Document:

EX-4.3

Exhibit 4.3

PEPSICO, INC.

and

THE BANK OF NEW YORK, as Trustee

Indenture

Dated as of May 21, 2007

Providing for Issuance of Debt Securities

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1
	 	 	 	 
	Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Officers’ Certificates and Opinions
	 	 	9	 
	Section 1.03. Form of Documents Delivered to Trustee
	 	 	9	 
	Section 1.04. Acts of Securityholders
	 	 	10	 
	Section 1.05. Notices, etc., to Trustee and Company
	 	 	11	 
	Section 1.06. Notice To Securityholders; Waiver
	 	 	12	 
	Section 1.07. Conflict with Trust Indenture Act
	 	 	12	 
	Section 1.08. Effect of Headings and Table of Contents
	 	 	12	 
	Section 1.09. Successors and Assigns
	 	 	12	 
	Section 1.10. Separability Clause
	 	 	12	 
	Section 1.11. Benefits Of Indenture
	 	 	12	 
	Section 1.12. Governing Law
	 	 	13	 
	Section 1.13. Counterparts
	 	 	13	 
	Section 1.14. Judgment Currency
	 	 	13	 
	Section 1.15. Legal Holidays
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	Security Forms
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Forms Generally
	 	 	14	 
	Section 2.02. Forms of Securities
	 	 	14	 
	Section 2.03. Securities in Global Form
	 	 	14	 
	Section 2.04. Form of Trustee’s Certificate of Authentication
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	The Securities
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. General Title; General Limitations; Issuable in Series;
Terms of Particular Series
	 	 	15	 
	Section 3.02. Denominations and Currency
	 	 	19	 
	Section 3.03. Execution, Authentication and Delivery, and Dating
	 	 	19	 
	Section 3.04. Temporary Securities
	 	 	21	 
	Section 3.05. Registration, Transfer and Exchange
	 	 	22	 
	Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	25	 
	Section 3.07. Payment of Interest; Interest Rights Preserved
	 	 	26	 
	Section 3.08. Persons Deemed Owners
	 	 	27	 
	Section 3.09. Cancellation
	 	 	27	 
	Section 3.10. Computation of Interest
	 	 	28	 

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	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Satisfaction and Discharge
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Satisfaction and Discharge of Indenture
	 	 	28	 
	Section 4.02. Discharge and Defeasancec
	 	 	29	 
	Section 4.03. Covenant Defeasance
	 	 	30	 
	Section 4.04. Conditions To Defeasance Or Covenant Defeasance
	 	 	31	 
	Section 4.05. Application of Trust Money; Excess Funds
	 	 	32	 
	Section 4.06. Paying Agent to Repay Moneys Held
	 	 	33	 
	Section 4.07. Return of Unclaimed Amounts
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Events of Default
	 	 	34	 
	Section 5.02. Acceleration of Maturity; Rescission, and Annulment
	 	 	35	 
	Section 5.03. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	36	 
	Section 5.04. Trustee May File Proofs of Claim
	 	 	37	 
	Section 5.05. Trustee May Enforce Claims Without Possession of Securities
	 	 	38	 
	Section 5.06. Application of Money Collected
	 	 	38	 
	Section 5.07. Limitation on Suits
	 	 	38	 
	Section 5.08. Unconditional Right of Securityholders to Receive Principal, Premium, and Interest
	 	 	39	 
	Section 5.09. Restoration of Rights and Remedies
	 	 	39	 
	Section 5.10. Rights and Remedies Cumulative
	 	 	40	 
	Section 5.11. Delay or Omission Not Waiver
	 	 	40	 
	Section 5.12. Control by Securityholders
	 	 	40	 
	Section 5.13. Waiver of Past Defaults
	 	 	40	 
	Section 5.14. Undertaking for Costs
	 	 	41	 
	Section 5.15. Waiver of Stay or Extension Laws
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	The Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Certain Duties and Responsibilities of Trustee
	 	 	41	 
	Section 6.02. Notice of Defaults
	 	 	43	 
	Section 6.03. Certain Rights of Trustee
	 	 	43	 
	Section 6.04. Not Responsible for Recitals or Issuance of Securities
	 	 	44	 
	Section 6.05. May Hold Securities
	 	 	44	 
	Section 6.06. Money Held in Trust
	 	 	44	 
	Section 6.07. Compensation and Reimbursement
	 	 	44	 
	Section 6.08. Disqualification; Conflicting Interests
	 	 	45	 
	Section 6.09. Corporate Trustee Required; Eligibility
	 	 	46	 
	Section 6.10. Resignation and Removal; Appointment of Successor
	 	 	46	 
	Section 6.11. Acceptance of Appointment by Successor
	 	 	48	 
	Section 6.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	49	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 6.13. Preferential Collection of Claims Against Company
	 	 	49	 
	Section 6.14. Appointment of Authenticating Agent
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Securityholders’ Lists and Reports by Trustee and Company
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Company to Furnish Trustee Names and Addresses of Securityholders
	 	 	51	 
	Section 7.02. Preservation of Information; Communications to Securityholders
	 	 	51	 
	Section 7.03. Reports by Trustee
	 	 	53	 
	Section 7.04. Reports by Company
	 	 	53	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Consolidation, Merger, Conveyance or Transfer
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Company May Consolidate, etc., Only on Certain Terms
	 	 	54	 
	Section 8.02. Successor Corporation Substituted
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	Supplemental Indentures
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Supplemental Indentures Without Consent of Securityholders
	 	 	55	 
	Section 9.02. Supplemental Indentures With Consent of Securityholders
	 	 	56	 
	Section 9.03. Execution of Supplemental Indentures
	 	 	57	 
	Section 9.04. Effect of Supplemental Indentures
	 	 	58	 
	Section 9.05. Conformity With Trust Indenture Act
	 	 	58	 
	Section 9.06. Reference in Securities to Supplemental Indentures
	 	 	58	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Payment of Principal, Premium and Interest
	 	 	58	 
	Section 10.02. Maintenance of Office or Agency
	 	 	58	 
	Section 10.03. Money or Security Payments to Be Held in Trust
	 	 	59	 
	Section 10.04. Certificate to Trustee
	 	 	60	 
	Section 10.05. Corporate Existence
	 	 	60	 
	Section 10.06. Limitation on Secured Debt
	 	 	60	 
	Section 10.07. Waiver of Certain Covenants
	 	 	61	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Redemption of Securities
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Applicability of Article
	 	 	61	 
	Section 11.02. Election to Redeem; Notice to Trustee
	 	 	62	 
	Section 11.03. Selection by Trustee of Securities to be Redeemed
	 	 	62	 
	Section 11.04. Notice of Redemption
	 	 	62	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	Section 11.05. Deposit of Redemption Price
	 	 	63	 
	Section 11.06. Securities Payable on Redemption Date
	 	 	63	 
	Section 11.07. Securities Redeemed in Part
	 	 	64	 
	Section 11.08. Provisions with Respect to any Sinking Funds
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Repayment at Option of Holders
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Applicability of Article
	 	 	66	 
	Section 12.02. Repayment of Securities
	 	 	66	 
	Section 12.03. Exercise of Option
	 	 	66	 
	Section 12.04. When Securities Presented for Repayment Become Due and Payable
	 	 	67	 
	Section 12.05. Securities Repaid in Part
	 	 	67	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Subordination Of Subordinated Securities
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Agreement To Subordinate
	 	 	67	 
	Section 13.02. Payment On Dissolution, Liquidation Or Reorganization; Default On Senior Indebtedness
	 	 	67	 
	Section 13.03. Payment Prior To Dissolution Or Default
	 	 	70	 
	Section 13.04. Securityholders Authorize Trustee To Effectuate Subordination of Securities
	 	 	71	 
	Section 13.05. Right Of Trustee To Hold Senior Indebtedness
	 	 	71	 
	Section 13.06. Article 13 Not To Prevent Events Of Default
	 	 	71	 
	Section 13.07. No Fiduciary Duty Of Trustee To Holders Of Senior Indebtedness
	 	 	71	 

iv

 

     THIS INDENTURE, between PepsiCo, Inc., a North Carolina corporation (hereinafter called the
“Company”) having its principal office at 700 Anderson Hill Road, Purchase, N.Y. 10577, and The
Bank of New York, a New York banking corporation, as trustee (hereinafter called the “Trustee”), is
made and entered into as of this 21st day of May, 2007.

Recitals of the Company

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance of its unsecured debentures, notes, bonds, and other evidences of indebtedness, to be
issued in one or more fully registered series.

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

Agreements of the Parties

     To set forth or to provide for the establishment of the terms and conditions upon which the
Securities (as hereinafter defined) are and are to be authenticated, issued, and delivered, and in
consideration of the premises thereof, and the purchase of Securities by the Holders (as
hereinafter defined) thereof, it is mutually covenanted and agreed as follows, for the equal and
proportionate benefit of all Holders from time to time of the Securities or of any series thereof,
as the case may be:

ARTICLE 1

Definitions and Other Provisions of General Application

     Section 1.01. Definitions. For all purposes of this Indenture and of any indenture
supplemental hereto, except as otherwise expressly provided or unless the context otherwise
requires:

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

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

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

1

 

hereunder shall mean such accounting principles as are generally accepted in the United States
of America at the date of such computation; and

     (d) all references in this instrument to designated “Articles”, “Sections” and other
subdivisions are to the designated Articles, Sections and other subdivisions of this instrument as
originally executed. 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 Securityholder (as hereinafter defined), has the meaning
specified in Section 1.04.

     “Affiliate” of any specified Person (as hereinafter defined) 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 to authenticate Securities
of one or more series under Section 6.14.

     “Authentication Order” has the meaning specified in Section 3.03.

     “Board of Directors” means (i) the board of directors of the Company, (ii) any duly authorized
committee of that board, or (iii) any officer, director, or authorized representative of the
Company, in each case duly authorized by such Board to act hereunder.

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

     “Chairman” means the Company’s Chairman of the Board and Chief Executive Officer.

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

2

 

     “Company” means PepsiCo, Inc., unless and until a successor corporation shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such
successor corporation.

     “Company Request”, “Company Order”, and “Company Consent” mean, respectively, a written
request, order, or consent signed in the name of the Company by its Chairman, Vice Chairman, Chief
Financial Officer, Senior Vice President, or any Vice President (as hereinafter defined), or by any
other officer or officers of the Company pursuant to an applicable Board Resolution, and delivered
to the Trustee.

     “Consolidated Net Tangible Assets” means the total amount of assets (less applicable
depreciation, amortization, and other valuation reserves) of the Company and its Restricted
Subsidiaries, after deducting therefrom (i) all current liabilities of the Company and its
Restricted Subsidiaries (excluding any such liabilities that are intercompany items) and (ii) all
goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other like
intangibles, all as set forth on the latest consolidated balance sheet of the Company and its
Restricted Subsidiaries prepared in accordance with generally accepted accounting principles.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered, which office at the date hereof is
located at 101 Barclay Street, 8W, New York, New York 10286.

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

     “Covenant Defeasance” has the meaning specified in Section 4.03.

     “Debt” has the meaning specified in Section 10.06.

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

     “Defeasance” has the meaning specified in Section 4.02.

     “Depositary” means with respect to the Securities of any series issuable or issued in whole or
in part in global form, the Person designated as Depositary by the Company pursuant to Section
3.01, unless and until a successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is
then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as
used with respect to the Securities of any such series shall mean the “Depositary” with respect to
the Securities of that series.

3

 

     “Equivalent Government Securities” means, in relation to Securities denominated in a currency
other than U.S. dollars, securities of the government that issued the currency in which such
Securities are denominated or securities of government agencies backed by the full faith and credit
of such government.

      “Event of Default” has the meaning specified in Article 5.

     “Holder”, “Securityholder” and “Holder of Securities” means a Person in whose name a Security
is registered in the Security Register (as hereinafter defined).

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

     “Interest Payment Date”, when used with respect to any series of Securities, means any date on
which an installment of interest on those Securities is scheduled to be paid.

     “Maturity”, when used with respect to any Security, means the date on which the principal
amount outstanding under such Security or an installment of principal amount outstanding under such
Security becomes due and payable, as therein or herein provided, whether on the Scheduled Maturity
Date (as hereinafter defined), by declaration of acceleration, call for redemption, or otherwise.

     “Mortgage” is defined in Section 10.06.

     “New York Business Day” means (except, with respect to any particular series of Securities, as
may be otherwise provided in the form of such Securities) any day other than a Saturday or Sunday
that is neither a legal holiday nor a day on which banking institutions are authorized or required
by law, regulation, or executive order to be closed.

     “Officers’ Certificate” means a certificate signed by any two of the Chairman, Vice Chairman,
Chief Financial Officer, Senior Vice President, any Vice President, the Treasurer, and any
Assistant Treasurer of the Company, or by any other officer or officers of the Company pursuant to
an applicable Board Resolution, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel to the Company, which counsel may be
an employee of the Company or other counsel who shall be reasonably acceptable to the Trustee.

4

 

     “Original Issue Discount Security” means any Security which is initially sold at a discount
from the principal amount thereof and the terms of which provide that upon redemption or
acceleration of the Maturity thereof, an amount less than the principal amount thereof would become
due and payable.

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

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

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

     (iii) such Securities in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to this Indenture, or which shall have been paid, in each
case, pursuant to the terms of Section 3.06 (except with respect to any such Security as to which
proof satisfactory to the Trustee is presented that such Security is held by a Person in whose
hands such Security is a legal, valid, and binding obligation of the Company).

In determining whether the Holders of the requisite principal amount of such Securities Outstanding
have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the
principal amount of any 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 a declaration of acceleration of the Maturity thereof. In determining whether
the Holders of the requisite principal amount of such Securities Outstanding have given a direction
concerning the time, method, and place of conducting any proceeding for any remedy available to the
Trustee, or concerning the exercise of any trust or power conferred upon the Trustee under this
Indenture, or concerning a consent on behalf of the Holders of any series of Securities to the
waiver of any past default and its consequences, Securities owned by the Company, any other obligor
upon the Securities, or any Affiliate of the Company or such other obligor shall be disregarded and
deemed not to be Outstanding. 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 assigned to the corporate trust department of the Trustee knows to be
owned by the Company or any other

5

 

obligor upon the Securities or any Affiliate of the Company or such other obligor 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 to
act as owner 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 such other obligor.

     “Paying Agent” means, with respect to any Securities, any Person appointed by the Company to
distribute amounts payable by the Company on such Securities. If at any time there shall be more
than one such Person, “Paying Agent” as used with respect to the Securities of any particular
series shall mean the Paying Agent with respect to Securities of that series. As of the date of
this Indenture, the Company has appointed The Bank of New York as Paying Agent with respect to all
Securities issuable hereunder.

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

     “Place of Payment” means with respect to any series of Securities issued hereunder the city or
political subdivision so designated with respect to the series of Securities in question in
accordance with the provisions of Section 3.01.

     “Predecessor Securities” of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular Security; and, for the
purposes of this definition, any Security authenticated and delivered under Section 3.06 in lieu of
a lost, destroyed, mutilated, or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed, mutilated, or stolen Security.

     “Principal Property” means any single manufacturing or processing plant, office building, or
warehouse owned or leased by the Company or a Restricted Subsidiary other than a plant, warehouse,
office building, or portion thereof which, in the opinion of the Company’s Board of Directors, is
not of material importance to the business conducted by the Company and its Restricted Subsidiaries
as an entirety.

     “Record Date” means any date as of which the Holder of a Security will be determined for any
purpose described herein, such determination to be made as of the close of business on such date by
reference to the Security Register.

     “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.

6

 

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

     “Repayment Date”, when used with respect to any Security to be repaid, means the date fixed
for such repayment pursuant to such Security.

     “Repayment Price”, when used with respect to any Security to be repaid, means the price at
which it is to be repaid pursuant to such Security.

     “Responsible Officer”, when used with respect to the Trustee, shall mean an officer of the
Trustee in the Corporate Trust Office, having direct responsibility for the administration of this
Indenture, and also, with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of such officer’s knowledge of and familiarity with the particular
subject.

     “Restricted Subsidiary” means at any time any Subsidiary of the Company except a Subsidiary
which is at the time an Unrestricted Subsidiary.

     “Scheduled Maturity Date”, when used with respect to any Security, means the date specified in
such Security as the date on which all outstanding principal and interest will be due and payable.

     “Security” or “Securities” means any note or notes, bond or bonds, debenture or debentures, or
any other evidences of indebtedness, as the case may be, of any series authenticated and delivered
from time to time under this Indenture.

     “Security Register” shall have the meaning specified in Section 3.05.

     “Security Registrar” means the Person who maintains the Security Register, which Person shall
be the Trustee unless and until a successor Security Registrar is appointed by the Company.

     “Senior Indebtedness” means all obligations or indebtedness of, or guaranteed or assumed by,
the Company, whether or not represented by bonds, debentures notes or similar instruments, for
borrowed money, and any amendments, renewals, extensions, modifications and refundings of any such
obligations or indebtedness, unless in the instrument creating or evidencing any such indebtedness
or obligations or pursuant to which the same is outstanding it is specifically stated, at or prior
to the time the Company becomes liable in respect thereof, that any such obligation or indebtedness
or such amendment, renewal, extension, modification and refunding thereof is not Senior
Indebtedness.

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

     “Specified Currency” has the meaning specified in Section 3.01.

7

 

     “Subordinated Security” means any security issued under this Indenture which is designated as
a Subordinated Security.

     “Subsidiary” of any specified corporation means any entity at least a majority of whose
outstanding Voting Stock shall at the time be owned, directly or indirectly, by the specified
corporation or by one or more of its Subsidiaries, or both.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as in force as of the
date hereof, except as provided in Section 9.05.

     “Trustee” means the party named as such above until a successor becomes such pursuant to this
Indenture and thereafter means or includes each party who is then a trustee hereunder, and if at
any time there is more than one such party, “Trustee” as used with respect to the Securities of any
series means the Trustee with respect to Securities of that series. If Trustees with respect to
different series of Securities are trustees under this Indenture, nothing herein shall constitute
the Trustees co-trustees of the same trust, and each Trustee shall be the trustee of a trust
separate and apart from any trust administered by any other Trustee with respect to a different
series of Securities.

     “Unrestricted Subsidiary” means any Subsidiary of the Company (not at the time designated a
Restricted Subsidiary) (i) the major part of whose business consists of finance, banking, credit,
leasing, insurance, financial services, or other similar operations, or any combination thereof,
(ii) substantially all the assets of which consist of the capital stock of one or more such
Subsidiaries, or (iii) designated as such by the Company’s Board of Directors; provided that such
designation will not constitute a violation of the terms of the Securities. Any Subsidiary
designated as a Restricted Subsidiary may be designated as an Unrestricted Subsidiary unless such
designation will constitute a violation of the terms of the Securities.

     “U.S. Government Obligations” means (i) securities that are direct obligations of the United
States of America, the payment of which is unconditionally guaranteed by the full faith and credit
of the United States of America and (ii) securities that are obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of America, the
payment of which is unconditionally guaranteed by the full faith and credit of the United States of
America, and also includes depository receipts issued by a bank or trust company as custodian with
respect to any of the securities described in the preceding clauses (i) and (ii), and any payment
of interest or principal payable under any of the securities described in the preceding clauses (i)
and (ii) that is 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, or from any amount received by
the custodian in respect of

8

 

such securities, or from any specific payment of interest or principal payable under the
securities evidenced by such depository receipt.

     “Vice President”, when used with respect to the Company or 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”, as applied to the stock of any corporation, means stock of any class or
classes (however designated), the outstanding shares of which have, by the terms thereof, ordinary
voting power to elect a majority of the members of the board of directors (or other governing body)
of such corporation, other than stock having such power only by reason of the happening of a
contingency.

     Section 1.02. Officers’ Certificates and Opinions. Every Officers’ Certificate, Opinion of
Counsel, and other certificate or opinion to be delivered to the Trustee under this Indenture with
respect to any action to be taken by the Trustee (except for the Officers’ Certificate required by
Section 10.04) shall include the following:

     (a) a statement that each individual signing such certificate or opinion has read all
covenants and conditions of this Indenture relating to such proposed action, including the
definitions herein relating thereto;

     (b) 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;

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

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

     Section 1.03. 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 the 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, legal counsel, unless such
officer knows that any such

9

 

certificate, opinion, or representation is erroneous. Any opinion of counsel for the Company
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, unless such counsel knows that any such
certificate, opinion, or representation is 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, such
instruments may, but need not, be consolidated and form a single instrument.

     Section 1.04. Acts of Securityholders. (a) Any request, demand, authorization, direction,
notice, consent, waiver, or other action provided by this Indenture to be given or taken by
Securityholders may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Securityholders in person or by an agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and (if expressly required by the applicable
terms of this Indenture) to the Company. If any Securities are denominated in coin or currency
other than that of the United States, then for the purposes of determining whether the Holders of
the requisite principal amount of Securities have taken any action as herein described, the
principal amount of such Securities shall be deemed to be that amount of United States dollars that
could be obtained for such principal amount on the basis of the spot rate of exchange into United
States dollars for the currency in which such Securities are denominated (as evidenced to the
Trustee by a certificate provided by a financial institution, selected by the Company, that
maintains an active trade in the currency in question, acting as conversion agent) as of the date
the taking of such action by the Holders of such requisite principal amount is evidenced to the
Trustee as provided in the immediately preceding sentence. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the
Securityholders signing such instrument or instruments. Proof of execution of any such instrument
or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 6.01) conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness to such execution or by the certificate of any 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 an officer of a corporation or a member of a partnership, on behalf of such corporation or
partnership, 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.

10

 

     (c) The ownership of Securities shall for all purposes be determined by reference to the
Security Register, as such register shall exist as of the applicable date.

     (d) If the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other action, the Company may, at its option, by Board
Resolution, fix in advance a Record Date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other action, but the Company
shall have no obligation to do so. If such Record Date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given before or after such
Record Date, but only the Holders of record at the close of business on such Record Date shall be
deemed to be Holders for the purpose of determining whether Holders of the requisite proportion of
Securities Outstanding have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other action, and for that purpose the
Securities Outstanding shall be computed as of such Record Date; provided that no such
authorization, agreement or consent by the Holders on such Record Date shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after such Record Date.

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

     Section 1.05. Notices, etc., to Trustee and Company. Any request, order, authorization,
direction, consent, waiver, or other action to be taken by the Trustee, the Company, or the
Securityholders hereunder (including any Authentication Order), and any notice to be given to the
Trustee or the Company with respect to any action taken or to be taken by the Trustee, the Company,
or the Securityholders hereunder, shall be sufficient if made in writing and

     (a) (if to be furnished or delivered to or filed with the Trustee by the Company or any
Securityholder) delivered to the Trustee at its Corporate Trust Office, Attention: Corporate
Finance, or

     (b) (if to be furnished or delivered to the Company by the Trustee or any Securityholder, and
except as otherwise provided in Section 5.01(d) and, in the case of a request for repayment, except
as specified in the Security carrying the right to repayment) mailed to the Company, first-class
postage prepaid, at its principal office (as specified in the first paragraph of this instrument),
Attention: Treasurer, or at any other address hereafter furnished in writing by the Company to the
Trustee.

11

 

     Section 1.06. Notice To Securityholders; Waiver. Where this Indenture or any Security
provides for notice to Securityholders of any event, such notice shall be sufficiently given
(unless otherwise expressly provided herein or in such Security) if in writing and mailed,
first-class postage prepaid, to each Securityholder affected by such event, at his or her address
as it appears in the Security Register as of the applicable Record Date, not later than the latest
date or earlier than the earliest date prescribed by this Indenture or such Security for the giving
of such notice. In any case where notice to Securityholders is given by mail, neither the failure
to mail such notice nor any defect in any notice so mailed to any particular Securityholder shall
affect the sufficiency of such notice with respect to other Securityholders. Where this Indenture
or any Security 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 Securityholders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or otherwise, it shall be impractical to mail notice of any event to any Securityholder
when such notice is required to be given pursuant to any provision of this Indenture or the
applicable Security, then any method of notification as shall be satisfactory to the Trustee and
the Company shall be deemed to be sufficient for the giving of such notice.

     Section 1.07. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies
or conflicts with another provision hereof which is required to be included in this Indenture by
any of the provisions of the TIA, such required provision shall control.

     Section 1.08. Effect of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents hereof are for convenience only and shall not affect the
construction of any provision of this Indenture.

     Section 1.09. Successors and Assigns. All covenants and agreements in this Indenture by the
Company shall bind its successors and assigns, whether so expressed or not.

     Section 1.10. Separability Clause. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     Section 1.11. Benefits Of Indenture. Nothing in this Indenture or in any Securities, express
or implied, shall give to any Person, other than the parties hereto, their successors hereunder,
the Authenticating Agent, the Security Registrar, any Paying Agent, and the Holders of Securities
(or such of them as

12

 

may be affected thereby), any benefit or any legal or equitable right, remedy or claim under
this Indenture.

     Section 1.12. Governing Law. This Indenture shall be governed by and construed in accordance
with the laws of the State of New York.

     Section 1.13. Counterparts. This instrument may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original, but all of which shall together
constitute but one and the same instrument.

     Section 1.14. Judgment Currency. The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any
court with respect to the Securities of any series it is necessary to convert the sum due in
respect of the principal, premium, if any, or interest, if any, payable with respect to such
Securities into a currency in which a judgment can be rendered (the “Judgment Currency”), the rate
of exchange from the currency in which payments under such Securities is payable (the “Required
Currency”) into the Judgment Currency shall be the highest bid quotation (assuming European-style
quotation — i.e., Required Currency per Judgment Currency) received by the Company from three
recognized foreign exchange dealers in the City of New York for the purchase of the aggregate
amount of the judgment (as denominated in the Judgment Currency) on the New York Business Day
preceding the date on which a final unappealable judgment is rendered, for settlement on such
payment date, and at which the applicable dealer timely commits to execute a contract, and (b) the
Company’s obligations under this Indenture to make payments in the Required Currency (i) shall not
be discharged or satisfied by any tender, or by any recovery pursuant to any judgment (whether or
not entered in accordance with the preceding clause (a)), in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the actual receipt by
the judgment creditor of the full amount of the Required Currency expressed to be payable in
respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action
for the purpose of recovering in the Required Currency the amount, if any, by which such actual
receipt shall fall short of the full amount of the Required Currency so expressed to be payable,
and (iii) shall not be affected by judgment being obtained for any other sum due under this
Indenture.

     Section 1.15. Legal Holidays.

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

13

 

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

ARTICLE 2

Security Forms

     Section 2.01. Forms Generally. The Securities of each series shall have such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon, as may be required to comply with the rules of any securities
exchange, or as may, consistently herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities. Any portion of the text of any
Security may be set forth on the reverse thereof, with an appropriate reference thereto on the face
of the Security.

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

     Section 2.02. Forms of Securities. Each Security shall be in one of the forms approved from
time to time by or pursuant to any Board Resolution, or established in one or more indentures
supplemental hereto. Prior to the delivery to the Trustee for authentication of any Security in any
form approved by or pursuant to a Board Resolution, the Company shall deliver to the Trustee a copy
of such Board Resolution, together with a true and correct copy of the form of Security which has
been approved thereby, or, if a Board Resolution authorizes a specific officer or officers to
approve a form of Security, together with a certificate of such officer or officers approving the
form of Security attached thereto, provided, however, that with respect to all Securities issued
pursuant to the same Board Resolution, the required copy of such Board Resolution, together with
the appropriate attachment, need be delivered only once. Any form of Security approved by or
pursuant to a Board Resolution must be acceptable as to form to the Trustee, such acceptance to be
evidenced by the Trustee’s authentication of Securities in that form or by a certificate signed by
a Responsible Officer of the Trustee and delivered to the Company.

     Section 2.03. Securities in Global Form. If Securities of a series are issuable in whole or
in part in global form, the global security representing such Securities may provide that it shall
represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and may
also provide that the aggregate amount of Outstanding Securities represented thereby may from time
to time be reduced to reflect exchanges or increased to reflect the issuance of

14

 

additional Securities. Any endorsement of a Security in global form to reflect the amount (or
any increase or decrease in the amount) of Outstanding Securities represented thereby shall be made
in such manner and by such Person or Persons as shall be specified therein or in the Authentication
Order delivered to the Trustee pursuant to Section 3.03 hereof.

     Section 2.04. Form of Trustee’s Certificate of Authentication. The form of Trustee’s
Certificate of Authentication for any Security issued pursuant to this Indenture shall be
substantially as follows:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 	The Bank of New York, as Trustee,

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

ARTICLE 3

The Securities

     Section 3.01. General Title; General Limitations; Issuable in Series; Terms of Particular
Series. The aggregate principal amount of Securities that may be authenticated, delivered, and
Outstanding at any time under this Indenture is not limited.

     The Securities may be issued in one or more series in such aggregate principal amount as may
from time to time be authorized by the Board of Directors. All Securities of a series issued under
this Indenture shall in all respects be equally and ratably entitled to the benefits hereof,
without preference, priority, or distinction on account of the actual time of the authentication
and delivery or Scheduled Maturity Date thereof.

     Each series of Securities shall be created either by or pursuant to one or more Board
Resolutions or by one or more indentures supplemental hereto. Any such Board Resolution or
supplemental indenture (or, in the case of a series of Securities created pursuant to a Board
Resolution, any officer or officers authorized by such Board Resolution) shall establish the terms
of any such series of Securities, including the following (as and to such extent as may be
applicable):

     (1) the title of such series;

15

 

     (2) the limit, if any, upon the aggregate principal amount or issue price of the Securities of
such series;

     (3) the issue date or issue dates of the Securities of such series;

     (4) the Scheduled Maturity Date of the Securities of such series;

     (5) the place or places where the principal, premium, if any, interest, if any, and additional
amounts, if any, payable with respect to the Securities of such series shall be payable;

     (6) whether the Securities of such series will be issued at par or at a premium over or a
discount from their face amount;

     (7) the rate or rates (which may be fixed or variable)at which the Securities of such series
shall bear interest, if any, and, if applicable, the method by which such rate or rates may be
determined;

     (8) the date or dates (or the method by which such date or dates may be determined) from which
interest, if any, shall accrue, and the Interest Payment Dates on which such interest shall be
payable;

     (9) the rights, if any, to defer payments of interest on the Securities by extending the
interest payment periods and the duration of such extension;

     (10) the period or periods within which, the Redemption Price(s)or Repayment Price(s) at
which, and any other terms and conditions upon which the Securities of such series may be redeemed
or repaid, in whole or in part, by the Company;

     (11) the obligation, if any, of the Company to redeem, repay, or purchase any of the
Securities of such series pursuant to any sinking fund, mandatory redemption, purchase obligation,
or analogous provision at the option of a Holder thereof, and the period or periods within which,
the Redemption Price(s) or Repayment Price(s) or other price or prices at which, and any other
terms and conditions upon which the Securities of such series shall be redeemed, repaid, or
purchased, in whole or in part, pursuant to such obligation;

     (12) whether the Securities of such series are to be issued in whole or in part in global form
and, if so, the identity of the Depositary for such global security and the terms and conditions,
if any, upon which interests in the Securities represented by such global security may be
exchanged, in whole or in part, for the individual Securities represented thereby (if other than as
provided in Section 3.05);

     (13) whether such Securities are Subordinated Securities and if so, the provisions for such
subordination if other than the provisions set forth in Article 13;

16

 

     (14) the denominations in which the Securities of such series will be issued (which may be any
denomination as set forth in the terms of such Securities) if other than U.S.$1,000 or an integral
multiple thereof;

     (15) whether and under what circumstances additional amounts on the Securities of such series
shall be payable in respect of any taxes, assessments, or other governmental charges withheld or
deducted and, if so, whether the Company will have the option to redeem such Securities rather than
pay such additional amounts;

     (16) the basis upon which interest shall be calculated;

     (17) if the Securities of such series are to be issuable in definitive form (whether upon
original issue or upon exchange of a temporary Security for a definitive Security of such series)
only upon receipt of certain certificates or other documents or upon satisfaction of other
conditions, then the form and terms of such certificates, documents, and/or conditions;

     (18) the exchange or conversion of the Securities of that series, whether or not at the option
of the Holders thereof, for or into new Securities of a different series or for or into any other
securities which may include shares of Capital Stock of the Company or any Subsidiary of the
Company or securities directly or indirectly convertible into or exchangeable for any such shares
or securities of entities unaffiliated with the Company or any Subsidiary of the Company;

     (19) if other than U.S. dollars, the foreign or composite currency or currencies (each such
currency a “Specified Currency”) in which the Securities of such series shall be denominated and in
which payments of principal, premium, if any, interest, if any, or additional amounts, if any,
payable with respect to such Securities shall or may be payable;

     (20) if the principal, premium, if any, interest, if any, or additional amounts, if any,
payable with respect to the Securities of such series are to be payable in any currency other than
that in which the Securities are stated to be payable, whether at the election of the Company or of
a Holder thereof, the period or periods within which, and the terms and conditions upon which, such
election may be made;

     (21) if the amount of any payment of principal, premium, if any, interest, if any, or other
sum payable with respect to the Securities of such series may be determined by reference to the
relative value of one or more Specified Currencies, commodities, securities, or instruments, the
level of one or more financial or non- financial indices, or any other designated factors or
formulas, the manner in which such amounts shall be determined;

     (22) the exchange of Securities of such series, at the option of the Holders thereof, for
other Securities of the same series of the same aggregate principal

17

 

amount of a different authorized kind or different authorized denomination or denominations,
or both;

     (23) the appointment by the Trustee of an Authenticating Agent in one or more places other
than the Corporate Trust Office of the Trustee, with power to act on behalf of the Trustee, and
subject to its direction, in the authentication and delivery of the Securities of such series;

     (24) any trustees, depositaries, paying agents, transfer agents, exchange agents, conversion
agents, registrars, or other agents with respect to the Securities of such series if other than the
Trustee, Paying Agent and Security Registrar named herein;

     (23) the portion of the principal amount of Securities of such series, if other than the
principal amount thereof, that shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 5.02 or provable in bankruptcy pursuant to Section 5.04;

     (25) any Event of Default with respect to the Securities of such series, if not set forth
herein, or any modification of any Event of Default set forth herein with respect to such series;

     (26) any covenant solely for the benefit of the Securities of such series;

     (27) the inapplicability of Section 4.02 and Section 4.03 of this Indenture to the Securities
of such series and if Section 4.03 is applicable, the covenants subject to Covenant Defeasance
under Section 4.03; and

     (28) any other terms not inconsistent with the provisions of this Indenture.

     If all of the Securities issuable by or pursuant to any Board Resolution are not to be issued
at one time, it shall not be necessary to deliver the Officers’ Certificate and Opinion of Counsel
required by Section 3.03 hereof at the time of issuance of each such Security, but such Officers’
Certificate and Opinion of Counsel shall be delivered at or before the time of issuance of the
first such Security.

     If any series of Securities shall be established by action taken pursuant to any Board
Resolution, the execution by the officer or officers authorized by such Board Resolution of an
Authentication Order (as defined in Section 3.03 below) with respect to the first Security of such
series to be issued, and the delivery of such Authentication Order to the Trustee at or before the
time of issuance of the first Security of such series, shall constitute a sufficient record of such
action. Except as otherwise permitted by Section 3.03, if all of the Securities of any such series
are not to be issued at one time, the Company shall deliver an Authentication Order with respect to
each subsequent issuance of Securities of

18

 

such series, but such Authentication Orders may be executed by any authorized officer or
officers of the Company, whether or not such officer or officers would have been authorized to
establish such series pursuant to the aforementioned Board Resolution.

     Unless otherwise provided by or pursuant to the Board Resolution or supplemental indenture
creating such series (i) a series may be reopened for issuances of additional Securities of such
series, and (ii) all Securities of the same series shall be substantially identical, except for the
initial Interest Payment Date, issue price, initial interest accrual date and the amount of the
first interest payment.

     The form of the Securities of each series shall be established in a supplemental indenture or
by or pursuant to the Board Resolution creating such series. The Securities of each series shall be
distinguished from the Securities of each other series in such manner as the Board of Directors or
its authorized representative or representatives may determine.

     Unless otherwise provided with respect to Securities of a particular series, the Securities of
any series may only be issuable in registered form, without coupons.

     Section 3.02. Denominations and Currency. The Securities of each series shall be issuable in
such denominations and currency as shall be provided in the provisions of this Indenture or by or
pursuant to the Board Resolution or supplemental indenture creating such series. In the absence of
any such provisions with respect to the Securities of any series, the Securities of that series
shall be issuable only in fully registered form in denominations of U.S. $1,000 and any integral
multiple thereof.

     Section 3.03. Execution, Authentication and Delivery, and Dating. The Securities shall be
executed on behalf of the Company by any two of the Chairman, Vice Chairman, Chief Financial
Officer, Senior Vice President and any Vice President of the Company under its corporate seal
reproduced thereon and attested by its Secretary or any one of its Assistant Secretaries. The
signature of any of these officers on the Securities may be manual or facsimile. The seal of the
Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted, or
otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such
reproduction of the seal or any such signature shall not affect the validity or enforceability of
any Security that has been duly authenticated and delivered by the Trustee.

     Unless otherwise provided in the form of Security for any series, all Securities shall be
dated the date of their authentication.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company,

19

 

notwithstanding that such individuals or any of them have ceased to hold such offices prior to
the authentication and delivery of such Securities or did not hold such offices at the date of such
Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities to the Trustee for authentication, together with a Company Order for
authentication and delivery (such Order an “Authentication Order”) with respect to such Securities,
and the Trustee shall, upon receipt of such Authentication Order, in accordance with procedures
acceptable to the Trustee set forth in the Authentication Order, and subject to the provisions
hereof, authenticate and deliver such Securities to such recipients as may be specified from time
to time pursuant to such Authentication Order. The material terms of such Securities shall be
determinable by reference to such Authentication Order and procedures. If provided for in such
procedures, such Authentication Order may authorize authentication and delivery of such Securities
pursuant to oral instructions from the Company or its duly authorized agent, which instructions
shall be promptly confirmed in writing. In authenticating such Securities and accepting the
additional responsibilities under this Indenture in relation to such Securities, the Trustee shall
be entitled to receive, and (subject to the provisions of Section 6.01 hereof) shall be fully
protected in relying upon:

     (1) an executed supplemental indenture, if any;

     (2) an Officers’ Certificate, certifying as to the authorized form or forms and terms of such
Securities; and

     (3) an Opinion of Counsel, stating that:

     (a) the form or forms and terms of such Securities have been established by and in
conformity with the provisions of this Indenture; provided that if all such Securities are
not to be issued at the same time, such Opinion of Counsel may state that such terms will
be established in conformity with the provisions of this Indenture, subject to any
conditions specified in such Opinion of Counsel; and

     (b) such Securities, when authenticated and delivered by the Trustee and issued by
the Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and legally binding obligations of the Company, enforceable
in accordance with their terms, subject to bankruptcy, insolvency, moratorium,
reorganization, and other laws of general applicability relating to or affecting the
enforcement of creditors’ rights and to general principles of equity;

provided, however, that if all Securities issuable by or pursuant to a Board Resolution or
supplemental indenture are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate or Opinion of Counsel

20

 

otherwise required pursuant to this paragraph at or prior to the time of authentication of each
such Security if such documents are delivered at or prior to the time of authentication upon
original issuance of the first such Security to be issued. After the original issuance of the first
such Security to be issued, any separate request by the Company that the Trustee authenticate such
Securities for original issuance will be deemed to be a certification by the Company that it is in
compliance with all conditions precedent provided for in this Indenture relating to the
authentication and delivery of such Securities.

     The Trustee shall not be required to authenticate such Securities if the issue thereof will
adversely affect the Trustee’s own rights, duties, or immunities under the Securities and this
Indenture.

     If the Company shall establish pursuant to Section 3.01 that Securities of a series may be
issued in whole or in part in global form, then the Company shall execute, and the Trustee shall
(in accordance with this Section 3.03 and the Authentication Order with respect to such series)
authenticate and deliver, one or more Securities in global form that (i) shall represent and shall
be denominated in an aggregate amount equal to the aggregate principal amount of the Outstanding
Securities of such series to be represented by such one or more Securities in global form, (ii)
shall be registered, in the name of the Depositary for such Security or Securities in global form,
or in the name of a nominee of such Depositary, (iii) shall be delivered to such Depositary or
pursuant to such Depositary’s instruction, and (iv) shall bear a legend substantially as follows:
“Unless and until it is exchanged in whole or in part for Securities in certificated form, this
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary,
or by a nominee of the Depositary to the Depositary or another nominee of the Depositary, or by the
Depositary or any such nominee to a successor Depositary or a nominee of such successor
Depositary.” Each Depositary designated pursuant to Section 3.01 for a Security in global form
must, at the time of its designation and at all times while it serves as Depositary, be a clearing
agency registered under the Securities Exchange Act of 1934 and any other applicable statute or
regulation.

     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 of an authorized
signatory, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder.

     Section 3.04. Temporary Securities. Pending the preparation of definitive Securities of any
series, the Company may execute, and, upon receipt of the documents required by Sections 2.02, 3.01
and 3.03 hereof, together with an Authentication Order, the Trustee shall authenticate and deliver,
temporary Securities of such series that are printed, lithographed, typewritten, mimeographed, or
otherwise produced, in any authorized denomination,

21

 

substantially of the tenor of the definitive Securities in lieu of which they are issued in
registered form, without coupons, 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. In the case of Securities of any series for which a temporary
Security may be issued in global form, such temporary global security shall represent all of the
Outstanding Securities of such series and tenor.

     Except in the case of temporary Securities in global form, which shall be exchanged in
accordance with the provisions thereof, if temporary Securities of any series are issued, the
Company will cause definitive Securities of such series to be prepared without unreasonable delay.
After the preparation of definitive Securities, the temporary Securities of such series shall be
exchangeable, at the Corporate Trust Office of the Trustee, or at such other office or agency as
may be maintained by the Company in a Place of Payment pursuant to Section 10.02 hereof, for
definitive Securities of such series having identical terms and provisions, upon surrender of the
temporary Securities of such series, at the Company’s own expense and without charge to the Holder;
and upon surrender for cancellation of any one or more temporary Securities of any series, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of such series in authorized denominations containing
identical terms and provisions. Unless otherwise specified as contemplated by Section 3.01 with
respect to a temporary Security in global form, until so exchanged, the temporary Securities of
such series shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series.

     Section 3.05. Registration, Transfer and Exchange. With respect to the Securities of each
series, the Trustee shall keep a register (herein sometimes referred to as the “Security Register”)
which shall provide for the registration of Securities of such series, and for transfers of
Securities of such series, in accordance with information to be provided to the Trustee by the
Company, subject to such reasonable regulations as the Trustee may prescribe. Such register shall
be in written form or in any other form capable of being converted into written form within a
reasonable time. At all reasonable times the information contained in such register or registers
shall be available for inspection at the Corporate Trust Office of the Trustee or at such other
office or agency to be maintained by the Company pursuant to Section 10.02 hereof.

     Upon due presentation for registration of transfer of any Security of any series at the
Corporate Trust Office of the Trustee or at any other office or agency maintained by the Company
with respect to that series pursuant to Section 10.02 hereof, 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 such series of any authorized denominations, of like aggregate
principal amount, tenor, terms and Scheduled Maturity Date.

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     Any other provision of this Section 3.05 notwithstanding, unless and until it is exchanged in
whole or in part for the individual Securities represented thereby, in definitive form, a Security
in global form representing all or a portion of the Securities of a series may not be transferred
except as a whole by the Depositary for such series to a nominee of such Depositary, or by a
nominee of such Depositary to such Depositary or another nominee of such Depositary, or by such
Depositary or any such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

     At the option of the Holder, Securities of any series may be exchanged for other Securities of
such series of any authorized denominations, of like aggregate principal amount, tenor, terms and
Scheduled Maturity Date, 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 Securityholder making the exchange is
entitled to receive.

     If at any time the Depositary for the Securities of a series represented by one or more
Securities in global form notifies the Company that it is unwilling or unable to continue as
Depositary for the Securities of such series, or if at any time the Depositary for the Securities
of such series shall no longer be eligible under Section 3.03 hereof, the Company, by Company
Order, shall appoint a successor Depositary with respect to the Securities of such series. If a
successor Depositary for the Securities of such series is not appointed by the Company within 90
days after the Company receives such notice or becomes aware of such ineligibility, the Company’s
election pursuant to Section 3.01 that such Securities be represented by one or more Securities in
global form shall no longer be effective with respect to the Securities of such series and the
Company will execute, and the Trustee, upon receipt of an Authentication Order for the
authentication and delivery of definitive Securities of such series, will authenticate and deliver
Securities of such series in definitive form, in authorized denominations, in an aggregate
principal amount, and of like terms and tenor, equal to the principal amount of the Security or
Securities in global form representing such series, in exchange for such Security or Securities in
global form.

     The Company may at any time and in its sole discretion and subject to the procedures of the
Depositary determine that individual Securities of any series issued in global form shall no longer
be represented by such Security or Securities in global form. In such event the Company will
execute, and the Trustee, upon receipt of an Authentication Order for the authentication and
delivery of definitive Securities of such series and of the same terms and tenor, will authenticate
and deliver Securities of such series in definitive form, in authorized denominations, and in
aggregate principal amount equal to the principal amount of the Security or Securities in global
form representing such series in exchange for such Security or Securities in global form.

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     If specified by the Company pursuant to Section 3.01 with respect to a series of Securities
issued in global form, the Depositary for such series of Securities may surrender a Security in
global form for such series of Securities in exchange in whole or in part for Securities of such
series in definitive form and of like terms and tenor on such terms as are acceptable to the
Company and such Depositary. Thereupon, the Company shall execute, and the Trustee upon receipt of
an Authentication Order for the authentication and delivery of definitive Securities of such
series, shall authenticate and deliver, without service charge:

     (a) to each Person specified by such Depositary, a new definitive Security or Securities of
the same series and of the same tenor and terms, in authorized denominations, in aggregate
principal amount equal to and in exchange for such Person’s beneficial interest in the Security in
global form; and

     (b) to such Depositary, a new Security in global form in a denomination equal to the
difference, if any, between the principal amount of the surrendered Security in global form and the
aggregate principal amount of the definitive Securities delivered to Holders pursuant to clause (a)
above.

     Upon the exchange of a Security in global form for Securities in definitive form, such
Security in global form shall be canceled by the Trustee or an agent of the Company or the Trustee.
Securities issued in definitive form in exchange for a Security in global form pursuant to this
Section 3.05 shall be registered in such names and in such authorized denominations as the
Depositary for such Security in global form, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee or an agent of the Company or the Trustee in
writing. The Trustee or such agent shall deliver such Securities to or as directed by the Persons
in whose names such Securities are so registered or to the Depositary.

     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 transfer or exchange.

     Every Security presented or surrendered for registration of transfer, exchange, redemption or
payment 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.

     Unless otherwise provided in the Security to be transferred or exchanged, no service charge
shall be imposed for any registration of transfer or exchange of

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Securities, but the Company may (unless otherwise provided in such Security) require payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Securities, other than exchanges pursuant to Section 3.04, 3.06,
9.06 and 11.07 hereof not involving any transfer.

     The Company shall not be required to (i) issue, register the transfer of, or exchange any
Security 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 such series selected for redemption under
Section 11.03 and ending at the close of business on the date of such mailing, or (ii) register the
transfer of or exchange any Security so selected for redemption in whole or in part, except in the
case of any Security to be redeemed in part, the portion thereof not to be redeemed.

     Section 3.06. Mutilated, Destroyed, Lost and Stolen Securities. If (i) any mutilated
Security is surrendered to the Trustee, or the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Security, and (ii) there is delivered to the
Company and the Trustee such security or indemnity as may be required by them to save each 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 may in its discretion execute and upon request of
the Company the Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Security, a new Security of like tenor, terms, series,
Scheduled Maturity Date, and principal amount, 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 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 the same 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.

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     Section 3.07. Payment of Interest; Interest Rights Preserved. Interest on any Security which
is payable and is punctually paid or duly provided for on any Interest Payment Date shall, if so
provided in such Security, 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 applicable Record Date,
notwithstanding any transfer or exchange of such Security subsequent to such Record Date and prior
to such Interest Payment Date. (unless such Interest Payment Date is also the date of Maturity of
such Security).

     Any interest on any Security 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 registered Holder on the applicable Record Date by virtue of his having been such
Holder; and, except as hereinafter provided, such Defaulted Interest may be paid by the Company, at
its election in each case, as provided in clause (a) or clause (b) below:

     (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names any such Securities (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 such Security 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 nor 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 the Holder of each such Security at his address as it
appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice
of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been
mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such
Securities (or their respective Predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the following clause (b).

     (b) The Company may make payment of any Defaulted Interest 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

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the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

     Interest on Securities of any series that bear interest may be paid by mailing a check to the
address of the Person entitled thereto at such address as shall appear in the Securities Register
for such series or by such other means as may be specified in the form of such Security.

     Subject to the foregoing provisions of this Section 3.07 and the provisions of Section 3.05
hereof, each Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Security.

     Section 3.08. Persons Deemed Owners. Prior to due presentment of a Security for registration
of transfer, the Company, the Trustee, and any agent of the Company or the Trustee may treat the
Person in whose name any Security is registered on the applicable Record Date(s) as the owner of
such Security for the purpose of receiving payment of principal, premium, if any, interest, if any
(subject to Sections 3.05 and 3.07 hereof), and any additional amounts payable with respect to 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.

     None of the Company, the Trustee, any Authenticating Agent, any Paying Agent, the Security
Registrar, or any Co-Security Registrar will have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership interests of a Security
in global form or for maintaining, supervising or reviewing any records relating to such beneficial
ownership interests and each of them may act or refrain from acting without liability on any
information relating to such records provided by the Depositary.

     Section 3.09. Cancellation. All Securities surrendered for payment, redemption, registration
of transfer, exchange, or credit against a sinking or analogous fund shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and, if not already canceled, 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 all Securities so delivered shall be promptly canceled by the Trustee.
Acquisition of such Securities by the Company shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are delivered to the
Trustee for cancellation. No Security 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.
The Trustee shall dispose of all canceled Securities in accordance with its customary procedures
and deliver a certificate of such disposition to the Company.

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     Section 3.10. Computation of Interest. Unless otherwise provided as contemplated in Section
3.01, interest on the Securities shall be calculated on the basis of a 360-day year of twelve
30-day months.

ARTICLE 4

Satisfaction and Discharge

     Section 4.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to be of
further effect with respect to any series of Securities (except as to any surviving rights of
conversion or transfer or exchange of Securities of such series expressly provided for herein or in
the form of Security for such series), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture as to such series, when

     (a) either

     (i) all Securities of that series theretofore authenticated and delivered (other than
(A) Securities of such series which have been destroyed, lost, or stolen and which have
been replaced or paid as provided in Section 3.06, and (B) Securities of such series for
whose payment money has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or discharged from such trust,
as provided in Section 4.07) have been delivered to the Trustee canceled or for
cancellation; or

     (ii) all such Securities of that series not theretofore delivered to the Trustee
canceled or for cancellation

     (A) have become due and payable, or

     (B) will, in accordance with their Scheduled Maturity Date, become due and
payable within one year, or

     (C) 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, in any of the cases described in subparagraphs (A), (B), or(C) above, the Company has
irrevocably deposited or caused to be deposited with the Trustee, as trust funds in trust for the
purpose, (x) an amount in money sufficient, (y) U.S. Government Obligations or Equivalent
Government Securities 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 sufficient, or (z) a combination of (x) and (y) sufficient, in the opinion with

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respect to (y) and (z) of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, to pay and discharge the entire
indebtedness on such Securities with respect to principal, premium, if any, and interest, if any,
to the date of such deposit (in the case of Securities which have become due and payable), or to
the Scheduled Maturity Date or Redemption Date, as the case may be; provided, however, that if such
U.S. Government Obligations or Equivalent Government Securities are callable or redeemable at the
option of the issuer thereof, the amount of such money, U.S. Government Obligations, and Equivalent
Government Securities deposited with the Trustee must be sufficient to pay and discharge the entire
indebtedness referred to above if such issuer elects to exercise such call or redemption provisions
at any time prior to the Scheduled Maturity Date or Redemption Date, as the case may be. The
Company, but not the Trustee, shall be responsible for monitoring any such call or redemption
provision; and

     (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company
with respect to the Securities of such series; and

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

     Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company under paragraph (a) of this Section 4.01 and its
obligations to the Trustee with respect to that series under Section 6.07 shall survive, and the
obligations of the Trustee under Sections 4.05, 4.07 and 10.03 shall survive.

     Section 4.02. Discharge and Defeasance.

     The provisions of this Section and Section 4.04 (insofar as relating to this Section) shall
apply to the Securities of each series unless specifically otherwise provided in a Board Resolution
or indenture supplemental hereto provided pursuant to Section 3.01. In addition to discharge of
this Indenture pursuant to Section 4.01, in the case of any series of Securities with respect to
which the exact amount described in subparagraph (a) of Section 4.04 can be determined at the time
of making the deposit referred to in such subparagraph (a), the Company shall be deemed to have
paid and discharged the entire indebtedness on all the Securities of such a series as provided in
this Section on and after the date the conditions set forth in Section 4.04 are satisfied, and the
provisions of this Indenture with respect to the Securities of such series shall no longer be in
effect (except as to (i) rights of registration of transfer and exchange of Securities of such
series, (ii) substitution of mutilated, destroyed, lost or stolen Securities of such series, (iii)
rights of Holders of Securities of such series to receive, solely from the trust fund described in
subparagraph (a) of Section 4.04, payments of principal thereof, premium, if any, and interest, if
any, thereon upon the original

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stated due dates or upon the Redemption Dates therefor (but not upon acceleration), and
remaining rights of the Holders of Securities of such series to receive mandatory sinking fund
payments, if any, (iv) the rights, obligations, duties and immunities of the Trustee hereunder, (v)
this Section 4.02, Section 4.07, Section 10.02 and Section 10.03 and (vi) the rights of the Holders
of Securities of such series as beneficiaries hereof with respect to the property so deposited with
the Trustee payable to all or any of them) (hereinafter called “Defeasance”), and the Trustee at
the cost and expense of the Company, shall execute proper instruments acknowledging the same.

     Section 4.03. Covenant Defeasance.

     The provisions of this Section and Section 4.04 (insofar as relating to this Section) shall
apply to the Securities of each series unless specifically otherwise provided in a Board Resolution
or indenture supplemental hereto provided pursuant to Section 3.01. In the case of any series of
Securities with respect to which the exact amount described in subparagraph (a) of Section 4.04 can
be determined at the time of making the deposit referred to in such subparagraph (a), (i) the
Company shall be released from its obligations under any covenants specified in or pursuant to
Section 3.01 as being subject to Covenant Defeasance with respect to such series (except as to (a)
rights of registration of transfer and exchange of Securities of such series and rights under
Section 4.07, Section 10.02 and Section 10.03, (b) substitution of mutilated, destroyed, lost or
stolen Securities of such series, (c) rights of Holders of Securities of such series to receive,
from the Company pursuant to Section 10.01, payments of principal thereof and interest, if any,
thereon upon the original stated due dates or upon the Redemption Dates therefor (but not upon
acceleration), and remaining rights of the Holders of Securities of such series to receive
mandatory sinking fund payments, if any, (d) the rights, obligations, duties and immunities of the
Trustee hereunder and (e) the rights of the Holders of Securities of such series as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to all or any of them),
and (ii) the occurrence of any event specified in Section 5.01(d) (with respect to any of the
covenants specified in or pursuant to Section 3.01 as being subject to Covenant Defeasance with
respect to such series) shall be deemed not to be or result in a default or an Event of Default, in
each case with respect to the Outstanding Securities of such series as provided in this Section on
and after the date the conditions set forth in Section 4.04 are satisfied (hereinafter called
“Covenant Defeasance”), and the Trustee at the cost and expense of the Company, shall execute
proper instruments acknowledging the same. For this purpose, such Covenant Defeasance means that
the Company may omit to comply with and shall have no liability in respect of any term, condition
or limitation set forth in any such covenant (to the extent so specified in the case of Section
5.01(d)), whether directly or indirectly by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document, but the

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remainder of this Indenture and the Securities of such series shall be unaffected thereby.

     Section 4.04. Conditions To Defeasance Or Covenant Defeasance.

     The following shall be the conditions to application of either Section 4.02 or Section 4.03 to
the Outstanding Securities:

     (a) with reference to Section 4.02 or Section 4.03, the Company has irrevocably deposited or
caused to be irrevocably deposited with the Trustee as funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of Securities of such series (i)
money in an amount, or (ii) U.S. Government Obligations or Equivalent Government Securities 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 (ii) and (iii)) 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
mandatory sinking fund payments) of, premium, if any, and interest on, the Outstanding Securities
of such series on the dates such installments of interest, premium or principal are due, including
upon redemption; provided, however, that if such U.S. Government Obligations and Equivalent
Government Securities are callable or redeemable at the option of the issuer thereof, the amount of
such money, U.S. Government Obligations, and/or Equivalent Government Securities deposited with the
Trustee must be sufficient to pay and discharge the entire indebtedness referred to above if the
issuer of any such U.S. Government Obligations or Equivalent Government Securities elects to
exercise such call or redemption provisions at any time prior to the Scheduled Maturity Date or
Redemption Date of such Securities, as the case may be. The Company, but not the Trustee, shall be
responsible for monitoring any such call or redemption provision.

     (b) in the case of Defeasance under Section 4.02, the Company has delivered to the Trustee an
Opinion of Counsel based on the fact that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (y) since the date hereof, there has been a
change in the applicable United States federal income tax law, in either case to the effect that,
and such opinion shall confirm that, 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 and discharge and will be subject to federal income tax on the same amount and in the
same manner and at the same times, as would have been the case if such deposit, Defeasance and
discharge had not occurred;

     (c) in the case of Covenant Defeasance under Section 4.03, the Company has delivered to the
Trustee an Opinion of Counsel to the effect that, and such opinion shall confirm that, the Holders
of the Securities of such series

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will not recognize income, gain or loss for federal income tax purposes as a result of such
deposit and Covenant Defeasance and will be subject to federal income tax on the same amount and in
the same manner and at the same times, as would have been the case if such deposit and Covenant
Defeasance had not occurred;

     (d) no Event of Default or event which, with notice or lapse of time or both, would become an
Event of Default with respect to the Securities of such series shall have occurred and be
continuing on the date of such deposit, after giving effect to such deposit or, in the case of a
Defeasance under Section 4.02, no Event of Default specified in Section 5.01(e) or Section 5.01(f)
shall have occurred, at any time during the period ending on the 91st day after the date of such
deposit or, if longer, ending on the day following the expiration of the longest preference period
applicable to the Company in respect of such deposit (it being understood that this condition shall
not be deemed satisfied until the expiration of such period);

     (e) such Defeasance or Covenant Defeasance will not cause the Trustee to have a conflicting
interest within the meaning of the TIA, assuming all Securities of a series were in default within
the meaning of the TIA;

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

     (g) such Defeasance or Covenant Defeasance will not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act of
1940, as amended, unless the trust is registered under such Act or exempt from registration;

     (h) If the Securities of such series are to be redeemed prior to their Stated Maturity Date
(other than from mandatory sinking fund payments or analogous payments), notice of such redemption
shall have been duly given pursuant to this Indenture or provision therefor satisfactory to the
Trustee shall have been made; and

     (i) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for herein relating to such Defeasance
or Covenant Defeasance, as the case may be, have been complied with.

     Section 4.05. Application of Trust Money; Excess Funds. All money and U.S. Government
Obligations or Equivalent Government Securities (including the proceeds thereof) deposited with the
Trustee pursuant to Section 4.01 or Section 4.04 hereof shall be held in trust and applied by it,
in accordance with the provisions of this Indenture and of the series of Securities in respect of
which it was deposited, to the payment, either directly or through any Paying Agent (including the
Company acting as its own Paying Agent), as the Trustee may

32

 

determine, to the Persons entitled thereto, of the principal, premium, if any, and interest,
if any, for whose payment such money has been deposited with the Trustee; but such money need not
be segregated from other funds except to the extent required by law.

     The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or U.S. Government Obligations or Equivalent Government Securities
deposited pursuant to Section 4.01 or Section 4.04 hereof or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for the account of the
Holders of the Outstanding Securities.

     Anything in this Article 4 to the contrary notwithstanding, the Trustee shall deliver or pay
to the Company from time to time upon Company Request any money or U.S. Governmental Obligations or
Equivalent Government Securities held by it as provided in Section 4.01 or Section 4.04 which, in
the opinion of a nationally recognized investment bank, appraisal firm or firm of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, (which may be the opinion delivered under Section 4.01 or Section 4.04,
as applicable), are in excess of the amount thereof that would then be required to be deposited to
effect an equivalent satisfaction and discharge, Covenant Defeasance or Defeasance of the
applicable series.

     Section 4.06. Paying Agent to Repay Moneys Held. Upon the satisfaction and discharge of this
Indenture, all moneys then held by any Paying Agent of the Securities (other than the Trustee)
shall, upon demand of the Company, be repaid to it or paid to the Trustee, and thereupon such
Paying Agent shall be released from all further liability with respect to such moneys.

     Section 4.07. Return of Unclaimed Amounts. Any amounts deposited with or paid to the Trustee
or any Paying Agent or then held by the Company, in trust for payment of the principal of, premium,
if any, or interest, if any, on the Securities and not applied but remaining unclaimed by the
Holders of such Securities for two years after the date upon which the principal of, premium, if
any, or interest, if any, on such Securities, as the case may be, shall have become due and
payable, shall be repaid to the Company by the Trustee on Company Request or (if then held by the
Company) shall be discharged from such trust; and the Holder of any of such Securities shall
thereafter look only to the Company for any payment which such Holder may be entitled to collect
(until such time as such unclaimed amounts shall escheat, if at all, to the State of New York) 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. Notwithstanding the foregoing,
the Trustee or Paying Agent, before being required to make any such repayment, may at the expense
of the Company cause to be published once a week for two successive weeks (in each case on any day
of the week) in a newspaper printed in the English language and customarily

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published at least once a day at least five days in each calendar week and of general
circulation in the Borough of Manhattan, in the City and State of New York, a notice that said
amounts have not been so applied and that after a date named therein any unclaimed balance of said
amounts then remaining will be promptly returned to the Company.

ARTICLE 5

Remedies

     Section 5.01. Events of Default. “Event of Default”, wherever used herein, means with
respect to any series of Securities any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected by operation of
law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body), unless such event is either inapplicable to a particular
series or it is specifically deleted or modified in the manner contemplated by Section 3.01:

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

     (b) default in the payment of the principal amount of (or premium, if any, on) any Security of
such series as and when the same shall become due, either at Maturity, upon redemption, by
declaration, or otherwise; or

     (c) default in the payment of any sinking or purchase fund or analogous obligation when the
same becomes due by the terms of the Securities of such series and continuance of such default for
a period of 30 days; or

     (d) default in the performance or breach of any covenant or warranty of the Company in this
Indenture in respect of the Securities of such series (other than a covenant or warranty in respect
of the Securities of such series a default in the performance of which or the breach of which is
elsewhere in this Section specifically dealt with), and continuance of such default or breach for a
period of 90 days after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least 51% in the principal
amount of the Outstanding Securities of such 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

     (e) the entry of an order for relief against the Company under the Federal Bankruptcy Act by a
court having jurisdiction in the premises or a decree or order by a court having jurisdiction in
the premises adjudging the Company a bankrupt or insolvent under any other applicable Federal or
State law, or the entry of a decree or order approving as properly filed a petition seeking
reorganization,

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arrangement, adjustment or composition of or in respect of the Company under the Federal
Bankruptcy Code or any other applicable Federal or State law, or appointing a 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 unstayed and in effect for a period of 90 consecutive days; or

     (f) the consent by the Company to the institution of bankruptcy or insolvency proceedings
against it, or the filing by it of a petition or answer or consent seeking reorganization or relief
under the Federal Bankruptcy Code or any other applicable Federal or State law, or the consent by
it to the filing of any such petition or to the appointment of a 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

     (g) any other Event of Default provided for with respect to the Securities of such series in
accordance with Section 3.01.

     A default under any indebtedness of the Company other than the Securities will not constitute
an Event of Default under this Indenture, and a default under one series of Securities will not
constitute a default under any other series of Securities.

     Section 5.02. Acceleration of Maturity; Rescission, and Annulment. If any Event of Default
described in Section 5.01 above (other than Event of Default described in Section 5.01(e) and
Section 5.01(f)) shall have occurred and be continuing with respect to any series, then and in each
and every such case, unless the principal of all the Securities of such series shall have already
become due and payable, either the Trustee or the Holders of not less than 51% in aggregate
principal amount of the Securities of such series then Outstanding hereunder, by notice in writing
to the Company (and to the Trustee if given by Holders), may declare the principal amount (or, if
the Securities of such series are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of that series) of all the Securities of such series and
any and all accrued interest thereon to be due and payable immediately, and upon any such
declaration the same shall become and shall be immediately due and payable, any provision of this
Indenture or the Securities of such series to the contrary notwithstanding. If an Event of Default
specified in Section 5.01(e) or Section 5.01(f) occurs, the principal amount of the Securities of
such series and any and all accrued interest thereon shall immediately become and be due and
payable without any declaration or other act on the party of the Trustee or any Holder. No
declaration of acceleration by the Trustee with respect to any series of Securities shall
constitute a declaration of acceleration by the Trustee with respect to any other series of
Securities, and no declaration of acceleration by the Holders of at

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least 51% in aggregate principal amount of the Outstanding Securities of any series shall
constitute a declaration of acceleration or other action by any of the Holders of any other series
of Securities, in each case whether or not the Event of Default on which such declaration is based
shall have occurred and be continuing with respect to more than one series of Securities, and
whether or not any Holders of the Securities of any such affected series shall also be Holders of
Securities of any other such affected series.

     At any time after such a declaration of acceleration has been made with respect to the
Securities of any series 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 51%
in aggregate principal amount of the Outstanding Securities of such series, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its consequences if all
Events of Default with respect to such series of Securities, other than the nonpayment of the
principal of the Securities of such series which have become due solely by such acceleration, have
been cured or waived as provided in Section 5.13, if such cure or waiver does not conflict with any
judgment or decree set forth in Section 5.01(e) and Section 5.01(f) and if all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel have been paid.

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

     Section 5.03. Collection of Indebtedness and Suits for Enforcement by Trustee. The Company
covenants that if:

     (a) default is made in the payment of any installment of interest on any Security of any
series when such interest becomes due and payable, or

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

     (c) default is made in the payment of any sinking or purchase fund or analogous obligation
when the same becomes due by the terms of the Securities of any series, and

     (d) any such default continues for any period of grace provided in relation to such default
pursuant to Section 5.01,

then, with respect to the Securities of such series, the Company will, upon demand of the Trustee,
pay to it, for the benefit of the Holder of any such Security (or the Holders of any such series in
the case of clause (c) above), the whole amount then due and payable on any such Security (or on
the Securities of any such series in the case of clause (c) above) for principal (and premium, if
any) and interest, if any, with interest (to the extent that payment of such interest shall be

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legally enforceable) upon the overdue principal (and premium, if any) and upon overdue installments
of interest, if any, at such rate or rates as may be prescribed therefor by the terms of any such
Security (or of Securities of any such series in the case of clause (c) above); 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 and all other amounts due the Trustee under Section 6.07.

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

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

     Section 5.04. Trustee May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition, or other
judicial proceeding relative to the Company or any other obligor upon the Securities or the
property of the Company or of such other obligor or their creditors, the Trustee (irrespective of
whether the principal of the Securities shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the
Company for the payment of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceedings or otherwise,

     (a) to file and prove a claim for the whole amount of principal (or, with respect to Original
Discount Securities, such portion of the principal amount as may be specified in the terms of such
Securities), premium, if any, and interest, if any, owing and unpaid in respect of the Securities,
and to file such other papers or documents as may be necessary and advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements, and advances of the Trustee, its agents and counsel, and all other amounts due the
Trustee under Section 6.07) and of the Securityholders allowed in such judicial proceedings, and

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     (b) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same; and any receiver, assignee, trustee, liquidator, sequestrator
(or other similar official) in any such judicial proceeding is hereby authorized by each
Securityholder 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 Securityholders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee and its agent and counsel, and any other amounts due the Trustee under Section 6.07 hereof.

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

     Section 5.05. Trustee May Enforce Claims Without Possession of Securities. All rights of
action and claims under this Indenture or the Securities of any series may be prosecuted and
enforced by the Trustee without the possession of any of the Securities of such series 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 and its agents and counsel, be for the ratable benefit of
the Holders of the Securities, of the series in respect of which such judgment has been recovered.

     Section 5.06. Application of Money Collected. Any money collected by the Trustee with
respect to a series of Securities 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, premium, if any, or interest, if any, upon presentation of the Securities of such
series 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 6.07 hereof.

     Second: To the payment of the amounts then due and unpaid upon the Securities of that series
for principal, premium, if any, interest, if any, and additional amounts, if any, in respect of
which or for the benefit of which such money has been collected, ratably, without preference or
priority of any kind.

     Section 5.07. Limitation on Suits. No Holder of any Security of any series shall have any
right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder, unless

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

     (b) the Holders of not less than 51% in principal amount of the Outstanding Securities of such
series shall have made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

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

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

     (e) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities
of such series; it being understood and intended that no one or more Holders of Securities of such
series 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 Holders of Securities of
such series, or to obtain or to seek to obtain priority or preference over any other such Holders
or to enforce any right under this Indenture, except in the manner herein provided and for the
equal and proportionate benefit of all the Holders of all Securities of such series.

     Section 5.08. Unconditional Right of Securityholders 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, premium,
if any, and (subject to Section 3.07) interest, if any, (and additional amounts, if any) on such
Security on or after the respective payment dates expressed in such Security (or, in the case of
redemption or repayment, on the Redemption Date or Repayment Date, as the case may be) and to
institute suit for the enforcement of any such payment on or after such respective date, and such
right shall not be impaired or affected without the consent of such Holder.

     Section 5.09. Restoration of Rights and Remedies. If the Trustee or any Securityholder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, then and in every such case the Company, the
Trustee and the Securityholders shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter all rights and
remedies of the Trustee and the Securityholders shall continue as though no such proceeding had
been instituted.

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     Section 5.10. Rights and Remedies Cumulative. No right or remedy herein conferred upon or
reserved to the Trustee or to the Securityholders is intended to be exclusive of any other right or
remedy, and every right or 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 5.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Security 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 Securityholders may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Securityholders, as the case may be.

     Section 5.12. Control by Securityholders. The Holders of a majority in principal amount of
the Outstanding Securities of any series shall have the right to direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee with respect to the Securities of such series, provided that

     (a) the Trustee shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, determines that the action so directed may not lawfully be taken or would
conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer,
determine that the proceedings so directed would involve it in personal liability or be unjustly
prejudicial to the Holders not taking part in such direction, and

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

     Section 5.13. 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 not theretofore cured:

     (a) in the payment of principal, premium, if any, or interest, if any, on any Security of such
series, or in the payment of any sinking or purchase fund or analogous obligation with respect to
the Securities of such series, or

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

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

     Section 5.14. Undertaking for Costs. All parties to this Indenture agree, and each Holder of
any Security by his 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 or omitted by it as Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant; but the provisions of this Section shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholder or group of
Securityholders holding in the aggregate more than 10% in principal amount of the Outstanding
Securities of any series to which the suit relates, or to any suit instituted by any Securityholder
for the enforcement of the payment of principal, premium, if any, or interest, if any, on any
Security on or after the respective payment dates expressed in such Security (or, in the case of
redemption or repayment, on or after the Redemption Date or Repayment Date).

     Section 5.15. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law (other than any bankruptcy
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 6

The Trustee

     Section 6.01. Certain Duties and Responsibilities of Trustee. (a) Except during the
continuance of an Event of Default with respect to any series of Securities,

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

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     (ii) in the absence of bad faith on its part, the Trustee may, with respect to
Securities of such series, conclusively rely upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in the case of any
such certificates or opinions which by any provision hereof are specifically required to
be furnished to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture.

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

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

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

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

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

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

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

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     Section 6.02. Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to Securities of any series, the Trustee shall transmit by mail to all
Securityholders of such series, as their names and addresses appear in the Security Register,
notice of such default hereunder known to the Trustee, unless such default shall have been cured or
waived; provided, however, that, except in the case of a default in the payment of the principal,
premium, if any, or interest, if any, on any Security of such series or in the payment of any
sinking or purchase fund installment or analogous obligation with respect to Securities of such
series, the Trustee shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or Responsible Officers of
the Trustee in good faith determine that the withholding of such notice is in the interests of the
Securityholders of such series and; provided, further, that, in the case of any default of the
character specified in Section 5.01(d) with respect to Securities of such series, no such notice to
Securityholders of such series shall be given until at least 60 days after the occurrence thereof.
For the purpose of this Section, the term “default”, with respect to Securities of any series,
means any event which is, or after notice or lapse of time or both would become, an Event of
Default with respect to Securities of such series.

     Section 6.03. Certain Rights of Trustee. Except as otherwise provided in Section 6.01
above:

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

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

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

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

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Securityholders pursuant to this
Indenture, unless such Securityholders shall have

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offered to the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or direction;

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

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

     Section 6.04. Not Responsible for Recitals or Issuance of Securities. The recitals
contained herein and in the Securities, except the certificates of authentication, shall be taken
as the statements of the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by the Company of
Securities or the proceeds thereof.

     Section 6.05. May Hold Securities. The Trustee or any Paying Agent, Security Registrar, or
other agent of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 6.08 and 6.13 hereof, may otherwise deal with the
Company with the same rights it would have if it were not Trustee, Paying Agent, Security
Registrar, or such other agent.

     Section 6.06. Money Held in Trust. Money held by the Trustee 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 6.07. Compensation and Reimbursement. The Company covenants and agrees

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

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

     (c) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or
expense incurred without negligence or bad faith on its part, arising out of or in connection with
the acceptance or administration of this trust, including the reasonable 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.

     Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee incurs expenses or renders services in connection with an Event of Default specified in
Section 5.01(e) and Section 5.01(f) above, such expenses (including the reasonable charges and
expenses of its counsel) and compensation for such services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency, reorganization, or
other similar law.

     The Trustee shall have a lien prior to the Securities upon all property and funds held or
collected by it as such for any amount owing to it or any predecessor Trustee pursuant to this
Section 6.07, except with respect to funds held in trust for the benefit of the Holders of
particular Securities.

     The provisions of this Section shall survive the satisfaction and discharge of this Indenture.

     Section 6.08. Disqualification; Conflicting Interests. If the Trustee has or shall acquire
any conflicting interest within the meaning of the Trust Indenture Act, it shall either eliminate
such interest or resign as Trustee with respect to one or more series of Securities, to the extent
and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this
Indenture. To the extent permitted by such Act, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a trustee under this Indenture with respect to Securities
of more than one series or by virtue of being a trustee under: (i) the Indenture dated as of
November 15, 2002, among Bottling Group, LLC, as issuer, the Company, as guarantor, and the Trustee
relating to certain debt securities, (ii) the Indenture dated as of February 8, 1999, among Pepsi
Bottling Holdings, Inc., as obligor, the Company, as guarantor, and the Trustee relating to certain
debt securities, (iii) the Indenture dated as of December 14, 1994, between the Company and the
Trustee relating to certain debt securities, (iv) the Indenture dated as of December 2, 1993,
between the Company and the Trustee relating to certain debt securities, (v) the Indenture dated as
of September 28, 1990, between the Company and the Trustee relating to certain debt securities,
(vi) the Indenture

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dated as of February 25, 1990, between the Company and the Trustee relating to certain debt
securities, (vii) the Indenture dated as of October 15, 1986, between the Company and the Trustee
relating to certain debt securities, (viii) the Indenture dated as of October 1, 1986, between the
Company and the Trustee relating to the Company’s Euro-Medium-Term Notes, (ix) the Trust Agreement
with Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities Financing
Authority (the “Authority”) dated as of November 15, 1983, under which the Authority assigned
certain rights under a Loan Agreement dated November 15, 1983, between the Authority and the
Company, including the right to payment from the Company of amounts sufficient to enable the
Authority to pay principal and interest and redemption payments (including redemption premium, if
any) on the bonds issued under said Trust Agreement, (x) the Indenture dated as of March 2, 1982,
among PepsiCo Capital Corporation N.V., the Company, as guarantor, and the Trustee relating to the
PepsiCo Capital Corporation N.V. Zero Coupon Guaranteed Notes due 1994, and (xi) the Indenture
dated as of April 1, 1982, among PepsiCo Capital Resources, Inc., the Company, as guarantor, and
the Trustee relating to the PepsiCo Capital Resources, Inc. Zero Coupon Serial Guaranteed
Debentures Due 1988-2012.

     Section 6.09. Corporate Trustee Required; Eligibility. There shall at all times be a
Trustee hereunder with respect to each series of Securities that shall be a corporation organized
and doing business under the laws of the United States of America or of any State or Territory
thereof or of 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, and subject to supervision
or examination by Federal or State authority and having its principal office and place of business
in the City of New York, if there be such a corporation having its principal office and place of
business in said City and willing to act as Trustee on customary and usual terms. 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. If at any
time the Trustee with respect to any series of Securities shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

     Section 6.10. Resignation and Removal; Appointment of Successor. (a) No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee under Section 6.11.

     (b) The Trustee may resign with respect to any one or more series of Securities at any time by
giving at least 60 days’ written notice thereof to the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of
such notice of

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resignation, the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

     (c) The Trustee may be removed with respect to any series of Securities at any time by Act of
the Holders of 66 2/3% in principal amount of the Outstanding Securities of that series, delivered
to the Trustee and to the Company.

     (d) If at any time:

     (i) the Trustee shall fail to comply with Section 6.08 above with respect to any
series of Securities after written request therefor by the Company or by any
Securityholder who has been a bona fide Holder of a Security of that series for at least 6
months, or

     (ii) the Trustee shall cease to be eligible under Section 6.09 above with respect to
any series of Securities and shall fail to resign after written request therefor by the
Company or by any such Securityholder, or

     (iii) the Trustee shall become incapable of acting with respect to any series of
Securities, or

     (iv) the Trustee shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case (A) the Company may remove the
Trustee, with respect to the series or, in the case of clause (iv), with respect to all
series, or (B) subject to Section 5.14, any Securityholder who has been a bona fide Holder
of a Security of such series for at least 6 months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee with respect to the series or, in
the case of clause (iv), with respect to all series.

     (e) If the Trustee shall resign, be removed or become incapable of acting with respect to any
series of Securities, or if a vacancy shall occur in the office of Trustee with respect to any
series of Securities for any cause, the Company shall promptly appoint a successor Trustee for that
series of Securities. If, within one year after such resignation, removal or incapacity, or the
occurrence of such vacancy, a successor Trustee with respect to such series of Securities shall be
appointed by Act of the Holders of 66 2/3% in principal amount of the Outstanding Securities of
such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed
shall, forthwith upon its acceptance of such appointment, become the successor Trustee with respect
to such series and supersede the successor Trustee appointed by the Company with respect to such
series. If no successor Trustee with respect to such series shall have been so appointed by the
Company or the Securityholders of such series and accepted

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appointment in the manner hereinafter provided, any Securityholder who has been bona fide
Holder of a Security of that series for at least 6 months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to such series.

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

     Section 6.11. Acceptance of Appointment by Successor. Every successor Trustee appointed
hereunder with respect to all series of Securities shall execute, acknowledge and deliver to the
Company and to the predecessor Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the predecessor Trustee shall become effective, and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the predecessor Trustee with respect to any such series; but, on
request of the Company or the successor Trustee, such predecessor Trustee shall, upon payment of
its reasonable charges, if any, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the predecessor Trustee, and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such predecessor
Trustee hereunder.

     In case of the appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the predecessor Trustee and each successor Trustee
with respect to the Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which (1) shall contain such provisions as shall be deemed necessary or
desirable to transfer and to conform to, and to vest in, each successor Trustee all the rights,
powers, trusts and duties of the predecessor Trustee with respect to the Securities of any series
as to which the appointment of such successor Trustee relates and (2) if the predecessor Trustee is
not retiring with respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties of the predecessor
Trustee with respect to the Securities of any series as to which the predecessor Trustee is not
being succeeded shall continue to be vested in the predecessor Trustee, and (3) shall add to or
change any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and
apart from any trust or trusts hereunder administered by any other such Trustee; and upon the
execution and delivery of such supplemental indenture the resignation or removal

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

     Upon request of any such successor Trustee, the Company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in the first or second preceding paragraph, as the case may be.

     No successor Trustee with respect to any series of Securities shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be qualified and eligible with
respect to that series under this Article.

     Section 6.12. Merger, Conversion, Consolidation or Succession to Business. Any corporation
into which the Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the corporate trust business of
the Trustee, shall be the successor of the Trustee hereunder, provided that 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 Trustee by
merger, conversion or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.

     Section 6.13. Preferential Collection of Claims Against Company. If and when the Trustee
shall be or shall become a creditor, of the Company (or of any other obligor upon the Securities),
the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Company (or against any such other obligor, as the case may be).

     Section 6.14. Appointment of Authenticating Agent. At any time when any of the Securities
remain Outstanding the Trustee, with the approval of the Company, 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 exchange,
registration of transfer or partial redemption thereof or pursuant to Section 3.06, 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.

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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 or
the District of Columbia, authorized under such laws to act as an Authenticating Agent, having a
combined capital and surplus of not less than $50,000,000 and, if other than the Company itself,
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, if other than the Company, 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, if other
than the Company, 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, with the approval of the Company, 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.

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     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 alternate 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.

The Bank of New York, as Trustee

By:

           As Authenticating Agent

By:

           Authorized Signatory

ARTICLE 7

Securityholders’ Lists and Reports by Trustee and Company

     Section 7.01. Company to Furnish Trustee Names and Addresses of Securityholders. The
Company will furnish or cause to be furnished to the Trustee:

     (a) semiannually, not more than 15 days after January 1 and July 1 in each year, in such form
as the Trustee may reasonably require, a list of the names and addresses of the Holders of
Securities of each series as of such date, and

     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished, provided that if the Trustee shall be
the Security Registrar for such series, such list shall not be required to be furnished.

     Section 7.02. Preservation of Information; Communications to Securityholders. (a) The
Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses
of Holders of Securities contained in the most recent list furnished to the Trustee as provided in
Section 7.01 and the names and addresses of Holders of Securities received by the Trustee in its
capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.01 upon receipt of a new list so furnished.

     (b) If three or more Holders of Securities of any series (hereinafter referred to as
“applicants”) apply in writing to the Trustee, and furnish to the Trustee reasonable proof that
each such applicant has owned a Security of such series for a period of at least six months
preceding the date of such application, and such application states that the applicants desire to
communicate with other

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Holders of Securities of such series or with the Holders of all Securities with respect to
their rights under this Indenture or under such Securities and is accompanied by a copy of the form
of proxy or other communication which such applicants propose to transmit, then the Trustee shall,
within five Business Days after the receipt of such application, at its election, either:

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

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

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

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders of Securities in
accordance with Section 7.02(b), regardless of the source from which such

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information was derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under Section 7.02(b).

     Section 7.03. Reports by Trustee. (a) The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. If required by
Section 313(a) of the Trust Indenture Act, the Trustee shall, within 60 days after each May 15
following the date of this Indenture, deliver to each Holder, as provided in Trust Indenture Act
Section 313(c), a brief report dated as of such May 15, which complies with the provisions of such
Section 313(a).

     (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange upon which any Securities are listed, with the Commission and
with the Company as required by Trust Indenture Act Section 313(d). The Company will promptly
notify the Trustee when any Securities are listed on any stock exchange.

     Section 7.04. Reports by Company. The Company will:

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

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

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

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ARTICLE 8

Consolidation, Merger, Conveyance or Transfer

     Section 8.01. Company May Consolidate, etc., Only on Certain Terms. The Company shall not
consolidate with or merge into any other corporation or convey or transfer all or substantially all
of its properties and assets to any Person, unless;

     (a) either the Company shall be the continuing corporation, or the corporation formed by such
consolidation or into which the Company is merged or the Person which acquires by conveyance or
transfer all or substantially all of the properties and assets of the Company shall be a
corporation organized and existing under the laws of the United States of America or any State 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, premium, if any, and interest, if any, on all the Securities and the performance of
every covenant of this Indenture on the part of the Company to be performed or observed;

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

     (c) the Company has delivered to the Trustee an Opinion of Counsel as conclusive evidence that
any such consolidation, merger, conveyance or transfer and any assumption permitted or required by
this Article complies with the provisions of this Article.

     Section 8.02. Successor Corporation Substituted. Upon any consolidation or merger, or any
conveyance or transfer of all or substantially all of the properties and assets of the Company in
accordance with Section 8.01, the successor corporation formed by such consolidation or into which
the Company is merged or the Person to which such conveyance or transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor corporation had been named as the Company herein and the
Company shall thereupon be released from all obligations hereunder and under the Securities. Such
successor corporation thereupon may cause to be signed and may issue any or all of the Securities
issuable hereunder which theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor corporation, instead of the Company, and subject to
all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities which previously shall have been signed and delivered
by the officers of the Company to the Trustee for authentication, and any Securities which such
successor corporation thereafter shall cause to be signed and delivered to the Trustee for that
purpose. All of the Securities so issued shall in all respects have the same legal rank and benefit

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under this Indenture as the Securities theretofore or thereafter issued in accordance with the
terms of this Indenture as though all of such Securities had been issued at the date of the
execution hereof.

     In case of any such consolidation, merger, sale or conveyance such changes in phraseology and
form (but not in substance) may be made in the Securities thereafter to be issued as may be
appropriate.

ARTICLE 9

Supplemental Indentures

     Section 9.01. Supplemental Indentures Without Consent of Securityholders. Without the
consent of the Holders of any Securities, the Company and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto (which shall conform to the
provisions of the TIA as in force at the date of execution thereof), in form satisfactory to the
Trustee, for any of the following purposes:

     (a) to evidence the succession of another corporation to the Company, or successive
successions, and the assumption by any such successor of the covenants, agreements and obligations
of the Company pursuant to Article 8 hereof; or

     (b) to add to the covenants of the Company such further covenants, restrictions or conditions
for the protection of the Holders of the Securities of any or all series as the Company and the
Trustee shall consider to be for the protection of the Holders of the Securities of any or all
series or to surrender any right or power herein conferred upon the Company (and if such covenants
or the surrender of such right or power are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included or such surrenders are
expressly being made solely for the benefit of one or more specified series); or

     (c) to cure any ambiguity, to correct or supplement any provision herein which may be
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 that do not adversely
affect the interests of the Holders of Securities of any series in any material respect; or

     (d) to add to this Indenture such provisions as may be expressly permitted by the TIA,
excluding, however, the provisions referred to in Section 316(a)(2) of the TIA as in effect at the
date as of which this instrument is executed or any corresponding provision in any similar federal
statute hereafter enacted; or

     (e) to add guarantors or co-obligors with respect to any series of Securities; or

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     (f) to secure any series of Securities; or

     (g) to establish any form of Security, as provided in Article 2 hereof, and to provide for the
issuance of any series of Securities, as provided in Article 3 hereof, and to set forth the terms
thereof, and/or to add to the rights of the Holders of the Securities of any series; or

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

     (i) to add any additional Events of Default in respect of the Securities of any or all series
(and if such additional Events of Default are to be in respect of less than all series of
Securities, stating that such Events of Default are expressly being included solely for the benefit
of one or more specified series); or

     (j) to comply with the requirements of the Commission in connection with the qualification of
this Indenture under the TIA; or

     (k) to make any change in any series of Securities that does not adversely affect in any
material respect the interests of the Holders of such Securities.

     Section 9.02. Supplemental Indentures With Consent of Securityholders. 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 or indentures, by Act of said Holders delivered to
the Company and the Trustee, the Company and the Trustee may from time to time and at any 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 any
supplemental indenture or of modifying in any manner the rights of the Holders of the Securities of
each 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:

     (a) change the Scheduled Maturity Date or the stated payment date of any payment of premium or
interest payable on any Security, or reduce the principal amount thereof, or any amount of interest
or premium payable thereon, or

     (b) change the method of computing the amount of principal of any Security or any interest
payable thereon on any date, or change any Place of Payment where, or the coin or currency in
which, any Security or any payment of premium or interest thereon is payable, or

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     (c) impair the right to institute suit for the enforcement of any payment described in clauses
(a) or (b) on or after the same shall become due and payable, whether at Maturity or, in the case
of redemption or repayment, on or after the Redemption Date or the Repayment Date, as the case may
be; or

     (d) change or waive the redemption or repayment provisions of any series;

     (e) 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

     (f) modify any of the provisions of this Section, Section 5.13 or Section 10.07, except to
increase any such percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holder of each Outstanding Security affected
thereby; provided, however, that this clause shall not be deemed to require the consent of any
Holder with respect to changes in the references to “the Trustee” and concomitant changes in this
Section and Section 10.07, or the deletion of this proviso, in accordance with the requirements of
Sections 6.11 and 9.01(h); or

     (g) adversely affect the ranking or priority of any series;

     (h) release any guarantor or co-obligor from any of its obligations under its guarantee of the
Securities or this Indenture, except in compliance with the terms of this Indenture; or

     (i) waive any Event of Default pursuant to Section 5.01(a), Section 5.01(b) or Section 5.01(c)
hereof with respect to such Security.

     A supplemental indenture that changes or eliminates any covenant or other provision of this
Indenture that has expressly been included solely for the benefit of one or more particular series
of Securities, or that 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 Securityholders under this Section 9.02 to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     Section 9.03. Execution of Supplemental Indentures. Upon request of the Company and upon
filing with the Trustee of evidence of an Act of Securityholders as aforementioned, the Trustee
shall join with the Company in the execution of such supplemental indenture unless such
supplemental indenture

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affects the Trustee’s own rights, powers, trusts, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture. In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of the trusts created
by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 6.01) 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.

     Section 9.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be and be deemed to be modified and amended in
accordance therewith, and such supplemental indenture shall form a part of this Indenture for all
purposes; and the respective rights, limitation of rights, duties, powers, trusts and immunities
under this Indenture of the Trustee, the Company, and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be determined, exercised and enforced
thereunder to the extent provided therein.

     Section 9.05. Conformity With Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the TIA as then in effect.

     Section 9.06. Reference in Securities to Supplemental Indentures. Securities of any series
authenticated and delivered after the execution of any supplemental indenture pursuant to this
Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee
as to any matter provided for in such supplemental indenture. If the Company shall so determine,
new Securities so modified as to conform, in the opinion of the Trustee and the Company, to any
modification of this Indenture contained in any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

ARTICLE 10

Covenants

     Section 10.01. Payment of Principal, Premium and Interest. With respect to each series of
Securities, the Company will duly and punctually pay or cause to be paid the principal, premium, if
any, and interest, if any, on such Securities in accordance with their terms and this Indenture,
and will duly comply with all the other terms, agreements and conditions contained in the Indenture
for the benefit of the Securities of such series.

     Section 10.02. Maintenance of Office or Agency. So long as any of the Securities remain
outstanding, the Company will maintain an office or agency in each Place of Payment where
Securities may be presented or surrendered for

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payment, where Securities may be surrendered for registration of transfer or exchange, and
where notices and demands to or upon the Company in respect of the Securities and this Indenture
may be served. The Company will give prompt written notice to the Trustee of the location, and of
any change in the location, of such office or agency. If at any time the Company shall fail to
maintain such 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 its agent to receive all such
presentations, surrenders, notices and demands.

     Section 10.03. Money or Security Payments to Be Held in Trust. If the Company shall at any
time act as its own Paying Agent for any series of Securities, it will, on or before each due date
of the principal, premium, if any, or interest, if any, on any of the Securities of such series,
segregate and hold in trust for the benefit of the Holders of the Securities of such series a sum
sufficient to pay such principal, premium, or interest so becoming due until such sums shall be
paid to such Holders of such Securities 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, premium, if any, or interest, if any, on any
Securities of such series, deposit with a Paying Agent a sum sufficient to pay such principal,
premium, or interest so becoming due, such sum to be held in trust for the benefit of the Holders
of the Securities entitled to the same 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 for any series of Securities
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

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

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

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

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     The Company may, at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture with respect to any series of Securities 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 in respect of each and every series of Securities as to which it seeks to
discharge this Indenture or, if for any other purpose, all sums so held in trust by the Company in
respect of all Securities, 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.

     Section 10.04. Certificate to Trustee. The Company will deliver to the Trustee, within 120
days after the end of each fiscal year of the Company (beginning in 2007), an Officers’
Certificate, one of whose signatories shall be the Company’s principal executive, accounting or
financial officer, stating that in the course of the performance by the signers of their duties as
officers of the Company they would normally have knowledge of any default by the Company in the
performance of any of its covenants, conditions or agreements contained herein (without regard to
any period of grace or requirement of notice provided hereunder), stating whether or not they have
knowledge of any such default and, if so, specifying each such default of which the signers have
knowledge and the nature thereof.

     Section 10.05. Corporate Existence. Subject to Article 8 the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect its corporate existence.

     Section 10.06. Limitation on Secured Debt.

With respect to any series of Securities, other than Subordinated Securities:

     Unless otherwise provided in such series of Securities, so long as any of such Securities
shall be Outstanding, neither the Company nor any Restricted Subsidiary will incur, suffer to exist
or guarantee any indebtedness for borrowed money (“Debt”), secured by a mortgage, pledge, or lien
(a “Mortgage”) on any Principal Property or on any shares of stock of (or other interests in) any
Restricted Subsidiary unless the Company or such Restricted Subsidiary secures or causes such
Restricted Subsidiary to secure the Securities of such series (other than Subordinated Securities)
and any other Debt of the Company or such Restricted Subsidiary, at the option of the Company or
such Restricted Subsidiary, not subordinate to the Securities, equally and ratably with (or prior
to) such secured Debt, so long as such secured Debt shall be so secured, unless after giving effect
thereto the aggregate amount of all such Debt so secured does not exceed 15% of Consolidated Net
Tangible Assets. This restriction will not, however, apply to Debt secured by:

     (a) Mortgages existing prior to the original issuance of such Securities;

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     (b) Mortgages on property of, or on shares of stock of (or other interests in) or Debt of, any
corporation existing at the time such corporation becomes a Restricted Subsidiary;

     (c) Mortgages in favor of the Company or any Restricted Subsidiary;

     (d) Mortgages in favor of, or required by contracts with, any governmental bodies;

     (e) Mortgages on property, shares of stock (or other interests) or Debt existing at the time
of acquisition thereof (including acquisition through merger or consolidation) or to secure the
payment of all or any part of the purchase price thereof or construction or improvement thereon or
to secure any Debt incurred prior to, at the time of, or within 365 days after the later of the
acquisition, the completion of construction, or the commencement of full operation of such property
or within 365 days after the acquisition of such shares or Debt for the purpose of financing all or
any part of the purchase price thereof or construction thereon; and

     (f) any extension, renewal or refunding referred to in the foregoing clauses (a) to (e),
inclusive.

     The transfer of a Principal Property to an Unrestricted Subsidiary or the change in
designation from Restricted Subsidiary to Unrestricted Subsidiary which owns a Principal Property
shall not be restricted.

     Section 10.07. Waiver of Certain Covenants. The Company may omit in respect of any series
of Securities, in any particular instance, to comply with any covenant or condition set forth in
Section 10.06, if before or after the time for such compliance the Holders of at least a majority
in principal amount of the Securities at the time Outstanding of such series shall, by Act of such
Securityholders, either waive such compliance in such instance or generally waive compliance with
such covenant or condition, provided that no waiver by the Holders of the Securities of such series
shall extend to or affect such covenant 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 covenant or condition shall remain in full force and effect.

ARTICLE 11

Redemption of Securities

     Section 11.01. Applicability of Article. The Company may reserve the right to redeem and
pay before the Scheduled Maturity Date all or any part of the Securities of any series, either by
optional redemption, sinking or purchase fund or analogous obligation or otherwise, by provision
therefor in the form of Security for such series established and approved pursuant to Section 2.02
and 2.03 or as

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otherwise provided in Section 3.01, and on such terms as are specified in such form or in the
indenture supplemental hereto with respect to Securities of such series as provided in Section
3.01. Redemption of Securities of any series shall be made in accordance with the terms of such
Securities and, to the extent that this Article does not conflict with such terms, the succeeding
Sections of this Article.

     Section 11.02. Election to Redeem; Notice to Trustee. In case of any redemption at the
election of the Company, 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 and of the principal amount of Securities of such series to be redeemed. In
the case of any redemption of Securities (a) prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture, or (b) pursuant
to an election of the Company which is subject to a condition specified 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 or condition.

     Section 11.03. Selection by Trustee of Securities to be Redeemed. If fewer than all the
Securities of any series are to be redeemed, the particular Securities to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method as the Trustee shall
deem fair and appropriate, which may include provision for the selection for redemption of portions
of the principal of Securities of such series of a denomination larger than the minimum authorized
denomination for Securities of that series. Unless otherwise provided in the terms of a particular
series of Securities, the portions of the principal of Securities so selected for partial
redemption shall be equal to the minimum authorized denomination of the Securities of such series,
or an integral multiple thereof, and the principal amount which remains outstanding shall not be
less than the minimum authorized denomination for Securities of such series.

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

     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 Security redeemed or to
be redeemed only in part, to the portion of the principal of such Security which has been or is to
be redeemed.

     Section 11.04. Notice of Redemption. Notice of redemption shall be given by first-class
mail, postage prepaid, mailed not fewer than 30 nor more than 60 days prior to the Redemption Date,
to each Holder of Securities to be redeemed, at his or her address appearing in the Security
Register on the applicable Record Date.

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     All notices of redemption shall state:

     (1) the Redemption Date;

     (2) the Redemption Price, or if not then ascertainable, the manner of calculation thereof;

     (3) if fewer than all Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the respective principal amounts) of the
Securities to be redeemed, from the Holder to whom the notice is given and that on and after the
date fixed for redemption, upon surrender of such Security, a new Security or Securities of the
same series in the aggregate principal amount equal to the unredeemed portion thereof will be
issued in accordance with Section 11.07;

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

     (5) the place where such Securities are to be surrendered for payment of the Redemption Price,
which shall be the office or agency maintained by the Company in the Place of Payment pursuant to
Section 10.02 hereof; and

     (6) that the redemption is on account of a sinking or purchase fund, or other analogous
obligation, if that be the case.

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

     Section 11.05. Deposit of Redemption Price. On or prior to any Redemption Date, the Company
shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money
sufficient to pay the Redemption Price of all the Securities which are to be redeemed on that date.

     Section 11.06. Securities Payable on Redemption Date. Notice of Redemption having been
given as aforesaid, the Securities 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) such Securities shall cease to bear interest.
Upon surrender of such Securities for redemption in accordance with the notice, such Securities
shall be paid by the Company at the Redemption Price. Any installment of interest due and payable
on or prior to the Redemption Date shall be payable to the Holders of such Securities registered as
such on the relevant Record Date according to the terms and the provisions of Section 3.07 above;
unless, with respect to an Interest Payment Date that falls on a Redemption

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Date, such Securities provide that interest due on such date is to be paid to the Person to
whom principal is payable.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate
borne by the Security, or as otherwise provided in such Security.

     Section 11.07. Securities Redeemed in Part. Any Security that is to be redeemed only in
part shall be surrendered at the office or agency maintained by the Company in the Place of Payment
pursuant to Section 10.02 hereof with respect to that series (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 and at the expense of the Company, a new Security or
Securities of the same series, tenor, terms and Scheduled Maturity Date, of any authorized
denomination as requested by such Holders in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.

     Section 11.08. Provisions with Respect to any Sinking Funds. Unless the form or terms of
any series of Securities shall provide otherwise, in lieu of making all or any part of any
mandatory sinking fund payment with respect to such series of Securities in cash, the Company may
at its option (a) deliver to the Trustee for cancellation any Securities of such series theretofore
acquired by the Company, or (b) receive credit for any Securities of such series (not previously so
credited) acquired or redeemed by the Company (other than through operation of a mandatory sinking
fund) and theretofore delivered to the Trustee for cancellation, and if it does so then (i)
Securities so delivered or credited shall be credited at the applicable sinking fund Redemption
Price with respect to Securities of such series, and (ii) on or before the 60th day next preceding
each sinking fund Redemption Date with respect to such series of Securities, the Company will
deliver to the Trustee (A) an Officers’ Certificate specifying the portions of such sinking fund
payment to be satisfied by payment of cash and by the delivery or credit of Securities of such
series acquired or redeemed by the Company, and (B) such Securities, to the extent not previously
surrendered. Such Officers’ Certificate shall also state the basis for any such credit and that the
Securities for which the Company elects to receive credit have not been previously so credited and
were not acquired by the Company through operation of the mandatory sinking fund, if any, provided
with respect to such Securities and shall also state that no Event of Default with respect to
Securities of such series has occurred and is continuing. All Securities so delivered to the
Trustee shall be canceled by the Trustee and no Securities shall be authenticated in lieu thereof.

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     If the sinking fund payment or payments (mandatory or optional) with respect to any series of
Securities made in cash plus any unused balance of any preceding sinking fund payments with respect
to Securities of such series made in cash shall exceed $50,000 (or a lesser sum if the Company
shall so request), unless otherwise provided by the terms of such series of Securities, that cash
shall be applied by the Trustee on the sinking fund Redemption Date with respect to Securities of
such series next following the date of such payment to the redemption of Securities of such series
at the applicable sinking fund Redemption Price with respect to Securities of such series, together
with accrued interest, if any, to the date fixed for redemption, with the effect provided in
Section 11.06. The Trustee shall select, in the manner provided in Section 11.03, for redemption on
such sinking fund Redemption Date a sufficient principal amount of Securities of such series to
utilize that cash and shall thereupon cause notice of redemption of the Securities of such series
for the sinking fund to be given in the manner provided in Section 11.04 (and with the effect
provided in Section 11.06) for the redemption of Securities in part at the option of the Company.
Any sinking fund moneys not so applied or allocated by the Trustee to the redemption of Securities
of such series shall be added to the next cash sinking fund payment with respect to Securities of
such series received by the Trustee and, together with such payment, shall be applied in accordance
with the provisions of this Section 11.08. Any and all sinking fund moneys with respect to
Securities of any series held by the Trustee at the Maturity of Securities of such series, and not
held for the payment or redemption of particular Securities of such series, shall be applied by the
Trustee, together with other moneys, if necessary, to be deposited sufficient for the purpose, to
the payment of the principal of the Securities of such series at Maturity.

     On or before each sinking fund Redemption Date provided with respect to Securities of any
series, the Company shall pay to the Trustee in cash a sum equal to all accrued interest, if any,
to the date fixed for redemption on Securities to be redeemed on such sinking fund Redemption Date
pursuant to this Section 11.08.

     The Trustee shall not redeem any Securities with sinking fund moneys or give any notice of
redemption of Securities by operation of the applicable sinking fund during the continuance of a
default in payment of interest on Securities of such series or of any Event of Default with respect
to such series, except that if the notice of redemption of any Securities shall theretofore have
been mailed in accordance with the provisions hereof, the Trustee shall redeem such Securities if
cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance
with the terms of this Article 11. Except as aforesaid, any moneys in the sinking fund with respect
to Securities of any series at the time when any such default or Event of Default with respect to
such series shall occur, and any moneys thereafter paid into such sinking fund shall, during the
continuance of such default or Event of Default with respect to such series, be held as security
for the payment of all Securities of such series; provided, however, that in case such default or
Event of Default with respect to such series

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shall have been cured or waived as provided herein, such moneys shall thereafter be applied on
the next sinking fund payment date on which such moneys may be applied pursuant to the provisions
of this Section 11.08.

ARTICLE 12

Repayment at Option of Holders

     Section 12.01. Applicability of Article. Repayment of Securities of any series before their
Scheduled Maturity Date at the option of Holders thereof shall be made in accordance with the terms
of such Securities and (except as otherwise specified as contemplated by Section 3.01 for
Securities of any series) in accordance with this Article.

     Section 12.02. Repayment of Securities. Securities of any series subject to repayment in
whole or in part at the option of the Holders thereof will, unless otherwise provided in the terms
of such Securities, be repaid at a price equal to the principal amount thereof, together with
interest thereon accrued to the Repayment Date specified in the terms of such Securities. On or
before the Repayment Date, the Company will deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section
10.03) an amount of money sufficient to pay the Repayment Price of all the Securities which are to
be repaid on such date.

     Section 12.03. Exercise of Option. Securities of any series subject to repayment at the
option of the Holders thereof will contain an “Option to Elect Repayment” form on the reverse of
such Securities. To be repaid at the option of the Holder, any Security so providing for such
repayment, with the “Option to Elect Repayment” form on the reverse of such Security duly completed
by the Holder, must be received by the Company at the Place of Payment therefor specified in the
terms of such Security (or at such other place or places of which the Company shall from time to
time notify the Holders of such Securities) not earlier than 30 days nor later than 15 days prior
to the Repayment Date. If less than the entire principal amount of such Security is to be repaid in
accordance with the terms of such Security, the principal amount of such Security to be repaid, in
increments of $1,000 unless otherwise specified in the terms of such Security, and the denomination
or denominations of the Security or Securities to be issued to the Holder for the portion of the
principal amount of such Security surrendered that is not to be repaid must be specified. The
principal amount of any Security providing for repayment at the option of the Holder thereof may
not be repaid in part, if, following such repayment, the unpaid principal amount of such Security
would be less than the minimum authorized denomination of Securities of the series of which such
Security to be repaid is a part. Except as otherwise may be provided by the terms of any Security
providing for repayment at the option of the Holder thereof, exercise of the repayment option by
the Holder shall be irrevocable unless waived by the Company.

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     Section 12.04. When Securities Presented for Repayment Become Due and Payable. If
Securities of any series providing for repayment at the option of the Holders thereof shall have
been surrendered as provided in this Article and as provided by the terms of such Securities, such
Securities or the portions thereof, as the case may be, to be repaid shall become due and payable
and shall be paid by the Company on the Repayment Date therein specified, and on and after such
Repayment Date (unless the Company shall default in the payment of such Securities on such
Repayment Date) interest on such Securities or the portions thereof, as the case may be, shall
cease to accrue.

     Section 12.05. Securities Repaid in Part. Upon surrender of any Security which is to be
repaid in part only, the Company shall execute and the Trustee shall authenticate and deliver to
the Holder of such Security, without service charge and at the expense of the Company, a new
Security or Securities of the same series, tenor, terms and Scheduled Maturity Date, of any
authorized denomination specified by the Holder, in an aggregate principal amount equal to and in
exchange for the portion of the principal of such Security so surrendered which is not to be
repaid.

ARTICLE 13

Subordination Of Subordinated Securities

     Section 13.01. Agreement To Subordinate. The Company covenants and agrees, and each
Holder of any Subordinated Security issued hereunder by his acceptance thereof, whether upon
original issue or upon transfer or assignment, likewise covenants and agrees, that the principal of
(and premium, if any) and interest on each and all of the Subordinated Securities issued hereunder
are hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right
of payment to the prior payment in full of all Senior Indebtedness.

     Section 13.02. Payment On Dissolution, Liquidation Or Reorganization; Default On Senior
Indebtedness.

     Upon any payment or distribution of assets or securities of the Company of any kind or
character, whether in cash, property or securities, upon any dissolution or winding up or total or
partial liquidation or reorganization of the Company, whether voluntary or involuntary or in
bankruptcy, insolvency, receivership or other similar proceedings, or upon any assignment for the
benefit of creditors or any other marshalling of the assets and liabilities of the Company or
otherwise, all principal of (and premium, if any) and interest then due upon all Senior
Indebtedness shall first be paid in full, or payment thereof provided for in money or money’s
worth, before the Holders of the Subordinated Securities or the Trustee on their behalf shall be
entitled to receive any assets or securities (other than 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

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readjustment, junior to, or the payment of which is subordinated at least to the extent provided in
this Article to the payment of, all Senior Indebtedness which may at the time be outstanding or any
securities issued in respect thereof under any such plan of reorganization or readjustment) in
respect of the Subordinated Securities (for principal, premium or interest). Upon any such
dissolution or winding up or liquidation or reorganization, any payment or distribution of assets
or securities of the Company of any kind or character, whether in cash, property or securities
(other than as aforesaid), to which the Holders of the Subordinated Securities or the Trustee on
their behalf would be entitled, except for the provisions of this Article, shall be made by the
Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other person
making such payment or distribution, direct to the holders of Senior Indebtedness or their
representatives to the extent necessary to pay all Senior Indebtedness in full, in money or money’s
worth, after giving effect to any concurrent payment or distribution to or for the holders of
Senior Indebtedness. In the event that, notwithstanding the foregoing, the Trustee or the Holder of
any Subordinated Security shall, under the circumstances described in the two preceding sentences,
have received any payment or distribution of assets or securities of the Company of any kind or
character, whether in cash, property or securities (other than as aforesaid) before all Senior
Indebtedness is paid in full or payment thereof provided for in money or money’s worth, and if such
fact shall then have been made known to the Trustee or, as the case may be, such Holder, then such
payment or distribution of assets or securities of the Company shall be paid over or delivered
forthwith to the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making
payment or distribution of assets or securities 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, in money or money’s worth, after giving effect to any concurrent payment or distribution to
or for the holders of Senior Indebtedness.

     Subject to the payment in full, in money or money’s worth, of all Senior Indebtedness, the
Holders of the Subordinated Securities (together with the holders of any indebtedness of the
Company which is subordinate in right of payment to the payment in full of all Senior Indebtedness
and which is not subordinate in right of payment to the Subordinated Securities) shall be
subrogated to the rights of the holders of Senior Indebtedness to receive payments or distribution
of assets or securities of the Company applicable to Senior Indebtedness until the principal of
(and premium, if any) and interest on the Senior Indebtedness shall be paid in full. No such
payments or distributions applicable to Senior Indebtedness shall, as between the Company, its
creditors other than the holders of Senior Indebtedness, and the Holders of the Subordinated
Securities, be deemed to be a payment by the Company to or on account of the Subordinated
Securities, it being understood that the provisions of this Article are and are intended solely for
the purpose of defining the relative rights of the Holders of the Subordinated Securities, on the
one hand, and the holders of Senior Indebtedness, on the other hand. Nothing contained in this

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Article or elsewhere in this Indenture or in the Subordinated Securities is intended to or shall
impair, as between the Company and the Holders of Subordinated Securities, the obligation of the
Company, which is unconditional and absolute, to pay to the Holders of the Subordinated Securities
the principal of (and premium, if any) and interest on the Subordinated Securities as and when the
same shall become due and payable in accordance with their terms, or to affect (except to the
extent specifically provided above in this paragraph) the relative rights of the Holders of the
Subordinated Securities and creditors of the Company other than the holders of Senior Indebtedness.
Nothing contained herein shall prevent the Trustee or the Holder of any Subordinated Security 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 in respect
of assets or securities of the Company of any kind or character, whether cash, property or
securities, received upon the exercise of any such remedy.

     Upon any payment or distribution of assets or securities of the Company referred to in this
Article, the Trustee and the Holders of the Subordinated Securities shall be entitled to rely upon
any order or decree of a court of competent jurisdiction in which such dissolution, winding up,
liquidation or reorganization proceedings are pending, and upon a certificate of the receiver,
trustee in bankruptcy, liquidating trustee, agent or other person making any such payment or
distribution, delivered to the Trustee or to the Holders of the Subordinated Securities for the
purpose of ascertaining the persons entitled to participate in such distribution, the holders of
Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Article.

     If:

     (i) there
shall have occurred a default in the payment on account of the principal of (or premium, if any) or interest on or other monetary amounts due and payable on any
Senior Indebtedness, or

     (ii) any other default shall have occurred concerning any Senior Indebtedness which permits
the holder or holders thereof to accelerate the maturity of such Senior Indebtedness following
notice, the lapse of time, or both, or

     (iii) during any time Senior Indebtedness is outstanding, the principal of, and accrued
interest on, any series of Subordinated Securities shall have been declared due and payable upon an
Event of Default pursuant to Section 5.02 hereof (and such declaration shall not have been
rescinded or annulled pursuant to this Indenture);

69

 

then, unless and until such default shall have been cured or waived or shall have ceased to exist,
or such declaration shall have been waived, rescinded or annulled, no payment shall be made by the
Company on account of the principal (or premium, if any) or interest on the Subordinated
Securities.

     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 representative of such holder or a
trustee under any indenture under which any instruments evidencing any such Senior Indebtedness may
have been issued) to establish that such notice has been given by a holder of such Senior
Indebtedness or such representative or trustee on behalf of such holder. In the event that the
Trustee determines in good faith that further evidence is required with respect to the right of any
Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to
this Article 13, the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution and any other facts
pertinent to the right of such Person under this Article 13, and, if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial determination as to
the right of such Person to receive such payment or distribution.

     Section 13.03. Payment Prior To Dissolution Or Default. Nothing contained in this Article
or elsewhere in this Indenture, or in any of the Subordinated Securities, shall prevent (a) the
Company, at any time except under the conditions described in Section 13.02 or during the pendency
of any dissolution or winding up or total or partial liquidation or reorganization proceedings
therein referred to, from making payments at any time of principal of (or premium, if any) or
interest on Subordinated Securities or from depositing with the Trustee or any Paying Agent moneys
for such payments, or (b) the application by the Trustee or any Paying Agent of any moneys
deposited with it under this Indenture to the payment of or on account of the principal of (or
premium, if any) or interest on Subordinated Securities to the Holders entitled thereto if such
payment would not have been prohibited by the provisions of Section 13.02 on the day such moneys
were so deposited.

     Notwithstanding the provisions of Section 13.01 or any other provision of this Indenture, the
Trustee and any Paying Agent shall not be charged with knowledge of the existence of any Senior
Indebtedness, or of the occurrence of any default with respect to Senior Indebtedness of the
character described in Section 13.02, or of any other facts which would prohibit the making of any
payment of moneys to or by the Trustee or such Paying Agent, unless and until the Trustee shall
have received, no later than three Business Days prior to such payment, written notice thereof from
the Company or from a holder of such Senior Indebtedness and the Trustee shall not be affected by
any such notice which may be received by it on or after such third Business Day.

70

 

     Section 13.04. Securityholders Authorize Trustee To Effectuate Subordination of Securities.
Each Holder of Subordinated Securities by his or her acceptance thereof authorizes and expressly
directs the Trustee on his or her behalf to take such action in accordance with the terms of this
Indenture as may be necessary or appropriate to effectuate the subordination provisions contained
in this Article 13 and to protect the rights of the Holders of Subordinated Securities pursuant to
this Indenture, and appoints the Trustee his or her attorney-in-fact for such purpose.

     Section 13.05. Right Of Trustee To Hold Senior Indebtedness. The Trustee shall be entitled
to all of the rights set forth in this Article 13 in respect of any Senior Indebtedness at any time
held by it to the same extent as any other holder of Senior Indebtedness, and nothing in this
Indenture shall be construed to deprive the Trustee of any of its rights as such holder.

     Section 13.06. Article 13 Not To Prevent Events Of Default. The failure to make a payment
on account of principal of, premium, if any, or interest on the Subordinated Securities by reason
of any provision of this Article 13 shall not be construed as preventing the occurrence of an Event
of Default under Section 6.01 or an event which with the giving of notice or lapse of time, or
both, would become an Event of Default or in any way prevent the Holders of Subordinated Securities
from exercising any right hereunder other than the right to receive payment on the Subordinated
Securities.

     Section 13.07. No Fiduciary Duty Of Trustee To Holders Of Senior Indebtedness. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness, and shall not
be liable to any such holders (other than for its willful misconduct, bad faith or negligence) if
it shall in good faith mistakenly pay over or distribute to the Holders of Subordinated Securities
or the Company or any other Person, cash, property or securities to which any holders of Senior
Indebtedness shall be entitled by virtue of this Article 13 or otherwise. Nothing in this Section
13.06 shall affect the obligation of any other such Person to hold such payment for the benefit of,
and to pay such payment over to, the holders of Senior Indebtedness or their representative.

71

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their
respective corporate seals to be hereunto affixed and attested; all as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	PepsiCo, Inc.,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ J. Darrell Thomas
 

	 	 
	 

	 	 	 	Name: J. Darrell Thomas	 	 
	 

	 	 	 	Title: VP and Assistant Treasurer	 	 

	 	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	By:

	 	   /s/ Thomas H. Tamoney, Jr.
 

Name: Thomas H. Tamoney, Jr.
	 	 
	 

	 	Title: VP, Deputy General Counsel	 	 

	 	 	 	 	 	 	 
	 	 	The Bank of New York, Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Francine Kincaid
 

Name: Francine Kincaid
	 	 
	 

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	By:

	 	  /s/ James D. Heaney
 

Name: James D. Heaney
	 	 
	 

	 	Title: Vice President	 	 

72

 

	 	 	 
	State of New York
	 	 
	 

	 	ss.:
	County of New York
	 	 

     On the 21st day of May 2007 before me personally came Francine Kincaid to me known, who,
being by me duly sworn, did depose and say that she resides at 101 Barclay St, NY, NY; that she is
a Vice President of The Bank of New York, one of the parties described in and which executed the
above instrument; that she knows the corporate seal of said corporation; that the seal affixed to
that instrument is such corporate seal; that it was affixed by authority of the board of directors
of said corporation; and that she signed her name thereto by like authority.

	 	 	 	 	 
	 

	 	Name	 	 
	 
	 	 	 	 
	 

	 	/s/ Carlos R. Luciano
 

Notary Public, State of New York
	 	 
	 

	 	No. 41-4705897	 	 
	 

	 	Qualified in Queens County	 	 
	 

	 	Commission Expires 4/30/2010	 	 

[Notarial Seal]

73

 

	 	 	 
	State of New York
	 	 
	 

	 	ss.:
	County of Westchester
	 	 

     On the 21st day of May 2007 before me personally came Darrell Thomas, to me known, who, being
by me duly sworn, did depose and say that he resides at 700 Anderson Hill Rd., Purchase, NY; that
he is the Vice President Assistant Treasurer of PepsiCo, Inc., one of the parties described in and
which executed the above instrument; that he knows the corporate seal of said corporation; that the
seal affixed to that instrument is such corporate seal; that it was affixed by authority of the
board of directors of said corporation; and that he signed his name thereto by like authority.

	 	 	 	 	 
	 

	 	Name	 	 
	 
	 	 	 	 
	 

	 	/s/ Marianne B. Dalton
 
	 	 
	 

	 	Notary Public, State of New York	 	 
	 

	 	No. OIDA6024494	 	 
	 

	 	Qualified in Westchester County	 	 
	 

	 	My Commission Expires May 10, 2011	 	 

[Notarial Seal]

74EX-4.5

Exhibit 4.5

BOTTLING GROUP, LLC

(as Obligor)

and

PEPSICO, INC.

(as Guarantor)

and

THE BANK OF NEW YORK MELLON

(as Trustee)

Form of Indenture

Dated as of October     , 2008

SENIOR NOTES

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I

	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	Section 1.01.

	 	Definitions
	 	 	1	 
	Section 1.02.

	 	Officers’ Certificates and Opinions
	 	 	11	 
	Section 1.03.

	 	Form of Documents Delivered to Trustee
	 	 	12	 
	Section 1.04.

	 	Acts of Holders
	 	 	12	 
	Section 1.05.

	 	Notices, Etc., to Trustee, Obligor and Guarantor
	 	 	13	 
	Section 1.06.

	 	Notice to Holders; Waiver
	 	 	14	 
	Section 1.07.

	 	Conflict with Trust Indenture Act
	 	 	14	 
	Section 1.08.

	 	Effect of Headings and Table of Contents
	 	 	14	 
	Section 1.09.

	 	Successors and Assigns
	 	 	14	 
	Section 1.10.

	 	Separability Clause
	 	 	15	 
	Section 1.11.

	 	Benefits of Indenture
	 	 	15	 
	Section 1.12.

	 	Governing Law
	 	 	15	 
	Section 1.13.

	 	Counterparts
	 	 	15	 
	Section 1.14.

	 	Legal Holidays
	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE II

	THE NOTES

	 
	 	 	 	 	 	 
	Section 2.01.

	 	Form and Dating
	 	 	15	 
	Section 2.02.

	 	Execution and Authentication
	 	 	19	 
	Section 2.03.

	 	Temporary Notes
	 	 	20	 
	Section 2.04.

	 	Registration, Transfer and Exchange
	 	 	20	 
	Section 2.05.

	 	Mutilated, Destroyed, Lost and Stolen Notes
	 	 	23	 
	Section 2.06.

	 	Payment of Interest; Interest Rights Preserved
	 	 	24	 
	Section 2.07.

	 	Persons Deemed Owners
	 	 	25	 
	Section 2.08.

	 	Cancellation
	 	 	25	 
	Section 2.09.

	 	Computation of Interest
	 	 	26	 
	Section 2.10.

	 	CUSIP Numbers
	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE III

	DISCHARGE OF INDENTURE

	 
	 	 	 	 	 	 
	Section 3.01.

	 	Discharge of Indenture
	 	 	26	 
	Section 3.02.

	 	Defeasance and Discharge of Covenants upon
Deposit of Moneys, U.S. Government Obligations
	 	 	27	 
	Section 3.03.

	 	Application of Trust Money
	 	 	29	 
	Section 3.04.

	 	Paying Agent to Repay Moneys Held
	 	 	29	 
	Section 3.05.

	 	Return of Unclaimed Amounts
	 	 	29	 
	Section 3.06.

	 	Reinstatement
	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	REMEDIES

	Section 4.01.

	 	Events of Default
	 	 	30	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 4.02.

	 	Acceleration of Maturity; Rescission and Annulment
	 	 	32	 
	Section 4.03.

	 	Collection of Indebtedness and Suits for Enforcement
	 	 	33	 
	Section 4.04.

	 	Trustee May File Proofs of Claim
	 	 	34	 
	Section 4.05.

	 	Trustee May Enforce Claims Without Possession of Notes
	 	 	34	 
	Section 4.06.

	 	Application of Money Collected
	 	 	35	 
	Section 4.07.

	 	Limitation on Suits
	 	 	35	 
	Section 4.08.

	 	Unconditional Right of Holders to Receive Payment
of Principal, Premium and Interest
	 	 	36	 
	Section 4.09.

	 	Restoration of Rights and Remedies
	 	 	36	 
	Section 4.10.

	 	Rights and Remedies Cumulative
	 	 	36	 
	Section 4.11.

	 	Delay or Omission Not Waiver
	 	 	36	 
	Section 4.12.

	 	Control by Holders
	 	 	36	 
	Section 4.13.

	 	Waiver of Past Defaults
	 	 	37	 
	Section 4.14.

	 	Undertaking for Costs
	 	 	37	 
	Section 4.15.

	 	Waiver of Stay or Extension Laws
	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE V

	THE TRUSTEE

	 
	 	 	 	 	 	 
	Section 5.01.

	 	Certain Duties and Responsibilities of Trustee
	 	 	38	 
	Section 5.02.

	 	Notice of Defaults
	 	 	39	 
	Section 5.03.

	 	Certain Rights of Trustee
	 	 	39	 
	Section 5.04.

	 	Not Responsible for Recitals or Issuance of Notes
	 	 	40	 
	Section 5.05.

	 	May Hold Notes
	 	 	40	 
	Section 5.06.

	 	Money Held in Trust
	 	 	40	 
	Section 5.07.

	 	Compensation and Reimbursement
	 	 	41	 
	Section 5.08.

	 	Disqualification; Conflicting Interests
	 	 	41	 
	Section 5.09.

	 	Corporate Trustee Required; Eligibility
	 	 	42	 
	Section 5.10.

	 	Resignation and Removal; Appointment of Successor
	 	 	42	 
	Section 5.11.

	 	Acceptance of Appointment by Successor
	 	 	44	 
	Section 5.12.

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	45	 
	Section 5.13.

	 	Preferential Collection of Claims Against Obligor
	 	 	45	 
	Section 5.14.

	 	Appointment of Authenticating Agent
	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND OBLIGOR

	 
	 	 	 	 	 	 
	Section 6.01.

	 	Obligor to Furnish Trustee Names and Addresses of Holders
	 	 	47	 
	Section 6.02.

	 	Preservation of Information; Communications to Holders
	 	 	47	 
	Section 6.03.

	 	Reports by Trustee
	 	 	47	 
	Section 6.04.

	 	Reports by Obligor and Guarantor
	 	 	48	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	CONSOLIDATION, MERGER OR TRANSFER

	 
	 	 	 	 	 	 
	Section 7.01.

	 	Obligor May Consolidate, Etc., Only on Certain Terms
	 	 	48	 

ii

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 7.02.

	 	Guarantor May Consolidate, Etc., Only on Certain Terms
	 	 	48	 
	Section 7.03.

	 	Successor Entity Substituted
	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	SUPPLEMENTAL INDENTURES

	 
	 	 	 	 	 	 
	Section 8.01.

	 	Supplemental Indentures Without Consent of Holders
	 	 	49	 
	Section 8.02.

	 	Supplemental Indentures with Consent of Holders
	 	 	51	 
	Section 8.03.

	 	Execution of Supplemental Indentures
	 	 	52	 
	Section 8.04.

	 	Effect of Supplemental Indentures
	 	 	52	 
	Section 8.05.

	 	Conformity with Trust Indenture Act
	 	 	52	 
	Section 8.06.

	 	Documents to Be Given to Trustee
	 	 	52	 
	Section 8.07.

	 	Notation on Notes in Respect of Supplemental Indentures
	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	COVENANTS

	 
	 	 	 	 	 	 
	Section 9.01.

	 	Payment of Principal, Premium and Interest
	 	 	53	 
	Section 9.02.

	 	Maintenance of Office or Agency
	 	 	53	 
	Section 9.03.

	 	Money for Note Payments to be Held in Trust
	 	 	53	 
	Section 9.04.

	 	Certificate to Trustee
	 	 	54	 
	Section 9.05.

	 	Existence
	 	 	55	 
	Section 9.06.

	 	Limitation on Liens
	 	 	55	 
	Section 9.07.

	 	Limitation on Sale-Leaseback Transactions
	 	 	57	 
	 
	 	 	 	 	 	 
	ARTICLE X

	REDEMPTION OF NOTES

	 
	 	 	 	 	 	 
	Section 10.01.

	 	Election to Redeem; Notice to Trustee
	 	 	57	 
	Section 10.02.

	 	Selection by Trustee of the Notes to be Redeemed
	 	 	58	 
	Section 10.03.

	 	Notice of Redemption
	 	 	58	 
	Section 10.04.

	 	Deposit of Redemption Price
	 	 	59	 
	Section 10.05.

	 	Notes Payable on Redemption Date
	 	 	59	 
	Section 10.06.

	 	Notes Redeemed in Part
	 	 	59	 
	Section 10.07.

	 	Optional Redemption
	 	 	59	 
	Section 10.08.

	 	Mandatory Redemption
	 	 	60	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	GUARANTEE

	 
	 	 	 	 	 	 
	Section 11.01.

	 	Guarantee
	 	 	60	 
	Section 11.02.

	 	Execution and Delivery of the Guarantee
	 	 	64	 
	Section 11.03.

	 	Limitation of the Guarantor’s Liability
	 	 	64	 
	Section 11.04.

	 	Subrogation
	 	 	65	 
	 
	 	 	 	 	 	 
	EXHIBIT A:

	 	Guarantee
	 	 	A-1	 

iii

 

 

          THIS INDENTURE, among Bottling Group, LLC, a Delaware limited liability company (the
“Obligor”), having its principal office at One Pepsi Way, Somers, New York 10589, PepsiCo,
Inc., a North Carolina corporation, as guarantor (the “Guarantor”), having its principal
office at 700 Anderson Hill Road, Purchase, NY 10577, and The Bank of New York Mellon, a national
banking association organized and existing under the laws of the United States of America, as
trustee (the “Trustee”), is made and entered into as of this [•] day of October, 2008.

RECITALS OF THE OBLIGOR AND THE GUARANTOR

          WHEREAS, the Obligor has duly authorized the issuance from time to time of its Senior Notes in
one or more series (the “Notes”) up to such principal amount or amounts as may from time to
time be authorized in accordance with the terms of this Indenture and to provide, among other
things, for the authentication, delivery and administration thereof, the Obligor has duly
authorized the execution and delivery of this Indenture;

          WHEREAS, this Indenture provides for the issuance of a Guarantee of the Notes to be endorsed
on the Notes as provided herein;

          WHEREAS, the Guarantor wishes to guarantee the Notes as provided herein;

          WHEREAS, the Guarantee shall become effective on the Guarantee Commencement Date (as
hereinafter defined), except that under certain circumstances described below the Guarantee may not
become effective or may only be a partial guarantee of the principal of and interest and premium,
if any on the Notes; and

          WHEREAS, all things necessary to make this Indenture a valid agreement of the Obligor and the
Guarantor, in accordance with its terms, have been done.

          NOW, THEREFORE:

          In consideration of the premises and the purchases of the Notes by the Holders (as hereinafter
defined) thereof, the Obligor, the Guarantor and the Trustee mutually covenant and agree for the
equal and proportionate benefit of the respective Holders from time to time of the Notes or any
series thereof as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

          SECTION 1.01. Definitions. For all purposes of this Indenture, and of any indenture
supplemental hereto, 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;

1

 

     (2) all other terms used herein which are defined in the Trust Indenture Act (as
hereinafter defined), 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 U.S. GAAP; and

     (4) all references in this instrument to designated “Articles,” “Sections” and other
subdivisions are to the designated Articles, Sections and other subdivisions of this
instrument as originally executed. 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
1.04.

          “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.

          “Attributable Debt” for a lease means the aggregate of present values (discounted at a
rate per annum equal to the weighted average interest rate borne by all Outstanding Notes and
compounded semi-annually) of the obligations of the Obligor or any Restricted Subsidiary of the
Obligor for net rental payments during the remaining term of such lease (including any period for
which such lease has been extended or may, at the option of the lessor, be extended). The term
“net rental payments” under any lease of any period shall mean the sum of the rental and other
payments required to be paid in such period by the lessee thereunder, not including, however, any
amounts required to be paid by such lessee on account of maintenance and repairs, reconstruction,
insurance, taxes, assessments, water rates or similar charges required to be paid by such lessee
thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount
of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or
similar charges. Attributable Debt may be reduced by the present value of the rental obligations,
calculated on the same basis, that any sublessee has for all or part of the leased property.

          “Authenticating Agent” means any Person authorized by the Trustee to authenticate
Notes under Section 5.14.

          “Authentication Order” has the meaning specified in Section 2.02(1).

          “Bankruptcy Code” means title 11, U.S. Code, as amended, or any similar state or
federal law for the relief of debtors.

          “Benefitted Party” has the meaning specified in Section 11.01.

2

 

          “Board of Directors” means, with respect to the Guarantor, (a) the board of directors
of the Guarantor or (b) any duly authorized committee of that board.

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

          “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal
holiday nor a day on which banking institutions in New York City or Luxembourg are authorized or
required by law, regulation or executive order to be 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 on such date.

          “Company Request” or “Company Order” means (a) with respect to the Obligor, a
written request or order, respectively, signed in the name of the Obligor by any Officer thereof
and delivered to the Trustee and (b) with respect to the Guarantor, a written request or order,
respectively, signed in the name of the Guarantor by any Officer thereof and delivered to the
Trustee.

          “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to
be redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of such Notes.

          “Comparable Treasury Price” means, with respect to any Redemption Date for the Notes
of any series, (a) the average of four Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (b) if
the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all
such quotations.

          “Consolidated Net Tangible Assets” means, with respect to any Person, the total amount
of assets of such Person and its Subsidiaries minus (a) all applicable depreciation, amortization,
and other valuation reserves, (b) the amount of assets resulting from write-ups of capital assets
of such Person and its Subsidiaries (except write-ups in connection with accounting for
acquisitions in accordance with U.S. GAAP), (c) all current liabilities of such Person and its
Subsidiaries (excluding any intercompany liabilities) and (d) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set
forth on the latest quarterly or annual consolidated balance sheet of such Person and its
Subsidiaries prepared in accordance with U.S. GAAP.

          “Corporate Trust Office” means the office of the Trustee in the City of New York at
which at any particular time its corporate trust business shall be principally administered, which
office at the date hereof is located at 4 New York Plaza, New York, New York 10004,

3

 

except that with respect to the presentation of Notes for payment or registration of transfer
or exchange and with respect to the location of the Security Register, such term shall mean the
office or the agency of the Trustee in said city at which at any particular time its corporate
agency business shall be conducted, which office at the date hereof is located at 4 New York Plaza,
15th Floor, New York, New York 10004.

          “Covenant Defeasance” has the meaning specified in Section 3.02.

          “Custodian” means the Person appointed by the Obligor to act as custodian for the
Depositary, which Person shall be the Trustee unless and until a successor Person is appointed by
the Obligor.

          “Debt” means, (a) with respect to the Obligor, any indebtedness of the Obligor for
borrowed money, capitalized lease obligations and purchase money obligations, or any guarantee of
such debt, in any such case which would appear on the consolidated balance sheet of the Obligor as
a liability, and, (b) with respect to the Guarantor, any indebtedness of the Guarantor for borrowed
money.

          “Defaulted Interest” has the meaning specified in Section 2.06.

          “Definitive Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with this Indenture.

          “Depositary” means with respect to the Notes of any series issuable or issued in whole
or in part in global form, the Person designated as Depositary for such series by the Obligor
pursuant to Section 2.01 or 2.04, unless and until a successor Depositary for such series shall
have become such pursuant to the applicable provisions of this Indenture, and thereafter
“Depositary” with respect to the Notes of a series shall mean or include each Person who is then a
Depositary hereunder with respect to such series.

          “Discharged” has the meaning specified in Section 3.02.

          “DTC” has the meaning specified in Section 2.04(2).

          “Entity” means any corporation, limited liability company, partnership, joint venture,
association, joint-stock company, trust or unincorporated organization.

          “Event of Default” has the meaning specified in Section 4.01.

          “Exchange Act” means the U.S. Securities Exchange Act of 1934 (or any successor Act),
as amended, and the rules and regulations of the Commission promulgated thereunder.

          “Exempted Debt” means the sum, without duplication, of the following items outstanding
as of the date Exempted Debt is being determined: (a) Debt incurred after the date of this
Indenture and secured by Liens created or assumed or permitted to exist on any Principal Property
(as such term is defined with respect to the Obligor) or on any shares of stock of any Restricted
Subsidiary of the Obligor, other than Debt secured by Liens described in clauses (i)

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through (vii) of Section 9.06(1) and (b) Attributable Debt of the Obligor and its Restricted
Subsidiaries in respect of all sale and lease-back transactions with regard to any Principal
Property (as such term is defined with respect to the Obligor) entered into pursuant to Section
9.07(2).

          “Funded Debt” means all Debt having a maturity of more than one year from the date of
its creation or having a maturity of less than one year but by its terms being renewable or
extendible, at the option of the obligor in respect thereof, beyond one year from its creation.

          “Global Note” means each note in global form issued in accordance with this Indenture
and bearing the Global Note Legend.

          “Global Note Legend” means the legend set forth in Section 2.01, which is required to
be placed on all Global Notes issued pursuant to this Indenture.

          “Guarantee” means the guarantee of the Obligor’s obligations under this Indenture and
the Notes by the Guarantor pursuant to Article XI.

          “Guarantee Commencement Date” means, if the Guarantee becomes effective pursuant to
Article XI hereof, one Business Day prior to the 2009 Notes Payment Date.

          “Guarantor” means PepsiCo, Inc., a North Carolina corporation, unless and until a
successor Entity or assign shall have assumed the obligations of the Guarantor under this Indenture
and the Guarantee and thereafter “Guarantor” shall mean such successor Entity or assign.

          “Holder” and “Holder of Notes” means a Person in whose name a Note is
registered in the Security Register.

          “Indenture” or “this Indenture” means this Indenture, as amended or
supplemented from time to time, including the Exhibits hereto.

          “Independent Investment Banker” means one of the Reference Treasury Dealers appointed
by the Trustee after consultation with the Obligor.

          “Interest Payment Date,” when used with respect to any Note, means the date specified
in such Note on which an installment of interest on such Note is scheduled to be paid.

          “Issue Date” of any Note (or portion thereof) means the earlier of (a) the date of
such Note or (b) the date of any Note (or portion thereof) for which such Note was issued (directly
or indirectly) on registration of transfer, exchange or substitution.

          “Legal Defeasance” has the meaning specified in Section 3.02.

          “Lien” has the meaning specified in Section 9.06(1).

          “Managing Director-Delegatee” means the Managing Director-Delegatee of the Obligor or
the Guarantor.

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          “Managing Directors” means (a) the Managing Directors of the Obligor or the Guarantor
or (b) any duly authorized committee of the Managing Directors of the Obligor or the Guarantor.

          “Managing Directors Resolution” means, with respect to the Obligor or the Guarantor, a
copy of a resolution of the Managing Directors certified by a Managing Director or a Managing
Director-Delegatee of the Obligor or the Guarantor to have been duly adopted by the Managing
Directors and to be in full force and effect on the date of such certification, and delivered to
the Trustee.

          “Maturity,” when used with respect to any Note, means the date on which all or a
portion of the principal amount outstanding under such Note becomes due and payable, whether on the
Maturity Date or by declaration of acceleration, call for redemption, or otherwise.

          “Maturity Date,” when used with respect to any Note or any installment of principal
thereof means the date specified in such Note as the fixed date on which the principal of such Note
or such installment of principal becomes due and payable.

          “Notes” has the meaning specified in the Recitals of the Obligor on the first page of
this Indenture, including any replacement Notes issued therefor in accordance with this Indenture.

          “Obligor” means Bottling Group, LLC, a Delaware limited liability company, unless and
until a successor Entity or assign shall have assumed the obligations of the Obligor under this
Indenture and the Notes and thereafter “Obligor” shall mean such successor Entity or assign.

          “Officer” means, (a) with respect to the Obligor, a Managing Director, a Managing
Director-Delegatee, the principal financial officer or any other officer or officers of the Obligor
designated pursuant to an applicable Managing Directors Resolution or (b) with respect to the
Guarantor, the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the
Executive Vice President, any Vice President, the Treasurer, the Assistant Treasurer or any other
officer or officers of the Guarantor designated pursuant to an applicable Board Resolution.

          “Officers’ Certificate” means, with respect to any Person, a certificate signed on
behalf of such Person by any two Officers of such Person that meets the applicable requirements of
this Indenture.

          “Opinion of Counsel” means, with respect to the Obligor, the Guarantor or the Trustee,
a written opinion of counsel to the Obligor, the Guarantor or the Trustee, as the case may be,
which counsel may be an employee of the Obligor, the Guarantor or the Trustee, as the case may be.

          “Outstanding,” when used with respect to the Notes or any series of Notes means, as of
the date of determination, all Notes or all Notes of such series, as the case may be, theretofore
authenticated and delivered under this Indenture, except:

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     (a) such Notes or such Notes of such series, as the case may be, theretofore cancelled
by the Trustee or delivered to the Trustee for cancellation;

     (b) such Notes or such Notes of such series, as the case may be, or portions thereof,
for whose payment or redemption money in the necessary amount has been theretofore deposited
in trust with the Trustee or with any Paying Agent other than the Obligor, or, if the
Obligor shall act as its own Paying Agent, has been set aside and segregated in trust by the
Obligor; provided, in any case, that if such Notes or such Notes of such series, as the case
may be, are to be redeemed prior to their Maturity Date, notice of such redemption has been
duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has
been made;

     (c) such Notes or such Notes of such series, as the case may be, in exchange for or in
lieu of which other Notes or other Notes of such series, as the case may be, have been
authenticated and delivered pursuant to this Indenture, or which shall have been paid, in
each case, pursuant to the terms of Section 2.05 (except with respect to any such Note or
any such Note of such series, as the case may be, as to which proof satisfactory to the
Trustee is presented that such Note or such Note of such series, as the case may be, is held
by a person in whose hands such Notes or such Notes of such series, as the case may be, is a
legal, valid, and binding obligation of the Obligor); and

     (d) solely to the extent provided in Article III, Notes or Notes of such series, as the
case may be, which are subject to Legal Defeasance or Covenant Defeasance as provided in
Section 3.02. In determining whether the Holders of the requisite principal amount of such
Notes or Notes of such series, as the case may be, Outstanding have given a direction
concerning the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or concerning the exercise of any trust or power conferred upon the Trustee
under this Indenture, or concerning a consent on behalf of the Holders of the Notes or the
Holders of the Notes of such series, as the case may be, to the waiver of any past default
and its consequences, Notes or the Notes of such series, as the case may be, owned by the
Obligor, any other obligor upon the Notes or Notes of such series, as the case may be, or
any Affiliate of the Obligor or such other obligor shall be disregarded and deemed not to be
Outstanding. In determining whether the Trustee shall be protected in relying upon any
request, demand, authorization, direction, notice, consent, or waiver hereunder, only Notes
or Notes of such series, as the case may be, which a Responsible Officer assigned to the
corporate trust department of the Trustee knows to be owned by the Obligor or any other
obligor upon the Notes or the Notes of such series, as the case may be, or any Affiliate of
the Obligor or such other obligor shall be so disregarded. Notes or Notes of such series,
as the case may be, 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 to act as owner with respect to such Notes or Notes of such series, as the case may
be, and that the pledgee is not the Obligor or any other obligor upon the Notes or the Notes
of such series, as the case may be, or any Affiliate of the Obligor or such other obligor.

          “Partial Guarantee Percentage” means a fraction, (a) the numerator of which is (i) the
aggregate principal amount of the Notes Outstanding on the 2009 Notes Payment Date

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minus (ii) the principal of the 2009 Notes that the Guarantor has determined in good
faith that the Guarantor is likely to have to pay on the 2009 Notes on the 2009 Notes Payment Date
under the 2009 Notes Guarantee and that is specified in the Partial Payment Notice and (b) the
denominator of which is the aggregate principal amount of the Notes Outstanding on the 2009 Notes
Payment Date.

          “Partial Payment Notice” has the meaning specified in Section 11.01.

          “Paying Agent” means any Person appointed by the Obligor to distribute amounts payable
by the Obligor on the Notes. The Obligor may act as its own Paying Agent. As of the date of this
Indenture, the Obligor has appointed The Bank of New York Mellon as Paying Agent with respect to
all Notes issuable hereunder.

          “PBG” means The Pepsi Bottling Group, Inc., a Delaware corporation.

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

          “Place of Payment” means the place specified pursuant to Section 9.02.

          “Predecessor Notes” of any particular Note means every previous Note evidencing all or
a portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.05 in lieu of a lost, destroyed,
mutilated, or stolen Note shall be deemed to evidence the same debt as the lost, destroyed,
mutilated, or stolen Note.

          “Principal Property” means, (a) with respect to the Obligor, any single manufacturing
or processing plant, office building, or warehouse owned or leased by the Obligor or a Subsidiary
of the Obligor, in each case, located in the 50 states of the United States of America, the
District of Columbia or Puerto Rico, other than a plant, warehouse, office building, or portion
thereof which, in the opinion of the Managing Directors evidenced by a Managing Directors
Resolution, is not of material importance to the business conducted by the Obligor and its
Subsidiaries taken as an entirety and, (b) with respect to the Guarantor, any single manufacturing
or processing plant, office building, or warehouse owned or leased by the Guarantor or a Restricted
Subsidiary of the Guarantor, in each case, located in the 50 states of the United States of
America, the District of Columbia or Puerto Rico, other than a plant, warehouse, office building,
or portion thereof which, in the opinion of the Guarantor’s Board of Directors evidenced by a Board
Resolution, is not of material importance to the business conducted by the Guarantor and its
Restricted Subsidiaries as an entirety.

          “Record Date” means any date as of which the Holder of a Note of any series will be
determined for any purpose described herein, such determination to be made as of the close of
business on such date by reference to the Security Register, and in relation to a determination of
a payment of an installment of interest on the Notes of any series, shall have the meaning
specified in such series of Notes.

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          “Redemption Date” when used with respect to any Notes to be redeemed, means the date
fixed for such redemption in any notice of redemption issued pursuant to this Indenture.

          “Redemption Price” when used with respect to any Notes to be redeemed, means the price
specified in Section 10.07.

          “Reference Treasury Dealer” means four primary U.S. Government securities dealers in
New York City (each, a “Primary Treasury Dealer”), either named in the prospectus supplement
relating to a series of Notes or appointed by the Trustee in consultation with the Obligor;
provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the
Obligor shall substitute therefor another Primary Treasury Dealer.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.

          “Registrar” means the Person who maintains the Security Register, which Person shall
be the Trustee unless and until a successor Registrar is appointed by the Obligor.

          “Responsible Officer,” when used with respect to the Trustee, means any officer of the
Trustee having direct responsibility for the administration of this Indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject.

          “Restricted Subsidiary” means, (a) with respect to the Obligor or PBG, any current or
future Subsidiary of the Obligor or PBG, as the case may be, (i) substantially all of the property
of which is located, or substantially all of the business of which is carried on, within the 50
states of the United States of America, the District of Columbia or Puerto Rico and which is not a
foreign corporation, and (ii) which owns or leases any Principal Property or, (b) with respect to
the Guarantor, at any time, any Subsidiary of the Guarantor which is at the time not an
Unrestricted Subsidiary.

          “Scheduled Guarantee Commencement Date” means one Business Day prior to the 2009 Notes
Payment Date.

          “Securities Act” means the U.S. Securities Act of 1933 (or any successor Act), as
amended, and the rules and regulations of the Commission promulgated thereunder.

          “Security Register” has the meaning specified in Section 2.04.

          “Special Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 2.06.

          “Subsidiary” of any specified Person means any Person at least a majority of whose
outstanding Voting Stock shall at the time be owned, directly or indirectly, by the specified
Person or by one or more of its Subsidiaries, or both.

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

          “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as
amended, as in force as of the date hereof; provided that, with respect to every supplemental
indenture executed pursuant to this Indenture, “Trust Indenture Act” or “TIA” shall
mean the Trust Indenture Act of 1939, as then in effect.

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

          “2009
Notes” means the Obligor’s outstanding $1,300,000,000 55/8% Senior Notes due 2009
guaranteed by the Guarantor.

          “2009 Notes Guarantee” means the Guarantor’s unconditional and irrevocable guarantee
of the 2009 Notes.

          “2009 Notes Payment Date” means February 17, 2009 or, if earlier, the date scheduled
for payment of (a) the redemption price (in the event of a redemption in whole) or (b) the
principal of and interest and premium, if any (in the event of acceleration), in each case, on the
2009 Notes.

          “2009 Notes Payment Deposit Date” means two Business Days prior to the 2009 Notes
Payment Date.

          “2009 Notes Trustee” means JPMorgan Chase Bank, in its capacity as the trustee under
the indenture relating to the 2009 Notes, or its successor thereunder.

          “Unrestricted Subsidiary” means, with respect to the Guarantor, any Subsidiary of the
Guarantor (not at the time designated a Restricted Subsidiary of the Guarantor) (a) the major

10

 

part of whose business consists of finance, banking, credit, leasing, insurance, financial
services, or other similar operations, or any combination thereof, (b) substantially all the assets
of which consist of the capital stock of one or more Subsidiaries engaged in the operations
referenced in the preceding clause (a), (c) substantially all of the property of which is located,
or substantially all of the business of which is carried on, outside the 50 states of the United
States of America, the District of Columbia and Puerto Rico or (d) designated as such by the
Guarantor’s Board of Directors. Any Subsidiary of the Guarantor designated as a Restricted
Subsidiary may be designated as an Unrestricted Subsidiary.

          “U.S. GAAP” means accounting principles as are generally accepted in the United States
of America at the date of any computation required or permitted under this Indenture.

          “U.S. Government Obligations” means (a) securities that are direct obligations of the
United States of America, the payment of which is unconditionally guaranteed by the full faith and
credit of the United States of America and (b) securities that are obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed by the full faith and credit of the
United States of America, and also includes depository receipts issued by a bank or trust company
as custodian with respect to any of the securities described in the preceding clauses (a) and (b),
and any payment of interest or principal payable under any of the securities described in the
preceding clauses (a) and (b) that is 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, or from any
amount received by the custodian in respect of such securities, or from any specific payment of
interest or principal payable under the securities evidenced by such depository receipt.

          “Vice President” means, with respect to any Person, any vice president of that Person,
whether or not designated by a number or a word or words added before or after the title “vice
president.”

          “Voting Stock” means, as applied to any Person, capital stock (or other interests,
including partnership or membership interests) of any class or classes (however designated), the
outstanding shares (or other interests) of which have, by the terms thereof, ordinary voting power
to elect a majority of the members of the board of directors (or other governing body) of such
Person, other than stock (or other interests) having such power only by reason of the happening of
a contingency.

          SECTION 1.02. Officers’ Certificates and Opinions. Every Officers’ Certificate,
Opinion of Counsel and other certificate or opinion to be delivered to the Trustee under this
Indenture with respect to any action to be taken by the Trustee shall include the following:

     (1) a statement that each individual signing such certificate or opinion has read all
covenants and conditions of this Indenture relating to such proposed action, including the
definitions of all applicable capitalized terms;

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

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

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

          SECTION 1.03. Form of Documents Delivered to Trustee.

     (1) 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 the other matters, and any such Person
may certify or give an opinion as to such matters in one or several documents.

     (2) Any certificate or opinion of an officer of the Obligor may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, legal
counsel, unless such officer knows that any such certificate, opinion, or representation is
erroneous. Any opinion of counsel for the Obligor 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 Obligor, unless such counsel knows that any such certificate, opinion, or
representation is erroneous.

     (3) 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, such instruments may, but need not, be consolidated and form a single instrument.

     SECTION 1.04. Acts of Holders.

     (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 an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and (if expressly required by the applicable terms of this
Indenture) to the Obligor. 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

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this Indenture and (subject to Section 5.01) conclusive in favor of the Trustee and the
Obligor, if made in the manner provided in this Section 1.04.

     (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 to such execution or by the certificate of any
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 an officer of a corporation or a member of a
partnership, on behalf of such corporation or partnership, 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) The ownership of Notes shall for all purposes be determined by reference to the
Security Register, as such register shall exist as of the applicable Record Date.

     (4) If the Obligor shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other action, the Obligor may, at its option, by
Managing Directors Resolution, fix in advance a Record Date for the determination of Holders
entitled to give such request, demand, authorization, direction, notice, consent, waiver or
other action, but the Obligor shall have no obligation to do so. If such Record Date is
fixed, such request, demand, authorization, direction, notice, consent, waiver or other
action may be given before or after such Record Date, but only the Holders of record at the
close of business on such Record Date shall be deemed to be Holders for the purpose of
determining whether Holders of the requisite proportion of Notes Outstanding have authorized
or agreed or consented to such request, demand, authorization, direction, notice, consent,
waiver or other action, and for that purpose the Notes Outstanding shall be computed as of
such Record Date; provided that no such authorization, agreement or consent by the Holders
on such Record Date shall be deemed effective unless it shall become effective pursuant to
the provisions of this Indenture not later than six months after such Record Date.

     (5) Any request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Note shall bind each subsequent Holder of such Note, and each
Holder of any Note issued upon the registration of transfer thereof or in exchange therefor
or in lieu thereof, with respect to anything done or suffered to be done by the Trustee or
the Obligor in reliance upon such action, whether or not notation of such action is made
upon such Note.

          SECTION 1.05. Notices, Etc., to Trustee, Obligor and Guarantor. Any request, order,
authorization, direction, consent, waiver or other action to be taken by the Trustee, the Obligor,
the Guarantor or the Holders hereunder (including any Authentication Order), and any notice to be
given to the Trustee, the Obligor or the Guarantor with respect to any action taken or to be taken
by the Trustee, the Obligor, the Guarantor or the Holders hereunder, shall be sufficient if made in
writing and

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     (1) if to be furnished or delivered to or filed with the Trustee by the Obligor, the
Guarantor or any Holder, delivered to the Trustee at its Corporate Trust Office, Attention:
Worldwide Securities Services, or

     (2) if to be furnished or delivered to the Obligor by the Trustee or any Holder, and
except as otherwise provided in Section 4.01(1)(iii), mailed to the Obligor, first-class
postage prepaid, at the following address: c/o The Pepsi Bottling Group, Inc., One Pepsi
Way, Somers, New York 10589, Attention: Treasurer, or at any other address hereafter
furnished in writing by the Obligor to the Trustee, or

     (3) if to be furnished or delivered to the Guarantor by the Trustee or any Holder and
except as otherwise provided in Section 4.01(2)(i), mailed to the Guarantor, first-class
postage prepaid at its principal office (as specified in the first paragraph of this
instrument), Attention: Treasurer, or at any other address hereafter furnished in writing
by the Guarantor to the Trustee.

          SECTION 1.06. Notice to Holders; Waiver. Where this Indenture or any Note provides
for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise
expressly provided herein or in such Note) if in writing and mailed, first-class postage prepaid,
to each Holder affected by such event, at his or her address as it appears in the Security Register
as of the applicable Record Date, if any, not later than the latest date or earlier than the
earliest date prescribed by this Indenture or such Note 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 or any Note provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver. In case, by reason of the suspension of
regular mail service as a result of a strike, work stoppage or otherwise, it shall be impractical
to mail notice of any event to any Holder when such notice is required to be given pursuant to any
provision of this Indenture or the applicable Note, then any method of notification as shall be
satisfactory to the Trustee and the Obligor shall be deemed to be sufficient for the giving of such
notice.

          SECTION 1.07. Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof which is required to be included in this
Indenture by any of the provisions of the TIA, such required provision shall control.

          SECTION 1.08. Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents hereof are for convenience only and shall not affect the
construction of any provision of this Indenture.

          SECTION 1.09. Successors and Assigns. All covenants and agreements in this Indenture
by the Obligor and the Guarantor shall bind its successors and assigns, whether so expressed or
not.

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          SECTION 1.10. Separability Clause. In case any provision in this Indenture or in the
Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

          SECTION 1.11. Benefits of Indenture. Nothing in this Indenture or in any Notes,
express or implied, shall give to any Person, other than the parties hereto, their successors
hereunder, the Authenticating Agent, the Registrar, any Paying Agent, and the Holders of Notes (or
such of them as may be affected thereby), any benefit or any legal or equitable right, remedy or
claim under this Indenture.

          SECTION 1.12. Governing Law. This Indenture shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to rules governing the
conflict of laws.

          SECTION 1.13. Counterparts. This instrument may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original, but all of which
shall together constitute but one and the same instrument.

          SECTION 1.14. Legal Holidays. In any case where any Interest Payment Date or
Redemption Date or Maturity Date shall not be a Business Day, then (notwithstanding any other
provisions of this Indenture or of the Notes) payment of interest or principal (and premium, if
any) need not be made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the Interest Payment Date, the Redemption Date or Maturity
Date, provided that no interest shall accrue for the period from and after such Interest Payment
Date, Redemption Date or Maturity Date, as the case may be.

ARTICLE II

THE NOTES

          SECTION 2.01. Form and Dating.

     (1) General.

     (i) The Notes of each series shall be substantially in such form (not inconsistent with
this Indenture) as shall be established by or pursuant to a Managing Directors 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 imprinted or otherwise reproduced thereon such legend or
legends, not inconsistent with the provisions of this Indenture, as may be required to
comply with any law, stock exchange rule or DTC rule or usage or with any rules or
regulations pursuant thereto, all as may, consistently herewith, be determined by the
Officers executing such Notes, as evidenced by their execution of the Notes. Any portion of
the text of any Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note. Each Note shall be dated the date of its authentication.
The Obligor shall furnish any such legends to the Trustee in writing. Except as otherwise
provided in Section 11.01(2) and in the immediately following proviso, each Note shall have
an executed Guarantee from the Guarantor

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substantially in the form of Exhibit A hereto endorsed thereon; provided,
however, that any Note issued under this Indenture on and after the date which the
Guarantor provides a notice to the Trustee pursuant to Section 11.01(3) that the Guarantee
shall not become effective and the Guarantee Commencement Date shall not occur shall not
have an executed Guarantee from the Guarantor endorsed thereon; and provided,
further, that any such Note, when issued, authenticated and delivered in accordance
with this Indenture, shall be treated as a single class of securities with other Outstanding
Notes of the same series which have the Guarantee endorsed thereon.

     (ii) The Definitive Notes, if any, shall be printed, lithographed or engraved or
produced by any combination of those methods on steel engraved borders or may be produced in
any other manner permitted by the rules of any securities exchange, all as determined by the
Officers executing such Notes, as evidenced by their execution of such Notes.

     (iii) The terms and provisions contained in the Notes shall constitute, and are hereby
expressly made, a part of this Indenture and the Obligor, the Guarantor and the Trustee, by
their execution and delivery of this Indenture expressly agree to such terms and provisions
and to be bound thereby. Nothing in the preceding sentence shall, however, limit the effect
of the second paragraph of Section 2.02(1). However, to the extent any provision of any
Note conflicts with the express provisions of this Indenture, the provisions of this
Indenture shall govern and be controlling. All Notes of any one series shall be
substantially identical except as to denomination and except as may otherwise be provided in
or pursuant to such resolution of the Managing Directors or in any such indenture
supplemental hereto.

     (iv) No Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Note a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual signature of
an authorized officer, and such certificate upon any Note shall be conclusive evidence, and
the only evidence, that such Note has been duly authenticated and delivered hereunder.

     (v) The aggregate principal amount of Notes which may be authenticated and delivered
under this Indenture is unlimited. The Notes may be issued in one or more series. There
shall be established in or pursuant to a resolution of the Managing Directors of the Obligor
and the Guarantor and set forth in an Officers’ Certificate of the Obligor and the
Guarantor, or established in one or more indentures supplemental hereto, prior to the
issuance of Notes of any series:

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

     (b) any limit upon the aggregate principal amount of the Notes of the series
that may be authenticated and delivered under this Indenture (except for Notes
authenticated and delivered upon registration of transfer of, or in exchange

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for, or in lieu of, other Notes of the series pursuant to Section 2.03, 2.04,
2.05, 8.07 or 10.06);

     (c) the date or dates on which the principal of the Notes of the series is
payable;

     (d) the rate or rates at which the Notes of the series shall bear interest, if
any, or the method by which such rate shall be determined, the date or dates from
which such interest shall accrue, the Interest Payment Dates on which such interest
shall be payable and the Record Dates, if any, for the determination of Holders to
whom interest is payable;

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

     (f) if other than the principal amount thereof, the portion of the principal
amount of Notes of the series which shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 4.02;

     (g) the issue date;

     (h) the issue price (expressed as a percentage of the aggregate principal amount
of the Notes) at which the Notes will be issued;

     (i) if the Notes of the series are issuable in whole or in part in the form of
Definitive Notes or as one or more Global Notes, and if so, the identity of the
Depositary for such Global Notes if other than DTC;

     (j) any other terms of the series (which terms shall not be inconsistent with
the provisions of this Indenture);

     (k) any Events of Default with respect to the Notes of a particular series if
not set forth herein; and

     (l) any covenants of the Obligor or the Guarantor with respect to the Notes of a
particular series if not set forth herein. Notwithstanding Section 2.01(1)(v)(b) and
unless otherwise expressly provided with respect to a series of Notes, the aggregate
principal amount of a series of Notes may be increased and additional Notes of such
series may be issued up to the maximum aggregate principal amount authorized with
respect to such series as increased; provided that, any such additional Notes
shall have identical terms as the outstanding Notes of such series, other than with
respect to the date of issuance, issue price, first Interest Payment Date, interest
accrual date and amount of interest payable on the first Interest Payment Date
applicable thereto; provided, further, that any such additional Notes
shall be treated as a single class with the outstanding Notes of such series for all
purposes under this Indenture.

     (2) Global Notes.

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     (i) If the Obligor shall establish pursuant to Section 2.01(1) above that the Notes of
a series or a portion thereof are to be issued in the form of one or more Global Notes, then
the Obligor shall execute and the Trustee shall authenticate and make available for delivery
one or more Global Notes that (a) shall represent and shall be denominated in an amount
equal to the aggregate principal amount of all of the Notes of such series issued in such
form and not yet cancelled, (b) shall be registered, in the name of the Depositary
designated for such Global Note pursuant to Section 2.04, or in the name of a nominee of
such Depositary, (c) shall be deposited with the Trustee, as Custodian for the Depositary,
and (d) shall bear a legend substantially as follows (“Global Note Legend”):

     THIS IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE REFERRED TO
HEREINAFTER.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
OBLIGOR OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

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

     (ii) Each Depositary designated pursuant to Section 2.01 or 2.04 for a Global Note
must, at the time of its designation and at all times while it serves as Depositary, be a
clearing agency registered under the Exchange Act and any other applicable statute or
regulation, provided that the Depositary is required to be so registered in order to act as
depositary.

     (iii) Any Global Note may be represented by more than one certificate. The aggregate
principal amount of each Global Note may from time to time be increased or decreased by
adjustments made on the records of the Registrar, as provided in this Indenture.

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     (3) Trustee’s Certificate of Authentication.

          The Trustee’s Certificate of Authentication shall be in substantially the following form:

          This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York Mellon

     as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 

          SECTION 2.02. Execution and Authentication.

     (1) At any time and from time to time after the execution and delivery of this
Indenture, the Obligor may deliver Notes of any series executed on behalf of the Obligor by
any two Officers to the Trustee for authentication, and the Trustee, upon receipt of a
written order of the Obligor and the Guarantor signed by an Officer of the Obligor and the
Guarantor (the “Authentication Order”) shall thereupon in accordance with the
procedures acceptable to the Trustee set forth in the Authentication Order, and subject to
the provisions hereof, authenticate and deliver such Notes to or upon the written order of
the Obligor, without any further action by the Obligor or the Guarantor except as set forth
in this Section 2.02. The signature of any of the Officers on the Notes may be manual or
facsimile. Typographical and other minor errors or defects in any such signature shall not
affect the validity or enforceability of any Note that has been duly authenticated and
delivered by the Trustee. In authenticating such Notes and accepting the additional
responsibilities under this Indenture in relation to such Notes, the Trustee shall receive,
and (subject to Section 5.01) shall be fully protected in relying upon:

     (a) a copy of the Managing Directors Resolution of each of the Obligor and the
Guarantor relating to such series;

     (b) an executed supplemental indenture, if any, and the documentation required to be
delivered pursuant to Section 8.06;

     (c) an Officers’ Certificate of each of the Obligor and the Guarantor setting forth the
form or forms and terms of the Notes of such series pursuant to Section 2.01(1)(v), and
prepared in accordance with Section 1.02;

     (d) an Opinion of Counsel of the Obligor and the Guarantor, prepared in accordance with
Section 1.02, to the effect that

     (i) the form or forms and terms of such Notes have been established by or
pursuant to a Managing Directors Resolution of each of the Obligor and the

19

 

Guarantor or by a supplemental indenture as permitted by Section 2.01 in
conformity with the provisions of this Indenture; and

     (ii) such Notes, when executed and issued by the Obligor, guaranteed by the
Guarantor and authenticated and delivered by the Trustee in the manner and subject
to any conditions specified in such Opinion of Counsel, will constitute legal, valid
and binding obligations of the Obligor and Guarantor enforceable against each of
them in accordance with their terms except as any rights thereunder may be limited
by bankruptcy, insolvency and other similar laws affecting the enforceability of
creditors rights’ generally and by general equity principles. The Trustee shall
have the right to decline to authenticate and deliver any Notes under this Section
2.02 if the Trustee, being advised by counsel, determines that such action may not
lawfully be taken by the Obligor or the Guarantor or if the Trustee in good faith by
its board of directors or board of trustees, executive committee, or a trust
committee of directors or trustees or Responsible Officers shall determine that such
action would expose the Trustee to personal liability. If the Obligor and the
Guarantor shall establish pursuant to Section 2.01(1) that the Notes of a series or
a portion thereof are to be issued in the form of one or more Global Notes, then the
Obligor and the Guarantor shall execute and the Trustee shall authenticate and make
available for delivery one or more Global Notes as provided in Section 2.01(2)(i).

     (2) Notes bearing the manual or facsimile signatures of individuals who were at any
time on or after the date hereof the proper officers of the Obligor and the Guarantor shall
bind each of them, notwithstanding that such individuals or any of them have ceased to hold
such offices prior to the authentication and delivery of such Notes or did not hold such
offices at the date of such Notes.

     (3) The Notes shall be in fully registered form, without coupons, in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof.

          SECTION 2.03. Temporary Notes. Until certificates representing Notes of a series are
ready for delivery, the Obligor may prepare and the Trustee, upon receipt of an Authentication
Order, shall authenticate and deliver temporary Notes of such series. Temporary Notes shall be
substantially in the form of certificated Notes but may have variations that the Obligor considers
appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee. Without
unreasonable delay, the Obligor shall prepare and the Trustee shall authenticate Definitive Notes
of a series in exchange for temporary Notes of such series. Holders of temporary Notes shall be
entitled to all of the benefits of this Indenture.

          SECTION 2.04. Registration, Transfer and Exchange.

     (1) Securities Register. The Trustee shall keep a register of the Notes (the
“Security Register”) which shall provide for the registration of such Notes, and for
transfers of such Notes in accordance with information, if any, to be provided to the
Trustee by the Obligor, subject to such reasonable regulations as the Trustee may prescribe.
Such register shall be in written form or in any other form capable of being

20

 

converted into written form within a reasonable time. At all reasonable times the
information contained in such register or registers shall be available for inspection at the
Corporate Trust Office of the Trustee or at such other office or agency to be maintained by
the Obligor pursuant to Section 9.02.

     Upon due presentation for registration of transfer of any Note at the Corporate Trust
Office of the Trustee or at any other office or agency maintained by the Obligor pursuant to
Section 9.02, the Obligor shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Notes of authorized
denominations, of a like aggregate principal amount, series and Maturity Date.

     (2) Transfer of Global Notes. Any other provision of this Section 2.04
notwithstanding, unless and until it is exchanged in whole or in part for Definitive Notes,
a Global Note representing all or a portion of the Notes of a series may not be transferred
except as a whole by the Depositary to a nominee of such Depositary, or by a nominee of such
Depositary to such Depositary or another nominee of such Depositary, or by such Depositary
or any such nominee to a successor Depositary or a nominee of such successor Depositary.

     The Obligor initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes of each series.

     (3) Legends.

     Each Global Note shall bear the legend specified in clause (i) of Section 2.01(2) on
the face thereof.

     (4) Definitive Notes.

     (i) Notwithstanding any other provisions of this Indenture or the Notes, a Global Note
may be exchanged for Notes of the same series registered in the names of any Person
designated by the Depositary in the event that (a) the Depositary has notified the Obligor
that it is unwilling or unable to continue as Depositary for such Global Note or such
Depositary has ceased to be a “clearing agency” registered under the Exchange Act, at a time
when the Depositary is required to be so registered in order to act as depositary, and the
Obligor has not appointed a successor Depositary within 90 days of receiving such notice or
of becoming aware of such cessation, (b) an Event of Default has occurred and is continuing
with respect to the applicable Notes, or (c) the Obligor, in its sole discretion, determines
that the applicable Notes issued in the form of Global Notes shall no longer be represented
by such Global Notes as evidenced by a Company Order delivered to the Trustee. Any Global
Note exchanged pursuant to clause (a) or (c) above shall be so exchanged in whole and not in
part and any Global Note exchanged pursuant to clause (b) above may be exchanged in whole or
from time to time in part as directed by the Depositary. Any Note issued in exchange for a
Global Note of the same series or any portion thereof shall be a Global Note, provided that
any such Note so issued that is registered in the name of a Person other than the Depositary
or a nominee thereof shall not be a Global Note.

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     (ii) If at any time the Depositary for the Notes of any series notifies the Obligor
that it is unwilling or unable to continue as Depositary for such Notes or if the Depositary
has ceased to be a “clearing agency” registered under the Exchange Act at a time when the
Depositary is required to be so registered in order to act as depositary, the Obligor may
within 90 days of receiving such notice or of becoming aware of such cessation appoint a
successor Depositary with respect to such Notes.

     (iii) If, in accordance with this Section 2.04(4), Notes of any series in global form
will no longer be represented by Global Notes, the Obligor will execute, and the Trustee,
upon receipt of an Authentication Order, will authenticate and make available for delivery,
Definitive Notes of such series in an aggregate principal amount equal to the principal
amount of the Global Notes of such series, in exchange for such Global Notes.

     (iv) If a Definitive Note is issued in exchange for any portion of a Global Note after
the close of business at the office or agency where such exchange occurs on any Record Date
for the payment of interest and before the opening of business at such office or agency on
the next succeeding Interest Payment Date, interest shall not be payable on such Interest
Payment Date in respect of such Definitive Notes, but shall be payable on such Interest
Payment Date only to the Person to whom interest in respect of such portion of such Global
Note is payable in accordance with the provisions of this Indenture.

     (v) Definitive Notes issued in exchange for a Global Note pursuant to this Section
2.04(4) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. Upon execution and authentication, the Trustee shall deliver
such Definitive Notes to the Persons in whose names such Notes are so registered. To permit
registrations of transfers and exchanges, the Obligor shall execute and the Trustee (or an
Authenticating Agent appointed pursuant to this Indenture) shall authenticate and make
available for delivery Definitive Notes at the Registrar’s request, and upon direction of
the Obligor. No service charge shall be made for any registration of transfer or exchange,
but the Obligor or the Trustee may require payment of a sum sufficient to cover any transfer
tax or other governmental charge payable in connection with any registration of transfer or
exchange.

     (vi) When Definitive Notes are presented to the Trustee with a request to register the
transfer of such Definitive Notes or to exchange such Definitive Notes for an equal
principal amount of Definitive Notes of other authorized denominations of the same series,
the Trustee shall register the transfer or make the exchange as requested if its
requirements for such transaction are met; provided, however, that the Definitive Notes
surrendered for transfer or exchange shall be duly endorsed or accompanied by a written
instrument of transfer in form reasonably satisfactory to the Obligor and the Trustee, duly
executed by the Holder thereof or his attorney duly authorized in writing.

     (vii) At such time as all interests in Global Notes of any series have either been
exchanged for Definitive Notes of such series or cancelled, such Global Notes shall be
cancelled by the Trustee in accordance with the standing procedures and instructions
existing between the Depositary and the Custodian. At any time prior to such

22

 

cancellation, if any interest in a Global Note of any series is exchanged for
Definitive Notes of such series or cancelled, the principal amount of such Global Note
shall, in accordance with the standing procedures and instructions existing between the
Depositary and the Custodian, be reduced and an endorsement shall be made on such Global
Note, by the Trustee or the Custodian, at the direction of the Trustee, to reflect such
reduction.

     (5) Notwithstanding anything in this Indenture to the contrary, (i) all Notes issued
upon any registration of transfer or exchange of Notes shall be the valid obligations of the
Obligor, evidencing the same debt, and entitled to the same benefits under this Indenture,
as the Notes surrendered upon such registration of transfer or exchange, (ii) all transfers
and exchanges of the Notes may be made only in accordance with the procedures set forth in
this Indenture, and (iii) the transfer and exchange of a beneficial interest in a Global
Note may only be effected through the Depositary in accordance with the procedures
promulgated by the Depositary.

     (6) The Obligor shall not be required to (i) issue, register the transfer of, or
exchange any Note during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Notes under Section 10.03 and ending at the
close of business on the date of such mailing or (ii) register the transfer of or exchange
any Note so selected for redemption in whole or in part, except, in the case of any Note to
be redeemed in part, the portion thereof not to be redeemed.

     SECTION 2.05. Mutilated, Destroyed, Lost and Stolen Notes.

     (1) If (i) any mutilated Note is surrendered to the Trustee, or the Obligor and the
Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Note
and (ii) there is delivered to the Obligor and the Trustee such security or indemnity as may
be required by them to save each of them harmless, then, in the absence of notice to the
Obligor or the Trustee that such Note has been acquired by a protected purchaser, the
Obligor may in its discretion execute and, upon request of the Obligor, the Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Note, a new Note of like tenor, series, Maturity Date, and principal amount,
bearing a number not contemporaneously outstanding.

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

     (3) Upon the issuance of any new Note under this Section 2.05, the Obligor may require
the payment by the Holder thereof 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.

     (4) Every new Note issued pursuant to this Section 2.05 in lieu of any mutilated,
destroyed, lost or stolen Note shall constitute an original contractual obligation of the
Obligor, whether or not the mutilated, destroyed, lost or stolen Note shall be at any

23

 

time enforceable by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Notes duly issued hereunder.

     (5) The provisions of this Section 2.05 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 Notes.

     SECTION 2.06. Payment of Interest; Interest Rights Preserved.

     (1) Interest on any Note which is payable and is punctually paid or duly provided for
on any Interest Payment Date shall, if so provided in such Note, be paid to the Person in
whose name that Note (or one or more Predecessor Notes) is registered at the close of
business on the applicable Record Date, notwithstanding any transfer or exchange of such
Note subsequent to such Record Date and prior to such Interest Payment Date (unless, if so
provided in such Note, such Interest Payment Date is also the Maturity Date, in which case
such interest shall be payable to the Person to whom principal is payable).

     (2) Any interest on any Note 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 registered Holder on the applicable Record Date by
virtue of his having been such Holder; and, except as hereinafter provided, such Defaulted
Interest may be paid by the Obligor, at its election in each case, as provided in clause (i)
or (ii) below:

     (i) The Obligor may elect to make payment of any Defaulted Interest to the Persons in
whose names any such Notes (or their respective Predecessor Notes) 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 Obligor shall notify the Trustee in writing of
the amount of Defaulted Interest proposed to be paid on each such Note and the date of the
proposed payment, and at the same time the Obligor 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 nor 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 Obligor of such Special Record
Date and, in the name and at the expense of the Obligor, 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 the Holder of each such Note at his address as it appears in
the Security Register, not less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date therefor having
been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose
names

24

 

such Notes (or their respective Predecessor Notes) are registered on such Special
Record Date and shall no longer be payable pursuant to the following clause (ii).

     (ii) The Obligor may make payment of any Defaulted Interest in any other lawful manner
if, after notice given by the Obligor to the Trustee of the proposed payment pursuant to
this clause (ii), such manner of payment shall be deemed practicable by the Trustee.

     (3) If any installment of interest on any Note called for redemption pursuant to
Article X is due and payable on or prior to the Redemption Date and is not paid or duly
provided for on or prior to the Redemption Date in accordance with the foregoing provisions
of this Section 2.06, such interest shall be payable as part of the Redemption Price of such
Notes.

     (4) Interest on Notes may be paid at the office or agency maintained by the Obligor in
New York City pursuant to Section 9.02 or, at the Obligor’s option, through DTC, Clearstream
Banking, S.A., Luxembourg, or Euroclear System to the Person entitled thereto or by such
other means as may be specified in the form of such Note.

     (5) Subject to the foregoing provisions of this Section 2.06 and the provisions of
Section 2.04, each Note delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Note shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Note.

     SECTION 2.07. Persons Deemed Owners.

     (1) Prior to due presentment of a Note for registration of transfer, the Obligor, the
Guarantor, the Trustee, and any agent of the Obligor, the Guarantor or the Trustee may treat
the Person in whose name any Note is registered on the Security Register as the owner of
such Note for the purpose of receiving payment of principal, premium, if any, and (subject
to Section 2.06) interest, and for all other purposes whatsoever, whether or not such Note
is overdue and neither the Obligor, the Guarantor, the Trustee, nor any agent of the
Obligor, the Guarantor or the Trustee shall be affected by notice to the contrary.

     (2) None of the Obligor, the Guarantor, the Trustee, any Authenticating Agent, any
Paying Agent, the Registrar or any Co-Registrar will have any responsibility or liability
for any aspect of the records relating to or payments made on account of beneficial
ownership interests of a Global Note or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests and each of them may act or refrain
from acting without liability on any information relating to such records provided by the
Depositary.

          SECTION 2.08. Cancellation. All Notes surrendered for payment, redemption,
registration of transfer or exchange shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and, if not already cancelled, shall be promptly cancelled by it. The
Obligor may at any time deliver to the Trustee for cancellation any Notes previously authenticated
and delivered hereunder which the Obligor may have acquired in any manner

25

 

whatsoever, and all Notes so delivered shall be promptly cancelled by the Trustee.
Acquisition of such Notes by the Obligor shall not operate as a redemption or satisfaction of the
indebtedness represented by such Notes unless and until the same are delivered to the Trustee for
cancellation. No Note shall be authenticated in lieu of or in exchange for any Notes cancelled as
provided in this Section 2.08, except as expressly permitted by this Indenture. The Trustee shall
dispose of all cancelled Notes in accordance with its customary procedures and, upon written
request, deliver a certificate of such disposition to the Obligor.

          SECTION 2.09. Computation of Interest. Interest on the Notes shall be calculated on
the basis of a 360-day year of twelve 30-day months.

          SECTION 2.10. CUSIP Numbers. The Obligor in issuing the Notes may use “CUSIP” and
“ISIN” numbers (if then generally in use), and, if so, the Trustee shall use the CUSIP or ISIN
numbers, as the case may be, 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 or accuracy of the
CUSIP or ISIN number, as the case may be, either as printed on the Notes or as contained in any
notice of a redemption and that reliance may be placed only on the other identification numbers
printed on the Notes. The Obligor will promptly notify the Trustee in writing of any change in the
CUSIP or ISIN number.

ARTICLE III

DISCHARGE OF INDENTURE

          SECTION 3.01. Discharge of Indenture. This Indenture will be discharged with respect
to the Notes of a series and will cease to be of further effect as to all such Notes (except as to
any surviving rights of transfer or exchange of such Notes expressly provided for herein), and the
Trustee, on demand of and at the expense of the Obligor, shall execute proper instruments
acknowledging the discharge of this Indenture with respect to the Notes of such series, when

     (1) either

     (i) all Notes of such series theretofore authenticated and delivered (except (a)
mutilated, lost, stolen or destroyed Notes which have been replaced or paid, as provided in
Section 2.05, and (b) Notes for whose payment money has theretofore been deposited in trust
or segregated and held in trust by the Obligor and thereafter repaid to the Obligor or
discharged from such trust, as provided in Section 3.05) have been delivered to the Trustee
cancelled or for cancellation; or

     (ii) all such Notes of such series not theretofore delivered to the Trustee cancelled
or for cancellation

     (a) have become due and payable, or

     (b) will, in accordance with their Maturity Date, become due and payable within
one year, or

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     (c) 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 Obligor, and, in any of the cases described in
(a) or (b) above or in this clause (c), the Obligor has deposited or caused to be
deposited with the Trustee, as trust funds in trust for the benefit of the Holders of
such Notes for that purpose, U.S. dollars or non-callable U.S. Government Obligations
or a combination thereof in such amounts sufficient to pay and discharge the entire
indebtedness on the Notes of such series not theretofore delivered to the Trustee
cancelled or for cancellation, for principal of and interest and premium, if any, on
the Notes of such series to the date of such deposit (in the case of Notes of such
series that have become due and payable), or to the Maturity Date or the Redemption
Date, as the case may be;

     (2) the Obligor has paid or caused to be paid all other sums payable by it with respect
to the Notes of such series under this Indenture;

     (3) in the event of a deposit and defeasence under Section 3.01(1)(ii), no Event of
Default or event which with notice or lapse of time would become an Event of Default has
occurred and is continuing with respect to the Notes of such series on the date of such
deposit; and

     (4) the Obligor has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel each stating that all conditions precedent to the discharge of this Indenture with
respect to the Notes of such series have been complied with, and in the event of a deposit
and defeasance under Section 3.01(1)(ii), in the case of the Opinion of Counsel, stating:

     (i) either that no requirement to register under the Investment Company Act of 1940, as
amended, will arise as a result of the Obligor’s exercise of its option under this Section
3.01 or that any such registration requirement has been complied with; and

     (ii) such deposit and defeasance will not result in a material breach or violation of,
or constitute a default under, any material agreement or instrument to which the Obligor is
a party. Notwithstanding the discharge of this Indenture with respect to the Notes of such
series, the obligations of the Obligor under Section 3.01(1) and the obligations of the
Obligor to the Trustee under Section 5.07 and to any Authenticating Agent under Section 5.14
shall survive, and the obligations of the Trustee under Sections 3.03 and 3.05 shall
survive.

          SECTION 3.02. Defeasance and Discharge of Covenants upon Deposit of Moneys, U.S.
Government Obligations. At the Obligor’s option, either (a) the Obligor shall be deemed to
have been Discharged (as defined below) from its obligations with respect to the Notes of any
series on the 123rd day after the applicable conditions set forth below have been satisfied
(“Legal Defeasance”) and/or (b) the Obligor and the Guarantor shall cease to be under any
obligation to comply with any term, provision or condition set forth in Sections 7.01, 7.02, 9.06
and 9.07 with respect to the Notes of such series at any time after the applicable conditions set
forth below have been satisfied (“Covenant Defeasance”):

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     (1) The Obligor or the Guarantor 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 Notes of such series, an
amount of money, in cash in U.S. dollars sufficient, or in non-callable U.S. Government
Obligations, the principal of and interest on which, when due, will be sufficient, or a
combination thereof, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge the entire indebtedness on the Notes of such series with
respect to principal, premium, if any, and accrued and unpaid interest to the date of such
deposit (in the case of Notes of any series that have become due and payable), or to the
Maturity Date or Redemption Date, as the case may be;

     (2) No Event of Default, or event which with notice or lapse of time would become an
Event of Default with respect to the Notes of such series, shall have occurred and be
continuing on the date of such deposit;

     (3) The Obligor shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel each stating that all conditions precedent to the defeasance and
discharge contemplated by this Section 3.02 have been complied with, and, in the case of the
Opinion of Counsel stating that:

     (i) the deposit and defeasance contemplated by this Section 3.02 will not cause the
Holders of the Notes of such series to recognize income, gain or loss for Federal income tax
purposes as a result of the Obligor’s exercise of its option under this Section 3.02 and
such Holders will be subject to Federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such option had not been exercised,
which Opinion of Counsel (in the case of a Legal Defeasance) must be based upon a ruling of
the Internal Revenue Service to the same effect or a change in applicable Federal income tax
law or related treasury regulations after the date of this Indenture; and

     (ii) either no requirement to register under the Investment Company Act of 1940, as
amended, will arise as a result of the Obligor’s exercise of its option under this Section
3.02 or any such registration requirement has been complied with; and

     (4) with respect to a Legal Defeasance, 123 days shall have passed during which no
Event of Default under clauses (iv) and (v) of Section 4.01(1) or under clauses (ii) or
(iii) of Section 4.01(2) has occurred.

     If in connection with the exercise by the Obligor of any option under this Section
3.02, any series of Notes is to be redeemed, either notice of such redemption shall have
been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee
shall have been made.

     Notwithstanding the exercise by the Obligor of its option under Section 3.02(b) with
respect to Section 7.01, the obligation of any successor Entity to assume the obligations to
the Trustee under Section 5.07 shall not be discharged.

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     “Discharged” means, as to any series of Notes, that the Obligor shall be deemed
to have paid and discharged the entire indebtedness represented by, and obligations under,
the Notes of such series and to have satisfied all the obligations under this Indenture
relating to such series of Notes (and the Trustee, at the expense of the Obligor, shall
execute proper instruments acknowledging the same), except (A) the rights of Holders of
Notes of such series to receive, from the trust fund described in clause (1) above, payment
of the principal of, premium, if any, and the interest, if any, on such series of Notes when
such payments are due; (B) the Obligor’s obligations with respect to such Notes under
Sections 2.04, 2.05, 3.02(1), 3.03, and 9.02 and its obligations under Section 5.07; and (C)
the rights, powers, trusts, duties and immunities of the Trustee hereunder.

          SECTION 3.03. Application of Trust Money. All money and U.S. Government Obligations
deposited with the Trustee pursuant to Section 3.01 or Section 3.02 and all proceeds of such U.S.
Government Obligations and the interest thereon shall be held in trust and applied by it, in
accordance with the provisions of this Indenture, to the payment, either directly or through any
Paying Agent (including the Obligor acting as its own Paying Agent), as the Trustee may determine,
to the Persons entitled thereto, of the principal, premium, if any, and interest, for whose payment
such money and U.S. Government Obligations have been deposited with the Trustee; but such money and
U.S. Government Obligations need not be segregated from other funds except to the extent required
by law.

          SECTION 3.04. Paying Agent to Repay Moneys Held. Upon the discharge of this Indenture
or a Legal Defeasance, in each case, with respect to the Notes of a series, all moneys then held by
any Paying Agent under the provisions of this Indenture with respect to such Notes (other than the
Trustee) shall, upon demand of the Obligor, be repaid to it or paid to the Trustee, and thereupon
such Paying Agent shall be released from all further liability with respect to such moneys.

          SECTION 3.05. Return of Unclaimed Amounts. Any amounts deposited with or paid to the
Trustee or any Paying Agent for payment of the principal of, premium, if any, or interest on any
series of Notes or then held by the Obligor, in trust for the payment of the principal of, premium,
if any, or interest on any series of Notes and not applied but remaining unclaimed by the Holders
of such series of Notes for two years after the date upon which the principal of, premium, if any,
or interest on such series of Notes, as the case may be, shall have become due and payable, shall
be repaid to the Obligor by the Trustee on demand or (if then held by the Obligor) shall be
discharged from such Trust; and the Holder of any Notes of such series shall thereafter, as an
unsecured general creditor, look only to the Obligor for any payment which such Holder may be
entitled to collect (until such time as such unclaimed amounts shall escheat, if at all, to any
applicable jurisdiction) and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Obligor as trustee thereof, shall thereupon cease.
Notwithstanding the foregoing, the Trustee or Paying Agent, before being required to make any such
repayment, may at the expense of the Obligor cause to be published once a week for two successive
weeks (in each case on any day of the week) in a newspaper printed in the English language and
customarily published at least once a day at least five days in each calendar week and of general
circulation in the Borough of Manhattan, in the City and State of New York, a notice that said
amounts have not been so applied and that after a date named

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therein any unclaimed balance of said amounts then remaining will be promptly returned to the
Obligor.

          SECTION 3.06. Reinstatement. If the Trustee or any Paying Agent is unable to apply
any money in accordance with Section 3.03 by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Obligor’s obligations under this Indenture and the Holders
of Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 3.01
until such time as the Trustee or such Paying Agent is permitted to apply all such money in
accordance with Section 3.03.

ARTICLE IV

REMEDIES

          SECTION 4.01. Events of Default. “Event of Default,” wherever used herein, means with
respect to Notes of any series, any 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) on and after the date hereof:

     (i) default in the payment of any principal of or premium, if any, on the Notes of such
series when due (whether at maturity, upon redemption or otherwise);

     (ii) default in the payment of any interest on any Note of such series, when it becomes
due and payable, and continuance of such default for a period of 30 days;

     (iii) default in the performance or breach of any covenant or warranty of the Obligor
under this Indenture in respect of the Notes of such 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 Obligor by the Trustee or to the Obligor and the Trustee by the Holders of at
least a majority in aggregate principal amount of the Outstanding Notes of such 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;

     (iv) the entry of an order for relief against the Obligor, PBG or any Restricted
Subsidiary of PBG under the Bankruptcy Code by a court having jurisdiction in the premises
or a decree or order by a court having jurisdiction in the premises adjudging the Obligor,
PBG or any Restricted Subsidiary of PBG as bankrupt or insolvent under any other applicable
Federal or state law, or the entry of a decree or order approving as properly filed a
petition seeking reorganization, arrangement, adjustment or composition of or in respect of
the Obligor, PBG or any Restricted Subsidiary of PBG under the Bankruptcy Code or any other
applicable Federal or state law, or appointing a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Obligor, PBG or any Restricted Subsidiary of
PBG or of any substantial part of their respective properties,

30

 

or ordering the winding up or liquidation of their respective affairs, and the
continuance of any such decree or order unstayed and in effect for a period of 90
consecutive days;

     (v) the consent by the Obligor, PBG or any Restricted Subsidiary of PBG to the
institution of bankruptcy or insolvency proceedings against any of them, or the filing by
the Obligor, PBG or any Restricted Subsidiary of PBG of a petition or answer or consent
seeking reorganization or relief under the Bankruptcy Code or any other applicable Federal
or state law, or the consent by the Obligor, PBG or any Restricted Subsidiary of PBG to the
filing of any such petition or to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Obligor, PBG or any Restricted
Subsidiary of PBG or of any substantial part of their respective properties, or the making
by the Obligor, PBG or any Restricted Subsidiary of PBG of an assignment for the benefit of
creditors, or the admission by the Obligor, PBG or any Restricted Subsidiary of PBG in
writing of the Obligor’s, PBG’s or any Restricted Subsidiary of PBG’s inability to pay debts
generally as they become due, or the taking of corporate action by the Obligor, PBG or any
Restricted Subsidiary of PBG in furtherance of any such action; and

     (vi) the maturity of any Debt of the Obligor, PBG or any Restricted Subsidiary of PBG
having a then outstanding principal amount in excess of $75 million shall have been
accelerated by any holder or holders thereof or any trustee or agent acting on behalf of
such holder or holders, in accordance with the provisions of any contract evidencing,
providing for the creation of or concerning such Debt or failure to pay at the stated
maturity (and the expiration of any grace period) any Debt of the Obligor, PBG or any
Restricted Subsidiary of PBG having a then outstanding principal amount in excess of $75
million; and

     (2) on and after the Guarantee Commencement Date (in the event that the Guarantee
Commencement Date shall occur):

     (a) default in the performance or breach of any covenant or warranty of the Guarantor
under this Indenture, 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 Guarantor by the Trustee
or to the Guarantor and the Trustee by the Holders of at least a majority in aggregate
principal amount of the Outstanding Notes, 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;

     (b) the entry of an order for relief against the Guarantor under the Bankruptcy Code by
a court having jurisdiction in the premises or a decree or order by a court having
jurisdiction in the premises adjudging the Guarantor as bankrupt or insolvent under any
other applicable Federal or state law, or the entry of a decree or order approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of
or in respect of the Guarantor under the Bankruptcy Code or any other applicable Federal or
state law, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of the Guarantor or of any substantial part of its property, or

31

 

ordering the winding up or liquidation of its affairs, and the continuance of any such
decree or order unstayed and in effect for a period of 90 consecutive days;

     (c) the consent by the Guarantor to the institution of bankruptcy or insolvency
proceedings against the Guarantor, or the filing by the Guarantor of a petition or answer or
consent seeking reorganization or relief under the Bankruptcy Code or any other applicable
Federal or state law, or the consent by the Guarantor to the filing of any such petition or
to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of the Guarantor or of any substantial part of its property, or the making
by the Guarantor of an assignment for the benefit of creditors, or the admission by the
Guarantor in writing of the Guarantor’s inability to pay debts generally as they become due,
or the taking of corporate action by the Guarantor in furtherance of any such action; and

     (d) the Guarantee ceases to be in full force and effect, or the Guarantor denies or
disaffirms its obligations under the Guarantee, in each case, in accordance with Article XI.

     No Event of Default with respect to a single series of Notes issued hereunder (and
under or pursuant to any Supplemental Indenture or Managing Directors Resolution)
necessarily constitutes an Event of Default with respect to any other series of Notes.

     SECTION 4.02. Acceleration of Maturity; Rescission and Annulment.

     (1) If any Event of Default (other than an Event of Default specified in clause (iv) or
(v) of Section 4.01(1)) with respect to the Notes of any series occurs and is continuing,
then either the Trustee or the Holders of a majority in aggregate principal amount of the
Outstanding Notes of such series may declare the principal of all Outstanding Notes of such
series, and the interest, if any, accrued thereon, to be immediately due and payable by
notice in writing to the Obligor (and to the Trustee if given by Holders). If an Event of
Default described in clause (iv) or (v) of Section 4.01(1) occurs, then the principal amount
of all the Notes then outstanding and interest accrued thereon, if any, will become and be
immediately due and payable without any declaration or other act on the part of the Trustee
or the Holders of the Notes, to the full extent permitted by applicable law.

     (2) At any time after such a declaration of acceleration has been made with respect to
the Notes of any series and before a judgment or decree for payment of the money due has
been obtained by the Trustee as hereinafter in this Article IV provided, the Holders of a
majority in aggregate principal amount of the Outstanding Notes of such series by written
notice to the Obligor and the Trustee, may rescind and annul such declaration or waive past
defaults and its consequences, except with respect to a default in respect of a covenant or
provision of this Indenture which cannot be modified or amended without the consent of the
Holder of each Outstanding Note affected thereby, if:

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

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     (a) all overdue installments of interest, if any, on such series of Notes,

     (b) the principal of (and premium, if any, on) any such series of Notes which
have become due otherwise than by such declaration of acceleration, and interest
thereon at the rate prescribed therefor by the Notes of such series, to the extent
that payment of such interest is lawful,

     (c) interest on overdue installments of interest at the rate prescribed therefor
by the Notes of such series to the extent that payment of such interest is lawful,
and

     (d) the reasonable compensation, expenses, disbursements and advances of the
Trustee and its agents and counsel, and all other amounts due the Trustee under
Section 5.07; and

     (ii) all Events of Default, other than the nonpayment of the principal of the Notes of
such series which have become due solely by such acceleration, have been cured or waived as
provided in Section 4.13.

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

     SECTION 4.03. Collection of Indebtedness and Suits for Enforcement.

     (1) The Obligor covenants that if:

     (i) default is made in the payment of any installment of interest on any Note of any
series when such interest becomes due and payable, or

     (ii) default is made in the payment of (or premium, if any, on) the principal of any
Note of any series at the Maturity thereof, and

     (iii) any such default continues for any period of grace provided in relation to such
default pursuant to Section 4.01,

then, with respect to such series of Notes, the Obligor will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of the Notes of such series, the whole amount then due and
payable on all Notes of such series for principal (and premium, if any) and interest, together with
interest (to the extent that payment of such interest shall be legally enforceable) upon the
overdue principal (and premium, if any) and upon overdue installments of interest at the rate of
interest prescribed therefor by the Notes of such series; 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 and all other amounts due the Trustee under Section 5.07.

     (2) If the Obligor fails to pay such amounts forthwith upon such demand, the Trustee,
in its own name and as trustee of an express trust, may institute a judicial proceeding for
the collection of the sums so due and unpaid, and may prosecute such

33

 

proceeding to judgment or final decree, and may enforce the same against the Obligor or
any other obligor upon such Notes and collect the money adjudged or decreed to be payable in
the manner provided by law out of the property of the Obligor or any other obligor upon such
Notes, wherever situated.

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

     SECTION 4.04. Trustee May File Proofs of Claim.

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

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

     (ii) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same; and any 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 to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee and its agent and counsel, and any other amounts due the Trustee
under Section 5.07.

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

          SECTION 4.05. Trustee May Enforce Claims Without Possession of Notes. All rights of
action and claims under this Indenture or the Notes of any series may be prosecuted

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and enforced by the Trustee without the possession of any of the Notes of such series 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 and its agents and counsel, be for the ratable benefit of
the Holders of the Notes of such series.

          SECTION 4.06. Application of Money Collected.

     (1) Any money collected by the Trustee from the Obligor pursuant to this Article IV
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, premium, if any, or
interest, if any, upon presentation of the Notes of any series 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 5.07.

          Second: To the payment of the amounts then due and unpaid upon such series of Notes for
principal, premium, if any, and interest, in respect of which or for the benefit of which such
money has been collected, ratably, without preference or priority of any kind.

     (2) Any money collected by the Trustee from the Guarantor with respect to the Guarantee
pursuant to this Article IV shall only be applied to the payment of the amount then due and
unpaid upon the Notes of any series for principal, premium, if any, and interest, in respect
of which or for the payment of which such money has been collected, ratably, without
preference or priority of any kind, upon presentation of the Notes of such series and the
notation thereon of the payment, if only partially paid, and upon surrender thereof, if
fully paid, at the date or dates fixed by the Trustee.

          SECTION 4.07. Limitation on Suits. No Holder of any Note of any series may institute
any action under this Indenture, unless and until:

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

     (2) the Holders of a majority in aggregate principal amount of the Outstanding Notes of
such series have requested the Trustee to institute proceedings in respect of such Event of
Default in its own name as Trustee hereunder;

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

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

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

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Notes of such series; it being understood and intended that no one or more Holders of
Notes of any series 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
Holders of Notes of such series, or to obtain or to seek to obtain priority or preference
over any other such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and proportionate benefit of all the Holders of all
Notes of such series.

          SECTION 4.08. Unconditional Right of Holders to Receive Payment of Principal, Premium and
Interest. Notwithstanding any other provision in this Indenture, the Holder of any Note shall
have the right, which is absolute and unconditional, to receive payment of the principal, premium,
if any, and (subject to Section 2.06) interest on such Note on or after the Maturity Date (or, in
the case of redemption, on or after the Redemption Date) and to institute suit for the enforcement
of any such payment on or after such respective date, and such right shall not be impaired or
affected without the consent of such Holder.

          SECTION 4.09. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, then and in every such case the Obligor, the
Trustee and the Holders shall, subject to any determination in such proceeding, 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 4.10. Rights and Remedies Cumulative. Except as provided in Section 2.05(5),
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 or 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 4.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder of any Note 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 IV 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 4.12. Control by Holders. The Holders of not less than a majority in
aggregate principal amount of the Outstanding Notes 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
of exercising any trust or power conferred on the Trustee with respect to the Notes of such series
provided that:

     (1) the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, determines that the action so directed may not

36

 

lawfully be taken or would conflict with this Indenture or if the Trustee in good faith
shall, by a Responsible Officer, determine that the proceedings so directed would involve it
in personal liability or be unjustly prejudicial to the Holders not taking part in such
direction, and

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

          SECTION 4.13. Waiver of Past Defaults. Subject to Section 4.02, the Holders of not
less than a majority in aggregate principal amount of the Outstanding Notes of any series may, on
behalf of the Holders of all Notes of such series, waive any past default hereunder with respect to
the Notes of such series, except a default not theretofore cured:

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

     (2) in respect of a covenant or provision in this Indenture which, under Article VIII,
cannot be modified without the consent of the Holder of each Outstanding Note of such
series.

          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 4.14. Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Note 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 or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section 4.14 shall not
apply to any suit instituted by the Trustee, to any suit instituted by any Holder or group of
Holders holding in the aggregate more than 10% in principal amount of the Outstanding Notes of any
series to which the suit relates, or to any suit instituted by any Holder pursuant to Section 4.08.

          SECTION 4.15. Waiver of Stay or Extension Laws. Each of the Obligor and the Guarantor
covenants (to the extent that each may lawfully do so) that it will not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension
law (other than any bankruptcy law) wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and each of the Obligor and the
Guarantor (to the extent that each 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.

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ARTICLE V

THE TRUSTEE

     SECTION 5.01. Certain Duties and Responsibilities of Trustee.

     (1) Except during the continuance of an Event of Default with respect to a series of
Notes:

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

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

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

     (3) 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:

     (i) this Subsection shall not be construed to limit the effect of Section 5.01(1);

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

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

38

 

     (iv) 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.

     (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 5.01.

          SECTION 5.02. Notice of Defaults. Within 90 days after the occurrence of any default
hereunder with respect to any series of Notes, the Trustee shall transmit by mail to all Holders of
Notes of such series, as their names and addresses appear in the Security Register, notice of such
default hereunder known to the Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the principal of or
interest or premium, if any, on any Note of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee or a
trust committee of directors, and/or Responsible Officers of the Trustee determine in good faith
that the withholding of such notice is in the interests of the Holders of the Outstanding Notes of
such series and; provided, further, that, in the case of any default of the character specified in
clause (iii) of Section 4.01(1) or in clause (i) of Section 4.01(2), no such notice to Holders of
Notes of such series shall be given until at least 60 days after the occurrence thereof. For the
purpose of this Section 5.02, the term “default” means any event which is, or after notice
or lapse of time or both would become, an Event of Default.

          SECTION 5.03. Certain Rights of Trustee. Except as otherwise provided in Section
5.01:

     (1) the Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture or other paper or document 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 Obligor described herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Managing Directors
may be sufficiently evidenced by a Managing Directors Resolution;

     (3) any request or direction of the Guarantor described 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;

     (4) 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;

39

 

     (5) the Trustee may consult with counsel of its selection and 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;

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

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

     (8) 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; and

     (9) the permissive rights of the Trustee enumerated herein shall not be construed as
duties.

          SECTION 5.04. Not Responsible for Recitals or Issuance of Notes. The recitals
contained herein and in the Notes, except the certificates of authentication, shall be taken as the
statements of the Obligor, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Notes. The Trustee shall not be accountable for the use or application by the Obligor of the Notes
or the proceeds thereof. The Trustee shall not be charged with notice or knowledge of any Event of
Default under clause (vi) of Section 4.01(1) or clause (iv) of Section 4.01(2) or of the identity
of a Restricted Subsidiary of the Obligor, PBG or the Guarantor unless either (i) a Responsible
Officer of the Trustee assigned to and working in its Corporate Trust Office shall have actual
knowledge thereof or (ii) notice thereof shall have been given to the Trustee in accordance with
Section 1.05 from the Obligor, the Guarantor or any Holder.

          SECTION 5.05. May Hold Notes. The Trustee or any Paying Agent, Registrar, or other
agent of the Obligor or the Guarantor, in its individual or any other capacity, may become the
owner or pledgee of Notes and, subject to Sections 5.08 and 5.12, may otherwise deal with the
Obligor or the Guarantor with the same rights it would have if it were not Trustee, Paying Agent,
Registrar, or such other agent.

          SECTION 5.06. 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

40

 

Trustee shall be under no liability for interest on any money received by it hereunder except
as otherwise agreed with the Obligor.

          SECTION 5.07. Compensation and Reimbursement. The Obligor covenants and agrees:

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

     (2) except as otherwise expressly provided herein, to reimburse 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 reasonable expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its negligence or
bad faith; and

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

          The Trustee shall have a lien prior to the Notes upon all property and funds held by it
hereunder for any amount owing it or any retiring Trustee pursuant to this Section 5.07, except
with respect to funds held in trust for the benefit of the Holders of particular Notes.

          Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee incurs expenses or renders services in connection with an Event of Default specified in
clause (iv) or (v) of Section 4.01(1) and clause (ii) or (iii) of Section 4.01(2), such expenses
(including the reasonable charges and expenses of its counsel) and compensation for such services
are intended to constitute expenses of administration under any applicable Federal or State
bankruptcy, insolvency, reorganization, or other similar law.

          The provisions of this Section shall survive the termination of this Indenture and the
resignation or removal of the Trustee.

          SECTION 5.08. Disqualification; Conflicting Interests. If the Trustee has or shall
acquire any conflicting interest within the meaning of the Trust Indenture Act, it shall either
eliminate such interest or resign as Trustee, to the extent and in the manner provided by, and
subject to the provisions of, the Trust Indenture Act and this Indenture. To the extent permitted
by such Act, the Trustee shall not be deemed to have a conflicting interest by virtue of being a
trustee under this Indenture with respect to Notes of more than one series or by virtue of being a
Trustee under:

     (i) the Indenture, dated as of February 8, 1999, among Pepsi Bottling Holdings, Inc.,
the Guarantor, as guarantor, and the Trustee, as supplemented by the

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Supplemental Indenture, dated as of February 9, 1999, among Pepsi Bottling Holdings,
Inc., the Guarantor, as guarantor, and the Obligor relating to the 2009 Notes,

     (ii) the Indenture, dated as of March 8, 1999, among PBG, the Obligor, as guarantor,
and the Trustee relating to the Senior Notes due 2029 of PBG and the Series B Senior Notes
due 2029 of PBG,

     (iii) the Indenture, dated as of November 15, 2002, among the Obligor, PepsiCo, Inc.,
as guarantor, and the Trustee relating to the Senior Notes due 2012 and the Series B Senior
Notes due 2012 of the Obligor,

     (iv) the Indenture, dated as of June 10, 2003, between the Obligor and the Trustee
relating to the Senior Notes due 2015 of the Obligor and the Series B Senior Notes due 2015
of the Obligor,

     (v) the Indenture, dated as of October 1, 2003, between the Obligor and the Trustee
relating to Senior Notes in one or more series of the Obligor, and

     (vi) the Indenture, dated as of March 30, 2006, between the Obligor and the Trustee
relating to Senior Notes in one or more series of the Obligor.

     SECTION 5.09. Corporate Trustee Required; Eligibility. There shall at all times be a
Trustee hereunder that shall be a corporation organized and doing business under the laws of the
United States of America or of any State or Territory thereof or of 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, and subject to supervision or examination by Federal or State
authority. If such corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then for the purposes
of this Section 5.09, 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.
If at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section 5.09, it shall resign immediately in the manner and with the effect hereinafter specified
in this Article V.

     SECTION 5.10. Resignation and Removal; Appointment of Successor.

     (1) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article V shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 5.11.

     (2) The Trustee may resign at any time with respect to the Notes of one or more series
by giving written notice thereof to the Obligor. If the instrument of acceptance by a
successor Trustee required by Section 5.11 shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Notes of such series.

42

 

     (3) The Trustee may be removed at any time with respect to the Notes of any series by
Act of the Holders of 66 2/3% in aggregate principal amount of the Outstanding Notes of such
series, delivered to the Trustee and to the Obligor.

     (4) If at any time:

     (i) the Trustee shall fail to comply with Section 5.08 after written request therefor
by the Obligor or by any Holder who has been a bona fide Holder of a Note for at least six
months, or

     (ii) the Trustee shall cease to be eligible under Section 5.09 and shall fail to resign
after written request therefor by the Obligor or by any such Holder, or

     (iii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation, then, in any such case, (A) the
Obligor by a Managing Directors Resolution may remove the Trustee with respect to all Notes,
or (B) subject to Section 4.14, any Holder who has been a bona fide Holder of a Note for at
least six months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee with respect to all Notes and
the appointment of a successor Trustee or Trustees.

     (5) If the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the Notes of one
or more series, the Obligor, by a Managing Directors Resolution, shall promptly appoint a
successor Trustee or Trustees with respect to the Notes of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the Notes of one
or more or all of such series and that at any time there shall be only one Trustee with
respect to the Notes of any particular series) and shall comply with the applicable
requirements of Section 5.11. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with respect to the
Notes of any series shall be appointed by Act of the Holders of 66 2/3% in aggregate
principal amount of the Outstanding Notes of such series delivered to the Obligor and the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of
such appointment in accordance with the applicable requirements of Section 5.11, become the
successor Trustee with respect to the Notes of such series and to that extent supersede the
successor Trustee appointed by the Obligor. If no successor Trustee with respect to the
Notes of any series shall have been so appointed by the Obligor or the Holders and accepted
appointment in the manner required by Section 5.11, any Holder who has been a bona fide
Holder of a Note of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment
of a successor Trustee with respect to the Notes of such series.

     (6) The Obligor shall give notice of each resignation and each removal of the Trustee
with respect to the Notes of any series and each appointment of a successor

43

 

Trustee with respect to the Notes of any series to all Holders of Notes of such series
in the manner provided in Section 1.06. Each notice shall include the name of the successor
Trustee with respect to the Notes of such series and the address of its Corporate Trust
Office.

          SECTION 5.11. Acceptance of Appointment by Successor. In case of the appointment
hereunder of a successor Trustee with respect to all Notes, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Obligor and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on the request of the Obligor or the successor Trustee, such retiring Trustee shall,
upon payment of its reasonable charges and subject to its lien, if any, provided by Section 5.07,
execute and deliver an instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.

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

          Upon request of any such successor Trustee, the Obligor shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in the first or second preceding paragraph, as the case may be.

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

          SECTION 5.12. Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided that such
corporation shall be otherwise qualified and eligible under this Article V, without the execution
or filing of any paper or any further act on the part of any of the parties hereto. In case any
Notes shall have been authenticated, but not delivered, by the Trustee then in office, any
successor Trustee by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Notes so authenticated with the same effect as if such
successor Trustee had itself authenticated such Notes.

          SECTION 5.13. Preferential Collection of Claims Against Obligor. If and when the
Trustee shall be or shall become a creditor of the Obligor (or of any other obligor upon the
Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the
collection of claims against the Obligor (or against any such other obligor, as the case may be).

          SECTION 5.14. Appointment of Authenticating Agent.

     (1) At any time when any of the Notes remain Outstanding the Trustee, with the approval
of the Obligor, may appoint an Authenticating Agent or Agents with respect to one or more
series of Notes which shall be authorized to act on behalf of the Trustee to authenticate
Notes of such series issued upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 2.05, and Notes 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 Notes 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 Obligor and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any state thereof or the
District of Columbia, authorized under such laws to act as an Authenticating Agent, having a
combined capital and surplus of not less than $50,000,000 and, if other than the Obligor
itself, 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 5.14, 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 5.14, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section 5.14.

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     (2) 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 5.14, without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent.

     (3) An Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and, if other than the Obligor, to the Obligor. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and, if other than the Obligor, to the Obligor. 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 5.14, the
Trustee, with the approval of the Obligor, may appoint a successor Authenticating Agent
which shall be acceptable to the Obligor and shall mail written notice of such appointment
by first-class mail, postage prepaid, to all Holders of Notes 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
5.14.

     (4) The Obligor agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 5.14.

     (5) If an appointment is made pursuant to this Section 5.14, the Notes may have
endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternate
certificate of authentication in the following form:

          This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	The Bank of New York Mellon

     as Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 

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ARTICLE VI

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND OBLIGOR

          SECTION 6.01. Obligor to Furnish Trustee Names and Addresses of Holders. The Obligor
will furnish or cause to be furnished to the Trustee:

     (1) semi-annually, not more than 15 days after the Record Date for the payment of
interest in respect of each series of Notes, in such form as the Trustee may reasonably
require, a list of the names and addresses of the Holders of such Notes as of such date,

     (2) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Obligor 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 that, in the case of (1) and (2), if the Trustee shall be the Registrar, such list
shall not be required to be furnished.

          SECTION 6.02. 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 of Notes of each series contained in the most recent list
furnished to the Trustee as provided in Section 6.01 and the names and addresses of Holders
of Notes received by the Trustee. The Trustee may destroy any list furnished to it as
provided in Section 6.01 upon receipt of a new list so furnished.

     (2) Holders of Notes may communicate as provided in Section 312(b) of the Trust
Indenture Act with other Holders of Notes with respect to their rights under this Indenture
or under the Notes.

     (3) Every Holder of Notes, by receiving and holding the same, agrees with the Obligor
that the Obligor shall not be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of Notes in accordance with Section
6.02(2), regardless of the source from which such information was derived.

          SECTION 6.03. Reports by Trustee.

     (1) Within 60 days after May 15 of each year commencing with the first May 15 following
the date of the initial issuance of Notes under this Indenture, the Trustee shall transmit
by mail to the Holders of Notes as their names and addresses appear in the Security
Register, a brief report dated as of such May 15, to the extent required under Section
313(a) of the Trust Indenture Act.

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

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     (3) A copy of each such report shall, at the time for such transmission to Holders of
Notes, be filed by the Trustee with the Obligor, with each stock exchange upon which any
Notes are listed (if so listed) and also with the Commission. The Obligor agrees to
promptly notify the Trustee when any Notes become listed on any stock exchange and of any
delisting thereof.

          SECTION 6.04. Reports by Obligor and Guarantor.

          The Obligor and the Guarantor shall comply with the provisions of Section 314(a) and 314(c) of
the TIA.

ARTICLE VII

CONSOLIDATION, MERGER OR TRANSFER

          SECTION 7.01. Obligor May Consolidate, Etc., Only on Certain Terms. The Obligor may
consolidate or merge with or into, or transfer or lease all or substantially all of its assets to,
any Entity that is organized and validly existing under the laws of any state of the United States
of America or the District of Columbia, and may permit any such Entity to consolidate with or merge
into the Obligor or transfer or lease all or substantially all of its assets to the Obligor,
provided that:

     (1) the Obligor will be the surviving Entity or, if not, that the successor Entity will
expressly assume by a supplemental indenture, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of and premium,
if any, and interest on all the Notes and the performance of every covenant of the Indenture
to be performed or observed by the Obligor;

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

     (3) the Obligor shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, transfer or lease and any
such assumption involving the Obligor complies with the provisions of this Article VII.

          SECTION 7.02. Guarantor May Consolidate, Etc., Only on Certain Terms. The Guarantor
may consolidate or merge with or into, or transfer or lease all or substantially all of its assets
to, any Entity, provided that:

     (1) the Guarantor will be the surviving Entity or, if not, that the successor Entity
formed by such consolidation or into which the Guarantor is merged or the Entity which
acquires by transfer or lease all or substantially all of the properties and assets of the
Guarantor will be an Entity organized and existing under the laws of any state of the United
States of America or the District of Columbia, and will expressly assume, by a supplemental
indenture hereto, executed and delivered to the Trustee, in form satisfactory

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to the Trustee, all of the obligations of the Guarantor under this Indenture and the
Guarantee;

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

     (3) the Guarantor shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, transfer or lease and any
such assumption involving the Guarantor complies with the provisions of this Article VII.

     In the event that the Guarantee shall not become effective and the Guarantee Commencement Date
shall not occur in accordance with the provisions of Section 11.01(3), the provisions of this
Section 7.02 shall not be applicable to the Guarantor.

          SECTION 7.03. Successor Entity Substituted. Upon any consolidation or merger, or any
transfer or lease of all or substantially all of the properties and assets of the Obligor, in
accordance with Section 7.01 or Section 7.02, as the case may be, the successor Entity will succeed
to and be substituted for the Obligor or the Guarantor, as the case may be, as Obligor or
Guarantor, as the case may be, on the Notes or on the Guarantee, as the case may be, with the same
effect as if it had been named in this Indenture as the Obligor or as the Guarantor, as the case
may be, and the Obligor or the Guarantor, as the case may be, shall thereupon, except in the case
of a lease, be released from all obligations hereunder and under the Notes and the Guarantee, as
applicable. Such successor to the Obligor may cause to be signed, and may issue either in its own
name or in the name of the Obligor prior to such succession any or all of the Notes issuable
hereunder which theretofore shall not have been signed by the Obligor and delivered to the Trustee;
and, upon the order of such successor Entity instead of the Obligor and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee, pursuant to the terms hereof,
shall authenticate and shall deliver any Notes which previously shall have been signed and
delivered by the Officers of the Obligor to the Trustee for authentication, and any Notes which
such successor to the Obligor thereafter shall cause to be signed and delivered to the Trustee for
that purpose. All of the Notes so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Notes theretofore or thereafter issued in accordance with the
terms of this Indenture as though all of such Notes had been issued at the date of the execution
hereof.

ARTICLE VIII

SUPPLEMENTAL INDENTURES

          SECTION 8.01. Supplemental Indentures Without Consent of Holders. Without the consent
of the Holders of any Notes, the Obligor, the Guarantor and the Trustee, at any time and from time
to time, may enter into one or more indentures supplemental hereto (which shall conform to the
provisions of the TIA as in force at the date of execution thereof), in form satisfactory to the
Trustee, for any of the following purposes:

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     (1) to evidence the succession of another Entity to the Obligor or the Guarantor, or
successive successions, and the assumption by any such successor of the covenants,
agreements and obligations of the Obligor or the Guarantor pursuant to Article VII; or

     (2) to add to the covenants of the Obligor or the Guarantor such further covenants,
restrictions or conditions for the protection of the Holders of the Notes as the Obligor,
the Guarantor and the Trustee shall consider to be for the protection of the Holders of the
Notes (and if such covenants are to be for the benefit of less than all series of Notes,
stating that such covenants are expressly being included solely for the benefit of such
series); or

     (3) to evidence the surrender of any right or power of the Obligor or the Guarantor; or

     (4) to cure any defect or ambiguity, to correct or supplement any provision herein
which may be 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; or

     (5) to add to this Indenture such provisions as may be expressly permitted by the TIA
as in effect at the date as of which this instrument is executed or any corresponding
provision in any similar federal statute hereafter enacted; or

     (6) to comply with any requirements of the Commission in connection with qualifying, or
maintaining the qualification of, this Indenture under the TIA; or

     (7) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Notes of one or more series and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 5.11; or

     (8) to add to the rights of the Holders of the Notes; or

     (9) to provide for the issuance of and establish the form or forms and terms and
conditions of Notes of any series as permitted by this Indenture; or

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

     (11) to conform this Indenture to the section entitled “Description of Debt Securities”
in the prospectus dated October [•], 2008 or any prospectus supplement to such prospectus
relating to the Notes or any corresponding section of such prospectus or prospectus
supplement pursuant to which any additional series of Notes is issued under this Indenture,
except as restricted under the TIA.

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          No supplemental indenture for the purposes identified in clause (2), (3), (4), (8) or (10)
above may be entered into if to do so would adversely affect the interest of the Holders of Notes.

          Any such supplemental indenture authorized by the provisions of this Section 8.01 may be
executed without the consent of the Holders of any of the Notes at the time outstanding,
notwithstanding any of the provisions of Section 8.02.

          SECTION 8.02. Supplemental Indentures with Consent of Holders. With the consent of
the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes of
all series affected by such supplemental indenture (voting as one class), the Obligor, when
authorized by a Managing Directors Resolution, the Guarantor, when authorized by a Board
Resolution, and the Trustee may from time to time and at any 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 any supplemental indenture or
of modifying in any manner the rights of the Holders of the Notes of each such series under this
Indenture; provided, however, that no such supplemental indenture shall, without the consent of the
Holder of each Outstanding Note affected thereby:

     (1) change the Maturity Date or the stated payment date of any payment of premium or
interest payable on such Note, or reduce the principal amount thereof, or any amount of
interest payable thereon, or change the method of computing the amount of interest payable
thereon on any date, or change any Place of Payment where, or the coin or currency in which,
any such Note or any payment of principal, premium or interest thereon is payable, or impair
the right to institute suit for the enforcement of any such payment on or after the same
shall become due and payable, whether at Maturity or, in the case of redemption, on or after
the Redemption Date; or

     (2) reduce the percentage in principal amount of the Outstanding Notes of the relevant
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 certain defaults hereunder and their
consequences, provided for in this Indenture; or

     (3) modify any of the provisions of this Section 8.02, Section 4.08 or Section 4.13,
except to increase any such percentage set forth in this Section 8.02 or Section 4.13 or to
provide that certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Note affected thereby, provided, however, that
this clause shall not be deemed to require the consent of any Holder with respect to changes
in the references to the “Trustee” and concomitant changes in this Section, or the deletion
of this proviso, in accordance with the requirements of Section 5.11 and 8.01(7).

          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 Notes, or which modifies the rights of the Holders of Notes 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 Notes of any other series.

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          It shall not be necessary for any Act of Holders under this Section 8.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

          SECTION 8.03. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article VIII or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 5.01) shall be fully protected in relying upon, in addition to the
documents required by Section 1.02, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. Upon request of the Obligor
and, in the case of Section 8.02, upon filing with the Trustee of evidence of an Act of Holders as
aforementioned, the Trustee and the Guarantor shall join with the Obligor in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, powers,
trusts, duties or immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such supplemental indenture.

          SECTION 8.04. Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article VIII, this Indenture shall be and be deemed to be
modified and amended in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and the respective rights, limitation of rights, duties, powers,
trusts and immunities under this Indenture of the Trustee, the Obligor, the Guarantor and every
Holder of Notes theretofore or thereafter authenticated and delivered hereunder shall be
determined, exercised and enforced thereunder to the extent provided therein.

          SECTION 8.05. Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article VIII shall conform to the requirements of the TIA as then in
effect.

          SECTION 8.06. Documents to Be Given to Trustee. The Trustee, subject to the
provisions of Section 5.01, may receive an Officers’ Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this Article VIII complies
with the applicable provisions of this Indenture.

          SECTION 8.07. Notation on Notes in Respect of Supplemental Indentures. Notes of any
series authenticated and delivered after the execution of any supplemental indenture pursuant to
the provisions of this Article may bear a notation in form approved by the Trustee for such series
as to any matter provided for by such supplemental indenture. If the Obligor or the Trustee shall
so determine, new Notes of any series so modified as to conform, in the opinion of the Trustee and
the Managing Directors, to any modification of this Indenture contained in any such supplemental
indenture may be prepared by the Obligor, authenticated by the Trustee and delivered in exchange
for the Notes of such series then Outstanding.

ARTICLE IX

COVENANTS

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          SECTION 9.01. Payment of Principal, Premium and Interest. The Obligor covenants and
agrees for the benefit of each series of Notes that it will duly and punctually pay or cause to be
paid the principal, premium, if any, and interest on such series of Notes on the dates and in the
manner provided in such series of Notes, and will duly comply with all the other terms, agreements
and conditions contained in this Indenture for the benefit of such series of Notes.

          The Obligor shall pay interest (including post-petition interest in any proceeding under any
Federal or state bankruptcy, insolvency, reorganization, or other similar law) on overdue principal
and premium, if any, from time to time on demand at the applicable rate of interest determined from
time to time in the manner provided for in each series of Notes; it shall pay interest (including
post-petition interest in any proceeding under any Federal or State bankruptcy, insolvency,
reorganization, or other similar law) on overdue installments of interest and (without regard to
any applicable grace periods) from time to time on demand at the same rates to the extent lawful.

          SECTION 9.02. Maintenance of Office or Agency. So long as any of the Notes remain
outstanding, the Obligor will maintain an office or agency in the City of New York where Notes may
be presented or surrendered for payment, where Notes may be surrendered for transfer or exchange,
and where notices and demands to or upon the Obligor in respect of the Notes and this Indenture may
be served. The Obligor will give prompt written notice to the Trustee of the location, and of any
change in the location, of such office or agency. If at any time the Obligor shall fail to
maintain such 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 Obligor hereby appoints the Trustee its agent to receive all such
presentations, surrenders, notices and demands.

          The Obligor may also from time to time designate one or more other offices or agencies where
one or more series of Notes 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 Obligor of its obligation to maintain an office or
agency in the City of New York for such purposes. The Obligor shall 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 9.03. Money for Note Payments to be Held in Trust. If the Obligor shall at
any time act as its own Paying Agent, it will, on or before each due date of the principal,
premium, if any, or interest on any series of Notes, segregate and hold in trust for the benefit of
the Holders of such series of Notes a sum sufficient to pay such principal, premium or interest so
becoming due until such sums shall be paid to such Holders of the Notes of such series or otherwise
disposed of as herein provided, and will promptly notify the Trustee of its action or failure so to
act.

          Whenever the Obligor shall have one or more Paying Agents, it will, on or prior to each due
date of the principal, premium, if any, or interest, on any series of Notes, deposit with a Paying
Agent a sum sufficient to pay such principal, premium, or interest so becoming due, such sum to be
held in trust for the benefit of the Holders of the Notes of such series entitled

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to the same and (unless such Paying Agent is the Trustee) the Obligor will promptly notify the
Trustee of its action or failure so to act.

          The Obligor will cause each Paying Agent other than the Trustee to execute and deliver to the
Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section 9.03, that such Paying Agent will:

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

     (2) give the Trustee prompt notice of any default by the Obligor (or any other obligor
upon the Notes of such series) in the making of any such payment of principal, premium, if
any, or interest, on such Notes; and

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

          The Obligor may, at any time, for the purpose of obtaining the 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 Obligor or such Paying Agent or, if for any other purpose, all sums so
held in trust by the Obligor in respect of all series of Notes, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Obligor 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.

          SECTION 9.04. Certificate to Trustee.

     (1) The Obligor will deliver to the Trustee, within 120 days after the end of each
fiscal year of the Obligor ending after the initial issuance of Notes under this Indenture,
an Officers’ Certificate that complies with TIA Section 314(a)(4) stating that in the course
of the performance by the signers of their duties as officers of the Obligor, they would
normally have knowledge of any default by the Obligor in the performance of any of its
covenants or agreements contained herein, stating whether or not they have knowledge of any
such default and, if so, specifying each such default of which the signers have knowledge
and the nature thereof.

     (2) The Guarantor will deliver to the Trustee, within 120 days after the end of each
fiscal year of the Guarantor ending after the initial issuance of Notes under this
Indenture, an Officers’ Certificate that complies with TIA Section 314(a)(4) stating that in
the course of the performance by the signers of their duties as officers of the Guarantor,
they would normally have knowledge of any default by the Guarantor in the performance of any
of its covenants or agreements contained herein, stating whether or not they have knowledge
of any such default and, if so, specifying each such default of which the signers have
knowledge and the nature thereof.

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          SECTION 9.05. Existence. Subject to Article VII, (1) the Obligor will do or cause to
be done all things necessary to preserve and keep in full force and effect its limited liability
company existence and (2) the Guarantor will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence.

          SECTION 9.06. Limitation on Liens.

     (1) Limitation on Liens with Respect to the Obligor: So long as any of the
Notes shall be Outstanding, neither the Obligor nor any Restricted Subsidiary of the Obligor
will incur, suffer to exist or guarantee any Debt, secured by a mortgage, pledge or lien (a
“Lien”) on any Principal Property (as such term is defined with respect to the
Obligor) or on any shares of stock of (or other interests in) any Restricted Subsidiary of
the Obligor unless the Obligor or such first mentioned Restricted Subsidiary secures or the
Obligor causes such Restricted Subsidiary to secure the Notes (and any other Debt of the
Obligor or such Restricted Subsidiary, at the option of the Obligor or such Restricted
Subsidiary, as the case may be, not subordinate to the Notes), equally and ratably with (or
prior to) such secured Debt, for so long as such secured Debt shall be so secured. This
restriction will not, however, apply to Debt secured by:

     (i) Liens existing prior to the initial issuance of Notes hereunder;

     (ii) Liens on property of or shares of stock of (or other interests in) any Entity
existing at the time such Entity becomes a Restricted Subsidiary of the Obligor;

     (iii) Liens on property of or shares of stock of (or other interests in) any Entity
existing at the time of acquisition thereof (including acquisition through merger or
consolidation);

     (iv) Liens securing indebtedness incurred to finance all or any part of the purchase
price of property or the cost of construction of such property (or additions, substantial
repairs, alterations or substantial improvements thereto), provided that such Lien and the
indebtedness secured thereby are incurred within 365 days after the later of (a) acquisition
of such property or the completion of construction (or addition, repair, alteration or
improvement) thereon and (b) the commencement of full operation thereof;

     (v) Liens in favor of the Obligor or any of its Restricted Subsidiaries;

     (vi) Liens in favor of, or required by contracts with, governmental entities; or

     (vii) any extension, renewal, or refunding referred to in any of the preceding clauses
(i) through (vi), provided that in the case of a Lien permitted under clause (i), (ii),
(iii), (iv) or (v), the Debt secured is not increased nor the Lien extended to any
additional assets.

          Notwithstanding the foregoing, the Obligor or any of its Restricted Subsidiaries may incur,
suffer to exist or guarantee any Debt secured by a Lien on any Principal Property (as such term is
defined with respect to the Obligor) or on any shares of stock of (or other interests

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           in) any Restricted Subsidiary of the Obligor if, after giving effect thereto, the aggregate
amount of Exempted Debt does not exceed 15% of Consolidated Net Tangible Assets of the Obligor.

     (2) Limitation on Liens with Respect to the Guarantor. On and after the
Guarantee Commencement Date (in the event that the Guarantee Commencement Date shall occur)
and so long as any of the Notes shall be Outstanding, neither the Guarantor nor any
Restricted Subsidiary of the Guarantor will incur, suffer to exist or guarantee any Debt,
secured by a Lien on any Principal Property (as such term is defined with respect to the
Guarantor) or on any shares of stock of (or other interests in) any Restricted Subsidiary of
the Guarantor unless the Guarantor or such first mentioned Restricted Subsidiary secures or
the Guarantor causes such Restricted Subsidiary to secure the Guarantee (and any other Debt
of the Guarantor or such Restricted Subsidiary, at the option of the Guarantor or such
Restricted Subsidiary, as the case may be, not subordinate to the Guarantee), equally and
ratably with (or prior to) such secured Debt, for so long as such secured Debt shall be so
secured. This restriction will not, however, apply to Debt secured by:

     (i) Liens existing prior to the Guarantee Commencement Date;

     (ii) Liens on property of or shares of stock of (of other interests in) any Entity
existing at the time such Entity becomes a Restricted Subsidiary of the Guarantor;

     (iii) Liens on property or shares of stock of (of other interests in) any Entity
existing at the time of acquisition thereof (including acquisition through merger or
consolidation) or to secure the payment of all or part of the purchase price thereof or
construction or improvements on such property or to secure any Debt incurred prior to, at
the time of, or within 365 days after the later of the acquisition, the completion of
construction, or the commencement of full operation of such property, or within 365 days
after the acquisition of such shares (or other interests) for the purpose of financing all
or any part of the purchase price of such shares (or other interests);

     (iv) Liens in favor of the Guarantor or any of its Restricted Subsidiaries;

     (v) Liens in favor of, or required by contracts with, governmental entities; and

     (vi) any extension, renewal, or refunding referred to in any of the preceding clauses
(i) through (v).

          Notwithstanding the foregoing, the Guarantor or any of its Restricted Subsidiaries may incur,
suffer to exist or guarantee any Debt secured by a Lien on any Principal Property (as such term is
defined with respect to the Guarantor) or on any shares of stock of (or other interests in) any
Restricted Subsidiary of the Guarantor if, after giving effect thereto, the aggregate amount of
such Debt does not exceed 15% of Consolidated Net Tangible Assets of the Guarantor.

          The transfer of a Principal Property by the Guarantor to an Unrestricted Subsidiary of the
Guarantor or the change in designation by the Guarantor of a Subsidiary which

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owns a Principal Property from Restricted Subsidiary to Unrestricted Subsidiary shall not be
restricted.

          SECTION 9.07. Limitation on Sale-Leaseback Transactions.

     (1) The Obligor will not, and will not permit any of its Restricted Subsidiaries to,
sell or transfer, directly or indirectly, except to the Obligor or a Restricted Subsidiary
of the Obligor, any Principal Property (as such term is defined with respect to the Obligor)
as an entirety, or any substantial portion thereof, with the intention of taking back a
lease of all or part of such property, except a lease for a period of three years or less at
the end of which it is intended that the use of such property by the lessee will be
discontinued; provided that, notwithstanding the foregoing, the Obligor or any of its
Restricted Subsidiaries may sell a Principal Property (as such term is defined with respect
to the Obligor) and lease it back for a period longer than three years (i) if the Obligor or
such Restricted Subsidiary would be entitled, pursuant to Section 9.06(1), to create a Lien
on the property to be leased securing Debt in an amount equal to the Attributable Debt with
respect to the sale and lease-back transaction without equally and ratably securing the
Outstanding Notes or (ii) if (A) the Obligor promptly informs the Trustee of such
transactions, (B) the net proceeds of such transactions are at least equal to the fair value
(as determined by a Managing Directors Resolution) of such property and (C) the Obligor
causes an amount equal to the net proceeds of the sale to be applied either (x) to the
retirement (whether by redemption, cancellation after open-market purchases, or otherwise),
within 365 days after receipt of such proceeds, of Funded Debt having an outstanding
principal amount equal to such net proceeds or (y) to the purchase or acquisition (or in the
case of property, the construction) of property or assets used in the business of the
Obligor or any Restricted Subsidiary, within 365 days after receipt of such proceeds.

     (2) Notwithstanding Section 9.07(1), the Obligor or any Restricted Subsidiary of the
Obligor may enter into sale and lease-back transactions in addition to those permitted by
Section 9.07(1), and without any obligation to retire any outstanding Funded Debt or to
purchase property or assets, provided that at the time of entering into such sale and
lease-back transactions and after giving effect thereto, Exempted Debt does not exceed 15%
of Consolidated Net Tangible Assets of the Obligor.

ARTICLE X

REDEMPTION OF NOTES

          SECTION 10.01. Election to Redeem; Notice to Trustee. If the Obligor elects to redeem
any series of Notes pursuant to the optional redemption provisions of Section 10.07 or any other
optional redemption provision provided for with respect to such series of Notes, it shall furnish
to the Trustee, at least 45 days but not more than 60 days before the Redemption Date, an Officers’
Certificate setting forth (1) the Redemption Date, and (2) the CUSIP and/or ISIN numbers of the
series of Notes to be redeemed.

57

 

          SECTION 10.02. Selection by Trustee of the Notes to be Redeemed. If fewer than all
the Notes of any series are to be redeemed, the particular Notes of such series to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the Trustee from the
Outstanding Notes of such series not previously called for redemption, by such method as the
Trustee shall deem fair and appropriate. The portions of the principal of Notes of such series so
selected for partial redemption shall be equal to $2,000, or an integral multiple of $1,000 in
excess thereof, and the principal amount which remains Outstanding shall not be less than $2,000.

          The Trustee shall promptly notify the Obligor in writing of the Notes selected for redemption
and, in the case of any Notes 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 Notes shall relate, in the case of any Note redeemed or to be
redeemed only in part, to the portion of the principal of such Note which has been or is to be
redeemed.

          SECTION 10.03. Notice of Redemption.

     (1) Notice of redemption to the Holders of Notes to be redeemed as a whole or in part
at the option of the Obligor shall be given by first-class mail, postage prepaid, mailed not
fewer than 30 nor more than 60 days prior to the Redemption Date, to each such Holder at
such Holder’s last address appearing in the Security Register.

     (2) All notices of redemption shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price, or if not then ascertainable, the manner of calculating the
Redemption Price;

     (iii) if fewer than all Outstanding Notes of any series are to be redeemed, the
identification (and, in the case of partial redemption, the respective principal amounts) of
the Notes of such series to be redeemed from the Holder to whom the notice is given and that
on and after the Redemption Date, upon surrender of such Note, a new Note or Notes of such
series in the aggregate principal amount equal to the unredeemed portion thereof will be
issued in accordance with Section 10.06;

     (iv) that on the Redemption Date the Redemption Price will become due and payable upon
each Note of such series called for redemption, and that interest, if any, thereon shall
cease to accrue from and after said date;

     (v) the place where Notes of such series called for redemption are to be surrendered
for payment of the Redemption Price, which shall be the office or agency maintained by the
Obligor pursuant to Section 9.02;

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

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     (vii) that the Notes called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price; and

     (viii) the CUSIP and/or ISIN number, and that no representation is made as to the
correctness or accuracy of the CUSIP and/or ISIN number, if any, listed in such notice or
printed on the series of Notes.

     (3) Notice of redemption of Notes shall be given by the Obligor or, at the Obligor’s
request, by the Trustee in the name and at the expense of the Obligor.

          SECTION 10.04. Deposit of Redemption Price. On or prior to 10 a.m., New York City
time, on any Redemption Date, the Obligor shall deposit with the Trustee or with a Paying Agent
(or, if the Obligor is acting as its own Paying Agent, segregate and hold in trust as provided in
Section 9.03) an amount of money sufficient to pay the Redemption Price of all the Notes of such
series which are to be redeemed on that date.

          SECTION 10.05. Notes Payable on Redemption Date.

     (1) Notice of redemption having been given as aforesaid, the Notes 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 Obligor shall default in the payment of
the Redemption Price) such Notes shall cease to bear interest. Upon surrender of such Notes
for redemption in accordance with the notice, such Notes shall be paid by the Obligor at the
Redemption Price. Any installment of interest due and payable on or prior to the Redemption
Date shall be payable to the Holders of such Notes registered as such on the relevant Record
Date according to the terms and the provisions of Section 2.06.

     (2) If any Note called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid, bear interest from the Redemption Date at the
rate prescribed therefor by the Note.

          SECTION 10.06. Notes Redeemed in Part. Any Note that is to be redeemed only in part
shall be surrendered at the office or agency maintained by the Obligor pursuant to Section 9.02
(with, if the Obligor or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Obligor and the Trustee duly executed by, the Holder thereof
or his attorney duly authorized in writing) and the Obligor shall execute and the Trustee shall
authenticate and deliver to the Holder of such Note without service charge and at the expense of
the Obligor, a new Note or Notes of the same series, of any authorized denomination as requested by
such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of
the principal of such Note so surrendered.

          SECTION 10.07. Optional Redemption. The Notes of any series will be redeemable at any
time in whole or from time to time in part at the option of the Obligor, regardless of whether the
Notes of any other series are to be redeemed, at the Redemption Price equal to the greater of:

     (1) 100% of the principal amount of the Notes being redeemed, or

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     (2) as determined by an Independent Investment Banker, the sum of the present values of
the remaining scheduled payments of principal and interest on the Notes being redeemed (not
including any portion of such payments of interest on the Notes accrued to the Redemption
Date) from the Redemption Date to the Maturity Date discounted to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount
rate equal to the Treasury Rate plus the number of basis points, if any, provided for with
respect to such series of Notes being redeemed; plus, for (1) or (2) above, whichever is
applicable, accrued and unpaid interest on the Notes to be redeemed to, but not including,
the Redemption Date. The Treasury Rate shall be calculated on the third Business Day
preceding the Redemption Date and notice thereof shall promptly be given by the Obligor to
the Trustee.

          Any redemption pursuant to this Section 10.07 shall be made pursuant to the provisions of
Section 10.01 through 10.06.

          Notwithstanding anything in this Section 10.07 to the contrary, the Obligor may provide
pursuant to Section 2.01(1)(v)(j) for optional redemption provisions with respect to a series of
Notes in addition to, or in substitution of, the provision contained in this Section 10.07 and may
provide with respect to a series of Notes for an optional redemption provision identical to the
provision contained in this Section but providing for different definitions of the terms
“Comparable Treasury Issue,” “Comparable Treasury Price,” “Reference Treasury Dealer,” “Reference
Treasury Dealer Quotations” and “Treasury Rate.”

          SECTION 10.08. Mandatory Redemption. Unless otherwise provided pursuant to Section
2.01(1)(v)(j), the Obligor shall not be required to make mandatory redemption or sinking fund
payments with respect to the Notes of any series.

ARTICLE XI

GUARANTEE

          SECTION 11.01. Guarantee.

     (1) Provisions Relating to a Full Guarantee.

     (a) Subject to the provisions of this Article XI, in the event that:

     (A) the Obligor has deposited irrevocably with the 2009 Notes Trustee, prior to the
2009 Notes Payment Deposit Date, sufficient cash in immediately available funds to pay in
full the principal of and interest and premium, if any, that will become due and payable on
the 2009 Notes on the 2009 Notes Payment Date; or

     (B) (x) the Obligor has not deposited irrevocably with the 2009 Notes Trustee, prior to
the 2009 Notes Payment Deposit Date, sufficient cash in immediately available funds to pay
in full the principal of and interest and premium, if any, that will become due and payable
on the 2009 Notes on the 2009 Notes Payment Date and (y) the Guarantor has not delivered to
the Obligor and the Trustee an Officers’ Certificate by 5:00 p.m., New York City time, on
the 2009 Notes Payment Deposit Date, stating that the

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Guarantor has determined in good faith that the Guarantor is likely to have to pay some
or all of the principal amount of the 2009 Notes (and the interest and premium, if any, with
respect thereto) due and payable on the 2009 Notes Payment Date under the 2009 Notes
Guarantee; then,

beginning on the Guarantee Commencement Date, the Guarantor unconditionally and irrevocably
guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, that: (a) the principal of, premium, if any, and
interest on the Notes will be duly and punctually paid in full when due, whether at stated
maturity, by acceleration, redemption or otherwise, together with interest on overdue
principal, and premium, if any, and (to the extent permitted by law) interest on any
interest, if any, on the Notes and all other monetary obligations of the Obligor to the
Holders hereunder or under the Notes will be promptly paid in full, all in accordance with
the terms hereof; and (b) in case of any extension of time of payment or renewal of any of
the Notes or any of such other monetary obligations, the same will be promptly paid in full
when due or performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration, redemption or otherwise.

     (b) In the event of the foregoing, on or promptly after the 2009 Notes Payment Deposit
Date, the Guarantor shall notify the Trustee of the Guarantee Commencement Date and of the
Guarantor’s full Guarantee.

     (2) Provisions Relating to a Partial Guarantee.

     (a) Subject to the provisions of this Article XI, in the event that:

     (A) the Obligor has not deposited irrevocably with the 2009 Notes Trustee, prior to the
2009 Notes Payment Deposit Date, sufficient cash in immediately available funds to pay in
full the principal of and interest and premium, if any, that will become due and payable on
the 2009 Notes on the 2009 Notes Payment Date; and

     (B) the Guarantor has delivered to the Obligor and the Trustee an Officers’ Certificate
by 5:00 p.m., New York City time, on the 2009 Notes Payment Deposit Date, stating that the
Guarantor has determined in good faith that the Guarantor is likely to have to pay some but
not all of the principal amount of the 2009 Notes (and the interest and premium, if any,
with respect thereto) due and payable on the 2009 Notes Payment Date under the 2009 Notes
Guarantee (the “Partial Payment Notice”); then,

beginning on the Guarantee Commencement Date, the Guarantor unconditionally and irrevocably
guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, that (x) the Partial Guarantee Percentage of each of
the principal of, premium, if any, and interest on the Notes will be duly and punctually
paid in full when due, whether at stated maturity, by acceleration, redemption or otherwise,
together with interest on the Partial Guarantee Percentage of such overdue principal, and
premium, if any, and (to the extent permitted by law) interest, if any, on the Notes and the
Partial Guarantee Percentage of all other monetary

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obligations of the Obligor to the Holders hereunder or under the Notes, all in accordance
with the terms hereof; and (y) in case of any extension of time of payment or renewal of any
of the Notes or any of such other monetary obligations, the amount set forth in clause (x)
above will be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration, redemption or
otherwise.

     (b) In the event of the foregoing, on or promptly after the 2009 Notes Payment Deposit
Date, the Guarantor shall notify the Trustee as to the Guarantee Commencement Date, of the
Guarantor’s partial Guarantee and of the Partial Guarantee Percentage.

     (c) In the event that (a) the Obligor defaults in the payment of principal of and
interest and premium, if any, on the Outstanding Notes upon the Maturity Date, the
Redemption Date or by acceleration or otherwise, in each case, on and after the Guarantee
Commencement Date (in the event that the Guarantee Commencement Date shall occur), and (b)
the Guarantor makes the payment of the Partial Guarantee Percentage of each of the principal
of and interest and premium, if any, on the Outstanding Notes under the Guarantor’s partial
Guarantee, a replacement Note in the principal amount equal to the principal of the Note
that was not paid or redeemed will be issued in the name of the Holder of the Note upon
cancellation of the original Note, and upon request of the Obligor, the Trustee shall
authenticate and deliver such replacement Note. Any such replacement Note shall not have an
executed Guarantee endorsed thereon and shall accrue interest from the most recent date to
which interest has been paid or duly provided for or, if no interest has been paid, from the
Issue Date. The issuance of such replacement Note shall be deemed to be a replacement of
the cancelled Note and not the incurrence of new or additional indebtedness under this
Indenture.

     (3) Provisions Relating to the Absence of a Guarantee:

     (a) In the event that:

     (A) prior to the Scheduled Guarantee Commencement Date, there occurs an Event of
Default or any default or other event which, with the giving of notice or passage of time,
would constitute an Event of Default under this Indenture or the Notes; or

     (B) (x) the Obligor has not deposited irrevocably with the 2009 Notes Trustee, prior to
the 2009 Notes Payment Deposit Date, sufficient cash in immediately available funds to pay
in full the principal of and interest and premium, if any, that will become due and payable
on the 2009 Notes on the 2009 Notes Payment Date and (y) the Guarantor has delivered to the
Obligor and the Trustee an Officers’ Certificate by 5:00 p.m., New York City time, on the
2009 Notes Payment Deposit Date, stating that the Guarantor has determined in good faith
that the Guarantor is likely to have to pay all of the principal amount of the 2009 Notes
(and the interest and premium, if any, with respect thereto) due and payable on the 2009
Notes Payment Date under the 2009 Notes Guarantee; then

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the Guarantee shall not become effective, the Guarantee Commencement Date shall not occur,
and the Guarantor shall not have any obligations under the Guarantee or the Indenture.

     (b) Promptly upon the occurrence of any event described in clause (a) or (b) of Section
11.03(1), the Guarantor shall notify the Trustee that the Guarantee shall not become
effective and that the Guarantee Commencement Date shall not occur.

     (4) In accordance with the terms of this Article XI and the Guarantee, failing payment
when due of any amount so guaranteed, or failing performance of any other monetary
obligation of the Obligor to the Holders, for whatever reason, the Guarantor will be
obligated to pay, or to perform or to cause the performance of, such amount so guaranteed
immediately. An Event of Default under this Indenture or the Notes shall constitute an
event of default under the Guarantee, and shall entitle the Holders of the Notes to
accelerate the obligations of the Guarantor under the Guarantee in the same manner and to
the same extent as the obligations of the Obligor.

     (5) In accordance with the terms of this Article XI and the Guarantee, the Guarantor
hereby agrees that its obligations under the Guarantee shall be unconditional, irrespective
of the validity, regularity or enforceability of the Notes or this Indenture, the absence of
any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any thereof, the entry of any judgment against the Obligor, any action to enforce
the same or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of the Guarantor. The Guarantor hereby waives and relinquishes: (i)
any right to require the Trustee, the Holders or the Obligor (each, a “Benefitted
Party”) to proceed against the Obligor or any other Person or to proceed against or
exhaust any security held by a Benefitted Party at any time or to pursue any other remedy in
any secured party’s power before proceeding against the Guarantor; (ii) any defense that may
arise by reason of the incapacity, lack of authority, death or disability of any other
Person or Persons or the failure of a Benefitted Party to file or enforce a claim against
the estate (in administration, bankruptcy or any other proceeding) of any other Person or
Persons; (iii) demand, protest and notice of any kind (except as expressly required by this
Indenture), including but not limited to notice of any action or non-action on the part of
the Guarantor, the Obligor, any Benefitted Party, any creditor of the Guarantor, the Obligor
or on the part of any other Person whomsoever in connection with any obligations the
performance of which are guaranteed under the Guarantee; (iv) any defense based upon an
election of remedies by a Benefitted Party, including but not limited to an election to
proceed against the Guarantor for reimbursement; (v) any defense based upon any statute or
rule of law which provides that the obligation of a surety must be neither larger in amount
nor in other respects more burdensome than that of the principal; and (vi) any defense based
on any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code.
The Guarantor hereby covenants that the Guarantee will not be discharged except (a) in the
event the Guarantee Commencement Date shall occur, (x) by payment in full of all principal,
premium, if any, and interest on the Notes and all other monetary obligations to the Holders
to the extent provided for under this Indenture by the Obligor or (y) by payment in full of
all of or the Partial Guarantee Percentage of (as the case may be) the principal, premium,
if any, and

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interest on the Notes and all other monetary obligations to the Holders to the extent
provided for under this Indenture by the Guarantor, (b) before any Scheduled Guarantee
Commencement Date, by the payment in full of all of the principal, premium, if any, and
interest on the Notes and all other monetary obligations to the Holders to the extent
provided for under this Indenture, (c) upon the occurrence of any event described in clause
(i) of Section 11.01(3), (d) upon satisfaction and discharge of this Indenture in accordance
with Section 3.01 or (e) upon the occurrence of Legal Defeasance in accordance with Section
3.02(a). This is a Guarantee of payment and not of collectibility.

     (6) If any Holder or the Trustee is required by any court or otherwise to return to
either the Obligor or the Guarantor, or any trustee or similar official acting in relation
to either the Obligor or the Guarantor, any amount paid by the Obligor or the Guarantor to
the Trustee or such Holder, the Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect. The Guarantor agrees that, as between it, on the one
hand, and the Holders of the Notes and the Trustee, on the other hand, (i) the maturity of
the obligations guaranteed under the Guarantee may be accelerated as provided in Article V
for the purposes hereof, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby, and (ii) in
the event of any acceleration of such obligations as provided in Article V, such obligations
so guaranteed under the Guarantee (whether or not due and payable) shall forthwith become
due and payable by such Guarantor for the purpose of the Guarantee.

          SECTION 11.02. Execution and Delivery of the Guarantee.

     (1) To evidence the Guarantee set forth in Section 11.01, the Guarantor agrees that a
notation of the Guarantee substantially in the form included in Exhibit A hereto shall be
endorsed on each Note authenticated and delivered by the Trustee (except as otherwise
provided in Sections 2.01(1) and 11.01(2)(iii)) and executed on behalf of the Guarantor by
one of the Officers of the Guarantor by manual or facsimile signature. The Guarantor agrees
that the Guarantee set forth in this Article XI will remain in full force and effect and
apply to all the Notes, notwithstanding any failure to endorse on each Note a notation of
the Guarantee (except as otherwise provided in Section 11.01(2)(iii)).

     (2) If an Officer of the Guarantor whose manual or facsimile signature is on a
Guarantee no longer holds that office at the time the Trustee authenticates the Note on
which the Guarantee is endorsed, the Guarantee shall be valid nevertheless.

     (3) The delivery of any Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of the Guarantee endorsed on such Note on behalf of
the Guarantor.

          SECTION 11.03. Limitation of the Guarantor’s Liability.

          The Guarantor, and by its acceptance hereof, each Holder, hereby confirms that it is the
intention of both parties that the Guarantee not constitute a fraudulent transfer or conveyance for
purposes of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the

64

 

Uniform Fraudulent Transfer Act or any similar Federal or State law. To effectuate the
foregoing intention, the Holders and the Guarantor hereby irrevocably agree that the obligations of
the Guarantor under this Article XI shall be limited to the maximum amount as will, after giving
effect to all other contingent and fixed liabilities of the Guarantor, result in the obligations of
the Guarantor under the Guarantee not constituting a fraudulent transfer or conveyance under
federal or state law.

          SECTION 11.04. Subrogation.

     Upon making any payment with respect to any obligation of the Obligor under this Article, the
Indenture or the Notes, the Guarantor will be subrogated to the rights of the payee against the
Obligor with respect to such obligation, provided that the Guarantor may not enforce any right of
subrogation with respect to such payment so long as any amount payable by the Obligor hereunder or
under the Notes remains unpaid.

65

 

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

	 	 	 	 	 
	 	BOTTLING GROUP, LLC,

     as Obligor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PEPSICO, INC.,

     as Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE BANK OF NEW YORK MELLON,

     as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

66

 

	 	 	 	 	 

EXHIBIT A

GUARANTEE

          PepsiCo, Inc., a North Carolina corporation (hereinafter referred to as the
“Guarantor”), which term includes any successor or assign under the Indenture, dated as of
October [•], 2008, among Bottling Group, LLC, a Delaware limited liability company or any successor
thereto (the “Obligor”), the Guarantor and The Bank of New York Mellon, as trustee, (the
“Indenture”), hereby irrevocably and unconditionally guarantees to the Holders of the Notes
and the Trustee that: (i) (A) in the event of a full guarantee as described in Section 11.01(1) of
the Indenture, the principal of, premium, if any, and interest on the Notes will be duly and
punctually paid in full when due, whether at stated maturity, by acceleration, redemption or
otherwise, together with interest on overdue principal, and premium, if any, and (to the extent
permitted by law) interest on any interest, if any, on the Notes and all other monetary obligations
of the Obligor to the Holders under the Indenture or the Notes will be promptly paid in full, all
in accordance with the terms hereof or (B) in the event of a partial guarantee as described in
Section 11.01(2) of the Indenture, the Partial Guarantee Percentage of the principal of, premium,
if any, and interest on the Notes will be duly and punctually paid in full when due, whether at
stated maturity, by acceleration, redemption or otherwise, together with interest on the Partial
Guarantee Percentage of such overdue principal, and premium, if any, and (to the extent permitted
by law) interest, if any, on the Notes and the Partial Guarantee Percentage of all other monetary
obligations of the Obligor to the Holders under the Indenture or the Notes, all in accordance with
the terms hereof; and (ii) in case of any extension of time of payment or renewal of any of the
Notes or any of such other monetary obligations, the amount set forth in clause (A) or (B) above,
whichever is applicable, will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration, redemption or
otherwise.

          The obligations of the Guarantor to the Holders and to the Trustee pursuant to this Guarantee
and the Indenture are expressly set forth in Article XI of the Indenture and reference is hereby
made to such Indenture for the precise terms of this Guarantee.

          No stockholder, officer, director or incorporator, as such, past, present or future of the
Guarantor shall have any liability under this Guarantee by reason of his, her or its status as such
stockholder, officer, director or incorporator.

          This is a continuing Guarantee and shall remain in full force and effect from and including
the Guarantee Commencement Date (in the event that the Guarantee Commencement Date shall occur) and
shall, in accordance with the terms of the Guarantee and the Indenture, be binding upon the
Guarantor and its successors and assigns until (a) full and final payment and performance of all
other monetary obligations of the Obligor to the Holders under the Indenture or the Notes or (b)
full and final payment by the Guarantor of the same to the extent specified in clause (i)(A) or
(i)(B) above, and shall inure to the benefit of the successors and assigns of the Trustee and the
Holders, and, in the event of any transfer or assignment of rights by any Holder or the Trustee,
the rights and privileges herein conferred upon that party shall automatically

A-1

 

extend to and be vested in such transferee or assignee, all subject to the terms and
conditions hereof. This is a Guarantee of payment and not of collectibility.

          This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication on the Note upon which this Guarantee is endorsed shall have been executed by the
Trustee under the Indenture by the manual signature of one of its authorized officers.

          IF THE GUARANTEE COMMENCEMENT DATE SHALL NOT OCCUR, THIS GUARANTEE SHALL NOT BECOME EFFECTIVE,
AND THE GUARANTOR SHALL NOT HAVE ANY OBLIGATIONS UNDER THIS GUARANTEE OR THE INDENTURE.

          THE TERMS OF ARTICLE XI OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

A-2

 

          Capitalized terms used herein have the same meanings given in the Indenture unless otherwise
indicated.

Dated:

	 	 	 	 	 
	 	PEPSICO, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-3

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