Document:

EX-4.2

 

Exhibit 4.2

 

LEUCADIA NATIONAL CORPORATION

and

THE BANK OF NEW YORK, as Trustee

 

INDENTURE

Dated as of ___, 20___

 

___% Senior Notes due ___, 20___

 

 

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA Section	 	Indenture Section
	310(a)(1)
	 	6.10
	(a)(2)
	 	6.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	6.08
	(b)
	 	6.08; 6.10
	(c)
	 	N.A.
	311(a)
	 	6.11
	(b)
	 	6.11
	(c)
	 	N.A.
	312(a)
	 	2.05
	(b)
	 	9.03
	(c)
	 	9.03
	313(a)
	 	6.06
	(b)(1)
	 	N.A.
	(b)(2)
	 	6.06
	(c)
	 	6.06; 9.02
	(d)
	 	6.06
	314(a)
	 	3.02; 3.03; 9.02
	(b)
	 	N.A.
	(c)(1)
	 	9.04
	(c)(2)
	 	9.04
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	9.05
	(f)
	 	N.A.
	315(a)
	 	6.01(b)
	(b)
	 	6.05; 9.02
	(c)
	 	6.01(a)
	(d)
	 	6.01(c)
	(e)
	 	5.11
	316(a)(last sentence)
	 	9.06
	(a)(1)(A)
	 	5.05
	(a)(1)(B)
	 	5.02; 5.04; 8.02
	(a)(2)
	 	N.A.
	(b)
	 	5.07
	317(a)(1)
	 	5.08
	(a)(2)
	 	5.09
	(b)
	 	2.04
	318(a)
	 	9.01

 

			
	N.A. means Not Applicable.
	 
	NOTE:	 	This Cross-Reference Table shall not, for any purpose, be deemed
to be part of this Indenture.

-i-

 

 

                        TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE ONE	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.01.

	 	Definitions
	 	 	1	 
	SECTION 1.02.

	 	Other Definitions
	 	 	6	 
	SECTION 1.03.

	 	Incorporation by Reference of Trust Indenture Act
	 	 	7	 
	SECTION 1.04.

	 	Rules of Construction
	 	 	7	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE TWO	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	THE SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.01.

	 	Form and Dating
	 	 	8	 
	SECTION 2.02.

	 	Execution and Authentication
	 	 	8	 
	SECTION 2.03.

	 	Registrar and Paying Agent
	 	 	9	 
	SECTION 2.04.

	 	Paying Agent To Hold Money in Trust
	 	 	9	 
	SECTION 2.05.

	 	Securityholder Lists
	 	 	10	 
	SECTION 2.06.

	 	Transfer and Exchange
	 	 	10	 
	SECTION 2.07.

	 	Replacement Securities
	 	 	10	 
	SECTION 2.08.

	 	Outstanding Securities
	 	 	11	 
	SECTION 2.09.

	 	Temporary Securities
	 	 	11	 
	SECTION 2.10.

	 	Cancellation
	 	 	12	 
	SECTION 2.11.

	 	Defaulted Interest
	 	 	12	 
	SECTION 2.12.

	 	Book-Entry Provisions for Global Securities
	 	 	12	 
	SECTION 2.13.

	 	Transfer and Exchange of Securities
	 	 	13	 
	SECTION 2.14.

	 	Issuance of Additional Securities
	 	 	16	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE THREE	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	REDEMPTION	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.01.

	 	Notices to Trustee
	 	 	16	 
	SECTION 3.02.

	 	Selection of Securities to Be Redeemed
	 	 	17	 
	SECTION 3.03.

	 	Notice of Redemption
	 	 	17	 
	SECTION 3.04.

	 	Effect of Notice of Redemption
	 	 	18	 
	SECTION 3.05.

	 	Deposit of Redemption Price
	 	 	18	 
	SECTION 3.06.

	 	Securities Redeemed in Part
	 	 	18	 
	SECTION 3.07.

	 	Optional Redemption
	 	 	19	 

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	 	 	 	 	Page
	 

	 	ARTICLE FOUR	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.01.

	 	Payment of Securities
	 	 	19	 
	SECTION 4.02.

	 	SEC Reports
	 	 	20	 
	SECTION 4.03.

	 	Compliance Certificate
	 	 	20	 
	SECTION 4.04.

	 	Maintenance of Office or Agency
	 	 	21	 
	SECTION 4.05.

	 	Corporate Existence
	 	 	21	 
	SECTION 4.06.

	 	Waiver of Stay, Extension or Usury Laws
	 	 	21	 
	SECTION 4.07.

	 	Transactions with Affiliates
	 	 	22	 
	SECTION 4.08.

	 	Change of Control
	 	 	22	 
	SECTION 4.09.

	 	Limitation on Incurrence of Additional Indebtedness by the Company and on the Incurrence of
Additional 

    Indebtedness and Issuance of Preferred Stock by Its Subsidiaries

	 	 	24	 
	SECTION 4.10.

	 	Limitation on Liens
	 	 	25	 
	SECTION 4.11.

	 	Limitation on Sale and Lease-Back Transactions
	 	 	27	 
	SECTION 4.12.

	 	Limitation on Funded Debt of Material Subsidiaries
	 	 	27	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE FIVE	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	SUCCESSOR CORPORATION	 	 	 	 
	SECTION 5.01.

	 	When Company May Merge, etc.
	 	 	28	 
	SECTION 5.02.

	 	Successor Person Substituted
	 	 	29	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE SIX	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	DEFAULTS AND REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.01.

	 	Events of Default
	 	 	29	 
	SECTION 6.02.

	 	Acceleration
	 	 	31	 
	SECTION 6.03.

	 	Other Remedies
	 	 	31	 
	SECTION 6.04.

	 	Waiver of Past Defaults
	 	 	31	 
	SECTION 6.05.

	 	Control by Majority
	 	 	32	 
	SECTION 6.06.

	 	Limitation on Remedies
	 	 	32	 
	SECTION 6.07.

	 	Rights of Holders To Receive Payment
	 	 	32	 
	SECTION 6.08.

	 	Collection Suit by Trustee
	 	 	33	 
	SECTION 6.09.

	 	Trustee May File Proofs of Claim
	 	 	33	 
	SECTION 6.10.

	 	Priorities
	 	 	33	 
	SECTION 6.11.

	 	Undertaking for Costs
	 	 	34	 

-iii-

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE SEVEN	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 7.01.

	 	Duties of Trustee
	 	 	34	 
	SECTION 7.02.

	 	Rights of Trustee
	 	 	35	 
	SECTION 7.03.

	 	Individual Rights of Trustee
	 	 	36	 
	SECTION 7.04.

	 	Trustee’s Disclaimer
	 	 	36	 
	SECTION 7.05.

	 	Notice of Defaults
	 	 	37	 
	SECTION 7.06.

	 	Reports by Trustee to Holders
	 	 	37	 
	SECTION 7.07.

	 	Compensation and Indemnity
	 	 	37	 
	SECTION 7.08.

	 	Replacement of Trustee
	 	 	38	 
	SECTION 7.09.

	 	Successor Trustee by Merger, etc.
	 	 	39	 
	SECTION 7.10.

	 	Eligibility; Disqualification
	 	 	39	 
	SECTION 7.11.

	 	Preferential Collection of Claims Against Company
	 	 	40	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE EIGHT	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	DISCHARGE OF INDENTURE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 8.01.

	 	Termination of Company’s Obligations
	 	 	40	 
	SECTION 8.02.

	 	Application of Trust Money
	 	 	41	 
	SECTION 8.03.

	 	Repayment to Company
	 	 	41	 
	SECTION 8.04.

	 	Reinstatement, Indemnity
	 	 	41	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE NINE	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	AMENDMENTS, SUPPLEMENTS AND WAIVERS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.01.

	 	Without Consent of Holders
	 	 	42	 
	SECTION 9.02.

	 	With Consent of Holders
	 	 	42	 
	SECTION 9.03.

	 	Compliance with Trust Indenture Act
	 	 	43	 
	SECTION 9.04.

	 	Revocation and Effect of Consents
	 	 	44	 
	SECTION 9.05.

	 	Notation on or Exchange of Securities
	 	 	44	 
	SECTION 9.06.

	 	Trustee Protected
	 	 	44	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE TEN	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 10.01.

	 	Trust Indenture Act Controls
	 	 	45	 
	SECTION 10.02.

	 	Notices
	 	 	45	 
	SECTION 10.03.

	 	Communication by Holders with Other Holders
	 	 	46	 
	SECTION 10.04.

	 	Certificate and Opinion as to Conditions Precedent
	 	 	46	 
	SECTION 10.05.

	 	Statements Required in Certificate or Opinion
	 	 	46	 
	SECTION 10.06.

	 	When Treasury Securities Disregarded
	 	 	47	 

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	 	 	 	 	Page
	SECTION 10.07.

	 	Rules by Trustee and Agents
	 	 	47	 
	SECTION 10.08.

	 	Legal Holidays
	 	 	47	 
	SECTION 10.09.

	 	Governing Law
	 	 	47	 
	SECTION 10.10.

	 	No Adverse Interpretation of Other Agreements
	 	 	47	 
	SECTION 10.11.

	 	No Recourse Against Others
	 	 	48	 
	SECTION 10.12.

	 	Successors
	 	 	48	 
	SECTION 10.13.

	 	Duplicate Originals
	 	 	48	 
	SECTION 10.14.

	 	Separability
	 	 	48	 
	 
	SIGNATURES

	 	 	 	 	S-1	 

-v-

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	EXHIBIT A — FORM OF SECURITY	 	A-1
	EXHIBIT B — FORM OF GLOBAL SECURITY LEGEND	 	B-1

 

			
	NOTE:	 	 This Table of Contents shall not, for any purpose, be deemed to be a part of
this Indenture.

-vi-

 

 

     INDENTURE dated as of                     , 20___ between Leucadia National Corporation, a New York
corporation (the “Company”), and The Bank of New York, as trustee (the “Trustee”).

     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s ___% Senior Notes due                     , 20___ (the “Securities”):

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01. Definitions.

     “Acquired Indebtedness” means Indebtedness of a Person either (i) existing at the time such
Person becomes a Subsidiary, (ii) assumed in connection with the acquisition of assets of such
Person or (iii) any refinancing or replacement by such Person of such Indebtedness; provided that
the aggregate amount of such Indebtedness then outstanding is not increased. Acquired Indebtedness
shall not include (x) any such Indebtedness created in anticipation of such Person becoming a
Subsidiary (other than a refinancing or replacement of Indebtedness of such Person, which original
Indebtedness was not incurred in anticipation of such Person becoming a Subsidiary) or (y) any
Indebtedness that is recourse to the Company or any Subsidiary or any of their respective assets,
other than to such Person and its Subsidiaries and their respective assets.

     “Additional Securities” means any additional Securities having identical terms and conditions
to the Securities issued pursuant to Article Two and in compliance with Section 4.09.

     “Affiliate” of the Company means (i) any Related Person and (ii) any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the
Company. For the purposes of this definition, “control” when used with respect to any 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.

     “Agent” means any Registrar, Paying Agent or co-registrar.

     “Attributable Debt” means, as of any particular time, the present value, discounted at a rate
per annum equal to the interest rate borne by the Securities, of the rental payments (not including
amounts payable by the lessee for maintenance, property taxes and insurance) due during the
remaining term of any lease (including any period for which such lease has been extended or may, at
the option of the lessor, be extended).

 

-2-

     “Board of Directors” means the Board of Directors of the Company or any committee thereof.

     “business day” means any day on which the New York Stock Exchange is open for trading and
which is not a Legal Holiday.

     “Capitalized Lease Obligations” means the discounted present value of the rental obligations
of any Person under any lease of any property (whether real, personal or mixed) which, in
accordance with GAAP, is required to be capitalized on the balance sheet of such Person.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of capital stock, including each class of
common stock and preferred stock of such Person.

     “Common Shares” means the Common Shares, par value $1.00 per share, of the Company.

     “Company” means Leucadia National Corporation, a New York corporation, until a successor
replaces such Person in accordance with the terms of this Indenture, and thereafter means such
successor.

     “Consolidated Debt” means, on any date, the sum of (i) total Indebtedness of the Company and
its Subsidiaries, at such date, determined in accordance with GAAP on a consolidated basis, and
(ii) the aggregate liquidation preference of all Preferred Stock of Subsidiaries of the Company, at
such date, other than Preferred Stock to the extent held by the Company and its Subsidiaries;
provided that Consolidated Debt shall not include Permitted Indebtedness.

     “Consolidated Net Worth” means, as of any date, the sum of the Capital Stock and additional
paid-in capital plus retained earnings (or minus accumulated deficit) of the Company as of such
date determined on a consolidated basis in accordance with GAAP.

     “Consolidated Tangible Net Worth” with respect to the Company means, as of any date, the total
shareholders’ equity of the Company determined in accordance with GAAP less any and all goodwill
and other intangible assets reflected on the consolidated balance sheet of the Company as of such
date. Deferred policy acquisition costs (“DPAC”), that portion of the value of insurance in force
resulting from an acquisition and equivalent to the amount of DPAC of the acquired entity
outstanding immediately prior to such acquisition and deferred taxes shall not be deemed goodwill
or other intangible assets for purposes of determining Consolidated Tangible Net Worth.

     “Default” means any event which is, or after notice or passage of time would be, an Event of
Default.

 

-3-

     “Depository” means, with respect to the Global Securities, The Depository Trust Company or
another Person designated as depository by the Company, which Person must be a clearing agency
registered under the Exchange Act.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the SEC thereunder.

     “Funded Debt” means Indebtedness which by its terms matures at, or can be extended or renewed
at the option of the obligor to, a date more than twelve months after the date of the creation of
such Indebtedness, including, without limitation, revolving credit loans.

     “GAAP” or “generally accepted accounting principles” means United States generally accepted
accounting principles as in effect on December 31, 1992.

     “Global Security Legend” means the legend substantially in the form set forth in Exhibit B.

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

     “Indebtedness” of any Person means (i) any liability of such Person (a) for borrowed money,
(b) evidenced by a note, debenture or similar instrument (including a Purchase Money Obligation or
deferred payment obligation) given in connection with the acquisition of any property or assets
(other than inventory or similar property acquired in the ordinary course of business), including
securities, (c) for the payment of a Capitalized Lease Obligation of such Person or (d) with
respect to the reimbursement of any letter of credit, banker’s acceptance or similar credit
transaction (other than trade letters of credit issued in the ordinary course of business;
provided, that the failure to make prompt reimbursement of any trade letter of credit shall be
deemed to be the incurrence of Indebtedness); and (ii) any guarantee by such Person of any
liability of others described in clause (i) above or any obligation of such Person with respect to
any liability of others described in clause (i) above. Indebtedness shall not include deposits at
the Company’s banking and lending Subsidiaries.

     “Indenture” means this Indenture as amended or supplemented from time to time.

     “Independent Director” means any director of the Company who is neither (i) an executive
officer or an employee of the Company or of any of its Subsidiaries or Affiliates or (ii) a Related
Person.

     “Initial Securities” means the Securities issued on the Issue Date.

     “Investment Grade” is defined as BBB- or higher by S&P or Baa3 or higher by Moody’s or the
equivalent of such ratings by Moody’s or S&P.

 

-4-

     “Issue Date” means                     .

     “Legal Holiday” means a Saturday, a Sunday or other day on which (i) commercial banks in the
City of New York are authorized or required by law or executive order to close or (ii) the New York
Stock Exchange is not open for trading.

     “Lien” means any mortgage, lien, pledge, security interest, conditional sale or other title
retention agreement or other security interest or encumbrance of any kind (including any agreement
to give any security interest).

     “Material Subsidiary” means (i) any Subsidiary of the Company which at December 31, 1992 was a
“significant subsidiary” under Regulation S-X promulgated by the SEC or any successor to such
Subsidiary and (ii) any other Subsidiary of the Company; provided, that the Company’s investments
in and advances to such Subsidiary at the date of determination thereof, without giving effect to
any write downs in such investments or advances taken within the prior 12 months, represent 20% or
more of the Company’s Consolidated Tangible Net Worth as of such time; provided, however, that this
clause (ii) shall not include any Subsidiary if, at the time that it became a Subsidiary, the
Company contemplated commencing a voluntary case or proceeding under the Bankruptcy Law with
respect to such Subsidiary.

     “Moody’s” means Moody’s Investors Service, Inc. or any successor to its rating business.

     “Officer” means the Chairman of the Board, the President, any Vice President, the Chief
Financial Officer or the Treasurer of the Company.

     “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and the
Secretary, Assistant Secretary or Assistant Treasurer of the Company. One of the Officers giving
an Officers’ Certificate pursuant to Section 4.03 shall be the principal executive, financial or
accounting officer of the Company.

     “Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable
to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

     “Permitted Indebtedness” means (i) any Indebtedness of the Company and its Subsidiaries
outstanding on the Issue Date or any refinancing or replacement thereof; provided, that the
aggregate amount of such Indebtedness is not increased, (ii) Acquired Indebtedness, (iii) Preferred
Stock of Subsidiaries held by the Company or its Subsidiaries (it being understood that the sale of
such Preferred Stock by the Company or such Subsidiary to any Person other than the Company or a
Subsidiary of the Company or such Subsidiary no longer being a Subsidiary shall be deemed the
issuance of Preferred Stock for purposes of Section 4.09) and (iv) intercompany Indebtedness.

 

-5-

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

     “Physical Securities” means certificated Securities in registered form.

     “Preferred Stock” of an entity means the Capital Stock of that entity which is preferred as to
the payment of dividends or the distribution of assets on any voluntary or involuntary liquidation,
over the shares of any other class or series of Capital Stock of said entity.

     “principal” of a debt security means the principal amount of the security plus the premium, if
any, on the security.

     “Principal Property” means all property, assets or revenue of the Company and of each Material
Subsidiary now owned or hereafter acquired and all shares of stock and Indebtedness of any Material
Subsidiary now owned or hereafter acquired.

     “Purchase Money Obligations” means Indebtedness evidenced by a note, debenture, bond or other
security or investment (whether or not secured by any Lien or other security interest) issued to or
assumed in favor of a vendor as all or part of the purchase price of property acquired by the
Company or any Subsidiary; provided, however, that such term shall not include any account payable
or any other Indebtedness incurred, created or assumed in the ordinary course of business in
connection with the obtaining of material, products or services.

     “Related Person” means any Person who directly or indirectly holds 10% or more of any class of
Capital Stock of the Company as determined pursuant to Rule 13d-3 under the Exchange Act.

     “Sale and Lease-Back Transaction” means an arrangement with any Person providing for the
leasing by the Company or any Subsidiary of any property, title to which property has been or is to
be sold or transferred by the Company or such Subsidiary to such Person; provided, however, that
the term “Sale and Lease-Back Transaction” shall not include any arrangement with the United States
of America, any of its territories or possessions, or any State thereof, or any department, agency,
instrumentality or political subdivision of any thereof.

     “S&P” means Standard & Poor’s Ratings Group, Inc. or any successor to its rating business.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the securities, as amended or supplemented from time to time, that are
issued and outstanding under this Indenture, treated as a single class of securities, including the
Initial Securities and Additional Securities, if any.

 

-6-

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

     “Subsidiary” means a corporation or business trust a majority of whose Voting Stock is owned
by the Company or a Subsidiary.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the
Issue Date; provided, however, that in the event the Trust Indenture Act of 1939 is amended after
such date, “TIA” means to the extent required by any such amendment, the Trust Indenture Act of
1939 as so amended.

     “Trustee” means the party named as such in this Indenture until a successor replaces it in
accordance with the terms of this Indenture and thereafter means the successor.

     “Trust Officer” means any officer or assistant officer within the corporate trust department
of the Trustee with direct responsibilities for the administration of this Indenture.

     “United States” means the United States of America.

     “Voting Stock” with respect to any Person, means Capital Stock of such Person having general
voting power under ordinary circumstances to elect directors to the board of directors of such
Person, but shall not include any Capital Stock that has or would have such voting power solely by
reason of the happening of any contingency.

     “Wholly-Owned Subsidiary” means any Subsidiary in which the Company or a Subsidiary owns all
of the Capital Stock, other than directors’ qualifying shares.

     SECTION 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined
	Term	 	in Section
	“Agent Members”
	 	 	2.12	 
	“Bankruptcy Law”
	 	 	6.01	 
	“Change of Control”
	 	 	4.08	 
	“Change of Control Notice”
	 	 	4.08	 
	“Change of Control Payment Date”
	 	 	4.08	 
	“Custodian”
	 	 	6.01	 
	“Disposition”
	 	 	4.08	 
	“Event of Default”
	 	 	6.01	 
	“Global Securities”
	 	 	2.12	 
	“Paying Agent”
	 	 	2.03	 
	“Recipient”
	 	 	4.08	 
	“Registrar”
	 	 	2.03	 
	“U.S. Government Obligations”
	 	 	8.01	 

 

-7-

SECTION 1.03. Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms, if used in this
Indenture, have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a securityholder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company or any other obligor thereon.

     All other TIA terms used in this indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them therein.

SECTION 1.04. Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and words in the plural include the
singular;

     (5) any gender used in this Indenture shall be deemed to include the neuter, masculine
or feminine genders;

     (6) provisions apply to successive events and transactions; and

 

-8-

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

ARTICLE TWO

THE SECURITIES

SECTION 2.01. Form and Dating.

     The Securities and the certificate of authentication shall be substantially in the form of
Exhibit A. The provisions of Exhibit A are part of this Indenture. The Securities may have
notations, legends and endorsements required by law, stock exchange rule or usage. The Company
shall approve the form of the Securities and any notation, legend or endorsement on them. Each
Security shall be dated the date of its authentication.

     SECTION 2.02. Execution and Authentication.

     One Officer and the Secretary or an Assistant Secretary of the Company shall sign the
Securities for the Company by manual or facsimile signature.

     If an Officer whose signature is on a Security no longer holds that office at the time the
Security is authenticated, the Security shall be valid nevertheless.

     A Security shall not be valid until the Trustee or an authenticating agent manually signs the
certificate of authentication on the Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

     The Trustee or an authenticating agent shall authenticate (i) Initial Securities for original
issue in the aggregate principal amount not to exceed $                    , and (ii) Additional
Securities as provided in Section 2.14, in each case upon a written order of the Company in the
form of an Officers’ Certificate. Each such written order shall specify the principal amount of
Securities to be authenticated and the date on which the Securities are to be authenticated and
whether the Securities are to be issued as Physical Securities or Global Securities or such other
information as the Trustee may reasonably request.

     In the event that the Company shall issue and the Trustee shall authenticate any Securities
issued under this Indenture subsequent to the Issue Date pursuant to clause (ii) of the first
sentence of the immediately preceding paragraph, the Company shall use its reasonable efforts to
obtain the same “CUSIP” number for such Securities as is printed on the Securities outstanding at
such time; provided, however, that if any series of Securities issued under this
Indenture subsequent to the Issue Date is determined, to be a different class of security than the
Securities outstanding at such time for federal income tax purposes, the Company may obtain a
“CUSIP” number for such Securities that is different than the “CUSIP” number printed on the

 

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Securities then outstanding. Notwithstanding the foregoing, all Securities issued under this
Indenture shall vote and consent together on all matters as one class and no series of Securities
will have the right to vote or consent as a separate class on any matter.

     The Trustee may appoint an authenticating agent to authenticate Securities. An authenticating
agent may authenticate Securities whenever the Trustee may do so except on original issuance. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with the Company or its
Affiliates.

     The Securities shall be issuable only in registered form without coupons and only in
denominations of $_,000 and any integral multiple thereof.

SECTION 2.03. Registrar and Paying Agent.

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

     The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. Such agency agreement shall provide for reasonable compensation for such services.
The agreement shall implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address of any such Agent and shall furnish the
Trustee with an executed counterpart of any such agency agreement. If the Company fails to
maintain or act as Registrar or Paying Agent, the Trustee shall act as such and shall be duly
compensated therefor.

     The Registrar or a co-registrar and a Paying Agent shall be maintained by the Company in the
Borough of Manhattan, The City of New York. The Company initially designates the Trustee as the
Registrar and Paying Agent.

SECTION 2.04. Paying Agent To Hold Money in Trust.

     At or prior to 10:00 A.M., New York City time, on each due date of the principal and interest
on any Security, the Company shall deposit with the Paying Agent immediately available funds
sufficient to pay such principal and interest becoming due. The Company shall require each Paying
Agent other than the Trustee to enter into an agreement whereby it shall agree to hold in trust for
the benefit of Securityholders or the Trustee all money held by such Paying Agent for the payment
of principal or interest on the Securities, and to notify the Trustee of any Default by the Company
in making any such payment. While any such Default continues,

 

-10-

the Trustee may require the Paying Agent to pay all money held by it to the Trustee. Except
as provided in the immediately preceding sentence, the Company at any time may require a Paying
Agent to pay all money held by it to the Trustee. Upon doing so, such Paying Agent (other than the
Company or a Subsidiary) shall have no further liability for the money. If the Company acts as
Paying Agent, it shall segregate and hold as separate trust funds all money held by it as Paying
Agent.

SECTION 2.05. Securityholder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the name and addresses of Securityholders and shall otherwise comply with
TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish or cause to be
furnished to the Trustee on or before each semiannual interest payment date and at such other times
as the Trustee may request in writing a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders, and the Company shall otherwise
comply with TIA § 312(a).

SECTION 2.06. Transfer and Exchange.

     Subject to Sections 2.12 and 2.13, when a Security is presented to the Registrar or a
co-registrar with a request to register a transfer, the Registrar shall register the transfer as
requested if the requirements of the Registrar are met. Subject to Sections 2.12 and 2.13, when
Securities are presented to the Registrar or a co-registrar with a request to exchange them for an
equal principal amount of Securities of other denominations, the Registrar shall make the exchange
as requested if the requirements of the Registrar are met. The Company shall cooperate with the
Registrar in meeting its requirements. To permit registrations of transfers and exchanges, the
Trustee shall authenticate Securities at the Registrar’s request. The Company or the Trustee may
charge a reasonable fee for any registration of transfer or exchange and may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto, but not for any exchange pursuant to Sections 2.09, 4.08 or 9.05.

SECTION 2.07. Replacement Securities.

     If a mutilated Security is surrendered to the Trustee or if the Holder of a Security claims
that the Security has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Security if the requirements of the Trustee are met. An
indemnity bond may be required by the Trustee or the Company that is sufficient in the judgment of
the Company and the Trustee to protect the Company, the Trustee or any Agent from any loss which
any of them may suffer if a Security is replaced. The Company or the Trustee may charge for its
expenses in replacing a Security.

     In case any such mutilated, destroyed, lost or wrongfully taken Security has become or is
about to become due and payable, or is about to be purchased by the Company pursuant to

 

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Section 4.08 hereof, the Company in its discretion may, instead of issuing a new Security, pay or
purchase such Security, as the case may be.

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

SECTION 2.08. Outstanding Securities.

     Securities outstanding at any time are all Securities authenticated by the Trustee except for
those cancelled by it, those delivered to it for cancellation and those described in this Section
2.08 as not outstanding. Subject to Section 10.06, a Security does not cease to be outstanding
because the Company or one of its Subsidiaries or Affiliates holds the Security.

     If a Security is replaced or paid pursuant to Section 2.07, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced or paid Security is held by a
protected purchaser.

     If any Paying Agent (other than the Company or a Subsidiary) holds on a redempton date or the
maturity date of the Securities money received by the Paying Agent pursuant to this Indenture and
sufficient to pay the principal and interest on Securities payable on that date, then on and after
that date such Securities cease to be outstanding and interest on them ceases to accrue.

SECTION 2.09. Temporary Securities.

     Until definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Securities in exchange for temporary Securities surrendered to it.

 

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SECTION 2.10. Cancellation.

     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and Paying Agent shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all Securities
surrendered for registration of transfer, exchange, payment or cancellation and shall dispose of
cancelled Securities in accordance with its customary procedures unless the Company directs in
writing their return to the Company. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation.

SECTION 2.11. Defaulted Interest.

     If the Company defaults in a payment of interest on the Securities, it shall pay the defaulted
interest plus any interest payable on the defaulted interest to the Persons who are Securityholders
on a subsequent special record date. The Company shall fix the record date and payment date. At
least 10 days before the record date, the Company shall mail to each Securityholder a notice that
states the record date, the payment date, and the amount of defaulted interest to be paid. The
Company may pay defaulted interest in any other lawful manner.

SECTION 2.12. Book-Entry Provisions for Global Securities.

     The Initial Securities initially shall be represented by one or more Securities in registered,
global form without interest coupons (collectively, the “Global Securities”). All Global
Securities shall bear the Global Security Legend. The Global Securities initially shall (i) be
registered in the name of the Depository or the nominee of the Depository, in each case for credit
to an account of an Agent Member, and (ii) be delivered to the Trustee as custodian for the
Depository.

     Members of, or direct or indirect participants in, the Depository (“Agent Members”) shall have
no rights under this Indenture with respect to any Global Security held on their behalf by the
Depository or under the Global Securities. The Depository may be treated by the Company, the
Trustee and any agent of the Company or the Trustee 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 or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depository or impair, as between the
Depository and its Agent Members, the operation of customary practices governing the exercise of
the rights of a Holder of any Security.

     (a) Transfers of Global Securities shall be limited to transfers in whole, but not in part, to
the Depository, its successors or their respective nominees. Interests of beneficial owners in the
Global Securities may be transferred or exchanged for Physical Securities only in accordance with
the applicable rules and procedures of the Depository and the provisions of Section 2.13. In
addition, a Global Security shall be exchangeable for Physical Securities only

 

-13-

if (i) the Depository (x) notifies the Company that it is unwilling or unable to continue as
depository for such Global Security or (y) has ceased to be a clearing agency registered under the
Exchange Act, and in either case the Company fails to appoint a successor depositary within 90 days
of such notice or of the Company’s becoming aware of such cessation, (ii) the Company, at its
option and subject to the procedures of the Depository, notifies the Trustee in writing that it is
electing to issue Physical Securities or (iii) there shall have occurred and be continuing an Event
of Default with respect to such Global Security. In all cases, Physical 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 Depository in accordance
with its customary procedures. Neither the Company nor the Trustee shall be liable for any delay
by the Depository in providing such registration information and the Company and the Trustee may
conclusively rely on instructions from the Depository as to such registration information. In the
event that a Physical Security is to be authenticated pursuant to this clause (a), the Company will
promptly make available to the Trustee, a reasonable supply of Physical Securities in definitive,
fully registered form, without interest coupons, unless such a supply has previously been made
available to the Trustee.

     (b) In connection with the transfer of a Global Security as an entirety to beneficial owners
pursuant to subsection (a) of this Section 2.12, such Global Security shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall
authenticate and deliver, to each beneficial owner identified by the Depository in writing in
exchange for its beneficial interest in such Global Security, an equal aggregate principal amount
of Physical Securities of authorized denominations.

     (c) 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. None of the
Company, the Trustee, any Paying Agent or the Registrar will have any responsibility or liability
for any aspect of the records relating to or payments made on account of beneficial ownership
interests in a Global Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests.

SECTION 2.13. Transfer and Exchange of Securities.

     (a) Transfer and Exchange of Global Securities. A Global Security may not be transferred as a
whole except as set forth in Section 2.12(a). Global Securities shall not be exchanged by the
Company for Physical Securities except under the circumstances described in Section 2.13(c).
Global Securities may be exchanged or replaced, in whole or in part, as provided in Sections 2.07
and 2.09. Beneficial interests in a Global Security may be transferred and exchanged as provided
in Section 2.13(b) or 2.13(c) below.

     (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

 

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the Depository, in accordance with the provisions of this Indenture and the applicable rules
and procedures of the Depository. Beneficial interests in Global Securities shall be transferred
or exchanged only for beneficial interests in Global Securities, except as provided in Section
2.12(a). Transfers and exchanges of beneficial interests in the Global Securities also shall
require compliance with either subparagraph (i) or (ii) below, as applicable:

     (i) Transfer of Beneficial Interests in the Same Global Security. A beneficial
interest in a Global Security may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in such Global Security. No written orders or instructions
shall be required to be delivered to the Registrar to effect the transfers described in this
Section 2.13(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 are not subject to Section 2.13(b)(i), the transferor of such beneficial
interest must deliver to the Registrar (1) a written order from an Agent Member given to the
Depository in accordance with the applicable rules and procedures of the Depository
directing the Depository 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
Depository containing information regarding the Agent Member account to be credited with
such increase. Upon satisfaction of all of the requirements for transfer or exchange of
beneficial interests in Global Securities contained in this Indenture and the Securities or
otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount
of the relevant Global Security or Global Securities pursuant to Section 2.13(f).

          (c) Transfer and Exchange of Beneficial Interests in Global Securities for Physical
Securities. A beneficial interest in a Global Security may not be exchanged for a Physical
Security except under the circumstances described in Section 2.12(a). A beneficial interest in a
Global Security may not be transferred to a Person who takes delivery thereof in the form of a
Physical Security except under the circumstances described in Section 2.12(a).

          (d) Transfer and Exchange of Physical Securities for Beneficial Interests in Global
Securities. A Holder of a Physical Security may exchange such Physical Security for a beneficial
interest in a Global Security or transfer such Physical Security to a Person who takes delivery
thereof in the form of a beneficial interest in a Global Security at any time. Upon receipt of a
request for such an exchange or transfer, the Trustee shall cancel the applicable Physical Security
and increase or cause to be increased the aggregate principal amount of one of the Global
Securities. If any such transfer or exchange is effected pursuant to this paragraph (d) at a time
when a Global Security has not yet been issued, the Company shall issue and, upon receipt of a
written order of the Company in accordance with Section 2.02, the Trustee shall authenticate

 

 

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one or
more Global Securities in an aggregate principal amount equal to the aggregate principal amount of
Physical Securities transferred or exchanged pursuant to this paragraph (d).

          (e) Transfer and Exchange of Physical Securities for Physical Securities. Upon request by a
Holder of Physical Securities, the Registrar shall register the transfer or exchange of Physical
Securities. Prior to such registration of transfer or exchange, the requesting Holder shall
present or surrender to the Registrar the Physical Securities duly endorsed or accompanied by a
written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder
or by its attorney, duly authorized in writing.

          (f) Cancellation and/or Adjustment of Global Securities. At such time as all beneficial
interests in a particular Global Security have been exchanged for Physical Securities or a
particular Global Security has been redeemed, repurchased or canceled in whole and not in part,
each such Global Security shall be returned to or retained and canceled by the Trustee in
accordance with Section 2.10. 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 Physical 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 Trustee or by the Depository at the
direction of the Trustee to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial
interest in another Global Security, such other Global Security shall be increased accordingly and
an endorsement shall be made on such Global Security by the Trustee or by the Depository at the
direction of the Trustee to reflect such increase.

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

          (h) The Trustee and the Registrar shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Security (including any
transfers between or among Depository 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.

          The Registrar shall retain for a period of two years copies of all letters, notices and other
written communications received pursuant to Section 2.12 or this Section 2.13. The

 

 

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Company 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 notice to the Registrar.

SECTION 2.14. Issuance of Additional Securities.

          The Company shall be entitled to issue Additional Securities under this Indenture which shall
have identical terms as the Initial Securities issued on the Issue Date, other than with
respect to the date of issuance, issue price, and amount of interest payable on the first
payment date applicable thereto; provided that such issuance is not prohibited by Section 4.09.
The Initial Securities issued on the Issue Date and any Additional Securities shall be treated as a
single class for all purposes under this Indenture.

          With respect to any Additional Securities, the Company shall set forth in a resolution of its
Board of Directors and in a Company Request, a copy of each of which shall be delivered to the
Trustee, the following information:

     (1) the aggregate principal amount of such Additional Securities to be authenticated
and delivered pursuant to this Indenture;

     (2) the issue price, the issue date and the CUSIP number of such Additional Securities
and the amount of interest payable on the first payment date applicable thereto;
provided, however, that no Additional Securities may be issued at a price
that would cause such Additional Securities to have “original issue discount” within the
meaning of Section 1273 of the Internal Revenue Code of 1986, as amended; and

     (3) any and all other terms of issuance with respect to such Additional Securities,
including any terms which the Board of Directors deems appropriate.

ARTICLE THREE

REDEMPTION

SECTION 3.01. Notices to Trustee.

               If the Company elects to redeem Securities pursuant to the optional redemption provisions of
Section 3.07 hereof, it shall furnish to the Trustee, at least 45 days (unless a shorter notice
shall be agreed to by the Trustee) but not more than 60 days before a redemption date, an Officers’
Certificate complying with the applicable provisions of Section 10.05 setting forth (i) the
redemption date, (ii) the principal amount of Securities to be redeemed and (iii) the redemption
price.

 

 

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SECTION 3.02. Selection of Securities to Be Redeemed.

          If less than all of the Securities are to be redeemed at any time, the Trustee shall select
the Securities to be redeemed among the Holders of the Securities on a pro rata basis, by lot or in
accordance with any other method the Trustee considers fair and appropriate. In the event of
partial redemption, the particular Securities to be redeemed shall be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee
from the outstanding Securities not previously called for redemption.

          The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Security selected for partial redemption, the principal amount
thereof to be redeemed. Securities and portions of Securities selected shall be
in amounts of $_,000 or whole multiples of $_,000; except that if all of the Securities of a
Holder are to be redeemed, the entire outstanding amount of Securities held by such Holder, even if
not a multiple of $_,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

SECTION 3.03. Notice of Redemption.

          At least 30 days but not more than 60 days before a redemption date, the Company shall mail or
cause to be mailed, by first class mail, a notice of redemption to each Holder whose Securities are
to be redeemed at its registered address, except that redemption notices may be mailed more than 60
days prior to a redemption date if the notice is issued in connection with a satisfaction or
discharge of this Indenture.

          The notice shall identify the Securities to be redeemed and shall state:

     (a) the redemption date;

     (b) the redemption price;

     (c) if any Security is being redeemed in part, the portion of the principal amount of
such Security to be redeemed and that, after the redemption date upon surrender of such
Security, a new Security or Securities in principal amount equal to the unredeemed portion
shall be issued upon cancellation of the original Security;

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

     (e) that Securities called for redemption must be surrendered to the Paying Agent to
collect the redemption price;

 

 

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     (f) that, unless the Company defaults in making such redemption payment, interest on
Securities called for redemption ceases to accrue on and after the redemption date; and

     (g) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Securities.

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company shall have delivered to the Trustee,
at least 45 days, or such shorter period allowed by the Trustee, prior to the redemption date, an
Officers’ Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in this Section 3.03.

SECTION 3.04. Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.03 hereof, Securities called
for redemption become irrevocably due and payable on the redemption date at the redemption price.
A notice of redemption may not be conditional.

SECTION 3.05. Deposit of Redemption Price.

          On or before 10:00 a.m. on any redemption date, the Company shall deposit with the Trustee or
with the Paying Agent money sufficient to pay the redemption price of and accrued interest on all
Securities to be redeemed on that date.

          If the Company complies with the provisions of the preceding paragraph, on and after the
redemption date, interest shall cease to accrue on the Securities or the portions of Securities
called for redemption. If a Security is redeemed on or after an interest record date but on or
prior to the related Interest Payment Date, then any accrued and unpaid interest shall be paid to
the Person in whose name such Security was registered at the close of business on such record date.
If any Security called for redemption shall not be so paid upon surrender for redemption because
of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the
unpaid principal from the redemption date until such principal is paid, and to the extent lawful on
any interest not paid on such unpaid principal, in each case at the rate provided in the Securities
and in Section 4.01 hereof.

SECTION 3.06. Securities Redeemed in Part.

          Upon surrender of a Security that is redeemed in part, the Company shall issue and, upon the
Company’s written request, the Trustee shall authenticate for the Holder at the expense of the
Company a new Security equal in principal amount to the unredeemed portion of the Security
surrendered.

 

 

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SECTION 3.07. Optional Redemption.

          (a) The Securities will not be redeemable at the option of the Company prior to                     ,
20___. Starting on                     , 20___, the Company may redeem all or a portion of the Securities upon
giving the required notice under this Indenture. The Securities may be redeemed at the redemption
prices (expressed in percentages of principal amount on the redemption date) set forth below, plus
accrued and unpaid interest to the applicable redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant interest payment date),
if redeemed during the 12-month period commencing on                      of the years set forth below:

	 	 	 	 	 
	 	 	Redemption
	Period	 	Price
	20__
	 	 	—	%
	20__
	 	 	—	%
	20__
	 	 	—	%
	20__ and thereafter
	 	 	—	%

          (b) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

ARTICLE FOUR

COVENANTS

SECTION 4.01. Payment of Securities.

          The Company shall pay the principal of and interest, if any, on the Securities on the dates
and in the manner provided in the Securities. An installment of principal or interest shall be
considered paid on the date it is due if the Trustee or Paying Agent holds such installment in
immediately available funds at 9:00 A.M., New York City time, on the date such installment is due.
Principal and interest on Global Securities shall be payable to the Depository or its nominee, as
the case may be, as the sole registered owner and the sole Holder of the Securities represented
thereby.

          The Company shall pay interest on overdue principal at the rate borne by the Securities; it
shall pay interest on overdue installments of interest at the same rate to the extent lawful.

 

 

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SECTION 4.02. SEC Reports.

          (a) The Company shall file with the Trustee within 15 days after it files them with the SEC
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 SEC may by rules and regulations prescribe) which the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If
the Company is not subject to the requirements of such Section 13 or 15(d) of the Exchange Act, the
Company shall continue to file with the Trustee on the same timely basis such reports, information
and other documents as it would file if it were subject to the requirements of Section 13 or 15(d)
of the Exchange Act. The Company also shall comply with the other provisions of TIA § 314(a).

          (b) So long as any of the Securities remain outstanding, the Company shall cause each annual,
quarterly and other financial report mailed or otherwise furnished by it generally to stockholders
to be filed with the Trustee and mailed to the Holders at their addresses appearing in the register
of Securities maintained by the Registrar, in each case at the time of such mailing or furnishing
to stockholders. If the Company is not required to furnish annual or quarterly reports to its
stockholders pursuant to the Exchange Act, the Company shall cause its financial statements,
including any notes thereto and, with respect to annual reports, an auditors’ report by an
accounting firm of established national reputation and a “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” comparable to that which would have been required
to appear in annual or quarterly reports filed under Section 13 or 15(d) of the Exchange Act, to be
so filed with the Trustee within 120 days after the end of each of the Company’s fiscal years and
within 60 days after the end of each of the first three quarters of each such fiscal year and,
after the date such reports are so required to be filed with the Trustee, to be furnished to any
Holder upon such Holder’s request.

          (c) The Company shall provide the Trustee with a sufficient number of copies of all reports
and other documents and information that the Trustee may be required to
deliver to Securityholders under this Section 4.02. Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s receipt of such
reports shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s compliance with any of its
covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’
Certificates).

SECTION 4.03. Compliance Certificate.

          The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of
the Company (which as of the Issue Date is December 31) an Officers’ Certificate stating whether or
not the signers know of any Default or Event of Default. If they do know of such a Default or
Event of Default, the certificate shall describe the Default or Event of Default and efforts to
remedy the same. The Company shall notify the Trustee within 10 days following

 

 

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the occurrence
thereof of any acceleration which is an Event of Default within the meaning of Section 6.01(4).

SECTION 4.04. Maintenance of Office or Agency.

          The Company will maintain in the Borough of Manhattan, The City of New York, an office or
agency where Securities may be surrendered for registration of transfer or exchange or for
presentation for payment and where notices and demands to or upon the Company in respect of the
Securities 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 address of the Trustee set forth in Section 10.02.

          The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan,
The City of New York, 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 4.05. Corporate Existence.

          Subject to Article Four, 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 corporate, partnership
or other existence of each Material Subsidiary in accordance with the respective organizational
documents of each Material Subsidiary and the rights (charter and statutory) and material
franchises of the Company and the Material Subsidiaries; provided that the Company shall not be
required to preserve any such right or franchise, or the corporate existence of any Material
Subsidiary, if the Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss thereof is not, and will
not be, adverse in any material respect to the Holders.

SECTION 4.06. Waiver of Stay, Extension or Usury Laws.

          The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay
or extension law or any usury law or other law, which would prohibit or forgive the Company from
paying all or any portion of the principal of and/or interest on the Securities as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants
or the performance of this Indenture; and (to the extent that it may lawfully do so) the Company
hereby expressly waives all benefit or advantage of any such law, and

 

 

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covenants that it will not
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been enacted.

SECTION 4.07. Transactions with Affiliates.

          The Company shall not, and shall not permit any Subsidiary to, directly or indirectly, enter
into any transaction or series of related transactions with any Affiliate (other than with the
Company or a Wholly-Owned Subsidiary), including, without limitation, any loan, advance or
investment or any purchase, sale, lease or exchange of property or the rendering of any service,
unless such transaction or series of transactions is in good faith and at arm’s length and on terms
which are at least as favorable as those available in a comparable transaction from an unrelated
Person. Any such transaction that involves in excess of $                     shall be approved by a majority
of the Independent Directors on the Board of Directors of the Company; or, in the event that at the
time of any such transaction or series of related transactions there are no Independent Directors
serving on the Board of Directors of the Company, such transaction or series of related
transactions shall be approved by a nationally recognized expert with experience in appraising the
terms and conditions of the type of transaction for which approval is required.

SECTION 4.08. Change of Control.

          (a) In the event of any Change of Control, unless the Company has exercised its right to
redeem all of the Securities pursuant to Section 3.07, each Holder shall have the right, at such
Holder’s option, to require the Company to purchase all or any portion (in integral multiples of
$_,000) of such Holder’s Securities on the date (the “Change of Control Payment Date”) which is 20
business days after the date the Change of Control Notice as defined below is mailed (or such later
date as is required by applicable law) at ___% of the principal amount thereof, plus accrued
interest to the Change of Control Payment Date; provided that the Company shall not be obligated to
purchase any of such Securities unless Holders of at least 10% in principal amount of the
Securities outstanding at the Change of Control Payment Date (other than Securities held by the
Company and its Affiliates) shall have tendered their Securities for repurchase. In addition, in
the event of any Change of Control, the Company will not, and will not permit any Subsidiaries to,
purchase or redeem any Indebtedness ranking junior to the Securities pursuant to any analogous
provisions prior to the Change of Control Payment Date.

          (b) The Company or, at the written request and expense of the Company, the Trustee shall send,
by first-class mail, postage prepaid, to all Holders, within five business days
after the occurrence of each Change of Control, unless the Company has exercised its right to
redeem all of the Securities pursuant to Section 3.07, a notice of the occurrence of such Change of
Control (the “Change of Control Notice”) specifying a date by which a Holder must notify the
Company of such Holder’s intention to exercise the repurchase right and describing the procedure
that such Holder must follow to exercise such right. The Company shall promptly deliver

 

 

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a copy of
such notice to the Trustee and cause a copy of such notice to be published in a daily newspaper of
national circulation.

          Each Change of Control Notice shall state:

     (1) the Change of Control Payment Date;

     (2) the date by which the repurchase right must be exercised;

     (3) the price at which the repurchase is to be made, if the repurchase right is
exercised; and

     (4) a description of the procedure which the Holder must follow to exercise a
repurchase right.

          No failure of the Company to give the foregoing notice shall limit any Holder’s right to
exercise a repurchase right. The Company shall comply with all applicable Federal and state
securities laws in connection with each Change of Control Notice.

          (c) To exercise the repurchase right, the Holder shall deliver, on or before the fifth
calendar day prior to the Change of Control Payment Date, written notice to the Company (or an
agent designated by the Company for such purpose) of the Holder’s exercise of such right, together
with (i) the Security or Securities with respect to which the right is being exercised, duly
endorsed for transfer, with the form entitled “Option of Holder to Elect Purchase” on the reverse
of the Security completed, and (ii) if the Change of Control Payment Date falls between any record
date for the payment of interest on the Securities and the next succeeding interest payment date,
an amount equal to the interest which the Holder is entitled to receive on such interest payment
date.

          (d) Payment of the repurchase price of the Security or Securities with respect to which the
repurchase right is exercised shall be deposited by the Company in immediately available funds by
9:00 A.M., New York City time on the Change of Control Payment Date.

          (e) A “Change of Control” shall be deemed to occur if (i) the Company has any other
Indebtedness outstanding (other than Indebtedness under a bank credit agreement or similar bank
financing) which provides for a Change of Control (as defined in the instrument governing such
Indebtedness) if Ian M. Cumming or Joseph S. Steinberg ceases to beneficially own, in the
aggregate, a certain percentage of the outstanding Common Shares, which percentage ownership
requirement is in excess of 10%, and a Change of Control (as defined in the instrument governing
such Indebtedness) occurs under such Indebtedness or (ii) at any time when the Company does not
have any other Indebtedness outstanding of the type referred to in clause (i), Ian M. Cumming or
Joseph S. Steinberg, individually or in the aggregate, sells, transfers or otherwise disposes of (a
“Disposition”), after the date hereof, Common Shares so
that, after giving

 

 

-24-

effect thereto, the sole beneficial ownership of outstanding Common Shares
by Mr. Cumming and/or Mr. Steinberg would, in the aggregate, fall below 10% of the then outstanding
Common Shares; provided, that no Change of Control shall be deemed to have occurred under clause
(ii) if the Securities are rated by both Moody’s and S&P as Investment Grade both at the time of
such Disposition and for a period of 90 days from the date of such Disposition (it being understood
that, with respect to the foregoing proviso, a Change of Control shall be deemed to occur on the
first date during such 90-day period when the Securities are no longer rated as Investment Grade by
Moody’s and S&P). The term “Common Shares” shall include any securities issued as dividends or
distributions on the Common Shares. For purposes hereof, “sole beneficial ownership” of Common
Shares shall be deemed to include (i) all Common Shares received after June 15, 1992 from Mr.
Cumming or Mr. Steinberg by any member of their respective immediate families or by any trust for
the benefit of either of them or any member of their respective immediate families (a “Recipient”),
which Common Shares remain held by a Recipient during the lifetime of Mr. Cumming or Mr. Steinberg
(unless sold, transferred or disposed of by such Recipient during the lifetime of Mr. Cumming or
Mr. Steinberg, as the case may be, in which case such Disposition by such Recipient shall
constitute a Disposition by Mr. Cumming or Mr. Steinberg, as the case may be) and (ii) after the
death of Mr. Cumming and/or Mr. Steinberg, all Common Shares owned as of the date of death by the
decedent, and any Recipient of the decedent, regardless of whether such Recipient continues to own
such Common Shares after the date of death. In determining the number of outstanding Common Shares
then held by Messrs. Cumming and Steinberg and the total number of outstanding Common Shares, there
shall be excluded Common Shares issued by the Company after December 31, 1991, or the conversion
into or exchange for, after December 31, 1991, Common Shares or securities convertible into or
exchangeable for Common Shares.

          (f) In the case of any Security which is to be purchased only in part the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such Security, without
service charge, a new Security or Securities, of any authorized denomination as requested by such
Holder in aggregate principal amount equal to, and in exchange for, the portion of the principal
amount of the Security which is not purchased.

			
	SECTION 4.09.	 	Limitation on Incurrence of Additional Indebtedness by the
Company and on the Incurrence of Additional Indebtedness and Issuance of
Preferred Stock by Its Subsidiaries.

          (a) The Company shall not, and shall not permit any Subsidiary to, create, incur, assume or
guarantee the payment of any Indebtedness, and shall not permit any of its Subsidiaries to issue
any Preferred Stock, if, at the time of such event and after giving effect thereto on a pro forma
basis, the Company’s ratio of Consolidated Debt to Consolidated Tangible Net Worth, as of the most
recent date for which consolidated financial statements are available and

 

 

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adjusted for the
incurrence of all Indebtedness and the issuance of all Preferred Stock by Subsidiaries (other than
Permitted Indebtedness) since that date, would be greater than ___ to 1.

          (b) Paragraph (a) of this Section 4.09 shall not preclude the incurrence of Permitted
Indebtedness.

SECTION 4.10. Limitation on Liens.

          (a) The Company will not, nor will it permit any Material Subsidiary to, (i) issue, assume or
guarantee any Indebtedness, if such Indebtedness is secured by a Lien upon, or (ii) directly or
indirectly secure any outstanding Indebtedness of the Company or any Material Subsidiary by a Lien
upon, any Principal Property now owned or hereafter acquired, without in any such case effectively
providing, concurrently with the issuance, assumption or guarantee of any such Indebtedness, or the
granting of security with respect to any such outstanding Indebtedness, that the Securities
(together with, if the Company shall so determine, any other Indebtedness of or guarantee by the
Company or any Material Subsidiary ranking equally with the Securities then existing or thereafter
created) shall be secured equally and ratably with (or prior to) such Indebtedness; provided,
however, that the foregoing restriction shall not apply to:

     (1) Liens on any Principal Property acquired after the Issue Date which are created or
assumed contemporaneously with, or within 90 days after, such acquisition solely for the
purpose of securing Indebtedness (including, but not limited to, deferred purchase price
obligations) representing, or incurred to finance, refinance or refund, the purchase price
or acquisition cost of the Principal Property subject thereto; provided that (a) the
principal amount of the Indebtedness secured by such Lien does not exceed 100% of such
purchase price or acquisition cost and (b) such Lien does not extend to or cover any
Principal Property other than such Principal Property and any improvements thereon or rights
appurtenant thereto acquired in such transaction;

     (2) Liens on any Principal Property acquired after the Issue Date existing at the time
such Principal Property is acquired;

     (3) Liens on any Principal Property or shares of stock or Indebtedness acquired from or
through a corporation which is merged with or into the Company or a Material Subsidiary;

     (4) Liens in favor of the Company or any Subsidiary;

     (5) Liens on any Principal Property in existence as of the Issue Date;

     (6) Liens on any Principal Property constituting unimproved real property constructed
or improved by the Company or any Material Subsidiary after the Issue Date which are created
or assumed contemporaneously with, or within 90 days after, such contruction

 

 

-26-

or improvement
solely for the purpose of securing Indebtedness (including, but not limited to, deferred
purchase price obligations) representing, or incurred to finance, refinance or refund, the
cost of such construction or improvement; provided that (a) the principal amount of the
Indebtedness secured by such Lien does not exceed 100% of such cost and (b) such Lien does
not extend to or cover any Principal Property other than such unimproved real property and
any improvements thereon or rights appurtenant thereto constructed or improved in such
transaction;

     (7) Liens in favor of, or required by, any governmental authority;

     (8) pledges or deposits securing Indebtedness incurred in connection with workers’
compensation, unemployment insurance and other social security legislation and deposits
securing Indebtedness to insurance carriers under insurance or self-insurance arrangements
or other pledges or deposits in the ordinary course of the insurance business of a Material
Subsidiary of the Company that is a licensed insurance company, including, without
limitation, those relating to the insurance or reinsurance operations of such Material
Subsidiaries and those relating to the requirement to create “separate accounts”;

     (9) Liens securing Indebtedness incurred in connection with taxes not yet due or which
are being contested in good faith by appropriate proceedings; provided that adequate
reserves with respect thereto are maintained on the books of the Company or its
Subsidiaries, as the case may be, in conformity with GAAP;

     (10) Liens securing any extension, renewal, substitution or replacement (or successive
extensions, renewals, substitutions or replacements) of Indebtedness of the Company or any
Material Subsidiary which is outstanding on March 31, 1993; provided, however, that the
principal amount of Indebtedness secured thereby shall not exceed the principal amount of
Indebtedness so secured at March 31, 1993; and

     (11) any extension, renewal, substitution or replacement (or successive extensions,
renewals, substitutions or replacements), in whole or in part, of any Lien referred to in
the foregoing clauses (1) through (10), inclusive; provided, however, that such extension,
renewal, substitution or replacement shall be limited to all or part of the Principal
Property which secured the Lien so extended, renewed, substituted or replaced (plus
improvements on such Principal Property).

          (b) Notwithstanding the provisions of subsection (a) of this Section 4.10, the Company or any
Material Subsidiary may (without equally and ratably securing the Securities) issue, assume or
guarantee secured Indebtedness which would otherwise be subject to the foregoing Lien restrictions
in an aggregate amount which, together with all other such secured Indebtedness of the Company and
its Material Subsidiaries (that is, not including secured Indebtedness of the Company and its
Material Subsidiaries permitted in accordance with Section 4.10(a)) and all Attributable Debt in
respect of Sale and Lease-Back Transactions existing at

 

 

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such time (other than Sale and Lease-Back
Transactions permitted in accordance with Section 4.11(a)), does not at the time exceed 15% of
total shareholders’ equity in the Company and its consolidated Subsidiaries, as shown on the
audited consolidated balance sheet contained in the latest annual report to shareholders of the
Company.

SECTION 4.11. Limitation on Sale and Lease-Back Transactions.

          (a) The Company will not, nor will it permit any Material Subsidiary to, enter into any Sale
and Lease-Back Transaction unless the proceeds of such sale or transfer are at least equal to the
fair value (as determined by the Board of Directors) of the Principal Property to be leased
pursuant to such Sale and Lease-Back Transaction and either (i) the Company or such Material
Subsidiary would be entitled to incur Indebtedness secured by a Lien on such Principal
Property permitted by Section 4.10, (ii) such Sale and Lease-Back Transaction is entered into
between or among the Company and a Subsidiary or between or among Subsidiaries, (iii) the lease in
such Sale and Lease-Back Transaction is for a period, including renewal rights, of not in excess of
three years, and the Company or such Material Subsidiary that is a party to such lease intends that
its use of such Principal Property will be discontinued on or before the expiration of such period,
or (iv) the Company covenants that it will apply, or cause such Material Subsidiary to apply, an
amount equal to the fair value (as determined by the Board of Directors) of the Principal Property
so leased to (1) the retirement (other than any mandatory retirement), within 60 days of the
effective date of any such Sale and Lease-Back Transaction, of Funded Debt of the Company or of
such Material Subsidiary or (2) the purchase of property that will constitute Principal Property.

          (b) Notwithstanding the provisions of the preceding paragraph (a), the Company or any Material
Subsidiary may enter into any Sale and Lease-Back Transaction which would otherwise be subject to
the foregoing restrictions if the amount of the Attributable Debt in respect of such Sale and
Lease-Back Transaction, together with all secured Indebtedness of the Company and its Material
Subsidiaries (other than secured Indebtedness of the Company and its Material Subsidiaries
permitted in accordance with Section 4.10(a)) and all other Attributable Debt in respect of Sale
and Lease-Back Transactions existing at such time (other than Sale and Lease-Back Transactions
permitted in accordance with Section 4.11(a)), does not at the time exceed 15% of total
shareholders’ equity in the Company and its consolidated Subsidiaries, as shown on the audited
consolidated balance sheet contained in the latest annual report to shareholders of the Company.

SECTION 4.12. Limitation on Funded Debt of Material Subsidiaries.

          (a) The Company will not permit any Material Subsidiary to (i) create, incur or assume any
Funded Debt other than (A) Funded Debt secured by a Lien on Principal Property which is permitted
under the provisions of Section 4.10, (B) Funded Debt owed to the Company or any Subsidiary, (C)
Funded Debt of a corporation which is merged with or into the Company or a Material Subsidiary, (D)
Funded Debt in existence as of the Issue Date, (E) Funded Debt

 

 

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created in connection with, or with
a view to, compliance by a Material Subsidiary with the requirements of any program adopted by any
federal, state or local governmental authority and applicable to such Material Subsidiary and
providing financial or tax benefits to such Material Subsidiary which are not available directly to
the Company and (F) Funded Debt that is Acquired Indebtedness; or (ii) guarantee, directly or
indirectly, through any arrangement which is substantially the equivalent of a guarantee, the
payment of any Funded Debt except for (A) guarantees in existence as of the Issue Date, (B)
guarantees which, as of the Issue Date, a Material Subsidiary is obligated to give, and (C)
guarantees of Funded Debt permitted under the provisions of subsection 4.12(a)(i).

          (b) Notwithstanding the provisions of subsection (a) of this Section 4.12, any Material
Subsidiary may create, incur, assume or guarantee the payment of Funded Debt in addition to that
permitted by subsection (a) of this Section 4.12, and extend, renew, substitute or replace, in
whole or in part, such Funded Debt; provided that at the time of such creation, incurrence,
assumption, guarantee, extension, renewal, substitution or replacement, and after
giving effect thereto, the aggregate principal amount of all Funded Debt of Material
Subsidiaries does not exceed 15% of Consolidated Tangible Net Worth.

ARTICLE FIVE

SUCCESSOR CORPORATION

SECTION 5.01. When Company May Merge, etc.

          The Company shall not consolidate or merge with or into, or sell, lease, convey or otherwise
dispose of all or substantially all of its assets (it being understood that a sale of less than 90%
of the Company’s total assets shall not be deemed a sale, lease, conveyance or disposition of
substantially all of the Company’s assets), in one transaction or a series of related transactions,
to any Person unless:

     (1) the Person formed by or surviving any such consolidation or merger (if other than
the Company), or to which such sale, lease, conveyance or other disposition shall have been
made, is a Person organized and existing under the laws of the United States, any state
thereof or the District of Columbia;

     (2) the Person formed by or surviving any such consolidation or merger (if other than
the Company), or to which such sale, lease, conveyance or other disposition shall have been
made, assumes by supplemental indenture in a form satisfactory to the Trustee all the
obligations of the Company under the Securities and this Indenture;

     (3) immediately before and immediately after such transaction no Default or Event of
Default exists; and

 

 

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     (4) the Company (if the surviving entity) or any Person formed by or surviving any such
consolidation or merger, or to which such sale, lease, conveyance or other disposition shall
have been made, shall immediately thereafter have a Consolidated Net Worth (after purchase
accounting adjustments) at least equal to the Consolidated Net Worth of the Company
immediately preceding such transaction.

          The Company shall deliver to the Trustee prior to the consummation of the proposed transaction
an Officers’ Certificate and an Opinion of Counsel stating that the proposed transaction and such
supplemental indenture, if any, comply with this Indenture.

SECTION 5.02. Successor Person Substituted.

          Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all
or substantially all of the assets of the Company in accordance with Section 5.01, the successor
Person formed by such consolidation or into which the Company is merged or to which such sale,
lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, the predecessor Person,
except in the case of a lease, shall be relieved of all covenants and obligations under this
Indenture and the Securities

ARTICLE SIX

DEFAULTS AND REMEDIES

SECTION 6.01. Events of Default.

     An “Event of Default” occurs if:

     (1) the Company defaults in the payment of interest on any Security when the same
becomes due and payable and such default continues for a period of 30 days;

     (2) the Company defaults in the payment of the principal of any Security when the same
becomes due and payable at maturity, upon redemption or repurchase or otherwise;

     (3) the Company fails to comply with any of its other agreements in the Securities or
this Indenture and such default continues for the period and after the notice specified
below;

     (4) (A) the Company or any Material Subsidiary defaults in the payment when due of
principal of, interest on, or other amounts payable in respect of any of its respective

 

 

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Indebtedness (other than the Securities) in the aggregate principal or like amount of
$                     or more, or (B) the Company or any Material Subsidiary fails to perform or
comply with any of its other agreements in respect of any of its respective Indebtedness
(other than the Securities) in the aggregate principal or like amount of $                     or more
and such Indebtedness shall be or shall have been declared to be due and payable immediately
and such acceleration shall not have been rescinded or annulled;

     (5) the Company or any Material Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

     (A) commences a voluntary case or proceeding,

     (B) consents to the entry of an order for relief against it in an involuntary
case or proceeding,

     (C) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or

     (D) makes a general assignment for the benefit of its creditors, or

     (6) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (A) is for relief (with respect to the petition commencing such case) against
the Company or any Material Subsidiary in an involuntary case or proceeding,

     (B) appoints a Custodian of the Company or any Material Subsidiary or for all
or substantially all of its respective property, or

     (C) orders the liquidation of the Company or any Material Subsidiary,

     and the order or decree remains unstayed and in effect for 60 days.

          The term “Bankruptcy Law” means Title 11, U.S. Code or any similar Federal or state law for
the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

          A Default under clause (3) of this Section 6.01 is not an Event of Default until the Trustee
or the Holders of at least 25% in principal amount of the Securities notify the Company and the
Trustee (if such notice is given by Holders) of the Default and the Company does not cure the
Default within 30 days after receipt of the notice. The notice must specify the Default, demand
that it be remedied and state that the notice is a “Notice of Default.”

 

 

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SECTION 6.02. Acceleration.

          If an Event of Default (other than an Event of Default with respect to the Company specified
in clause (5) or (6) of Section 6.01) occurs and is continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the Securities then
outstanding by notice to the Company and the Trustee, may declare the principal of, and the accrued
interest on, all of the Securities then outstanding due and payable immediately. Upon such
declaration such principal and interest shall be due and immediately payable.

          If an Event of Default with respect to the Company specified in clause (5) or (6) of Section
6.01 occurs, all unpaid principal of, and accrued interest on the Securities then outstanding shall
ipso facto become and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.

          Notwithstanding anything to the contrary in the preceding two paragraphs, the Holders of a
majority in principal amount of the Securities then outstanding by notice to the Trustee may
rescind an acceleration and its consequences if all existing Defaults of Events of Default have
been cured or waived (other than the non-payment of principal and interest due solely as a result
of such acceleration) and if the rescission would not conflict with any judgment or decree. When a
Default or Event of Default is cured or waived, it ceases to exist.

SECTION 6.03. Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of principal or interest
on the Securities or to enforce the performance of any provision of the Securities or this
Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair
the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy
is exclusive of any other remedy. All available remedies are cumulative.

SECTION 6.04. Waiver of Past Defaults.

          Subject to Sections 6.02, 6.07 and 9.02, the Holders of a majority in principal amount of the
Securities by notice to the Trustee may waive an existing Default or Event of Default and its
consequences, except a Default or Event of Default in payment of principal of, or interest on, any
Security.

 

 

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SECTION 6.05. Control by Majority.

          The Holders of a majority in principal amount of the Securities may direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee or exercising any
trust or power conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture, that is unduly prejudicial to the rights of another
Securityholder, as such, or that would involve the Trustee in personal liability; provided, that
the Trustee may take any other action deemed proper by it which is not inconsistent with such
direction.

SECTION 6.06. Limitation on Remedies.

          Except as provided in Section 6.07, a Securityholder may not pursue any remedy with respect to
this Indenture or the Securities unless:

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

     (2) the Holders of at least 25% in principal amount of the Securities make a written
request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense;

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

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

          A Securityholder may not use this Indenture to prejudice the rights of another Securityholder
or to obtain a preference or priority over other Securityholders.

SECTION 6.07. Rights of Holders To Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
as set forth in this Indenture to receive payment of principal of and interest on the Security, on
or after the respective due dates expressed or provided for in the Security, or to bring suit for
the enforcement of any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

 

 

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SECTION 6.08. Collection Suit by Trustee.

          If an Event of Default in payment of interest or principal specified in Section 6.01(1) or (2)
occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal and interest remaining unpaid
and such further amounts as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation and expenses of the Trustee, its agents and counsel, and any
other amounts due to the Trustee under Section 7.07.

SECTION 6.09. Trustee May File Proofs of Claim.

          (a) The Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the Securityholders allowed
in any judicial proceedings relative to the Company, its creditors or its property and shall be
entitled and empowered 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 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 the Trustee any amount due
it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07.

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

SECTION 6.10. Priorities.

          If the Trustee collects any money pursuant to this Article Five, it shall pay out the money in
the following order:

     First: to the Trustee for amounts due under Section 7.07;

     Second: to Securityholders for amounts due and unpaid on the Securities for principal
and interest, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Securities for principal and interest, respectively; and

     Third: to the Company.

 

 

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          The Trustee may fix a record date and payment date for any payment to Securityholders pursuant
to this Section 6.10.

SECTION 6.11. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by Holders of more than 10% in
principal amount of the then outstanding Securities.

ARTICLE SEVEN

TRUSTEE

SECTION 7.01. Duties of Trustee.

          (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise its
rights and powers and use the same degree of care and skill in their exercise as a prudent person
would exercise or use under the circumstances in the conduct of his own affairs.

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

     (1) The Trustee need perform only those duties that are specifically set forth (or
incorporated by reference) in this Indenture and no others and no implied covenants or
obligations shall be read into this Indenture against the Trustee.

     (2) In the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine such certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

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

     (1) This paragraph (c) does not limit the effect of paragraph (b) of this Section.

 

 

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     (2) The Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.

     (3) The Trustee shall not be liable with respect to action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 6.05, and the
Trustee shall be entitled from time to time to request such a direction.

     (4) The Trustee shall be under no obligation and may refuse to perform any duty or
exercise any right or power unless it receives indemnity satisfactory to it against any
loss, liability or expense.

          (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

          (e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

SECTION 7.02. Rights of Trustee.

          Subject to Section 7.01:

     (a) The Trustee may conclusively rely on any document believed by it to be genuine and
to have been signed or presented by the proper person. The Trustee may rely on and shall be
protected in acting or refraining from acting upon any document believed by it to be genuine
and to have been signed or presented by the proper person. 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 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, to the extent reasonably required by such inquiry or investigation.

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

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

 

 

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

     (e) The permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty, and the Trustee shall not be answerable for other than its
negligence or willful misconduct.

     (f) The Trustee shall not be charged with notice or knowledge of any Default or Event
of Default, unless either (i) a Trust Officer shall have actual knowledge of such Default or
Event of Default or (ii) written notice of such Default or Event of Default shall have been
given to the Trustee by the Company or by any Holder of the Securities.

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

     (h) Except as otherwise specifically provided herein, (i) all references to the Trustee
shall be deemed to refer to the Trustee in its capacity as Trustee and, in connection with
any agency function, in its capacity as Agent, and (ii) every provision of this Indenture
relating to the conduct or affecting the liability or offering protection, immunity or
indemnity to the Trustee shall be deemed to apply with the same force and effect to the
Trustee acting in its capacity as Agent, in the case of subclauses (i) and (ii) of this
clause (h), and in respect to the Agent, as if no Event of Default had occurred and is
continuing.

SECTION 7.03. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Subsidiaries or Affiliates with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee must comply with Sections 7.10 and 7.11.

SECTION 7.04. Trustee’s Disclaimer.

          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities,
and it shall not be responsible for any statement in the Securities other than its certificate of
authentication.

 

 

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SECTION 7.05. Notice of Defaults.

          If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail to each Securityholder pursuant to Section 10.02 a notice of the Default within 90 days after
it occurs. Except in the case of a Default in any payment on any Security, the Trustee may
withhold the notice if and so long as a committee of its Trust Officers in good faith determines
that withholding the notice is in the interests of Securityholders.

SECTION 7.06. Reports by Trustee to Holders.

          Within 60 days after each                     , beginning with                     , 20___, the Trustee shall
mail to each Securityholder a brief report dated as of such                      that complies with TIA §
313(a), but only if such report is required in any year under TIA § 313(a). The Trustee also shall
comply with TIA §§ 313(b) and 313(c).

          A copy of each report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange on which the Securities are listed. The Company shall notify the
Trustee in writing if the Securities become listed on any national securities exchange or of any
delisting thereof.

SECTION 7.07. Compensation and Indemnity.

          The Company shall pay the Trustee from time to time reasonable compensation for its services
(which compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust). The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses, disbursements and advances incurred by it. Such expenses may
include the reasonable compensation and expenses of the Trustee’s agents and counsel.

          The Trustee shall not be under any obligation to institute any suit, or take any remedial
action under this Indenture, or to enter any appearance or in any way defend any suit in which it
may be a defendant, or to take any steps in the execution of the trusts created hereby or thereby
or in the enforcement of any rights and powers under this Indenture, until it shall be indemnified
to its satisfaction against any and all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture, including compensation for
services, costs, expenses, outlays, counsel fees and other disbursements, and against all liability
not due to its negligence or willful misconduct. The Company shall indemnify the Trustee against
any loss or liability incurred by it in connection with the acceptance or administration of the
trust and its duties hereunder as Trustee, Registrar and/or Paying Agent, including the costs and
expenses of defending itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity; however, unless the position of the Company
is prejudiced by such failure, the failure of the Trustee to

 

 

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promptly notify the Company shall not
limit its right to indemnification. The Company shall defend each such claim and the Trustee shall
cooperate in the defense. The Trustee may retain separate counsel and the Company shall reimburse
the Trustee for the reasonable fees and expenses of such counsel. The Company need not pay for any
settlement made without its consent.

          The Company need not reimburse any expense or indemnify against any loss or liability incurred
by the Trustee through negligence or willful misconduct.

          To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to that of the Holders of the Securities on all money or property held or
collected by the Trustee, except that held in trust to pay principal and interest on
particular Securities.

          Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee incurs expenses or renders services after the occurrence of any Event of Default specified
in Section 6.01(5) or (6), the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.

          The obligations of the Company under this Section 7.07 shall survive the resignation or
removal of the Trustee and the termination, satisfaction or discharge of this Indenture.

          The Trustee, in its capacity as Agent, shall be entitled to the benefits of this Section 7.07.

SECTION 7.08. Replacement of Trustee.

          The Trustee may resign by so notifying the Company. The Holders of a majority in principal
amount of the Securities may remove the Trustee by so notifying the Trustee in writing. The
Company may remove the Trustee if:

     (1) the Trustee fails to comply with Section 7.10;

     (2) the Trustee is adjudged a bankrupt or an insolvent;

     (3) a receiver or other public officer takes charge of the Trustee or its property; or

     (4) the Trustee becomes incapable of acting as Trustee hereunder.

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

 

 

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          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee, subject to the lien provided for in
Section 7.07, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.
A successor Trustee shall mail notice of its succession to each Securityholder.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of a majority in principal amount
of the Securities may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

          If the Trustee fails to comply with Section 7.10, any Securityholder who has been a bona fide
holder of a Security for at least six months may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee. Any successor Trustee shall
comply with TIA § 310(a)(5).

SECTION 7.09. Successor Trustee by Merger, etc.

          If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust assets to, another corporation or association, the successor corporation or
association without any further act shall be the successor Trustee; provided such corporation or
association shall be otherwise eligible and qualified under this Article Six.

SECTION 7.10. Eligibility; Disqualification.

          This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1).
The Trustee shall always have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition. If the Trustee has or shall acquire any
conflicting interest within the meaning of Section 310(b) of the TIA, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, the TIA and this Indenture. To the extent permitted by the TIA, the Trustee shall
not be deemed to have a conflicting interest with respect to the Securities by virtue of being a
trustee under the Indenture dated as of November 5, 2003, between the Company and The Bank of New
York (as successor to JPMorgan Chase Bank), as trustee., the Indenture dated as of March 6, 2007
between the Company and The Bank of New York, as Trustee, and the Indenture dated as of August ___,
2007 between the Company and The Bank of New York, as Trustee.

 

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SECTION 7.11. Preferential Collection of Claims Against Company.

          The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

ARTICLE EIGHT

DISCHARGE OF INDENTURE

SECTION 8.01. Termination of Company’s Obligations.

          The Company may terminate all of its obligations under the Securities and this Indenture if:

     (a) all Securities previously authenticated and delivered (other than destroyed, lost
or wrongfully taken Securities which have been replaced or paid or Securities for whose
payment money has theretofore been deposited with the Trustee or a Paying Agent by the
Company and thereafter repaid to the Company, as provided in Section 8.03) have been
delivered to the Trustee for cancellation and the Company has paid all sums payable by it
hereunder; or

     (b) all such Securities that have not been delivered to the Trustee for cancellation
(1) have become due and payable by reason of the giving of a notice of redemption or
otherwise or (2) will mature within one year or are to be called for redemption within one
year under arrangements satisfactory to the Trustee for giving the notice of redemption or
are to be repurchased on a Change of Control Payment Date within 30 days, and the Company
has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders immediately available funds sufficient or U.S.
Government Obligations which through the payment of the principal of and interest thereon
will be sufficient or a combination thereof sufficient, in the written opinion of a firm of
nationally recognized independent public accounts delivered to the Trustee in case U.S.
Government Obligations have been so deposited, to pay principal and interest on the
Securities to maturity, redemption or repurchase, as the case may be.

However, the Company’s obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 4.01, 4.04, 7.07 and
7.08 shall survive until the Securities are no longer outstanding. Thereafter the Company’s
obligations in Section 7.07 shall survive.

          Upon receipt, in the case of clause (a) or (b) above in this Section 8.01, by the Trustee of
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, the Trustee upon request of the Company executed by an Officer shall, at

 

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the expense of the
Company, acknowledge in writing the discharge of the Company’s obligations under the Securities and
this Indenture except for those surviving obligations specified above.

          In order to have money available on a payment date to pay principal or interest on the
Securities, the U.S. Government Obligations shall be payable as to principal or interest on or
before such payment date in such amounts as will provide the necessary money. U.S. Government
Obligations shall not be callable at the issuer’s option.

          The term “U.S. Government Obligations” means direct obligations of the United States for the
payment of which the full faith and credit of the United States is pledged.

SECTION 8.02. Application of Trust Money.

          The Trustee shall hold in trust money or U.S. Government Obligations (including the proceeds
thereby) deposited with it pursuant to Section 8.01. It shall apply the deposited money and the
money from U.S. Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal and interest on the Securities.

SECTION 8.03. Repayment to Company.

          The Trustee and the Paying Agent shall promptly pay to the Company upon request any excess
money or securities held by them at any time. The Trustee and the Paying Agent shall pay to the
Company upon request of the Company executed by an Officer any money held by them for the payment
of principal or interest that remains unclaimed for two years and thereafter, the Trustee and the
Paying Agent shall have no further liability with respect to such money; 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 of general circulation in The City
of New York or mail to each such Holder 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 or
mailing, any unclaimed balance of such money then remaining will be paid to the Company.

SECTION 8.04. Reinstatement, Indemnity.

          If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in
accordance with Section 8.01 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s obligations under this Indenture and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until such time
as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations
in accordance with Section 8.01; provided, however, that if the Company has made any payment of
interest on or principal of any Securities because of the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Securities to

 

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receive such payment
from the money or U.S. Government Obligations held by the Trustee or Paying Agent.

          The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to
Section 8.01 or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of outstanding Securities.

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01. Without Consent of Holders.

          Subject to Section 6.07, the Company, when authorized by a resolution of its Board of
Directors, and the Trustee may amend or supplement this Indenture or the Securities without notice
to or consent of any Securityholder:

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

     (2) to comply with Section 5.01;

     (3) to provide for uncertificated Securities in addition to certificated Securities;

     (4) to comply with any requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA; or

     (5) to provide for the issuance of Additional Securities in accordance with this
Indenture; or

     (6) to make any change that would provide any additional benefit or rights to the
Securityholders or that does not adversely affect the rights of any Securityholder.

SECTION 9.02. With Consent of Holders.

          Subject to Section 6.07, the Company, when authorized by a resolution of its Board of
Directors, and the Trustee may amend or supplement this Indenture or the Securities with the
written consent of the Holders of at least a majority in principal amount of the Securities then
outstanding, and the Holders of a majority in principal amount of the Securities may waive
compliance by the Company with any provision of this Indenture or the Securities. However, without
the consent of each Securityholder affected, an amendment, supplement or waiver, including a waiver
pursuant to Section 6.04, may not:

 

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     (1) reduce the amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

     (2) reduce the rate of or change or extend the time for payment of principal of or
interest on any Security;

     (3) reduce the principal of or change the fixed maturity of any Security or reduce the
premium payable upon the redemption thereof;

     (4) waive a default in the payment of the principal of or interest on any Security;

     (5) make any Security payable in money other than that stated in the Security; or

     (6) make any change in this Section, Section 6.04 or Section 6.07.

          Notwithstanding the above and Section 6.07, the Holders of a majority in principal amount of
the Securities then outstanding may waive compliance by the Company with Section 4.08 of this
Indenture.

          It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof. Any, waiver shall be deemed effective upon receipt by
the Trustee of the necessary consents and shall not require execution of any supplemental indenture
to be effective.

          After an amendment or waiver under this Section 9.02 becomes effective, the Company shall mail
to the Holders of each Security affected thereby, with a copy to the Trustee, a notice briefly
describing the amendment or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
waiver, consent or supplemental indenture. Except as otherwise provided in this Section 9.02, the
Holders of a majority in aggregate principal amount of the Securities then outstanding may waive
compliance in a particular instance by the Company with any provisions of this Indenture or the
Securities.

SECTION 9.03. Compliance with Trust Indenture Act.

          Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA
as then in effect.

 

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SECTION 9.04. Revocation and Effect of Consents.

          A consent to an amendment, supplement or waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder’s Security, even if notation of the consent is not made on any
Security. However, until an amendment or waiver becomes effective, any such Holder or subsequent
Holder may revoke the consent as to his Security or portion of a Security. For such revocation to
be effective, the Trustee must receive the notice of revocation before the date the amendment,
supplement or waiver becomes effective.

          After an amendment, supplement or waiver becomes effective, it shall bind every Securityholder
unless it makes a change described in any of clauses (1) through (6) of Section 9.02. In that case
the amendment, supplement or waiver shall bind each Holder of a Security who has consented to it
and every subsequent Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security.

SECTION 9.05. Notation on or Exchange of Securities.

          If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security about the changed terms and return it to the Holder. Alternatively, if
the Company or the Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.

SECTION 9.06. Trustee Protected.

          The Trustee shall sign any amendment or supplement or waiver authorized pursuant to this
Article Eight if the amendment or supplement or waiver does not adversely affect the rights of the
Trustee. If it does adversely affect the rights of the Trustee, the Trustee may but need not sign
it. In signing such amendment or supplement or waiver the Trustee shall be entitled to receive,
and (subject to Article Six) shall be fully protected in relying upon, in addition to the documents
required by Section 10.04, an Opinion of Counsel stating that such amendment or supplement or
waiver is authorized or permitted by and complies with this Indenture. The Company may not sign an
amendment or supplement until the Board of Directors approves it.

 

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ARTICLE TEN

MISCELLANEOUS

SECTION 10.01. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with another provision
which is required to be included in this Indenture by the TIA, the required provision shall
control.

SECTION 10.02. Notices.

          Any notice or communication shall be sufficiently given if in writing and delivered in person,
by facsimile or mailed by certified or registered mail (return receipt requested) addressed as
follows:

If to the Company:

Leucadia National Corporation

315 Park Avenue South

New York, New York 10010

Facsimile: (212) 598-4869

Attention: Secretary

With a copy to:

Weil, Gotshal & Manges llp

767 Fifth Avenue

New York, New York 10153

Facsimile: (212) 310-8007

Attention: Andrea A. Bernstein, Esq.

If to the Trustee:

The Bank of New York

101 Barclay Street - 8W

New York, NY 10286

Facsimile: 212-815-5704

Attention: Corporate Finance

 

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          The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

          Any notice or communication mailed to a Securityholder shall be mailed to him by first-class
mail at his address as it appears on the registration books of the Registrar and shall be
sufficiently given to him if so mailed within the time prescribed. 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.

          Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it.
If the Company mails notices or communications to Securityholders, it
shall mail a copy to the Trustee and each Agent at the same time. All notices or
communications shall be in writing.

SECTION 10.03. Communication by Holders with Other Holders.

          Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

SECTION 10.04. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the proposed action
have been complied with; and

     (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

SECTION 10.05. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than the Officers’ Certificate required by Section 4.03)
shall include:

 

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     (1) a statement that each person making such certificate or opinion has read such
covenant or condition;

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

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

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

SECTION 10.06. When Treasury Securities Disregarded.

          In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company or by any Affiliate
shall be disregarded, except that for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which a Trust
Officer of the Trustee knows are so owned shall be so disregarded.

SECTION 10.07. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or a meeting of Securityholders. The
Registrar or Paying Agent may make reasonable rules for its functions.

SECTION 10.08. Legal Holidays.

          If a payment date is a Legal Holiday at a place of payment, payment may be made at the place
on the next succeeding day that is not a Legal Holiday, without additional interest.

SECTION 10.09. Governing Law.

          The laws of the State of New York shall govern this Indenture and the Securities without
regard to principles of conflicts of laws.

SECTION 10.10. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

 

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SECTION 10.11. No Recourse Against Others.

          All liability described in paragraph 14 of the Securities of any director, officer, employee
or stockholder, as such, of the Company is waived and released.

SECTION 10.12. Successors.

          All agreements of the Company in this Indenture and the Securities shall bind its successor
permitted hereunder. All agreements of the Trustee in this Indenture shall bind its successor
permitted hereunder.

SECTION 10.13. Duplicate Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same instrument.

SECTION 10.14. Separability.

          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, and a Holder shall have no claim therefor against any
party hereto.

 

 

SIGNATURES

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

	 	 	 	 	 
	 	LEUCADIA NATIONAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1-1

 

EXHIBIT A

[Form of Security]

[Insert Global Security Legend, if applicable]

___% SENIOR NOTE DUE                     , 20___

			
	 	 	 
	No.
	 	$

CUSIP:          

LEUCADIA NATIONAL CORPORATION

(a New York corporation)

promises to pay to                      or registered assigns the principal amount of                     
                                         Dollars on                     , 20     [or such other principal amount as shall be set
forth on Exhibit A hereto.]*

          Interest Payment Dates:                      and                     

          Record Dates:                      and                     , whether or not business day.

Dated:

	 	 	 	 	 
	 

	 	 	 	LEUCADIA NATIONAL CORPORATION
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	 

Secretary

	 	 	 	 

 

			
	*	 	Insert in Global Securities only

A-1

 

Certificate of Authentication

This is one of the Securities

referred to in the within-mentioned

Indenture.

	 	 	 	 	 
	THE BANK OF NEW YORK, as Trustee	 	 
	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-2

 

LEUCADIA NATIONAL CORPORATION

___% Senior Note Due                     , 20___

(i) Interest.

          Leucadia National Corporation (the “Company”) promises to pay interest on the principal amount
of this Security at the rate per annum shown above. The Company will pay interest semiannually on
                     and                      of each year, commencing                     , 20___. Interest on the
Securities will accrue from the most recent date to which interest has been paid (or, if no
interest has been paid, from                     , 20___). Interest will 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 per annum shown above and shall pay interest on overdue installments of interest at the same
rate to the extent lawful.

(ii) Method of Payment.

          The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on                      or                     ,
whether or not a business day, next preceding the interest payment date even though Securities are
cancelled after the record date and on or before the interest payment date. Holders must surrender
Securities to a Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. However, the Company may pay interest by check payable in such money.
It may mail an interest check to a Holder’s registered address.

(iii) Paying Agent and Registrar.

          The Bank of New York (the “Trustee”) will act as Paying Agent and Registrar. The Company may
change any Paying Agent, Registrar or co-registrar without prior notice. The Company or any of its
Subsidiaries (as defined in the Indenture) may act in any such capacity.

     (iv) Indenture.

          The Company issued the Securities under an Indenture dated as of                     , 20___ (the
“Indenture”) between the Company and 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. Code §§ 77aaa-77bbbb) as in effect on the date of the Indenture. The Securities are
subject to all such terms and Securityholders are referred to the Indenture and the TIA for a
statement of such terms. The Securities are general unsecured obligations of the Company. Subject
to Section 4.09 of the Indenture, the Indenture does not limit the principal amount of Securities
which may be issued thereunder.

A-3

 

1. Redemption.

          The Securities will not be redeemable at the option of the Company prior to                     ,
20___. Starting on                     , 20___, the Company may redeem all or a portion of the Securities
upon giving the required notice under the Indenture. The Securities may be redeemed at the
redemption prices (expressed in percentages of principal amount on the redemption date) set forth
below, plus accrued and unpaid interest to the applicable redemption date (subject to the right of
Holders of record on the relevant record date to receive interest due on the relevant interest
payment date), if redeemed during the 12-month period commencing on                      of the years set
forth below:

	 	 	 	 	 
	 	 	Redemption	 
	Period	 	Price	 
	20__
	 	 	                    	%
	20__
	 	 	                    	%
	20__
	 	 	                    	%
	20__ and thereafter
	 	 	                    	%

          Upon surrender of a Security that is redeemed in part, the Company shall issue and, upon the
Company’s written request, the Trustee shall authenticate for the Holder at the expense of the
Company a new Security equal in principal amount to the unredeemed portion of the Security
surrendered.

          Any redemption pursuant to this Paragraph 5 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 of the Indenture.

(v) Change of Control.

          In the event of a Change of Control of the Company, each Holder shall have the right, at such
Holder’s option, to require the Company to repurchase all or any portion of such Holder’s
Securities (in integral multiples of $_,000), at ___% of the principal amount thereof, plus accrued
interest to the date of purchase.

(vi) Restrictive Covenants.

          The Indenture imposes certain limitations on, among other things, the ability of the Company
to merge or consolidate with any other Person or sell, lease or otherwise transfer all or
substantially all of its properties or assets, the ability of the Company and the Subsidiaries to
incur additional Indebtedness and to enter into certain transactions with Affiliates, the ability
of the Company and its Material Subsidiaries to create certain liens and enter into certain
sale-leaseback transactions, and the ability of the Material Subsidiaries of the Company to incur
certain Indebtedness, in each case subject to certain limitations described in the Indenture.

A-4

 

(vii) Denominations, Transfer, Exchange.

          The Securities are in registered form without coupons in denominations of $_,000 and whole
multiples of $_,000. A Holder may transfer or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not register any transfer or exchange of Securities selected for
redemption. Also, it need not register any transfer or exchange of Securities for a period of 30
days before a selection of Securities is to be redeemed.

(viii) Persons Deemed Owners.

          Subject to the record date provisions hereof, the registered Holder of a Security may be
treated as the owner of it for all purposes and neither the Company, the Trustee nor any Agent
shall be affected by notice to the contrary.

(ix) Unclaimed Money.

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent will pay the money back to the Company at its request. After that, Securityholders
entitled to the money must look to the Company for payment unless an abandoned property law
designates another person.

(x) Amendment, Supplement, Waiver.

          Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of the Securities, and
any past default or noncompliance with any provision may be waived with the consent of the Holders
of a majority in principal amount of the Securities. Without the consent of any Securityholder,
the Company may amend or supplement the Indenture or the Securities to cure any ambiguity, defect
or inconsistency or to provide for uncertificated Securities in addition to certificated Securities
or to make any change that does not adversely affect the rights of any Securityholder.

(xi) Successor Corporation.

          When a successor Person assumes all the obligations of its predecessor under the Securities
and the Indenture, the predecessor Person, except in the case of a lease, will be released from
those obligations.

(xii) Defaults and Remedies.

          The terms of the Securities include the Events of Default as set forth in Section 6.01 of the
Indenture. Subject to certain limitations in the Indenture, if an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of
the

A-5

 

then outstanding Securities may declare all the Securities to be due and payable immediately,
except that in the case of an Event of Default arising from certain events of bankruptcy,
insolvency or reorganization relating to the Company, all outstanding Securities shall become due
and payable immediately without further action or notice. Holders may not enforce the Indenture or
the Securities except as provided in the Indenture. The Trustee may require indemnity satisfactory
to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders
of a majority in principal amount of the then outstanding Securities may direct the Trustee in its
exercise of any trust or power. The Company must furnish annual compliance certificates to the
Trustee.

(xiii) Trustee Dealings with Company.

          The Bank of New York, the Trustee under the Indenture, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Company or its
Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

(xiv) No Recourse Against Others.

          A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each Securityholder by
accepting a Security waives and releases all such liability. The waiver and release are part of
the consideration for the issue of the Securities.

(xv) Authentication.

          This Security shall not be valid until the Trustee or an authenticating agent signs the
certificate of authentication on the other side of this Security.

(xvi) Abbreviations.

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

          The Company will furnish to any Securityholder upon written request and without charge a copy
of the Indenture. Requests may be made to: Secretary, Leucadia National Corporation, 315 Park
Avenue South, New York, New York 10010.

A-6

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

 

 

(Insert assignee’s soc. sec. or tax ID no.)

 

 

 

 

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

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

	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	Your Signature:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Sign exactly as your name appears on the other side of this Security)
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

A-7

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company pursuant to Section 4.08
of the Indenture, check the box:

Section 4.08 [       ]

          If you want to have only part of this Security purchased by the Company pursuant to Section
4.08 of the Indenture, state the amount (in integral multiples of $_,000):

$

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	 	 	Signature:	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	(Sign exactly as your name appears on the other side of this Security)

	 
	 	 	 	 	 	 	 	 	Taxpayer ID No. 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Signature Guarantee:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

A-8

 

Exhibit A

SCHEDULE OF TRANSFERS AND EXCHANGES*

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of this	 	 	Signature of	 
	 	 	Amount of Decrease in	 	 	Amount of Increase in	 	 	Global Security	 	 	Authorized	 
	Date of	 	Principal Amount of	 	 	Principal Amount of	 	 	following such Decrease	 	 	Signatory of trustee	 
	Exchange	 	this Global Security	 	 	this Global Security	 	 	or Increase	 	 	or Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	Insert in Global Securities only

A-9

 

EXHIBIT B

[Form of Global Security Legend]

          Any Global Security authenticated and delivered hereunder shall bear a legend (which would be
in addition to any other legends required) in substantially the following form:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS NOT
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS
NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE
DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR 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.

B-1EX-4.3

 

Exhibit 4.3

 

LEUCADIA NATIONAL CORPORATION

and

HSBC BANK USA, as Trustee

 

INDENTURE

Dated as of                     , 20__

 

___% Convertible Senior Subordinated Notes due 20__

 

 

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA Section	 	Indenture Section
	310(a)(1)
	 	6.10
	 (a)(2)
	 	6.10
	 (a)(3)
	 	N.A.
	 (a)(4)
	 	N.A.
	 (a)(5)
	 	6.08
	 (b)
	 	6.08; 6.10
	 (c)
	 	N.A.
	311(a)
	 	6.11
	 (b)
	 	6.11
	 (c)
	 	N.A.
	312(a)
	 	2.05
	 (b)
	 	11.03
	 (c)
	 	11.03
	313(a)
	 	6.06
	 (b)(1)
	 	N.A.
	 (b)(2)
	 	6.06
	 (c)
	 	6.06; 11.02
	 (d)
	 	6.06
	314(a)
	 	3.02; 3.03; 11.02
	 (b)
	 	N.A.
	 (c)(1)
	 	11.04
	 (c)(2)
	 	11.04
	 (c)(3)
	 	N.A.
	 (d)
	 	N.A.
	 (e)
	 	11.05
	 (f)
	 	N.A.
	315(a)
	 	6.01(b)
	 (b)
	 	6.05; 11.02
	 (c)
	 	6.01(a)
	 (d)
	 	6.01(c)
	 (e)
	 	5.11
	316(a)(last sentence)
	 	11.06
	 (a)(1)(A)
	 	5.05
	 (a)(1)(B)
	 	5.02; 5.04; 8.02
	 (a)(2)
	 	N.A.
	 (b)
	 	5.07
	317(a)(1)
	 	5.08
	 (a)(2)
	 	5.09
	 (b)
	 	2.04
	318(a)
	 	11.01

 

			
	

N.A. means Not Applicable.
	 
	NOTE:	 	This Cross-Reference Table shall not, for any purpose, be
deemed to be part of this Indenture.

 -i-

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE ONE

	 	 	 	 	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE

	 	 	 	 	 
	 	 	 	 
	SECTION 1.01.	 	Definitions
	 	 	1	 
	SECTION 1.02.	 	Other Definitions
	 	 	7	 
	SECTION 1.03.	 	Incorporation by Reference of Trust Indenture Act
	 	 	7	 
	SECTION 1.04.	 	Rules of Construction
	 	 	8	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE TWO

	 	 	 	 	 
	 	 	 	 
	THE SECURITIES

	 	 	 	 	 
	 	 	 	 
	SECTION 2.01.	 	Form and Dating
	 	 	8	 
	SECTION 2.02.	 	Execution and Authentication
	 	 	9	 
	SECTION 2.03.	 	Registrar, Paying Agent and Conversion Agent
	 	 	10	 
	SECTION 2.04.	 	Paying Agent To Hold Money in Trust
	 	 	10	 
	SECTION 2.05.	 	Securityholder Lists
	 	 	11	 
	SECTION 2.06.	 	Transfer and Exchange
	 	 	11	 
	SECTION 2.07.	 	Replacement Securities
	 	 	11	 
	SECTION 2.08.	 	Outstanding Securities
	 	 	11	 
	SECTION 2.09.	 	Temporary Securities
	 	 	12	 
	SECTION 2.10.	 	Cancellation
	 	 	12	 
	SECTION 2.11.	 	Defaulted Interest
	 	 	12	 
	SECTION 2.12.	 	Book-Entry Provisions for Global Securities
	 	 	12	 
	SECTION 2.13.	 	Transfer and Exchange of Securities
	 	 	14	 
	SECTION 2.14.	 	Issuance of Additional Securities
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE THREE

	 	 	 	 	 
	 	 	 	 
	COVENANTS

	SECTION 3.01.	 	Payment of Securities
	 	 	17	 
	SECTION 3.02.	 	SEC Reports
	 	 	17	 
	SECTION 3.03.	 	Compliance Certificate
	 	 	18	 
	SECTION 3.04.	 	Maintenance of Office or Agency
	 	 	18	 
	SECTION 3.05.	 	Corporate Existence
	 	 	19	 
	SECTION 3.06.	 	Waiver of Stay, Extension or Usury Laws
	 	 	19	 
	SECTION 3.07.	 	Transactions with Affiliates
	 	 	19	 
	SECTION 3.08.	 	Change of Control
	 	 	20	 

 -ii-

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE FOUR

	 	 	 	 	 
	 	 	 	 
	SUCCESSOR CORPORATION

	 	 	 	 	 
	 	 	 	 
	SECTION 4.01.	 	When
Company May Merge, etc.
	 	 	22	 
	SECTION 4.02.	 	Successor Corporation Substituted
	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE FIVE

	 	 	 	 	 
	 	 	 	 
	DEFAULTS AND REMEDIES

	 	 	 	 	 
	 	 	 	 
	SECTION 5.01.	 	Events of Default
	 	 	23	 
	SECTION 5.02.	 	Acceleration
	 	 	24	 
	SECTION 5.03.	 	Other Remedies
	 	 	25	 
	SECTION 5.04.	 	Waiver of Past Defaults
	 	 	25	 
	SECTION 5.05.	 	Control by Majority
	 	 	25	 
	SECTION 5.06.	 	Limitation on Remedies
	 	 	25	 
	SECTION 5.07.	 	Rights of Holders To Receive Payment
	 	 	26	 
	SECTION 5.08.	 	Collection Suit by Trustee
	 	 	26	 
	SECTION 5.09.	 	Trustee May File Proofs of Claim
	 	 	26	 
	SECTION 5.10.	 	Priorities
	 	 	27	 
	SECTION 5.11.	 	Undertaking for Costs
	 	 	27	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE SIX

	 	 	 	 	 
	 	 	 	 
	TRUSTEE

	 	 	 	 	 
	 	 	 	 
	SECTION 6.01.	 	Duties of Trustee
	 	 	27	 
	SECTION 6.02.	 	Rights of Trustee
	 	 	28	 
	SECTION 6.03.	 	Individual Rights of Trustee
	 	 	29	 
	SECTION 6.04.	 	Trustee’s Disclaimer
	 	 	30	 
	SECTION 6.05.	 	Notice of Defaults
	 	 	30	 
	SECTION 6.06.	 	Reports by Trustee to Holders
	 	 	30	 
	SECTION 6.07.	 	Compensation and Indemnity
	 	 	30	 
	SECTION 6.08.	 	Replacement of Trustee
	 	 	31	 
	SECTION 6.09.	 	Successor
Trustee by Merger, etc.
	 	 	32	 
	SECTION 6.10.	 	Eligibility; Disqualification
	 	 	32	 
	SECTION 6.11.	 	Preferential Collection of Claims Against Company
	 	 	32	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE SEVEN

	 	 	 	 	 
	 	 	 	 
	DISCHARGE OF INDENTURE

	 	 	 	 	 
	 	 	 	 
	SECTION 7.01.	 	Termination of Company’s Obligations
	 	 	33	 
	SECTION 7.02.	 	Application of Trust Money
	 	 	34	 
	SECTION 7.03.	 	Repayment to Company
	 	 	34	 

 -iii-

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	SECTION 7.04.	 	Reinstatement
	 	 	34	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE EIGHT

	 	 	 	 	 
	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS

	 	 	 	 	 
	 	 	 	 
	SECTION 8.01.	 	Without Consent of Holders
	 	 	34	 
	SECTION 8.02.	 	With Consent of Holders
	 	 	35	 
	SECTION 8.03.	 	Compliance with Trust Indenture Act
	 	 	36	 
	SECTION 8.04.	 	Revocation and Effect of Consents
	 	 	36	 
	SECTION 8.05.	 	Notation on or Exchange of Securities
	 	 	37	 
	SECTION 8.06.	 	Trustee Protected
	 	 	37	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE NINE

	 	 	 	 	 
	 	 	 	 
	SUBORDINATION

	 	 	 	 	 
	 	 	 	 
	SECTION 9.01.	 	Securities Subordinated to Senior Indebtedness
	 	 	37	 
	SECTION 9.02.	 	Company Not To Make Payments with Respect to Securities in Certain Circumstances
	 	 	37	 
	SECTION 9.03.	 	Securities Subordinated to Prior Payment of All Senior Indebtedness on Dissolution, Liquidation or Reorganization of Company
	 	 	39	 
	SECTION 9.04.	 	Securityholders To Be Subrogated to Rights of Holders of Senior Indebtedness
	 	 	40	 
	SECTION 9.05.	 	Obligation of the Company Unconditional
	 	 	40	 
	SECTION 9.06.	 	Trustee Entitled To Assume Payments Not Prohibited in Absence of Notice
	 	 	40	 
	SECTION 9.07.	 	Application by Trustee of Monies Deposited with It
	 	 	41	 
	SECTION 9.08.	 	Subordination Rights Not Impaired by Acts or Omissions of Company or Holders of Senior Indebtedness
	 	 	41	 
	SECTION 9.09.	 	Securityholders Authorize Trustee To Effectuate Subordination of Securities
	 	 	42	 
	SECTION 9.10.	 	Right of Trustee To Hold Senior Indebtedness
	 	 	42	 
	SECTION 9.11.	 	Article Nine Not To Prevent Events of Default
	 	 	42	 
	SECTION 9.12.	 	Ranking; Designation
	 	 	42	 
	SECTION 9.13.	 	Trustee’s Compensation Not Prejudiced
	 	 	42	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE TEN

	 	 	 	 	 
	 	 	 	 
	CONVERSION OF SECURITIES

	 	 	 	 	 
	 	 	 	 
	SECTION 10.01.	 	Right To Convert
	 	 	43	 
	SECTION 10.02.	 	Exercise of Conversion Privilege; Issuance of Common Shares on Conversion; No Adjustment for
	 	 	43	 
	 	 	 	 	Interest or Dividends
	 	 	 	 
	SECTION 10.03.	 	Cash Payments in Lieu of Fractional Shares
	 	 	45	 

 -iv-

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	SECTION 10.04.	 	Conversion Price
	 	 	45	 
	SECTION 10.05.	 	Adjustment of Conversion Price
	 	 	45	 
	SECTION 10.06.	 	Effect of Reclassification, Consolidation, Merger or Sale
	 	 	52	 
	SECTION 10.07.	 	Taxes on Common Shares Issued
	 	 	53	 
	SECTION 10.08.	 	Reservation of Shares; Shares To Be Fully Paid; Listing of Common Shares
	 	 	53	 
	SECTION 10.09.	 	Responsibility of Trustee
	 	 	54	 
	SECTION 10.10.	 	Notice to Holders Prior to Certain Actions
	 	 	55	 
	SECTION 10.11.	 	Limitations on Convertibility
	 	 	55	 
	SECTION 10.12.	 	Treatment of Excess Securities
	 	 	56	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE ELEVEN

	 	 	 	 	 
	 	 	 	 
	MISCELLANEOUS

	 	 	 	 	 
	 	 	 	 
	SECTION 11.01.	 	Trust Indenture Act Controls
	 	 	58	 
	SECTION 11.02.	 	Notices
	 	 	58	 
	SECTION 11.03.	 	Communication by Holders with Other Holders
	 	 	60	 
	SECTION 11.04.	 	Certificate and Opinion as to Conditions Precedent
	 	 	60	 
	SECTION 11.05.	 	Statements Required in Certificate or Opinion
	 	 	60	 
	SECTION 11.06.	 	When Treasury Securities Disregarded
	 	 	60	 
	SECTION 11.07.	 	Rules by Trustee and Agents
	 	 	61	 
	SECTION 11.08.	 	Legal Holidays
	 	 	61	 
	SECTION 11.09.	 	Governing Law
	 	 	61	 
	SECTION 11.10.	 	No Adverse Interpretation of Other Agreements
	 	 	61	 
	SECTION 11.11.	 	No Recourse Against Others
	 	 	61	 
	SECTION 11.12.	 	Successors
	 	 	61	 
	SECTION 11.13.	 	Duplicate Originals
	 	 	61	 
	SECTION 11.14.	 	Separability
	 	 	61	 
	 	 	 	 	 
	 	 	 	 
	SIGNATURES	 	 
	 	 	S-1	 

 -v-

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	EXHIBIT A —	 	FORM OF SECURITY
	 	 	A-1	 
	EXHIBIT B —	 	FORM OF GLOBAL SECURITY LEGEND
	 	 	B-1	 

 

			
	NOTE:	 	This Table of Contents shall not, for any purpose, be deemed to be a part of
this Indenture.

 -vi-

 

 

          INDENTURE dated as of                     , 20___ between Leucadia National Corporation, a New York
corporation (the “Company”), and HSBC Bank USA, a national banking association duly organized and
existing under the laws of the United States, as trustee (the “Trustee”).

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the holders of the Company’s ___% Convertible Senior Subordinated Notes due                     ,
20___ (the “Securities”):

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01. Definitions.

          “Additional Securities” means any additional Securities having identical terms and conditions
to the Securities issued pursuant to Article Two.

          “Affiliate” of the Company means (i) any Related Person and (ii) any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the
Company. For the purposes of this definition, “control” when used with respect to any 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.

          “Agent” means any Registrar, Paying Agent, Conversion Agent or co-registrar, or any agent
appointed by the Company pursuant to Section 10.12(b).

          “Board of Directors” means the Board of Directors of the Company or any committee thereof.

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

          “business day” means any day on which the New York Stock Exchange is open for trading and
which is not a Legal Holiday.

          “Capitalized Lease Obligations” means the discounted present value of the rental obligations
of any Person under any lease of any property (whether real, personal or mixed) which, in
accordance with GAAP, is required to be capitalized on the balance sheet of such Person.

 

-2-

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of capital stock, including each class of
common stock and preferred stock of such Person.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Common Shares” means the common shares, par value $1.00 per share, of the Company.

     “Company” means Leucadia National Corporation, a New York corporation, until a successor
replaces such Person in accordance with the terms of this Indenture, and thereafter means such
successor.

     “Consolidated Net Worth” means, as of any date, the sum of the Capital Stock and additional
paid-in capital plus retained earnings (or minus accumulated deficit) of the Company as of such
date determined on a consolidated basis in accordance with GAAP.

     “Conversion Price” shall have the meaning specified in Section 10.04.

     “Corporation Securities” means (i) Common Shares, (ii) shares of preferred stock of the
Company, (iii) warrants, rights, or options (within the meaning of Treasury Regulation
§1.382-2T(h)(4)(v)) to purchase stock of the Company, and (iv) any other interests that would be
treated as “stock” of the Company pursuant to Treasury Regulation §1.382-2T(f)(18).

     “Default” means any event which is, or after notice or passage of time would be, an Event of
Default.

     “Depository” means, with respect to the Global Securities, The Depository Trust Company or
another Person designated as depository by the Company, which Person must be a clearing agency
registered under the Exchange Act.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the SEC thereunder.

     “Five-Percent Shareholder” means a Person or group of Persons that is identified as a
“5-percent shareholder” of the Company pursuant to Treasury Regulation §1.382-2T(g)(1).

     “GAAP” or “generally accepted accounting principles” means United States generally accepted
accounting principles as in effect on December 31, 2003.

     “Global Security Legend” means the legend substantially in the form set forth in Exhibit B.

 

-3-

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

     “Indebtedness” of any Person means (i) any liability of such Person (a) for borrowed money,
(b) evidenced by a note, debenture or similar instrument (including a Purchase Money Obligation or
deferred payment obligation) given in connection with the acquisition of any property or assets
(other than inventory or similar property acquired in the ordinary course of business), including
securities, (c) for the payment of a Capitalized Lease Obligation of such Person or (d) with
respect to the reimbursement of any letter of credit, banker’s acceptance or similar credit
transaction (other than trade letters of credit issued in the ordinary course of business; provided
that the failure to make prompt reimbursement of any trade letter of credit shall be deemed to be
the incurrence of Indebtedness); and (ii) any guarantee by such Person of any liability of others
described in clause (i) above or any obligation of such Person with respect to any liability of
others described in clause (i) above. Indebtedness shall not include deposits at the Company’s
banking and lending Subsidiaries.

     “Indenture” means this Indenture as amended or supplemented from time to time.

     “Independent Director” means any director of the Company who is neither (i) an executive
officer or an employee of the Company or of any of its Subsidiaries or Affiliates or (ii) a Related
Person.

     “Initial Securities” means the Securities issued on the date of this Indenture.

     “Investment Grade” is defined as BBB- or higher by S&P or Baa3 or higher by Moody’s or the
equivalent of such ratings by Moody’s or S&P.

     “Issue Date” means                     , 20___.

     “Material Subsidiary” means (i) any Subsidiary of the Company which at December 31, 1992 was a
“significant subsidiary” under Regulation S-X promulgated by the SEC or any successor to such
Subsidiary and (ii) any other Subsidiary of the Company; provided that the Company’s investments in
and advances to such Subsidiary at the date of determination thereof, without giving effect to any
write downs in such investments or advances taken within the prior 12 months, represent 20% or more
of the Company’s Consolidated Tangible Net Worth as of such time; provided, however, that this
clause (ii) shall not include any Subsidiary if, at the time that it became a Subsidiary, the
Company contemplated commencing a voluntary case or proceeding under the Bankruptcy Law with
respect to such Subsidiary.

     “Maturity Date” means                     , 20___.

     “Moody’s” means Moody’s Investors Service, Inc. or any successor to its rating business.

 

-4-

     “Obligations” means any principal, interest, penalties, fees, indemnities and other
obligations and liabilities payable under the documentation governing the applicable Indebtedness.

     “Officer” means the Chairman of the Board, the President, any Vice President, the Chief
Financial Officer or the Treasurer of the Company.

     “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and the
Secretary, Assistant Secretary or Assistant Treasurer of the Company. One of the Officers giving
an Officers’ Certificate pursuant to Section 3.03 shall be the principal executive, financial or
accounting officer of the Company.

     “Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable
to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

     “Percentage Stock Ownership” means percentage stock ownership as determined in accordance with
Treasury Regulation §1.382-2T(g), (h), (j), and (k).

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

     “Prohibited Transfer” means (1) any attempted Transfer of Corporation Securities prior to the
Restriction Release Date, or any attempted Transfer of Corporation Securities pursuant to an
agreement entered into prior to the Restriction Release Date, shall be prohibited and void
ab initio to the extent that, as a result of such Transfer (or any series of
Transfers of which such Transfer is a part), either (a) any Person or group of Persons shall become
a Five-Percent Shareholder, or (b) the Percentage Stock Ownership interest in the Company of any
Five-Percent Shareholder shall be increased, and (2) any transaction that would be treated as a
Prohibited Transfer within the meaning of the Company’s Certificate of Incorporation from time to
time; provided, however, that nothing herein contained shall preclude the settlement of any
transaction entered into through the facilities of the New York Stock Exchange, Inc. in the
Company’s securities.

     “Physical Securities” means certificated Securities in registered form.

     “principal” of a debt security means the principal amount of the security plus the premium, if
any, on the security.

     “Purchase Money Obligations” means Indebtedness evidenced by a note, debenture, bond or other
security or investment (whether or not secured by any Lien or other security interest) issued to or
assumed in favor of a vendor as all or part of the purchase price of property

 

-5-

acquired by the Company or any Subsidiary; provided, however, that such term shall not include
any account payable or any other Indebtedness incurred, created or assumed in the ordinary course
of business in connection with the obtaining of material, products or services.

          “Related
Person” means any Person who directly or indirectly holds 10%
or more of any class of Capital Stock of the Company as determined
pursuant to Rule 13d-3 under the Exchange Act.

          “Restriction Release Date” means the earlier of December 31, 20___, the repeal of Section 382,
or the beginning of a taxable year of the Company (or any successor thereof) to which no Tax
Benefits may be carried forward, or such other date as defined in the Company’s Certificate of
Incorporation from time to time.

          “S&P” means Standard & Poor’s Ratings Group, Inc. or any successor to its rating business.

          “SEC” means the Securities and Exchange Commission.

          “Securities” means the securities, as amended or supplemented from time to time, that are
issued and outstanding under this Indenture, treated as a single class of securities, including the
Initial Securities and the Additional Securities, if any.

          “Section 382” means Section 382 of the Code and any comparable successor provision.

          “Senior Indebtedness” means all Obligations of the Company with respect to the following,
whether outstanding at the date of original execution of this Indenture or thereafter incurred,
created or assumed: (a) indebtedness of the Company for money borrowed, including, without
limitation, indebtedness of the Company for money borrowed which is evidenced by notes, debentures,
bonds or other securities issued under the provisions of an indenture or other instrument, and also
including indebtedness represented by Purchase Money Obligations, but only to the extent such
indebtedness is enforceable by a money judgment; (b) guarantees or assumptions by the Company of
indebtedness of others of any of the kinds described in the preceding clause (a); and (c) renewals,
extensions and refundings of, and indebtedness of a successor corporation issued in exchange for or
in replacement of, indebtedness, guarantees and assumptions of the kinds described in the preceding
clause (a) or (b), unless, in the case of any particular indebtedness, obligation, guarantee,
assumption, renewal, extension or refunding, the instrument creating or evidencing the same
expressly provides that such indebtedness, obligation, guarantee, assumption, renewal, extension or
refunding is not superior in right of payment to the Securities; provided that Senior Indebtedness
shall not be deemed to include (1) any indebtedness of the Company to any Subsidiary, (2) any
liability for taxes, (3) any amounts payable or other liabilities to trade creditors arising in the
ordinary course of business, (4) any indebtedness which is subordinate or junior by its terms to
any other indebtedness of the Company, (5) the 3.75% Convertible
Senior Subordinated Notes due 2014, or (6) the 8.65% Junior Subordinated Deferrable Interest
Debentures due 2027.

          “Subsidiary” means a corporation or business trust a majority of whose Voting Stock is owned
by the Company or a Subsidiary.

 

-6-

          “Tax Benefits” means the net operating loss carryovers, capital loss carryovers, general
business credit carryovers, alternative minimum tax credit carryovers and foreign tax credit
carryovers, as well as any “net unrealized built-in loss” within the meaning of Section 382, of the
Company or any direct or indirect Subsidiary thereof.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the
Issue Date; provided, however, that in the event the Trust Indenture Act of 1939 is amended after
such date, “TIA” means to the extent required by any such amendment, the Trust Indenture Act of
1939 as so amended.

          “Transfer” means any direct or indirect sale, transfer, assignment, conveyance, pledge, or
other disposition. A Transfer also shall include the creation or grant of an option (within the
meaning of Treasury Regulation §1.382-2T(h)(4)(v)).

          “Treasury Regulation §1.382-2T” means the temporary income tax regulations promulgated under
Section 382, and any successor regulations. References to any subsection of such regulations
include references to any successor subsection thereof.

          “Trustee” means the party named as such in this Indenture until a successor replaces it and
thereafter means the successor.

          “Trust Officer” means any officer or assistant officer within the corporate trust department
of the Trustee with direct responsibilities for the administration of this Indenture.

          “United States” means the United States of America.

          “U.S. Legal Tender” means such coin or currency of the United States as at the time of payment
shall be legal tender for the payment of public and private debts.

          “Voting Stock” with respect to any Person, means Capital Stock of such Person having general
voting power under ordinary circumstances to elect directors to the board of directors of such
Person, but shall not include any Capital Stock that has or would have such voting power solely by
reason of the happening of any contingency.

          “Wholly-Owned Subsidiary” means any Subsidiary in which the Company or a Subsidiary owns all
of the Capital Stock, other than directors’ qualifying shares.

 

-7-

SECTION 1.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined	 
	Term	 	in Section	 
	“Agent Members”
	 	 	2.12	 
	“Bankruptcy Law”
	 	 	5.01	 
	“Change of Control”
	 	 	3.08	 
	“Change of Control Notice”
	 	 	3.08	 
	“Change of Control Payment Date”
	 	 	3.08	 
	“Closing Price”
	 	 	10.05	 
	“Conversion Agent”
	 	 	2.03	 
	“Converting Holder”
	 	 	10.12	 
	“Current Market Price”
	 	 	10.05	 
	“Custodian”
	 	 	5.01	 
	“Disposition”
	 	 	3.08	 
	“Distributed Securities”
	 	 	10.05	 
	“Dividend Adjustment Amount”
	 	 	10.05	 
	“Event of Default”
	 	 	5.01	 
	“Excess Dividend”
	 	 	10.05	 
	“Excess Securities”
	 	 	10.12	 
	“Global Securities”
	 	 	2.12	 
	“Legal Holiday”
	 	 	11.08	 
	“Market Value”
	 	 	3.08	 
	“Paying Agent”
	 	 	2.03	 
	“Permitted Dividend”
	 	 	10.05	 
	“Prohibited Conversion”
	 	 	10.11	 
	“Prohibited Distribution”
	 	 	10.12	 
	“Recipient”
	 	 	3.08	 
	“Registrar”
	 	 	2.03	 
	“Record Date”
	 	 	10.05	 
	“Trading Day”
	 	 	10.05	 
	“U.S. Government Obligations”
	 	 	7.01	 

SECTION 1.03. Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms, if used in this
Indenture, have the following meanings:

          “Commission” means the SEC.

          “indenture securities” means the Securities.

 

-8-

          “indenture security holder” means a securityholder.

          “indenture to be qualified” means this Indenture.

          “indenture trustee” or “institutional trustee” means the Trustee.

          “obligor” on the indenture securities means the Company.

          All other TIA terms used in this indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them therein.

SECTION 1.04. Rules of Construction.

          Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and words in the plural include the
singular;

     (5) any gender used in this Indenture shall be deemed to include the neuter, masculine
or feminine genders;

     (6) provisions apply to successive events and transactions; and

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

ARTICLE TWO

THE SECURITIES

SECTION 2.01. Form and Dating.

          The Securities and the certificate of authentication shall be substantially in the form of
Exhibit A. The provisions of Exhibit A are part of this Indenture. The Securities may have
notations, legends and endorsements required by law, stock exchange rule or usage. The

 

-9-

Company shall approve the form of the Securities and any notation, legend or endorsement on
them. Each Security shall be dated the date of its authentication.

SECTION 2.02. Execution and Authentication.

          One Officer and the Secretary or an Assistant Secretary of the Company shall sign the
Securities for the Company by manual or facsimile signature.

          If an Officer whose signature is on a Security no longer holds that office at the time the
Security is authenticated, the Security shall be valid nevertheless.

          A Security shall not be valid until the Trustee or an authenticating agent manually signs the
certificate of authentication on the Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

          The Trustee or authenticating agent shall authenticate (i) Initial Securities for original
issue in the aggregate principal amount not to exceed $                     in one or more series, and (ii)
Additional Securities as provided in Section 2.14, in each case upon a written order of the Company
in the form of an Officers’ Certificate of the Company. Each such written order shall specify the
amount of Securities to be authenticated and the date on which the Securities are to be
authenticated, whether the Securities are to be Initial Securities or Additional Securities and
whether the Securities are to be issued as Physical Securities or Global Securities or such other
information as the Trustee may reasonably request.

          In the event that the Company shall issue and the Trustee shall authenticate any Securities
issued under this Indenture subsequent to the Issue Date pursuant to clause (ii) of the first
sentence of the immediately preceding paragraph, the Company shall use its reasonable efforts to
obtain the same “CUSIP” number for such Securities as is printed on the Securities outstanding at
such time; provided, however, that if any series of Securities issued under this Indenture
subsequent to the Issue Date is determined, to be a different class of security than the Securities
outstanding at such time for federal income tax purposes, the Company may obtain a “CUSIP” number
for such Securities that is different than the “CUSIP” number printed on the Securities then
outstanding. Notwithstanding the foregoing, all Securities issued under this Indenture shall vote
and consent together on all matters as one class and no series of Securities will have the right to
vote or consent as a separate class on any matter.

          The Trustee may appoint an authenticating agent to authenticate Securities. An authenticating
agent may authenticate Securities whenever the Trustee may do so except on original issuance. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with the Company or its
Affiliates.

 

-10-

          The Securities shall be issuable only in registered form without coupons and only in
denominations of $_,000 and any integral multiple thereof.

SECTION 2.03. Registrar, Paying Agent and Conversion Agent.

          The Company shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange (the “Registrar”), an office or agency where Securities
may be presented for payment (the “Paying Agent”) and an office or agency where Securities may be
presented for conversion (the “Conversion Agent”). The Registrar shall keep a register of the
Securities and of their transfer and exchange. The Company may have one or more co-registrars and
one or more additional paying agents. The term “Paying Agent” includes any additional paying agent
and the term “Conversion Agent” includes any additional conversion agent.

          The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. Such agency agreement shall provide for reasonable compensation for such services.
The agreement shall implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address of any such Agent and shall furnish the
Trustee with an executed counterpart of any such agency agreement. If the Company fails to
maintain or act as Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such and
shall be duly compensated therefor.

          The Registrar or a co-registrar and a Paying Agent shall be maintained by the Company in the
Borough of Manhattan, The City of New York. The Company initially designates the Trustee as the
Registrar, Paying Agent and Conversion Agent.

SECTION 2.04. Paying Agent To Hold Money in Trust.

          At or prior to 10:00 A.M., New York City time, on each due date of the principal and interest
on any Security, the Company shall deposit with the Paying Agent immediately available funds
sufficient to pay such principal and interest becoming due. Interest may, at the option of the
Company, be paid by check mailed to the address of a Holder on the registry kept for such purposes;
or at the request of such Holder in writing to the Company, interest on such Holder’s Securities
shall be paid by wire transfer in immediately available funds in accordance with the wire transfer
instruction supplied by such Holder from time to time to the Trustee and paying agent (if different
from Trustee) at least ten business days prior to the interest payment date. The Company shall
require each Paying Agent other than the Trustee to hold in trust for the benefit of
Securityholders or the Trustee all money held by such Paying Agent for the payment of principal or
interest on the Securities, and shall notify the Trustee of any Default by the Company in making
any such payment. While any such Default continues, the Trustee may require the Paying Agent to
pay all money held by it to the Trustee. Except as provided in the immediately preceding sentence,
the Company at any time may require a Paying Agent to pay all money held by it to the Trustee.
Upon doing so, such Paying Agent (other than the Company or

 

-11-

a Subsidiary) shall have no further liability for the money. If the Company acts as Paying
Agent, it shall segregate and hold as separate trust funds all money held by it as Paying Agent.

SECTION 2.05. Securityholder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the name and addresses of Securityholders and shall otherwise comply with
TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish or cause to be
furnished to the Trustee on or before each semiannual interest payment date and at such other times
as the Trustee may request in writing a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders, and the Company shall otherwise
comply with TIA § 312(a).

SECTION 2.06. Transfer and Exchange.

          Subject to Sections 2.12 and 2.13, when a Security is presented to the Registrar or a
co-registrar with a request to register a transfer, the Registrar shall register the transfer as
requested if the requirements of the Registrar are met. Subject to Sections 2.12 and 2.13, when
Securities are presented to the Registrar or a co-registrar with a request to exchange them for an
equal principal amount of Securities of other denominations, the Registrar shall make the exchange
as requested if the requirements of the Registrar are met. The Company shall cooperate with the
Registrar in meeting its requirements. To permit registrations of transfers and exchanges, the
Trustee shall authenticate Securities at the Registrar’s request. The Company or the Trustee may
charge a reasonable fee for any registration of transfer or exchange and may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto, but not for any exchange pursuant to Sections 2.09 or 8.05.

SECTION 2.07. Replacement Securities.

          If a mutilated Security is surrendered to the Trustee or if the Holder of a Security claims
that the Security has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Security if the requirements of the Trustee are met. An
indemnity bond may be required by the Trustee or the Company that is sufficient in the judgment of
the Company and the Trustee to protect the Company, the Trustee or any Agent from any loss which
any of them may suffer if a Security is replaced. The Company or the Trustee may charge for its
expenses in replacing a Security.

SECTION 2.08. Outstanding Securities.

          Securities outstanding at any time are all Securities authenticated by the Trustee except for
those cancelled by it, those delivered to it for cancellation and those described in this Section
2.08 as not outstanding. Subject to Section 11.06, a Security does not cease to be outstanding
because the Company or one of its Subsidiaries or Affiliates holds the Security.

 

-12-

          If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a protected
purchaser.

          If any Paying Agent (other than the Company or a Subsidiary) holds on a redemption date or
maturity date money received by the Paying Agent pursuant to this Indenture and sufficient to pay
the principal and interest on Securities payable on that date, then on and after that date such
Securities cease to be outstanding and interest on them ceases to accrue.

SECTION 2.09. Temporary Securities.

          Until definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate the temporary Securities. Temporary Securities shall be substantially in the
form of definitive Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Securities in exchange for temporary Securities surrendered to it.

SECTION 2.10. Cancellation.

          The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and Paying Agent shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all Securities
surrendered for registration of transfer, exchange, payment or cancellation and shall dispose of
cancelled Securities in accordance with its customary procedures unless the Company directs in
writing their return to the Company. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation.

SECTION 2.11. Defaulted Interest.

          If the Company defaults in a payment of interest on the Securities, it shall pay the defaulted
interest plus any interest payable on the defaulted interest to the Persons who are Securityholders
on a subsequent special record date. The Company shall fix the record date and payment date. At
least 10 days before the record date, the Company shall mail to each Securityholder a notice that
states the record date, the payment date, and the amount of defaulted interest to be paid. The
Company may pay defaulted interest in any other lawful manner.

SECTION 2.12. Book-Entry Provisions for Global Securities.

          The Initial Securities initially shall be represented by one or more Securities in registered,
global form without interest coupons (collectively, the “Global Securities”). All Global
Securities shall bear the Global Security Legend. The Global Securities initially shall (i) be
registered in the name of the Depository or the nominee of the Depository, in each case for

 

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credit to an account of an Agent Member, and (ii) be delivered to the Trustee as custodian for the
Depository.

          Members of, or direct or indirect participants in, the Depository (“Agent Members”) shall have
no rights under this Indenture with respect to any Global Security held on their behalf by the
Depository or under the Global Securities. The Depository may be treated by the Company, the
Trustee and any agent of the Company or the Trustee 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 or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depository or impair, as between the
Depository and its Agent Members, the operation of customary practices governing the exercise of
the rights of a Holder of any Security.

          (a) Transfers of Global Securities shall be limited to transfers in whole, but not in part, to
the Depository, its successors or their respective nominees. Interests of beneficial owners in the
Global Securities may be transferred or exchanged for Physical Securities only in accordance with
the applicable rules and procedures of the Depository and the provisions of Section 2.13. In
addition, a Global Security shall be exchangeable for Physical Securities only if (i) the
Depository (x) notifies the Company that it is unwilling or unable to continue as depository for
such Global Security or (y) has ceased to be a clearing agency registered under the Exchange Act,
and in either case the Company fails to appoint a successor depositary within 90 days of such
notice or of the Company’s becoming aware of such cessation, (ii) the Company, at its option and
subject to the procedures of the Depository, notifies the Trustee in writing that it is electing to
issue Physical Securities or (iii) there shall have occurred and be continuing an Event of Default
with respect to such Global Security. In all cases, Physical 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 Depository in accordance with its
customary procedures. Neither the Company nor the Trustee shall be liable for any delay by the
Depository in providing such registration information and the Company and the Trustee may
conclusively rely on instructions from the Depository as to such registration information. In the
event that a Physical Security is to be authenticated pursuant to this clause (a), the Company will
promptly make available to the Trustee, a reasonable supply of Physical Securities in definitive,
fully registered form, without interest coupons, unless such a supply has previously been made
available to the Trustee.

          (b) In connection with the transfer of a Global Security as an entirety to beneficial owners
pursuant to subsection (a) of this Section 2.12, such Global Security shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall
authenticate and deliver, to each beneficial owner identified by the Depository in writing in
exchange for its beneficial interest in such Global Security, an equal aggregate principal amount
of Physical Securities of authorized denominations.

 

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          (c) 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. None of the
Company, the Trustee, any Paying Agent or the Registrar will have any responsibility or liability
for any aspect of the records relating to or payments made on account of beneficial ownership
interests in a Global Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests.

SECTION 2.13. Transfer and Exchange of Securities.

          (a) Transfer and Exchange of Global Securities. A Global Security may not be transferred as a
whole except as set forth in Section 2.12(a). Global Securities shall not be exchanged by the
Company for Physical Securities except under the circumstances described in Section 2.13(c).
Global Securities may be exchanged or replaced, in whole or in part, as provided in Sections 2.07
and 2.09. Beneficial interests in a Global Security may be transferred and exchanged as provided
in Section 2.13(b) or 2.13(c) below.

          (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 Depository,
in accordance with the provisions of this Indenture and the applicable rules and procedures of the
Depository. Beneficial interests in Global Securities shall be transferred or exchanged only for
beneficial interests in Global Securities, except as provided in Section 2.12(a). Transfers and
exchanges of beneficial interests in the Global Securities also shall require compliance with
either subparagraph (i) or (ii) below, as applicable:

     (i) Transfer of Beneficial Interests in the Same Global Security. A beneficial
interest in a Global Security may be transferred to Persons who take delivery thereof in the
form of a beneficial interest in such Global Security. No written orders or instructions
shall be required to be delivered to the Registrar to effect the transfers described in this
Section 2.13(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 are not subject to Section 2.13(b)(i), the transferor of such beneficial
interest must deliver to the Registrar (1) a written order from an Agent Member given to the
Depository in accordance with the applicable rules and procedures of the Depository
directing the Depository 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
Depository containing information regarding the Agent Member account to be credited with
such increase. Upon satisfaction of all of the requirements for transfer or exchange of
beneficial interests in Global Securities contained in this Indenture and the
Securities or

 

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otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Security or Global Securities pursuant to Section
2.13(f).

          (c) Transfer and Exchange of Beneficial Interests in Global Securities for Physical
Securities. A beneficial interest in a Global Security may not be exchanged for a Physical
Security except under the circumstances described in Section 2.12(a). A beneficial interest in a
Global Security may not be transferred to a Person who takes delivery thereof in the form of a
Physical Security except under the circumstances described in Section 2.12(a).

          (d) Transfer and Exchange of Physical Securities for Beneficial Interests in Global
Securities. A Holder of a Physical Security may exchange such Physical Security for a beneficial
interest in a Global Security or transfer such Physical Security to a Person who takes delivery
thereof in the form of a beneficial interest in a Global Security at any time. Upon receipt of a
request for such an exchange or transfer, the Trustee shall cancel the applicable Physical Security
and increase or cause to be increased the aggregate principal amount of one of the Global
Securities. If any such transfer or exchange is effected pursuant to this paragraph (d) at a time
when a Global Security has not yet been issued, the Company shall issue and, upon receipt of a
written order of the Company in accordance with Section 2.02, the Trustee shall authenticate one or
more Global Securities in an aggregate principal amount equal to the aggregate principal amount of
Physical Securities transferred or exchanged pursuant to this paragraph (d).

          (e) Transfer and Exchange of Physical Securities for Physical Securities. Upon request by a
Holder of Physical Securities, the Registrar shall register the transfer or exchange of Physical
Securities. Prior to such registration of transfer or exchange, the requesting Holder shall
present or surrender to the Registrar the Physical Securities duly endorsed or accompanied by a
written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder
or by its attorney, duly authorized in writing.

          (f) Cancellation and/or Adjustment of Global Securities. At such time as all beneficial
interests in a particular Global Security have been exchanged for Physical Securities or a
particular Global Security has been repurchased or canceled in whole and not in part, each such
Global Security shall be returned to or retained and canceled by the Trustee in accordance with
Section 2.10. 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 Physical 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 Trustee or by the Depository at the direction of the
Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or
transferred to a Person who will take delivery thereof in the form of a beneficial interest in
another Global Security, such other Global Security shall be increased accordingly and an endorsement shall be made on such Global Security by the Trustee or by the Depository at the
direction of the Trustee to reflect such increase.

 

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

          (h) The Trustee and the Registrar shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under this Indenture or under
applicable law with respect to any transfer of any interest in any Security (including any
transfers between or among Depository 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.

          The Registrar shall retain for a period of two years copies of all letters, notices and other
written communications received pursuant to Section 2.12 or this Section 2.13. The Company 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 notice to the Registrar.

SECTION 2.14. Issuance of Additional Securities.

          The Company shall be entitled to issue Additional Securities under this Indenture which shall
have identical terms (including, without limitation, the same Conversion Price) as the Initial
Securities issued on the Issue Date, other than with respect to the date of issuance, issue price,
and amount of interest payable on the first payment date applicable thereto . The Initial
Securities issued on the Issue Date and any Additional Securities shall be treated as a single
class for all purposes under this Indenture, including, without limitation, security, interests,
waivers, amendments and offers to purchase.

          With respect to any Additional Securities, the Company shall set forth in a resolution of its
Board of Directors and in a Company Request, a copy of each of which shall be delivered to the
Trustee, the following information:

     (1) the aggregate principal amount of such Additional Securities to be authenticated
and delivered pursuant to this Indenture;

     (2) the issue price, the issue date and the CUSIP number of such Additional Securities
and the amount of interest payable on the first payment date applicable thereto; provided,
however, that no Additional Securities may be issued at a price that would
cause such Additional Securities to have “original issue discount” within the meaning
of Section 1273 of the Internal Revenue Code of 1986, as amended; and

 

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     (3) any and all other terms of issuance with respect to such Additional Securities,
including any terms which the Board of Directors deems appropriate.

ARTICLE THREE

COVENANTS

SECTION 3.01. Payment of Securities.

          The Company shall pay the principal of and interest on the Securities on the dates and in the
manner provided in the Securities. An installment of principal or interest shall be considered
paid on the date it is due if the Trustee or Paying Agent holds such installment in immediately
available funds at 9:00 A.M., New York City time, on the date such installment is due. Principal
and interest on Global Securities shall be payable to the Depository or its nominee, as the case
may be, as the sole registered owner and the sole Holder of the Securities represented thereby.

          The Company shall pay interest on overdue principal at the rate borne by the Securities; it
shall pay interest on overdue installments of interest at the same rate to the extent lawful.

SECTION 3.02. SEC Reports.

          (a) The Company shall file with the Trustee within 15 days after it files them with the SEC
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 SEC may by rules and regulations prescribe) which the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If
the Company is not subject to the requirements of such Section 13 or 15(d) of the Exchange Act, the
Company shall continue to file with the Trustee on the same timely basis such reports, information
and other documents as it would file if it were subject to the requirements of Section 13 or 15(d)
of the Exchange Act. The Company also shall comply with the other provisions of TIA § 314(a).

          (b) So long as any of the Securities remain outstanding, the Company shall cause each annual,
quarterly and other financial report mailed or otherwise furnished by it generally to stockholders
to be filed with the Trustee and mailed to the Holders at their addresses appearing in the register
of Securities maintained by the Registrar, in each case at the time of such mailing or furnishing
to stockholders. If the Company is not required to furnish annual or quarterly reports to its
stockholders pursuant to the Exchange Act, the Company shall cause its financial statements,
including any notes thereto and, with respect to annual reports, an auditors’ report by an accounting firm of established national reputation and a “Management’s Discussion
and Analysis of Financial Condition and Results of Operations,” comparable to that which would have
been required to appear in annual or quarterly reports filed under Section 13 or 15(d) of the

 

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Exchange Act, to be so filed with the Trustee within 120 days after the end of each of the
Company’s fiscal years and within 60 days after the end of each of the first three quarters of each
such fiscal year and, after the date such reports are so required to be filed with the Trustee, to
be furnished to any Holder upon such Holder’s request.

          (c) The Company shall provide the Trustee with a sufficient number of copies of all reports
and other documents and information that the Trustee may be required to deliver to Securityholders
under this Section 3.02. Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such reports shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

SECTION 3.03. Compliance Certificate.

          The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of
the Company (which as of the date of this Indenture is December 31) an Officers’ Certificate
stating whether or not the signers know of any Default or Event of Default. If they do know of
such a Default or Event of Default, the certificate shall describe the Default or Event of Default
and efforts to remedy the same. The Company shall notify the Trustee within 10 days following the
occurrence thereof of any acceleration which is an Event of Default within the meaning of Section
5.01(4).

SECTION 3.04. Maintenance of Office or Agency.

          The Company will maintain in the Borough of Manhattan, The City of New York, an office or
agency where Securities may be surrendered for registration of transfer or exchange or for
presentation for payment or for conversion and where notices and demands to or upon the Company in
respect of the Securities 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 address of the Trustee set forth in Section 11.02.

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

 

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SECTION 3.05. Corporate Existence.

          Subject to Article Four, 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 corporate, partnership
or other existence of each Material Subsidiary in accordance with the respective organizational
documents of each Material Subsidiary and the rights (charter and statutory) and material
franchises of the Company and the Material Subsidiaries; provided that the Company shall not be
required to preserve any such right or franchise, or the corporate existence of any Material
Subsidiary, if the Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss thereof is not, and will
not be, adverse in any material respect to the Holders.

SECTION 3.06. Waiver of Stay, Extension or Usury Laws.

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

SECTION 3.07. Transactions with Affiliates.

          The Company shall not, and shall not permit any Subsidiary to, directly or indirectly, enter
into any transaction or series of related transactions with any Affiliate (other than with the
Company or a Wholly-Owned Subsidiary), including, without limitation, any loan, advance or
investment or any purchase, sale, lease or exchange of property or the rendering of any service,
unless such transaction or series of transactions is in good faith and at arm’s length and on terms
which are at least as favorable as those available in a comparable transaction from an unrelated
Person. Any such transaction that involves in excess of $                     shall be approved by a
majority of the Independent Directors on the Board of Directors of the Company; or, in the event
that at the time of any such transaction or series of related transactions there are no Independent
Directors serving on the Board of Directors of the Company, such transaction or series of related
transactions shall be approved by a nationally recognized expert with experience in appraising the
terms and conditions of the type of transaction for which approval is required.

 

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SECTION 3.08. Change of Control.

          (a) In the event of any Change of Control, each Holder shall have the right, at such Holder’s
option, to require the Company to purchase all or any portion (in integral multiples of $_,000) of
such Holder’s Securities on the date (the “Change of Control Payment Date”) which is 20 business
days after the date the Change of Control Notice as defined below is mailed (or such later date as
is required by applicable law) at ___% of the principal amount (excluding premium) thereof, plus
accrued interest to the Change of Control Payment Date; provided that the Company shall not be
obligated to purchase any of such Securities unless Holders of at least 10% of the Securities
outstanding at the Change of Control Payment Date (other than Securities held by the Company and
its Affiliates) shall have tendered their Securities for repurchase. In addition, in the event of
any Change of Control, the Company will not, and will not permit any Subsidiaries to, purchase or
redeem any Indebtedness ranking junior to the Securities pursuant to any analogous provisions prior
to the Change of Control Payment Date.

          (b) The Company or, at the written request and expense of the Company, the Trustee shall send,
by first-class mail, postage prepaid, to all Holders, within five business days after the
occurrence of each Change of Control, a notice of the occurrence of such Change of Control (the
“Change of Control Notice”) specifying a date by which a Holder must notify the Company of such
Holder’s intention to exercise the repurchase right and describing the procedure that such Holder
must follow to exercise such right. The Company is required to deliver a copy of such notice to
the Trustee and to cause a copy of such notice to be published in a daily newspaper of national
circulation.

          Each Change of Control Notice shall state:

     (1) the Change of Control Payment Date;

     (2) the date by which the repurchase right must be exercised;

     (3) the price at which the repurchase is to be made, if the repurchase right is
exercised; and

     (4) a description of the procedure which the Holder must follow to exercise a
repurchase right.

          No failure of the Company to give the foregoing notice shall limit any Holder’s right to
exercise a repurchase right. The Company shall comply with all applicable Federal and state
securities laws in connection with each Change of Control Notice.

          (c) To exercise the repurchase right, the Holder shall deliver, on or before the fifth
calendar day prior to the Change of Control Payment Date, written notice to the Company (or an
agent designated by the Company for such purpose) of the Holder’s exercise of such right,

 

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together with (i) the Security or Securities with respect to which the right is being
exercised, duly endorsed for transfer, with the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Security completed, and (ii) if the Change of Control Payment Date falls
between any record date for the payment of interest on the Securities and the next succeeding
interest payment date, an amount equal to the interest which the Holder is entitled to receive on
such interest payment date.

          (d) A “Change of Control” shall be deemed to occur if (i) the Company has any other
Indebtedness outstanding (other than Indebtedness under a bank credit agreement or similar bank
financing) which provides for a Change of Control (as defined in the instrument governing such
Indebtedness) if Ian M. Cumming or Joseph S. Steinberg ceases to beneficially own, in the
aggregate, a certain percentage of the outstanding Common Shares, which percentage ownership
requirement is in excess of 10%, and a Change of Control (as defined in the instrument governing
such Indebtedness) occurs under such Indebtedness or (ii) at any time when the Company does not
have any other Indebtedness outstanding of the type referred to in clause (i), Ian M. Cumming
and/or Joseph S. Steinberg, individually or in the aggregate, sell, transfer or otherwise dispose
of (a “Disposition”), after the date hereof, Common Shares so that, after giving effect thereto,
the sole beneficial ownership of outstanding Common Shares by Mr. Cumming and/or Mr. Steinberg
would, in the aggregate, fall below 10% of the then outstanding Common Shares; provided that no
Change of Control shall be deemed to have occurred under clause (ii) if the Company’s 7-3/4% Senior
Notes due 2013 and 7% Senior Notes due 2013 are rated by both Moody’s and S&P as Investment Grade
both at the time of such Disposition and for a period of 90 days from the date of such Disposition
(it being understood that, with respect to the foregoing proviso, a Change of Control shall be
deemed to occur on the first date during such 90-day period when the Securities are no longer rated
as Investment Grade by either Moody’s or S&P). The term “Common Shares” shall include any
securities issued as dividends or distributions on the Common Shares. For purposes hereof, “sole
beneficial ownership” of Common Shares shall be deemed to include (i) all Common Shares received
after June 15, 1992 from Mr. Cumming or Mr. Steinberg by any member of their respective immediate
families or by any trust for the benefit of either of them or any member of their respective
immediate families (a “Recipient”), which Common Shares remain held by a Recipient during the
lifetime of Mr. Cumming or Mr. Steinberg (unless sold, transferred or disposed of by such Recipient
during the lifetime of Mr. Cumming or Mr. Steinberg, as the case may be, in which case such
Disposition by such Recipient shall constitute a Disposition by Mr. Cumming or Mr. Steinberg, as
the case may be) and (ii) after the death of Mr. Cumming and/or Mr. Steinberg, all Common Shares
owned as of the date of death by the decedent, and any Recipient of the decedent, regardless of
whether such Recipient continues to own such Common Shares after the date of death. In determining
the number of outstanding Common Shares then held by Messrs. Cumming and Steinberg and the total
number of outstanding Common Shares, there shall be excluded Common Shares issued by the Company
after December 31, 1991, or the conversion into or exchange for, after December 31, 1991, Common
Shares or securities convertible into or exchangeable for Common Shares.

 

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ARTICLE FOUR

SUCCESSOR CORPORATION

SECTION 4.01. When Company May Merge, etc.

          The Company shall not consolidate or merge with or into, or sell, lease, convey or otherwise
dispose of all or substantially all of its assets (it being understood that a sale of less than 90%
of the Company’s total assets shall not be deemed a sale, lease, conveyance or disposition of
substantially all of the Company’s assets), in one transaction or a series of related transactions,
to, any Person unless:

     (1) the Person formed by or surviving any such consolidation or merger (if other than
the Company), or to which such sale, lease, conveyance or other disposition shall have been
made, is a corporation organized and existing under the laws of the United States, any state
thereof or the District of Columbia;

     (2) the corporation formed by or surviving any such consolidation or merger (if other
than the Company), or to which such sale, lease, conveyance or other disposition shall have
been made, assumes by supplemental indenture in a form satisfactory to the Trustee all the
obligations of the Company under the Securities and this Indenture;

     (3) immediately before and immediately after such transaction no Default or Event of
Default exists; and

     (4) the Company or any corporation formed by or surviving any such consolidation or
merger, or to which such sale, lease, conveyance or other disposition shall have been made,
shall immediately thereafter have a Consolidated Net Worth (after purchase accounting
adjustments) at least equal to the Consolidated Net Worth of the Company immediately
preceding such transaction.

          The Company shall deliver to the Trustee prior to the consummation of the proposed transaction
an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the
proposed transaction and such supplemental indenture comply with this Indenture.

SECTION 4.02. Successor Corporation Substituted.

          Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all
or substantially all of the assets of the Company in accordance with Section 4.01, the successor
corporation formed by such consolidation or into which the Company is merged or to which such sale,
lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the same effect as if such
successor corporation had been named as the Company herein.

 

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ARTICLE FIVE

DEFAULTS AND REMEDIES

SECTION 5.01. Events of Default.

     An “Event of Default” occurs if:

     (1) the Company defaults in the payment of interest on any Security when the same
becomes due and payable and such default continues for a period of 30 days;

     (2) the Company defaults in the payment of the principal (including premium, if any) of
any Security when the same becomes due and payable at maturity, upon redemption or
otherwise;

     (3) the Company fails to comply with any of its other agreements in the Securities or
this Indenture and such default continues for the period and after the notice specified
below in the last paragraph of this Section 5.01;

     (4) (A) the Company or any Material Subsidiary defaults in the payment when due of
principal of, interest on, or other amounts payable in respect of any of its respective
Indebtedness (other than the Securities) in the aggregate principal or like amount of
$                     or more, or (B) the Company or any Material Subsidiary fails to perform or
comply with any of its other agreements in respect of any of its respective Indebtedness
(other than the Securities) in the aggregate principal or like amount of $                     or
more and such Indebtedness shall be or shall have been declared to be due and payable
immediately and such acceleration shall not have been rescinded or annulled;

     (5) the Company or any Material Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

     (A) commences a voluntary case or proceeding,

     (B) consents to the entry of an order for relief against it in an involuntary
case or proceeding,

     (C) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or

     (D) makes a general assignment for the benefit of its creditors, or

     (6) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

 

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     (A) is for relief (with respect to the petition commencing such case) against
the Company or any Material Subsidiary in an involuntary case or proceeding,

     (B) appoints a Custodian of the Company or any Material Subsidiary or for all
or substantially all of its respective property, or

     (C)
orders the liquidation of the Company or any Material
Subsidiary,

and the order or decree remains unstayed and in effect for 60 days.

          The term “Bankruptcy Law” means Title 11, U.S. Code or any similar Federal or state law for
the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

          A Default under clause (3) of this Section 5.01 is not an Event of Default until the Trustee
or the Holders of at least 25% in principal amount of the Securities notify the Company and the
Trustee of the Default and the Company does not cure the Default within 30 days after receipt of
the notice. The notice must specify the Default, demand that it be remedied and state that the
notice is a “Notice of Default.”

SECTION 5.02. Acceleration.

          If an Event of Default (other than an Event of Default with respect to the Company specified
in clause (5) or (6) of Section 5.01) occurs and is continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the Securities then
outstanding by notice to the Company and the Trustee, may declare the principal (including premium,
if any) of, and the accrued interest on, all of the Securities then outstanding due and payable
immediately. Upon such declaration such principal (including premium, if any) and interest shall
be due and immediately payable.

          If an Event of Default with respect to the Company specified in clause (5) or (6) of Section
5.01 occurs, all unpaid principal of, premium, if any, and accrued interest on the Securities then
outstanding shall ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Holder.

          Notwithstanding anything to the contrary in the preceding two paragraphs, the Holders of a
majority in principal amount of the Securities then outstanding by notice to the Trustee may
rescind an acceleration and its consequences if all existing Events of Default have been cured or
waived and if the rescission would not conflict with any judgment or decree. When a Default or
Event of Default is cured or waived, it ceases to exist.

 

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SECTION 5.03. Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of principal or interest on the Securities
or to enforce the performance of any provision of the Securities or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair
the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy
is exclusive of any other remedy. All available remedies are cumulative.

SECTION 5.04. Waiver of Past Defaults.

          Subject to Sections 5.02, 5.07 and 8.02, the Holders of a majority in principal amount of the
Securities by notice to the Trustee may waive an existing Default or Event of Default and its
consequences, except (i) a Default or Event of Default in payment of principal (including premium,
if any) of, or interest on, any Security or (ii) a failure by the Company to convert any Securities
into Common Shares in accordance with Article 10 hereof.

SECTION 5.05. Control by Majority.

          The Holders of a majority in principal amount of the Securities may direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee or exercising any
trust or power conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture, that is unduly prejudicial to the rights of another
Securityholder, as such, or that would involve the Trustee in personal liability.

SECTION 5.06. Limitation on Remedies.

          Except as provided in Section 5.07, a Securityholder may not pursue any remedy with respect to
this Indenture or the Securities unless:

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

     (2) the Holders of at least 25% in principal amount of the Securities make a written
request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense;

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

 

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

          A Securityholder may not use this Indenture to prejudice the rights of another Securityholder
or to obtain a preference or priority over other Securityholders.

SECTION 5.07. Rights of Holders To Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
as set forth in this Indenture to receive payment of principal (including premium) of and interest
on the Security, on or after the respective due dates expressed in the Security, or to bring suit
for the enforcement of any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to bring suit for the enforcement of the right to convert the Security shall not be impaired or
affected without the consent of the Holder.

SECTION 5.08. Collection Suit by Trustee.

          If an Event of Default in payment of interest or principal specified in Section 5.01(1) or (2)
occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal and interest remaining unpaid
and such further amounts as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation and expenses of the Trustee, its agents and counsel, and any
other amounts due to the Trustee under Section 6.07.

SECTION 5.09. Trustee May File Proofs of Claim.

          (a) The Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the Securityholders allowed
in any judicial proceedings relative to the Company, its creditors or its property.

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

 

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SECTION 5.10. Priorities.

          If the Trustee collects any money pursuant to this Article Five, it shall pay out the money in
the following order:

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

     Second: to Securityholders for amounts due and unpaid on the Securities for principal
and interest, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Securities for principal and interest, respectively; and

     Third: to the Company.

          The Trustee may fix a record date and payment date for any payment to Securityholders pursuant
to this Section 5.10.

SECTION 5.11. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 5.11 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 5.07, or a suit by Holders of more than 10% in
principal amount of the then outstanding Securities.

ARTICLE SIX

TRUSTEE

SECTION 6.01. Duties of Trustee.

          (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise its
rights and powers and use the same degree of care and skill in their exercise as a prudent person
would exercise or use under the circumstances in the conduct of his own affairs.

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

     (1) The Trustee need perform only those duties that are specifically set forth (or
incorporated by reference) in this Indenture and no others.

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

 

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upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture. However, the Trustee shall examine such certificates and
opinions to determine whether or not they conform to the requirements of this Indenture.

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

     (1) This paragraph (c) does not limit the effect of paragraph (b) of this Section.

     (2) The Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.

     (3) The Trustee shall not be liable with respect to action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 5.05, and the
Trustee shall be entitled from time to time to request such a direction.

          (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

          (e) The Trustee shall be under no obligation and may refuse to perform any duty or exercise
any right or power unless it receives reasonable security or indemnity reasonably satisfactory to
it against any loss, liability or expense.

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

SECTION 6.02. Rights of Trustee.

          Subject to Section 6.01:

     (a) The Trustee may conclusively rely on any document believed by it to be genuine and
to have been signed or presented by the proper person. The Trustee may rely on and shall be
protected in acting or refraining from acting upon any document believed by it to be genuine
and to have been signed or presented by the proper person. 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 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

 

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or by agent or attorney, to the extent reasonably required by such inquiry or
investigation.

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

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

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

     (e) The permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty, and the Trustee shall not be answerable for other than its
negligence or willful misconduct.

     (f) The Trustee shall not be charged with knowledge of any Default or Event of Default
with respect to the Securities, unless either (i) a Trust Officer shall have actual
knowledge of such Default or Event of Default or (ii) written notice of such Default or
Event of Default shall have been given to the Trustee by the Company or by any Holder of the
Securities.

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

     (h) Except as otherwise specifically provided herein, (i) all references to the Trustee
shall be deemed to refer to the Trustee in its capacity as Trustee and in its capacity as
Agent, and (ii) every provision of this Indenture relating to the conduct or affecting the
liability or offering protection, immunity or indemnity to the Trustee shall be deemed to
apply with the same force and effect to the Trustee acting in its capacity as Agent.

SECTION 6.03. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Subsidiaries or Affiliates with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee must comply with Sections 6.10 and 6.11.

 

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SECTION 6.04. Trustee’s Disclaimer.

          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities,
and it shall not be responsible for any statement in the Securities other than its certificate of
authentication.

SECTION 6.05. Notice of Defaults.

          If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail to each Securityholder pursuant to Section 9.02 a notice of the Default within 90 days after
it occurs. Except in the case of a Default in any payment on any Security, the Trustee may
withhold the notice if and so long as a committee of its Trust Officers in good faith determines
that withholding the notice is in the interests of Securityholders.

SECTION 6.06. Reports by Trustee to Holders.

          Within 60 days after each                     , beginning with                      , 20___, the Trustee shall mail
to each Securityholder a brief report dated as of such                      that complies with TIA § 313(a),
but only if such report is required in any year under TIA § 313(a). The Trustee also shall comply
with TIA §§ 313(b) and 313(c).

          A copy of each report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange on which the Securities are listed. The Company shall notify the
Trustee in writing if the Securities become listed on any national securities exchange or of any
delisting thereof.

SECTION 6.07. Compensation and Indemnity.

          The Company shall pay the Trustee from time to time reasonable compensation for its services
(which compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust). The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses, disbursements and advances incurred by it. Such expenses may
include the reasonable compensation and expenses of the Trustee’s agents and counsel.

          The Trustee shall not be under any obligation to institute any suit, or take any remedial
action under this Indenture, or to enter any appearance or in any way defend any suit in which it
may be a defendant, or to take any steps in the execution of the trusts created hereby or thereby
or in the enforcement of any rights and powers under this Indenture, until it shall be indemnified
to its satisfaction against any and all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture, including compensation for
services, costs, expenses, outlays, counsel fees and other disbursements,

 

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and against all liability not due to its negligence or willful misconduct. The Company
shall indemnify the Trustee against any loss or liability incurred by it in connection with the
acceptance and administration of the trust and its duties hereunder as Trustee, Registrar and/or
Paying Agent, including the costs and expenses of defending itself against any claim or liability
in connection with the exercise or performance of any of its powers or duties hereunder. The
Trustee shall notify the Company promptly of any claim for which it may seek indemnity; however,
unless the position of the Company is prejudiced by such failure, the failure of the Trustee to
promptly notify the Company shall not limit its right to indemnification. The Company shall defend
each such claim and the Trustee shall cooperate in the defense. The Trustee may retain separate
counsel and the Company shall reimburse the Trustee for the reasonable fees and expenses of such
counsel. The Company need not pay for any settlement made without its consent.

          The Company need not reimburse any expense or indemnify against any loss or liability incurred
by the Trustee through negligence or willful misconduct.

          To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to that of the Holders of the Securities on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular Securities.

          When the Trustee incurs expenses or renders services after the occurrence of any Event of
Default specified in Section 5.01(5) or (6), the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law.

          The obligations of the Company under this Section 6.07 shall survive the registration or
removal of the Trustee and the termination, satisfaction or discharge of this Indenture.

SECTION 6.08. Replacement of Trustee.

          The Trustee may resign by so notifying the Company. The Holders of a majority in principal
amount of the Securities may remove the Trustee by so notifying the Trustee in writing. The
Company may remove the Trustee if:

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

     (2) the Trustee is adjudged a bankrupt or an insolvent;

     (3) a receiver or other public officer takes charge of the Trustee or its property; or

     (4) the Trustee becomes incapable of acting as Trustee hereunder.

 

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

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee, subject to the lien provided for in
Section 6.07, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.
A successor Trustee shall mail notice of its succession to each Securityholder.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of a majority in principal amount
of the Securities may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

          If the Trustee fails to comply with Section 6.10, any Securityholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.
Any successor Trustee shall comply with TIA § 310(a)(5).

SECTION 6.09. Successor Trustee by Merger, etc.

          If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust assets to, another corporation, the successor corporation without any further
act shall be the successor Trustee; provided such corporation or association shall be otherwise
eligible and qualified under this Article Six.

SECTION 6.10. Eligibility; Disqualification.

          This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1).
The Trustee shall always have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition. The Trustee shall also comply with TIA §
310(b).

SECTION 6.11. Preferential Collection of Claims Against Company.

          The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

 

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ARTICLE SEVEN

DISCHARGE OF INDENTURE

SECTION 7.01. Termination of Company’s Obligations.

          The Company may terminate all its obligations under the Securities and this Indenture if:

     (a) all Securities previously authenticated and delivered (other than destroyed, lost
or stolen Securities which have been replaced or paid) have been delivered to the Trustee
for cancellation and the Company has paid all sums payable by it hereunder; or

     (b) (1) the Securities mature within one year or all of them are to be called for
redemption within one year under arrangements satisfactory to the Trustee for giving the
notice of redemption; and

     (2) the Company irrevocably deposits in trust with the Trustee immediately available
funds or U.S. Government Obligations sufficient to pay principal and interest on the
Securities to maturity or redemption, as the case may be.

However, the Company’s obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 3.01, 3.04, 6.07 and
6.08 shall survive until the Securities are no longer outstanding. Thereafter the Company’s
obligations in Section 6.07 shall survive.

          Upon receipt, in the case of clause (a) or (b) above in this Section 7.01, by the Trustee of
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, the Trustee upon request shall acknowledge in writing the discharge of the Company’s
obligations under the Securities and this Indenture except for those surviving obligations
specified above.

          In order to have money available on a payment date to pay principal or interest on the
Securities, the U.S. Government Obligations shall be payable as to principal or interest on or
before such payment date in such amounts as will provide the necessary money. U.S. Government
Obligations shall not be callable at the issuer’s option.

          The term “U.S. Government Obligations” means direct obligations of the United States for the
payment of which the full faith and credit of the United States is pledged.

 

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SECTION 7.02. Application of Trust Money.

          The Trustee shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 7.01. It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with this Indenture to the payment of
principal and interest on the Securities.

SECTION 7.03. Repayment to Company.

          The Trustee and the Paying Agent shall promptly pay to the Company upon request any excess
money or securities held by them at any time. The Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal or interest that remains
unclaimed for two years; 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 of general circulation in The City of New York or mail to each such Holder 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 or mailing, any unclaimed balance of such money then
remaining will be paid to the Company.

SECTION 7.04. Reinstatement.

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

ARTICLE EIGHT

AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 8.01. Without Consent of Holders.

          Subject to Section 5.07, the Company, when authorized by a resolution of its Board of
Directors, may amend or supplement this Indenture or the Securities without notice to or consent of
any Securityholder:

 

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

     (2) to comply with Section 4.01;

     (3) to provide for uncertificated Securities in addition to certificated Securities;

     (4) to comply with any requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA; or

     (5) to make any change that would provide any additional benefit or rights to the
Securityholders or that does not adversely affect the rights of any Securityholder.

          Notwithstanding the above, the Trustee and the Company may not make any change that adversely
affects the legal rights of any Securityholders hereunder.

SECTION 8.02. With Consent of Holders.

          Subject to Section 5.07, the Company, when authorized by a resolution of its Board of
Directors, may amend or supplement this Indenture or the Securities with the written consent of the
Holders of at least a majority in principal amount of the Securities then outstanding, and the
Holders of a majority in principal amount of the Securities may waive compliance by the Company
with any provision of this Indenture or the Securities. However, without the consent of each
Securityholder affected, an amendment, supplement or waiver, including a waiver pursuant to Section
5.04, may not:

     (1) reduce the amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

     (2) reduce the rate of or change or extend the time for payment of principal of
(including premium, if any) or interest on any Security;

     (3) reduce the principal of (including premium, if any) or change the fixed maturity of
any Security;

     (4) waive a default in the payment of the principal of or interest on any Security;

     (5) make any Security payable in money other than that stated in the Security;

     (6) make any change that adversely affects the right to convert any Security;

     (7) make any change in the subordination of the Securities in a manner that is adverse
to the Holders; or

 

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     (8) make any change in this Section, Section 5.04 or Section 5.07.

          Notwithstanding the above and Section 5.07, the Holders of a majority in principal amount of
the Securities then outstanding may waive compliance by the Company with Section 3.08 of this
Indenture.

          It shall not be necessary for the consent of the Holders under this Section 8.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof. Any amendment, waiver or consent shall be deemed
effective upon receipt by the Trustee of the necessary consents and shall not require execution of
any supplemental indenture to be effective.

          After an amendment or waiver under this Section 8.02 becomes effective, the Company shall mail
to the Holders of each Security affected thereby, with a copy to the Trustee, a notice briefly
describing the amendment or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
waiver, consent or supplemental indenture. Except as otherwise provided in this Section 8.02, the
Holders of a majority in aggregate principal amount of the Securities then outstanding may waive
compliance in a particular instance by the Company with any provisions of this Indenture or the
Securities.

SECTION 8.03. Compliance with Trust Indenture Act.

          Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA
as then in effect.

SECTION 8.04. Revocation and Effect of Consents.

          A consent to an amendment, supplement or waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder’s Security, even if notation of the consent is not made on any
Security. However, until an amendment or waiver becomes effective, any such Holder or subsequent
Holder may revoke the consent as to his Security or portion of a Security. For such revocation to
be effective, the Trustee must receive the notice of revocation before the date the amendment,
supplement or waiver becomes effective.

          After an amendment, supplement or waiver becomes effective, it shall bind every Securityholder
unless it makes a change described in any of clauses (1) through (6) of Section 8.02. In that case
the amendment, supplement or waiver shall bind each Holder of a Security who has consented to it
and every subsequent Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder’s Security.

 

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SECTION 8.05. Notation on or Exchange of Securities.

          If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security about the changed terms and return it to the Holder. Alternatively, if
the Company or the Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.

SECTION 8.06. Trustee Protected.

          The Trustee shall sign any amendment or supplement or waiver authorized pursuant to this
Article Eight if the amendment or supplement or waiver does not adversely affect the rights of the
Trustee. If it does adversely affect the rights of the Trustee, the Trustee may but need not sign
it. In signing such amendment or supplement or waiver the Trustee shall be entitled to receive,
and (subject to Article Six) shall be fully protected in relying upon an Opinion of Counsel stating
that any amendment or supplement or waiver of the type referred to in Section 8.02 is authorized or
permitted by and complies with this Indenture. The Company may not sign an amendment or supplement
until the Board of Directors approves it.

ARTICLE NINE

SUBORDINATION

SECTION 9.01. Securities Subordinated to Senior Indebtedness.

          The Company agrees, and each Holder of the Securities by its acceptance thereof likewise
agrees, that the payment of all obligations with respect to the Securities is subordinated, to the
extent and in the manner provided in this Article, to the prior payment in full of all Senior
Indebtedness.

          This Article Nine shall constitute a continuing offer to all persons who, in reliance upon
such provisions, become holders of, or continue to hold, Senior Indebtedness, and such provisions
are made for the benefit of the holders of Senior Indebtedness, and such holders and/or each of
them may enforce such provisions. No amendment of any provision of this Article Nine shall be
effective as against any holder of Senior Indebtedness who has not consented thereto.

SECTION 9.02. Company Not To Make Payments with Respect to Securities in Certain
Circumstances.

          (a) Upon the maturity of the principal of any Senior Indebtedness by lapse of time,
acceleration or otherwise, all Obligations thereon shall first be paid in full, or such payment
duly provided for in cash or in a manner satisfactory to the holders of such Senior Indebtedness,

 

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before any payment is made on account of any Obligations with respect to the Securities or to
acquire any of the Securities.

          (b) Upon the happening of an event of default (or if any event of default would result upon
any payment with respect to the Securities) with respect to any Senior Indebtedness, as such event
of default is defined therein or in the instrument under which it is outstanding, permitting the
holders to accelerate the maturity thereof, and, if the default is other than default in payment of
the principal or interest on such Senior Indebtedness (a “non-payment default”), upon written
notice thereof given to the Company and the Trustee by the holders of such Senior Indebtedness or
their representative, then, unless and until such event of default shall have been cured or waived
or shall have ceased to exist, no payment shall be made by the Company of any Obligations with
respect to the Securities or to acquire any of the Securities; provided, however, that in the event
of a non-payment default, such payment blockage shall not exceed a period of 179 days commencing on
the date of receipt by the Company of written notice of such non-payment default or event of
default by a holder of such Senior Indebtedness or by its representative; provided that during any
360-day period the aggregate of all payment blockage periods pursuant hereto shall not exceed 179
days and there shall be a period of at least 181 consecutive days in each 360-day period when no
payment blockage period pursuant hereto is in effect.

          (c) In the event that, notwithstanding the provisions of this Section 9.02, the Company shall
make any payment to the Trustee or the Holders on account of any Obligations with respect to the
Securities, after the happening of a default in payment of the principal of Senior Indebtedness or
an event of default in respect of the payment of interest on Senior Indebtedness or after receipt
by the Company and the Trustee of written notice as provided in this Section 9.02 of an event of
default with respect to any Senior Indebtedness, then, unless and until such default or event of
default shall have been cured or waived or shall have ceased to exist, such payment (subject to the
provisions of Sections 9.06 and 9.07) shall be held by the Trustee or Holders, as the case may be,
in trust for the benefit of, and shall be paid over and delivered to, the holders of Senior
Indebtedness (pro rata as to each of such holders on the basis of the respective amounts of Senior
Indebtedness held by them) or their representative or the trustee under the indenture or other
agreement (if any) pursuant to which Senior Indebtedness may have been issued, as their respective
interests may appear, for application to the payment of all Senior Indebtedness remaining unpaid to
the extent necessary to pay all Senior Indebtedness in full in accordance with its terms, after
giving effect to any concurrent payment or distribution or provision therefor to the holders of
Senior Indebtedness. The Company shall give prompt written notice to the Trustee of any default
under any Senior Indebtedness or under any agreement pursuant to which Senior Indebtedness may have
been issued. Notwithstanding the foregoing, the provisions of this Section 9.02(c) shall not apply
to the fees and expenses due to the Trustee pursuant to Section 6.07 hereof, which fees and
expenses shall be paid directly to the Trustee.

 

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	SECTION 9.03.	 	Securities Subordinated to Prior Payment of All Senior Indebtedness
on Dissolution, Liquidation or Reorganization of Company.

          Upon any distribution of assets of the Company upon any dissolution, winding up, liquidation
or reorganization of the Company (whether in bankruptcy, insolvency or receivership proceedings or
upon an assignment for the benefit of creditors or otherwise) tending towards liquidation of the
business and assets of the Company:

     (a) the holders of all Senior Indebtedness shall first be entitled to receive payment
in full of all Obligations due thereon (including without limitation interest accruing after
the commencement of any such proceeding at the rate specified in the respective Senior
Indebtedness) before the Holders of the Securities are entitled to receive any payment on
account of any Obligations with respect to the Securities;

     (b) any payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Holders of the Securities or the
Trustee on behalf of the Holders of the Securities would be entitled except for the
provisions of this Article Nine shall be paid by the liquidating trustee or agent or other
person making such payment or distribution directly to the holders of Senior Indebtedness or
their representative, or to the trustee under any indenture under which Senior Indebtedness
may have been issued, to the extent necessary to make payment in full of all Senior
Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution
or provision therefor to the holders of such Senior Indebtedness; and

     (c) in the event that notwithstanding the foregoing provisions of this Section 9.03,
any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, shall be received by the Trustee or the Holders of the
Securities on account of any Obligations with respect to the Securities before all Senior
Indebtedness is paid in full, or effective provision made for its payment, such payment or
distribution (subject to the provisions of Section 9.06 and 9.07) shall be received and held
in trust for and shall be paid over to the holders of the Senior Indebtedness remaining
unpaid or unprovided for or their representative, or to the trustee under any indenture
under which Senior Indebtedness may have been issued, for application to the payment of such
Senior Indebtedness until all such Senior Indebtedness shall have been paid in full, after
giving effect to any concurrent payment or distribution or provision therefor to the holders
of such Senior Indebtedness.

          The Company shall give prompt written notice to the Trustee of any dissolution, winding up,
liquidation or reorganization of the Company.

 

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	SECTION 9.04.	 	Securityholders To Be Subrogated to Rights of Holders of Senior
Indebtedness.

          Subject to the payment in full of all Senior Indebtedness, the Holders of the Securities shall
be subrogated to the rights of the holders of Senior Indebtedness to receive payments or
distributions of assets of the Company applicable to the Senior Indebtedness until all amounts
owing on the Securities shall be paid in full, and for the purpose of such subrogation no payments
or distributions to the holders of the Senior Indebtedness by or on behalf of the Company or by or
on behalf of the Holders of the Securities by virtue of this Article Nine which otherwise would
have been made to the Holders of the Securities shall, as between the Company and the Holders of
the Securities, be deemed to be payment by the Company to or on account of the Senior Indebtedness,
it being understood that the provisions of this Article Nine are and are intended solely for the
purpose of defining the relative rights of the Holders of the Securities, on the one hand, and the
holders of the Senior Indebtedness, on the other hand.

SECTION 9.05. Obligation of the Company Unconditional.

          Nothing contained in this Article Nine or elsewhere in this Indenture or in any Security is
intended to or shall impair, as between the Company and the Holders of the Securities, the
obligation of the Company, which is absolute and unconditional, to pay to the Holders of the
Securities the principal and interest on the Securities as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the relative rights of
the Holders of the Securities and creditors of the Company other than the holders of the Senior
Indebtedness, nor shall anything herein or therein prevent the Trustee or the Holder of any
Security from exercising all remedies otherwise permitted by applicable law upon Default under this
Indenture, subject to the rights, if any, under this Article Nine of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received upon the exercise
of any such remedy. Upon any distribution of assets of the Company referred to in this Article
Nine, the Trustee, subject to the provisions of Sections 6.01 and 6.02, and the Holders of the
Securities shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are
pending, or a certificate of the liquidating trustee or agent or other person making any
distribution to the Trustee or to the Holders of the Securities, for the purpose of ascertaining
the persons entitled to participate in such distribution, the holders of the Senior Indebtedness
and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article Nine.

			
	SECTION 9.06.	 	Trustee Entitled To Assume Payments Not Prohibited in Absence of
Notice.

          The Trustee shall not at any time be charged with knowledge of the existence of any facts
which would prohibit the making of any payment to or by the Trustee, unless a Trust Officer shall
have received at its corporate trust department timely written notice thereof from

 

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the Company or from one or more holders of Senior Indebtedness or from any trustee thereof;
and, prior to the receipt of any such written notice, the Trustee, subject to the provisions of
Article Six, shall be entitled to assume conclusively that no such facts exist. The Trustee shall
be entitled to rely on the delivery to a Trust Officer of a timely written notice by a person
representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder)
to establish that such notice has been given by a holder of Senior Indebtedness or a trustee on
behalf of any such holder or holders.

SECTION 9.07. Application by Trustee of Monies Deposited with It.

          Except as provided in Section 7.02, any deposit of monies by the Company with the Trustee or
any Paying Agent (whether or not in trust) for the payment of the principal of or interest on any
Securities shall be subject to the provisions of Sections 9.01, 9.02, 9.03 and 9.04 except that, if
prior to the third business day prior to the date on which by the terms of this Indenture any such
monies may become payable for any purpose (including, without limitation, the payment of either the
principal or the interest on any Security) the Trustee or, in the case of any such deposit of
monies with a Paying Agent, the Paying Agent shall not have received with respect to such monies
the notice provided for in Section 9.06, then the Trustee or such Paying Agent, as the case may be,
shall have full power and authority to receive such monies and to apply the same to the purpose for
which they were received, and shall not be affected by any notice to the contrary which may be
received by it on or after such third business day. In the event that the Trustee determines in
good faith that further evidence is required with respect to the right of any person as a holder of
Senior Indebtedness to participate in any payment or distribution pursuant to this Article Nine,
the Trustee may request such person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness held by such person, the extent to which such
person is entitled to participate in such payment or distribution and any other facts pertinent to
the rights of such person under this Article Nine, and if such evidence is not furnished the
Trustee may defer any payment to such person pending judicial determination as to the right of such
person to receive such payment.

          The Trustee, however, shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness but shall have only such obligations to such holders as are expressly set forth in
this Article Nine.

			
	SECTION 9.08.	 	Subordination Rights Not Impaired by Acts or Omissions of Company or
Holders of Senior Indebtedness.

          No right of any present or future holders of any Senior Indebtedness to enforce subordination
as provided herein shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Company with the terms of this Indenture, regardless of any
knowledge thereof which any such holder may have or be otherwise charged with.

 

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	SECTION 9.09.	 	Securityholders Authorize Trustee To Effectuate Subordination of
Securities.

          Each Holder of the Securities by his acceptance thereof authorizes and expressly directs the
Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article Nine and appoints the Trustee his attorney-in-fact for such
purpose, including, in the event of any dissolution, winding up, liquidation or reorganization of
the Company (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment
for the benefit of creditors or otherwise) tending towards liquidation of the business and assets
of the Company, the immediate filing of a claim for the unpaid balance of its or his Securities in
the form required in said proceedings and the causing of said claim to be approved. If the Trustee
does not file a proper claim or proof of debt in the form required in such proceeding prior to 30
days before the expiration of the time to file such claims, then the holders of Senior Indebtedness
are hereby authorized to have the right to file and are hereby authorized to file an appropriate
claim for and on behalf of the Holders of said Securities.

SECTION 9.10. Right of Trustee To Hold Senior Indebtedness.

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

SECTION 9.11. Article Nine Not To Prevent Events of Default.

          The failure to make a payment on account of principal or interest by reason of any provision
in this Article Nine shall not be construed as preventing the occurrence of an Event of Default
under Section 5.01.

SECTION 9.12. Ranking; Designation.

          The Securities rank senior in right of payment to the 8.65% Junior Subordinated Deferrable
Interest Debentures due 2027 and pari passu in right of payment to the 33/4% Convertible Senior
Subordinated Notes due 2014.

SECTION 9.13. Trustee’s Compensation Not Prejudiced.

          Nothing in this Article Nine will apply to amounts due to the Trustee pursuant to other
Sections in this Indenture.

 

 

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ARTICLE TEN

CONVERSION OF SECURITIES

SECTION 10.01. Right To Convert.

          Subject to and upon compliance with the provisions Sections 10.11 and 10.12 and the other
provisions of this Indenture, the Holder of any Security shall have the right, at his option, at
any time following the Issue Date and prior to the close of business on the Maturity Date, to
convert the principal amount of any such Security, or any portion of such principal amount which is
$_,000 or an integral multiple thereof, into that number of fully paid and non-assessable Common
Shares (as such shares shall then be constituted) obtained by dividing the principal amount of the
Security or portion thereof surrendered for conversion by the Conversion Price in effect at such
time, by surrender of the Security so to be converted in whole or in part in the manner provided in
Section 10.02. A Holder of Securities is not entitled to any rights of a holder of Common Shares
until such Holder has converted his Securities to Common Shares, and only to the extent such
Securities are deemed to have been converted to Common Shares under this Article Ten. The issuance
of Common Shares upon conversion of a Security shall be deemed to constitute payment on account of
the principal of such Security, and upon the issuance of Common Shares upon conversion of such
Security (except as contemplated by the penultimate paragraph of Section 10.02) the accrued and
unpaid interest on such Security shall be deemed to be paid in full rather than cancelled,
extinguished or forfeited. A Security with respect to which a Holder has delivered a notice in
accordance with Section 3.08 regarding such Holder’s election to require the Company to repurchase
such Holder’s Securities following the occurrence of a Change of Control may be converted in
accordance with this Article Ten only if such Holder withdraws such notice by delivering a written
notice of withdrawal to the Company prior to the close of business on the last business day prior
to the day fixed for repurchase.

			
	SECTION 10.02.	 	Exercise of Conversion Privilege; Issuance of Common Shares on
Conversion; No Adjustment for Interest or Dividends.

          In order to exercise the conversion privilege with respect to any Security in definitive form,
the Holder of any such Security to be converted in whole or in part shall surrender such Security,
duly endorsed, at an office or agency maintained by the Company pursuant to Section 3.04,
accompanied by the funds, if any, required by the penultimate paragraph of this Section 10.02, and
shall give written notice of conversion in the form provided on the Securities (which shall include
a confirmation that such conversion shall not violate the provisions of Section 10.11) (or such
other notice which is acceptable to the Company) to the office or agency that the Holder elects to
convert such Security or such portion thereof specified in said notice. Such notice shall also
state the name or names (with address) in which the certificate or certificates for Common Shares
which shall be issuable on such conversion shall be issued, and shall be accompanied

 

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by transfer taxes, if required, pursuant to Section 10.07. Each such Security
surrendered for conversion shall, unless the shares issuable on conversion are to be issued in the
same name as the registration of such Security, be duly endorsed by, or be accompanied by
instruments of transfer in form satisfactory to the Company duly executed by, the Holder or his
duly authorized attorney.

          In order to exercise the conversion privilege with respect to any interest in a Security in
global form, the beneficial holder must complete the appropriate instruction form for conversion
pursuant to the Depository’s book-entry conversion program, deliver by book-entry delivery an
interest in such Security in global form, furnish appropriate endorsements and transfer documents
if required by the Company or the Trustee or conversion agent, and pay the funds, if any, required
by the penultimate paragraph of this Section 10.02 and any transfer taxes, if required, pursuant to
Section 10.07.

          As promptly as practicable after satisfaction of the requirements for conversion set forth
above, subject to compliance with any restrictions on transfer if shares issuable on conversion are
to be issued in a name other than that of the Securityholder (as if such transfer were a transfer
of the Security or Securities (or portion thereof) so converted), the Company shall issue and shall
deliver to such Holder at the office or agency maintained by the Company for such purpose pursuant
to Section 3.04, a certificate or certificates for the number of full Common Shares issuable upon
the conversion of such Security or portion thereof in accordance with the provisions of this
Article and a check or cash in respect of any fractional interest in respect of a Common Share
arising upon such conversion, as provided in Section 10.03, and, if applicable, any cash payment
pursuant to Section 10.05(k) (which payment, if any, shall be paid no later than five business days
after satisfaction of the requirements for conversion set forth above). In case any Security of a
denomination greater than $_,000 shall be surrendered for partial conversion, and subject to
Section 2.02, the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of the Security so surrendered, without charge to him, a new Security or Securities in
authorized denominations in an aggregate principal amount equal to the unconverted portion of the
surrendered Security.

          Each conversion shall be deemed to have been effected as to any such Security (or portion
thereof) on the date on which the requirements set forth above in this Section 10.02 have been
satisfied as to such Security (or portion thereof), and the person in whose name any certificate or
certificates for Common Shares shall be issuable upon such conversion shall be deemed to have
become on said date the holder of record of the shares represented thereby; provided, however, that
any such surrender on any date when the stock transfer books of the Company shall be closed shall
constitute the person in whose name the certificates are to be issued as the record holder thereof
for all purposes on the next succeeding day on which such stock transfer books are open, but such
conversion shall be at the Conversion Price in effect on the date upon which such Security shall be
surrendered.

 

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          Any Security or portion thereof surrendered for conversion during the period from the close of
business on the record date for any interest payment date through the close of business on the
business day next preceding such interest payment date shall be accompanied by payment, in New York
Clearing House funds or other funds acceptable to the Company, of an amount equal to the interest
otherwise payable on such interest payment date on the principal amount being converted; provided,
however, that no such payment need be made if there shall exist at the time of conversion a default
in the payment of interest on the Securities. Except as provided above in this Section 10.02, no
adjustment shall be made for interest accrued on any Security converted or for dividends on any
shares issued upon the conversion of such Security as provided in this Article.

          Upon the conversion of an interest in a Security in global form, the Trustee at the written
direction of the Company, shall make a notation on such Security in global form as to the reduction
in the principal amount represented thereby.

SECTION 10.03. Cash Payments in Lieu of Fractional Shares.

          No fractional Common Shares or scrip representing fractional shares shall be issued upon
conversion of Securities. If more than one Security shall be surrendered for conversion at one
time by the same Holder, the number of full shares which shall be issuable upon conversion shall be
computed on the basis of the aggregate principal amount of the Securities (or specified portions
thereof to the extent permitted hereby) so surrendered for conversion. If any fractional Common
Shares otherwise would be issuable upon the conversion of any Security or Securities, the Company
shall make an adjustment therefor in cash at the current market value thereof to the Holder of
Securities. The current market value of a Common Share shall be the Closing Price on the first
Trading Day immediately preceding the day on which the Securities (or specified portions thereof)
are deemed to have been converted and such Closing Price shall be determined as provided in Section
10.05(e).

SECTION 10.04. Conversion Price.

          The conversion price per Common Share issuable upon conversion of the Securities (as such
price may be adjusted, herein called the “Conversion Price”) shall initially be $___(which
reflects a conversion rate of                      Common Shares per $_,000 in principal amount of
Securities).

SECTION 10.05. Adjustment of Conversion Price.

          The Conversion Price shall be adjusted from time to time by the Company as follows:

     (a) In case the Company shall hereafter pay a dividend or make a distribution to all
holders of the outstanding Common Shares in Common Shares, the Conversion

 

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Price in effect at the opening of business on the date following the date fixed for the
determination of shareholders entitled to receive such dividend or other distribution shall
be reduced by multiplying such Conversion Price by a fraction of which the numerator shall
be the number of Common Shares outstanding at the close of business on the Record Date fixed
for such determination and the denominator shall be the sum of such number of shares and the
total number of shares constituting such dividend or other distribution, such reduction to
become effective immediately after the opening of business on the day following the Record
Date. If any dividend or distribution of the type described in this Section 10.05(a) is
declared but not so paid or made, the Conversion Price shall again be adjusted to the
Conversion Price which would then be in effect if such dividend or distribution had not been
declared.

     (b)

     (1) In case the Company shall issue short-term rights or warrants to all
holders of its outstanding Common Shares entitling them (for a period expiring
within forty-five (45) days after the date fixed for the determination of
shareholders entitled to receive such rights or warrants) to subscribe for or
purchase Common Shares at a price per share less than the Current Market Price on
the Record Date fixed for the determination of shareholders entitled to receive such
rights or warrants, the Conversion Price shall be adjusted so that the same shall
equal the price determined by multiplying the Conversion Price in effect at the
opening of business on the date after such Record Date by a fraction of which the
numerator shall be the number of Common Shares outstanding at the close of business
on the Record Date plus the number of shares which the aggregate offering price of
the total number of shares so offered for subscription or purchase would purchase at
such Current Market Price, and of which the denominator shall be the number of
Common Shares outstanding on the close of business on the Record Date plus the total
number of additional Common Shares so offered for subscription or purchase. Such
adjustment shall become effective immediately after the opening of business on the
day following the Record Date fixed for determination of shareholders entitled to
receive such rights or warrants. To the extent that Common Shares are not delivered
pursuant to such rights or warrants, upon the expiration or termination of such
rights or warrants the Conversion Price shall be readjusted to the Conversion Price
which would then be in effect had the adjustments made upon the issuance of such
rights or warrants been made on the basis of delivery of only the number of Common
Shares actually delivered. In the event that such rights or warrants are not so
issued, the Conversion Price shall again be adjusted to be the Conversion Price
which would then be in effect if such date fixed for the determination of
shareholders entitled to receive such rights or warrants had not been fixed. In
determining whether any rights or warrants entitle the holders to subscribe for or
purchase Common Shares at less than such Current Market Price,

 

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and in determining the aggregate offering price of such Common Shares, there
shall be taken into account any consideration received for such rights or warrants,
the value of such consideration, if other than cash, to be determined by the Board
of Directors.

     (2) No adjustment to the Conversion Price shall be made pursuant to this
Section 10.05(b) in connection with the issuance of any Common Shares, any rights,
options or warrants to subscribe for or purchase Common Shares or any securities
convertible into or exchangeable for Common Shares, or any rights, options or
warrants to subscribe for or purchase such convertible or exchangeable securities at
a price per share lower than the Current Market Price on the date of such issuance
which are issued pursuant to any firm commitment or best efforts underwritten public
offering for cash.

     (c) In case the outstanding Common Shares shall be subdivided into a greater number of
Common Shares, the Conversion Price in effect at the opening of business on the day
following the day upon which such subdivision becomes effective shall be proportionately
reduced, and conversely, in case outstanding Common Shares shall be combined into a smaller
number of Common Shares, the Conversion Price in effect at the opening of business on the
day following the day upon which such combination becomes effective shall be proportionately
increased, such reduction or increase, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which such subdivision or
combination becomes effective.

     (d) In case the Company declares an Excess Dividend, the Conversion Price shall be
reduced by the Dividend Adjustment Amount.

     (e) For purposes of this Section 10.05 the following terms shall have the meaning
indicated:

     (1) “Closing Price” with respect to any securities on any day shall mean the
closing sale price regular way on such day or, in case no such sale takes place on
such day, the average of the reported closing bid and asked prices, regular way, in
each case on the New York Stock Exchange, or, if such security is not listed or
admitted to trading on such Exchange, on the principal national securities exchange
or quotation system on which such security is quoted or listed or admitted to
trading, or, if not quoted or listed or admitted to trading on any national
securities exchange or quotation system, the average of the closing bid and asked
prices of such security on the over-the-counter market on the day in question as
reported by the National Quotation Bureau Incorporated, or a similar generally
accepted reporting service, or if not so available, in such manner as furnished by
any New York Stock Exchange member firm selected from time to time by the Board of
Directors for that purpose, or a price determined in good faith by the

 

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Board of Directors, whose determination shall be conclusive and described in a
Board Resolution.

     (2) “Current Market Price” shall mean the average of the daily Closing Prices
per Common Share for the ten (10) consecutive Trading Days immediately prior to the
date in question; provided, however, that (1) if the “ex” date (as hereinafter
defined) for any event (other than the issuance or distribution requiring such
computation) that requires an adjustment to the Conversion Price pursuant to Section
10.05(a), (b), (c) or (d) occurs during such ten (10) consecutive Trading Days, the
Closing Price for each Trading Day prior to the “ex” date for such other event shall
be adjusted by multiplying such Closing Price by the same fraction by which the
Conversion Price is so required to be adjusted as a result of such other event, (2)
if the “ex” date for any event (other than the issuance or distribution requiring
such computation) that requires an adjustment to the Conversion Price pursuant to
Section 10.05(a), (b), (c) or (d) occurs on or after the “ex” date for the issuance
or distribution requiring such computation and prior to the day in question, the
Closing Price for each Trading Day on and after the “ex” date for such other event
shall be adjusted by multiplying such Closing Price by the reciprocal of the
fraction by which the Conversion Price is so required to be adjusted as a result of
such other event, and (3) if the “ex” date for the issuance or distribution
requiring such computation is prior to the day in question, after taking into
account any adjustment required pursuant to clause (1) or (2) of this proviso, the
Closing Price for each Trading Day on or after such “ex” date shall be adjusted by
adding thereto the amount of any cash and the fair market value (as determined by
the Board of Directors in a manner consistent with any determination of such value
for purposes of Section 10.05(d), whose determination shall be conclusive and
described in a Board Resolution) of the evidences of indebtedness, shares of capital
stock or assets being distributed applicable to one Common Share as of the close of
business on the day before such “ex” date. For purposes of this paragraph, the term
“ex” date, (1) when used with respect to any issuance or distribution, means the
first date on which the Common Shares trade regular way on the relevant exchange or
in the relevant market from which the Closing Price was obtained without the right
to receive such issuance or distribution, (2) when used with respect to any
subdivision or combination of Common Shares, means the first date on which the
Common Share trades regular way on such exchange or in such market after the time at
which such subdivision or combination becomes effective, and (3) when used with
respect to any tender or exchange offer means the first date on which the Common
Share trades regular way on such exchange or in such market after the expiration
time of such offer. Notwithstanding the foregoing, whenever successive adjustments
to the Conversion Price are called for pursuant to this Section 10.05, such
adjustments shall be made to the Current Market Price as may be necessary or
appropriate to effectuate the intent of this Section

 

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10.05 and to avoid unjust or inequitable results as determined in good faith by
the Board of Directors.

     (3) “Dividend Adjustment Amount” means the amount, applicable to one Common
Share, by which the Excess Dividend exceeds the Permitted Dividend.

     (4) “Excess Dividend” means one or more dividends or distributions payable in
cash or Distributed Securities in excess of the Permitted Dividend.

     (5) “fair market value” shall mean the amount which a willing buyer would
pay a willing seller in an arm’s length transaction.

     (6) “Permitted Dividend” means, for the period from the Closing Date to and
including the Maturity Date, one or more dividends or distributions payable to all
holders of the Company’s Common Shares in cash, shares of capital stock (other than
any dividends or distributions to which Section 10.05(a) applies) or evidences of
its indebtedness or other assets (including securities, but excluding any rights or
warrants referred to in Section 10.05(b) (hereinafter called the “Distributed
Securities”)) on the Common Shares in an initial aggregate amount of $  per
share; provided that in the event the Company subdivides or combines the Common
Shares or the Company issues Common Shares as a dividend or distribution on Common
Shares such amount shall be adjusted by multiplying the amount by a fraction, of
which the numerator shall be the number of Common Shares that the Securities may be
converted into immediately prior to such subdivision or combination of Common Shares
or dividend or distribution on Common Shares, and of which the denominator shall be
the number of Common Shares that the Securities may be converted into immediately
thereafter.

     (7) “Record Date” shall mean, with respect to any dividend, distribution or
other transaction or event in which the holders of Common Shares have the right to
receive any cash, securities or other property or in which the Common Shares (or
other applicable security) are exchanged for or converted into any combination of
cash, securities or other property, the date fixed for determination of shareholders
entitled to receive such cash, securities or other property (whether such date is
fixed by the Board of Directors or by statute, contract or otherwise).

     (8) “Trading Day” shall mean (x) if the applicable security is listed or
admitted for trading on the New York Stock Exchange or another national securities
exchange, a day on which the New York Stock Exchange or another national securities
exchange is open for business or (y) if the applicable security is quoted on the
Nasdaq National Market, a day on which trades may be made thereon or (z) if the
applicable security is not so listed, admitted for trading or quoted, any

 

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day other than a Saturday or Sunday or a day on which banking institutions in
the State of New York are authorized or obligated by law or executive order to
close.

     (f) The Company may make such reductions in the Conversion Price, in addition to those
required by Sections 10.05(a), (b), (c) and (d) as the Board of Directors considers to be
advisable to avoid or diminish any income tax to holders of Common Shares or rights to
purchase Common Shares resulting from any dividend or distribution of Common Shares (or
rights to acquire Common Shares) or from any event treated as such for income tax purposes.

     To the extent permitted by applicable law, the Company from time to time may reduce the
Conversion Price by any amount for any period of time if the period is at least twenty (20)
days, the reduction is irrevocable during the period and the Board of Directors shall have
made a determination that such reduction would be in the best interests of the Company,
which determination shall be conclusive and described in a Board Resolution. Whenever the
Conversion Price is reduced pursuant to the preceding sentence, the Company shall mail to
the Holder of each Security at his last address appearing on the Security register provided
for in Section 2.03 a notice of the reduction at least fifteen (15) days prior to the date
the reduced Conversion Price takes effect, and such notice shall state the reduced
Conversion Price and the period during which it will be in effect.

     (g) No adjustment in the Conversion Price shall be required unless such adjustment
would require an increase or decrease of at least 1% in such price; provided, however, that
any adjustments which by reason of this Section 10.05(g) are not required to be made shall
be carried forward and taken into account in any subsequent adjustment. All calculations
under this Article Ten shall be made by the Company and shall be made to the nearest cent or
to the nearest one hundredth of a share, as the case may be. No adjustment need be made for
a change in the par value or no par value of the Common Shares.

     (h) Whenever the Conversion Price or Permitted Dividend is adjusted as herein provided,
the Company shall promptly file with the Trustee and any Conversion Agent other than the
Trustee an Officers’ Certificate setting forth the Conversion Price or Permitted Dividend
after such adjustment and setting forth a brief statement of the facts requiring such
adjustment. Promptly after delivery of such certificate, the Company shall prepare a notice
of such adjustment of the Conversion Price or Permitted Dividend setting forth the adjusted
Conversion Price or Permitted Dividend and the date on which each adjustment becomes
effective and shall mail such notice of such adjustment of the Conversion Price or Permitted
Dividend to the Holder of each Security at his last address appearing on the Security
register provided for in Section 2.03, within twenty (20) days of the effective date of such
adjustment. Failure to deliver such notice shall not effect the legality or validity of any
such adjustment.

 

-51-

     (i) In any case in which this Section 10.05 provides that an adjustment shall become
effective immediately after a Record Date for an event, the Company may defer until the
occurrence of such event (i) issuing to the Holder of any Security converted after such
Record Date and before the occurrence of such event the additional Common Shares issuable
upon such conversion by reason of the adjustment required by such event over and above the
Common Shares issuable upon such conversion before giving effect to such adjustment and (ii)
paying to such Holder any amount in cash in lieu of any fraction pursuant to Section 10.03.

     (j) For purposes of this Section 10.05, the number of Common Shares at any time
outstanding shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of Common
Shares. The Company will not pay any dividend or make any distribution on Common Shares
held in the treasury of the Company.

     (k) In lieu of making any adjustment to the Conversion Price pursuant to this Section
10.05, the Company may elect to reserve an amount of cash for distribution to the Holders of
the Securities upon the conversion of the Securities so that any such Holder converting
Securities will receive upon such conversion, in addition to the Common Shares and other
items to which such Holder is entitled, the full amount of cash which such Holder would have
received if such Holder had, immediately prior to the Record Date for such distribution of
cash, converted its Securities into Common Shares, together with any interest accrued with
respect to such amount, in accordance with this Section 10.05(k). The Company may make such
election by providing an Officers’ Certificate to the Trustee to such effect on or prior to
the payment date for any such distribution and depositing with the Trustee on or prior to
such date an amount of cash equal to the aggregate amount the Holders of the Securities
would have received if such Holders had, immediately prior to the Record Date for such
distribution, converted all of the Securities into Common Shares. Any such funds so
deposited by the Company with the Trustee shall be invested by the Trustee in marketable
obligations issued or fully guaranteed by the United States government with a maturity not
more than three (3) months from the date of issuance. Upon conversion of Securities by a
Holder, the Holder will be entitled to receive, in addition to the Common Shares issuable
upon conversion, an amount of cash equal to the amount such Holder would have received if
such Holder had, immediately prior to the Record Date for such distribution, converted its
Security into Common Shares, along with such Holder’s pro rata share of any accrued interest
earned as a consequence of the investment of such funds. Promptly after making an election
pursuant to this Section 10.05(k), the Company shall give or shall cause to be given notice
to all Securityholders of such election, which notice shall state the amount of cash per
$_,000 principal amount of Securities such Holders shall be entitled to receive (excluding
interest) upon conversion of the Securities as a consequence of the Company having made such
election.

 

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SECTION 10.06. Effect of Reclassification, Consolidation, Merger or Sale.

          If any of the following events occur, namely (i) any reclassification or change of the
outstanding Common Shares (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a subdivision or combination), (ii) any
consolidation, merger or combination of the Company with another corporation as a result of which
holders of Common Shares shall be entitled to receive stock, securities or other property or assets
(including cash) with respect to or in exchange for such Common Shares, or (iii) any sale or
conveyance of all or substantially all of the Company’s assets (it being understood that a sale of
less than 90% of the Company’s total assets shall not be deemed a sale of substantially all of the
Company’s assets), in one transaction or a series of related transactions, to, any Person as a
result of which holders of Common Shares shall be entitled to receive stock, securities or other
property or assets (including cash) with respect to or in exchange for such Common Shares, then the
Company or the successor or purchasing corporation, as the case may be, shall execute with the
Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at
the date of execution of such supplemental indenture if such supplemental indenture is then
required to so comply) providing that such Security shall be convertible into the kind and amount
of shares of stock and other securities or property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or conveyance by a holder of a
number of Common Shares issuable upon conversion of such Securities (assuming, for such purposes, a
sufficient number of authorized Common Shares available to convert all such Securities) immediately
prior to such reclassification, change, consolidation, merger, combination, sale or conveyance
assuming such holder of Common Shares did not exercise his rights of election, if any, as to the
kind or amount of securities, cash or other property receivable upon such consolidation, merger,
statutory exchange, sale or conveyance (provided that, if the kind or amount of securities, cash or
other property receivable upon such consolidation, merger, statutory exchange, sale or conveyance
is not the same for each Common Share in respect of which such rights of election shall not have
been exercised (“non-electing share”), then for the purposes of this Section 10.06 the kind and
amount of securities, cash or other property receivable upon such consolidation, merger, statutory
exchange, sale or conveyance for each non-electing share shall be deemed to be the kind and amount
so receivable per share by a plurality of the non-electing shares); provided, however, the Trustee
shall be under no obligation to join with the Company in the execution of such supplemental
indenture, if such supplemental indenture adversely affects the Trustee’s own rights, duties or
immunities under this Indenture. Such supplemental indenture shall provide for adjustments which
shall be as nearly equivalent as may be practicable to the adjustments provided for in this
Article. If, in the case of any such reclassification, change, consolidation, merger, combination,
sale or conveyance, the stock or other securities and assets receivable thereupon by a holder of
Common Shares includes shares of stock or other securities and assets of a corporation other than
the successor or purchasing corporation, as the case may be, in such reclassification, change,
consolidation, merger, combination, sale or conveyance, then such supplemental indenture shall also
be executed by such other corporation and shall contain such additional provisions to protect the
interests of the Holders of the Securities

 

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as the Board of Directors shall reasonably consider necessary by reason of the foregoing,
including to the extent practicable the provisions providing for the repurchase rights set forth in
Section 3.08 herein.

          The Company shall cause notice of the execution of such supplemental indenture to be mailed to
each Holder of Securities, at his address appearing on the Security register provided for in
Section 2.03 of this Indenture, within twenty (20) days after execution thereof. Failure to
deliver such notice shall not affect the legality or validity of such supplemental indenture.

          The above provisions of this Section shall similarly apply to successive reclassifications,
changes, consolidations, mergers, combinations, sales and conveyances.

          If this Section 10.06 applies to any event or occurrence, Section 10.05 shall not apply.

SECTION 10.07. Taxes on Common Shares Issued.

          The issue of share certificates on conversions of Securities shall be made without charge to
the converting Securityholder for any tax in respect of the issue thereof. The Company shall not,
however, be required to pay any tax which may be payable in respect of any transfer involved in the
issue and delivery of Common Shares in any name other than that of the Holder of any Security
converted, and the Company shall not be required to issue or deliver any such share certificate
unless and until the person or persons requesting the issue thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the Company that such tax
has been paid.

			
	SECTION 10.08.	 	Reservation of Shares; Shares To Be Fully Paid; Listing of Common
Shares.

          The Company shall reserve and provide, free from preemptive rights, out of its authorized but
unissued shares or shares held in treasury, sufficient shares to provide for the conversion of the
Securities from time to time as such Securities are presented for conversion.

          Before taking any action which would cause an adjustment reducing the Conversion Price below
the then par value, if any, of the Common Shares issuable upon conversion of the Securities, the
Company will take all corporate action which may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue such Common Shares at such adjusted Conversion
Price.

          The Company covenants that all Common Shares issued upon conversion of Securities will be
fully paid and non-assessable by the Company and free from all taxes, liens and charges with
respect to the issue thereof.

 

-54-

          The Company covenants that in the event the Company implements a shareholders’ rights plan,
such rights plan must provide that, prior to the rights becoming fully exercisable for the maximum
amount of Capital Stock provided for therein, upon conversion of the Securities the Holders will
receive in addition to the Common Shares issuable upon such conversion, such rights, whether or not
such rights have separated from the Common Shares at the time of such conversion, unless prior to
conversion, the rights have expired or have been terminated or redeemed.

          The Company further covenants that if at any time the Common Shares shall be listed on the New
York Stock Exchange or any other national securities exchange or automated quotation system the
Company will, if permitted by the rules of such exchange or automated quotation system, list and
keep listed, so long as the Common Shares shall be so listed on such exchange or automated
quotation system, all Common Shares issuable upon conversion of the Securities.

SECTION 10.09. Responsibility of Trustee.

          The Trustee and any other Conversion Agent shall not at any time be under any duty or
responsibility to any Holder of Securities to determine whether any facts exist which may require
any adjustment of the Conversion Price, or with respect to the nature or extent or calculation of
any such adjustment when made, or with respect to the method employed, or herein or in any
supplemental indenture provided to be employed, in making the same. The Trustee and any other
Conversion Agent shall not be accountable with respect to the validity or value (or the kind or
amount) of any Common Shares, or of any securities or property, which may at any time be issued or
delivered upon the conversion of any Security; and the Trustee and any other Conversion Agent make
no representations with respect thereto. Subject to the provisions of Section 6.01, neither the
Trustee nor any Conversion Agent shall be responsible for any failure of the Company to issue,
transfer or deliver any Common Shares or share certificates or other securities or property or cash
upon the surrender of any Security for the purpose of conversion or to comply with any of the
duties, responsibilities or covenants of the Company contained in this Article. Without limiting
the generality of the foregoing, neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any supplemental
indenture entered into pursuant to Section 10.06 relating either to the kind or amount of shares of
stock or securities or property (including cash) receivable by Securityholders upon the conversion
of their Securities after any event referred to in such Section 10.06 or to any adjustment to be
made with respect thereto, but, subject to the provisions of Section 6.01, may accept as conclusive
evidence of the correctness of any such provisions, and shall be protected in relying upon, the
Officers’ Certificate (which the Company shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto.

 

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SECTION 10.10. Notice to Holders Prior to Certain Actions.

     In case:

     (a) the Company shall declare a dividend (or any other distribution) on its Common
Shares (that would require an adjustment in the Conversion Price pursuant to Section 10.05);
or

     (b) the Company shall authorize the granting to the holders of its Common Shares of
rights or warrants to subscribe for or purchase any share of any class or any other rights
or warrants; or

     (c) of any reclassification of the Common Shares of the Company (other than a
subdivision or combination of its outstanding Common Shares, or a change in par value, or
from par value to no par value, or from no par value to par value), or of any consolidation
or merger to which the Company is a party and for which approval of any shareholders of the
Company is required, or of the sale or transfer of all or substantially all of the assets of
the Company (it being understood that a sale of less than 90% of the Company’s total assets
shall not be deemed a sale of substantially all of the Company’s assets), in one transaction
or a series of related transactions, to any Person; or

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

the Company shall cause to be filed with the Trustee and to be mailed to each Holder of Securities
at his address appearing on the Security register provided for in Section 2.03 of this Indenture,
as promptly as possible but in any event at least fifteen days prior to the applicable date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the
purpose of such dividend, distribution or rights or warrants, or, if a record is not to be taken,
the date as of which the holders of Common Shares of record to be entitled to such dividend,
distribution or rights are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up is expected to become
effective or occur, and the date as of which it is expected that holders of Common Shares of record
shall be entitled to exchange their Common Shares for securities or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding
up. Failure to give such notice, or any defect therein, shall not affect the legality or validity
of such dividend, distribution, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.

SECTION 10.11. Limitations on Convertibility.

     (a) A Holder of the Securities may not convert such Securities into Common Shares or
other Corporation Securities, and any attempted conversion of the Securities

 

-56-

into Common Shares or other Corporation Securities, shall be prohibited and void
ab initio and shall be deemed a “Prohibited Conversion” to the extent that,
as a result of such conversion (or any series of conversions of which such conversion is a
part), either (1) any Person or group of Persons shall become a Five-Percent Shareholder, or
(2) the Percentage Stock Ownership interest in the Company of any Five-Percent Shareholder
shall be increased.

     (b) The restrictions set forth in paragraph (a) shall not apply to an attempted
conversion if the Holder obtains the approval of the Board of Directors. As a condition to
granting its approval, the Board of Directors may, in its discretion, require an Opinion of
Counsel selected by the Board of Directors that the conversion and issuance of the Common
Shares or other Corporation Securities upon such conversion shall not result in the
application of any Section 382 limitation on the use of the Tax Benefits.

     (c) Each Holder of the Securities by its acceptance thereof agrees to the limitations
on conversion set forth in this Section 10.11 and the provisions of Section 10.12.

     (d) For the avoidance of doubt, nothing contained in this Indenture or in the
Securities shall affect the transfer restrictions, to the extent otherwise applicable,
contained in the Company’s Certificate of Incorporation.

SECTION 10.12. Treatment of Excess Securities.

     (a) No Agent, employee or other agent of the Company shall record any Prohibited
Conversion, and the purported converting Holder (and any such Person in whose name the
converting Holder directs the Common Shares or other Corporation Securities issued upon such
Prohibited Conversion to be registered) of such Prohibited Conversion (the “Converting
Holder”) shall not be recognized as a shareholder of the Company for any purpose whatsoever
in respect of the Common Shares or other Corporation Securities which are the subject of the
Prohibited Conversion (the “Excess Securities”). Until the Excess Securities are acquired
by another Person in a Transfer that is not a Prohibited Transfer, the Converting Holder
shall not be entitled with respect to such Excess Securities to any rights of shareholders
of the Company, including without limitation, the right to vote such Excess Securities and
to receive dividends or distributions, whether liquidating or otherwise, in respect thereof,
if any. Once the Excess Securities have been acquired in a Transfer that is not a
Prohibited Transfer, such Common Shares or other Corporation Securities shall cease to be
Excess Securities.

     (b) If the Board of Directors determines that a conversion of Securities constitutes a
Prohibited Conversion then, upon written demand by the Company, the Converting Holder shall
transfer or cause to be transferred any certificate or other evidence of ownership of the
Excess Securities within the Converting Holder’s possession or control, together with any
dividends or other distributions that were received by the Converting

 

-57-

Holder from the Company with respect to the Excess Securities (“Prohibited
Distributions”), to an agent designated by the Board of Directors (the “Agent”). The Agent
shall thereupon sell to a buyer or buyers, which may include the Company, the Excess
Securities transferred to it in one or more arm’s-length transactions (over the New York
Stock Exchange, if possible); provided, however, that the Agent shall effect such sale or
sales in an orderly fashion and shall not be required to effect any such sale within any
specific time frame if, in the Agent’s discretion, such sale or sales would disrupt the
market for the Common Shares or other Corporation Securities or otherwise would adversely
affect the value of the Common Shares or other Corporation Securities. If the Converting
Holder shall have resold the Excess Securities before receiving the Company’s demand to
surrender the Excess Securities to the Agent, the Converting Holder shall be deemed to have
sold the Excess Securities for the Agent, and shall be required to transfer to the Agent any
Prohibited Distributions and the proceeds of such sale, except to the extent that the Agent
grants written permission to the Converting Holder to retain a portion of such sales
proceeds not exceeding the amount that the Converting Holder would have received from the
Agent pursuant to paragraph (c) of this 10.12 if the Agent rather than the Converting Holder
had resold the Excess Securities.

     (c) The Agent shall apply any proceeds of a sale by it of Excess Securities and, if the
Converting Holder had previously resold the Excess Securities, any amounts received by it
from a Converting Holder, as follows: (1) first, such amounts shall be paid to the Agent to
the extent necessary to cover its costs and expenses incurred in connection with its duties
hereunder; (2) second, any remaining amounts shall be paid to the Converting Holder, up to
the portion of the principal amount of the Securities applicable to the Excess Securities;
and (3) third, any remaining amounts, subject to the limitations imposed by the following
proviso, shall be paid to the Leucadia Foundation; provided, however, that (i) if the
Leucadia Foundation shall have terminated prior to its receipt of such amounts, such
remaining amounts shall be paid to one or more organizations qualifying under Section
501(c)(3) of the Code (and any comparable successor provision) (“Section 501(c)(3)”)
selected by the Board of Directors, and (ii) if the Excess Securities represent a 5% or
greater Percentage Stock Ownership interest in any class of Corporation Securities, then any
such remaining amounts after the payment under clause (1) of this Section 10.12(c) to the
extent attributable to the disposition of the portion of such Excess Securities exceeding a
4.99 Percentage Stock Ownership interest in such class shall be paid to one or more
organizations qualifying under Section 501(c)(3) selected by the Board of Directors. The
recourse of any Converting Holder in respect of any Prohibited Conversion shall be limited
to the amount payable to the Converting Holder pursuant to clause (2) of the preceding
sentence. In no event shall the proceeds of any sale of Excess Securities pursuant to this
Section 10.12 inure to the benefit of the Company.

     (d) If the Converting Holder fails to surrender the Excess Securities or the proceeds
of a sale thereof to the Agent within thirty (30) business days from the date on

 

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which the Company makes a demand pursuant to paragraph (b) of this Section 10.12, then
the Company shall institute legal proceedings to compel the surrender.

     (e) The Company shall make the demand described in paragraph (b) of this Section 10.12
within thirty (30) days of the date on which the Board of Directors determines that a
conversion would result in Excess Securities; provided, however, that if the Company makes
such demand at a later date, the provisions of this Section 10.12 shall apply nonetheless.

     (f) The Board of Directors of the Company shall have the power to determine all matters
necessary to determine compliance with this Section 10.12, including without limitation (1)
whether a new Five-Percent Shareholder would be required to be identified in certain
circumstances, (2) whether a conversion is a Prohibited Conversion or an attempted
conversion would be a Prohibited Conversion, (3) the Percentage Stock Ownership in the
Company of any Five-Percent Shareholder, (4) whether an instrument constitutes Corporation
Securities, (5) the amount due to a Converting Holder pursuant to clause (2) of paragraph
(c) of this Section 10.12, and (6) any other matters which the Board of Directors determines
to be relevant; and the good faith determination of the Board of Directors on such matters
shall be conclusive and binding for all the purposes of this Section 10.12.

ARTICLE ELEVEN

MISCELLANEOUS

SECTION 11.01. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with another provision
which is required to be included in this Indenture by the TIA, the required provision shall
control.

SECTION 11.02. Notices.

          Any notice or communication shall be sufficiently given if in writing and delivered in person,
by facsimile or mailed by certified or registered mail (return receipt requested) addressed as
follows:

 

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          If to the Company:

Leucadia National Corporation

315 Park Avenue South

New York, New York 10010

Facsimile: (212) 598-4869

Attention: Secretary

          With a copy to:

Weil Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Facsimile: (212) 310-8007

Attention: Andrea A. Bernstein, Esq.

          If to the Trustee:

HSBC Bank USA

452 Fifth Avenue

New York, New York 10018

Facsimile: (212) 525-1300

Attention: Corporate Trust

          The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

          Any notice or communication mailed to a Securityholder shall be mailed to him by first-class
mail at his address as it appears on the registration books of the Registrar and shall be
sufficiently given to him if so mailed within the time prescribed.

          Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it.
If the Company mails notices or communications to Securityholders, it shall mail a copy to the
Trustee and each Agent at the same time. All notices or communications shall be in writing.

 

-60-

SECTION 11.03. Communication by Holders with Other Holders.

          Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

SECTION 11.04. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the proposed action
have been complied with; and

     (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

SECTION 11.05. Statements Required in Certificate or Opinion.

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

     (1) a statement that each person making such certificate or opinion has read such
covenant or condition;

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

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

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

SECTION 11.06. When Treasury Securities Disregarded.

          In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company or by any Affiliate
shall be disregarded, except that for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which a Responsible
Officer of the Trustee knows are so owned shall be so disregarded.

 

-61-

SECTION 11.07. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or a meeting of Securityholders. The
Registrar or Paying Agent may make reasonable rules for its functions.

SECTION 11.08. Legal Holidays.

          A “Legal Holiday” is a Saturday, a Sunday, or a day on which banks and trust companies in The
City of New York or Chicago are not required by law or executive order to be open. If a payment
date is a Legal Holiday at a place of payment, payment may be made at the place on the next
succeeding day that is not a Legal Holiday, without additional interest.

SECTION 11.09. Governing Law.

          The laws of the State of New York shall govern this Indenture and the Securities without
regard to principles of conflicts of laws.

SECTION 11.10. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

SECTION 11.11. No Recourse Against Others.

          All liability described in paragraph 15 of the Securities of any director, officer, employee
or stockholder, as such, of the Company is waived and released.

SECTION 11.12. Successors.

          All agreements of the Company in this Indenture and the Securities shall bind its successor.
All agreements of the Trustee in this Indenture shall bind its successor.

SECTION 11.13. Duplicate Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same instrument.

SECTION 11.14. Separability.

          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, and a Holder shall have no claim therefor against any
party hereto.

 

 

SIGNATURES

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

	 	 	 	 	 	 	 
	 	 	LEUCADIA NATIONAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:

Title:
	 	 
	 
	 	 	 	 	 	 
	 	 	HSBC BANK USA, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:

Title:
	 	 

 

 

EXHIBIT A

[Insert Global Security Legend, if applicable]

___% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE                     , 20__

	 	 	 	 	 
	No.
	 	$	          	 
	 
	 	CUSIP:

LEUCADIA NATIONAL CORPORATION

(a New York corporation)

promises to pay to                      or registered assigns the principal sum of
                     Dollars on                     , 20___.

          Interest Payment Dates:                      and                     

          Record Dates:                      and                     

Dated:

	 	 	 
	 

	 	LEUCADIA NATIONAL CORPORATION
	 
	 	 
	 

	 	 
	 

	 	Chief Financial Officer

	 	 	 
	Attest:
	 	 
	 
	 	 
	 

Secretary

	 	 

A-1

 

Certificate of Authentication

This is one of the Securities

referred to in the within-mentioned

Indenture.

HSBC BANK USA, as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Officer
	 	 

 

 

LEUCADIA NATIONAL CORPORATION

___% Convertible Senior Subordinated Note Due                     , 20___

1. Interest.

          Leucadia National Corporation (the “Company”) promises to pay interest on the principal amount
of this Security at the rate per annum shown above. The Company will pay interest semiannually on
                     and                      of each year, commencing                     , 20___. Interest on the Securities
will accrue from the most recent date to which interest has been paid (or, if no interest has been
paid, from                     , 20___). Interest will be computed on the basis of a 360-day year of twelve
30-day months. If a payment date is a Legal Holiday (as defined in the Indenture) at a place of
payment, payment may be made at the place on the next succeeding day that is not a Legal Holiday,
without additional interest.

2. Method of Payment.

          The Company will pay interest on the Securities (except defaulted interest) to the Persons who
are registered holders of Securities at the close of business on the                      or                     
next preceding the interest payment date even though Securities are cancelled after the record date
and on or before the interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and private debts.
However, the Company may pay interest by check payable in such money. It may mail an interest
check to a Holder’s registered address.

3. Paying Agent and Registrar.

          Initially, HSBC Bank USA will act as Paying Agent and Registrar. The Company may change any
Paying Agent, Registrar or co-registrar without prior notice. The Company or any of its
Subsidiaries (as defined in the Indenture) may act in any such capacity.

4. Indenture.

          The Company issued the Securities under an Indenture dated as of                     , 20___ (the
“Indenture”) between the Company and 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. Code §§ 77aaa-77bbbb) as in effect on the date of the Indenture. The Securities
include the terms of the Indenture and Securityholders are referred to the Indenture and the TIA
for a statement of such terms. The Securities are general unsecured obligations of the Company.
The Indenture does not limit the principal amount of Securities which may be issued thereunder.

 

 

5. Subordination.

          The Securities are subordinated to Senior Indebtedness, which is defined in the Indenture. To
the extent provided for in the Indenture, Senior Indebtedness must be paid before the Securities
may be paid. Each Holder by accepting a Security agrees to such subordination and authorizes the
Trustee to give it effect.

6. Change of Control.

          In the event of a Change of Control of the Company, each Holder shall have the right, at such
Holder’s option, to require the Company to buy all or any portion of such Holder’s Securities, at
___% of the principal amount thereof, plus accrued interest to the date of purchase.

7. Restrictive Covenants.

          The Indenture imposes certain limitations on, among other things, the ability of the Company
to merge or consolidate with any other Person or sell, lease or otherwise transfer all or
substantially all of its properties or assets and to enter into certain transactions with
Affiliates, in each case subject to certain limitations described in the Indenture.

8. Denominations, Transfer, Exchange.

          The Securities are in registered form without coupons in denominations of $_,000 and whole
multiples of $_,000. A Holder may transfer or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not register any transfer or exchange of Securities selected for
redemption. Also, it need not register any transfer or exchange of Securities for a period of 30
days before a selection of Securities is to be redeemed.

9. Persons Deemed Owners.

          The registered Holder of a Security may be treated as the owner of it for all purposes and
neither the Company, the Trustee nor any Agent shall be affected by notice to the contrary.

10. Unclaimed Money.

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent will pay the money back to the Company at its request. After that, Securityholders
entitled to the money must look to the Company for payment unless an abandoned property law
designates another person.

 

 

11. Amendment, Supplement, Waiver.

          Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of the Securities, and
any past default or noncompliance with any provision may be waived with the consent of the Holders
of a majority in principal amount of the Securities. Without the consent of any Securityholder,
the Company may amend or supplement the Indenture or the Securities to cure any ambiguity, defect
or inconsistency or to provide for uncertificated Securities in addition to certificated Securities
or to make any change that does not adversely affect the rights of any Securityholder.

12. Successor Corporation.

          When a successor corporation assumes all the obligations of its predecessor under the
Securities and the Indenture, the predecessor corporation will be released from those obligations.

13. Defaults and Remedies.

          The terms of the Securities include the Events of Default as set forth in Section 5.01 of the
Indenture. Subject to certain limitations in the Indenture, if an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding
Securities may declare all the Securities to be due and payable immediately, except that in the
case of an Event of Default arising from certain events of bankruptcy, insolvency or reorganization
relating to the Company, all outstanding Securities shall become due and payable immediately
without further action or notice. Holders may not enforce the Indenture or the Securities except
as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in
principal amount of the then outstanding Securities may direct the Trustee in its exercise of any
trust or power. The Company must furnish annual compliance certificates to the Trustee.

14. Trustee Dealings with Company.

          HSBC Bank USA, the Trustee under the Indenture, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates, as if it were not the Trustee.

15. No Recourse Against Others.

          A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each Securityholder by
accepting a Security waives and releases all such liability. The waiver and release are part of
the consideration for the issue of the Securities.

 

 

16. Authentication.

          This Security shall not be valid until the Trustee or an authenticating agent signs the
certificate of authentication on the other side of this Security.

17. Abbreviations.

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

18. Available Information.

          The Company will furnish to any Securityholder upon written request and without charge a copy
of the Indenture. Requests may be made to: Secretary, Leucadia National Corporation, 315 Park
Avenue South, New York, New York 10010.

19. Conversion of Securities.

          Subject to the provisions of the Indenture, the holder hereof has the right, at its option, at
any time following the Issue Date and prior to the close of business on the Maturity Date, to
convert the principal hereof or any portion of such principal which is $_,000 or an integral
multiple thereof, into that number of fully paid and non-assessable shares of Common Shares, as
such shares shall be constituted at the date of conversion, obtained by dividing the principal
amount of this Security or portion thereof to be converted by the Conversion Price in effect at the
time, upon surrender of this Security, together with a conversion notice as provided in the
Indenture and this Security, to the Company at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York, and, unless the shares issuable on
conversion are to be issued in the same name as this Security, duly endorsed by, or accompanied by
instruments of transfer in form satisfactory to the Company duly executed by, the holder or by his
duly authorized attorney; provided, however, that a Holder of this Security may not
convert this Security into Common Shares and any attempted conversion of this Security into Common
Shares, shall be prohibited and void ab initio and shall be deemed a Prohibited
Conversion (as defined in the Indenture) to the extent that, as a result of such conversion (or any
series of conversions of which such conversion is a part), either (1) any Person or group of
Persons shall become a Five-Percent Shareholder, or (2) the Percentage Stock Ownership interest in
the Company of any Five-Percent Shareholder shall be increased. In the event of a Prohibited
Conversion the Company will effect a sale of the Common Shares or other Corporation Securities (as
defined in the Indenture) issued in violation of this limitation on convertibility (the “Excess
Securities”) to a party selected by the Company, and the purported holder of the Excess Securities
will be treated as holding the Excess Securities entirely for the benefit of such party. The
purported holder will be entitled to the proceeds of any such sale that the Company implements,
reduced by any expenses incurred in connection with the discovery and correction by the Company of
the improper and null issuance of the Excess Securities to the purported holder, but

 

 

in no event shall such holder receive any amount in excess of the portion of the face amount
of the Securities applicable to the Excess Securities or in excess of any proceeds attributable to
Excess Securities equal to a 4.99 Percentage Stock Ownership (as defined in the Indenture). No
adjustment in respect of interest or dividends will be made upon any conversion; provided,
however, that if this Security shall be surrendered for conversion during the period from
the close of business on any record date for the payment of interest through the close of business
on the business day next preceding the following interest payment date, this Security must be
accompanied by an amount, in funds acceptable to the Company, equal to the interest otherwise
payable on such interest payment date on the principal amount being converted. No fractional
shares of Common Shares will be issued upon any conversion, but an adjustment in cash will be paid
to the holder, as provided in the Indenture, in respect of any fraction of a share which would
otherwise be issuable upon the surrender of any Security or Securities for conversion. The Holder
of this Security, by accepting this Security, agrees to the provisions of the Indenture with
respect to matters described in this paragraph 19.

 

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

 

 

(Insert assignee’s soc. sec. or tax ID no.)

 

 

 

 

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

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

 

 

	 	 	 
	Your Signature:
	 	 
	 

	 	 
	 

	 	(Sign exactly as your name appears on the other side of this Security)

Date:                     

 

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company pursuant to Section 3.08
of the Indenture, check the box:

Section 3.08 [      ]

          If you want to have only part of this Security purchased by the Company pursuant to Section
3.08 of the Indenture, state the amount (in integral multiples of $_,000):

 $

	 	 	 	 	 
	Date:                     

	 	Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on 

the other side of this Security)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 

 

 

CONVERSION NOTICE

To: HSBC Bank USA

          The undersigned registered owner of this Security hereby irrevocably exercises the option to
convert this Security, or the portion hereof (which is $_,000 principal amount or an integral
multiple thereof) below designated, into Common Shares in accordance with the terms of the
Indenture referred to in this Security, and directs that the Common Shares issuable and deliverable
upon such conversion, together with any check in payment for fractional shares and any Securities
representing any unconverted principal amount hereof, be issued and delivered to the registered
holder hereof unless a different name has been indicated below. If Common Shares or any portion of
this Security not converted are to be issued in the name of a person other than the undersigned,
the undersigned will pay all transfer taxes payable with respect thereto. The undersigned confirms
that the exercise of the option to convert this Security pursuant to this conversion notice will
not violate the restrictions on conversion contained in this Security or in the Indenture,
including Section 10.11 of the Indenture. The undersigned acknowledges that in issuing Common
Shares pursuant to the exercise of the option to convert this Security pursuant to this conversion
notice, the Company is relying on the confirmation contained herein. Any amount required to be
paid to the undersigned on account of interest accompanies this Security.

Dated:                        

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature(s)

Signature(s) must be guaranteed by

an eligible Guarantor Institution

(banks, stock brokers, savings and

loan associations and credit unions)

with membership in an approved signature

guarantee medallion program pursuant to

Securities and Exchange Commission

Rule 17Ad-15 if shares of Common Shares

are to be issued, or Notes to be

delivered, other than to and in the name

of the registered holder.

  

Signature Guarantee

 

 

Fill in for registration of shares if to be

issued, and Notes if to be delivered,

other than to and in the name of the

registered holder:

 

(Name)

 

(Street Address)

 

(City, State and Zip Code)

Please print name and address

	 	 	 
	 

	 	Principal amount to be converted (if less than
all): $___,000
	 
	 	 
	 

	 	 
	 

	 	Social Security or Other Taxpayer

Identification Number

 

 

EXHIBIT B

[Form of Global Security Legend]

          Any Global Security authenticated and delivered hereunder shall bear a legend (which would be
in addition to any other legends required) in substantially the following form:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS NOT
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS
NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE
DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR 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.

 B-1

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