Document:

EX-4.(c) FORM OF SENIOR INDENTURE

 

Exhibit 4(c)

 

SANTANDER BANCORP

TO

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

TRUSTEE

 

INDENTURE

DATED AS OF ________, 200_

 

 

 

 

SANTANDER BANCORP

CERTAIN SECTIONS OF THIS INDENTURE RELATING TO

SECTIONS 310 THROUGH 318, INCLUSIVE, OF THE

TRUST INDENTURE ACT OF 1939

	 	 	 
	Trust Indenture	 	Indenture
	    Act Section	 	Section
	ss. 310(a)(1)
	 	610
	(a)(2)
	 	610
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(a)(5)
	 	610
	(b)
	 	608
	 
	 	 
	ss. 311(a)
	 	611
	(b)
	 	611
	ss. 312(a)
	 	701(1),701(2)
	(b)
	 	702(2)
	(c)
	 	702(3)
	ss. 313(a)
	 	703(1)
	(b)
	 	703(2)
	(c)
	 	106, 703(1),
	(d)
	 	703(2)
	 
	 	 
	ss. 314(a)
	 	704
	(a)(4)
	 	704, 1004
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	(f)
	 	Not Applicable
	 
	 	 
	ss. 315(a)
	 	601
	(b)
	 	106, 602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	601
	ss. 316(a)
	 	512, 513
	(a)(1)(A)
	 	512
	(a)(1)(B)
	 	513
	(a)(2)
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104(3)
	ss. 317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	ss. 318(a)
	 	107

 

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

2

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE - Definitions and Other Provisions of General Application
	 	 	1	 
	Section 101. Definitions
	 	 	1	 
	Section 102. Compliance Certificates and Opinions
	 	 	7	 
	Section 103. Form of Documents Delivered to Trustee
	 	 	7	 
	Section 104. Acts of Holders; Record Dates
	 	 	8	 
	Section 105. Notices, Etc., to Trustee and Company
	 	 	10	 
	Section 106. Notice to Holders; Waiver
	 	 	10	 
	Section 107. Conflict with Trust Indenture Act of 1939
	 	 	11	 
	Section 108. Effect of Headings and Table of Contents
	 	 	11	 
	Section 109. Successors and Assigns
	 	 	11	 
	Section 110. Separability Clause
	 	 	11	 
	Section 111. Benefits of Indenture
	 	 	11	 
	Section 112. Governing Law
	 	 	11	 
	Section 113. Legal Holidays
	 	 	11	 
	Section 114. No Security Interest Created
	 	 	12	 
	Section 115. Liability Solely Corporate
	 	 	12	 
	Section 116. Appointment of Agent for Service
	 	 	12	 
	ARTICLE TWO - Security Forms
	 	 	13	 
	Section 201. Forms Generally
	 	 	13	 
	Section 202. Form of Face of Security
	 	 	13	 
	Section 203. Form of Reverse of Security
	 	 	15	 
	Section 204. Form of Trustee’s Certificate of Authentication
	 	 	18	 
	Section 205. Additional Provisions Required in Global Security
	 	 	18	 
	ARTICLE THREE - The Securities
	 	 	19	 
	Section 301. Amount Unlimited; Issuable in Series
	 	 	19	 
	Section 302. Denominations
	 	 	21	 
	Section 303. Execution, Authentication, Delivery and Dating
	 	 	21	 
	Section 304. Temporary Securities
	 	 	23	 
	Section 305. Registration, Registration of Transfer and Exchange
	 	 	23	 
	Section 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	25	 
	Section 307. Payment of Interest; Interest Rights Preserved
	 	 	25	 
	Section 308. Persons Deemed Owners
	 	 	27	 
	Section 309. Cancellation
	 	 	27	 
	Section 310. Computation of Interest
	 	 	27	 
	Section 311. CUSIP Numbers
	 	 	27	 
	ARTICLE FOUR - Satisfaction and Discharge
	 	 	28	 
	Section 401. Satisfaction and Discharge of Indenture
	 	 	28	 
	Section 402. Application of Trust Money
	 	 	29	 
	ARTICLE FIVE. Remedies
	 	 	29	 
	Section 501. Events of Default
	 	 	29	 
	Section 502. Acceleration of Maturity; Rescission and Annulment
	 	 	31	 
	Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	32	 
	Section 504. Trustee May File Proofs of Claim
	 	 	32	 
	Section 505. Trustee May Enforce Claims Without Possession of Securities
	 	 	33	 
	Section 506. Application of Money Collected
	 	 	33	 
	Section 507. Limitation on Suits
	 	 	33	 
	Section 508. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	34	 
	Section 509. Restoration of Rights and Remedies
	 	 	34	 
	Section 510. Rights and Remedies Cumulative
	 	 	34	 
	Section 511. Delay or Omission Not Waiver
	 	 	35	 
	Section 512. Control by Holders
	 	 	35	 

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	 	 	Page
	Section 513. Waiver of Past Defaults
	 	 	35	 
	Section 514. Undertaking for Costs
	 	 	35	 
	Section 515. Waiver of Usury, Stay or Extension Laws
	 	 	36	 
	ARTICLE SIX. The Trustee
	 	 	36	 
	Section 601. Certain Duties and Responsibilities
	 	 	36	 
	Section 602. Certain Rights of Trustee
	 	 	37	 
	Section 603. Not Responsible for Recitals or Issuance of Securities
	 	 	39	 
	Section 604. May Hold Securities
	 	 	39	 
	Section 605. Money Held in Trust
	 	 	39	 
	Section 606. Notice of Defaults
	 	 	39	 
	Section 607. Compensation and Reimbursement
	 	 	40	 
	Section 608. Replacement of Trustee
	 	 	40	 
	Section 609. Merger, Conversion, Consolidation or Succession to Business
	 	 	41	 
	Section 610. Corporate Trustee Required; Eligibility
	 	 	41	 
	Section 611. Preferential Collection of Claims Against the Company
	 	 	42	 
	Section 612. Appointment of Authenticating Agent
	 	 	42	 
	ARTICLE SEVEN - Holders’ Lists and Reports by Trustee and Company
	 	 	43	 
	Section 701. Company to Furnish Trustee Names and Addresses of Holders
	 	 	43	 
	Section 702. Preservation of Information; Communications to Holders
	 	 	44	 
	Section 703. Reports by Trustee
	 	 	44	 
	Section 704. Reports by Company
	 	 	44	 
	ARTICLE EIGHT - Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	45	 
	Section 801. Company May Consolidate, Etc., Only on Certain Terms
	 	 	45	 
	Section 802. Successor Substituted
	 	 	45	 
	ARTICLE NINE - Supplemental Indentures
	 	 	45	 
	Section 901. Supplemental Indentures Without Consent of Holders
	 	 	45	 
	Section 902. Supplemental Indentures With Consent of Holders
	 	 	47	 
	Section 903. Execution of Supplemental Indentures
	 	 	48	 
	Section 904. Effect of Supplemental Indentures
	 	 	48	 
	Section 905. Conformity with Trust Indenture Act of 1939
	 	 	48	 
	Section 906. Reference in Securities to Supplemental Indentures
	 	 	48	 
	ARTICLE TEN - Covenants
	 	 	48	 
	Section 1001. Payment of Principal, Premium and Interest
	 	 	48	 
	Section 1002. Maintenance of Office or Agency
	 	 	48	 
	Section 1003. Money for Securities Payments to Be Held in Trust
	 	 	49	 
	Section 1004. Officers’ Certificate as to Default
	 	 	50	 
	Section 1005. Corporate Existence
	 	 	50	 
	Section 1006. Limitation upon Sale or Issuance of Voting Stock of Certain Subsidiaries
	 	 	50	 
	Section 1007. Limitation Upon Creation of Liens on Voting Stock of Material Banking Subsidiaries
	 	 	51	 
	Section 1008. Waiver of Certain Covenants
	 	 	52	 
	Section 1009. Calculation of Original Issue Discount
	 	 	52	 
	ARTICLE ELEVEN - Redemption of Securities
	 	 	53	 
	Section 1101. Applicability of Article
	 	 	53	 
	Section 1102. Election to Redeem; Notice to Trustee
	 	 	53	 
	Section 1103. Selection by Trustee of Securities to Be Redeemed
	 	 	53	 
	Section 1104. Notice of Redemption
	 	 	54	 
	Section 1105. Deposit of Redemption Price
	 	 	54	 
	Section 1106. Securities Payable on Redemption Date
	 	 	54	 
	Section 1107. Securities Redeemed in Part
	 	 	55	 
	ARTICLE TWELVE - Sinking Funds
	 	 	55	 
	Section 1201. Applicability of Article
	 	 	55	 
	Section 1202. Satisfaction of Sinking Fund Payments with Securities
	 	 	55	 
	Section 1203. Redemption of Securities for Sinking Fund
	 	 	56	 
	ARTICLE THIRTEEN - Defeasance
	 	 	57	 
	Section 1301. Applicability of Article
	 	 	57	 

4

 

	 	 	 	 	 
	 	 	Page
	Section 1302. Defeasance Upon Deposit of Moneys or U.S. Government Obligations
	 	 	57	 
	Section 1303. Deposited Moneys and U.S. Government Obligations to Be Held in Trust
	 	 	59	 
	Section 1304. Repayment to Company
	 	 	59	 

5

 

     INDENTURE, dated as of ___, 200_, between SANTANDER BANCORP, a corporation duly organized
and existing under the laws of the Commonwealth of Puerto Rico (herein called the “Company”),
having its principal office at 207 Ponce de León Avenue, San Juan, Puerto Rico 00917, and THE BANK
OF NEW YORK TRUST COMPANY, N.A., a national banking association organized under the laws of the
United States, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

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

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

               NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

Definitions and Other Provisions

of General Application

SECTION 101. Definitions.

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

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

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

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

                         (4) unless the context otherwise requires, any reference to an “Article” or a “Section” refers
to an Article or a Section, as the case may be, of this Indenture; and

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

 

 

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

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

                         “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 612 to
act on behalf of the Trustee to authenticate Securities of one or more series.

                         “Bank” means (i) any institution organized under the laws of the United States, any State of
the United States, the District of Columbia, any territory of the United States, the Commonwealth,
Guam, American Samoa or the United States Virgin Islands which (a) accepts deposits that the
depositor has a legal right to withdraw on demand, and (b) engages in the business of making
commercial loans and (ii) any trust company organized under any of the foregoing laws.

                         “Banking Subsidiary” means a Subsidiary which is a Bank.

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

                         “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,” except as may otherwise be provided herein or in any Security, when used with
respect to any Place of Payment or other location, means each Monday, Tuesday, Wednesday, Thursday
and Friday which is not a day on which banking institutions in that Place of Payment are authorized
or obligated by law, regulation or executive order to remain closed.

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

                         “Commonwealth” means the Commonwealth of Puerto Rico.

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

                         “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board, its

2

 

Vice Chairman of the Board, its President or a Vice President, and by its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

                         “Controlled Subsidiary” means any corporation more than 80 percent of the outstanding Voting
Stock of which, except for directors’ qualifying shares, shall at the time be owned directly or
indirectly by the Company.

                         “Corporate Trust Office” means the principal corporate trust office of the Trustee at which,
at any particular time, its corporate trust business shall be administered, which office at the
date hereof is located at 10161 Centurion Parkway, Jacksonville, Florida 32256, Attention:
Corporate Trust Division, except that for purposes of Section 1002, such term shall mean the office
or agency of the Trustee in the Borough of Manhattan, the City of New York, which office at the
date hereof is located at 101 Barclay Street Fl.8W, New York, New York 10286.

                         “corporation” means a corporation, association, company, limited liability company,
joint-stock company or business trust.

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

                         “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated as Depositary by the
Company pursuant to Section 301.

                         “Direction” has the meaning specified in Section 104.

                         “Discharged” has the meaning specified in Section 1302.

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

                         “Exchange Act” means the Securities Exchange Act of 1934 and any statutory successor thereto,
in each case as amended from time to time.

                         “Global Security” means a Security bearing the legend prescribed in Section 205 evidencing all
or part of a series of Securities, issued to the Depositary for such series or its nominee, and
registered in the name of such Depositary or nominee.

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

                         “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the TIA that are deemed to be a part of and govern this
instrument and any such supplemental indenture, respectively. The term “Indenture” shall also
include the terms of particular series of Securities established as contemplated by Section 301.

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

3

 

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

                         “Material Banking Subsidiary” means any Controlled Subsidiary of the Company chartered as a
banking corporation under United States federal, State, or Commonwealth law which is a significant
subsidiary of the Company as defined in 1-02 of Regulation S-X of the rules and regulations of the
Securities and Exchange Commission under the Securities Act of 1933, as amended.

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

                         “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a Vice
Chairman of the Board, the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company, and delivered to the Trustee.
One of the officers signing an Officers’ Certificate given pursuant to Section 1004 shall be the
principal executive, financial or accounting officer of the Company.

                         “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
for the Company.

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

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

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

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

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

4

 

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, (i) the principal amount of an Original Issue
Discount Security that shall be deemed to be Outstanding shall be the amount of the principal
thereof that would be due and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 502, (ii) the principal amount of a Security denominated in
one or more foreign currencies or currency units shall be the U.S. dollar equivalent, determined in
the manner provided as contemplated by Section 301 on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount Security, the U.S.
dollar equivalent on the date of original issuance of such Security of the amount determined as
provided in (i) above) of such Security, and (iii) Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall
be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

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

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

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

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

                         “Principal Banking Subsidiary” means any Banking Subsidiary the consolidated assets of which
as set forth in the statement of condition of such Banking Subsidiary for the most recently
completed fiscal year constitute 30% or more of the Company’s consolidated assets as set forth in
the statement of condition of the Company for the most recently completed fiscal year.

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

5

 

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

                         “Registered Security” means any Security established pursuant to Section 201 which is
registered, and the transfer or exchange thereof is registrable, in the Security Register.

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

                         “Responsible Officer,” when used with respect to the Trustee, means any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
secretary, assistant secretary, treasurer, assistant treasurer, trust officer or any other officer
of the Trustee who customarily performs functions similar to those performed by the Persons who at
the time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such Person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

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

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

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

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

                         “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.

                         “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture,
provided, however, that in the event the TIA is amended after such date, “TIA” means, to the extent
required by any such amendment, the TIA as so amended.

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

6

 

to the Securities of any series shall mean the Trustee with respect to Securities of that
series.

                         “U.S. Government Obligations” has the meaning specified in Section 1302.

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

                         “Voting Stock,” with respect to any Person, means stock (or the equivalent thereof) of any
class or classes, however designated, having general voting power for the election of a majority of
the members of the board of directors, managers or trustees of such Person, other than stock (or
the equivalent thereof) having such power only by reason of the happening of a contingency, whether
or not such contingency has happened.

SECTION 102. Compliance Certificates and Opinions.

                         Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the TIA. Each such certificate or opinion shall be given in the
form of an Officers’ Certificate, if to be given by an officer of the Company, or an Opinion of
Counsel, if to be given by counsel, and shall comply with the requirements of the TIA and any other
requirements set forth in this Indenture.

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

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

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

                         (3) a statement that, in the opinion of each such individual, he 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, in the opinion of each such individual, such condition or
covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

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

7

 

Person may certify or give an opinion as
to such matters in one or several documents.

                         Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer actually knows that the certificate or opinion or representations with respect to the
matters upon which his certificate or opinion is based are erroneous. Any such certificate or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the Company, unless such
counsel knows, or in the exercise of reasonable care (but without having made an investigation
specifically for the purpose of rendering such opinion) should know, that the certificate or
opinion or representations with respect to such matters are erroneous.

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

SECTION 104. Acts of Holders; Record Dates.

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

                              Without limiting the generality of the foregoing, a Holder, including a Depositary that is a
Holder of a Global Security, may make, give or take, by a proxy, or proxies, duly appointed in
writing, any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted in this Indenture to be made, given or taken by Holders, and a Depositary
that is a Holder of a Global Security may provide its proxy or proxies to the beneficial owners of
interest in any such Global Security.

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

8

 

executing the same, may also be proved in any other manner
which the Trustee deems sufficient.

                         (3) Except as provided in the next paragraph, the Company may, in the circumstances permitted
by the TIA, set any day as the record date for the purpose of determining the Holders of Securities
of any series entitled to give or take any request, demand, authorization, direction, notice,
consent, waiver or other action, or to vote on any action, authorized or permitted to be given or
taken by Holders of Securities of such series. With regard to any record date set pursuant to this
paragraph, the Holders of Outstanding Securities of the relevant series on such record date (or
their duly appointed agents), and only such Persons, shall be entitled to give or take the relevant
action, whether or not such Holders remain Holders after such record date. With regard to any
action that may be given or taken hereunder only by Holders of a requisite principal amount of
Outstanding Securities of any series (or their duly appointed agents) and for which a record date
is set pursuant to this paragraph, the Company may, at its option, set an expiration date after
which no such action purported to be given or taken by any Holder shall be effective hereunder
unless given or taken on or prior to such expiration date by Holders of the requisite principal
amount of Outstanding Securities of such series on such record date (or their duly appointed
agents). On or prior to any expiration date set pursuant to this paragraph, the Company may, on one
or more occasions at its option, extend such date to any later date. Nothing in this paragraph
shall prevent any Holder (or any duly appointed agent thereof) from giving or taking, after any
expiration date, any action identical to, or, at any time, contrary to or different from any action
given or taken, or purported to have been given or taken, hereunder by a Holder on or prior to such
date, in which event the Company may set a record date in respect hereof pursuant to this
paragraph.

                              Notwithstanding the foregoing, upon receipt by the Trustee, with respect to Securities of any
series, of (i) any Notice of Default pursuant to Section 501 (ii) any declaration of acceleration,
or any rescission and annulment of any such declaration pursuant to Section 502 or (iii) any
direction given pursuant to Section 512 (any such notice, declaration, rescission and annulment, or
direction being referred to herein as a “Direction”), a record date shall automatically and without
any other action by any Person be set for the purpose of determining the Holders of Outstanding
Securities of such series entitled to join in such Direction, which record date shall be the close
of business on the day the Trustee receives such Direction. The Holders of Outstanding Securities
of such series on such record date (or their duly appointed agents), and only such Persons, shall
be entitled to join in such Direction whether or not such Holders remain Holders after such record
date; provided that, unless such Direction shall have become effective by virtue of Holders
of the requisite principal amount of Outstanding Securities of such series on such record date (or
their duly appointed agents) having joined therein on or prior to the 9Oth day after such record
date, such Direction shall automatically and without any action by any Person be canceled and of no
further effect. Nothing in this paragraph shall prevent a Holder (or a duly appointed agent
thereof) from giving, before or after the expiration of such 90-day period, a Direction contrary to
or different from, or, after the expiration or such period, identical to, a Direction that has been
canceled pursuant to the proviso to the preceding sentence, in which event a new record date in respect thereof shall be set
pursuant to this paragraph.

9

 

                              Without limiting the foregoing, a Holder entitled hereunder to give or take any action
hereunder with regard to any particular Security may do so with regard to all or any part of the
principal amount of such Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any different part of such principal amount.

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

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

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

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

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

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

SECTION 106. Notice to Holders; Waiver.

                         Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.

                         Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver.

10

 

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

SECTION 107. Conflict with Trust Indenture Act of 1939.

                         If any provision hereof limits, qualifies or conflicts with a provision of the TIA that is
required under the TIA to be a part of and govern this Indenture, the TIA shall control. If any
provision of this Indenture modifies or excludes any provision of the TIA that may be so modified
or excluded, the TIA shall be deemed to apply to this Indenture as so modified or to be excluded,
as the case may be.

SECTION 108. Effect of Headings and Table of Contents.

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

SECTION 109. Successors and Assigns.

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

SECTION 110. Separability Clause.

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

SECTION 111. Benefits of Indenture.

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

SECTION 112. Governing Law.

                         This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York, and for all purposes shall be governed by and construed in
accordance with the laws of said State without regard to the conflicts of law rules of said State.

SECTION 113. Legal Holidays.

                         Unless otherwise specified pursuant to Section 301 or in any Security, in any case where any
Interest Payment Date, Redemption Date or Stated Maturity of any Security of any series shall not
be a Business Day at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities (other than a provision of the Securities of any series which
specifically states that such provision shall apply in lieu of this Section)) payment of interest
or principal (and premium, if any) need not be made at such Place of Payment on such date, but may
be made on the next succeeding Business Day at such Place of Payment with the same force and

11

 

effect as if made on the Interest Payment Date, Redemption Date or at the Stated Maturity, and no interest
shall accrue on the amount so payable for the period from and after such Interest Payment Date,
Redemption Date or Stated Maturity, as the case may be, to such Business Day if such payment is
made or duly provided for on such Business Day.

SECTION 114. No Security Interest Created.

                         Nothing in this Indenture or in the Securities, express or implied, shall be construed to
constitute a security interest or mortgage or other pledge of collateral under the Uniform
Commercial Code or similar legislation or real property laws, as now or hereafter enacted and in
effect in any jurisdiction where property of the Company or its Subsidiaries is or may be located.

SECTION 115. Liability Solely Corporate.

                         No recourse shall be had for the payment of the principal of (or premium, if any) or the
interest on any Securities, or any part thereof, or of the indebtedness represented thereby, or
upon any obligation, covenant or agreement of this Indenture, against any incorporator, or against
any stockholder, officer or director, as such, past, present or future, of the Company (or any
incorporator, stockholder, officer or director of any predecessor or successor corporation), either
directly or through the Company (or any such predecessor or successor corporation), whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly agreed and understood that this Indenture and all the
Securities are solely corporate obligations, and that no personal liability whatsoever shall attach
to, or be incurred by, any such incorporator, stockholder, officer or director, past, present or
future, of the Company (or any incorporator, stockholder, officer or director of any such
predecessor or successor corporation), either directly or indirectly through the Company or any
such predecessor or successor corporation, because of the indebtedness hereby authorized or under
or by reason of any of the obligations, covenants, promises or agreements contained in this
Indenture or in any of the Securities or to be implied herefrom or therefrom; and that any such
personal liability is hereby expressly waived and released as a condition of, and as part of the
consideration for, the execution of this Indenture and the issue of Securities; provided,
however, that nothing herein or in the Securities contained shall be taken to prevent
recourse to and the enforcement of the liability, if any, of any stockholder or subscriber to
capital stock upon or in respect of the shares of capital stock not fully paid.

SECTION 116. Appointment of Agent for Service.

                         The Company hereby appoints the General Counsel at the office of Santander Central Hispano
located in The City of New York as the Company’s authorized agent (the “Authorized Agent”) upon
whom service of process may be served in any action arising out of or based on the Securities or
this Indenture (including any action based on or arising out of the United States federal
securities laws) that may be instituted in New York State or United States Federal Courts sitting
in The City of New York by the Trustee or the Holder of any Security, and the Company hereby
expressly accepts the jurisdiction of any such court in respect of any such action. Such
appointment shall be irrevocable unless and until the appointment of a successor authorized agent
for service of process, and such successor’s

12

 

acceptance of such appointment, shall have occurred,
and the Company and such Authorized Agent will take any and all actions, including the filing of
any and all documents and instruments, that may be necessary to continue such appointment or
appointments in full force and effect as aforesaid. Service of process upon an Authorized Agent
will be deemed, in every respect, effective service of process upon the Company. Notwithstanding
the foregoing, any action against the Company arising out of or based on any Security or this
Indenture may also be instituted by the Holder of such Security in any court in the Commonwealth
and the Company hereby expressly accepts the jurisdiction of any such court in respect of any such
action.

ARTICLE TWO

Security Forms

Section 201. Forms Generally.

                         The Securities of each series shall be in substantially the form (including global form) set
forth in this Article, or in such other form as shall be established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification or designation and
such legends or endorsements placed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Indenture, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any securities
exchange on which any series of the Securities may be listed, or of the Depositary thereof, or as
may, consistently herewith, be determined by the officers executing such Securities, as evidenced
by their execution thereof. If the form of Securities of any series is established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified
by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior
to the delivery of the Company Order contemplated by Section 303 for the authentication and
delivery of such Securities.

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

Section 202. Form of Face of Security.

                         [Insert any legend required by the Internal Revenue Code, the Puerto Rico Internal Revenue
Code of 1994, and the regulations thereunder.]

SANTANDER BANCORP

	 	 	 
	[CUSIP NO.]
	 	 
	No. ___________

	 	$ ___________

                         SANTANDER BANCORP, a corporation duly organized and existing under the laws of the
Commonwealth of Puerto Rico (herein called the “Company,” which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby promises to pay to
___, or registered assigns, the principal sum of
___Dollars on

13

 

____ [if the
Security is to bear interest prior to Maturity, insert — , and to pay interest thereon from
____ or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, ____ on ____ and ____ in each year, commencing
____, at the rate of ____% per annum, until the principal hereof is paid or made available for
payment]. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the ____ or ____ (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture].

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

                         Payment of the principal of (and premium, if any) and [if applicable, insert — any such]
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private debts
[if applicable, insert —; provided, however, that at the option of the Company
payment of interest may be made by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register or by wire transfer to an account designated by
such Person].

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

                         Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this

14

 

Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

                         IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

     Dated:

	 	 	 	 	 
	 	 	SANTANDER BANCORP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

	 	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	Name:	 	 
	Title:	 	 

Section 203. Form of Reverse of Security.

                         This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
___, 20___(herein called the “Indenture”), between the Company and The Bank of New York Trust
Company, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is
hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof[, limited in aggregate principal amount to $___.

                         [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 days’ notice by mail, [if applicable, insert — (1) on ___in any year
commencing with the year ...... and ending with the year ___through operation of the sinking
fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)] at any
time [on or after ___], as a whole or in part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount): If redeemed [on or
before ___, ___%, and if redeemed during the 12-month period beginning ___of
the years indicated,

15

 

	 	 	 	 	 	 	 	 
	 	 	Redemption	 	 	 	Redemption	 
	Year	 	Price	 	Year	 	Price	 

and thereafter at a Redemption Price equal to ____% of the principal amount, together in the case
of any such redemption [if applicable, insert — (whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture.]

                         [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 days’ notice by mail, (1) on ___in any year commencing with the year ___
and ending with the year ___through operation of the sinking fund for this series at the
Redemption Prices for redemption through operation of the sinking fund (expressed as percentages of
the principal amount) set forth in the table below, and (2) at any time [on or after
___], as a whole or in part, at the election of the Company, at the Redemption Prices for
redemption otherwise than through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month period beginning
___of the years indicated,

	 	 	 	 	 
	 	 	Redemption Price	 	 	 
	 	 	For Redemption	 	 	 
	 	 	Through Operation	 	 	Redemption Price For
	 	 	of the	 	 	Redemption Otherwise Than Through Operation
	Year	 	Sinking Fund	 	 	of the Sinking Fund

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.]

                         [Notwithstanding the foregoing, the Company may not, prior to ___, redeem any
Securities of this series as contemplated by [Clause (2) of] the preceding paragraph as a part of,
or in anticipation of, any refunding operation by the application, directly or indirectly, of
moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than ___% per annum.]

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

16

 

                         [If the Security is subject to redemption, insert — In the event of redemption of this
Security in part only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

                         [If the Security is not an Original Issue Discount Security, insert — If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.]

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

                         The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

                         No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

                         As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

17

 

                         The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

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

                         Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

                         All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

Section 204. Form of Trustee’s Certificate of Authentication.

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

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

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

	 	By:	 	 
	 

	 	 	 	 
	 	 	Authorized Signatory
	 
	 	 	 	 
	 

	 	Dated:	 	 
	 

	 	 	 	 

Section 205. Additional Provisions Required in Global Security.

                         Any Global Security authenticated and delivered hereunder shall bear a legend 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 Depositary or a nominee thereof. This Security may not be
transferred to, or registered or exchanged, in whole or in part, for Securities registered in the
name of, any Person other than the Depositary or a nominee thereof and no such transfer may be
registered, except in the limited circumstances described in the Indenture. Every Security
authenticated and delivered upon registration or transfer of, or in exchange for or in lieu of,
this Security shall be a Global Security subject to the foregoing, except in such limited
circumstances.”

18

 

ARTICLE THREE

The Securities

Section 301. Amount Unlimited; Issuable in Series.

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

                         The Securities may be issued in one or more series. There shall be established, with respect
to the Securities of any series, in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers’ Certificate, or established in one
or more indentures supplemental hereto, prior to the issuance of Securities of such series,

          (1) the title of the Securities of the series (which shall distinguish the Securities
of the series from Securities of any other series of Securities), and CUSIP number(s), if
any;

          (2) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);

          (3) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;

          (4) the date or dates on which or periods during which the Securities of the series may
be issued, and the date or dates (or the method of determination thereof) on which the
principal of (and premium, if any, on) the Securities of such series are or may be payable
(which, if so provided in such Board Resolution or supplemental indenture, may be determined
by the Company from time to time and set forth in the Securities of the series issued from
time to time);

          (5) the rate or rates (or methods of determination thereof) at which the Securities of
the series shall bear interest, if any, the date or dates from which such interest shall
accrue, the Interest Payment Dates on which any such interest shall be payable and the
Regular Record Date for any such interest payable on any Interest Payment Date and the basis
upon which interest shall be calculated, if other than in 360-day year of twelve 30-day
months;

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

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

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

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

          (10) the currency, currencies or currency units in which payment of the principal of
and any premium and interest on any Securities of the series shall be payable if other than
the currency of the United States of America and the manner of determining the equivalent
thereof in the currency of the United States of America for purposes of the definition of
“Outstanding” in Section 101;

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

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

          (13) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

          (14) if and as applicable, that the Securities of the series shall be issuable in whole
or in part in the form of one or more Global Securities and, in such case, the Depositary or
Depositaries for such Global Security or Global Securities and any circumstances other than
those set forth in Section 305 in which any such Global Security may be transferred to, and
registered and exchanged for Securities registered in the name of, a Person other than the
Depositary for such Global Security or nominee thereof, and in which any such transfer may
be registered;

          (15) if other than as specified in Section 501, the Events of Default applicable with
respect to the Securities of the series;

          (16) the Events of Default set forth in Section 501 applicable with respect to the
Securities of the series, if fewer than all of the Events of Default set forth in Section
501;

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          (17) the applicability, if any, of Article Thirteen of this Indenture to the Securities
of the series and any provision in modification of, in addition to or in lieu of any of the
provisions of Article Thirteen;

          (18) any other covenant or warranty included for the benefit of Securities of the
series in addition to (and not inconsistent with) those included in this Indenture for the
benefit of Securities of all series, or any other covenant or warranty included for the
benefit of Securities of the series in lieu of any covenant or warranty included in this
Indenture for the benefit of Securities of all series, or any provision that any covenant or
warranty included in this Indenture for the benefit of Securities of all series shall not be
for the benefit of Securities of such series, or any combination of such covenants,
warranties or provisions; and

          (19) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 901(5)).

                         All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto, pertaining to such
series of Securities. All Securities of any one series need not be issued at the same time and,
unless otherwise so provided by the Company, a series may be reopened for issuances of additional
Securities of such series.

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

Section 302. Denominations.

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

Section 303. Execution, Authentication, Delivery and Dating.

                         The Securities shall be executed on behalf of the Company by any two of its Chairman of the
Board, its Vice Chairman of the Board, its President or one of its Vice Presidents, its Chief
Financial Officer or its Treasurer, under its corporate seal reproduced thereon attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the
Securities may be manual or facsimile.

                         Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such

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Securities or did
not hold such offices at the date of authentication of such Securities.

                         At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be provided with, and (subject to Section 601) shall be fully
protected in relying upon, an Opinion of Counsel stating,

          (a) if the form of such Securities has been established by or pursuant to Board
Resolution as permitted by Section 201, that such form has been established in conformity
with the provisions of this Indenture;

          (b) if the terms of such Securities have been established by or pursuant to Board
Resolution as permitted by Section 301, that such terms have been established in conformity
with the provisions of this Indenture; and

          (c) that such Securities, when authenticated and delivered by the Trustee and issued by
the Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and legally binding obligations of the Company enforceable in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles and, if applicable, to
provisions of law which may require that a judgment for money damages rendered by a court in
the United States be expressed in United States dollars.

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

                         Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the authentication upon original issuance of the first Security of such series to be issued.

                         Each Security shall be dated the date of its authentication.

                         No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate

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upon any Security
shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company, and the Company
shall deliver such Security to the Trustee for cancellation as provided in Section 309, for all
purposes of this Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this Indenture.

Section 304. Temporary Securities.

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

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

Section 305. Registration, Registration of Transfer and Exchange.

                         The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company in a Place
of Payment being herein sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed
“Security Registrar” for the purpose of registering Securities and transfers of Securities as
herein provided.

                         Upon surrender for registration of transfer of any Security of any series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and tenor and bearing a number not contemporaneously outstanding.

                         At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized

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denominations and of a like aggregate principal amount and
tenor, upon surrender of the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

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

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

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

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

                         Notwithstanding the foregoing and except as otherwise specified or contemplated by Section
301, no Global Security shall be exchangeable pursuant to this Section 305 or Sections 304, 906 and
1107 for Securities registered in the name of, and no transfer of a Global Security of any series
may be registered to, any Person other than the Depositary for such Security or its nominee unless
(1) such Depositary (A) notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Security or (B) ceases to be a clearing agency registered under the
Exchange Act and a successor Depositary is not appointed by the Company within 60 days of the date
the Company is so notified in writing, (2) the Company executes and delivers to the Trustee a
Company Order that such Global Security shall be so exchangeable and the transfer thereof so
registerable, or (3) there shall have occurred and be continuing an Event of Default, or an event
which with notice or lapse of time or both would become an Event of Default, with respect to the
Securities evidenced by such Global Security. Upon the occurrence in respect of any Global Security
of any series of any one or more of the conditions specified in clauses (1), (2) or (3) of the
preceding sentence or such other conditions as may be specified as contemplated by Section 301 for
such series, such Global Security may be exchanged for Securities registered in the names of, and
the transfer of such Global Security may be registered to, such Persons (including Persons other than the Depositary with
respect to such series and its nominees), as such Depositary shall direct. Notwithstanding any
other provision of this Indenture, any

24

 

Security authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, any Global Security shall also be a Global Security
and shall bear the legend specified in Section 205 except for any Security authenticated and
delivered in exchange for, or upon registration of transfer of, a Global Security pursuant to the
preceding sentence.

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

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

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

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

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

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

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

Section 307. Payment of Interest; Interest Rights Preserved.

                         Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest. Unless otherwise specified as contemplated by Section 301 with
respect to the Securities of any series, payment of interest on such Securities shall be made at
the Place or Places of Payment specified pursuant to Section 301 or, at the option of the Company,
by check mailed to the address of the Person entitled thereto as such address shall appear in

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the Security Register or, if provided pursuant to section 301, by wire transfer to an account designated by the Holder

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

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder of Securities of such series at his or her address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities
of such series (or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the
following clause (2).

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

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

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Section 308. Persons Deemed Owners.

          Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of and
any premium and (subject to Section 307) any interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

Section 309. Cancellation.

          All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of by
the Trustee, subject to applicable law, in accordance to its customary practice and certification
of their disposal delivered to the Company upon its request therefor unless by a Company Order the
Company shall direct that the canceled Securities be returned to it.

Section 310. Computation of Interest.

          Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

Section 311. CUSIP Numbers.

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

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ARTICLE FOUR

Satisfaction and Discharge

Section 401. Satisfaction and Discharge of Indenture.

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

          (1) either

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

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

     (i) have become due and payable, or

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

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

and the Company, in the case of (i), (ii) or (iii) above, has deposited or
caused to be deposited with the Trustee as trust funds in trust for the
purpose an amount sufficient to pay and discharge the entire indebtedness on
such Securities not theretofore delivered to the Trustee for cancellation,
for principal and any premium and interest to the date of such deposit (in
the case of Securities which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be;

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

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

          Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Trustee to any Authenticating
Agent under Section 612 and,

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

Section 402. Application of Trust Money.

          Subject to the provisions of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal and any premium and interest for whose payment
such money has been deposited with the Trustee.

ARTICLE FIVE

Remedies

Section 501. Events of Default.

          “Event of Default,” wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

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

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

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

     (4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture or the Securities of such series (other than a covenant or warranty a
default in whose performance or whose breach is elsewhere in this Section specifically dealt
with or which has expressly been included in this Indenture solely for the benefit of series
of Securities other than that series), and continuance of such default or breach for a
period of 90 days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities of that series a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder; or

     (5) a default under any bond, debenture, note or other evidence of indebtedness for
money borrowed (including a default with respect to Securities of any series other than that
series) or under any mortgage, indenture or instrument under which there may be issued or by
which

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there may be secured or evidenced any indebtedness for money borrowed by the Company
or any Material Banking Subsidiary in excess of $10,000,000, whether such indebtedness now
exists or shall here after be created, which default shall have resulted in such
indebtedness becoming or being declared due and payable prior to the date on which it would
otherwise have become due and payable, without such acceleration having been rescinded or
annulled within a period of 30 days after there shall have been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of not less than 25% in principal amount of the Outstanding Securities of that
series a written notice specifying such default and requiring the Company or the Material
Banking Subsidiary, as the case may be, to cause such acceleration to be rescinded or
annulled and stating that such notice is a “Notice of Default” hereunder; provided,
however, that if such default shall be remedied or cured by the Company or the
Material Banking Subsidiary or waived by the holders of such indebtedness, then the Event of
Default hereunder by reason thereof shall be deemed likewise to have been thereupon
remedied, cured or waived without any action on the part of the Trustee or any of the
Holders; or

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

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

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due,
or the taking of corporate action by the Company or any Material Banking Subsidiary in
furtherance of any such action; or

     (8) any other Event of Default provided with respect to Securities of that series
pursuant to Section 301.

Section 502. Acceleration of Maturity; Rescission and Annulment.

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

          At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of not less than a majority in
principal amount of the Outstanding Securities of that series, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if:

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

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

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

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

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

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

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

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

     The Company covenants that if:

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

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

     (3) default is made in the making or satisfaction of any sinking fund payment or
analogous obligation when the same becomes due pursuant to the terms of the Securities of
any series,

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

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

Section 504. Trustee May File Proofs of Claim.

          In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the TIA
in order to have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607.

          No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;

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provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or other similar
committee.

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

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

Section 506. Application of Money Collected.

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

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

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

     THIRD:The balance, if any, to the Company.

Section 507. Limitation on Suits.

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

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

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

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

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

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

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

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

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

Section 509. Restoration of Rights and Remedies.

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

Section 510. Rights and Remedies Cumulative.

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

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Section 511. Delay or Omission Not Waiver.

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

Section 512. Control by Holders.

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

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

     (2) subject to the provisions of Section 601, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall, by a Responsible
Officer or Responsible Officers of the Trustee, determine that the proceeding so directed
would be unjustly prejudicial to the Holders of the Securities of such series not joining in
such direction, and

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

Section 513. Waiver of Past Defaults.

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

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

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

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

Section 514. Undertaking for Costs.

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

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party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Holder pursuant to Section 508. This Section 514
shall be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded
from this Indenture, as permitted by the TIA.

Section 515. Waiver of Usury, Stay or Extension Laws.

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

ARTICLE SIX

The Trustee

Section 601. Certain Duties and Responsibilities.

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

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

          (b) in the absence of bad faith on its part, the Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or opinions
which by any provisions hereof are specifically required to be furnished to the Trustee,
the Trustee shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture (but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein).

          This Section 601(1) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is
hereby expressly excluded from this Indenture, as permitted by the TIA.

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

          (3) Subject to Section 603, no provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure to act, or its own
willful misconduct, except that:

          (a) this subsection (3) shall not be construed to limit the effect of subsection
(1) of this Section 601;

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

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

     Subparagraphs (3)(a), (b) and (c) shall be in lieu of Sections 315(d)(1), 315(d)(2) and
315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly
excluded from this Indenture, as permitted by the TIA.

          (4) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 601.

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

Section 602. Certain Rights of Trustee.

          Subject to the provisions of Section 601 and its duties and responsibilities under the TIA:

          (1) the Trustee may conclusively rely and shall be fully protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document (whether in original or facsimile

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form) believed by it to be genuine and to have
been signed or presented by the proper party or parties;

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

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

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

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

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

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

          (8) the Trustee shall not be deemed to have notice of any Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Securities and this Indenture;

          (9) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder; and

          (10) The Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this

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Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

Section 603. Not Responsible for Recitals or Issuance of Securities.

          The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or application by the
Company of Securities or the proceeds thereof.

Section 604. May Hold Securities.

          The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 610 and 611, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

Section 605. Money Held in Trust.

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

Section 606. Notice of Defaults.

          Within 90 days after the occurrence of any default hereunder with respect to Securities of any
series, the Trustee shall give notice to all
Holders of Securities of such series of such default hereunder known to the Trustee, unless
such default shall have been cured or waived. Except in the case of a default in the payment of the
principal of and any premium or interest on any Security of such series or in the payment of any
sinking fund installment with respect to Securities of such series, the Trustee shall be protected
in withholding such notice if and so long as a committee of Responsible Officers of the Trustee in
good faith determines that the withholding of such notice is in the interest of the Holders of
Securities of such series; provided, however, that in the case of any default of the character
specified in Section 501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term “default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series. The second sentence
of this Section 606 shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso
is hereby expressly excluded from this Indenture, as permitted by the TIA.

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Section 607. Compensation and Reimbursement.

          The Company agrees:

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

          (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable compensation and the
expenses, advances and disbursements of its agents and counsel), except any such expense,
disbursement or advance as shall be determined to have been caused by its own negligence or willful
misconduct; and

          (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability, claim,
damage or expense incurred without negligence or willful misconduct on its part, arising out of or
in connection with the acceptance or administration of the trust or trusts hereunder, including the
costs and expenses of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.

          To secure the Company’s payment obligations in this Section 607, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the Trustee, except that
money or property held in trust for the payment of amounts due on particular Securities.

          The Company’s payment obligations pursuant to this Section 607 shall survive the discharge of
this Indenture and resignation or removal of the Trustee. When the Trustee incurs expenses after
the occurrence of an Event of Default specified in Section 501(1) or Section 501(2), the expenses,
including the reasonable fees and expenses of its counsel, are intended to constitute expenses of
administration under any bankruptcy or insolvency law.

Section 608. Replacement of Trustee.

          The Trustee may resign by so notifying the Company; provided, however, no such resignation
shall be effective until a successor Trustee has accepted its appointment pursuant to this Section
608. The Holders of a majority in aggregate principal amount of the Securities at the time
outstanding may remove the Trustee by so notifying the Trustee and the Company. The Company shall
remove the Trustee if:

          (1) the Trustee fails to comply with Section 610;

          (2) the Trustee is adjudged bankrupt or insolvent;

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

          (4) the Trustee otherwise becomes incapable of acting.

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          In addition, the Company may remove the Trustee if the Company shall determine by a Board
Resolution that the services provided by the Trustee hereunder may be obtained at a substantially
lower cost to the Company.

          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.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company satisfactory in form and substance to the retiring Trustee and the
Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and
the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to Holders. The retiring
Trustee shall upon payment of its charges hereunder promptly transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided for in Section 607.

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

          If the Trustee fails to comply with Section 610 any Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

Section 609. Merger, Conversion, Consolidation or Succession to Business.

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

Section 610. Corporate Trustee Required; Eligibility.

          There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America, any State thereof, the Commonwealth
or the District of Columbia, authorized under such laws to exercise corporate trust powers, having
a combined capital and surplus of at least $50,000,000, subject to supervision or examination by
Federal, State, Commonwealth or District of Columbia authority and eligible to act as Trustee
hereunder in compliance with Section 310(a)(1) of the TIA. If such corporation publishes reports
of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising
or examining authority, then for the purposes of this Section,

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the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. Neither the Company nor any person directly or indirectly
controlling, controlled by, or under common control with the Company shall serve as Trustee upon
any Securities.

Section 611. Preferential Collection of Claims Against the Company.

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

Section 612. Appointment of Authenticating Agent.

          The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof, the Commonwealth or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal or State authority.
If such Authenticating Agent publishes reports of condition
at least annually, pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

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

          An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such

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a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve, as their names
and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance
of its appointment hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions of this
Section.

          The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

          If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

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

	 	 	 	 	 	,
	 	 	 	 
	 	 	As Trustee	 
	 
	 	 	 	 	 
	 

	 	By	 	 	 
	 

	 	 	 	 	 
	 	 	As Authenticating Agent	 
	 
	 	 	 	 	 
	 

	 	By	 	 	 
	 

	 	 	 	 	 
	 	 	Authorized Officer	 

ARTICLE SEVEN

Holders’ Lists and Reports by Trustee and Company

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

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

          (1) semi annually, not later than June 30 and December 30 in each year, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of the
preceding June 15 or December 15, as the case may be, and

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

provided, however, that if and so long as the Trustee shall be the Security
Registrar for such series, no such list need be furnished.

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Section 702. Preservation of Information; Communications to Holders.

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

          (2) The rights of the Holders to communicate with other Holders with respect to their rights
under this Indenture or under the Securities, and the corresponding rights and privileges of the
Trustee, shall be as provided by the TIA.

          (3) Each and every Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them
shall be held accountable by reason of any disclosure of information as to names and addresses of
Holders made pursuant to the TIA.

Section 703. Reports by Trustee.

          (1) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the TIA at the times and in the manner provided
pursuant thereto.

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

Section 704. Reports by Company.

          The Company shall file with the Trustee, within 15 days after the Company is required to file
the same with the Commission, copies of its annual report and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may by rules
and regulations prescribe) which the Company is required to file with the Commission pursuant to
Section 13 or 15(d) of the Exchange Act; or, if the Company is not required to file information,
documents or reports pursuant to either of said Sections, then it will file with the Trustee and
the Commission, in accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act, in respect of a security listed and registered
on a national securities exchange as may be required from time to time in such rules and
regulations. The Company shall also comply with the other provisions of TIA Section 314(a).

          Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

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ARTICLE EIGHT

Consolidation, Merger, Conveyance, Transfer or Lease

Section 801. Company May Consolidate, Etc., Only on Certain Terms.

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

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

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

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

Section 802. Successor Substituted.

          Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the “Company” herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved from all
obligations and covenants under this Indenture and the Securities.

ARTICLE NINE

Supplemental Indentures

Section 901. Supplemental Indentures Without Consent of Holders.

          Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time,

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may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:

     (1) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants, agreements and obligations of the Company herein and in
the Securities; or

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

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

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

     (5) to add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities, provided that any such addition, change or
elimination (i) shall neither (A) apply to any Security of any series created prior to the
execution of such supplemental indenture and entitled to the benefit of such provision nor
(B) modify the rights of the Holder of any such Security with respect to such provision or
(ii) shall become effective only when there is no such Security Outstanding; or

     (6) to secure the Securities; or

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

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

     (9) to cure any ambiguity, omission, defect or inconsistency herein, to correct or
supplement any provision herein or in any supplemental indenture which may be defective or
inconsistent with any other provision herein or in any supplemental indenture, or to make
any other provisions with respect to matters or questions arising under this Indenture,
provided that such action shall not adversely affect the interests of the Holders of
Securities of any series in any material respect;or

     (10) to add to or change or eliminate any provision of this Indenture as shall be
necessary or desirable in accordance with any

46

 

amendments to the TIA, provided such action
shall not adversely affect the interest of Holders of Securities of any series; or

     (11) to comply with any requirement of the Commission in connection with the
qualification of the Indenture under the TIA.

Section 902. Supplemental Indentures With Consent of Holders.

          With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may at any time and from time to time enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of modifying in any manner the
rights of the Holders of Securities of such series under this Indenture; provided,
however, that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,

     (1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to Section
502, or change any Place of Payment where, or the coin or currency in which, any Security or
any premium or interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date), or

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

     (3) modify any of the provisions of this Section, Section 513 or Section 1008, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby.

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

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

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Section 903. Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be provided with, and (subject to Section 601) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

Section 904. Effect of Supplemental Indentures.

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

Section 905. Conformity with Trust Indenture Act of 1939.

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

Section 906. Reference in Securities to Supplemental Indentures.

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

ARTICLE TEN

Covenants

Section 1001. Payment of Principal, Premium and Interest.

          The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay or caused to be paid the principal of and any premium and interest on the
Securities of that series in accordance with the terms of the Securities and this Indenture.

Section 1002. Maintenance of Office or Agency.

          The Company will maintain or cause to be maintained in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented or surrendered for
payment, where Securities of that series may be surrendered for registration of transfer, exchange
or redemption and where notices and demands to or upon the Company in respect of the Securities of
that series and this Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time
the Company

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shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee, or such other agent as is specified pursuant to Section 301, as its agent to receive all
such presentations, surrenders, notices and demands.

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

Section 1003. Money for Securities Payments to Be Held in Trust.

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

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

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

          (1) hold all sums held by it for the payment of principal of or any premium or interest on any
Securities of that series (whether such sums have been paid to it by the Company or by any other
obligor on the Securities) in trust for the benefit of the Persons entitled thereto;

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

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

          Anything in this Section to the contrary notwithstanding, the Company may at any time, for the
purpose of obtaining the satisfaction and

49

 

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

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

Section 1004. Officers’ Certificate as to Default.

          The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’ Certificate, stating whether or not to the
best knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.

Section 1005. Corporate Existence.

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

Section 1006. Limitation upon Sale or Issuance of Voting Stock of Certain Subsidiaries.

     Except as set forth below or in Article Eight hereof, the Company will not sell, assign,
pledge, transfer or otherwise dispose of, or permit the issuance of, or permit a Subsidiary to
sell, assign, pledge, transfer or dispose of, any shares of Voting Stock of any Subsidiary or any
securities convertible into Voting Stock of any Subsidiary which is:

50

 

          (a) a Principal Banking Subsidiary; or

          (b) a Subsidiary which owns shares of Voting Stock or any Securities convertible into Voting
Stock of a Principal Banking Subsidiary;

provided, however, that nothing in this Section shall prohibit (i) any dispositions made by the
Company or any Subsidiary (A) acting in a fiduciary capacity for any person other than the Company
or any Subsidiary or (B) to the Company or any of its wholly-owned Subsidiaries or (ii) the merger
or consolidation of a Principal Banking Subsidiary with and into a Banking
Subsidiary or the merger or consolidation of any Principal Banking Subsidiary with and into any
other Principal Banking Subsidiary.

          Notwithstanding the foregoing, a sale, assignment, pledge, transfer, issuance or other
disposition of shares of Voting Stock of a corporation referred to in clause (a) or (b) above may
be made where:

          (1) the sale, assignment, pledge, transfer, issuance or other disposition is made, in the
minimum amount required by law, to any Person for the purpose of the qualification of such Person
to serve as a director; or

          (2) the sale, assignment, pledge, transfer, issuance or other disposition is made in
compliance with an order of a court or regulatory authority of competent jurisdiction or as a
condition imposed by any such court or authority to the acquisition by the Company, directly or
indirectly, of any other corporation or entity; or

          (3) in the case of (i) a disposition or issuance of shares of Voting Stock or any securities
convertible into Voting Stock of a Principal Banking Subsidiary, or (ii) a sale of Voting Stock or
any Securities convertible into Voting Stock of any Subsidiary included in clause (b) above, (A)
the sale, assignment, pledge, transfer, issuance or other disposition is for fair market value (as
determined by the Board of Directors of the Company and the Board of Directors of the Subsidiary
disposing of such shares or securities, such determination being evidenced by Board Resolutions)
and (B) after giving effect to such disposition and to any potential dilution (if the shares or
securities are convertible into Voting Stock), the Company and its wholly-owned (except for
directors’ qualifying shares) Subsidiaries, will own directly not less than 80% of the Voting Stock
of such Principal Banking Subsidiary or Subsidiary; or

          (4) a Principal Banking Subsidiary sells additional shares of Voting Stock to its stockholders
at any price, so long as immediately after such sale the Company owns, directly or indirectly, at
least as great a percentage of the Voting Stock of such Principal Banking Subsidiary as it owned
prior to such sale of additional shares.

Section 1007. Limitation Upon Creation of Liens on Voting Stock of Material Banking Subsidiaries.

          The Company will not, and it will not permit any Material Banking Subsidiary at any time
directly or indirectly to, create, assume, incur or permit to exist any indebtedness for borrowed
money secured by a pledge, lien or other encumbrance (any pledge, lien or other encumbrance being
hereinafter in this Section referred to as a “lien”) on the Voting Stock of any Material Banking
Subsidiary without making effective provision whereby the Outstanding Securities (and, if the
Company so elects, any other indebtedness ranking on

51

 

a parity with the Securities) shall be secured
equally and ratably with such secured indebtedness so long as such other indebtedness shall be so
secured; provided, however, that the foregoing covenant shall not be applicable to
liens for taxes or assessments or governmental charges or levies not then due and delinquent or the
validity of which is being contested in good faith or which are less than $10,000,000 in amount,
liens created by or resulting from any litigation or legal proceeding which is currently being
contested in good faith by appropriate proceedings or which involve claims of less than
$10,000,000, or deposits to secure (or in lieu of) surety, stay, appeal or customs bonds.

          If the Company shall hereafter be required to secure the Securities equally and ratably with
any other indebtedness pursuant to this Section, (i) the Company will promptly deliver to the
Trustee an Officers’ Certificate stating that the foregoing covenant has been complied with, and an
Opinion of Counsel stating that in the opinion of such counsel the foregoing covenant has been
complied with and that any instruments executed by the Company or any Subsidiary in the performance
of the foregoing covenant comply with the requirements of the foregoing covenant and (ii) the
Trustee is hereby authorized to enter into an indenture or agreement supplemental hereto and to
take such action, if any, as it may deem advisable to enable it to enforce the rights of the
holders of the Securities so secured.

Section 1008. Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 1005, 1006 and 1007 (and, if so specified pursuant to Section 301,
any other covenant not set forth herein and specified pursuant to Section 301 to be applicable to
the Securities of any series, except as otherwise provided pursuant to Section 301), with respect
to the Securities of any series if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series shall, by Act of such
Holders, either waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company and the duties of the Trustee in respect of any such term, provision
or condition shall remain in full force and effect.

Section 1009. Calculation of Original Issue Discount.

          The Company shall file with the Trustee promptly after the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including daily rates and accrual
periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific
information relating to such original issue discount as may then be relevant under the Internal
Revenue Code of 1986, as amended from time to time.

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ARTICLE ELEVEN

Redemption of Securities

Section 1101. Applicability of Article.

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

Section 1102. Election to Redeem; Notice to Trustee.

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

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

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

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

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed. If the Company shall so direct, Securities registered in the name of the
Company, any Affiliate or any Subsidiary of the Company, shall not be included in the Securities
selected for redemption.

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Section 1104. Notice of Redemption.

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

          All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

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

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

          (5) the Place or Places of Payment where such Securities are to be surrendered for
payment of the Redemption Price,

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

          (7) the CUSIP number, if any.

          Notice of Redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request upon not less than 5 days advance notice, by the
Trustee in the name and at the expense of the Company.

Section 1105. Deposit of Redemption Price.

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

Section 1106. Securities Payable on Redemption Date.

          Notice of redemption having been given as aforesaid, Securities so to be redeemed shall, on
the Redemption Date, become due and payable at the Redemption Price therein specified, and from and
after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date; provided,
however, that, unless otherwise specified as contemplated by Section 301, installments of
interest whose

54

 

Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered as such at the close
of business on the relevant Record Dates according to their terms and the provisions of Section
307.

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

Section 1107. Securities Redeemed in Part.

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

ARTICLE TWELVE

Sinking Funds

Section 1201. Applicability of Article.

          The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 301 for Securities
of such series. The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any
payment in excess of such minimum amount provided for by the terms of Securities of any series is
herein referred to as an “optional sinking fund payment.” If provided for by the terms of
Securities of any series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 1202. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such series.

Section 1202. Satisfaction of Sinking Fund Payments with Securities.

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

55

 

sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

Section 1203. Redemption of Securities for Sinking Fund.

          Not less than 45 days prior to each sinking fund payment date for any series of Securities
(unless a shorter period shall be satisfactory to the Trustee), the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any, which is to be
satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 1202 and will also deliver
to the Trustee any Securities to be so delivered. Such Officers’ Certificate shall be irrevocable
and upon its delivery the Company shall be obligated to make the cash payment or payments therein
referred to, if any, on or before the succeeding sinking fund payment date. In the case of the
failure of the Company to deliver such Officers’ Certificate (or, as required by this Indenture and
the Securities, specified in such Officers’ Certificate), the sinking fund payment due on the
succeeding sinking fund payment date for such series shall be paid entirely in cash and shall be
sufficient to redeem the principal amount of the Securities of such series subject to a mandatory
sinking fund payment without the right to deliver or credit Securities as provided in Section 1202
and without the right to make the optional sinking fund payment with respect to such series at such
time.

          Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused
balance of any preceding sinking fund payments made with respect to the Securities of any
particular series shall be applied by the Trustee (or by the Company if the Company is acting as
its own Paying Agent) on the sinking fund payment date on which such payment is made (or, if such
payment is made before a sinking fund payment date, on the sinking fund payment date immediately
following the date of such payment) to the redemption of Securities of such series at the
Redemption Price specified in such Securities with respect to the sinking fund. Any sinking fund
moneys not so applied or allocated by the Trustee (or, if the Company is acting as its own Paying,
Agent, segregated and held in trust by the Company as provided in Section 1003) for such series and
together with such payment (or such amount so segregated) shall be applied in accordance with the
provisions of this Section. Any and all sinking fund moneys with respect to the Securities of any
particular series held by the Trustee (or if the Company is acting as its own Paying Agent,
segregated and held in trust as provided in Section 1003) on the last sinking fund payment date
with respect to Securities of such series and not held for the payment or redemption of particular
Securities of such series shall be applied by the Trustee (or by the Company if the Company is
acting as its own Paying Agent), together with other moneys, if necessary, to be deposited (or
segregated) sufficient for the purpose, to the payment of the principal of the Securities of such
series at Maturity.

          The Trustee shall select or cause to be selected the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 1104. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Section 1106.

56

 

          On or before each sinking fund payment date, the Company shall pay to the Trustee (or, if the
Company is acting as its own Paying Agent, the Company shall segregate and hold in trust as
provided in Section 1003) in
cash a sum in the currency in which Securities of such series are payable (except as provided
pursuant to Section 301) equal to the principal and any interest accrued to the Redemption Date for
Securities or portions thereof to be redeemed on such sinking fund payment date pursuant to this
Section.

          Neither the Trustee nor the Company shall redeem any Securities of a series with sinking fund
moneys or mail any notice of redemption of Securities of such series by operation of the sinking
fund for such series during the continuance of a default in payment of interest, if any, on any
Securities of such series or of any Event of Default (other than an Event of Default occurring as a
consequence of this paragraph) with respect to the Securities of such series, except that if the
notice of redemption shall have been provided in accordance with the provisions hereof, the Trustee
(or the Company, if the Company is then acting as its own Paying Agent) shall redeem such
Securities if cash sufficient for that purpose shall be deposited with the Trustee (or segregated
by the Company) for that purpose in accordance with the terms of this Article Twelve. Except as
aforesaid, any moneys in the sinking fund for such series at the time when any such default or
Event of Default shall occur and any moneys thereafter paid into such sinking fund shall, during
the continuance of such default or Event of Default, be held as security for the payment of the
Securities of such series; provided, however, that in case such default or Event of Default shall
have been cured or waived herein, such moneys shall thereafter be applied on the next sinking fund
payment date for the Securities of such series on which such moneys may be applied pursuant to the
provisions of this Section.

ARTICLE THIRTEEN

Defeasance

Section 1301. Applicability of Article.

          If, pursuant to Section 301, provision is made for the defeasance of Securities of a series,
and if the Securities of such series are Registered Securities and denominated and payable only in
Dollars (except as provided pursuant to Section 301) then the provisions of this Article shall be
applicable except as otherwise specified pursuant to Section 301 for Securities of such series.
Defeasance provisions, if any, for Securities denominated in a Foreign Currency or Currencies may
be specified pursuant to Section 301.

Section 1302. Defeasance Upon Deposit of Moneys or U.S. Government Obligations.

          At the Company’s option, either (a) the Company shall be deemed to have been Discharged (as
defined below) from its obligations with respect to Securities of any series (“legal defeasance
option”) or (b) if so specified pursuant to Section 301, the Company shall cease to be under any
obligation to comply with any obligation of the Company or restrictive covenant added for the
benefit of such series pursuant to Section 301 (“covenant defeasance option”), in either case at
any time after the applicable conditions set forth below have been satisfied:

57

 

     (1) the Company shall have deposited or caused to be deposited irrevocably with the Trustee as
trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the Securities of such
series (i) money in an amount, or (ii) U.S. Government Obligations (as defined below) which through
the payment of interest and principal in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment, money in an amount, or (iii) a
combination of (i) and (ii), sufficient, in the opinion (with respect to (i) and (ii)) of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge each installment of principal (including any
mandatory sinking fund payments) of and premium, if any, and interest on, the Outstanding
Securities of such series on the dates such installments of interest or principal and premium are
due;

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

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

     (4) if the Securities of such series are then listed on any national securities exchange, the
Company shall have delivered to the Trustee an Opinion of Counsel or a letter or other document
from such exchange to the effect that the Company’s exercise of its option under this Section would
not cause such Securities to be delisted;

     (5) no Event of Default or event (including such deposit) which, with notice or lapse of time
or both, would become an Event of Default with respect to the Securities of such series shall have
occurred and be continuing on the date of such deposit and, with respect to the legal defeasance
option only, no Event of Default under Section 501(6) or Section 5.01(7) or event which with the
giving of notice or lapse of time, or both, would become an Event of Default under Section 501(6)
or Section 501(7) shall have occurred and be continuing on the 91st day after such date; and

     (6) the Company shall have delivered to the Trustee an Opinion of Counsel or a ruling from the
Internal Revenue Service to the effect that such deposit, defeasance or the Holders of the
Securities of such series will not recognize income, gain or loss for Federal income tax purposes
as a result of such deposit, defeasance or Discharge.

     Notwithstanding the foregoing, if the Company exercises its covenant defeasance option and an
Event of Default under Section 501(6) or Section 501(7) or event which with the giving of notice or
lapse of time, or both, would become an Event of Default under Section 501(6) or Section 501(7)
shall have occurred and be continuing on the 91st day after the date of such deposit, the
obligations of the Company referred to under the definition of covenant defeasance option with
respect to such Securities shall be reinstated.

     “Discharged” means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by, and obligations under, the Securities of such series and to have
satisfied all the obligations under this Indenture relating to the Securities of such series (and
the Trustee, at

58

 

the expense of the Company, shall execute proper instruments acknowledging the
same), except (A) the rights of Holders of Securities of such series to
receive, from the trust fund described in clause (1) above, payment of the principal of (and
premium, if any) and interest on such Securities when such payments are due, (B) the Company’s
obligations with respect to the Securities of such series under Sections 303, 305, 306, 607, 1002,
1003 and 1303 and (C) the rights, powers, trusts, duties and immunities of the Trustee hereunder.

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

Section 1303. Deposited Moneys and U.S. Government Obligations to Be Held in Trust.

     All moneys and U.S. Government Obligations deposited with the Trustee pursuant to Section 1302
in respect of Securities of a series shall be held in trust and applied by it, in accordance with
the provisions of such Securities and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due thereon for
principal (and premium, if any) and interest, if any, but such money need not be segregated from
other funds except to the extent required by law.

Section 1304. Repayment to Company.

     The Trustee and any Paying Agent shall promptly pay or return to the Company upon Company
Request any moneys or U.S. Government Obligations held by them at any time that are not required
for the payment of the principal of (and premium, if any) and interest on the Securities of any
series for which money or U.S. Government Obligations have been deposited pursuant to Section 1302.

     The provisions of the last paragraph of Section 1003 shall apply to any money held by the
Trustee or any Paying Agent under this Article that remains unclaimed for two years after the
Maturity of any series of Securities for which money or U.S. Government Obligations have been
deposited pursuant to Section 1302.

59

 

 

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

[SIGNATURE PAGE FOLLOWS]

60

 

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

	 	 	 	 	 
	 	 	SANTANDER BANCORP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

61EX-4.(d) FORM OF SUBORDINATED INDENTURE

 

Exhibit 4(d)

 

SANTANDER BANCORP

TO

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

TRUSTEE

 

SUBORDINATED

INDENTURE

DATED AS OF _______, 200_

 

 

 

SANTANDER BANCORP

CERTAIN SECTIONS OF THIS INDENTURE RELATING TO

SECTIONS 310 THROUGH 318, INCLUSIVE, OF THE

TRUST INDENTURE ACT OF 1939

	 	 	 
	Trust Indenture	 	Indenture
	    Act Section	 	Section
	ss. 310(a)(1)
	 	610
	(a)(2)
	 	610
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(a)(5)
	 	610
	(b)
	 	608
	 
	 	 
	ss. 311(a)
	 	611
	(b)
	 	611
	ss. 312(a)
	 	701(1),701(2)
	(b)
	 	702(2)
	(c)
	 	702(3)
	ss. 313(a)
	 	703(1)
	(b)
	 	703(2)
	(c)
	 	106, 703(1),
	(d)
	 	703(2)
	 
	 	 
	ss. 314(a)
	 	704
	(a)(4)
	 	704, 1004
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	(f)
	 	Not Applicable
	 
	 	 
	ss. 315(a)
	 	601
	(b)
	 	106, 602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	601
	ss. 316(a)
	 	512, 513
	(a)(1)(A)
	 	512
	(a)(1)(B)
	 	513
	(a)(2)
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104(3)
	ss. 317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	ss. 318(a)
	 	107

 

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

 i

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE ONE - Definitions and Other Provisions of General Application	 	1
	Section 101.
	 	Definitions	 	1
	Section 102.
	 	Compliance Certificates and Opinions	 	7
	Section 103.
	 	Form of Documents Delivered to Trustee	 	8
	Section 104.
	 	Acts of Holders; Record Dates	 	8
	Section 105.
	 	Notices, Etc., to Trustee and Company	 	10
	Section 106.
	 	Notice to Holders; Waiver	 	10
	Section 107.
	 	Conflict with Trust Indenture Act of 1939	 	11
	Section 108.
	 	Effect of Headings and Table of Contents	 	11
	Section 109.
	 	Successors and Assigns	 	11
	Section 110.
	 	Separability Clause	 	11
	Section 111.
	 	Benefits of Indenture	 	11
	Section 112.
	 	Governing Law	 	11
	Section 113.
	 	Legal Holidays	 	12
	Section 114.
	 	No Security Interest Created	 	12
	Section 115.
	 	Liability Solely Corporate	 	12
	Section 116.
	 	Appointment of Agent for Service	 	13
	ARTICLE TWO – Security Forms	 	13
	Section 201.
	 	Forms Generally	 	13
	Section 202.
	 	Form of Face of Security	 	14
	Section 203.
	 	Form of Reverse of Security	 	15
	Section 204.
	 	Form of Trustee’s Certificate of Authentication	 	19
	Section 205.
	 	Additional Provisions Required in Global Security	 	19
	ARTICLE THREE – The Securities	 	19
	Section 301.
	 	Amount Unlimited; Issuable in Series	 	19
	Section 302.
	 	Denominations	 	22
	Section 303.
	 	Execution, Authentication, Delivery and Dating	 	22
	Section 304.
	 	Temporary Securities	 	24
	Section 305.
	 	Registration, Registration of Transfer and Exchange	 	24
	Section 306.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	26
	Section 307.
	 	Payment of Interest; Interest Rights Preserved	 	26
	Section 308.
	 	Persons Deemed Owners	 	27
	Section 309.
	 	Cancellation	 	28
	Section 310.
	 	Computation of Interest	 	28
	Section 311.
	 	CUSIP Numbers	 	28
	ARTICLE FOUR – Satisfaction and Discharge	 	28
	Section 401.
	 	Satisfaction and Discharge of Indenture	 	28
	Section 402.
	 	Application of Trust Money	 	29
	ARTICLE FIVE – Remedies	 	30
	Section 501.
	 	Events of Default	 	30
	Section 502.
	 	Acceleration of Maturity; Rescission and Annulment	 	30
	Section 503.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	31
	Section 504.
	 	Trustee May File Proofs of Claim	 	32
	Section 505.
	 	Trustee May Enforce Claims Without Possession of Securities	 	32
	Section 506.
	 	Application of Money Collected	 	33
	Section 507.
	 	Limitation on Suits	 	33
	Section 508.
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	34
	Section 509.
	 	Restoration of Rights and Remedies	 	34
	Section 510.
	 	Rights and Remedies Cumulative	 	34
	Section 511.
	 	Delay or Omission Not Waiver	 	34

 ii

 

 

	 	 	 	 	 
	Section 512.
	 	Control by Holders	 	34
	Section 513.
	 	Waiver of Past Defaults	 	35
	Section 514.
	 	Undertaking for Costs	 	35
	Section 515.
	 	Waiver of Usury, Stay or Extension Laws	 	35
	ARTICLE SIX – The Trustee	 	36
	Section 601.
	 	Certain Duties and Responsibilities	 	36
	Section 602.
	 	Certain Rights of Trustee	 	37
	Section 603.
	 	Not Responsible for Recitals or Issuance of Securities	 	38
	Section 604.
	 	May Hold Securities	 	39
	Section 605.
	 	Money Held in Trust	 	39
	Section 606.
	 	Notice of Defaults	 	39
	Section 607.
	 	Compensation and Reimbursement	 	39
	Section 608.
	 	Replacement of Trustee	 	40
	Section 609.
	 	Merger, Conversion, Consolidation or Succession to Business	 	41
	Section 610.
	 	Corporate Trustee Required; Eligibility	 	41
	Section 611.
	 	Preferential Collection of Claims Against the Company	 	41
	Section 612.
	 	Appointment of Authenticating Agent	 	42
	ARTICLE SEVEN – Holders’ Lists and Reports by Trustee and Company	 	43
	Section 701.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	43
	Section 702.
	 	Preservation of Information; Communications to Holders	 	44
	Section 703.
	 	Reports by Trustee	 	44
	Section 704.
	 	Reports by Company	 	44
	ARTICLE EIGHT – Consolidation Merger, Conveyance, Transfer or Lease	 	45
	Section 801.
	 	Company May Consolidate, Etc., Only on Certain Terms	 	45
	Section 802.
	 	Successor Substituted	 	45
	ARTICLE NINE – Supplemental Indentures	 	45
	Section 901.
	 	Supplemental Indentures Without Consent of Holders	 	45
	Section 902.
	 	Supplemental Indentures With Consent of Holders	 	47
	Section 903.
	 	Execution of Supplemental Indentures	 	48
	Section 904.
	 	Effect of Supplemental Indentures	 	48
	Section 905.
	 	Conformity with Trust Indenture Act of 1939	 	48
	Section 906.
	 	Reference in Securities to Supplemental Indentures	 	48
	Section 907.
	 	Subordination Unimpaired	 	48
	ARTICLE TEN - Covenants	 	49
	Section 1001.
	 	Payment of Principal, Premium and Interest	 	49
	Section 1002.
	 	Maintenance of Office or Agency	 	49
	Section 1003.
	 	Money for Securities Payments to Be Held in Trust	 	49
	Section 1004.
	 	Officers’ Certificate as to Default	 	50
	Section 1005.
	 	Corporate Existence	 	51
	Section 1006.
	 	Waiver of Certain Covenants	 	51
	Section 1007.
	 	Calculation of Original Issue Discount	 	51
	ARTICLE ELEVEN – Redemption of Securities	 	51
	Section 1101.
	 	Applicability of Article	 	51
	Section 1102.
	 	Election to Redeem; Notice to Trustee	 	51
	Section 1103.
	 	Selection by Trustee of Securities to Be Redeemed	 	52
	Section 1104.
	 	Notice of Redemption	 	52
	Section 1105.
	 	Deposit of Redemption Price	 	53
	Section 1106.
	 	Securities Payable on Redemption Date	 	53
	Section 1107.
	 	Securities Redeemed in Part	 	53
	ARTICLE TWELVE – Sinking Funds	 	54
	Section 1201.
	 	Applicability of Article	 	54

 iii

 

 

	 	 	 	 	 
	Section 1202.
	 	Satisfaction of Sinking Fund Payments with Securities	 	54
	Section 1203.
	 	Redemption of Securities for Sinking Fund	 	54
	ARTICLE THIRTEEN – Subordination of Securities	 	56
	Section 1301.
	 	Securities Subordinate to Senior Indebtedness	 	56
	Section 1302.
	 	Payment Over of Proceeds Upon Dissolution, Etc.	 	56
	Section 1303.
	 	Prior Payment to Senior Indebtedness Upon Acceleration of Securities	 	57
	Section 1304.
	 	No Payment When Senior Indebtedness Default	 	57
	Section 1305.
	 	Payment Permitted if No Default	 	58
	Section 1306.
	 	Subrogation to Rights of Holders of Senior Indebtedness	 	58
	Section 1307.
	 	Provisions Solely to Define Relative Rights	 	59
	Section 1308.
	 	Authorization of Holders to Trustee to Effect Subordination	 	59
	Section 1309.
	 	No Waiver of Subordination Provisions	 	59
	Section 1310.
	 	Notices to Trustee	 	60
	Section 1311.
	 	Reliance on Judicial Order or Certificate of Liquidating Agent	 	61
	Section 1312.
	 	Trustee Not Fiduciary for Holders of Senior Indebtedness or Entitled Persons	 	61
	Section 1313.
	 	Rights of Trustee as Holder of Senior Indebtedness or Entitled Person;	 	 
	 
	 	Preservation of Trustee’s Rights	 	61
	Section 1314.
	 	Article Applicable to Paying Agents	 	62
	Section 1315.
	 	Payment of Proceeds in Certain Cases	 	62
	Section 1316.
	 	Article Not to Prevent Events of Default	 	63

 iv

 

 

     INDENTURE, dated as of ___, 200_, between SANTANDER BANCORP, a corporation duly organized
and existing under the laws of the Commonwealth of Puerto Rico (herein called the “Company”),
having its principal office at 207 Ponce de León Avenue, San Juan, Puerto Rico 00917, and THE BANK
OF NEW YORK TRUST COMPANY, N.A., a national banking association organized under the laws of the
United States, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

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

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

Definitions and Other Provisions

of General Application

Section 101. Definitions.

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

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

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

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

     (4) unless the context otherwise requires, any reference to an “Article” or a “Section” refers
to an Article or a Section, as the case may be, of this Indenture; and

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

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

 

 

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

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 612 to
act on behalf of the Trustee to authenticate Securities of one or more series.

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

     “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,” except as may otherwise be provided herein or in any Security, when used with
respect to any Place of Payment or other location, means each Monday, Tuesday, Wednesday, Thursday
and Friday which is not a day on which banking institutions in that Place of Payment are authorized
or obligated by law, regulation or executive order to remain closed.

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

     “Commonwealth” means the Commonwealth of Puerto Rico.

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

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board, its Vice Chairman of the Board, its President or a Vice
President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee.

     “Controlled Subsidiary” means any corporation more than 80 percent of the outstanding Voting
Stock of which, except for directors’ qualifying shares, shall at the time be owned directly or
indirectly by the Company.

     “Corporate Trust Office” means the principal corporate trust office of the Trustee at which,
at any particular time, its corporate trust business shall be administered, which office at the
date hereof is located at 10161 Centurion Parkway, Jacksonville, Florida 32256, Attention:
Corporate Trust Division, except that for purposes of Section 1002, such term shall mean the office or agency of
the Trustee in the Borough of Manhattan, the City of New

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York, which office at the date hereof is
located at 101 Barclay Street Fl.8W, New York, New York 10286.

     “corporation” means a corporation, association, company, limited liability company,
joint-stock company or business trust.

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

     “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated as Depositary by the
Company pursuant to Section 301.

     “Direction” has the meaning specified in Section 104.

     “Entitled Persons” means any person entitled to payment pursuant to the terms of Other
Financial Obligations.

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

     “Excess Proceeds” has the meaning specified in Section 203.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statutory successor thereto,
in each case as amended from time to time.

     “Global Security” means a Security bearing the legend prescribed in Section 205 evidencing all
or part of a series of Securities, issued to the Depositary for such series or its nominee, and
registered in the name of such Depositary or nominee.

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

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the TIA that are deemed to be a part of and govern this
instrument and any such supplemental indenture, respectively. The term “Indenture” shall also
include the terms of particular series of Securities established as contemplated by Section 301.

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

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

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

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a Vice
Chairman of the Board, the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant

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Secretary, of the Company, and delivered to the Trustee.
One of the officers signing an Officers’ Certificate given pursuant to Section 1004 shall be the
principal executive, financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
for the Company.

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

     “Other Financial Obligations” means, unless otherwise determined with respect to any series of
Securities pursuant to Section 301, all obligations to make payment pursuant to the terms of
derivative products, such as (i) interest and foreign exchange rate contracts, (ii) commodity
contracts and (iii) similar financial instruments; provided that the term Other Financial
Obligations shall not include (A) obligations on account of Senior Indebtedness and (B) obligations
that are expressly stated to rank junior to, or equally in right of payment with, the Securities.

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

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

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

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, (i) the principal amount of an Original Issue
Discount Security that shall be deemed to be Outstanding shall be the amount of the principal
thereof that would be due and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 502, (ii) the principal amount of a Security denominated in
one or more foreign currencies or currency units shall be the U.S. dollar equivalent, determined in the manner provided as
contemplated by Section 301 on the date of original issuance of such Security, of the principal
amount (or, in the case of an

4

 

Original Issue Discount Security, the U.S. dollar equivalent on the
date of original issuance of such Security of the amount determined as provided in (1) above) of
such Security, and (iii) Securities owned by the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Securities which a
Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor.

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

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

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

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

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

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

     “Registered Security” means any Security established pursuant to Section 201 which is
registered, and the transfer or exchange thereof is registrable, in the Security Register.

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

     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
secretary, assistant secretary, treasurer, assistant treasurer, trust officer or any other officer of the Trustee who customarily
performs functions similar to those performed by the Persons who at the time shall be such
officers, respectively, or to whom any

5

 

corporate trust matter is referred because of such Person’s
knowledge of and familiarity with the particular subject and who shall have direct responsibility
for the administration of this Indenture.

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

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

     “Senior Indebtedness” means, unless otherwise determined with respect to any series of
Securities pursuant to Section 301:

     (i) the principal of, and premium, if any, and interest on money borrowed or
purchased by the Company;

     (ii) the principal of, and premium, if any, and interest on money borrowed or
purchased by another Person and guaranteed by the Company;

     (iii) any deferred obligation for the payment of the purchase price of property
or assets evidenced by a note or similar agreement; and

     (iv) any obligation arising from direct credit substitutes,

in each case, whether outstanding on the date of execution of this Indenture or thereafter created,
assumed or incurred after that date.

     Senior Indebtedness excludes any indebtedness that:

     (a) expressly states that it is junior to, or ranks equally in right of payment
with, the Securities; or

     (b) is identified as junior to, or equal in right of payment with, the
Securities in any Board Resolution or in any supplemental indenture.

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

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

     “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors, whether at
all times or only so long as no senior class of stock has such voting power by reason of any
contingency.

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     “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture,
provided, however, that in the event the TIA is amended after such date, “TIA”
means, to the extent required by any such amendment, the TIA as so amended.

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

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

     “Voting Stock,” with respect to any Person, means stock (or the equivalent thereof) of any
class or classes, however designated, having general voting power for the election of a majority of
the members of the board of directors, managers or trustees of such Person, other than stock (or
the equivalent thereof) having such power only by reason of the happening of a contingency, whether
or not such contingency has happened.

Section 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the TIA. Each such certificate or opinion shall be given in the
form of an Officers’ Certificate, if to be given by an officer of the Company, or an Opinion of
Counsel, if to be given by counsel, and shall comply with the requirements of the TIA and any other
requirements set forth in this Indenture.

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

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

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

     (3) a statement that, in the opinion of each such individual, he 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, in the opinion of each such individual, such condition or
covenant has been complied with.

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Section 103. Form of Documents Delivered to Trustee.

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

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer actually knows that the certificate or opinion or representations with respect to the
matters upon which his certificate or opinion is based are erroneous. Any such certificate or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the Company, unless such
counsel knows, or in the exercise of reasonable care (but without having made an investigation
specifically for the purpose of rendering such opinion) should know, that the certificate or
opinion or representations with respect to such matters are erroneous.

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

Section 104. Acts of Holders; Record Dates.

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

     Without limiting the generality of the foregoing, a Holder, including a Depositary that is a
Holder of a Global Security, may make, give or take, by a proxy, or proxies, duly appointed in
writing, any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted in this Indenture to be made, given or taken by Holders, and a
Depositary that is a Holder of a Global Security may provide its proxy or proxies to the beneficial
owners of interest in any such Global Security.

     (2) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized

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

     (3) Except as provided in the next paragraph, the Company may, in the circumstances permitted
by the TIA, set any day as the record date for the purpose of determining the Holders of Securities
of any series entitled to give or take any request, demand, authorization, direction, notice,
consent, waiver or other action, or to vote on any action, authorized or permitted to be given or
taken by Holders of Securities of such series. With regard to any record date set pursuant to this
paragraph, the Holders of Outstanding Securities of the relevant series on such record date (or
their duly appointed agents), and only such Persons, shall be entitled to give or take the relevant
action, whether or not such Holders remain Holders after such record date. With regard to any
action that may be given or taken hereunder only by Holders of a requisite principal amount of
Outstanding Securities of any series (or their duly appointed agents) and for which a record date
is set pursuant to this paragraph, the Company may, at its option, set an expiration date after
which no such action purported to be given or taken by any Holder shall be effective hereunder
unless given or taken on or prior to such expiration date by Holders of the requisite principal
amount of Outstanding Securities of such series on such record date (or their duly appointed
agents). On or prior to any expiration date set pursuant to this paragraph, the Company may, on one
or more occasions at its option, extend such date to any later date. Nothing in this paragraph
shall prevent any Holder (or any duly appointed agent thereof) from giving or taking, after any
expiration date, any action identical to, or, at any time, contrary to or different from any action
given or taken, or purported to have been given or taken, hereunder by a Holder on or prior to such
date, in which event the Company may set a record date in respect hereof pursuant to this
paragraph.

     Notwithstanding the foregoing, upon receipt by the Trustee, with respect to Securities of any
series, of (i) any Notice of Default pursuant to Section 501, (ii) any declaration of acceleration,
or any rescission and annulment of any such declaration pursuant to Section 502 or (iii) any
direction given pursuant to Section 512 (any such notice, declaration, rescission and annulment, or
direction being referred to herein as a “Direction”), a record date shall automatically and without
any other action by any Person be set for the purpose of determining the Holders of Outstanding
Securities of such series entitled to join in such Direction, which record date shall be the close
of business on the day the Trustee receives such Direction. The Holders of Outstanding Securities
of such series on such record date (or their duly appointed agents), and only such Persons, shall
be entitled to join in such Direction, whether or not such Holders remain Holders after such record
date; provided that, unless such Direction shall have become effective by virtue of Holders of the
requisite principal
amount of Outstanding Securities of such series on such record date (or their duly appointed
agents) having joined therein on or prior to the 90th day after such record date, such Direction
shall automatically and without any action by any Person be canceled and of no further effect.
Nothing in this paragraph shall prevent a Holder (or a duly appointed agent thereof) from giving,
before or after the expiration of such 90-day period, a Direction

9

 

contrary to or different from,
or, after the expiration or such period, identical to, a Direction that has been canceled pursuant
to the proviso to the preceding sentence, in which event a new record date in respect thereof shall
be set pursuant to this paragraph.

     Without limiting the foregoing, a Holder entitled hereunder to give or take any action
hereunder with regard to any particular Security may do so with regard to all or any part of the
principal amount of such Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any different part of such principal amount.

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

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

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

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

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

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

Section 106. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such

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notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

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

Section 107. Conflict with Trust Indenture Act of 1939.

     If any provision hereof limits, qualifies or conflicts with a provision of the TIA that is
required under the TIA to be a part of and govern this Indenture, the TIA shall control. If any
provision of this Indenture modifies or excludes any provision of the TIA that may be so modified
or excluded, the TIA shall be deemed to apply to this Indenture as so modified or to be excluded,
as the case may be.

Section 108. Effect of Headings and Table of Contents.

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

Section 109. Successors and Assigns.

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

Section 110. Separability Clause.

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

Section 111. Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, the holders of Senior Indebtedness,
the Holders and, subject to Section 907, Entitled Persons in respect of Other Financial
Obligations, any benefit or any legal or equitable right, remedy or claim under this Indenture.

Section 112. Governing Law.

     This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York, and for all purposes shall be governed by and construed in
accordance with the laws of said State without regard to the conflicts of law rules of said State.

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Section 113. Legal Holidays.

     Unless otherwise specified pursuant to Section 301 or in any Security, in any case where any
Interest Payment Date, Redemption Date or Stated Maturity of any Security of any series shall not
be a Business Day at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities (other than a provision of the Securities of any series which
specifically states that such provision shall apply in lieu of this Section)) payment of interest
or principal (and premium, if any) need not be made at such Place of Payment on such date, but may
be made on the next succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date, Redemption Date or at the Stated Maturity, and no interest
shall accrue on the amount so payable for the period from and after such Interest Payment Date,
Redemption Date or Stated Maturity, as the case may be, to such Business Day if such payment is
made or duly provided for on such Business Day.

Section 114. No Security Interest Created.

     Nothing in this Indenture or in the Securities, express or implied, shall be construed to
constitute a security interest or mortgage or other pledge of collateral under the Uniform
Commercial Code or similar legislation or real property laws, as now or hereafter enacted and in
effect in any jurisdiction where property of the Company or its Subsidiaries is or may be located.

Section 115. Liability Solely Corporate.

     No recourse shall be had for the payment of the principal of (or premium, if any) or the
interest on any Securities, or any part thereof, or of the indebtedness represented thereby, or
upon any obligation, covenant or agreement of this Indenture, against any incorporator, or against
any stockholder, officer or director, as such, past, present or future, of the Company (or any
incorporator, stockholder, officer or director of any predecessor or successor corporation), either
directly or through the Company (or any such predecessor or successor corporation), whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly agreed and understood that this
Indenture and all the Securities are solely corporate obligations, and that no personal
liability whatsoever shall attach to, or be incurred by, any such incorporator, stockholder,
officer or director, past, present or future, of the Company (or any incorporator, stockholder,
officer or director of any such predecessor or successor corporation), either directly or
indirectly through the Company or any such predecessor or successor corporation, because of the
indebtedness hereby authorized or under or by reason of any of the obligations, covenants, promises
or agreements contained in this Indenture or in any of the Securities or to be implied herefrom or
therefrom; and that any such personal liability is hereby expressly waived and released as a
condition of, and as part of the consideration for, the execution of this Indenture and the issue
of Securities; provided, however, that nothing herein or in the Securities
contained shall be taken to prevent recourse to and the enforcement of the liability, if any, of
any stockholder or subscriber to capital stock upon or in respect of the shares of capital stock
not fully paid.

12

 

Section 116. Appointment of Agent for Service.

     The Company hereby appoints the General Counsel at the office of Santander Central Hispano
located in The City of New York as the Company’s authorized agent (the “Authorized Agent”) upon
whom service of process may be served in any action arising out of or based on the Securities or
this Indenture (including any action based on or arising out of the United States federal
securities laws) that may be instituted in New York State or United States Federal Courts sitting
in The City of New York by the Trustee or the Holder of any Security, and the Company hereby
expressly accepts the jurisdiction of any such court in respect of any such action. Such
appointment shall be irrevocable unless and until the appointment of a successor authorized agent
for service of process, and such successor’s acceptance of such appointment, shall have occurred,
and the Company and such Authorized Agent will take any and all actions, including the filing of
any and all documents and instruments, that may be necessary to continue such appointment or
appointments in full force and effect as aforesaid. Service of process upon an Authorized Agent
will be deemed, in every respect, effective service of process upon the Company. Notwithstanding
the foregoing, any action against the Company arising out of or based on any Security or this
Indenture may also be instituted by the Holder of such Security in any court in the Commonwealth,
and the Company hereby expressly accepts the jurisdiction of any such court in respect of any such
action.

ARTICLE TWO

Security Forms

Section 201. Forms Generally.

     The Securities of each series shall be in substantially the form (including global form) set
forth in this Article, or in such other form as shall be established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification or designation and
such legends or endorsements placed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Indenture, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any securities
exchange on which any series of the Securities may be listed, or of the Depositary thereof, or as
may, consistently herewith, be determined by the officers executing such Securities, as evidenced
by their execution thereof. If the form of Securities of any series is established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified
by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior
to the delivery of the Company Order contemplated by Section 303 for the authentication and
delivery of such Securities.

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

13

 

Section 202. Form of Face of Security.

     [Insert any legend required by the Internal Revenue Code, the Puerto Rico Internal Revenue
Code of 1994, and the regulations thereunder.]

     THIS SECURITY IS NOT A SAVINGS ACCOUNT, DEPOSIT OR OTHER OBLIGATION OF ANY BANK OR NONBANK
SUBSIDIARY OF THE COMPANY, THE BANK INSURANCE FUND OR ANY OTHER GOVERNMENTAL AGENCY.

SANTANDER BANCORP

 

			
	[CUSIP NO.]

No.                     
	 	$                    

     SANTANDER BANCORP, a corporation duly organized and existing under the laws of the
Commonwealth of Puerto Rico (herein called the “Company,” which term includes any successor Person
under the Indenture hereinafter referred to) for value received, hereby promises to pay to
___, or registered assigns, the principal sum of ___Dollars
on ___[if the Security is to bear interest prior to Maturity, insert —,
and to pay interest thereon from ___or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, ___on ___and
___in each year, commencing ___, at the rate of ___% per annum, until the
principal hereof is paid or made available for payment]. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the ___or ___(whether or not a Business Day) as the case may be, next preceding
such Interest Payment Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture

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

     Payment of the principal of (and premium, if any) and [if applicable, insert — any such]
interest on this Security will be made at the office or

14

 

agency of the Company maintained for that
purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private debts
[if applicable, insert —; provided, however, that at the option of the Company
payment of interest may be made by check mailed to the address of the Person entitled thereto as
such address shall appear in the Security Register or by wire transfer to an account designated by
such Person].

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

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

Dated:

	 	 	 	 	 
	 	 	SANTANDER BANCORP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Attest:

	 	 	 	 	 
	By:
	 	 	 	 
	 
	 	 	 	 
	Name:	 	 
	Title:	 	 

Section 203. Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
___, 20___(herein called the “Indenture”), between the Company and The Bank of New York
Trust Company, N.A., as Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee, holders of Senior Indebtedness and the Holders
of the Securities and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof, limited in aggregate
principal amount to $___.

     The indebtedness evidenced by this Security is, to the extent provided in the Indenture,
subordinate and subject in right of payment to the prior payment in full of all Senior Indebtedness
(as defined in the Indenture), and

15

 

this Security is issued subject to the provisions of the
Indenture with respect thereto. Each Holder of this Security, by accepting the same, agrees that
each holder of Senior Indebtedness, whether created or acquired before or after the issuance of the
Securities of this series, shall be deemed conclusively to have relied on such provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness. The Indenture
also provides that if, upon the occurrence of certain events of bankruptcy or insolvency relating
to the Company, there remains, after giving effect to such subordination provisions, any amount of
cash, property or securities available for payment or distribution in respect of Securities of this
series (as defined in the Indenture, “Excess Proceeds”), and if, at such time, any Entitled Person
(as defined in the Indenture) has not received payment in full of all amounts due or to become due
on or in respect of Other Financial Obligations (as defined in the Indenture), then such Excess
Proceeds shall first be applied to pay or provide for the payment in full of such Other Financial
Obligations before any payment or distribution may be made in respect of Securities of this series.

     This Security is also issued subject to the provisions of the Indenture regarding payments to
Entitled Persons in respect of Other Financial Obligations. Each Holder of this Security, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs
the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the
subordination of this Security and payment of Excess Proceeds as provided in the Indenture and (c)
appoints the Trustee his attorney-in-fact for any and all such purposes.

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 days’ notice by mail,[if applicable, insert — (1) on ___in any year
commencing with the year ___and ending with the year ___through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)
at any time [on or after ___], as a whole or in part, at the election of the Company,
at the following Redemption Prices (expressed as percentages of the principal amount): If redeemed
[on or before ___, ___%, and if redeemed during the 12-month period beginning ___of the years indicated,

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Redemption	 	 	 	 	 	 	Redemption	 
	Year	 	Price	 	 	Year	 	 	Price	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption [if applicable, insert — (whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture.]

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 days’ notice by mail, (1) on ___in

16

 

any year commencing with the year _______
and ending with the year through operation of the sinking fund for this series at the Redemption
Prices for redemption through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below, and (2) at any time [on or after ___________], as a
whole or in part, at the election of the Company, at the Redemption Prices for redemption otherwise
than through operation of the sinking fund (expressed as percentages of the principal amount) set
forth in the table below: If redeemed during the 12-month period beginning ________________ of the
years indicated,

	 	 	 	 	 	 	 	 	 
	 	 	Redemption Price	 	 	 	 
	 	 	For Redemption	 	 	Redemption Price For	 
	 	 	Through Operation	 	 	Redemption Otherwise Than	 
	 	 	of the	 	 	Through Operation	 
	Year	 	Sinking Fund	 	 	of the Sinking Fund	 
	 
	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.

     [Notwithstanding the foregoing, the Company may not, prior to ___, redeem any
Securities of this series as contemplated by [Clause (2) of] the preceding paragraph as a part of,
or in anticipation of, any refunding operation by the application, directly or indirectly, of
moneys borrowed having an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than ___% per annum.]

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

     [If the Security is subject to redemption, insert — In the event of redemption of this
Security in part only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

     [If the Security is not an Original Issue Discount Security, insert — If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]

17

 

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

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

18

 

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

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

Section 204. Form of Trustee’s Certificate of Authentication.

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

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

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

As Trustee
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Section 205. Additional Provisions Required in Global Security.

     Any Global Security authenticated and delivered hereunder shall bear a legend 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 Depositary or a nominee thereof. This Security may not be
transferred to, or registered or exchanged, in whole or in part, for Securities registered in the
name of, any Person other than the Depositary or a nominee thereof and no such transfer may be
registered, except in the limited circumstances described in the Indenture. Every Security
authenticated and delivered upon registration or transfer of, or in exchange for or in lieu of,
this Security shall be a Global Security subject to the foregoing, except in such limited
circumstances.”

ARTICLE THREE

The Securities

Section 301. Amount Unlimited; Issuable in Series.

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

19

 

     The Securities may be issued in one or more series. There shall be established, with respect
to the Securities of any series, in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers’ Certificate, or established in one
or more indentures supplemental hereto, prior to the issuance of Securities of such series,

     (1) the title of the Securities of the series (which shall distinguish the Securities
of the series from Securities of any other series of Securities), and CUSIP number(s), if
any;

     (2) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);

     (3) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;

     (4) the date or dates on which or periods during which the Securities of the series may
be issued, and the date or dates (or the method of determination thereof) on which the
principal of (and premium, if any, on) the Securities of such series are or may be payable
(which, if so provided in such Board Resolution or supplemental indenture, may be determined
by the Company from time to time and set forth in the Securities of the series issued from
time to time);

     (5) the rate or rates (or methods of determination thereof) at which the Securities of
the series shall bear interest, if any, the
date or dates from which such interest shall accrue, the Interest Payment Dates on
which any such interest shall be payable and the Regular Record Date for any such interest
payable on any Interest Payment Date and the basis upon which interest shall be calculated,
if other than in 360-day year of twelve 30-day months;

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

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

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

20

 

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

     (10) the currency, currencies or currency units in which payment of the principal of
and any premium and interest on any Securities of the series shall be payable if other than
the currency of the United States of America and the manner of determining the equivalent
thereof in the currency of the United States of America for purposes of the definition of
“Outstanding” in Section 101;

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

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

     (13) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

     (14) if and as applicable, that the Securities of the series shall be issuable in whole
or in part in the form of one or more Global Securities and, in such case, the Depositary or
Depositaries for such Global Security or Global Securities and any circumstances other than
those set forth in Section 305 in which any such Global Security may be transferred to,
and registered and exchanged for Securities registered in the name of, a Person other than
the Depositary for such Global Security or nominee thereof, and in which any such transfer
may be registered;

     (15) if other than as specified in Section 501, the Events of Default applicable with
respect to the Securities of the series;

     (16) the Events of Default set forth in Section 501 applicable with respect to the
Securities of the series, if fewer than all of the Events of Default set forth in Section
501;

     (17) if other than as specified in Section 502, the Events of Default the occurrence of
which would permit the declaration of the acceleration of Maturity pursuant to Section 502;

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

21

 

in this Indenture for the benefit of Securities of all series shall not be
for the benefit of Securities of such series, or any combination of such covenants,
warranties or provisions;

     (19) if other than as specified in Article Thirteen, the subordination provisions
applicable with respect to the Securities of the series, including a different definition of
the terms “Senior Indebtedness,” “Entitled Persons” or “Other Financial Obligations”; and

     (20) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 901(5)).

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto, pertaining to such
series of Securities. All Securities of any one series need not be issued at the same time and,
unless otherwise so provided by the Company, a series may be reopened for issuances of additional
Securities of such series.

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

Section 302. Denominations.

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

Section 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by any two of its Chairman of the
Board, its Vice Chairman of the Board, its President or one of its Vice Presidents, its Chief
Financial Officer or its Treasurer, under its corporate seal reproduced thereon attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the
Securities may be manual or facsimile.

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

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by

22

 

the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be provided with, and (subject to Section 601) shall be fully
protected in relying upon, an Opinion of Counsel stating,

	 	(a)	 	if the form of such Securities has been established by or pursuant to Board
Resolution as permitted by Section 201, that such form has been established in
conformity with the provisions of this Indenture;
	 
	 	(b)	 	if the terms of such Securities have been established by or pursuant to Board
Resolution as permitted by Section 301, that such terms have been established in
conformity with the provisions of this Indenture; and
	 
	 	(c)	 	that such Securities, when authenticated and delivered by the Trustee and
issued by the Company in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of the
Company enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles and, if applicable, to provisions of law which may require that a judgment
for money damages rendered by a court in the United States be expressed in United
States dollars.

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

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the authentication upon original issuance of the first Security of such series to be issued.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall
have been authenticated and delivered hereunder but never issued and sold by the Company, and the
Company shall

23

 

deliver such Security to the Trustee for cancellation as provided in Section 309, for
all purposes of this Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this Indenture.

Section 304. Temporary Securities.

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

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

Section 305. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company in a Place
of Payment being herein sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed
“Security Registrar” for the purpose of registering Securities and transfers of Securities as
herein provided.

     Upon surrender for registration of transfer of any Security of any series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and tenor and bearing a number not contemporaneously outstanding.

     At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of a like aggregate principal amount and
tenor, upon surrender of the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

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

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

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

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

     Notwithstanding the foregoing and except as otherwise specified or contemplated by Section
301, no Global Security shall be exchangeable pursuant to this Section 305 or Sections 304, 906
and 1107 for Securities registered in the name of, and no transfer of a Global Security of any
series
may be registered to, any Person other than the Depositary for such Security or its nominee unless
(1) such Depositary (A) notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Security or (B) ceases to be a clearing agency registered under the
Exchange Act and a successor Depositary is not appointed by the Company within 60 days of the date
the Company is so notified in writing, (2) the Company executes and delivers to the Trustee a
Company Order that such Global Security shall be so exchangeable and the transfer thereof so
registerable, or (3) there shall have occurred and be continuing an Event of Default, or an event
which with notice or lapse of time or both would become an Event of Default, with respect to the
Securities evidenced by such Global Security. Upon the occurrence in respect of any Global Security
of any series of any one or more of the conditions specified in clauses (1), (2) or (3) of the
preceding sentence or such other conditions as may be specified as contemplated by Section 301 for
such series, such Global Security may be exchanged for Securities registered in the names of, and
the transfer of such Global Security may be registered to, such Persons (including Persons other
than the Depositary with respect to such series and its nominees), as such Depositary shall direct.
Notwithstanding any other provision of this Indenture, any Security authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, any Global Security shall also
be a Global Security and shall bear the legend specified in Section 205 except for any Security
authenticated and delivered in exchange for, or upon registration of transfer of, a Global Security
pursuant to the preceding sentence.

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

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

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

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

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

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

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

Section 307. Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest. Unless otherwise specified as contemplated by Section 301 with respect to the
Securities of any series, payment of interest on such Securities shall be made at the Place or
Places of Payment specified pursuant to Section 301 or, at the option of the Company, by check
mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register or, if provided pursuant to Section 301, by wire transfer to an account designated by the
Holder.

     Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the

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Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder of Securities of such series at his or her address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed,
such Defaulted Interest shall be paid to the Persons in whose names the Securities of
such series (or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the
following clause (2).

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

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

Section 308. Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of and
any premium and (subject to Section 307) any interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and

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neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

Section 309. Cancellation.

     All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of by
the Trustee, subject to applicable law, in accordance to its customary practice and certification
of their disposal delivered to the Company upon its request therefor unless by a Company Order the
Company shall direct that the canceled Securities be returned to it.

Section 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

Section 311. CUSIP Numbers.

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

ARTICLE FOUR

Satisfaction and Discharge

Section 401. Satisfaction and Discharge of Indenture.

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

     (1) either

          (A) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or

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stolen and which have been replaced or paid as provided
in Section 306 and (ii) Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been delivered to the Trustee
for cancellation; or

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

     (i) have become due and payable, or

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

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

and the Company, in the case of (i), (ii) or (iii) above, has deposited or
caused to be deposited with the Trustee as trust funds in trust for the
purpose an amount sufficient to pay and discharge the entire indebtedness on
such Securities not theretofore delivered to the Trustee for cancellation,
for principal and any premium and interest to
the date of such deposit (in the case of Securities which have become due
and payable) or to the Stated Maturity or Redemption Date, as the case may
be;

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

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

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Trustee to any Authenticating
Agent under Section 612 and, if money shall have been deposited with the Trustee pursuant to
subclause (B) of clause (1) of this Section, the obligations of the Trustee under Section 402 and
the last paragraph of Section 1003 shall survive such satisfaction and discharge.

Section 402. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal and any premium and interest for whose payment
such money has been deposited with the Trustee.

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ARTICLE FIVE

Remedies

Section 501. Events of Default.

     “Event of Default,” wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
occasioned by the provisions of Article Thirteen or be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

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

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

     (3) any other Event of Default provided with respect to Securities of that series pursuant to
Section 301.

Section 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default specified in Sections 501(1) or 501(2) with respect to Securities of
any series at the time Outstanding occurs and is continuing, then in every such case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding Securities of that series
may declare the principal amount (or, if any of the Securities of that series are Original Issue
Discount Securities, such portion of the principal amount of

30

 

such Securities as may be specified in
the terms thereof) of all of the Securities of that series to be due and payable immediately, by a
notice in writing to the Company (and to the Trustee if given by Holders), and upon any such
declaration such principal amount (or specified amount) shall become immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of not less than a majority in
principal amount of the Outstanding Securities of that series, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if:

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

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

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

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

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

     (2) all Events of Default with respect to Securities of that series have been cured or
waived as provided in Section 513.

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

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

     The Company covenants that if:

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

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

     (3) default is made in the making or satisfaction of any sinking fund payment or
analogous obligation when the same becomes due pursuant to the terms of the Securities of
any series,

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

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

Section 504. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the TIA
in order to have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 607.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other
similar committee.

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

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

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Section 506. Application of Money Collected.

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

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

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

     THIRD: Subject to Article Thirteen, to the payment of the balance, if any, to the
Company.

Section 507. Limitation on Suits.

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

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

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

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

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

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

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

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Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such Holders.

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

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

Section 509. Restoration of Rights and Remedies.

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

Section 510. Rights and Remedies Cumulative.

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

Section 511. Delay or Omission Not Waiver.

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

Section 512. Control by Holders.

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

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

     (2) subject to the provisions of Section 601, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall, by a Responsible
Officer or Responsible Officers of the Trustee, determine that the proceeding so directed
would be unjustly prejudicial to the Holders of the Securities of such series not joining in
such direction, and

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

Section 513. Waiver of Past Defaults.

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

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

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

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

Section 514. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Holder pursuant to Section 508. This Section 514
shall be in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly excluded
from this Indenture, as permitted by the TIA.

Section 515. Waiver of Usury, Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law

35

 

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

ARTICLE SIX

The Trustee

Section 601. Certain Duties and Responsibilities.

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

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

     (b) in the absence of bad faith on its part, the Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or opinions
which by any provisions hereof are specifically required to be furnished to the Trustee,
the Trustee shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture (but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein).

     This Section 601(1) shall be in lieu of Section 315(a) of the TIA and such Section 315(a) is
hereby expressly excluded from this Indenture, as permitted by the TIA.

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

     (3) Subject to Section 603, no provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure to act, or its own
willful misconduct, except that:

     (a) this subsection (3) shall not be construed to limit the effect of subsection
(1) of this Section 601;

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

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

     Subparagraphs (3)(a), (b) and (c) shall be in lieu of Sections 315(d)(1), 315(d)(2) and
315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3) are hereby expressly
excluded from this Indenture, as permitted by the TIA.

     (4) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 601.

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

Section 602. Certain Rights of Trustee.

     Subject to the provisions of Section 601 and its duties and responsibilities under the TIA:

	 	(1)	 	the Trustee may conclusively rely and shall be fully protected
in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document (whether in original or facsimile form) believed by it to be genuine
and to have been signed or presented by the proper party or parties;
	 
	 	(2)	 	any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;
	 
	 	(3)	 	whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its
part, rely upon an Officers’ Certificate;
	 
	 	(4)	 	the Trustee may consult with counsel and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken,

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	 	 	 	suffered or omitted by it hereunder
in good faith and in reliance thereon;
	 
	 	(5)	 	the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders pursuant to this
Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity satisfactory to it against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction;
	 
	 	(6)	 	the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but
the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled
to examine the books, records and premises of the Company, personally or by
agent or attorney at the expense of the Company;
	 
	 	(7)	 	the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder;
	 
	 	(8)	 	the Trustee shall not be deemed to have notice of any Event of
Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default
is received by the Trustee at the Corporate Trust Office of the Trustee, and
such notice references the Securities and this Indenture;
	 
	 	(9)	 	The rights, privileges, protections, immunities and benefits
given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and to each agent, custodian and other Person
employed to act hereunder; and
	 
	 	(10)	 	The Trustee may request that the Company deliver an Officers’
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers’ Certificate may be signed by any person authorized to sign an
Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

Section 603. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any

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responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or application by the
Company of Securities or the proceeds thereof.

Section 604. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 610 and 611, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

Section 605. Money Held in Trust.

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

Section 606. Notice of Defaults.

     Within 90 days after the occurrence of any default hereunder with respect to Securities of any
series, the Trustee shall give notice to all Holders of Securities of such series of such default
hereunder known to the Trustee, unless such default shall have been cured or waived. Except in the
case of a default in the payment of the principal of and any premium or interest on any Security of
such series or in the payment of any sinking fund installment with respect to Securities of such
series, the Trustee shall be protected in withholding such notice if and so long as a committee of
Responsible Officers of the Trustee in good faith determines that the withholding of such notice is
in the interest of the Holders of Securities of such series. For the purpose of this Section, the
term “default” means any event which is, or after notice or lapse of time or both would become, an
Event of Default with respect to Securities of such series. The second sentence of this Section
606 shall be in lieu of the proviso to Section 315(b) of the TIA and such proviso is hereby
expressly excluded from this Indenture, as permitted by the TIA.

Section 607.Compensation and Reimbursement.

     The Company agrees:

	 	(1)	 	to pay to the Trustee from time to time such reasonable
compensation as the Company and the Trustee shall from time to time agree in
writing for all services rendered by it hereunder (which compensation shall not
be limited (to the extent permitted by law) by any provision of law in regard
to the compensation of a trustee of an express trust);
	 
	 	(2)	 	except as otherwise expressly provided herein, to reimburse the
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any provision of
this Indenture (including the reasonable compensation and the expenses,
advances and disbursements of its agents and counsel), except any such

39

 

	 	 	 	expense,
disbursement or advance as shall be determined to have been caused by its own
negligence or willful misconduct; and
	 
	 	(3)	 	to indemnify the Trustee for, and to hold it harmless against,
any loss, liability, claim, damage or expense incurred without negligence or
willful misconduct on its part, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including the
costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

     To secure the Company’s payment obligations in this Section 607, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the Trustee, except that
money or property held in trust for the payment of amounts due on particular Securities.

     The Company’s payment obligations pursuant to this Section 607 shall survive the discharge of
this Indenture and resignation or removal of the Trustee. When the Trustee incurs expenses after
the occurrence of an Event of Default specified in Section 501(1) or Section 501(2), the expenses,
including the reasonable fees and expenses of its counsel, are intended to constitute expenses of
administration under any bankruptcy or insolvency law.

Section 608. Replacement of Trustee.

     The Trustee may resign by so notifying the Company; provided, however, no such resignation
shall be effective until a successor Trustee has accepted its appointment pursuant to this Section
608. The Holders of a majority in aggregate principal amount of the Securities at the time
outstanding may remove the Trustee by so notifying the Trustee and the Company. The Company shall
remove the Trustee if:

	 	(1)	 	the Trustee fails to comply with Section 610;
	 
	 	(2)	 	the Trustee is adjudged bankrupt or insolvent;
	 
	 	(3)	 	a receiver or public officer takes charge of the Trustee or its
property; or
	 
	 	(4)	 	the Trustee otherwise becomes incapable of acting.

     In addition, the Company may remove the Trustee if the Company shall determine by a Board
Resolution that the services provided by the Trustee hereunder may be obtained at a substantially
lower cost to the Company.

     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.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company satisfactory in form and substance to the retiring Trustee and the
Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and
the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of

40

 

its succession to Holders. The retiring
Trustee shall upon payment of its charges hereunder promptly transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided for in Section 607.

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

     If the Trustee fails to comply with Section 610 any Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

Section 609. Merger, Conversion, Consolidation or Succession to Business.

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

Section 610. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States
of America, any State thereof, the Commonwealth or the District of Columbia, authorized under
such laws to exercise corporate trust powers, having a combined capital and surplus of at least
$50,000,000, subject to supervision or examination by Federal, State, Commonwealth or District of
Columbia authority and eligible to act as Trustee hereunder in compliance with Section 310(a)(1) of
the TIA. If such corporation publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published.
Neither the Company nor any person directly or indirectly controlling, controlled by, or under
common control with the Company shall serve as Trustee upon any Securities.

Section 611. Preferential Collection of Claims Against the Company.

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

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Section 612. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof, the Commonwealth or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal or State authority.
If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or
to the requirements of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of
this Section, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

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

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve, as their names
and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance
of its appointment hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions of this
Section.

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     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

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

	 	 	 	 	 	 	 	 	 
	 	 	 	,	 	 	 
	 	 	As Trustee	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	  As Authenticating Agent	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	  Authorized Officer	 	 	 	 

ARTICLE SEVEN

Holders’ Lists and Reports by Trustee and Company

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

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

	 	(1)	 	semi annually, not later than June 30 and December 30 in each
year, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders as of the preceding June 15 or December 15, as the
case may be, and
	 
	 	(2)	 	at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the time
such list is furnished;

provided, however, that if and so long as the Trustee shall be the Security
Registrar for such series, no such list need be furnished.

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Section 702. Preservation of Information; Communications to Holders.

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

          (2) The rights of the Holders to communicate with other Holders with respect to their rights
under this Indenture or under the Securities, and the corresponding rights and privileges of the
Trustee, shall be as provided by the TIA.

          (3) Each and every Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them
shall be held accountable by reason of any disclosure of information as to names and addresses of
Holders made pursuant to the TIA.

Section 703. Reports by Trustee.

     (1) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the TIA at the times and in the manner provided
pursuant thereto.

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

Section 704. Reports by Company.

          The Company shall file with the Trustee, within 15 days after the Company is required to file
the same with the Commission, copies of its annual report and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may by rules
and regulations prescribe) which the Company is required to file with the Commission pursuant to
Section 13 or 15(d) of the Exchange Act; or, if the Company is not required to file information,
documents or reports pursuant to either of said Sections, then it will file with the Trustee and
the Commission, in accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered
on a national securities exchange as may be required from time to time in such rules and
regulations. The Company shall also comply with the other provisions of TIA Section 314(a).

          Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

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ARTICLE EIGHT

Consolidation, Merger, Conveyance, Transfer or Lease

Section 801. Company May Consolidate, Etc., Only on Certain Terms.

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

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

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

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

Section 802. Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the “Company” herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved from all
obligations and covenants under this Indenture and the Securities.

ARTICLE NINE

Supplemental Indentures

Section 901. Supplemental Indentures Without Consent of Holders.

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

45

 

     (1) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants, agreements and obligations of the Company herein and in
the Securities; or

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

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

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

     (5) to add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities, provided that any such addition, change or elimination
(i) shall neither (A) apply to any Security of any series created prior to the execution of
such supplemental indenture and entitled to the benefit of such provision nor (B) modify the
rights of the Holder of any such Security with respect to such provision or (ii) shall
become effective only when there is no such Security Outstanding; or

     (6) to secure the Securities; or

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

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

     (9) subject to Section 907, to add to, change or eliminate any of the provisions of
Article Thirteen in respect of any series of Securities, including Outstanding Securities,
provided that any such action pursuant to this clause (9) shall not adversely affect the
interests of the Holders of Securities of any series in any material respect; or

     (10) to cure any ambiguity, omission, defect or inconsistency herein, to correct or
supplement any provision herein or in any supplemental indenture which may be defective or
inconsistent with any other provision herein or in any supplemental indenture, or to make
any other provisions with respect to matters or questions arising under this Indenture,
provided that such action shall not adversely affect

46

 

the interests of the Holders of
Securities of any series in any material respect; or

     (11) to add to or change or eliminate any provision of this Indenture as shall be
necessary or desirable in accordance with any amendments to the TIA, provided such action
shall not adversely affect the interest of Holders of Securities of any series; or

     (12) to comply with any requirement of the Commission in connection with the
qualification of the Indenture under the TIA.

Section 902. Supplemental Indentures With Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may at any time and from time to time enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture
or of modifying in any manner the rights of the Holders of Securities of such series under this
Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby,

     (1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any
Place of Payment where, or the coin or currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on
or after the Redemption Date) or modify the provisions of the Indenture with respect to the
subordination of the Securities of any series in a manner adverse to the Holders of the
Securities, or

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

     (3) modify any of the provisions of this Section, Section 513 or Section 1006, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, or

     (4) modify any of the provisions of this Indenture relating to the subordination of the
Securities in a manner adverse to the holders.

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

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

Section 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be provided with, and (subject to Section 601) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Trustee may, but shall not
be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

Section 904. Effect of Supplemental Indentures.

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

Section 905. Conformity with Trust Indenture Act of 1939.

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

Section 906. Reference in Securities to Supplemental Indentures.

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

Section 907. Subordination Unimpaired.

     No provision in any supplemental indenture that affects the superior position of the holders
of Senior Indebtedness shall be effective against any holder of Senior Indebtedness unless such
holder shall have consented thereto. Notwithstanding any provisions in this Indenture or otherwise,
the rights of Entitled Persons in respect of Other Financial Obligations under this Indenture and
otherwise in respect of the Securities or any series of the Securities may, at any time and from
time to time, be modified in any

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respect or eliminated without the consent of any Entitled Person
in respect of Other Financial Obligations.

ARTICLE TEN

Covenants

Section 1001. Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay or caused to be paid the principal of and any premium and interest on the
Securities of that series in accordance with the terms of the Securities and this Indenture.

Section 1002. Maintenance of Office or Agency.

     The Company will maintain or cause to be maintained in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented or surrendered for
payment, where Securities of that series may be surrendered for registration of transfer, exchange
or redemption and where notices and demands to or upon the Company in respect of the Securities of
that series and this Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time
the Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee, or such other agent as is specified pursuant to Section 301, as its agent to receive all
such presentations, surrenders, notices and demands.

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

Section 1003. Money for Securities Payments to Be Held in Trust.

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

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, on or prior to each due date of the principal of or any premium or interest on any Securities
of that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be
held in trust for the benefit of the Persons entitled to such amounts, and (unless

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such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to
act.

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

	 	(1)	 	hold all sums held by it for the payment of principal of or any
premium or interest on any Securities of that series (whether such sums have
been paid to it by the Company or by
any other obligor on the Securities) in trust for the benefit of the Persons
entitled thereto;
	 
	 	(2)	 	give the Trustee notice of any default by the Company (or any
other obligor upon the Securities of such series) in the making of any payment
of principal or any premium or interest on the Securities of such series; and
	 
	 	(3)	 	at any time during the continuance of any such default, upon
the written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent.

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

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

Section 1004. Officers’ Certificate as to Default.

     The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’

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Certificate, stating whether or not to the
best knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge.

Section 1005. Corporate Existence.

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

Section 1006. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Section 1005 (and, if so specified pursuant to Section 301, any other
covenant not set forth herein and specified pursuant to Section 301 to be applicable to the
Securities of any series, except as otherwise provided pursuant to Section 301), with respect to
the Securities of any series if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series shall, by Act of such
Holders, either waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company and the duties of the Trustee in respect of any such term, provision
or condition shall remain in full force and effect.

Section 1007. Calculation of Original Issue Discount.

     The Company shall file with the Trustee promptly after the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including daily rates and accrual
periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific
information relating to such original issue discount as may then be relevant under the Internal
Revenue Code of 1986, as amended from time to time.

ARTICLE ELEVEN

Redemption of Securities

Section 1101. Applicability of Article.

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

Section 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by or pursuant to a
Board Resolution. In case of any redemption at the

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

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

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

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

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed. If the Company shall so direct, Securities registered in the name of the
Company, any Affiliate or any Subsidiary of the Company, shall not be included in the Securities
selected for redemption.

Section 1104. Notice of Redemption.

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

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price,

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

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

     (5) the Place or Places of Payment where such Securities are to be surrendered for
payment of the Redemption Price,

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

     (7) the CUSIP number, if any.

     Notice of Redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request upon not less than 5 days advance notice, by the
Trustee in the name and at the expense of the Company.

Section 1105. Deposit of Redemption Price.

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

Section 1106. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, Securities so to be redeemed shall, on
the Redemption Date, become due and payable at the Redemption Price therein specified, and from and
after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date; provided,
however, that, unless otherwise specified as contemplated by Section 301, installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered as such at the close
of business on the relevant Record Dates according to their terms and the provisions of Section
307.

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

Section 1107. Securities Redeemed in Part.

     Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so

53

 

requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new
Security or Securities of the same series and of like tenor, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered.

ARTICLE TWELVE

Sinking Funds

Section 1201. Applicability of Article.

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

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

Section 1202. Satisfaction of Sinking Fund Payments with Securities.

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

Section 1203. Redemption of Securities for Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any series of Securities
(unless a shorter period shall be satisfactory to the Trustee), the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for
that
series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied
by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 1202 and will also deliver to the Trustee
any Securities to be so delivered. Such Officers’ Certificate shall be irrevocable and upon its
delivery the Company shall be obligated to make the

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cash payment or payments therein referred to,
if any, on or before the succeeding sinking fund payment date. In the case of the failure of the
Company to deliver such Officers’ Certificate (or, as required by this Indenture and the
Securities, specified in such Officers’ Certificate), the sinking fund payment due on the
succeeding sinking fund payment date for such series shall be paid entirely in cash and shall be
sufficient to redeem the principal amount of the Securities of such series subject to a mandatory
sinking fund payment without the right to deliver or credit Securities as provided in Section 1202
and without the right to make the optional sinking fund payment with respect to such series at such
time.

     Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused
balance of any preceding sinking fund payments made with respect to the Securities of any
particular series shall be applied by the Trustee (or by the Company if the Company is acting as
its own Paying Agent) on the sinking fund payment date on which such payment is made (or, if such
payment is made before a sinking fund payment date, on the sinking fund payment date immediately
following the date of such payment) to the redemption of Securities of such series at the
Redemption Price specified in such Securities with respect to the sinking fund. Any sinking fund
moneys not so applied or allocated by the Trustee (or, if the Company is acting as its own Paying,
Agent, segregated and held in trust by the Company as provided in Section 1003) for such series and
together with such payment (or such amount so segregated) shall be applied in accordance with the
provisions of this Section. Any and all sinking fund moneys with respect to the Securities of any
particular series held by the Trustee (or if the Company is acting as its own Paying Agent,
segregated and held in trust as provided in Section 1003) on the last sinking fund payment date
with respect to Securities of such series and not held for the payment or redemption of particular
Securities of such series shall be applied by the Trustee (or by the Company if the Company is
acting as its own Paying Agent), together with other moneys, if necessary, to be deposited (or
segregated) sufficient for the purpose, to the payment of the principal of the Securities of such
series at Maturity.

     The Trustee shall select or cause to be selected the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Section 1106.

     On or before each sinking fund payment date, the Company shall pay to the Trustee (or, if the
Company is acting as its own Paying Agent, the Company shall segregate and hold in trust as
provided in Section 1003) in cash a sum in the currency in which Securities of such series are
payable (except as provided pursuant to Section 301) equal to the principal and any interest
accrued to the Redemption Date for Securities or portions thereof to be redeemed on such sinking
fund payment date pursuant to this Section.

     Neither the Trustee nor the Company shall redeem any Securities of a series with sinking fund
moneys or mail any notice of redemption of
Securities of such series by operation of the sinking fund for such series during the
continuance of a default in payment of interest, if any, on any Securities of such series or of any
Event of Default (other than an Event of Default occurring as a consequence of this paragraph) with
respect to the Securities of such series, except that if the notice of redemption shall have been
provided in accordance with the provisions hereof, the Trustee (or the

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Company, if the Company is
then acting as its own Paying Agent) shall redeem such Securities if cash sufficient for that
purpose shall be deposited with the Trustee (or segregated by the Company) for that purpose in
accordance with the terms of this Article Twelve. Except as aforesaid, any moneys in the sinking
fund for such series at the time when any such default or Event of Default shall occur and any
moneys thereafter paid into such sinking fund shall, during the continuance of such default or
Event of Default, be held as security for the payment of the Securities of such series;
provided, however, that in case such default or Event of Default shall have been
cured or waived herein, such moneys shall thereafter be applied on the next sinking fund payment
date for the Securities of such series on which such moneys may be applied pursuant to the
provisions of this Section.

ARTICLE THIRTEEN

Subordination of Securities

Section 1301. Securities Subordinate to Senior Indebtedness.

     The Company covenants and agrees, and each Holder of a Security of any series, by his
acceptance thereof, likewise covenants and agrees, that, to the extent and in the manner
hereinafter set forth in this Article, the indebtedness represented by the Securities of such
series and the payment of the principal of (and premium, if any) and interest on each of all of the
Securities of such series are hereby expressly made subordinate and subject in right of payment to
the prior payment in full of all Senior Indebtedness.

Section 1302. Payment Over of Proceeds Upon Dissolution, Etc.

     In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to the Company or to its creditors, as such, or to its assets, or (b) any liquidation, dissolution
or other winding up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of the Company, then and in any such event the holders of
Senior Indebtedness shall be entitled to receive payment in full of all amounts due or to become
due on or in respect of all Senior Indebtedness, or provision shall be made for such payment in
money or money’s worth, before the Holders of the Securities of any series are entitled to receive
any payment on account of principal of (or premium, if any) or interest on the Securities of such
series, and to that end the holders of Senior Indebtedness shall be entitled to receive, for
application to the payment hereof, any payment or distribution of any kind or character, whether in
cash, property or securities, which may be payable or deliverable in respect of the Securities of
any series in any such case, proceeding, dissolution, liquidation or other winding up or event.

     In the event that, notwithstanding the foregoing provisions of this Section, the Trustee or
the Holder of any Security of any series shall have received any payment or distribution of assets
of the Company of any kind or character, whether in cash, property or securities, before all Senior
Indebtedness is paid in full or payment thereof provided for, and if such fact shall, at or prior
to the time of such payment or distribution have been made known to the Trustee or, as the case may
be, such Holder, then and in such event such payment or distribution shall be paid over or
delivered

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forthwith to the trustee in bankruptcy, receiver, liquidating trustee, custodian,
assignee, agent or other Person making payment or distribution of assets of the Company for
application to the payment of all Senior Indebtedness remaining unpaid, to the extent necessary to
pay all Senior Indebtedness in full, after giving effect to any concurrent payment or distribution
to or for the holders of Senior Indebtedness.

     For purposes of this Article only, the words “cash, property or securities” shall not be
deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment which are
subordinated in right of payment to all Senior Indebtedness which may at the time be outstanding to
the same extent as, or to a greater extent than, the Securities are so subordinated as provided in
this Article. The consolidation of the Company with, or the merger of the Company into, another
Person or the liquidation or dissolution of the Company following the sale, conveyance, transfer or
lease of its properties and assets substantially as an entirety to another Person upon the terms
and conditions set forth in Article Eight shall not be deemed a dissolution, winding up,
liquidation, reorganization, assignment for the benefit of creditors or marshalling of assets and
liabilities of the Company for the purposes of this Section if the Person formed by such
consolidation or into which the Company is merged or the Person which acquires by sale, conveyance,
transfer or lease such properties and assets substantially as an entirety, as the case may be,
shall, as a part of such sale, consolidation, merger, conveyance, transfer or lease, comply with
the conditions set forth in Article Eight.

Section 1303. Prior Payment to Senior Indebtedness Upon Acceleration of Securities.

     In the event that any Securities of any series are declared due and payable before their
Stated Maturity, then and in such event the holders of Senior Indebtedness shall be entitled to
receive payment in full of all amounts due or to become due on or in respect of all Senior
Indebtedness, or provision shall be made for such payment in cash, before the Holders of the
Securities of such series are entitled to receive any payment of the principal of, premium, if any,
or interest on the Securities of such series or on account of the purchase or other acquisition of
Securities of such series; provided, however, that if, as specified as contemplated
by Section 301, Article Twelve is applicable to any series of Securities, nothing in this Section
shall prevent the satisfaction of any sinking fund payment in accordance with Article Twelve by
delivering and crediting pursuant to Section 1202 Securities of such series which have been
acquired (upon redemption or otherwise) prior to such declaration of acceleration.

     In the event that, notwithstanding the foregoing, the Company shall make any payment to the
Trustee or the Holder of any Security of any series prohibited by the foregoing provisions of this
Section, and if such fact shall, at or prior to the time of such payment, have been made known to
the Trustee or, as the case may be, such Holder, then and in such event such payment shall be paid
over and delivered forthwith to the Company.

     The provisions of this Section shall not apply to any payment with respect to which Section
1302 would be applicable.

Section 1304. No Payment When Senior Indebtedness Default.

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          (a) No payment by the Company on account of principal or premium (if any), sinking funds or
interest on the Securities shall be made unless full payment of amounts then due for principal,
premium (if any), sinking funds, and interest on Senior Indebtedness has been made or duly provided
for. In the event and during the continuation of any default in the payment of principal of (or
premium, if any) or interest on any Senior Indebtedness beyond any applicable grace period with
respect thereto, or in the event that any event of default with respect to any Senior Indebtedness
shall have occurred and be continuing permitting the holders of such Senior Indebtedness (or a
trustee on behalf of the holders thereof) to declare such Senior Indebtedness due and payable prior
to the date on which it would otherwise have become due and payable, unless and until such default
or event of default shall have been cured or waived or shall have ceased to exist and such
acceleration shall have been rescinded or annulled, or (b) in the event any judicial proceeding
shall be pending with respect to any such default in payment, or event of default, then no payment
shall be made by the Company on account of principal of (or premium, if any) or interest on the
Securities of any series or on account of the purchase or other acquisition of Securities of any
series; provided, however, that nothing in this Section shall prevent the
satisfaction of any sinking fund payment in accordance with Article Twelve by delivering and
crediting pursuant to Section 1202 Securities of such series which have been acquired (upon
redemption or otherwise) prior to such default in payment or event of default.

     In the event that, notwithstanding the foregoing, the Company shall make any payment to the
Trustee or the Holder of any Security of any series prohibited by the foregoing provisions of this
Section, and if such fact shall, at or prior to the time of such payment, have been made known to
the Trustee or, as the case may be, such Holder, then and in such event such payment shall be paid
over and delivered forthwith to the Company.

     The provisions of this Section shall not apply to any payment with respect to which Section
1302 would be applicable.

Section 1305. Payment Permitted if No Default.

     Nothing contained in this Article or elsewhere in this Indenture or in any of the Securities
of any series shall prevent (a) the Company, at any time except during the pendency of any case,
proceeding, dissolution, liquidation or other winding up, assignment for the benefit of creditors
or other marshalling of assets and liabilities of the Company referred to in Section 1302 or under
the conditions described in Section 1303 or 1304, from making payments at any time of principal of
(and premium, if any) or interest on the Securities of any series, or (b) the application by the
Trustee of any money deposited with it hereunder to the payment of or on account of the principal
of (and premium, if any) or interest on the Securities of any series or the retention of such
payment by the Holder, unless the Trustee shall have received written notice of any event
prohibiting such application or the making of such payment more than two Business Days prior to the
date fixed for such payment.

Section 1306. Subrogation to Rights of Holders of Senior Indebtedness.

     Subject to the payment in full of all Senior Indebtedness, the Holders of the Securities of a
series shall be subrogated (equally and ratably with the holders of all indebtedness of the Company
which by its express terms is subordinated to indebtedness of the Company to substantially the same
extent

58

 

as the Securities of such service are subordinated and is entitled to like rights of
subrogation) to the extent of the payments or distributions made to the holders of such Senior
Indebtedness pursuant to the provisions of this Article to the rights of the holders of such Senior
Indebtedness to receive payments and distributions of cash, property and securities applicable to
the Senior Indebtedness until the principal of (and premium, if any) and interest on the Securities
of such series shall be paid in full. For purposes of such subrogation, no payments or
distributions to the holders of the Senior Indebtedness of any cash, property or securities to
which the Holders of the Securities of a series or the Trustee would be entitled except for the
provisions of this Article, and no payments over pursuant to the provisions of this Article to the
holders of Senior Indebtedness by Holders of the Securities of a series or the Trustee, shall, as
among the Company, its creditors other than holders of Senior Indebtedness and the Holders of the
Securities of such series, be deemed to be a payment or distribution by the Company to or on
account of the Senior Indebtedness.

Section 1307. Provisions Solely to Define Relative Rights.

     The provisions of this Article are and are intended solely for the purpose of defining the
relative rights of the Holders of the Securities of a series on the one hand and the holders of
Senior Indebtedness (and, in the case of Section 1315, Entitled Persons in respect of Other
Financial Obligations) on the other hand. Nothing contained in this Article or elsewhere in this
Indenture or in the Securities of any series is intended to or shall (a) impair, as among the
Company, its creditors other than holders of Senior Indebtedness and the Holders of the Securities
of any series, the obligation of the Company, which is absolute and unconditional (and which,
subject to the rights under this Article of the holders of Senior Indebtedness and the rights under
Section 1315 of Entitled Persons in respect of Other Financial Obligations, is intended to rank
equally with all other obligations of the Company), to pay to the Holders of the Securities of a
series the principal of (and premium, if any) and interest on the Securities of such series as and
when the same shall become due and payable in accordance with their terms; or (b) affect the
relative rights against the Company of the Holders of the Securities of a series and creditors of
the Company other than the holders of Senior Indebtedness; or (c) prevent the Trustee or the Holder
of any Security of any series from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this Article of the holders
of Senior Indebtedness, and under Section 1315 of Entitled Persons in respect of Other Financial
Obligations, to receive cash, property and securities otherwise payable or deliverable to the
Trustee or such Holder.

Section 1308. Authorization of Holders to Trustee to Effect Subordination.

     Each holder of a Security of any series by his acceptance thereof authorizes and directs the
Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the
subordination and payment provisions provided in this Article and appoints the Trustee his
attorney-in-fact for any and all such purposes.

Section 1309. No Waiver of Subordination Provisions.

     No right of any present or future holder of any Senior Indebtedness to enforce subordination
as herein provided shall at any time in any way be

59

 

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 non-compliance by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof any such holder may have or be otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Securities of any series, without incurring responsibility to the
Holders of the Securities of any series and without impairing or releasing the subordination
provided in this Article or the obligations hereunder of the Holders of the Securities to the
holders of Senior Indebtedness, do any one or more of the following: (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, Senior Indebtedness, or
otherwise amend or supplement in any manner Senior Indebtedness or any instrument evidencing the
same or any agreement under which Senior
Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing Senior Indebtedness; (iii) release any Person liable in
any manner for the collection of Senior Indebtedness; and (iv) exercise or refrain from exercising
any rights against the Company and any other Person.

Section 1310. Notices to Trustee.

     The Company shall give prompt written notice to the Trustee of any fact known to the Company
which would prohibit the making of any payment or distribution to or by the Trustee in respect of
the Securities of any series pursuant to this Article. Failure to give such notice shall not affect
the subordination of the Securities to Senior Indebtedness. Notwithstanding the provisions of this
Article or any other provision of this Indenture, the Trustee shall not be charged with knowledge
of the existence of any facts which would prohibit the making of any payment or distribution to or
by the Trustee in respect of the Securities of a series, unless and until the Trustee shall have
received written notice thereof from the Company or a holder of Senior Indebtedness or from any
trustee therefor or from any Entitled Person in respect of Other Financial Obligations, together
with proof satisfactory to the Trustee of such holding of Senior Indebtedness or Other Financial
Obligations or of the authority of such trustee; and, prior to the receipt of any such written
notice, the Trustee, subject to the provisions of Section 601, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall not
have received the notice provided for in this Section at least two Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose (including, without
limitation, the payment of the principal (and premium, if any) or interest on any Security), then,
anything herein contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be received by it within
two Business Days prior to such date.

     Subject to the provisions of Section 601, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a holder of Senior
Indebtedness (or a trustee

60

 

therefor) or an Entitled Person in respect of Other Financial
Obligations to establish that such notice has been given by a holder of Senior Indebtedness (or a
trustee therefor) or an Entitled Person in respect of Other Financial Obligations. 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 or an Entitled Person in respect of Other
Financial Obligations to participate in any payment or distribution pursuant to this Article, the
Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Indebtedness or Other Financial Obligations held by such Person, the
extent to which such Person is entitled to participate in such payment or distribution and any
other facts pertinent to the rights of such Person under this Article, and if such evidence is not
furnished, the Trustee may defer any payment or distribution to such Person pending judicial
determination as to the right of such Person to receive such payment or distribution.

Section 1311. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of Section 601, and the Holders of the Securities of any series
shall be entitled to rely upon any order or decree entered by any court of competent jurisdiction
in which such insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
winding up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee for the benefit of creditors, agent or other
Person making such payment or distribution, delivered to the Trustee or to the Holders of
Securities of such series, for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of the Senior Indebtedness and other indebtedness of the
Company and the Entitled Persons in respect of Other Financial Obligations, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article.

Section 1312. Trustee Not Fiduciary for Holders of Senior Indebtedness or Entitled Persons.

     The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness or Entitled Persons in respect of Other Financial Obligations and shall not be liable
to any such holders or Entitled Persons if it shall in good faith mistakenly pay over or distribute
to Holders of Securities of any series or to the Company or to any other Person cash, property or
securities to which any holders of Senior Indebtedness or Entitled Persons in respect of Other
Financial Obligations shall be entitled by virtue of this Article or otherwise.

Section 1313. Rights of Trustee as Holder of Senior Indebtedness or Entitled Person; Preservation
of Trustee’s Rights.

     Subject to the provisions of Section 611, the Trustee in its individual capacity shall be
entitled to all the rights set forth in this Article with respect to any Senior Indebtedness which
may at any time be held by it and with respect to any Other Financial Obligations owed to the
Trustee as an Entitled Person, to the same extent as any other holder of Senior Indebtedness or
Entitled Person in respect of Other Financial Obligations, as the case may be, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder or Entitled Person.

61

 

     Nothing in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 607.

Section 1314. Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named
in this Article in addition to or in place of the Trustee; provided, however, that
Section 1313 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate
acts as Paying Agent.

Section 1315. Payment of Proceeds in Certain Cases.

          (a) If, after giving effect to the provisions of Section 1302 and Section 1306, any amount of
cash, property or securities shall be available for payment or distribution in respect of the
Securities (“Excess Proceeds”) and any Entitled Persons in respect of Other Financial Obligations
shall not have received payment in full of all amounts due or to become due on or in respect of
such Other Financial Obligations (and provision shall not have been made for such payment in money
or money’s worth), then such Excess Proceeds shall first be applied (ratably with any amount of
cash, property or securities available for payment or distribution in respect of any other
indebtedness of the Company that by its express terms provides for the payment over of amounts
corresponding to Excess Proceeds to Entitled Persons in respect of Other Financial Obligations) to
pay or provide for the payment of the Other Financial Obligations remaining unpaid, to the extent
necessary to pay all Other Financial Obligations in full, after giving effect to any concurrent
payment or distribution to or for Entitled Persons in respect of Other Financial Obligations. Any
Excess Proceeds remaining after the payment (or provision for payment) in full of all Other
Financial Obligations shall be available for payment or distribution in respect of the Securities.

          (b) In the event that, notwithstanding the foregoing provisions of subsection (a) of this
Section, the Trustee or Holder of any Security shall have received any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or securities, before all
Other Financial Obligations are paid in full or payment thereof duly provided for, and if such fact
shall, at or prior to the time of such payment or distribution have been made known to the Trustee
or, as the case may be, such Holder, then and in such event, subject to any obligation that the
Trustee or such Holder may have pursuant to Section 1302, upon written notice to the Trustee such
payment or distribution shall be paid over or delivered forthwith to the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee, agent or other Person making payment or
distribution of assets of the Company for payment in accordance with subsection (a).

          (c) Subject to the payment in full of all Other Financial Obligations, the Holders of the
Securities shall be subrogated (equally and ratably with the holders of all indebtedness of the
Company that by its express terms provides for the payment over of amounts corresponding to Excess
Proceeds to Entitled Persons in respect of Other Financial Obligations and is entitled to like
rights of subrogation) to the rights of the Entitled Persons in respect of Other Financial
Obligations to receive payments and distributions of cash, property and securities applicable to
the Other

62

 

Financial Obligations until the principal of and interest on the Securities shall be paid
in full. For purposes of such subrogation, no payments or distributions to Entitled Persons in
respect of Other Financial Obligations of any cash, property or securities to which Holders of the
Securities or the Trustee would be entitled except for the provisions of this Section, and no
payments over pursuant to the provisions of this Section to Entitled Persons in respect of Other
Financial Obligations by Holders of Securities or the Trustee, shall, as among the Company, its
creditors other than Entitled
Persons in respect of Other Financial Obligations and the Holders of Securities be deemed to
be a payment or distribution by the Company to or on account of the Other Financial Obligations.

          (d) The provisions of subsections (a), (b) and (c) of this Section 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 Entitled Persons in respect of Other Financial Obligations, on the other hand, after giving
effect to the rights of the holders of Senior Indebtedness, as provided in this Article. Nothing
contained in subsections (a), (b) and (c) of this Section is intended to or shall affect the
relative rights against the Company of the Holders of the Securities and (1) the holders of Senior
Indebtedness or (2) other creditors of the Company other than Entitled Persons in respect of Other
Financial Obligations.

Section 1316. Article Not to Prevent Events of Default.

     No provision of this Article shall prevent the occurrence of any Event of Default hereunder

 

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

[SIGNATURE PAGE FOLLOWS]

63

 

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

	 	 	 	 	 	 	 
	 	 	SANTANDER BANCORP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

64

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