Document:

EX-4.1

 

Exhibit 4.1

NATIONAL GRID PLC

TO

THE BANK OF NEW YORK,

Trustee

INDENTURE

Dated as of June [     ], 2006

DEBT SECURITIES

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1
DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Certain Terms Defined
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 SECURITY FORMS
	 	 	11	 
	 
	 	 	 	 
	Section 2.1 Forms Generally
	 	 	11	 
	Section 2.2 Form of Trustee’s Certificate of Authentication
	 	 	11	 
	Section 2.3 Form of Trustee’s Certificate of Authentication by an
Authenticating Agent
	 	 	12	 
	Section 2.4 Securities Issuable in the Form of Global Securities
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 3 THE SECURITIES
	 	 	14	 
	 
	 	 	 	 
	Section 3.1 Amount Unlimited; Issuable in Series
	 	 	14	 
	Section 3.2 Form, Denominations and Currencies
	 	 	17	 
	Section 3.3 Authentication, Dating and Delivery of Securities
	 	 	18	 
	Section 3.4 Execution of Securities
	 	 	20	 
	Section 3.5 Certificate of Authentication
	 	 	20	 
	Section 3.6 Registration, Registration of Transfer and Exchange
	 	 	21	 
	Section 3.7 Mutilated, Destroyed, Lost and Stolen Securities
	 	 	22	 
	Section 3.8 Payment of Interest and Certain Additional Amounts; Interest Rights
and Certain Additional Amounts Preserved
	 	 	23	 
	Section 3.9 Cancellation of Securities; Destruction Thereof
	 	 	24	 
	Section 3.10 Temporary Securities
	 	 	25	 
	Section 3.11 Computation of Interest
	 	 	25	 
	Section 3.12 CUSIP Numbers
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 4 COVENANTS OF THE COMPANY
	 	 	25	 
	 
	 	 	 	 
	Section 4.1 Payment of Securities
	 	 	26	 
	Section 4.2 Offices or Agency
	 	 	26	 
	Section 4.3 Money for Securities Payments to Be Held in Trust
	 	 	27	 
	Section 4.4 Additional Amounts
	 	 	28	 
	Section 4.5 Redemption for Tax Purposes
	 	 	29	 
	Section 4.6 Negative Pledge
	 	 	30	 
	Section 4.7 Corporate Existence
	 	 	30	 
	Section 4.8 Waiver of Certain Covenants
	 	 	31	 
	Section 4.9 Certificates to Trustee
	 	 	31	 
	Section 4.10 Calculation of Original Issue Discount
	 	 	31	 

 -i-

 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 5 SECURITYHOLDER LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	32	 
	 
	 	 	 	 
	Section 5.1 Company to Furnish Trustee Information as to Names and Addresses of
Securityholders
	 	 	32	 
	Section 5.2 Preservation and Disclosure of Securityholder Lists
	 	 	32	 
	Section 5.3 Reports by the Company
	 	 	33	 
	Section 5.4 Reports by the Trustee
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 6 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	 	 	34	 
	 
	 	 	 	 
	Section 6.1 Event of Default Defined; Acceleration of Maturity; Waiver of Default
	 	 	34	 
	Section 6.2 Collection of Indebtedness by Trustee; Trustee May Prove Debt
	 	 	37	 
	Section 6.3 Application of Proceeds
	 	 	38	 
	Section 6.4 Suits for Enforcement
	 	 	39	 
	Section 6.5 Restoration of Rights on Abandonment of Proceedings
	 	 	39	 
	Section 6.6 Limitations on Suits by Securityholders
	 	 	40	 
	Section 6.7 Unconditional Right of Securityholders to Institute Certain Suits
	 	 	40	 
	Section 6.8 Powers and Remedies Cumulative; Delay or Omission Not Waiver of
Default
	 	 	41	 
	Section 6.9 Control by Holders of Securities
	 	 	41	 
	Section 6.10 Waiver of Past Defaults
	 	 	42	 
	Section 6.11 Trustee to Give Notice of Default, But May Withhold in Certain
Circumstances
	 	 	42	 
	Section 6.12 Right of Court to Require Filing of Undertaking to Pay Costs
	 	 	42	 
	Section 6.13 Waiver of Usury, Stay or Extension Laws
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 7 CONCERNING THE TRUSTEE
	 	 	43	 
	 
	 	 	 	 
	Section 7.1 Duties and Responsibilities of the Trustee; During Default; Prior
to Default
	 	 	43	 
	Section 7.2 Certain Rights of the Trustee
	 	 	44	 
	Section 7.3 Trustee Not Responsible for Recitals, Disposition of Securities or
Application of Proceeds Thereof
	 	 	46	 
	Section 7.4 Trustee and Agents May Hold Securities; Collections, etc
	 	 	46	 
	Section 7.5 Moneys Held by Trustee
	 	 	46	 
	Section 7.6 Compensation and Indemnification of Trustee and Its Prior Claim
	 	 	46	 
	Section 7.7 Right of Trustee to Rely on Officer’s Certificate, etc
	 	 	47	 
	Section 7.8 Qualification of Trustee; Conflicting Interests
	 	 	47	 

 -ii-

 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 7.9 Persons Eligible for Appointment as Trustee
	 	 	48	 
	Section 7.10 Resignation and Removal; Appointment of Successor Trustee
	 	 	48	 
	Section 7.11 Acceptance of Appointment by Successor Trustee
	 	 	49	 
	Section 7.12 Merger, Conversion, Consolidation or Succession to Business of
Trustee
	 	 	50	 
	Section 7.13 Preferential Collection of Claims Against the Company
	 	 	51	 
	Section 7.14 Authenticating Agent
	 	 	54	 
	 
	 	 	 	 
	ARTICLE 8 CONCERNING THE HOLDERS OF SECURITIES
	 	 	55	 
	 
	 	 	 	 
	Section 8.1 Action by Holders
	 	 	55	 
	Section 8.2 Proof of Execution of Instruments by Holders of Securities
	 	 	56	 
	Section 8.3 Holders to be Treated as Owners
	 	 	56	 
	Section 8.4 Securities Owned by Company Deemed Not Outstanding
	 	 	57	 
	Section 8.5 Right of Revocation of Action Taken
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 9 HOLDERS’ MEETINGS
	 	 	58	 
	 
	 	 	 	 
	Section 9.1 Purposes of Meetings
	 	 	58	 
	Section 9.2 Call of Meetings by Trustee
	 	 	58	 
	Section 9.3 Call of Meetings by Company or Holders
	 	 	58	 
	Section 9.4 Qualifications for Voting
	 	 	59	 
	Section 9.5 Regulations
	 	 	59	 
	Section 9.6 Voting
	 	 	60	 
	Section 9.7 No Delay of Rights by Reason of Meeting
	 	 	60	 
	 
	 	 	 	 
	ARTICLE 10 SUPPLEMENTAL INDENTURES
	 	 	60	 
	 
	 	 	 	 
	Section 10.1 Supplemental Indentures Without Consent of Securityholders
	 	 	60	 
	Section 10.2 Supplemental Indentures With Consent of Securityholders
	 	 	62	 
	Section 10.3 Notice of Supplemental Indenture
	 	 	64	 
	Section 10.4 Effect of Supplemental Indenture
	 	 	64	 
	Section 10.5 Documents To Be Given to Trustee
	 	 	64	 
	Section 10.6 Notation on Securities in Respect of Supplemental Indentures
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 11 CONSOLIDATION, AMALGAMATION, MERGER OR SALE
	 	 	65	 
	 
	 	 	 	 
	Section 11.1 Company May Consolidate, Etc., Only on Certain Terms
	 	 	65	 
	Section 11.2 Opinion of Counsel
	 	 	66	 
	Section 11.3 Successor Person Substituted
	 	 	66	 
	 
	 	 	 	 

 -iii-

 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 12 SATISFACTION AND DISCHARGE OF INDENTURE, UNCLAIMED MONEYS
	 	 	66	 
	 
	 	 	 	 
	Section 12.1 Satisfaction and Discharge of Securities of Any Series
	 	 	66	 
	Section 12.2 Defeasance and Covenant Defeasance
	 	 	68	 
	Section 12.3 Application of Trust Money
	 	 	72	 
	Section 12.4 Repayment of Moneys Held by Paying Agent
	 	 	72	 
	Section 12.5 Return of Unclaimed Moneys Held by Trustee and Paying Agent
	 	 	72	 
	 
	 	 	 	 
	ARTICLE 13 MISCELLANEOUS PROVISIONS
	 	 	73	 
	 
	 	 	 	 
	Section 13.1 Incorporators, Stockholders, Officers and Directors of Company
Exempt from Individual Liability
	 	 	73	 
	Section 13.2 Provisions of Indenture for the Sole Benefit of Parties and
Securityholders  
	 	 	73	 
	Section 13.3 Successors and Assigns of Company Bound by Indenture
	 	 	74	 
	Section 13.4 Notices to Holders; Waiver
	 	 	74	 
	Section 13.5 Addresses for Notices
	 	 	74	 
	Section 13.6 Officer’s Certificates and Opinions of Counsel; Statements to Be
Contained Therein
	 	 	74	 
	Section 13.7 Separability Clause
	 	 	76	 
	Section 13.8 Legal Holidays
	 	 	76	 
	Section 13.9 Conflict of Any Provision of Indenture with Trust Indenture Act
	 	 	76	 
	Section 13.10 Governing Law
	 	 	76	 
	Section 13.11 Judgment Currency
	 	 	76	 
	Section 13.12 No Security Interest Created
	 	 	77	 
	Section 13.13 Submission to Jurisdiction
	 	 	77	 
	Section 13.14 Counterparts
	 	 	78	 
	Section 13.15 Effect of Headings
	 	 	78	 
	 
	 	 	 	 
	ARTICLE 14 REDEMPTION OF SECURITIES
	 	 	78	 
	 
	 	 	 	 
	Section 14.1 Applicability of Article
	 	 	78	 
	Section 14.2 Notice of Redemption; Selection of Securities
	 	 	78	 
	Section 14.3 Payment of Securities Called for Redemption
	 	 	80	 
	 
	 	 	 	 
	ARTICLE 15 REDEMPTION AT THE OPTION OF HOLDERS FOLLOWING A RESTRUCTURING EVENT
	 	 	81	 
	 
	 	 	 	 
	Section 15.1 Applicability of Article
	 	 	81	 
	Section 15.2 Redemption of Securities issued by the Company at the Option of
Holders
	 	 	81	 
	Section 15.3 Definitions related to Redemption of Securities issued by the
Company at the Option of Holders
	 	 	82	 
	Section 15.4 Responsibilities of Trustee
	 	 	85	 
	 
	 	 	 	 
	
-iv-

 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	Section 15.5 Procedures for Exercise of Put Option by Holders
	 	 	85	 
	 
	 	 	 	 
	ARTICLE 16 SINKING FUNDS
	 	 	86	 
	 
	 	 	 	 
	Section 16.1 Applicability of Article
	 	 	86	 
	Section 16.2 Satisfaction of Mandatory Sinking Fund Payment with Securities
	 	 	86	 
	Section 16.3 Redemption of Securities for Sinking Fund
	 	 	86	 

 -v-

 

 

NATIONAL GRID PLC

 

          *Reconciliation and tie between Trust Indenture Act of 1939, as amended by the
Trust Reform Act of 1990, and Indenture, dated as of June [ ], 2006.

	 	 	 	 	 
	 	 	 
	Section of the Trust Indenture Act of 1939	 	Section of Indenture
	310(a)(1), (2) and (5)

	 	 
	 	7.9
	310(a)(3) and (4)

	 	 	 	Inapplicable
	310(b)

	 	 	 	7.8 and 7.10(a)and(b)
	311(a)

	 	 	 	7.13(a) and (c)(i) and (ii)
	311(b)

	 	 	 	7.13(b)
	312(a)

	 	 	 	5.1 and 5.2(a)
	312(b)

	 	 	 	5.2(b)
	312(c)

	 	 	 	5.2(b)
	313(a)

	 	 	 	5.4(a)
	313(b)(1)

	 	 	 	Inapplicable
	313(b)(2)

	 	 	 	5.4(a)
	313(c)

	 	 	 	5.4(a)
	313(d)

	 	 	 	5.4(b)
	314(a)

	 	 	 	4.9 and 5.3
	314(b)

	 	 	 	Inapplicable
	314(c)(1) and (2)

	 	 	 	13.6
	314(c)(3)

	 	 	 	Inapplicable
	314(d)

	 	 	 	Inapplicable
	314(e)

	 	 	 	13.6
	315(a), (c) and (d)

	 	 	 	7.1
	315(b)

	 	 	 	6.11
	315(e)

	 	 	 	6.12
	316(a)(1)

	 	 	 	6.9 and 6.10
	316(a)(2)

	 	 	 	Inapplicable
	316(a) (last sentence)

	 	 	 	8.4
	316(b)

	 	 	 	6.7
	316(c)

	 	 	 	8.1
	317(a)

	 	 	 	6.2
	317(b)

	 	 	 	4.2 and 4.3
	318(a)

	 	 	 	13.9

 

			
	*	 	This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture or to
have any bearing upon the interpretation of any of its terms or provisions.

 

 

          INDENTURE,
dated as of June [     ], 2006, between National Grid plc, a company organized
under the laws of England and Wales (herein, subject to Article 11, sometimes called the
“Company”), having its principal office at 1-3 Strand, London, WC2N 5EH, England, and The
Bank of New York, a New York banking corporation duly organized and existing under the laws of the
State of New York, acting through its London Branch, as Trustee (hereinafter, subject to Article
12, called the “Trustee”), having its principal corporate trust office at One Canada
Square, London E14 5AL, United Kingdom. Attention: Corporate Trust Administration.

Recitals of the Company

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

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

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the Securities by the Persons
acquiring the same, it is mutually covenanted and agreed, for the equal and proportionate benefit
of all Holders of the Securities or of the Securities of any series, without giving any priority of
any one Security or series over any other, except as otherwise expressly provided herein, as
follows:

ARTICLE 1

DEFINITIONS

     Section 1.1 Certain Terms Defined.

     The following terms (except as otherwise expressly provided or unless the context otherwise
clearly requires) for all purposes of this Indenture, including any indenture supplemental hereto,
have the respective meanings specified in this Section. All other terms used in this Indenture
that are defined in the Trust Indenture Act or the definitions of which in the Securities Act are
referred to in the Trust Indenture Act or that are defined by rule of the Commission under the
Trust Indenture Act (except as herein otherwise expressly provided or unless the context otherwise
clearly requires) have the meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act or in said Commission rule under the Trust Indenture Act as in force at the date on
which this Indenture was originally executed (subject to Section 10.1 and Section 10.2). 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. All references herein to
“Articles” or other subdivisions are to the corresponding Articles or other subdivisions of this
Indenture. The terms defined in this Article have the meanings assigned to them in this Article
and include the plural as well as the singular.

 

 

          “Accountants’ Report” has the meaning specified in Section 15.3.

          “Additional Amounts” means any additional amounts which are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the Company in respect of
certain taxes, assessments or other governmental charges imposed on Holders specified therein and
which are owing to such Holders.

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

          “Authenticating Agent” means, with respect to any series of Securities, any authenticating
agent appointed by the Trustee, with respect to that series of Securities, pursuant to Section
7.14.

          “Authorized Newspaper” means a newspaper or financial journal printed in the English
language, customarily published at least once a day, and customarily published for at least five
days in each calendar week, whether or not published on days that are legal holidays and of general
circulation; or, in the alternative, shall mean such form of communication as may have come into
general use for the dissemination of information of import similar to that of the information
specified to be published by the provisions hereof. Whenever successive publications are required
or authorized to be made in Authorized Newspapers, the successive publications may be made (unless
otherwise expressly provided herein) in the same or different newspapers meeting the foregoing
requirements and in each case on any Business Day. In case, by reason of the suspension of
publication of any Authorized Newspaper, or for any other cause, it shall be impractical without
unreasonable expense to make publication of any notice in an Authorized Newspaper as required by
this Indenture, then such method of publication or notification as shall be made with the approval
of the Trustee shall be deemed the equivalent of the required publication of such notice in an
Authorized Newspaper.

          “Board of Directors” means either the board of directors of the Company or any committee of
such Board of Directors or Officer duly authorized to act with respect to a particular matter on
behalf of the Board of Directors.

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

          “Business Day”, when used with respect to any Place of Payment or any other location
specified in the Securities or this Indenture, means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in that Place

-2-

 

of Payment or location are
generally authorized or obligated by law, regulation or executive order to close, except as may be
otherwise specified as contemplated by Section 3.1(v).

          “Capital Stock” of any Person means any and all share capital, interests, rights to
purchase, warrants, options, participations or other equivalents of or interests in (however
designated) equity of such Person, including preferred stock, but excluding any debt securities
convertible into such equity.

          “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 date on which this
Indenture was originally executed such Commission is not existing and performing the duties
assigned to it under the Trust Indenture Act on such date of original execution, then the body
performing such duties at such time.

          “Common Stock” in respect of any Corporation means Capital Stock of any class or classes
(however designated) which has no preference as to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
Corporation, and which is not subject to redemption by such Corporation.

          “Company” means (except as otherwise provided in Section 7.3) National Grid plc, a company
organized under the laws of England and Wales, and, subject to Article 11, its successors and
assigns.

          “Company Order” and “Company Request” mean a written order or request signed in the
name of the Company by (i) any two directors, (ii) any director and the secretary or any assistant
secretary, or (iii) the treasurer and the secretary or any assistant secretary of the Company, and
delivered to the Trustee.

          “Consolidated Operating Profit” has the meaning specified in Section 15.3.

          “Conversion Event” means the cessation of use of (i) a Foreign Currency both by the
government of the country or the confederation which issued such Foreign Currency and for the
settlement of
transactions by a central bank or other public institutions of or within the international banking
community or (ii) any currency unit or composite currency for the purposes for which it was
established.

          “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be administered, which office, on the date of
original execution of this Indenture, is located at One Canada Square, London E14 5AL, United
Kingdom, Attention: Corporate Trust Administration or at any other time at such other address as
the Trustee may designate from time to time by notice to the parties hereto, or at the principal
corporate trust office of any successor trustee as to which such successor trustee may notify the
parties hereto in writing.

          “Corporation” includes corporations, limited liability companies, incorporated
associations, companies and business trusts.

-3-

 

          “Depository” means, with respect to the Securities of any series or any Tranche thereof,
unless otherwise specified in the applicable Supplemental Indenture, which, in accordance with the
determination of the Company, will be issued in whole or in part in the form of one or more Global
Securities, The Depository Trust Company, New York, New York, another clearing agency or any
successor registered under the Exchange Act, or other applicable statute or regulation, which, in
each case, shall be designated by the Company pursuant to either Section 2.4 or Section 3.1. If at
any time there is more than one such Person, “Depository” as used with respect to the
Securities of any such series or Tranche thereof means each Depository with respect to the
Securities of that series or Tranche.

          “Directors’ Report” has the meaning specified in Section 15.3.

          “Disposed Assets” has the meaning specified in Section 15.3.

          “Dollar” (“$”) means the coin or currency of the United States of America as at the
time of payment is legal tender for the payment of public and private debts.

          “Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations
promulgated thereunder, in each case as amended from time to time.

          “Event of Default” means any event or condition specified as such in Section 6.1.

          “Foreign Currency” means any currency, currency unit or composite currency, including,
without limitation, pounds sterling and the euro, issued by the government of one or more
countries, other than the United States of America, or by any recognized confederation or
association of such governments.

          “Global Security” means, with respect to all or any part of any series of Securities, a
Security executed by the Company and authenticated and delivered by the Trustee to the Depository
or pursuant to the Depository’s instruction, all in accordance with this Indenture and pursuant to
a Company Order, which shall be registered in the name of the Depository or its nominee and the
ownership of which will be registered in a “book-entry” or other system maintained by the
Depository.

          “Government Obligations” means securities which are (i) direct obligations of the United
States of America or the other government or governments or confederation or association of
governments which issued the Foreign Currency in which the principal of or any premium or interest
on such Security or any Additional Amounts in respect thereof shall be payable, in each case where
the payment or payments thereunder are supported by the full faith and credit of such government or
governments or confederation or

-4-

 

association of governments; or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the United States of
America or such other government or governments or confederation or association of governments, in
each case where the timely payment or payments thereunder are unconditionally guaranteed as a full
faith and credit obligation by the United States of America or such other government or governments
or confederation or association of governments, and which, in the case of (i) or (ii), are not
callable or redeemable at the option of the issuer or issuers thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect to any such
Government Obligation or a specific payment of interest on or principal of or other amount with
respect to any such Government Obligation held by such custodian for the account of the holder of a
depository receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depository receipt
from any amount received by the custodian in respect of the Government Obligation or the specific
payment of interest on or principal of or other amount with respect to the Government Obligation
evidenced by such depository receipt.

          “Holder” and “Securityholder” mean, with respect to a Security, the Person in whose
name such Security is registered in the Securities Register (which terms, in the case of a Global
Security, mean the Depository, notwithstanding that the Depository maintains a “book-entry” or
other system for identification of ownership in respect of such Global Security).

          “IFRS” means international financial reporting standards as adopted by the European Union
applied in accordance with applicable law throughout the periods covered thereby.

          The term “include” (and other forms of such term) means “include, without limitation”.

          “Indenture” means this instrument as originally executed and delivered or, if amended or
supplemented as herein provided, as so amended or supplemented, and includes the forms and terms of
particular series of Securities established as contemplated hereunder.

          The term “interest” means, with respect to any Original Issue Discount Security which by
its terms bears interest only after Maturity, means interest payable after Maturity and, when used
with respect to a Security which provides for the payment of Additional Amounts pursuant to Section
4.4, includes such Additional Amounts.

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

          “Judgment Currency” has the meaning specified in Section 13.11.

          “Lien” has the meaning specified in Section 4.6.

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

          “Negative Rating Event” has the meaning specified in Section 15.3.

          “New York Banking Day” has the meaning specified in Section 13.11.

-5-

 

          “NG Group” means the Company and its subsidiaries taken together.

          “Officer” means the Chairman of the Board, the Deputy Chairman of the Board, Group Chief
Executive Officer, Treasurer, Group Finance Director, Group Secretary or Deputy Group Secretary of
the Company.

          “Officer’s Certificate” means a certificate signed by an Officer and delivered to the
Trustee, except as otherwise specifically set forth herein.

          “Operating Profit” has the meaning specified in Section 15.3.

          “Opinion of Counsel” means an opinion in writing signed by legal counsel who may be an
employee of or counsel to the Company.

          “Original Issue Discount Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration with respect
thereto pursuant to Section 6.1.

          “Outstanding” (subject to Section 8.4) means, with reference to Securities as of the date
of determination, all Securities authenticated and delivered under this Indenture, except:

     (a) Securities which have been cancelled by the Trustee or delivered to the Trustee for
cancellation;

     (b) Securities, or portions thereof, for the payment or redemption of which moneys in the
necessary amount and in the required currency or currency unit shall have been irrevocably
deposited in trust with the Trustee or with any Paying Agent (other than the Company) or shall have
been set aside, segregated and held in trust by the Company for the Holders of such Securities (if
the Company shall act as its own Paying Agent) or for the payment of which Government Obligations
shall have been irrevocably deposited in trust with the Trustee in accordance with Article 12;
provided that, if such Securities, or portions thereof, are to be redeemed prior to the
Stated Maturity thereof, notice of such redemption shall have been given as herein provided, or
provision satisfactory to the Trustee shall have been made for giving such notice;

     (c) any such Security with respect to which the Company has effected defeasance pursuant to
the terms hereof, except to the extent provided in Section 12.2;

     (d) Securities in substitution for which other Securities shall have been authenticated and
delivered, or which shall have been paid, pursuant to the terms of Section 3.7 (except with respect
to any such Security as to which proof satisfactory to the Trustee and the Company 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); and

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     (e) any such Security converted or exchanged as contemplated by this Indenture into Common
Stock of the Company or other securities, if the terms of such Security provide for such conversion
or exchange pursuant to Section 3.1.

          In determining whether Holders of the requisite principal amount of Outstanding Securities of any
or all series have made or given any request, demand, authorization, direction, notice, consent or
waiver hereunder, or are present to constitute a quorum at a meeting of Holders of Securities, (i)
the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding
for such purposes 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 with respect thereto pursuant to
Section 6.1 and (ii) Securities owned by the Company or 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, except that, in determining whether the Trustee shall be protected in making such a
determination or relying upon any such quorum, consent or vote, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded.

          “Overdue Rate” means, with respect to any Security of Securities, the rate designated as
such in or pursuant to the resolution of the Board of Directors or the supplemental indenture, as
the case may be, relating to such Security as contemplated by Section 3.1.

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

          “Periodic Offering” means an offering of Securities of a series from time to time, any or
all of the specific terms of which Securities, which may be in one or more Tranches, including the
rate or rates of interest, if any, thereon, the Stated Maturity or Maturities thereof and the
redemption provisions, if any, with respect thereto, are to be determined by the Company or its
agents from time to time subsequent to the initial request for authentication and delivery of such
Securities by the Trustee, all as contemplated in Section 3.1.

          “Person” means any individual, corporation, limited liability company, partnership, limited
liability 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 Security, the place or places where the
principal of, and premium, if any, and interest, if any, on, such Security are payable as specified
pursuant to Section 3.1.

          “Predecessor Security” of any particular Security means every previous Security evidencing
all or a portion of the same indebtedness as that evidenced by such particular Security; and, for
the purposes of this definition, any Security authenticated and delivered under Section 3.7 in lieu
of a lost, destroyed, mutilated or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.

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          “Principal Subsidiary” means each one of National Grid Gas plc, National Grid Electricity
Transmission plc, National Grid USA, and includes any successor thereto or any member of the NG
Group which the auditors of the Company have certified to the Trustee as being a company to which
all or substantially all of the assets of a Principal Subsidiary are transferred. In the event that
all or substantially all of the assets of a Principal Subsidiary are transferred to a member of the
NG Group, the transferor of such assets will cease to be deemed a Principal Subsidiary.

          “Public Announcement” has the meaning specified in Section 15.3.

          “Put Date” has the meaning specified in Section 15.5.

          “Put Event” has the meaning specified in Section 15.2.

          “Put Event Notice” has the meaning specified in Section 15.2.

          “Put Notice” has the meaning specified in Section 15.5.

          “Put Period” has the meaning specified in Section 15.5.

          “Rateable Debt” has the meaning specified in Section 15.3.

          “Rated Securities” has the meaning specified in Section 15.3.

          “Rating Agency” has the meaning specified in Section 15.3.

          “Rating Downgrade” has the meaning specified in Section 15.3.

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

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

          “Regular Record Date” for the interest payable on any Interest Payment Date on a Security
means the date specified for that purpose pursuant to Section 3.1 or as specified in Section 3.8.

          “Relevant Accounts” has the meaning specified in Section 15.3.

          “Relevant Date” has the meaning specified in Section 4.4.

          “Relevant Indebtedness” means, any present or future indebtedness in the form of, or
represented by, bonds, notes, debentures, loan stock or other securities which are currently, or
are intended, with the agreement of the Company, to be quoted, listed or ordinarily dealt in on any
stock exchange.

          “Relevant Jurisdiction” has the meaning specified in Section 4.4.

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          “Reporting Accountants” has the meaning specified in Section 15.3.

          “Required Currency” has the meaning specified in Section 13.11.

          “Responsible Officer” means, with respect to the Trustee, any officer assigned to the
Corporate Trust Office, including any managing director, vice president, assistant vice president,
assistant treasurer, assistant secretary or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers, and also, with
respect to a particular matter, any other officer, to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject.

          “Restructuring Event” has the meaning specified in Section 15.3.

          “Restructuring Period” has the meaning specified in Section 15.3.

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

          “Securities Register” and “Securities Registrar”: See Section 3.6.

          “Security” or “Securities” has the meaning stated in the recitals of this
Indenture.

          “Special Record Date” for the payment of any defaulted interest means a date fixed pursuant
to Section 3.8.

          “Stated Maturity” means, with respect to any Security or any installment of principal
thereof or interest thereon or any Additional Amounts with respect thereto, the date specified in
such Security as the fixed date on which the principal of such Security or such installment of
principal or interest is, or such Additional Amounts are, due and payable by the Company (without
regard to any provisions for redemption, prepayment, acceleration, purchase or extension).

          “Subsidiary” means a subsidiary within the meaning of Section 736 of the U.K. Companies Act
1985.

          “Tranche” means a group of Securities which (a) are of the same series and (b) are
identical except as to principal amount and/or date of issuance.

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

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          “Trustee” means the Person identified as “Trustee” in the first paragraph hereof
and, subject to the provisions of Article 7, shall also include any successor trustee.

          “U.S. Dollars” means the currency of the United States.

          “United States,” except as otherwise provided in or pursuant to this Indenture or any Board
Resolution, Company Order and Company Request or both, means the United States of America
(including the states thereof and the District of Columbia), its territories and possessions and
other areas subject to its jurisdiction.

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ARTICLE 2

SECURITY FORMS

     Section 2.1 Forms Generally.

     The Securities of each series shall be in substantially such form as shall be established
pursuant to Section 3.1, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture or any indenture supplemental
hereto, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as the Company may deem appropriate and as are not contrary to the
provisions of this Indenture, or as may be required to comply with any law or with any rules made
pursuant thereto or with any rules of any securities exchange or of any automated quotation system,
or to conform to usage, all as determined by the officers executing such Securities, as
conclusively evidenced by their execution of the Securities.

     The definitive Securities shall be prepared by the Company and shall be printed, lithographed
or engraved on steel-engraved borders, or may be produced in any other manner, all as determined by
the officers executing such Securities, as conclusively evidenced by their execution of such
Securities, subject to the rules of any securities exchange or automated quotation system on which
such Securities are listed or quoted and (with respect to Global Securities) to the rules of the
Depository.

     Section 2.2 Form of Trustee’s Certificate of Authentication.

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

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

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	The Bank of New York, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Authorized Signatory	 	 

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     Section 2.3 Form of Trustee’s Certificate of Authentication by an Authenticating
Agent.

     If at any time there shall be an Authenticating Agent appointed with respect to any series of
Securities, then the Trustee’s Certificate of Authentication by such Authenticating Agent on all
Securities of each such series shall be in substantially the following form:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	The Bank of New York, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	     By [NAME OF AUTHENTICATING AGENT],	 	 
	 

	 	 	 	     Authenticating Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Authorized Signatory	 	 

     Section 2.4 Securities Issuable in the Form of Global Securities.

     (a) If the Company shall establish pursuant to Section 3.1 that the Securities of a particular
series are to be issued in whole or in part as one or more Global Securities, then the Company
shall execute, and the Trustee shall, in accordance with Section 3.3 and the Company Order deliver
to the Trustee thereunder, authenticate and make available for delivery, one or more Global
Securities, each of which (i) shall represent an aggregate principal amount equal to the aggregate
principal amount of the Outstanding Securities of such series to be represented by such Global
Security and may also provide that the aggregate amount of Outstanding Securities represented
thereby may from time to time be increased or reduced to reflect exchanges, (ii) shall be
registered in the name of the Depository or its nominee, (iii) shall be delivered by the Trustee to
the Depository or pursuant to the Depository’s instruction and (iv) if required by the Depository,
shall bear a legend reflecting the Depository’s interest in such Global Security.

     (b) Notwithstanding any provision of Section 3.6, any Global Security thereof may be
transferred, in whole but not in part, and in the manner provided in Section 3.6, only to another
nominee of the Depository for such series or Tranche, to the Depository by a nominee of the
Depositary, or by a nominee to another nominee of such Depository or, in either case, to a
successor Depository for such series selected or approved by the Company or to a nominee of such
successor Depository.

     (c) If at any time the Depository for Securities of a series or Tranche thereof notifies the
Company that it is unwilling or unable to continue as Depository for Securities of such

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series or
Tranche or if at any time the relevant Depository shall no longer be registered or in good standing
under the Exchange Act, or other applicable statute or regulation, and a successor Depository is
not appointed by the Company within 120 days after the Company receives such notice or becomes
aware of such condition, as the case may be, this Section shall no longer be applicable to the
Securities of such series or Tranche and the Company will execute, and the Trustee, upon receipt of
a Company Order for the authentication and delivery of definitive Securities of such series or
Tranche, will authenticate and make available for delivery, Securities of such series or Tranche in
definitive form, in authorized denominations, and in an aggregate principal amount equal to the
aggregate principal amount of the Global Security or Global Securities of such series or Tranche in
exchange for such Global Security or Global Securities.

     The Company may at any time and in its sole discretion determine that Securities of any series
or Tranche thereof shall no longer be represented by one or more Global Securities and that the
provisions of this Section shall no longer apply to the Securities of such series or Tranche. In
such event the Company will execute and the Trustee, upon receipt of a Company Order for the
authentication and delivery of individual Securities of such series or Tranche, will authenticate
and make available for definitive Securities of such series or Tranche, in authorized
denominations, and in an aggregate principal amount equal to the aggregate principal amount of the
Global Security or Global Securities of such series or Tranche in exchange for such Global
Security.

     If specified by the Company pursuant to Section 3.1 with respect to a series of Securities or
Tranche thereof, the Depository for such series or Tranche may surrender a Global Security for such
series or Tranche in exchange in whole or in part for definitive Securities of such series or
Tranche on such terms as are acceptable to the Company and such Depository. Thereupon, the Company
shall execute, and the Trustee shall authenticate and make available for delivery, without service
charge,

     (i) to each Person specified by such Depository a new definitive Security or Securities
of the same series or Tranche, of any authorized denomination as requested by such Person in
aggregate principal amount equal to and in exchange for such Persons’ beneficial interest in
the Global Security; and

     (ii) to such Depository a new Global Security in a denomination equal to the
difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of individual Securities delivered to Holders thereof.

          In any exchange provided for in any of the preceding paragraphs of this Section, the Company
will execute and the Trustee will authenticate and make available for delivery definitive
Securities in registered form in authorized denominations.

          Upon the exchange of a Global Security for Securities in definitive form, such Global Security
shall be cancelled by the Trustee. Individual Securities issued in exchange for a Global Security
pursuant to this Section shall be registered in such names and in such authorized denominations and
bearing any applicable restrictive legends as the Depository for

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such Global Security shall
instruct the Trustee in writing. The Trustee shall make such Securities available for delivery to
the Persons in whose names such Securities are so registered.

ARTICLE 3

THE SECURITIES

     Section 3.1 Amount Unlimited; Issuable in Series.

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

     The Securities will constitute direct, unconditional and (except as provided in Section 4.6)
unsecured obligations of the Company and will rank at least equally with all other unsecured and
unsubordinated obligations of the Company (subject, in the event of insolvency, to laws of general
applicability relating to or affecting creditor’s rights).

     The Securities may be issued from time to time in one or more series. With respect to the
Securities of any particular series, there shall be established in, or pursuant to the authority
granted in, a resolution of the Board of Directors, and set forth in an Officer’s Certificate, or
established in one or more indentures supplemental hereto prior to the issuance of Securities of a
series:

     (a) the form of the Securities of the series;

     (b) the title of the Securities of the series (which shall distinguish the Securities of the
series from all other Securities); if the Securities of that series will be in bearer rather than
registered form, the forms, procedures and mechanics to be employed in connection therewith; any
limit upon the aggregate principal amount of the Securities of that series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of that
series pursuant to Sections 2.4, 3.6, 3.7, 3.10, 10.6, or 14.3 and except for any Securities which,
pursuant to Section 3.3, are deemed never to have been authenticated and delivered hereunder);

     (c) the percentage or percentages of principal amount at which the Securities of the series
will be issued;

     (d) the date or dates on which the Securities of the series may be issued;

     (e) the date or dates, which may be serial, on which the principal of, and premium, if any,
on, the Securities of the series are payable;

     (f) the record dates, if any, for the determination of holders to whom such principal of, and
premium thereon, if any, is payable;

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     (g) the rate or rates, or the method of determination thereof, at which the Securities of the
series shall bear interest, if any, any Overdue Rate (including the rate or rates at which overdue
principal shall bear interest, if different from the rate or rates at which such Securities shall
bear interest prior to Maturity, and, if applicable, the rate or rates at which overdue premium or
interest shall bear interest, if any); any formulary or other method or other means by which any
such rate or rates shall be determined, by reference to an index or other fact or event
ascertainable outside this Indenture or otherwise; the date or dates from which such interest shall
accrue, the method or methods, if any, by which such date or dates are to be determined, the
Interest Payment Dates on which such interest shall be payable and the Regular Record Date, if
other than as set forth in Section 3.8, for the determination of Holders to whom interest is
payable, whether and under what circumstances Additional Amounts (in addition to those set forth in
Section 4.4) on such Securities or any of them shall be payable, the notice, if any, to Holders
regarding the determination of interest on a floating rate Security, and the manner of giving such
notice, and the basis upon which interest shall be calculated if other than that of a 360-day year
of twelve 30-day months;

     (h) the place or places where the principal of, and premium, if any, and interest on or any
Additional Amounts, if any, with respect to such Securities of the series shall be payable (if
other than as provided in Section 4.2);

     (i) the provisions, if any, establishing the price or prices at which, the date or dates on
which, the period or periods within which the currency or currency unit in which, and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the option
of the Company, pursuant to any sinking fund or otherwise;

     (j) the obligation, if any, of the Company to redeem, purchase or repay Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof
and the price or prices at which, the date or dates on which, and the period or periods within
which or manner of determining the same, the currency or currency unit in which, and the terms and
conditions upon which, Securities of the series shall be redeemed, purchased or repaid, in whole or
in part, pursuant to such obligation and any provisions for the remarketing of such Securities so
redeemed or purchased;

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

     (l) the stock exchange(s), if any, on which the Securities will be listed;

     (m) whether the Securities of the series will be convertible into shares of Common Stock of
the Company and/or exchangeable for other securities, whether or not issued by the Company, and, if
so, the terms and conditions upon which such Securities will be so convertible or exchangeable, and
any deletions from or modifications or additions to this Indenture to permit or to facilitate the
issuance of such convertible or exchangeable Securities or the administration thereof;

-15-

 

     (n) whether the Securities of the series are to be issued as Original Issue Discount
Securities and, if so, the amount of the discount with respect thereto;

     (o) if other than the principal amount thereof, the portion of the principal amount of the
Securities of the series which shall be payable upon a redemption prior to maturity or a
declaration of acceleration with respect thereto pursuant to Section 6.1 or payable in bankruptcy
pursuant to Section 6.2;

     (p) any Events of Default or restrictive covenants provided for with respect to the Securities
of the series, if other than as set forth in Section 6.1, Article 4 and Article 11;

     (q) in case the Securities of the series do not bear interest, the applicable dates for the
purpose of Section 4.1;

     (r) whether either or both of Section 12.2(b) relating to defeasance or Section 12.2(c)
relating to covenant defeasance shall not be applicable to the Securities of such series, or any
covenants in addition to those specified in Section 12.2(c) relating to the Securities of such
series which shall be subject to covenant defeasance, and any deletions from, or modifications or
additions to, the provisions of ARTICLE 12 in respect of the Securities of such series;

     (s) any trustees, paying agents, transfer agents or registrars with respect to the Securities
of the series and the name and location of the principal office of such person;

     (t) whether the Securities of the series are issuable in whole or in part as one or more
Global Securities and, in such case, the identity of the Depository for such Global Security or
Global Securities;

     (u) the date at which any Global Security shall be dated, if other than the date of original
issuance of the first security of the series to be issued;

     (v) any restrictions on transfer with respect to the Securities of the series and any legend
reflecting such restrictions to be placed on such Securities;

     (w) if the amount of payment of principal of, and premium, if any, or interest on or
Additional Amounts, if any, with respect to such Securities of the series may be determined with
reference to an index, formula or other method, and, if so, the terms and conditions upon which and
the manner in which such amounts shall be determined;

     (x) any exceptions to Section 13.8 or in the definition of “Business Day” with respect
to the Securities of the series;

     (y) if
other than U.S. Dollars, the Foreign Currency in which the Securities
of such series shall be denominated and in which payments or
principal of, and any premium or interest on or any Additional
Amounts with respect to, such Securities shall or may be payable;

     (z) if the principal of, any premium or interest on or any Additional Amounts with respect to
any of such Securities are to be payable, at the election of the Company or a Holder thereof or
otherwise, in Dollars or in a Foreign Currency other than that in which such Securities are stated
to be payable, the date or dates on which, the period or periods within which, and the other terms
and conditions upon which, such election may be made, and the time

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and manner of determining the
exchange rate between the Currency in which such Securities are stated to be payable and the
Currency in which such Securities or any of them are to be paid pursuant to such election, and any
deletions from or modifications of or additions to the terms of this Indenture to provide for or to
facilitate the issuance of Securities denominated or payable, at the election of the Company or a
Holder thereof or otherwise, in a Foreign Currency;

     (aa) the designation of the original Currency Determination Agent, if any, and in what
circumstances a Currency Determination Agent’s Certificate or an Exchange Rate Officers’
Certificate shall be delivered for Securities of that series;

     (bb) if the amount of payments of principal of (and premium, if any, on) and interest, if any,
on the Securities of that series may be determined, at the election of the issuer or a Holder
thereof, with reference to an index based on a currency or currency unit other than that in which
such Securities are denominated or stated to be payable or any other index, the manner in which
such amounts shall be determined; and

     (cc) any other terms of the series and any other modifications or additions to this Indenture
in respect of such Securities (which terms shall not be contrary to the provisions of this
Indenture).

          With respect to Securities of a series subject to a Periodic Offering, such resolution of the
Board of Directors or indenture supplemental hereto may provide general terms or parameters and may
provide that the specific terms of particular Securities, and the Persons authorized to determine
such terms or parameters, may be determined in accordance with or pursuant to the Company Order
referred to in Section 3.3.

          All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in, or pursuant to the authority granted in, such
resolution of the Board of Directors or in any such indenture supplemental hereto.

          Anything herein to the contrary notwithstanding, the Trustee shall be under no obligation to
authenticate and deliver Securities of any series the terms of which, established as contemplated
by this Section, would affect the rights, duties, obligations, liabilities or immunities of the
Trustee under this Indenture.

     Section 3.2 Form, Denominations and Currencies.

     In the absence of any specification pursuant to Section 3.1 with respect to the Securities of
any series, the Securities of such series shall be issuable as a Global Security in fully
registered form in the name of the Holders thereof, without coupons, in denominations of $1,000 and
any integral multiple thereof.

-17-

 

     Section 3.3 Authentication, Dating and Delivery of Securities.

     At any time and from time to time after the original execution and delivery of this Indenture,
the Company may deliver Securities of any series, executed by the Company, to the Trustee for
authentication. Except as otherwise provided in this Article, the Trustee shall thereupon
authenticate and make available for delivery, or cause to be authenticated and delivered, said
Securities to or upon a Company Order, without any further action by the Company; provided,
however, that the Trustee shall authenticate and make available for delivery Securities of
such series for original issue from time to time in the aggregate principal amount established for
such series pursuant to such procedures, acceptable to the Trustee and to such recipients, as may
be specified from time to time by a Company Order. The maturity dates, original issue dates,
interest rates and any other terms of the Securities of such series shall be determined by or
pursuant to such Company Order and procedures. If provided for in such procedures, such Company
Order may authorize authentication and delivery 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 responsibilities under this Indenture in
relation to such Securities, the Trustee shall be entitled to receive, prior to the initial
authentication of such Securities, and (subject to Section 7.1) shall be fully protected in relying
upon:

     (a) a Board Resolution relating thereto;

     (b) an Officer’s Certificate or an executed supplemental indenture setting forth the terms of
such Securities as provided in Section 3.1;

     (c) an Officer’s Certificate which shall state that all conditions precedent provided for in
this Indenture relating to the issuance of such Securities have been complied with, that no Event
of Default with respect to any series of Securities has occurred and is continuing and that the
issuance of such Securities does not constitute and will not result in (i) any Event of Default or
any event or condition, which, upon the giving of notice or the lapse of time or both, would become
an Event of Default or (ii) any default under the provisions of any other instrument or agreement
by which the Company is bound; and

     (d) an Opinion of Counsel, which shall state:

     (i) that the form and the terms of such Securities have been duly authorized by the
Company and have been established in conformity with the provisions of this Indenture;

     (ii) that such Securities, when authenticated and delivered by the Trustee and issued
by the Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and binding obligations of the Company enforceable in
accordance with their terms, except to the extent enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, arrangement,

-18-

 

fraudulent
conveyance, fraudulent transfer and other similar laws affecting the enforcement of
creditors’ rights generally and by general principles of equity (regardless of whether
enforceability is considered in a proceeding in equity or at law); and

     (iii) that no consent, approval, authorization, order, registration or qualification of
or with any court or any governmental agency or body having jurisdiction over the Company is
required for the execution and delivery of such Securities by the Company, except such as
have been obtained (and except that no opinion need be expressed as to state securities or
“blue sky” laws).

     Notwithstanding the provisions of Section 3.1 and of the immediately preceding paragraph, with
respect to Securities of a series subject to a Periodic Offering, the Trustee shall be entitled to
receive the Officer’s Certificate otherwise required pursuant to Section 3.3(c) and the Opinion of
Counsel required by this Section 3.3(d) only once at or prior to the time of the first
authentication and delivery of such Securities (provided that such Opinion of Counsel
addresses the authentication and delivery of all such Securities) and that, in lieu of the opinions
described in clauses (ii) and (iii) above, Counsel may opine that:

          (x) when the terms of such Securities shall have been established pursuant to a Company Order
or Orders or pursuant to such procedures as may be specified from time to time by a Company Order
or Orders, all as contemplated by and in accordance with the instrument or instruments delivered
pursuant to clause (i) above, such terms will have been duly authorized by the Company and will
have been established in conformity with the provisions of this Indenture; and

          (y) when such Securities shall have been authenticated and delivered by the Trustee in
accordance with this Indenture and the Company Order or Orders or the specified procedures referred
to in paragraph (x) above and issued and delivered by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, such Securities will constitute valid obligations
of the Company enforceable in accordance with their terms except to the extent enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting the enforcement of creditors rights generally and by the effect of general principles of
equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

     With respect to Securities of a series subject to a Periodic Offering, the Trustee may
conclusively rely, as to the authorization by the Company of any of such Securities, the forms and
terms thereof, the validity thereof and the compliance of the authentication and delivery thereof
with the terms and conditions of this Indenture, upon the Opinion of Counsel or Opinions of
Counsel, the Officer’s Certificate and the certificates and other documents delivered pursuant to
this Section 3.3 at or prior to the time of the first authentication and delivery of Securities of
such series until any of such opinions, certificates or other documents have been superseded or
revoked or expire by their terms; provided, however, that any request by the
Company to the Trustee to authenticate and deliver Securities of such series shall constitute a
representation and warranty by the Company that as of the date of such request the

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statements made
in the most recent Officer’s Certificate delivered pursuant to Section 3.3(c) are true and correct
as if made on and as of the date thereof.

     Any Global Security, shall, unless otherwise provided therein, be delivered to a Depositary
designated pursuant to Section 3.1. Each Depositary designated pursuant to Section 3.1 for a
Global Security must at the time of its designation and at all times while it serves as such
Depositary be a clearing agency registered under the Exchange Act and any other applicable statue
or regulation.

     The Trustee shall have the right to decline to authenticate and make available for delivery
any Securities under this Section if the Trustee, being advised by counsel to the Trustee and the
Company, determines that such action would expose the Trustee to personal liability.

     Each Security shall be dated the date of its authentication, except as otherwise provided
pursuant to Section 3.1 with respect to the series of which such Security is a part and except that
any substitute Security under Section 3.7 shall be dated so that neither gain nor loss in interest
shall result from any mutilation, destruction, loss or theft of the relevant Predecessor Security.

     Section 3.4 Execution of Securities.

     The Securities shall be signed in the name of and on behalf of the Company by any of (i) two
of its directors, (ii) one director and the group secretary or (iii) the treasurer and the
secretary or assistant secretary, of the Company, under its corporate seal which may, but need not,
be attested. Such signatures may be the manual or facsimile signatures of such officers. The seal
of the Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted
or otherwise reproduced thereon. 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.

     In case any officer of the Company who shall have signed any of the Securities shall cease to
be such officer before the Security so signed shall be authenticated and delivered by or on behalf
of the Trustee or disposed of by the Company, such Securities nevertheless may be authenticated and
delivered or disposed of as though the Person who signed such Securities had not ceased to be such
officer of the Company; and any Security may be signed on behalf of the Company by such Persons as,
at the actual date of the original execution of such Security, shall be the proper officers of the
Company, although at the date of the original execution and delivery of this Indenture, or at the
date of such Security, any such Person was not such an officer.

     Section 3.5 Certificate of Authentication.

     No Security shall be entitled to the benefits of this Indenture or be valid or obligatory for
any purpose, unless there appears on such Security a certificate of authentication substantially in
the form hereinbefore recited, executed by or on behalf of the Trustee by manual signature. Such
certificate by or on behalf of the Trustee upon any Security executed by

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the Company shall be
conclusive evidence that the Security so authenticated has been duly authenticated and delivered
hereunder and that the Holder is entitled to the benefits of this Indenture.

     Section 3.6 Registration, Registration of Transfer and Exchange.

     Subject to the conditions set forth below (and subject, with respect to Global Securities, to
Section 2.4), Securities of any series may be exchanged for a like aggregate principal amount of
Securities of the same series and having the same terms but in other authorized denominations.
Securities to be exchanged shall be surrendered at the offices or agencies to be maintained for
such purposes as provided in Section 4.2, and the Company shall execute and the Trustee or any
Authenticating Agent shall authenticate and make available for delivery in exchange therefor the
Security or Securities which the Holder making the exchange shall be entitled to receive.

          The Company shall keep or cause to be kept, at one of said offices or agencies maintained
pursuant to Section 4.2, a register for each series of Securities issued hereunder (hereinafter
collectively referred to as the “Securities Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall, subject to the provisions of Section 2.4,
provide for the registration of Securities of such series and shall register the transfer of
Securities of such series as in this Article provided. The Securities Register shall be in written
form or in any other form capable of being converted into written form within a reasonable time.
The Trustee is hereby appointed as the initial “Securities Registrar” for the purpose of
registering Securities and registering transfers of Securities as herein provided. Subject to the
provisions of Section 2.4, upon surrender for registration of transfer of any Security of any
series at any such office or agency, the Company shall execute and the Trustee or any
Authenticating Agent shall authenticate and make available for delivery in the name of transferee
or transferees a new Security or Securities of the same series for an equal aggregate principal
amount.

          The Company shall have the right to remove and replace from time to time the Security
Registrar for any series of Securities and the Securities Registrar shall have the right to resign
from time to time; provided that no such removal, replacement or resignation shall be
effective until a successor Security Registrar with respect to such series of Securities shall have
been appointed by the Company and shall have accepted such appointment by the Company. If the
Company fails to appoint a successor Securities Registrar within 30 days after the Securities
Registrar resigns, the Securities Registrar shall be entitled to appoint a successor and the
Company’s consent shall not be unreasonably withheld. In the event that the Trustee shall not be or
shall cease to be Security Registrar with respect to a series of Securities, it shall have the
right to examine the Security Register for such series at all reasonable times. There shall be only
one Security Register for each series of Securities.

          All Securities presented for registration of transfer or for exchange, redemption or payment
shall (if so required by the Company or the Securities Registrar) be duly endorsed by, or be
accompanied by a written instrument or instruments of transfer in form satisfactory to

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the Company
and the Securities Registrar duly executed by, the Holder thereof or his attorney duly authorized
in writing.

          Each Security issued upon registration of transfer or exchange of Securities pursuant to this
Section shall be the valid obligation of the Company, evidencing the same indebtedness and entitled
to the same benefits under this Indenture as the Security or Securities surrendered upon
registration of such transfer or exchange.

          No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.10, Section 10.6 or Section 14.3 not
involving any transfer.

          The Company shall not be required (a) to issue, exchange or register the transfer of any
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of such series and ending at the close
of business on the day of such mailing, or (b) to exchange or register the transfer of any
Securities selected, called or being called for redemption except, in the case of any Security to
be redeemed in part, the portion thereof not to be redeemed.

     Section 3.7 Mutilated, Destroyed, Lost and Stolen Securities.

     In case any temporary or definitive Security shall become mutilated (whether by defacement or
otherwise) or be destroyed, lost or stolen, and in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the Company shall, except as
otherwise provided in this Section, execute, and upon a Company Request, the Trustee shall
authenticate and make available for delivery, a new Security of the same series, tenor and
principal amount, bearing a number, letter or other distinguishing symbol not contemporaneously
outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in
substitution for the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and to the Trustee and any agent of the Company
or the Trustee such security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company
and the Trustee and any agent of the Company or the Trustee evidence to their satisfaction of the
destruction, loss or theft of such Security and of the ownership thereof.

          Upon the issuance of any substitute 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 or any
Authenticating Agent) connected therewith.

          In case any Security which has matured or is about to mature or has been called for redemption
in full shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing
a substitute Security, pay or authorize the payment of the same (without

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surrender thereof except
in the case of a mutilated Security). In every case, the applicant for such payment shall furnish
to the Company and to the Trustee and any agent of the Company or the Trustee such security or
indemnity as any of them may require to save each of them harmless, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee and any
agent of the Company or the Trustee evidence to their satisfaction of the destruction, loss or
theft of such Security and of the ownership thereof.

          Every substitute Security of any series issued pursuant to the provisions of this Section by
virtue of the fact that any such Security is destroyed, lost or stolen shall constitute an
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
(but shall be subject to all the limitations of rights set forth in) this Indenture equally and
proportionately with any and all other Securities of such series duly authenticated and delivered
hereunder. All Securities shall be held and owned upon the express condition that, to the extent
permitted by law, the foregoing provisions of this Section are exclusive with respect to the
replacement or payment of mutilated (whether by defacement or otherwise) or destroyed, lost or
stolen Securities and shall preclude any and all other rights or remedies notwithstanding any law
or statute existing or hereafter enacted to the contrary with respect to the replacement or payment
of negotiable instruments or other securities without their surrender.

     Section 3.8 Payment of Interest and Certain Additional Amounts; Interest Rights and
Certain Additional Amounts Preserved.

     The Holder of any Securities at the close of business on the Regular Record Date with respect
to any Interest Payment Date shall be entitled to receive the interest, if any, and any Additional
Amounts payable on such Interest Payment Date notwithstanding the cancellation of such Securities
upon any registration of transfer or exchange subsequent to the Regular Record Date and prior to
such Interest Payment Date, and, if provided for in the Board Resolution or supplemental indenture
pursuant to Section 3.1, in the case of a Security issued between a Regular Record Date and the
initial Interest Payment Date relating to such Regular Record Date, interest for the period
beginning on the date of issue and ending on such initial Interest Payment Date shall be paid to
the Person to whom such Security shall have been originally issued. Except as otherwise specified
as contemplated by Section 3.1, for Securities of a particular series the term “Regular Record
Date” as used in this Section with respect to any Interest Payment Date shall mean the close of
business on the last day of the calendar month preceding such Interest Payment Date if such
Interest Payment Date is the fifteenth day of a calendar month and shall mean the close of business
on the fifteenth day of the calendar month preceding such Interest Payment Date if such Interest
Payment Date is the first day of a calendar month, whether or not such day shall be a Business Day.
At the option of the Company, payment of interest on any Security may be made by check mailed to
the address of the Person entitled thereto (which shall be the Depository in the case of Global
Securities) as such address shall appear in the Securities Register.

          If and to the extent the Company shall default in the payment of the interest due or any
Additional Amounts on such Interest Payment Date in respect of any Securities, such

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defaulted
interest shall be paid by the Company at its election in each case, as provided in clause (a) or
(b) below:

     (a) The Company may make payment of any defaulted interest to the Holder of Securities at the
close of business on a Special Record Date established by notice given by mail, by or on behalf of
the Company, to such Holder not less than 15 days preceding such Special Record Date, such Special
Record Date to be not less than 10 days preceding the date for payment of such defaulted interest.

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

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

     Section 3.9 Cancellation of Securities; Destruction Thereof.

     All Securities surrendered for payment, redemption, registration of transfer or exchange, or
for credit against any payment in respect of a sinking or analogous fund, shall, if surrendered to
the Company or any Paying Agent or any Securities Registrar, be delivered to the Trustee for
cancellation or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall
be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture.
The Company may at any time deliver to the Trustee for Securities of a series 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 cancelled by such Trustee.
Notwithstanding any other provision of this Indenture to the contrary, in the case of a series,
all the Securities of which are not to be originally issued at one time, a Security of such series
shall not be deemed to have been Outstanding at any time hereunder if and to the extent that,
subsequent to the authentication and delivery thereof, such Security is delivered to the Trustee
for such Security for cancellation by the Company or any agent thereof upon the failure of the
original purchaser thereof to make payment therefore against delivery thereof, and any Security so
delivered to such Trustee shall be promptly cancelled by it. No Securities shall be authenticated
in lieu of or in exchange for any Securities cancelled as provided in this Section, except as
expressly permitted by this Indenture. Global Securities shall not be disposed of until exchanged
in full for definitive Securities or until payment thereof is made in full. The Trustee shall,
unless instructed to deliver the Securities to the Company in a Company Order, destroy such
cancelled Securities and, if requested by the Company in writing, deliver certification of their
destruction to the Company. If the Company shall acquire any of the Securities, such acquisition
shall not operate as a redemption or satisfaction of the

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indebtedness represented by such
Securities unless and until the same are delivered to the Trustee for cancellation.

     Section 3.10 Temporary Securities.

     Pending the preparation by the Company of definitive Securities of any series, the Company may
execute and the Trustee shall authenticate and make available for delivery in the manner provided
in Section 3.3, temporary Securities for such series (printed, lithographed, typewritten or
otherwise reproduced, in each case in form satisfactory to the Trustee). Temporary Securities of
any series shall be issuable in any authorized denomination, and substantially in the form of the
definitive Securities of such series in lieu of which they are issued but with such omissions,
insertions and variations as may be appropriate for temporary securities, all as may be determined
by the Company. Temporary Securities may contain such reference to any provisions of this
Indenture as may be appropriate. Every temporary Security shall be executed by the Company and be
authenticated by the Trustee upon the same conditions and in substantially the same manner, and
with like effect, as the definitive Securities. Without unreasonable delay the Company shall
execute and shall furnish definitive Securities of such series and thereupon temporary Securities
of such series may be surrendered in exchange therefor without charge at the Corporate Trust Office
of the Trustee, and the Trustee shall authenticate and make available for delivery in exchange for
such temporary Securities an equal aggregate principal amount of definitive Securities of the same
series. Such exchange shall be made by the Company at its own expense and without any charge
therefore to the Holders. Until so exchanged, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive Securities of such
series authenticated and delivered hereunder.

     Section 3.11 Computation of Interest.

     Except as otherwise specified as contemplated by Section 3.1 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

     Section 3.12 CUSIP Numbers.

     The Company in issuing the Securities may use “CUSIP,” Common Code” or “ISIN” numbers (if then
generally in use), and, if so, such numbers shall be used in notices of redemption as a convenience
to Holders as set-forth in Section 14.2.

ARTICLE 4

COVENANTS OF THE COMPANY

     The Company covenants and agrees for the benefit of each series of Securities (except to the
extent that any series of Securities is excluded from the benefits of any of such covenants
pursuant to Sections 3.1(a) and 3.1(cc)) that on and after the date of original execution of this
Indenture and so long as any of the Securities of such series remain Outstanding:

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     Section 4.1 Payment of Securities.

     The Company will duly and punctually pay or cause to be paid in the currency or currency unit
in which the Securities of such series are payable, the principal of, any premium and interest on,
and any Additional Amounts with respect to the Securities of such series at the place or places, at
the respective times and in the manner provided in such Securities and in the Indenture.

     Section 4.2 Offices or Agency.

     So long as any of the Securities remain Outstanding, the Company will maintain in the Borough
of Manhattan, The City of New York, New York, and in each Place of Payment for the Securities of a
series, an office or agency where Securities of that series may be presented or surrendered for
payment, where Securities of that series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of Securities of that
series and this Indenture may be served (which shall initially be the Corporate Trust Office of the
Trustee or, if the Corporate Trust Office of the Trustee is not located in the Borough of
Manhattan, The City of New York, such office or agency shall be the principal corporate trust
office of the Authenticating Agent designated pursuant to Section 7.14 hereof). The Company will
give prompt written notice to the Trustee for the Securities of that series of the location, and
any change in the location of any such office or agency. If at any time the Company shall fail to
maintain such required office or agency in respect of any series of Securities or shall fail to
furnish the Trustee with the required information with respect thereto, presentations, surrenders,
notices and demands in respect of Securities of that series may be made or served at the Corporate
Trust Office of the Trustee and the corporate trust office of any Authenticating Agent appointed
hereunder; and the Company hereby appoints the Trustee and any Authenticating Agent appointed
hereunder its agents to receive all such presentations, surrenders, notices and demands.

          The Company may also from time to time designate one or more other offices or agencies (in or
outside The City of New York) where the Securities of one or more series, or any Tranche thereof
may be presented or surrendered for any or all of such purposes, and may from time to time rescind
such designation; provided, however, that no such designation or rescission shall
in any manner relieve the Company of its obligation to maintain for such purposes an office or
agency in the Borough of Manhattan, The City of New York and in each Place of Payment for such
purpose. The Company will promptly notify the Trustee for the Securities of each series as
affected of any such designation or rescission thereof and of any change in the location of any
such office or agency.

          Unless otherwise specified with respect to any Securities pursuant to Section 3.1, if and so
long as the Securities of any series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other provision of this
Indenture, then the Company will maintain with respect to each such series of Securities, or as so
required, at least one exchange rate agent.

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     Section 4.3 Money for Securities Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it shall by 10 a.m. (New York City time), on or before each due date of the principal
of, any premium or interest on or Additional Amounts with respect to any of the Securities of such
series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum in the
currency or currencies, currency unit or units or composite currency or currencies in which the
Securities of such series are payable (except as otherwise specified pursuant to Section 3.1 for
the Securities of such series) sufficient to pay the principal or any premium, interest or
Additional Amounts so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided, and shall promptly notify the Trustee in writing of its action or
failure so to act.

          Whenever the Company shall have one or more Paying Agents for any series of Securities, it
shall, on or prior to each due date of the principal of, any premium or interest on or any
Additional Amounts with respect to any Securities of such series, deposit with any Paying Agent a
sum (in the currency or currencies, currency unit or units or composite currency or currencies
described in the preceding paragraph) sufficient to pay the principal and any premium, interest or
Additional Amounts so becoming due, such sum to be held in trust for the benefit of the Persons
entitled thereto, and (unless such Paying Agent is the Trustee) the Company will promptly notify
the Trustee in writing of its action or failure so to act.

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

     (a) hold all sums held by it for the payment of the principal of, any premium or interest on
or any Additional Amounts with respect to Securities of such series or Tranche in trust for the
benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise
disposed of as provided in or pursuant to this Indenture;

     (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 payment of principal of, any premium or interest on
or any Additional Amounts with respect to 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.

          The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same terms 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 sums.

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          Anything in this Section to the contrary notwithstanding, the agreement to hold sums in trust
as provided in this Section is subject to the provisions of Section 12.3, Section 12.4 and Section
12.5.

     Section 4.4 Additional Amounts.

     Unless otherwise provided in the Board Resolution or supplemental indenture pursuant to
Section 3.1 establishing the terms of a particular series of Securities, the Company will make all
payments of principal of and premium, if any, interest and any other amounts on, or in respect of,
the Securities of any series without withholding or deduction at source for, or on account of, any
present or future taxes, fees, duties, assessments or governmental charges of whatever nature
imposed or levied by or on behalf of any Relevant Jurisdiction or any political subdivision of any
Relevant Jurisdiction or any authority in or of any Relevant Jurisdiction having the power to tax,
unless such taxes, fees, duties, assessments or governmental charges are required to be withheld or
deducted. If a withholding or deduction at source is required, the Company shall, unless otherwise
provided in the Board Resolution or supplemental indenture pursuant to Section 3.1 establishing the
terms of a particular series of Securities, subject to certain limitations and exceptions set forth
below, pay to the Holder of any such Security, as additional interest, such Additional Amounts as
may be necessary so that every net payment of principal, premium, if any, interest or any other
amount made to such Holder, after such withholding or deduction, shall not be less than the amount
provided for in such Security and this Indenture to be then due and payable; provided,
however, that the Company shall not be required to make payment of such Additional Amounts:

     (a) for or on behalf of such Holder who is liable to such taxes or duties in respect of
Securities of such series by reason of having some connection with the Relevant Jurisdiction other
than the mere holding of Securities of such series;

     (b) in connection with presentation in the Relevant Jurisdiction where presentation is
required;

     (c) if the Holder or the beneficial owner of the relevant Securities failed to comply with a
request by the Company or other authorized person addressed to the Holder or the beneficial owner,
as the case may be, to provide information concerning the nationality, residence or identity of the
Holder or the beneficial owner or to make any declaration or other similar claim to satisfy any
information or other requirement, which is required or imposed by a statute, treaty, regulation or
administrative practice of a taxing jurisdiction as a precondition to exemption from all or part of
the tax and which such Holder or beneficial owner is legally able to satisfy;

     (d) where presentation is required, more than 30 days after the Relevant Date (as defined
below) except to the extent that the Holder would have been entitled to such Additional Amounts, on
presenting the same for payment on such thirtieth day;

     (e) where such withholding or deduction is imposed on a payment to an individual and is
required to be made pursuant to European Union Directive 2003/48/EC on the taxation

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of savings
income or any law implementing or complying with, or introduced in order to confirm to, such
directive;

     (f) for or on behalf of a Holder who would have been able to avoid such withholding or
deduction by presenting, where presentation is required, the relevant series of Securities to
another Paying Agent in a member state of the European Union; or

     (g) with respect to any combination of items (a), (b), (c), (d), (e) or (f) above;

nor shall Additional Amounts be paid with respect to any payment of the principal of, or premium,
if any, interest or any other amounts on, any such Security to any Holder who is a fiduciary or
partnership or other than the sole beneficial owner of such Security if such payment would be
required by the laws of the Relevant Jurisdiction (or any political subdivision or relevant taxing
authority thereof or therein) to be included in the income for tax purposes of a beneficiary or
partner or settlor with respect to such fiduciary or a member of such partnership or a beneficial
owner who would not have been entitled to such Additional Amounts had it been the Holder of the
Security.

          For the purposes hereof the “Relevant Date” means the date on which the payment of principal
of (or premium, if any, on) or interest, if any, on any series of Securities first becomes due or
(if any amount of the money payable is improperly withheld or refused) the date on which payment in
full of the amount outstanding is made or (if earlier) the date on which notice is duly given to
such Holder that upon presentation of the Security in global or definitive form payment will be
made provided that payment is in fact made upon such presentation.

          For the purposes hereof the “Relevant Jurisdiction” means the United Kingdom or any other
jurisdiction in which the Company is resident for tax purposes.

          Whenever in this Indenture there is mentioned, in any context, the payment of the principal of
or any premium, interest or any other amounts on, or in respect of, any Security of any series or
the net proceeds received on the sale or exchange of any Security of any series, such mention shall
be deemed to include mention of the payment of Additional Amounts provided by the terms of such
series established hereby or pursuant hereto to the extent that, in such context, Additional
Amounts are, were or would be payable in respect thereof pursuant to such terms, and express
mention of the payment of Additional Amounts (if applicable) in any provision hereof shall not be
construed as excluding the payment of Additional Amounts in those provisions hereof where such
express mention is not made.

     Section 4.5 Redemption for Tax Purposes.

     Unless otherwise provided in the Board Resolution or supplemental indenture pursuant to
Section 3.1 establishing the terms of a particular series of a Securities, the Company or any
successor Person appointed pursuant to Section 11.3 may redeem the Securities at its option, in
whole but not in part, at a Redemption Price equal to 100% of the principal amount, together with
accrued and unpaid interest and Additional Amounts, if any, to the date fixed for

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redemption, if as
a result of any change in or amendment to the laws or treaties (or any regulations or rulings
promulgated under these laws or treaties) of the Relevant Jurisdiction or any taxing authority in
the Relevant Jurisdiction (or any political subdivision) or any change in the application or
official interpretation of such laws, regulations or rulings occurring, in the case of a redemption
by the Company, on or after the date of issuance of the relevant series of Securities or, in the
case of a redemption any successor Person appointed pursuant to Section 11.3, on or after the date
on which the successor Person assumes the obligation under the Securities, the Company will be
required as of the next Interest Payment Date to pay Additional Amounts with respect to the
Securities as provided in Section 4.4 and such requirements cannot be avoided by the use of
reasonable measures (such measures not involving any material additional payments or expense by the
Company) then available. If the Company elects to redeem the Securities under this provision it
will give written notice of such election to the Trustee. If the Company elects to redeem the
Securities under this provision it will also mail a notice of redemption at least 30 days but no
more than 60 days before the Redemption Date to each Holder of the Securities to be redeemed.
Unless the Company defaults in the payment of the Redemption Price, on and after the Redemption
Date, interest will cease to accrue on the Securities or portions thereof called for redemption.
Any such redemption will be subject to Article 14 hereof.

     Prior to giving the notice of a tax redemption, the Company will deliver to the trustee an
Officer’s Certificate stating that the Company is entitled to effect the redemption and setting
forth a statement of facts showing that the conditions precedent to the Company’s right to so
redeem have occurred.

     Section 4.6 Negative Pledge.

     Unless otherwise specified with respect to Securities of a particular series pursuant to
Section 3.1, so long as any Securities are Outstanding, the Company will not create or permit to
subsist any mortgage, charge, pledge, lien, security interest or other encumbrance upon the whole
or any part of its undertaking, its assets or revenues present or future to secure any Relevant
Indebtedness, or any guarantee of or indemnity in respect of any Relevant Indebtedness unless, at
the same time or prior thereto, the Company’s obligations under the Securities of such series and
this Indenture (a “Lien”) shall (a) be secured equally and ratably with such Relevant
Indebtedness or benefit from a guarantee or indemnity in substantially identical terms thereto, as
the case may be, in each case to the satisfaction of the Trustee, or (b) have the benefit of such
other Security, guarantee, indemnity or other arrangement as the Trustee in its absolute discretion
shall deem to be not materially less beneficial to the Holders of Securities of such series or as
shall be approved by the Holder of no less than 75% in aggregate principal amount of securities of
any such series.

     Section 4.7 Corporate Existence.

     Subject to Article 11 and Section 4.6, the Company shall do or cause to be done all things
necessary to preserve and keep in full force and effect its legal existence and rights (charter and
statutory) and franchises; provided, however, that the foregoing shall not obligate
the Company to preserve any such right or franchise if the Company shall determine that the

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preservation thereof is no longer desirable in the conduct of its business and that the loss
thereof is not disadvantageous in any material respect to any Holder.

     Section 4.8 Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 4.6, 4.7 or 4.8 and any other covenant not set forth herein and
specified pursuant to Section 3.1 to be applicable with respect to the Securities of any series if
before or after the time for such compliance the Holders of at least a majority (or 75% in case of
the covenant to provide security approved by 75% of the Holders pursuant to Section 4.6) in
principal amount of the Outstanding Securities of such series (which, in the case of a covenant not
set forth herein and specified pursuant to Section 3.1 to be applicable to the Securities of any
series, shall include only those series to which such covenant is so specified to be applicable),
by Act of such Holders, either shall waive such compliance in such instance or generally shall have
waived compliance with such term, provision or condition, but no such waiver shall extend to or
affect such term, provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of the Trustee and the
Principal Paying Agent for the Securities of such series in respect of any such term, provision or
condition shall remain in full force and effect.

     Section 4.9 Certificates to Trustee.

     For so long as any series of Securities are Outstanding under this Indenture, the Company
will, within 120 days after the end of its fiscal year, file with the Trustee an Officer’s
Certificate complying with the provisions of the second paragraph of Section 13.6, stating whether
or not, to the knowledge of the signers which, shall be the chief executive officer, treasurer or
finance director of the Company, the Company has complied with the conditions and covenants on its
part contained in this Indenture, and, if the signer, to the best of his or her knowledge, know of
any event which is, or after notice or lapse of time or both would become, a default by the Company
in the performance, observance or fulfillment of any such condition or covenant, specifying each
such default and the nature thereof. For the purpose of this Section, compliance shall be
determined without regard to any grace period or requirement of notice provided pursuant to the
terms of this Indenture.

     Section 4.10 Calculation of Original Issue Discount.

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

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ARTICLE 5

SECURITYHOLDER LISTS AND REPORTS BY THE

COMPANY AND THE TRUSTEE

     Section 5.1 Company to Furnish Trustee Information as to Names and Addresses of
Securityholders.

     The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee
a list in such form as the Trustee may reasonably require of the names and addresses of the Holders
of the Securities of each series semiannually and not later than June 30 and December 31 in each
year, and at such other times as the Trustee may request in writing, as of a date no more than 15
days prior to the date such information is so furnished; provided that, if and so long as
the Trustee shall be the Securities Registrar for such series, such list shall not be required to
be furnished.

     Section 5.2 Preservation and Disclosure of Securityholder Lists.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information received by it pursuant to Section 5.1 and similar information received by it in any
other capacity under this Indenture and afford Holders access to the information preserved by it,
all to such extent, if any, and in such manner as shall be required by the Trust Indenture Act.

     (b) Each and every Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any Paying Agent 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 the provisions of Section 5.2(a), regardless of the
source from which such 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 5.2(a). In case three
or more Holders of Securities of any series (for purposes of this Section, “applicants”) apply in
writing to the Trustee and furnish to the Trustee proof reasonably satisfactory to the Trustee that
each such applicant has owned a Security for a period of at least six months preceding the date of
such application, and such application states that the applicants desire to communicate with other
Holders of Securities of a particular series (in which case the applicants must all hold Securities
of such series) or with Holders of all Securities with respect to their rights under this Indenture
or under such Securities and such application 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 to such applicants access to the information preserved at the time by the
Trustee in accordance with the provision of subsection (a) of this Section 5.2, or

     (ii) inform such applicant 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 the provisions of
subsection (a) of this Section 5.2, and as to the approximate cost

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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 to such applicants access to such information, the Trustee
shall, upon the written request of such applicants, mail to each Securityholder of such series or
all Securities, as the case may be, whose name and address appear in the information preserved at
the time by the Trustee in accordance with the provisions of subsection (a) of this Section 5.2, 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 and properly incurred expenses of a 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 interest of the Holders of Securities of such
series or all Securities, as the case may be, or could 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 such order sustaining one or
more of such objections, the Commission shall find, after notice and opportunity for hearing, that
all the objections so sustained have been met, and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Securityholders 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.

     Section 5.3 Reports by the Company.

     The Company covenants:

     (a) to 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; or, if the Company is not
required to file information, documents or reports pursuant to either of such Sections, then to
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 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) to 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 provided for in this
Indenture as may be required from time to time by such rules and regulations; and

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     (c) to transmit by mail to the Holders of Securities in the manner and to the extent provided
in Section 5.4 within 30 days after the filing thereof with the Trustee, such summaries of any
information, documents and reports required to be filed by the Company pursuant to subsections (a)
and (b) of this Section as may be required to be transmitted to such Holders by rules and
regulations prescribed from time to time by the Commission.

     The delivery of such reports, information and documents to the Trustee pursuant to this
Section 5.3 is for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates) other
than with respect to Section 7.2.

     Section 5.4 Reports by the Trustee.

     (a) Within 60 days after May 15 in each year following the date of original execution of this
Indenture, so long as any Securities are Outstanding hereunder, the Trustee shall transmit by mail
(with a copy to the Company) to the Securityholders of such series in the manner and to extent
provided in Trust Indenture Act Section 313(c), a brief report, as provided by the Trust Indenture
Act Sections 313(a) and (b).

     (b) A copy of each such report shall, at the time of such transmission to the Securityholders
of any series, be furnished to the Company and be filed by the Trustee with each stock exchange
upon which the Securities of such series are listed and also with the Commission. The Company
agrees to notify the Trustee promptly when and as the Securities of any series become admitted to
trading on any national securities exchange.

ARTICLE 6

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

ON EVENT OF DEFAULT

     Section 6.1 Event of Default Defined; Acceleration of Maturity; Waiver of Default.

     “Event of Default”, with respect to the Securities of any series, wherever used
herein, means each one of the following events which shall have occurred and be continuing
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body), unless it is either
inapplicable to a particular series or it is specifically deleted or modified in the applicable
resolution of the Board of Directors or in the supplemental indenture under which such series of
Securities is issued, as the case may be, as contemplated by Section 3.1:

     (a) default in the payment of the principal of (or premium, if any, on) any of the Securities
of such series as, when the same shall become due and payable at Maturity, and such default
continues for a period of 14 days from the due date for payment; or

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     (b) default in the payment of any interest on any of the Securities of such series, (or any
Additional Amounts payable with respect thereto), as and when the same shall become due and
payable, and such default continues for a period of 30 days from the due date for payment of such
interest (or Additional Amounts); or

     (c) default in the performance or breach of any other covenant or warranty of the Company in
respect of the Securities of such series (other than any obligation for the payment of any
principal or interest in respect of the Securities of such series which is elsewhere in this
Section specifically dealt with), and which default is incapable of remedy, or if in the opinion of
the Trustee capable of remedy, and such default is not remedied within 90 days after there has been
given, by registered or certified mail, to the Company by the Trustee, (or to the Company and the
Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of all
series affected thereby), a written notice specifying such default and requiring it to be remedied
and stating that such notice is a “Notice of Default” hereunder; or

     (d) if (i) any of the Company’s or any Principal Subsidiary’s present or future Relevant
Indebtedness becomes due and payable prior to its Stated Maturity by reason of an actual Event of
Default or (ii) any amount with respect to such Relevant Indebtedness is not paid when due or, as
the case may be, within any applicable grace period, provided that the aggregate amount of the
Relevant Indebtedness with respect to any of the events described in this paragraph equals or
exceeds £50,000,000 for the period up to March 31, 2017, and £100,000,000 thereafter; or

     (e) either a court in the United Kingdom issues a final order or an effective shareholders’
resolution is validly adopted, and where possible, such resolution or final order is not discharged
or stayed within 90 days, that the Company be wound up or dissolved; or

     (f) attachment is made of the whole or substantially the whole of the Company’s assets or
undertakings and such attachment is not released or cancelled within 90 days or an encumbrancer
takes possession or an administrative or other receiver or similar officer is appointed of the
whole or substantially the whole of the Company’s undertaking or assets or an administration or
similar order is made to the Company, and such taking of possession, appointment or order is not
released, discharged or cancelled within 90 days; or

     (g) The Company ceases to carry on all or substantially all of its business, or the Company
is unable to pay debts within the meaning of Section 123(1)(e) or Section 123(2) of the U.K.
Insolvency Act 1986; or

     (h) the Company is adjudged bankrupt or insolvent by a court of competent jurisdiction in the
Company’s country of incorporation; or

     (i) any other Event of Default established by or pursuant to a resolution of the Board of
Directors or one or more indentures supplemental hereto as applicable to the Securities of such
series.

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     If an Event of Default described in clause (a), (b), (c), (d) or (i) occurs and is continuing
with respect to Securities of any series at the time Outstanding, the Trustee or the Holders of not
less than 25% in aggregate principal amount of the Securities of such series then Outstanding, by
notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the
entire principal (or, if the Securities of such series are Original Issue Discount Securities, such
portion of the principal as may be specified in the terms of such series) of all Securities of such
series and the interest accrued thereon, if any, to be due and payable immediately, and upon any
such declaration the same shall become immediately due and payable.

          If any Event of Default described in clause (e), (f), (g) or (h) above occurs and is
continuing, all unpaid principal of the Securities then Outstanding of that series and the interest
accrued thereon, if any, shall ipso facto become and be immediately due and payable without
declaration, presentment, demand or notice of any kind by the Trustee or any Holder of Securities
of that series.

          The foregoing provisions, however, are subject to the condition that if, at any time after a
declaration of acceleration with respect to the Securities of any series has been made and before
any judgment or decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to
pay all matured installments of interest, if any, and any Additional Amounts with respect to all
the Securities of such series (or upon all the Securities, as the case may be) and the principal of
(and premium, if any, on) any and all Securities of such series (or of all the Securities, as the
case may be) which shall have become due otherwise than by acceleration (with interest upon such
principal and premium, if any, and, to the extent that payment of such interest is enforceable
under applicable law, on overdue installments of interest or Additional Amounts, at the Overdue
Rate applicable to such series to the date of such payment or deposit) and all amounts payable to
the Trustee pursuant to the provisions of Section 7.6, and such amount as shall be sufficient to
cover reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other
expenses and liabilities incurred, and all advances made, by the Trustee except as a result of
negligence or bad faith, and if any and all Events of Default under the Indenture, other than the
nonpayment of the principal of and accrued interest on and any Additional Amounts with respect to
Securities of such series which shall have become due by acceleration, shall have been cured,
waived or otherwise remedied as provided herein — then and in every such case the Holders of a
majority in aggregate principal amount of the Securities of such series (each series voting as a
separate class), or of all the Securities (voting as a single class), as the case may be, then
Outstanding, by written notice to the Company and to the Trustee, may waive all defaults with
respect to that series (or with respect to all the Securities, as the case may be) and rescind and
annul such acceleration and its consequences, but no such waiver or rescission and annulment shall
extend to or shall affect any subsequent default or shall impair any right consequent thereon.

          For all purposes under this Indenture, if a portion of the principal of any Original Issue
Discount Security shall have been accelerated and declared or become due and payable pursuant to
the provisions hereof, then, from and after such acceleration, unless such

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acceleration has been
rescinded and annulled, the principal amount of such Original Issue Discount Security shall be
deemed, for all purposes hereunder, to be such portion of the principal thereof as shall be due and
payable as a result of such acceleration, and payment of such portion of the principal thereof as
shall be due and payable as a result of such acceleration, together with interest, if any, thereon
and all other amounts owing thereunder, shall constitute payment in full of such Original Issue
Discount Security.

     Section 6.2 Collection of Indebtedness by Trustee; Trustee May Prove Debt.

     The Company covenants that (a) in case default shall be made in the payment of any installment
of interest on or any Additional Amounts with respect to any of the Securities of any series when
such interest shall have become due and payable, and such default shall have continued for a period
of 30 days or (b) in case default shall be made in the payment of all or any part of the principal
of or any premium, if any, on any Securities of any series or any Additional Amounts with respect
thereto when the same shall have become due and payable, whether upon Stated Maturity of the
Securities of such series or upon any redemption or by acceleration or otherwise, then upon demand
of the Trustee for such series, the Company will pay to the Trustee for the benefit of the Holder
of any such Security the whole amount that then shall have become due and payable on any such
Security for the principal, premium, if any, and interest, if any, with interest upon the overdue
principal and premium, if any, and, so far as payment of the same is enforceable under applicable
law, on overdue installments of interest and Additional Amounts, at the Overdue Rate applicable to
any such Security; and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, and any further amounts payable to the Trustee, its agents
and counsel pursuant to the provisions of Section 7.6.

          In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in
its own name and as trustee of an express trust, shall be entitled and empowered to institute any
action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceedings to judgment or final decree, and may enforce any such
judgment or final decree against the Company or other obligor upon such Securities and collect in
the manner provided by law out of the property of the Company or other obligor upon such
Securities, wherever situated, the moneys adjudged or decreed to be payable.

          The Trustee shall be entitled and empowered, either in its own name as trustee of an express
trust, or as attorney-in-fact for the Holders of any of the Securities, or in both such capacities,
to file such proof of debt, amendment of proof of debt, claim, petition or other document as may be
necessary or advisable in order to have the claims of the Trustee and of the Holders of Securities
allowed in any equity receivership, insolvency, bankruptcy, liquidation, readjustment,
reorganization or other similar proceedings, or any judicial proceedings, relative to the Company
or any other obligor on the Securities or its creditors or its property. The Trustee is hereby
irrevocably appointed (and the successive respective Holders of the Securities, by taking and
holding the same, shall be conclusively deemed to have so appointed the Trustee) the true and
lawful attorney-in-fact of the respective Holders of the Securities, with authority to make or file
in the respective names of the Holders of the Securities any proof of

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debt, amendment of proof of
debt, claim, petition or other document in any such proceedings and to receive payment of any sums
becoming distributable on account thereof, and to execute any other papers and documents and do and
perform any and all acts and things for and on behalf of such Holders of the Securities as may be
necessary or advisable in the opinion of the Trustee in order to have the respective claims of the
Holders of the Securities against the Company or any other obligor on the Securities and/or its
property allowed in any such proceedings, and to receive payment of or on account of such claims;
provided, however, that nothing herein contained shall be deemed to authorize or
empower the Trustee to consent to or accept or adopt, on behalf of any Holder of Securities, any
plan of reorganization or readjustment of the Company or any other obligor on the Securities or, by
other action of any character in any such proceeding, to waive or change in any way any right of
any Holder of any Security, even though it may otherwise be entitled so to do under any present or
future law, all such power or authorization being hereby expressly denied.

          All rights of action and of asserting claims under this Indenture or under any of the
Securities may be enforced by the Trustee without the possession of any of the Securities or the
production thereof in any trial or other proceedings relative thereto, and any such action or
proceedings instituted by the Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and
compensation of the Trustee, each predecessor Trustee and their respective agents and attorneys,
shall be for the ratable benefit of the holders of the Securities in respect of which such action
was taken.

          In any proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be a party), the
Trustee shall be held to represent all the Holders of the Securities in respect of which such
action was taken, and it shall not be necessary to make any Holders of such Securities parties to
any such proceedings.

     Section 6.3 Application of Proceeds.

     Any moneys collected by the Trustee pursuant to this Article in respect of any series of the
Securities, together with any other sums held by the Trustee (as such) hereunder (other than sums
held in trust for the benefit of the Holders of particular Securities), shall be applied in the
following order at the date or dates fixed by the Trustee and, in case of the distribution of such
moneys on account of principal, or any premium, interest or Additional Amounts, upon presentation
(except in respect of Subdivision First below) of the several Securities in respect of which moneys
have been collected and stamping (or otherwise noting) thereon the payment, or issuing Securities
of such series in reduced principal amounts in exchange for the presented Securities of like series
if only partially paid, or upon surrender thereof if fully paid:

     FIRST: To the payment of costs and expenses applicable to such series in respect of
which moneys have been collected, including reasonable compensation to the Trustee and each
predecessor Trustee and their respective agents and attorneys and of all expenses and
liabilities properly incurred, and all advances made, by the Trustee and each

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predecessor Trustee
except as a result of negligence or bad faith, and all other amounts due to the Trustee or
any predecessor Trustee pursuant to Section 7.6;

     SECOND: In case the principal of the Securities of such series in respect of which
moneys have been collected shall not have become and be then due and payable, to the
payment of interest and any Additional Amounts on the Securities of such series in default
in the order of the maturity of the installments of such interest, with interest (to the
extent that such interest has been collected by the Trustee), so far as it may be
enforceable under applicable law, upon the overdue installments of interest and any
Additional Amounts at the Overdue Rate applicable to such series, such payments to be made
ratably to the Persons entitled thereto, without discrimination or preference;

     THIRD: In case the principal of the Securities of such series in respect of which
moneys have been collected shall have become and shall be then due and payable, to the
payment of the whole amount then owing and unpaid upon all the Securities of such series
for principal and premium, if any, and interest, if any, and any Additional Amounts, with
interest upon the overdue principal and premium, if any, and (to the extent that such
interest has been collected by the Trustee), so far as payment of the same is enforceable
under applicable law, upon overdue installments of interest and any Additional Amounts, if
any, at the Overdue Rate applicable to such series; and in case such moneys shall be
insufficient to pay in full the whole amount so due and unpaid upon the Securities of such
series, then to the payment of such principal, premium, if any, and interest, if any, and
any Additional Amounts, without preference or priority of principal and premium, if any,
over interest or any Additional Amounts, or of interest or any Additional Amounts, if any,
over principal and premium, if any, or of any installment of interest over any other
installment of interest, or of any Security of such series over any other Security of such
series, ratably to the aggregate of such principal, premium, if any, and accrued and unpaid
interest, if any; and

     FOURTH: To the payment of the remainder, if any, to the Company or as a court of
competent jurisdiction may direct in writing.

     Section 6.4 Suits for Enforcement.

     In case an Event of Default with respect to Securities of any series has occurred, has not
been waived and is continuing, the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to
enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

     Section 6.5 Restoration of Rights on Abandonment of Proceedings.

     In case the Trustee or any Holder shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned for any reason, or

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shall
have been determined adversely to the Trustee or such Holder, then and in every such case (subject
to the binding effect of any determination made in such proceedings) the Company and the Trustee
and each of the Holders shall be restored severally and respectively to their former positions and
rights hereunder, and (subject as aforesaid) all rights, remedies and powers of the Company, the
Trustee and the Holders shall continue as though no such proceedings had been instituted.

     Section 6.6 Limitations on Suits by Securityholders.

     No Holder of any Security of any series shall have any right by virtue or by availing of any
provision of this Indenture to institute an action or proceeding at law or in equity or in
bankruptcy or otherwise upon or under or with respect to this Indenture, or for the appointment of
a trustee, receiver, liquidator, custodian or other similar official or for any other remedy
hereunder, unless such Holder previously shall have given to the Trustee written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of
not less than 25% in aggregate principal amount of the Securities of such series then Outstanding
shall have made written request upon the Trustee to institute such action or proceeding in its own
name as Trustee hereunder and shall have offered to the Trustee such sufficient indemnity as it may
require against the costs, expenses and liabilities to be incurred therein or thereby and the
Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have
failed to institute any such action or proceeding and no direction inconsistent with such written
request shall have been given to the Trustee pursuant to Section 6.9; it being understood and
intended, and being expressly covenanted by the taker and Holder of every Security with every other
taker and Holder of any Security and with the Trustee, that no one or more Holders of Securities of
any series shall have any right in any manner whatever by virtue or by availing of any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holder of Securities, or to
obtain or seek to obtain priority over or preference to any other such Holder or to enforce any
right under this Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all Holders of Securities of such series. For the protection and enforcement of
the provisions of this Section, each and every Holder of Securities of any series and the Trustee
shall be entitled to such relief as can be given either at law or in equity.

     Section 6.7 Unconditional Right of Securityholders to Institute Certain Suits.

     Nothing contained in this Indenture or in the Securities of any series shall affect or impair
the obligation of the Company, which is unconditional and absolute, to pay the principal of, and
premium, if any, and interest, if any, on, and any Additional Amounts with respect to, the
Securities of such series at the respective places, at the respective times, at the respective
rates, in the respective amounts and in the coin or currency therein and herein prescribed, or
affect or impair the right of action, which is also absolute and unconditional, of any Holder of
any Security to institute suit to enforce such payment at the respective due dates expressed in
such Security, or upon redemption, by declaration, repayment or otherwise as herein provided
without reference to, or the consent of, the Trustee or the Holder of any other Security, unless
such Holder consents thereto or unless and to the extent that the institution or prosecution.

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     Section 6.8 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.

     Except as provided in Section 6.6, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holder of any Security is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy.

     No delay or omission of the Trustee or of any Holder of any Security of any series to exercise
any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall
impair any such right or power or shall be construed to be a waiver of any such Event of Default or
an acquiescence therein; and, subject to Section 6.6, every power and remedy given by this
Indenture or by law to the Trustee or to the Holder of any Security may be exercised from time to
time, and as often as shall be deemed expedient, by the Trustee or by the Holder of such Security,
as the case may be.

     Section 6.9 Control by Holders of Securities.

     The Holders of a majority in aggregate principal amount of the Securities of each series
affected (with each series voting as a separate class) at the time Outstanding 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 by this Indenture; provided that such direction shall not be otherwise than
in accordance with law and the provisions of this Indenture, and provided, further,
that (subject to the provisions of Section 7.1) the Trustee shall have the right to decline to
follow any such direction if the Trustee, being advised by counsel, shall determine that the action
or proceeding so directed may not lawfully be taken or if the Trustee in good faith by its board of
directors, the executive committee or a trust committee of directors or Responsible Officers of the
Trustee shall determine that the action or proceedings so directed would expose the Trustee to
personal liability or if the Trustee in good faith shall so determine that the actions or
forebearances specified in or pursuant to such direction would be unduly prejudicial to the
interests of Holders of the Securities of all series so affected not joining in the giving of said
direction, it being understood that (subject to Section 7.1) the Trustee shall have no duty to
ascertain whether or not such actions or forebearances are unduly prejudicial to such Holders.

          As between the Trustee and the Holders of the Securities, nothing in this Indenture shall
impair the right of the Trustee in its discretion to take any action deemed proper by the Trustee
and which is not inconsistent with such direction or directions by Securityholders.

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     Section 6.10 Waiver of Past Defaults.

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

     (1) in the payment of the principal of, any premium or interest on, or any Additional Amounts
with respect to, any Security of such series, or

     (2) in respect of a covenant or provision hereof which under Article 10 cannot be modified or
amended without the consent of the Holder of each Outstanding Security of such series affected.

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

     Section 6.11 Trustee to Give Notice of Default, But May Withhold in Certain
Circumstances.

     The Trustee shall transmit to the Securityholders of any series, as the names and addresses of
such Holders appear on the Security Register, notice by mail of all defaults that a Responsible
Officer of the Trustee has actual knowledge of or with respect to which a Responsible Officer of
the Trustee has received written notice which have occurred with respect to such series, such
notice to be transmitted within 120 days after the occurrence thereof, unless such defaults shall
have been cured before the giving of such notice (the term “default” or “defaults” for the purposes
of this Section being hereby defined to mean any event or condition which is, or with notice or
lapse of time or both would become, an Event of Default); provided that, except in the case
of default in the payment of the principal of, or premium, if any, or interest, if any, on, or any
Additional Amounts with respect to, any of the Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors or Responsible Officers of the Trustee in good faith
determines that the withholding of such notice is in the interests of the Securityholders of such
series.

     Section 6.12 Right of Court to Require Filing of Undertaking to Pay Costs.

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

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Trustee,
to any suit instituted by any Securityholder or group of Securityholders of any series holding in
the aggregate more than 10% in aggregate principal amount of the Securities of such series
Outstanding, or, in the case of any suit relating to or arising under Section 6.1(c) or Section
6.1(i) (if the suit relates to Securities of more than one but fewer than all series), 10% in
aggregate principal amount of Securities Outstanding affected thereby, or, in the case of any suit
relating to or arising under Section 6.1(c) or Section 6.1(i) (if the suit under clause (d) or (g)
relates to all the Securities then Outstanding), Section 6.1(f) or Section 6.1(g), 10% in aggregate
principal amount of all Securities Outstanding, or to any suit instituted by any Holder of
Securities for the enforcement of the payment of the principal of, or premium, if any, or interest,
if any, on, any Security on or after the due date expressed in such Security.

     Section 6.13 Waiver of Usury, Stay or Extension Laws.

     The Company covenants that (to the extent that it may lawfully do so) it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company expressly waives (to the
extent that it may lawfully do so) 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 7

CONCERNING THE TRUSTEE

     Section 7.1 Duties and Responsibilities of the Trustee; During Default; Prior to
Default.

     With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior
to the occurrence of an Event of Default with respect to the Securities of that series and after
the curing or waiving of all Events of Default which may have occurred with respect to such series,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture. In case an Event of Default with respect to the Securities of a series has occurred
(which has not been cured or waived), the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his own affairs.

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

     (a) prior to the occurrence of an Event of Default with respect to the Securities of such
series and after the curing or waiving of all such Events of Default with respect to such series
which may have occurred:

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     (i) the duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture against the Trustee; and

     (ii) in the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any statements, certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture; but in the case of any such
statements, 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) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts; and

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

          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 7.1

          None of the provisions contained in this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that the repayment of such funds or adequate indemnity against such liability is not
reasonably assured to it.

     Section 7.2 Certain Rights of the Trustee.

     Subject to Section 7.1:

     (a) the Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any resolution, Officer’s Certificate or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order, bond, debenture, note, coupon, security or other
paper or document (whether in original or facsimile form) believed by it to be genuine and to have
been signed or presented by the proper party or parties;

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officer’s Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any resolution of the Board of Directors may be evidenced

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to
the Trustee by a copy thereof certified by the secretary or any assistant secretary of the Company;

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

     (d) the Trustee shall be under no obligation to exercise any of the trusts or powers vested in
it by this Indenture at the request, order or direction of any of the Securityholders pursuant to
the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities
which might be incurred therein or thereby;

     (e) the Trustee shall not be liable for any action taken or omitted by it in good faith and
believed by it to be authorized or within the discretion, rights or powers conferred upon it by
this Indenture;

     (f) prior to the occurrence of an Event of Default hereunder and after the curing or waiving
of all Events of Default, 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, consent, order, approval, appraisal, bond, debenture, note, coupon, security or other
paper or document unless requested in writing so to do by the Holders of not less than a majority
in aggregate principal amount of the Securities of all series affected then Outstanding;
provided that, if the payment within a reasonable time to the Trustee of the costs,
expenses or liabilities likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the
terms of this Indenture, the Trustee may require reasonable indemnity against such expenses or
liabilities as a condition to proceeding; the reasonable expenses of every such investigation shall
be paid by the Company or, if paid by the Trustee or any predecessor Trustee, shall be repaid by
the Company upon demand;

     (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 not regularly in its employ, and the
Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or
attorney appointed with due care by it hereunder;

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

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

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

     Section 7.3 Trustee Not Responsible for Recitals, Disposition of Securities or Application
of Proceeds Thereof.

     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 the correctness of the same, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities and perform its
obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1
supplied to the Company are true and accurate, subject to the qualifications set forth therein.
The Trustee makes no representation 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 any
of the Securities or of the proceeds thereof.

     Section 7.4 Trustee and Agents May Hold Securities; Collections, etc.

     The Trustee, any Paying Agent, Securities Registrar, Authenticating Agent or any agent of the
Company or the Trustee, in its individual or any other capacity, may become the owner or pledgee of
Securities with the same rights it would have if it were not the Trustee or such agent, and,
subject to Section 7.8 and Section 7.13, if operative, may otherwise deal with the Company and
receive, collect, hold and retain collections from the Company with the same rights it would have
if it were not the Trustee, Paying Agent, Securities Registrar, Authenticating Agent or such agent.

     Section 7.5 Moneys Held by Trustee.

     Subject to the provisions of Section 12.3, all moneys received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which they were received,
but need not be segregated from other funds except to the extent required by mandatory provisions
of law. The Trustee shall have no liability for interest on money it receives and holds in trust
except as specifically provided herein.

     Section 7.6 Compensation and Indemnification of Trustee and Its Prior Claim.

     The Company covenants and agrees to pay the Trustee from time to time, and the Trustee shall
be entitled to such compensation as the Company and the Trustee may from time

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to time agree in
writing for all services rendered by the Trustee hereunder (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express trust) and the
Company covenants and agrees to pay or reimburse the Trustee and each predecessor trustee upon its
request for all reasonable and properly incurred expenses, disbursements and advances incurred or made by or on behalf of
it in accordance with any of the provisions of this Indenture (including the reasonable
compensation and the expenses and disbursements of its counsel and of all agents and other Persons
not regularly in its employ) except any such expense, disbursement or advance as shall be
attributable to its negligence or bad faith. The Company also covenants to indemnify the Trustee
and each predecessor trustee for, and hold it harmless against, any loss, liability, damage, claims
or expense, including taxes (other than taxes measured by the income of the Trustee or otherwise
applicable to the Trustee for operations outside the scope of this Indenture) incurred without
negligence or bad faith on its part, arising out of or in connection with the acceptance or
administration of this Indenture or the trusts hereunder and the performance of its duties
hereunder, including the costs and expenses of defending itself against or investigating any claim
of liability in connection with the exercise or performance of any of its powers or duties
hereunder except to the extent that any such loss, liability, damage, claims or expense shall be
attributable to the Trustee’s negligence or bad faith. The obligations of the Company under this
Section to compensate and indemnify the Trustee and each predecessor trustee and to pay or
reimburse the Trustee and each predecessor trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of
this Indenture and resignation or removal of the Trustee. Such additional indebtedness shall be a
Lien prior to that of the Securities upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the benefit of the Holders of particular Securities.

     Section 7.7 Right of Trustee to Rely on Officer’s Certificate, etc.

     Subject to Section 7.1 and Section 7.2, whenever in the administration of the trusts of this
Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established
prior to taking or suffering or omitting any action hereunder, such matter (unless other evidence
in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad
faith on the part of the Trustee, be deemed to be conclusively proved and established by an
Officer’s Certificate delivered to the Trustee, and such certificate, in the absence of negligence
or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken,
suffered or omitted by it under the provisions of this Indenture upon the good faith thereof.

     Section 7.8 Qualification of Trustee; Conflicting Interests.

     The Trustee for the Securities of any series issued hereunder shall be subject to the
provisions of Section 310(b) of the Trust Indenture Act during the period of time provided for
therein. In determining whether the Trustee has a conflicting interest as defined in Section
310(b) of the Trust Indenture Act with respect to the Securities of any series, there shall be
excluded this Indenture with respect to Securities of any particular series of Securities other
than that series. Nothing herein shall prevent the Trustee from filing with the Commission the

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application referred to in the penultimate paragraph of Section 310(b) of the Trust Indenture Act.

     Section 7.9 Persons Eligible for Appointment as Trustee.

     There shall at all times be a Trustee hereunder for each series of Securities, which shall be
at all times either:

     (a) a corporation organized and doing business under the laws of the United States of America
or of any State or territory or the District of Columbia, authorized under such laws to exercise
corporate trust powers and subject to supervision or examination by Federal, State, territory or
District of Columbia authority; or

     (b) a corporation or other Person organized and doing business under the laws of a foreign
government that is permitted to act as sole Trustee pursuant to a rule, regulation or order of the
Commission, authorized under such laws to exercise corporate trust powers, and subject to
supervision or examination by authority of such foreign government or a political subdivision
thereof substantially equivalent to supervision or examination applicable to United States
institutional trustees,

in either case having a combined capital and surplus of at least $50,000,000. If such corporation
publishes reports of condition at least annually, pursuant to law or to requirements of the
aforesaid supervising or examining authority, then for the purposes of this Section 7.9, 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 for the Securities of any series shall cease to be eligible in accordance with the
provisions of this Section 7.9, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. Neither the Company nor any Person directly or indirectly
controlling, controlled by, or under common control with the Company shall serve as Trustee for the
Securities of any series issued hereunder.

     Section 7.10 Resignation and Removal; Appointment of Successor Trustee.

     (a) The Trustee, or any trustee or trustees hereafter appointed, may at any time resign by
giving written notice of resignation to the Company and by mailing notice thereof by first-class
mail to Holders of the Securities at their last addresses as they shall appear on the Security
Register. Upon receiving such notice of resignation, the Company shall promptly appoint a
successor trustee or trustees by written instrument in duplicate, executed by authority of the
Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and
one copy to the successor trustee or trustees. If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the mailing of such notice of
resignation, the resigning Trustee may petition at the expense of the Company any court of
competent jurisdiction for the appointment of a successor trustee, or any Securityholder who has
been a bona fide Holder of a Security or Securities for at least six months may, subject to the
provisions of Section 6.12, on behalf of himself and all others similarly situated, petition

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any
such court for the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

     (b) In case at any time any of the following shall occur:

     (i) the Trustee shall fail to comply with the provisions of Section 310(b) of the Trust
Indenture Act after written request therefor by the Company or by any Securityholder who has
been a bona fide Holder of a Security or Securities for at least six months unless the
Trustee’s duty to resign is stayed in accordance with the provisions of Section 310(b) of
the Trust Indenture Act; or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 7.9 and shall fail to resign after written request therefor by the Company or by any
Securityholder; or the Trustee shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent; or a receiver or liquidator 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 case, the Company may remove the Trustee and appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors of the Company, one
copy of which instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, subject to the provisions of Section 6.12, any Securityholder who has
been a bona fide Holder of a Security or Securities 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 and the appointment of a successor trustee. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the Securities at the time
Outstanding may at any time remove the Trustee and appoint a successor trustee by delivering to the
Trustee so removed, to the successor trustee so appointed and to the Company the evidence provided
for in Section 8.1 of the action in that regard taken by the Securityholders.

     (d) No resignation or removal of the Trustee and no appointment of a successor trustee
pursuant to any of the provisions of this Section 7.10 shall become effective until acceptance of
appointment by the successor trustee as provided in Section 7.11.

     Section 7.11 Acceptance of Appointment by Successor Trustee.

     Any successor trustee appointed as provided in Section 7.10 shall execute, acknowledge and
deliver to the Company and to its predecessor trustee an instrument accepting such appointment
hereunder, 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 rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if originally named as trustee hereunder; but nevertheless, on the written

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request of the
Company or of the successor trustee, upon payment of all amounts due to the Trustee under Section
7.6, the Trustee ceasing to act shall, subject to Section 4.4, pay over to the successor trustee
all moneys at the time held by it hereunder and shall execute and deliver an instrument
transferring to such successor trustee all such rights, powers, duties and obligations. Upon
request of any successor trustee, the Company shall execute any and all instruments in writing for
more fully and certainly vesting in and confirming to such successor trustee all such rights and
powers. Any Trustee ceasing to act, shall, nevertheless, retain a prior Lien upon all property or
funds held or collected by such trustee to secure any amounts then due it pursuant to the
provisions of Section 7.6.

          No successor trustee shall accept appointment as provided in this Section 7.11 unless at the
time of such acceptance such successor trustee shall be qualified under the provisions of Section
7.8 and eligible under the provisions of Section 7.9.

          Upon acceptance of appointment by any successor trustee as provided in this Section 7.11, the
Company shall mail notice thereof by first-class mail to the Holders of Securities at their last
addresses as they shall appear on the Security Register. If the acceptance of appointment is
substantially contemporaneous with the resignation, then the notice called for by the preceding
sentence may be combined with the notice called for by Section 7.10. If the Company fails to mail
such notice within 10 days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed at the expense of the Company.

     Section 7.12 Merger, Conversion, Consolidation or Succession to Business of Trustee.

     Any corporation in 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 substantially all of the corporate
trust business of the Trustee, shall be the successor of the trustee hereunder, provided
that such corporation shall be qualified under the provisions of Section 7.8 and eligible under the
provisions of Section 7.9, without the execution or filing of any paper or any further act
(including the giving of any notice to Securityholders) on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

          In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities shall have been authenticated but not delivered, any such successor
to the Trustee may adopt the certificate of authentication of any predecessor trustee and deliver
such Securities so authenticated; and, in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such Securities either in the
name of any predecessor hereunder or in the name of the successor trustee; and in all such cases
such certificate shall have the full force which it is anywhere in the Securities or in this
Indenture provided for the certificate of authentication of the Trustee.

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     Section 7.13 Preferential Collection of Claims Against the Company.

     (a) Subject to the provisions of this Section, if the Trustee shall be or shall become a
creditor, directly or indirectly, secured or unsecured, of the Company or any other obligor of the
Securities within three months prior to a default, as defined in Section 7.13(c), or subsequent to
such a default, then, unless and until such default shall be cured, the Trustee shall set apart and
hold in a special account for the benefit of the Trustee individually, the Holders of the
Securities and the holders of other indenture securities (as defined in this Section):

     (i) an amount equal to any and all reductions in the amount due and owing upon any
claim as such creditor in respect of principal or interest, effected after the beginning of
such three months’ period and valid as against the Company and its other creditors, except
any such reduction resulting from the receipt or disposition of any property described in
Section 7.13(a)(ii), or from the exercise of any right of set-off which the Trustee could
have exercised if a petition in bankruptcy had been filed by or against the Company upon the
date of such default; and

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

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

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

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

(C) to realize, for its own account, but only to the extent of the claim hereinafter
mentioned, upon any property held by it as security for any such claim, if such
claim was created after the beginning of such three months’ period and such property
was received as security therefor simultaneously with the creation thereof, and if
the Trustee shall sustain the burden of proving that at the time such property was
so received the Trustee has no reasonable cause to believe that a default as defined
by Section 7.13(c) would occur within three months; or

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

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

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

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          Any Trustee who has resigned or been removed after the beginning of such three months’ period
shall be subject to the provisions of this Section 7.13(a) as though such resignation or removal
had not occurred. If any Trustee has resigned or been removed prior to the beginning of such three
months’ period, it shall be subject to the provisions of this Section 7.13(a) if and only if the
following conditions exist:

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

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

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

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

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

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

     (iv) an indebtedness created as a result of services rendered or premises rented or an
indebtedness created as a result of goods or securities sold in a cash transaction as
defined in Section 7.13(c)(iii);

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

     (vi) the acquisition, ownership, acceptance or negotiation of any drafts, bills of
exchange, acceptances or obligations which fall within the classification of
self-liquidating paper as defined in Section 7.13(c)(iv).

     (c) As used in this Section 7.13:

     (i) the term “default” shall mean any failure to make payment in full of the
principal of or interest upon any of the Securities of the applicable series or upon the

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other indenture securities when and as such principal or interest becomes due and payable;

     (ii) the term “other indenture securities” shall mean securities upon which the
Company is an obligor (as defined in the Trust Indenture Act) outstanding under any other
indenture (i) under which the Trustee is also trustee, (ii) which contains provisions
substantially similar to the provisions of Section 7.13(a), and (iii) under which a default
exists at the time of the apportionment of the funds and property held in said special
account;

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

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

     (v) the term “Company” shall mean any obligor upon the Securities.

     Section 7.14 Authenticating Agent.

     So long as any Securities remain Outstanding, if the Corporate Trust Office of the Trustee is
not located in the Borough of Manhattan, The City of New York, or otherwise upon a Company Request,
there shall be an authenticating agent (the “Authenticating Agent”) appointed, for such
period as the Company shall elect, by the Trustee to act as its agent on its behalf and subject to
its direction in connection with the authentication and delivery of Securities. Securities
authenticated by such Authenticating Agent shall be entitled to the benefits of this Indenture and
shall be valid and obligatory for all purposes as if authenticated by such Trustee. Wherever
reference is made in this Indenture to the authentication and delivery of Securities by the Trustee
or to 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 such Trustee by
such Authenticating Agent. Such Authenticating Agent shall at all times be a corporation organized
and doing business under the laws of the United States of America or of any State 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, State or District of Columbia authority. If the Corporate Trust Office

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of the Trustee is
not located in the Borough of Manhattan, The City of New York, the Authenticating Agent shall have
its principal office and place of business in the Borough of Manhattan, The City of New York.

          Any corporation into which any 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 any Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency business of any Authenticating Agent, shall continue to be the Authenticating Agent without
the execution or filing of any paper or any further act on the part of the Trustee or such
Authenticating Agent.

          Any Authenticating Agent may at any time, and if it shall cease to be eligible shall, resign
by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any
time terminate the agency of any Authenticating Agent by giving written notice of termination to
such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon
such a termination, or in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 7.14, the Trustee shall upon Company Request appoint
a successor Authenticating Agent, and the Company shall provide notice of such appointment to all
Holders of Securities in the manner and to the extent provided in Section 13.4. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all
rights, powers, duties and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein. The Company agrees to pay or to cause to be paid
to the Authenticating Agent from time to time reasonable compensation for its services. The
Authenticating Agent shall have no responsibility or liability for any action taken by it as such
in good faith at the direction of the Trustee.

ARTICLE 8

CONCERNING THE HOLDERS OF SECURITIES

     Section 8.1 Action by Holders.

     Whenever in this Indenture it is provided that the Holders of a specified percentage
in aggregate principal amount of the Securities of any series may take any action (including the
making of any demand or request, the giving of any notice, consent or waiver or the taking of any
other action) the fact that at the time of taking any such action the Holders of such specified
percentage have joined therein may be evidenced (a) by any instrument or any number of instruments
of similar intention executed by Holders in Person or by agent or proxy appointed in writing, or
(b) by the record of Holders voting in favor thereof at any meeting of
such Holders duly called and held in accordance with the provisions of Article 9, or (c) by a
combination of such instrument or instruments and any such record of such a meeting of Holders.
The Company may (but shall not be required to) set a record date for purposes of determining the
identity of Securityholders entitled to vote or consent to any action by vote or consent authorized
or permitted under this Indenture, which record date shall be the later of 10 days prior to the
first solicitation of such consent or the date of the most recent list of Holders furnished to the
Trustee pursuant to Section 5.1 of this Indenture prior to such solicitation. If a

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record date is
fixed, those Persons who were Securityholders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to take such action by vote or consent or to
revoke any vote or consent previously given, whether or not such Persons continue to be Holders
after such record date.

     Section 8.2 Proof of Execution of Instruments by Holders of Securities.

     Subject to Section 7.1, Section 7.2 and Section 9.5, the execution of any instrument by a
Holder of a Security or his agent or proxy may be proved in any reasonable manner that the Trustee
deems sufficient, including, without limitation, in the following manner:

          The fact and date of the execution by any such Person of any instrument may be proved by the
certificate of any notary public or other officer authorized to take acknowledgments of deeds, that
the Person executing such instrument acknowledged to him the execution thereof, or by an affidavit
or written statement of a witness to such execution. Where such execution is by an officer of a
corporation or association or a member of a partnership on behalf of such corporation, association
or partnership, as the case may be, or by any other Person acting in a representative capacity,
such certificate, affidavit or written statement shall also constitute sufficient proof of his
authority.

          The ownership of Securities shall be proved by the Securities Register or by a certificate of
the Securities Registrar.

          The record of any Holders’ meeting shall be proved in the manner provided in Section 9.6.

     Section 8.3 Holders to be Treated as Owners.

     The Company, the Trustee and any agent of the Company or the Trustee may deem and treat the
Person in whose name any Security shall be registered upon the Security Register as the absolute
owner of such Security (notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of principal of, and premium, if any, and (subject to Section 3.6 and
Section 3.8) interest, if any, on, such Security, and for all other purposes whatsoever, whether or
not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary. All such payments so made to any Holder
for the time being, shall be valid, and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable upon such Security.

          None of the Company, the Trustee or any agent of the Company or the Trustee shall have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interest of a Global Security, or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interest. Notwithstanding the foregoing, with
respect to any Global Security, nothing herein shall prevent the Company or the Trustee or any
agent of the Company or the Trustee from giving effect to any written certification, proxy or other
authorization furnished by any Depository (or

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its nominee), as a Holder, with respect to such
Global Security or impair, as between such Depository and owners of beneficial interests in such
Global Security, the operation of customary practices governing the exercise of the right of such
Depository (or its nominee) as Holder of such Global Security.

     Section 8.4 Securities Owned by Company Deemed Not Outstanding.

     In determining whether the Holders of the requisite aggregate principal amount of Securities
of any or all series have concurred in any direction, consent or waiver under this Indenture,
Securities which are owned by the Company or any other obligor on the Securities with respect to
which such determination is being made or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any other obligor on
the Securities with respect to which such determination is being made shall be disregarded and
deemed not to be Outstanding for the purpose of any such determination, except that for the purpose
of determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver only Securities which the Trustee knows are so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the Securities or any
Person directly or indirectly controlling or controlled by or under direct or indirect common
control with the Company or any other obligor on the Securities. In case of a dispute as to such
right, the advice of counsel shall be full protection in respect of any decision made by the
Trustee in accordance with such advice. Upon request of the Trustee, the Company shall furnish to
the Trustee promptly an Officer’s Certificate listing and identifying all Securities, if any, known
by the Company to be owned or held by or for the account of any of the above-described Persons;
and, subject to Section 7.1 and Section 7.2, the Trustee shall be entitled to accept such Officer’s
Certificate as conclusive evidence of the facts therein set forth and of the fact that all
Securities not listed therein are Outstanding for the purpose of any such determination.

     Section 8.5 Right of Revocation of Action Taken.

     At any time prior to (but not after) the evidencing to the Trustee, as provided in Section
8.1, of the taking of any action by the Holders of the percentage in aggregate principal amount of
the Securities of any or all series, as the case may be, specified in this Indenture in connection
with such action, any Holder of a Security, the number, letter or other distinguishing symbol of
which is shown by the evidence to be included in the Securities the Holders of which have consented
to such action, may, by filing written notice at the Corporate Trust Office and upon proof of
holding as provided in this Article, revoke such action so far as
concerns such Security. Except as aforesaid, any such action taken by the Holder of any
Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of
such Security and of any Securities issued in exchange or substitution therefor, irrespective of
whether or not any notation in regard thereto is made upon any such Security or such other
Security. Any action taken by the Holders of the percentage in aggregate principal amount of the
Securities of any or all series, as the case may be, specified in this Indenture in connection

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with such action shall be conclusively binding upon the Company, the Trustee and the Holders of all the
Securities affected by such action.

ARTICLE 9

HOLDERS’ MEETINGS

     Section 9.1 Purposes of Meetings.

     A meeting of Holders of Securities of any or all series may be called at any time and from
time to time pursuant to the provisions of this Article for any of the following purposes:

     (a) to give any notice to the Company or to the Trustee for the Securities of such series, or
to give any directions to the Trustee, or to consent to the waiving of any default hereunder and
its consequences, or to take any other action authorized to be taken by Holders pursuant to any of
the provisions of Article 6;

     (b) to remove the Trustee and nominate a successor Trustee pursuant to the provisions of
Article 7;

     (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to
the provisions of Section 10.2; or

     (d) to take any other action authorized to be taken by or on behalf of the Holders of any
specified aggregate principal amount of the Securities of any one or more or all series, as the
case may be, under any other provision of this Indenture or under applicable law.

     Section 9.2 Call of Meetings by Trustee.

     The Trustee may at any time call a meeting of Holders of Securities to take any action
specified in Section 9.1, to be held at such time and at such place in the Borough of Manhattan,
The City of New York, or such other Place of Payment, as the Trustee shall determine. Notice of
every meeting of the Holders of Securities, setting forth the time and the place of such meeting,
and in general terms the action proposed to be taken at such meeting, shall be given to Holders of
Securities of the particular series in the manner and to the extent provided in Section 13.4. Such
notice shall be given not less than 20 nor more than 90 days prior to the date fixed for the
meeting.

     Section 9.3 Call of Meetings by Company or Holders.

     In case at any time the Company, pursuant to a resolution of its Board of Directors, or the
Holders of at least 10% in aggregate principal amount of the Outstanding Securities of any
or all series, as the case may be, shall have requested the Trustee to call a meeting of
Holders of Securities of any or all series, as the case may be, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the Trustee for such series
shall not have given the notice of such meeting within 20 days after receipt of such request, then
the Company or such Holders may determine the time and the place in the Borough of Manhattan

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or other Place of Payment for such meeting and may call such meeting to take any action authorized in
Section 9.1, by giving notice thereof as provided in Section 9.2.

     Section 9.4 Qualifications for Voting.

     To be entitled to vote at any meeting of Holders a Person shall be (a) a Holder of one or more
outstanding Securities with respect to which such meeting is being held or (b) a Person appointed
by an instrument in writing as proxy by such Holder. The only Persons who shall be entitled to be
present or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting
and their counsel and any representatives of the Trustee and its counsel and any representatives of
the Company and its counsel.

     Section 9.5 Regulations.

     Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of the Securities in regard to
proof of the holding of Securities and of the appointment of proxies, and in regard to the
appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct
of the meeting as it shall think fit.

          The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Holders of Securities as provided in
Section 9.3, in which case the Company or the Holders calling the meeting, as the case may be,
shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary
of the meeting shall be elected by majority vote of the meeting.

          Subject to Section 8.4, at any meeting each Holder of Securities with respect to which such
meeting is being held or proxy therefor shall be entitled to one vote for each $1,000 principal
amount (in the case of Original Issue Discount Securities, such principal amount to be determined
as provided in the definition of “Outstanding”) of Securities held or represented by him;
provided, however, that no vote shall be cast or counted at any meeting in respect
of any such Security challenged as not Outstanding and ruled by the chairman of the meeting to be
not Outstanding. The chairman of the meeting shall have no right to vote other than by virtue of
Securities held by him or instruments in writing aforesaid duly designating him as the Person to
vote on behalf of other Holders. At any meeting of Holders, the presence of Persons holding or
representing Securities with respect to which such meeting is being held in an aggregate principal
amount sufficient to take action on the business for the transaction of which such meeting was
called shall constitute a quorum, but, if less than a quorum is present, the Persons holding or
representing a majority in aggregate principal amount of such Securities represented
at the meeting may adjourn such meeting with the same effect, for all intents and purposes, as
though a quorum had been present. Any meeting of Holders of Securities with respect to which a
meeting was duly called pursuant to the provisions of Section 9.2 or Section 9.3 may be adjourned
from time to time by Persons holding or representing a majority in aggregate

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principal amount of such Securities represented at the meeting, present, whether or not constituting a quorum, and the
meeting may be held as so adjourned without further notice.

     Section 9.6 Voting.

     The vote upon any resolution submitted to any meeting of Holders of Securities with respect to
which such meeting is being held shall be by written ballots on which shall be subscribed the
signatures of such Holders or of their representatives by proxy and the serial number or numbers of
the Securities held or represented by them. The permanent chairman of the meeting shall appoint
two inspectors of votes who shall count all votes cast at the meeting for or against any resolution
and who shall make and file with the secretary of the meeting their verified written reports in
duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of holders shall be prepared by the secretary of the meeting and there shall be attached to
said record the original reports of the inspectors of votes on any vote by ballot taken thereat and
affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice
of the meeting and showing that said notice was mailed as provided in Section 9.2. The record
shall show the serial numbers of the Securities voting in favor of or against any resolution. The
record shall be signed and verified by the affidavits of the permanent chairman and secretary of
the meeting and one of the duplicates shall be delivered to the Company and the other to the
Trustee to be preserved by the Trustee.

          Any record so signed and verified shall be conclusive evidence of the matters therein stated.

     Section 9.7 No Delay of Rights by Reason of Meeting.

     Nothing in this Article contained shall be deemed or construed to authorize or permit, by
reason of any call of a meeting of Holders or any rights expressly or impliedly conferred hereunder
to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or
reserved to the Trustee or to the Holders under any of the provisions of this Indenture or of the
Securities of any series.

ARTICLE 10

SUPPLEMENTAL INDENTURES

     Section 10.1 Supplemental Indentures Without Consent of Securityholders.

     Without the consent of any Holders of Securities, the Company, when authorized by a resolution
of its Board of Directors, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as in force at the date of the execution thereof) for one or more of the following
purposes:

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

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     (b) to evidence the succession of another Person to the Company, or successive successions,
and the assumption by the successor Person of the covenants, agreements and obligations of the
Company under this Indenture and the Securities, in each case in compliance with the Indenture;

     (c) to add to the covenants of the Company such further covenants, restrictions, conditions or
provisions as its Board of Directors shall consider to be for the protection of the Holders of any
series of Securities or Tranche thereof, or to surrender any right or power herein conferred upon
the Company and to make the occurrence and continuance of a default in any such additional
covenants, restrictions, conditions or provisions an Event of Default permitting the enforcement of
all or any of the several remedies provided in this Indenture as herein set forth; provided
that in respect of any such additional covenant, restriction, condition or provision such
supplemental indenture may provide for a particular period of grace after default (which period may
be shorter or longer than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such an Event of Default or may limit the remedies available to the
Trustee upon such an Event of Default or may limit the right of the Holders of a majority in
aggregate principal amount of the Securities of such series to waive such an Event of Default;

     (d) to cure any ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture which may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture; or to make such other provisions in regard to matters or
questions arising under this Indenture or under any supplemental indenture as the Board of
Directors may deem necessary or desirable and which shall not materially adversely affect the
interests of the Holders of any Securities;

     (e) to establish the form or terms of Securities of any series as permitted by Section 3.1;

     (f) to provide for the issuance under this Indenture of Securities in coupon form (including
Securities registrable as to principal only), to provide for interchangeability thereof with
Securities in registered form of the same series and to make all appropriate changes for such
purpose, or to permit or facilitate the issuance of Securities of any series in uncertificated form
provided any such action shall not adversely affect the interests of the Holders of Outstanding
Securities of any series in any material respect;

     (g) to add to, delete from or revise the conditions, limitations and restrictions on the
authorized amount, terms or purposes of issue, authentication and delivery of Securities, as herein
set forth;

     (h) to add any additional Events of Default with respect to all or any series of Securities
(as shall be specified in such supplemental indenture);

     (i) to supplement any of the provisions of this Indenture to such extent as shall be necessary
to permit or facilitate the defeasance and discharge of any series of Securities pursuant to
Article 12, provided that any such action shall not adversely affect the interests of

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any Holder of an Outstanding Security of such series or any other Outstanding Security in any material
respect;

     (j) to make provisions with respect to conversion or exchange rights of Holders of Securities
of any series;

     (k) to provide for the issuance under this Indenture of Securities denominated or payable in
currency other than Dollars and to make all appropriate changes for such purpose;

     (l) to evidence and provide for the acceptance of appointment hereunder by a successor trustee
with respect to the Securities, pursuant to Section 7.11, or 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;

     (m) to modify any restrictions on and procedures for resales of Securities of any series that
is not registered pursuant to the Securities Act to reflect any change in applicable law or
regulation (or the interpretation thereof) or in practices relating to the resale or transfer of
restricted securities generally and to modify any legends placed on such Securities to reflect such
restrictions and procedures;

     (n) to add to or change or eliminate any provision of this Indenture as shall be necessary or
desirable to conform to provisions of the Trust Indenture Act as at the time in effect,
provided that such action shall not materially adversely affect the interests of the
Holders of the Securities of any series; and

     (o) otherwise to amend or supplement any of the provisions of this Indenture or in any
supplemental indenture; provided, however, that no such amendment or supplement
shall materially adversely affect the interests of the Holders of any Securities then Outstanding.

     The Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and stipulations, which may be
therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any
property thereunder, but the Trustee shall not be obligated to enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

     Any supplemental indenture authorized by the provisions of this Section may be executed
without the consent of the Holders of any of the Securities at the time Outstanding,
notwithstanding any of the provisions of Section 10.2.

     Section 10.2 Supplemental Indentures With Consent of Securityholders.

     With the consent (evidenced as provided in Article 8) of the Holders of not less than a
majority in aggregate principal amount of the Securities at the time Outstanding of all series
affected by such supplemental indenture (voting as one class), the Company, when authorized by
a resolution of its Board of Directors, and the Trustee may, from time to time and at any

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time, enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of
the Trust Indenture Act as in force at the date of execution thereof) 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; provided that no such supplemental indenture shall (a)
change the Stated Maturity of the principal of, or any premium or installment of interest on or any
Additional Amounts with respect to, any Security of such series, or reduce the principal amount
thereof (or modify the calculation of such principal amount) or rate of interest thereon or any
Additional Amounts with respect thereto (or modify the calculation of such rate), or any premium
payable on redemption thereof or otherwise, or reduce the amount of the principal of an Original
Issue Discount Security that would be due and payable upon an acceleration with respect thereto
pursuant to Section 6.1 or the amount thereof provable in bankruptcy pursuant to Section 6.2, or
change the obligation of the Company to pay Additional Amounts pursuant to Section 4.4 (except as
contemplated by Section 11.1 and permitted by Section 10.1), or change the redemption provisions
or, following the occurrence of any event that would entitle a holder to require the Company to
redeem or repurchase the Securities at the option of the Holder, adversely affect the right of
redemption on repurchase at the option of such Holder, or change the Place of Payment, currency in
which the principal of, any premium or interest on, or any Additional Amounts with respect to any
security is payable, or impair or adversely affect the right of any Securityholder to institute
suit for the payment thereof or, if the Securities provide therefor, any right of repayment at the
option of the Securityholder, without the consent of the Holder of each Security of such series so
affected; or (b) reduce the aforesaid percentage of the principal amount of Securities Outstanding
of such series, the consent of the Holders of which is required for any such supplemental indenture
or any waiver of any obligations of the Company under this Indenture, without the consent of the
Holders of each Security of such series so affected, or reduce the requirements for quorum on
voting; or (c) modify any of the provisions of this Section, Section 6.10 or Section 4.9, except to
increase any such percentage or to provide that certain other provisions of this Indenture cannot
be modified without the consent of the Holder of each Outstanding Security thereby.

     Upon the request of the Company, accompanied by a Board Resolution authorizing the execution
of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent
of Securityholders as aforesaid and other documents, if any, required by Section 8.1, the Trustee
shall join with the Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee’s own rights, 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.

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

     A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such

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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.

     Section 10.3 Notice of Supplemental Indenture.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of Section 10.2, the Company shall mail a notice thereof by first-class
mail to the Holders of Securities of each series affected thereby at their addresses as they shall
appear on the Security Register, setting forth in general terms the substance of such supplemental
indenture. Any failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental indenture.

     Section 10.4 Effect of Supplemental Indenture.

     Upon the execution of any supplemental indenture pursuant to the provisions of this Article,
this Indenture shall be and be deemed to be modified and amended in accordance therewith, but only
with regard to the Securities of each series affected by such supplemental indenture, and the
respective rights, limitations of rights, obligations, duties and immunities under this Indenture
of the Trustee, the Company and the Holders of any Securities of such series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes with regard to the Securities of such series.

     Section 10.5 Documents To Be Given to Trustee.

     The Trustee, subject to the provisions of Section 7.1 and Section 7.2, shall be provided with
an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any supplemental
indenture executed pursuant to this Article complies with the applicable provisions of this
Indenture and is authorized or permitted by this Indenture.

     Section 10.6 Notation on Securities in Respect of Supplemental Indentures.

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

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ARTICLE 11

CONSOLIDATION, AMALGAMATION, MERGER OR SALE

     Section 11.1 Company May Consolidate, Etc., Only on Certain Terms.

     Unless otherwise provided in the Board Resolution or supplemental indenture pursuant to
Section 3.1 establishing the terms of a particular series of Securities, so long as any Security
remains Outstanding, the Company shall not consolidate or amalgamate with or merge into any other
corporation or convey, transfer or lease its properties and assets substantially as an entirety to
any Person unless:

(1) the corporation formed by such consolidation or amalgamation or into which the Company is
merged, or the Person which acquires, leases or is the transferee of or recipient of the conveyance
or transfer, of substantially all of the properties and assets of the Company as an entirety shall

     (a) be a corporation or other Person organized and validity existing under the laws of the
United States, the United Kingdom or any other country that is a member of the Organisation for
Economic Co-operation and Development (as the same may be constituted from time to time); and

     (b) expressly assume, unless the foregoing occurs by operation of law, by an indenture
supplemental hereto, executed and delivered to the Trustee for each series of Securities, in form
reasonably satisfactory to each such Trustee, with any amendments or revisions necessary to take
account of the jurisdiction in which any such corporation or Person is organized (if other than
England and Wales),

     (i) the due and punctual payment of the principal of (and premium, if any, on) and
interest, if any, on, and any sinking fund payment in respect of, all of the Securities,

     (ii) the performance of every covenant of this Indenture (other than a covenant
included in this Indenture solely for the benefit of Securities of a series other than the
Securities of such series) and of all the Securities on the part of the Company to be
performed,

     (iii) such assumption shall provide that such corporation or Person shall pay to the
Holder of any Securities such Additional Amounts as may be necessary in order that every net
payment of the principal of (and premium, if any, on) and interest, if any, on such
Securities will not be less than the amounts provided for in the Securities to be then due
and payable, and

     (iv) with respect to (iii) above such obligation shall extend to any deduction or
withholding for or on account of any present or future tax, assessment or governmental
charge imposed upon such payment by the United Kingdom or the country in which any such
corporation or Person is organized or resident for tax purposes or any district,
municipality or other political subdivision or taxing authority
thereof (subject to the limitations set forth in Section 4.4 in respect of the payment
of Additional Amounts as applied to such country);

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(2) immediately after giving effect to such transaction, no Event of Default with respect to
any series of Securities, and no event which, after notice or lapse of time or both, would
become an Event of Default with respect to any series of Securities, shall have occurred and
be continuing.

     Section 11.2 Opinion of Counsel.

     Either the Company or the successor Person shall deliver to the Trustee prior to the proposed
transaction(s) covered by Section 11.1 an Officer’s Certificate and an Opinion of Counsel stating
that the transaction(s) and such supplemental indenture are authorized and permitted by this
Indenture and that all conditions precedent to the consummation of the transaction(s) under this
Indenture have been met.

     Section 11.3 Successor Person Substituted.

     Upon any consolidation, amalgamation by the Company with or merger of the Company into any
other Person or any conveyance, lease or transfer of all or substantially all of the property and
assets of the Company in accordance with Section 11.1, the successor Person formed by such
consolidation or amalgamation or into which the Company is merged or the successor Person or
affiliated group of Persons to which such conveyance, assignment, or transfer or with which such
lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor Person or Persons had
been named as the Company herein, and thereafter, except in the case of a lease, the predecessor
Person or Persons shall be relieved of all obligations and covenants under this Indenture and the
Securities and in the event of such conveyance or transfer, except in the case of a lease, any such
predecessor Person may be dissolved and liquidated.

ARTICLE 12

SATISFACTION AND DISCHARGE OF INDENTURE,

UNCLAIMED MONEYS

     Section 12.1 Satisfaction and Discharge of Securities of Any Series.

     The Company shall be deemed to have satisfied and discharged this Indenture with respect to
the entire indebtedness on all the Outstanding Securities of any particular series, and the
Trustee, at the expense of the Company and upon Company Request, shall execute proper instruments
acknowledging such satisfaction and discharge, when

     (a) either:

     (i) all Outstanding Securities of such series theretofore authenticated and delivered
(other than (i) any Securities of such series which have been destroyed, lost or stolen and
which have been replaced or paid as provided in Section 3.7 and
(ii) Outstanding 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

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to the Company or discharged from such trust, as provided in Section 12.3) have been delivered
to the Trustee for cancellation; or

     (ii) all Outstanding Securities of such series described in sub-clause (i) above (other
than the Securities referred to in the parenthetical phrase thereof) not theretofore
delivered to the Trustee for cancellation:

	 	(x)	 	have become due and payable;
	 
	 	(y)	 	will become due and payable at their Stated
Maturity within one year; or
	 
	 	(z)	 	if redeemable at the option of the Company or
pursuant to the operation of a sinking fund, 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

(A) the Company has irrevocably deposited or caused to be irrevocably deposited with
the Trustee as trust funds in trust an amount (except as otherwise specified
pursuant to Section 3.1 for the Securities of such series) sufficient to pay and
discharge the entire indebtedness on all such Outstanding Securities of such series,
not therefore delivered to the Trustee for cancellation, including the principal of,
any premium and interest on, and any Additional Amounts with respect to such
Securities (based upon applicable law as in effect on the date of such deposit), to
the date of such deposit (in the case of Securities which have become due and
payable) or to the Maturity thereof, as the case may be;

(B) the Company has irrevocably deposited or caused to be irrevocably deposited with
the Trustee as obligations in trust such amount of Government Obligations as will,
in a written opinion of independent public accountants delivered to the Trustee,
together with the predetermined and certain income to accrue thereon (without
consideration of any reinvestment thereof), be sufficient to pay and discharge when
due the entire indebtedness on all such Outstanding Securities of such series for
unpaid principal (and premium, if any), interest on, and any Additional Amounts to
the date of such deposit (in the case of Securities which have become due and
payable) or Maturity thereof, as the case may be;

     (b) the Company has paid or caused to be paid all other sums payable with respect to the
Outstanding Securities of such series including all fees due to the Trustee under Section 7.6;

     (c) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to
the due satisfaction and discharge of this Indenture with respect to the entire indebtedness
on all Outstanding Securities of any such series have been complied with; and

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     (d) if the Securities of such series are not to become due and payable at their Stated
Maturity within one year of the date of such deposit or are not to be called for redemption within
one year of the date of such deposit under arrangements satisfactory to the Trustee as of the date
of such deposit, then the Company shall have given, not later than the date of such deposit, notice
of such deposit to the Holders of the Securities of such series.

     Upon the satisfaction of the conditions set forth in this Section 12.1 with respect to all the
Outstanding Securities of any series, the terms and conditions with respect thereto set forth in
this Indenture shall no longer be binding upon, or applicable to, the Company; provided,
however, that the Company shall not be discharged from (a) any obligations under Section
7.6 and Section 7.10 and (b) any obligations under Section 3.6, Section 3.7, Section 5.1 and
Section 12.3 and (c) any obligations under Section 4.4, with respect to the payment of any
Additional Amounts, if any, (but only to the extent that the Additional Amounts payable with
respect to any Outstanding Securities of such series exceed the amount deposited in respect of such
Additional Amounts pursuant to Section 12.1(a)(ii)); and provided, further, that in
the event a petition for relief under the Federal Bankruptcy Code or a successor statute is filed
with respect to the Company within 91 days after the deposit, this Indenture with respect to the
entire indebtedness on all Securities of such series shall not be discharged, and in such event the
Trustee shall return such deposited funds or obligations as it is then holding to the Company upon
Company Request.

     Section 12.2 Defeasance and Covenant Defeasance.

     (a) Unless pursuant to Section 3.1, either or both of (i) defeasance of the Securities of or
within a series under clause (b) of this Section 12.2 shall not be applicable with respect to the
Securities of such series or (ii) covenant defeasance of the Securities of or within a series under
clause (c) of this Section 12.2 shall not be applicable with respect to the Securities of such
series, then such provisions, together with the other provisions of this Section 12.2 (with such
modifications thereto as may be specified pursuant to Section 3.1 with respect to any Securities),
shall be applicable to such Securities and the Company may at its option by Board Resolution, at
any time, with respect to such Securities, elect to have Section 12.2(b) or Section 12.2(c) be
applied to such Outstanding Securities upon compliance with the conditions set forth below in this
Section 12.2.

     (b) Upon the Company’s exercise of the above option applicable to this Section 12.2(b) with
respect to any Securities of or within a series, the Company shall be deemed to have been
discharged from its obligations with respect to such Outstanding Securities on the date the
conditions set forth in clause (d) of this Section 12.2 are satisfied (hereinafter, “defeasance”).
For this purpose, such defeasance means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by such Outstanding Securities which shall
thereafter be deemed to be “Outstanding” only for the purposes of clause (c) of this Section 12.2
and the other Sections of this Indenture referred to in clauses (i) and (ii) below, and to have
satisfied all of its other obligations under such Securities and this Indenture insofar
as such Securities are concerned (and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following which shall survive
until otherwise terminated or discharged hereunder: (i) the rights of Holders of such Outstanding

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Securities to receive, solely from the trust fund described in clause (d) of this Section 12.2 and
as more fully set forth in such clause, payments in respect of the principal of (and premium, if
any) and interest, if any, on, and Additional Amounts, if any, with respect to, such Securities
when such payments are due, and any rights of such Holder to convert such Securities into Common
Stock of the Company or exchange such Securities for other securities; (ii) the obligations of the
Company and the Trustee with respect to such Securities under Sections 3.6, 3.7, 4.2, 4.3 and 12.3
and with respect to the payment of Additional Amounts, if any, on such Securities as contemplated
by Section 4.4 (but only to the extent that the Additional Amounts payable with respect to such
Securities exceed the amount deposited in respect of such Additional Amounts pursuant to Section
12.2(d)(i) below), and with respect to any rights to convert such Securities into Common Stock of
the Company or exchange such Securities for other securities; (iii) the rights, powers, trusts,
duties and immunities of the Trustee hereunder including, without limitation, the compensation,
reimbursement and indemnities provided in Section 7.6 herein; and (iv) this Section 12.2. The
Company may exercise its option under this Section 12.2(b) notwithstanding the prior exercise of
its option under clause (c) of this Section 12.2 with respect to such Securities.

     (c) Upon the Company’s exercise of the option to have this Section 12.2(c) apply with respect
to any Securities of or within a series, the Company shall be released from its obligations in
respect of any other covenant applicable to such Securities, with respect to such Outstanding
Securities on and after the date the conditions set forth in clause (d) of this Section 12.2 are
satisfied (hereinafter, “covenant defeasance”), and such Securities shall thereafter be deemed to
be not “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of
Holders (and the consequences of any thereof) in connection with any such covenant or obligation,
but shall continue to be deemed “Outstanding” for all other purposes hereunder. For this purpose,
such covenant defeasance means that, with respect to such Outstanding Securities, the Company may
omit to comply with, and shall have no liability in respect of, any term, condition or limitation
set forth in any such Section or such other covenant or obligation, whether directly or indirectly,
by reason of any reference elsewhere herein to any such Section or such other covenant or
obligation or by reason of reference in any such Section or such other covenant to any other
provision herein or in any other document and such omission to comply shall not constitute a
default or an Event of Default under Section 6.1 but, except as specified above, the remainder of
this Indenture and such Securities shall be unaffected thereby.

     (d) The following shall be the conditions to application of clause (b) or (c) of this Section
12.2 to any Outstanding Securities of or within a series:

     (i) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 7.8 who shall agree to
comply with the provisions of this Section 12.2 applicable to it) as trust funds in trust
for the purpose of making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities, (1) an
amount in Dollars or in such Foreign Currency in which such Securities are then
specified as payable at Stated Maturity, or (2) Government Obligations applicable to

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such Securities (determined on the basis of the Currency in which such Securities are then
specified as payable at Stated Maturity) which through the scheduled payment of principal
and interest in respect thereof in accordance with their terms will provide, not later than
one day before the due date of any payment with respect to such Securities, money in an
amount, or (3) a combination thereof, in any case, in an amount, sufficient, without
consideration of any reinvestment of such principal and interest, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which shall be
applied by the Trustee (or other qualifying trustee) to pay and discharge, (y) the principal
of (and premium, if any) and interest, if any, on, and any Additional Amounts with respect
to such Securities (based upon applicable law as in effect on the date of such deposit),
such Outstanding Securities at the Stated Maturity or Redemption Date of such principal or
installment of principal or premium or interest and (z) any mandatory sinking fund payments
or analogous payments applicable to such Outstanding Securities on the days on which such
payments are due and payable in accordance with the terms of this Indenture and of such
Securities and, if applicable, shall have made irrevocable arrangements satisfactory to the
Trustee for the redemption of any Securities to be redeemed at the option of the Company in
connection with such deposit.

     (ii) No Event of Default or event which with notice or lapse of time or both would
become an Event of Default with respect to such Securities shall have occurred and be
continuing on the date of such deposit (after giving effect thereto) and, with respect to
defeasance only, no event described in Section 6.1(e), (f) (g) or (h) at any time during the
period ending on the 91st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period).

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

     (iv) In the case of an election under clause (b) of this Section 12.2 for which the
Place of Payment is within the United States, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from the Internal
Revenue Service a letter ruling, or there has been published by the Internal Revenue Service
a Revenue Ruling, or (ii) since the date of execution of this Indenture, there has been a
change in the applicable Federal income tax law, in either case to the effect that, and
based thereon such opinion shall confirm that, the Holders of such Outstanding Securities
will not recognize income, gain or loss for Federal income tax purposes as a result of such
defeasance and will be subject to Federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such defeasance had not occurred.

     (v) In the case of an election under clause (c) of this Section 12.2 with respect to
Requested Securities and for which the Place of Payment is within the United States, the
Company shall have delivered to the Trustee an Opinion of Counsel to the

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effect that the Holders of such Outstanding Securities will not recognize income, gain or loss for Federal
income tax purposes as a result of such covenant defeasance and will be subject to Federal
income tax on the same amounts, in the same manner and at the same times as would have been
the case if such covenant defeasance had not occurred.

     (vi) With respect to defeasance only, the Company shall have delivered to the Trustee
an Officer’s Certificate as to solvency and the absence of any intent of preferring the
Holders over any other creditors of the Company.

     (vii) The Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the defeasance or covenant
defeasance under clause (b) or (c) of this Section 12.2 (as the case may be) have been
complied with.

     (viii) Notwithstanding any other provisions of this Section 12.2(d), such defeasance or
covenant defeasance shall be effected in compliance with any additional or substitute terms,
conditions or limitations which may be imposed on the Company in connection therewith
pursuant to Section 3.1.

     (e) Unless otherwise specified in or pursuant to this Indenture, if, after a deposit referred
to in Section 12.2(d)(i) has been made, (i) the Holder of a Security in respect of which such
deposit was made is entitled to, and does, elect pursuant to Section 3.1 or the terms of such
Security to receive payment in a Currency other than that in which the deposit pursuant to Section
12.2(d)(i) has been made in respect of such Security, or (ii) a Conversion Event occurs in respect
of the Foreign Currency in which the deposit pursuant to Section 12.2(d)(i) has been made, the
indebtedness represented by such Security shall be deemed to have been, and will be, fully
discharged and satisfied through the payment of the principal of (and premium, if any), and
interest, if any, on, and Additional Amounts, if any, with respect to, such Security as the same
becomes due out of the proceeds yielded by converting (from time to time as specified below in the
case of any such election) the amount or other property deposited in respect of such Security into
the Currency in which such Security becomes payable as a result of such election or Conversion
Event based on (x) in the case of payments made pursuant to clause (i) above, the applicable market
exchange rate for such Currency in effect on the second Business Day prior to each payment date, or
(y) with respect to a Conversion Event, the applicable market exchange rate for such Foreign
Currency in effect (as nearly as feasible) at the time of the Conversion Event.

          The Company shall pay and indemnify the Trustee (or other qualifying trustee, collectively for
purposes of this Section 12.2(d) and Section 12.3, the “Trustee”) against any tax, fee or
other charge, imposed on or assessed against the Government Obligations deposited pursuant to this
Section 12.2 or the principal or 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 such Outstanding Securities.

          Anything in this Section 12.2 to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon Company Request any money or

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Government Obligations (or other property and any proceeds therefrom) held by it as provided in clause (d) of this Section
12.2 which, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited to effect a defeasance or covenant defeasance,
as applicable, in accordance with this Section 12.2.

     Section 12.3 Application of Trust Money.

     All money and obligations deposited with the Trustee pursuant to Section 12.1 or 12.2 shall be
held irrevocably in trust and shall be made under the terms of an escrow trust agreement in form
and substance satisfactory to the Company and the Trustee. Such money and obligations shall be
applied by the Trustee, in accordance with the provisions of the Securities, this Indenture and
such escrow trust agreement, to the payment, either directly or through any Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal of (and premium, if any) and interest, if any, on the Securities for the
payment of which such money and obligations have been deposited with the Trustee. If Securities of
any series are to be redeemed prior to their Stated Maturity, whether pursuant to any optional
redemption provisions or in accordance with any mandatory or optional sinking fund requirement, the
Company shall give the required notice of redemption or shall make such arrangements as are
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Company.

     Section 12.4 Repayment of Moneys Held by Paying Agent.

     In connection with the satisfaction and discharge of this Indenture with respect to Securities
of any series, all moneys with respect to such series then held by any Paying Agent (and not
required for such satisfaction and discharge) shall, upon receipt of a Company Request for the
same, 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 12.5 Return of Unclaimed Moneys Held by Trustee and Paying Agent.

     Any moneys deposited with or paid to the Trustee or any Paying Agent for the payment of the
principal of, or premium, if any, or interest, if any, on, Securities of any series and which shall
not be applied but shall remain unclaimed by the Holders of Securities of such series for two years
after the date upon which such payment shall have become due and payable, shall be repaid to the
Company by the Trustee on demand; and the Holder of any of such Securities entitled to receive such
payment shall thereafter look only to the Company for the payment thereof; provided,
however, that the Company or the Trustee, before making any such repayment, shall 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 an Authorized Newspaper, or mail to each Holder, or both, a notice that
said moneys have not been so applied and that after a date named therein any unclaimed balance of
said moneys then remaining will be returned to the Company.

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          If the Trustee or Paying Agent is unable to apply any money in accordance with Section 12.3 by
reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section
12.1 or Section 12.2 until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 12.3; provided, however, that if the Company makes
any payment of interest on or principal of, or any Additional Amounts, with respect to any Security
following the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive such payment from the money held by the Trustee or Paying
Agent.

ARTICLE 13

MISCELLANEOUS PROVISIONS

     Section 13.1 Incorporators, Stockholders, Officers and Directors of Company Exempt from
Individual Liability.

     No recourse under or upon any obligation, covenant or agreement contained in this Indenture,
or in any Security, or for any claim based thereon or otherwise in respect thereof, or because of
any indebtedness evidenced thereby, shall be had against any incorporator, as such, or against any
past, present or future stockholder, officer or director, as such, of the Company or of any
successor, either directly or through the Company or any successor, under any rule of law, statute
or constitutional provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal liability whatever
shall attach to, or is or shall be incurred by, the incorporators, shareholders, officers or
directors, as such, of the Company, or any of them, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or agreements contained in
this Indenture or in any Security or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by constitution or
statute, of, and any and all such rights and claims against, every such incorporator, shareholder,
officer or director, as such, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in this Indenture or in
any Security or implied therefrom, are hereby expressly waived and released as a condition of, and
as a consideration for, the execution of this Indenture and the issuance of such Security.

     Section 13.2 Provisions of Indenture for the Sole Benefit of Parties and
Securityholders.

     Nothing in this Indenture or in the Securities, expressed or implied, shall give or be
construed to give to any Person, other than the parties hereto and their successors and the Holders
of the Securities, any legal or equitable right, remedy or claim under this Indenture or under any
covenant or provision herein contained, all such covenants and provisions being for the sole
benefit of the parties hereto and their successors and the Holders of the Securities.

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     Section 13.3 Successors and Assigns of Company Bound by Indenture.

     All the covenants, stipulations, promises and agreements in this Indenture contained by or on
behalf of the Company shall bind its successors and assigns, whether so expressed or not.

     Section 13.4 Notices to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed by
first-class mail, postage prepaid, to such Holders as their names and addresses appear on the
Securities Register within the time prescribed.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance on such waiver. 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, and any notice which is mailed in the
manner herein provided shall be conclusively presumed to have been duly given. In the case by
reason of the suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be made with the
approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. In
case by reason of the suspension of publication of any Authorized Newspapers or by reason of any
other cause it shall be impracticable to publish any notice to Holders otherwise required or
permitted under this Indenture, then such notification as shall be given with the approval of the
Trustee shall constitute sufficient notice to such Holders for every purpose hereunder.

     Section 13.5 Addresses for Notices.

     Any notice or demand which by any provision of this Indenture is required or permitted to be
given or served by the Trustee or by the Holders of Securities of any series on the Company may be
given or served by registered mail addressed (until another address is filed by the Company with
the Trustee) as follows: National Grid plc, 1-3 Strand, London, WC2N 5EH, England; Attention:
Treasurer. Any notice, direction, request or demand by the Company or any Holders of Securities of
any series to or upon the Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if received at the Corporate Trust Office of such Trustee.

     Section 13.6 Officer’s Certificates and Opinions of Counsel; Statements to Be Contained
Therein.

     Upon any application or demand by the Company to the Trustee to take any action under any of
the provisions of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate
stating that all conditions precedent (including any covenants compliance

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with which constitutes a condition precedent), if any, provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent (including any covenants compliance with
which constitutes a condition precedent), if any, have been complied with, except that in the case
of any such application or demand as to which the furnishing of such documents is specifically
required by any provision of this Indenture relating to such particular application or demand, no
additional certificate or opinion need be furnished.

          Each certificate or opinion provided for in this Indenture (other than annual certificates
provided pursuant to Section 4.10) and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture shall include (a) a statement that the Person
making such certificate or opinion has read such covenant or condition, (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 such
Person, he has made such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been complied with and (d) a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been
complied with.

          Any certificate, statement or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of or representations by counsel, unless
such officer knows that the certificate or opinion or representations with respect to the matters
upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the
exercise of reasonable care should know that the same are erroneous. Any certificate, statement or
opinion of counsel may be based, insofar as it relates to factual matters, information with respect
to which is in the possession of the Company, upon the certificate, statement or opinion of or
representations by an officer or officers of the Company, unless such counsel knows that the
certificate, statement or opinion or representations with respect to the matters upon which his
certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

          Any certificate, statement or opinion of an officer of the Company or of counsel may be based,
insofar as it relates to accounting matters, upon a certificate or opinion of or representations by
an accountant or firm of accountants in the employ of the Company, unless such officer or counsel,
as the case may be, knows that the certificate or opinion or representations with respect to the
accounting matters upon which his certificate, statement or opinion may be based as aforesaid are
erroneous, or in the exercise of reasonable care should know that the same are erroneous.

          Any certificate or opinion of any independent firm of public accountants filed with the
Trustee shall contain a statement that such firm is independent.

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     Section 13.7 Separability Clause.

     In case any provision of this Indenture or of 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 13.8 Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day in any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities, other than a provision in Securities of any
series, or any Tranche thereof, or in the indenture supplemental hereto, Board Resolution or
Officer’s Certificate that establishes the terms of the Securities of such series or Tranche, which
specifically states that such provision shall apply in lieu of this Section) payment of interest or
principal and premium, if any, need not be made at such Place of Payment on such date, but may be
made on the next succeeding Business Day at such Place of Payment with the same force and effect as
if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, and, if such
payment is made or duly provided for on such Business Day, no interest shall accrue on the amount
so payable for the period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be, to such Business Day.

     Section 13.9 Conflict of Any Provision of Indenture with Trust Indenture Act.

     If and to the extent that any provision of this Indenture limits, qualifies or conflicts with
a provision of the Trust Indenture Act that is required under such Act to be a part of and govern
this Indenture, the latter provision shall control. If any provision of this Indenture modifies or
excludes any provision of the Trust Indenture Act that may be so modified or excluded, the former
provision shall control.

     Section 13.10 Governing Law.

     This Indenture and each Security shall be deemed to be a contract governed by and construed in
accordance with the laws of the State of New York applicable to agreements made or instruments
entered into and, in each case, performed in said state.

     Section 13.11 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 it is necessary to convert the sum
due in respect of the principal of, or premium or interest, if any, or Additional Amounts on the
Securities of any series (the “Required Currency”) into a currency in which a judgment will
be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which
in accordance with normal banking procedures the Trustee could purchase in the City of New York the
requisite amount of the Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which a final unappealable judgment is given and (b) its obligations under
this Indenture to make payments in the Required Currency (i) shall not

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be discharged or satisfied by any tender, or any recovery pursuant to any judgment (whether or not entered in accordance with
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 payee, 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. For purposes of the foregoing, “New York Banking Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York or a day on which banking institutions
in The City of New York are authorized or obligated by law, regulation or executive order to be
closed.

     Section 13.12 No Security Interest Created.

     Subject to the provisions of Section 4.6, nothing in this Indenture or in any Securities,
express or implied, shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in effect in any
jurisdiction where property of the Company or its Subsidiaries is or may be located.

     Section 13.13 Submission to Jurisdiction.

     The Company agrees that any judicial proceedings instituted in relation to any matter arising
under this Indenture, the Securities appertaining thereto may be brought in any United States
Federal or New York State court sitting in the Borough of Manhattan, The City of New York, New York
to the extent that such court has subject matter jurisdiction over the controversy, and, by
execution and delivery of this Indenture, the Company hereby irrevocably accepts, generally and
unconditionally, the jurisdiction of the aforesaid courts, acknowledges their competence and
irrevocably agrees to be bound by any judgment rendered in such proceeding. The Company also
irrevocably and unconditionally waives for the benefit of the Trustee and the Holders of the
Securities any immunity from jurisdiction and any immunity from legal process (whether through
service or notice, attachment prior to judgment, attachment in the aid of execution, execution or
otherwise) in respect of this Indenture. The Company hereby irrevocably designates and appoints
for the benefit of the Trustee and the Holders of the Securities for the term of this Indenture CT
Corporation System, located at 111 Eighth Avenue, New York, New York 10011, as its agent to receive
on its behalf service of all process (with a copy of all such service of process to be delivered to
National Grid plc., 1-3 Strand, London, WC2N 5EH, England; Attention: Treasurer) brought against
it with respect to any such proceeding in any such court in The City of New York, such service
being hereby acknowledged by the Company to be effective and binding service on it in every respect
whether or not the Company shall then be doing or shall have at any time done business in New York.
Such appointment shall be irrevocable so long as any of the Securities or the obligations of the
Company hereunder remain outstanding until the appointment of a successor by the Company and such
successor’s acceptance of such appointment. Upon such acceptance, the Company shall notify the
Trustee in writing of the name and address of such successor. The Company further agrees for the
benefit of the Trustee and the Holders of the Securities to take any and all action, including the
execution and filing of any and all such documents and

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instruments, as its agent in full force and
effect so long as any of the Securities or the obligations of the Company hereunder shall be
outstanding. The Trustee shall not be obligated and shall have no responsibility with respect to
any failure by the Company to take any such action. Nothing herein shall affect the right to serve
process in any other manner permitted by any law or limit the right of the Trustee or any Holder to
institute proceedings against the Company in the courts of any other jurisdiction or jurisdictions.

     Section 13.14 Counterparts.

     This Indenture may be executed in any number of counterparts, and on separate counterparts,
each of which shall be an original; but such counterparts shall together constitute but one and the
same instrument.

     Section 13.15 Effect of Headings.

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

ARTICLE 14

REDEMPTION OF SECURITIES

     Section 14.1 Applicability of Article.

     The provisions of this Article shall be applicable to the Securities of any series which are
redeemable before their Stated Maturity except as otherwise specified as contemplated by Section
3.1 for Securities of such series.

     Section 14.2 Notice of Redemption; Selection of Securities.

     In case the Company shall desire to exercise the right to redeem all or, as the case may be,
any part of the Securities of any series in accordance with their terms, it shall fix a Redemption
Date and shall provide notice of such redemption at least 45 days prior to such Redemption Date to
the Trustee and at least 30 days but no more than 60 days prior to such Redemption Date to the
Holders of Securities of such series so to be redeemed as a whole or in part in the manner provided
in Section 13.4, unless a different period is specified in the Securities to be redeemed. The
notice provided in the manner herein specified shall be conclusively presumed to have been duly
given, whether or not the Holder receives such notice. In any case, failure to give such notice or
any defect in the notice to the Holder of any Security of a series designated for redemption as a
whole or in part shall not affect the validity of the proceedings for the redemption of any other
Security of such series.

          Each such notice of redemption shall specify the Redemption Date, the record date, Redemption
Price, the CUSIP, Common Code, ISIN or other comparable number, the Place or Places of Payment,
that the Securities of such series are being redeemed at the option of the Company pursuant to
provisions contained in the terms of the Securities of such series or in a supplemental indenture
establishing such series, if such be the case, together with a brief

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statement of the facts permitting such redemption, that payment will be made upon presentation and surrender of the
applicable Securities at the Place or Places of Payment, that the Redemption Price together with
any interest accrued and Additional Amounts to the Redemption Date will be paid as specified in
said notice, and that on and after said Redemption Date any interest thereon or on the portions
thereof to be redeemed will cease to accrue, and any information that is required to be included
therein by the Depository.

          If fewer than all the Securities of any series are to be redeemed the notice of redemption
shall specify the numbers of the Securities of such series to be redeemed. In case any Security of
any series is to be redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the Redemption Date, upon
surrender of such Security, a new Security or Securities of such series in principal amount equal
to the unredeemed portion thereof will be issued, or, in the case of Securities providing
appropriate space for such notation, at the option of the Holders the Trustee, in lieu of
delivering a new Security or Securities as aforesaid, may make a notation on such Security of the
payment of the redeemed portion thereof.

          On or before the Redemption Date with respect to the Securities of any series stated in the
notice of redemption given as provided in this Section 14.2, the Company will deposit with the
Trustee or with one or more Paying Agents an amount of money (except as otherwise specified as
contemplated by Section 3.1 for the Securities of such series or if the Company is acting as its
own Paying Agent, segregate and hold in trust as provided in Section 4.3) sufficient to redeem on
such Redemption Date all the Securities or portions thereof so called for redemption at the
applicable Redemption Price, together with accrued interest on and Additional Amounts with respect
thereto, to such Redemption Date.

          If fewer than all the Securities of any series, or any Tranche thereof, are to be redeemed,
the Company shall give notice of redemption to the Trustee not less than 60 days prior to the
Redemption Date as to the aggregate principal amount of Securities to be redeemed.

          If a Holders’ Redemption Agreement, as hereinafter defined, is not on file with the Trustee
and in effect, the particular Securities to be redeemed shall be selected by the Trustee, from the
Outstanding Securities of such series or Tranche not previously called for redemption,
substantially pro rata, by lot or by any other method the Trustee considers fair and appropriate
and that complies with the requirements of the principal national securities exchange, if any, on
which such Securities are listed, and which may provide for the selection for redemption of
portions (equal to the minimum authorized denomination for Securities of that series or Tranche or
any integral multiple thereof) of the principal amount of Securities of such series or Tranche of a
denomination larger than the minimum authorized denomination for Securities of that series or
Tranche; provided that in the event that the Securities of such series or Tranche have
different terms and maturities, the Securities to be redeemed shall be selected by the Company and
the Company shall give notice thereof to the Trustee; provided, however, that if,
as indicated in an Officer’s Certificate, the Company shall have offered to purchase all or any
principal amount of the Securities then Outstanding of any series, or any Tranche thereof, and
fewer than all of such Securities as to which such offer was made shall have been tendered to the
Company for such purchase, the Trustee, if so directed by Company Order, shall

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select for redemption all or any principal amount of such Securities which have not been so tendered.

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

          If at the time the Company shall have given notice of redemption to the Trustee in accordance
with Section 14.2, there shall be on file with the Trustee and in effect a Holders’ Redemption
Agreement, as hereinafter defined, then the Trustee shall select, in accordance with the provisions
of said Holders’ Redemption Agreement, the Securities or parts thereof to be redeemed.

          For the purposes of this Indenture, the term “Holders’ Redemption Agreement” shall mean an
agreement, reasonably satisfactory to the Trustee, executed as provided in this Section, which
provides for the method to be followed by the Trustee in selecting Securities or parts of
Securities for redemption out of any funds held by the Trustee to be applied to such redemption. A
Holders’ Redemption Agreement may be made with respect to a single series of Securities, or Tranche
thereof, in which case it shall be executed by or on behalf of the Holders of all Outstanding
Securities of such series or Tranche, or it may be made with respect to all Outstanding Securities
in which case it shall be executed by or on behalf of the Holders of all Securities Outstanding
hereunder.

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

     Section 14.3 Payment of Securities Called for Redemption.

     If notice of redemption has been given as above provided and the Company has deposited, on or
before the Redemption Date, with the Trustee (and/or having irrevocably directed the Trustee to
apply, from money held by it available to be used for the redemption of Securities) an amount in
cash sufficient to redeem all of the Securities to be redeemed, the Securities or portions of
Securities of the series specified in such notice shall become due and payable on the Redemption
Date, and at the place or places stated in such notice at the applicable Redemption Price, together
with any interest accrued to such Redemption Date, and on and after said Redemption Date any
interest on the Securities or portion of Securities of any series so called for redemption shall
cease to accrue. On presentation and surrender of such Securities at a Place of Payment in such
notice specified, such Securities or the specified portions thereof shall be paid and redeemed by
the Company at the applicable Redemption Price, together with any interest accrued and Additional
Amounts to the Redemption Date,

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except that if such Redemption Date is an Interest Payment Date, interest shall be paid as provided in Section 3.8.

          Upon presentation of any Security redeemed in part only, the Company shall execute and the
Trustee shall authenticate and make available for delivery to or on the order of the Holder
thereof, at the expense of the Company, a new Security or Securities of such series,
of authorized denominations, in principal amount equal to the unredeemed portion of the
Security so presented.

          If a Security in global form is so surrendered, the Company shall execute, and the Trustee
shall authenticate and deliver to the U.S. Depository or other Depository for such Security in
global form as shall be specified in the Company Order with respect thereto to the Trustee, without
service charge, a new Security in global form in a denomination equal to and in exchange for the
unredeemed portion of the principal of the Security in global form so surrendered.

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

ARTICLE 15

REDEMPTION AT THE OPTION OF HOLDERS FOLLOWING A RESTRUCTURING EVENT

     Section 15.1 Applicability of Article.

          The provisions of this Article shall be applicable to the Securities of any series if
specified by Section 3.1 for Securities of such series.

     Section 15.2 Redemption of Securities issued by the Company at the Option of Holders.

          If the provisions of this Article shall be applicable to the Securities of a series pursuant
to Section 3.1, then if at any time while any of the Securities of such series issued by the
Company remains outstanding, there occurs a Restructuring Event, a Public Announcement shall be
made and if, within the Restructuring Period, either:

	 	(a)	 	(if at the time that the Restructuring Event occurs there are Rated Securities)
a Rating Downgrade in respect of the Restructuring Event occurs; or
	 
	 	(b)	 	(if at the time that the Restructuring Event occurs there are no Rated
Securities) a Negative Rating Event in respect of the Restructuring Event occurs,

then the Holders of each Security of such series issued by the Company will have the option upon
the giving of a Put Notice (as defined in Section 15.5) to require the Company to redeem or, at the
option of the Company, purchase (or procure the purchase of) such Security on the Put

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Date (as defined in Section 15.5) at its principal amount together with accrued interest to the Put Date.
The Restructuring Event and Rating Downgrade or the Restructuring Event and Negative Rating Event,
as the case may be, occurring within the Restructuring Period, are together referred to as a “Put
Event.”

          If the provisions of this Article shall be applicable to the Securities of a series pursuant
to Section 3.1, then promptly upon the Company becoming aware that a Put Event has
occurred, the Company shall, or at any time upon the Trustee having actual knowledge of such
Put Event or having received written notice thereof the Trustee may, and if so requested in writing
by the Holders of not less than 25% in aggregate principal amount of the Securities of the
applicable series then Outstanding, the Trustee shall, give notice (a “Put Event Notice”) to the
Holders of the relevant series of Securities in accordance with Section 13.4 specifying the nature
of the Put Event and the procedure (as set out in Section 15.5) for exercising the option contained
in this Section 15.2.

          The Company shall, forthwith upon becoming aware of the occurrence of the Restructuring Event
(a) provide the Trustee with the relevant Directors’ Report and (b) provide or procure that the
Reporting Accountants provide the Trustee with the Accountants’ Report. The Directors’ Report and
the Accountants’ Report shall, in the absence of manifest error, be conclusive and binding on all
concerned, including the Trustee and the Holders. The Trustee shall be entitled to act, or not act,
and rely on without being expected to verify the accuracy of the same (and shall have no liability
to Holders for doing so) any Directors’ Report and/or any Accountants’ Report (whether or not
addressed to it).

     Section 15.3 Definitions related to Redemption of Securities issued by the Company at the
Option of Holders.

          For the purposes of this Article 15:

          “Accountants’ Report” means a report of the Reporting Accountants stating whether the amounts
included in the calculation of the Operating Profit and the amount for Consolidated Operating
Profit as included in the Directors’ Report have been accurately extracted from the accounting
records of the Company and its Subsidiaries and whether the Disposal Percentage included in the
Directors’ Report has been correctly calculated which will be prepared pursuant to an engagement
letter to be entered into by the Reporting Accountants and the Company.

          The Company shall use reasonable efforts to procure that there shall at the relevant time be
Reporting Accountants who have (a) entered into an engagement letter with the Company which shall
(i) not limit the liability of the Reporting Accountants by reference to a monetary cap and (ii) be
available for inspection by Holders at the principal office of the Trustee or (b) agreed to provide
Accountants’ Reports on such other terms as the Company shall approve. If the Company, having used
reasonable efforts, is unable to procure that there shall at the relevant time be Reporting
Accountants who have entered into an engagement letter complying with (i) above, the Trustee may
rely on an Accountants’ Report which contains a limit on the liability of the Reporting Accountants
by reference to a monetary cap or otherwise.

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          Investors should be aware that the engagement letter may contain a limit on the liability of
the Reporting Accountants which may impact on the interests of Holders.

          The Company shall give notice to the Trustee of the identity of the Reporting Accountants;

          “Consolidated Operating Profit” means the consolidated operating profit on ordinary activities
before tax and interest and before taking account of depreciation and amortisation of goodwill and
regulatory assets (for the avoidance of doubt, exceptional items, as reflected in the Relevant
Accounts shall not be included) of the Company and its subsidiaries (including any share of
operating profit of associates and joint ventures) determined in accordance with IFRS by reference
to the Relevant Accounts;

          “Directors’ Report” means a report prepared and signed by two directors of the Company
addressed to the Trustee setting out the Operating Profit, the Consolidated Operating Profit and
the Disposal Percentage and stating any assumptions which the Directors of the Company have
employed in determining the Operating Profit;

          “Disposal Percentage” means, in relation to a sale, transfer, lease or other disposal or
dispossession of any Disposed Assets, the ratio of (a) the aggregate Operating Profit to (b) the
Consolidated Operating Profit, expressed as a percentage;

          “Disposed Assets” means, where the Company and/or any of its Subsidiaries sells, transfers,
leases or otherwise disposes of or is dispossessed by any means (but excluding sales, transfers,
leases, disposals or dispossessions which, when taken together with any related lease back or
similar arrangements entered into in the ordinary course of business, have the result that the
Operating Profit directly attributable to any such undertaking, property or assets continues to
accrue to the Company or, as the case may be, such Subsidiary), otherwise than to a wholly-owned
Subsidiary of the Company or to the Company, of the whole or any part (whether by a single
transaction or by a number of transactions whether related or not) of its undertaking or (except in
the ordinary course of business of the Company or any such Subsidiary) property or assets, the
undertaking, property or assets sold, transferred, leased or otherwise disposed of or of which it
is so dispossessed;

          “Negative Rating Event” shall be deemed to have occurred if either (a) the Company does not,
either prior to or not later than 21 days after the relevant Restructuring Event, seek, and
thereupon use all reasonable efforts to obtain, a rating of the relevant series of Securities or
any other unsecured and unsubordinated debt of the Company having an initial maturity of five years
or more (“Rateable Debt”) from a Rating Agency or (b) if the Company does so seek and use such
efforts, it is unable, as a result of such Restructuring Event, to obtain such a rating of at least
investment grade (BBB- or Baa3 or their respective equivalents for the time being), provided that a
Negative Rating Event shall not be deemed to have occurred in respect of a particular Restructuring
Event if the Rating Agency declining to assign a rating of at least investment grade (as described
above) does not announce or publicly confirm that its declining to assign a rating of at least
investment grade was the result, in whole or in part, of any event or circumstance comprised in or
arising as a result of, or in respect of, the applicable

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Restructuring Event (whether or not the Restructuring Event shall have occurred at the time such investment grade rating is declined);

          “Operating Profit”, in relation to any Disposed Assets, means the operating profits on
ordinary activities before tax and interest and before taking account of depreciation and
amortisation of goodwill and regulatory assets (for the avoidance of doubt, exceptional
items, as reflected in the Relevant Accounts, shall not be included) of the Company and its
Subsidiaries directly attributable to such Disposed Assets as determined in accordance with IFRS by
reference to the Relevant Accounts and, if Relevant Accounts do not yet exist, determined in a
manner consistent with the assumptions upon which the Directors’ Report is to be based. Where the
Directors of the Company have employed assumptions in determining the Operating Profit, those
assumptions should be clearly stated in the Directors’ Report;

          “Public Announcement” means an announcement by the Company or the Trustee, of the occurrence
of the Restructuring Event published in a leading national newspaper having general circulation in
the United States (which is expected to be the Wall Street Journal);

          “Rated Securities” means for each series of Securities, the Securities of such series, if and
for so long as they shall have an effective rating from a Rating Agency and otherwise any Rateable
Debt which is rated by a Rating Agency; provided that if there shall be no such Rateable Debt
outstanding prior to the maturity of the Securities, the Holders of not less than one-quarter in
principal amount of outstanding Securities of the series may require the Company to obtain and
thereafter update on an annual basis a rating of such Securities from a Rating Agency. In addition,
the Company may at any time obtain and thereafter update on an annual basis a rating of the
relevant series of Securities from a Rating Agency, provided that, except as provided above, the
Company shall not have any obligation to obtain such a rating of such Securities;

          “Rating Agency” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. and its successors or Moody’s Investors Service, Inc. and its successors or any
rating agency substituted for either of them (or any permitted substitute of them) by the Company
from time to time with the prior written approval of the Trustee;

          “Rating Downgrade” shall be deemed to have occurred in respect of the Restructuring Event if
the then current rating whether provided by a Rating Agency at the invitation of the Company or by
its own volition assigned to the Rated Securities by any Rating Agency is withdrawn or reduced from
an investment grade rating (BBB- or Baa3 or their respective equivalents for the time being or
better) to a non-investment grade rating (BB+ or Ba1 or their respective equivalents for the time
being or worse) or, if a Rating Agency shall already have rated the Rated Securities below
investment grade (as described above), the rating is lowered one full rating category; provided
that a Rating Downgrade otherwise arising by virtue of a particular reduction in rating shall not
be deemed to have occurred in respect of a particular Restructuring Event if the Rating Agency
making the reduction in rating to which this definition would otherwise apply does not announce or
publicly confirm that the reduction was the result, in whole or part, of any event or circumstance
comprised in or arising as a result of,

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or in respect of, the applicable Restructuring Event (whether or not the applicable Restructuring Event shall have occurred at the time of the Rating
Downgrade);

          “Relevant Accounts” means the most recent annual audited consolidated financial accounts of
the Company and its Subsidiaries prepared in accordance with IFRS (or such other accounting
standards as may be applicable to the Company at the relevant time)
preceding the relevant sale, transfer, lease or other disposal or dispossession of any
Disposed Asset;

          “Reporting Accountants” means the auditors of the Company (but not acting in their capacity as
auditors) or such other firm of accountants as may be nominated by the Company and approved in
writing by the Trustee for the purpose or, failing which, as may be selected by the Trustee for the
purpose; provided that the Company shall pay the costs and expenses of any auditors or accountants
nominated by the Company and approved in writing by the Trustee; provided further that the Company
shall pay the reasonable and properly incurred costs and expenses of any auditors or accountants selected solely by the
Trustee;

          “Restructuring Event” shall be deemed to have occurred at any time (whether or not approved by
the Board of Directors) that the sum of Disposal Percentages for the Company within any period of
consecutive 36 months commencing on or after the initial issue date of the first series of the
Securities is greater than 50 percent; and

          “Restructuring Period” means the period ending 90 days after a Public Announcement (or such
longer period in which the Rated Securities or Rateable Debt, as the case may be, is or are under
consideration (announced publicly within the first mentioned period) for rating review or, as the
case may be, rating by a Rating Agency).

     Section 15.4 Responsibilities of Trustee.

          The Trustee shall not be responsible for ascertaining or monitoring whether or not the
Restructuring Event, a Negative Rating Event or a Rating Downgrade in relation to the Company has
occurred and, unless and until it has actual knowledge to the contrary, shall be entitled to assume
that no such event has occurred.

     Section 15.5 Procedures for Exercise of Put Option by Holders

          To exercise the option of redemption of a Security under Section 15.2 the Holders must deliver
(or cause to be delivered) each Security to be redeemed accompanied by a duly signed and completed
notice of exercise in the form (for the time being current) obtainable from the specified office of
any Paying Agent (a “Put Notice”), in which the Holders may specify an account to which payment is
to be made under this Article 15 to the specified office of any Paying Agent on any Business Day
falling within the period (the “Put Period”) of 45 days after a Put Event Notice is given. The
Security should be delivered after the date (the “Put Date”) falling seven days after the expiry of
the Put Period. The Paying Agent to which such Security and Put Notice are delivered will issue to
the Holders concerned a non-transferable receipt in respect of the Security so delivered. Payment
in respect of any Security so delivered

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will be made, if the Holder duly specified a bank account in the Put Notice to which payment is to be made, on the Put Date by transfer to that bank account
and, in every other case, on or after the Put Date in the same manner as payment for the principal
of any premium and interest on the Securities. A Put Notice, once given, shall be irrevocable and
no Security so deposited may be withdrawn without the prior consent of the Company. The Company
shall redeem the relevant Securities on the Put Date unless previously redeemed or purchased.

ARTICLE 16

SINKING FUNDS

     Section 16.1 Applicability of Article.

     The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 3.1 for Securities
of such series.

          The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment”.

     Section 16.2 Satisfaction of Mandatory Sinking Fund Payment with Securities.

     In lieu of making all or any part of any mandatory sinking fund payment with respect to any
Securities of a series in cash, the Company may at its option, at any time but not less than 45
days prior to the date on which such sinking fund payment is due, deliver to the Trustee Securities
of such series theretofore purchased or otherwise acquired by the Company, except Securities of
such series which have been redeemed through the application of mandatory sinking fund payments
pursuant to the terms of the Securities of such series, accompanied by a Company Order instructing
the Trustee to credit such obligations and stating that the Securities of such series were
originally issued by the Company by way of bona fide sale or other negotiation for value;
provided that such Securities have not been previously so credited. Such Securities shall
be received and credited for such purpose by the Trustee at the Redemption Price specified in such
Securities for redemption through operation of the mandatory sinking fund and the amount of such
mandatory sinking fund payment shall be reduced accordingly.

     Section 16.3 Redemption of Securities for Sinking Fund.

     Not less than 60 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee a certificate signed by any director, the treasurer or any
duly authorized assistant treasurer of the Company specifying the amount of the next ensuing
sinking fund payment for such series pursuant to the terms of such series, the portion thereof, if
any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting Securities of such series pursuant to Section 15.2 and
whether the Company intends to exercise its rights to make a permitted optional sinking fund
payment with respect to such series. Such certificate shall be irrevocable

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and upon its delivery the Company shall be obligated to make the cash payment or payments therein referred to, if any, on
or before the next succeeding sinking fund payment date. In the case of the failure of the Company
to deliver such certificate (or to deliver the Securities, if any, specified in such certificate
within the time period specified in Section 15.2), unless otherwise agreed by the Trustee, the
sinking fund payment due on the next succeeding sinking fund payment date for such series shall be
paid entirely in cash and shall be sufficient to redeem the principal amount of the Securities of
such series subject to a mandatory sinking
fund payment without the right to deliver or credit Securities as provided in Section 15.2 and
without the right to make any optional sinking fund payment, if any, with respect to such series.

          Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused
balance of any preceding sinking fund payments made with respect to the Securities of any
particular series shall be applied by the Trustee (or by the Company if the Company is acting as
its own Paying Agent) on the sinking fund payment date on which such payment is made (or, if such
payment is made before a sinking fund payment date, on the sinking fund payment date following the
date of such payment) to the redemption of Securities of such series at the Redemption Price
specified in such Securities with respect to the sinking fund together with accrued interest, if
any, to the applicable Redemption Date. Any sinking fund moneys not so applied or allocated by the
Trustee (or by the Company if the Company is acting as its own Paying Agent) to the redemption of
Securities shall be added to the next sinking fund payment received by the Trustee (or if the
Company is acting as its own Paying Agent, segregated and held in trust as provided in Section 4.3)
for such series and, together with such payment (or such amount so segregated) shall be applied in
accordance with the provisions of this Section 15.3. Any and all sinking fund moneys with respect
to the Securities of any particular series held by the Trustee (or if the Company is acting as its
own Paying Agent, segregated and held in trust as provided in Section 4.3) on the last sinking fund
payment date with respect to Securities of such series and not held for the payment or redemption
of particular Securities of such series shall be applied by the Trustee (or by the Company if the
Company is acting as its own Paying Agent), together with other moneys, if necessary, to be
deposited (or segregated) sufficient for the purpose, to the payment of the principal of the
Securities of such series at Maturity.

          The Trustee shall select or cause to be selected the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 14.2 and the Company shall cause
notice of the redemption thereof to be given in the manner provided in Section 14.2 except that the
notice of redemption shall also state that the Securities are being redeemed by operation of the
sinking fund and whether the sinking fund payment is mandatory or optional, or both, as the case
may be. Such notice having been duly given, the redemption of the Securities shall be made upon
the terms and in the manner stated in Section 14.3.

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

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

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          IN WITNESS WHEREOF, National Grid plc has caused this Indenture to be duly executed as a deed
as of the date above written.

	 	 	 	 	 
	 	National Grid plc

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

          IN WITNESS WHEREOF, the undersigned, being duly authorized, has executed this Indenture as of
the date first above written.

	 	 	 	 	 
	 	The Bank of New York, as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:<PAGE>

                                                                    EXHIBIT 10.1

                            IMARX THERAPEUTICS, INC.

                            INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (the "Agreement") is entered into on
______________________, between IMARX THERAPEUTICS, INC. a Delaware corporation
(the "Company"), and ___________________, a director, officer, or both, of the
Company and/or one or more of its subsidiaries ("Indemnitee"), for good and
valuable consideration as set forth below.

                                    RECITALS

     A. The Company recognizes the importance, and increasing difficulty, of
obtaining adequate liability insurance coverage for its directors, officers,
employees, agents and fiduciaries.

     B. The Company further recognizes that, at the same time as the
availability and coverage of such insurance has become more limited, litigation
against corporate directors, officers, employees, agents and fiduciaries has
continued to increase.

     C. Section 145 of the Delaware General Corporation Law, ("Statute") under
which the Company is organized, empowers the Company by agreement to indemnify
its directors, officers, employees, agents, and persons who serve, at the
request of the Company, as the directors, officers, employees or agents of other
corporations or enterprises related to the Company, and expressly provides that
the indemnification provided by Section 145 of the Statute is not exclusive.

     D. Article VIII of the Company's Bylaws (the "Bylaws") provides for
indemnification of the Company's directors and officers to the full extent
authorized by the Statute, and that such provisions are not exclusive and may be
supplemented by agreements between the Company and its officers and directors.

     E. The Company desires to retain and attract the services of highly
qualified individuals, such as Indemnitee, to serve the Company and, in that
connection, also desires to provide contractually for indemnification of, and
advancement of expenses to, Indemnitee to the full extent authorized by law.

                                    AGREEMENT

     1. INDEMNIFICATION

          a. SCOPE. Subject to Section 1(b), the Company agrees to hold harmless
and indemnify Indemnitee against any Damages (as defined in Section 1(d))
incurred by Indemnitee with respect to any Proceeding (as defined in Section
1(e)) to which Indemnitee is or is threatened to be made a party or in which
Indemnitee is otherwise involved (including, but not limited to, as a witness),
to the full extent authorized or permitted by law, except that Indemnitee shall
have no right to indemnification on account of: (i) acts or omissions of
Indemnitee that

<PAGE>

have been finally adjudged (by a court having proper jurisdiction, and after all
rights of appeal have been exhausted or lapsed, herein "Finally Adjudged") to be
not in good faith or which involve intentional misconduct or a knowing violation
of law; (ii) any breach of the director's duty of loyalty to the Company or its
stockholders; (iii) any liability under Section 174 of the Statute; (iv) any
transaction with respect to which it has been Finally Adjudged that Indemnitee
personally received an improper personal benefit; or (v) any suit in which it is
Finally Adjudged that Indemnitee is liable for an accounting of profits made
from the purchase or sale by Indemnitee of securities of the Company in
violation of the provisions of Section 16(b) of the Securities Exchange Act of
1934 and amendments thereto.

          b. DERIVATIVE ACTIONS. The obligations described in Section 1(a) shall
apply with equal force in situations where the Indemnitee is a party or
threatened to be made a party to any Proceeding by or in the right of the
Company, except that no indemnification shall be made in respect to any claim,
issue or matter in such Proceeding as to which the Indemnitee has been Finally
Adjudged to be liable to the Company unless, and only to the extent that, the
court in which such Proceeding was brought has determined that, despite the
adjudication of liability but in view of all the circumstances of the case, the
Indemnitee is fairly and reasonably entitled to indemnity for such amounts as
the court deems proper.

          c. CHANGES TO INDEMNIFICATION RIGHT. Indemnitee's right to be
indemnified to the full extent authorized by law shall include the benefits of
any change, after the date of this Agreement, in the Statute or other applicable
law regarding the right of a Delaware corporation to indemnify directors or
officers, to the extent that it would expand Indemnitee's rights hereunder. Any
such change that would narrow or interfere with Indemnitee's rights hereunder
shall not apply to, limit, or affect the interpretation of, this Agreement,
unless and then only to the extent that it has been Finally Adjudged that its
application hereto does not constitute an unconstitutional impairment of
Indemnitee's contract rights or otherwise violate applicable law.

          d. INDEMNIFIED AMOUNTS. If Indemnitee is or is threatened to be made a
party to, or is otherwise involved (including, but not limited to, as a witness)
in, any Proceeding, the Company shall hold harmless and indemnify Indemnitee
from and against any and all losses, claims, damages, costs, expenses and
liabilities incurred in connection with investigating, defending, being a
witness in, participating in or otherwise being involved in (including on
appeal), or preparing to defend, be a witness in, participate in or otherwise be
involved in (including on appeal), such Proceeding, including but not limited to
attorneys' fees, judgments, fines, penalties, ERISA excise taxes, amounts paid
in settlement, any federal, state, local or foreign taxes imposed on Indemnitee
as a result of the actual or deemed receipt of any payments pursuant to this
Agreement, and other expenses (collectively, "Damages"), including all interest,
assessments or charges paid or payable in connection with or in respect of such
Damages.

          e. DEFINITION OF PROCEEDING. For purposes of this Agreement,
"Proceeding" shall mean any actual, pending, threatened or completed action,
suit, claim, investigation, hearing or proceeding (whether civil, criminal,
administrative or investigative, and whether formal or informal) in which
Indemnitee is, has been or becomes involved, or regarding which Indemnitee is
threatened to be made a named defendant or respondent, based in whole or in part
on or arising out of the fact that Indemnitee is or was a director, officer,
member of a board committee, employee or agent of the Company and/or any of its
subsidiaries or that, being or

                                        2

<PAGE>

having been such a director, officer, member of a board committee, employee or
agent, Indemnitee is or was serving at the request of the Company as a director,
officer, partner, employee, trustee or agent of another corporation or of a
foreign or domestic corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise related to the Company (each, a "Related
Company"), whether the basis of such action, suit, claim, investigation, hearing
or proceeding is alleged action or omission by Indemnitee in an official
capacity as a director, officer, committee member, partner, employee, trustee or
agent or in any other capacity while serving as a director, officer, committee
member, partner, employee, trustee or agent. "Proceeding" shall not, however,
include any action, suit, claim, investigation, hearing or proceeding instituted
by or at the direction of Indemnitee unless pursuant to an Enforcement Action
(as defined in Section 3(a)) or its institution has been authorized by the
Company's Board of Directors (the "Board").

          f. NOTIFICATIONS.

               i. Promptly after receipt by Indemnitee of notice of the
commencement (including a threatened assertion or commencement) of any
Proceeding, Indemnitee will, if it is reasonably foreseeable that a claim in
respect thereof will be made against the Company under this Agreement, notify
the Chair of the Board's [AUDIT AND COMPLIANCE COMMITTEE OR THE NOMINATING AND
CORPORATE GOVERNANCE COMMITTEE] of the commencement thereof (which notice shall
be in the form of Exhibit A hereto) (the "Indemnification Notice"). A failure to
notify the Company in accordance with this subsection (f)(i) will not, however,
relieve the Company from any liability to Indemnitee under this Agreement unless
(and then only to the extent that) such failure is Finally Adjudged to have
materially prejudiced the Company's ability to defend the Proceeding.

               ii. At the same time, or from time to time thereafter, Indemnitee
may further notify the Chair of the Board's [AUDIT AND COMPLIANCE COMMITTEE OR
THE NOMINATING AND CORPORATE GOVERNANCE COMMITTEE], by delivery of a
supplemental Indemnification Notice (or by checking the second box and providing
the corresponding information on the initial Indemnification Notice), of any
Proceeding for which indemnification is being sought under this Agreement.

          g. DETERMINATION OF ENTITLEMENT.

               i. To the extent Indemnitee has been wholly successful, on the
merits or otherwise, in the defense of any Proceeding, the Company shall
indemnify Indemnitee against all expenses (including attorneys' fees) incurred
by Indemnitee in connection with the Proceeding, within ten (10) days after
receipt of an Indemnification Notice delivered pursuant to subsection (g)(ii).

               ii. In the event that subsection (g)(i) above is inapplicable, or
does not apply to the entire Proceeding, the Company shall indemnify Indemnitee
within thirty (30) days after receipt of an Indemnification Notice delivered
pursuant to subsection (f)(ii) unless during such thirty (30) day period the
[AUDIT AND COMPLIANCE COMMITTEE OR THE NOMINATING AND CORPORATE GOVERNANCE
COMMITTEE] of the Board delivers to Indemnitee a written notice contesting
Indemnitee's indemnification claim (the "Contest Notice"), which Contest Notice

                                        3

<PAGE>

shall state with particularity the reasons for the decision to challenge
Indemnitee's indemnification claim and the evidence the Company would present in
any forum in which Indemnitee might seek review of such decision. The Company's
failure to deliver a Contest Notice within thirty (30) days after the Company's
receipt of an Indemnification Notice pursuant to subsection (f)(ii) shall
obligate the Company unconditionally to indemnify Indemnitee to the extent
requested in the Indemnification Notice.

               iii. At any time following receipt of a Contest Notice,
Indemnitee shall be entitled to select a forum for the review of, and in which
the Company will defend, the Contest Notice and the Company's decision to
challenge Indemnitee's indemnification claim. Such selection shall be made from
among the following alternatives, by delivering a written notice to the Chair of
the Board's [AUDIT AND COMPLIANCE COMMITTEE OR THE NOMINATING AND CORPORATE
GOVERNANCE COMMITTEE] indicating Indemnitee's selection of forum:

                    (a) A majority vote of the directors who are not parties to
the Proceeding for which indemnification is being sought ("Independent
Directors"), even though less than a quorum;

                    (b) A committee of Independent Directors designated by a
vote of Independent Directors, even though less than a quorum;

                    (c) Special Legal Counsel (as defined in subsection (g)(vii)
below);

                    (d) The stockholders of the Company; or

                    (e) A panel of three independent arbitrators, one of whom is
selected by the Company, another of whom is selected by Indemnitee and the last
of whom is selected by the first two arbitrators so selected,

provided, that nothing in this Section 1(g) shall prevent Indemnitee at any time
from bringing suit against the Company to recover the amount of the
indemnification claim (whether or not Indemnitee has otherwise exhausted its
contractual remedies hereunder). In addition, any determination by a forum
selected by Indemnitee that Indemnitee is not entitled to indemnification, or
any failure to make the payments requested in the Indemnification Notice, shall
be subject to judicial review by any court of competent jurisdiction, as
described in Section 3.

               iv. In any forum in which the Company defends its Contest Notice
and its decision to challenge Indemnitee's indemnification claim under this
Section 1(g), the presumptions, burdens and standard of review set forth in
Section 3(c) shall apply and are incorporated into this Section 1(g) by
reference, except as otherwise expressly provided in Section 3(c).

               v. As soon as practicable, and in no event later than fifteen
(15) days after the forum has been selected pursuant to subsection (g)(iii)
above, the Company shall, at its own expense, submit the defense of its Contest
Notice and the question of Indemnitee's right to indemnification to the selected
forum.

                                        4

<PAGE>

               vi. The forum selected shall render its decision concerning the
validity of the Contest Notice and the Company's decision to deny Indemnitee's
indemnification claim within thirty (30) days after the forum has been selected
in accordance with subsection (g)(iii).

               vii. For the purposes of this Agreement, "Special Legal Counsel"
shall mean an attorney or firm of attorneys, selected by Indemnitee and approved
by the Company (which approval shall not be unreasonably withheld), who must not
have performed other services for the Company or Indemnitee within the last
three years.

     2. EXPENSE ADVANCES

          a. GENERALLY. The right to indemnification conferred by Section 1
shall include the right to have the Company pay Indemnitee's attorneys' fees and
other expenses, including but not limited to out of pocket costs and
disbursements, incurred in connection with any Proceeding, or in connection with
bringing, defending and/or pursuing an Enforcement Action (as defined in Section
3(a)), as such expenses are incurred and in advance of the final disposition of
such Proceeding or Enforcement Action (such entitlement is referred to
hereinafter as an "Expense Advance").

          b. UNDERTAKING. The Company's obligation to provide an Expense Advance
is subject only to the following condition: if the Proceeding arose in
connection with Indemnitee's service as a director and/or officer of the Company
or member of a committee of the Board (and not in any other capacity in which
Indemnitee rendered service, including but not limited to service to any Related
Company), then Indemnitee or his or her representative must have executed and
delivered to the Chair of the Board's [AUDIT AND COMPLIANCE COMMITTEE OR THE
NOMINATING AND CORPORATE GOVERNANCE COMMITTEE] an undertaking (in the form of
Exhibit B hereto) (the "Statement of Undertaking") to repay all Expense Advances
if and to the extent that it may be Finally Adjudged that Indemnitee is not
entitled to be indemnified for such Expense Advance under one or more of clauses
(i) through (iv) of the first sentence of Section 1(a). The Statement of
Undertaking need not be secured and shall be accepted by the Company without
reference to Indemnitee's financial ability to make repayment. No interest shall
be charged on any obligation to reimburse the Company for any Expense Advance.

          c. SERVICE AS WITNESS. Notwithstanding any other provision of this
Agreement, the Company's obligation to indemnify, or provide Expense Advances
under Section 2, to Indemnitee in connection with Indemnitee's appearance as a
witness in a Proceeding at a time when Indemnitee has not been made a named
defendant or respondent to the Proceeding shall be absolute and unconditional,
and not subject to any of the limitations on, or conditions to, Indemnitee's
right to indemnification or to receive an Expense Advance otherwise contained in
this Agreement.

     3. PROCEDURES FOR ENFORCEMENT

          a. ENFORCEMENT. If a claim for indemnification made by Indemnitee
hereunder is not paid in full (whether or not the provisions of Section 1(g)
have been complied with, or completed), or a claim for an Expense Advance made
by Indemnitee hereunder is not paid in full within twenty (20) days from
delivery of a Statement of Undertaking to the Chair of

                                        5

<PAGE>

the Board's [AUDIT AND COMPLIANCE COMMITTEE OR THE NOMINATING AND CORPORATE
GOVERNANCE COMMITTEE], Indemnitee may, but need not, at any time thereafter
bring suit against the Company to recover the unpaid amount of the claim (an
"Enforcement Action").

          b. REQUIRED INDEMNIFICATION. The court hearing the Enforcement Action
shall order the Company to provide indemnification or to advance expenses to
Indemnitee to the full extent sought in the Enforcement Action if it determines
that (i) the Enforcement Action is brought by Indemnitee to enforce the
Company's obligation under Section 1(g)(ii) unconditionally to indemnify
Indemnitee to the extent requested in the Indemnification Notice where the
Company has failed timely to deliver a Contest Notice, or (ii) the Company
failed to prove by clear and convincing evidence that Indemnitee is not entitled
to indemnification based on one or more of clauses (i) through (v) of the first
sentence of Section 1(a).

          c. PRESUMPTIONS, BURDENS AND STANDARD OF REVIEW IN ENFORCEMENT ACTION
OR COMPANY DETERMINATION. In any Enforcement Action (and, except as otherwise
expressly provided in this Section 3(c), in any review of a Contest Notice by a
forum described in Section 1(g)) the following presumptions (and limitations on
presumptions), burdens and standard of review shall apply:

               i. The Company shall conclusively be presumed to have entered
into this Agreement and assumed the obligations imposed hereunder in order to
induce Indemnitee to serve or to continue to serve as an director and/or officer
of the Company and/or one or more of its subsidiaries;

               ii. This Agreement shall conclusively be presumed to be valid and
binding on the parties hereto;

               iii. Submission of an Indemnification Notice in accordance with
Section 1(f)(ii) or a Statement of Undertaking to the Company shall create a
presumption that Indemnitee is entitled to indemnification or an Expense Advance
hereunder, and thereafter the Company shall have the burden of proving by clear
and convincing evidence (sufficient to rebut the foregoing presumption) that
Indemnitee is not entitled to indemnification based on one or more of clauses
(i) through (v) of the first sentence of Section 1(a);

               iv. Indemnitee may establish a conclusive presumption of any
objective fact related to an event or occurrence by delivering to the Company a
declaration made under penalty of perjury that such fact is true, provided, that
no such presumption may be established with respect to the ultimate conclusions
set forth in any of clauses (i) through (v) of the first sentence of Section
1(a);

               v. If Indemnitee is or was serving as a director, officer,
employee, trustee or agent of a corporation of which a majority of the shares
entitled to vote in the election of its directors is held by the Company or in
an executive or management capacity in a partnership, joint venture, trust or
other enterprise of which the Company or a wholly-owned subsidiary of the
Company is a general partner or has a majority ownership, then such corporation,
partnership, joint venture, trust or enterprise shall conclusively be deemed a
Related

                                        6

<PAGE>

Company and Indemnitee shall conclusively be deemed to be serving such Related
Company at the request of the Company;

               vi. Neither (i) the failure of the Company (including but not
limited to the Board, the Company's officers, independent counsel, Special Legal
Counsel, any arbitrator or the Company's stockholders) to make a determination
prior to the commencement of the Enforcement Action whether indemnification, or
payment of an Expense Advance, of Indemnitee is proper in the circumstances nor
(ii) an actual determination by the Company, the Board, the Company's officers,
independent counsel, Special Legal Counsel, any arbitrator or the Company's
stockholders that Indemnitee is not entitled to indemnification or payment of an
Expense Advance shall be a defense to the Enforcement Action, create a
presumption that Indemnitee is not entitled to indemnification hereunder or be
considered by a court in an Enforcement Action, which shall conduct a de novo
review of the relevant issues; and

               vii. If the court hearing the Enforcement Action is unable to
make either of the determinations specified in Sections 3(b)(i) or 3(b)(ii), the
court hearing the Enforcement Action shall nonetheless order the Company to
provide indemnification or to advance expenses to Indemnitee to the full extent
sought in the Enforcement Action if it determines that Indemnitee is fairly and
reasonably entitled to such indemnification or Expense Advance in view of all of
the relevant circumstances, and without regard to the limitations set forth in
clauses (i) through (iv) of the first sentence of Section 1(a). In determining
whether Indemnitee is fairly and reasonably entitled to such indemnification or
expense advance, the court shall weigh (i) the relative benefits received by the
Company and/or any of its subsidiaries or any Related Company, or any of their
affiliates other than Indemnitee, on the one hand, and Indemnitee on the other
from the transaction from which such Proceeding arose or to which such
Proceeding relates, and (ii) the relative fault of the Company and/or any of its
subsidiaries or any Related Company, or any of their affiliates other than
Indemnitee, on the one hand, and of Indemnitee on the other in connection with
the transaction that resulted in such Damages, as well as any other relevant
equitable considerations. The relative fault of the Company and/or any of its
subsidiaries or any Related Company, or any of their affiliates other than
Indemnitee, on the one hand, and of Indemnitee on the other shall be determined
by reference to, among other things, the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent the circumstances
resulting in such Damages. If either (i) the relative benefits received by the
Company and/or any of its subsidiaries or any Related Company, or any of their
affiliates other than Indemnitee, exceed the relative benefits received by
Indemnitee, or (ii) the relative fault of the Company and/or any of its
subsidiaries or any Related Company, or any of their affiliates other than
Indemnitee, exceeds the relative fault of Indemnitee, then Indemnitee shall be
entitled to the full amount of indemnification and/or Expense Advance sought in
the Enforcement Proceeding.

          d. ATTORNEYS' FEES AND EXPENSES FOR ENFORCEMENT ACTION. In any
Enforcement Action, the Company shall hold harmless and indemnify Indemnitee
against all of Indemnitee's attorneys' fees and expenses in bringing, defending
and/or pursuing the Enforcement Action (including but not limited to attorneys'
fees at any stage, and on appeal); provided, however, that the Company shall not
be required to provide such indemnification for such fees and expenses if it is
Finally Adjudged that Indemnitee knew prior to commencement of

                                        7

<PAGE>

the Enforcement Action that Indemnitee was not entitled to indemnification based
on any of clauses (i) through (v) of the first sentence of Section 1(a).

     4. DEFENSE OF CLAIM

     With respect to any Proceeding as to which Indemnitee has provided notice
to the Company pursuant to Section 1(f)(i):

          a. The Company may participate therein at its own expense.

          b. The Company (jointly with any other indemnifying party similarly
notified, if any) may assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee. After notice from the Company to Indemnitee of its
election to so assume the defense thereof, the Company shall not be liable to
Indemnitee under this Agreement for any legal fees or other expenses (other than
reasonable costs of investigation) subsequently incurred by Indemnitee in
connection with the defense thereof unless (i) the employment of counsel by
Indemnitee or the incurring of such expenses has been authorized by the Company,
(ii) Indemnitee shall have concluded that there is a reasonable possibility that
a conflict of interest could arise between the Company and Indemnitee in the
conduct of the defense of such Proceeding, which conflict of interest shall be
conclusively presumed to exist upon Indemnitee's delivery to the Company of a
written certification of such conclusion, or (iii) the Company shall not in fact
have employed counsel to assume the defense of such Proceeding, in each of which
cases the legal fees and other expenses of Indemnitee shall be at the expense of
the Company. The Company shall not be entitled to assume the defense of a
Proceeding brought by or on behalf of the Company or as to which Indemnitee
shall have reached the conclusion described in clause (ii) above.

          c. The Company shall not be liable for any amounts paid in settlement
of any Proceeding effected without its written consent.

          d. The Company shall not settle any Proceeding in any manner that
would impose any penalty or limitation on Indemnitee without Indemnitee's
written consent.

          e. Neither the Company nor Indemnitee will unreasonably withhold its
or his or her consent to any proposed settlement of any Proceeding.

     5. MAINTENANCE OF D&O INSURANCE

          a. Subject to Section 5(c) below, during the period (the "Coverage
Period") beginning on the date of this Agreement and ending at the later of (i)
six (6) years following the time Indemnitee is no longer serving as either a
director or officer of the Company and/or one or more subsidiaries or any
Related Company, or (ii) at the end of such longer period during which
Indemnitee believes that a reasonable possibility of exposure to a Proceeding or
Damages persists (which extended period must be consented to by the Company,
such consent not to be unreasonably withheld), the Company shall maintain a
directors' and officers' liability insurance policy in full force and effect or
shall have purchased or otherwise provided for a run-off or tail policy or
endorsement to such existing policy ("D&O Insurance"), providing in all respects
coverage at least comparable to and in similar amounts, and with similar
exclusions, as that

                                        8

<PAGE>

obtained by other similarly situated companies as determined in good faith by
any of the parties referenced in Section 1(g)(iii)(a) through (e).

          b. Under all policies of D&O Insurance, Indemnitee shall during the
Coverage Period be named as an insured in such a manner as to provide Indemnitee
the same rights and benefits, subject to the same limitations, as are accorded
to the Company's directors or officers most favorably insured by such policy,
and each insurer under a policy of D&O Insurance shall be required to provide
Indemnitee written notice at least thirty (30) days prior to the effective date
of termination of the policy.

          c. The Company shall have no obligation to obtain or maintain D&O
Insurance to the extent that such insurance is not reasonably available, the
premium costs for such insurance are disproportionate to the amount of coverage
provided, or the coverage provided by such insurance is so limited by exclusions
as to provide an insufficient benefit, such determination to be made by any of
the parties referenced in Section 1(g)(iii)(a) through (e).

          d. It is the intention of the parties in entering into this Agreement
that the insurers under the D&O Insurance, if any, shall be obligated ultimately
to pay any claims by Indemnitee which are covered by D&O Insurance, and nothing
herein shall be deemed to diminish or otherwise restrict the Company's or
Indemnitee's right to proceed or collect against any insurers under D&O
Insurance or to give such insurers any rights against the Company or Indemnitee
under or with respect to this Agreement, including but not limited to any right
to be subrogated to the Company's or Indemnitee's rights hereunder, unless
otherwise expressly agreed to by the Company and Indemnitee in writing. The
obligation of such insurers to the Company and Indemnitee shall not be deemed
reduced or impaired in any respect by virtue of the provisions of this
Agreement.

          e. No indemnification pursuant to this Agreement shall be provided by
the Company for Damages or Expense Advances that have been paid directly to
Indemnitee by an insurance carrier under a policy of D&O Insurance or other
insurance maintained by the Company.

          f. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of Indemnitee to
recover the same amounts from any insurer or other third person (other than
another person with indemnification rights against the Company substantially
similar those of Indemnitee under this Agreement). Indemnitee shall execute all
documents required and take all acts necessary to secure such rights and enable
the Company effectively to bring suit to enforce such rights.

     6. PARTIAL INDEMNIFICATION; MUTUAL ACKNOWLEDGMENT; CONTRIBUTION

          a. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of any Damages in connection with a Proceeding, but not for the total
amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion of such Damages to which Indemnitee is entitled.

                                        9

<PAGE>

          b. MUTUAL ACKNOWLEDGMENT. The Company and Indemnitee acknowledge that,
in certain instances, federal law or public policy may override applicable state
law and prohibit the Company from indemnifying Indemnitee under this Agreement
or otherwise. For example, the Company and Indemnitee acknowledge that the
Securities and Exchange Commission (the "SEC") has taken the position that
indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain
ERISA violations. Furthermore, Indemnitee understands that the Company has
undertaken or may be required in the future to undertake with the SEC to submit
for judicial determination the issue of the Company's power to indemnify
Indemnitee in certain circumstances; all of the Company's obligations under this
Agreement will be subject to the requirements of any such undertaking required
by the SEC to be made by the Company.

          c. CONTRIBUTION. If the indemnification provided under Sections 1, 2
and 6 is unavailable by reason of any of the circumstances specified in one or
more of clauses (i) through (iv) of the first sentence of Section 1(a) then, in
respect of any Proceeding in which the Company is jointly liable with Indemnitee
(or would be if joined in such Proceeding), the Company shall contribute to the
amount of Damages (including attorneys' fees) actually and reasonably incurred
and paid or payable by Indemnitee in such proportion as is appropriate to
reflect (i) the relative benefits received by the Company and/or any of its
subsidiaries or any Related Company, or any of their affiliates other than
Indemnitee, on the one hand, and Indemnitee on the other from the transaction or
events from which such Proceeding arose or to which such Proceeding relates, and
(ii) the relative fault of the Company and/or any of its subsidiaries or any
Related Company, or any of their affiliates other than Indemnitee, on the one
hand, and of Indemnitee on the other in connection with the transaction or
events that resulted in such Damages, as well as any other relevant equitable
considerations. The relative fault of the Company and/or any of its subsidiaries
or any Related Company, or any of their affiliates other than Indemnitee, on the
one hand, and of Indemnitee on the other shall be determined by reference to,
among other things, the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent the circumstances resulting in
such Damages. The Company agrees that it would not be just and equitable if
contribution pursuant to this Section 6(c) were determined by pro rata
allocation or any other method of allocation that does not take account of the
foregoing equitable considerations.

     7. [RELEASE OF CLAIMS RELATING TO OFFICER'S FAILURE TO DISCHARGE DUTIES. If
Indemnitee is an officer of the Company and/or one or more of its subsidiaries,
the indemnification and other rights and benefits provided to Indemnitee by this
Agreement shall apply fully with respect to any Proceeding in which it is
claimed or adjudicated that Indemnitee is liable to the Company and/or one or
more of its subsidiaries by reason of having failed to discharge the duties of
Indemnitee's office, and the Company hereby irrevocably releases all such claims
and liabilities, agrees to cause its subsidiaries to release all such claims,
and agrees to hold Indemnitee harmless with respect to any such claims;
provided, however, that the foregoing indemnification, release and hold harmless
obligations of the Company shall have no application with respect to claims by
and liabilities to the Company based upon actions or omissions described in one
or more of clauses (i) through (v) of the first sentence of Section 1(a).]

     8. MISCELLANEOUS

                                       10

<PAGE>

          a. This Agreement shall be interpreted and enforced in accordance with
the laws of the State of Delaware.

          b. This Agreement shall be binding upon Indemnitee and upon the
Company, its successors and assigns, and shall inure to the benefit of
Indemnitee, Indemnitee's heirs, personal representatives and assigns and to the
benefit of the Company, its successors and assigns. The Company shall require
any successor to the Company (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

          c. Indemnitee's rights to indemnification and advancement of expenses
under this Agreement shall not be deemed exclusive of any other or additional
rights to which Indemnitee may be entitled under the Articles or Bylaws, any
vote of stockholders or disinterested directors, the Statute or otherwise,
whether as to actions or omissions in Indemnitee's official capacity or
otherwise.

          d. Nothing in this Agreement shall confer upon Indemnitee the right to
continue to serve as a director and\or officer of the Company or any of its
subsidiaries or any Related Company. If Indemnitee is an officer of the Company,
then, unless otherwise expressly provided in a written employment agreement
between the Company and Indemnitee, the employment of Indemnitee with the
Company shall be terminable at will by either party. The indemnification and
release provided under this Agreement shall apply to any and all Proceedings,
notwithstanding that Indemnitee has ceased to be a director, officer, partner,
employee, trustee or agent of the Company, any of its subsidiaries or a Related
Company, and shall inure to the benefit of the heirs, executors and
administrators of Indemnitee.

          e. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, then: (i) the
validity, legality and enforceability of the remaining provisions of this
Agreement (including, without limitation, all portions of any paragraphs of this
Agreement containing any such invalid, illegal or unenforceable provision that
are not themselves invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby; and (ii) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, all portions of any
paragraphs of this Agreement containing any such invalid, illegal or
unenforceable provision, that are not themselves invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

          f. Any notices or communications to be given or required to be given
under this Agreement shall be given by personal delivery or registered airmail,
overnight courier, telex, facsimile or electronic mail at the following address
(or such other address as the relevant party provides the other party in writing
and referencing this Section 8(f)):

                    COMPANY:

                    ImaRx Therapeutics, Inc.

                                       11

<PAGE>

                    1635 East 18th St.
                    Tucson, AZ 85719
                    (Fax) 1-520-[_____]
                    (Tel) 1-520-770-1259
                    Attn: ___________________________________
                    electronic mail: ________________________

                    INDEMNITEE:

                    _______________________________
                    _______________________________
                    _______________________________

                    (Fax) _______________
                    (Tel) _______________
                    electronic mail: ________________________

Notices and communications shall be deemed received by the addressee on the date
of delivery if delivered in person, on the third (3rd) day after mailing if
delivered by registered airmail, on the next business day after mailing if sent
by overnight courier, on the next business day if sent by telex or facsimile, or
upon confirmation of delivery when directed to the electronic mail address
described above if sent by electronic mail.

          g. No amendment, modification, termination or cancellation of this
Agreement shall be effective unless in writing signed by both parties hereto.

          h. If Indemnitee has previously executed an indemnification agreement
with the Company, this Agreement supersedes such prior indemnification agreement
in its entirety.

          i. This Agreement may be executed in two counterparts, each of which
shall be deemed an original, but both of which together shall constitute one and
the same instrument.

     IN WITNESS WHEREOF, the parties have executed and delivered this Agreement
effective as of the day and year first set forth above.

     "Company"                          IMARX THERAPEUTICS, INC.

                                        By
                                           -------------------------------------

                                           -------------------------------------
                                        Its:
                                             -----------------------------------

                                       12

<PAGE>

     "Indemnitee"                       ----------------------------------------

                                        ----------------------------------------
                                        [Type name]

                                       13

<PAGE>

                                    EXHIBIT A

                             INDEMNIFICATION NOTICE

     CHECK THE APPROPRIATE SPACE BELOW, AND PROVIDE A BRIEF DESCRIPTION OF THE
PROCEEDING AS REQUESTED BELOW:

     ____ Notice is hereby given by the undersigned, _________________________,
          pursuant to Section 1(f)(i) of the Indemnification Agreement (the
          "Agreement") dated ___________________________ between ImaRx
          Therapeutics, Inc., a Delaware corporation (the "Company"), and the
          undersigned, of the commencement of a Proceeding, as defined in the
          Agreement. A brief description of the Proceeding is as follows:

     ____ If indemnification of particular Damages (as defined in the Agreement)
          is being sought at this time, pursuant to Section 1(f)(ii) of the
          Agreement, the undersigned hereby requests indemnification by the
          Company under the terms of the Agreement with respect to the following
          Damages incurred in connection with the Proceeding:

Dated:                 ,       .
       ----------------  ------

                                        ----------------------------------------
                                        [Signature of Indemnitee]

                                        ----------------------------------------
                                        [Type name]

<PAGE>

                                    EXHIBIT B

                            STATEMENT OF UNDERTAKING

STATE OF ______________________________)
                                       ) ss.
COUNTY OF _____________________________)

     I, _____________________, being first duly sworn, do depose and say as
follows:

     1. This Statement is submitted pursuant to the Indemnification Agreement
(the "Agreement") dated ___________________________ between ImaRx Therapeutics,
Inc., a Delaware corporation (the "Company"), and me.

     2. I am requesting an Expense Advance, as defined in the Agreement.

     3. I hereby undertake to repay the Expense Advance if and to the extent it
is Finally Adjudged (as defined in the Agreement) that I am not entitled under
the Agreement to be indemnified by the Company.

     4. The expenses for which advancement is requested, and a brief description
of the underlying Proceeding (as defined in the Agreement), are as follows:

               [ADD BRIEF DESCRIPTION OF EXPENSES AND PROCEEDING]

DATED:                 ,       .
       ----------------  ------

                                        ----------------------------------------

SUBSCRIBED AND SWORN TO before me this ____ day of ________________,

(Seal or stamp)                         ----------------------------------------
                                        Notary Signature

                                        ----------------------------------------
                                        Print/Type Name
                                        Notary Public in and for the State of
                                        [___], residing at _____________________
                                        My appointment expires _________________

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