect to all
Securities, or (B) subject to Section 5.14, any Holder who has been a
bona fide Holder of a Security for at
least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee
with respect to all Securities and the appointment of a successor Trustee or
Trustees.

 

(e)           If the Trustee shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Trustee for any cause, with respect of the Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee
with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities
of one or more or all of such series and that at any time there shall be only
one Trustee with respect to the Securities of any particular series) and shall
comply with the applicable requirements of Section 6.11.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 6.11, become the
successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company.  If no successor Trustee with respect

 

43

 

to
the Securities of any series shall have been so appointed by the Company or the
Holders and accepted appointment in the manner required by Section 6.11,
any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

 

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

 

(g)           Notwithstanding replacement of the Trustee
pursuant to Section 6.10, the Company’s obligations under Section 6.07
shall continue for the benefit of the retiring Trustee and the Company shall
pay to any replaced or removed Trustee all amounts owed under Section 6.07
upon such replacement or removal.

 

Section 6.11.  Acceptance
of Appointment by Successor.

 

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

 

(b)           In case of the appointment hereunder of a
successor Trustee with respect to the Securities of one or more (but not all)
series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (ii) if the retiring
Trustee is not retiring with respect to all Securities, shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series as to which the retiring Trustee is not retiring
shall continue to be vested in the retiring Trustee, and (iii) shall add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered

 

44

 

by
any other such Trustee; and upon execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall, at the expense of the Company, duly assign, transfer
and deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates.

 

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

 

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

 

Section 6.12.  Merger,
Conversion, Consolidation or Succession to Business.

 

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

 

Section 6.13.  Preferential
Collection of Claims Against Company.

 

(a)           Subject to Subsection (b) of this Section,
if the Trustee shall be or shall become a creditor, directly or indirectly,
secured or unsecured, of the Company within three months prior to a default, as
defined in Subsection (c) of this Section, or subsequent to such a
default, then, unless and until such default shall be cured, the Trustee shall
set apart and hold in a special account for the benefit of the Trustee
individually, the Holders of the Securities and the holders of other indenture
securities, as defined in Subsection (c) of this Section:

 

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

 

45

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

If the Trustee shall be
required to account, the funds and property held in such special account and
the proceeds thereof shall be apportioned among the Trustee, the Holders and
the holders of other indenture securities in such manner that the Trustee, the
Holders and the holders of other indenture securities realize, as a result of
payments from such special account and payments of dividends on claims filed
against the Company in bankruptcy or receivership or in proceedings for reorganization
pursuant to the Federal Bankruptcy Act or applicable State law, the same
percentage of their respective claims, figured before crediting to the claim of
the Trustee anything on account of the receipt by it from the Company of the
funds and property in such special account and before crediting to the
respective claims of the Trustee and the Holders

 

46

 

and the holders of other
indenture securities dividends on claims filed against the Company in bankruptcy
or receivership or in proceedings for reorganization pursuant to the Federal
Bankruptcy Act or applicable State law, but after crediting thereon receipts on
account of the indebtedness represented by their respective claims from all
sources other than from such dividends and from the funds and property so held
in such special account.  As used in this
paragraph, with respect to any claim, the term “dividends” shall include any distribution with respect to such
claim, in bankruptcy or receivership or proceedings for reorganization pursuant
to the Federal Bankruptcy Act or applicable State law, whether such
distribution is made in cash, securities or other property, but shall not
include any such distribution with respect to the secured portion, if any, of
such claim.  The court in which such
bankruptcy, receivership or proceedings for reorganization is pending shall
have jurisdiction (i) to apportion among the Trustee, the Holders and the
holders of other indenture securities, in accordance with the provisions of
this paragraph, the funds and property held in such special account and
proceeds thereof, or (ii) in lieu of such apportionment, in whole or in
part, to give to the provisions of this paragraph due consideration in
determining the fairness of the distributions to be made to the Trustee and the
Holders and the holders of other indenture securities with respect to their
respective claims, in which event it shall not be necessary to liquidate or to
appraise the value of any securities or other property held in such special
account or as security for any such claim, or to make a specific allocation of
such distributions as between the secured and unsecured portions of such
claims, or otherwise to apply the provisions of this paragraph as a
mathematical formula.

 

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

 

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

 

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

 

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

 

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

 

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

 

47

 

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

 

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

 

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

 

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

 

(c)           For the purposes of this Section only:

 

(i)            the term “default”
means any failure to make payment in full of the principal of or interest on
any of the Securities or upon the other indenture securities when and as such
principal or interest becomes due and payable;

 

(ii)           the term “other
indenture securities” means securities upon which the Company is an
obligor outstanding under any other indenture (A) under which the Trustee
is also trustee, (B) which contains provisions substantially similar to
the provisions of this Section, and (C) under which a default exists at
the time of the apportionment of the funds and property held in such special
account;

 

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

 

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

 

(v)           the term “Company”
means any obligor upon the Securities; and

 

(vi)          the term “Federal
Bankruptcy Act” means the Bankruptcy Act or Title 11 of the United
States Code.

 

48

 

Section 6.14.  Appointment
of Authentication Agent.

 

At any time when any of the
Securities of one or more series remain outstanding, the Trustee may appoint an
Authentication Agent or Agents with respect to Securities of one or more series
which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series, and Securities so authenticated shall be entitled to
the benefits hereof and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. 
Wherever reference is made herein to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authentication Agent and a certificate of authentication
executed on behalf of the Trustee by an Authentication Agent.  Each Authentication Agent shall be acceptable
to the Company and shall at all times be a corporation organized and doing
business under the laws of the United States, any State thereof or the District
of Columbia, authorized under such laws to act as Authentication Agent, having
a combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by Federal or State authority.  If such Authentication Agent publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authentication Agent shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published.  If at
any time an Authentication Agent shall cease to be eligible in accordance with
the provisions of this Section, such Authentication Agent shall resign
immediately in the manner and with the effect specified in this Section.  The Authentication Agent shall initially be
the Trustee.

 

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

 

An Authentication Agent may
resign at any time by giving written notice thereof to the Trustee and to the
Company.  The Trustee may at any time
terminate the agency of an Authentication Agent by giving written notice thereof
to such Authentication Agent and to the Company.  Upon receiving such a notice of resignation
or upon such a termination, or in case at any time such Authentication Agent
shall cease to be eligible in accordance with the provisions of this Section,
the Trustee may appoint a successor Authentication Agent which shall be
acceptable to the Company and shall mail notice of such appointment to each
Holder of Securities of the series with respect to which such Authentication
Agent will serve.  Any successor Authentication
Agent upon acceptance of its appointment hereunder shall become vested with all
the rights, powers and duties of its predecessor hereunder, with like effect as
if originally named as an Authentication Agent. 
No successor Authentication Agent shall be appointed unless eligible
under the provisions of this Section. 
The provisions of Section 6.07 shall also apply to any
Authentication Agent.

 

49

 

The Company agrees to pay
to each Authentication Agent from time to time reasonable compensation for its
services under this Section.  If the
Authentication Agent bills the Trustee for its services, the Company may either
pay the Authentication Agent or provide funds to the Trustee which the Trustee
shall use to pay the Authentication Agent.

 

Pursuant to each
appointment made under this Section, the Securities of each series covered by
such appointment may have endorsed thereon, in addition to the Trustee’s
certificate of authentication, an alternative certificate of authentication in
the form (i) set forth on Exhibit A or Exhibit B, as applicable,
hereto for 2014 Notes, 2016 Notes and 2018 Notes or (ii) set forth in
Section 2.03 for all other Securities.

 

Section 6.15.  Roles of
Trustee.

 

The rights, privileges,
protections, immunities and benefits given to the Trustee, including, without
limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities in which it may serve,
each agent, custodian and other person employed by it to act hereunder.

 

ARTICLE VII

 

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

Section 7.01.  Company to
Furnish Trustee Names and Addresses of Holders.

 

The Company will furnish or
cause to be furnished to the Trustee

 

(a)           either (i) not later than March 31 and
September 30 in each year in the case of Original Issue Discount
Securities of any series which by their terms do not bear interest prior to
Maturity, or (ii) not more than 15 days after each Regular Record Date in
the case of Securities of any other series, a list, each in such form as the
Trustee may reasonably require, of the names and addresses of the Holders of
Securities of such series as of the preceding March 15 or September 15
or as of such Regular Record Date, as the case may be; and

 

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

 

excluding from any such
list names and addresses received by the Trustee in its capacity as Security
Registrar.

 

Section 7.02.  Preservation
of Information; Communications to Holders.

 

(a)           The Trustee shall preserve, in as current a form
as is reasonably practicable, the names and addresses of Holders contained in
the most recent list furnished to the Trustee as provided in Section 7.01
and the names and addresses of Holders received by the Trustee in its capacity
as Security Registrar in the event the Trustee becomes the Security
Registrar.  The Trustee may destroy any
list furnished to it as provided in Section 7.01 upon receipt of a new
list so furnished.

 

50

 

(b)           If three or more Holders (herein referred to as
“applicants”) apply in writing to the Trustee, and furnish to the Trustee
reasonable proof that each such applicant has owned a Security for a period of
at least six months preceding the date of such application, and such
application states that the applicants desire to communicate with other Holders
with respect to their rights under this Indenture or under the Securities and
is accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Trustee shall, within five business
days after the receipt of such application, at its election, either

 

(i)            afford such applicants access to the information
preserved at the time by the Trustee in accordance with Section 7.02(a),
or

 

(ii)           inform such applicants as to the approximate
number of Holders whose names and addresses appear in the information preserved
at the time by the Trustee in accordance with Section 7.02(a), and as to
the approximate cost of mailing to such Holders the form of proxy or other
communication, if any, specified in such application.

 

If the Trustee shall elect
not to afford such applicants access to such information, the Trustee shall,
upon the written request of such applicants, mail to each Holder whose name and
address appear in the information preserved at the time by the Trustee in
accordance with Section 7.02(a) a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness
after a tender to the Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within
five days after such tender the Trustee shall mail to such applicants and file
with the Commission, together with a copy of the material to be mailed, a
written statement to the effect that, in the opinion of the Trustee, such
mailing would be in violation of applicable law.  Such written statement shall specify the
basis of such opinion.  If the
Commission, after opportunity for a hearing upon the objections specified in
the written statement so filed, shall enter an order refusing to sustain any of
such objections or if, after the entry of an order sustaining one or more of
such objections, the Commission shall find, after notice and opportunity for
hearing, that all the objections so sustained have been met and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such
Holders with reasonable promptness after the entry of such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

 

(c)           Every Holder of Securities, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders in accordance with Section 7.02(b),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable under any circumstance by reason of
mailing any material pursuant to a request made under Section 7.02(b).

 

Section 7.03.  Reports by
Trustee.

 

(a)           The Trustee shall transmit to Holders such
reports concerning the Trustee and its actions under this Indenture as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto.  If required
by Section 313(a) of the Trust

 

51

 

Indenture
Act, the Trustee shall, within sixty days after each May 15 following the
date of the initial issuance of Securities under this Indenture deliver to
Holders a brief report, dated as of such May 15, which complies with the
provisions of such Section 313(a). 
The Trustee shall also comply with Sections 313(b) and (c) of
the Trust Indenture Act.

 

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

 

Section 7.04.  Reports by
Company.

 

The Company shall:

 

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

 

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

 

(c)           transmit by mail to all Holders, as their names
and addresses appear in the Security Register, within 30 days after the filing
thereof with the Trustee, such summaries of any information, documents and
reports required to be filed by the Company pursuant to Subsections (a) and
(b) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission; and

 

(d)           furnish to the Trustee, within 120 days of the
end of each fiscal year of the Company, a brief certificate from the principal
executive officer, principal financial officer or principal accounting officer
of the Company as to his or her knowledge of the Company’s compliance with all
conditions and covenants under this Indenture, such compliance to be determined
without regard to any period of grace or requirement of notice provided under
this Indenture, and such Officers’ Certificates and Opinions of Counsel as
shall be required by the Mortgage in respect of the Collateral.  In addition, in connection with the release
or substitution of any Collateral, the Company shall deliver or cause to be delivered
copies of any Officers’ Certificates or Opinions of Counsel that may be
delivered pursuant to the terms of the Mortgage.

 

52

 

For the avoidance of doubt,
delivery of reports, information and documents to the Trustee under Section 7.04
is for informational purposes only and the Trustee’s receipt of the foregoing
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).

 

ARTICLE VIII

 

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

Section 8.01.  Company
May Consolidate, Etc., Only on Certain Terms.

 

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

 

(i)            in case the Company shall consolidate with or
merge into another Person or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, the Person formed by such
consolidation or into which the Company is merged or the Person which acquires
by conveyance or transfer, or which leases, the properties and assets of the
Company substantially as an entirety shall be a corporation, partnership or
trust, shall be organized and validly 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,
and entered into with, the Trustee, in form satisfactory to the Trustee, the
due and punctual payment of the principal of (and premium, if any) and interest
on all the Securities and the performance of every covenant of this Indenture
and the Mortgage on the part of the Company to be performed or observed;

 

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

 

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

 

(b)           Except as expressly permitted by this Indenture
or the Security Documents (including any sale, transfer or other disposition or
removal of Pool Aircraft in accordance with this Indenture and applicable
Security Documents), the Company will not permit any Guarantor Party to
consolidate with or merge into any other Person or convey, transfer or lease
its properties and assets substantially as an entirety to any Person, and the
Company shall not permit

 

53

 

any
Person to consolidate with or merge into any Guarantor Party or convey, transfer
or lease its properties and assets substantially as an entirety to any
Guarantor Party, unless:

 

(i)            in case any Guarantor Party shall consolidate
with or merge into another Person or convey, transfer or lease its properties
and assets substantially as an entirety to any Person, the Person formed by
such consolidation or into which such Guarantor Party is merged or the Person
which acquires by conveyance or transfer, or which leases, the properties and
assets of the such Guarantors Party substantially as an entirety shall
expressly assume, by an indenture supplemental hereto, executed and delivered
to, and entered into with, the Trustee, in form satisfactory to the Trustee,
the due and punctual performance of every covenant of the Guaranteed Obligations
and the Mortgage, if applicable, on the part of such Guarantor Party to be
performed or observed;

 

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

 

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

 

Section 8.02.  Successor
Corporation Substituted.

 

Upon any consolidation by
the Company (or Guarantor Party, as applicable) with or merger by the Company
(or Guarantor Party, as applicable) into any other Person or any conveyance,
transfer or lease of the properties and assets of the Company (or Guarantor
Party, as applicable) substantially as an entirety in accordance with Section 8.01,
the successor Person formed by such consolidation or into which the Company (or
Guarantor Party, as applicable) 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 Guarantor Party, as applicable) under
this Indenture and the Mortgage with the same effect as if such successor
Person had been named as the Company (or Guarantor Party, as applicable)
herein, and thereafter, except in the case of a lease, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture, the
Mortgage (and Guaranteed Obligations, if applicable) and the Securities.

 

ARTICLE IX

 

SUPPLEMENTAL INDENTURE

 

Section 9.01.  Supplemental Indentures Without Consent of Holders.

 

Without the consent of any
Holders, the Company (and any applicable Guarantor Party), when authorized by a
Board Resolution, and the Trustee (when instructed by Company Order), at any
time and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:

 

54

 

(a)           to evidence the succession of another
corporation to the Company or another Person to any Guarantor Party, Owner’s
Trust or SPC and the assumption by any such successor of the covenants of the
Company (or Guarantor Party, Owner’s Trust or SPC, if applicable) herein, in
the Mortgage, the applicable Guaranteed Obligations and in the Securities; or

 

(b)           to add to the covenants of the Company or any
Guarantor Party for the benefit of the Holders of all or any series of
Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included
solely for the benefit of such series) or to surrender any right or power
herein conferred upon the Company or any Guarantor Party; or

 

(c)           to add any additional Events of Default; or

 

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

 

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

 

(f)            to provide additional collateral as security for
the Securities of any series or the Guaranteed Obligations in respect thereof;
or

 

(g)           to evidence the release of liens in favor of the
Security Trustee in the Collateral in accordance with the terms of this Indenture
or the Security Documents; or

 

(h)           to add a Guarantor or an Owner Trust or SPC or
to release a Guarantor or an Owner Trust or SPC in accordance with this
Indenture or the Security Documents; or

 

(i)            to establish the form or terms of Securities of
any series as permitted by Sections 2.01 and 3.01; or

 

(j)            to evidence and provide for the acceptance of
appointment hereunder by a successor Trustee with respect to the Securities of
one or more series and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 6.11(b);

 

(k)           to cure any ambiguity, to correct or supplement
any provision herein which may be inconsistent with any other provision herein,
or to make any other provisions with respect to matters or questions arising
under this Indenture, any Guaranteed Obligation or under the Mortgage, provided such action shall not adversely
affect the interests of the Holders of Securities of any series in any material
respect; or

 

55

 

(l)            to conform the text of this Indenture or the
Securities to any provision of the “Description of Notes” section of the
Offering Memorandum to the extent that such provision in such “Description of
Notes” was intended to be a verbatim recitation of a provision of this
Indenture or the Securities.

 

(m)          to provide for the issuance of the Exchange
Securities or Additional Securities, which shall have terms substantially
identical in all material respects to the Initial Securities, and which shall
be treated, together with any outstanding Initial Securities, as a single issue
of securities.

 

Section 9.02.  Supplemental
Indentures with Consent of Holders.

 

With the consent of the
Holders of not less than a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture, by Act of
said Holders delivered to the Company and the Trustee, the Company, when
authorized by a Board Resolution, and the Trustee may enter into an indenture
or indentures supplemental hereto for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Indenture
or of the Mortgage or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture or of the Mortgage; provided, however, that notwithstanding the foregoing,
with respect to the 2014 Notes (including any 2014 Exchange Notes), the 2016
Notes (including any 2016 Exchange Notes) and the 2018 Notes (including any
2018 Exchange Notes), the Holders of such Securities shall vote together as a
single group for purposes of this Section 9.02 (unless any such indenture
or indentures supplemental hereto shall affect (i) only the 2014 Notes,
only the 2016 Notes or only the 2018 Notes, in which case any such indenture or
indentures supplemental hereto shall only require the consent of the holders of
a majority in principal amount of the Outstanding Securities of the affected
series or (ii) the Securities of one series differently than the terms of
the Securities of any other series, in which case any such indenture or
indentures supplemental hereto shall require the consent of the holders of a
majority in principal amount of the Outstanding Securities of only the related
such series); and provided, further, however,
that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Security affected thereby,

 

(a)           change the Stated Maturity of the principal of,
or any installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.02,
or adversely affect any right of repayment at the option of the Holder of any
Security, or reduce the amount of, or postpone the date fixed for, the payment
of any sinking fund or analogous obligation, or change the coin or currency in
which any Security or any premium or the interest thereon is payable, or impair
the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or

 

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

 

56

 

Indenture
or amend, change or modify any provision of this Indenture affecting the
ranking of any Outstanding Security in a manner adverse to the Holders of each
Outstanding Security affected thereby, or

 

(c)           modify any of the provisions of this Section,
Section 5.13 or Section 10.11, except to increase any such percentage
or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, provided, however, that this clause shall not be
deemed to require the consent of any Holder with respect to changes in the
references to “the Trustee” and concomitant changes in this Section and
Section 10.11, or the deletion of this proviso, in accordance with the
requirements of Sections 6.11(b) and 9.01(g).

 

In addition, any amendment to, or waiver of, the
provisions of this Indenture or any Security Document that has the effect of
releasing (i) all or substantially all of the
Collateral from the Liens securing the Securities under the Mortgage or the
Guaranteed Obligations, or (ii) all or substantially all of the Guaranteed
Obligations required to be maintained under this Indenture or the Security Documents
will require the consent of holders of at least 75% in aggregate principal
amount of then Outstanding Securities of the affected series, except, in each case, as otherwise permitted in
accordance with the terms of this Indenture or the Security Documents, or upon
the discharge, redemption or defeasance of all Outstanding Securities of the
series affected thereby in full as provided herein.

 

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

 

The Company may, but shall
not be obligated to, fix a record date for the purpose of determining the
Persons entitled to consent to any indenture supplemental hereto.  If a record date is fixed, the Holders on
such record date or their duly designated proxies, and only such Persons, shall
be entitled to consent to such supplemental indenture, whether or not such
Holders remain Holders after such record date; provided  that,
unless such consent shall have become effective by virtue of the requisite
percentage having been obtained prior to the date which is 90 days after
such record date, any such consent previously given shall automatically and
without further action by any Holder be cancelled and of no further effect.

 

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

 

Section 9.03.  Execution
of Supplemental Indentures.

 

In executing, or accepting
the additional trusts created by, any supplemental indenture or similar
document permitted by this Article or the modifications thereby of the
trusts created by this Indenture, the Trustee shall be provided with, and
(subject to Section 6.01) shall be fully protected in relying upon, an
Officers’ Certificate and Opinion of Counsel stating that the

 

57

 

execution of such
supplemental indenture is authorized or permitted by this Indenture.  The Trustee may, but shall not be obligated
to, enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

 

Section 9.04.  Effect of
Supplemental Indentures.

 

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

 

Section 9.05.  Conformity
with Trust Indenture Act.

 

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

 

Section 9.06.  Reference
in Securities to Supplemental Indentures.

 

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

 

Section 9.07.  Reservation
of Rights of Trustee.

 

Notwithstanding anything to
the contrary in Sections 9.01 or 9.02, no supplemental indenture or
modification or amendment to this Indenture which has the effect of (i) materially
increasing the obligations or duties of the Trustee hereunder, (ii) materially
decreasing the compensation or rights of the Trustee hereunder, or (iii) materially
and adversely affecting the Trustee, shall become effective without the prior
consent of the Trustee.

 

ARTICLE X

 

COVENANTS

 

Section 10.01.  Payment of
Principal, Premium and Interest.

 

The Company covenants and
agrees for the benefit of each series of Securities that it will duly and
punctually pay the principal of (and premium, if any) and interest on the
Securities of that series in accordance with the terms of the Securities and
this Indenture, subject to the provisions of any modifications provided by the
supplemental indenture, if any, or the Officers’ Certificate, if any, under
which such series of Securities is issued. 
In the event the Company is required to pay Additional Interest with
respect to a series of Securities, the Company will provide written notice to
the Trustee and the Paying Agent of the Company’s obligation to pay

 

58

 

Additional Interest no
later than 15 days prior to the next Interest Payment Date with respect to such
series, which notice shall set forth the amount of the Additional Interest to
be paid by the Company.  The Trustee
shall not at any time be under any duty or responsibility to any Holders to
determine whether the Additional Interest is payable and the amount thereof.

 

Section 10.02.  Maintenance
of Office or Agency.

 

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

 

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

 

Section 10.03.  Money for
Securities Payments to Be Held in Trust.

 

If the Company shall at any
time act as its own Paying Agent with respect to any series of Securities, it
will, on or before each due date of the principal of (and premium, if any) or
interest on any of the Securities of that series, segregate and hold in trust
for the benefit of the Persons entitled thereto a sum sufficient to pay the
principal (and premium, if any) or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
will promptly but in any event within 5 Business Days notify the Trustee of its
action or failure so to act.

 

Whenever the Company shall
have one or more Paying Agents for any series of Securities, it will, prior to
each due date of the principal of (and premium, if any) or interest on any
Securities of that series, deposit with a Paying Agent a sum sufficient to pay
the principal (and premium, if any) or interest so becoming due, such sum to be
held in trust for the benefit of the Persons entitled to such principal,
premium or interest, and (unless such Paying Agent is the Trustee) the Company
will promptly but in any event within 5 Business Days notify the Trustee of its
action or failure so to act.

 

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

 

59

 

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

 

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

 

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

 

The Company may at any
time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or by Company Order direct any Paying
Agent to pay, to the Trustee all sums held in trust by the Company or such
Paying Agent, such sums to be held by the Trustee upon the same trusts as those
upon which such sums were held by the Company or such Paying Agent; and, upon
such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.  Any Paying Agent shall also be entitled to
the benefits and protections afforded the Trustee under Article 6.

 

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

 

Section 10.04.  Corporate
Existence.

 

Subject to Article 8,
the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence and the rights (charter
and statutory) and franchises of the Company and the Restricted Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right or franchise if it shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and/or any Restricted Subsidiary and that the loss thereof is not
disadvantageous in any material respect to the Holders.

 

60

 

Section 10.05.  Payment of
Taxes and Other Claims.

 

The Company will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (1) all taxes, assessments and governmental charges levied or
imposed upon the Company or any Restricted Subsidiary or upon the income,
profits or property of the Company or any Restricted Subsidiary, and
(2) all lawful claims for labor, materials and supplies, which in each
case described in clause (1) or (2), if unpaid, might by law become a lien
upon the property of the Company or any Restricted Subsidiary; provided, however, that the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings.

 

Section 10.06.  Restrictions
upon Mortgages, Liens or Pledge of Property; Restrictions upon Mortgages on
Collateral.

 

(a)           The Company will not and will not permit any of
its Restricted Subsidiaries to, directly or indirectly, issue, assume or
guarantee any indebtedness for borrowed money secured by any mortgage on or
with respect to the Collateral except for Permitted Collateral Liens.

 

(b)           The Company will not, nor will it permit any
Restricted Subsidiary to, directly or indirectly, issue, assume or guarantee
any indebtedness for borrowed money secured by any mortgage, pledge, lien or
other encumbrance of any nature (mortgages, pledges, liens and other
encumbrances being hereinafter called “mortgage”
or “mortgages”) upon any property
of the Company or any Restricted Subsidiary that does not constitute
Collateral, or upon any shares of stock of any Restricted Subsidiary that is
not a Guarantor, without in any such case effectively providing, concurrently
with the issuance, assumption or guaranty of any such indebtedness for borrowed
money, that the Securities (together with, if the Company shall so determine,
any other indebtedness of the Company or such Restricted Subsidiary ranking
equally with the Securities, without regard to whether or not secured, then
existing or thereafter created) shall be secured equally and ratably with such
indebtedness for borrowed money; provided, however, that the foregoing restrictions
shall not apply to:

 

(i)            mortgages existing on August 1, 2006 (other
than any mortgages being refinanced on the Issue Date);

 

(ii)           mortgages to secure the payment of all or part
of the purchase price of such property (other than property acquired for lease
to a Person other than the Company or a Restricted Subsidiary) upon the
acquisition of such property by the Company or a Restricted Subsidiary or to
secure any indebtedness for borrowed money incurred or guaranteed by the
Company or a Restricted Subsidiary prior to, at the time of, or within 60 days
after the later of the acquisition, completion of construction or commencement
of full operation of such property, which indebtedness for borrowed money is
incurred or guaranteed for the purpose of financing all or any part of the
purchase price thereof or construction of improvements thereon; provided, however, that in the case of any such
acquisition, construction or improvement, the mortgage shall not apply to any
property theretofore owned by the Company or a Restricted Subsidiary,

 

61

 

other
than, in the case of any such construction or improvement, any theretofore
unimproved real property on which the property so constructed, or the
improvement, is located;

 

(iii)          mortgages on the property of a Restricted
Subsidiary on the date it became a Restricted Subsidiary;

 

(iv)          mortgages securing indebtedness for borrowed
money of a Restricted Subsidiary owing to the Company or to another Restricted
Subsidiary;

 

(v)           mortgages on property of a corporation existing
at the time such corporation is merged into or consolidated with the Company or
a Restricted Subsidiary or at the time of a purchase, lease or other
acquisition of the properties of a corporation or firm as an entirety or substantially
as an entirety by the Company or a Restricted Subsidiary;

 

(vi)          any replacement or successive replacement in
whole or in part of any mortgage referred to in the foregoing clauses (i) to
(v), inclusive; provided, however, that the principal amount of the
indebtedness for borrowed money secured by the mortgage shall not be increased
and the principal repayment schedule and maturity of such indebtedness shall
not be extended and (A) such replacement shall be limited to all or a part
of the property which secured the mortgage so replaced (plus improvements and
construction on such property), or (B) if the property which secured the
mortgage so replaced has been destroyed, condemned or damaged and pursuant to
the terms of the mortgage other property has been substituted therefor, then
such replacement shall be limited to all or part of such substituted property;

 

(vii)         liens created by or resulting from any
litigation or other proceeding which is being contested in good faith by
appropriate proceedings, including liens arising out of judgments or awards
against the Company or any Restricted Subsidiary with respect to which the
Company or such Restricted Subsidiary is in good faith prosecuting an appeal or
proceedings for review; or liens incurred by the Company or any Restricted
Subsidiary for the purpose of obtaining a stay or discharge in the course of
any litigation or other proceeding to which the Company or such Restricted
Subsidiary is a party; or

 

(viii)        liens for taxes or assessments or governmental
charges or levies not yet due or delinquent, or which can thereafter be paid
without penalty, or which are being contested in good faith by appropriate
proceedings; landlord’s liens on property held under lease; and any other liens
or charges incidental to the conduct of the business of the Company or any
Restricted Subsidiary or the ownership of the property and assets of any of
them which were not incurred in connection with the borrowing of money or the
obtaining of advances or credit and which do not, in the opinion of the
Company, materially impair the use of such property in the operation of the
business of the Company or such Restricted Subsidiary or the value of such
property for the purposes of such business; or

 

(ix)           liens not listed in clauses (i) through
(viii) above securing indebtedness for borrowed money of the Company and
its Restricted Subsidiaries in an aggregate principal amount not to exceed
12.5% of the Consolidated Net Tangible Assets of the Company as shown on the
audited consolidated financial statements of the Company as of the end of the
fiscal year preceding the date of determination.

 

62

 

(c)           For the purposes of this Section 10.06
only, “Consolidated Net Tangible Assets”
means the total amount of assets (less depreciation and valuation reserves and
other reserves and items deductible from the gross book value of specific asset
amounts under generally accepted accounting principles) which under generally
accepted accounting principles would be included on a balance sheet of the
Company and its Restricted Subsidiaries, after deducting therefrom (i) all
liability items except indebtedness (whether incurred, assumed or guaranteed)
for borrowed money maturing by its terms more than one year from the date of
creation thereof or which is extendible or renewable at the sole option of the
obligor in such manner that it may become payable more than one year from the
date of creation thereof, shareholder’s equity and reserves for deferred income
taxes, (ii) all goodwill, trade names, trademarks, patents, unamortized
debt discount and expense and other like intangibles, which in each case would
be so included on such balance sheet, and (iii) amounts invested in, or
equity in the net assets of, Non-Restricted Subsidiaries.

 

Section 10.07.  Restrictions
on the Payment of Dividends.

 

No dividend whatsoever
shall be paid or declared nor shall any distributions be made on any capital
stock of the Company (except in shares of, or warrants or rights to subscribe
for or purchase shares of, capital stock of the Company), nor shall any payment
be made by the Company or any Restricted Subsidiary to acquire or retire shares
of such stock, at a time when an Event of Default as defined in clauses (a),
(b), (c), (e), (f) or (g) of Section 5.01 has occurred and is
continuing.

 

Section 10.08.  Restrictions on Permitting Restricted
Subsidiaries to Become Non-Restricted Subsidiaries and Non-Restricted
Subsidiaries to Become Restricted Subsidiaries.

 

(a)           The Company will not permit any Restricted
Subsidiary to be designated as or otherwise to become a Non-Restricted
Subsidiary unless immediately after such Restricted Subsidiary becomes a
Non-Restricted Subsidiary, it will not own, directly or indirectly, any capital
stock or indebtedness of any Restricted Subsidiary.

 

(b)           The Company will not permit any Non-Restricted
Subsidiary to be designated as or otherwise to become a Restricted Subsidiary
unless:

 

(i)            such Non-Restricted Subsidiary is not a
Subsidiary substantially all of the physical properties of which are located,
or substantially all of the business of which is carried on, outside the United
States of America, its territories and possessions and Puerto Rico; and

 

(ii)           immediately thereafter such Subsidiary has outstanding
no mortgages in respect of any of its assets except as would have been
permitted by Section 10.06 had such mortgages been incurred immediately
thereafter.

 

(c)           Promptly after the adoption of any resolution by
the Board of Directors designating a Restricted Subsidiary as a Non-Restricted
Subsidiary or a Non-Restricted Subsidiary as a Restricted Subsidiary, a copy
thereof certified by the Secretary or an Assistant Secretary of the Company
shall be filed with the Trustee, together with an Officers’ Certificate

 

63

 

stating
that the provisions of this Section 10.08 have been complied with in
connection with such designation.

 

Section 10.09.  Restriction on Investments in
Non-Restricted Subsidiaries.

 

The Company will not, nor
will it permit any Restricted Subsidiary to, make any investment in, or
transfer any assets to, a Non-Restricted Subsidiary if immediately thereafter
the Company would be in breach of or in default in the performance of any
covenant or warranty of the Company contained in this Indenture.

 

Section 10.10.  Statement
by Officers as to Default.

 

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

 

Section 10.11.  Waiver of
Certain Covenants.

 

The Company may omit in any
particular instance to comply with any term, provision or condition set forth in
Sections 10.04 to 10.09, inclusive, with respect to the Securities of any
series if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series
shall, by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, provision or condition, but no such
waiver shall extend to or affect such term, provision or condition except to
the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company in respect of any such term, provision or
condition shall remain in full force and effect.

 

The Company may, but shall
not be obligated to, fix a record date for the purpose of determining the
Persons entitled to waive compliance with any term, provision or condition
referred to in the immediately preceding paragraph.  If a record date is fixed, the Holders on
such record date, or their duly designated proxies, and only such Persons,
shall be entitled to waive, compliance with any such term, provision or
condition, whether or not such Holders remain Holders after such record date; provided  that,
unless such requisite percentage in principal amount shall have been obtained
prior to the date which is 90 days after such record date, any such waiver
previously given shall automatically and without further action by any Holder
be cancelled and of no further effect.

 

64

 

ARTICLE XI

 

REDEMPTION OF SECURITIES

 

Section 11.01.  Applicability
of Article.

 

Securities
of any series issued hereunder may be redeemed at the option of the Company, at
anytime, in whole or from time to time in part, in accordance with the terms of
this Article 11.

 

Section 11.02.  Election
to Redeem; Notice to Trustee.

 

The election of the Company
to redeem any Securities shall be evidenced by a Board Resolution.  In case of any redemption at the election of
the Company of less than all the Securities of any series, the Company shall,
at least 60 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date, of the tenor, if applicable, of the Securities to be
redeemed, and of the principal amount of Securities of such series to be
redeemed.  In the case of any redemption
of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers’ Certificate evidencing
compliance with such restriction.

 

Section 11.03.  Selection
by Security Registrar of Securities to Be Redeemed.

 

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

 

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

 

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

 

Section 11.04.  Notice of
Redemption.

 

Notice of redemption shall
be given by first-class mail, postage prepaid, mailed not less than 30 nor more
than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, at his or her address appearing in the Security Register.

 

65

 

All notices of redemption
shall state:

 

(a)           the Redemption Date,

 

(b)           the Redemption Price,

 

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

 

(d)           the CUSIP numbers of the Securities to be
redeemed,

 

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

 

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

 

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

 

Notice of redemption of
Securities to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s request, by the Security Registrar in the name and
at the expense of the Company; provided, however, that the Company shall provide the
Security Registrar, in writing, with the information listed above at least five
(5) business days prior to the requested date of the giving of the notice
for purposes of sending such notice.

 

Section 11.05.  Deposit of
Redemption Price.

 

Prior to any Redemption
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.03) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on, all the Securities which are to be redeemed
on that date.

 

Section 11.06.  Securities
Payable on Redemption Date.

 

Notice of redemption having
been given as aforesaid, the Securities or portion thereof so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. 
Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest to the Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 3.01 for Securities of any series, installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 3.07.

 

66

 

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

 

Section 11.07.  Securities
Redeemed in Part.

 

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

 

ARTICLE XII

 

SINKING FUNDS

 

Section 12.01.  Applicability
of Article.

 

The provisions of this Article shall
be applicable to any sinking fund for the retirement of Securities of a series
except as otherwise specified as contemplated by Section 3.01 for
Securities of such series.  The minimum
amount of any sinking fund payment provided for by the terms of Securities of
any series is herein referred to as a “mandatory sinking fund payment,” and any
payment in excess of such minimum amount provided for by the terms of
Securities of any series is herein referred to as an “optional sinking fund
payment.” If provided for by the terms of Securities of any series, the cash
amount of any sinking fund payment may be subject to reduction as provided in
Section 12.02.  Each sinking fund
payment shall be applied to the redemption of Securities of any series as provided
for by the terms of Securities of such series.

 

Section 12.02.  Satisfaction
of Sinking Fund Payments with Securities.

 

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

 

67

 

Section 12.03.  Redemption
of Securities for Sinking Fund.

 

Not less than 60 days prior
to each sinking fund payment date for any series of Securities, the Company
will deliver to the Security Registrar an Officers’ Certificate specifying the
amount of the next ensuing sinking fund payment for that series pursuant to the
terms of that series, the portion thereof, if any, which is to be satisfied by
payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to
Section 12.02 and will also deliver to the Security Registrar any
Securities to be so delivered.  Not less
than 30 days before each such sinking fund payment date the Security Registrar
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 11.03 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 11.04. 
Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 11.06 and
11.07.

 

ARTICLE XIII

 

DEFEASANCE AND COVENANT DEFEASANCE

 

Section 13.01.  Applicability
of Article; Company’s Option to Effect Defeasance or Covenant Defeasance.

 

Unless otherwise provided
pursuant to Section 3.01, this Article 13 shall be applicable to the
Securities of such series, and the Company may at its option by Board
Resolution, at any time, with respect to the Securities of such series, elect
to have either Section 13.02 (if applicable) or Section 13.03 (if
applicable) be applied to the Outstanding Securities of such series upon
compliance with the conditions set forth below in this Article 13.

 

Section 13.02.  Defeasance
and Discharge.

 

Upon the Company’s exercise
of the above option applicable to this Section, the Company shall be deemed to
have been discharged from its obligations with respect to the Outstanding
Securities of such series (including any Guaranteed Obligations in respect
thereof) on and after the date the conditions precedent set forth below are
satisfied but subject to satisfaction of the conditions subsequent set forth
below (hereinafter, “defeasance”).  For this purpose, such defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Securities of such series (including any
Guaranteed Obligations in respect thereof) and to have satisfied all its other
obligations under such Securities (including any Guaranteed Obligations in
respect thereof) and this Indenture and the Mortgage insofar as such Securities
are concerned (and the Trustee, at the expense of the Company, shall execute
instruments provided by the Company and acceptable to the Trustee acknowledging
the same), except for the following which shall survive until otherwise
terminated or discharged hereunder: (A) the rights of Holders of
Outstanding Securities of such series to receive, solely from the trust fund
described in Section 13.04 and as more fully set forth in such Section,
payments of the principal of (and premium, if any) and interest on such
Securities when such payments are due, (B) the Company’s obligations with
respect to such Securities under Sections 3.04, 3.05, 3.06, 10.02 and 10.03 and
such obligations as shall be

 

68

 

ancillary thereto, (C) the
rights, powers, trusts, duties, immunities and other provisions in respect of
the Trustee, the Paying Agent, the Security Registrar and the Authentication
Agent hereunder and (D) this Article 13.  Subject to compliance with this Article 13,
the Company may exercise its option under this Section 13.02
notwithstanding the prior exercise of its option under Section 13.03 with
respect to the Securities of such series. 
Following a defeasance, payment of the Securities of such series may not
be accelerated because of an Event of Default.

 

Section 13.03.  Covenant
Defeasance.

 

Upon the Company’s exercise
of the above option applicable to this Section, the Company shall be released
from its obligations under Sections 10.04 through 10.09 (and any other Sections
applicable to such Securities (including any Guaranteed Obligations in respect
thereof) that are determined pursuant to Section 3.01 to be subject to
this provision) and the occurrence of an Event of Default specified in Section 5.01(c) (insofar
as it is with respect to Sections 10.04 through 10.09 or any other Section applicable
to such Securities that are determined pursuant to Section 3.01 to be
subject to this provision) or Sections 5.01(d) or (e) shall be deemed
not to be an Event of Default with respect to the Outstanding Securities of
such series (including any Guaranteed Obligations in respect thereof) on and
after the date the conditions precedent set forth below are satisfied but
subject to satisfaction of the conditions subsequent set forth below (hereinafter,
“covenant defeasance”).  For this purpose, such covenant defeasance
means that, with respect to the Outstanding Securities of such series
(including any Guaranteed Obligations in respect thereof), the Company may omit
to comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such Section, whether directly or indirectly by
reason of any reference elsewhere herein to any such Section or by reason
of any reference in any such Section to any other provision herein or in
any other document, but the remainder of this Indenture and such Securities
shall be unaffected thereby.  Following a
covenant defeasance, payment of the Securities of such series (including any
Guaranteed Obligations in respect thereof) may not be accelerated because of an
Event of Default specified in Sections 5.01(d) or (e) or by reference
to such other Section specified above in this Section 13.03.

 

Section 13.04.  Conditions
to Defeasance or Covenant Defeasance.

 

The following shall be the
conditions precedent or, as specifically noted below, subsequent to application
of either Section 13.02 or Section 13.03 to the Outstanding
Securities of such series:

 

(a)           the Company shall irrevocably have deposited or
caused to be deposited with the Trustee (or another trustee satisfying the
requirements of Section 6.09 who shall agree to comply with the provisions
of this Article 13 applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities,
(A) money in an amount, or (B) U.S. Government Obligations which
through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day before the due
date of any payment, money in an amount, or (C) a combination thereof,
sufficient, without reinvestment, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge, and

 

69

 

which
shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge, (i) the principal of (and premium, if any) and interest on the
Outstanding Securities of such series to maturity or redemption, as the case
may be, and (ii) any mandatory sinking fund payments or analogous payments
applicable to the Outstanding Securities of such series on the due dates thereof.  Before such a deposit the Company may make
arrangements satisfactory to the Trustee for the redemption of Securities at a
future date or dates in accordance with Article 11, which shall be given
effect in applying the foregoing.  For
this purpose, “U.S. Government Obligations”
means securities that are (x) direct obligations of the United States of
America for the payment of which its full faith and credit is pledged or
(y) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America the payment of which
is unconditionally guaranteed as a full faith and credit obligation by the
United States of America, which, in either case, are not callable or redeemable
at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act of 1933, as amended) as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or interest on any
such U.S. Government Obligation held by such custodian for the account of the
holder of such depository receipt, provided
that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of principal of or interest on the U.S. Government Obligation evidenced by such
depository receipt.

 

(b)           No Event of Default or event which with notice
or lapse of time or both would become an Event of Default with respect to the
Securities of such series shall have occurred and be continuing (A) on the
date of such deposit or (B) insofar as subsections 5.01(f) and (g) are
concerned, at any time during the period ending on the 123rd day after the date
of such deposit or, if longer, ending on the day following the expiration of
the longest preference period applicable to the Company in respect of such
deposit (it being understood that the condition in this clause (B) is a
condition subsequent and shall not be deemed satisfied until the expiration of
such period).

 

(c)           Such defeasance or covenant defeasance shall not
(A) cause the Trustee for the Securities of such series to have a
conflicting interest as defined in Section 6.08 or for purposes of the
Trust Indenture Act with respect to any securities of the Company or (B) result
in the trust arising from such deposit to constitute, unless it is qualified
as, a regulated investment company under the Investment Company Act of 1940, as
amended.

 

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

 

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

 

(f)            In the case of an election under Section 13.02,
the Company shall have delivered to the Trustee an Opinion of Counsel stating
that (x) the Company has received from,

 

70

 

or
there has been published by, the Internal Revenue Service a direct ruling, or
(y) since the date of this Indenture there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such opinion shall confirm that, the Holders of the Outstanding
Securities of such series will not recognize income, gain or loss for Federal
income tax purposes as a result of such defeasance and will be subject to
Federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such defeasance had not occurred.

 

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

 

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

 

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

 

Section 13.05.  Deposited
Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to the provisions
of the last paragraph of Section 10.03, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or
Paying Agent (or other qualifying trustee — collectively, for purposes of this
Section 13.05, the “Trustee”)
pursuant to Section 13.04 in respect of the Outstanding Securities of such
series shall be held in trust and applied by the Trustee, in accordance with
the provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (but not including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal
(and premium, if any) and interest, but such money need not be segregated from
other funds except to the extent required by law.

 

The Company shall pay and
indemnify the Trustee and the Paying Agent against any tax, fee or other charge
imposed on or assessed against the money or U.S. Government Obligations
deposited pursuant to Section 13.04 or the principal and interest received
in respect thereof.

 

Anything herein to the
contrary notwithstanding, the Trustee shall deliver or pay to the Company from
time to time upon Company Request any money or U.S. Government Obligations held
by it as provided in Section 13.04 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the

 

71

 

Trustee, are in excess of
the amount thereof which would then be required to be deposited to effect an
equivalent defeasance or covenant defeasance.

 

Anything herein to the
contrary notwithstanding, if and to the extent the deposited money or U.S.
Government Obligations (or the proceeds thereof) either (i) cannot be
applied by the Trustee in accordance with this Section because of a court
order or (ii) are for any reason insufficient in amount, then the
Company’s obligations to pay principal of (and premium, if any) and interest on
the Securities of such series shall be reinstated to the extent necessary to
cover the deficiency on any due date for payment.  In any case specified in clause (i), the
Company’s interest in the deposited money and U.S. Government Obligations (and
proceeds thereof) shall be reinstated to the extent the Company’s payment
obligations are reinstated.

 

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

 

Section 13.06.  Knowledge of Trustee.

 

Notwithstanding the
provisions of this Article or any other provisions of this Indenture,
neither the Trustee nor the Paying Agent shall be charged with knowledge of the
existence of any facts that would prohibit the making of any payment of moneys
to or by the Trustee or the Paying Agent, or the taking of any other action by
the Trustee or the Paying Agent, unless and until a Responsible Officer of the
Trustee or the Paying Agent has actual knowledge or unless same shall have
received written notice thereof mailed or delivered to the Trustee at its
Corporate Trust Office or the Paying Agent, and such notice clearly references
the Securities, the Company or this Indenture, from the Company or any Holder; provided  that
if at least three 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 the principal or interest on any Security) the
Trustee or the Paying Agent shall not have received with respect to such moneys
the notice provided for in this Section, 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 that may be
received by it within three Business Days prior to or on or after such date.

 

ARTICLE XIV

 

SECURITY ARRANGEMENTS

 

Section 14.01.  Security.

 

(a)           In
order to secure the obligations of the Company under this Indenture and the
Securities, the Company will execute and deliver to the Security Trustee on or
prior to the original issue date of the Securities each Security Document to
which it is or is to be a party that is intended to be effective upon the
original issue date of the Securities and create the Liens intended to be
created thereunder, with the priority set forth therein on the Collateral.  In order to secure the obligations of each
Guarantor Party under its Guaranteed Obligations, this Indenture and

 

72

 

the Securities, each Guarantor Party will execute and deliver to the Security
Trustee on or prior to the original issue date of the Securities each Security
Document to which it is or is to be a party that is intended to be effective
upon the original issue date of the Securities and create the Liens intended to
be created thereunder, with the priority set forth therein on the Collateral.

 

(b)           The
Company and the Guarantor Parties shall
comply with all covenants and agreements contained in the Security Documents.

 

(c)           Each
Holder, by accepting a Security, agrees to all of the terms and provisions of
the Security Documents, as the same may be amended from time to time pursuant
to the provisions of this Indenture and the Security Documents.

 

(d)           As
among the Holders, the Collateral as now or hereafter constituted shall be held
for the equal and ratable benefit of the Holders without preference, priority
or distinction of any thereof over any other by reason of differences in time of issuance, sale
or otherwise, as security for the obligations under this Indenture, the
Securities and the Guaranteed Obligations.

 

(e)           The
Company will comply with Section 314(b) of the Trust Indenture Act,
relating to annual opinions as to the validity of the Liens securing the
Securities and the Guaranteed Obligations, but unless otherwise required by the
terms of the Trust Indenture Act, shall not be subject to
Section 314(d) of the
Trust Indenture Act, relating to the delivery of certain certificates and
reports in connection with the release of property and to the substitution
therefor of any property to be pledged as Collateral for the Securities and the
Guaranteed Obligations; provided that
the requirements of this sentence shall not apply unless and until there are
Unrestricted Definitive Securities Outstanding.

 

(f)            The
Company has agreed to grant to the Security Trustee a first-rank French law
mortgage over the Pool Aircraft registered in France and to register such
mortgage with the civil aviation registry maintained by the Direction Générale de l’Aviation Civile in France.  The Secured
Parties agree that as of the date hereof, in accordance with
Article 2328-1 of the French Civil Code, that the Security Trustee shall
have the right to constitute, register, manage and enforce the French law
mortgage over the French registered Aircraft for the account of the Secured
Parties.

 

Section 14.02.  Authorization of Actions to Be Taken.

 

Each Holder of a Security, by its
acceptance thereof, is deemed to have authorized, directed and empowered the
Security Trustee to enter into the Security Documents, as Security Trustee, and
to receive for the benefit of the Holders of Securities any funds collected or
distributed in accordance with and under the Security Documents to which the
Security Trustee is a party and to take such actions and make such distributions
in respect of the Collateral and any proceeds therefrom, for the benefit of the
Holders of Securities and any other Secured Party, all in accordance with the
provisions of this Indenture and the Security Documents.

 

Section 14.03.  Determinations Relating to Collateral.

 

In the event (a) the Trustee
shall receive any written request from the Company, a Guarantor Party or the
Security Trustee under any Security Document for consent or approval with
respect to any matter or thing relating to any Collateral or the Company’s or
such Guarantor

 

73

 

Party’s obligations with respect
thereto, (b) there shall be due to or from the Trustee or the Security
Trustee under the provisions of any Security Document any material performance
or the delivery of any material instrument or (c) the Trustee shall
receive notice of any nonperformance by the Company or a Guarantor Party of any
covenant or any breach of any representation or warranty of the Company or such
Guarantor Party set forth in any Security Document, then, in each such event,
the Trustee shall be entitled to hire experts, consultants, agents and
attorneys to advise the Trustee on the manner in which the Trustee should
respond, or direct the Security Trustee to respond, to such request or render
any requested performance or respond, or direct the Security Trustee to
respond, to such nonperformance or breach; provided
that the Trustee’s right to direct the Security Trustee to respond shall be
subject to the terms of the Security Documents. 
The Trustee shall be fully protected in the taking of any action
recommended or approved by any such expert, consultant, agent or attorney or
agreed to by the Holders of a majority in principal amount of the outstanding
Securities.

 

Section 14.04.  Release of Liens.

 

The Liens on the Collateral securing the
Securities will be released in accordance with the terms of the Mortgage and
the Security Documents.  The Company will
bear and pay all reasonable costs and expenses associated with any release of
Liens pursuant to this Section 14.04, including all reasonable fees and
disbursements of any attorneys or representatives acting for the Trustee or for
the Security Trustee.

 

Section 14.05.  Limitation on Duty of Trustee in Respect
of Collateral.

 

(a)           Beyond the exercise of reasonable
care in the custody thereof, the Trustee shall have no duty as to any
Collateral in its possession or control or in the possession or control of any
agent or bailee or any income thereon or as to preservation of rights against
prior parties or any other rights pertaining thereto and neither the Trustee
shall not be responsible for filing any financing or continuation statements or
recording any documents or instruments in any public office at any time or times
or otherwise perfecting or maintaining the perfection of any security interest
in the Collateral.  The Trustee shall be
deemed to have exercised reasonable care in the custody of the Collateral in
its possession if the Collateral is accorded treatment substantially equal to
that which it accords its own property and shall not be liable or responsible
for any loss or diminution in the value of any of the Collateral, by reason of
the act or omission of any carrier, forwarding agency or other agent or bailee selected
by the Trustee in good faith.

 

(b)           The Trustee shall not be responsible
for the existence, genuineness or value of any of the Collateral or for the
validity, perfection, priority or enforceability of the Liens on any of the
Collateral, whether impaired by operation of law or by reason of any action or
omission to act on its part hereunder, except to the extent such action or
omission constitutes gross negligence or willful misconduct on the part of the
Trustee for the validity or sufficiency of the Collateral or any agreement or
assignment contained therein, for the validity of the title of the Company or
the Guarantor Parties to the Collateral, for insuring the Collateral or for the
payment of taxes, charges, assessments or Liens upon the Collateral or
otherwise as to the maintenance of the Collateral.  The Trustee shall have no duty to ascertain
or inquire as to the performance or observance of any of the terms of this
Indenture or any of the Security Documents.

 

74

 

ARTICLE XV

 

GUARANTEES

 

Section 15.01.  Guaranteed Obligations.

 

In accordance with and
subject to the terms of Article 8 of the Mortgage, each of the Guarantor
Parties hereby, jointly and severally, irrevocably and unconditionally guarantees,
on a senior basis, to each Holder and to the Trustee and its successors and
assigns, irrespective of the validity and enforceability of this Indenture, the
Securities or the obligations of the Company hereunder or thereunder, the
Guaranteed Obligations.

 

Section 15.02.  Limitation on Guarantor Party Liability.

 

Each Guarantor Party, and by its
acceptance of Securities, each Holder, hereby confirms that it is the intention
of all such parties that the Guaranteed Obligation of such Guarantor Party not
constitute a fraudulent transfer or conveyance for purposes of Federal
Bankruptcy Act, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar U.S. federal or state law to the extent applicable
to any Guaranteed Obligation, and each of such parties agrees to be fully bound
by the terms of Article 8 of the Mortgage, as such terms may from time to
time be modified, amended or changed in accordance with the terms hereof and
thereof.  In addition, the provisions in
the Mortgage and Security Documents limiting the Guarantor Parties Guaranteed
Obligations are hereby incorporated in full by reference. Provisions relating
to limitation on Guarantor Party liability and limitations on the Guaranteed
Obligations set forth in the Mortgage and Security Documents are hereby
incorporated in and expressly made a part of this Indenture.

 

Section 15.03.  Execution and Delivery.

 

(a)           To evidence its Guaranteed
Obligations set forth in Section 15.01 and the Mortgage, each Guarantor
Party hereby agrees that this Indenture shall be executed on behalf of such
Guarantor Party by an Officer or person holding an equivalent title.  Any documents executed to evidence the
Guaranteed Obligations, or their release as permitted herein or in the Mortgage
or Security Documents, may be executed by the Trustee without any necessary
consent or action by the Trustee or Holders.

 

(b)           Each Guarantor Party hereby agrees
that its Guaranteed Obligations set forth in Section 15.01 shall remain in
full force and effect notwithstanding the absence of the endorsement of any
notation of such Guaranteed Obligations on the Securities.

 

(c)           If an Officer whose signature is on
this Indenture no longer holds that office at the time the Trustee
authenticates any Security, the Guaranteed Obligations shall be valid
nevertheless.

 

(d)           The delivery of any Security by the
Trustee, after the authentication thereof hereunder, shall constitute due
delivery of the Guaranteed Obligations set forth in this Indenture and the
Mortgage on behalf of the Guarantor Parties.

 

75

 

(e)           The Company shall cause any newly
created or acquired Restricted Subsidiary that Owns any property that
constitutes Collateral to comply with the provisions of this Article 15
and Article 8 of the Mortgage, to the extent applicable.

 

Section 15.04.  Release of Guarantor Parties.

 

The Guaranteed Obligations
will be released in accordance with the terms of the Mortgage and the Security
Documents.  The Company will bear and pay
all reasonable costs and expenses associated with any release of the Guaranteed
Obligations pursuant to this Section 15.04, including all reasonable fees
and disbursements of any attorneys or representatives acting for the Trustee or
for the Security Trustee.

 

76

 

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

 

	
   

  	
  INTERNATIONAL LEASE
  FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick S. Cromer

  
	
   

  	
   

  	
  Name: Frederick S. Cromer

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Pamela S. Hendry

  
	
   

  	
   

  	
  Name: Pamela S. Hendry

  
	
   

  	
   

  	
  Title: Senior Vice
  President & Treasurer

  

 

Indenture

 

 

	
   

  	
  SIGNED AND DELIVERED AS A
  DEED

  
	
   

  	
   

  
	
   

  	
  for and on behalf of

  
	
   

  	
   

  
	
   

  	
  ILFC IRELAND LIMITED

  
	
   

  	
   

  
	
   

  	
  by its duly appointed
  attorney:

  
	
   

  	
   

  
	
   

  	
  /s/
  Niall C. Sommerville

  
	
   

  	
  Name: Niall C.
  Sommerville

  
	
   

  	
  Title: Attorney 

  
	
   

  	
   

  
	
   

  	
  in the presence of:

  
	
   

  	
   

  
	
   

  	
  /s/
  Ann Byrne

  
	
   

  	
  Name: Ann Byrne

  
	
   

  	
  Occupation: Administrator

  
	
   

  	
  Address: ILFC Ireland
  Limited

  30 North Wall Quay

  Dublin 1

  

 

Indenture

 

 

	
   

  	
  ILFC (BERMUDA)
  III, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Pamela S. Hendry

  
	
   

  	
  Name:

  	
  Pamela
  S. Hendry

  
	
   

  	
  Title:

  	
  Director

  

 

Indenture

 

 

	
   

  	
  THE BANK OF NEW YORK
  MELLON,

  
	
   

  	
  TRUST COMPANY, N.A.,

  
	
   

  	
  as Trustee, Paying Agent,
  Security Registrar and Authentication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Teresa Petta

  
	
   

  	
   

  	
  Name: Teresa Petta

  
	
   

  	
   

  	
  Title: Vice President 

  

 

Indenture

 

 

APPENDIX
A

 

PROVISIONS
RELATING TO INITIAL SECURITIES, EXCHANGE SECURITIES AND ANY OTHER ADDITIONAL
SECURITIES THAT ARE 2014 NOTES, 2016 NOTES OR 2018 NOTES

 

The following provisions
shall apply to Initial Securities, Exchange Securities and any other Additional
Securities that are 2014 Notes, 2016 Notes or 2018 Notes:

 

1.                                       Definitions.

 

1.1                                 Definitions.

 

For the purposes of this
Appendix A the following terms shall have the meanings indicated below:

 

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

 

“Definitive Security” means a certificated Initial Security or
Exchange Security (bearing the Restricted Securities Legend if the transfer of
such Security is restricted by applicable law) that does not include the Global
Securities Legend.

 

“Depositary” means, with respect to the Securities, The
Depository Trust Company, its nominees and their respective successors.

 

“Euroclear” means the Euroclear Clearance System or any
successor securities clearing agency.

 

“Exchange Offer” means the offer by the Company, pursuant to
the Registration Agreement, to certain Holders of Initial Securities, to issue
and deliver to such Holders, in exchange for their Initial Securities, a like
aggregate principal amount of Exchange Securities registered under the
Securities Act.

 

“Global Securities Legend” means the legend set forth under
that caption in the applicable Exhibit to this Indenture.

 

“Initial Purchasers” means Banc of America Securities LLC,
Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Credit Suisse
Securities (USA) LLC, UBS Securities LLC, Barclays Capital Inc., BNP Paribas
Securities Corp., Deutsche Bank Securities, Inc., Wells Fargo Securities,
LLC, and Goldman, Sachs & Co., each party to the Purchase Agreement
entered into in connection with the offer and sale of the Securities.

 

“Initial Securities” means the Original Securities and any
Additional Securities that are 2014 Notes, 2016 Notes or 2018 Notes that are
Transfer Restricted Securities.

 

“Purchase Agreement” means the Purchase Agreement dated as of
August 11, 2010, among the Company and the Representatives on behalf of
the several Initial Purchasers.

 

1

 

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

 

“Registration Agreement” means (a) the Registration Rights
Agreement and (b) any other similar registration rights agreement relating
to Additional Securities.

 

“Registration Default” has the meaning set forth in the
Registration Agreement.

 

“Registration Rights Agreement” means the Registration Rights
Agreement dated as of August 20, 2010 among the Company and the
Representatives on behalf of the several Initial Purchasers relating to the
Securities.

 

“Regulation S” means Regulation S under the Securities Act.

 

“Regulation S Securities” means all Initial Securities offered
and sold outside the United States in reliance on Regulation S.

 

“Representatives” means Banc of America Securities LLC,
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., acting on behalf
of the several Initial Purchasers.

 

“Restricted Period,”
with respect to any Securities, means the period of 40 consecutive days
beginning on and including the later of (a) the day on which such
Securities are first offered to persons other than distributors (as defined in
Regulation S under the Securities Act) in reliance on Regulation S, notice of
which day shall be promptly given by the Company to the Trustee, and (b) the
Issue Date, and with respect to any Additional Securities that are Transfer
Restricted Securities, it means the comparable period of 40 consecutive days.

 

“Restricted Securities Legend” means the legend set forth in
Section 2.2(f)(i) herein.

 

“Rule 144A” means Rule 144A under the Securities Act.

 

“Rule 144A Securities” means all Initial Securities
offered and sold to QIBs in reliance on Rule 144A.

 

“Securities Custodian” means the custodian with respect to a
Global Security (as appointed by the Depositary) or any successor person
thereto, who shall initially be the Trustee.

 

“Shelf Registration Statement” means a registration statement
filed by the Company in connection with the offer and sale of Initial
Securities pursuant to the Registration Agreement.

 

“Transfer Restricted Definitive Securities” means Definitive
Securities that bear or are required to bear or are subject to the Restricted
Securities Legend.

 

“Transfer Restricted Global Securities” means Global Securities
bearing the Restricted Securities Legend.

 

“Transfer Restricted Securities” means Transfer Restricted
Definitive Securities and Transfer Restricted Global Securities.

 

2

 

“Unrestricted Definitive Security” means Definitive Securities
and any other Securities that are not required to bear, or are not subject to,
the Restricted Securities Legend.

 

“Unrestricted Global Security” means a Global Security that
does not bear the Restricted Securities Legend.

 

1.2                                 Other Definitions.

 

	
  Term:

  	
   

  	
  Defined
  in Section:

  
	
  “Agent Members”

  	
   

  	
  2.1(b)

  
	
  “Regulation S Global Securities”

  	
   

  	
  2.1(b)

  
	
  “Rule 144A Global Securities”

  	
   

  	
  2.1(b)

  

 

2.                                       The Securities.

 

2.1                                 Form and Dating; Global Securities.

 

(a)                                  The Original Securities will be (i) offered
and sold by the Company pursuant to the Purchase Agreement and (ii) resold
initially only to (1) QIBs in reliance on Rule 144A and
(2) Persons other than U.S. Persons (as defined in Regulation S) in
reliance on Regulation S.  Such Original
Securities may thereafter be transferred to, among others, QIBs and purchasers
in reliance on Regulation S.

 

(b)                                 Global Securities.

 

(i)                                     Rule 144A Securities initially shall be
represented by one or more Global Securities in definitive, fully registered,
global form without interest coupons (collectively, the “Rule 144A Global Securities”).  Regulation S Securities initially shall be
represented by one or more Global Securities in fully registered, global form
without interest coupons (collectively, the “Regulation
S Global Securities”).  Such Global
Securities shall bear the Global Security Legend.  Such Global Securities initially shall
(1) be registered in the name of the Depositary or the nominee of such
Depositary, in each case for credit to an account of an Agent Member,
(2) be delivered to the Security Registrar as custodian for such
Depositary and (3) bear the Restricted Securities Legend.

 

Members
of, or direct or indirect participants in, the Depositary, Euroclear or
Clearstream (“Agent Members”)
shall have no rights under this Indenture with respect to any Global Security
held on their behalf by the Depositary or under the Global Securities.  The Depositary may be treated by the Company,
the Trustee, the Security Registrar and any agent of the Company, the Trustee
or the Security Registrar as the absolute owner of the Global Securities for
all purposes whatsoever.  Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company, the Trustee or the Security Registrar from giving effect
to any written certification, proxy or other authorization furnished by the
Depositary or impair, as between the Depositary, Euroclear or

 

3

 

Clearstream,
as the case may be, and their respective Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any
Security.

 

(ii)                                  Transfers of Global Securities shall be limited
to transfer in whole, but not in part, to the Depositary, its successors or
their respective nominees.  Interests of
beneficial owners in the Global Securities may be transferred or exchanged for
Definitive Securities only in accordance with the applicable rules and
procedures of the Depositary, Euroclear or Clearstream, as the case may be, and
the provisions of Section 2.2.  In
addition, a Global Security shall be exchangeable for Definitive Securities if
(1) the Depositary (x) notifies the Company that it is unwilling or
unable to continue as depository for such Global Security and the Company
thereupon fails to appoint a successor depository or (y) has ceased to be
a clearing agency registered under the Exchange Act, or (2) there shall
have occurred and be continuing an Event of Default with respect to such Global
Security.  In all cases, Definitive Securities
delivered in exchange for any Global Security or beneficial interests therein
shall be registered in the names, and issued in any approved denominations,
requested by or on behalf of the Depositary, in accordance with its customary
procedures.

 

(iii)                               In connection with the transfer of a Global
Security as an entirety to beneficial owners pursuant to subsection
(ii) of this Section 2.1(b), such Global Security shall be deemed to
be surrendered to the Security Registrar for cancellation, and the Company
shall execute, and the Authentication Agent shall authenticate and make
available for delivery, to each beneficial owner identified by the Depositary
in writing in exchange for its beneficial interest in such Global Security, an
equal aggregate principal amount of Definitive Securities of authorized
denominations.

 

(iv)                              Any Transfer Restricted Security delivered in
exchange for an interest in a Global Security pursuant to Section 2.2
shall, except as otherwise provided in Section 2.2, bear the Restricted Securities
Legend.

 

(v)                                 Notwithstanding the foregoing, through the
Restricted Period, a beneficial interest in such Regulation S Global Security
may be held only through Euroclear or Clearstream unless delivery is made in
accordance with the applicable provisions of Section 2.2.

 

(vi)                              The Holder of any Global Security may grant
proxies and otherwise authorize any Person, including Agent Members and Persons
that may hold interests through Agent Members, to take any action which a
Holder is entitled to take under this Indenture or the Securities.

 

4

 

2.2                                 Transfer and Exchange.

 

(a)                                  Transfer and Exchange of Global Securities.  A Global Security may not be transferred as a
whole except as set forth in Section 2.1(b).  Global Securities will not be exchanged by
the Company for Definitive Securities except under the circumstances described
in Section 2.1(b)(ii).  Global
Securities also may be exchanged or replaced, in whole or in part, as provided
in Sections 3.04 and 3.06 of this Indenture. 
Beneficial interests in a Global Security may be transferred and
exchanged as provided in Section 2.2(b) or 2.2(g).

 

(b)                                 Transfer and Exchange of Beneficial Interests in
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 rules and procedures of the Depositary.  Beneficial interests in Transfer Restricted
Global Securities shall be subject to restrictions on transfer comparable to
those set forth herein to the extent required by the Securities Act.  Transfers and exchanges 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 subparagraphs, as applicable:

 

(i)                                     Transfer of Beneficial Interests in the Same
Global Security.  Beneficial interests in
any Transfer Restricted Global Security may be transferred to Persons who take
delivery thereof in the form of a beneficial interest in the same Transfer
Restricted Global Security in accordance with the transfer restrictions set
forth in the Restricted Securities Legend; provided, however, that prior to the expiration of the
Restricted Period, transfers of beneficial interests in a Regulation S Global
Security may not be made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). 
A beneficial interest in an Unrestricted Global Security may be
transferred to Persons who take delivery thereof in the form of a beneficial
interest in an Unrestricted Global Security. 
No written orders or instructions shall be required to be delivered to
the Security Registrar to effect the transfers described in this
Section 2.2(b)(i).

 

(ii)                                  All Other Transfers and Exchanges of Beneficial
Interests in Global Securities.  In
connection with all transfers and exchanges of beneficial interests in any
Global Security that is not subject to Section 2.2(b)(i), the transferor
of such beneficial interest must deliver to the Security Registrar (1) a
written order from an Agent Member given to the Depositary in accordance with
the applicable rules and procedures of the Depositary 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 (2) instructions given in accordance with the applicable
rules and procedures of the Depositary containing information regarding
the Agent Member account to be credited with such increase; provided  that
in no event shall a beneficial interest in a Global Security be credited, or an
Unrestricted Definitive Security be issued, to a Person who is an affiliate (as
defined in Rule 144) of the Company. 
Upon satisfaction of all of the requirements for transfer

 

5

 

or exchange of beneficial interests in any Global
Security that is not subject to Section 2.2(b)(i) and the Securities
or otherwise applicable under the Securities Act, the Security Registrar shall
adjust the principal amount of the relevant Global Security pursuant to
Section 2.2(g).

 

(iii)                               Transfer of Beneficial Interests to Another
Transfer Restricted Global Security.  A
beneficial interest in a Transfer Restricted Global Security may be transferred
to a Person who takes delivery thereof in the form of a beneficial interest in
another Transfer Restricted Global Security if the transfer complies with the
requirements of Section 2.2(b)(ii) above and the Security Registrar
receives the following:

 

(A)                              if the transferee will take delivery in the form
of a beneficial interest in a Rule 144A Global Security, then the
transferor must deliver a certificate in the form attached to the applicable
Security; and

 

(B)                                if the transferee will take delivery in the form
of a beneficial interest in a Regulation S Global Security, then the transferor
must deliver a certificate in the form attached to the applicable Security.

 

(iv)                              Transfer and Exchange of Beneficial Interests in
a Transfer Restricted Global Security for Beneficial Interests in an
Unrestricted Global Security.  A
beneficial interest in a Transfer Restricted Global Security may be exchanged
by any holder thereof for a beneficial interest in an Unrestricted Global
Security or transferred to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Security if the exchange or
transfer complies with the requirements of Section 2.2(b)(ii) above
and the Security Registrar receives the following:

 

(A)                              if the holder of such beneficial interest in a
Transfer Restricted Global Security proposes to exchange such beneficial
interest for a beneficial interest in an Unrestricted Global Security, a
certificate from such holder in the form attached to the applicable Security;
or

 

(B)                                if the holder of such beneficial interest in a
Transfer Restricted Global Security proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Security, a certificate from such
holder in the form attached to the applicable Security,

 

and, in each such case, if
the Security Registrar so requests or if the applicable rules and
procedures of the Depositary, Euroclear or Clearstream, as applicable, so
require, an Opinion of Counsel in form reasonably acceptable to the Security
Registrar to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in
the Restricted Securities

 

6

 

Legend are no longer
required in order to maintain compliance with the Securities Act.  If any such transfer or exchange is effected
pursuant to this subparagraph (iv) at a time when an Unrestricted Global
Security has not yet been issued, the Company shall issue and, upon receipt of
a written order of the Company in the form of an Officers’ Certificate in accordance
with Section 2.01, the Authentication Agent shall authenticate one or more
Unrestricted Global Securities in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred or exchanged
pursuant to this subparagraph (iv).

 

(v)                                 Transfer and Exchange of Beneficial Interests in
an Unrestricted Global Security for Beneficial Interests in a Transfer
Restricted Global Security.  Beneficial
interests in an Unrestricted Global Security cannot be exchanged for, or transferred
to Persons who take delivery thereof in the form of, a beneficial interest in a
Transfer Restricted Global Security.

 

(c)                                  Transfer and Exchange of Beneficial Interests in
Global Securities for Definitive Securities. 
A beneficial interest in a Global Security may not be exchanged for a
Definitive Security except under the circumstances described in
Section 2.1(b)(ii).  A beneficial
interest in a Global Security may not be transferred to a Person who takes
delivery thereof in the form of a Definitive Security except under the
circumstances described in Section 2.1(b)(ii).

 

(d)                                 Transfer and Exchange of Definitive Securities
for Beneficial Interests in Global Securities. 
Transfers and exchanges of Definitive Securities for beneficial
interests in Global Securities shall require compliance with either
subparagraph (i), (ii) or (iii) below, as applicable:

 

(i)                                     Transfer Restricted Definitive Securities to
Beneficial Interests in Transfer Restricted Global Securities.  If any Holder of a Transfer Restricted
Definitive Security proposes to exchange such Transfer Restricted Definitive
Security for a beneficial interest in a Transfer Restricted Global Security or
to transfer such Transfer Restricted Security to a Person who takes delivery
thereof in the form of a beneficial interest in a Transfer Restricted Global
Security, then, upon receipt by the Security Registrar of the following
documentation:

 

(A)                              if the Holder of such Transfer Restricted
Definitive Security proposes to exchange such Transfer Restricted Definitive
Security for a beneficial interest in a Transfer Restricted Global Security, a
certificate from such Holder in the form attached to the applicable Security;

 

(B)                                if such Transfer Restricted Definitive Security
is being transferred to a QIB in accordance with Rule 144A under the
Securities Act, a certificate from such Holder in the form attached to the
applicable Security;

 

7

 

(C)                                if such Transfer Restricted Security is being
transferred to a Non-U.S. Person in an offshore transaction in accordance with
Rule 903 or Rule 904 under the Securities Act, a certificate from
such Holder in the form attached to the applicable Security;

 

(D)                               if such Transfer Restricted Definitive Security
is being transferred pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144 under the
Securities Act, a certificate from such Holder in the form attached to the
applicable Security; or

 

(E)                                 if such Transfer Restricted Definitive Security
is being transferred to the Company or a Subsidiary thereof, a certificate from
such Holder in the form attached to the applicable Security;

 

the Security Registrar
shall cancel the Transfer Restricted Definitive Security, and increase or cause
to be increased the aggregate principal amount of the appropriate Transfer
Restricted Global Security.

 

(ii)                                  Transfer Restricted Definitive Securities to
Beneficial Interests in Unrestricted Global Securities.  A Holder of a Transfer Restricted Definitive
Security may exchange such Transfer Restricted Definitive Security for a
beneficial interest in an Unrestricted Global Security or transfer such
Transfer Restricted Definitive Security to a Person who takes delivery thereof
in the form of a beneficial interest in an Unrestricted Global Security only if
the Security Registrar receives the following:

 

(A)                              if the Holder of such Transfer Restricted
Definitive Security proposes to exchange such Transfer Restricted Definitive
Security for a beneficial interest in an Unrestricted Global Security, a
certificate from such Holder in the form attached to the applicable Security;
or

 

(B)                                if the Holder of such Transfer Restricted
Definitive Security proposes to transfer such Transfer Restricted Definitive
Security to a Person who shall take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Security, a certificate from such
Holder in the form attached to the applicable Security,

 

and, in each such case, if
the Security Registrar so requests or if the applicable rules and
procedures of the Depositary, Euroclear or Clearstream, as applicable, so
require, an Opinion of Counsel in form reasonably acceptable to the Security
Registrar to the effect that such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained herein and
in the Restricted Securities Legend are no longer required in order to maintain
compliance with the Securities Act.  Upon
satisfaction of the conditions of this subparagraph

 

8

 

(ii), the Security
Registrar shall cancel the Transfer Restricted Definitive Securities and
increase or cause to be increased the aggregate principal amount of the
Unrestricted Global Security.  If any
such transfer or exchange is effected pursuant to this subparagraph
(ii) at a time when an Unrestricted Global Security has not yet been
issued, the Company shall issue and, upon receipt of a written order of the
Company in the form of an Officers’ Certificate, the Authentication Agent shall
authenticate one or more Unrestricted Global Securities in an aggregate
principal amount equal to the aggregate principal amount of Transfer Restricted
Definitive Securities transferred or exchanged pursuant to this subparagraph
(ii).

 

(iii)                               Unrestricted Definitive Securities to Beneficial
Interests in Unrestricted Global Securities. 
A Holder of an Unrestricted Definitive Security may exchange such
Unrestricted Definitive Security for a beneficial interest in an Unrestricted
Global Security or transfer such Unrestricted Definitive Security to a Person
who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Security at any time. 
Upon receipt of a request for such an exchange or transfer, the Security
Registrar shall cancel the applicable Unrestricted Definitive Security and
increase or cause to be increased the aggregate principal amount of one of the
Unrestricted Global Securities.  If any
such transfer or exchange is effected pursuant to this subparagraph
(iii) at a time when an Unrestricted Global Security has not yet been
issued, the Company shall issue and, upon receipt of a written order of the
Company in the form of an Officers’ Certificate, the Authentication Agent shall
authenticate one or more Unrestricted Global Securities in an aggregate
principal amount equal to the aggregate principal amount of Unrestricted
Definitive Securities transferred or exchanged pursuant to this subparagraph
(iii).

 

(iv)                              Unrestricted Definitive Securities to Beneficial
Interests in Transfer Restricted Global Securities.  An Unrestricted Definitive Security cannot be
exchanged for, or transferred to a Person who takes delivery thereof in the
form of, a beneficial interest in a Transfer Restricted Global Security.

 

(e)                                  Transfer and Exchange of Definitive Securities
for Definitive Securities.  Upon request
by a Holder of Definitive Securities and such Holder’s compliance with the
provisions of this Section 2.2(e), the Security Registrar shall register
the transfer or exchange of Definitive Securities.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Security
Registrar the Definitive Securities duly endorsed or accompanied by a written
instruction of transfer in form satisfactory to the Security Registrar duly
executed by such Holder or by its attorney duly authorized in writing.  In addition, the requesting Holder shall
provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this
Section 2.2(e).

 

9

 

(i)                                     Transfer Restricted Securities to Transfer
Restricted Definitive Securities.  A
Transfer Restricted Definitive Security may be transferred to and registered in
the name of a Person who takes delivery thereof in the form of a Transfer
Restricted Definitive Security if the Security Registrar receives the
following:

 

(A)                              if the transfer will be made pursuant to
Rule 144A under the Securities Act, then the transferor must deliver a
certificate in the form attached to the applicable Security;

 

(B)                                if the transfer will be made pursuant to
Rule 903 or Rule 904 under the Securities Act, then the transferor
must deliver a certificate in the form attached to the applicable Security;

 

(C)                                if the transfer will be made pursuant to an
exemption from the registration requirements of the Securities Act in
accordance with Rule 144 under the Securities Act, a certificate in the
form attached to the applicable Security; and

 

(D)                               if such transfer will be made to the Company or
a Subsidiary thereof, a certificate in the form attached to the applicable
Security.

 

(ii)                                  Transfer Restricted Definitive Securities to
Unrestricted Definitive Securities.  Any
Transfer Restricted Definitive Security may be exchanged by the Holder thereof
for an Unrestricted Definitive Security or transferred to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Security if the
Security Registrar receives the following:

 

(1)                                  if the Holder of such Transfer Restricted
Definitive Security proposes to exchange such Transfer Restricted Definitive
Security for an Unrestricted Definitive Security, a certificate from such
Holder in the form attached to the applicable Security; or

 

(2)                                  if the Holder of such Transfer Restricted
Definitive Security proposes to transfer such Security to a Person who shall
take delivery thereof in the form of an Unrestricted Definitive Security, a
certificate from such Holder in the form attached to the applicable Security,

 

and, in each such case, if
the Security Registrar so requests, an Opinion of Counsel in form reasonably
acceptable to the Company to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Restricted Securities Legend are no longer required
in order to maintain compliance with the Securities Act.

 

10

 

(iii)                               Unrestricted Definitive Securities to
Unrestricted Definitive Securities.  A
Holder of an Unrestricted Definitive Security may transfer such Unrestricted
Definitive Securities to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Security at any time. 
Upon receipt of a request to register such a transfer, the Security
Registrar shall register the Unrestricted Definitive Securities pursuant to the
instructions from the Holder thereof.

 

(iv)                              Unrestricted Definitive Securities to Transfer
Restricted Definitive Securities.  An
Unrestricted Definitive Security cannot be exchanged for, or transferred to a
Person who takes delivery thereof in the form of, a Transfer Restricted
Definitive Security.

 

(f)                                    Legend.

 

(i)                                     Except as permitted by the following paragraphs
(ii), (iii) or (iv), each Security certificate evidencing the Global
Securities and the Definitive Securities (and all Securities issued in exchange
therefor or in substitution thereof) shall bear a legend in substantially the
following form (each defined term in the legend being defined as such for
purposes of the legend only):

 

‘‘THE SECURITY (OR ITS
PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE
SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY
MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, PRIOR TO THE DATE THAT IS
IN THE CASE OF RULE 144A NOTES, ONE YEAR, AND IN THE CASE OF REGULATION S
NOTES, 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST
DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (1) (a) FOR SO
LONG AS THE NOTES ARE ELIGIBLE FOR RESALE UNDER RULE 144A, TO A PERSON WHO THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN

 

11

 

ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A UNDER THE SECURITIES ACT, (b) OUTSIDE THE UNITED STATES TO A
FOREIGN PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR RULE
904 OF REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
APPLICABLE) OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE
COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND
(B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS
SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE
AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY
EVIDENCED HEREBY.

 

Each Definitive Security
shall bear the following additional legends:

 

“IN CONNECTION WITH ANY
TRANSFER, THE HOLDER WILL DELIVER TO THE SECURITY REGISTRAR AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AS SUCH SECURITY REGISTRAR
MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.”

 

Each Security issued
hereunder that has more than a de minimis amount of original issue discount for
U.S. Federal Income Tax purposes shall bear a legend in substantially the
following form:

 

“THIS SECURITY IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ.  OF THE INTERNAL REVENUE CODE.  A HOLDER MAY OBTAIN THE ISSUE PRICE,
AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR
SUCH SECURITIES BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE
ISSUER AT THE FOLLOWING ADDRESS: INTERNATIONAL LEASE FINANCE CORPORATION, 10250
CONSTELLATION BLVD., SUITE 3400, LOS ANGELES, CALIFORNIA ATTENTION: SENIOR VICE
PRESIDENT — FINANCE.”

 

12

 

(ii)                                  Upon any sale or transfer of a Transfer
Restricted Security that is a Definitive Security, the Security Registrar shall
permit the Holder thereof to exchange such Transfer Restricted Security for a
Definitive Security that does not bear the legends set forth above and rescind
any restriction on the transfer of such Transfer Restricted Security if the
Holder certifies in writing to the Security Registrar that its request for such
exchange was made in reliance on Rule 144 (such certification to be in the
form set forth on the reverse of the Initial Security).

 

(iii)                               After a transfer of any Initial Securities
during the period of the effectiveness of a Shelf Registration Statement with
respect to such Initial Securities, all requirements pertaining to the
Restricted Securities Legend on such Initial Securities shall cease to apply
and the requirements that any such Initial Securities be issued in global form
shall continue to apply.

 

(iv)                              Upon the consummation of an Exchange Offer with
respect to the Initial Securities pursuant to which Holders of such Initial
Securities are offered Exchange Securities in exchange for their Initial
Securities, all requirements pertaining to Initial Securities that Initial
Securities be issued in global form shall continue to apply, and Exchange
Securities in global form without the Restricted Securities Legend shall be
available to Holders that exchange such Initial Securities in such Exchange
Offer.

 

(v)                                 Any Additional Securities sold in a registered
offering shall not be required to bear the Restricted Securities Legend.

 

(g)                                 Cancellation or Adjustment of Global
Security.  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 Security Registrar in accordance with
Section 3.09 of this Indenture.  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 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 Security Registrar or by the Depositary, at the
direction of the Security Registrar, 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 Security Registrar or by the
Depositary, at the direction of the Security Registrar, to reflect such
increase.

 

(h)                                 Obligations with Respect to Transfers and
Exchanges of Securities.

 

13

 

(i)            To permit registrations of transfers and
exchanges, the Company shall execute and the Authentication Agent shall
authenticate Definitive Securities and Global Securities at the Company’s
request.

 

(ii)           No service charge shall be made for any
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any transfer tax, assessments or similar governmental
charge payable in connection therewith (other than any such transfer taxes,
assessments or similar governmental charge payable upon exchanges pursuant to
Sections 9.06 or 11.07 of this Indenture).

 

(iii)          Prior to the due presentation for registration
of transfer of any Security, the Company, the Trustee, a Paying Agent or the
Security 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
payment of principal of and interest on such Security and for all other
purposes whatsoever, whether or not such Security is overdue, and none of the
Company, the Trustee, a Paying Agent or the Security Registrar shall be
affected by notice to the contrary.

 

(iv)          All Securities issued upon any transfer or
exchange pursuant to the terms of this Indenture shall evidence the same debt
and shall be entitled to the same benefits under this Indenture as the
Securities surrendered upon such transfer or exchange.

 

(v)           No Obligation of the Trustee or the Security
Registrar.

 

(i)            Neither the Trustee nor the Security Registrar
shall have any responsibility or obligation to any beneficial owner of a Global
Security, a member of, or a participant in, the Depositary or any other Person
with respect to the accuracy of the records of the Depositary or its nominee or
of any participant or member thereof, with respect to any ownership interest in
the Securities or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than the Depositary) of any notice
(including any notice of redemption or repurchase) or the payment of any
amount, under or with respect to such Securities.  All notices and communications to be given to
the Holders and all payments to be made to the Holders under the Securities
shall be given or made only to the registered Holders (which shall be the Depositary
or its nominee in the case of a Global Security).  The rights of beneficial owners in any Global
Security shall be exercised only through the Depositary subject to the
applicable rules and procedures of the Depositary.  The Trustee and the Security Registrar may
rely and shall be fully protected in relying upon information furnished by the
Depositary with respect to its members, participants and any beneficial owners.

 

(j)            Neither the Trustee nor the Security Registrar
shall have any 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 

 

14

 

of any interest in any Security (including any
transfers between or among Depositary participants, members or beneficial
owners in any Global Security) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by, the terms of this Indenture,
and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

 

(k)           Transfers of Securities Held by Affiliates.  Notwithstanding anything to the contrary in
this Section 2.2 any certificate (i) evidencing a Security that has
been transferred to an affiliate (as defined in Rule 405 of the Securities
Act) of the Company, as evidenced by a notation on the certificate of transfer
or certificate of exchange for such transfer or in the representation letter
delivered in respect thereof, or (ii) evidencing a Security that has been
acquired from an affiliate (other than by an affiliate) in a transaction or a
chain of transactions not involving any public offering, as evidenced by a
notation on the certificate of transfer or certificate of exchange for such
transfer or in the representation letter delivered in respect thereof, shall,
until one year after the last date on which either the Company or any affiliate
of the Company was an owner of such Security, in each case, be in the form of a
permanent Definitive Security and bear the Restricted Securities Legend subject
to the restrictions in this Section 2.2. 
The Security Registrar shall retain copies of all letters, notices and
other written communications received pursuant to this
Section 2.2(k).  The Company, at its
sole cost and expense, shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable advance written notice to the Security Registrar.

 

15

 

EXHIBIT A

 

[FORM OF
FACE OF INITIAL SECURITY]

 

[Global Securities
Legend]

 

UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, 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 IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS 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.

 

TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.

 

[Restricted
Securities Legend]

 

THE SECURITY (OR ITS
PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE
SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH
SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, PRIOR TO THE
DATE THAT IS IN THE CASE OF RULE 144A NOTES, ONE YEAR, AND IN THE CASE OF
REGULATION S NOTES, 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF
AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE
OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY
(1) (a) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE UNDER RULE
144A, TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED

 

1

 

INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT,
(b) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES
ACT, (c) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (d) IN ACCORDANCE
WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
(AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY
SO REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF
THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION
CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR
RESALE OF THE SECURITY EVIDENCED HEREBY.

 

Each Definitive Security
shall bear the following additional legend:

 

IN CONNECTION WITH ANY
TRANSFER, THE HOLDER WILL DELIVER TO THE SECURITY REGISTRAR SUCH CERTIFICATES
AND OTHER INFORMATION AS SUCH REGISTRAR MAY REASONABLY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

Each Security issued
hereunder that has more than a de minimis amount of original issue discount for
U.S. Federal Income Tax purposes shall bear a legend in substantially the
following form:

 

THIS SECURITY IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE
INTERNAL REVENUE CODE.  A HOLDER
MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE
DATE AND YIELD TO MATURITY FOR SUCH SECURITIES BY SUBMITTING A WRITTEN REQUEST
FOR SUCH INFORMATION TO THE ISSUER AT THE FOLLOWING ADDRESS: INTERNATIONAL
LEASE FINANCE CORPORATION, 10250 CONSTELLATION BLVD., SUITE 3400, LOS ANGELES,
CALIFORNIA ATTENTION: TREASURER.

 

2

 

[FORM OF
INITIAL SECURITY]

 

	
  No.

  	
   

  	
  $

  

 

[     ]% Senior Secured Note due 20[   ]

 

CUSIP
No. [                    ]

ISIN No. [                    ]

 

INTERNATIONAL LEASE FINANCE
CORPORATION, a California corporation, promises to pay to
[                 ],
or registered assigns, the principal sum [of          Dollars]
[listed on the Schedule of Increases or Decreases in Global Security attached
hereto](1) on [         ],
20[   ].

 

Interest Payment
Dates: [                    ] and [                    ].

 

Record Dates: [                    ] and [                    ].

 

Additional provisions of
this Security are set forth on the other side of this Security.

 

(1)   Use the Schedule of Increases and Decreases
language if Security is in Global Form.

 

3

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

	
   

  	
  INTERNATIONAL LEASE
  FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  

 

4

 

	
  CERTIFICATE OF

  
	
  AUTHENTICATION

  
	
   

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

  
	
  as
  Trustee, certifies that this is one of

  
	
  the
  Securities referred to in the Indenture.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

5

 

[FORM OF
REVERSE SIDE OF INITIAL SECURITY]

 

[     ]% Senior Secured Note due 20[   ]

 

1.                                       Interest

 

(a)                                  INTERNATIONAL LEASE FINANCE CORPORATION, a
California corporation (such corporation, and its successors and assigns under
the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the
principal amount of this Security at the rate per annum shown above.  The Company shall pay interest semiannually
on [              ]
and
[              ]
of each year, commencing
[            ,
2011].(2)  Interest on the Securities shall accrue from the most recent
date to which interest has been paid or duly provided for or, if no interest
has been paid or duly provided for, from
[          , 2010](3) 
until the principal hereof is due. 
Interest shall be computed on the basis of a 360-day year of twelve
30-day months.  The Company shall pay
interest on overdue principal at the rate borne by the Securities, and it shall
pay interest on overdue installments of interest at the same rate to the extent
lawful.

 

(b)                                 [Registration Rights Agreement.  The Holder of this Security is entitled to
the benefits of a Registration Rights Agreement, dated as of
                ,
2010, among the Company and the Representatives on behalf of the several
Initial Purchasers.](4)

 

2.                                       Method of Payment

 

The Company shall pay
interest on the Securities (except defaulted interest) to the Persons who are
registered Holders at the close of business on the
[              ]
or [              ]
next preceding the interest payment date even if Securities are canceled after
the record date and on or before the interest payment date (whether or not a
Business Day).  The Holders must
surrender Securities to a Paying Agent to collect principal payments.  The Company shall pay principal and interest
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 and interest) shall be made by the Paying Agent by wire
transfer of immediately available funds to the accounts specified by The
Depository Trust Company or any successor depositary.  The Company will make all payments in respect
of a certificated Security (including principal and interest) at the office of
each Paying Agent, except that, at the option of the Company, payment of
interest may be made by mailing a check to the registered address of each
Holder thereof; provided, however, that payments on the Securities may
also be made, in the case of a Holder of at least $1,000,000 aggregate
principal amount of Securities, by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to the Paying Agent to such
effect designating such account no later than 30 days immediately 

 

	
  (2)

  	
  Include such date with
  respect to Securities issued on the Issue Date.

  
	
  (3)

  	
  Include such date with
  respect to Securities issued on the Issue Date.

  
	
  (4)

  	
  Include with respect to
  Securities issued on the Issue Date.

  

 

6

 

preceding the relevant due
date for payment (or such other date as the Paying Agent may accept in its
discretion).

 

3.                                       Paying Agent, Security Registrar and
Authentication Agent

 

Initially, the Trustee will
act as Paying Agent, Security Registrar and Authentication Agent.  The Company may appoint and change any Paying
Agent or Security Registrar without notice. 
The Company or any of its domestically incorporated wholly owned
Subsidiaries may act as Paying Agent or Security Registrar.

 

4.                                       Indenture and Mortgage

 

The Company issued the
Securities under an Indenture dated as of August 11, 2010 (the “Indenture”), among the Company, the
Guarantor Parties named therein, and The Bank of New York Mellon Trust Company,
N.A., as Trustee, Paying Agent, Security Registrar and Authentication Agent
(the “Trustee”).  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the
date of the Indenture (the “TIA”).  Terms defined in the Indenture and not
defined herein have the meanings ascribed thereto in the Indenture.  The Securities are subject to all terms and
provisions of the Indenture and entitled to the benefits of the Aircraft
Mortgage and Security and Guaranty Agreement dated as of August 11, 2010 among
the Company, the other Grantor Parties party thereto and Wells Fargo Bank
Northwest, National Association, as Security Trustee (the “Mortgage”), and the Holders (as defined in
the Indenture) are referred to the Indenture, the TIA and the Mortgage for a
statement of such terms and provisions.

 

The Securities are senior
secured obligations of the Company.

 

5.                                       Optional Redemption

 

The Company may redeem the
Securities in whole or in part, at any time prior to maturity, at the option of
the Company, at a redemption price equal to 100% of the principal amount of the
Securities redeemed plus the Applicable Premium as of, and accrued and unpaid
interest and Additional Interest, if any, to, the applicable redemption date
(subject to the right of holders of record on the relevant Regular Record Date
to receive interest due on the relevant Interest Payment Date); provided,
however, that Collateral held for the benefit of the Holders as security for
the obligations under the Indenture, the Securities and the Guaranteed
Obligations may only be released upon redemption of the Securities in
accordance with the terms of the Mortgage.

 

6.                                       Sinking Fund

 

The Securities are not
subject to any sinking fund.

 

7.                                       Denominations; Transfer; Exchange

 

The Securities are in
registered form, without coupons, in denominations of $2,000 and any integral
multiple of $1,000 in excess thereof.  A
Holder shall register the transfer of or

 

7

 

exchange of Securities in
accordance with the Indenture.  Upon any
registration of transfer or exchange, the Security Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
or transfer documents and to pay any taxes required by law or permitted by the
Indenture.  The Security Registrar need
not register the transfer of or exchange of any Securities selected for
redemption (except, in the case of a Security to be redeemed in part, the
portion of the Security not to be redeemed) or to transfer or exchange any
Securities for a period of 15 days prior to a selection of Securities to be
redeemed.

 

8.                                       Persons Deemed Owners

 

The registered Holder of
this Security shall be treated as the owner of it for all purposes.

 

9.                                       Unclaimed Money

 

If money for the payment of
principal or interest remains unclaimed for two years, the Trustee and a Paying
Agent shall pay the money back to the Company at its written request unless an
abandoned property law designates another Person.  After any such payment, the Holders entitled
to the money must look to the Company for payment as general creditors and the
Trustee and a Paying Agent shall have no further liability with respect to such
monies.

 

10.                                 Discharge and Defeasance

 

Subject to certain
conditions, the Company at any time may terminate some of or all its
obligations under the Securities and the Indenture if the Company deposits with
the Trustee money or U.S. Government Obligations for the payment of principal
of and interest on the Securities to redemption, or maturity, as the case may
be.

 

11.                                 Amendment, Waiver

 

The Indenture, the Mortgage
and the Securities may be amended or supplemented as provided in the Indenture
and Mortgage.

 

12.                                 Defaults and Remedies

 

The Events of Default
relating to the Securities are defined in Section 5.01 of the
Indenture.  Upon the occurrence of an
Event of Default, the rights and obligations of the Company and the Holders
shall be as set forth in the Indenture.

 

13.                                 Trustee Dealings with the Company

 

Subject to certain
limitations imposed by the TIA, the Trustee under the Indenture, in its individual
or any other capacity, may become the owner or pledgee of Securities and may
otherwise deal with and collect obligations owed to it by the Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the
same rights it would have if it were not Trustee.

 

8

 

14.                                 No Recourse Against Others

 

No director, officer,
employee, incorporator or holder of any equity interests in the Company or any
direct or indirect parent corporation, as such, shall have any liability for
any obligations of the Company under the Securities, the Indenture, or the
Mortgage or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each
Holder of Securities by accepting a Security waives and releases all such
liability.

 

15.                                 Authentication

 

This Security shall not be
valid until an authorized signatory of the Trustee (or an authentication agent)
manually signs the certificate of authentication on the other side of this Security.

 

16.                                 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
rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act).

 

17.                                 Governing Law

 

THIS
SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

18.                                 CUSIP Numbers, ISINs and Common Codes

 

The Company has caused
CUSIP numbers and ISINs to be printed on the Securities and has directed the
Trustee to use CUSIP numbers and ISINs. 
No representation is made as to the accuracy of such numbers either as
printed on the Securities or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon.

 

The
Company will furnish to any Holder of Securities upon written request and
without charge to the Holder a copy of the Indenture which has in it the text
of this Security.

 

9

 

ASSIGNMENT
FORM

 

To assign this Security,
fill in the form below:

 

I or we assign and transfer
this Security to:

 

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

  
	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. No.)

  

and irrevocably
appoint                     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 other side of this Security.

  
					

 

10

 

CERTIFICATE
TO BE DELIVERED UPON EXCHANGE OR

REGISTRATION OF TRANSFER RESTRICTED SECURITIES

 

This certificate relates to
$                    
principal amount of Securities held in (check applicable space)
           book-entry or
           definitive form by
the undersigned.

 

The undersigned:

 

o                                    has requested the Trustee by written order to
deliver in exchange for its beneficial interest in the Global Security held by
the Depositary a Security or Securities in definitive, registered form of
authorized denominations and an aggregate principal amount equal to its
beneficial interest in such Global Security (or the portion thereof indicated
above); and

 

check the following, if
applicable:

 

o                                    is an affiliate of the Company as contemplated
in Section 2.2(k) of Appendix A to the Indenture; or

 

o                                    is exchanging this Security in connection with
an expected transfer to an affiliate of the Company as contemplated in
Section 2.2(k) of Appendix A to the Indenture.

 

o                                    has requested the Trustee by written order to
exchange or register the transfer of a Security or Securities; and

 

check the following, if
applicable:

 

o                                    is an affiliate of the Company as contemplated
in Section 2.2(k) of Appendix A to the Indenture; or

 

o                                    the transferee is an affiliate of the Company as
contemplated in Section 2.2(k) of Appendix A to the Indenture.

 

In connection with any
transfer of any of the Securities evidenced by this certificate occurring prior
to the expiration of the period referred to in Rule 144 under the
Securities Act, the undersigned confirms that such Securities are being
transferred in accordance with its terms:

 

CHECK ONE BOX BELOW

 

(1)          o            to the Company or Subsidiary thereof; or

 

(2)          o            to the Security Registrar for registration in
the name of the Holder, without transfer; or

 

(3)          o            pursuant to an effective registration statement
under the Securities Act of 1933; or

 

(4)          o            inside the United States to a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act of
1933) that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that such

 

11

 

transfer is being
made in reliance on Rule 144A, in each case pursuant to and in compliance
with Rule 144A under the Securities Act of 1933; or

 

(5)          o            outside the United States in an offshore
transaction within the meaning of Regulation S under the Securities Act in
compliance with Rule 903 or Rule 904 under the Securities Act of 1933
and such Security shall be held immediately after the transfer through
Euroclear or Clearstream until the expiration of the Restricted Period (as
defined in the Indenture); or

 

(6)          o            pursuant to another available exemption from
registration provided by Rule 144 under the Securities Act of 1933.

 

Unless one of the boxes is checked,
the Security Registrar will refuse to register any of the Securities evidenced
by this certificate in the name of any Person other than the registered Holder
thereof; provided, however, that if box (4), (5), or
(6) is checked, the Security Registrar may require, prior to registering
any such transfer of the Securities, such legal opinions, certifications and
other information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your Signature

  

 

12

 

TO BE COMPLETED BY
PURCHASER IF (4) ABOVE IS CHECKED.

 

The undersigned represents
and warrants that it is purchasing this Security for its own account or an
account with respect to which it exercises sole investment discretion and that
it and any such account is a “qualified institutional buyer” within the meaning
of Rule 144A under the Securities Act of 1933, and is aware that the sale
to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: To be executed by
  an executive officer

  

 

13

 

[TO
BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The initial principal
amount of this Global Security is
$                  .  The following increases or decreases in this
Global Security have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount
  of decrease in

  Principal Amount of

  this Global Security

  	
   

  	
  Amount
  of increase in

  Principal Amount of

  this Global Security

  	
   

  	
  Principal
  amount of

  this Global Security

  following such

  decrease or increase

  	
   

  	
  Signature
  of

  authorized signatory of

  Trustee or Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

14

 

EXHIBIT B

 

[FORM OF
FACE OF EXCHANGE SECURITY] [CONFORM TO INITIAL SECURITY WHERE APPLICABLE]

 

[Global Securities
Legend]

 

UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, 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 IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO., OR TO SUCH OTHER ENTITY AS IS 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.

 

TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.

 

Each Security issued
hereunder that has more than a de minimis amount of original issue discount for
U.S. Federal Income Tax purposes shall bear a legend in substantially the
following form:

 

THIS SECURITY IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE
INTERNAL REVENUE CODE. A HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF
ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH
SECURITIES BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE ISSUER
AT THE FOLLOWING ADDRESS: INTERNATIONAL LEASE FINANCE CORPORATION, 10250
CONSTELLATION BLVD., SUITE 3400, LOS ANGELES, CALIFORNIA ATTENTION: TREASURER.

 

1

 

[FORM OF
EXCHANGE SECURITY]

 

	
  No.

  	
   

  	
  $

  

 

[     ]% Senior Secured Note due 20[   ]

 

CUSIP
No. [                    ]

 

ISIN No. [                    ]

 

INTERNATIONAL LEASE FINANCE
CORPORATION, a California corporation, promises to pay to [                    ], or registered assigns,
the principal sum [of                   
Dollars] [listed on the Schedule of Increases or Decreases in Global
Security attached hereto](5) on [                    ], 20[   ].

 

Interest Payment
Dates: [                    ] and [                    ].

 

Record Dates: [                    ] and [                    ].

 

Additional provisions of
this Security are set forth on the other side of this Security.

 

	
  (5)

  	
  Use the Schedule of Increases and Decreases language
  if Security is in Global Form.

  

 

2

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

	
   

  	
  INTERNATIONAL LEASE
  FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  

 

3

 

	
  CERTIFICATE OF

  	
   

  
	
  AUTHENTICATION

  	
   

  
	
   

  	
   

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

  	
   

  
	
  as
  Trustee, certifies that this is one of

  	
   

  
	
  the
  Securities referred to in the Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

4

 

[FORM OF
REVERSE SIDE OF EXCHANGE SECURITY]

 

[     ]% Senior Secured Note due 20[   ]

 

1.                                       Interest

 

INTERNATIONAL LEASE FINANCE
CORPORATION, a California corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the
principal amount of this Security at the rate per annum shown above.  The Company shall pay interest semiannually
on [                    ] and [                    ] of each year, commencing
[        , 2011].(6)  Interest on
the Securities shall accrue from the most recent date to which interest has
been paid or duly provided for or, if no interest has been paid or duly
provided for, from [        ,
2010](7) until the principal hereof is due.  Interest shall be computed on the basis of a
360-day year of twelve 30-day months. 
The Company shall pay interest on overdue principal at the rate borne by
the Securities, and it shall pay interest on overdue installments of interest
at the same rate to the extent lawful.

 

2.                                       Method of Payment

 

The Company shall pay
interest on the Securities (except defaulted interest) to the Persons who are
registered Holders at the close of business on the
[           ] or
[            ] next
preceding the interest payment date even if Securities are canceled after the
record date and on or before the interest payment date (whether or not a
Business Day).  The Holders must
surrender Securities to a Paying Agent to collect principal payments.  The Company shall pay principal and interest
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 and interest) shall be
made by the Paying Agent by wire transfer of immediately available funds to the
accounts specified by The Depository Trust Company or any successor
depositary.  The Company will make all
payments in respect of a certificated Security (including principal and
interest) at the office of each Paying Agent, except that, at the option of the
Company, payment of interest may be made by mailing a check to the registered
address of each Holder thereof; provided,
however, that payments on the Securities may also be
made, in the case of a Holder of at least $1,000,000 aggregate principal amount
of Securities, by wire transfer to a U.S. dollar account maintained by the
payee with a bank in the United States if such Holder elects payment by wire
transfer by giving written notice to 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 Paying Agent may
accept in its discretion).

 

	
  (6)

  	
  Include such date with
  respect to the Exchange Securities issued in exchange for Securities issued
  on the Issue Date.

  
	
   

  	
   

  
	
  (7)

  	
  Include such date with
  respect to the Exchange Securities issued in exchange for Securities issued
  on the Issue Date.

  

 

5

 

3.                                       Paying Agent, Security Registrar and
Authentication Agent

 

Initially, the Trustee will
act as Paying Agent, Security Registrar and Authentication Agent.  The Company may appoint and change any Paying
Agent or Security Registrar without notice. 
The Company or any of its domestically incorporated wholly owned
Subsidiaries may act as Paying Agent or Security Registrar.

 

4.                                       Indenture and Mortgage

 

The Company issued the
Securities under an Indenture dated as of August 11, 2010 (the “Indenture”), among the Company, the
Guarantor Parties named therein, and The Bank of New York Mellon Trust Company,
N.A., as Trustee, Paying Agent, Security Registrar and Authentication Agent
(the “Trustee”).  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the
date of the Indenture (the “TIA”).  Terms defined in the Indenture and not
defined herein have the meanings ascribed thereto in the Indenture.  The Securities are subject to all terms and
provisions of the Indenture and entitled to the benefits of the Aircraft
Mortgage and Security and Guaranty Agreement dated as of August 11, 2010
among the Company, the other Grantor Parties party thereto and Wells Fargo Bank
Northwest, National Association, as Security Trustee (the “Mortgage”), and the Holders (as defined in
the Indenture) are referred to the Indenture, the TIA and the Mortgage for a
statement of such terms and provisions.

 

The Securities are senior
secured obligations of the Company.

 

5.                                       Optional Redemption

 

The Company may redeem the
Securities in whole or in part, at any time prior to maturity, at the option of
the Company, at a redemption price equal to 100% of the principal amount of the
Securities redeemed plus the Applicable Premium as of, and accrued and unpaid
interest and Additional Interest, if any, to, the applicable redemption date
(subject to the right of holders of record on the relevant Regular Record Date
to receive interest due on the relevant Interest Payment Date); provided,
however, that Collateral held for the benefit of the Holders as security for
the obligations under the Indenture, the Securities and the Guaranteed
Obligations may only be released upon redemption of the Securities in
accordance with the terms of the Mortgage.

 

6.                                       Sinking Fund

 

The Securities are not
subject to any sinking fund.

 

7.                                       Denominations; Transfer; Exchange

 

The Securities are in
registered form without coupons in denominations of $2,000 and any integral
multiple of $1,000 in excess thereof.  A
Holder shall register the transfer of or exchange of Securities in accordance
with the Indenture.  Upon any
registration of transfer or exchange, the Security Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
or transfer documents and to pay any taxes required by law or

 

6

 

permitted by the
Indenture.  The Security Registrar need
not register the transfer of or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or to transfer or exchange any Securities for a
period of 15 days prior to a selection of Securities to be redeemed.

 

8.                                       Persons Deemed Owners

 

The registered Holder of
this Security shall be treated as the owner of it for all purposes.

 

9.                                       Unclaimed Money

 

If money for the payment of
principal or interest remains unclaimed for two years, the Trustee and a Paying
Agent shall pay the money back to the Company at its written request unless an
abandoned property law designates another Person.  After any such payment, the Holders entitled
to the money must look to the Company for payment as general creditors and the
Trustee and a Paying Agent shall have no further liability with respect to such
monies.

 

10.                                 Discharge and Defeasance

 

Subject to certain
conditions, the Company at any time may terminate some of or all its
obligations under the Securities and the Indenture if the Company deposits with
the Trustee money or U.S. Government Obligations for the payment of principal
of and interest on the Securities to redemption, or maturity, as the case may
be.

 

11.                                 Amendment, Waiver

 

The Indenture, the Mortgage
and the Securities may be amended or supplemented as provided in the Indenture
and Mortgage.

 

12.                                 Defaults and Remedies

 

The Events of Default
relating to the Securities are defined in Section 5.01 of the
Indenture.  Upon the occurrence of an
Event of Default, the rights and obligations of the Company and the Holders
shall be as set forth in the Indenture.

 

13.                                 Trustee Dealings with the Company

 

Subject to certain
limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Securities
and may otherwise deal with and collect obligations owed to it by the Company
or its Affiliates and may otherwise deal with the Company or its Affiliates
with the same rights it would have if it were not Trustee.

 

14.                                 No Recourse Against Others

 

No director, officer,
employee, incorporator or holder of any equity interests in the Company or any
direct or indirect parent corporation, as such, shall have any liability for
any obligations of the Company under the Securities, the Indenture, or the
Mortgage or for any claim

 

7

 

based on, in respect of, or
by reason of, such obligations or their creation.  Each Holder of Securities by accepting a
Security waives and releases all such liability.

 

15.                                 Authentication

 

This Security shall not be
valid until an authorized signatory of the Trustee (or an authentication agent)
manually signs the certificate of authentication on the other side of this
Security.

 

16.                                 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 rights of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A
(=Uniform Gift to Minors Act).

 

17.                                 Governing Law

 

THIS
SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

18.                                 CUSIP Numbers, ISINs and Common Codes

 

The Company has caused
CUSIP numbers and ISINs to be printed on the Securities and has directed the
Trustee to use CUSIP numbers and ISINs. 
No representation is made as to the accuracy of such numbers either as
printed on the Securities or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon.

 

The
Company will furnish to any Holder of Securities upon written request and
without charge to the Holder a copy of the Indenture which has in it the text
of this Security.

 

8

 

ASSIGNMENT
FORM

 

To assign this Security,
fill in the form below:

 

I or we assign and transfer
this Security to:

 

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

  
	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. No.)

  

and irrevocably
appoint                     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 other side of this Security.

  

 

9

 

[TO
BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The initial principal
amount of this Global Security is
$                  .  The following increases or decreases in this
Global Security have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount
  of decrease in

  Principal Amount of

  this Global Security

  	
   

  	
  Amount
  of increase in

  Principal Amount of

  this Global Security

  	
   

  	
  Principal
  amount of

  this Global Security

  following such

  decrease or increase

  	
   

  	
  Signature
  of

  authorized signatory of

  Trustee or Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10Exhibit 4.2

 

[FACE OF INITIAL SECURITY]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, 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 IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
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.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED
IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY
IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT
OF THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED, PRIOR TO THE DATE THAT IS IN THE CASE OF RULE 144A
NOTES, ONE YEAR, AND IN THE CASE OF REGULATION S NOTES, 40 DAYS AFTER THE LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (1) (a) FOR SO LONG AS THE NOTES ARE ELIGIBLE
FOR RESALE UNDER RULE 144A, TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE
SECURITIES ACT, (b) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S
UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT 

 

 

PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (d) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
IF THE COMPANY SO REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED
HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO
REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY
RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.

 

 

	
  No.

  	
  $

  
	
   

  	
   

  
	
  61⁄2% Senior Secured Note due 2014

  
	
   

  	
   

  
	
  CUSIP No. [            ]

  
	
  ISIN No. [              ]

  

 

INTERNATIONAL LEASE FINANCE CORPORATION, a California corporation,
promises to pay to CEDE & CO., or registered assigns, the principal
sum listed on the Schedule of Increases or Decreases in Global Security
attached hereto on September 1, 2014.

 

Interest Payment Dates: March 1 and September 1.

 

Record Dates: February 15 and August 15.

 

Additional provisions of this Security are set forth on the other side
of this Security.

 

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

	
   

  	
  INTERNATIONAL LEASE FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Pamela S. Hendry

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated: August 20, 2010

  	
   

  	
   

  	
   

  

 

 

CERTIFICATE OF AUTHENTICATION

 

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

  
	
      as Trustee, certifies
  that this is one of the Securities referred to in the Indenture.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 

[REVERSE SIDE OF INITIAL SECURITY]

 

61⁄2% Senior Secured Note due 2014

 

1.             Interest

 

(a)           INTERNATIONAL LEASE
FINANCE CORPORATION, a California corporation (such corporation, and its
successors and assigns under the Indenture hereinafter referred to, being
herein called the “Company”),
promises to pay interest on the principal amount of this Security at the rate
per annum shown above.  The Company shall
pay interest semiannually on March 1 and September 1 of each year,
commencing March 1, 2011.  Interest
on the Securities shall accrue from the most recent date to which interest has
been paid or duly provided for or, if no interest has been paid or duly
provided for, from August 20, 2010 until the principal hereof is due.  Interest shall be computed on the basis of a
360-day year of twelve 30-day months. 
The Company shall pay interest on overdue principal at the rate borne by
the Securities, and it shall pay interest on overdue installments of interest
at the same rate to the extent lawful.

 

(b)           Registration Rights
Agreement.  The Holder of this Security
is entitled to the benefits of a Registration Rights Agreement, dated as of August 20,
2010, among the Company and the Representatives on behalf of the several
Initial Purchasers.

 

2.             Method of Payment

 

The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered Holders at the close of business on
the February 15 or August 15 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date (whether or not a Business Day).  The Holders must surrender Securities to a
Paying Agent to collect principal payments. 
The Company shall pay principal and interest 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
and interest) shall be made by the Paying Agent by wire transfer of immediately
available funds to the accounts specified by The Depository Trust Company or
any successor depositary.  The Company will
make all payments in respect of a certificated Security (including principal
and interest) at the office of each Paying Agent, except that, at the option of
the Company, payment of interest may be made by mailing a check to the
registered address of each Holder thereof; provided, however, that payments on the Securities may
also be made, in the case of a Holder of at least $1,000,000 aggregate
principal amount of Securities, by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to 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 Paying Agent may
accept in its discretion).

 

 

3.             Paying Agent,
Security Registrar and Authentication Agent

 

Initially, the Trustee will act as Paying Agent, Security Registrar and
Authentication Agent.  The Company may
appoint and change any Paying Agent or Security Registrar without notice.  The Company or any of its domestically
incorporated wholly owned Subsidiaries may act as Paying Agent or Security
Registrar.

 

4.             Indenture and
Mortgage

 

The Company issued the Securities under an Indenture dated as of August 11,
2010 (the “Indenture”), among the
Company, the Guarantor Parties named therein, and The Bank of New York Mellon
Trust Company, N.A., as Trustee, Paying Agent, Security Registrar and
Authentication Agent (the “Trustee”).  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the
date of the Indenture (the “TIA”).  Terms defined in the Indenture and not defined
herein have the meanings ascribed thereto in the Indenture.  The Securities are subject to all terms and
provisions of the Indenture and entitled to the benefits of the Aircraft
Mortgage and Security and Guaranty Agreement dated as of August 11, 2010 among
the Company, the other Grantor Parties party thereto and Wells Fargo Bank
Northwest, National Association, as Security Trustee (the “Mortgage”), and the Holders (as defined in
the Indenture) are referred to the Indenture, the TIA and the Mortgage for a
statement of such terms and provisions.

 

The Securities are senior secured obligations of the Company.

 

5.             Optional
Redemption

 

The Company may redeem the Securities in whole or in part, at any time
prior to maturity, at the option of the Company, at a redemption price equal to
100% of the principal amount of the Securities redeemed plus the Applicable
Premium as of, and accrued and unpaid interest and Additional Interest, if any,
to, the applicable redemption date (subject to the right of holders of record
on the relevant Regular Record Date to receive interest due on the relevant
Interest Payment Date); provided, however, that Collateral held for the benefit
of the Holders as security for the obligations under the Indenture, the
Securities and the Guaranteed Obligations may only be released upon redemption
of the Securities in accordance with the terms of the Mortgage.

 

6.             Sinking Fund

 

The Securities are not subject to any sinking fund.

 

7.             Denominations;
Transfer; Exchange

 

The Securities are in registered form, without coupons, in denominations
of $2,000 and any integral multiple of $1,000 in excess thereof.  A Holder shall register the transfer of or
exchange of Securities in accordance with the Indenture.  Upon any registration of transfer or exchange,
the Security Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements or transfer documents and to pay
any taxes required by law or 

 

 

permitted by the Indenture. The Security Registrar need not register the
transfer of or exchange of any Securities selected for redemption (except, in
the case of a Security to be redeemed in part, the portion of the Security not
to be redeemed) or to transfer or exchange any Securities for a period of 15
days prior to a selection of Securities to be redeemed.

 

8.             Persons Deemed
Owners

 

The registered Holder of this Security shall be treated as the owner of
it for all purposes.

 

9.             Unclaimed Money

 

If money for the payment of principal or interest remains unclaimed for
two years, the Trustee and a Paying Agent shall pay the money back to the
Company at its written request unless an abandoned property law designates
another Person.  After any such payment,
the Holders entitled to the money must look to the Company for payment as
general creditors and the Trustee and a Paying Agent shall have no further
liability with respect to such monies.

 

10.          Discharge and
Defeasance

 

Subject to certain conditions, the Company at any time may terminate
some of or all its obligations under the Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal of and interest on the Securities to redemption, or
maturity, as the case may be.

 

11.          Amendment, Waiver

 

The Indenture, the Mortgage and the Securities may be amended or
supplemented as provided in the Indenture and Mortgage.

 

12.          Defaults and
Remedies

 

The Events of Default relating to the Securities are defined in Section 5.01
of the Indenture.  Upon the occurrence of
an Event of Default, the rights and obligations of the Company and the Holders
shall be as set forth in the Indenture.

 

13.          Trustee Dealings
with the Company

 

Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

 

14.          No Recourse Against
Others

 

No director, officer, employee, incorporator or holder of any equity
interests in the Company or any direct or indirect parent corporation, as such,
shall have any liability for any 

 

 

obligations of the Company under the Securities, the Indenture, or the
Mortgage or for any claim based on, in respect of, or by reason of, such
obligations or their creation.  Each
Holder of Securities by accepting a Security waives and releases all such
liability.

 

15.          Authentication

 

This Security shall not be valid until an authorized signatory of the
Trustee (or an authentication agent) manually signs the certificate of
authentication on the other side of this Security.

 

16.          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 rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

 

17.          Governing Law

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

18.          CUSIP
Numbers, ISINs and Common Codes

 

The Company has caused CUSIP numbers and ISINs to be printed on the
Securities and has directed the Trustee to use CUSIP numbers and ISINs.  No representation is made as to the accuracy
of such numbers either as printed on the Securities or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

The Company will furnish to any Holder of Securities
upon written request and without charge to the Holder a copy of the Indenture
which has in it the text of this Security.

 

 

ASSIGNMENT FORM

 

To assign this Security, fill in the form below:

 

I or we assign and transfer this Security to:

 

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

 

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably
appoint                     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 other side of this Security.

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR

REGISTRATION OF TRANSFER RESTRICTED SECURITIES

 

This certificate relates to
$                    
principal amount of Securities held in (check applicable space)
           book-entry or
           definitive form by
the undersigned.

 

The undersigned:

 

o                                    has requested the
Trustee by written order to deliver in exchange for its beneficial interest in
the Global Security held by the Depositary a Security or Securities in
definitive, registered form of authorized denominations and an aggregate
principal amount equal to its beneficial interest in such Global Security (or
the portion thereof indicated above); and

 

check the following, if applicable:

 

o                                    is an affiliate of
the Company as contemplated in Section 2.2(k) of Appendix A to the
Indenture; or

 

o                                    is exchanging this
Security in connection with an expected transfer to an affiliate of the Company
as contemplated in Section 2.2(k) of Appendix A to the Indenture.

 

o                                    has requested the
Trustee by written order to exchange or register the transfer of a Security or
Securities; and

 

check the following, if applicable:

 

o                                    is an affiliate of
the Company as contemplated in Section 2.2(k) of Appendix A to the
Indenture; or

 

o                                    the transferee is an
affiliate of the Company as contemplated in Section 2.2(k) of
Appendix A to the Indenture.

 

In connection with any transfer of any of the Securities evidenced by
this certificate occurring prior to the expiration of the period referred to in
Rule 144 under the Securities Act, the undersigned confirms that such
Securities are being transferred in accordance with its terms:

 

CHECK ONE BOX BELOW

 

(1)         o    to the Company or Subsidiary thereof; or

 

(2)         o    to the
Security Registrar for registration in the name of the Holder, without
transfer; or

 

(3)         o    pursuant
to an effective registration statement under the Securities Act of 1933; or

 

(4)         o    inside
the United States to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933) that purchases for its own account or for 

 

 

the account of a qualified institutional buyer to whom notice is given
that such transfer is being made in reliance on Rule 144A, in each case
pursuant to and in compliance with Rule 144A under the Securities Act of
1933; or

 

(5)         o    outside
the United States in an offshore transaction within the meaning of Regulation S
under the Securities Act in compliance with Rule 903 or Rule 904
under the Securities Act of 1933 and such Security shall be held immediately
after the transfer through Euroclear or Clearstream until the expiration of the
Restricted Period (as defined in the Indenture); or

 

(6)         o    pursuant
to another available exemption from registration provided by Rule 144
under the Securities Act of 1933.

 

Unless one of the boxes is checked, the Security Registrar will refuse
to register any of the Securities evidenced by this certificate in the name of
any Person other than the registered Holder thereof; provided, however,
that if box (4), (5), or (6) is checked, the Security
Registrar may require, prior to registering any such transfer of the
Securities, such legal opinions, certifications and other information as the
Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Your Signature

  	
   

  

 

 

TO BE COMPLETED BY PURCHASER IF (4) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not
to request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:  To be executed by an
  executive officer

  

 

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The initial principal amount of this Global Security is $500,000,000(1).  The following increases or decreases in this
Global Security have been made:

 

	
  Date
  of Exchange

  	
   

  	
  Amount of decrease in
  Principal Amount of

  this Global Security

  	
   

  	
  Amount of increase in

  Principal Amount of

  this Global Security

  	
   

  	
  Principal amount of

  this Global Security

  following such

  decrease or increase

  	
   

  	
  Signature of

  authorized signatory of

  Trustee or Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)  We
will create the number of 144A Global Notes necessary for the 144A amount and
the number of Reg S Global Notes necessary for the Reg S amount, each in
increments of $500 million for each note or such lesser amount needed to obtain
the total aggregate amount of 144A notes and Reg S notes being issued.

 

 

[FACE OF EXCHANGE SECURITY]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, 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 IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
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.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

 

	
  No.

  	
  $

  
	
   

  	
   

  
	
  61⁄2% Senior Secured Note due 2014

  
	
   

  	
   

  
	
  CUSIP No. [            ]

  
	
  ISIN No. [            ]

  

 

INTERNATIONAL LEASE FINANCE CORPORATION, a California corporation,
promises to pay to CEDE & CO., or registered assigns, the principal
sum listed on the Schedule of Increases or Decreases in Global Security
attached hereto on September 1, 2014.

 

Interest Payment Dates: March 1 and September 1.

 

Record Dates: February 15 and August 15.

 

Additional provisions of this Security are set forth on the other side
of this Security.

 

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

 

	
   

  	
  INTERNATIONAL LEASE FINANCE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Pamela S. Hendry

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and Treasurer

  

 

Dated: August 20, 2010

 

 

CERTIFICATE OF 

AUTHENTICATION

 

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

  
	
  as Trustee, certifies that this is one of the Securities referred to
  in the Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 

[REVERSE SIDE OF EXCHANGE SECURITY]

 

61⁄2% Senior Secured Note due 2014

 

1.             Interest

 

INTERNATIONAL LEASE FINANCE CORPORATION, a California corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the “Company”),
promises to pay interest on the principal amount of this Security at the rate
per annum shown above.  The Company shall
pay interest semiannually on March 1 and September 1 of each year,
commencing March 1, 2011.  Interest
on the Securities shall accrue from the most recent date to which interest has
been paid or duly provided for or, if no interest has been paid or duly
provided for, from August 20, 2010 until the principal hereof is due.  Interest shall be computed on the basis of a
360-day year of twelve 30-day months. 
The Company shall pay interest on overdue principal at the rate borne by
the Securities, and it shall pay interest on overdue installments of interest
at the same rate to the extent lawful.

 

2.             Method of Payment

 

The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered Holders at the close of business on
the February 15 or August 15 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date (whether or not a Business Day).  The Holders must surrender Securities to a
Paying Agent to collect principal payments. 
The Company shall pay principal and interest 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
and interest) shall be made by the Paying Agent by wire transfer of immediately
available funds to the accounts specified by The Depository Trust Company or
any successor depositary.  The Company
will make all payments in respect of a certificated Security (including
principal and interest) at the office of each Paying Agent, except that, at the
option of the Company, payment of interest may be made by mailing a check to
the registered address of each Holder thereof; provided, however,
that payments on the Securities
may also be made, in the case of a Holder of at least $1,000,000 aggregate
principal amount of Securities, by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to 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 Paying Agent may
accept in its discretion).

 

3.             Paying Agent,
Security Registrar and Authentication Agent

 

Initially, the Trustee will act as Paying Agent, Security Registrar and
Authentication Agent.  The Company may
appoint and change any Paying Agent or Security Registrar without notice.  The Company or any of its domestically
incorporated wholly owned Subsidiaries may act as Paying Agent or Security
Registrar.

 

 

4.             Indenture and
Mortgage

 

The Company issued the Securities under an Indenture dated as of
August 11, 2010 (the “Indenture”),
among the Company, the Guarantor Parties named therein, and The Bank of New
York Mellon Trust Company, N.A., as Trustee, Paying Agent, Security Registrar
and Authentication Agent (the “Trustee”).  The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the
date of the Indenture (the “TIA”).  Terms defined in the Indenture and not
defined herein have the meanings ascribed thereto in the Indenture.  The Securities are subject to all terms and
provisions of the Indenture and entitled to the benefits of the Aircraft
Mortgage and Security and Guaranty Agreement dated as of August 11, 2010
among the Company, the other Grantor Parties party thereto and Wells Fargo Bank
Northwest, National Association, as Security Trustee (the “Mortgage”), and the Holders (as defined in
the Indenture) are referred to the Indenture, the TIA and the Mortgage for a
statement of such terms and provisions.

 

The Securities are senior secured obligations of the Company.

 

5.             Optional Redemption

 

The Company may redeem the Securities in whole or in part, at any time
prior to maturity, at the option of the Company, at a redemption price equal to
100% of the principal amount of the Securities redeemed plus the Applicable
Premium as of, and accrued and unpaid interest and Additional Interest, if any,
to, the applicable redemption date (subject to the right of holders of record
on the relevant Regular Record Date to receive interest due on the relevant
Interest Payment Date); provided, however, that Collateral held for the benefit
of the Holders as security for the obligations under the Indenture, the
Securities and the Guaranteed Obligations may only be released upon redemption
of the Securities in accordance with the terms of the Mortgage.

 

6.             Sinking Fund

 

The Securities are not subject to any sinking fund.

 

7.             Denominations;
Transfer; Exchange

 

The Securities are in registered form without coupons in denominations
of $2,000 and any integral multiple of $1,000 in excess thereof.  A Holder shall register the transfer of or
exchange of Securities in accordance with the Indenture.  Upon any registration of transfer or
exchange, the Security Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements or transfer documents and to
pay any taxes required by law or permitted by the Indenture.  The Security Registrar need not register the
transfer of or exchange  any Securities
selected for redemption (except, in the case of a Security to be redeemed in
part, the portion of the Security not to be redeemed) or to transfer or
exchange any Securities for a period of 15 days prior to a selection of
Securities to be redeemed.

 

 

8.             Persons Deemed
Owners

 

The registered Holder of this Security shall be treated as the owner of
it for all purposes.

 

9.             Unclaimed Money

 

If money for the payment of principal or interest remains unclaimed for
two years, the Trustee and a Paying Agent shall pay the money back to the
Company at its written request unless an abandoned property law designates
another Person.  After any such payment,
the Holders entitled to the money must look to the Company for payment as
general creditors and the Trustee and a Paying Agent shall have no further
liability with respect to such monies.

 

10.          Discharge and
Defeasance

 

Subject to certain conditions, the Company at any time may terminate
some of or all its obligations under the Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal of and interest on the Securities to redemption, or
maturity, as the case may be.

 

11.          Amendment, Waiver

 

The Indenture, the Mortgage and the Securities may be amended or
supplemented as provided in the Indenture and Mortgage.

 

12.          Defaults and Remedies

 

The Events of Default relating to the Securities are defined in
Section 5.01 of the Indenture.  Upon
the occurrence of an Event of Default, the rights and obligations of the
Company and the Holders shall be as set forth in the Indenture.

 

13.          Trustee Dealings
with the Company

 

Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

 

14.          No Recourse Against
Others

 

No director, officer, employee, incorporator or holder of any equity
interests in the Company or any direct or indirect parent corporation, as such,
shall have any liability for any obligations of the Company under the
Securities, the Indenture, or the Mortgage or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each Holder of Securities by accepting a
Security waives and releases all such liability.

 

 

15.          Authentication

 

This Security shall not be valid until an authorized signatory of the
Trustee (or an authentication agent) manually signs the certificate of
authentication on the other side of this Security.

 

16.          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 rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

 

17.          Governing Law

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

18.          CUSIP
Numbers, ISINs and Common Codes

 

The Company has caused CUSIP numbers and ISINs to be printed on the
Securities and has directed the Trustee to use CUSIP numbers and ISINs.  No representation is made as to the accuracy
of such numbers either as printed on the Securities or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

The Company will furnish to any Holder of Securities
upon written request and without charge to the Holder a copy of the Indenture
which has in it the text of this Security.

 

 

ASSIGNMENT FORM

 

To assign this Security, fill in the form below:

 

I or we assign and transfer this Security to:

 

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

 

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably
appoint                     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 other
  side of this Security.

  

 

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

 

The initial principal amount of this Global Security is $500,000,000(1).
The following increases or decreases in this Global Security have been made:

 

 

	
  Date
  of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of

  this Global Security

  	
   

  	
  Amount of increase in

  Principal Amount of

  this Global Security

  	
   

  	
  Principal amount of

  this Global Security

  following such

  decrease or increase

  	
   

  	
  Signature of

  authorized signatory of

  Trustee or Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)  We will create the number of 144A Global Notes necessary for
the 144A amount and the number of Reg S Global Notes necessary for the Reg S
amount, each in increments of $500 million for each note or such lesser amount
needed to obtain the total aggregate amount of 144A notes and Reg S notes being
issued.

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