Document:

exv4w1

 

EXHIBIT 4.1

FORM OF SENIOR INDENTURE

 

 

AFFILIATED COMPUTER SERVICES, INC.

as Issuer

and

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

as Trustee

Indenture

Dated as of _____ __, 2005

Debt Securities

 

 

 

 

AFFILIATED COMPUTER SERVICES, INC.

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture, dated as of ________ __, 2005

______________________________

	 	 	 	 	 	 	 
	    Section of	 	 
	Trust Indenture	 	Section(s) of
	  Act of 1939	 	Indenture
	§ 310

	 	(a)(1)
	 	7.10
	

	 	(a)(2)
	 	7.10
	

	 	(a)(3)
	 	Not Applicable

	

	 	(a)(4)
	 	Not Applicable

	

	 	(a)(5)
	 	7.10
	

	 	(b)
	 	7.08, 7.10
	§ 311

	 	(a)
	 	7.11
	

	 	(b)
	 	7.11
	

	 	(c)
	 	Not Applicable

	§ 312

	 	(a)
	 	2.07
	

	 	(b)
	 	10.03
	

	 	(c)
	 	10.03
	§ 313

	 	(a)
	 	7.06
	

	 	(b)
	 	7.06
	

	 	(c)
	 	7.06
	

	 	(d)
	 	7.06
	§ 314

	 	(a)
	 	4.03, 4.04
	

	 	(b)
	 	Not Applicable

	

	 	(c)(1)
	 	10.04
	

	 	(c)(2)
	 	10.04
	

	 	(c)(3)
	 	Not Applicable

	

	 	(d)
	 	Not Applicable

	

	 	(e)
	 	10.05
	§ 315

	 	(a)
	 	7.01(b)
	

	 	(b)
	 	7.05
	

	 	(c)
	 	7.01(a)
	

	 	(d)
	 	7.01(c)
	

	 	(d)(1)
	 	7.01(c)(1)
	

	 	(d)(2)
	 	7.01(c)(2)
	

	 	(d)(3)
	 	7.01(c)(3)
	

	 	(e)
	 	6.11
	§ 316

	 	(a)(1)(A)
	 	6.05
	

	 	(a)(1)(B)
	 	6.04
	

	 	(a)(2)
	 	Not Applicable

	

	 	(a)(last sentence)
	 	2.11
	

	 	(b)
	 	6.07
	§ 317

	 	(a)(1)
	 	6.08
	

	 	(a)(2)
	 	6.09
	

	 	(b)
	 	2.06
	§ 318

	 	(a)
	 	10.01

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 
	 	 	 	 	 	 
	SECTION 1.01

	 	Definitions
	 	 	1	 
	SECTION 1.02

	 	Other Definitions
	 	 	5	 
	SECTION 1.03

	 	Incorporation by Reference of Trust Indenture Act
	 	 	6	 
	SECTION 1.04

	 	Rules of Construction
	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE II
	THE SECURITIES
	 
	 	 	 	 	 	 
	SECTION 2.01

	 	Amount Unlimited; Issuable in Series
	 	 	7	 
	SECTION 2.02

	 	Denominations
	 	 	10	 
	SECTION 2.03

	 	Forms Generally
	 	 	10	 
	SECTION 2.04

	 	Execution, Authentication, Delivery and Dating
	 	 	10	 
	SECTION 2.05

	 	Registrar and Paying Agent
	 	 	12	 
	SECTION 2.06

	 	Paying Agent to Hold Money in Trust
	 	 	13	 
	SECTION 2.07

	 	Holder Lists
	 	 	13	 
	SECTION 2.08

	 	Transfer and Exchange
	 	 	13	 
	SECTION 2.09

	 	Replacement Securities
	 	 	14	 
	SECTION 2.10

	 	Outstanding Securities
	 	 	14	 
	SECTION 2.11

	 	Original Issue Discount, Foreign-Currency Denominated
and Treasury Securities
	 	 	15	 
	SECTION 2.12

	 	Temporary Securities
	 	 	15	 
	SECTION 2.13

	 	Cancellation
	 	 	15	 
	SECTION 2.14

	 	Payments; Defaulted Interest
	 	 	16	 
	SECTION 2.15

	 	Persons Deemed Owners
	 	 	16	 
	SECTION 2.16

	 	Computation of Interest
	 	 	16	 
	SECTION 2.17

	 	Global Securities; Book-Entry Provisions
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE III
	REDEMPTION
	 
	 	 	 	 	 	 
	SECTION 3.01

	 	Applicability of Article
	 	 	19	 
	SECTION 3.02

	 	Notice to the Trustee
	 	 	19	 
	SECTION 3.03

	 	Selection of Securities To Be Redeemed
	 	 	19	 
	SECTION 3.04

	 	Notice of Redemption
	 	 	19	 
	SECTION 3.05

	 	Effect of Notice of Redemption
	 	 	20	 
	SECTION 3.06

	 	Deposit of Redemption Price
	 	 	20	 
	SECTION 3.07

	 	Securities Redeemed or Purchased in Part
	 	 	21	 
	SECTION 3.08

	 	Purchase of Securities
	 	 	21	 
	SECTION 3.09

	 	Mandatory and Optional Sinking Funds
	 	 	21	 
	SECTION 3.10

	 	Satisfaction of Sinking Fund Payments with Securities
	 	 	22	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 3.11

	 	Redemption of Securities for Sinking Fund
	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	COVENANTS
	 
	 	 	 	 	 	 
	SECTION 4.01

	 	Payment of Securities
	 	 	23	 
	SECTION 4.02

	 	Maintenance of Office or Agency
	 	 	23	 
	SECTION 4.03

	 	SEC Reports; Financial Statements
	 	 	24	 
	SECTION 4.04

	 	Compliance Certificate
	 	 	24	 
	SECTION 4.05

	 	Existence
	 	 	24	 
	SECTION 4.06

	 	Waiver of Stay, Extension or Usury Laws
	 	 	25	 
	SECTION 4.07

	 	Additional Amounts
	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE V
	SUCCESSORS
	 
	 	 	 	 	 	 
	SECTION 5.01

	 	Limitations on Mergers, Consolidations and Other Transactions
	 	 	26	 
	SECTION 5.02

	 	Successor Person Substituted
	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	DEFAULTS AND REMEDIES
	 
	 	 	 	 	 	 
	SECTION 6.01

	 	Events of Default
	 	 	26	 
	SECTION 6.02

	 	Acceleration
	 	 	29	 
	SECTION 6.03

	 	Other Remedies
	 	 	29	 
	SECTION 6.04

	 	Waiver of Defaults
	 	 	29	 
	SECTION 6.05

	 	Control by Majority
	 	 	30	 
	SECTION 6.06

	 	Limitations on Suits
	 	 	30	 
	SECTION 6.07

	 	Rights of Holders to Receive Payment
	 	 	31	 
	SECTION 6.08

	 	Collection Suit by Trustee
	 	 	31	 
	SECTION 6.09

	 	Trustee May File Proofs of Claim
	 	 	31	 
	SECTION 6.10

	 	Priorities
	 	 	32	 
	SECTION 6.11

	 	Undertaking for Costs
	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	TRUSTEE
	 
	 	 	 	 	 	 
	SECTION 7.01

	 	Duties of Trustee
	 	 	33	 
	SECTION 7.02

	 	Rights of Trustee
	 	 	34	 
	SECTION 7.03

	 	May Hold Securities
	 	 	34	 
	SECTION 7.04

	 	Trustee’s Disclaimer
	 	 	35	 
	SECTION 7.05

	 	Notice of Defaults
	 	 	35	 
	SECTION 7.06

	 	Reports by Trustee to Holders
	 	 	35	 
	SECTION 7.07

	 	Compensation and Indemnity
	 	 	35	 
	SECTION 7.08

	 	Replacement of Trustee
	 	 	36	 
	SECTION 7.09

	 	Successor Trustee by Merger, etc
	 	 	38	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 7.10

	 	Eligibility; Disqualification
	 	 	38	 
	SECTION 7.11

	 	Preferential Collection of Claims Against Company
	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	DISCHARGE OF INDENTURE
	 
	 	 	 	 	 	 
	SECTION 8.01

	 	Termination of Company’s Obligations
	 	 	39	 
	SECTION 8.02

	 	Application of Trust Money
	 	 	43	 
	SECTION 8.03

	 	Repayment to Company
	 	 	43	 
	SECTION 8.04

	 	Reinstatement
	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	SUPPLEMENTAL INDENTURES AND AMENDMENTS
	 
	 	 	 	 	 	 
	SECTION 9.01

	 	Without Consent of Holders
	 	 	43	 
	SECTION 9.02

	 	With Consent of Holders
	 	 	45	 
	SECTION 9.03

	 	Compliance with Trust Indenture Act
	 	 	47	 
	SECTION 9.04

	 	Revocation and Effect of Consents
	 	 	47	 
	SECTION 9.05

	 	Notation on or Exchange of Securities
	 	 	47	 
	SECTION 9.06

	 	Trustee to Sign Amendments, etc
	 	 	48	 
	 
	 	 	 	 	 	 
	ARTICLE X
	MISCELLANEOUS
	 
	 	 	 	 	 	 
	SECTION 10.01

	 	Trust Indenture Act Controls
	 	 	48	 
	SECTION 10.02

	 	Notices
	 	 	48	 
	SECTION 10.03

	 	Communication by Holders with Other Holders
	 	 	49	 
	SECTION 10.04

	 	Certificate and Opinion as to Conditions Precedent
	 	 	49	 
	SECTION 10.05

	 	Statements Required in Certificate or Opinion
	 	 	50	 
	SECTION 10.06

	 	Rules by Trustee and Agents
	 	 	50	 
	SECTION 10.07

	 	Legal Holidays
	 	 	50	 
	SECTION 10.08

	 	No Recourse Against Others
	 	 	50	 
	SECTION 10.09

	 	Governing Law
	 	 	50	 
	SECTION 10.10

	 	No Adverse Interpretation of Other Agreements
	 	 	51	 
	SECTION 10.11

	 	Successors
	 	 	51	 
	SECTION 10.12

	 	Severability
	 	 	51	 
	SECTION 10.13

	 	Counterpart Originals
	 	 	51	 
	SECTION 10.14

	 	Table of Contents, Headings, etc
	 	 	51	 

iii

 

          INDENTURE dated as of ______ ___, 2005 between Affiliated Computer Services, Inc., a Delaware
corporation (the “Company”), and The Bank of New York Trust Company, N.A., as trustee (the
“Trustee”).

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s unsecured debentures, notes or other evidences of
indebtedness (the “Securities”) to be issued from time to time in one or more series as provided in
this Indenture:

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01 Definitions.

          “Additional Amounts” means any additional amounts required by the express terms of a Security
or by or pursuant to a Board Resolution, under circumstances specified therein or pursuant thereto,
to be paid by the Company with respect to certain taxes, assessments or other governmental charges
imposed on certain Holders and that are owing to those Holders.

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

          “Agent” means any Registrar or Paying Agent.

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

          “Board of Directors” means the Board of Directors of the Company or any committee thereof duly
authorized, with respect to any particular matter, to act by or on behalf of the Board of Directors
of the Company.

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

          “Business Day” means any day that is not a Legal Holiday.

          “Capital Stock” means, with respect to any corporation, any and all shares, interests, rights
to purchase (other than convertible or exchangeable Debt), warrants, options, participations or
other equivalents of or interests (however designated) in stock issued by that corporation.

1

 

          “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor corporation shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean that successor corporation; provided, however, that
for purposes of any provision contained herein which is required by the TIA, “Company” shall also
mean each other obligor (if any) on the Securities of a series.

          “Company Order” and “Company Request” mean, respectively, a written order or request signed in
the name of the Company by two Officers of the Company, and delivered to the Trustee.

          “Corporate Trust Office” of the Trustee means the office of the Trustee located at 600 North
Pearl Street, Suite 420, Dallas, Texas 75201, and as may be located at such other address as the
Trustee may give notice to the Company.

          “Debt” of any Person means, without duplication, (i) all indebtedness of that Person for
borrowed money (whether or not the recourse of the lender is to the whole of the assets of that
Person or only to a portion thereof), (ii) all obligations of that Person evidenced by bonds,
debentures, notes or other similar instruments, (iii) all obligations of that Person in respect of
letters of credit or other similar instruments (or reimbursement obligations with respect
thereto), other than standby letters of credit, bid or performance bonds and other similar
obligations issued by or for the account of that Person in the ordinary course of business, to the
extent not drawn or, to the extent drawn, if that drawing is reimbursed not later than 30 Business
Days following demand for reimbursement, (iv) all obligations of that Person to pay the deferred
and unpaid purchase price of property or services, except trade payables, advances on contracts and
accrued expenses arising in the ordinary course of business, (v) all capitalized lease obligations
of that Person, (vi) all Debt of others secured by a lien (as defined in the indenture supplement
relating to a series of Securities) on any asset of that Person, whether or not that Debt is
assumed by that Person (provided that if the obligations so secured have not been assumed in full
by that Person or are not otherwise that Person’s legal liability in full, then those obligations
shall be deemed to be in an amount equal to the greater of (a) the lesser of (1) the full amount of
those obligations and (2) the fair market value of those assets, as determined in good faith by the
board of directors or other managing body of that Person and (b) the amount of obligations as have
been assumed by that Person or which are otherwise that Person’s legal liability), and (vii) all
guarantees by that Person of or with respect to Debt of others (other than endorsements in the
ordinary course of business), in each case to the extent of the Debt guaranteed.

          “Default” means any event, act or condition that is, or after notice or the 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 whole
or in part in global form, the Person specified pursuant to Section 2.01 hereof as the initial
Depositary with respect to the Securities of that series, until a successor shall have been
appointed and become such pursuant to the applicable provision of this Indenture, and thereafter
“Depositary” shall mean or include that successor.

2

 

          “Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United
States as at the time shall be legal tender for the payment of public and private debt.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute.

          “GAAP” means generally accepted accounting principles in the United States as in effect from
time to time set forth in the opinions and pronouncements of the Accounting Principles Board and
the American Institute of Certified Public Accountants and the statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession of the United States, which are
applicable to the circumstances as of the date of determination.

          “Global Security” of any series means a Security of that Series that is issued in global form
in the name of the Depositary with respect thereto or its nominee.

          “Government Obligations” means, with respect to a series of Securities, direct obligations of
the government that issues the currency in which the Securities of the series are payable for the
payment of which the full faith and credit of that government is pledged, or obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of that government,
the payment of which is unconditionally guaranteed as a full faith and credit obligation by that
government.

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

          “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the
provisions hereof, and includes the terms of a particular series of Securities established as
contemplated by Section 2.01.

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

          “Interest Payment Date,” when used with respect to any Security, shall have the meaning
assigned to that term in the Security as contemplated by Section 2.01.

          “Issue Date” means, with respect to Securities of a series, the date on which the Securities
of that series are originally issued under this Indenture.

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in any of
The City of New York, New York, Dallas, Texas or a Place of Payment are authorized or obligated by
law, regulation or executive order to remain closed.

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

3

 

          “Officer” means the Chairman of the Board, the President, any Vice Chairman of the Board, any
Vice President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary or any Assistant Secretary of a Person.

          “Officers’ Certificate” means a certificate signed by two Officers of a Person.

          “Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable
to the Trustee. That counsel may be an employee of or counsel to the Company or the Trustee.

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

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

          “Place of Payment” means, with respect to the Securities of any series, the place or places
where, subject to the provisions of Section 4.02, the principal of, premium (if any) on and
interest on the Securities of that series are payable as specified in accordance with Section 2.01.

          “principal” of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on the Security.

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

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

          “Rule 144A Securities” means Securities of a series designated pursuant to Section 2.01 as
entitled to the benefits of Section 4.03(b).

          “SEC” means the Securities and Exchange Commission.

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

          “Security Custodian” means, with respect to Securities of a series issued in global form, the
Trustee for Securities of that series, as custodian with respect to the Securities of that series,
or any successor entity thereto.

4

 

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

          “Subsidiary” means any corporation or other entity of which at least a majority of the
outstanding stock or other beneficial interests having by the terms thereof ordinary voting power
to elect a majority of the full board of directors or other governing body of such corporation or
other entity (irrespective of whether or not at the time stock or other beneficial interests of any
other class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by the Company, or by one or more Subsidiaries,
or by the Company and one or more Subsidiaries.

          “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb), as in
effect on the date hereof.

          “Trust Officer” means any officer or assistant officer of the Trustee assigned by the Trustee
to administer its corporate trust matters.

          “Trustee” means the Person named as such above until a successor replaces it in accordance
with the applicable provisions of this Indenture, and thereafter “Trustee” means 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 means the Trustee with respect to Securities of that
series.

          “United States” means the United States of America (including the States and the District of
Columbia) and its territories and possessions (including Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands).

          “United States Alien” means any Person who, for United States federal income tax purposes, is
a foreign corporation, a nonresident alien individual, a nonresident alien or foreign fiduciary of
an estate or trust, or a foreign partnership.

          “U.S. Government Obligations” means Government Obligations with respect to Securities payable
in Dollars.

SECTION 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined
	          
    Term	 	in Section
	“Bankruptcy Custodian”

	 	 	6.01	 
	“Conversion Event”

	 	 	6.01	 
	“covenant defeasance”

	 	 	8.01	 
	“Event of Default”

	 	 	6.01	 
	“Exchange Rate”

	 	 	2.11	 
	“Judgment Currency”

	 	 	6.10	 

5

 

	 	 	 	 	 
	 	 	Defined
	          
    Term	 	in Section
	“legal defeasance”

	 	 	8.01	 
	“mandatory sinking fund payment”

	 	 	3.09	 
	“optional sinking fund payment”

	 	 	3.09	 
	“Paying Agent”

	 	 	2.05	 
	“Registrar”

	 	 	2.05	 
	“Required Currency”

	 	 	6.10	 
	“Successor”

	 	 	5.01	 

SECTION 1.03 Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

          “Commission” means the SEC.

          “indenture securities” means the Securities.

          “indenture security holder” means a Holder.

          “indenture to be qualified” means this Indenture.

          “indenture trustee” or “institutional trustee” means the Trustee.

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

          All terms used in this Indenture that are defined by the TIA, defined by a TIA reference to
another statute or defined by an SEC rule under the TIA have the meanings so assigned to them.

SECTION 1.04 Rules of Construction.

          Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

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

     (3) “or” is not exclusive;

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

     (5) provisions apply to successive events and transactions; and

6

 

     (6) all references in this instrument to Articles and Sections are references to the
corresponding Articles and Sections in and of this instrument.

ARTICLE II

THE SECURITIES

SECTION 2.01 Amount Unlimited; Issuable in Series.

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

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

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

     (2) if there is to be a limit, the limit on the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered on registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section 2.08, 2.09,
2.12, 2.17, 3.07 or 9.05 and except for any Securities that, pursuant to Section 2.04 or
2.17, are deemed never to have been authenticated and delivered hereunder); provided,
however, that unless otherwise provided in the terms of the series, the authorized aggregate
principal amount of that series may be increased before or after the issuance of any
Securities of the series by a Board Resolution (or action pursuant to a Board Resolution) to
that effect;

     (3) whether any Securities of the series are to be issuable initially in temporary
global form and whether any Securities of the series are to be issuable in permanent global
form, as Global Securities or otherwise, and, if so, whether beneficial owners of interests
in any such Global Security may exchange those interests for Securities of that series and
of like tenor of any authorized form and denomination and the circumstances under which
those exchanges may occur, if other than in the manner provided in Section 2.17, and the
initial Depositary and Security Custodian, if any, for any Global Security or Securities of
that series;

     (4) (i) if other than provided herein, the Person to whom any interest on Securities of
the series shall be payable, and (ii) the manner in which any interest payable on a
temporary Global Security on any Interest Payment Date will be paid if other than in the
manner provided in Section 2.14;

7

 

     (5) the date or dates on which the principal of (and premium, if any, on) the
Securities of the series is payable or the method of determination thereof;

     (6) the rate or rates, or the method of determination thereof, at which the Securities
of the series shall bear interest, if any, whether and under what circumstances Additional
Amounts with respect to those Securities shall be payable, the date or dates from which that
interest shall accrue, the Interest Payment Dates on which that interest shall be payable
and the record date for the interest payable on any Securities on any Interest Payment Date;

     (7) the place or places where, subject to the provisions of Section 4.02, the principal
of, premium (if any) and interest on and any Additional Amounts with respect to the
Securities of the series shall be payable;

     (8) the period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions on which Securities of
the series may be redeemed, in whole or in part, at the option of the Company, if the
Company is to have that option, and the manner in which the Company may exercise any such
option, if different from those set forth herein;

     (9) the obligation, if any, of the Company to redeem, purchase or repay Securities of
the series pursuant to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions on which Securities of
the series shall be redeemed, purchased or repaid in whole or in part pursuant to that
obligation;

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

     (11) if other than Dollars, the currency or currencies (including composite currencies)
or the form, including equity securities, other debt securities (including Securities),
warrants or any other securities or property of the Company or any other Person, in which
payment of the principal of, premium (if any) and interest on and any Additional Amounts
with respect to the Securities of the series shall be payable;

     (12) if the principal of, premium (if any) or interest on or any Additional Amounts
with respect to the Securities of the series are to be payable, at the election of the
Company or a Holder thereof, in a currency or currencies (including composite currencies)
other than that in which the Securities are stated to be payable, the currency or currencies
(including composite currencies) in which payment of the principal,
premium (if any), interest and any Additional Amounts with respect to Securities of that
series as to which that election is made shall be payable, and the periods within which and
the terms and conditions on which that election is to be made;

8

 

     (13) if the amount of payments of principal, premium (if any), interest and any
Additional Amounts with respect to the Securities of the series may be determined with
reference to any commodities, currencies or indices, values, rates or prices or any other
index or formula, the manner in which those amounts shall be determined;

     (14) if other than the entire principal amount thereof, the portion of the principal
amount of Securities of the series that shall be payable on declaration of acceleration of
the Maturity thereof pursuant to Section 6.02;

     (15) any additional means of satisfaction and discharge of this Indenture and any
additional conditions or limitations to discharge with respect to Securities of the series
pursuant to Article VIII or any modifications of or deletions from those conditions or
limitations;

     (16) any deletions or modifications of or additions to the Events of Default set forth
in Section 6.01 or covenants of the Company set forth in Article IV pertaining to the
Securities of the series;

     (17) any restrictions or other provisions with respect to the transfer or exchange of
Securities of the series, which may amend, supplement, modify or supersede those contained
in this Article II;

     (18) if the Securities of the series are to be convertible into or exchangeable for
Capital Stock, other debt securities (including Securities), warrants, other equity
securities or any other securities or property of the Company or any other Person, at the
option of the Company or the Holder or on the occurrence of any condition or event, the
terms and conditions for that conversion or exchange;

     (19) if the Securities of the series are to be entitled to the benefit of Section
4.03(b) (and accordingly constitute Rule 144A Securities); and

     (20) any other terms of the series (which terms shall not be prohibited by the
provisions of this Indenture).

          All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 2.03) set forth, or determined in the manner provided, in the Officers’
Certificate or Company Order referred to above or in any such indenture supplemental hereto.

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

9

 

SECTION 2.02 Denominations.

          The Securities of each series shall be issuable in such denominations as shall be specified as
contemplated by Section 2.01. In the absence of any such provisions with respect to the Securities
of any series, the Securities of that series denominated in Dollars shall be issuable in
denominations of $1,000 and any integral multiples thereof.

SECTION 2.03 Forms Generally.

          The Securities of each series shall be in fully registered form and in substantially the form
or forms (including temporary or permanent global form) established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto. The Securities may have notations,
legends or endorsements required by law, securities exchange rule, the Company’s certificate of
incorporation, bylaws or other similar governing documents, agreements to which the Company is
subject, if any, or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company). A copy of the Board Resolution establishing the form or forms of
Securities of any series shall be delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 2.04 for the authentication and delivery of those Securities.

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

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

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

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

	 	By:
	 	 
	

	 	 	 	Authorized Officer”.

SECTION 2.04 Execution, Authentication, Delivery and Dating.

          Two Officers of the Company shall sign the Securities of each series on behalf of the Company
by manual or facsimile signature. The Company’s seal, if any, shall be impressed, affixed,
imprinted or reproduced on the Securities and may be in facsimile form.

          If an Officer of the Company whose signature is on a Security no longer holds that office at
the time the Security is authenticated, the Security shall be valid nevertheless.

          A Security shall not be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose until authenticated by the manual signature of an authorized signatory

10

 

of the
Trustee, which signature shall be conclusive evidence that the Security has been authenticated
under this Indenture. Notwithstanding the foregoing, if any Security has been authenticated and
delivered hereunder but never issued and sold by the Company, and the Company delivers that
Security to the Trustee for cancellation as provided in Section 2.13 together with a written
statement (which need not comply with Section 10.05 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the Company, for all purposes
of this Indenture that Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, and the Trustee shall authenticate and deliver those Securities for original issue
on a Company Order for the authentication and delivery of those Securities or pursuant to such
procedures reasonably acceptable to the Trustee as may be specified from time to time by Company
Order. That order shall specify the amount of the Securities to be authenticated, the date on
which the original issue of Securities is to be authenticated, the name or names of the initial
Holder or Holders and any other terms of the Securities of that series not otherwise determined.
If provided for in those procedures, that Company Order may authorize (1) authentication and
delivery of Securities of that series for original issue from time to time, with certain terms
(including, without limitation, the Maturity date or dates, original issue date or dates and
interest rate or rates) that differ from Security to Security and (2) may authorize authentication
and delivery pursuant to oral or electronic instructions from the Company or its duly authorized
agent, which instructions shall be promptly confirmed in writing.

          If the form or terms of the Securities of the series have been established in or pursuant to
one or more Board Resolutions as permitted by Section 2.01, in authenticating those Securities, and
accepting the additional responsibilities under this Indenture in relation to those Securities, the
Trustee shall be entitled to receive (in addition to the Company Order referred to above and the
other documents required by Section 10.04), and (subject to Section 7.01) shall be fully protected
in relying on,

          (a) an Officers’ Certificate setting forth the Board Resolution and, if applicable, an
appropriate record of any action taken pursuant thereto, as contemplated by the last paragraph of
Section 2.01; and

          (b) an Opinion of Counsel to the effect that:

	 	(i)  	if the form of those Securities has been
established by or pursuant to Board Resolution, as is permitted by
Section 2.01, that such
form has been established in conformity with the provisions of this
Indenture;
	 
	 	(ii)  	if the terms of those Securities have been
established by or pursuant to Board Resolution, as is permitted by
Section 2.01, that

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	 	   	such terms have been established in conformity with
the provisions of this Indenture; and
	 
	 	(iii)  	those Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and
subject to any conditions specified in that Opinion of Counsel, will
constitute valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except as the
enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other
similar laws in effect from time to time affecting the rights of
creditors generally, and the application of general principles of
equity (regardless of whether that enforceability is considered in a
proceeding in equity or at law).

          If all the Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Officers’ Certificate and Opinion of Counsel at the time of issuance of
each such Security, but that Officers’ Certificate and Opinion of Counsel shall be delivered at or
before the time of issuance of the first Security of the series to be issued.

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

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. Unless limited by the terms of that appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by that agent. An authenticating agent has
the same rights as an Agent to deal with the Company or an Affiliate of the Company.

          Each Security shall be dated the date of its authentication.

SECTION 2.05 Registrar and Paying Agent.

          The Company shall maintain an office or agency for each series of Securities where Securities
of that series may be presented for registration of transfer or exchange (“Registrar”) and an
office or agency where Securities of that series may be presented for payment (“Paying Agent”).
The Registrar shall keep a register of the Securities of that series and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or
more additional paying agents. The term “Registrar” includes any co-registrar, and the term
“Paying Agent” includes any additional paying agent.

          The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to that Agent. The Company shall notify the Trustee of

12

 

the name and address
of any Agent not a party to this Indenture. The Company may change any Paying Agent or Registrar
without notice to any Holder. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries
may act as Paying Agent or Registrar.

          The Company initially appoints the Trustee as Registrar and Paying Agent.

SECTION 2.06 Paying Agent to Hold Money in Trust.

          With respect to each series of Securities, the Company shall require each Paying Agent other
than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of
Holders of Securities of that series or the Trustee all money held by the Paying Agent for the
payment of principal of, premium, if any, or interest on or any Additional Amounts with respect to
Securities of that series and will notify the Trustee of any default by the Company in making any
such payment. While any such default continues, the Trustee may require a Paying Agent to pay all
money held by it to the Trustee and to account for any funds disbursed. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds
disbursed. Upon payment over to the Trustee and upon accounting for any funds disbursed, the
Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further
liability for the money. If the Company or a Subsidiary of the Company acts as Paying Agent with
respect to a series of Securities, it shall segregate and hold in a separate trust fund for the
benefit of the Holders of Securities of that series all money held by it as Paying Agent. Each
Paying Agent shall otherwise comply with TIA § 317(b).

SECTION 2.07 Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders of each series of Securities and shall
otherwise comply with TIA § 312(a). If the Trustee is not the Registrar with respect to a series
of Securities, the Company shall furnish to the Trustee at least five Business Days before each
Interest Payment Date with respect to that series of Securities, and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Holders of the Securities of that series, and the
Company shall otherwise comply with TIA § 312(a).

SECTION 2.08 Transfer and Exchange.

          Except as set forth in Section 2.17 or as may be provided pursuant to Section 2.01, when
Securities of any series are presented to the Registrar with the request to register the transfer
of those Securities or to exchange those Securities for an equal principal amount of Securities of
the same series of like tenor and of other authorized denominations, the Registrar shall register
the transfer or make the exchange as requested if its requirements and the requirements of this
Indenture for those transactions are met; provided, however, that the Securities presented or
surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a
written instruction of transfer in form reasonably satisfactory to

13

 

the Registrar duly executed by
the Holder thereof or by his attorney, duly authorized in writing, on which instruction the
Registrar can rely.

          To permit registrations of transfers and exchanges, the Company shall execute and the Trustee
shall authenticate Securities at the Registrar’s written request and submission of the Securities
(other than Global Securities). No service charge shall be made to a Holder for any registration
of transfer or exchange (except as otherwise expressly permitted herein), but the Company may
require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than such transfer tax or similar governmental charge
payable on exchanges pursuant to Section 2.12, 3.07 or 9.05). The Trustee shall authenticate
Securities in accordance with the provisions of Section 2.04. Notwithstanding any other provisions
of this Indenture to the contrary, the Company shall not be required to register the transfer or
exchange of (a) any Security selected for redemption in whole or in part pursuant to Article III,
except the unredeemed portion of any Security being redeemed in part or (b) any Security during the
period beginning 15 Business Days before the mailing of notice of any offer to repurchase
Securities of the series required pursuant to the terms thereof or of redemption of Securities of a
series to be redeemed and ending at the close of business on the date of mailing.

SECTION 2.09 Replacement Securities.

          If any mutilated Security is surrendered to the Trustee, or if the Holder of a Security claims
that the Security has been destroyed, lost or stolen and the Company and the Trustee receive
evidence to their satisfaction of the destruction, loss or theft of that Security, the Company
shall issue and the Trustee shall authenticate a replacement Security of the same series if the
Trustee’s requirements are met. If 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 that Security. If required by the Trustee or the Company, the Holder must
furnish an indemnity bond that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent or any authenticating agent from any loss that any of
them may suffer if a Security is replaced. The Company and the Trustee may charge the Holder for
their expenses in replacing a Security.

          Every replacement Security is an additional obligation of the Company.

SECTION 2.10 Outstanding Securities.

          The Securities outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those reductions in the
interest in a Global Security effected by the Trustee hereunder and those described in this Section
2.10 as not outstanding.

          If a Security is replaced pursuant to Section 2.09, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

14

 

          If the principal amount of any Security is considered paid under Section 4.01, it ceases to be
outstanding and interest on it ceases to accrue.

          A Security does not cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.

SECTION 2.11 Original Issue Discount, Foreign-Currency Denominated and Treasury Securities.

          In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, amendment, supplement, waiver or consent, (a) the principal amount of
an Original Issue Discount Security shall be the principal amount thereof that would be due and
payable as of the date of that determination upon acceleration of the Maturity thereof pursuant to
Section 6.02, (b) the principal amount of a Security denominated in a foreign currency shall be the
Dollar equivalent, as determined by the Company by reference to the noon buying rate in The City of
New York for cable transfers for that currency, as that rate is certified for customs purposes by
the Federal Reserve Bank of New York (the “Exchange Rate”) on the date of original issuance of that
Security, of the principal amount (or, in the case of an Original Issue Discount Security, the
Dollar equivalent, as determined by the Company by reference to the Exchange Rate on the date of
original issuance of that Security, of the amount determined as provided in (a) above), of that
Security and (c) Securities owned by the Company or any other obligor on the Securities or any
Affiliate of the Company or of that other obligor shall be disregarded, except that, for the
purpose of determining whether the Trustee shall be protected in relying on any such direction,
amendment, supplement, waiver or consent, only Securities that the Trustee actually knows are so
owned shall be so disregarded.

SECTION 2.12 Temporary Securities.

          Until definitive Securities of any series are ready for delivery, the Company may prepare and
the Trustee shall authenticate temporary Securities. Temporary Securities shall be substantially
in the form of definitive Securities, but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and
the Trustee shall authenticate definitive Securities in exchange for temporary
Securities. Until so exchanged, the temporary Securities shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities.

SECTION 2.13 Cancellation.

          The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange, payment or redemption or for credit against any sinking fund
payment. The Trustee shall cancel all Securities surrendered for registration of transfer,
exchange, payment, redemption, replacement or cancellation or for credit against any sinking fund.
Unless the Company shall direct in writing that canceled Securities be returned to it, after
written notice to the Company all canceled Securities held by the Trustee shall be disposed of in
accordance with the usual disposal procedures of the Trustee, and the Trustee

15

 

shall maintain a
record of their disposal. The Company may not issue new Securities to replace Securities that have
been paid or that have been delivered to the Trustee for cancellation.

SECTION 2.14 Payments; Defaulted Interest.

          Unless otherwise provided as contemplated by Section 2.01 with respect to the Securities of
any series, interest (except defaulted interest) on any Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the Persons who are
registered Holders of that Security at the close of business on the record date next preceding that
Interest Payment Date, even if those Securities are canceled after that record date and on or
before that Interest Payment Date. Unless otherwise provided with respect to the Securities of any
series, the Company will pay the principal of, premium (if any) and interest on and any Additional
Amounts with respect to the Securities in Dollars. Those amounts shall be payable at the offices
of the Trustee, provided that at the option of the Company, the Company may pay those amounts (1)
by wire transfer with respect to Global Securities or (2) by check payable in that money mailed to
a Holder’s registered address with respect to any Securities.

          If the Company defaults in a payment of interest on the Securities of any series, it shall pay
the defaulted interest in any lawful manner plus, to the extent lawful, interest on the defaulted
interest, in each case at the rate provided in the Securities of that series and in Section 4.01.
The Company may pay the defaulted interest to the Persons who are Holders on a subsequent special
record date. At least 15 days before any special record date selected by the Company, the Company
(or the Trustee, in the name of and at the expense of the Company upon 20 days’ prior written
notice from the Company setting forth that record date and the interest amount to be paid) shall
mail to Holders of any such series of Securities a notice that states the special record date, the
related payment date and the amount of that interest to be paid.

SECTION 2.15 Persons Deemed Owners.

          The Company, the Trustee, any Agent and any authenticating agent may treat the Person in whose
name any Security is registered as the owner of that Security for the purpose of
receiving payments of principal of, premium (if any) or interest on, or any Additional Amounts with
respect to that Security and for all other purposes. None of the Company, the Trustee, any Agent
or any authenticating agent shall be affected by any notice to the contrary.

SECTION 2.16 Computation of Interest.

          Except as otherwise specified as contemplated by Section 2.01 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a year comprising
twelve 30-day months.

SECTION 2.17 Global Securities; Book-Entry Provisions.

          If Securities of a series are issuable in global form as a Global Security, as contemplated by
Section 2.01, then, notwithstanding clause (10) of Section 2.01 and the provisions of Section 2.02,
any such Global Security shall represent those of the outstanding

16

 

Securities of that series as
shall be specified therein and may provide that it shall represent the aggregate amount of
outstanding Securities from time to time endorsed thereon and that the aggregate amount of
outstanding Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges or redemptions. Any endorsement of a Global Security to reflect
the amount, or any increase or decrease in the amount, of outstanding Securities represented
thereby shall be made by the Trustee (i) in such manner and upon instructions given by such Person
or Persons as shall be specified in that Security or in a Company Order to be delivered to the
Trustee pursuant to Section 2.04 or (ii) otherwise in accordance with written instructions or such
other written form of instructions as is customary for the Depositary for that Security, from that
Depositary or its nominee on behalf of any Person having a beneficial interest in that Global
Security. Subject to the provisions of Section 2.04 and, if applicable, Section 2.12, the Trustee
shall deliver and redeliver any Security in permanent global form in the manner and upon
instructions given by the Person or Persons specified in that Security or in the applicable Company
Order. With respect to the Securities of any series that are represented by a Global Security, the
Company authorizes the execution and delivery by the Trustee of a letter of representations or
other similar agreement or instrument in the form customarily provided for by the Depositary
appointed with respect to that Global Security. Any Global Security may be deposited with the
Depositary or its nominee, or may remain in the custody of the Trustee or the Security Custodian
therefor pursuant to a FAST Balance Certificate Agreement or similar agreement between the Trustee
and the Depositary. If a Company Order has been, or simultaneously is, delivered, any instructions
by the Company with respect to endorsement or delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 10.05 and need not be accompanied by an
Opinion of Counsel.

          Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee or the Security Custodian as its custodian, or under that Global Security, and the
Depositary may be treated by the Company, the Trustee or the Security Custodian and any agent of
the Company, the Trustee or the Security Custodian as the absolute
owner of that Global Security for all purposes whatsoever. Notwithstanding the foregoing, (i) the
registered holder of a Global Security of any series may grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through Agent Members, to take
any action that a Holder of Securities of that series is entitled to take under this Indenture or
the Securities of that series and (ii) nothing herein shall prevent the Company, the Trustee or the
Security Custodian or any agent of the Company, the Trustee, or the Security Custodian from giving
effect to any written certification, proxy or other authorization furnished by the Depositary or
shall impair, as between the Depositary and its Agent Members, the operation of customary practices
governing the exercise of the rights of a beneficial owner of any Security.

          Notwithstanding Section 2.08, and except as otherwise provided pursuant to Section 2.01,
transfers of a Global Security shall be limited to transfers of that Global Security in whole, but
not in part, to the Depositary, its successors or their respective nominees. Interests of
beneficial owners in a Global Security may be transferred in accordance with the rules and
procedures of the Depositary. Securities of any series shall be transferred to all beneficial
owners of a Global Security of that series in exchange for their beneficial interests in that
Global

17

 

Security if, and only if, either (1) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for that Global Security and a successor Depositary
is not appointed by the Company within 90 days of that notice, (2) an Event of Default has occurred
with respect to that series and is continuing and the Registrar has received a request from the
Depositary to issue Securities of that series in lieu of all or a portion of that Global Security
(in which case the Company shall deliver Securities of that series within 30 days of that request)
or (3) the Company determines not to have the Securities of that series represented by a Global
Security.

          In connection with any transfer of a portion of the beneficial interests in a Global Security
to beneficial owners pursuant to this Section 2.17, the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the Global Security in an amount equal
to the principal amount of the beneficial interest in the Global Security to be transferred, and
the Company shall execute, and the Trustee on receipt of a Company Order for the authentication and
delivery of Securities shall authenticate and deliver, one or more Securities of the same series of
like tenor and amount.

          In connection with the transfer of all the beneficial interests in a Global Security of any
series to beneficial owners pursuant to this Section 2.17, the Global Security shall be deemed to
be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the Depositary in exchange
for its beneficial interest in the Global Security, an equal aggregate principal amount of
Securities of that series of authorized denominations.

          Neither the Company nor the Trustee will have any responsibility or liability for any aspect
of the records relating to, or payments made on account of, Securities by the Depositary, or for
maintaining, supervising or reviewing any records of the Depositary relating to those Securities.
Neither the Company nor the Trustee shall be liable for any delay by the related Global Security
Holder or the Depositary in identifying the beneficial owners, and each
such Person may conclusively rely on, and shall be protected in relying on, instructions from that
Global Security Holder or the Depositary for all purposes (including with respect to the
registration and delivery, and the respective principal amounts, of the Securities to be issued).

          The provisions of the last sentence of the third paragraph of Section 2.04 shall apply to any
Global Security if that Global Security was never issued and sold by the Company and the Company
delivers to the Trustee the Global Security together with written instructions (which need not
comply with Section 10.05 and need not be accompanied by an Opinion of Counsel) with regard to the
cancellation or reduction in the principal amount of Securities represented thereby, together with
the written statement contemplated by the last sentence of the third paragraph of Section 2.04.

          Notwithstanding the provisions of Sections 2.03 and 2.14, unless otherwise specified as
contemplated by Section 2.01 with respect to Securities of any series, payment of principal of and
premium (if any) and interest on and any Additional Amounts with respect to any Global Security
shall be made to the Person or Persons specified therein.

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ARTICLE III

REDEMPTION

SECTION 3.01 Applicability of Article.

          Securities of any series that are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 2.01
for Securities of any series) in accordance with this Article III.

SECTION 3.02 Notice to the Trustee.

          If the Company elects to redeem Securities of any series pursuant to this Indenture, it shall
notify the Trustee of the Redemption Date and principal amount of Securities of that series to be
redeemed. The Company shall so notify the Trustee at least 45 days before the Redemption Date
(unless a shorter notice shall be satisfactory to the Trustee) by delivering to the Trustee an
Officers’ Certificate stating that the redemption will comply with the provisions of this Indenture
and of the Securities of that series. Any such notice may be canceled at any time prior to the
mailing of that notice of redemption to any Holder of the Securities of that series and shall

thereupon be void and of no effect.

SECTION 3.03 Selection of Securities To Be Redeemed.

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

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

          For purposes of this Indenture, unless the context otherwise requires, all provisions relating
to redemption of Securities of any series shall relate, in the case of any of the Securities
redeemed or to be redeemed only in part, to the portion of the principal amount thereof which has
been or is to be redeemed.

SECTION 3.04 Notice of Redemption.

          Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of

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Securities of a series to
be redeemed, at the address of that Holder appearing in the register of Securities for that series
maintained by the Registrar.

          All notices of redemption shall identify the Securities to be redeemed and shall state:

     (1) the Redemption Date;

     (2) the Redemption Price;

     (3) that, unless the Company defaults in making the redemption payment, interest on
Securities called for redemption ceases to accrue on and after the Redemption Date, and the
only remaining right of the Holders of those Securities is to receive payment of the
Redemption Price on surrender to the Paying Agent of the Securities redeemed;

     (4) if any Security is to be redeemed in part, the portion of the principal amount
thereof to be redeemed and that on and after the Redemption Date, on surrender for
cancellation of that Security to the Paying Agent, a new Security or Securities in the
aggregate principal amount equal to the unredeemed portion thereof will be issued without
charge to the Holder;

     (5) that Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price and the name and address of the Paying Agent;

     (6) that the redemption is for a sinking or analogous fund, if that is the case; and

     (7) the CUSIP number, if any, relating to those Securities.

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

SECTION 3.05 Effect of Notice of Redemption.

          Once notice of redemption is mailed, Securities called for redemption become due and payable
on the Redemption Date and at the Redemption Price. Upon surrender to the Paying Agent, those
Securities called for redemption shall be paid at the Redemption Price, but interest installments
whose maturity is on or prior to that Redemption Date will be payable on the relevant Interest
Payment Dates to the Holders of record at the close of business on the relevant record dates
specified pursuant to Section 2.01.

SECTION 3.06 Deposit of Redemption Price.

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          On or prior to any Redemption Date, the Company shall deposit with the Trustee or the Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 2.06) an amount of money in same day funds sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on
and any Additional Amounts with respect to, the Securities or portions thereof which are to be
redeemed on that date, other than Securities or portions thereof called for redemption on that date
which have been delivered by the Company to the Trustee for cancellation.

          If the Company complies with the preceding paragraph, then, unless the Company defaults in the
payment of that Redemption Price, interest on the Securities to be redeemed will cease to accrue on
and after the applicable Redemption Date, whether or not those Securities are presented for
payment, and the Holders of those Securities shall have no further rights with respect to those
Securities except for the right to receive the Redemption Price on surrender of those Securities.
If any Security called for redemption shall not be so paid on surrender thereof for redemption, the
principal of and premium, if any, any Additional Amounts, and, to the extent lawful, accrued
interest thereon shall, until paid, bear interest from the Redemption Date at the rate specified
pursuant to Section 2.01 or provided in the Securities or, in the case of Original Issue Discount
Securities, their initial yield to maturity.

SECTION 3.07 Securities Redeemed or Purchased in Part.

          Upon surrender to the Paying Agent of a Security to be redeemed in part, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of that Security without
service charge a new Security or Securities, of the same series and of any authorized denomination
as requested by that Holder in aggregate principal amount equal to, and in exchange for, the
unredeemed portion of the principal of the Security so surrendered that is not redeemed.

SECTION 3.08 Purchase of Securities.

          Unless otherwise specified as contemplated by Section 2.01, the Company and any Affiliate of
the Company may at any time purchase or otherwise acquire Securities in the open market or by
private agreement. Any such acquisition shall not operate as or be deemed for any purpose to be a
redemption of the indebtedness represented by those Securities. Any Securities purchased or
acquired by the Company may be delivered to the Trustee for cancellation and, on that cancellation,
the indebtedness represented thereby shall be deemed to be satisfied. Section 2.13 shall apply to
all Securities so delivered.

SECTION 3.09 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
the minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” Unless otherwise provided by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to

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reduction as provided in Section 3.10. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of Securities of that series
and by this Article III.

SECTION 3.10 Satisfaction of Sinking Fund Payments with Securities.

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

SECTION 3.11 Redemption of Securities for Sinking Fund.

          Not less than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to
each sinking fund payment date for any series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate of the Company specifying the amount of the next ensuing sinking
fund payment for that series pursuant to the terms of that series, the portion thereof, if any,
that is to be satisfied by payment of cash and the portion thereof, if any, that is to be satisfied
by delivery of or by crediting Securities of that series pursuant to Section 3.10 and will also
deliver to the Trustee any Securities to be so delivered. Failure of the Company to timely deliver
that Officers’ Certificate and Securities specified in this paragraph, if any, shall not constitute
a default but shall constitute the election of the Company (i) that the mandatory sinking fund
payment for that 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 that series in respect thereof and
(ii) that the Company will make no optional sinking fund payment with respect to that 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 $100,000 (or the Dollar equivalent thereof based on the
applicable Exchange Rate on the date of original issue of the applicable Securities) or a lesser
sum if the Company shall so request with respect to the Securities of any particular series, that
cash shall be applied on the next succeeding sinking fund payment date to the redemption of
Securities of that series at the sinking fund redemption price together with accrued interest to
the date fixed for redemption. If that amount shall be $100,000 (or the Dollar equivalent thereof
as aforesaid) or less and the Company makes no such request, then it shall be carried over until a
sum in excess of $100,000 (or the Dollar equivalent thereof as aforesaid) is available. Not less
than 30 days before each such sinking fund payment date, the Trustee shall select the Securities to
be redeemed on that sinking fund payment date in the manner specified in Section 3.03 and cause
notice of the redemption thereof to be given in the name of and at the

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expense of the Company in the manner provided in Section 3.04. That notice having been duly given,
the redemption of those Securities shall be made on the terms and in the manner stated in Sections
3.05, 3.06 and 3.07.

ARTICLE IV

COVENANTS

SECTION 4.01 Payment of Securities.

          The Company shall pay the principal of, premium (if any) and interest on and any Additional
Amounts with respect to the Securities of each series on the dates and in the manner provided in
the Securities of that series and in this Indenture. Principal, premium, interest and any
Additional Amounts shall be considered paid on the date due if the Paying Agent, other than the
Company or a Subsidiary of the Company, holds on that date money deposited by the Company
designated for and sufficient to pay all principal, premium (if any), interest and any Additional
Amounts then due.

          The Company shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal of and premium (if any) on Securities of any series, at a rate
equal to the then applicable interest rate on the Securities of that series to the extent lawful;
and it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue installments of interest on and any overdue payments of Additional Amounts with
respect to Securities of that series (without regard to any applicable grace period) at the same
rate to the extent lawful.

SECTION 4.02 Maintenance of Office or Agency.

          The Company will maintain in each Place of Payment for any series of Securities an office or
agency (which may be an office of the Trustee, the Registrar or the Paying Agent) where Securities
of that series may be presented for registration of transfer or exchange, where Securities of that
series may be presented for payment and where notices and demands to or on the Company in respect
of the Securities of that series and this Indenture may be served. Unless otherwise designated by
the Company by written notice to the Trustee, that office or agency shall be the office of the
Trustee in the Borough of Manhattan, The City of New York, which on the date hereof is located at
101 Barclay Street, New York, New York 10286. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of that 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, those presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee.

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

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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 SEC Reports; Financial Statements.

          (a) The Company shall file with the Trustee, within 15 days after it files the same with the
SEC, copies of the annual reports and the information, documents and other reports (or copies of
those portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The
Company shall also comply with the provisions of TIA § 314(a).

          (b) If the Company is not subject to the requirements of Section 13 or 15(d) of the Exchange
Act, the Company shall furnish to all Holders of Rule 144A Securities and prospective purchasers of
Rule 144A Securities designated by the Holders of Rule 144A Securities, promptly on their request,
the information required to be delivered pursuant to Rule 144A(d)(4) promulgated under the
Securities Act of 1933, as amended.

SECTION 4.04 Compliance Certificate.

          (a) The Company shall deliver to the Trustee, within 120 days after the end of each fiscal
year of the Company, a statement signed by an Officer of the Company, which need not constitute an
Officers’ Certificate, complying with TIA § 314(a)(4) and stating that, in the course of
performance by the signing Officer of the Company of his or her duties as such Officer of the
Company, he or she would normally obtain knowledge of the keeping, observing, performing and
fulfilling by the Company of its obligations under this Indenture, and further stating that, to the
best of his or her knowledge, the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the performance or observance
of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall
have occurred, describing all such Defaults or Events of Default of which that Officer may have
knowledge and what action the Company is taking or proposes to take with respect thereto).

          (b) The Company shall, so long as Securities of any series are outstanding, deliver to the
Trustee, promptly on any Officer of the Company becoming aware of any Default or Event of Default
under this Indenture, an Officers’ Certificate specifying that Default or Event of Default and what
action the Company is taking or proposes to take with respect thereto.

SECTION 4.05 Existence.

          Subject to Article V hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and the existence of each of its
Subsidiaries and all rights (charter and statutory) of the Company and its Subsidiaries, provided
that the Company shall not be required to preserve the existence of any Subsidiary of the Company
or any such right if the Company shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Subsidiaries taken as a

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whole and that the loss thereof would not have a material adverse effect on the business,
operations, assets or financial condition of the Company and its Subsidiaries taken as a whole and
would not have any material adverse effect on the payment and performance of the obligations of the
Company under the Securities and this Indenture.

SECTION 4.06 Waiver of Stay, Extension or Usury Laws.

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

SECTION 4.07 Additional Amounts.

          If the Securities of a series expressly provide for the payment of Additional Amounts, the
Company will pay to the Holder of any Security of that series Additional Amounts as expressly
provided therein. Whenever in this Indenture there is mentioned, in any context, the payment of
the principal of or any premium or interest on, or in respect of, any Security of any series or the
net proceeds received from the sale or exchange of any Security of any series, that mention shall
be deemed to include mention of the payment of Additional Amounts provided for in this Section 4.07
to the extent that, in that context, Additional Amounts are, were or would be payable in respect
thereof pursuant to the provisions of this Section 4.07, and express mention of the payment of
Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where that express mention is not made.

          Unless otherwise provided pursuant to Section 2.01 with respect to Securities of any series,
if the Securities of a series provide for the payment of Additional Amounts, at least ten days
prior to the first Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to Maturity, the first day on which a
payment of principal and any premium is made), and at least ten days prior to each date of payment
of principal and any premium or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers’ Certificate, the Company shall furnish the Trustee and
the Company’s principal Paying Agent or Paying Agents, if other than the Trustee, with an Officers’
Certificate instructing the Trustee and such Paying Agent or Paying Agents whether that payment of
principal of and any premium or interest on the Securities of that series shall be made to Holders
of Securities of that series who are United States Aliens without withholding for or on account of
any tax, assessment or other governmental charge described in the Securities of that series. If
any such withholding shall be required, then that Officers’ Certificate shall specify by country
the amount, if any, required to be withheld on those payments to those Holders of

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Securities, and the Company will pay to that Paying Agent the Additional Amounts required by this
Section. The Company covenants to indemnify the Trustee and any Paying Agent for and to hold them
harmless against any loss, liability or expense reasonably incurred without negligence or bad faith
on their part arising out of or in connection with actions taken or omitted by any of them in
reliance on any Officers’ Certificate furnished pursuant to this Section 4.07.

ARTICLE V

SUCCESSORS

     SECTION 5.01 Limitations on Mergers, Consolidations and Other Transactions.

          The Company shall not, in any transaction or series of related transactions, consolidate with
any other Person into, or merge into, any other Person, or sell, lease, convey, transfer or
otherwise dispose of its assets substantially as an entirety to any Person, unless:

     (1) the Person formed by that consolidation or into which the Company is merged, or to
which that sale, lease, conveyance, transfer or other disposition shall be made
(collectively, the “Successor”), expressly assumes by supplemental indenture the due and
punctual payment of the principal of (and premium, if any) and interest on and Additional
Amounts with respect to all the Securities and the performance of the Company’s covenants
and obligations under this Indenture and the Securities;

     (2) immediately after giving effect to that transaction or series of related
transactions, no Default or Event of Default shall have occurred and be continuing; and

     (3) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that the transaction and that supplemental indenture comply with this
Indenture.

SECTION 5.02 Successor Person Substituted.

          Upon any consolidation or merger of the Company or any sale, lease, conveyance, transfer or
other disposition of the assets of the Company substantially as an entirety in accordance with
Section 5.01, any Successor formed by that consolidation or into or with which the Company is
merged or to which that sale, lease, conveyance, transfer 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 and the Securities with the same effect as if that Successor had been named as the
Company herein and the predecessor Company, in the case of a sale, conveyance, transfer or other
disposition, shall be released from all obligations under this Indenture and the Securities.

ARTICLE VI

DEFAULTS AND REMEDIES

SECTION 6.01 Events of Default.

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          Unless either inapplicable to a particular series or specifically deleted or modified in or
pursuant to the supplemental indenture or Board Resolution establishing that series of Securities
or in the form of Security for that series, an “Event of Default,” wherever used herein with
respect to Securities of any series, occurs if:

     (1) the Company defaults in the payment of interest on or any Additional Amounts with
respect to any Security of that series when the same becomes due and payable and that
default continues for a period of 30 days;

     (2) the Company defaults in the payment of (A) the principal of any Security of that
series at its Maturity or (B) premium (if any) on any Security of that series when the same
becomes due and payable, regardless of whether such payment became due because of maturity,
redemption, acceleration or otherwise, or is required by any sinking fund established with
respect to such series;

     (3) the Company fails to comply with any of its other covenants or agreements in, or
provisions of, the Securities of that series or this Indenture (other than an agreement,
covenant or provision that has expressly been included in this Indenture solely for the
benefit of one or more series of Securities other than that series) which shall not have
been remedied within the specified period after written notice, as specified in the last
paragraph of this Section 6.01;

     (4) the Company pursuant to or within the meaning of any Bankruptcy Law:

     (A) commences a voluntary case,

     (B) consents to the entry of an order for relief against it in an involuntary
case,

     (C) consents to the appointment of a Bankruptcy Custodian of it or for all or
substantially all of its property, or

     (D) makes a general assignment for the benefit of its creditors;

     (5) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that remains unstayed and in effect for 90 days and that:

     (A) is for relief against the Company as debtor in an involuntary case,

     (B) appoints a Bankruptcy Custodian of the Company or a Bankruptcy Custodian
for all or substantially all of the property of the Company, or

     (C) orders the liquidation of the Company;

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     (6) the Company defaults with respect to its Debt (other than the Securities for that
series) in an aggregate principal amount in excess of that dollar amount specified in the
supplemental indenture for the Securities, which

     (A) consists of the failure to make any payment at maturity, or

     (B) results in acceleration of the maturity of such Debt; or

     (7) any other Event of Default provided with respect to Securities of that series
occurs.

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

          The Trustee shall not be deemed to know or have notice of a Default unless a Trust Officer at
the Corporate Trust Office of the Trustee receives written notice at the Corporate Trust Office of
the Trustee of that Default with specific reference to that Default.

          When a Default is cured, it ceases.

          Notwithstanding the foregoing provisions of this Section 6.01, if the principal of, premium
(if any) or interest on or Additional Amounts with respect to any Security is payable in a currency
or currencies (including a composite currency) other than Dollars and such currency or currencies
are not available to the Company for making payment thereof due to the imposition of exchange
controls or other circumstances beyond the control of the Company (a “Conversion Event”), the
Company will be entitled to satisfy its obligations to Holders of the Securities by making that
payment in Dollars in an amount equal to the Dollar equivalent of the amount payable in such other
currency, as determined by the Company by reference to the Exchange Rate on the date of that
payment, or, if that rate is not then available, on the basis of the most recently available
Exchange Rate. Notwithstanding the foregoing provisions of this Section 6.01, any payment made
under such circumstances in Dollars where the required payment is in a currency other than Dollars
will not constitute an Event of Default under this Indenture.

          Promptly after the occurrence of a Conversion Event, the Company shall give written notice
thereof to the Trustee; and the Trustee, promptly after receipt of that notice, shall give notice
thereof in the manner provided in Section 10.02 to the Holders. Promptly after the making of any
payment in Dollars as a result of a Conversion Event, the Company shall give notice in the manner
provided in Section 10.02 to the Holders, setting forth the applicable Exchange Rate and describing
the calculation of those payments.

          A Default under clause (3) of this Section 6.01 is not an Event of Default until the Trustee
notifies the Company, or the Holders of at least 25% in principal amount of the then outstanding
Securities of the series affected by that Default, or, if outstanding Securities of other series
are affected by that Default, then at least 25% in principal amount of the then outstanding
Securities so affected, notify the Company and the Trustee, of the Default, and the Company fails
to cure the Default within the period of days specified in the applicable indenture

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supplement after receipt of the notice. The notice must specify the Default, demand that it be
remedied and state that the notice is a “Notice of Default.”

SECTION 6.02 Acceleration.

          If an Event of Default with respect to any Securities of any series at the time outstanding
(other than an Event of Default specified in clause (4) or (5) of Section 6.01 hereof) occurs and
is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the then outstanding Securities of the series affected by that default (or, in the case
of an Event of Default described in clause (3) of Section 6.01, if outstanding Securities of other
series are affected by that Default, then at least 25% in principal amount of the then outstanding
Securities so affected) by notice to the Company and the Trustee, may declare the principal of (or,
if any of those Securities are Original Issue Discount Securities, that portion of the principal
amount as may be specified in the terms of that series) and all accrued and unpaid interest on all
then outstanding Securities of that series or of all series, as the case may be, to be due and
payable. Upon any such declaration, the amounts due and payable on those Securities shall be due
and payable immediately. If an Event of Default specified in clause (4) or (5) of Section 6.01
hereof occurs, those amounts shall ipso facto become and be immediately due and payable without any
declaration, notice or other act on the part of the Trustee or any Holder. The Holders of a
majority in principal amount of the then outstanding Securities of the series affected by that
default or all series, as the case may be, by written notice to the Trustee may rescind an
acceleration and its consequences (other than nonpayment of principal of or premium or interest on
or any Additional Amounts with respect to the Securities) if the rescission would not conflict with
any judgment or decree and if all existing Events of Default with respect to Securities of that
series (or of all series, as the case may be) have been cured or waived, except nonpayment of
principal, premium, interest or any Additional Amounts that has become due solely because of the
acceleration.

SECTION 6.03 Other Remedies.

          If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal of, or premium, if any,
or interest on the Securities of that series or to enforce the performance of any provision of the
Securities of that series or this Indenture.

          The Trustee may maintain a proceeding with respect to Securities of any series even if it does
not possess any of the Securities of that series or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing on an
Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in
the Event of Default. All remedies are cumulative to the extent permitted by law.

SECTION 6.04 Waiver of Defaults.

          Subject to Sections 6.07 and 9.02, the Holders of a majority in principal amount of the then
outstanding Securities of any series or of all series (acting as one class) by notice to

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the Trustee may waive an existing or past Default or Event of Default with respect to that series
or all series, as the case may be, and its consequences (including waivers obtained in connection
with a tender offer or exchange offer for Securities of that series or all series or a solicitation
of consents in respect of Securities of that series or all series, provided that in each case that
offer or solicitation is made to all Holders of then outstanding Securities of that series or all
series (but the terms of that offer or solicitation may vary from series to series)), except (1) a
continuing Default or Event of Default in the payment of the principal of, or premium, if any, or
interest on or any Additional Amounts with respect to any Security or (2) a continued Default in
respect of a provision that under Section 9.02 cannot be amended or supplemented without the
consent of each Holder affected. Upon any such waiver, that Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

SECTION 6.05 Control by Majority.

          With respect to Securities of any series, the Holders of a majority in principal amount of the
then outstanding Securities of that series may direct in writing the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising any trust or power
conferred on it relating to or arising under an Event of Default described in clause (1), (2) or
(7) of Section 6.01, and with respect to all Securities, the Holders of a majority in principal
amount of all the then outstanding Securities affected may direct in writing the time, method and
place of conducting any proceeding for any remedy available to the Trustee or exercising any trust
or power conferred on it not relating to or arising under such an Event of Default. However, the
Trustee may refuse to follow any direction that conflicts with applicable law or this Indenture,
that the Trustee determines may be unduly prejudicial to the rights of other Holders, or that may
involve the Trustee in personal liability; provided, however, that the Trustee may take any other
action deemed proper by the Trustee that is not inconsistent with that direction. Prior to taking
any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its
sole discretion from Holders directing the Trustee against all losses and expenses caused by taking
or not taking that action.

SECTION 6.06 Limitations on Suits.

          Subject to Section 6.07 hereof, a Holder of a Security of any series may pursue a remedy with
respect to this Indenture or the Securities of that series only if:

     (1) the Holder gives to the Trustee written notice of a continuing Event of Default
with respect to that series;

     (2) the Holders of at least 25% in principal amount of the then outstanding Securities
of that series make a written request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer to the Trustee indemnity reasonably satisfactory to
the Trustee against any loss, liability or expense;

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     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

     (5) during that 60-day period, the Holders of a majority in principal amount of the
Securities of that series do not give the Trustee a direction inconsistent with the request.

          A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another 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 receive payment of principal of and premium, if any, and interest on and any Additional Amounts
with respect to that Security, on or after the respective due dates expressed in that Security, or
to bring suit for the enforcement of any such payment on or after those respective dates, is
absolute and unconditional and shall not be impaired or affected without the consent of the Holder.

SECTION 6.08 Collection Suit by Trustee.

          If an Event of Default specified in clause (1) or (2) of Section 6.01 hereof occurs and is
continuing with respect to Securities of any series, the Trustee is authorized to recover judgment
in its own name and as trustee of an express trust against the Company for the amount of principal,
premium (if any), interest and any Additional Amounts remaining unpaid on the Securities of that
series, and interest on overdue principal and premium, if any, and, to the extent lawful, interest
on overdue interest, and such further amount as shall be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

SECTION 6.09 Trustee May File Proofs of Claim.

          The Trustee is authorized to file such proofs of claim and other papers or documents and to
take such actions, including participating as a member, voting or otherwise, of any committee of
creditors, as may be necessary or advisable to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders allowed in any judicial proceeding relative to the Company or its
creditors or properties and shall be entitled and empowered to collect, receive and distribute any
money or other property payable or deliverable on any such claims and any Bankruptcy Custodian in
any such judicial proceeding is hereby authorized by each Holder to make those payments to the
Trustee, and in the event that the Trustee shall consent to the making of those payments directly
to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under Section 7.07. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under Section 7.07 out of the estate in

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any such proceeding, shall be denied for any reason, payment of the same shall be secured by a lien
on, and shall be paid out of, any and all distributions, dividends, money, securities and other
properties which the Holders of the Securities may be entitled to receive in that proceeding
whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or
adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition
affecting the 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 Priorities.

          If the Trustee collects any money pursuant to this Article VI, it shall pay out the money in
the following order:

          First: to the Trustee for amounts due under Section 7.07;

          Second: to Holders for amounts due and unpaid on the Securities in respect of which or for
the benefit of which that money has been collected, for principal, premium (if any), interest and
any Additional Amounts ratably, without preference or priority of any kind, according to the
amounts due and payable on those Securities for principal, premium (if any), interest and any
Additional Amounts, respectively; and

          Third: to the Company.

          The Trustee, on prior written notice to the Company, may fix record dates and payment dates
for any payment to Holders pursuant to this Article VI.

          To the fullest extent allowed under applicable law, if for the purpose of obtaining a judgment
against the Company in any court it is necessary to convert the sum due in respect of the principal
of, premium (if any) or interest on or Additional Amounts with respect to 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 New York Business Day next preceding that on which final judgment
is given. Neither the Company nor the Trustee shall be liable for any shortfall nor shall it
benefit from any windfall in payments to Holders of Securities under this Section 6.10 caused by a
change in exchange rates between the time the amount of a judgment against it is calculated as
above and the time the Trustee converts the Judgment Currency into the Required Currency to make
payments under this Section to Holders of Securities, but payment of that judgment shall discharge
all amounts owed by the Company on the claim or claims underlying that judgment.

SECTION 6.11 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 action taken or omitted by it as a trustee, a court in its

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discretion may require the filing by any party litigant in the suit of an undertaking to pay the
costs of the suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits
and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not
apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by a Holder
or Holders of more than 10% in principal amount of the then outstanding Securities of any series.

ARTICLE VII

TRUSTEE

SECTION 7.01 Duties of Trustee.

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

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

     (1) the Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, on
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine those certificates and opinions to determine
whether, on their face, they appear to conform to the requirements of this Indenture.

          (c) The Trustee may not be relieved from liabilities for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

     (1) this paragraph does not limit the effect of Section 7.01(b);

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

     (3) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05
hereof.

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          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to the provisions of this Section 7.01.

          (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee may refuse to perform any duty or exercise any right or power
unless it receives indemnity reasonably satisfactory to it against any loss, liability or expense.

          (f) The Trustee shall not be liable for 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. All money received by the
Trustee with respect to Securities of any series shall, until applied as herein provided, be held
in trust for the payment of the principal of, premium (if any) and interest on and Additional
Amounts with respect to the Securities of that series.

SECTION 7.02 Rights of Trustee.

          (a) The Trustee may rely on any document believed by it to be genuine and to have been signed
or presented by the proper Person. The Trustee need not investigate any fact or matter stated in
the document.

          (b) Before the Trustee acts or refrains from acting, it may require instruction, an Officers’
Certificate or an Opinion of Counsel or both to be provided. The Trustee shall not be liable for
any action it takes or omits to take in good faith in reliance on that instruction, Officers’
Certificate or Opinion of Counsel. The Trustee may consult with counsel, and the written advice of
that 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.

          (c) The Trustee may act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers conferred on it by this
Indenture.

          (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

SECTION 7.03 May Hold Securities.

          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 any of its Affiliates with the same rights it
would have if it were not Trustee. Any Agent may do the same with like rights and duties. However,
the Trustee is subject to Sections 7.10 and 7.11.

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SECTION 7.04 Trustee’s Disclaimer.

          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities; it shall not be accountable for the Company’s use of the proceeds from the Securities
or any money paid to the Company or upon the Company’s direction under any provision hereof; it
shall not be responsible for the use or application of any money received by any Paying Agent other
than the Trustee; and it shall not be responsible for any statement or recital herein or any
statement in the Securities other than its certificate of authentication.

SECTION 7.05 Notice of Defaults.

          If a Default or Event of Default with respect to the Securities of any series occurs and is
continuing and it is known to the Trustee, the Trustee shall mail to Holders of Securities of that
series a notice of the Default or Event of Default within 90 days after it occurs. Except in the
case of a Default or Event of Default in payment of principal of, premium (if any) and interest on
and Additional Amounts or any sinking fund installment with respect to the Securities of that
series, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in
good faith determines that withholding the notice is in the interests of Holders of Securities of
that series.

SECTION 7.06 Reports by Trustee to Holders.

          Within 60 days after each May 15 of each year after the execution of this Indenture, the
Trustee shall mail to Holders of a series and the Company a brief report dated as of that reporting
date that complies with TIA § 313(a); provided, however, that if no event described in TIA § 313(a)
has occurred within the twelve months preceding the reporting date with respect to a series, no
report need be transmitted to Holders of that series. The Trustee also shall comply with TIA §
313(b). The Trustee shall also transmit by mail all reports if and as required by TIA §§ 313(c)
and 313(d).

          A copy of each report at the time of its mailing to Holders of a series of Securities shall be
filed by the Company with the SEC and each securities exchange, if any, on which the Securities of
that series are listed. The Company shall notify the Trustee if and when any series of Securities
is listed on any stock exchange.

SECTION 7.07 Compensation and Indemnity.

          The Company agrees to pay to the Trustee from time to time compensation as agreed to by the
Company and the Trustee for its acceptance of this Indenture and services hereunder. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Company agrees to reimburse the Trustee on request for all reasonable disbursements, advances and
expenses incurred by it. Those expenses shall include the reasonable compensation, disbursements
and expenses of the Trustee’s agents, counsel, accountants and experts.

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          The Company hereby indemnifies the Trustee against any loss, liability or expense (including
fees and expenses of counsel) incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, except as set forth in the next paragraph. The
Trustee shall notify the Company promptly of any claim for which it may seek indemnity; provided,
however, that any failure by the Trustee to so notify the Company shall not relieve the Company of
its obligations hereunder. The Company shall defend the claim and the Trustee shall cooperate in
the defense. The Trustee may have separate counsel, and the Company shall pay the reasonable fees
and expenses of that counsel. The Company need not pay for any settlement made without its
consent.

          The Company shall not be obligated to reimburse any expense or indemnify against any loss or
liability incurred by the Trustee through negligence or bad faith.

          To secure the payment obligations of the Company 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, except
that held in trust to pay principal of, premium (if any) and interest on and any Additional Amounts
with respect to the Securities of any series. That lien shall survive the satisfaction and
discharge of this Indenture.

          The Company’s payment obligations pursuant to this Section 7.07 shall survive the resignation
and removal of the Trustee and the discharge of this Indenture. When the Trustee incurs expenses
or renders services after an Event of Default specified in Section 6.01(4) or (5) occurs, the
expenses and the compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

SECTION 7.08 Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only on the successor Trustee’s acceptance of appointment as provided in this Section
7.08.

          The Trustee may resign and be discharged at any time with respect to the Securities of one or
more series by so notifying the Company. The Holders of a majority in principal amount of the then
outstanding Securities of any series may remove the Trustee with respect to the Securities of that
series by so notifying the Trustee and the Company. The Company may remove the Trustee if:

          (1) the Trustee fails to comply with Section 7.10;

          (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;

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

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          (4) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, with respect to the Securities of one or more series, the Company shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the Securities of one
or more or all of those series and that at any time there shall be only one Trustee with respect to
the Securities of any particular series). Within one year after the successor Trustee with respect
to the Securities of any series takes office, the Holders of a majority in principal amount of the
Securities of that series may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

          If a successor Trustee with respect to the Securities of any series does not take office
within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company
or the Holders of at least 10% in principal amount of the then outstanding Securities of that
series may petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of that series.

          If the Trustee with respect to the Securities of a series fails to comply with Section 7.10,
any Holder of Securities of that series may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee with respect to the Securities of
that series.

          In case of the appointment of a successor Trustee with respect to all Securities, each such
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and
to the Company. Thereupon, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and duties of the retiring
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.

          In case of the appointment 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 (but not all) series shall execute and deliver an
indenture supplemental hereto in which each successor Trustee shall accept that appointment and
that (1) shall confer to each successor Trustee all the rights, powers and duties of the retiring
Trustee with respect to the Securities of that or those series to which the appointment of that
successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall confirm that all the rights, powers 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. Nothing herein or in that supplemental indenture
shall constitute those Trustees co-trustees of the same trust, and 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. Upon the execution and delivery of that supplemental
indenture, the

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resignation or removal of the retiring Trustee shall become effective to the extent provided
therein, and each such successor Trustee shall have all the rights, powers and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of
that successor Trustee relates. On the request of the Company or any successor Trustee, that
retiring Trustee shall transfer to that successor Trustee all property held by that retiring
Trustee as Trustee with respect to the Securities of that or those series to which the appointment
of that successor Trustee relates.

          Notwithstanding replacement of the Trustee or Trustees pursuant to this Section 7.08, the
obligations of the Company under Section 7.07 shall continue for the benefit of the retiring
Trustee or Trustees.

SECTION 7.09 Successor Trustee by Merger, etc.

          Subject to Section 7.10, if the Trustee consolidates, merges or converts into, or transfers
all or substantially all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor Trustee; provided, however, that in the
case of a transfer of all or substantially all of its corporate trust business to another
corporation, the transferee corporation expressly assumes all of the Trustee’s liabilities
hereunder.

          In case any Securities shall have been authenticated, but not delivered, by the Trustee then
in office, any successor by merger, conversion or consolidation to that authenticating Trustee may
adopt that authentication and deliver the Securities so authenticated; and in case at that time any
of the Securities shall not have been authenticated, any successor to the Trustee may authenticate
those Securities either in the name of any predecessor hereunder or in the name of the successor to
the Trustee; and in all those cases those certificates shall have the full force which it is
anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall
have.

SECTION 7.10 Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States, any State thereof or the District of Columbia
and authorized under those laws to exercise corporate trust power, shall be subject to supervision
or examination by Federal or State (or the District of Columbia) authority and shall have, or be a
Subsidiary of a bank or bank holding company having, a combined capital and surplus of at least $50
million as set forth in its most recent published annual report of condition.

          The Indenture shall always have a Trustee who satisfies the requirements of TIA §§ 310(a)(1),
310(a)(2) and 310(a)(5). The Trustee is subject to and shall comply with the provisions of TIA §
310(b) during the period of time required by this Indenture. Nothing in this Indenture shall
prevent the Trustee from filing with the SEC the application referred to in the penultimate
paragraph of TIA § 310(b).

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SECTION 7.11 Preferential Collection of Claims Against Company.

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

ARTICLE VIII

DISCHARGE OF INDENTURE

SECTION 8.01 Termination of Company’s Obligations.

          (a) This Indenture shall cease to be of further effect with respect to the Securities of a
series (except as to any surviving rights of conversion or of registration of transfer or exchange
of Securities expressly provided for herein and except that the Company’s obligations under Section
7.07, the Trustee’s and Paying Agent’s obligations under Section 8.03 and the rights, powers,
protections and privileges accorded the Trustee under Article VII shall survive), and the Trustee,
on demand of the Company, shall execute proper instruments acknowledging the satisfaction and
discharge of this Indenture with respect to the Securities of that series, when:

          (1) either

     (A) all outstanding Securities of that series theretofore authenticated and
issued (other than destroyed, lost or stolen Securities that have been replaced or
paid) have been delivered to the Trustee for cancellation; or

     (B) all outstanding Securities of that series not theretofore delivered to the
Trustee for cancellation:

     (i) have become due and payable, or

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

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

          and, in the case of clause (i), (ii) or (iii) above, the Company has irrevocably deposited or
caused to be deposited with the Trustee as funds (immediately available to the Holders in the case
of clause (i)) in trust for that purpose (x) cash in an amount, or (y) Government Obligations,
maturing as to principal and interest at such times and in such amounts as will ensure the
availability of cash in an amount or (z) a combination thereof, which will be sufficient, in the
opinion (in the case of clauses (y) and (z)) of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the

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Trustee, to pay and discharge the entire indebtedness on the Securities of that series for
principal and any interest and any Additional Amounts to the date of that deposit (in the case of
Securities which have become due and payable) or for principal, premium, if any, interest and any
Additional Amounts to the Stated Maturity or Redemption Date, as the case may be; or

     (C) the Company has properly fulfilled such other means of satisfaction and
discharge as is specified, as contemplated by Section 2.01, to be applicable to the
Securities of that series;

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

     (3) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture with respect to the
Securities of that series have been complied with, together with an Opinion of Counsel to
the same effect.

          (b) Unless this Section 8.01(b) is specified as not being applicable to Securities of a series
as contemplated by Section 2.01, the Company may terminate certain of its obligations under this
Indenture (“covenant defeasance”) with respect to the Securities of a series if:

     (1) the Company has irrevocably deposited or caused to be irrevocably deposited with
the Trustee as trust funds in trust for the purpose of making the following payments,
specifically pledged as security for and dedicated solely to the benefit of the Holders of
Securities of that series, (i) money in the currency in which payment of the Securities of
that series is to be made in an amount, or (ii) Government Obligations with respect to that
series, maturing as to principal and interest at such times and in such amounts as will
ensure the availability of money in the currency in which payment of the Securities of that
series is to be made in an amount or (iii) a combination thereof, that is sufficient, in the
opinion (in the case of clauses (ii) and (iii)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay, without consideration of the reinvestment of any such amounts and after
payment of all taxes or other charges or assessments in respect thereof payable by the
Trustee, the principal of and premium (if any) and interest on and any Additional Amounts
with respect to all Securities of that series on each date that such principal, premium (if
any), interest or Additional Amounts are due and payable and (at the Stated Maturity thereof
or on redemption as provided in Section 8.01(e)) to pay all other sums payable by it
hereunder; provided that the Trustee shall have been irrevocably instructed to apply that
money and/or the proceeds of those Government Obligations to the payment of said principal,
premium (if any), interest and Additional Amounts with respect to the Securities of that
series as the same shall become due;

     (2) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture with respect to

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the Securities of that series have been complied with, and an Opinion of Counsel to the same
effect;

     (3) no Default or Event of Default with respect to the Securities of that series shall
have occurred and be continuing on the date of that deposit;

     (4) the Company shall have delivered to the Trustee an Opinion of Counsel from counsel
reasonably acceptable to the Trustee or a tax ruling to the effect that the Holders of
Securities of that 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 8.01(b) 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 that option had not been exercised;

     (5) the Company has complied with any additional conditions specified pursuant to
Section 2.01 to be applicable to the discharge of Securities of that series pursuant to this
Section 8.01; and

     (6) that deposit and discharge shall not cause the Trustee to have a conflicting
interest as defined in TIA § 310(b).

          In that event, this Indenture shall cease to be of further effect (except as set forth in this
paragraph), and the Trustee, on demand of the Company, shall execute proper instruments
acknowledging satisfaction and discharge under this Indenture. However, the Company’s obligations
in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02, 5.01, 7.07, 7.08 and 8.04, the Trustee’s and
Paying Agent’s obligations in Section 8.03 and the rights, powers, protections and privileges
accorded the Trustee under Article VII shall survive until all Securities of that series are no
longer outstanding. Thereafter, only the Company’s obligations in Section 7.07 and the Trustee’s
and Paying Agent’s obligations in Section 8.03 shall survive with respect to Securities of that
series.

          After making the irrevocable deposit pursuant to this Section 8.01(b) and following
satisfaction of the other conditions set forth herein, the Trustee on request shall acknowledge in
writing the discharge of the Company’s obligations under this Indenture with respect to the
Securities of that series, except for those surviving obligations specified above.

          In order to have money available on a payment date to pay principal of or premium (if any) or
interest on or any Additional Amounts with respect to the Securities, the Government Obligations
shall be payable as to principal or interest on or before that payment date in such amounts as will
provide the necessary money. Any such Government Obligations shall not be callable at the issuer’s
option.

          (c) If the Company has previously complied or is concurrently complying with Section 8.01(b)
(other than any additional conditions specified pursuant to Section 2.01 that are expressly
applicable only to covenant defeasance) with respect to Securities of a series, then, unless this
Section 8.01(c) is specified as not being applicable to Securities of that series as

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contemplated by Section 2.01, the Company may elect to be discharged (“legal defeasance”) from its
obligations to make payments with respect to Securities of that series, if:

     (1) no Default or Event of Default under clauses (4) and (5) of Section 6.01 hereof
shall have occurred at any time during the period ending on the 91st day after the date of
deposit contemplated by Section 8.01(b) (it being understood that this condition shall not
be deemed satisfied until the expiration of that period);

     (2) unless otherwise specified with respect to Securities of that series as
contemplated by Section 2.01, the Company has delivered to the Trustee an Opinion of
Counsel from counsel reasonably acceptable to the Trustee to the effect referred to in
Section 8.01(b)(4) with respect to that legal defeasance, which opinion is based on (i) a
private ruling of the Internal Revenue Service addressed to the Company, (ii) a published
ruling of the Internal Revenue Service or (iii) a change in the applicable federal income
tax law (including regulations) after the date of this Indenture;

     (3) the Company has complied with any other conditions specified pursuant to Section
2.01 to be applicable to the legal defeasance of Securities of that series pursuant to this
Section 8.01(c); and

     (4) the Company has delivered to the Trustee a Company Request requesting legal
defeasance of the Securities of that series and an Officers’ Certificate stating that all
conditions precedent with respect to legal defeasance of the Securities of that series have
been complied with, together with an Opinion of Counsel to the same effect.

          In that event, the Company will be discharged from its obligations under this Indenture and
the Securities of that series to pay principal of, premium (if any) and interest on, and any
Additional Amounts with respect to, Securities of that series, the Company’s obligations under
Sections 4.01, 4.02 and 5.01 shall terminate with respect to those Securities, and the entire
indebtedness of the Company evidenced by those Securities shall be deemed paid and discharged.

          (d) If and to the extent additional or alternative means of satisfaction, discharge or
defeasance of Securities of a series are specified to be applicable to that series as contemplated
by Section 2.01, the Company may terminate any or all of its obligations under this Indenture with
respect to Securities of a series and any or all of its obligations under the Securities of that
series if it fulfills such other means of satisfaction and discharge as may be so specified, as
contemplated by Section 2.01, to be applicable to the Securities of that series.

          (e) If Securities of any series subject to subsections (a), (b), (c) or (d) of this Section
8.01 are to be redeemed prior to their Stated Maturity, whether pursuant to any optional redemption
provisions or in accordance with any mandatory or optional sinking fund provisions, the terms of
the applicable trust arrangement shall provide for that redemption, and the Company shall make such
arrangements as are reasonably satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company.

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SECTION 8.02 Application of Trust Money.

          The Trustee or a trustee reasonably satisfactory to the Trustee and the Company shall hold in
trust money or Government Obligations deposited with it pursuant to Section 8.01 hereof. It shall
apply the deposited money and the money from Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of, premium (if any) and interest on and
any Additional Amounts with respect to the Securities of the series with respect to which the
deposit was made.

SECTION 8.03 Repayment to Company.

          The Trustee and the Paying Agent shall promptly pay to the Company at any time on the written
request of the Company any excess money or Government Obligations (or proceeds therefrom) held by
them.

          Subject to the requirements of any applicable abandoned property laws, the Trustee and the
Paying Agent shall pay to the Company on written request any money held by them for the payment of
principal, premium (if any), interest or any Additional Amounts that remain unclaimed for two years
after the date on which that payment shall have become due. After payment to the Company, Holders
entitled to the money must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another Person, and all liability of the Trustee and
the Paying Agent with respect to that money shall cease.

SECTION 8.04 Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money or Government Obligations
deposited with respect to Securities of any series in accordance with Section 8.01 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 that application, the obligations of the Company
under this Indenture with respect to the Securities of that series and under the Securities of that
series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01
until such time as the Trustee or the Paying Agent is permitted to apply all such money or
Government Obligations in accordance with Section 8.01; provided, however, that if the Company has
made any payment of principal of, premium (if any) or interest on or any Additional Amounts with
respect to any Securities because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of those Securities to receive such payment from the money
or Government Obligations held by the Trustee or the Paying Agent.

ARTICLE IX

SUPPLEMENTAL INDENTURES AND AMENDMENTS

SECTION 9.01 Without Consent of Holders.

43

 

          The Company and the Trustee may amend or supplement this Indenture or the Securities or waive
any provision hereof or thereof without the consent of any Holder:

     (1) to cure any ambiguity, omission, defect or inconsistency;

     (2) to comply with Section 5.01;

     (3) to provide for uncertificated Securities in addition to or in place of certificated
Securities, or to provide for the issuance of bearer Securities (with or without coupons);

     (4) to provide any security for any series of Securities or to add guarantees of any
series of Securities;

     (5) to comply with any requirement in order to effect or maintain the qualification of
this Indenture under the TIA;

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

     (7) to add any additional Events of Default with respect to all or any series of the
Securities (and, if any such Event of Default is applicable to less than all series of
Securities, specifying the series to which that Event of Default is applicable);

     (8) to change or eliminate any of the provisions of this Indenture; provided that any
such change or elimination shall become effective only when there is no outstanding Security
of any series created prior to the execution of that amendment or supplemental indenture
that is adversely affected in any material respect by that change in or elimination of that
provision;

     (9) to establish the form or terms of Securities of any series as permitted by Section
2.01;

     (10) to supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of Securities
pursuant to Section 8.01; provided, however, that any such action shall not adversely affect
the interest of the Holders of Securities of that series or any other series of Securities
in any material respect; or

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

44

 

facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to
the requirements of Section 7.08.

          Upon the request of the Company, accompanied by a Board Resolution, and upon receipt by the
Trustee of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06,
join with the Company in the execution of any supplemental indenture authorized or permitted by the
terms of this Indenture and make any further appropriate agreements and stipulations that may be
therein contained.

SECTION 9.02 With Consent of Holders.

          Except as provided below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture with the written consent (including consents obtained in connection with
a tender offer or exchange offer for Securities of any one or more series or all series or a
solicitation of consents in respect of Securities of any one or more series or all series, provided
that in each case that offer or solicitation is made to all Holders of then outstanding Securities
of each such series (but the terms of that offer or solicitation may vary from series to series))
of the Holders of at least a majority in principal amount of the then outstanding Securities of all
series affected by that amendment or supplement (acting as one class).

          Upon the request of the Company, accompanied by a Board Resolution, and upon the filing with
the Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt by the Trustee
of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06, join with
the Company in the execution of that amendment or supplemental indenture.

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

          The Holders of a majority in principal amount of the then outstanding Securities of one or
more series or of all series may waive compliance in a particular instance by the Company with any
provision of this Indenture with respect to Securities of that series (including waivers obtained
in connection with a tender offer or exchange offer for Securities of that series or a solicitation
of consents in respect of Securities of that series, provided that in each case that offer or
solicitation is made to all Holders of then outstanding Securities of that series (but the terms of
that offer or solicitation may vary from series to series)).

          However, without the consent of each Holder affected, an amendment, supplement or waiver
under this Section 9.02 may not:

     (1) reduce the amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

     (2) reduce the rate of or change the time for payment of interest, including default
interest, on any Security;

45

 

     (3) reduce the principal of, premium on or any mandatory sinking fund payment with
respect to, or change the Stated Maturity of, any Security or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable on a
declaration of acceleration of the Maturity thereof pursuant to Section 6.02;

     (4) reduce the premium, if any, payable on the redemption of any Security or change the
time at which any Security may or shall be redeemed;

     (5) change any obligation of the Company to pay Additional Amounts with respect to any
Security;

     (6) change the coin or currency or currencies (including composite currencies) in which
any Security or any premium, interest or Additional Amounts with respect thereto are
payable;

     (7) impair the right to institute suit for the enforcement of any payment of principal
of, premium (if any) or interest on or any Additional Amounts with respect to any Security
pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;

     (8) make any change in the percentage of principal amount of Securities necessary to
waive compliance with certain provisions of this Indenture pursuant to Section 6.04 or 6.07
or make any change in this sentence of Section 9.02; or

     (9) waive a continuing Default or Event of Default in the payment of principal of,
premium (if any) or interest on or Additional Amounts with respect to the Securities.

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

          The right of any Holder to participate in any consent required or sought pursuant to any
provision of this Indenture (and the obligation of the Company to obtain any such consent otherwise
required from that Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of any Securities with respect to which that consent is required or sought as of a
date identified by the Company in a notice furnished to Holders in accordance with the terms of
this Indenture.

          After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall mail to the Holders of each Security affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail that notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver.

46

 

SECTION 9.03 Compliance with Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Securities shall comply in form and
substance with the TIA as then in effect.

SECTION 9.04 Revocation and Effect of Consents.

          Until an amendment, supplement 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 consenting Holder’s Security, 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 his or her Security or portion of a Security if the Trustee receives written notice of
revocation before the date the amendment, supplement or waiver becomes effective. An amendment,
supplement or waiver becomes effective in accordance with its terms and thereafter binds every
Holder.

          The Company may, but shall not be obligated to, fix a record date (which need not comply with
Section 316(c) of the TIA) for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver or to take any other action under this Indenture. If a record date
is fixed, then notwithstanding the provisions of the immediately preceding paragraph, those Persons
who were Holders at that record date (or their duly designated proxies), and only those Persons,
shall be entitled to consent to that amendment, supplement or waiver or to revoke any consent
previously given, whether or not those Persons continue to be Holders after that record date. No
consent shall be valid or effective for more than 90 days after that record date unless consents
from Holders of the principal amount of Securities required hereunder for that amendment or waiver
to be effective shall have also been given and not revoked within that 90-day period.

          After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it is of the type described in any of clauses (1) through (9) of Section 9.02 hereof. In that
case, the amendment, supplement or waiver shall bind each Holder who has consented to it and every
subsequent Holder that evidences the same debt as the consenting Holder’s Security.

SECTION 9.05 Notation on or Exchange of Securities.

          If an amendment or supplement changes the terms of an outstanding Security, the Company may
require the Holder of the Security to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Security at the request of the Company regarding the changed terms and
return it to the Holder. Alternatively, if the Company so determines, the Company in exchange for
the Security shall issue and the Trustee shall authenticate a new Security that reflects the
changed terms. Failure to make the appropriate notation or to issue a new Security shall not
affect the validity of that amendment or supplement.

          Securities of any series authenticated and delivered after the execution of any amendment or
supplement may, and shall if required by the Company, bear a notation in form approved by the
Company as to any matter provided for in that amendment or supplement.

47

 

SECTION 9.06 Trustee to Sign Amendments, etc.

          The Trustee shall sign any amendment or supplement authorized pursuant to this Article if the
amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of
the Trustee. If it does, the Trustee may, but need not, sign it. In signing or refusing to sign
that amendment or supplement, the Trustee shall be entitled to receive, and, subject to Section
7.01 hereof, shall be fully protected in relying on, an Opinion of Counsel provided at the expense
of the Company as conclusive evidence that such amendment or supplement is authorized or permitted
by this Indenture, that it is not inconsistent herewith, and that it will be valid and binding on
the Company in accordance with its terms.

ARTICLE X

MISCELLANEOUS

SECTION 10.01 Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
operation of TIA § 318(c), the imposed duties shall control.

SECTION 10.02 Notices.

          Any notice or communication by the Company or the Trustee to the other is duly given if in
writing and delivered in person or mailed by first-class mail (registered or certified, return
receipt requested), telex, facsimile or overnight air courier guaranteeing next day delivery, to
the other’s address:

	 	 	 
	

	 	If to the Company:
	 
	 	 
	

	 	Affiliated Computer Services, Inc.
	

	 	2828 North Haskell Avenue
	

	 	Dallas, TX 75204
	

	 	Attention: General Counsel
	 
	 	 
	

	 	If to the Trustee:
	 
	 	 
	

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

	 	Plaza of the Americas
	

	 	600 North Pearl Street
	

	 	Suite 420
	

	 	Dallas, Texas 75201
	

	 	Attention: Corporate Trust Administration

          The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

48

 

          All notices and communications shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

          Any notice or communication to a Holder shall be mailed by first-class mail, postage prepaid,
to the Holder’s address shown on the register kept by the Registrar. 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.

          If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it, except in the case of
notice to the Trustee, it is duly given only when received.

          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

          All notices or communications, including without limitation notices to the Trustee or the
Company by Holders, shall be in writing, except as otherwise set forth herein.

          In case by reason of the suspension of regular mail service, or by reason of any other cause,
it shall be impossible to mail any notice required by this Indenture, then such method of
notification as shall be made with the approval of the Trustee shall constitute a sufficient
mailing of that notice.

SECTION 10.03 Communication by Holders with Other Holders.

          Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone
else shall have the protection of TIA § 312(c).

SECTION 10.04 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, if requested by the Trustee, furnish to the Trustee at the expense of
the Company:

     (1) an Officers’ Certificate (which shall include the statements set forth in Section
10.05) stating that, in the opinion of the signers, all conditions precedent and covenants,
if any, provided for in this Indenture relating to the proposed action have been complied
with; and

     (2) an Opinion of Counsel (which shall include the statements set forth in Section
10.05 hereof) stating that, in the opinion of that counsel, all those conditions precedent
and covenants have been complied with.

49

 

SECTION 10.05 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 a certificate provided pursuant to TIA § 314(a)(4)) shall comply
with the provisions of TIA § 314(e) and shall include:

     (1) a statement that the Person making that certificate or opinion has read that
covenant or condition;

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

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

     (4) a statement as to whether or not, in the opinion of that Person, that condition or
covenant has been complied with.

SECTION 10.06 Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or the Paying Agent may make reasonable rules and set reasonable requirements for its functions.

SECTION 10.07 Legal Holidays.

          If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.

SECTION 10.08 No Recourse Against Others.

          A director, officer, employee, stockholder, partner or other owner of the Company or the
Trustee, as such, shall not have any liability for any obligations of the Company under the
Securities or for any obligations of the Company or the Trustee under this Indenture or for any
claim based on, in respect of or by reason of those obligations or their creation. Each Holder by
accepting a Security waives and releases all that liability. The waiver and release shall be part
of the consideration for the issue of Securities.

SECTION 10.09 Governing Law.

          THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW

50

 

YORK, WITHOUT GIVING EFFECT TO ANY PRINCIPLES OF CONFLICTS OF LAWS THEREUNDER TO THE EXTENT THE
LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

SECTION 10.10 No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or any Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

SECTION 10.11 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 10.12 Severability.

          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, to the
fullest extent permitted by applicable law, not in any way be affected or impaired thereby.

SECTION 10.13 Counterpart 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 10.14 Table of Contents, Headings, etc.

          The table of contents, cross-reference table 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 or provisions hereof.

51

 

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

	 	 	 	 	 
	 	AFFILIATED COMPUTER SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

52exv10w4

 

Exhibit 10.4

RESIGNATION AGREEMENT

     This Resignation Agreement is entered into between StarTek, Inc. a Delaware corporation
(the “Company”) and William E. Meade, Jr. (“Meade”). The Company and Meade are referred to in
this Agreement together as the “Parties”, “we,” “our” or “us,” or individually as a “Party.”

BACKGROUND

     Meade was hired by the Company as the Company’s President and Chief Executive Office and
appointed to the Company’s Board of Directors (the “Board”) in May, 2001. Meade and the Board have
mutually agreed that a change in leadership is in the best interests of the Company’s stockholders,
and Meade has tendered his resignation to the Board to pursue other interests. Meade also resigned
from his position as a Director on the Board.

     In May 2001, the Parties entered an Employment Agreement (the “Employment Agreement”)
defining their mutual obligations concerning Meade’s employment as President and Chief Executive
Officer. In addition, the parties entered into an Option Agreement dated May 21, 2001 (the “Option
Agreement”) describing mutual obligations concerning certain stock options granted to Meade. In
connection with Meade’s resignation, the Parties want to enter into certain agreements as set forth
herein.

AGREEMENT

     In consideration of the mutual agreements specified in this Agreement, we agree as follows:

     1. MEADE’S RESIGNATION. On February 16, 2005, Meade submitted his resignation to the
Board resigning his positions as President and Chief Executive Officer and a member of the Board.
The parties acknowledge and agree that the effective date of the resignation was February 16, 2005.
For the ninety day period beginning February 16, 2005 through May 16, 2005, the effective date of
termination of Meade’s employment with the Company, Meade shall be excused from any further duties
or responsibilities as an employee of the Company but shall be entitled to his regular compensation
and all current benefits as provided in the Employment Agreement.

     2. EMPLOYMENT AGREEMENT. Except as modified in this Agreement, the terms of the
Employment Agreement dated May, 2001, a copy of which is attached as Exhibit A and incorporated
herein by the reference, shall remain in full force and effect in accordance with its terms.

     3. SEVERANCE SALARY. In accordance with the terms of the Employment Agreement, Meade
shall continue to receive his annual base cash salary of $434,491.00 for one year, or until May 16,
2006 (the “Severance Period”) payable in regular installments at the regular payroll periods of the
Company. All compensation the Company pays Meade shall be subject to

 

 

customary employer
withholdings, e.g., FICA, Medicare/Medicaid, any applicable occupational privilege tax, and
reduction for health insurance premiums.

     4. INSURANCE BENEFITS. For the Severance Period, the Company shall maintain Meade on
the Company’s existing health insurance plan; however Meade shall be responsible for payment of the
monthly premium.

     5. VACATION AND SICK DAYS. On May 16, 2005, the Company shall pay Meade the
appropriate amount for accrued vacation or sick days in accordance with Company policies currently
in effect and as required by law.

     6. OPTION AGREEMENT. A copy of the Option Agreement is attached to this Agreement as
Exhibit B and incorporated herein by this reference. The parties wish to amend the Option
Agreement in certain respects as provided in that certain Amendment No. 1 attached to this
Agreement as Exhibit C and incorporated herein by this reference. The Parties have separately
executed such amendment, which is incorporated herein by this reference.

     7. INDEMNIFICATION. On or about February 13, 2004 the parties executed an
Indemnification Agreement, a copy of which is attached as Exhibit D and incorporated herein by this
reference. That Indemnification Agreement shall remain in full force and effect in accordance with
its terms.

     8. RETURN OF PROPERTY AND ACCESS TO RETRIEVE PROPERTY. On or before February 28,
2005, Meade will return to the Company all its property in his possession and control, including
all keys, vehicles, portable computers, computer disks, documents, records, credit cards and
calling cards. On or before February 28, 2005, the Company shall permit Meade access to the
Company property for the purpose of retrieving all of his personal property.

     9. CONFIDENTIALITY AND NON-DISPARAGEMENT. The parties agree to state to third parties
only that Meade resigned from the Company under terms of a mutually acceptable resignation
agreement. Otherwise, the Parties will keep this Agreement confidential and will not communicate,
divulge or disclose and will not permit or to cause anyone in privity with them to communicate,
divulge or disclose to any third party the amount, terms or conditions of this Agreement. As
necessary, however, we may each disclose the terms and conditions of this Agreement to our
respective directors, shareholders, accountants, and legal and financial advisers, and otherwise as
appropriate or necessary as required by law or court order. The Company shall not disparage Meade,
and Meade shall not disparage the Company or any of its officers, directors, stockholders,
employees or agents.

     10. ENTIRE AGREEMENT; AMENDMENT; ENFORCEABILITY; INTERPRETATION. This Agreement,
together with all incorporated exhibits expresses the Parties entire understanding about its
subject matter and is the only agreement, promise or understanding on which we are relying in
performing the duties this Agreement describes. The only way this Agreement may be amended, changed
or waived will be through a written document signed by both parties. This Agreement is enforceable
by and against each Party and anyone else who has or who obtains rights under this Agreement from
either Party. This Agreement will be

2

 

interpreted and enforced under Colorado law. No part of this
Agreement should be construed against either Party on the basis of authorship. Any unenforceable
provision of this Agreement will be modified to the extent necessary to make it enforceable or, if
that is not possible, will be severed from this Agreement, and the remainder of this Agreement will
be enforced to the fullest extent possible.

     IN WITNESS OF OUR AGREEMENTS, the Company and Meade have executed this Agreement on the
date(s) indicated below.

	 	 	 	 	 	 	 	 	 
	STARTEK, INC.:	 	 	 	WILLIAM E. MEADE:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	/s/ Steven D. Butler
	 	 	 	/s/William E. Meade, Jr.
	 	 	 	 	 	 	 
	Title:

	 	 	 	Executive Vice President
	 	 	 	Signature
	Date:

	 	 	 	February 21, 2005
	 	 	 	Date: February 21, 2005

3

 

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made as of May 2001, by and between StarTek,
Inc., a Delaware corporation (the “Company”), and William E. Meade (“Executive”).

     Executive and the Company desire to enter into this Agreement in order to document certain
agreements regarding their employment relationship.

     For good and valuable consideration, it is agreed as follows:

     1. Employment Term. Subject to the terms and conditions set forth herein, the Company
shall employ Executive as President and Chief Executive Officer, and Executive shall serve in such
capacities as may be determined by the Board of Directors (the “Board”) and acceptable to
Executive, through May, 2006, unless otherwise extended by mutual agreement or unless the
employment of Executive is terminated at an earlier date in accordance with the terms hereof.

     2. Duties. Executive shall perform all duties as may be reasonably assigned to him
from time to time by the Board, and, specifically, Executive shall be responsible for and in charge
of the day-to-day operations of the Company. During the Term, Executive shall not, directly or
indirectly, organize, engage in, own, manage, operate, control, be employed by or participate in
the ownership, management, operation or control of any competitor of the Company.

     3. Compensation, Options and Benefits. Company shall pay Executive an annual base cash
salary of $400,000 (“Base Compensation”), payable in installments at the regular payroll periods of
the Company. Such salary may be increased as determined by the Compensation Committee of the Board
and will increase $20,000 every other year beginning on the second anniversary of this Agreement.
Executive shall be awarded qualified options to purchase 200,000 shares at a strike price equal to
market price upon inception of employment. Options will have terms as provided by the StarTek, Inc.
Stock Option Plan dated February 13, 1997, and as amended from time to time by the Board. Executive
shall have the opportunity to receive an additional 200,000 options in accordance with a
performance-based option plan if approved by the Board. Additionally, Executive shall be entitled
to the benefits listed in Exhibit A (attached hereto and incorporated specifically herein by
reference). The Company shall also reimburse Executive for reasonable and necessary expenses
incurred in the performance of his duties and for which Executive provides such documentation as
required by the Company’s policies.

     4. Termination. This Agreement and Executive’s employment with the Company may be
terminated by the Company or Executive at any time for any reason upon 90 days’ prior written
notice to the other party, except in the event of death of Executive in which case the Agreement
will terminate as of the date of death. Upon termination of Executive’s employment other than for
cause or death, Executive shall be entitled to payment of the Base Compensation for one (1) year
from date of termination.

     For purposes of this Agreement, “cause” means (i) abandonment of the job or unexcused failure
to report for work for 48 hours without proper notification, other than any such failure

4

 

resulting
from Executive’s death or Disability; (ii) the conviction of Executive by a court of competent
jurisdiction of a felony or the theft or embezzlement of Company assets; (iii) Executive’s
intoxication while on duty resulting from use of illegal drugs, alcohol or other controlled
substances; or (iv) any breach by Executive of his obligations under Paragraph 2 of this Agreement
stating that during the Term, Executive shall not, directly or indirectly, organize, engage in,
own, manage, operate, control, be employed by or participate in the ownership, management,
operation or control of any competitor of the Company.

     5. Confidential Information. Except in the ordinary course of business, Executive will
not disclose any confidential or proprietary information of the Company (defined herein below
collectively as “Confidential Information”) to any person not employed by the Company, including
information received in confidence from the Company or others, either before, during or after his
employment by the Company. Executive acknowledges that such Confidential Information will include
matters conceived or developed by him, as well as matters learned by him from other employees of
the Company. Any Confidential Information that Executive shall prepare, use or come into contact
with shall be and remain the Company’s sole property and, except in the ordinary course of
business, shall not be removed from the Company’s premises without the prior written consent of the
Chairman of the Board, and shall be returned upon termination of employment. Executive will not,
except as the Company may otherwise consent or direct in writing, sell, use, lecture upon or
publish any Confidential Information or proprietary information of the Company or authorize anyone
else to do those things at any time either during or subsequent to the employment of Executive
hereunder. The obligations of Executive set forth in this Section 5 shall survive the termination
of his employment. For purposes of this Agreement, the term “Confidential Information” means
information (i) disclosed to or known by Executive as a consequence of his employment
hereunder; (ii) not publicly disclosed by the Company; and (iii) which relates to the business
(“Business”) of the Company. By way of illustration, but not limitation, and assuming that the
following examples meet the requirements of clauses (i), (ii), and (iii) of the preceding sentence,
Confidential Information includes any and all proprietary information, trade secrets, techniques,
new product ideas, marketing plans, strategies, forecasts, financial and cost information, customer
lists, prospective customer lists, concepts, know-how, improvements, proposals, and inventions. In
the event of any breach of the foregoing restrictions, Executive acknowledges that the harm to the
Company cannot be reasonably or adequately compensated in damages in any action at law.
Accordingly, Executive agrees that, upon any violation of the terms of this Section 5, the Company
shall be entitled to preliminary and permanent injunctive relief in addition to any other remedy
that may be available thereto at law or in equity.

     6. Non-Competition. Executive acknowledges that (i) Executive is one of the limited
number of persons who, as an executive of the Company, has comprehensive knowledge of the business
of the Company; (ii) the Business is conducted globally; (iii) his work for the Company will have
given him, and his work for the Company will continue to give him, access to Confidential
Information; and (iv) the agreements and covenants contained in this Section 6 are essential to
protect the Business and goodwill of the Company. Accordingly, Executive covenants and agrees as
follows:

5

 

     (a) For the period commencing on the date employment of Executive is terminated hereunder and
ending one (1) year thereafter (the “Restricted Period”), Executive shall not, directly or
indirectly, (i) engage in the Business or any material aspect of the Business for the Executive’s
own account or (whether as an employee, agent, contractor or otherwise) for the account of any
person or entity (other than the Company); (ii) enter the employ of any person or entity (other
than the Company) for which any aspect of the Business is responsible for any material portion of
its revenues; or (iii) become a partner, member, shareholder, officer, director, manager, or
employee of any person or entity (other than the Company) for which any aspect of the Business is
responsible for any material portion of its revenues, other than holding publicly traded securities
that represent less than 5% of the outstanding securities of such person or entity.

     (b) For the period commencing on the date employment of the Executive is terminated hereunder
and ending three (3) years hence, the Executive shall not, directly or indirectly, hire or solicit
any employee of the Company or encourage any employee to leave such employment for any business
whether or not a competitor of the Company or solicit or attempt to solicit any business (which is
related to any material aspect of the Business) to be conducted anywhere (or help any other person
or entity solicit or accept any such business) from any person or entity who, during the
twenty-four months preceding the date of termination or expiration of Executive’s employment, is a
customer or supplier of the Company or who during the Restricted Period becomes, and actually is
known by Executive to be, a customer or supplier of the Company.

     (c) If a court of competent jurisdiction determines that the terms of this Section 6 are
partially or wholly inoperative, unenforceable or invalid in a particular case because of their
time or geographic scope or for any other reason, the parties agree that such court shall have the
power to limit such time or geographic scope or otherwise to recast the terms of this Section 6 in
such case so as to permit its enforcement to the greatest extent permitted by applicable law. In
the event of a breach or anticipatory breach of this Section 6, Executive agrees that the remedies
at law may be inadequate and that the Company shall be entitled to preliminary and permanent
injunctive relief in addition to any other remedy that may be available thereto at law or in
equity. The obligations of Executive set forth in this Section 6 shall survive the termination of
his employment hereunder.

     (d) The enforceability by the Company of the obligations of Executive under this Section 6 are
conditioned upon payment by the Company of Executive’s Base Compensation pursuant to the terms and
conditions of Section 4 herein.

     7. General Provisions. The failure by either party hereto to insist upon strict
compliance with any of the terms or conditions hereof shall not be deemed a waiver of such term or
condition, nor shall any waiver of such term or condition at any one or more times be deemed a
waiver of such term or condition. This Agreement shall inure to the benefit of and be binding upon
the Company, its successors and assigns. Executive shall not have the right to assign this
Agreement or to delegate any of his duties hereunder. This Agreement constitutes the full and
complete understanding and agreement of the parties with respect to the matters set forth herein
and supersedes all prior understandings and agreements between such parties. This Agreement may be
modified or amended only by an agreement in writing signed by the party against whom

6

 

enforcement
may be sought. If for any reason whatsoever any one or more of the provisions of this Agreement is
determined by a court of competent jurisdiction to be inoperative, unenforceable or invalid in a
particular case, such determination shall not render such provision invalid in any other case or
render any of the other provisions of this Agreement inoperative, unenforceable or invalid. The
exercise, validity, construction, operation and effect of the terms and provisions of this
Agreement shall be determined in accordance with the law of the State of Colorado as in effect for
contracts made and to be performed in such state.

     8. Tax Withholding. The Company shall have the right to deduct or withhold from the
compensation due to Executive hereunder any and all sums required for federal income and Social
Security taxes and all state or local taxes now applicable or that may be enacted or become
applicable in the future.

     9. Notices. Any notice required or permitted to be given under this Agreement shall be
in writing and shall be sent by registered or certified mail, postage prepaid, or by generally
recognized prepaid overnight air courier service, addressed as follows:

If to the Company:

StarTek, Inc.

100 Garfield Street

Denver, CO 80206

Attention: A. Emmet Stephenson, Jr.

If to the Executive:

William E. Meade

100 Garfield Street

Denver, CO 80206

     The designation of the persons to be so notified and the address of such persons for the
purposes of such notice may be changed from time to time by a notice delivered in the manner
contemplated by this Section 9.

     In witness whereof, this Agreement has been executed by the parties hereto as of the date
first written above.

	 	 	 	 	 
	

	 	STARTEK, INC.

	 
	 	 	 	 
	

	 	By:
	 	/s/ A. Emmet Stephenson, Jr.
	

	 	 	 	 
	 	 	 	 	A. Emmet Stephenson, Jr.
	 	 	 	 	Chairman of the Board
	 
	 	 	 	 
	 	 	EXECUTIVE

	 
	 	 	/s/ William E. Meade
	 	 	 
	 	 	William E. Meade

7

 

Exhibit A

BENEFITS

	 	 	 
	Vacation:

	 	20 days per year
	 
	 	 
	Holidays:

	 	10 days per year (9 National holidays plus one)
	 
	 	 
	Sick days:

	 	6 days per year with rollover
	 
	 	 
	Health Insurance:

	 	Standard family plan for employees with
reimbursement of additional cost of insurance to
100% of cost.
	 
	 	 
	Disability Insurance:

	 	$240,000 per year
	 
	 	 
	Life Insurance:

	 	Equal to 1 year’s Base Compensation, and Executive
shall have the sole right to name beneficiaries.
	 
	 	 
	Relocation

Assistance:

	 	Professional assistance with any cost paid by
StarTek 100% reimbursement of expenses or StarTek
performs transactions to avoid taxable income to
Bill.

8

 

February 9, 2004

Board of Directors of StartTek, Inc.

c/o StarTek, Inc.

100 Garfield Street

Denver, CO 80206

     Re: Employment of William E. Meade, Jr.

Gentlemen:

     This letter is intended to provide information to the Board of Directors (the “Board”) of
StarTek, Inc. (the “Company”) regarding various understandings between A. Emmet Stephenson, Jr.
(the “Chairman”) and William E. Meade, Jr. (the “CEO”) as communicated to the Board at its special
meeting on January 22, 2004. The information in this letter relates to proposed modifications to
the CEO’s employment arrangement with the Company and the implementation of various governance and
other recommendations of the CEO.

     This information is provided as background and support for disclosures set forth in the Form
S-3 Registration Statement relating to the proposed public offering of shares of the Company owned
by Toni E. Stephenson, MASSET Trust and FASSET Trust (the :Secondary Offering”).

     The CEO and the Company are parties to that certain Employment Agreement dated as of May 2001,
which has a term extending through May 2006 (the “Employment Agreement”). The Chairman and the CEO
have agreed to the following modifications to the Employment Agreement and implementation of
various governance and other recommendations of the CEO in an effort to ensure the continuing
employment of the CEO through May 2006. The following are subject to the discretion and approval
of the Compensation and Stock Option Committee of the Board:

          1. Section 3 of the Employment Agreement provides that the CEO shall have the opportunity to
receive an additional 200,000 options in accordance with a performance-based option plan if
approved by the Board. The CEO has agreed to forego this opportunity.

          2. An additional 200,000 to 300,000 shares will be reserved for issuance pursuant to options
granted under the Company’s Stock Option Plan as incentives for current senior management (other
than the CEO) and new hires, subject to stockholder approval.

          3. The Company will pay aggregate bonuses of $250,000 to $500,000 to participants in the
Company’s 2003 Bonus Plan even though not all of the performance thresholds as provided in the plan
were achieved.

          4. The performance thresholds for earning bonuses under the 2004 Bonus Plan will be modified
so that such thresholds are more achievable.

9

 

          5. The CEO will be added expressly as a participant in the 2003 Bonus Plan, 2004 Bonus Plan
and any further bonus plans established by the Compensation Committee.

          6. After completion of the Secondary Offering, the CEO will be the lead person on investor
relations matters, including one-on-one calls with analysts.

          7. The CEO has full authority to hire and fire officers and employees of the Company, subject
to such further direction and restrictions as established by the Board.

          8. The CEO will report directly to the full Board as to all matters.

          9. The compensation of the CEO will be reviewed annually by the Compensation Committee.

     The independent directors of the Board shall oversee the implementation of the matters set
forth in this letter.

     The CEO hereby represents and warrants that, based upon implementation of the foregoing, the
CEO has no current plan or intention to terminate his employment with the Company prior to May
2006.

     The Chairman and CEO hereby represent and warrant that there are no other understandings or
agreements between the Chairman and CEO other than as set forth above that provide further
incentives or inducements to the CEO to continue employment as CEO of the Company through May 2006.

     Executed effective as the date first set forth above.

	 	 	 
	

	 	  /s/ A. Emmet Stephenson, Jr.
	

	 	 
	

	 	A. Emmet Stephenson, Jr.
	 
	 	 
	

	 	  /s/ William E. Meade, Jr.
	

	 	 
	

	 	William E. Meade, Jr.

10

 

EXHIBIT B

Option Agreement

11

 

STARTEK, INC.

OPTION AGREEMENT

Date of Grant: May 21, 2001

          THIS OPTION AGREEMENT (this “Agreement”), dated as of the date of grant first stated
above (the “Date of Grant”), is delivered by StarTek, Inc., a Delaware corporation (the
“Company”) William E. Meade, Jr. (the “Participant”), who is an employee of the Company or
one of its Designated Subsidiaries.

Recitals

     A. The Board of Directors of the Company (the “Board”) has adopted, with subsequent
stockholder approval, the StarTek, Inc. Stock Option Plan (the “Plan”).

     B. The Plan provides for the granting of stock option (ISO’s”) and nonqualified stock options
(“NSO’s) by a committee to be appointed by the Board (the “Committee”) to key employees of
the Company or any subsidiary of the Company to purchase, or to exercise certain rights with
respect to, shares of the common stock of the Company, par value $0.01 per share, in accordance
with the terms and provisions thereof; and

     C. The Committee considers the Participant to be a person who is eligible for a grant of stock
options under the plan, and has determined that it would be in the best interest of the Company to
grant to Participant the stock options set forth herein, subject to the terms and conditions
hereof.

Agreement

     NOW, THEREFORE, the parties hereby agree as follows:

1. Definitions. Except as expressly indicated herein, defined terms used this Agreement shall have
the meanings set forth in the Plan.

2. Grant of Option. Subject to the terms and conditions hereinafter set forth, the Company, with
the approval and at the direction of the Committee, hereby grants to the Participant, as of the
Date of Grant, an option to purchase up to 200,000 shares of Common Stock at a price of $17.20 per
share, the Fair Market Value of the Common Stock as of the Date of Grant. Such option is
hereinafter referred to as the “Option” and the shares of Common Stock purchasable upon
exercise of the Option are hereinafter sometimes referred to as the “Option Shares”. The
Option is intended by the parties hereto to be, and shall be treated as an ISO.

     Notwithstanding any provisions of this Agreement to the contrary, the Option granted under
this Agreement shall terminate and be of no further force and effect if the stockholders of the
Company do not approve at the annual meeting of the stockholders on May 30, 2001 (or at any
adjournment thereof) the proposed amendment to the Plan to increase the maximum number of shares of
Common Stock available for award under the Plan from 985,000 to 1,585,000.

12

 

3. Vesting and Termination of the Option

          (a) Vesting of Option. Subject to the provisions of the Plan which provide for
acceleration of exercisability of the Option in certain circumstances as provided therein and such
further limitations as are provided therein in the Plan and this Agreement, the Option shall vest
and be exercisable as to the Option Shares (subject to adjustment as provided in paragraph 10 of
the Plan) as follows:

	 	 	 	 	 
	

	 	On the first anniversary
Of the Date of Grant and
Thereafter:
	 	40,000 Option Shares
	 
	 	 	 	 
	

	 	On the second anniversary
Of the Date of Grant and
Thereafter:
	 	40,000 Option Shares
	 
	 	 	 	 
	

	 	On the third anniversary
Of the Date of Grant and
Thereafter:
	 	40,000 Option Shares
	 
	 	 	 	 
	

	 	On the fourth anniversary
Of the Date of Grant and
Thereafter:
	 	40,000 Option Shares
	 
	 	 	 	 
	

	 	On the fifth anniversary
Of the Date of Grant and
Thereafter:
	 	The balance of the
Option Shares not
theretofore vested.

Except as provided below, upon Termination of Employment for any reason, a Participant shall
forfeit any Options that are not vested on the date of Termination of Employment. Notwithstanding
the vesting schedule contained herein, upon Termination of Employment of the Participant for Cause,
all Options granted to the participant will be cancelled and forfeited by the Participant upon
delivery to him of notice of such Termination of Employment.

          (b) Termination of Option. The Option granted under this Agreement will expire as of
the earliest of:

	 	(i)  	the date of which it is forfeited under the
provisions of paragraph 3(a) hereof;
	 
	 	(ii)  	10 years from the Option Date;
	 
	 	(iii)  	three months after the Participant’s Termination of
Employment for any reason other than death; or six months after the
Participant’s death.

13

 

4. Exercise of Options.

(a) Notice and Payment. To exercise an Option in whole or in part, a
Participant (or, after his death, his executor or administrator) must give written
notice to the Committee, stating the number of shares as to which he intends to
exercise the Option together with payment of the Option Price. The Option Price (and
any required withholding) may be paid (i) in cash, (ii) in shares of Common Stock
having an aggregate Fair Market Value, as determined on the date of delivery, equal to
the Option Price, or (iii) by delivery of irrevocable instructions to a broker to
promptly deliver to the Company the amount of sale or loan proceeds necessary to pay
for all Common stock acquired through such exercise and any tax withholding
obligations resulting from such exercise.

(b) Delivery of Certificate. On the exercise date specified in the
Participant’s notice or as soon thereafter as is practicable, the Company shall cause
to be delivered to the Participant, a certificate or certificates for the Option
Shares then being purchased (out of theretofore unissued Common Stock or reacquired
Common Stock, as the Company may elect) upon full payment for such Option Shares. The
obligation of the Company to deliver Common Stock shall, however, be subject to the
condition that if at any time the Committee shall determine in its discretion that the
listing, registration or qualification of the Option or the Option Shares upon any
securities exchange or under any state or federal law, or the consent or approval of
any governmental regulatory body, is necessary or desirable as a condition of, or in
connection with, the Option or the issuance or purchase of Common stock thereunder,
the Option may not be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Committee.

(c) Failure to Pay. If the Participant fails to pay for any of the Option
Shares specified in such notice and any required withholding tax or fails to accept
delivery of the Option Shares, the Participant’s right to purchase such Option Shares
may be terminated by the Company. The date specified in the participant’s notice as
the date of exercise shall be deemed the date of exercise of the Option, provided that
payment in full for the Option Shares to be purchased upon such exercise and any
required tax withholding shall have been received by such date.

5. Non-Transferability to Option. During the Participant’s lifetime, the Option shall be
exercisable only by the Participant or any guardian or legal representative of the Participant, and
the Option shall not be assignable or transferable by the Participant except, in case of the death
of the Participant, by will or the laws of intestate succession. In addition, the Option shall not
be subject to attachment, execution or other similar process. In the event of (i) any attempt by the Participant
to alienate, assign, pledge, hypothecate or otherwise dispose of the Option, except as provided for
herein, or (ii) the levy of any attachment, execution or similar process upon the

14

 

rights or
interest hereby conferred, the Company may terminate the Option by notice to the Participant and it
shall thereupon become null and void.

6. Transferability of Option Shares. The Participant hereby agrees that the Option Shares acquired
upon exercise of the Option shall be acquired for the Participant’s own account for investment
purposes only and not with a view to any distribution or public or public offering thereof within
the meaning of the Act, or other applicable securities laws. If the Board so determines, any
stock certificates issued upon exercise of the Option shall bear a legend to the effect that the
Option Shares have been so acquired. The Company shall not be required to bear any expenses of
compliance with the Act, other applicable securities laws, or the rules and regulations of any
national securities exchange or other regulatory authority in connection with the registration,
qualification or transfer, as the case may be, of the Option or any Options Shares acquired upon
exercise thereof. The foregoing restrictions on the transfer of Options Shares shall not apply if
(i) the Company shall have been furnished with a satisfactory opinion of counsel to the effect that
such transfer will be in compliance with the Act and all other applicable securities laws, or (ii)
the Option Shares shall have been duly registered in compliance with the Act and all other
applicable securities laws.

     The Participant further agrees that, upon any sale of Option Shares within two (2) years from
the Date of Grant of the Option, or within one year after transfer of such Option Shares to the
Participant’s ownership, then the Participant shall immediately notify the Company in writing of
such disposition and the amount realized by the Participant upon such disposition.

7. Employment Not Affected. Neither the granting of the Option nor its exercise shall be construed
as granting to the Participant any right with respect to continuance of employment with the Company
or any Subsidiary. Except as may otherwise be limited by a written agreement between the Company
or any Subsidiary and the Participant, the right of the Company or any Subsidiary to terminate at
will the Participant’s employment with it at any time (whether by dismissal, discharge, retirement
or otherwise) is specifically reserved by the Company or Subsidiary (whichever the case may be),
and acknowledged by the Participant.

8. Amendment of Option. The Option may be amended by the Board or the Committee at any time (i) if
the board or the Committee determines, in its sole discretion, that amendment is necessary or
advisable in the light of any addition to or change in the Code or in the regulations issued
thereunder, or any federal or state securities law or other law or regulation, which change occurs
after the Date of Grant and by its terms applies to the Option or (ii) other than in the
circumstances described in clause (i), with the consent of the Participant.

9. Notice. Any notice to the Company provided for in this Agreement shall be addressed to the
Company in care of its Secretary at its executive offices at 100 Garfield Street, Denver, Colorado
80206, and any notice to the Participant shall be addressed to the participant at the current
address shown on the payroll records of the Company. Any notice shall be deemed to be duly given
if and when properly addressed and posted by registered or certified mail, postage prepaid.

15

 

10. Incorporation of Plan by Reference. The Option is granted pursuant to the terms of the Plan,
the terms of which are incorporated herein by reference, and the Option shall in all respects be
interpreted in accordance with and subject to the terms and provisions of the Plan. The Committee
shall interpret and construe the Plan and this Agreement, and its interpretations and
determinations shall be conclusive and binding on the parties hereto and any other person claiming
an interest hereunder, with respect to any issue arising hereunder or thereunder. If any terms of
this Agreement conflict with the terms of the Plan, the terms of the Plan shall control.

11. Governing Law. The validity, construction, interpretation and effect of this Agreement shall
exclusively be governed by and determined in accordance with the laws of the State of Delaware,
except to the extent preempted by federal law, which shall to the extent of such preemptive govern.

          IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Date of
Grant specified above.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	STARTEK, INC., a Delaware corporation
	 
	 	 	 	 	 	 	 	 
	     /s/ Dennis Swenson

	 	 	 	 	 	/s/
	 	Michael W. Morgan
	 	 	 	 	 
	Dennis Swenson, Secretary

	 	 	 	 	 	 	 	Michael W. Morgan, President and
Chief Executive Officer
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	ACCEPTED AND AGREED TO:
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	     /s/ William E. Meade, Jr.
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	Participant

16

 

EXHIBIT C

Form of Amendment No. 1 to Option Agreement

17

 

AMENDMENT NO 1

STARTEK, INC.

OPTION AGREEMTENT

     This AMENDMENT NO 1 (this “Amendment”), is entered into as of the 21st day
of February, 2005, by and between StarTek, inc., a Delaware corporation (the “Company”) and
William E. Meade, Jr. (the “Participant:”), who has been an officer, director and employee
of the Company and/or one of its subsidiaries.

RECITALS

     A. The Board of Directors of the Company (the “Board”) has established the StarTek,
Inc. Stock Option Plan (the “Plan”) pursuant to which a committee appointed by the Board
(the “Committee”) may grant stock options to key employees of the Company or any subsidiary
of the Company to purchase, or to exercise certain rights with respect to, shares of the Common
Stock of the Company, in accordance with the terms and provisions of the Plan.

     B. The Committee authorized the grant of an option (the “Option”) to purchase 200,000
shares of Common Stock of the Company to the Participant pursuant to the Plan as evidenced by that
certain Option Agreement dated May 21, 2001 (the “Option Agreement”).

     C. The Participant and the Company desire to amend the Option Agreement to provide for (i) the
accelerated vesting of a certain portion of the Option that has not yet vested under the Option
Agreement and is scheduled to vest on May 21, 2005; (ii) the relinquishment and forfeiture of a
certain portion of the Option that has not yet vested under the Option Agreement and is scheduled
to vest on May 21, 2006; (iii) termination of the Option on August 15, 2006 (to the extent the
Option is not exercised prior to such date); and (iv) an acknowledgement by the Participant that
the Participant’s employment with the Company shall terminate as of May 15, 2005.

     NOW, THEREFORE, in consideration of the premises and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Amendments.

     (a) Section 3(a) of the Option Agreement is hereby deleted in its entirety and replaced with
the following.

          “(a) Vesting of Option. Subject to the provisions of the Plan which provide for
acceleration of exercisability of the Option in certain circumstances as provided therein and such
further limitations as are provided in the Plan and this Agreement, the Option shall vest and be
exercisable as to the Option Shares (subject to adjustment as provided in paragraph 10 of the Plan)
as follows:

18

 

	 	 	 	 	 
	

	 	On the first anniversary Of the Date of Grant and Thereafter:
	 	40,000 Option Shares
	 
	 	 	 	 
	

	 	On the second anniversary Of the Date of Grant and Thereafter:
	 	40,000 Option Shares
	 
	 	 	 	 
	

	 	On the third anniversary Of the Date of Grant and Thereafter:
	 	40,000 Option Shares
	 
	 	 	 	 
	

	 	On May 15, 2005 and Thereafter:	 	40,000 Option Shares

The Participant hereby acknowledges and agrees that, without further action on his part or on the
part of the Company, his employment with the Company shall terminate on May 16, 2005, on which date
the Participant shall forfeit and relinquish that portion of the Option Shares (40,000) scheduled
to vest on the fifth anniversary of the Date of Grant (May 21, 2006) under the Option Agreement.
Notwithstanding such vesting schedule, upon any sooner Termination of Employment of the Participant
for Cause, all Options granted to him will be cancelled and forfeited by the Participant upon
delivery to him of notice of such Termination of Employment.”

     (b) Section 3(b) of the Option Agreement is hereby deleted in its entirety and replaced with
the following:

          “(b). Termination of Options. The Option granted under this Agreement will expire as
of August 15, 2006.

     2. Continuing Effect. Except as amended hereby, the Option Agreement shall continue
in full force and effect in accordance with its terms. If any provision of this Amendment
contradicts or is inconsistent with any provision of the Option Agreement, then the provisions of
this Amendment shall apply.

     3. Counterparts; Facsimile Signatures. This Amendment may be executed in
counterparts, each of which shall be deemed an original, and all of which together shall constitute
one and the same instrument. Any counterpart of or other signature to this Amendment delivered by
a party by facsimile shall be deemed for all purposes to be an original signature.

     4. Governing Law. The validity, construction, interpretation and effect of this
Amendment shall exclusively be governed by and determined in accordance with the laws of the State
of Delaware, except to the extent preempted by federal law, which shall to the extent of such
preemption govern.

19

 

     IN WITNESS WHEREOF, the Company has caused a duly authorized officer to executive this
AMEDMENT NO. 1, and Participant has placed his signature hereon, effective as of the date first set
forth above.

	 	 	 	 	 
	 	 	STARTEK, INC., a Delaware corporation
	 
	 	 	 	 
	

	 	By:
	 	    /s/ Steven D. Butler
	

	 	 	 	 
	 	 	Name: Steven D. Butler
	 	 	Title: Executive Vice President, Chief
	 	 	Financial Officer, Secretary and Treasurer
	 
	 	 	 	 
	 	 	ACCEPTED AND AGREED TO:
	 
	 	 	 	 
	 	 	  /s/ William E. Meade, Jr.
	 	 	 
	 	 	William E. Meade, Jr., Participant

20

 

EXHIBIT D

Indemnification Agreement

21

 

INDEMNIFICATION AGREEMENT

     AGREEMENT dated effective as of February 13, 2004, between StarTek, Inc., a Delaware
corporation (the “Company”), and William E. Meade, Jr. (the “Indemnitee”).

     WHEREAS, it is essential to the Company to retain and attract as directors and officers the
most capable persons available; and

     WHEREAS, Indemnitee is or wishes to serve as a director and/or officer of the Company; and

     WHEREAS, Article VIII of the Certificate of Incorporation of the Company and Article V of the
By-Laws of the Company require the Company to indemnify and advance expenses to its directors and
officers to the full extent authorized and permitted by the Delaware General Corporation Law, and
allows for the provision of additional indemnification rights to directors or officers by separate
agreement; and

     WHEREAS, Indemnitee has been serving and continues to serve, or will serve, as a director
and/or officer of the Company in part in reliance on such provisions of the Certificate of
Incorporation and By-Laws; and

     WHEREAS, the DGCL contains a provision stating that the indemnification provisions of the DGCL
are not to be deemed exclusive of any other rights to which persons seeking indemnification may be
entitled under any By-Law of the Company, any agreement or otherwise; and

     WHEREAS, Article V of the Company’s By-Laws provides that the indemnification and expense
advances provided by or granted pursuant to Article V shall not be deemed exclusive of any other
rights to which those seeking indemnification or expense advances may be entitled under any
agreement; and

     WHEREAS, in recognition of Indemnitee’s need for substantial protection against personal
liability in order to encourage Indemnitee’s service to the Company in an effective manner, the
Company wishes to provide in this Agreement for the indemnification of, and the advancing of
expenses to, Indemnitee to the fullest extent (whether partial or complete) authorized and
permitted by law and the Company’s By-Laws, and to such extent as may be provided for in this
Agreement; and

     WHEREAS, to the extent insurance is maintained this Company wishes to provide in this
Agreement for the continued coverage of Indemnitee under the Company’s directors’ and officers’
liability insurance policies.

     NOW, THEREFORE, in consideration of the premises and of Indemnitee’s service or continued
service to the Company directly or, at its request, to any other Enterprise, and intending to be
legally bound hereby, the parties hereto agree as follows:

22

 

     1. CERTAIN DEFINITIONS. Capitalized words not otherwise defined herein shall have the
following meanings:

     a. “Claim” shall mean any threatened, pending or completed action, suit or
proceeding, or alternative dispute resolution mechanism, or any inquiry or investigation, whether
instituted by the Company or any other party (including, without limitation, in the right of the
Company.)

     b. “DGCL” shall mean the Delaware General Corporation Law, as amended from time to
time.

     c. “Enterprise” shall mean any enterprise other than the Company, including any
corporation, partnership, joint venture, limited liability company, trust, employee benefit plan or
other entity or enterprise.

     d. “Expenses” shall mean (i) all costs, expenses and obligations (including
attorneys’ fees and costs, the fees and costs of consultants and experts, and reasonable
out-of-pocket travel costs incurred by any of such persons or by Indemnitee), incurred in
connection with investigating, defending, being a witness in, being interviewed in connection with,
or participating in (including on appeal), or preparing to defend, to be a witness in, to be
interviewed by, or to participate in, any Claim relating to any Indemnifiable
Event, (ii) any judgment, fine, penalty or amount to be paid in settlement of any Claim
relating to an Indemnifiable Event, and (iii) any federal, state, local or foreign taxes imposed on
the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement.

     e. “Indemnifiable Event” shall mean any circumstance, event or occurrence related to
the fact that Indemnitee is or was a director or officer of the Company, or is or was serving at
the request of the Company as a director, officer, employee, trustee, agent or fiduciary of any
other Enterprise, or by reason of anything done or not done, or alleged to have been done or not
done, by Indemnitee in any such capacity.

     f. “Independent Legal Counsel” shall mean an attorney or firm of attorneys, selected
in accordance with the provisions of Section 3, who shall not have been retained by or otherwise
performed services for the Company or Indemnitee within the previous three years (other than with
respect to matters concerning the rights of Indemnitee under this Agreement, or of other
indemnities under similar indemnification agreements).

     g. “Reviewing Party” shall mean, as to any situation in which Indemnitee is an
officer or director at the time of the determination, (i) directors of the Company who are not
parties to the Claim or a committee of such directors designated by majority vote of such directors
(each of which shall make decisions by majority vote), (ii) if there are no such directors, or if
such directors so direct, by Independent Legal Counsel, or (iii) such other person(s) who may be
designated as provided by the DGCL. “Reviewing Party” shall mean, as to any situation in
which Indemnitee is not an officer or a director at the time of the determination, Independent
Legal Counsel.

23

 

     2. BASIC INDEMNIFICATION ARRANGEMENT.

     a. General Rules. Subject to the provisions of Section 8 hereof, in the event
Indemnitee was, is or becomes a party to or witness or other participant in, or is interviewed in
connection with, or is threatened to be make a party to or witness or other participant in, a Claim
by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee to the fullest extent authorized and permitted by law, the Company’s By-Laws and the
terms of this Agreement, as soon as practicable but in any event no later than thirty (30) days
after written demand is presented to the Company, against any and all Expenses.

     Notwithstanding the foregoing sentence, in no event shall Indemnitee be entitled to
indemnification pursuant to this Agreement for any liability finally adjudged by a court of
competent jurisdiction (and after the exhaustion or lapse of all rights of appeal) to have arisen
(x) under Section 16(b) of the Securities Exchange Act of 1934; (y) under federal or state
securities laws for actions or conduct specifically found to constitute “insider trading”, or (z)
from actions or conduct on the part of Indemnitee which is specifically found to constitute fraud
or bad faith, or to have created an unlawful personal benefit to Indemnitee; provided,
however, to the extent any of the foregoing conduct is raised as a defense to indemnification
of Indemnitee, such defense shall be permitted only as to Claims specifically and solely involving
the foregoing and to the extent the indemnification request also involves Claims or portions of
Claims not involving the foregoing or as to which the foregoing are only a part, the extent of
Indemnitee’s indemnification shall be governed by the provisions of Section 5 hereof.

     The Company shall advance all Expenses incurred by Indemnitee as soon as practicable but in
any event no later than five (5) business days after the Company is presented with a written demand
by Indemnitee for payment of such Expenses (an “Expense Advance”), subject only to the
reimbursement obligation of Indemnitee as provided in Section 2(b)(ii). Expenses incurred in
defending any proceeding shall be shall be advanced by the Company prior to the final disposition
of the proceeding. In submitting any invoice for such Expenses, Indemnitee shall not be required
to submit any information which Indemnitee has been advised by Indemnitee’s counsel could
reasonably be expected to result in the waiver of the attorney-client privilege or would constitute
attorney work product.

     b. Conditions. Notwithstanding the provisions of Section 2(a) hereof:

          (i) the obligations of the Company to indemnify Indemnitee pursuant to Section 2(a) hereof
shall be subject to the condition that the Reviewing Party shall have determined (in a written
opinion) which may be a so-called “reasoned opinion” in any case in which Independent Legal Counsel
is the Reviewing Party) that Indemnitee would be permitted to be indemnified under the DGCL, and
under the Company’s Certificate of Incorporation or By-Laws or this Agreement; and

          (ii) an Expense Advance to indemnitee pursuant to Section 2(a) hereof shall be subject to the
condition that, if, when and to the extent that the Reviewing Party is unable to determine that
Indemnitee would be permitted to be so indemnified under applicable law, or under the Company’s
Certificate of Incorporation or By-laws or this Agreement, the Company shall be entitled to
reimbursement by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts
theretofore paid. (If the Reviewing Party is Independent Legal Counsel, such inability to make
such determination shall be deemed to have occurred if Independent Legal

24

 

Counsel is unable to
provide a written opinion, which may be a so-called “reasoned opinion,” that Indemnitee would be
permitted to be so indemnified under applicable law, or under the Company’s Certificate of
Incorporation or By-laws or the Agreement.) Indemnitee’s obligation, if any, to reimburse the
Company for any Expense Advance shall be unsecured and no interest shall be charged on such
obligation, and the Expense Advance shall be made without any right of the Company to demand from
Indemnitee any information or assurances concerning Indemnitee’s ability to repay the Expense
Advance; but

          (iii) No determination under clause (i) above shall be required to the extent that Indemnitee
has been successful on the merits or otherwise in defense of any Claim or as to any issue or issues
arising in connection with such Claim.

     c. Judicial Review. If a Reviewing Party determines that Indemnitee substantively
would not be permitted to be indemnified in whole or in part under applicable law or if the
Reviewing Party does not make such determination within 30 days after Indmnitee requests that a
determination be made, Indemnitee shall have the right to commence litigation in any court of
competent jurisdiction and in which venue is proper seeking an initial determination by the court
or challenging any such determination by a Reviewing Party or any aspect thereof, including the
legal or factual bases therefor, and the Company hereby consents to service of process and to
appear in any such proceeding. If Indemnitee has commenced or thereafter commences legal
proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should
be indemnified under applicable law, any determination made by a Reviewing Party that Indemnitee
would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee
shall not be required to reimburse the Company for any Expense Advance until a final judicial
determination is made with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed).

     3. SELECTION OF INDEPENDENT LEGAL COUNSEL. If the Reviewing Party is Independent
Legal Counsel, then with respect to all matters concerning the rights of Indemnitee to indemnity
payments and Expense Advances under this Agreement, the Company’s Certificate of Incorporation or
By-laws or any other agreement now or hereafter in effect relating to Claims for Indemnifiable
Events, the Company shall seek legal advice only from Independent Legal Counsel selected by
Indemnitee and approved by the Company (which approval shall not be unreasonably withheld). If the
Reviewing Party is Independent Legal Counsel, then Independent Legal Counsel shall render its
written opinion (which may be a so-called “reasoned opinion”) to the Company and Indemnitee whether
and to what extent Indemnitee would be permitted to be indemnified under applicable law. The
Company agrees to pay the reasonable fees of such Independent Legal Counsel and to fully indemnify
such Independent Legal Counsel against any and all expenses (including attorneys’ fees), claims,
liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

     4. INDEMNIFICATION FOR ADDITIONAL EXPENSES. The Company shall indemnify Indemnitee
against any and all expenses (including attorneys’ fees and costs, the fees and costs of
consultants and experts, and reasonable out-of-pocket travel costs incurred by any of such persons
or by Indemnitee), and, if requested by Indemnitee, shall (within two (2) business days after such
request) advance such expenses to Indemnitee, which are incurred by Indemnitee in connection with
any action brought by Indemnitee (a) for indemnification or advance payment

25

 

of Expenses by the
Company under this Agreement, the Company’s Certificate of Incorporation or By-laws or any other
agreement now or hereafter in effect relating to Claims for Indemnifiable Events, and (b) for
recovery under any directors’ and officers’ liability insurance policies maintained by the Company,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification,
advance expense payment or insurance recovery, as the case may be.

     5. PARTIAL INDEMNITY, ETC. If Indemnitee is entitled under any provision of Delaware
law, the Company’s Certificate of Certificate or By-laws or this Agreement to indemnification by
the Company for some or a portion of the Expenses, judgments, fines, penalties and amounts
reasonably paid in settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses, judgments, fines, penalties or amounts
reasonably paid in settlement) of a Claim but not, however, for the total amount thereof, the
Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is
entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating
in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein,
including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses
incurred in connection therewith, but if such indemnification is specifically determined to be
unlawful, then Indemnitee shall be entitled to a fair apportionment of Expenses so that Indemnitee
receives indemnification to the maximum extent lawful.

     6. BURDEN OF PROOF. In connection with any determination by a Reviewing Party or
otherwise as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proof
shall be on the Company to establish that Indemnitee is not so entitled.

     7. PRESUMPTIONS. For purposes of this Agreement, the termination of any Claim,
action, suit or proceeding, by judgment, order or reasonable settlement (whether with or without
court approval), shall create a presumption that Indemnitee is entitled to indemnification with
respect to such Claim, action, suit or proceeding unless such judgment, order or settlement
specifically provides or establishes that Indemnitee did not meet any particular standard of
conduct or have any particular belief necessary to indemnification, or specifically states, in the
case of a judgment or court-approved settlement, that the court has determined that indemnification
is not permitted by applicable law. For purposes of this Agreement, the termination of any
criminal action or proceeding upon a plea of nolo contendere or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of conduct or have any particular
belief or that the court in such action or proceeding has determined that indemnification is not
permitted by applicable law. In addition, prior to the commencement of legal proceedings by
Indemnitee to secure a judicial determination that Indemnitee should be indemnified under
applicable law, neither the failure of a Reviewing Party to have make a determination as to whether
Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual
determination by a Reviewing Party that Indmenitee has not met such standard of conduct or did not
have such belief, shall be a defense to Indemnitee’s claim or create a presumption that Indemnitee
has not met any particular standard of conduct or did not have any particular belief.

26

 

     8. NOTIFICATION OF ACTION, ETC.: ASSUMPTION BY COMPANY OF CONDUCT OR DEFENSE OF SAME: 

     a. Notification. Promptly after receipt by Indemnitee or the Company, of any notice
or document respecting the commencement of any action, suit, proceeding, inquiry or investigation
which names, involves or may involve Indemnitee relating to any matter concerning which Indemnitee
may be entitled to indemnification or advancement of Expenses pursuant to the Agreement, the DGCL,
or the Certificate of Incorporation or By-laws of the Company, the party receiving such notice or
document will promptly notify the other of the receipt of same, but the failure on the part of
Indemnitee to so notify the Company will not relieve the Company from any obligation or liability
which it may have to Indemnitee for indemnification or advancement of Expenses pursuant to this
Agreement, the DGCL, the Certificate of Incorporation or By-laws of the Company.

     b. Expense Advance: Assumption of Conduct or Defense. With respect to any such
action, suit, proceeding, inquiry or investigation:

          (i) if Indemnitee intends to request an Expense Advance, Indemnitee will provide the Company
prior notice of Indemnitee’s intention to incur Expenses and seek an Expense Advance; and

          (ii) except as otherwise provided below, to the extent that it may deem desirable, the
Company, individually, or jointly with any other indemnifying party, may assume the conduct or
defense of such action, suit, proceeding, inquiry or investigation, but if the Company elects to
assume the conduct or defense thereof, it will notify Indemnitee of its choice of legal counsel and
offer Indemnitee an opportunity to discuss such choice of legal counsel with one of the Company’s
executive officers. After notice from the Company to Indemnitee of the Company’s election to
assume the conduct or defense thereof, the Company will not be liable to Indemnitee under this
Agreement for any legal fees or expenses of counsel or fees and costs of consultants or experts to
Indemnitee subsequently incurred by Indemnitee in connection with the defense thereof, other than
reasonable costs of investigation, except as otherwise approved by the Company or as provided below
in clauses (A) and (B) of this Section 8(b)(ii), and except that the Company will continue to be
liable to Indemnitee for other Expenses that do not constitute legal fees or expenses of counsel or
fees and costs of consultants and experts to Indemnitee. Upon the Company’s assumption of the
conduct or defense of such action, suit, proceeding, inquiry or investigation as provided herein,
Indemnitee shall have the right to employ counsel to represent Indemnitee in such action, suit,
proceeding, inquiry or investigation but the fees and expenses of such counsel incurred after the
Company’s assumption of the conduct or defense thereof shall be at the expense of Indemnitee unless
(A) counsel to Indemnitee has reasonably concluded that there is a material conflict of interest
between the Company and Indemnitee in the conduct or defense of such action, suit, proceeding,
inquiry or investigation, or(B) the Company has not in fact employed counsel in a timely manner to
assume the conduct or defense of such action, suit, proceeding, inquiry or investigation, or fails
at any time to diligently act in the conduct or defense of such action, suit, proceeding, inquiry
or investigation, in each of which cases the Expenses of Indemnitee shall be advanced or reimbursed
in accordance with the provisions of this Agreement on a going forward basis beginning on the date
that an event or circumstance described in (A) or (B) has occurred. The Company shall not settle
any action, suit, proceeding,

27

 

inquiry or investigation in any manner which would impose on
Indemnitee any penalty or limitation, financial or otherwise, or which does not result in an
unconditional release of Indemnitee from all claims arising in connection with such action, suit,
proceeding, inquiry or investigation, unless in any such case Indemnitee gives Indemnitee’s written consent, which
Indemnitee may withhold in Indmenitee’s discretion.

     9. NONEXCLUSIVITY, ETC. The rights of Indemnitee hereunder shall be in addition to
any other rights Indemnitee may have under the provisions of the Company’s Certificate of
Incorporation or By-laws, the DGCL, or otherwise. To the extent that a change in the DGCL (whether
by statute or judicial decision) permits greater indemnification by agreement than would be
afforded currently under the provisions of the Company’s Certificate of Incorporation or By-Laws
and the Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this
Agreement the greater benefits so afforded by such change. In the event of any change in DGCL
(whether by statute or judicial decision) which narrows the right of a Delaware corporation to
indemnify a member of its board of directors or an officer, employee, agent or fiduciary, such
change, to the extent not otherwise required by such law, statute or rule to be applied to this
Agreement, shall have no effect on this Agreement or the parties’ rights and obligations hereunder.
To the extent that there is a conflict between the Company’s Certificate of Incorporation or
By-Laws and the provisions of the Agreement, it is the desire of the parties hereto that such
conflict be resolved by affording Indemnitee the broadest indemnification permissible under
Delaware law, the Company’s Certification of Incorporation, the Company’s By-Laws or the provisions
of this Agreement. The indemnification provided under this Agreement shall continue as to
Indemnitee for any action taken or not taken while serving in an indemnified capacity even though
Indemnitee may have ceased to be an officer or director of the Company or to serve any capacity for
which an Indemnifiable Event may occur.

     10. LIABILITY INSURANCE. The Company agrees to maintain directors’ and officers’
liability insurance at levels as high as, with scopes of coverage as broad as, and with insurers as
well rated as that insurance maintained by the Company as of the date of this Agreement, for a
period of at least five years after Indemnitee ceases to be an officer or director of the Company.
To the extent the Company maintains any other insurance policy or policies providing directors’ and
officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in
accordance with its or their terms, to the maximum extent of the coverage available for any Company
director or officer, and such coverage shall continue for the benefit of Indemnitee after
Indemnitee ceases to be an officer or director of the Company or to serve in any other capacity for
which an Indemnifiable Event could occur. The Company will cause the insurer under any policy
described in this Section 10 to provide to Indemnitee a certificate to the effect that no
amendment, cancellation, termination, reduction in coverage, or other change in the policy will
become effective unless the insurer has given at least 30 days’ notice to Indemnitee.

     11. PERIOD OF LIMITATIONS. No legal action shall be brought by the Company, and no
cause of action shall be asserted by or in the right of the Company, against Indemnitee,
Indemnitee’s spouse, heirs, executors or personal or legal representatives after the expiration of
one year from the date such cause of action arises, and any claim or cause of action by or in the
right of the Company shall be extinguished and deemed released unless asserted by the timely filing
of a legal action within such one-year period, but if any shorter period of limitations is

28

 

otherwise applicable to any such cause of action, such shorter period shall govern. Indemnitee
shall not be prohibited from bringing an action against the Company under this Agreement by virtue
of any statute of limitations or by virtue of the doctrines of estoppel or laches, and the Company
waives all rights under any such statutes and doctrines.

     12. ATTRIBUTION OF OTHERS’ ACTIONS OR CONDUCT. In connection with determinations
respecting Indemnitee’s rights to indemnification and Expense Advances pursuant to Delaware law,
the Company’s Certificate or By-laws or this Agreement, or Indemnitee’s rights to any other
benefits conferred thereunder or hereunder, the actions or conduct of other persons, including
officers of the Company or other members of the Company’s Board of Directors, shall not be
attributed to Indemnitee absent specific proof that Indemnitee had actual knowledge of such actions
or conduct and specifically approved such actions or conduct in writing or at a properly called
meeting at which minutes of proceedings were kept and votes of participants recorded.

     13. AMENDMENTS, ETC. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

     14. SUBROGATION. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all necessary documents and take all necessary action to enable the Company to exercise
such rights.

     15 NO DUPLICATION OF PAYMENTS. The indemnification provisions of this Agreement do
not limit the right of Indemnitee to recover under any insurance policy maintained by the Company.
If, with respect to any Expenses, Indemnitee receives
an insurance policy indemnification payment which, together with any indemnification payment
made by the Company, exceeds the amount of the Expenses, then Indemnitee will promptly repay the
excess to the Company.

     16 BINDING EFFECT, ETC. This Agreement shall be binding upon and inure to the benefit
of and be enforceable by the parties hereto and their respective successors, assigns, including any
direct or indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company, spouses, heirs, executors and
personal and legal representatives. The Company shall require and cause any successor (whether
direct or indirect, and whether by purchase, merger, consolidation or otherwise) to all,
substantially all, or a substantial part, of the business or assets of the Company, by written
agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the Company would be required
to perform if no such succession had taken place. This Agreement shall continue in effect
regardless of whether Indemnitee continues to serve as an officer or director of the Company, or as
a director, officer, employee, trustee, agent or fiduciary of any other Enterprise at the Company’s
request.

29

 

     17. ATTORNEYS’ FEES. In the event that any action is instituted by Indemnitee under
this Agreement or under any liability insurance policies maintained by the Company to enforce or
interpret any of the terms hereof or thereof, Indemnitee shall be entitled to be paid all Expenses
incurred by Indemnitee with respect to such action, regardless of whether Indemnitee is ultimately
successful in such action, and shall be entitled to the advancement of Expenses with respect to
such action. In the event of an action instituted by or in the name of the Company under this
Agreement to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled
to be paid all Expenses incurred by Indemnitee in defense of such action (including cost and
expenses incurred with respect to Indemnitee’s counterclaims and cross-claims made in such action),
and shall be entitled to the advancement of Expenses with respect to such action.

     18. SEVERABLILITY.  The provisions of this Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable in any respect, and the validity and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired and shall
remain enforceable to the fullest extent permitted by law.

     19. GOVERNING LAW. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
in such State without giving effect to the principles of conflicts of laws.

     10. NOTICES. Any notice, request, demand, waiver or other communication required or
permitted to be given under this Agreement to any party will be in writing and will be deemed to
have been duly given only if delivered in person, or by first class, prepaid registered or
certified mail, or delivered by courier or, if receipt is confirmed, delivery by telecopier:

	 	 	 	 	 
	

	 	To the Company:
	 	StarTek, Inc.
	

	 	 	 	100 Garfield Street
	

	 	 	 	Denver, Colorado 80206
	

	 	 	 	Attention: President
	

	 	 	 	Telecopy: (303) 388-9970
	 
	 	 	 	 
	 	 	With a copy (which will not constitute notice) to:
	 
	 	 	 	 
	

	 	 	 	Faegre & Benson LLP
	

	 	 	 	3200 Wells Fargo Center
	

	 	 	 	1700 Lincoln Street
	

	 	 	 	Denver, Colorado 80203
	

	 	 	 	Attention: Blair L. Lockwood
	

	 	 	 	Telecopy: (303) 607-3600
	 
	 	 	 	 
	

	 	To Indemnitee:
	 	William E. Meade, Jr.
	

	 	 	 	5080 Barn Swallow Way
	

	 	 	 	Parker, Colorado 80134

30

 

     Any party may change the address to which notices are required to be sent by giving notice of
such change in the manner provided in this Section. All notices will be deemed to have been given
on the date of delivery which in the case of deliveries by telecopier will be the date of the
sender’s confirmation (or, if delivered after business hours, on the next business day in Denver,
Colorado).

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written
above.

	 	 	 	 	 	 	 
	 	 	STARTEK, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	 
	

	 	Name:
	 	 	 	Eugene L. McKenzie, Jr.
	

	 	Title:
	 	 	 	Executive Vice President and Chief
	

	 	 	 	 	 	Financial Officer
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE
	 
	 	 	 	 	 	 
	 	 	 
	 	 	William E. Meade, Jr.

31

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