Document:

EX-4.4

Exhibit 4.4

 

UIL HOLDINGS CORPORATION

as the Company

and

THE BANK OF NEW YORK MELLON

as Trustee

Subordinated Indenture

Dated as of
_____________
 ___, 20___

 

 

 

TABLE OF CONTENTS

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 1

Definitions and Incorporation by Reference

	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definitions
	 	 	1	 
	Section 1.02.

	 	Other Definitions
	 	 	7	 
	Section 1.03.

	 	Incorporation of Trust Indenture Act by Reference
	 	 	7	 
	Section 1.04.

	 	Rules of Construction
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE 2

The Securities

	 
	 	 	 	 	 	 
	Section 2.01.

	 	Form and Dating
	 	 	8	 
	Section 2.02.

	 	Execution And Authentication
	 	 	8	 
	Section 2.03.

	 	Amount Unlimited; Issuable in Series
	 	 	10	 
	Section 2.04.

	 	Denomination and Date of Securities; Payments of Interest
	 	 	13	 
	Section 2.05.

	 	Registrar and Paying Agent; Agents Generally
	 	 	13	 
	Section 2.06.

	 	Paying Agent to Hold Money in Trust
	 	 	14	 
	Section 2.07.

	 	Transfer and Exchange
	 	 	14	 
	Section 2.08.

	 	Replacement Securities
	 	 	17	 
	Section 2.09.

	 	Outstanding Securities
	 	 	18	 
	Section 2.10.

	 	Temporary Securities
	 	 	19	 
	Section 2.11.

	 	Cancellation
	 	 	19	 
	Section 2.12.

	 	CUSIP Numbers
	 	 	19	 
	Section 2.13.

	 	Defaulted Interest
	 	 	19	 
	Section 2.14.

	 	Series May Include Tranches
	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE 3

Redemption

	 
	 	 	 	 	 	 
	Section 3.01.

	 	Applicability of Article
	 	 	20	 
	Section 3.02.

	 	Notice of Redemption; Partial Redemptions
	 	 	20	 
	Section 3.03.

	 	Payment Of Securities Called For Redemption
	 	 	22	 
	Section 3.04.

	 	Exclusion of Certain Securities from Eligibility for
Selection for Redemption
	 	 	23	 
	Section 3.05.

	 	Mandatory and Optional Sinking Funds
	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE 4

Covenants

	 
	 	 	 	 	 	 
	Section 4.01.

	 	Payment of Securities
	 	 	25	 
	Section 4.02.

	 	Maintenance of Office or Agency
	 	 	26	 
	Section 4.03.

	 	Securityholders’ Lists
	 	 	26	 
	Section 4.04.

	 	Certificate to Trustee
	 	 	27	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 4.05.

	 	Reports by the Company
	 	 	27	 
	Section 4.06.

	 	Additional Amounts
	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE 5

Successor Corporation

	 
	 	 	 	 	 	 
	Section 5.01.

	 	When Company May Merge, Etc.
	 	 	28	 
	Section 5.02.

	 	Successor Substituted
	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE 6

Default and Remedies

	 
	 	 	 	 	 	 
	Section 6.01.

	 	Events of Default
	 	 	29	 
	Section 6.02.

	 	Acceleration
	 	 	30	 
	Section 6.03.

	 	Other Remedies
	 	 	31	 
	Section 6.04.

	 	Waiver of Past Defaults
	 	 	31	 
	Section 6.05.

	 	Control by Majority
	 	 	32	 
	Section 6.06.

	 	Limitation on Suits
	 	 	32	 
	Section 6.07.

	 	Rights of Holders to Receive Payment
	 	 	32	 
	Section 6.08.

	 	Collection Suit by Trustee
	 	 	33	 
	Section 6.09.

	 	Trustee May File Proofs of Claim
	 	 	33	 
	Section 6.10.

	 	Application of Proceeds
	 	 	33	 
	Section 6.11.

	 	Restoration of Rights and Remedies
	 	 	34	 
	Section 6.12.

	 	Undertaking for Costs
	 	 	34	 
	Section 6.13.

	 	Rights and Remedies Cumulative
	 	 	35	 
	Section 6.14.

	 	Delay or Omission not Waiver
	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE 7

Trustee

	 
	 	 	 	 	 	 
	Section 7.01.

	 	General
	 	 	35	 
	Section 7.02.

	 	Certain Rights of Trustee
	 	 	35	 
	Section 7.03.

	 	Individual Rights of Trustee
	 	 	38	 
	Section 7.04.

	 	Trustee’s Disclaimer
	 	 	38	 
	Section 7.05.

	 	Notice of Default
	 	 	39	 
	Section 7.06.

	 	Reports by Trustee to Holders
	 	 	39	 
	Section 7.07.

	 	Compensation and Indemnity
	 	 	39	 
	Section 7.08.

	 	Replacement of Trustee
	 	 	40	 
	Section 7.09.

	 	Acceptance of Appointment by Successor
	 	 	41	 
	Section 7.10.

	 	Successor Trustee By Merger, Etc.
	 	 	42	 
	Section 7.11.

	 	Eligibility
	 	 	42	 
	Section 7.12.

	 	Money Held in Trust
	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE 8

Satisfaction and Discharge of Indenture; Unclaimed Moneys

	 
	 	 	 	 	 	 
	Section 8.01.

	 	Satisfaction and Discharge of Indenture
	 	 	43	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 8.02.

	 	Application by Trustee of Funds Deposited for
Payment of Securities
	 	 	44	 
	Section 8.03.

	 	Repayment of Moneys Held by Paying Agent
	 	 	44	 
	Section 8.04.

	 	Return of Moneys Held by Trustee and Paying Agent
Unclaimed for Two Years
	 	 	44	 
	Section 8.05.

	 	Defeasance and Discharge of Indenture
	 	 	45	 
	Section 8.06.

	 	Defeasance of Certain Obligations
	 	 	46	 
	Section 8.07.

	 	Reinstatement
	 	 	48	 
	Section 8.08.

	 	Indemnity
	 	 	48	 
	Section 8.09.

	 	Excess Funds
	 	 	48	 
	Section 8.10.

	 	Qualifying Trustee
	 	 	48	 
	 
	 	 	 	 	 	 
	ARTICLE 9

Amendments, Supplements and Waivers

	 
	 	 	 	 	 	 
	Section 9.01.

	 	Without Consent of Holders
	 	 	49	 
	Section 9.02.

	 	With Consent of Holders
	 	 	49	 
	Section 9.03.

	 	Revocation and Effect of Consent
	 	 	50	 
	Section 9.04.

	 	Notation on or Exchange of Securities
	 	 	51	 
	Section 9.05.

	 	Trustee to Sign Amendments, Etc.
	 	 	51	 
	Section 9.06.

	 	Conformity with Trust Indenture Act
	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE 10

Miscellaneous

	 
	 	 	 	 	 	 
	Section 10.01.

	 	Trust Indenture Act of 1939
	 	 	51	 
	Section 10.02.

	 	Notices
	 	 	52	 
	Section 10.03.

	 	Certificate and Opinion as to Conditions Precedent
	 	 	53	 
	Section 10.04.

	 	Statements Required in Certificate or Opinion
	 	 	53	 
	Section 10.05.

	 	Evidence of Ownership
	 	 	54	 
	Section 10.06.

	 	Rules by Trustee, Paying Agent or Registrar
	 	 	54	 
	Section 10.07.

	 	Payment Date Other Than a Business Day
	 	 	54	 
	Section 10.08.

	 	Governing Law
	 	 	54	 
	Section 10.09.

	 	No Adverse Interpretation of Other Agreements
	 	 	54	 
	Section 10.10.

	 	Successors
	 	 	55	 
	Section 10.11.

	 	Duplicate Originals
	 	 	55	 
	Section 10.12.

	 	Separability
	 	 	55	 
	Section 10.13.

	 	Table of Contents, Headings, Etc.
	 	 	55	 
	Section 10.14.

	 	Incorporators, Stockholders, Officers and Directors of
Company Exempt from Individual Liability
	 	 	55	 
	Section 10.15.

	 	Judgment Currency
	 	 	55	 
	Section 10.16.

	 	Submission to Jurisdiction; Waiver of Jury Trial
	 	 	56	 
	 
	 	 	 	 	 	 
	ARTICLE 11

Subordination of Securities

	 
	 	 	 	 	 	 
	Section 11.01.

	 	Agreement to Subordinate
	 	 	56	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 11.02.

	 	Payments to Securityholders
	 	 	57	 
	Section 11.03.

	 	Subrogation of Securities
	 	 	58	 
	Section 11.04.

	 	Authorization by Securityholders
	 	 	59	 
	Section 11.05.

	 	Notice to Trustee
	 	 	59	 
	Section 11.06.

	 	Trustee’s Relation to Senior Indebtedness
	 	 	60	 
	Section 11.07.

	 	No Impairment of Subordination
	 	 	60	 
	 
	 	 	 	 	 	 
	SIGNATURES
	 	 	 	 	 	 

iv

 

     SUBORDINATED INDENTURE, dated as of __________ __, 200__, between UIL Holdings Corporation, a
Connecticut corporation, as the Company, and The Bank of New York Mellon, a corporation organized
under the laws of the State of New York authorized to conduct a banking business, as Trustee.

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the issue from time to time of its subordinated
debentures, notes or other evidences of indebtedness to be issued in one or more series (the
“Securities”) up to such principal amount or amounts as may from time to time be authorized in
accordance with the terms of this Indenture and to provide, among other things, for the
authentication, delivery and administration thereof, the Company has duly authorized the execution
and delivery of this Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid indenture and agreement according
to its terms have been done;

     NOW, THEREFORE:

     In consideration of the premises and the purchases of the Securities by the Holders thereof,
the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of
the respective Holders from time to time of the Securities as follows:

ARTICLE 1

Definitions and Incorporation by Reference

     Section 1.01. Definitions.

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

     “Agent” means any Registrar, Paying Agent, transfer agent, Authenticating Agent or any other
agent appointed hereunder.

     “Board Resolution” means one or more resolutions of the board of directors of the Company or
any authorized committee thereof, certified by the secretary or an assistant secretary to have been
duly adopted and to be in full force and effect on the date of certification, and delivered to the
Trustee.

 

 

     “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which banking institutions are authorized or required by law or regulation to close in
The City of New York, with respect to any Security the interest on which is based on the offered
quotations in the interbank Eurodollar market for dollar deposits, in London, or with respect to
Securities denominated in a specified currency other than United States dollars, in the place of
payment established in accordance with Section 2.03(e).

     “Capital Lease” means, with respect to any Person, any lease of any property which, in
conformity with GAAP, is required to be capitalized on the balance sheet of such Person.

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

     “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to Article 5 of this Indenture and thereafter means the successor.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date of this Indenture, located at 101 Barclay Street, 4E New York, New York 10286.

     “Currency Agreement” means, with respect to any Person, any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to protect such Person
or any of its Subsidiaries against fluctuations in currency values to or under which such Person or
any of its Subsidiaries is a party or a beneficiary on the date hereof or becomes a party or a
beneficiary thereafter.

     “Debt” means, with respect to any Person at any date of determination (without duplication),
(i) all indebtedness of such Person for borrowed money, (ii) all obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such
Person in respect of letters of credit or bankers’ acceptance or other similar instruments (or
reimbursement obligations with respect thereto), (iv) all obligations of such Person to pay the
deferred purchase price of property or services, except Trade Payables, (v) all obligations of such
Person as lessee under Capital Leases, (vi) all Debt of others secured by a Lien on any asset of
such Person, whether or not such Debt is assumed by such Person; provided that, for purposes of
determining the amount of any Debt of the type described in this clause, if recourse with respect
to such Debt is limited to such asset, the amount of such Debt shall be limited to the lesser of
the fair market value of such asset or the amount of such Debt, (vii) all

2

 

Debt of others Guaranteed by such Person to the extent such Debt is Guaranteed by such Person,
(viii) all redeemable stock valued at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends and (ix) to the extent not otherwise included in this
definition, all obligations of such Person under Currency Agreements and Interest Rate Agreements.

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

     “Depositary” means, with respect to the Securities of any series issuable or issued in the
form of one or more Global Securities, the Person designated as Depositary by the Company pursuant
to Section 2.03 until a successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Depositary” shall mean or include each Person who is
then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as
used with respect to the Securities of any such series shall mean the Depositary with respect to
the Global Securities of that series.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “GAAP” means generally accepted accounting principles in the U.S. as in effect as of the date
hereof applied on a basis consistent with the principles, methods, procedures and practices
employed in the preparation of the Company’s audited financial statements, including, without
limitation, those set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other entity as is
approved by a significant segment of the accounting profession.

     “Global Security” means a Security evidencing all or a part of a series of Securities, issued
to the Depositary or its nominee for such series in accordance with Section 2.02, and bearing the
legend prescribed in Section 2.02.

     “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Debt or other obligation of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt
or other obligation of such other Person (whether arising by virtue of partnership arrangements, or
by agreement to keepwell, to purchase assets, goods, securities or services, to take-or-pay, or to
maintain financial statement conditions or otherwise) or (ii) entered into for purposes of assuring
in any other manner the obligee of such Debt or other obligation of the payment thereof or to
protect such obligee against loss in respect thereof (in whole or in part); provided that the term
“Guarantee” shall not include endorsements for collection or deposit in the

3

 

ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning.

     “Holder” or “Securityholder” means the Person shown in the Security Register kept by the
Registrar as the registered holder of any Security.

     “Indenture” means this Indenture as originally executed and delivered or as it may be amended
or supplemented from time to time by one or more indentures supplemental to this Indenture entered
into pursuant to the applicable provisions of this Indenture and shall include the forms and terms
of the Securities of each series established as contemplated pursuant to Sections 2.01 and 2.03.

     “Interest Rate Agreement” means, with respect to any Person, any interest rate protection
agreement, interest rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge
agreement or other similar agreement or arrangement designed to protect such Person or any of its
Subsidiaries against fluctuations in interest rates to or under which such Person or any of its
Subsidiaries is a party or a beneficiary on the date hereof or becomes a party or a beneficiary
thereafter.

     “Lien” means, with respect to any property, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such property. For purposes of this Indenture,
the Company shall be deemed to own subject to a Lien any property which it has acquired or holds
subject to the interest of a vendor or lessor under any conditional sale agreement, Capital Lease
or other title retention agreement relating to such property.

     “Officer” means, with respect to the Company, the chairman of the board of directors, the
president or chief executive officer, any vice president, the chief financial officer, the
treasurer or any assistant treasurer, or the secretary or any assistant secretary.

     “Officers’ Certificate” means a certificate signed in the name of the Company (i) by the
chairman of the board of directors, the president or chief executive officer or a vice president
and (ii) by the chief financial officer, the treasurer or any assistant treasurer, or the secretary
or any assistant secretary, and delivered to the Trustee. Each such certificate shall comply with
Section 314 of the Trust Indenture Act, if applicable, and include (except as otherwise expressly
provided in this Indenture) the statements provided in Section 10.04, if applicable.

     “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an employee
of or counsel to the Company, satisfactory to the Trustee. Each such opinion shall comply with
Section 314 of the Trust Indenture Act, if applicable, and include the statements provided in
Section 10.04, if and to the extent required thereby.

4

 

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

     “Original Issue Discount Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
maturity thereof pursuant to Section 6.02.

     “Periodic Offering” means an offering of Securities of a series from time to time, the
specific terms of which Securities, including, without limitation, the rate or rates of interest,
if any, thereon, the stated maturity or maturities thereof and the redemption provisions, if any,
with respect thereto, are to be determined by the Company or its agents upon the issuance of such
Securities.

     “Person” means an individual, a corporation, a partnership, a limited liability company, an
association, a trust or any other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

     “Principal” of a Security means the principal amount of, and, unless the context indicates
otherwise, includes any premium payable on, the Security.

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

     “Securities” means any of the securities, as defined in the first paragraph of the recitals
hereof, that are authenticated and delivered under this Indenture.

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

     “Senior Indebtedness” means the principal of (and premium, if any) and interest on all Debt of
the Company whether created, incurred or assumed before, on or after the date of this Indenture;
provided that such Senior Indebtedness shall not include (i) Debt of the Company that, when
incurred and without respect to any election under Section 1111(b) of Title 11, U.S. Code, was
without recourse, (ii) any other Debt of the Company which by the terms of the instrument creating
or evidencing the same are specifically designated as not being senior in right of payment to the
Securities, and in particular the Securities shall rank pari passu with all other debt securities
and guarantees issued to any trust, partnership or other entity affiliated with the Company which
is a financing vehicle of the Company in connection with an issuance of preferred securities by
such financing entity and (iii) redeemable stock of the Company.

5

 

     “Subsidiary” means, with respect to any Person, any corporation, association or other business
entity of which a majority of the capital stock or other ownership interests having ordinary voting
power to elect a majority of the board of directors or other persons performing similar functions
are at the time directly or indirectly owned by such Person.

     “Trade Payables” means, with respect to any Person, any accounts payable or any other
indebtedness or monetary obligation to trade creditors created, assumed or Guaranteed by such
Person or any of its Subsidiaries arising in the ordinary course of business in connection with the
acquisition of goods or services.

     “Trustee” means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of Article 7 and thereafter shall mean or
include each Person who is then a Trustee hereunder, and if at any time there is more than one such
Person, “Trustee” as used with respect to the Securities of any series shall mean the Trustee with
respect to Securities of that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb), as it may be amended from time to time.

     “U.S. Government 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 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,
and shall also include a depository receipt issued by a bank or trust company as custodian with
respect to any such U.S. Government Obligation or a specific payment of interest on or principal of
any such U.S. Government Obligation held by such custodian for the account of the holder of a
depository receipt; provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or the specific payment of
interest on or principal of the U.S. Government Obligation evidenced by such depository receipt.

     “Yield to Maturity” means, as the context may require, the yield to maturity (i) on a series
of Securities or (ii) if the Securities of a series are issuable from time to time, on a Security
of such series, calculated at the time of issuance of such series in the case of clause (i) or at
the time of issuance of such Security of such series in the case of clause (ii), or, if applicable,
at the most recent redetermination of interest on such series or on such Security, and calculated
in accordance with the constant interest method or such other accepted financial practice as is
specified in the terms of such Security.

6

 

     Section 1.02. Other Definitions. Each of the following terms is defined in the
section set forth opposite such term:

	 	 	 	 	 
	Term	 	Section
	 
	 	 	 	 
	Authenticating Agent
	 	 	2.02	 
	Cash Transaction
	 	 	7.03	 
	Dollars
	 	 	4.02	 
	Event of Default
	 	 	6.01	 
	Judgment Currency
	 	 	10.15	(a)
	mandatory sinking fund payment
	 	 	3.05	 
	optional sinking fund payment
	 	 	3.05	 
	Paying Agent
	 	 	2.05	 
	record date
	 	 	2.04	 
	Registrar
	 	 	2.05	 
	Required Currency
	 	 	10.15	(a)
	Security Register
	 	 	2.05	 
	self-liquidating paper
	 	 	7.03	 
	sinking fund payment date
	 	 	3.05	 
	tranche
	 	 	2.14	 

     Section 1.03. Incorporation of Trust Indenture Act by Reference. Whenever this
Indenture refers to a provision of the Trust Indenture Act, the provision is incorporated by
reference in and made a part of this Indenture. The following terms used in this Indenture that
are defined by the Trust Indenture Act have the following meanings:

     “indenture securities” means the Securities;

     “indenture security holder” means a Holder or a Securityholder;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

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

     All other terms used in this Indenture that are defined by the Trust Indenture Act, defined by
reference in the Trust Indenture Act to another statute or defined by a rule of the Commission and
not otherwise defined herein have the meanings assigned to them therein.

     Section 1.04. Rules of Construction. Unless the context otherwise requires:

7

 

     (a) an accounting term not otherwise defined has the meaning assigned to it
in accordance with GAAP;

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

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

     (d) all references to Sections or Articles refer to Sections or Articles of
this Indenture unless otherwise indicated; and

     (e) use of masculine, feminine or neuter pronouns should not be deemed a
limitation, and the use of any such pronouns should be construed to include, where
appropriate, the other pronouns.

ARTICLE 2

The Securities

     Section 2.01. Form and Dating. The Securities of each series shall be substantially
in such form or forms (not inconsistent with this Indenture) as shall be established by or pursuant
to one or more Board Resolutions or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have imprinted or otherwise reproduced thereon such legend or
legends or endorsements, not inconsistent with the provisions of this Indenture, as may be required
to comply with any law, or with any rules of any securities exchange or usage, all as may be
determined by the Officers executing such Securities as evidenced by their execution of the
Securities.

     Section 2.02. Execution And Authentication. Two Officers shall execute the
Securities for the Company by facsimile or manual signature in the name and on behalf of the
Company. If an Officer whose signature is on a Security no longer holds that office at the time
the Security is authenticated, the Security shall nevertheless be valid.

     The Trustee, at the expense of the Company, may appoint an authenticating agent (the
“Authenticating Agent”) to authenticate Securities. The Authenticating Agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by
the Trustee includes authentication by such Authenticating Agent.

     A Security shall not be valid until the Trustee or Authenticating Agent manually signs the
certificate of authentication on the Security by an authorized

8

 

signatory. The signature shall be conclusive evidence that the Security has been
authenticated under 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 the applicable documents referred to below in this Section, and the
Trustee shall thereupon authenticate and deliver such Securities to or upon the written order of
the Company. In authenticating any Securities of a series, the Trustee shall be entitled to
receive prior to the authentication of any Securities of such series, and (subject to Article 7)
shall be fully protected in relying upon, unless and until such documents have been superseded or
revoked:

     (a) any Board Resolution and/or executed supplemental indenture referred to
in Sections 2.01 and 2.03 by or pursuant to which the forms and terms of the Securities of
that series were established;

     (b) an Officers’ Certificate setting forth the form or forms and terms of the
Securities, stating that the form or forms and terms of the Securities of such series have
been, or, in the case of a Periodic Offering, will be when established in accordance with
such procedures as shall be referred to therein, established in compliance with this
Indenture; and

     (c) an Opinion of Counsel substantially to the effect that the form or forms
and terms of the Securities of such series have been, or, in the case of a Periodic
Offering, will be when established in accordance with such procedures as shall be referred
to therein, established in compliance with this Indenture and that the supplemental
indenture, to the extent applicable, and Securities have been duly authorized and, if
authenticated in accordance with the provisions of the Indenture and delivered to and duly
paid for by the purchasers thereof on the date of such opinion, would be entitled to the
benefits of the Indenture and would be valid and binding obligations of the Company,
enforceable against the Company in accordance with their respective terms, subject to
bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws
affecting creditors’ rights generally, general principles of equity, and covering such
other matters as shall be specified therein and as shall be reasonably requested by the
Trustee.

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

     Notwithstanding the provisions of Sections 2.01 and 2.02, if, in connection with a Periodic
Offering, all Securities of a series are not to be originally issued at one time, it shall not be
necessary to deliver the Board Resolution otherwise

9

 

required pursuant to Section 2.01 or the written order, Officers’ Certificate and Opinion of
Counsel otherwise required pursuant to Section 2.02 at or prior to the authentication of each
Security of such series if such documents are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

     With respect to Securities of a series offered in a Periodic Offering, the Trustee may rely,
as to the authorization by the Company of any of such Securities, the forms and terms thereof and
the legality, validity, binding effect and enforceability thereof, upon the Opinion of Counsel and
the other documents delivered pursuant to Sections 2.01 and 2.02, as applicable, in connection with
the first authentication of Securities of such series.

     If the Company shall establish pursuant to Section 2.03 that the Securities of a series or a
portion thereof are to be issued in the form of one or more Global Securities, then the Company
shall execute and the Trustee shall authenticate and deliver one or more Global Securities that (i)
shall represent and shall be denominated in an amount equal to the aggregate Principal amount of
all of the Securities of such series issued in such form and not yet cancelled, (ii) shall be
registered in the name of the Depositary for such Global Security or Securities or the nominee of
such Depositary, (iii) shall be delivered by the Trustee to such Depositary or its custodian or
pursuant to such Depositary’s instructions and (iv) shall bear a legend substantially to the
following effect: “Unless and until it is exchanged in whole or in part for Securities in
definitive registered form, this Security may not be transferred except as a whole by the
Depositary to the nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.”

     Section 2.03. Amount Unlimited; Issuable in Series. The aggregate Principal amount
of Securities which may be authenticated and delivered under this Indenture is unlimited.

     The Securities may be issued in one or more series and shall be subordinated to the Senior
Indebtedness pursuant to the provisions of Article 11 hereof. There shall be established in or
pursuant to Board Resolution or one or more indentures supplemental hereto, prior to the initial
issuance of Securities of any series, subject to the last sentence of this Section 2.03,

     (a) the designation of the Securities of the series, which shall distinguish the
Securities of the series from the Securities of all other series;

     (b) any limit upon the aggregate Principal amount of the Securities of the series that
may be authenticated and delivered under this Indenture and any limitation on the ability of the
Company to increase such aggregate Principal amount after the initial issuance of the Securities of
that series (except for Securities authenticated and delivered upon registration of transfer of, or in

10

 

exchange for, or in lieu of, or upon redemption of, other Securities of the series pursuant hereto);

     (c) the date or dates on which the Principal of the Securities of the series is
payable (which date or dates may be fixed or extendible);

     (d) the rate or rates (which may be fixed or variable) per annum at which the
Securities of the series shall bear interest, if any, the date or dates from which such interest
shall accrue, on which such interest shall be payable and on which a record shall be taken for the
determination of Holders to whom interest is payable and/or the method by which such rate or rates
or date or dates shall be determined;

     (e) if other than as provided in Section 4.02, the place or places where the Principal
of and any interest on Securities of the series shall be payable, any Securities of the series may
be surrendered for exchange, and notices, demands to or upon the Company in respect of the
Securities of the series and this Indenture may be served;

     (f) the right, if any, of the Company to redeem Securities of the series, in whole or
in part, at its option and the period or periods within which, the price or prices at which and any
terms and conditions upon which Securities of the series may be so redeemed, pursuant to any
sinking fund or otherwise;

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

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

     (i) 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;

     (j) if other than the coin or currency in which the Securities of the series are
denominated, the coin or currency in which payment of the Principal of or interest on the
Securities of the series shall be payable or if the amount of payments of Principal of and/or
interest on the Securities of the series may be determined with reference to an index based on a
coin or currency other than that in which the Securities of the series are denominated, the manner
in which such amounts shall be determined;

11

 

     (k) if other than the currency of the United States of America, the currency or
currencies, including composite currencies, in which payment of the Principal of and interest on
the Securities of the series shall be payable, and the manner in which any such currencies shall be
valued against other currencies in which any other Securities shall be payable;

     (l) whether the Securities of the series or any portion thereof will be issuable as
Global Securities;

     (m) whether and under what circumstances the Company will pay additional amounts on
the Securities of the series held by a Person who is not a U.S. person in respect of any tax,
assessment or governmental charge withheld or deducted and, if so, whether the Company will have
the option to redeem such Securities rather than pay such additional amounts;

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

     (o) any trustees, depositaries, authenticating or paying agents, transfer agents or
the registrar or any other agents with respect to the Securities of the series;

     (p) provisions, if any, for the defeasance of the Securities of the series (including
provisions permitting defeasance of less than all Securities of the series), which provisions may
be in addition to, in substitution for, or in modification of (or any combination of the foregoing)
the provisions of Article 8;

     (q) if the Securities of the series are issuable in whole or in part as one or more
Global Securities, the identity of the Depositary or common Depositary for such Global Securities;

     (r) any other Events of Default or covenants with respect to the Securities of the
series; and

     (s) any other terms of the Securities of the series (which terms shall not be
inconsistent with the provisions of this Indenture).

     All Securities of any one series shall be substantially identical, except as to date and
denomination, except in the case of any Periodic Offering and except as may otherwise be provided
by or pursuant to the Board Resolution referred to above or as set forth in any such indenture
supplemental hereto. All Securities of any one series need not be issued at the same time and may
be issued from time to time, consistent with the terms of this Indenture, if so provided by or
pursuant to such Board Resolution or in any such indenture supplemental hereto and any

12

 

forms and terms of Securities to be issued from time to time may be completed and established
from time to time prior to the issuance thereof by procedures described in such Board Resolution or
supplemental indenture.

     Unless otherwise expressly provided with respect to a series of Securities, the aggregate
Principal amount of a series of Securities may be increased and additional Securities of such
series may be issued up to the maximum aggregate Principal amount authorized with respect to such
series as increased.

     Section 2.04. Denomination and Date of Securities; Payments of Interest. The
Securities of each series shall be issuable in denominations established as contemplated by Section
2.03 or, if not so established with respect to Securities of any series, in denominations of $1,000
and any integral multiple thereof. The Securities of each series shall be numbered, lettered or
otherwise distinguished in such manner or in accordance with such plan as the Officers of the
Company executing the same may determine, as evidenced by their execution thereof.

     Unless otherwise specified with respect to a series of Securities, each Security shall be
dated the date of its authentication. The Securities of each series shall bear interest, if any,
from the date, and such interest shall be payable on the dates, established as contemplated by
Section 2.03.

     The Person in whose name any Security of any series is registered at the close of business on
any record date applicable to a particular series with respect to any interest payment date for
such series shall be entitled to receive the interest, if any, payable on such interest payment
date notwithstanding any transfer or exchange of such Security subsequent to the record date and
prior to such interest payment date, except if and to the extent the Company shall default in the
payment of the interest due on such interest payment date for such series, in which case the
provisions of Section 2.13 shall apply. The term “record date” as used with respect to any
interest payment date (except a date for payment of defaulted interest) for the Securities of any
series shall mean the date specified as such in the terms of the Securities of such series
established as contemplated by Section 2.03, or, if no such date is so established, the fifteenth
day next preceding such interest payment date, whether or not such record date is a Business Day.

     Section 2.05. Registrar and Paying Agent; Agents Generally. The Company shall
maintain an office or agency where Securities may be presented for registration, registration of
transfer or for exchange (the “Registrar”) and an office or agency where Securities may be
presented for payment (the “Paying Agent”), which shall be in the Borough of Manhattan, The City of
New York. The Company shall cause the Registrar to keep a register of the Securities and of their
registration, transfer and exchange (the “Security Register”). The Company may have one or more
additional Paying Agents or transfer agents with respect to any series.

13

 

     The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture and the Trust
Indenture Act that relate to such Agent. The Company shall give prompt written notice to the
Trustee of the name and address of any Agent and any change in the name or address of an Agent. If
the Company fails to maintain at least one Registrar or Paying Agent in the State of New York, the
Trustee shall act as such. The Company may remove any Agent upon written notice to such Agent and
the Trustee and any Agent may resign upon written notice to the Company and the Trustee. The
Company or any Affiliate of the Company may act as Paying Agent or Registrar; provided that neither
the Company nor an Affiliate of the Company shall act as Paying Agent in connection with the
defeasance of the Securities or the discharge of this Indenture under Article 8.

     The Company initially appoints the Trustee as Registrar, Paying Agent and Authenticating
Agent. If, at any time, the Trustee is not the Registrar, the Registrar shall make available to
the Trustee ten days prior to each interest payment date and at such other times as the Trustee may
reasonably request the names and addresses of the Holders as they appeared in the Security Register
on the record date for such interest payment date.

     Section 2.06. Paying Agent to Hold Money in Trust. Not later than 10:00 a.m. New
York City time on the Business Day prior to the due date of any Principal or interest on any
Securities, the Company shall deposit with the Paying Agent money in immediately available funds
sufficient to pay such Principal or interest. The Company shall require each Paying Agent other
than the Trustee to agree in writing that such Paying Agent shall hold in trust for the benefit of
the Holders of such Securities or the Trustee all money held by the Paying Agent for the payment of
Principal of and interest on such Securities and shall promptly notify the Trustee of any default
by the Company in timely making any such payment. The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee and account for any funds disbursed, and the
Trustee may at any time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed. Upon doing so, the Paying Agent shall have no further liability for the
money so paid over to the Trustee. If the Company or any Affiliate of the Company acts as Paying
Agent, it will, in accordance with the times set forth above, segregate and hold in a separate
trust fund for the benefit of the Holders thereof a sum of money sufficient to pay such Principal
or interest so becoming due until such sum of money shall be paid to such Holders or otherwise
disposed of as provided in this Indenture, and will promptly notify the Trustee in writing of its
action or failure to act as required by this Section.

     Section 2.07. Transfer and Exchange. At the option of the Holder thereof, Securities
of any series (other than a Global Security, except as set forth below) may be exchanged for a
Security or Securities of such series and tenor having

14

 

authorized denominations and an equal aggregate Principal amount, upon surrender of such
Securities to be exchanged at the agency of the Company that shall be maintained for such purpose
in accordance with Section 2.05 and upon payment, if the Company shall so require, of the charges
hereinafter provided. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

     Upon surrender for registration of transfer of any Security of a series at the agency of the
Company that shall be maintained for that purpose in accordance with Section 2.05 and upon payment,
if the Company shall so require, of the charges hereinafter provided, the Company shall execute,
and the Trustee shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of the same series, of any authorized denominations and of
like tenor and aggregate Principal amount.

     All Securities presented for registration of transfer, exchange, redemption or payment shall
be duly endorsed by, or be accompanied by a written instrument or instruments of transfer in form
satisfactory to the Company and the Trustee duly executed by, the holder or his attorney duly
authorized in writing.

     The Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any exchange or registration of transfer of
Securities. No service charge shall be made for any such transaction.

     Notwithstanding any other provision of this Section 2.07, unless and until it is exchanged in
whole or in part for Securities in definitive registered form, a Global Security representing all
or a portion of the Securities of a series may not be transferred except as a whole by the
Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to
a successor Depositary for such series or a nominee of such successor Depositary.

     None of the Trustee or any Agent shall: (i) have any duty to monitor compliance with or with
respect to any securities or tax laws (including but not limited to any U.S. federal or state or
other securities or tax laws) or (ii) except as specifically provided herein, have any duty to
obtain documentation on any transfers or exchanges of the Securities.

     If at any time the Depositary for any Global Securities of any series notifies the Company
that it is unwilling or unable to continue as Depositary for such Global Securities or if at any
time the Depositary for such Global Securities shall no longer be eligible under applicable law,
the Company shall appoint a successor Depositary eligible under applicable law with respect to such
Global Securities. If a successor Depositary eligible under applicable law for such

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Global Securities is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such ineligibility, the Company will execute, and the Trustee, upon
receipt of the Company’s order for the authentication and delivery of definitive non-global
Securities of such series and tenor, will authenticate and deliver definitive non-global Securities
of such series and tenor, in any authorized denominations, in an aggregate Principal amount equal
to the Principal amount of such Global Securities, in exchange for such Global Securities.

     The Company may at any time and in its sole discretion and subject to the procedures of the
Depositary determine that any Global Securities of any series shall no longer be maintained in
global form. In such event the Company will execute, and the Trustee, upon receipt of the
Company’s order for the authentication and delivery of definitive non-global Securities of such
series and tenor, will authenticate and deliver, definitive non-global Securities of such series
and tenor in any authorized denominations, in an aggregate Principal amount equal to the Principal
amount of such Global Securities, in exchange for such Global Securities.

     Any time the Securities of any series are not in the form of Global Securities pursuant to the
preceding two paragraphs, the Company agrees to supply the Trustee with a reasonable supply of
definitive non-global Securities without the legend required by Section 2.02 and the Trustee agrees
to hold such Securities in safekeeping until authenticated and delivered pursuant to the terms of
this Indenture.

     If established by the Company pursuant to Section 2.03 with respect to any Global Security,
the Depositary for such Global Security may surrender such Global Security in exchange in whole or
in part for Securities of the same series and tenor in definitive registered form on such terms as
are acceptable to the Company and such Depositary. Thereupon, the Company shall execute, and the
Trustee shall authenticate and deliver, without service charge,

     (a) to the Person specified by such Depositary new definitive non-global
Securities of the same series and tenor, of any authorized denominations as requested by
such Person, in an aggregate Principal amount equal to and in exchange for such Person’s
beneficial interest in the Global Security; and

     (b) to such Depositary a new Global Security in a denomination equal to the
difference, if any, between the Principal amount of the surrendered Global Security and
the aggregate Principal amount of definitive non-global Securities authenticated and
delivered pursuant to clause (a) above.

     Definitive non-global Securities issued in exchange for a Global Security pursuant to this
Section 2.07 shall be registered in such names and in such

16

 

authorized denominations as the Depositary for such Global Security shall instruct pursuant to
written instructions from its direct or indirect participants to the Trustee. The Trustee shall
deliver such Securities to or as directed in writing by the Persons in whose names such Securities
are so registered.

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

     The Registrar shall not be required (i) to issue, authenticate, register the transfer of or
exchange Securities of any series for a period of 15 days before a selection of such Securities to
be redeemed or (ii) to register the transfer of or exchange any Security selected for redemption in
whole or in part.

     None of the Company, the Trustee nor any Agent will have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial interests in any
Global Securities or for maintaining, supervising or reviewing any records relating to such
beneficial interests.

     Section 2.08. Replacement Securities. If any mutilated Security is surrendered to
the Trustee, the Company shall execute and the Trustee shall authenticate and deliver, in exchange
for such mutilated Security, a new Security of the same series and of like tenor and Principal
amount and bearing a number not contemporaneously outstanding.

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

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security (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 may be required by them to save each of them and any agent of any of them harmless, and in the
case of destruction, loss or theft, evidence satisfactory to the Company and the Trustee and any
agent of them of the destruction, loss or theft of such Security and the ownership thereof.

17

 

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

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

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

     Section 2.09. Outstanding Securities. Securities outstanding at any time are all
Securities that have been authenticated by the Trustee except for those cancelled by it, those
delivered to it for cancellation, those described in this Section as not outstanding and those that
have been defeased pursuant to Section 8.05.

     If a Security is replaced pursuant to Section 2.08, it ceases to be outstanding unless and
until the Trustee and the Company receive proof satisfactory to them that the replaced Security is
held by a protected purchaser.

     If the Paying Agent (other than the Company or an Affiliate of the Company) holds on the
maturity date or any redemption date or date for repurchase of the Securities money sufficient to
pay Securities payable or to be redeemed or repurchased on that date, then on and after that date
such Securities cease to be outstanding and interest on them shall cease to accrue.

     A Security does not cease to be outstanding because the Company or one of its Affiliates holds
such Security, provided, however, that, in determining whether the Holders of the requisite
Principal amount of the outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company or any Affiliate of
the Company shall be disregarded and deemed not to be outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities as to which a Responsible Officer of the
Trustee has received written notice to be so owned shall be so disregarded. Any Securities so
owned which are pledged by the Company, or by any Affiliate of the Company, as security for loans
or other obligations, otherwise than to another such Affiliate of the Company, shall be deemed to
be outstanding, if the pledgee is entitled pursuant to the terms of its pledge agreement and is
free to exercise in its or his discretion the

18

 

right to vote such securities, uncontrolled by the Company or by any such Affiliate.

     Section 2.10. Temporary Securities. Until definitive Securities of any series are
ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities
of such series. Temporary Securities of any series shall be substantially in the form of
definitive Securities of such series but may have insertions, substitutions, omissions and other
variations determined to be appropriate by the Officers executing the temporary Securities, as
evidenced by their execution of such temporary Securities. If temporary Securities of any series
are issued, the Company will cause definitive Securities of such series to be prepared without
unreasonable delay. After the preparation of definitive Securities of any series, the temporary
Securities of such series shall be exchangeable for definitive Securities of such series and tenor
upon surrender of such temporary Securities at the office or agency of the Company designated for
such purpose pursuant to Section 4.02, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities of any series the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like Principal amount of
definitive Securities of such series and tenor and authorized denominations. Until so exchanged,
the temporary Securities of any series shall be entitled to the same benefits under this Indenture
as definitive Securities of such series.

     Section 2.11. Cancellation. The Company at any time may deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company may
have acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any
Securities previously authenticated hereunder which the Company has not issued and sold. The
Registrar, any transfer agent and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for transfer, exchange or payment. The Trustee shall cancel and dispose of in
accordance with its customary procedures all Securities surrendered for transfer, exchange, payment
or cancellation and shall deliver a certificate of disposition to the Company. The Company may not
issue new Securities to replace Securities it has paid in full or delivered to the Trustee for
cancellation.

     Section 2.12. CUSIP Numbers. The Company in issuing the Securities may use “CUSIP,”
“ISIN” and/or “CINS” numbers (if then generally in use), and the Trustee shall use CUSIP numbers,
ISIN numbers or CINS numbers, as the case may be, in notices of redemption or exchange as a
convenience to Holders and no representation shall be made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of redemption or exchange.

     Section 2.13. Defaulted Interest. If the Company defaults in a payment of interest
on the Securities, it shall pay, or shall deposit with the Paying Agent money in immediately
available funds sufficient to pay, the defaulted interest plus

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(to the extent lawful) any interest payable on the defaulted interest (as may be specified in
the terms thereof, established pursuant to Section 2.03) to the Persons who are Holders on a
subsequent special record date, which shall mean the 15th day next preceding the date fixed by the
Company for the payment of defaulted interest, whether or not such day is a Business Day. At least
15 days before such special record date, the Company shall mail to each Holder of such Securities
and to the Trustee a notice that states the special record date, the payment date and the amount of
defaulted interest to be paid.

     Section 2.14. Series May Include Tranches. A series of Securities may include one or
more tranches (each a “tranche”) of Securities, including Securities issued in a Periodic Offering.
The Securities of different tranches may have one or more different terms, including
authentication dates and public offering prices, but all the Securities within each such tranche
shall have identical terms, including authentication date and public offering price.
Notwithstanding any other provision of this Indenture, with respect to Sections 2.02 (other than
the fourth, sixth and seventh paragraphs thereof), 2.03, 2.04, 2.07, 2.08, 2.10, 3.01 through 3.05,
4.02, 6.01 through 6.14, 8.01 through 8.07, 9.02 and Section 10.07, if any series of Securities
includes more than one tranche, all provisions of such sections applicable to any series of
Securities shall be deemed equally applicable to each tranche of any series of Securities in the
same manner as though originally designated a series unless otherwise provided with respect to such
series or tranche pursuant to Section 2.03. In particular, and without limiting the scope of the
next preceding sentence, any of the provisions of such sections which provide for or permit action
to be taken with respect to a series of Securities shall also be deemed to provide for and permit
such action to be taken instead only with respect to Securities of one or more tranches within that
series (and such provisions shall be deemed satisfied thereby), even if no comparable action is
taken with respect to Securities in the remaining tranches of that series.

ARTICLE 3

Redemption

     Section 3.01. Applicability of Article. The provisions of this Article shall be
applicable to the Securities of any series which are redeemable before their maturity or to any
sinking fund for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 2.03 for Securities of such series.

     Section 3.02. Notice of Redemption; Partial Redemptions. Notice of redemption to the
Holders of Securities of any series to be redeemed as a whole or in part at the option of the
Company shall be given by mailing notice of such redemption by first class mail, postage prepaid,
at least 30 days and not more than 60 days prior to the date fixed for redemption to such Holders
of Securities of such series at their last addresses as they shall appear upon the Security
Register.

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Any notice which is mailed in the manner herein provided shall be conclusively presumed to
have been duly given, whether or not the Holder receives the notice. Failure to give notice by
mail, or any defect in the notice to the Holder of any Security of a series designated for
redemption as a whole or in part shall not affect the validity of the proceedings for the
redemption of any other Security of such series.

     The notice of redemption to each such Holder shall specify the Principal amount of each
Security of such series held by such Holder to be redeemed, the CUSIP numbers of the Securities to
be redeemed, the date fixed for redemption, the redemption price, or if not then ascertainable, the
manner of calculation thereof, the place or places of payment, that payment will be made upon
presentation and surrender of such Securities, that such redemption is pursuant to the mandatory or
optional sinking fund, or both, if such be the case, that interest accrued to the date fixed for
redemption will be paid as specified in such notice and that on and after said date interest
thereon or on the portions thereof to be redeemed will cease to accrue. In case any Security of a
series is to be redeemed in part only, the notice of redemption shall state the portion of the
Principal amount thereof to be redeemed and shall state that on and after the date fixed for
redemption, upon surrender of such Security, a new Security or Securities of such series and tenor
in Principal amount equal to the unredeemed portion thereof will be issued.

     The notice of redemption of Securities of any series to be redeemed at the option of the
Company shall be given by the Company or, at the Company’s written request which shall include the
information to be included in the notice to the Holders required by the preceding paragraph, by the
Trustee in the name and at the expense of the Company.

     On or before 10:00 a.m. New York City time on the Business Day prior to the redemption date
specified in the notice of redemption given as provided in this Section, the Company will deposit
with the Trustee or with one or more Paying Agents (or, if the Company is acting as its own Paying
Agent, set aside, segregate and hold in trust as provided in Section 2.06) an amount of money
sufficient to redeem on the redemption date all the Securities of such series so called for
redemption at the appropriate redemption price, together with accrued interest to the date fixed
for redemption. If all of the outstanding Securities of a series are to be redeemed, the Company
will deliver to the Trustee at least 10 days prior to the last date on which notice of redemption
may be given to Holders pursuant to the first paragraph of this Section 3.02 (or such shorter
period as shall be acceptable to the Trustee) an Officers’ Certificate stating that all such
Securities are to be redeemed. If less than all the outstanding Securities of a series are to be
redeemed, the Company will deliver to the Trustee at least 15 days prior to the last date on which
notice of redemption may be given to Holders pursuant to the first paragraph of this Section 3.02
(or such shorter period as shall be acceptable to the Trustee) an Officers’ Certificate stating the
aggregate Principal amount of such Securities to be redeemed. In the case of any redemption of
Securities (a) prior to

21

 

the expiration of any restriction on such redemption provided in the terms of such Securities
or elsewhere in this Indenture, or (b) pursuant to an election of the Company which is subject to a
condition specified in the terms of such Securities or elsewhere in this Indenture, the Company
shall deliver to the Trustee, prior to the giving of any notice of redemption to Holders pursuant
to this Section, an Officers’ Certificate evidencing compliance with such restriction or
condition.

     If less than all the Securities of a series are to be redeemed, the Trustee shall select, pro
rata, by lot or in such manner as it shall deem appropriate and fair, Securities of such series to
be redeemed in whole or in part. Securities may be redeemed in part in Principal amounts equal to
authorized denominations for Securities of such series. The Trustee shall promptly notify the
Company in writing of the Securities of such series selected for redemption and, in the case of any
Securities of such series selected for partial redemption, the Principal amount thereof to be
redeemed. For all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of any Security
redeemed or to be redeemed only in part, to the portion of the Principal amount of such Security
which has been or is to be redeemed.

     Section 3.03. Payment Of Securities Called For Redemption. If notice of redemption
has been given as above provided, the Securities or portions of Securities 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 on and after
such date (unless the Company shall default in the payment of such Securities at the redemption
price, together with interest accrued to such date) interest on the Securities or portions of
Securities so called for redemption shall cease to accrue, and, except as provided in Sections 7.12
and 8.02, such Securities shall cease from and after the date fixed for redemption to be entitled
to any benefit under this Indenture, and the Holders thereof shall have no right in respect of such
Securities except the right to receive the redemption price thereof and unpaid interest to the date
fixed for redemption. On presentation and surrender of such Securities at a place of payment
specified in said notice, said Securities or the specified portions thereof shall be paid and
redeemed by the Company at the applicable redemption price, together with interest accrued thereon
to the date fixed for redemption; provided that payment of interest becoming due on or prior to the
date fixed for redemption shall be payable to the Holders of such Securities registered as such on
the relevant record date subject to the terms and provisions of Sections 2.04 and 2.13 hereof.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the Principal shall, until paid or duly provided for, bear interest from the date fixed
for redemption at the rate of interest or Yield to Maturity (in the case of an Original Issue
Discount Security) borne by such Security.

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

     Section 3.04. Exclusion of Certain Securities from Eligibility for Selection for
Redemption. Securities shall be excluded from eligibility for selection for redemption if they are
identified by registration and certificate number in a written statement signed by an authorized
Officer of the Company and delivered to the Trustee at least 40 days prior to the last date on
which notice of redemption may be given as being owned of record or beneficially by, and not
pledged or hypothecated by, either (a) the Company or (b) an Affiliate of the Company.

     Section 3.05. Mandatory and Optional Sinking Funds. 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 the Securities of any series is herein referred to as an “optional sinking fund
payment.” The date on which a sinking fund payment is to be made is herein referred to as the
“sinking fund payment date.”

     In lieu of making all or any part of any mandatory sinking fund payment with respect to any
series of Securities in cash, the Company may at its option (a) deliver to the Trustee Securities
of such series theretofore purchased or otherwise acquired (except through a mandatory sinking fund
payment) by the Company or receive credit for Securities of such series (not previously so
credited) theretofore purchased or otherwise acquired (except as aforesaid) by the Company and
delivered to the Trustee for cancellation pursuant to Section 2.11, (b) receive credit for optional
sinking fund payments (not previously so credited) made pursuant to this Section, or (c) receive
credit for Securities of such series (not previously so credited) redeemed by the Company at the
option of the Company pursuant to the terms of such Securities or through any optional sinking fund
payment. Securities so delivered or credited shall be received or credited by the Trustee at the
sinking fund redemption price specified in such Securities.

     On or before the sixtieth day next preceding each sinking fund payment date for any series, or
such shorter period as shall be acceptable to the Trustee, the Company will deliver to the Trustee
an Officers’ Certificate (a) specifying the portion of the mandatory sinking fund payment to be
satisfied by payment of cash and the portion to be satisfied by credit of specified Securities of
such series and the basis for such credit, (b) stating that none of the specified Securities of
such series has theretofore been so credited, (c) stating that no defaults in the payment of
interest or Events of Default with respect to such series have occurred (which have not been waived
or cured) and are continuing and (d) stating whether or not the Company intends to exercise its
right to make an optional sinking fund payment with respect to such series and, if so, specifying
the amount of such

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optional sinking fund payment which the Company intends to pay on or before the next
succeeding sinking fund payment date. Any Securities of such series to be credited and required to
be delivered to the Trustee in order for the Company to be entitled to credit therefor as aforesaid
which have not theretofore been delivered to the Trustee shall be delivered for cancellation
pursuant to Section 2.11 to the Trustee with such Officers’ Certificate (or reasonably promptly
thereafter if acceptable to the Trustee). Such Officers’ Certificate shall be irrevocable and upon
its receipt by the Trustee the Company shall become unconditionally obligated to make all the cash
payments or delivery of Securities therein referred to, if any, on or before the next succeeding
sinking fund payment date. Failure of the Company, on or before any such sixtieth day, to deliver
such Officer’s Certificate and Securities specified in this paragraph, if any, shall not constitute
a default but shall constitute, on and as of such date, the irrevocable election of the Company (i)
that the mandatory sinking fund payment for such series due on the next succeeding sinking fund
payment date shall be paid entirely in cash without the option to deliver or credit Securities of
such series in respect thereof and (ii) that the Company will make no optional sinking fund payment
with respect to such series as provided in this Section.

     If the sinking fund payment or payments (mandatory or optional or both) to be made in cash on
the next succeeding sinking fund payment date plus any unused balance of any preceding sinking fund
payments made in cash shall exceed $50,000 (or a lesser sum if the Company shall so request with
respect to the Securities of any series), such cash shall be applied on the next succeeding sinking
fund payment date to the redemption of Securities of such series at the sinking fund redemption
price thereof together with accrued interest thereon to the date fixed for redemption. If such
amount shall be $50,000 (or such lesser sum) or less and the Company makes no such request then it
shall be carried over until a sum in excess of $50,000 (or such lesser sum) is available. The
Trustee shall select, in the manner provided in Section 3.02, for redemption on such sinking fund
payment date a sufficient Principal amount of Securities of such series to absorb said cash, as
nearly as may be, and shall (if requested in writing by the Company) inform the Company of the
serial numbers of the Securities of such series (or portions thereof) so selected. Securities
shall be excluded from eligibility for redemption under this Section if they are identified by
registration and certificate number in an Officers’ Certificate delivered to the Trustee at least
60 days prior to the sinking fund payment date as being owned of record or beneficially by, and not
pledged or hypothecated by either (a) the Company or (b) an Affiliate of the Company. The Trustee,
in the name and at the expense of the Company (or the Company, if it shall so request the Trustee
in writing) shall cause notice of redemption of the Securities of such series to be given in
substantially the manner provided in Section 3.02 (and with the effect provided in Section 3.03)
for the redemption of Securities of such series in part at the option of the Company. The amount
of any sinking fund payments not so applied or allocated to the redemption of Securities of such
series shall be added to the next cash sinking fund payment for such series and, together with such
payment, shall

24

 

be applied in accordance with the provisions of this Section. Any and all sinking fund moneys
held on the stated maturity date of the Securities of any particular series (or earlier, if such
maturity is accelerated), which are not held for the payment or redemption of particular Securities
of such series shall be applied, together with other moneys, if necessary, sufficient for the
purpose, to the payment of the Principal of, and interest on, the Securities of such series at
maturity.

     On or before 10:00 a.m. New York City time on the Business Day prior to the sinking fund
payment date, the Company shall pay to the Trustee in cash or by credit of Securities or shall
otherwise provide for the payment of all Principal and interest accrued to the date fixed for
redemption on Securities to be redeemed on the next following sinking fund payment date.

     The Trustee shall not redeem or cause to be redeemed any Securities of a series with sinking
fund moneys or mail any notice of redemption of Securities of such series by operation of the
sinking fund during the continuance of a Default in payment of interest on such Securities or of
any Event of Default except that, where the mailing of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed such Securities,
provided that it shall have received from the Company a sum sufficient for such redemption. Except
as aforesaid, any moneys in the sinking fund for such series at the time when any such Default or
Event of Default shall occur, and any moneys thereafter paid into the sinking fund, shall, during
the continuance of such Default or Event of Default, be deemed to have been collected under Article
6 and held for the payment of all such Securities. In case such Event of Default shall have been
waived as provided in Section 6.04 or the Default cured on or before the sixtieth day preceding the
sinking fund payment date in any year, such moneys shall thereafter be applied on the next
succeeding sinking fund payment date in accordance with this Section to the redemption of such
Securities.

ARTICLE 4

Covenants

     Section 4.01. Payment of Securities. The Company shall pay the Principal of and
interest on the Securities on the dates and in the manner provided in the Securities and this
Indenture. The interest on Securities (together with any additional amounts payable pursuant to
the terms of such Securities) shall be payable only to the Holders thereof (subject to Section
2.04) and at the option of the Company may be paid by mailing checks for such interest payable to
or upon the written order of such Holders at their last addresses as they appear on the Security
Register of the Company.

     Notwithstanding any provisions of this Indenture and the Securities of any series to the
contrary, if the Company and a Holder of any Security so agree, payments of interest on, and any
portion of the Principal of, such Holder’s

25

 

Security (other than interest payable at maturity or on any redemption or repayment date or
the final payment of Principal on such Security) shall be made by the Paying Agent, upon receipt
from the Company of immediately available funds by 10:00 A.M., New York City time on the Business
Day prior to the payment date (or such other time as may be agreed to between the Company and the
Paying Agent), directly to the Holder of at least $500,000 in aggregate Principal amount of
Securities (by Federal funds wire transfer or otherwise) if such Holder has delivered written
instructions to the Trustee 15 days prior to such payment date requesting that such payment be so
made and designating the bank account to which such payments shall be so made and in the case of
payments of Principal, surrenders the same to the Trustee in exchange for a Security or Securities
aggregating the same Principal amount as the unredeemed Principal amount of the Securities
surrendered. The Trustee shall be entitled to rely on the last instruction delivered by the Holder
pursuant to this Section 4.01 unless a new instruction is delivered 15 days prior to a payment
date.

     The Company shall pay interest on overdue Principal, and interest on overdue installments of
interest, to the extent lawful, at the rate per annum specified in the Securities.

     Section 4.02. Maintenance of Office or Agency. The Company will maintain in the
Borough of Manhattan, The City of New York an office or agency where Securities may be surrendered
for registration of transfer or exchange or for presentation for payment and where notices and
demands to or upon the Company in respect of the Securities and this Indenture may be served. The
Company hereby initially designates the Corporate Trust Office of the Trustee, located in New York,
New York, as such office or agency of the Company. The Company will give prompt written notice to
the Trustee of the location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices and demands may be
made or served at the address of the Trustee set forth in Section 10.02.

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

     Section 4.03. Securityholders’ Lists. The Company will furnish or cause to be
furnished to the Trustee a list in such form as the Trustee may reasonably require of the names and
addresses of the holders of the Securities pursuant to Section 312 of the Trust Indenture Act of
1939 (a) semi-annually not more than 5 days after each record date for the payment of semi-annual
interest on the

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Securities, as hereinabove specified, as of such record date, and (b) at such other times as
the Trustee may request in writing, within thirty days after receipt by the Company of any such
request as of a date not more than 15 days prior to the time such information is furnished.

     Section 4.04. Certificate to Trustee. The Company will furnish to the Trustee
annually, on or before a date not more than four months after the end of its fiscal year (which, on
the date hereof, is a calendar year), a brief certificate (which need not contain the statements
required by Section 10.04) from its principal executive, financial or accounting officer as to his
or her knowledge of the compliance of the Company with all conditions and covenants under this
Indenture (such compliance to be determined without regard to any period of grace or requirement of
notice provided under this Indenture) which certificate shall comply with the requirements of the
Trust Indenture Act.

     Section 4.05. Reports by the Company. The Company covenants 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 which the Company may be
required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act.

     Delivery of the above reports to the Trustee is for informational purposes only and the
Trustee’s receipt of such reports shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants in this Indenture (as to which the Trustee is entitled to rely
exclusively on an Officers’ Certificate) or any other agreement or document.

     Section 4.06. Additional Amounts. If the Securities of a series provide for the
payment of additional amounts, at least 10 days prior to the first interest payment date with
respect to that series of Securities and at least 10 days prior to each date of payment of
Principal of or interest on the Securities of that series if there has been a change with respect
to the matters set forth in the below-mentioned Officers’ Certificate, the Company shall furnish to
the Trustee and the Paying Agents, if other than the Trustee, an Officers’ Certificate instructing
the Trustee and such Paying Agents whether such payment of Principal of or interest on the
Securities of that series shall be made to Holders of the Securities of that series without
withholding or deduction for or on account of any tax, assessment or other governmental charge
described in the Securities of that series. If any such withholding or deduction shall be required,
then such Officers’ Certificate shall specify by country the amount, if any, required to be
withheld or deducted on such payments to such Holders and shall certify (i) that the Company shall
make such withholding or deduction and shall remit the relevant tax, assessment or other
governmental charge to the relevant taxing authority and (ii) the fact that additional amounts will
be payable and the amounts so payable to each Holder, and the Company shall pay to the Trustee or
such Paying Agents the additional amounts required to be paid by this Section. The Company
covenants to

27

 

indemnify each of the Trustee and any Paying Agents for, and to hold each of them harmless
against, any loss, liability or expense reasonably incurred without bad faith on its part arising
out of or in connection with actions taken or omitted by it in reliance on any Officers’
Certificate furnished pursuant to this Section. The provisions of this Section shall survive the
satisfaction and discharge of the Securities, the resignation or removal of the Trustee or any
Paying Agent and the payment of the Securities.

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

ARTICLE 5

Successor Corporation

     Section 5.01. When Company May Merge, Etc. The Company shall not consolidate with,
merge with or into, or sell, convey, transfer, lease or otherwise dispose of all or substantially
all of its property and assets (in one transaction or a series of related transactions) to, any
Person unless either (x) the Company shall be the continuing Person or (y) the Person (if other
than the Company) formed by such consolidation or into which the Company is merged or to which
properties and assets of the Company shall be sold, conveyed, transferred or leased shall be a
corporation organized and validly existing under the laws of the United States of America or any
jurisdiction thereof and shall expressly assume, by a supplemental indenture, executed and
delivered to the Trustee, all of the obligations of the Company on all of the Securities and under
this Indenture and the Company in the case of clauses (x) and (y) shall have delivered to the
Trustee (A) an Opinion of Counsel stating that such consolidation, merger or sale, conveyance,
transfer or lease and such supplemental indenture (if any) complies with this provision and that
all conditions precedent provided for herein relating to such transaction have been complied with
and that such supplemental indenture (if any) constitutes the legal, valid and binding obligation
of the Company and such successor enforceable against such entity in accordance with its terms,
subject to customary exceptions and (B) an Officers’ Certificate to the effect that immediately
after giving effect to such transaction, no Default shall have occurred and be continuing.

     Section 5.02. Successor Substituted. Upon any consolidation or merger, or any sale,
conveyance, transfer, lease or other disposition of all or substantially

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

ARTICLE 6

Default and Remedies

     Section 6.01. Events of Default. An “Event of Default” shall occur with respect to
the Securities of any series if:

     (a) the Company defaults in the payment of the Principal of any Security of such
series when the same becomes due and payable at maturity, upon acceleration, redemption or
mandatory repurchase, including as a sinking fund installment, or otherwise;

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

     (c) the Company defaults in the performance of or breaches any other covenant or
agreement of the Company in this Indenture with respect to any Security of such series and such
default or breach continues for a period of 30 consecutive days after written notice to the Company
by the Trustee or to the Company and the Trustee by the Holders of 25% or more in aggregate
Principal amount of the Securities of all series affected thereby specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

     (d) a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company in an involuntary case under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of the Company or for any substantial part
of its property or ordering the winding up or liquidation of its affairs, and such decree or order
shall remain unstayed and in effect for a period of 60 consecutive days;

     (e) the Company (i) commences a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consents to the entry of an order
for relief in an involuntary case under any such law, (ii) consents to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Company or for

29

 

all or substantially all of the property and assets of the Company or (iii) effects any
general assignment for the benefit of creditors; or

     (f) any other Event of Default established pursuant to Section 2.03 with respect to
the Securities of such series occurs.

     Section 6.02. Acceleration. (a) If an Event of Default other than as described in
clauses (d) or (e) of Section 6.01 with respect to the Securities of any series then outstanding
occurs and is continuing, then, and in each and every such case, except for any series of
Securities the Principal of which 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 any such series
then outstanding hereunder (each such series treated as a separate class) by notice in writing to
the Company (and to the Trustee if given by Securityholders), may declare the entire Principal (or,
if the Securities of any such series are Original Issue Discount Securities, such portion of the
Principal amount as may be specified in the terms of such series established pursuant to Section
2.03) of all Securities of such series, and the interest accrued thereon, if any, to be due and
payable immediately, and upon any such declaration the same shall become immediately due and
payable.

     (b) If an Event of Default described in clause (d) or (e) of Section 6.01 occurs and
is continuing, then the Principal amount (or, if any Securities are Original Issue Discount
Securities, such portion of the Principal as may be specified in the terms thereof established
pursuant to Section 2.03) of all the Securities then outstanding and interest accrued thereon, if
any, shall be and become immediately due and payable, without any notice or other action by any
Holder or the Trustee, to the full extent permitted by applicable law.

     The foregoing provisions, however, are subject to the condition that if, at any time after the
Principal (or, if the Securities are Original Issue Discount Securities, such portion of the
Principal as may be specified in the terms thereof established pursuant to Section 2.03) of the
Securities of any series (or of all the Securities, as the case may be) shall have been so declared
or become 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 Company shall pay or shall deposit
with the Trustee a sum sufficient to pay all matured installments of interest upon all the
Securities of each such series (or of all the Securities, as the case may be) and the Principal of
any and all Securities of each such series (or of all the Securities, as the case may be) which
shall have become due otherwise than by acceleration (with interest upon such Principal and, to the
extent that payment of such interest is enforceable under applicable law, on overdue installments
of interest, at the same rate as the rate of interest or Yield to Maturity (in the case of Original
Issue Discount Securities) specified in the Securities of each such series to the date of such
payment or deposit) and such amount as shall be sufficient to cover all amounts owing the Trustee
under Section 7.07, and if any and all Events of Default under the Indenture, other than the
non-payment of the Principal of Securities which shall have become due by

30

 

acceleration, shall have been cured, waived or otherwise remedied as provided herein, then and
in every such case the Holders of a majority in aggregate Principal amount of all the then
outstanding Securities of all such series that have been accelerated (voting as a single class), by
written notice to the Company and to the Trustee, may waive all defaults with respect to all such
series (or with respect to all the Securities, as the case may be) and rescind and annul such
declaration and its consequences, but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent default or shall impair any right consequent thereon.

     For all purposes under this Indenture, if a portion of the Principal of any Original Issue
Discount Securities shall have been accelerated and declared or become due and payable pursuant to
the provisions hereof, then, from and after such declaration, unless such declaration has been
rescinded and annulled, the Principal amount of such Original Issue Discount Securities shall be
deemed, for all purposes hereunder, to be such portion of the Principal thereof as shall be due and
payable as a result of such acceleration, and payment of such portion of the Principal thereof as
shall be due and payable as a result of such acceleration, together with interest, if any, thereon
and all other amounts owing thereunder, shall constitute payment in full of such Original Issue
Discount Securities.

     Section 6.03. Other Remedies. If a payment default or an Event of Default with
respect to the Securities of any series occurs and is continuing, the Trustee may pursue, in its
own name or as trustee of an express trust, any available remedy by proceeding at law or in equity
to collect the payment of Principal of and interest on the Securities of such series or to enforce
the performance of any provision of the Securities of such series or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding.

     Section 6.04. Waiver of Past Defaults. Subject to Sections 6.02, 6.07 and 9.02, the
Holders of at least a majority in Principal amount (or, if the Securities are Original Issue
Discount Securities, such portion of the Principal as is then accelerable under Section 6.02) of
the outstanding Securities of all series affected (voting as a single class), by notice to the
Trustee, may waive an existing Default or Event of Default with respect to the Securities of such
series and its consequences, except a Default in the payment of Principal of or interest on any
Security as specified in clauses (a) or (b) of Section 6.01 or in respect of a covenant or
provision of this Indenture which cannot be modified or amended without the consent of the Holder
of each outstanding Security affected. Upon any such waiver, such Default shall cease to exist,
and any Event of Default with respect to the Securities of such series arising therefrom shall be
deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right consequent thereto.

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     Section 6.05. Control by Majority. Subject to Sections 7.01 and 7.02(e), the Holders
of at least a majority in aggregate Principal amount (or, if any Securities are Original Issue
Discount Securities, such portion of the Principal as is then accelerable under Section 6.02) of
the outstanding Securities of all series affected (voting as a single class) may direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee with respect to the Securities of such series by this
Indenture; provided, that the Trustee may refuse to follow any direction that conflicts with law or
this Indenture, that may involve the Trustee in personal liability or that the Trustee determines
in good faith may be unduly prejudicial to the rights of Holders not joining in the giving of such
direction; and provided further, that the Trustee may take any other action it deems proper that is
not inconsistent with any directions received from Holders of Securities pursuant to this Section
6.05.

     Section 6.06. Limitation on Suits. No Holder of any Security of any series may
institute any proceeding, judicial or otherwise, with respect to this Indenture or the Securities
of such series, or for the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

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

     (b) the Holders of at least 25% in aggregate Principal amount of outstanding
Securities of all such series affected shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

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

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

     (e) during such 60-day period, the Holders of a majority in aggregate
Principal amount of the outstanding Securities of all such affected series have not given
the Trustee a direction that is inconsistent with such written request.

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

     Section 6.07. Rights of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder of a Security to

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receive payment of Principal
of or interest, if any, on such Holder’s Security on or after the respective due dates expressed on such Security, or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

     Section 6.08. Collection Suit by Trustee. If an Event of Default with respect to the
Securities of any series in payment of Principal or interest specified in clause (a) or (b) of
Section 6.01 occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount (or such portion thereof as
specified in the terms established pursuant to Section 2.03 of Original Issue Discount Securities)
of Principal of, and accrued interest remaining unpaid on, together with interest on overdue
Principal of, and, to the extent that payment of such interest is lawful, interest on overdue
installments of interest on, the Securities of such series, in each case at the rate or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in such Securities, and such
further amount as shall be sufficient to cover all amounts owing the Trustee under Section 7.07.

     Section 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for amounts due the Trustee under Section 7.07) and the Holders
allowed in any judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered to collect and
receive any moneys, securities or other property payable or deliverable upon conversion or exchange
of the Securities or upon any such claims and to distribute the same, and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it under Section 7.07. Nothing herein contained shall be deemed
to empower the Trustee to authorize or consent to, or accept or adopt on behalf of any Holder, any
plan of reorganization, arrangement, adjustment or composition affecting the Securities or the
rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

     Section 6.10. Application of Proceeds. Any moneys collected by the Trustee pursuant
to this Article in respect of the Securities of any series 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 interest, upon presentation of the several Securities in respect of which
moneys have been collected and noting thereon the payment, or issuing Securities of such series and
tenor in reduced Principal amounts in exchange for the presented Securities of such series and
tenor if only partially paid, or upon surrender thereof if fully paid:

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     FIRST: To the payment of all amounts due the Trustee under Section 7.07 applicable
to the Securities of such series in respect of which moneys have been collected;

     SECOND: Subject to Article 11, in case the Principal of the Securities of such
series in respect of which moneys have been collected shall not have become and be then
due and payable, to the payment of interest on the Securities of such series in default in
the order of the maturity of the installments of such interest, with interest (to the
extent that such interest has been collected by the Trustee) upon the overdue installments
of interest at the same rate as the rate of interest or Yield to Maturity (in the case of
Original Issue Discount Securities) specified in such Securities, such payments to be made
ratably to the persons entitled thereto, without discrimination or preference;

     THIRD: Subject to Article 11, in case any Principal of the Securities of such series
in respect of which moneys have been collected shall have become and shall be then due and
payable, to the payment of the whole amount then owing and unpaid upon all the Securities
of such series for Principal and interest, with interest upon the overdue Principal, and
(to the extent that such interest has been collected by the Trustee) upon overdue
installments of interest at the same rate as the rate of interest or Yield to Maturity (in
the case of Original Issue Discount Securities) specified in the Securities of such
series; and in case such moneys shall be insufficient to pay in full the whole amount so
due and unpaid upon the Securities of such series, then to the payment of such Principal
and interest or Yield to Maturity, without preference or priority of Principal over
interest or Yield to Maturity, or of interest or Yield to Maturity over Principal, or of
any installment of interest over any other installment of interest, or of any Security of
such series over any other Security of such series, ratably to the aggregate of such
Principal and accrued and unpaid interest or Yield to Maturity; and

     FOURTH: To the payment of the remainder, if any, to the Company or any other Person
lawfully entitled thereto.

     Section 6.11. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then, and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored to their former positions hereunder and
thereafter all rights and remedies of the Company, Trustee and the Holders shall continue as though
no such proceeding had been instituted.

     Section 6.12. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any

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action taken or omitted by it as Trustee, in either case in respect to the Securities of any
series, a court may require any party litigant in such suit (other than the Trustee) to file an
undertaking to pay the costs of the suit, and the court may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant (other than the Trustee) in the suit having
due regard to the merits and good faith of the claims or defenses made by the party litigant. This
Section 6.12 does not apply to a suit by a Holder pursuant to Section 6.07, a suit instituted by
the Trustee or a suit by Holders of more than 10% in Principal amount of the outstanding Securities
of such series.

     Section 6.13. Rights and Remedies Cumulative. Except as otherwise provided with
respect to the replacement or payment of mutilated, destroyed, lost or wrongfully taken Securities
in Section 2.08, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

     Section 6.14. Delay or Omission not Waiver. No delay or omission of the Trustee or
of any Holder to exercise any right or remedy accruing upon any Event of Default shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article 6 or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by
the Holders, as the case may be.

ARTICLE 7

Trustee

     Section 7.01. General. The duties and responsibilities of the Trustee shall be as
provided by the Trust Indenture Act and as set forth herein. Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, unless it receives indemnity satisfactory to it against any loss,
liability or expense. Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Article 7.

     Section 7.02. Certain Rights of Trustee. Subject to Trust Indenture Act Sections
315(a) through (d):

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     (a) the Trustee may conclusively rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, Officers’ Certificate, Opinion of
Counsel, statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper person or
persons. The Trustee need not investigate any fact or matter stated in the document, but
the Trustee, in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit;

     (b) before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate and/or an Opinion of Counsel, which shall conform to Section 10.04
and shall cover such other matters as the Trustee may reasonably request. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance on
such certificate or opinion. Subject to Sections 7.01 and 7.02, whenever in the
administration of the trusts of this Indenture the Trustee shall deem it necessary or
desirable that a matter be proved or established prior to taking or suffering or omitting
any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of 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 bad faith on the part of the Trustee,
shall be full warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture upon the faith thereof;

     (c) the Trustee may act through its attorneys and agents not regularly in its
employ and shall not be responsible for the misconduct or negligence of any agent or
attorney appointed with due care;

     (d) any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by an Officers’ Certificate (unless other evidence in
respect thereof be herein specifically prescribed); and any Board Resolution may be
evidenced to the Trustee by a copy thereof certified by the secretary or an assistant
secretary of the Company;

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

     (f) the Trustee shall not be liable for any action it takes or omits to take
in good faith that it believes to be authorized or within its rights or powers or for any
action it takes or omits to take in accordance

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with the direction of the Holders in accordance with Section 6.05 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;

     (g) 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, suffered or omitted by it hereunder in good faith and in
reliance thereon; and

     (h) prior to the occurrence of an Event of Default hereunder and after the
curing or waiving of all Events of Default, the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate, Officers’
Certificate, Opinion of Counsel, Board Resolution, statement, instrument, opinion, report,
notice, request, consent, order, approval, appraisal, bond, debenture, note, coupon,
security, or other paper or document unless requested in writing so to do by the Holders
of not less than a majority in aggregate Principal amount of the Securities of all series
affected then outstanding; provided that, if the payment within a reasonable time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture, the Trustee may
require reasonable indemnity satisfactory to it against such expenses or liabilities as a
condition to proceeding.

     (i) Except as otherwise provided by the Trust Indenture Act, the duties and obligations of the
Trustee with respect to the Securities shall be determined solely by the express provisions of this
Indenture and the Securities, and the Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Indenture and the Securities, and
no implied covenants or obligations shall be read into this Indenture or the Securities against it.

     (j) Notwithstanding any provision herein to the contrary, in no event shall the Trustee be
liable for any failure or delay in the performance of its obligations under this Indenture because
of circumstances beyond its control, including, but not limited to, acts of God, flood, war
(whether declared or undeclared), terrorism, fire, riot, strikes or work stoppages for any reason,
embargo, government action, including any laws, ordinances, regulations or the like which restrict
or prohibit the providing of the services contemplated by this Indenture, inability to obtain
material, equipment, or communications or computer facilities, or the failure of equipment or
interruption of communications or computer facilities, and other causes beyond its control whether
or not of the same class or kind as specifically named above.

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     (k) The Trustee may at any time request that the Company deliver an Officers’ Certificate
setting forth the specimen signatures and the names of individuals and/or titles of Officers
authorized at such time to take specified actions pursuant to this Indenture, which Officers’
Certificate may be signed by any Person authorized to sign an Officers’ Certificate, including any
Person specified as so authorized in any such certificate previously delivered and not superseded.

     (l) In no event shall the Trustee be responsible or liable for special, indirect,
consequential or punitive loss or damage of any kind whatsoever (including, but not limited to,
loss of profit), irrespective of whether the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action.

     (m) Every provision of this Indenture relating to the conduct or affecting the liability or
offering protection, immunity or indemnity to the Trustee shall be deemed to apply with the same
force and effect to the Trustee in its capacities as Registrar, Paying Agent, Authenticating Agent
and transfer agent and to each other Agent appointed hereunder.

     Section 7.03. Individual Rights of Trustee. The Trustee, in its individual or any
other capacity, may become the owner or pledgee of Securities and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not the Trustee. Any Agent
may do the same with like rights. However, the Trustee is subject to Trust Indenture Act Sections
310(b) and 311. For purposes of Trust Indenture Act Section 311(b)(4) and (6), the following terms
shall mean:

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

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

     Section 7.04. Trustee’s Disclaimer. The recitals contained herein and in the
Securities (except the Trustee’s certificate of authentication) shall be taken as statements of the
Company and not of the Trustee and the Trustee assumes no

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responsibility for the correctness of the same. Neither the Trustee nor any of its agents (a)
makes any representation as to the validity or adequacy of this Indenture, the Securities or any
offering materials and (b) shall be accountable for the Company’s use or application of the
proceeds from the Securities.

     Section 7.05. Notice of Default. If any Default with respect to the Securities of
any series occurs and is continuing and if such Default is known to the actual knowledge of a
Responsible Officer with the Corporate Trust Office of the Trustee, the Trustee shall give to each
Holder of Securities of such series notice of such Default within 90 days after it occurs to all
Holders of Securities of such series in the manner and to the extent provided in Section 313(c) of
the Trust Indenture Act, unless such Default shall have been cured or waived before the mailing of
such notice; provided, however, that, except in the case of a Default in the payment of the
Principal of or interest on any Security, the Trustee shall be protected in withholding such notice
if the Trustee in good faith determines that the withholding of such notice is in the interests of
the Holders.

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

     Section 7.06. Reports by Trustee to Holders. The Trustee shall transmit to Holders
such reports concerning the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. If
required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within 60 days after each
May 15 following the date of this Indenture, deliver to Holders a brief report, dated as of such
May 15, which complies with the provisions of such Section 313(a).

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

     Section 7.07. Compensation and Indemnity. The Company shall pay to the Trustee such
compensation as shall be agreed upon in writing from time to time for its services. The
compensation of the Trustee shall not be limited by any law on compensation of a Trustee of an
express trust. The Company shall reimburse the Trustee and any predecessor Trustee upon request
for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by the
Trustee or such predecessor Trustee. Such expenses shall include, without limitation, the
reasonable compensation and expenses of the Trustee’s or such predecessor Trustee’s agents, legal
counsel and other persons not regularly in their employ.

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     The Company shall indemnify each of the Trustee and any predecessor Trustee for, and hold it
harmless against, any loss, liability, damage, claim or expense (including, without limitation, the
fees and expenses of its counsel) incurred by it without negligence or bad faith on its part
arising out of or in connection with the acceptance or administration of this Indenture and the
Securities or the issuance of the Securities or any series or tranches thereof or the trusts
hereunder and the performance of duties or the exercise of its rights under this Indenture and the
Securities, including the costs and expenses of defending itself against or investigating any claim
or liability and of complying with any process served upon it or any of its officers in connection
with the exercise or performance of any of its rights, powers or duties under this Indenture and
the Securities.

     To secure the Company’s payment obligations in this Section 7.07, the Trustee shall have a
lien prior to the Securities on all money or property held or collected by the Trustee, in its
capacity as Trustee, except money or property held in trust to pay Principal of, and interest on
particular Securities.

     The obligations of the Company under this Section to compensate and indemnify the Trustee and
each predecessor Trustee and to pay or reimburse the Trustee and each predecessor Trustee for
expenses, disbursements and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture or the rejection or termination of this
Indenture under bankruptcy law and/or the resignation or removal of the Trustee and/or the payment
of Securities. Such additional indebtedness shall be a senior claim 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, and the Securities are hereby subordinated to such
senior claim. Without prejudice to any other rights available to the Trustee under applicable law,
if the Trustee renders services and incurs expenses following an Event of Default under Section
6.01(d) or Section 6.01(e) hereof, the parties hereto and the holders by their acceptance of the
Securities hereby agree that such expenses are intended to constitute expenses of administration
under any bankruptcy law.

     Section 7.08. Replacement of Trustee. A resignation or removal of the Trustee as
Trustee with respect to the Securities of any series and appointment of a successor Trustee as
Trustee with respect to the Securities of any series shall become effective only upon the successor
Trustee’s acceptance of appointment as provided in this Section 7.08.

     The Trustee may resign as Trustee with respect to the Securities of any series at any time by
so notifying the Company in writing. The Holders of a majority in Principal amount of the
outstanding Securities of any series may remove the Trustee as Trustee with respect to the
Securities of such series by so notifying the Trustee in writing and may appoint a successor
Trustee with respect thereto with the consent of the Company. The Company may remove the Trustee

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as Trustee with respect to the Securities of any series if: (i) the Trustee is no longer
eligible under Section 7.11 of this Indenture; (ii) the Trustee is adjudged a bankrupt or
insolvent; (iii) a receiver or other public officer takes charge of the Trustee or its property; or
(iv) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed as Trustee with respect to the Securities of any series,
or if a vacancy exists in the office of Trustee with respect to the Securities of any series for
any reason, the Company shall promptly appoint a successor Trustee with respect thereto. Within
one year after the successor Trustee takes office, the Holders of a majority in Principal amount of
the outstanding Securities of such series may appoint a successor Trustee in respect of such
Securities to replace the successor Trustee appointed by the Company. If the successor Trustee
with respect to the Securities of any series does not deliver its written acceptance required by
Section 7.09 within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Company or the Holders of a majority in Principal amount of the outstanding Securities of such
series may petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect thereto.

     The Company shall give notice of any resignation and any removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee in respect of the
Securities of such series to all Holders of Securities of such series. Each notice shall include
the name of the successor Trustee and the address of its Corporate Trust Office.

     Notwithstanding replacement of the Trustee with respect to the Securities of any series
pursuant to this Section 7.08 and Section 7.09, the Company’s obligations under Section 7.07 shall
survive and continue for the benefit of the retiring Trustee.

     Section 7.09. Acceptance of Appointment by Successor. 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 and subject to the lien provided for in Section 7.07, execute and
deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of
the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.

     In case of the appointment hereunder of a successor Trustee with respect to the 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

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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) if the retiring
Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the
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 and that each such Trustee shall be trustee of a trust or trusts hereunder separate
and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the
execution and delivery of such supplemental indenture the resignation or removal of the retiring
Trustee shall become effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee with respect to the 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 all property and money held by such retiring Trustee hereunder with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates.

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

     No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be eligible under this Article and qualified under Section 310(b) of the
Trust Indenture Act.

     Section 7.10. Successor Trustee By Merger, Etc. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all of its corporate trust business
(including this transaction) to, another corporation or national banking association, the
resulting, surviving or transferee corporation or national banking association without any further
act shall be the successor Trustee with the same effect as if the successor Trustee had been named
as the Trustee herein.

     Section 7.11. Eligibility. This Indenture shall always have a Trustee who satisfies
the requirements of Trust Indenture Act Section 310(a). The Trustee

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shall have a combined capital and surplus of at least $25,000,000 as set forth in its most
recent published annual report of condition.

     Section 7.12. Money Held in Trust. The Trustee shall not be liable for the
investment of or the payment of any interest on any money received by it except as the Trustee may
agree in writing with the Company. Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law and except for money held in trust under Article 8
of this Indenture.

ARTICLE 8

Satisfaction and Discharge of Indenture; Unclaimed Moneys

     Section 8.01. Satisfaction and Discharge of Indenture. If at any time (a) the
Company shall have paid or caused to be paid the Principal of and interest on all the Securities of
any series outstanding hereunder (other than Securities of such series which have been destroyed,
lost or stolen and which have been replaced or paid as provided in Section 2.08) as and when the
same shall have become due and payable, or (b) the Company shall have delivered to the Trustee for
cancellation all Securities of any series theretofore authenticated (other than any Securities of
such series which shall have been destroyed, lost or stolen and which shall have been replaced or
paid as provided in Section 2.08) or (c) (i) all the Securities of such 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 (ii) the
Company shall have irrevocably deposited or caused to be deposited with the Trustee as trust funds
the entire amount in cash (other than moneys repaid by the Trustee or any Paying Agent to the
Company in accordance with Section 8.04) or U.S. Government Obligations, maturing as to Principal
and interest in such amounts and at such times as will insure (without consideration of the
reinvestment of such interest) the availability of cash, or a combination thereof, sufficient to
pay at maturity or upon redemption all Securities of such series (other than any Securities of such
series which shall have been destroyed, lost or stolen and which shall have been replaced or paid
as provided in Section 2.08) not theretofore delivered to the Trustee for cancellation, including
Principal and interest due or to become due on or prior to such date of maturity or redemption as
the case may be, and if, in any such case, the Company is not prohibited from making payments in
respect of the Securities by Article 11 hereof and shall also pay or cause to be paid all other
sums payable hereunder by the Company with respect to Securities of such series, then this
Indenture shall cease to be of further effect with respect to Securities of such series (except as
to (i) rights of registration of transfer and exchange of securities of such series, and the
Company’s right of optional redemption, if any, (ii) substitution of mutilated, defaced, destroyed,
lost or stolen Securities, (iii) rights of Holders to receive payments of Principal thereof and
interest thereon, upon the original stated due

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dates therefor (but not upon acceleration) and remaining rights of the Holders to receive
mandatory sinking fund payments, if any, (iv) the rights, obligations, protections, indemnities and
immunities of the Trustee and each Agent hereunder and (v) the rights of the Securityholders of
such series as beneficiaries hereof with respect to the property so deposited with the Trustee
payable to all or any of them), and the Trustee, on written demand of the Company accompanied by an
Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Company, shall
execute proper instruments acknowledging such satisfaction of and discharging this Indenture with
respect to such series; provided, that the rights of Holders of the Securities to receive amounts
in respect of Principal of and interest on the Securities held by them shall not be delayed longer
than required by then-applicable mandatory rules or policies of any securities exchange upon which
the Securities are listed. The Company agrees to reimburse the Trustee for any costs or expenses
thereafter reasonably and properly incurred and to compensate the Trustee for any services
thereafter reasonably and properly rendered by the Trustee in connection with this Indenture or the
Securities of such series.

     Section 8.02. Application by Trustee of Funds Deposited for Payment of Securities.
Subject to Section 8.04, all moneys (including U.S. Government Obligations and the proceeds
thereof) deposited with the Trustee pursuant to Section 8.01, Section 8.05 or Section 8.06 shall be
held in trust and applied by it to the payment, either directly or through any Paying Agent to the
Holders of the particular Securities of such series for the payment or redemption of which such
moneys have been deposited with the Trustee, of all sums due and to become due thereon for
Principal and interest; but such money need not be segregated from other funds except to the extent
required by law. Funds and U.S. Government Obligations held in trust under Section 8.01, 8.05 or
8.06 shall not be subject to the claims of the holders of Senior Indebtedness under Article 11.

     Section 8.03. Repayment of Moneys Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to Securities of any series, all moneys
then held by any Paying Agent under the provisions of this Indenture with respect to such series of
Securities shall, upon written demand of the Company, be repaid to it or paid to the Trustee and
thereupon such Paying Agent shall be released from all further liability with respect to such
moneys.

     Section 8.04. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two
Years. Any moneys deposited with or paid to the Trustee or any Paying Agent for the payment of the
Principal of or interest on any Security of any series and not applied but remaining unclaimed for
two years after the date upon which such Principal or interest shall have become due and payable,
shall, upon the written request of the Company and unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Company
by the Trustee for such series or such Paying Agent, and the Holder of the Security of such series
shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or

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unclaimed property laws, thereafter look only to the Company for any payment which such Holder
may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to
such moneys shall thereupon cease.

     Section 8.05. Defeasance and Discharge of Indenture. The Company shall be deemed to
have paid and shall be discharged from any and all obligations in respect of the Securities of any
series, on the 123rd day after the deposit referred to in clause (i) hereof has been made, and the
provisions of this Indenture shall no longer be in effect with respect to the Securities of such
series (and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), except as to: (a) rights of registration of transfer and exchange, and the
Company’s right of optional redemption, (b) substitution of apparently mutilated, defaced,
destroyed, lost or stolen Securities, (c) rights of Holders to receive payments of Principal
thereof and interest thereon, upon the original stated due dates therefor (but not upon
acceleration), (d) the rights, obligations and immunities of the Trustee hereunder and (e) the
rights of the Securityholders of such series as beneficiaries hereof with respect to the property
so deposited with the Trustee payable to all or any of them; provided that the following conditions
shall have been satisfied:

     (i) with reference to this provision the Company has deposited or caused to
be irrevocably deposited with the Trustee (or another qualifying trustee satisfying the
requirements of Section 7.11) as trust funds in trust, specifically pledged as security
for, and dedicated solely to, the benefit of the Holders of the Securities of such series,
(A) money in an amount, or (B) U.S. Government Obligations which through the payment of
interest and principal in respect thereof in accordance with their terms will provide not
later than one day before the due date of any payment referred to in subclause (x) or (y)
of this clause (i) money in an amount, or (C) a combination thereof, sufficient, in the
opinion of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay and discharge without
consideration of the reinvestment of such interest and after payment of all federal, state
and local taxes or other charges and assessments in respect thereof payable by the Trustee
(x) the Principal of, premium, if any, and each installment of interest on the outstanding
Securities of such series on the due dates thereof and (y) any mandatory sinking fund
payments or analogous payments applicable to the Securities of such series on the day on
which such payments are due and payable in accordance with the terms of Securities of such
series and the Indenture with respect to the Securities of such series;

     (ii) the Company has delivered to the Trustee (A) either (x) an Opinion of
Counsel to the effect that Holders of Securities of such series will not recognize income,
gain or loss for federal income tax purposes as a result of the Company’s exercise of its
option under this Section 8.05 and will be subject to federal income tax on the same
amount and in the

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same manner and at the same times as would have been the case if such deposit,
defeasance and discharge had not occurred, which Opinion of Counsel must be based upon a
ruling of the Internal Revenue Service to the same effect or a change in applicable
federal income tax law or related treasury regulations after the date of this Indenture or
(y) a ruling directed to the Trustee received from the Internal Revenue Service to the
same effect as the aforementioned Opinion of Counsel and (B) an Opinion of Counsel to the
effect that the creation of the defeasance trust does not violate the Investment Company
Act of 1940 and after the passage of 123 days following the deposit, the trust fund will
not be subject to the effect of Section 547 of the U.S. Bankruptcy Code or Section 15 of
the New York Debtor and Creditor Law;

     (iii) immediately after giving effect to such deposit on a pro forma basis,
no Event of Default, or event that after the giving of notice or lapse of time or both
would become an Event of Default, shall have occurred and be continuing on the date of
such deposit or during the period ending on the 123rd day after the date of such deposit,
and such deposit shall not result in a breach or violation of, or constitute a default
under, any other agreement or instrument to which the Company is a party or by which the
Company is bound;

     (iv) if at such time the Securities of such series are listed on a national
securities exchange, the Company has delivered to the Trustee an Opinion of Counsel to the
effect that the Securities of such series will not be delisted as a result of such
deposit, defeasance and discharge;

     (v) the Company shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent to the defeasance
and discharge under this Section have been complied with; and

     (vi) if the Securities of such series are to be redeemed prior to the final
maturity thereof (other than from mandatory sinking fund payments or analogous payments),
notice of such redemption shall have been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee shall have been made.

     Section 8.06. Defeasance of Certain Obligations. The Company may omit to comply with
any term, provision or condition set forth in, and this Indenture will no longer be in effect with
respect to, any covenant established pursuant to Section 2.03(r) and clause (c) (with respect to
any covenants established pursuant to Section 2.03(r)) and clause (f) of Section 6.01 shall be
deemed not to be an Event of Default, if

     (a) with reference to this Section 8.06, the Company has deposited or caused to be
irrevocably deposited with the Trustee (or another qualifying trustee

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satisfying the requirements of Section 7.11) as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the Securities of such series
and the Indenture with respect to the Securities of such series, (i) money in an amount or (ii)
U.S. Government Obligations which through the payment of interest and principal in respect thereof
in accordance with their terms will provide not later than one day before the due dates thereof or
earlier redemption (irrevocably provided for under agreements satisfactory to the Trustee), as the
case may be, of any payment referred to in subclause (x) or (y) of this clause (a) money in an
amount, or (iii) a combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge without consideration of the reinvestment of such interest and after
payment of all federal, state and local taxes or other charges and assessments in respect thereof
payable by the Trustee (x) the Principal of, premium, if any, and each installment of interest on
the outstanding Securities on the due date thereof or earlier redemption (irrevocably provided for
under arrangements satisfactory to the Trustee), as the case may be, and (y) any mandatory sinking
fund payments or analogous payments applicable to the Securities of such series and the Indenture
with respect to the Securities of such series on the day on which such payments are due and payable
in accordance with the terms of the Indenture and of Securities of such series and the Indenture
with respect to the Securities of such series;

     (b) the Company has delivered to the Trustee (i) an Opinion of Counsel to the effect
that Holders of Securities of such series will not recognize income, gain or loss for federal
income tax purposes as a result of the Company’s exercise of its option under this Section 8.06 and
will be subject to federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit and defeasance had not occurred and (ii) an
Opinion of Counsel to the effect that the creation of the defeasance trust does not violate the
Investment Company Act of 1940 and after the passage of 123 days following the deposit, the trust
fund will not be subject to the effect of Section 547 of the U.S. Bankruptcy Code or Section 15 of
the New York Debtor and Creditor Law;

     (c) immediately after giving effect to such deposit on a pro forma basis, no Event of
Default, or event that after the giving of notice or lapse of time or both would become an Event of
Default, shall have occurred and be continuing on the date of such deposit or during the period
ending on the 123rd day after the date of such deposit, and such deposit shall not result in a
breach or violation of, or constitute a default under, any other agreement or instrument to which
the Company is a party or by which the Company is bound;

     (d) if at such time the Securities of such series are listed on a national securities
exchange, the Company has delivered to the Trustee an Opinion of Counsel to the effect that the
Securities of such series will not be delisted as a result of such deposit, defeasance and
discharge; and

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      (e) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent to the defeasance under this
Section have been complied with.

     Section 8.07. Reinstatement. If the Trustee or Paying Agent is unable to apply any
monies or U.S. Government Obligations in accordance with Article 8 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to this Article until such time as the Trustee or Paying Agent is permitted to apply all
such monies or U.S. Government Obligations in accordance with Article 8; provided, however, that if
the Company has made any payment of Principal of or interest on any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the monies or U.S. Government Obligations held by the
Trustee or Paying Agent.

     Section 8.08. Indemnity. The Company shall pay and indemnify the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.08 and Section 8.02, the “Trustee”)
against any tax, fee or other charge, imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 8.01, 8.05 or 8.06 or the principal or interest received
in respect thereof other than any such tax, fee or other charge which by law is for the account of
the Holders of the Securities.

     Section 8.09. Excess Funds. Anything in this Article 8 to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon written
request of the Company, any money or U.S. Government Obligations (or other property and any
proceeds therefrom) held by it as provided in Section 8.01, 8.05 or 8.06 which, in the opinion of a
nationally recognized firm of Independent Public Accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which would then be required
to be deposited to effect a discharge or defeasance, as applicable, in accordance with this Article
8.

     Section 8.10. Qualifying Trustee. Any trustee appointed pursuant to Section 8.05 or
8.06 (other than the Trustee) for the purpose of holding money or U.S. Government Obligations
deposited pursuant to such Sections shall be appointed under an agreement in form acceptable to the
Trustee and shall provide to the Trustee a certificate, upon which certificate the Trustee shall be
entitled to conclusively rely, that all conditions precedent provided for herein to the related
defeasance have been complied with. In no event shall the Trustee be liable for any acts or
omissions of said trustee

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ARTICLE 9

Amendments, Supplements and Waivers

     Section 9.01. Without Consent of Holders. The Company and the Trustee may amend or
supplement this Indenture or the Securities of any series without notice to or the consent of any
Holder:

     (a) to cure any ambiguity, defect or inconsistency in this Indenture;
provided that such amendments or supplements shall not materially adversely affect the
interests of the Holders;

     (b) to comply with Article 5;

     (c) to comply with any requirements of the Commission in connection with the
qualification of this Indenture under the Trust Indenture Act;

     (d) to evidence and provide for the acceptance of appointment hereunder with
respect to the Securities of any or all series by a successor Trustee and to add to or
change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee, pursuant
to the requirements of Section 7.09;

     (e) to establish the form or forms or terms of Securities of any series as
permitted by Section 2.03; and

     (f) to make any change that does not materially adversely affect the rights
of any Holder.

     Section 9.02. With Consent of Holders. Subject to Sections 6.04 and 6.07, without
prior notice to any Holders, the Company and the Trustee may amend this Indenture and the
Securities of any series with the written consent of the Holders of a majority in Principal amount
of the outstanding Securities of all series affected by such amendment (all such series voting as a
separate class), and the Holders of a majority in principal amount of the outstanding Securities of
all series affected thereby (all such series voting as a separate class) by written notice to the
Trustee may waive future compliance by the Company with any provision of this Indenture or the
Securities of such series.

     Notwithstanding the provisions of this Section 9.02, without the consent of each Holder
affected thereby, an amendment or waiver, including a waiver pursuant to Section 6.04, may not:

     (a) change the stated maturity of the Principal of, or any sinking fund obligation or
any installment of interest on, such Holder’s Security,

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     (b) reduce the Principal amount thereof or the rate of interest thereon (including any
amount in respect of original issue discount);

     (c) reduce the above stated percentage of outstanding Securities the consent of whose
Holders is necessary to modify or amend the Indenture with respect to the Securities of the
relevant series; and

     (d) reduce the percentage in Principal amount of outstanding Securities of the
relevant series the consent of whose Holders is required for any supplemental indenture or for any
waiver of compliance with certain provisions of this Indenture or certain Defaults and their
consequences provided for in this Indenture.

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

     It shall not be necessary for the consent of any Holder under this Section 9.02 to approve the
particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall give to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. The Company will mail supplemental indentures to Holders upon request. Any
failure of the Company to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture or waiver.

     Section 9.03. Revocation and Effect of Consent. Until an amendment or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as the Security of the
consenting Holder, even if notation of the consent is not made on any Security. However, any such
Holder or subsequent Holder may revoke the consent as to its Security or portion of its Security.
Such revocation shall be effective only if the Trustee receives the notice of revocation before the
date the amendment, supplement or waiver becomes effective. An amendment, supplement or waiver
shall become effective with respect to any Securities affected thereby on receipt by the Trustee of
written consents from the requisite Holders of outstanding Securities affected thereby.

     The Company may, but shall not be obligated to, fix a record date (which may be not less than
five nor more than 60 days prior to the solicitation of consents) for the purpose of determining
the Holders of the Securities of any series affected entitled to consent to any amendment,
supplement or waiver. If a

50

 

record date is fixed, then, notwithstanding the immediately preceding paragraph, those Persons
who were such Holders at such record date (or their duly designated proxies) and only those Persons
shall be entitled to consent to such amendment, supplement or waiver or to revoke any consent
previously given, whether or not such Persons continue to be such Holders after such record date.
No such consent shall be valid or effective for more than 90 days after such record date.

     After an amendment, supplement or waiver becomes effective with respect to the Securities of
any series affected thereby, it shall bind every Holder of such Securities unless it is of the type
described in any of clauses (a) through (d) of Section 9.02. In case of an amendment or waiver of
the type described in clauses (a) through (d) of Section 9.02, the amendment or waiver shall bind
each such Holder who has consented to it and every subsequent Holder of a Security that evidences
the same indebtedness as the Security of the consenting Holder.

     Section 9.04. Notation on or Exchange of Securities. If an amendment, supplement or
waiver changes the terms of any Security, the Trustee may require the Holder thereof to deliver it
to the Trustee. The Trustee may place an appropriate notation on the Security about the changed
terms and return it to the Holder and the Trustee may place an appropriate notation on any Security
of such series thereafter authenticated. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate
a new Security of the same series and tenor that reflects the changed terms.

     Section 9.05. Trustee to Sign Amendments, Etc. The Trustee shall be entitled to
receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of any amendment, supplement or waiver authorized pursuant to this Article 9 is
authorized or permitted by this Indenture, stating that all requisite consents have been obtained
or that no consents are required and stating that such supplemental indenture constitutes the
legal, valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms, subject to customary exceptions. The Trustee may, but shall not be obligated to,
execute any such amendment, supplement or waiver that affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

     Section 9.06. Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article 9 shall conform to the requirements of the Trust Indenture Act as
then in effect.

ARTICLE 10

Miscellaneous

     Section 10.01. Trust Indenture Act of 1939. This Indenture shall incorporate and be
governed by the provisions of the Trust Indenture Act that are

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required to be part of and to govern indentures qualified under the Trust Indenture Act.

     Section 10.02. Notices. Any notice or communication shall be given in writing and
delivered (a) in person, (b) by first class mail, (c) by facsimile transmission or (d) by overnight
courier, in each case addressed as follows:

     if to the Company:

UIL Holdings Corporation

157 Church Street

New Haven, CT 06506

Facsimile: 203-499-3664

Attention: General Counsel

     if to the Trustee:

The Bank of New York Mellon

101 Barclay Street, 4 East

New York, New York 10286

Facsimile: (212) 815 — 5802/03

Attention: Corporate Trust Department

     The Company or the Trustee by written notice to the other may designate additional or
different addresses for subsequent notices or communications. Notice and communications to the
Trustee and the Company shall be deemed sufficiently given upon actual receipt thereof; provided
that notices and communications delivered by facsimile transmission shall be deemed sufficiently
given only upon receipt by the delivering party of written confirmation of such actual receipt.

     Any notice or communication shall be sufficiently given to Holders of Securities by mailing to
such Holders at their addresses as they shall appear on the Security Register. Notice mailed shall
be sufficiently given if so mailed within the time prescribed. Copies of any such communication or
notice to a Holder shall also be mailed to the Trustee and each Agent at the same time.

     Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. Except as otherwise provided in this Indenture, if a
notice or communication to a Holder is given in the manner provided in this Section 10.02, it is
duly given, whether or not the Holder receives it.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or

52

 

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

     In case it shall be impracticable to give notice as herein contemplated, then such
notification as shall be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

     In respect of this Indenture, the Trustee shall not have any duty or obligation to verify or
confirm that the Person sending instructions, directions, reports, notices or other communications
or information by electronic transmission is, in fact, a person authorized to give such
instructions, directions, reports, notices or other communications or information on behalf of the
party purporting to send such e-mail; and the Trustee shall not have any liability for any losses,
liabilities, costs or expenses incurred or sustained by any party as a result of such reliance upon
or compliance with such instructions, directions, reports, notices or other communications or
information. Each other party agrees to assume all risks arising out of the use of electronic
methods to submit instructions, directions, reports, notices or other communications or information
to the Trustee, including without limitation the risk of the Trustee acting on unauthorized
instructions, notices, reports or other communications or information, and the risk of interception
and misuse by third parties.

     Section 10.03. Certificate and Opinion as to Conditions Precedent. Upon any request
or application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

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

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

     Section 10.04. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture
(other than the certificate required by Section 4.04) shall include:

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

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

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

     (d) a statement as to whether or not, in the opinion of each such Person,
such condition or covenant has been complied with; provided, however, that, with respect
to matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or
certificates of public officials.

     Section 10.05. Evidence of Ownership. The Company, the Trustee and any agent of the
Company or the Trustee may deem and treat the person in whose name any Security shall be registered
upon the Security Register for such series as the absolute owner of such Security (whether or not
such Security shall be overdue and notwithstanding any notation of ownership or other writing
thereon) for the purpose of receiving payment of or on account of the Principal of and, subject to
the provisions of this Indenture, interest on such Security and for all other purposes; and neither
the Company nor the Trustee nor any agent of the Company or the Trustee shall be affected by any
notice to the contrary.

     Section 10.06. Rules by Trustee, Paying Agent or Registrar. The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Paying Agent or Registrar may make
reasonable rules for its functions.

     Section 10.07. Payment Date Other Than a Business Day. Except as otherwise provided
with respect to a series of Securities, if any date for payment of Principal or interest on any
Security shall not be a Business Day at any place of payment, then payment of Principal of or
interest on such Security, as the case may be, need not be made on such date, but may be made on
the next succeeding Business Day at any place of payment with the same force and effect as if made
on such date and no interest shall accrue in respect of such payment for the period from and after
such date.

     Section 10.08. Governing Law. The laws of the State of New York shall govern this
Indenture and the Securities.

     Section 10.09. No Adverse Interpretation of Other Agreements. This Indenture may not
be used to interpret another indenture or loan or debt agreement of the Company or any Subsidiary
of the Company. Any such indenture or agreement may not be used to interpret this Indenture.

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     Section 10.10. Successors. All agreements of the Company in this Indenture and the
Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors.

     Section 10.11. Duplicate Originals. The parties may sign any number of copies of
this Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     Section 10.12. Separability. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     Section 10.13. Table of Contents, Headings, Etc. The Table of Contents and headings
of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof and shall in no way modify or restrict any of the
terms and provisions hereof.

     Section 10.14. Incorporators, Stockholders, Officers and Directors of Company Exempt
from Individual Liability. No recourse under or upon any obligation, covenant or agreement
contained in this Indenture or any indenture supplemental hereto, or in any Security, or because of
any indebtedness evidenced thereby, shall be had against any incorporator, as such or against any
past, present or future stockholder, officer, director or employee, as such, of the Company or of
any successor, either directly or through the Company or any successor, under any rule of law,
statute or constitutional provision or by the enforcement of any assessment or by any legal or
equitable proceeding or otherwise, all such liability being expressly waived and released by the
acceptance of the Securities by the Holders thereof and as part of the consideration for the issue
of the Securities.

     Section 10.15. Judgment Currency. The Company agrees, to the fullest extent that it
may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in
any court it is necessary to convert the sum due in respect of the Principal of or interest on the
Securities of any series (the “Required Currency”) into a currency in which a judgment will be
rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the day on which final unappealable judgment is
entered, unless such day is not a Business Day, then, to the extent permitted by applicable law,
the rate of exchange used shall be the rate at which in accordance with normal banking procedures
the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency
on the Business Day preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall not be
discharged or satisfied by any tender, or any recovery pursuant to any judgment (whether or not
entered in accordance with subsection (a)), in any currency other than the

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Required Currency, except to the extent that such tender or recovery shall result in the
actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable
in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of
action for the purpose of recovering in the Required Currency the amount, if any, by which such
actual receipt shall fall short of the full amount of the Required Currency so expressed to be
payable and (iii) shall not be affected by judgment being obtained for any other sum due under this
Indenture.

     Section 10.16. Submission to Jurisdiction; Waiver of Jury Trial. Any suit, action or
proceeding against the Company or its properties, assets or revenues with respect to this Indenture
or the Securities (a “Related Proceeding”) may be brought in the Supreme Court of the State of New
York, County of New York, or in the United States District Court for the Southern District of New
York, as the Person bringing such Related Proceeding may elect in its sole discretion. The Company
hereby consents to the non-exclusive jurisdiction of each such court for the purpose of any Related
Proceeding and has irrevocably waived any objection to the laying of venue of any Related
Proceeding brought in any such court and to the fullest extent it may effectively do so and the
defense of an inconvenient forum to the maintenance of any Related Proceeding or any such suit,
action or proceeding in any such court. The Company has agreed that service of all writs, claims,
process and summonses in any Related Proceeding brought against it in the State of New York may be
made upon Wiggin and Dana LLP, 450 Lexington Avenue, Suite 3800, New York, NY 10017-3913 (the
“Process Agent”), and the Company irrevocably appointed the Process Agent as its agent and true and
lawful attorney in fact in its name, place and stead to accept such service of any and all such
writs, claims, process and summonses, and has agreed that the failure of the Process Agent to give
any notice to it of any such service of process shall not impair or affect the validity of such
service or of any judgment based thereon. The Company has agreed to maintain at all times an agent
with offices in New York City to act as its Process Agent. Nothing in this Indenture shall in any
way be deemed to limit the ability to serve any such writs, process or summonses in any other
manner permitted by applicable law.

ARTICLE 11

Subordination of Securities

     Section 11.01. Agreement to Subordinate. The Company covenants and agrees, and each
Holder of Securities issued hereunder by his acceptance thereof likewise covenants and agrees, that
all Securities shall be issued subject to the provisions of this Article; and each Person holding
any Security, whether upon original issue or upon transfer, assignment or exchange thereof accepts
and agrees that the Principal of and interest on all Securities issued hereunder shall, to the
extent and in the manner herein set forth, be subordinated and subject in right of payment to the
prior payment in full of all Senior Indebtedness.

56

 

     Section 11.02. Payments to Securityholders. No payments on account of Principal of
or interest on the Securities shall be made if at the time of such payment or immediately after
giving effect thereto there shall exist a default in any payment with respect to any Senior
Indebtedness, and such default shall not have been cured or waived or shall not have ceased to
exist.

     Upon any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, to creditors upon any liquidation, dissolution, winding up,
receivership, reorganization, assignment for the benefit of creditors, marshalling of assets and
liabilities or any bankruptcy, insolvency or similar proceedings of the Company, all amounts due or
to become due upon all Senior Indebtedness shall first be paid in full, in cash or cash
equivalents, or payment thereof provided for in accordance with its terms, before any payment is
made on account of the Principal of, or interest on the indebtedness evidenced by the Securities,
and upon any such liquidation, dissolution, winding up, receivership, reorganization, assignment,
marshalling or proceeding, any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which the Holders of the Securities or the
Trustee under this Indenture would be entitled, except for the provisions hereof, shall be paid by
the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person
making such payment or distribution, directly to the holders of Senior Indebtedness (pro rata to
such holders on the basis of the respective amounts of Senior Indebtedness held by such holders) or
their respective representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing any of such Senior Indebtedness may have been issued, as their
respective interests may appear, to the extent necessary to pay all Senior Indebtedness in full
(including, without limitation, except to the extent, if any, prohibited by mandatory provisions of
law, post-petition interest, in any such proceedings), after giving effect to any concurrent
payment or distribution to or for the holders of Senior Indebtedness, before any payment or
distribution is made to the holders of the indebtedness evidenced by the Securities or to the
Trustee under this Indenture.

     In the event that, notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, prohibited by the
foregoing, shall be received by the Trustee under this Indenture or the Holders of the Securities
before all Senior Indebtedness is paid in full or provision is made for such payment in accordance
with its terms, such payment or distribution shall be held in trust for the benefit of and shall be
paid over or delivered to the holders of such Senior Indebtedness or their respective
representatives, or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing any of such Senior Indebtedness may have been issued, as their respective
interests may appear, for application to the payment of all Senior Indebtedness remaining unpaid
until all such Senior Indebtedness shall have been paid in full in accordance with its terms, after
giving

57

 

effect to any concurrent payment or distribution to or for the holders of such Senior
Indebtedness.

     For purposes of this Article, the words, “cash, property or securities” shall not be deemed to
include shares of stock of the Company as reorganized or readjusted, or securities of the Company
or any other corporation provided for by a plan of arrangement, reorganization or readjustment, the
payment of which is subordinated (at least to the extent provided in this Article with respect to
the Securities) to the payment of all Senior Indebtedness which may at the time be outstanding;
provided, that (i) the Senior Indebtedness is assumed by the new corporation, if any, resulting
from any such arrangement, reorganization or readjustment, and (ii) the rights of the holders of
the Senior Indebtedness are not, without the consent of such holders, altered by such arrangement,
reorganization or readjustment. The consolidation of the Company with, or the merger of the
Company into, another corporation or the liquidation or dissolution of the Company following the
sale, conveyance or transfer of all or substantially all of its property and assets to another
corporation upon the terms and conditions provided in Article 5 shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section if such other
corporation shall, as a part of such consolidation, merger, sale, conveyance or transfer, comply
with the conditions stated in Article 5. Nothing in this Section shall apply to claims of, or
payments to, the Trustee under or pursuant to Article 7. This Section shall be subject to the
further provisions of Section 11.05.

     Section 11.03. Subrogation of Securities. Subject to the payment in full of all
Senior Indebtedness, the Holders of the Securities shall be subrogated to the rights of the holders
of Senior Indebtedness to receive payments or distributions of cash, property or securities of the
Company applicable to the Senior Indebtedness until the Principal of and interest on the Securities
shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to
the holders of the Senior Indebtedness of any cash, property or securities to which the Holders of
the Securities or the Trustee on their behalf would be entitled except for the provisions of this
Article, and no payment over pursuant to the provisions of this Article to the holders of Senior
Indebtedness by Holders of the Securities or the Trustee on their behalf shall, as between the
Company, its creditors other than holders of Senior Indebtedness and the Holders of the Securities,
be deemed to be a payment by the Company to or on account of the Senior Indebtedness; and no
payments or distributions of cash, property or securities to or for the benefit of the
Securityholders pursuant to the subrogation provision of this Article, which would otherwise have
been paid to the holders of Senior Indebtedness shall be deemed to be a payment by the Company to
or for the account of the Securities. It is understood that the provisions of this Article are and
are intended solely for the purpose of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand.

     Nothing contained in this Article or elsewhere in this Indenture or in the Securities is
intended to or shall impair, as between the Company, its creditors

58

 

other than the holders of Senior Indebtedness, and the Holders of the Securities, the
obligation of the Company, which is absolute and unconditional, to pay to the Holders of the
Securities the Principal of and interest on the Securities as and when the same shall become due
and payable in accordance with their terms, or is intended to or shall affect the relative rights
of the Holders of the Securities and creditors of the Company other than the holders of the Senior
Indebtedness, nor shall anything herein or therein prevent any Holder of any Security or the
Trustee on his behalf from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture, subject to the rights, if any, under this Article of the holders of
Senior Indebtedness in respect of cash, property or securities of the Company received upon the
exercise of any such remedy.

     Upon any payment or distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of Sections 7.01 and 7.02, and the Holders of the Securities
shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in
which such liquidation, dissolution, winding up, receivership, reorganization, assignment or
marshalling proceedings are pending, or a certificate of the receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution, delivered to the
Trustee or to the Holders of the Securities, for the purpose of ascertaining the Persons entitled
to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness
of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article.

     Section 11.04. Authorization by Securityholders. Each Holder of a Security by his
acceptance thereof authorizes the Trustee in his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article and appoints the Trustee his
attorney-in-fact for any and all such purposes.

     Section 11.05. Notice to Trustee. The Company shall give prompt written notice to
the Trustee and to any Paying Agent of any fact known to the Company which would prohibit the
making of any payment of moneys to or by the Trustee or any Paying Agent in respect of the
Securities pursuant to the provisions of this Article or would end such prohibition. Regardless of
anything to the contrary contained in this Article or elsewhere in this Indenture, the Trustee
shall not be charged with knowledge of the existence of any Senior Indebtedness or of any default
or event of default with respect to any Senior Indebtedness or of any other facts which would
prohibit the making of any payment of moneys to or by the Trustee or which would end such
prohibition, unless and until the Trustee shall have received notice in writing at its principal
Corporate Trust Office to that effect signed by an Officer of the Company, or by a holder or agent
of a holder of Senior Indebtedness or by the trustee under any indenture pursuant to which Senior
Indebtedness shall be outstanding, who shall have been certified by the Company or otherwise
established to the reasonable satisfaction of the Trustee to be such holder or agent or trustee,
and, prior to the receipt of any such written

59

 

notice, the Trustee shall, subject to Sections 7.01 and 7.02, be entitled to assume that no
such facts exist; provided that if on a date at least three Business Days prior to the date upon
which by the terms hereof any such moneys shall become payable for any purpose (including, without
limitation, the payment of the Principal of, or interest on any Security) the Trustee shall not
have received with respect to such moneys the notice of prohibition provided for in this Section,
then, regardless of anything herein to the contrary, the Trustee shall have full power and
authority to receive such moneys and to apply the same to the purpose for which they were received,
and shall not be affected by any notice to the contrary which may be received by it on or after
such prior date.

     Regardless of anything to the contrary herein, nothing shall prevent (a) any payment by the
Company or the Trustee to the Securityholders of amounts in connection with a redemption of
Securities if (i) notice of such redemption has been given pursuant to Article 3 prior to the
receipt by the Trustee of written notice of prohibition as aforesaid, and (ii) such notice of
redemption is given not earlier than 60 days before the redemption date, or (b) any payment by the
Trustee to the Securityholders of amounts deposited with it pursuant to Sections 8.01, 8.05 or
8.06.

     Section 11.06. Trustee’s Relation to Senior Indebtedness. The Trustee and any agent
of the Company or the Trustee shall be entitled to all the rights set forth in this Article with
respect to any Senior Indebtedness which may at any time be held by it in its individual or any
other capacity to the same extent as any other holder of Senior Indebtedness and nothing in this
Indenture shall deprive the Trustee or any such agent, of any of its rights as such holder.
Nothing in this Article shall apply to claims of, or payments to, the Trustee under or pursuant to
7.07.

     With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to
observe only such of its covenants and obligations as are specifically set forth in this Article,
and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be
read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness and, subject to the provisions of Sections 7.01 and
7.02, the Trustee shall not be liable to any holder of Senior Indebtedness if it shall pay over or
deliver to Holders of Securities, the Company or any other Person moneys or assets to which any
holder of Senior Indebtedness shall be entitled by virtue of this Article or otherwise.

     Section 11.07. No Impairment of Subordination. No right of any present or future
holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any
act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company
with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof
which any such holder may have or otherwise be charged with.

60

 

SIGNATURES

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

	 	 	 	 	 	 
	 	 	UIL HOLDINGS CORPORATION

as the Company

 	 
	 	 	By:  	 	 
	 	 	 	Name:  	 	 
	 	 	 	Title:  	 	 
	 
	 	 	THE BANK OF NEW YORK MELLON

as the Trustee

 	 
	 	 	By:  	 	 
	 	 	 	Name:  	 	 
	 	 	 	Title:  	 	 
	 

61EX-10.D.3

Exhibit 10(d.3)

EXECUTION COPY

CONSULTING AGREEMENT

     This Agreement (“Agreement”) made effective as of this 1st day of December, 2008 (the
“Effective Date”), between DUSA Pharmaceuticals, Inc., a New Jersey corporation (“DUSA”) and D.
Geoffrey Shulman, MD, FRCPC (“Dr. Shulman”).

     WHEREAS, pursuant to the terms of an Employment Agreement dated March 20, 1997, (the
“Employment Agreement”) Dr. Shulman currently serves as the Chief Strategic Officer and the
Chairman of the Board of Directors of DUSA (the “Board”).

     WHEREAS, in light of Dr. Shulman’s current health issues and other circumstances, DUSA desires
to terminate the Employment Agreement and DUSA and Dr. Shulman desire to enter into this Agreement
to set forth and describe the terms and conditions under which Dr. Shulman will accept the
severance payment under his Employment Agreement and continue providing services to DUSA as a
part-time consultant, and the parties intend that this Agreement supersede any and all other
existing agreements between DUSA and Dr. Shulman unless specifically provided for in this
Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and promises, the parties agree as
follows:

	1.	 	Services: DUSA and Dr. Shulman agree that, as of the Effective Date, Dr. Shulman
shall provide consulting services to DUSA and shall resign from management activities and, in
particular, from his position as the Chief Strategic Officer of DUSA. Dr. Shulman agrees to
devote his best efforts to perform services (health permitting) for up to thirty-three (33)
hours per month to further the goals of DUSA, to consult on matters as requested by the Chief
Executive Officer of DUSA from time to time, to monitor the dermatology community with respect
to photodynamic therapy and photodetection technologies and products and other issues of
interest to DUSA, to participate in science-related company meetings and attend medical
conferences as requested by DUSA with reasonable advance notice, and take on such other
responsibilities as the Board of Directors or Chief Executive Officer of DUSA may reasonably
request from time to time. Dr. Shulman shall report his activities on a monthly basis, in
writing, to DUSA’s Chief Executive Officer.

	2.	 	Board of Directors: Dr. Shulman hereby resigns from the DUSA Board of Directors and
from the position of the Chairman of the Board.
	 
	3.	 	Term: The term of this Agreement shall commence on the Effective Date and shall
expire on the second (2nd) anniversary of the Effective Date. The term of this Agreement may
be extended on the mutual agreement of the parties on terms to be discussed.
	 
	4.	 	Severance Payment/Consulting Fees:

	 	(a)	 	Dr. Shulman shall be paid twelve (12) months severance under the terms of the Employment
Agreement in the amount of Three Hundred Seventy-Nine Thousand Eighty Dollars ($379,080.00) upon
termination of the Employment Agreement which shall be effective on the Effective Date, except as
expressly provided for herein.

 

 

	 	(b)	 	As of the Effective Date, DUSA shall pay to Dr. Shulman consulting fees equal to U.S.
$175,000 per annum. If Dr. Shulman’s services are requested for time in excess of the time stated
in Paragraph 1 and Dr. Shulman wishes to provide such additional time to DUSA, DUSA shall pay Dr.
Shulman at the rate of $250.00 per hour. DUSA shall pay the consulting fees due to Dr. Shulman
monthly. Dr. Shulman will complete appropriate forms as provided by DUSA, which will be completed
on or prior to execution of this Agreement.
	 
	 	(c)	 	Dr. Shulman will be responsible for the payment of taxes on his entire
compensation under this Agreement, including without limitation, income taxes, social
security taxes (or the Canadian equivalent) and other or similar taxes required by
application of law. DUSA shall not withhold any taxes in connection with the
compensation paid to Dr. Shulman hereunder. Such payments shall be the sole
responsibility of Dr. Shulman, and Dr. Shulman agrees to file all required forms and
make all required payments appropriate to his tax status when and as they become due.
Dr. Shulman agrees to indemnify DUSA, and each of its officers, directors and employees
from and against all payments, losses, costs, liability, expenses, damages, fines,
penalties or judgments (including without limitation actual attorneys fees and
expenses) as a result of a failure by Dr. Shulman: (a) to pay all the taxes due in
connection with the compensation paid to Dr. Shulman under this Agreement, (b) to
respond to any administrative inquiry concerning Dr. Shulman’s payment of such taxes,
or (c) to defend against any administrative or judicial proceeding with respect to Dr.
Shulman’s payment of such taxes. In addition, DUSA may reduce any payments described
in this Agreement by any amount that Dr. Shulman owes DUSA. All monetary references
made herein shall refer to U.S. dollars.

	5.	 	Other Benefits:

	 	(a)	 	Bonus/Equity Compensation. Dr. Shulman shall be considered for bonuses
and equity compensation by the Compensation Committee or the Board of Directors
pursuant to company policy which Dr. Shulman understands are decisions made in the sole
discretion of the Committee and/or Board of Directors and is, therefore, not a
commitment for any such bonus or equity compensation. Dr. Shulman is an independent
contractor and shall not be deemed an employee of DUSA for any purpose. He shall not
be entitled to receive from DUSA any medical, pension or profit sharing plan, or other
fringe benefits which may be made available to the employees of DUSA from time to time,
unless expressly provided for in this Agreement.
	 
	 	(b)	 	Offset for Other Benefit Claims. To the extent Dr. Shulman makes a successful
claim for severance and/or benefits under any other plan or arrangement which must be paid
by DUSA or its affiliates (other than for items that are expressly provided for herein in
this Agreement), the amount of such severance payments shall be deducted, on a dollar for
dollar basis, from any benefits payable to Dr. Shulman.

- 2 -

 

	6.	 	Expenses: DUSA agrees that it will reimburse Dr. Shulman for all reasonable and
authorized traveling and other out-of-pocket expenses actually and properly incurred by Dr.
Shulman in connection with his consulting duties upon provision of appropriate statements,
vouchers, bills and invoices as and when required by DUSA. Travel and out-of-pocket expenses
shall be invoiced monthly and payments shall be payable within thirty (30) days of receipt of
the invoice from Dr. Shulman. DUSA shall reimburse Dr. Shulman, up to Canadian $30,000, for
any fees for professional services (including legal, accounting, disability/tax planning
and/or insurance consulting fees) he incurs prior to the Effective Date in connection with the
negotiation, terms and drafting of this Agreement.

	7.	 	Extension of Exercise Period; Post-Termination Vesting:

	 	(a)	 	Dr. Shulman’s ownership interest with respect to his restricted stock award
shall be accelerated and vest in its entirety on the Effective Date.

	 	(b)	 	Dr. Shulman shall have the right to exercise for a period of one (1) year from
the Effective Date all Options granted to him prior to the Effective Date as to all or
any part of the shares covered by such Options, including shares with respect to which
such Options would not otherwise be exercisable, subject to restrictions under U.S. or
Canadian law, as applicable.

	8.	 	Healthcare Related Reimbursement. For the period commencing on March 1, 2008 and
ending on February 28, 2013, DUSA shall reimburse Dr. Shulman up to $50,000 per year for any
direct medical-related expenses and prescription drug expenses he incurs in connection with a
bona fide medical condition, to the extent that such expenses are not covered by any health
plan in which he participates. Dr. Shulman shall not be reimbursed for the cost of any
medical insurance premiums.

	9.	 	Confidential Information; Noncompetition:

	 	(a)	 	Dr. Shulman shall not, during the term of this Agreement: (i) and for a period
of two (2) years following the termination of this Agreement, disclose to any person,
other than in the necessary course of business, any private, confidential or secret
information that belongs to DUSA (“DUSA Confidential Information”); or (ii) except to
the extent such activities are authorized, in writing, by DUSA, which authorization
shall not be unreasonably withheld and which shall be deemed granted in the event DUSA
does not respond, in writing, within 20 business days following DUSA’s receipt of Dr.
Shulman’s written request for such authorization, engage in any business activity in
direct competition with (by way of example without limitation, for the same indication)
the “Business of DUSA” conducted or proposed during the term of this Agreement in any
part of the world in which DUSA is doing business or actively pursuing business;
provided, however, that (A) Dr. Shulman’s participation in the private practice of
dermatology and (B) ownership of less than 5% of an equity interest in a business
entity in which Dr. Shulman does not consult, advise or otherwise provide services,
shall not be considered a business in competition with the Business of DUSA. The
“Business of DUSA” means: (1) the business of research,

- 3 -

 

	 	 	 	development and/or marketing of Photodynamic Therapy (PDT) or Photodetection (PD)
technology or on the treatment of actinic keratoses ; (2) the development and/or
marketing of ClindaReach®, Nicomide®, Nicomide-T®,
Meted®, Levulan®, Kerastick®, BLU-U®,
endoscopic sheath device or products directly competitive (i.e., medically or
therapeutically) with such products, and other complementary dermatology products
currently being marketed or developed by DUSA or that become actively marketed or
under development during Dr. Shulman’s employment or consultancy with DUSA and (3)
products or business opportunities that are being evaluated by DUSA or that become
under consideration for license, acquisition, marketing or development during Dr.
Shulman’s prior employment or this consultancy with DUSA, unless DUSA finally
rejects such opportunities during Dr. Shulman’s consultancy with DUSA. For greater
certainty, Dr. Shulman will not be in breach of his non-competition obligations
where, for example, he is involved in the marketing or development of a product that
is not directly competitive with DUSA’s products and employs chemical entities,
processes or mechanisms that are substantively different than the chemical entities,
processes or mechanisms employed by products that were marketed or under development
by DUSA during Dr. Shulman’s employment or consultancy with DUSA.

Without limiting the generality of the foregoing, Dr. Shulman shall not disclose, among other
things, any information about:

	 	(i)	 	newly developed products of DUSA;
	 
	 	(ii)	 	manufacturing processes and technologies;
	 
	 	(iii)	 	research in progress and any unpublished formula, findings, manuals,
or know-how;
	 
	 	(iv)	 	regulatory filings;
	 
	 	(v)	 	identity of and relationships to licensees of DUSA;
	 
	 	(vi)	 	finances, financial information and financial management systems of
DUSA and any other research, information or documents which he knows or reasonably
ought to know that DUSA regards as proprietary or confidential to any person other
than for DUSA’s purposes and shall not use for his purposes or for any purposes of
DUSA any such information or secrets which he may acquire in relation to the
business of DUSA.

	 	(b)	 	Notwithstanding any of the foregoing in this section, information, whether
confidential or proprietary or not, shall be exempt from the above confidentiality
provisions if said information:

	 	(i)	 	was in the public domain prior to the date of DUSA’s incorporation;

- 4 -

 

	 	(ii)	 	which has subsequently become public or which becomes public at any
time through no fault of Dr. Shulman; or
	 
	 	(iii)	 	is or in the future becomes readily available from third parties who
have no confidentiality obligations to DUSA.

	 	(c)	 	Dr. Shulman agrees that DUSA is and remains the exclusive owner of all DUSA
Confidential Information, including without limitation, all patent, copyright, trade secret,
trademark and other intellectual property rights therein. No license or any other right, including
any right of ownership, is granted to Dr. Shulman by this Agreement or by any disclosure under this
Agreement. Title to all inventions, whether or not patentable, conceived or reduced to practice or
derived from, or relying on the DUSA Confidential Information hereunder, including but not limited
to inventions involving DUSA Confidential Information (“Inventions”), shall be owned by DUSA.
	 
	 	(d) (i) 	 	Dr. Shulman agrees that all copyrights, patents, trade secrets, or other
intellectual property rights associated with any ideas, concepts, techniques,
inventions, processes, or works of authorship developed or created by Dr. Shulman
during the course of performing the services under this Agreement (collectively, the
“Work Product”) shall belong exclusively to DUSA and shall, to the extent possible, be
considered a “work made for hire” for DUSA. To the extent such work is determined not
to constitute “works made for hire” as a matter of law, Dr. Shulman hereby irrevocably
assigns and transfers to DUSA, as of the time of creation of the Work Product, any and
all right, title, or interest he may have in such Work Product. Upon request of DUSA
and at DUSA’s expense, Dr. Shulman shall take such further actions, including execution
and delivery of instruments of conveyance necessary to obtain legal protection in the
United States and foreign countries for such Work Product and for the purpose of
vesting title thereto in DUSA, or its nominee, as may be appropriate to give full and
proper effect to such assignment and to vest in DUSA complete title and ownership to
such Work Product.
	 
	 	(ii)	 	Notwithstanding anything to the contrary herein, Dr. Shulman shall be
free to use and employ his general skills, know-how, and expertise, and to use,
disclose, and employ any generalized ideas, concepts, know-how, methods,
techniques, or skills gained or learned during the course of any assignment, so
long as Dr. Shulman acquires and applies such information without disclosure of any
DUSA Confidential Information, without any unauthorized use or disclosure of Work
Product and without breach of the non-competition obligations set forth in this
Agreement.

	10.	 	Change of Control. In the event of a “Change of Control” (as defined below) arising
only out of a transaction between DUSA and Stiefel Laboratories, Inc. or any affiliate thereof
during the term of his employment or consultancy, Dr. Shulman shall be entitled, within five
(5) days of the closing date of such event, to receive a lump sum payment equal to three (3)
times his annual consulting fees hereunder (i.e., $175,000). For purposes of this Agreement,
a “Change of Control” shall mean a change of control of a nature that would be required to be
reported in response to Item 5 of Schedule 14D promulgated pursuant to Section 14 of the
Securities Exchange Act of 1934, as amended (the “1934 Act”), whether or not DUSA is then
subject to such reporting requirements;

- 5 -

 

provided that, without limitations, a Change of Control shall be deemed to have occurred if
(i) any person other than a trustee or other fiduciary holding securities under an employee
benefit plan of DUSA is or becomes the beneficial owner, directly or indirectly, of
securities of DUSA representing 20% or more of the combined voting power of DUSA’s then
outstanding securities and thereafter the Board adopts a resolution to the effect that, for
the purposes of this Agreement, a Change of Control of DUSA has occurred; such ownership
shall be as defined pursuant to Rule 13d-3 of the 1934 Act and includes mergers or
acquisitions whereby an outside party has in excess of 20% of the combined voting power;
(ii) when DUSA merges or consolidates with any other person or, entity other than a
subsidiary and, upon consummation of such transaction, holders of DUSA’s common stock
immediately prior to such transaction own less than 50% of the equity securities of the
surviving or consolidated entity; or (iii) a substantial portion of the assets of DUSA are
sold or transferred to another person or entity. No other Change of Control payment shall
be due and payable to Dr. Shulman under the terms of the Employment Agreement or this
Agreement.

	11.	 	Termination:

	 	(a)	 	Dr. Shulman may terminate this Agreement for any reason by providing DUSA with advance
written notice. In such case, DUSA shall pay Dr. Shulman through the date of termination.
	 
	 	(b)	 	DUSA may terminate this Agreement for cause. For purposes of this Agreement,
cause shall mean (i) Dr. Shulman’s complete physical or mental disability or other
complete inability to perform the consulting duties of his job for any reason for a
period in excess of six (6) consecutive months (i.e., permanent disability); (ii) Dr.
Shulman’s action which materially adversely affects the reputation of DUSA, or
disparages DUSA, or its officers, directors, consultants, or agents, as determined by
the Board in its sole discretion, exercising its reasonable judgment, (iii) Dr.
Shulman’s malfeasance or misconduct such as fraud, embezzlement, dishonesty, acts of
moral turpitude, or a felony conviction, or for other good cause materially detrimental
to DUSA, or (iv) breach of the confidentiality or non-compete obligations in this
Agreement. In the event of a termination for cause, Dr. Shulman shall be paid his
consulting fees, pro rated to the date of termination, except as otherwise provided in
Section 17 below.
	 
	 	(c)	 	Upon termination of this Agreement, for any reason whatsoever, Dr. Shulman shall
promptly return and deliver to DUSA all notes, memoranda, records, reports, manuals,
drawings, lists, photographs, promotional materials and other documents and tangible forms
of information belonging or relating to the business of DUSA and all copies or reproductions
of such items. Consulting fees shall be paid for services performed to the date of
termination.

	12.	 	Indemnification: DUSA shall, to the extent permitted by the laws of the State of New
Jersey, U.S.A., indemnify Dr. Shulman against any actual or threatened action, suit or
proceeding, whether civil, criminal, administrative or investigative, that arises as a
consequence of his duties as an employee, consultant, officer or director of DUSA. Such

- 6 -

 

indemnification will include such expenses as attorneys fees, judgments, fines and amounts
awarded or agreed to in settlement, provided that Dr. Shulman acted legally and in good
faith, or reasonably believed that his actions were legal and performed in good faith. The
termination of any action, suit or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendre shall not, of itself, create a presumption that his actions
were illegal or not performed in good faith.

	13.	 	Provisions Operating Following Termination: Notwithstanding any separation from
service of Dr. Shulman’s, any provision of this Agreement necessary to give it efficacy shall
continue in full force and effect following such termination, including without limitation,
Sections 4-17, inclusive, .

	14.	 	General Release: Dr. Shulman acknowledges and understands that this Agreement shall
not become effective unless and until he executes the General Release attached hereto as
Exhibit A.

	15.	 	Notices: Any notice to be given in connection with this Agreement shall be given in
writing and may be given by personal delivery, by certified mail, postage prepaid, or by
facsimile transmission, so long as receipt of such transmission is available, addressed to the
recipient as follows:

	 	 	 	 	 
	 

	 	To:
	 	D. Geoffrey Shulman, MD, FRCPC
	 

	 	 	 	256 Russell Hill Road
	 

	 	 	 	Toronto, Ontario M4V 2T2
	 

	 	 	 	Canada
	 
	 	 	 	 
	 

	 	To:
	 	DUSA Pharmaceuticals, Inc.
	 

	 	 	 	25 Upton Drive
	 

	 	 	 	Wilmington, Massachusetts 01887
	 

	 	 	 	Attn: President and Chief Executive Officer

or to such other address or individual as may be designated by notice by either party to the
other. Any notice given by personal delivery shall be deemed to have been given on the day
of actual delivery and, if made or given by certified mail, on the third day, other than a
Saturday, Sunday, or a statutory holiday in Toronto, Ontario, CANADA following the deposit
thereof with the U.S. Postal Service.

	16.	 	Governing Law: This Agreement shall be governed by and construed in accordance with
the laws of the State of New Jersey, without giving effect to principles of conflict of laws.
The parties consent to the jurisdiction of the federal district courts encompassing New
Jersey.

	17.	 	Assignment;Benefit of Agreement: Dr. Shulman shall have no power to assign, transfer,
pledge, hypothecate or otherwise encumber the right to receive payments and any attempt to do
so shall be void and will not be recognized by the Board; except that in the event of his
permanent disability or death during the term of this Agreement, Dr. Shulman or Dr. Shulman’s
beneficiary or estate, as he directs, shall be entitled to receive, any remaining consulting
fees not yet paid to Dr. Shulman under the terms of this Agreement until this Agreement
expires. This Agreement shall inure to the benefit of and be binding upon the

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heirs, executives, administrators and legal personal representatives of Dr. Shulman and to
and upon the successors and assigns of DUSA, respectively. DUSA shall assign this Agreement
to any successor-in-interest whether by merger, consolidation, or sale or disposition of
substantially all of its assets or voting control of its securities.

	18.	 	Entire Agreement: This Agreement constitutes the entire agreement between the
parties hereto with respect to the terms and conditions of this consultancy and cancels and
supersedes any prior understandings and agreements between the parties to this Agreement,
including without limitation, the Employment Agreement. There are no representations,
warranties, forms, conditions, undertakings or collateral agreements expressed, implied or
statutory between the parties hereto other than as expressly set forth in this Agreement, the
DUSA Deferred Compensation Plan, and the option agreements and equity plan(s) governing the
terms and conditions of Dr. Shulman’s Options or restricted stock awards.

	19.	 	Severability: Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision of any other jurisdiction but this
Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

	20.	 	Amendments and Waivers: Any provision of this Agreement may be amended or waived
only with prior written consent of DUSA and Dr. Shulman.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above
written.

ATTEST:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	DUSA PHARMACEUTICALS, INC.	 	 
	/s/ Susan Tennent
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert Doman
 

	 	 
	Name: Susan Tennent

	 	 	 	Name:
	 	Robert Doman	 	 
	 

	 	 	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Chris Foulon
	 	 	 	 	 	 	 	 
	 	 	 	 	/s/ D. Geoffrey Shulman	 	 
	 	 	 	 	 	 	 
	Name: Chris Foulon	 	 	 	D. Geoffrey Shulman, MD, FRCPC	 	 

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EXHIBIT A

GENERAL RELEASE

     This General Release (“Agreement and Release”) is made by and between D. Geoffrey Shulman, MD,
FRCPC (“Dr. Shulman”) and DUSA Pharmaceuticals, Inc. (“DUSA”) as of December 1st, 2008 (the
“Effective Date”).

     WHEREAS, Dr. Shulman is currently employed by DUSA as its Chief Strategic Officer and Dr.
Shulman serves as the Chairman of DUSA’s Board of Directors;

     WHEREAS, DUSA and Dr. Shulman have agreed that, effective with the signing by DUSA and Dr.
Shulman of a certain Consulting Agreement to which this Exhibit A is attached and incorporated by
reference (the “Consulting Agreement”), Dr. Shulman will voluntarily resign from his role as DUSA’s
Chief Strategic Officer and Chairman of DUSA’s Board of Directors; and

     WHEREAS, the effectiveness of the Consulting Agreement is conditioned upon Dr. Shulman’s
execution of this General Release.

     NOW THEREFORE, in consideration of the mutual commitments set forth in this Agreement and
Release, DUSA and Dr. Shulman agree as follows:

	1.	 	Release and Covenant Not to Sue.

     1.1 Upon execution of this Consulting Agreement and General Release and its Effective Date,
and in consideration of the offer of continuing to provide consulting services and the
consulting fees and other consideration set forth in the Consulting Agreement, Dr. Shulman, on
behalf of himself, his spouse, his heirs, executors, administrators, assigns, agents and
representatives, hereby unconditionally releases and completely and forever discharges DUSA, as
well as the present and former officers, directors, employees, attorneys, and agents of each of
these entities, individually and in their official capacities, and any of their employee 401(k)
or other employee benefit plans as well as the administrators, fiduciaries, parties-in-interest,
employees, agents, attorneys and trustees of any such plans (collectively referenced throughout
this Consulting Agreement and General Release as the “Released Parties”), from any and all of the
following claims, prayers for relief or alleged damages, of whatever nature, known or unknown,
existing on or before the date he executed this Consulting Agreement and General Release,
including but not limited to: (1) any and all claims, issues, prayers for relief and any other
causes of action arising during, from or by virtue of Dr. Shulman’s employment with any Released
Party, whether real or perceived, including, but not limited to, all claims for common law tort,
negligence, defamation, intentional or negligent infliction of emotional distress, wrongful,
retaliatory or abusive discharge, invasion of privacy, estoppel, fraud, breach of any public
policy, express or implied contract or covenant of good faith and fair dealing, as well as
employee benefit claims, or claims relating to any wages or bonus entitlements, or payments of
any nature including debts, accounts, attorneys’ fees, costs, disbursements or

 

 

reimbursements; and (2) any claims arising under any federal, state, provincial and/ or
local laws, statutes, regulations, ordinances or rules prohibiting unlawful employment
discrimination, harassment, retaliation or otherwise relating to Dr. Shulman’s employment with
any Released Party or his separation from that employment, including but not limited to the Equal
Pay Act of 1963, 29 U.S.C. § 206(d) (“EPA”); Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. § 2000e, et seq. (“Title VII”); the Age Discrimination in Employment Act of
1967, as amended, 29 U.S.C. § 621, et seq. (“ADEA”); the Vietnam Era Veterans Readjustment
Assistance Act of 1974, 38 U.S.C. § 2012, et seq. (“VEVRAA”); the Americans With Disabilities
Act, 42 U.S.C. § 12101, et seq. (“ADA”); the Occupational Safety and Health Act, 29 U.S. § 651,
et seq. (“OSHA”); the Older Workers Benefit Protection Act, 29 U.S.C. § 626(f), et seq.
(“OWBPA”); the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. § 1161, et seq.
(“COBRA”); the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101, et seq.
(“WARN”); the Federal Family and Medical Leave Act, 29 U.S.C. § 2601, et seq. (“FMLA”); the
Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et seq. (“ERISA”); the
Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq.; the Fair Labor Standards Act, 29 U.S.C.
§ 215(a)(3), et seq. (“FLSA”); the Civil Rights Act of 1991, 42 U.S.C. §§ 1981, 1983, 1985, 1986
and 1988; the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. § 1161, et seq.
(“COBRA”); the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101, et seq.
(“WARN”); the Federal Family and Medical Leave Act, 29 U.S.C. § 2601, et seq. (“FMLA”); the
Federal Food Drug & Cosmetics Act, 21 U.S.C. § 321 et seq., the New Jersey Law Against
Discrimination, N.J.S.A. 10:5-1, et seq. (“NJLAD”); the New Jersey Discrimination in Wages Law,
N.J.S.A. 10:5-1, et seq.; the New Jersey Temporary Disability Law, N.J.S.A. 43:21-25, et seq.;
the New Jersey Wage Payment Law, N.J.S.A. 34:11-4.1, et seq.; the New Jersey State Wage and Hour
Law, N.J.S.A. 34:11-56a, et seq.; the New Jersey Conscientious Employee Protection Act, N.J.S.A.
34:19-1, et seq. (“CEPA”); the New Jersey Family Leave Act, N.J.S.A. 34:11B-1, et seq. (“NJFLA”);
the New Jersey Civil Rights Act, N.J.S.A. 10:6-1, et seq. (“NJCRA”); the United States,
Massachusetts, and New Jersey Constitutions. and the Employment Standards Act, 2000 (S.O. 2000,
c.41), the Ontario Human Rights Code (R.S.O. 1990, c. H.19), the Workplace Safety and Insurance
Act, 1997 (S.O. 1997, c. 16, Sch. A.) and/or the Pension Benefits Act (R.S.O. 1990, c. P.8)
and/or their successors. Dr. Shulman understands that the laws set forth above give him important
remedies that relate to, inter alia, claims that he has or may have arising out of or in
connection with his employment by any Released Party or the termination of that employment, and
he freely and voluntarily gives up those remedies and claims after being encouraged to and having
had the opportunity to consult with legal counsel.

     1.2 Upon execution of this Consulting Agreement and General Release and its Effective Date,
Dr. Shulman, for full consideration as set forth in the Consulting Agreement, and on behalf of
himself, his spouse, his heirs, executors, administrators, assigns, agents and representatives,
hereby agrees not to file a lawsuit or claim against any Released Party in any court of the
United States, or Canada, or any state, provincial or local governmental unit thereof, or with
any arbitration panel concerning any claim, demand, issue or cause of action covered by this
Consulting Agreement and General Release. Notwithstanding any other language in this Consulting
Agreement and General Release, the parties understand that this Consulting Agreement does not
prohibit Dr. Shulman from filing any claim or action seeking to enforce the terms of this
Consulting Agreement and General Release. The parties further

- 3 -

 

understand that this Consulting Agreement and General Release shall not be construed as
prohibiting Dr. Shulman from filing an administrative charge of alleged employment discrimination
or participating or cooperating with any administrative agency in the investigation of an
administrative charge of alleged employment discrimination under Title VII, the ADEA, the ADA,
the EPA, or FEPA. Dr. Shulman, however, waives his right to any individual monetary, injunctive
relief, or other recovery should any federal, state or local administrative agency pursue any
claims on his behalf arising out of or relating to his employment with and/or separation from
employment with DUSA or any of the Releases in this Separation Agreement. This means that by
signing this Consulting Agreement and General Release, Dr. Shulman will have waived any right he
had to bring a lawsuit or obtain an individual recovery if an administrative agency pursues a
claim against DUSA based on any actions taken by any of them up to the date of his execution of
this Agreement and Release, and that Dr. Shulman will have released and discharged DUSA of any
and all claims of any nature arising up to the date he has executed this Consulting Agreement and
General Release.

	2.	 	No Admission of Liability.

     2.1 Dr. Shulman acknowledges and agrees that DUSA’s entry into this Consulting Agreement and
General Release is not to be construed as, and is not admission that, DUSA or any Released Party
violated any duties or obligations owed to Dr. Shulman, or treated Dr. Shulman improperly,
unlawfully or unfairly in any manner whatsoever, or are liable to him in any way. Neither shall
this Consulting Agreement and General Release be construed to be, or be admissible in any
proceedings as, evidence of any such admission by DUSA as to any alleged violation of any federal,
state or local law, common law, agreement, rule, regulation or order.

	3.	 	Other Provisions.

     3.1 The parties acknowledge and agree that this Consulting Agreement and General Release
contains the full, final and complete agreement, understandings and representations of the
parties with respect to the topics contained herein, including but not limited to Dr. Shulman’s
consulting arrangement and the terms of his resignation from any position with any Released
Party, and it supersedes and extinguishes all prior or contemporaneous written or oral contracts,
negotiations, agreements, representations, inducements or policies between Dr. Shulman and DUSA
or any other Released Party, except for the provisions of the various stock option and restricted
stock award agreements which remain in full force and effect.

     3.2 The parties agree that this Consulting Agreement and General Release is to be governed
by, construed and enforced, in all respects, in accordance with the laws of the State of New
Jersey, exclusive of any choice of law rules. Any dispute concerning this Consulting Agreement
and General Release shall be brought in, and the parties hereby consent to the personal
jurisdiction of the courts of the State of New Jersey (to the extent that subject matter
jurisdiction exists only).

- 4 -

 

     3.3 This Consulting Agreement and General Release may be modified, altered or terminated only
by an express written agreement between DUSA and Dr. Shulman, which agreement must be signed by
both parties or their duly authorized agents, and expressly reference and attach a copy of this
Consulting Agreement and General Release to be effective.

     3.4 Any party’s waiver of a breach of any provision hereof shall not operate or be construed
as a waiver of any subsequent breach by any party.

     3.5 The article headings contained herein are for convenience only and shall not in any way
affect the interpretation, construction or enforceability of any provision of this Consulting
Agreement and General Release.

     3.6 If any provision of this Consulting Agreement and General Release is determined to be
invalid or unenforceable, either in whole or in part, in any jurisdiction or forum, the parties
hereby waive such provision to the extent that it is found to be invalid and unenforceable. Such
provision shall, to the extent allowable by law, be modified, so that it becomes enforceable. Any
such modification shall not affect the validity or enforceability of any other provision of this
Consulting Agreement and General Release, all of which shall remain in full force and effect.

     3.7 This Consulting Agreement and General Release may be executed in more than one
counterpart, and each counterpart shall be considered an original, but all of which together shall
constitute one and the same.

     3.8 This Consulting Agreement and General Release shall not be assignable by Dr. Shulman but
it shall be binding upon his heirs, estate, executors, administrators and legal representatives.
This Consulting Agreement and General Release shall be freely assignable by DUSA without
restriction and without the need for any additional consent from Dr. Shulman and shall be deemed
automatically assigned by DUSA upon the company’s purchase by, or merger or consolidation with, any
other entity.

     3.9 Dr. Shulman further warrants that he has had the opportunity to review and consider this
Consulting Agreement and General Release for twenty-one (21) days, and that any material or
immaterial changes to this Consulting Agreement and General Release will not restart the running
of the twenty-one (21) day period. Dr. Shulman also acknowledges and agrees that, by this
writing, he has been advised to seek the guidance and advice of legal counsel in considering the
terms and effect of this Consulting Agreement and General Release, and that he has had been
provided with the opportunity to do so prior to executing this Consulting Agreement and General
Release. Dr. Shulman also acknowledges by signing this Consulting Agreement and General Release
that he has carefully read this Consulting Agreement and General Release, that he understands
completely its contents, that he has had an opportunity to have an attorney explain those
contents to him, and that he has executed this Consulting Agreement and General Release of his
own free will, act and deed.

- 5 -

 

     3.10 To the extent Dr. Shulman signs the Consulting Agreement and General Release prior to
the expiration of the twenty-one (21) day period and delivers an executed original to DUSA, he
additionally acknowledges and warrants that he has voluntarily and knowingly waived the
twenty-one (21) day review period and that the decision to accept such a shortened period of time
is not induced by DUSA or any Released Party through fraud, misrepresentation, a threat to
withdraw or alter the offer prior to the expiration of the twenty-one (21) day time period, or by
providing different terms to workers who sign releases prior to the expiration of such time
period.

     3.11 Dr. Shulman understands and expressly agrees that, following his execution of this
Consulting Agreement and General Release and delivery of same to DUSA, he shall have a period of
seven (7) days during which time he may revoke the Consulting Agreement and General Release by
delivering written notification to DUSA, no later than the close of business on the seventh
(7th) calendar day after he signs this Consulting Agreement and General Release, and
that this Consulting Agreement and General Release shall not be effective or enforceable prior to
the expiration of that period. This Consulting Agreement and General Release shall be forever
binding and enforceable once the seven (7) day period has expired. For purposes of this
Consulting Agreement and General Release, the term “Effective Date” referenced throughout this
Consulting Agreement and General Release shall mean the eighth (8th) calendar day
after Dr. Shulman executes this Consulting Agreement and General Release and DUSA receives an
effective, unrevoked original copy. If Dr. Shulman revokes this Consulting Agreement and General
Release, the Consulting Agreement and General Release will not be effective and enforceable and
he will not receive the benefits described in this Consulting Agreement and General Release.

     3.12 All notices, requests, demands and other communications hereunder to DUSA must be in
writing and shall be deemed to have been given if delivered by hand or sent via regular and
certified mail, return receipt requested, addressed as follows:

	 	 	 
	 

	 	If to DUSA:
	 
	 	 
	 

	 	President and CEO
	 

	 	DUSA Pharmaceuticals, Inc.
	 

	 	25 Upton Drive
	 

	 	Wilmington, Massachusetts 01887
	 
	 	 
	 

	 	If to Dr. Shulman:
	 
	 	 
	 

	 	D. Geoffrey Shulman, MD, FRCPC
	 

	 	256 Russell Hill Road
	 

	 	Toronto, Ontario M4V 2T2
	 

	 	Canada

- 6 -

 

[Signature Page Follows]

- 7 -

 

     IN WITNESS WHEREOF, intending to be forever legally bound hereby and for full consideration,
the parties have executed this Consulting Agreement and General Release, on the date(s) set forth
below.

	 	 	 	 	 	 	 
	Witness:	 	 	 	DUSA Pharmaceuticals, Inc.
	 
	 	 	 	 	 	 
	/s/ Susan Tennent

	 	 	 	By:
	 	/s/ Robert Doman
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robert Doman
	 

	 	 	 	Date:
	 	12-5-08
	 
	 	 	 	 	 	 
	Witness:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Susan Tennent

	 	 	 	/s/
D. Geoffrey Shulman
	 	 	 	 	 
	 	 	 	 	D. Geoffrey Shulman, MD
	 
	 	 	 	 	 	 
	/s/ Chris Foulon
 

Chris Foulon

	 	 
	 	Date:
	 	December 1, 2008

- 8 -

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