Document:

exv4w2

 

Exhibit 4.2

 

 

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

COPANO ENERGY, L.L.C.

AND

THE PURCHASERS

 

 

Registration Rights Agreement, Page 1

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
October 19, 2007, by and among Copano Energy, L.L.C., a Delaware limited liability company
(“Copano”), and the Purchasers listed in Annex A to this Agreement, a
“Purchaser” and collectively, the “Purchasers”).

     WHEREAS, this Agreement is made in connection with the Closing of the issuance and sale of the
Purchased Units pursuant to the Class E Unit and Common Unit Purchase Agreement, dated as of August
31, 2007, by and among Copano and the Purchasers (the “Purchase Agreement”);

     WHEREAS, Copano has agreed to provide the registration and other rights set forth in this
Agreement for the benefit of the Purchasers pursuant to the Purchase Agreement; and

     WHEREAS, it is a condition to the obligations of each Purchaser and Copano under the Purchase
Agreement that this Agreement be executed and delivered.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by
each party hereto, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used herein without definition shall have
the meanings ascribed to them in the Purchase Agreement. The terms set forth below are used herein
as so defined:

     “Delay Liquidated Damages” has the meaning specified in Section 2.01(d) of
this Agreement.

     “Effectiveness Period” has the meaning specified in Section 2.01(a) of this
Agreement.

     “Holder” means the record holder of any Registrable Securities.

     “Included Registrable Securities” has the meaning specified in Section 2.02(a)
of this Agreement.

     “Liquidated Damages” has the meaning specified in Section 2.01(b) of this
Agreement.

     “Liquidated Damages Multiplier” means the product of the $34.66 times the number of
Purchased Common Units purchased by such Purchaser plus the product of the $31.77 times the number
of Purchased Class E Units purchased by such Purchaser.

     “Losses” has the meaning specified in Section 2.08(a) of this Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the
book-running lead manager of such Underwritten Offering.

     “Opt-Out Notice” has the meaning specified in Section 2.02(a) of this
Agreement.

     “Purchase Agreement” has the meaning specified in the Recitals of this Agreement.

Registration Rights Agreement, Page 2

 

     “Purchaser” and “Purchasers” have the meanings specified in the introductory
paragraph of this Agreement.

     “Registrable Securities” means: (i) the Purchased Units, (ii) the Common Units
underlying the Purchased Class E Units and (iii) any Common Units or Class E Units issued as
Liquidated Damages pursuant to Section 2.01(e) of this Agreement, all of which Registrable
Securities are subject to the rights provided herein until such rights terminate pursuant to the
provisions hereof.

     “Registration Expenses” has the meaning specified in Section 2.07(a) of this
Agreement.

     “Selling Expenses” has the meaning specified in Section 2.07(a) of this
Agreement.

     “Selling Holder” means a Holder who is offering Registrable Securities for sale
pursuant to a registration statement.

     “Shelf Registration Statement” means a registration statement under the Securities Act
to permit the resale of the Registrable Securities from time to time, including as permitted by
Rule 415 of the Securities Act (or any similar provision then in force under the Securities Act) or
otherwise.

     “Underwritten Offering” means an offering (including an offering pursuant to a Shelf
Registration Statement) in which Common Units are sold to an underwriter on a firm commitment basis
for reoffering to the public or an offering that is a “bought deal” with one or more investment
banks.

     “Underwritten Offering Request” has the meaning specified in Section 2.03(a)
of this Agreement.

     Section 1.02 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security when (a) a registration statement covering such Registrable Security has been
declared effective by the Commission and such Registrable Security has been sold or disposed of
pursuant to such registration statement; (b) such Registrable Security has been disposed of
pursuant to any section of Rule 144 of the Securities Act (or any similar provision then in force
under the Securities Act); (c) such Registrable Security can be disposed of pursuant to Rule 144(k)
(or any similar provision then in force under the Securities Act); (d) such Registrable Security is
held by Copano or one of its subsidiaries; or (d) such Registrable Security has been sold in a
private transaction in which the transferor’s rights under this Agreement are not assigned to the
transferee of such securities.

ARTICLE II

REGISTRATION RIGHTS

     Section 2.01 Shelf Registration.

     (a) Deadline to Go Effective. As soon as practicable following the Closing, Copano
shall prepare and file a Shelf Registration Statement within 60 days of the Closing Date under the
Securities Act with respect to all of the Registrable Securities (which should be effective
automatically if Copano continues to meet the Commission’s definition of a “Well Known Seasoned
Issuer”). If Copano does not meet the Commission’s definition of Well-Known Seasoned Issuer,
Copano shall use its commercially reasonable efforts to cause the Shelf Registration Statement to
become effective no later than 120 days after the date of the Closing Date. A Shelf Registration
Statement filed pursuant to this Section 2.01 shall be on an appropriate registration form
under the Securities Act selected by Copano; provided, however, that if a prospectus supplement
will be used in connection with the marketing of an Underwritten Offering from the Shelf
Registration Statement and the Managing Underwriter at any time shall notify Copano in writing
that, in the sole judgment of such Managing Underwriter, inclusion of detailed information to be

Registration Rights Agreement, Page 3

 

used in such prospectus supplement is of material importance to the success of the
Underwritten Offering of such Registrable Securities, Copano shall use its commercially reasonable
efforts to include such information in the prospectus. Copano will use its commercially reasonable
efforts to cause the Shelf Registration Statement filed pursuant to this Section 2.01 to be
continuously effective under the Securities Act until the earlier of (i) the date as of which all
such Registrable Securities have been sold by the Purchaser or (ii) the date on which all
Registrable Securities covered by the Shelf Registration Statement have ceased to be Registrable
Securities hereunder in accordance with Section 1.02 above (the “Effectiveness
Period”). The Shelf Registration Statement when declared effective (including the documents
incorporated therein by reference) shall comply as to form in all material respects with all
applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

     (b) Failure To Go Effective. If the Shelf Registration Statement required by this
Section 2.01 is not declared effective within 150 days after the Closing Date, then each
Purchaser shall be entitled to a payment (with respect to each of such Purchaser’s Purchased
Units), as liquidated damages and not as a penalty, of 0.25% of the Liquidated Damages Multiplier
per 30-day period for the first 60 days following the 150th day, increasing by an additional 0.25%
of the Liquidated Damages Multiplier per 30-day period for each subsequent 60 days, up to a maximum
of 1.00% of the Liquidated Damages Multiplier per 30-day period (the “Liquidated Damages”).

     (c) Delay Rights. Notwithstanding anything to the contrary contained herein, Copano
may, upon written notice to any Selling Holder whose Registrable Securities are included in the
Shelf Registration Statement, suspend such Selling Holder’s use of any prospectus that is a part of
the Shelf Registration Statement (in which event the Selling Holder shall discontinue sales of the
Registrable Securities pursuant to the Shelf Registration Statement) if (i) Copano is pursuing an
acquisition, merger, reorganization, disposition or other similar transaction and Copano determines
in good faith that Copano’s ability to pursue or consummate such a transaction would be materially
adversely affected by any required disclosure of such transaction in the Shelf Registration
Statement or (ii) Copano has experienced some other material non-public event the disclosure of
which at such time, in the good faith judgment of Copano, would materially adversely affect Copano;
provided, however, in no event shall the Purchasers be suspended for a period exceeding an
aggregate of ninety (90) days (exclusive of days covered by any lock-up agreement executed by a
Purchaser in connection with any Underwritten Offering by Copano or a Purchaser) in any 365-day
period. Upon disclosure of such information or the termination of the condition described above,
Copano shall provide prompt notice to the Selling Holders whose Registrable Securities are included
in the Shelf Registration Statement, and shall promptly terminate any suspension of sales it has
put into effect and shall take such other actions to permit registered sales of Registrable
Securities as contemplated in this Agreement.

     (d) Additional Rights to Liquidated Damages. If (i) the Holders shall be prohibited
from selling their Registrable Securities under the Registration Statement as a result of a
suspension pursuant to Section 2.01(c) of this Agreement in excess of the periods permitted
therein or (ii) the Registration Statement is filed and effective but, during the Effectiveness
Period, shall thereafter cease to be effective or fail to be usable for its intended purpose
without being succeeded within sixty (60) Business Days by a post-effective amendment to the
Registration Statement, a supplement to the prospectus or a report filed with the Commission
pursuant to Section 13(a), 13(c), 14 or l5(d) of the Exchange Act, then, until the suspension is
lifted or such amendment, supplement or report is filed and effective, but not including any day on
which a suspension is lifted, if applicable, Copano shall owe the Holders an amount equal to (with
respect to each of such Purchaser’s Purchased Units), as liquidated damages and not as a penalty,
of 0.125% of the Liquidated Damages Multiplier per 30-day period for the first sixty (60) days
following (x) the date on which the suspension period exceeded the permitted period

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under Section 2.01(c) of this Agreement or (y) the 61st Business Day after
the Registration Statement ceased to be effective or failed to be useable for its intended
purposes, increasing by an additional 0.125% of the Liquidated Damages Multiplier per 30-day period
for each subsequent sixty (60) days, up to a maximum of 0.50% of the Liquidated Damages Multiplier
per 30-day period (the “Delay Liquidated Damages”), as liquidated damages and not as a
penalty. For purposes of this Section 2.01(d), a suspension shall be deemed lifted on the
date that notice that the suspension has been lifted or that a post-effective amendment is
effective is delivered to the Holders pursuant to Section 3.01 of this Agreement.

     (e) General. The Liquidated Damages and the Delay Liquidated Damages shall be paid to
each Holder in cash within ten (10) Business Days of the end of each such 30-day period. Any
payments made pursuant to this Section 2.01(e) shall constitute the Holders’ exclusive
remedy for such events. The Liquidated Damages and the Delay Liquidated Damages imposed hereunder
shall be made to the Holders in immediately available funds. In no event will the aggregate amount
of Liquidated Damages and the Delay Liquidated Damages paid to the Holders exceed 10% of the
aggregate of the Commitment Amounts. If Copano certifies that it is unable to pay the Liquidated
Damages Amount and the Delay Liquidated Damages Amount in cash because such payment would result in
a breach under any of Copano’s or Copano’s Subsidiaries’ credit facilities filed as exhibits to the
Copano SEC Documents, then Copano may pay the Liquidated Damages Amount and the Delay Liquidated
Damages Amount in kind in the form of the issuance of additional (A) Common Units or (B) Common
Units and Class E Units (in the same proportion to each Purchaser). Class E Units may only be
issued as liquidated damages if and to the extent required by The Nasdaq Stock Market LLC or
similar regulation. If Common Units and Class E Units are issued as liquidated damages as a result
of a requirement by The Nasdaq Stock Market LLC or similar regulation, then such units will be
issued to each Purchaser in such a manner as to maximize the number of Common Units issued to each
Purchaser. Upon any issuance of Common Units as liquidated damages, Copano shall promptly prepare
and file an amendment to the Shelf Registration Statement prior to its effectiveness adding such
Common Units and/or Class E Units to such Shelf Registration Statement as additional Registrable
Securities. The determination of the number of Common Units and/or Class E Units to be issued as
the Liquidated Damages Amount and the Delay Liquidated Damages Amount shall be equal to such
amounts divided by the volume weighted average price of Copano’s Common Units on The Nasdaq Stock
Market LLC for the ten (10) trading days immediately preceding the date on which the liquidated
damages payment is due. The payment of the Liquidated Damages Amount and the Delay Liquidated
Damages Amount to a Purchaser shall cease at such time as the Purchased Common Units of such
Purchaser become eligible for resale under Rule 144(k) of the Securities Act.

     Section 2.02 Piggyback Rights.

     (a) Participation. If at any time Copano proposes to file (i) a prospectus supplement
to an effective shelf registration statement, other than the Shelf Registration Statement
contemplated by Section 2.01 of this Agreement, or (ii) a registration statement, other
than a shelf registration statement, in either case, for the sale of Common Units in an
Underwritten Offering for its own account and/or another Person, then as soon as practicable but
not less than three (3) Business Days prior to the filing of (x) any preliminary prospectus
supplement relating to such Underwritten Offering pursuant to Rule 424(b) of the Securities Act,
(y) the prospectus supplement relating to such Underwritten Offering pursuant to Rule 424(b) of the
Securities Act (if no preliminary prospectus supplement is used) or (z) such registration statement
as the case may be, then, Copano shall give notice of such proposed Underwritten Offering to the
Holders and such notice shall offer the Holders the opportunity to include in such Underwritten
Offering such number of Registrable Securities (the “Included Registrable Securities”) as
each such Holder may request in writing; provided, however, that if Copano has been advised by the
Managing Underwriter that the inclusion of Registrable Securities for sale for the benefit of the
Holders will have an adverse effect on the price, timing or distribution of the Common Units, then
the amount of

Registration Rights Agreement, Page 5

 

Registrable Securities to be offered for the accounts of Holders shall be determined based on the
provisions of Section 2.02(b) of this Agreement. Each Holder shall keep any information
relating to any such Underwritten Offering confidential and shall not in disseminate or in any way
disclose such information. The notice required to be provided in this Section 2.02(a) to
Holders shall be provided on a Business Day pursuant to Section 3.01 hereof and receipt of
such notice shall be promptly confirmed by Holder. Holder shall then have three (3) Business Days
after such Holder confirms receipt of the notice to request inclusion of Registrable Securities in
the Underwritten Offering, except that Holder shall have one (1) Business Day after such Holder
confirms receipt of the notice to request inclusion of Registrable Securities in the Underwritten
Offering in the case of a “bought deal” or “overnight transaction”. If no request for inclusion
from a Holder is received within the specified time, such Holder shall have no further right to
participate in such Underwritten Offering. If, at any time after giving written notice of its
intention to undertake an Underwritten Offering and prior to the closing of such Underwritten
Offering, Copano shall determine for any reason not to undertake or to delay such Underwritten
Offering, Copano may, at its election, give written notice of such determination to the Selling
Holders and, (x) in the case of a determination not to undertake such Underwritten Offering, shall
be relieved of its obligation to sell any Included Registrable Securities in connection with such
terminated Underwritten Offering, and (y) in the case of a determination to delay such Underwritten
Offering, shall be permitted to delay offering any Included Registrable Securities for the same
period as the delay in the Underwritten Offering. Any Selling Holder shall have the right to
withdraw such Selling Holder’s request for inclusion of such Selling Holder’s Registrable
Securities in such offering by giving written notice to Copano of such withdrawal up to and
including the time of pricing of such offering; provided, that such Selling Holder may later revoke
any such notice in writing. Each Holder’s rights under this Section 2.02(a) shall
terminate when such Holder holds less than twenty million dollars ($20,000,000.00) of Purchased
Units (based on the Common Unit Price). Notwithstanding the foregoing, any Holder may deliver
written notice (an “Opt-Out Notice”) to Copano requesting that such Holder not receive
notice from Copano of any proposed Underwritten Offering; provided, that such Holder may later
revoke any such Opt-Out Notice in writing.

     (b) Priority of Piggyback Rights. In connection with an Underwritten Offering
contemplated by Section 2.02(a) hereof, if the Managing Underwriter or Underwriters of any
proposed Underwritten Offering of Common Units included in an Underwritten Offering involving
Included Registrable Securities advises Copano that the total amount of Common Units that the
Selling Holders and any other Persons intend to include in such offering exceeds the number that
can be sold in such offering without being likely to have an adverse effect on the price, timing or
distribution of the Common Units offered or the market for the Common Units, then the Common Units
to be included in such Underwritten Offering shall include the number of Registrable Securities
that such Managing Underwriter or Underwriters advises Copano can be sold without having any such
adverse effect, with such number to be allocated (i) first, to Copano; (ii) second, to Copano’s
pre-IPO investors as provided in (A) the Stakeholders’ Agreement dated July 30, 2004, and (B)
Article XIV of the Company’s Third Amended and Restated Limited Liability Company Agreement dated
April 30, 2007; and (iii) third, pro rata among (A) the purchasers listed in Schedule 2.01 of that
certain Class B Unit and Common Unit Purchaser Agreement dated August 17, 2005, (B) the purchasers
named in that certain Common Unit Purchaser Agreement dated December 29, 2005, (C) the holders of
Class C Units issued as consideration in connection with the acquisition of Cimmarron Gathering,
L.P. pursuant to the Acquisition Agreement dated May 1, 2007, (D) the holders of Class D Units that
will be issued as consideration in connection with the Acquisition and (E) the Purchasers, on the
fraction derived by dividing (x) the number of Common Units proposed to be sold by such Selling
Holder in such Underwritten Offering by (y) the aggregate number of Common Units proposed to be
sold by all Selling Holders in such Underwritten Offering. As of the date of execution of this
Agreement, there are no other Persons with Registration Rights other than as described in this
Section 2.02(b).

     Section 2.03 Underwritten Offering.

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     (a) Request for Underwritten Offering. If a Selling Holder elects to dispose of
Registrable Securities under the Shelf Registration Statement pursuant to an Underwritten Offering
and reasonably anticipates gross proceeds of greater than fifty million dollars ($50,000,000.00)
from such Underwritten Offering, Copano shall, at the request of such Selling Holder (each, an
“Underwritten Offering Request”), enter into an underwriting agreement in customary form
with the Managing Underwriter or Underwriters, which shall include, among other provisions,
indemnities to the effect and to the extent provided in Section 2.08, and shall take all
such other reasonable actions as are requested by the Managing Underwriter to expedite or
facilitate the disposition of the Registrable Securities; provided, however, that Copano management
will not be required to participate in any roadshow or similar marketing effort on behalf of any
Selling Holder and the Purchasers will not make more than one Underwritten Offering Request in any
180-day period.

     (b) General Procedures. In connection with any Underwritten Offering under this
Agreement, Copano shall be entitled to select the Managing Underwriter or Underwriters. In
connection with an Underwritten Offering under Section 2.01 or Section 2.03 hereof,
each Selling Holder and Copano shall be obligated to enter into an underwriting agreement that
contains such representations, covenants, indemnities and other rights and obligations as are
customary in underwriting agreements for firm commitment offerings of securities. No Selling
Holder may participate in such Underwritten Offering unless such Selling Holder agrees to sell its
Registrable Securities on the basis provided in such underwriting agreement and completes and
executes all questionnaires, powers of attorney, indemnities and other documents reasonably
required under the terms of such underwriting agreement. Each Selling Holder may, at its option,
require that any or all of the representations and warranties by, and the other agreements on the
part of, Copano to and for the benefit of such underwriters also be made to and for such Selling
Holder’s benefit and that any or all of the conditions precedent to the obligations of such
underwriters under such underwriting agreement also be conditions precedent to its obligations. No
Selling Holder shall be required to make any representations or warranties to or agreements with
Copano or the underwriters other than representations, warranties or agreements regarding such
Selling Holder and its ownership of the securities being registered on its behalf and its intended
method of distribution and any other representation required by Law. If any Selling Holder
disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw therefrom by
notice to Copano and the Managing Underwriter; provided, however, that such withdrawal must be made
prior to the time in the penultimate sentence of Section 2.02(a) hereof to be effective.
No such withdrawal or abandonment shall affect Copano’s obligation to pay Registration Expenses.

     Section 2.04 Sale Procedures. In connection with its obligations contained in
Section 2.01 and Section 2.03, Copano will, as expeditiously as possible:

     (a) prepare and file with the Commission such amendments and supplements to the Shelf
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
the Shelf Registration Statement effective for the Effectiveness Period and as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition of all securities
covered by the Shelf Registration Statement;

     (b) furnish to each Selling Holder (i) as far in advance as reasonably practicable before
filing the Shelf Registration Statement or any other registration statement contemplated by this
Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete
drafts of all such documents proposed to be filed (including exhibits and each document
incorporated by reference therein to the extent then required by the rules and regulations of the
Commission), and provide each such Selling Holder the opportunity to object to any information
pertaining to such Selling Holder and its plan of distribution that is contained therein and make
the corrections reasonably requested by such Selling Holder with respect to such information prior
to filing the Shelf Registration Statement or such other

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registration statement or supplement or amendment thereto, and (ii) such number of copies of
the Shelf Registration Statement or such other registration statement and the prospectus included
therein and any supplements and amendments thereto as such Persons may reasonably request in order
to facilitate the public sale or other disposition of the Registrable Securities covered by such
Shelf Registration Statement or other registration statement;

     (c) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Shelf Registration Statement or any other registration
statement contemplated by this Agreement under the securities or blue sky laws of such
jurisdictions as the Selling Holders or, in the case of an Underwritten Offering, the Managing
Underwriter, shall reasonably request; provided, however, that Copano shall not be required to
qualify generally to transact business in any jurisdiction where it is not then required to so
qualify or to take any action which would subject it to general service of process in any such
jurisdiction where it is not then so subject;

     (d) promptly notify each Selling Holder and each underwriter of Registrable Securities, at any
time when a prospectus relating thereto is required to be delivered under the Securities Act, of
(i) the filing of the Shelf Registration Statement or any other registration statement contemplated
by this Agreement or any prospectus or prospectus supplement to be used in connection therewith, or
any amendment or supplement thereto, and, with respect to such Shelf Registration Statement or any
other registration statement or any post-effective amendment thereto, when the same has become
effective; and (ii) any written comments from the Commission with respect to any filing referred to
in clause (i) and any written request by the Commission for amendments or supplements to the Shelf
Registration Statement or any other registration statement or any prospectus or prospectus
supplement thereto;

     (e) immediately notify each Selling Holder and each underwriter of Registrable Securities, at
any time when a prospectus relating thereto is required to be delivered under the Securities Act,
of (i) the happening of any event as a result of which the prospectus or prospectus supplement
contained in the Shelf Registration Statement or any other registration statement contemplated by
this Agreement, as then in effect, includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements therein
not misleading in the light of the circumstances then existing; (ii) the issuance or threat of
issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration
Statement or such other registration statement, or the initiation of any proceedings for that
purpose; or (iii) the receipt by Copano of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the applicable securities or blue sky
laws of any jurisdiction. Following the provision of such notice, Copano agrees to as amend or
supplement the prospectus or prospectus supplement as promptly as practicable or to take other
appropriate action so that the prospectus or prospectus supplement does not include an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the circumstances then
existing and to take such other action as is necessary to remove a stop order, suspension, threat
thereof or proceedings related thereto;

     (f) upon request and subject to appropriate confidentiality obligations, furnish to each
Selling Holder copies of any and all transmittal letters or other correspondence with the
Commission or any other governmental agency or self-regulatory body or other body having
jurisdiction (including any domestic or foreign securities exchange) relating to such offering of
Registrable Securities;

     (g) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel
for Copano, dated the date of the closing under the underwriting agreement, and (ii) a “cold
comfort” letter, dated the effective date of the applicable registration statement or the date of
any amendment or supplement thereto and a letter of like kind dated the date of the closing under
the underwriting agreement, in each case, signed by the independent public accountants who have
certified Copano’s

Registration Rights Agreement, Page 8

 

financial statements included or incorporated by reference into the applicable registration
statement, and each of the opinion and the “cold comfort” letter shall be in customary form and
covering substantially the same matters with respect to such registration statement (and the
prospectus and any prospectus supplement included therein) as are customarily covered in opinions
of issuer’s counsel and in accountants’ letters delivered to the underwriters in Underwritten
Offerings of securities and such other matters as such underwriters may reasonably request;

     (h) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

     (i) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Copano personnel as is reasonable and customary to enable
such parties to establish a due diligence defense under the Securities Act; provided, however, that
Copano need not disclose any information to any such representative unless and until such
representative has entered into a confidentiality agreement with Copano satisfactory to Copano;

     (j) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by Copano are then listed;

     (k) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of Copano to enable the Selling Holders to consummate the
disposition of such Registrable Securities;

     (l) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement;

     (m) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities; and

     (n) Copano agrees that, if any Purchaser could reasonably be deemed to be an “underwriter”, as
defined in Section 2(a)(11) of the Securities Act, in connection with the registration statement in
respect of any registration of Copano’s securities of any Purchaser pursuant to this Agreement, and
any amendment or supplement thereof (any such registration statement or amendment or supplement a
“Purchaser Underwriter Registration Statement”), then Copano will cooperate with such Purchaser in
allowing such Purchaser to conduct customary “underwriter’s due diligence” with respect to Copano
and satisfy its obligations in respect thereof. In addition, at any Purchaser’s request, Copano
will furnish to such Purchaser, on the date of the effectiveness of any Purchaser Underwriter
Registration Statement and thereafter from time to time on such dates as such Purchaser may
reasonably request, (i) a letter, dated such date, from Copano’s independent certified public
accountants in form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering, addressed to such Purchaser, and
(ii) an opinion, dated as of such date, of counsel representing Copano for purposes of such
Purchaser Underwriter Registration Statement, in form, scope and substance as is customarily given
in an underwritten public offering, including a standard “10b-5” opinion for such offering,
addressed to such Purchaser. Copano will also permit legal counsel to such Purchaser to review and
comment upon any such Purchaser Underwriter Registration Statement at least five (5) Business Days
prior to its filing with the Commission and all amendments and supplements to any such Purchaser

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Underwriter Registration Statement within a reasonable number of days prior to their filing
with the Commission and not file any Purchaser Underwriter Registration Statement or amendment or
supplement thereto in a form to which such Purchaser’s legal counsel reasonably objects.

     Each Selling Holder, upon receipt of notice from Copano of the happening of any event of the
kind described in clause (e) of this Section 2.04, shall forthwith discontinue disposition
of the Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by clause (e) of this Section 2.04 or until it is
advised in writing by Copano that the use of the prospectus may be resumed, and has received copies
of any additional or supplemental filings incorporated by reference in the prospectus, and, if so
directed by Copano, such Selling Holder will deliver, or will request the managing underwriter or
underwriters, if any, to deliver to Copano (at Copano’s expense) all copies in their possession or
control, other than permanent file copies then in such Selling Holder’s possession, of the
prospectus covering such Registrable Securities current at the time of receipt of such notice.

     If reasonably requested by a Purchaser, Copano shall: (i) as soon as practicable incorporate
in a prospectus supplement or post-effective amendment such information as such Purchaser
reasonably requests to be included therein relating to the sale and distribution of Registrable
Securities, including information with respect to the number of Registrable Securities being
offered or sold, the purchase price being paid therefor and any other terms of the offering of the
Registrable Securities to be sold in such offering; (ii) as soon as practicable make all required
filings of such prospectus supplement or post-effective amendment after being notified of the
matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as
soon as practicable, supplement or make amendments to any Registration Statement.

     Section 2.05 Cooperation by Holders. Copano shall have no obligation to include in
the Shelf Registration Statement units of a Holder or in a Underwritten Offering pursuant to
Section 2.02 units of a Selling Holder that has failed to timely furnish such information
that, in the opinion of counsel to Copano, is reasonably required in order for the registration
statement or prospectus supplement, as applicable, to comply with the Securities Act.

     Section 2.06 Restrictions on Public Sale by Holders of Registrable Securities. Each
Holder of Registrable Securities that is included in the Shelf Registration Statement agrees not to
effect any public sale or distribution of the Registrable Securities during the thirty (30)
calendar day period following completion of a public offering of equity securities by Copano;
provided, however, that the duration of the foregoing restrictions shall be no longer than the
duration of the shortest restriction generally imposed by the underwriters on the officers,
directors and unitholders of Copano on whom a restriction is imposed in connection with such public
offering and provided further that this Section 2.06 shall apply only to a Selling Holder
that owns more than twenty million dollars ($20,000,000.00) of the Purchased Units at such time
(based on the Common Unit Price).

     Section 2.07 Expenses.

     (a) Certain Definitions. “Registration Expenses” means all expenses incident
to Copano’s performance under or compliance with this Agreement to effect the registration of
Registrable Securities the Shelf Registration Statement pursuant to Section 2.01, an
Underwritten Offering pursuant to Section 2.02 or Section 2.03, and the disposition
of such securities, including, without limitation, all customary registration, filing, securities
exchange listing and The Nasdaq Stock Market LLC fees, all customary registration, filing,
qualification and other fees and expenses of complying with securities or blue sky laws, fees of
the National Association of Securities Dealers, Inc., transfer taxes and fees of transfer agents
and registrars, all word processing, duplicating and printing expenses, the fees and

Registration Rights Agreement, Page 10

 

disbursements
of
counsel and independent public accountants for Copano, including the expenses of any special
audits or “cold comfort” letters required by or incident to such performance and compliance.
Except as otherwise provided in Section 2.08 hereof, Copano shall not be responsible for
legal fees incurred by Holders in connection with the exercise of such Holders’ rights hereunder.
In addition, Copano shall not be responsible for any “Selling Expenses,” which means all
underwriting fees, discounts, commissions or similar fees or arrangements associated with the sale
of the Registrable Securities.

     (b) Expenses. Copano will pay all reasonable Registration Expenses as determined in
good faith, including, in the case of an Underwritten Offering, whether or not any sale is made
pursuant to the related registration statement. Except as otherwise provided in Section
2.08 hereof, Copano shall not be responsible for legal fees incurred by Holders in connection
with the exercise of such Holders’ rights hereunder, or for any Selling Expenses. Each Selling
Holder shall pay all Selling Expenses in connection with any sale of its Registrable Securities
hereunder.

     Section 2.08 Indemnification.

     (a) By Copano. In the event of an offering of any Registrable Securities under the
Securities Act pursuant to this Agreement, Copano will indemnify and hold harmless each Selling
Holder thereunder, its directors and officers, and each underwriter, pursuant to the applicable
underwriting agreement with such underwriter, of Registrable Securities thereunder and each Person,
if any, who controls such Selling Holder or underwriter within the meaning of the Securities Act
and the Exchange Act, against any losses, claims, damages, expenses or liabilities (including
reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or several, to
which such Selling Holder or underwriter or controlling Person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings,
whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Shelf Registration
Statement or any other registration statement contemplated by this Agreement, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise
out of or are based upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein (in the case of a prospectus, in
light of the circumstances under which they were made) not misleading, and will reimburse each such
Selling Holder, its directors and officers, each such underwriter and each such controlling Person
for any legal or other expenses reasonably incurred by them in connection with investigating or
defending any such Loss or actions or proceedings; provided, however, that Copano will not be
liable in any such case if and to the extent that any such Loss arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission so made in conformity
with information furnished by such Selling Holder, such underwriter or such controlling Person in
writing specifically for use in the Shelf Registration Statement or such other registration
statement, or prospectus supplement, as applicable. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of such Selling Holder or any such
director, officer or controlling Person, and shall survive the transfer of such securities by such
Selling Holder.

     (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless Copano, its directors and officers, and each Person, if any, who
controls Copano within the meaning of the Securities Act and the Exchange Act to the same extent as
the foregoing indemnity from Copano to the Selling Holders, but only with respect to information
regarding such Selling Holder furnished in writing by or on behalf of such Selling Holder expressly
for inclusion in the Shelf Registration Statement or such registration statement, any preliminary
prospectus or final prospectus included therein, or any amendment or supplement thereto; provided,
however, that the liability of each Selling Holder shall not be greater in amount than the dollar
amount of the proceeds (net

Registration Rights Agreement, Page 11

 

of any Selling Expenses) received by such Selling Holder from the sale of the Registrable
Securities giving rise to such indemnification.

     (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party other than under this Section 2.08. The indemnifying
party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake
the defense thereof with counsel reasonably satisfactory to such indemnified party and, after
notice from the indemnifying party to such indemnified party of its election so to assume and
undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party
under this Section 2.08 for any legal expenses subsequently incurred by such indemnified
party in connection with the defense thereof other than reasonable costs of investigation and of
liaison with counsel so selected; provided, however, that, (i) if the indemnifying party has failed
to assume the defense and employ counsel or (ii) if the defendants in any such action include both
the indemnified party and the indemnifying party and counsel to the indemnified party shall have
concluded that there may be reasonable defenses available to the indemnified party that are
different from or additional to those available to the indemnifying party, or if the interests of
the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying
party, then the indemnified party shall have the right to select a separate counsel and to assume
such legal defense and otherwise to participate in the defense of such action, with the reasonable
expenses and fees of such separate counsel and other reasonable expenses related to such
participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other
provision of this Agreement, no indemnified party shall settle any action brought against it with
respect to which it is entitled to indemnification hereunder without the consent of the
indemnifying party, unless the settlement thereof imposes no liability or obligation on, and
includes a complete and unconditional release from all liability of, the indemnifying party.

     (d) Contribution. If the indemnification provided for in this Section 2.08 is
held by a court or government agency of competent jurisdiction to be unavailable to any indemnified
party or is insufficient to hold them harmless in respect of any Losses, then each such
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such Loss in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of such
indemnified party on the other in connection with the statements or omissions which resulted in
such Losses, as well as any other relevant equitable considerations; provided, however, that in no
event shall such Selling Holder be required to contribute an aggregate amount in excess of the
dollar amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale
of Registrable Securities giving rise to such indemnification. The relative fault of the
indemnifying party on the one hand and the indemnified party on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact has been made by, or relates to,
information supplied by such party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The parties hereto
agree that it would not be just and equitable if contributions pursuant to this paragraph were to
be determined by pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to herein. The amount paid by an indemnified
party as a result of the Losses referred to in the first sentence of this paragraph shall be deemed
to include any legal and other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any Loss that is the subject of this paragraph. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation.

Registration Rights Agreement, Page 12

 

     (e) Other Indemnification. The provisions of this Section 2.08 shall be in
addition to any other rights to indemnification or contribution that an indemnified party may have
pursuant to law, equity, contract or otherwise.

     Section 2.09 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable
Securities to the public without registration, Copano agrees to use its commercially reasonable
efforts to:

     (a) Make and keep public information regarding Copano available, as those terms are understood
and defined in Rule 144 of the Securities Act, at all times from and after the date hereof;

     (b) File with the Commission in a timely manner all reports and other documents required of
Copano under the Securities Act and the Exchange Act at all times from and after the date hereof;
and

     (c) So long as a Holder owns any Registrable Securities, furnish, unless otherwise not
available by access electronically to the Commission’s EDGAR filing system, to such Holder
forthwith upon request a copy of the most recent annual or quarterly report of Copano, and such
other reports and documents so filed as such Holder may reasonably request in availing itself of
any rule or regulation of the Commission allowing such Holder to sell any such securities without
registration.

     Section 2.10 Transfer or Assignment of Registration Rights. The rights to cause
Copano to register Registrable Securities granted to the Purchasers by Copano under this Article II
may be transferred or assigned by any Purchaser to one or more transferee(s) or assignee(s) of such
Registrable Securities; provided, however, that (except with respect to a total return swap) (a)
unless such transferee is an Affiliate of such Purchaser, each such transferee or assignee holds
Registrable Securities representing at least twenty million dollars ($20,000,000.00) of the
Purchased Units (based on the Common Unit Price), (b) Copano is given written notice prior to any
said transfer or assignment, stating the name and address of each such transferee and identifying
the securities with respect to which such registration rights are being transferred or assigned,
and (c) each such transferee assumes in writing responsibility for its portion of the obligations
of such Purchaser under this Agreement.

     Section 2.11 Limitation on Subsequent Registration Rights. From and after the date
hereof, Copano shall not, without the prior written consent of the Holders of a majority of the
outstanding Registrable Securities, enter into any agreement with any current or future holder of
any securities of Copano that would allow such current or future holder to require Copano to
include securities in any registration statement filed by Copano on a basis that is superior in any
way to the piggyback rights granted to Purchaser hereunder.

ARTICLE III

MISCELLANEOUS

     Section 3.01 Communications. All notices and other communications provided for or
permitted hereunder shall be made in writing by facsimile, courier service or personal delivery:

     (a) if to Purchaser, to the address set forth under that Purchaser’s signature block in
accordance with the provisions of this Section 3.01,

     (b) if to a transferee of Purchaser, to such Holder at the address provided pursuant to
Section 2.10 above, and

Registration Rights Agreement, Page 13

 

     (c) if to Copano, at 2727 Allen Parkway, Suite 1200, Houston, Texas 77019, notice of which is
given in accordance with the provisions of this Section 3.01.

     All such notices and communications shall be deemed to have been received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or
sent via Internet electronic mail; and when actually received, if sent by any other means.

     Section 3.02 Successor and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and assigns of each of the parties, including subsequent Holders of
Registrable Securities to the extent permitted herein.

     Section 3.03 Assignment of Rights. All or any portion of the rights and obligations
of any Purchaser under this Agreement may be transferred or assigned by such Purchaser in
accordance with Section 2.10 hereof.

     Section 3.04 Aggregation of Purchased Units. All Purchased Units held or acquired by
Persons who are Affiliates of one another shall be aggregated together for the purpose of
determining the availability of any rights under this Agreement.

     Section 3.05 Recapitalization, Exchanges, Etc. Affecting the Common Units. The
provisions of this Agreement shall apply to the full extent set forth herein with respect to any
and all units of Copano or any successor or assign of Copano (whether by merger, consolidation,
sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution
of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits,
recapitalizations and the like occurring after the date of this Agreement.

     Section 3.06 Specific Performance. Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed
that each such Person, in addition to and without limiting any other remedy or right it may have,
will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction or other equitable
relief. The existence of this right will not preclude any such Person from pursuing any other
rights and remedies at law or in equity which such Person may have.

     Section 3.07 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     Section 3.08 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 3.09 Governing Law. The laws of the State of Delaware shall govern this
Agreement without regard to principles of conflict of laws.

     Section 3.10 Severability of Provisions. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

Registration Rights Agreement, Page 14

 

     Section 3.11 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the rights granted by Copano set forth herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter.

     Section 3.12 Amendment. This Agreement may be amended only by means of a written
amendment signed by Copano and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and adversely affect the
rights of any Holder hereunder without the consent of such Holder.

     Section 3.13 Termination. This Agreement shall terminate and be of no further force or
effect immediately following the earliest to occur of: (i) the date as of which all such Purchased
Units are sold by the Purchaser or (ii) the date as of which all Purchased Units cease to be
Registrable Securities.

     Section 3.14 No Presumption. If any claim is made by a party relating to any
conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a
particular party or its counsel.

Registration Rights Agreement, Page 15

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

	 	 	 	 	 
	 	COPANO ENERGY, L.L.C.

 	 
	 	By:  	/s/ John R. Eckel, Jr.
 	 
	 	 	Name:  	John R. Eckel, Jr. 	 
	 	 	Title:  	Chairman of the Board and Chief Executive Officer 	 

Signature Page to the Registration Rights Agreement

 

 

	 	 	 	 	 
	 	LEHMAN BROTHERS MLP OPPORTUNITY FUND L.P.

 	 
	 	By:  	Lehman Brothers MLP Opportunity Associates L.P.
 its general partner
 	 
	 	 	 
	 	By:  	                                          Lehman Brothers MLP Opportunity Associates L.L.C.
 its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ Jeff Wood
 	 
	 	 	Jeff Wood 	 
	 	 	Vice President 	 
	 
	 	LEHMAN BROTHERS MLP PARTNERS, L.P.

 	 
	 	By:  	Lehman Brothers MLP Associates, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          LB I Group, Inc.
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ Jeff Wood
 	 
	 	 	Jeff Wood 	 
	 	 	Vice President 	 
	 
	 	ZLP FUND, LP

 	 
	 	By:  	Zimmer Lucas Partners, LLC
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ Stuart J. Zimmer
 	 
	 	 	Stuart J. Zimmer 	 
	 	 	Managing Member 	 
	 
	 	STRUCTURED FINANCE AMERICAS, LLC

 	 
	 	By:  	/s/ Sunil Hariani
 	 
	 	 	Sunil Hariani 	 
	 	 	Vice President 	 
	 	 	 
	 	By:  	      /s/ Andrea Leung
 	 
	 	 	Andrea Leung 	 
	 	 	Vice President 	 
	 
	 	JENNISON EQUITY INCOME FUND, A SERIES OF THE STRATEGIC
PARTNERS MUTUAL FUNDS, INC.

 	 
	 	By:  	Jennison Associates LLC
as subadvisor to the Fund
 	 
	 	 	 
	 	By:  	                                          /s/ Ubong Edemeka
 	 
	 	 	Ubong Edemeka 	 
	 	 	Managing Director 	 

Signature Page to the Registration Rights Agreement

 

 

	 	 	 	 	 
	 	JENNISON UTILITY FUND, A SERIES OF THE JENNISON SECTOR
FUNDS, INC.

 	 
	 	By:  	Jennison Associates LLC
as subadvisor to the Fund
 	 
	 	 	 
	 	By:  	                                          /s/ Ubong Edemeka
 	 
	 	 	Ubong Edemeka 	 
	 	 	Managing Director 	 
	 
	 	ING LIFE INSURANCE AND ANNUITY COMPANY

 	 
	 	By:  	ING Investment Management LLC
as agent
 	 
	 	 	 
	 	By:  	                                          /s/ Paul Aronson
 	 
	 	 	Paul Aronson 	 
	 	 	Vice President 	 
	 
	 	ING USA ANNUITY AND LIFE INSURANCE COMPANY

 	 
	 	By:  	ING Investment Management LLC
as agent
 	 
	 	 	 
	 	By:  	                                          /s/ Paul Aronson
 	 
	 	 	Paul Aronson 	 
	 	 	Vice President 	 
	 
	 	RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

 	 
	 	By:  	ING Investment Management LLC
as agent
 	 
	 	 	 
	 	By:  	                                          /s/ Paul Aronson
 	 
	 	 	Paul Aronson 	 
	 	 	Vice President 	 
	 
	 	RELIASTAR LIFE INSURANCE COMPANY

 	 
	 	By:  	ING Investment Management LLC
as agent
 	 
	 	 	 
	 	By:  	                                          /s/ Paul Aronson
 	 
	 	 	Paul Aronson 	 
	 	 	Vice President 	 
	 
	 	SECURITY LIFE OF DENVER INSURANCE COMPANY

 	 
	 	By:  	ING Investment Management LLC
as agent
 	 
	 	 	 
	 	By:  	                                          /s/ Paul Aronson
 	 
	 	 	Paul Aronson 	 
	 	 	Vice President 	 

Signature Page to the Registration Rights Agreement

 

 

	 	 	 	 	 
	 	RCH ENERGY OPPORTUNITY FUND II, L.P.

 	 
	 	By:  	RCH Energy Opportunity Fund II GP, L.P.
its general partner
 	 
	 	 	 	 
	 	By:  	RR Advisors, LLC
its general partner
 	 
	 	 	 	 
	 	By:  	                                          /s/ Robert Raymond
 	 
	 	 	Robert Raymond 	 
	 	 	Sole Member 	 
	 
	 	RCH ENERGY MLP FUND, L.P.

 	 
	 	By:  	RCH Energy MLP Fund GP, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          RR Advisors, LLC
its general partner
 	 
	 	 	 	 
	 	By:  	                                          /s/ Robert Raymond
 	 
	 	 	Robert Raymond 	 
	 	 	Sole Member 	 
	 
	 	RCH ENERGY MLP FUND A, L.P.

 	 
	 	By:  	RCH Energy MLP Fund A GP, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          RR Advisors, LLC
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ Robert Raymond
 	 
	 	 	Robert Raymond 	 
	 	 	Sole Member 	 
	 
	 	KAYNE ANDERSON MLP INVESTMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	James C. Baker 	 
	 	 	Vice President 	 
	 
	 	KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	James C. Baker 	 
	 	 	Vice President 	 

Signature Page to the Registration Rights Agreement

 

 

	 	 	 	 	 
	 	KAYNE ANDERSON MLP FUND, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ David Shladovsky
 	 
	 	 	David Shladovsky 	 
	 	 	General Counsel 	 
	 
	 	KAYNE ANDERSON CAPITAL INCOME PARTNERS (QP), LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ David Shladovsky
 	 
	 	 	David Shladovsky 	 
	 	 	General Counsel 	 
	 
	 	KAYNE ANDERSON MIDSTREAM OPPORTUNITY FUND, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ David Shladovsky
 	 
	 	 	David Shladovsky 	 
	 	 	General Counsel 	 
	 
	 	KAYNE ANDERSON NON-TRADITIONAL INVESTMENTS, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ David Shladovsky
 	 
	 	 	David Shladovsky 	 
	 	 	General Counsel 	 
	 
	 	ARBCO II, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ David Shladovsky
 	 
	 	 	David Shladovsky 	 
	 	 	General Counsel 	 
	 
	 	TORTOISE ENERGY INFRASTRUCTURE CORPORATION

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Zachary A. Hamel 	 
	 	 	Senior Vice President 	 

Signature Page to the Registration Rights Agreement

 

 

	 	 	 	 	 
	 	TORTOISE ENERGY CAPITAL CORPORATION

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Zachary A. Hamel 	 
	 	 	Senior Vice President 	 
	 
	 	TORTOISE GAS AND OIL CORPORATION

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Zachary A. Hamel 	 
	 	 	Senior Vice President 	 
	 
	 	TORTOISE TOTAL RETURN FUND, LLC

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Zachary A. Hamel 	 
	 	 	Senior Vice President 	 
	 
	 	AT MLP FUND, LLC

 	 
	 	By:  	Atlantic Trust, N.A.
its manager
 	 
	 	 	 
	 	By:  	                                          /s/ Paul McPheeters
 	 
	 	 	Paul McPheeters 	 
	 	 	Managing Director 	 
	 
	 	MORGAN STANLEY STRATEGIC INVESTMENTS, INC.

 	 
	 	By:  	/s/ Alan Thomas
 	 
	 	 	Alan Thomas 	 
	 	 	Vice President 	 
	 
	 	HARTZ CAPITAL MLP, LLC

 	 
	 	By:  	Hartz Capital, Inc.
its manager
 	 
	 	 	 
	 	By:  	      /s/ Ronald J. Bangs
 	 
	 	 	Ronald J. Bangs 	 
	 	 	Chief Operating Officer 	 
	 
	 	CITIGROUP FINANCIAL PRODUCTS INC.

 	 
	 	By:  	/s/ Peter Santoro
 	 
	 	 	Peter Santoro 	 
	 	 	Managing Director 	 
	 
	 	WEXFORD SPECTRUM TRADING LIMITED

 	 
	 	By:  	/s/ Arthur Amron
 	 
	 	 	Arthur Amron 	 
	 	 	Vice President and Assistant Secretary 	 

Signature Page to the Registration Rights Agreement

 

 

	 	 	 	 	 
	 	WEXFORD CATALYST TRADING LIMITED

 	 
	 	By:  	/s/ Arthur Amron
 	 
	 	 	Arthur Amron 	 
	 	 	Vice President and Assistant Secretary 	 
	 
	 	DEBELLO TRADING LIMITED

 	 
	 	By:  	/s/ Arthur Amron
 	 
	 	 	Arthur Amron 	 
	 	 	Vice President and Assistant Secretary 	 
	 
	 	CAPITAL VENTURES INTERNATIONAL

 	 
	 	By:  	Heights Capital Management, Inc.
its authorized signatory
 	 
	 	 	 
	 	By:  	
/s/ Martin Robinger 	 
	 	 	Name:  	Martin Robinger 	 
	 	 	Title:  	Investment Manager 	 
	 
	 	STROME MLP FUND, LP

 	 
	 	By:  	Strome Investment Management, LP
its general partner
 	 
	 	 	 
	 	By:  	                                          /s/ Peter Davies
 	 
	 	 	Peter Davies 	 
	 	 	Chief Executive Officer 	 
	 
	 	HOWARD L. TERRY

 	 
	 	By:  	/s/ Howard L. Terry
 	 
	 	 	Howard L. Terry 	 
	 
	 	HARVEST SHARING LLC

 	 
	 	By:  	Harvest Fund Advisors LLC
its manager
 	 
	 	 	 
	 	By:  	                                          /s/ Anthony Merhige
 	 
	 	 	Anthony Merhige 	 
	 	 	CAO & General Counsel 	 
	 
	 	HARVEST INFRASTRUCTURE PARTNERS FUND LLC

 	 
	 	By:  	Harvest Fund Advisors LLC
its manager
 	 
	 	 	 
	 	By:  	                                          /s/ Anthony Merhige
 	 
	 	 	Anthony Merhige 	 
	 	 	CAO & General Counsel 	 

Signature Page to the Registration Rights Agreement

 

 

	 	 	 	 	 
	 	GERALD SMITH

 	 
	 	By:  	/s/ Nancy Cooke
 	 
	 	 	Nancy Cooke 	 
	 	 	Attorney-in-fact 	 
	 
	 	MLP & STRATEGIC EQUITY FUND INC.

 	 
	 	By:  	/s/ James J. Cunnane, Jr.
 	 
	 	 	James J. Cunnane, Jr. 	 
	 	 	Portfolio Manager 	 

Signature Page to the Registration Rights Agreementexv4w2

 

EXHIBIT 4.2

 

 

FORM OF SENIOR INDENTURE

AVALON PHARMACEUTICALS, INC.,

ISSUER

AND

[                   ],

TRUSTEE

 

INDENTURE

DATED AS OF [               ], 200[     ]

 

SENIOR DEBT SECURITIES

 

 

 

 

CROSS-REFERENCE TABLE(1)

	 	 	 	 	 
	 	 	Section of
	Section of Trust Indenture Act of 1939, as amended	 	Indenture
	310(a)

	 	7.09	 
	310(b)

	 	7.08	 
	 

	 	7.10	 
	310(c)

	 	Inapplicable

	311(a)

	 	7.13	 
	311(b)

	 	7.13	 
	311(c)

	 	Inapplicable

	312(a)

	 	5.01	 
	 

	 	5.02(a)	 
	312(b)

	 	5.02(c)	 
	312(c)

	 	5.02(c)	 
	313(a)

	 	5.04(a)	 
	313(b)

	 	5.04(b)	 
	313(c)

	 	5.04(a)	 
	 

	 	5.04(b)	 
	313(d)

	 	5.04(b)	 
	 

	 	5.04(c)	 
	314(a)

	 	5.03	 
	 

	 	13.05(c)	 
	314(b)

	 	Inapplicable

	314(c)

	 	13.05	 
	314(d)

	 	Inapplicable

	314(e)

	 	13.05	 
	314(f)

	 	Inapplicable

	315(a)

	 	7.01(b)	 
	 

	 	7.02	 
	315(b)

	 	5.04(d)	 
	315(c)

	 	7.01	 
	315(d)

	 	7.01	 
	 

	 	7.02	 
	315(e)

	 	6.07	 
	316(a)

	 	6.06	 
	 

	 	8.04	 
	316(b)

	 	6.04	 
	316(c)

	 	8.01	 
	317(a)

	 	6.02	 
	317(b)

	 	4.03	 
	318(a)

	 	13.07	 

 

			
	(1)	 	This Cross-Reference Table does not constitute part of the Indenture and shall not have any
bearing on the interpretation of any of its terms or provisions.

 

 

TABLE OF CONTENTS(2)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I. DEFINITIONS	 	 	1	 
	SECTION 1.01.
	 	Definitions of Terms 	 	 	1	 
	ARTICLE II ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES	 	 	5	 
	SECTION 2.01.
	 	Designation and Terms of Securities	 	 	5	 
	SECTION 2.02.
	 	Form of Securities and Trustee’s Certificate 	 	 	6	 
	SECTION 2.03.
	 	Denominations; Provisions for Payment 	 	 	7	 
	SECTION 2.04.
	 	Execution and Authentications 	 	 	8	 
	SECTION 2.05.
	 	Registration of Transfer and Exchange 	 	 	9	 
	SECTION 2.06.
	 	Temporary Securities 	 	 	10	 
	SECTION 2.07.
	 	Mutilated, Destroyed, Lost or Stolen Securities 	 	 	10	 
	SECTION 2.08.
	 	Cancellation 	 	 	11	 
	SECTION 2.09.
	 	Benefits of Indenture 	 	 	11	 
	SECTION 2.10.
	 	Authenticating Agent 	 	 	12	 
	SECTION 2.11.
	 	Global Securities 	 	 	12	 
	ARTICLE III REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS	 	 	13	 
	SECTION 3.01.
	 	Redemption 	 	 	13	 
	SECTION 3.02.
	 	Notice of Redemption 	 	 	13	 
	SECTION 3.03.
	 	Payment Upon Redemption 	 	 	14	 
	SECTION 3.04.
	 	Sinking Fund 	 	 	15	 
	SECTION 3.05.
	 	Satisfaction of Sinking Fund Payments with Securities 	 	 	15	 
	SECTION 3.06.
	 	Redemption of Securities for Sinking Fund 	 	 	15	 
	ARTICLE IV COVENANTS	 	 	16	 
	SECTION 4.01.
	 	Payment of Principal, Premium and Interest 	 	 	16	 
	SECTION 4.02.
	 	Maintenance of Office or Agency 	 	 	16	 
	SECTION 4.03.
	 	Paying Agents 	 	 	16	 
	SECTION 4.04.
	 	Appointment to Fill Vacancy in Office of Trustee 	 	 	17	 
	ARTICLE V SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	 	 	17	 
	SECTION 5.01.
	 	Company to Furnish Trustee Names and Addresses of Securityholders 	 	 	17	 
	SECTION 5.02.
	 	Preservation Of Information; Communications With Securityholders 	 	 	18	 
	SECTION 5.03.
	 	Reports by the Company 	 	 	18	 
	SECTION 5.04.
	 	Reports by the Trustee 	 	 	19	 
	ARTICLE VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	 	 	19	 
	SECTION 6.01.
	 	Events of Default 	 	 	19	 
	SECTION 6.02.
	 	Suits for Enforcement by Trustee 	 	 	21	 
	SECTION 6.03.
	 	Application of Moneys Collected 	 	 	22	 
	SECTION 6.04.
	 	Limitation on Suits 	 	 	22	 
	SECTION 6.05.
	 	Rights and Remedies Cumulative; Delay or Omission Not Waiver 	 	 	23	 
	SECTION 6.06.
	 	Control by Securityholders 	 	 	23	 
	SECTION 6.07.
	 	Undertaking to Pay Costs 	 	 	24	 

-i-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE VII CONCERNING THE TRUSTEE	 	 	24	 
	SECTION 7.01.
	 	Certain Duties and Responsibilities of Trustee 	 	 	24	 
	SECTION 7.02.
	 	Certain Rights of Trustee 	 	 	25	 
	SECTION 7.03.
	 	Trustee Not Responsible for Recitals or Issuance or Securities 	 	 	26	 
	SECTION 7.04.
	 	May Hold Securities 	 	 	26	 
	SECTION 7.05.
	 	Moneys Held in Trust 	 	 	27	 
	SECTION 7.06.
	 	Compensation and Reimbursement 	 	 	27	 
	SECTION 7.07.
	 	Reliance on Officers’ Certificate 	 	 	27	 
	SECTION 7.08.
	 	Disqualification; Conflicting Interests 	 	 	28	 
	SECTION 7.09.
	 	Corporate Trustee Required; Eligibility 	 	 	28	 
	SECTION 7.10.
	 	Resignation and Removal; Appointment of Successor 	 	 	28	 
	SECTION 7.11.
	 	Acceptance of Appointment By Successor 	 	 	29	 
	SECTION 7.12.
	 	Merger, Conversion, Consolidation or Succession to Business 	 	 	30	 
	SECTION 7.13.
	 	Preferential Collection of Claims Against the Company 	 	 	31	 
	ARTICLE VIII CONCERNING THE SECURITYHOLDERS	 	 	31	 
	SECTION 8.01.
	 	Evidence of Action by Securityholders 	 	 	31	 
	SECTION 8.02.
	 	Proof of Execution by Securityholders 	 	 	32	 
	SECTION 8.03.
	 	Who May be Deemed Owners 	 	 	32	 
	SECTION 8.04.
	 	Certain Securities Owned by Company Disregarded 	 	 	32	 
	SECTION 8.05.
	 	Actions Binding on Future Securityholders 	 	 	33	 
	ARTICLE IX SUPPLEMENTAL INDENTURES	 	 	33	 
	SECTION 9.01.
	 	Supplemental Indentures Without the Consent of Securityholders 	 	 	33	 
	SECTION 9.02.
	 	Supplemental Indentures With Consent of Securityholders 	 	 	34	 
	SECTION 9.03.
	 	Effect of Supplemental Indentures 	 	 	34	 
	SECTION 9.04.
	 	Securities Affected by Supplemental Indentures 	 	 	35	 
	SECTION 9.05.
	 	Execution of Supplemental Indentures 	 	 	35	 
	ARTICLE X SUCCESSOR ENTITY	 	 	35	 
	SECTION 10.01.
	 	Company May Consolidate, Etc. 	 	 	35	 
	SECTION 10.02.
	 	Successor Entity Substituted 	 	 	36	 
	SECTION 10.03.
	 	Evidence of Consolidation, Etc. to Trustee 	 	 	36	 
	ARTICLE XI SATISFACTION AND DISCHARGE	 	 	36	 
	SECTION 11.01.
	 	Satisfaction and Discharge of Indenture 	 	 	36	 
	SECTION 11.02.
	 	Discharge of Obligations 	 	 	37	 
	SECTION 11.03.
	 	Deposited Moneys to be Held in Trust 	 	 	37	 
	SECTION 11.04.
	 	Payment of Moneys Held by Paying Agents 	 	 	38	 
	SECTION 11.05.
	 	Repayment to Company 	 	 	38	 
	ARTICLE XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	 	 	38	 
	SECTION 12.01.
	 	No Recourse 	 	 	38	 
	ARTICLE XIII MISCELLANEOUS PROVISIONS	 	 	39	 
	SECTION 13.01.
	 	Effect on Successors and Assigns 	 	 	39	 
	SECTION 13.02.
	 	Actions by Successor 	 	 	39	 
	SECTION 13.03.
	 	Notices 	 	 	39	 
	SECTION 13.04.
	 	Governing Law 	 	 	39	 
	SECTION 13.05.
	 	Compliance Certificates and Opinions 	 	 	39	 
	SECTION 13.06.
	 	Payments on Business Days 	 	 	40	 
	SECTION 13.07.
	 	Conflict with Trust Indenture Act 	 	 	40	 
	SECTION 13.08.
	 	Counterparts 	 	 	40	 
	SECTION 13.09.
	 	Separability 	 	 	40	 
	SECTION 13.10.
	 	Assignment 	 	 	40	 

 

			
	(2)	 	This Table of Contents does not constitute part of the Indenture and shall not have any
bearing on the interpretation of any of its terms or provisions.

-ii-

 

     INDENTURE, dated as of [                    ], 200[___], between Avalon
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and [                    ],
as trustee (the “Trustee”):

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized the execution and
delivery of this Indenture to provide for the issuance of unsecured debt securities (hereinafter
referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time
to time in one or more series as in this Indenture provided, as registered Securities without
coupons, to be authenticated by the certificate of the Trustee;

     WHEREAS, to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered, the Company has duly authorized the execution of this
Indenture; and

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

     NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the
holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit
of the holders of Securities:

ARTICLE I.

DEFINITIONS

SECTION 1.01. Definitions of Terms.

     The terms defined in this Section (except as in this Indenture otherwise expressly provided or
unless the context otherwise requires) for all purposes of this Indenture and of any indenture
supplemental hereto shall have the respective meanings specified in this Section and shall include
the plural as well as the singular. All other terms used in this Indenture that are defined in the
Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the
Securities Act of 1933, as amended (except as herein otherwise expressly provided or unless the
context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture
Act and in said Securities Act as in force at the date of the execution of this instrument.

     “Authenticating Agent” means an authenticating agent with respect to all or any of the series
of Securities appointed with respect to all or any series of the Securities by the Trustee pursuant
to Section 2.10.

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

     “Board of Directors” means the Board of Directors of the Company or any duly authorized
committee of such Board.

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

-1-

 

     “Business Day” means, with respect to any series of Securities, any day other than a day on
which Federal or State banking institutions in the Borough of Manhattan, The City of New York, are
authorized or obligated by law, executive order or regulation to close.

     “Certificate” means a certificate signed by the principal executive officer, the principal
financial officer or the principal accounting officer of the Company. The Certificate need not
comply with the provisions of Section 13.05.

     “Company” means Avalon Pharmaceuticals, Inc., a corporation duly organized and existing under
the laws of the State of Delaware, and, subject to the provisions of Article X, shall also include
its successors and assigns.

     “Corporate Trust Office” means the office of the Trustee at which, at any particular time, its
corporate trust business shall be principally administered, which office at the date hereof is
located at [                    ], except that whenever a provision herein refers to an
office or agency of the Trustee in the Borough of Manhattan, The City of New York, such office is
located, at the date hereof, at [                    ]

     “Custodian” means any receiver, trustee, assignee, liquidator, or similar official under any
Bankruptcy Law.

     “Default” means any event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.

     “Depositary” means, with respect to Securities of any series, for which the Company shall
determine that such Securities will be issued as a Global Security, The Depository Trust Company,
New York, New York, another clearing agency, or any successor registered as a clearing agency under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or other applicable statute
or regulation, which, in each case, shall be designated by the Company pursuant to either Section
2.01 or 2.11.

     “Event of Default” means, with respect to Securities of a particular series any event
specified in Section 6.01, continued for the period of time, if any, therein designated.

     “Global Security” means, with respect to any series of Securities, a Security executed by the
Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction,
all in accordance with the Indenture, which shall be registered in the name of the Depositary or
its nominee.

     “Governmental Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America, the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not callable or redeemable at
the option of the issuer thereof, and shall also include a depositary receipt issued by a bank
(as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect
to any such Governmental Obligation or a specific payment of principal of or interest on any such
Governmental Obligation held by such custodian for the account of the holder of such depositary
receipt; provided, however, that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depositary receipt from any amount
received by the custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

-2-

 

     “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.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into in accordance
with the terms hereof.

     “Interest Payment Date,” when used with respect to any installment of interest on a Security
of a particular series, means the date specified in such Security or in a Board Resolution or in an
indenture supplemental hereto with respect to such series as the fixed date on which an installment
of interest with respect to Securities of that series is due and payable.

     “Officers’ Certificate” means a certificate signed by the President or a Senior Vice President
and by the Treasurer or an Assistant Treasurer or the Controller or an Assistant Controller or the
Secretary or an Assistant Secretary of the Company that is delivered to the Trustee in accordance
with the terms hereof. Each such certificate shall include the statements provided for in Section
13.05, if and to the extent required by the provisions thereof.

     “Opinion of Counsel” means an opinion in writing of legal counsel, who may be an employee of
or counsel for the Company, that is delivered to the Trustee in accordance with the terms hereof.
Each such opinion shall include the statements provided for in Section 13.05, if and to the extent
required by the provisions thereof.

     “Outstanding,” when used with reference to Securities of any series, means, subject to the
provisions of Section 8.04, as of any particular time, all Securities of that series theretofore
authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore
canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for
cancellation or that have previously been canceled; (b) Securities or portions thereof for the
payment or redemption of which moneys or Governmental Obligations in the necessary amount shall
have been deposited in trust with the Trustee or with any paying agent (other than the Company) or
shall have been set aside and segregated in trust by the Company (if the Company shall act as its
own paying agent); provided, however, that if such Securities or portions of such Securities are to
be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in
Article III provided, or provision satisfactory to the Trustee shall have been made for giving such
notice; and (c) Securities in lieu of or in substitution for which other Securities shall have been
authenticated and delivered pursuant to the terms of Section 2.07.

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

-3-

 

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or
stolen Security.

     “Responsible Officer” when used with respect to the Trustee means the President, any Senior
Vice President, the Secretary, the Treasurer, any trust officer, any corporate trust officer or any
other officer or assistant officer of the Trustee customarily performing functions similar to those
performed by the Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his or her knowledge of and familiarity with the
particular subject.

     “Securities” means the debt Securities authenticated and delivered under this Indenture.

     “Securityholder,” “holder of Securities,” “registered holder” or other similar term, means the
Person or Persons in whose name or names a particular Security shall be registered on the books of
the Company kept for that purpose in accordance with the terms of this Indenture.

     “Subsidiary” means, with respect to any Person, (i) any corporation at least a majority of
whose outstanding Voting Stock shall at the time be owned, directly or indirectly, by such Person
or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii)
any general partnership, joint venture or similar entity, at least a majority of whose outstanding
partnership or similar interests shall at the time be owned by such Person, or by one or more of
its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general partner.

     “Trustee” means [                    ], and, subject to the provisions of Article VII,
shall also include its successors and assigns, and, if at any time there is more than one Person
acting in such capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as
used with respect to a particular series of the Securities shall mean the trustee with respect to
that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, subject to the
provisions of Sections 9.01, 9.02 and 10.01, as in effect at the date of execution of this
instrument.

     “Voting Stock,” as applied to stock of any Person, means shares, interests, participations or
other equivalents in the equity interest (however designated) in such Person having ordinary voting
power for the election of the directors (or the equivalent) of such Person, other than shares,
interests, participations or other equivalents having such power only by reason of the occurrence
of a contingency.

-4-

 

ARTICLE II

ISSUE, DESCRIPTION, TERMS, EXECUTION,

REGISTRATION AND EXCHANGE OF SECURITIES

SECTION 2.01. Designation and Terms of Securities.

     (a) The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited. The Securities may be issued in one or more series up to the aggregate
principal amount of Securities of that series from time to time authorized by or pursuant to a
Board Resolution of the Company or pursuant to one or more indentures supplemental hereto. Prior to
the initial issuance of Securities of any series, there shall be established in or pursuant to a
Board Resolution, and set forth in an Officers’ Certificate, or established in one or more
indentures supplemental hereto:

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

          (2) any limit upon the aggregate principal amount of the Securities of that series that 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);

          (3) the date or dates on which the principal of the Securities of the series is payable and
the place(s) of payment;

          (4) the rate or rates at which the Securities of the series shall bear interest or the manner
of calculation of such rate or rates, if any;

          (5) the date or dates from which such interest shall accrue, the Interest Payment Dates on
which such interest will be payable or the manner of determination of such Interest Payment Dates,
the place(s) of payment, and the record date for the determination of holders to whom interest is
payable on any such Interest Payment Dates;

          (6) the right, if any, to extend the interest payment periods and the duration of such
extension;

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

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

-5-

 

          (9) the form of the Securities of the series including the form of the certificate of
authentication for such series;

          (10) if other than denominations of one thousand U.S. dollars ($1,000) or any integral
multiple thereof, the denominations in which the Securities of the series shall be issuable;

          (11) any and all other terms with respect to such series (which terms shall not be
inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including
any terms which may be required by or advisable under United States laws or regulations or
advisable in connection with the marketing of Securities of that series;

          (12) whether the Securities are issuable as a Global Security and, in such case, the identity
of the Depositary for such series;

          (13) whether the Securities will be convertible into shares of common stock or other
securities of the Company and, if so, the terms and conditions upon which such Securities will be
so convertible, including the conversion price and the conversion period;

          (14) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.01; and

          (15) any additional or different Events of Default or restrictive covenants provided for with
respect to the Securities of the series.

     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 any such Board Resolution or in any
indentures supplemental hereto.

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

     Securities of any particular series may be issued at various times, with different dates on
which the principal or any installment of principal is payable, with different rates of interest,
if any, or different methods by which rates of interest may be determined, with different dates on
which such interest may be payable and with different redemption dates.

SECTION 2.02. Form of Securities and Trustee’s Certificate.

     The Securities of any series and the Trustee’s certificate of authentication to be borne by
such Securities shall be substantially of the tenor and purport as set forth in one or more
indentures supplemental hereto or as provided in a Board Resolution and as set forth in an
Officers’ Certificate and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or
as may be required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which Securities of that
series may be listed, or to conform to usage.

-6-

 

SECTION 2.03. Denominations; Provisions for Payment.

     The Securities shall be issuable as registered Securities and in the denominations of one
thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.01(10). The
Securities of a particular series shall bear interest payable on the dates and at the rate
specified with respect to that series. The principal of and the interest on the Securities of any
series, as well as any premium thereon in case of redemption thereof prior to maturity, shall be
payable in the coin or currency of the United States of America that at the time is legal tender
for public and private debt, at the office or agency of the Company maintained for that purpose in
the Borough of Manhattan, the City and State of New York. Each Security shall be dated the date of
its authentication. Interest on the Securities shall be computed on the basis of a 360-day year
composed of twelve 30-day months.

     The interest installment on any Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date for Securities of that series shall be paid to the
Person in whose name said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment. In the event that any
Security of a particular series or portion thereof is called for redemption and the redemption date
is subsequent to a regular record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, interest on such Security will be paid upon presentation and surrender of
such Security as provided in Section 3.03.

     Any interest on any Security that is payable, but is not punctually paid or duly provided for,
on any Interest Payment Date for Securities of the same series (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the registered holder on the relevant regular record date by
virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its
election, as provided in clause (1) or clause (2) below:

     (1) The Company may make payment of any Defaulted Interest on Securities to the Persons in
whose names such Securities (or their respective Predecessor Securities) are registered at the
close of business on a special record date for the payment of such Defaulted Interest, which shall
be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment,
and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special
record date for the payment of such Defaulted Interest which shall not be more than 15 nor less
than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company
of such special record date and, in the name and at the expense of the Company, shall cause notice
of the proposed payment of such Defaulted Interest and the special record date therefor to be
mailed, first class postage prepaid, to each Securityholder at his
or her address as it appears in the Security Register (as hereinafter defined), not less than
10 days prior to such special record date. Notice of the proposed payment of such Defaulted
Interest and the special record date therefor having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered on such special record date.

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

     Unless otherwise set forth in a Board Resolution or one or more indentures supplemental hereto
establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term
“regular record date” as used in this Section with respect to a series of Securities with respect
to any Interest Payment Date for such series shall mean either the fifteenth day of the month
immediately preceding the month in which an Interest Payment Date established for such series
pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a
month, or the last day of the month immediately preceding the month in which an Interest Payment
Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest
Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.

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

SECTION 2.04. Execution and Authentications.

     The Securities shall be signed on behalf of the Company by its President, or one of its Senior
Vice Presidents, or its Treasurer, or one of its Assistant Treasurers, or its Secretary, or one of
its Assistant Secretaries, under its corporate seal attested by its Secretary or one of its
Assistant Secretaries. Signatures may be in the form of a manual or facsimile signature. The
Company may use the facsimile signature of any Person who shall have been a President or Senior
Vice President thereof, or of any Person who shall have been a Secretary or Assistant Secretary
thereof, notwithstanding the fact that at the time the Securities shall be authenticated and
delivered or disposed of such Person shall have ceased to be the President or a Senior Vice
President, or the Secretary or an Assistant Secretary, of the Company. The seal of the Company may
be in the form of a facsimile of such seal and may be impressed, affixed, imprinted or otherwise
reproduced on the Securities. The Securities may contain such notations, legends or endorsements
required by law, stock exchange rule or usage. Each Security shall be dated the date of its
authentication by the Trustee.

     A Security shall not be valid until authenticated manually by an authorized signatory of the
Trustee, or by an Authenticating Agent. Such signature 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. At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of any series
executed by the Company to the Trustee for authentication, together with a written order of the
Company for the authentication and delivery of such Securities, signed by its President or any
Senior Vice President and its Secretary or any Assistant Secretary, and the Trustee in accordance
with such written order shall authenticate and deliver such Securities.

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     In authenticating such Securities and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to
Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form
and terms thereof have been established in conformity with the provisions of this Indenture.

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

SECTION 2.05. Registration of Transfer and Exchange.

     (a) Securities of any series may be exchanged upon presentation thereof at the office or
agency of the Company designated for such purpose in the Borough of Manhattan, the City and State
of New York, for other Securities of such series of authorized denominations, and for a like
aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, all as provided in this Section. In respect of any Securities so
surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office
or agency shall deliver in exchange therefor the Security or Securities of the same series that the
Securityholder making the exchange shall be entitled to receive, bearing numbers not
contemporaneously outstanding.

     (b) The Company shall keep, or cause to be kept, at its office or agency designated for such
purpose in the Borough of Manhattan, the City and State of New York, or such other location
designated by the Company a register or registers (herein referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the Company shall register
the Securities and the transfers of Securities as in this Article provided and which at all
reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of
registering Securities and transfer of Securities as herein provided shall be appointed as
authorized by a Board Resolution (the “Security Registrar”).

          Upon surrender for transfer of any Security at the office or agency of the Company designated
for such purpose, the Company shall execute, the Trustee shall authenticate and such office or
agency shall deliver in the name of the transferee or transferees a new Security or Securities of
the same series as the Security presented for a like aggregate principal amount.

          All Securities presented or surrendered for exchange or registration of transfer, as provided
in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by
a written instrument or instruments of transfer, in form satisfactory to the Company or the
Security Registrar, duly executed by the registered holder or by such holder’s duly authorized
attorney in writing.

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     (c) No service charge shall be made for any exchange or registration of transfer of
Securities, or issue of new Securities in case of partial redemption of any series, but the Company
may require payment of a sum sufficient to cover any tax or other governmental charge in relation
thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not
involving any transfer.

     (d) The Company shall not be required (1) to issue, exchange or register the transfer of any
Securities during a period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of less than all the Outstanding Securities of the same series
and ending at the close of business on the day of such mailing, nor (2) to register the transfer of
or exchange any Securities of any series or portions thereof called for redemption. The provisions
of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.

SECTION 2.06. Temporary Securities.

     Pending the preparation of definitive Securities of any series, the Company may execute, and
the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or
typewritten) of any authorized denomination. Such temporary Securities shall be substantially in
the form of the definitive Securities 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. Every temporary Security of any series 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 of such series. Without unnecessary delay the
Company will execute and will furnish definitive Securities of such series and thereupon any or all
temporary Securities of such series may be surrendered in exchange therefor (without charge to the
holders), at the office or agency of the Company designated for the purpose in the Borough of
Manhattan, the City and State of New York, and the Trustee shall authenticate and such office or
agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount
of definitive Securities of such series, unless the Company advises the Trustee to the effect that
definitive Securities need not be executed and furnished until further notice from the Company.
Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits
under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

SECTION 2.07. Mutilated, Destroyed, Lost or Stolen Securities.

     In case any temporary or definitive Security shall become mutilated or be destroyed, lost or
stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s
request, the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the
same series, bearing a number 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 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 evidence to their satisfaction of the destruction, loss or theft of the applicant’s
Security and of the ownership thereof. The Trustee may authenticate any such
substituted Security and deliver the same upon the written request or authorization of any
officer of the Company.

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Upon the issuance of any substituted Security, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith. In case any Security that has matured or is about to mature 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 surrender thereof except in the case of a mutilated
Security) if the applicant for such payment shall furnish to the Company and the Trustee such
security or indemnity as they may require to save each of them harmless, and, in case of
destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the
destruction, loss or theft of such Security and of the ownership thereof.

     Every replacement Security issued pursuant to the provisions of this Section shall constitute
an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost
or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities
of the same series duly issued hereunder. All Securities shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) 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 2.08. Cancellation.

     All Securities surrendered for the purpose of payment, redemption, exchange or registration of
transfer shall, if surrendered to the Company or any paying agent, 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 required or permitted by any of the provisions of
this Indenture. On request of the Company at the time of such surrender, the Trustee shall deliver
to the Company canceled Securities held by the Trustee. In the absence of such request the Trustee
may dispose of canceled Securities in accordance with its standard procedures and deliver a
certificate of disposition to the Company. If the Company shall otherwise acquire any of the
Securities, however, such acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are delivered to the Trustee
for cancellation.

SECTION 2.09. Benefits of Indenture.

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

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SECTION 2.10. Authenticating Agent.

     So long as any of the Securities of any series remain Outstanding there may be an
Authenticating Agent for any or all such series of Securities which the Trustee shall have the
right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon exchange, transfer or partial redemption
thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and
shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All
references in this Indenture to the authentication of Securities by the Trustee shall be deemed to
include authentication by an Authenticating Agent for such series. Each Authenticating Agent shall
be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as
most recently reported or determined by it, sufficient under the laws of any jurisdiction under
which it is organized or in which it is doing business to conduct a trust business, and that is
otherwise authorized under such laws to conduct such business and is subject to supervision or
examination by Federal or State authorities. If at any time any Authenticating Agent shall cease to
be eligible in accordance with these provisions, it shall resign immediately.

     Any Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall)
terminate the agency of any Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility
of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent
acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder
as if originally named as an Authenticating Agent pursuant hereto.

SECTION 2.11. Global Securities.

     (a) If the Company shall establish pursuant to Section 2.01 that the Securities of a
particular series are to be issued as a Global Security, then the Company shall execute and the
Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that
(1) shall represent, and shall be denominated in an amount equal to the aggregate principal amount
of, all of the Outstanding Securities of such series, (2) shall be registered in the name of the
Depositary or its nominee, (3) shall be delivered by the Trustee to the Depositary or pursuant to
the Depositary’s instruction and (4) shall bear a legend substantially to the following effect:
“Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred,
in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or
to a nominee of such successor Depositary.”

     (b) Notwithstanding the provisions of Section 2.05, the Global Security of a series may be
transferred, in whole but not in part and in the manner provided in Section 2.05, only to another
nominee of the Depositary for such series, or to a successor Depositary for such series selected or
approved by the Company or to a nominee of such successor Depositary.

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     (c) If at any time the Depositary for a series of the Securities notifies the Company that it
is unwilling or unable to continue as Depositary for such series or if at any time the Depositary
for such series shall no longer be registered or in good standing under the Exchange Act, or other
applicable statute or regulation, and a successor Depositary for such series is not appointed by
the Company within 90 days after the Company receives such notice or becomes aware of such
condition, as the case may be, this Section 2.11 shall no longer be applicable to the Securities of
such series and the Company will execute and, subject to Section 2.05, the Trustee will
authenticate and deliver the Securities of such series in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global Security. In addition, the
Company may at any time determine that the Securities of any series shall no longer be represented
by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the
Securities of such series. In such event the Company will execute and, subject to Section 2.05, the
Trustee, upon receipt of an Officers’ Certificate evidencing such determination by the Company,
will authenticate and deliver the Securities of such series in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global Security. Upon the
exchange of the Global Security for such Securities in definitive registered form without coupons,
in authorized denominations, the Global Security shall be canceled by the Trustee. Such Securities
in definitive registered form issued in exchange for the Global Security pursuant to this Section
2.11(c) shall be registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the
Trustee. The Trustee shall deliver such Securities to the Depositary for delivery to the Persons in
whose names such Securities are so registered.

ARTICLE III

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

SECTION 3.01. Redemption.

     The Company may redeem the Securities of any series issued hereunder on and after the dates
and in accordance with the terms established for such series pursuant to Section 2.01 hereof.

SECTION 3.02. Notice of Redemption.

     (a) In case the Company shall desire to exercise such right to redeem all or, as the case may
be, a portion of the Securities of any series in accordance with the right reserved so to do, the
Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the
Securities of such series to be redeemed by mailing, first class postage prepaid, a notice of such
redemption not less than 30 days and not more than 90 days before the date fixed for redemption of
that series to such holders at their last addresses as they shall appear upon the Security Register
unless a shorter period is specified in the Securities to be redeemed. Any notice that is mailed in
the manner herein provided shall be conclusively presumed to have been duly given, whether or not
the registered holder receives the notice. In any case, failure duly to give such notice to the
holder of any Security of any series designated for redemption in whole or in part, or any defect
in the notice, shall not affect the validity of the proceedings for the redemption of any other
Securities of such series or any other series. In the case of any
redemption of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish
the Trustee with an Officers’ Certificate evidencing compliance with any such restriction.

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     Each such notice of redemption shall specify the date fixed for redemption and the redemption
price at which Securities of that series are to be redeemed, and shall state that payment of the
redemption price of such Securities to be redeemed will be made at the office or agency of the
Company in the Borough of Manhattan, the City and State of New York, upon presentation and
surrender of such Securities, that interest accrued to the date fixed for redemption will be paid
as specified in said notice, that from and after said date interest will cease to accrue and that
the redemption is for a sinking fund, if such is the case. If less than all the Securities of a
series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in
whole or in part shall specify the particular Securities to be so redeemed. In case any Security is
to be redeemed in part only, the notice that relates to such Security 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.

     (b) If less than all the Securities of a series are to be redeemed, the Company shall give the
Trustee at least 45 days’ notice in advance of the date fixed for redemption as to the aggregate
principal amount of Securities of the series to be redeemed, and thereupon the Trustee shall
select, by lot or in such other manner as it shall deem appropriate and fair in its discretion and
that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars
($1,000) or any integral multiple thereof) of the principal amount of such Securities of a
denomination larger than $1,000, the Securities to be redeemed and shall thereafter promptly notify
the Company in writing of the numbers of the Securities to be redeemed, in whole or in part. The
Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by
its President or any Senior Vice President, instruct the Trustee or any paying agent to call all or
any part of the Securities of a particular series for redemption and to give notice of redemption
in the manner set forth in this Section, such notice to be in the name of the Company or its own
name as the Trustee or such paying agent may deem advisable. In any case in which notice of
redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or
cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case
may be, such Security Register, transfer books or other records, or suitable copies or extracts
therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that
may be required under the provisions of this Section.

SECTION 3.03. Payment Upon Redemption.

     (a) If the giving of notice of redemption shall have been completed as above provided, the
Securities or portions of Securities of the series to be redeemed specified in such notice shall
become due and payable on the date and at the place stated in such notice at the applicable
redemption price, together with interest accrued to the date fixed for redemption and interest on
such Securities or portions of Securities shall cease to accrue on and after the date fixed for
redemption, unless the Company shall default in the payment of such redemption price and accrued
interest with respect to any such Security or portion thereof. On presentation and surrender of
such Securities on or after the date fixed for redemption at the place of payment
specified in the notice, said Securities shall be paid and redeemed at the applicable
redemption price for such series, together with interest accrued thereon to the date fixed for
redemption (but if the date fixed for redemption is an interest payment date, the interest
installment payable on such date shall be payable to the registered holder at the close of business
on the applicable record date pursuant to Section 2.03).

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     (b) Upon presentation of any Security of such series that is to be redeemed in part only, the
Company shall execute and the Trustee shall authenticate and the office or agency where the
Security is presented shall deliver to the holder thereof, at the expense of the Company, a new
Security of the same series of authorized denominations in principal amount equal to the unredeemed
portion of the Security so presented.

SECTION 3.04. Sinking Fund.

     The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the
retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01
for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment”. If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.05.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

SECTION 3.05. Satisfaction of Sinking Fund Payments with Securities.

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

SECTION 3.06. Redemption of Securities for Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of the series, the portion
thereof, if any, that is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 3.05 and the basis for such credit and will, together with such Officers’
Certificate, deliver to the Trustee any Securities to be so delivered. Not less than 30 days before
each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 3.02. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Section 3.03.

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ARTICLE IV

COVENANTS

SECTION 4.01. Payment of Principal, Premium and Interest.

     The Company will duly and punctually pay or cause to be paid the principal of (and premium, if
any) and interest on the Securities of that series at the time and place and in the manner provided
herein and established with respect to such Securities.

SECTION 4.02. Maintenance of Office or Agency.

     So long as any series of the Securities remain Outstanding, the Company agrees to maintain an
office or agency in the Borough of Manhattan, the City and State of New York, with respect to each
such series and at such other location or locations as may be designated as provided in this
Section 4.02, where (a) Securities of that series may be presented for payment, (b) Securities of
that series may be presented as herein above authorized for registration of transfer and exchange,
and (c) notices and demands to or upon the Company in respect of the Securities of that series and
this Indenture may be given or served, such designation to continue with respect to such office or
agency until the Company shall, by written notice signed by its President or a Senior Vice
President and delivered to the Trustee, designate some other office or agency for such purposes or
any of them. If at any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such presentations, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, notices and demands.

SECTION 4.03. Paying Agents.

     (a) If the Company shall appoint one or more paying agents for all or any series of the
Securities, other than the Trustee, the Company will cause each such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to
the provisions of this Section:

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

          (2) that it will give the Trustee notice of any failure by the Company (or by any other
obligor of such Securities) to make any payment of the principal of (and premium, if any) or
interest on the Securities of that series when the same shall be due and payable;

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          (3) that it will, at any time during the continuance of any failure referred to in the
preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the
Trustee all sums so held in trust by such paying agent; and

          (4) that it will perform all other duties of paying agent as set forth in this Indenture.

     (b) If the Company shall act as its own paying agent with respect to any series of the
Securities, it will on or before each due date of the principal of (and premium, if any) or
interest on Securities of that series, set aside, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or
interest so becoming due on Securities of that series until such sums shall be paid to such Persons
or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or
any failure (by it or any other obligor on such Securities) to take such action. Whenever the
Company shall have one or more paying agents for any series of Securities, it will, prior to each
due date of the principal of (and premium, if any) or interest on any Securities of that series,
deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will
promptly notify the Trustee of this action or failure so to act.

     (c) Notwithstanding anything in this Section to the contrary, (1) the agreement to hold sums
in trust as provided in this Section is subject to the provisions of Section 11.05, and (2) 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 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 and conditions as those upon which such sums were held by the Company or such paying
agent; and, upon such payment by any paying agent to the Trustee, such paying agent shall be
released from all further liability with respect to such money.

SECTION 4.04. Appointment to Fill Vacancy in Office of Trustee.

     The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will
appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a
Trustee hereunder.

ARTICLE V

SECURITYHOLDERS’ LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE

SECTION 5.01. Company to Furnish Trustee Names and Addresses of Securityholders.

     The Company will furnish or cause to be furnished to the Trustee (a) on each regular record
date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of
the names and addresses of the holders of each series of Securities as of such regular record date,
provided that the Company shall not be obligated to furnish or cause to be furnished such list at
any time that the list shall not differ in any respect from the most recent list furnished to the
Trustee by the Company and (b) at such other times as the Trustee may request in writing
within 30 days after the receipt by the Company of any such request, a list of similar form
and content as of a date not more than 15 days prior to the time such list is furnished; provided,
however, that, in either case, no such list need be furnished for any series for which the Trustee
shall be the Security Registrar.

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SECTION 5.02. Preservation Of Information; Communications With Securityholders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of Securities contained in the most recent
list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of
Securities received by the Trustee in its capacity as Security Registrar (if acting in such
capacity).

     (b) The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt
of a new list so furnished.

     (c) Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act
with other Securityholders with respect to their rights under this Indenture or under the
Securities. The Company, the Trustee, the Security Registrar and any other Person shall have the
protection of the Trust Indenture Act Section 312(c).

SECTION 5.03. Reports by the Company.

     (a) The Company covenants and agrees 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) that the Company may be
required to file with the Commission pursuant to Section 13 or Section 15(d) of the 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 the rules and
regulations prescribed from time to time by the Commission, such of the supplementary and periodic
information, documents and reports that may be required pursuant to Section 13 of the Exchange Act,
in respect of a security listed and registered on a national securities exchange as may be
prescribed from time to time in such rules and regulations.

     (b) The Company covenants and agrees to file with the Trustee and the Commission, in
accordance with the 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.

     (c) The Company covenants and agrees to transmit by mail, first class postage prepaid, or
reputable overnight delivery service that provides for evidence of receipt, to the Securityholders,
as their names and addresses appear upon the Security Register, within 30 days after the filing
thereof with the Trustee, such summaries of any information, documents and reports required to be
filed by the Company pursuant to subsections (a) and (b) of this Section as may be required by
rules and regulations prescribed from time to time by the Commission.

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SECTION 5.04. Reports by the Trustee.

     (a) On or before [___] in each year in which any of the Securities are Outstanding, the
Trustee shall transmit by mail, first class postage prepaid, to the Securityholders, as their names
and addresses appear upon the Security Register, a brief report dated as of the preceding [___], if
and to the extent required under Section 313(a) of the Trust Indenture Act.

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

     (c) A copy of each such report shall, at the time of such transmission to Securityholders, be
filed by the Trustee with the Company, with each stock exchange upon which any Securities are
listed (if so listed) and also with the Commission. The Company agrees to notify the Trustee when
any Securities become listed on any stock exchange.

     (d) If an Event of Default occurs and is continuing and the Trustee receives actual notice of
such Event of Default, the Trustee shall mail to each Securityholder notice of the uncured Event of
Default within 90 days after the occurrence thereof. Except in the case of an Event of Default in
payment of principal of, or interest on, any Securities, or in the payment of any sinking or
purchase fund installment, the Trustee may withhold the notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or Responsible Officers of
the Trustee in good faith determine that the withholding of such notice is in the interests of the
Securityholders.

ARTICLE VI

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

SECTION 6.01. Events of Default.

     (a) Whenever used herein with respect to Securities of a particular series, “Event of Default”
means any one or more of the following events that has occurred and is continuing:

          (1) the Company defaults in the payment of any installment of interest upon any of the
Securities of that series, as and when the same shall become due and payable, and such default
continues for a period of 90 days; provided, however, that a valid extension of an interest payment
period by the Company in accordance with the terms of any indenture supplemental hereto, shall not
constitute a default in the payment of interest for this purpose;

          (2) the Company defaults in the payment of the principal of (or premium, if any, on) any of
the Securities of that series as and when the same shall become due and payable whether at
maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking
or analogous fund established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of any indenture
supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

          (3) the Company fails to observe or perform any other of its covenants or agreements with
respect to that series contained in this Indenture or otherwise established with respect to that
series of Securities pursuant to Section 2.01 hereof (other than a covenant or
agreement that has been expressly included in this Indenture solely for the benefit of one or
more series of Securities other than such series) for a period of 90 days after the date on which
written notice of such failure, requiring the same to be remedied and stating that such notice is a
“Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered
or certified mail, or to the Company and the Trustee by the holders of at least 25% in principal
amount of the Securities of that series at the time Outstanding;

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          (4) the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a
voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary
case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its
property or (iv) makes a general assignment for the benefit of its creditors; or

          (5) a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for
relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company for all
or substantially all of its property or (iii) orders the liquidation of the Company, and the order
or decree remains unstayed and in effect for 90 days.

     (b) In each and every such case, unless the principal of all the Securities of that series
shall have already become due and payable, either the Trustee or the holders of not less than 25%
in aggregate principal amount of the Securities of that series then Outstanding hereunder, by
notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare
the principal of all the Securities of that series to be due and payable immediately, and upon any
such declaration the same shall become and shall be immediately due and payable.

     (c) At any time after the principal of the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of the moneys due shall
have been obtained or entered as hereinafter provided, the holders of a majority in aggregate
principal amount of the Securities of that series then Outstanding hereunder, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its consequences if: (1)
the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments
of interest upon all the Securities of that series and the principal of (and premium, if any, on)
all Securities of that series that shall have become due otherwise than by acceleration (with
interest upon such principal and premium, if any, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the rate per annum
expressed in the Securities of that series to the date of such payment or deposit) and any amount
payable to the Trustee under Section 7.06, and (2) any and all other Events of Default under the
Indenture with respect to such series, other than the nonpayment of principal on Securities of that
series that shall not have become due by their terms, shall have been remedied or waived as
provided in Section 6.06.

          No such rescission and annulment shall extend to or shall affect any subsequent default or
impair any right consequent thereon.

     (d) In case the Trustee shall have proceeded to enforce any right with respect to Securities
of that series under this Indenture and such proceedings shall have been discontinued or abandoned
because of such rescission or annulment or for any other reason or shall have been determined
adversely to the Trustee, then and in every such case, subject to any determination in
such proceedings, the Company and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee
shall continue as though no such proceedings had been taken.

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SECTION 6.02. Suits for Enforcement by Trustee.

     (a) If an Event of Default specified in Section 6.01(a)(1) or (2) hereof occurs and is
continuing, 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 proceeding to judgment or final decree, and
may enforce any such judgment or final decree against the Company or other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be payable in the manner
provided by law out of the property of the Company or other obligor upon the Securities of that
series, wherever situated.

     (b) In case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
readjustment, arrangement, composition or judicial proceedings affecting the Company, or its
creditors or property, the Trustee shall have power to intervene in such proceedings and take any
action therein that may be permitted by the court and shall (except as may be otherwise provided by
law) be entitled to file such proofs of claim and other papers and documents as may be necessary or
advisable in order to have the claims of the Trustee and of the holders of Securities of a series
allowed for the entire amount due and payable by the Company under this Indenture at the date of
institution of such proceedings and for any additional amount that may become due and payable by
the Company after such date, and to collect and receive any moneys or other property payable or
deliverable on any such claim, and to distribute the same after the deduction of the amount payable
to the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized by each of the holders of Securities of such series to make
such payments to the Trustee, and, in the event that the Trustee shall consent to the making of
such payments directly to such Securityholders, to pay to the Trustee any amount due it under
Section 7.06.

     (c) All rights of action and of asserting claims under this Indenture, or under any of the
terms established with respect to Securities of a series, may be enforced by the Trustee without
the possession of any of such Securities, or the production thereof at any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for payment to the Trustee of any amounts due under Section 7.06, be for the ratable
benefit of the holders of the Securities of such series.

     In case of an Event of Default hereunder, 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.

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

SECTION 6.03. Application of Moneys Collected.

     Any moneys collected by the Trustee pursuant to this Article with respect to a particular
series of 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 premium, if
any) or interest, upon presentation of the Securities of that series, and notation thereon the
payment, if only partially paid, and upon surrender thereof if fully paid:

     FIRST: To the payment of costs and expenses of collection and of all amounts payable to the
Trustee under Section 7.06; and

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

SECTION 6.04. Limitation on Suits.

     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 any suit, action or proceeding in equity or at law upon or
under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless (a) such holder previously shall have given to the Trustee written
notice of an Event of Default and of the continuance thereof with respect to the Securities of such
series specifying such Event of Default, as hereinbefore provided; (b) 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, suit or proceeding in its own name as
trustee hereunder; (c) such holder or holders shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to be incurred therein or
thereby; (d) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have failed to institute any such action, suit or proceeding; and (e) during such
60-day period, the holders of a majority in principal amount of the Securities of that series shall
not have given the Trustee a direction inconsistent with the request.

     Notwithstanding anything contained herein to the contrary, the right of any holder of any
Security to receive payment of the principal of (and premium, if any) and interest on such
Security, as therein provided, on or after the respective due dates expressed in such Security (or
in the case of redemption, on the redemption date), or to institute suit for the enforcement of any
such payment on or after such respective dates or redemption date, shall not be impaired or
affected without the consent of such holder. By accepting a Security hereunder it is expressly
understood, intended and covenanted by the taker and holder of every Security of such series with every
other such taker and holder and the Trustee, that no one or more holders of
Securities of such series shall have any right in any manner whatsoever by virtue or by availing of
any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any
other of such 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 Securityholder and the
Trustee shall be entitled to such relief as can be given either at law or in equity.

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SECTION 6.05. Rights and Remedies Cumulative; Delay or Omission Not Waiver.

     (a) All powers and remedies given by this Article to the Trustee or to the Securityholders
shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers
and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and agreements contained in
this Indenture or otherwise established with respect to such Securities.

     (b) No delay or omission of the Trustee or of any holder of any of the Securities 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 default or on
acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given
by this Article or by law to the Trustee or the Securityholders may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

SECTION 6.06. Control by Securityholders.

     The holders of a majority in aggregate principal amount of the Securities of any series at the
time Outstanding, determined in accordance with Section 8.01, 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 such series; provided,
however, that such direction shall not be in conflict with any rule of law or with this Indenture
or be unduly prejudicial to the rights of holders of Securities of any other series at the time
Outstanding determined in accordance with Section 8.01. Subject to the provisions of Section 7.01,
the Trustee shall have the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer or Officers of the Trustee, determine that the proceeding so
directed would involve the Trustee in personal liability. The holders of a majority in aggregate
principal amount of the Securities of any series at the time Outstanding affected thereby,
determined in accordance with Section 8.01, may on behalf of the holders of all of the Securities
of such series waive any past default in the performance of any of the covenants contained herein
or established pursuant to Section 2.01 with respect to such series and its consequences, except an
uncured default in the payment of the principal of (or premium, if any) or interest on, any of the
Securities of that series as and when the same shall become due by the terms of such Securities
otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all
matured installments of interest and principal and any premium has been deposited with the Trustee
(in accordance with Section 6.01(c)). Upon any such waiver, the default covered thereby shall be
deemed to be cured for all purposes of this Indenture and the
Company, the Trustee and the holders of the Securities of such series shall be restored to
their former positions and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.

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SECTION 6.07. Undertaking to Pay Costs.

     All parties to this Indenture agree, and each holder of any Securities by such holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Securityholder for the enforcement of the payment
of the principal of (or premium, if any) or interest on any Security of such series, on or after
the respective due dates expressed in such Security or established pursuant to this Indenture.

ARTICLE VII

CONCERNING THE TRUSTEE

SECTION 7.01. Certain Duties and Responsibilities of Trustee.

     (a) The Trustee, prior to the occurrence of an Event of Default with respect to the Securities
of a series and after the curing of all Events of Default with respect to the Securities of that
series that may have occurred, shall undertake to perform with respect to the Securities of such
series such duties and only such duties as are specifically set forth in this Indenture, and no
implied covenants shall be read into this Indenture against the Trustee. In case an Event of
Default with respect to the Securities of a series has occurred (that has not been cured or
waived), the Trustee shall exercise with respect to Securities of that series such of the rights
and powers vested in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in the conduct of his
own affairs.

     (b) 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:

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

               (i) the duties and obligations of the Trustee shall with respect to the Securities of such
series be determined solely by the express provisions of this Indenture, and the Trustee shall not
be liable with respect to the Securities of such series 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

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

          (2) 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;

          (3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the holders of not less than a majority in
principal amount of the Securities of any series at the time Outstanding 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 with respect to the
Securities of that series; and

          (4) 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 there is reasonable ground for
believing that the repayment of such funds or liability is not reasonably assured to it under the
terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

SECTION 7.02. Certain Rights of Trustee.

     Except as otherwise provided in Section 7.01:

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

     (b) Any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company, by
the President or any Senior Vice President and by the Secretary or an Assistant Secretary or the
Treasurer or an Assistant Treasurer thereof (unless other evidence in respect thereof is
specifically prescribed herein);

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

     (d) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Securityholders, pursuant to
the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities that may be
incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of
the obligation, upon the occurrence of an Event of Default with respect to a series of the
Securities (that has not been cured or waived) to exercise with respect to Securities of that
series such of the rights and powers vested in it by this Indenture, and to use the same degree of
care and skill in their exercise, as a prudent person would exercise or use under the circumstances
in the conduct of his own affairs;

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

     (f) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond, security or other papers or documents, unless requested in writing so to do
by the holders of not less than a majority in principal amount of the Outstanding Securities of the
particular series affected thereby (determined as provided in Section 8.04); provided, however,
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 costs, expenses or liabilities
as a condition to so proceeding. The reasonable expense of every such examination shall be paid by
the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and

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

SECTION 7.03. Trustee Not Responsible for Recitals or Issuance or Securities.

     (a) The recitals contained herein and in the Securities shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for the correctness of the same.

     (b) The Trustee makes no representations as to the validity or sufficiency of this Indenture
or of the Securities.

     (c) The Trustee shall not be accountable for the use or application by the Company of any of
the Securities or of the proceeds of such Securities, or for the use or application of any moneys
paid over by the Trustee in accordance with any provision of this Indenture or established pursuant
to Section 2.01, or for the use or application of any moneys received by any paying agent other
than the Trustee.

SECTION 7.04. May Hold Securities.

     The Trustee or any paying agent or Security Registrar, 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 Trustee, paying agent or Security Registrar.

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SECTION 7.05. Moneys Held in Trust.

     Subject to the provisions of Section 11.05, 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 law. The Trustee shall
be under no liability for interest on any moneys received by it hereunder except such as it may
agree with the Company to pay thereon.

SECTION 7.06. Compensation and Reimbursement.

     (a) The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled
to, such reasonable compensation (which shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust), as the Company and the Trustee may from time to
time agree in writing, for all services rendered by it in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties hereunder of the
Trustee, and, except as otherwise expressly provided herein, the Company will pay or reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made
by the Trustee 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 Persons not regularly in
its employ) except any such expense, disbursement or advance as may arise from its negligence or
bad faith. The Company also covenants to indemnify the Trustee (and its officers, agents, directors
and employees) for, and to hold it harmless against, any loss, liability or expense incurred
without negligence or bad faith on the part of the Trustee and arising out of or in connection with
the acceptance or administration of this trust, including the costs and expenses of defending
itself against any claim of liability in the premises.

     (b) The obligations of the Company under this Section to compensate and indemnify the Trustee
and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute
additional indebtedness hereunder. Such additional indebtedness shall be secured by 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 7.07. Reliance on Officers’ Certificate.

     Except as otherwise provided in Section 7.01, whenever in the administration of the provisions
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 to take 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 Officers’ 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 to be taken by it under the provisions of this Indenture
upon the faith thereof.

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SECTION 7.08. Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section
310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with
the provisions of Section 310(b) of the Trust Indenture Act.

SECTION 7.09. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee with respect to the Securities issued hereunder which
shall at all times be a corporation organized and doing business under the laws of the United
States of America or any State or Territory thereof or of the District of Columbia, or a
corporation or other Person permitted to act as trustee by the Commission, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus of at least 50
million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal, State,
Territorial or District of Columbia authority. If such corporation publishes reports of condition
at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, 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. The Company may not, nor may any Person directly or indirectly
controlling, controlled by or under common control with the Company, serve as Trustee. In case at
any time the Trustee shall cease to be eligible in accordance with the provisions of this Section,
the Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.

SECTION 7.10. Resignation and Removal; Appointment of Successor.

     (a) The Trustee or any successor hereafter appointed, may at any time resign with respect to
the Securities of one or more series by giving written notice thereof to the Company and by
transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders of
such series, as their names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee with respect to
Securities of such series by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee. 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 any court of competent jurisdiction for the appointment of a successor trustee with
respect to Securities of such series, or any Securityholder of that series 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 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 one of the following shall occur:

          (1) the Trustee shall fail to comply with the provisions of Section 7.08 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; or

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          (2) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09
and shall fail to resign after written request therefor by the Company or by any such Securityholder; or

          (3) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its
property shall be appointed or consented to, or any public officer shall take charge or control of
the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, the Company may remove the Trustee with respect to all
Securities and appoint a successor trustee by written instrument, in duplicate, executed by order
of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or, unless the Trustee’s duty to resign is stayed as
provided herein, any Securityholder who has been a bona fide holder of a Security or Securities for
at least six months may, on behalf of that holder 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 of any series at
the time Outstanding may at any time remove the Trustee with respect to such series by so notifying
the Trustee and the Company and may appoint a successor Trustee for such series with the consent of
the Company.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee with
respect to the Securities of a series pursuant to any of the provisions of this Section shall
become effective upon acceptance of appointment by the successor trustee as provided in Section
7.11.

     (e) Any successor trustee appointed pursuant to this Section may be appointed with respect to
the Securities of one or more series or all of such series, and at any time there shall be only one
Trustee with respect to the Securities of any particular series.

SECTION 7.11. Acceptance of Appointment By Successor.

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

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     (b) In case of the appointment hereunder of a successor trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each
successor trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor trustee relates, (2) shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the retiring Trustee is
not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same
trust, that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall
be responsible for any act or failure to act on the part of any other Trustee hereunder; and upon
the execution and delivery of such supplemental indenture the resignation or removal of the
retiring Trustee shall become effective to the extent provided therein, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment of such successor
trustee relates have no further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this Indenture, and each such
successor trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor trustee relates; but, on request of the
Company or any successor trustee, such retiring Trustee shall duly assign, transfer and deliver to
such successor trustee, to the extent contemplated by such supplemental indenture, the property and
money held by such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor trustee relates.

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

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

     (e) Upon acceptance of appointment by a successor trustee as provided in this Section, the
Company shall transmit notice of the succession of such trustee hereunder by mail, first class
postage prepaid, to the Securityholders, as their names and addresses appear upon the Security
Register. If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

SECTION 7.12. Merger, Conversion, Consolidation or Succession to Business.

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     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation
to which the Trustee shall be a party, or any corporation succeeding to 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 7.08 and eligible under the
provisions of Section 7.09, without the execution or filing of any paper or any further act on the
part of any of the parties hereto, anything herein to the contrary notwithstanding. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

SECTION 7.13. Preferential Collection of Claims Against the Company.

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any
creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has
resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the
extent included therein.

ARTICLE VIII

CONCERNING THE SECURITYHOLDERS

SECTION 8.01. Evidence of Action by Securityholders.

     Whenever in this Indenture it is provided that the holders of a majority or specified
percentage in aggregate principal amount of the Securities of a particular 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 majority or specified percentage of that series have joined therein may be evidenced by any
instrument or any number of instruments of similar tenor executed by such holders of Securities of
that series in Person or by agent or proxy appointed in writing.

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

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SECTION 8.02. Proof of Execution by Securityholders.

     Subject to the provisions of Section 7.01, proof of the execution of any instrument by a
Securityholder (such proof will not require notarization) or his agent or proxy and proof of the
holding by any Person of any of the Securities shall be sufficient if made in the following manner:

     (a) The fact and date of the execution by any such Person of any instrument may be proved in
any reasonable manner acceptable to the Trustee.

     (b) The ownership of Securities shall be proved by the Security Register of such Securities or
by a certificate of the Security Registrar thereof.

     (c) The Trustee may require such additional proof of any matter referred to in this Section as
it shall deem necessary.

SECTION 8.03. Who May be Deemed Owners.

     Prior to the due presentment for registration of transfer of any Security, the Company, the
Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name
such Security shall be registered upon the books of the Company as the absolute owner of such
Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership
or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving
payment of or on account of the principal of (and premium, if any) and (subject to Section 2.03)
interest on such Security and for all other purposes; and neither the Company nor the Trustee nor
any paying agent nor any Security Registrar shall be affected by any notice to the contrary.

SECTION 8.04. Certain Securities Owned by Company Disregarded.

     In determining whether the holders of the requisite aggregate principal amount of Securities
of a particular series have concurred in any direction, consent or waiver under this Indenture, the
Securities of that series that are owned by the Company or any other obligor on the Securities of
that series or by any Person directly or indirectly controlling or controlled by or under common
control with the Company or any other obligor on the Securities of that series 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 of such series that the Trustee actually knows are so owned
shall be so disregarded. The Securities so owned that have been pledged in good faith may be
regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any such other obligor. In case of a dispute as to such
right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the
Trustee.

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SECTION 8.05. Actions Binding on Future Securityholders.

     At any time prior to (but not after) the evidencing to the Trustee, as provided in Section
8.01, of the taking of any action by the holders of the majority or percentage in aggregate
principal amount of the Securities of a particular series specified in this Indenture in connection
with such action, any holder of a Security of that series that 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 with the Trustee, and upon proof of holding as provided in Section 8.02, 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 Security issued in exchange therefor, on registration of
transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto
is made upon such Security. Any action taken by the holders of the majority or percentage in
aggregate principal amount of the Securities of a particular series specified in this Indenture in
connection with such action shall be conclusively binding upon the Company, the Trustee and the
holders of all the Securities of that series.

ARTICLE IX

SUPPLEMENTAL INDENTURES

SECTION 9.01. Supplemental Indentures Without the Consent of Securityholders.

     In addition to any supplemental indenture otherwise authorized by this Indenture, the Company
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 then in
effect), without the consent of the Securityholders, for one or more of the following purposes:

     (a) to cure any ambiguity, defect or inconsistency herein or in the Securities of any series;

     (b) to comply with Article X;

     (c) to provide for uncertificated Securities in addition to or in place of certificated
Securities;

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

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

     (f) to make any change that does not adversely affect the rights of any Securityholder in any
material respect; or

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     (g) to provide for the issuance of and establish the form and terms and conditions of the
Securities of any series as provided in Section 2.01, to establish the form of any certifications
required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to
add to the rights of the holders of any series of Securities.

     The Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee shall not be obligated to enter into any such supplemental
indenture that 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 by the
Company and the Trustee without the consent of the holders of any of the Securities at the time
Outstanding, notwithstanding any of the provisions of Section 9.02.

SECTION 9.02. Supplemental Indentures With Consent of Securityholders.

     With the consent (evidenced as provided in Section 8.01) of the holders of not less than a
majority in aggregate principal amount of the Securities of each series affected by such
supplemental indenture or indentures at the time Outstanding, the Company, when authorized by Board
Resolutions, 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
then in effect) 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 not covered by Section 9.01 the rights of the holders of the Securities of
such series under this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the holders of each Security then Outstanding and affected thereby, (i)
extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof,
or reduce the rate of interest thereon, or reduce any premium payable upon the redemption thereof
or (ii) reduce the aforesaid percentage of Securities, the holders of which are required to consent
to any such supplemental indenture.

     It shall not be necessary for the consent of the Securityholders of any series affected
thereby 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.

SECTION 9.03. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture pursuant to the provisions of this Article or
of Section 10.01, this Indenture shall, with respect to such series, be and be deemed to be
modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders
of Securities of the 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.

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SECTION 9.04. Securities Affected by Supplemental Indentures.

     Securities of any series affected by a supplemental indenture, authenticated and delivered
after the execution of such supplemental indenture pursuant to the provisions of this Article or of
Section 10.01, may bear a notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Securities of that series so
modified as to conform, in the opinion of the Board of Directors, 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 that series then
Outstanding.

SECTION 9.05. Execution of Supplemental Indentures.

     Upon the request of the Company, accompanied by Board Resolutions authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of
Securityholders required to consent thereto as aforesaid, 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.
The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized
or permitted by, and conforms to, the terms of this Article and that it is proper for the Trustee
under the provisions of this Article to join in the execution thereof; provided, however, that such
Opinion of Counsel need not be provided in connection with the execution of a supplemental
indenture that establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage
prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to
the Securityholders of all series affected thereby as their names and addresses appear upon the
Security Register. Any failure of the Trustee to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture.

ARTICLE X

SUCCESSOR ENTITY

SECTION 10.01. Company May Consolidate, Etc.

     Nothing contained in this Indenture or in any of the Securities shall prevent any
consolidation or merger of the Company with or into any other Person (whether or not affiliated
with the Company) or successive consolidations or mergers in which the Company or its successor or
successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other
disposition of the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not affiliated with the
Company or its successor or successors) authorized to acquire and operate the same; provided,
however, the Company hereby covenants and agrees that, upon any such consolidation or merger (in
each case, if the Company is not the survivor of such transaction), sale, conveyance, transfer or
other disposition, the due and punctual payment of the principal of (premium, if any) and interest
on all of the Securities of all series in accordance with the terms of each series, according to
their tenor, and the due and punctual performance and observance of all the covenants and
conditions of this Indenture with respect to each series or established with respect to such series
pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by
supplemental indenture (which shall conform to the provisions of the Trust Indenture Act as then in
effect) satisfactory in form to the Trustee executed and delivered to the Trustee by the entity
formed by such consolidation, or into which the Company shall have been merged, or by the entity
which shall have acquired such property.

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SECTION 10.02. Successor Entity Substituted.

     (a) In case of any such consolidation, merger, sale, conveyance, transfer or other disposition
and upon the assumption by the successor entity by supplemental indenture, executed and delivered
to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the
principal of (and premium, if any) and interest on all of the Securities of all series Outstanding
and the due and punctual performance of all of the covenants and conditions of this Indenture or
established with respect to each series of the Securities pursuant to Section 2.01 to be performed
by the Company with respect to each series, such successor entity shall succeed to and be
substituted for the Company with the same effect as if it had been named as the Company herein, and
thereupon the predecessor corporation shall be relieved of all obligations and covenants under this
Indenture and the Securities.

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

     (c) Nothing contained in this Article shall apply to limit or impose any requirements upon the
consolidation or merger of any Person into the Company where the Company is the survivor of such
transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the
property of any other Person (whether or not affiliated with the Company).

SECTION 10.03. Evidence of Consolidation, Etc. to Trustee.

     The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as
conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other
disposition, and any such assumption, comply with the provisions of this Article.

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ARTICLE XI

SATISFACTION AND DISCHARGE

SECTION 11.01. Satisfaction and Discharge of Indenture.

     If at any time: (a) the Company shall have delivered to the Trustee for cancellation all
Securities of a series theretofore authenticated (other than any Securities that have been
destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.07) and
Securities for whose payment money or Governmental Obligations have theretofore been deposited in
trust or segregated and held in trust by the Company (and thereupon repaid to the Company or
discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a
particular series not theretofore delivered to the Trustee for cancellation shall have become due
and payable, or are by their terms to become due and payable within one year or are to be called
for redemption within one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as
trust funds the entire amount in moneys or Governmental Obligations or a combination thereof,
sufficient in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon
redemption all Securities of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to such date of
maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or
cause to be paid all other sums payable hereunder with respect to such series by the Company then
this Indenture shall thereupon cease to be of further effect with respect to such series except for
the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall survive until
the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that
shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the
cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to such series.

SECTION 11.02. Discharge of Obligations.

     If at any time all such Securities of a particular series not heretofore delivered to the
Trustee for cancellation or that have not become due and payable as described in Section 11.01
shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds
moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption
all such Securities of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to such date of
maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company with respect to such series, then
after the date such moneys or Governmental Obligations, as the case may be, are deposited with the
Trustee, the obligations of the Company under this Indenture with respect to such series shall
cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02,
4.03, 7.06, 7.10 and 11.05 hereof that shall survive until such Securities shall mature and be
paid. Thereafter, Sections 7.06 and 11.05 shall survive.

SECTION 11.03. Deposited Moneys to be Held in Trust.

     All moneys or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01
or 11.02 shall be held in trust and shall be available for payment as due, either directly or
through any paying agent (including the Company acting as its own paying agent), to the holders of
the particular series of Securities for the payment or redemption of which such moneys or
Governmental Obligations have been deposited with the Trustee.

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SECTION 11.04. Payment of Moneys Held by Paying Agents.

     In connection with the satisfaction and discharge of this Indenture all moneys or Governmental
Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand
of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all
further liability with respect to such moneys or Governmental Obligations.

SECTION 11.05. Repayment to Company.

     Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then
held by the Company, in trust for payment of principal of (and premium, if any) or interest on the
Securities of a particular series that are not applied but remain unclaimed by the holders of such
Securities for at least two years after the date upon which the principal of (and premium, if any)
or interest on such Securities shall have respectively become due and payable, shall be repaid to
the Company or (if then held by the Company) shall be discharged from such trust; and thereupon the
paying agent and the Trustee shall be released from all further liability with respect to such
moneys or Governmental Obligations, and the holder of any of the Securities entitled to receive
such payment shall thereafter, as an unsecured general creditor, look only to the Company for the
payment thereof.

ARTICLE XII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 12.01. No Recourse.

     No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any
Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any
incorporator, stockholder, officer or director, past, present or future as such, of the Company or
of any predecessor or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being expressly 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, stockholders, officers or directors as such, of the Company or of any predecessor or
successor corporation, 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 of the Securities 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, stockholder,
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 of the Securities 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
Securities.

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ARTICLE XIII

MISCELLANEOUS PROVISIONS

SECTION 13.01. Effect on Successors and Assigns.

     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 13.02. Actions by Successor.

     Any act or proceeding by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be done and performed
with like force and effect by the corresponding board, committee or officer of any corporation that
shall at the time be the lawful successor of the Company.

SECTION 13.03. Notices.

     Except as otherwise expressly provided herein any notice or demand that by any provision of
this Indenture is required or permitted to be given or served by the Trustee or by the holders of
Securities to or on the Company may be given or served by being deposited first class postage
prepaid in a post-office letterbox addressed (until another address is filed in writing by the
Company with the Trustee), as follows: [               ]. Any notice, election,
request or demand by the Company or any Securityholder to or upon the Trustee shall be deemed to
have been sufficiently given or made, for all purposes, if given or made in writing at the
Corporate Trust Office of the Trustee.

SECTION 13.04. Governing Law.

     This Indenture and each Security shall be deemed to be a contract made under the internal laws
of the State of New York, and for all purposes shall be construed in accordance with the laws of
said State.

SECTION 13.05. Compliance Certificates and Opinions.

     (a) 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 Officers’
Certificate stating that all conditions precedent 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 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.

     (b) Each certificate or opinion provided for in this Indenture and delivered to the Trustee
with respect to compliance with a condition or covenant in this Indenture shall include (1) a
statement that the Person making such certificate or opinion has read such covenant or condition;
(2) a brief statement as to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based; (3) a
statement that, in the opinion of such Person, he has made such examination or investigation
as is necessary to enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (4) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

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     (c) The Company shall furnish to the Trustee, on [             ] of each year, a brief certificate from
the principal executive officer, principal financial officer or principal accounting officer as to
his or her knowledge of such obligor’s compliance with all conditions and covenants under this
Indenture. For purposes of this subsection, such compliance shall be determined without regard to
any period of grace or requirement of notice provided hereunder.

SECTION 13.06. Payments on Business Days.

     Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and as set forth
in an Officers’ Certificate, or established in one or more indentures supplemental to this
Indenture, in any case where the date of maturity of interest or principal of any Security or the
date of redemption of any Security shall not be a Business Day, then payment of interest or
principal (and premium, if any) may be made on the next succeeding Business Day with the same force
and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue
for the period after such nominal date.

SECTION 13.07. Conflict with Trust Indenture Act.

     If and to the extent that any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed
duties shall control.

SECTION 13.08. Counterparts.

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

SECTION 13.09. Separability.

     In case any one or more of the provisions contained in this Indenture or in the Securities of
any series shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions of this
Indenture or of such Securities, but this Indenture and such Securities shall be construed as if
such invalid or illegal or unenforceable provision had never been contained herein or therein.

SECTION 13.10. Assignment.

     The Company will have the right at all times to assign any of its rights or obligations under
this Indenture to a direct or indirect wholly owned Subsidiary of the Company, provided that, in
the event of any such assignment, the Company will remain liable for all such obligations. Subject
to the foregoing, the Indenture is binding upon and inures to the benefit of the parties thereto
and their respective successors and assigns. This Indenture may not otherwise be assigned by the
parties thereto.

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

	 	 	 	 	 
	 	AVALON PHARMACEUTICALS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	[
 	]     
	 	as Trustee 	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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