Document:

Exhibit 4.10

 

 

 

ARCH CAPITAL GROUP (U.S.) INC.

as Issuer

 

 

ARCH CAPITAL GROUP LTD.,

as Guarantor

to

[NAME OF TRUSTEE],

Trustee

INDENTURE

 

Dated as of         , 200_

Senior Debt Securities

 

 

 

 

 

Reconciliation
and tie between Trust Indenture Act of 1939 and Indenture, dated as of         ,    
.. 

	
  Trust Indenture 

  Act Section

  	
   

  	
  Indenture
  Section

  	
   

  
	
  § 310(a)

  	
  609

  	
   

  
	
   

  	
  (b)

  	
  608, 610

  	
   

  
	
   

  	
  (c)

  	
  Not
  Applicable

  	
   

  
	
  § 311(a)

  	
  613

  	
   

  
	
   

  	
  (b)

  	
  613

  	
   

  
	
   

  	
  (c)

  	
  Not
  Applicable

  	
   

  
	
  § 312(a)

  	
  701, 702(a)

  	
   

  
	
   

  	
  (b)

  	
  702(b)

  	
   

  
	
   

  	
  (c)

  	
  702(c)

  	
   

  
	
  § 313(a)

  	
  703(a)

  	
   

  
	
   

  	
  (b)

  	
  703(b)

  	
   

  
	
   

  	
  (c)

  	
  703(b)

  	
   

  
	
   

  	
  (d)

  	
  703(c)

  	
   

  
	
  § 314(a)

  	
  704

  	
   

  
	
   

  	
  (b)

  	
  Not
  Applicable

  	
   

  
	
   

  	
  (c)

  	
  102

  	
   

  
	
   

  	
  (d)

  	
  Not
  Applicable

  	
   

  
	
   

  	
  (e)

  	
  102

  	
   

  
	
   

  	
  (f)

  	
  Not
  Applicable

  	
   

  
	
  § 315(a)

  	
  601

  	
   

  
	
   

  	
  (b)

  	
  602, 703(b)

  	
   

  
	
   

  	
  (c)

  	
  601(b)

  	
   

  
	
   

  	
  (d)

  	
  601(c)

  	
   

  
	
   

  	
  (e)

  	
  514

  	
   

  
	
  § 316(a)(1)

  	
  512, 513

  	
   

  
	
   

  	
  (b)

  	
  508

  	
   

  
	
   

  	
  (c)

  	
  104(d)

  	
   

  
	
  § 317(a)(1)

  	
  503

  	
   

  
	
   

  	
  (a)(2)

  	
  504

  	
   

  
	
   

  	
  (b)

  	
  1003

  	
   

  
	
  § 318(a)

  	
  107

  	
   

  
					

 

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

 

 

TABLE OF CONTENTS

Page

	
  ARTICLE
  ONE

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS

  
	
  OF GENERAL APPLICATION

  
	
   

  	
   

  	
   

  
	
  SECTION 101.

  	
  Definitions.

  	
  1

  
	
  SECTION 102.

  	
  Compliance
  Certificates and Opinions.

  	
  8

  
	
  SECTION 103.

  	
  Form of
  Documents Delivered to Trustee.

  	
  9

  
	
  SECTION 104.

  	
  Acts of Holders.

  	
  9

  
	
  SECTION 105.

  	
  Notices, Etc.,
  to Trustee and Company.

  	
  11

  
	
  SECTION 106.

  	
  Notice to
  Holders; Waiver.

  	
  11

  
	
  SECTION 107.

  	
  Conflict with
  Trust Indenture Act.

  	
  11

  
	
  SECTION 108.

  	
  Effect of
  Headings and Table of Contents.

  	
  12

  
	
  SECTION 109.

  	
  Successors and
  Assigns.

  	
  12

  
	
  SECTION 110.

  	
  Separability
  Clause.

  	
  12

  
	
  SECTION 111.

  	
  Benefits of
  Indenture.

  	
  12

  
	
  SECTION 112.

  	
  Governing Law.

  	
  12

  
	
  SECTION 113.

  	
  Legal Holidays.

  	
  12

  
	
  SECTION 114.

  	
  References to
  and Judgment Currency.

  	
  12

  
	
  SECTION 115.

  	
  No Security
  Interest Created.

  	
  13

  
	
  SECTION 116.

  	
  Limitation on
  Individual Liability.

  	
  13

  
	
  SECTION 117.

  	
  Submission to
  Jurisdiction.

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  	
   

  
	
  SECURITY FORMS

  
	
   

  	
   

  	
   

  
	
  SECTION 201.

  	
  Forms Generally.

  	
  15

  
	
  SECTION 202.

  	
  Form of
  Trustee’s Certificate of Authentication.

  	
  15

  
	
  SECTION 203.

  	
  Securities
  Issuable in the Form of a Global Security.

  	
  15

  
	
  SECTION 204.

  	
  Form of
  Guarantee.

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  	
   

  	
   

  
	
  THE SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 301.

  	
  Amount
  Unlimited; Issuable in Series.

  	
  19

  
	
  SECTION 302.

  	
  Denominations.

  	
  21

  
	
  SECTION 303.

  	
  Execution,
  Authentication, Delivery and Dating.

  	
  22

  
	
  SECTION 304.

  	
  Temporary
  Securities.

  	
  23

  
	
  SECTION 305.

  	
  Registration,
  Registration of Transfer and Exchange.

  	
  23

  
				

 

-i-

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities.

  	
  25

  
	
  SECTION 307.

  	
  Payment of Interest;
  Interest Rights Preserved.

  	
  25

  
	
  SECTION 308.

  	
  Persons Deemed
  Owners.

  	
  27

  
	
  SECTION 309.

  	
  Cancellation.

  	
  27

  
	
  SECTION 310.

  	
  Computation of
  Interest.

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  SECTION 401.

  	
  Satisfaction and
  Discharge of Indenture.

  	
  27

  
	
  SECTION 402.

  	
  Application of
  Trust Funds; Indemnification.

  	
  29

  
	
  SECTION 403.

  	
  Defeasance and
  Discharge of Indenture.

  	
  29

  
	
  SECTION 404.

  	
  Defeasance of
  Certain Obligations.

  	
  31

  
	
  SECTION 405.

  	
  Reinstatement

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  
	
   

  	
   

  	
   

  
	
  REMEDIES

  
	
   

  	
   

  	
   

  
	
  SECTION 501.

  	
  Events of
  Default.

  	
  33

  
	
  SECTION 502.

  	
  Acceleration of
  Maturity: Rescission and Annulment.

  	
  34

  
	
  SECTION 503.

  	
  Collection of Indebtedness and Suits for Enforcement by Trustee.

  	
  36

  
	
  SECTION 504.

  	
  Trustee May File
  Proofs of Claim.

  	
  36

  
	
  SECTION 505.

  	
  Trustee May Enforce Claims Without Possession of Securities.

  	
  37

  
	
  SECTION 506.

  	
  Application of
  Money Collected.

  	
  37

  
	
  SECTION 507.

  	
  Limitation on
  Suits.

  	
  38

  
	
  SECTION 508.

  	
  Unconditional Right of Holders to Receive Principal, Premium and
  Interest.

  	
  39

  
	
  SECTION 509.

  	
  Restoration of
  Rights and Remedies.

  	
  39

  
	
  SECTION 510.

  	
  Rights and
  Remedies Cumulative.

  	
  39

  
	
  SECTION 511.

  	
  Delay or
  Omission Not Waiver.

  	
  39

  
	
  SECTION 512.

  	
  Control by
  Holders.

  	
  40

  
	
  SECTION 513.

  	
  Waiver of Past
  Defaults.

  	
  40

  
	
  SECTION 514.

  	
  Undertaking for
  Costs.

  	
  40

  
	
  SECTION 515.

  	
  Waiver of Stay
  or Extension Laws.

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  
	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  
	
  SECTION 601.

  	
  Certain Duties
  and Responsibilities.

  	
  41

  
	
  SECTION 602.

  	
  Notice of
  Defaults.

  	
  42

  
				

 

-ii-

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 603.

  	
  Certain Rights of
  Trustee.

  	
  43

  
	
  SECTION 604.

  	
  Not Responsible
  for Recitals or Issuance of Securities.

  	
  44

  
	
  SECTION 605.

  	
  May Hold
  Securities.

  	
  44

  
	
  SECTION 606.

  	
  Money Held in
  Trust.

  	
  44

  
	
  SECTION 607.

  	
  Compensation and
  Reimbursement.

  	
  44

  
	
  SECTION 608.

  	
  Disqualification;
  Conflicting Interests.

  	
  45

  
	
  SECTION 609.

  	
  Corporate
  Trustee Required; Eligibility.

  	
  45

  
	
  SECTION 610.

  	
  Resignation and
  Removal; Appointment of Successor.

  	
  46

  
	
  SECTION 611.

  	
  Acceptance of
  Appointment by Successor.

  	
  47

  
	
  SECTION 612.

  	
  Merger, Conversion, Consolidation or Succession to Business.

  	
  48

  
	
  SECTION 613.

  	
  Preferential
  Collection of Claims Against Company.

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  
	
  HOLDERS’ LISTS AND REPORTS BY
  TRUSTEE AND COMPANY

  
	
   

  	
   

  	
   

  
	
  SECTION 701.

  	
  Company to Furnish Trustee Names and Addresses of Holders.

  	
  49

  
	
  SECTION 702.

  	
  Preservation of Information; Communications to Holders.

  	
  49

  
	
  SECTION 703.

  	
  Reports by
  Trustee.

  	
  51

  
	
  SECTION 704.

  	
  Reports by
  Guarantor.

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  
	
   

  	
   

  	
   

  
	
  SECTION 801.

  	
  When Company or Guarantor May Merge or Transfer Assets.

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  
	
  AMENDMENTS & SUPPLEMENTAL
  INDENTURES

  
	
   

  	
   

  	
   

  
	
  SECTION 901.

  	
  Amendments or Supplemental Indentures without Consent of Holders.

  	
  54

  
	
  SECTION 902.

  	
  Amendments or Supplemental Indentures with Consent of Holders.

  	
  55

  
	
  SECTION 903.

  	
  Execution of Supplemental
  Indentures.

  	
  56

  
	
  SECTION 904.

  	
  Effect of
  Supplemental Indentures.

  	
  57

  
	
  SECTION 905.

  	
  Conformity with
  Trust Indenture Act.

  	
  57

  
	
  SECTION 906.

  	
  Reference in
  Securities to Supplemental Indentures.

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  SECTION 1001.

  	
  Payment of
  Principal, Premium and Interest.

  	
  57

  
				

 

-iii-

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1002.

  	
  Maintenance of
  Office or Agency.

  	
  58

  
	
  SECTION 1003.

  	
  Money for
  Securities; Payments to Be Held in Trust.

  	
  58

  
	
  SECTION 1004.

  	
  Corporate
  Existence.

  	
  60

  
	
  SECTION 1005.

  	
  Maintenance of
  Properties.

  	
  60

  
	
  SECTION 1006.

  	
  Statement by
  Officers as to Default.

  	
  60

  
	
  SECTION 1007.

  	
  Waiver of
  Certain Covenants.

  	
  61

  
	
  SECTION 1008.

  	
  Ownership and
  Business of the Company.

  	
  61

  
	
  SECTION 1009.

  	
  Additional
  Amounts.

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  	
   

  	
   

  
	
  REDEMPTION OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 1101.

  	
  Applicability of
  Article.

  	
  63

  
	
  SECTION 1102.

  	
  Election to
  Redeem; Notice to Trustee.

  	
  63

  
	
  SECTION 1103.

  	
  Selection by
  Trustee of Securities to Be Redeemed.

  	
  63

  
	
  SECTION 1104.

  	
  Notice of Redemption.

  	
  64

  
	
  SECTION 1105.

  	
  Deposit of
  Redemption Price.

  	
  65

  
	
  SECTION 1106.

  	
  Securities
  Payable on Redemption Date.

  	
  65

  
	
  SECTION 1107.

  	
  Securities
  Redeemed in Part.

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  
	
   

  	
   

  	
   

  
	
  SINKING FUNDS

  
	
   

  	
   

  	
   

  
	
  SECTION 1201.

  	
  Applicability of
  Article.

  	
  66

  
	
  SECTION 1202.

  	
  Satisfaction of
  Sinking Fund Payments with Securities.

  	
  66

  
	
  SECTION 1203.

  	
  Redemption of
  Securities for Sinking Fund.

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN

  
	
   

  	
   

  	
   

  
	
  GUARANTEE OF SECURITIES

  
	
   

  	
   

  	
   

  
	
  SECTION 1301.

  	
  Unconditional
  Guarantee.

  	
  68

  
	
  SECTION 1302.

  	
  Execution and
  Delivery of Guarantee.

  	
  69

  
	
  SECTION 1303.

  	
  Obligations of
  the Guarantor Unconditional.

  	
  69

  
	
  SECTION 1304.

  	
  Waivers.

  	
  72

  
	
  SECTION 1305.

  	
  Amendment, Etc.

  	
  72

  
				

 

-iv-

 

INDENTURE,
dated as of        , 200_, among Arch
Capital Group (U.S.) Inc., a Delaware corporation (herein called the “Company”
or the “Issuer”), having its principal office at 20 Horseneck Lane, Greenwich,
CT 20380, Arch Capital Group Ltd., a Bermuda limited company (herein called the
“Guarantor”) and [Name of Trustee], a
[            ], as
trustee hereunder (herein called the “Trustee”).

RECITALS OF
THE COMPANY

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

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

The Guarantor,
directly or indirectly, owns beneficially 100% of the issued share capital of
the Company.

The Guarantor
has duly authorized the execution and delivery of this Indenture to provide for
the Guarantee of the Securities provided for herein.

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

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

For and in
consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders of the Securities or of series thereof, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101        Definitions.

 

For all
purposes of this Indenture, except as otherwise expressly provided or unless
the context otherwise requires:

(1)           the terms defined in
this article have the meanings assigned to them in this article and include the
plural as well as the singular;

 

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

(3)           all accounting terms
not otherwise defined herein have the meanings assigned to them in accordance
with generally accepted accounting principles in the United States, and, except
as otherwise herein expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted hereunder
shall mean such accounting principles as are generally accepted at the date of
such computation;

(4)           the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular article, section or other subdivision;
and

(5)           all references used
herein to the male gender shall include the female gender.

“Act,” when
used with respect to any Holder, has the meaning specified in Section 104.

“Additional
Amounts” means any amounts that are required under this Indenture to be paid by
the Holders by the Company or the Guarantor as described in Section 1009.

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

“Board of
Directors” means either the board of directors of the Company, the Guarantor or
any duly authorized committee of that board duly authorized to act hereunder.

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

“Business Day”
means, with respect to any Securities, any day other than a Saturday, Sunday or
other day in the City of New York or in any Place of Payment on which banking
institutions are authorized by law or regulation to close.

 

-2-

 

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

“Certificated
Securities” means Securities that are in registered definitive form.

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

“Common
Shares” means the common shares, $0.01 par value per share, of Arch Capital
Group Ltd. existing on the date of this Indenture or any other shares of
Capital Stock of Arch Capital Group Ltd. into which such common shares shall be
reclassified or changed.

“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
such successor corporation.

“Company
Request” or “Company Order” means a written request or order signed in the name
of the Company or the Guarantor, as the case may be, by its chairman of the
board, a vice chairman, its president or a vice president, and by its
treasurer, an assistant treasurer, its secretary or an assistant secretary, and
delivered to the Trustee.

“Corporate
Trust Office” means the office of the Trustee at which at any particular time
the trust created by this Indenture shall be administered, which office, at the
time of the execution of this Indenture, is located at
[          ].

“Defaulted
Interest” has the meaning specified in Section 307.

“Depositary”
means, unless otherwise specified by the Company pursuant to either Section 203
or 301, with respect to Securities of any series issuable or issued as a Global
Security, The Depository Trust Company, New York, New York, or any successor
thereto registered under the Securities Exchange Act of 1934, as amended, or
other applicable statute or regulation.

“Event of
Default” has the meaning specified in Section 501.

 

-3-

 

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

“Guarantee”
means the guarantee by the Guarantor pursuant to Article Thirteen applicable to
any Security which is authenticated and delivered pursuant to this Indenture,
which guarantee is endorsed on such Security by the Guarantor pursuant to
Article Thirteen.

“Guarantor”
means the Person named as the “Guarantor” in the first paragraph of this
Indenture until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Guarantor” shall mean
such successor Person.

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

“Holder
Action” has the meaning specified in Section 702(d).

“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more amendments or indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of particular series of Securities established as contemplated
by Section 301.

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

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

“Issuer” means
the Person named as the “Issuer” 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 “Issuer” shall mean such successor
corporation.

“Maturity,”
when used with respect to any Security, means the date on which the principal
of such Security or an installment of principal (including any Additional
Amounts or Redemption Price) becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption or otherwise.

“Officers’
Certificate” means a certificate signed by the chairman of the board, the
president or a vice president or a director, and by the treasurer, an assistant
treasurer, the 

 

-4-

 

secretary or
an assistant secretary, of the Company or the Guarantor, as the case may be,
and delivered to the Trustee.

“Opinion of
Counsel” means written opinion of counsel, who may be counsel for the Company
or the Guarantor, as the case may be, and who shall be acceptable to the
Trustee.

“Original
Issue Discount Security” means any Security which provides for an amount less
than the principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502.

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

(i)      Securities theretofore
cancelled by the Trustee or delivered to the Trustee for cancellation;

(ii)     Securities for whose
payment or redemption money or evidences of indebtedness in the necessary
amount has been theretofore deposited with the Trustee or any Paying Agent
(other than the Company or the Guarantor) in trust or set aside and segregated
in trust by the Company or the Guarantor (if the Company or the Guarantor shall
act as Paying Agent) for the Holders of such Securities; provided that,
if such Securities are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the Trustee
has been made; and

(iii)    Securities which have
been paid pursuant to Section 306 or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held
by a bona fide purchaser in whose hands such Securities are valid obligations
of the Company;

provided,
however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned
by the Company or any other obligor upon the Securities or any Affiliate of the
Company or the Guarantor or of such other obligor shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which the Trustee knows
to be so owned shall be so disregarded. 
Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other ob-

 

-5-

 

ligor upon the
Securities or any Affiliate of the Company or the Guarantor or of such other
obligor.  In case of a dispute as to
such right, any decision by the Trustee shall be full protection to the
Trustee.  Upon request of the Trustee,
the Company shall furnish to the Trustee promptly an Officers’ Certificate
listing and identifying all Securities, if any, known by the Company to be
owned or held by or for the account of any of the above-described persons; and,
subject to Section 601, the Trustee shall be entitled to accept such Officers’
Certificate as conclusive evidence of the facts therein set forth and of the
fact that all Securities not listed therein are Outstanding for the purposes of
any such determination.

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

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

“Place of
Payment,” when used with respect to the Securities of any series, means the
place or places where the principal of (and premium, if any) and interest on
the Securities of that series are payable as specified as contemplated by
Section 301.

“Predecessor
Security” of any particular Security means every previous Security evidencing
all or a portion of the same debt as that evidenced by such particular
Security; and, for the purposes of this definition, any Security authenticated
and delivered under Section 306 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security.

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

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

“Regular
Record Date” for the interest payable on any Interest Payment Date on the
Securities of any series means the date specified for that purpose as
contemplated by Section 301.

“Relevant
Date” means, in respect of any payment, the date on which such payment first
becomes due and payable, but if the full amount of the moneys payable has not
been received by the Trustee on or prior to such due date, it means the first
date on which, the full amount of such moneys having been so received and being
available for payment to Holders, notice to that effect shall have been duly
given to the Holders of the Securities.

 

-6-

 

“Responsible
Officer,” when used with respect to the Trustee, means any officer of the
Trustee assigned by the Trustee to administer its corporate trust matters.

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

“Security
Register” and “Security Registrar” have the respective meanings specified in
Section 305.

“Special
Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 307.

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

“Subsidiary”
means, with respect to any Person:

(1)                                  any
corporation or company a majority of whose Capital Stock with voting power,
under ordinary circumstances, to elect directors is, at the date of
determination, directly or indirectly, owned by such Person (a “subsidiary”),
by one or more subsidiaries of such Person or by such Person and one or more subsidiaries
of such Person;

(2)                                  a
partnership in which such Person or a subsidiary of such Person is, at the date
of determination, a general partner of such partnership; or

(3)                                  any
partnership, limited liability company or other Person in which such Person, a
subsidiary of such Person or such Person and one or more subsidiaries of such
Person, directly or indirectly, at the date of determination, have (x) at
least a majority ownership interest or (y) the power to elect or appoint
or direct the election or appointment of the managing partner or member of such
Person or, if applicable, a majority of the directors or other governing body
of such Person.

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

 

-7-

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939 as amended and in force at
the date as of which this instrument was executed, except as provided in Section
905.

“UCC” means
the Uniform Commercial Code as in effect on the date hereof in the State of New
York.

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

SECTION 102.       Compliance Certificates and Opinions.

 

Upon any
application or request by the Company or the Guarantor to the Trustee to take
any action under any provision of this Indenture, the Company or the Guarantor,
as the case may be, shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and, where appropriate
as to matters of law, an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate
or opinion need be furnished.

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

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

 

-8-

 

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

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

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

SECTION 103.       Form of Documents Delivered to Trustee.

 

In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

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

Where any
Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument.

SECTION 104.       Acts of Holders.

 

(a)           Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by an agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments 

 

-9-

 

are delivered
to the Trustee and, where it is hereby expressly required, to the Company or
the Guarantor.  Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 601) conclusive in
favor of the Trustee and the Company or the Guarantor, if made in the manner
provided in this section.

(b)           The fact and date of
the execution of any such instrument or writing, or the authority of the Person
executing the same, may be proved in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in any reasonable manner
which the Trustee deems sufficient.

(c)           The ownership of Securities
shall be proved by the Security Register.

(d)           If the Company or
the Guarantor shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company or the Guarantor
may, at its option, by or pursuant to a Board Resolution, fix in advance a
record date for the determination of Holders entitled to give such request,
demand, authorization, direction, notice, consent, waiver or other Act, but the
Company or the Guarantor shall have no obligation to do so.  Notwithstanding Trust Indenture Act Section
316(c), such record date shall be the record date specified in or pursuant to
such Board Resolution, which shall be a date not earlier than the date 30 days
prior to the first solicitation of Holders generally in connection therewith
and not later than the date such solicitation is completed.  If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other Act
maybe given before or after such record date, but only the Holders of record at
the close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
Outstanding Securities shall be computed as of such record date; provided,
however, that no such authorization, agreement or consent by such
Holders on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than eleven months after
the record date.

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

 

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SECTION 105.       Notices, Etc., to Trustee and Company.

 

Any request,
demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given
or furnished to, or filed with,

(1)           the Trustee by any
Holder or by the Company or the Guarantor shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee
at its Corporate Trust Office, Attention: 
[          ], or

(2)           the Company or the
Guarantor by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and
mailed, first-class postage prepaid, to the Company addressed to it at the
address of its principal office specified in the first paragraph of this
instrument (or, if to the Guarantor, to Arch Capital Group Ltd., Wessex House,
45 Reid Street, Hamilton HM 12, Bermuda Attn: 
Secretary) or at any other address previously furnished in writing to
the Trustee by the Company or the Guarantor for such purpose.

SECTION 106.       Notice to Holders; Waiver.

 

Where this
Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder affected by such event,
at his address as it appears in the Security Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice.  In any case where
notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect
the sufficiency of such notice with respect to other Holders.  Where this Indenture provides for notice in
any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice.  Waivers
of notice by Holders shall be filed with the Trustee, but such filing shall not
be a condition precedent to the validity of any action taken in reliance upon
such waiver.

In case by
reason of the suspension of regular mail service or by reason of any other case
it shall be impracticable to give such notice by mail, then such notification
as shall be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

SECTION 107.       Conflict with Trust Indenture Act.

 

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

 

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SECTION 108.       Effect of Headings and Table of
Contents.

 

The article
and section headings herein and the table of contents are for convenience only
and shall not affect the construction hereof.

SECTION 109.       Successors and Assigns.

 

All covenants
and agreements in this Indenture by each of the Company or the Guarantor shall
bind its successors and assigns, whether so expressed or not.

SECTION 110.       Separability Clause.

 

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

SECTION 111.       Benefits of Indenture.

 

Nothing in
this Indenture, the Securities or the Guarantee, express or implied, shall give
to any Person, other than the parties hereto and their successors hereunder and
the Holders, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

SECTION 112.       Governing Law.

 

This
Indenture, the Securities and the Guarantee shall be governed by and construed
in accordance with the laws of the State of New York.

SECTION 113.       Legal Holidays.

 

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

SECTION 114.       References to and Judgment Currency.

 

All references
in this Indenture to “dollars” or “$” are to the currency of the United States
of America.  Each of the Company and the
Guarantor agrees, to the fullest extent that it may effectively do so under
applicable law, that (a) if for the purpose of obtaining judgment in any court
it is necessary to convert the sum due in respect of the principal of, or 

 

-12-

 

premium or
interest, if any, or Additional Amounts on the Securities (the “Required Currency”)
into a currency in which a judgment will be rendered (the “Judgment Currency”),
the rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
requisite amount of the Required Currency with the Judgment Currency on the New
York Banking Day preceding the day on which a final unappealable judgment is
given and (b) its obligations under this Indenture to make payments in the
Required Currency (i) shall not be discharged or satisfied by any tender, or
any recovery pursuant to any judgment (whether or not entered in accordance
with clause (a)), in any currency other than the Required Currency, except to
the extent that such tender or recovery shall result in the actual receipt, by
the payee, of the full amount of the Required Currency expressed to be payable
in respect of such payments, (ii) shall be enforceable as an alternative or
additional cause of action for the purpose of recovering in the Required
Currency the amount, if any, by which such actual receipt shall fall short of
the full amount of the Required Currency so expressed to be payable and (iii)
shall not be affected by judgment being obtained for any other sum due under
this Indenture. For purposes of the foregoing, “New York Banking Day” means any
day except a Saturday, Sunday or a legal holiday in The City of New York or a
day on which banking institutions in The City of New York are authorized or
obligated by law, regulation or executive order to be closed.

SECTION 115.       No Security Interest Created.

 

Nothing in
this Indenture or in the Securities, express or implied, shall be construed to
constitute a security interest under the UCC or similar legislation, as now or
hereafter enacted and in effect in any jurisdiction where property of the
Company, the Guarantor or its Subsidiaries is or may be located.

SECTION 116.       Limitation on Individual Liability.

 

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

 

-13-

 

the creation
of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any
Security or implied therefrom, are hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issuance of such Security.

SECTION 117.       Submission to Jurisdiction.

 

The Company,
the Guarantor and the Trustee agree that any legal suit, action or proceeding
arising out of or relating to this Indenture, and each of the Company and the
Guarantor agrees that any legal suit, action or proceeding arising out of or
relating to the Securities or the Guarantee, may be instituted in any federal
or state court in the Borough of Manhattan, The City of New York, waives any
objection which it may now or hereafter have to the laying of the venue of any
such legal suit, action or proceeding, waives any immunity from jurisdiction or
to service of process in respect of any such suit, action or proceeding, and
irrevocably submits to the jurisdiction of any such court in any such suit,
action or proceeding.  Each of the
Company, the Trustee and the Guarantor further submits to the jurisdiction of
the courts of its own corporate domicile in any legal suit, action or
proceeding arising out of or relating to this Indenture, the Securities or the
Guarantee.  The Company hereby designates
and appoints CT Corporation Trust Company, 1209 Orange Street, Wilmington, DE
19801 and the Guarantor hereby designates and appoints National Registered
Agents, Inc., 440 9th Avenue, 3rd Floor, New York, New York 10001 as their
authorized agents upon which process may be served in any legal suit, action or
proceeding arising out of or relating to this Indenture, the Securities or the
Guarantee which may be instituted in any federal or state court in the Borough
of Manhattan, The City of New York, New York, and agrees that service of
process upon each such agent, and written notice of said service to the Company
or the Guarantor by the Person serving the same, shall be deemed in every
respect effective service of process upon the Company (if such notice is given
to the Company) or upon the Guarantor (if such notice is given to the
Guarantor) in any such suit, action or proceeding and further designates its
domicile, the domicile of each of CT Corporation Trust Company and National
Registered Agents, Inc. specified above and any domicile each of CT Corporation
Trust Company and National Registered Agents, Inc. may have in the future as
its domicile to receive any notice hereunder (including service of
process).  If for any reason CT
Corporation Trust Company or National Registered Agents, Inc. (or any successor
agents for this purpose) shall cease to act as agent for service of process as
provided above, each of the Company and the Guarantor will promptly appoint a
successor agent for this purpose reasonably acceptable to the Trustee.  Each of the Company and the Guarantor agrees
to take any and all actions as may be necessary to maintain such designation
and appointment of such agents in full force and effect.

 

-14-

 

ARTICLE TWO

SECURITY FORMS

SECTION 201.       Forms Generally.

 

The Securities
of each series shall be in substantially the forms established in one or more
indentures supplemental hereto or approved from time to time by or pursuant to
a Board Resolution in accordance with Section 301, in each case with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture and any indenture supplemental hereto,
and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with the
rules of any securities exchange or securities regulatory authority or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of the Securities.  If the form of Securities of any series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the secretary or an assistant secretary of each of
the Company and the Guarantor and delivered to the Trustee at or prior to the
delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities.

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

SECTION 202.       Form of Trustee’s Certificate of
Authentication.

 

The Trustee’s
certificate of authentication required by this article shall be in
substantially the form set forth below.

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

	
  [NAME OF TRUSTEE],

  
	
  as Trustee

  
	
   

  
	
   

  
	
  By

  	
   

  
	
  Authorized
  Signatory”

  

 

SECTION 203.       Securities Issuable in the Form of a
Global Security.

 

(a)           If the Issuer shall
establish pursuant to Sections 201 and 301 that the Securities of a particular
series are to be issued in whole or in part in the form of one or more 

 

-15-

 

Global
Securities, then the Issuer (along with an executed Guarantee endorsed thereon)
shall execute and the Trustee shall, in accordance with Section 303 and the
Company Order delivered to the Trustee thereunder, authenticate and deliver,
such Global Security or Securities (including the Guarantees thereon), which
(i) shall represent, and shall be denominated in an amount equal to the
aggregate principal amount of, the Outstanding Securities of such series to be
represented by such Global Security or Securities, (ii) shall be
registered in the name of the Depositary for such Global Security or Securities
or its nominee, (iii) shall be delivered by the Trustee to the Depositary
or its custodian or pursuant to the Depositary’s instruction and
(iv) shall bear a legend substantially to the following effect: “UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES
REPRESENTED HEREBY, THIS GLOBAL SECURITY (AND THE RELATED GUARANTEE) MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE (I) BY THE DEPOSITARY TO A NOMINEE OF
THE  DEPOSITARY OR (II) BY A
NOMINEE OF THE DEPOSITARY OR THE DEPOSITARY TO A SUCCESSOR DEPOSITARY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
ISSUER AND THE GUARANTOR OR THEIR AGENTS FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

(b)           Notwithstanding any
other provision of this section or of Section 305, unless the terms of a Global
Security expressly permit such Global Security to be exchanged in whole or in
part for individual Securities, a Global Security may be transferred, in whole
but not in part and in the manner provided in Section 305, only to another
nominee of the Depositary for such Global Security, or to a successor
Depositary for such Global Security selected or approved by the Issuer or to a
nominee of such successor Depositary.

(c)           (i)  If at any time the Depositary for a Global
Security notifies the Issuer that it is unwilling or unable to continue as
Depositary for such Global Security or if at any time the Depositary for the
Securities for such series shall no longer be eligible or in good standing
under the Securities Exchange Act of 1934, as amended, or other applicable
statute or regulation, the Issuer shall appoint a successor Depositary with
respect to such Global Security.  If a
successor Depositary for such Global Security is not appointed by the Issuer
within 90 days after the Issuer receives such notice or becomes aware of such
ineligibility, the Issuer will execute a Company Order for the authentication
and delivery of individual Securities of such series in exchange for such
Global Security, and the Trustee, upon receipt of such Company Order, will
authenticate and deliver individual Securities of such series of like tenor 

 

-16-

 

and terms in
definitive form in an aggregate principal amount equal to the principal amount
of the Global Security in exchange for such Global Security and the Guarantor
shall execute Guarantees thereon.

(ii)     If an Event of Default
shall have occurred and be continuing or an event shall have occurred which
with the giving of notice or lapse of time or both, would constitute an Event
of Default with respect to the Securities represented by such Global Security,
the Issuer will execute a Company Order for the authentication and delivery of
individual Securities of such series in exchange for such Global Security and
the Trustee, upon receipt of such Company Order, will authenticate and deliver
individual Securities of such series of like tenor and terms in definitive form
in an aggregate principal amount equal to the principal amount of the Global
Security in exchange for such Global Security and the Guarantor shall execute
Guarantees thereon.

(iii)    The Issuer may at any
time and in its sole discretion determine that the Securities of any series
issued or issuable in the form of one or more Global Securities shall no longer
be represented by such Global Security or Securities.  In such event the Issuer will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of individual
Securities of such series in exchange in whole or in part for such Global
Security, will authenticate and deliver individual Securities of such series of
like tenor and terms in definitive form in an aggregate principal amount equal
to the principal amount of such Global Security or Securities representing such
series to be so exchanged for such Global Security or Securities and the
Guarantor shall execute Guarantees thereon.

(iv)    If specified by the Issuer
pursuant to Section 301 with respect to Securities issued or issuable in the
form of a Global Security, the Depositary for such Global Security may
surrender such Global Security in exchange in whole or in part for individual
Securities of such series of like tenor and terms in definitive form on such
terms as are acceptable to the Issuer and such Depositary.  Thereupon the Issuer shall execute, the
Guarantor shall execute Guarantees on and the Trustee shall authenticate and
deliver, without service charge, (1) to each Person specified by such
Depositary a new Security or Securities of the same series of like tenor and
terms and of any authorized denomination of $1,000 and any integral multiple
thereof as requested by such Person in aggregate principal amount equal to and
in exchange for such Person’s beneficial interest in the Global Security; and
(2) to such Depositary a new Global Security of like tenor and terms and in a
denomination equal to the difference, if any, between the principal amount of
the surrendered Global Security and the aggregate principal amount of Securities
delivered to Holders thereof.

(v)     In any exchange provided
for in any of the preceding four paragraphs, the Issuer will execute, the
Guarantor shall execute Guarantees on and the Trustee will authenticate and
deliver individual Securities in definitive registered form in authorized
denominations of $1,000 and any integral multiple thereof.  Upon the exchange of a Global Se-

 

-17-

 

curity for
individual Securities, such Global Security shall be cancelled by the
Trustee.  Securities issued in exchange
for a Global Security pursuant to this section shall be registered in such
names and in such authorized denominations as the Depositary for such Global
Security, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee. 
The Trustee shall deliver such Securities to the persons in whose names
such Securities are so registered.

SECTION 204.       Form of Guarantee.

 

The form of
Guarantee shall be set forth on the Securities as follows:

For value received, Arch Capital Group Ltd.
hereby unconditionally and irrevocably guarantees on an unsecured, unsubordinated
basis to the holder of this Security the payment of principal of, premium, if
any, on, interest on, and Additional Amounts, if any, in respect of the
Security upon which this Guarantee is endorsed in the amounts and at the times
when due and payable whether by declaration thereof, or otherwise, and interest
on the overdue principal, premium, if any, Additional Amounts, if any, and
interest of such Security, if lawful, and the payment or performance of all
other obligations of the Company under the Indenture or the Securities, to the
holder of such Security and the Trustee, all in accordance with and subject to
the terms and limitations of such Security and Article Thirteen of the
Indenture.  This Guarantee will not
become effective until the Trustee duly executes the certificate of
authentication on this Security.  This
Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.

Dated:

	
  ARCH CAPITAL GROUP LTD.

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

-18-

 

ARTICLE THREE

THE SECURITIES

SECTION 301.       Amount Unlimited; Issuable in Series.

 

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

The Securities
may be issued in one or more series. 
There shall be established in or pursuant to a Board Resolution of each
of the Company and the Guarantor and set forth in a certificate signed by the
chairman of the board, the president, a vice president, a director, the
treasurer, an assistant treasurer, the secretary or assistant secretary of each
of the Company and the Guarantor, or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series,

(1)           any limit upon the
aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Sections 203,
304, 305, 306, 906 or 1107);

(2)           the issue price,
expressed as a percentage of the aggregate principal amount;

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

(4)           the rate or rates at
which the Securities of the series shall bear interest, if any, the date or
dates from which such interest shall accrue, the Interest Payment Dates on
which such interest shall be payable and the Regular Record Date for the
interest payable on the Interest Payment Date;

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

(6)           the period of
periods within which, the price or prices or ratios at which and the terms and
conditions upon which Securities of the series may be redeemed, converted or
exchanged, in whole or in part;

 

-19-

 

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

(8)           if other than the
full principal amount, the portion of the principal amount of Debt Securities
of the series which will be payable upon declaration of acceleration or
provable in bankruptcy;

(9)           any events of
default not set forth in this Indenture;

(10)         the currency or
currencies, including composite currencies, in which payment of the principal
of (and premium, if any) and interest, if any, on such Securities shall be
payable (if other than the currency of the United States of America), which
unless otherwise specified shall be the currency of the United States of
America as at the time of payment is legal tender for payment of public or
private debts;

(11)         if the principal of
(and premium, if any) or interest, if any, on such Securities is to be payable,
at the election of the Company or any Holder thereof, in a coin or currency
other than that in which such Securities are stated to be payable, then the
period or periods within which, and the terms and conditions upon which, such
election may be made;

(12)         whether interest will
be payable in cash or additional Securities at the Company’s or the Holders’
option and the terms and conditions upon which the election may be made;

(13)         if such Securities
are to be denominated in a currency or currencies, including composite currencies,
other than the currency of the United States of America, the equivalent price
in the currency of the United States of America for purposes of determining the
voting rights of Holders of such Securities as Outstanding Securities under
this Indenture;

(14)         if the amount of
payments of principal of (and premium, if any), or portions thereof, or interest,
if any, on such Securities may be determined with reference to an index,
formula or other method based on a coin or currency other than that in which
such Securities are stated to be payable, the manner in which such amounts
shall be determined;

(15)         any restrictive
covenants or other material terms relating to the offered debt securities,
which covenants and terms shall not be inconsistent with the provisions of this
Indenture;

(16)         whether the
Securities of the series shall be issued in whole or in part in the form of a
Global Security or Securities; the terms and conditions, if any, upon 

 

-20-

 

which such Global Security or Securities may be exchanged in whole or
in part for other individual Securities; and the Depositary for such Global
Security or Securities;

(17)         any listing of such
Securities on any securities exchange;

(18)         additional or
alternative provisions, if any, related to defeasance and discharge of the
offered debt securities;

(19)         the applicability of
the Guarantee or any other guarantees;

(20)         if convertible into
Common Shares, the terms on which such Securities are convertible, including
the initial conversion price, the conversion period, any events requiring an
adjustment of the applicable conversion price and any requirements relating to
the reservation of such Common Shares for purposes of conversion;

(21)         provisions, if any,
granting special rights to the Holders of Securities of the series upon the
occurrence of such events as may be specified;

(22)         each initial Place of
Payment; and

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

All Securities
of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to such Board Resolution
and set forth in such officers’ certificate, as described above, or in any such
indenture supplemental hereto.

If any of the
terms of the Securities of any series are established by action taken pursuant
to a Board Resolution as set forth above, a copy of an appropriate record of
such action shall be certified by the secretary or an assistant secretary of
the Company and of the Guarantor and delivered to the Trustee at or prior to
the delivery of the officers’ certificate setting forth the terms of the
Securities of any series (any one person may sign both such copy in his
capacity as secretary or assistant secretary and such officer’s certificate in
his capacity as an officer).

SECTION 302.       Denominations.

 

The Securities
of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 301.  In the absence of any such provisions with
respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 and any integral multiple thereof.

 

-21-

 

SECTION 303.       Execution, Authentication, Delivery
and Dating.

 

The Securities
shall be executed on behalf of the Company by two persons who shall be either
officers or directors of the Company duly authorized by the Company (by all
requisite corporate actions).  The
signatures of such authorized persons on the Securities may be manual or
facsimile.

Securities
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall bind the Company, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

At any time
and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the
Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities.  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 Sections 201 and 301, or by one or more indentures
supplemental hereto as provided by Section 901, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion
of Counsel from the Company stating

(a)           that such form has
been established in conformity with the provisions of this Indenture;

(b)           that such terms have
been established in conformity with the provisions of this Indenture;

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

(d)           that all laws and
requirements in respect of the execution and delivery by the Company of the
Securities have been complied with; and

(e)           such other matters
as the Trustee may reasonably request.

 

-22-

 

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

Each Security
shall be dated the date of its authentication unless otherwise provided by the
terms established and contemplated by Section 301.

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

SECTION 304.       Temporary Securities.

 

Pending the
preparation of definitive Securities of any series, the Company may execute,
and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.

If temporary
Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay.  After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Company in a
Place of Payment for that series, without charge to the Holder.  Upon surrender for cancellation of any one
or more temporary Securities of any series the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of the same series of authorized denominations
and the Guarantor shall execute Guarantees thereon.  Until so exchanged the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series.

SECTION 305.       Registration, Registration of Transfer
and Exchange.

 

The Company
shall cause to be kept at one of its offices or agencies maintained pursuant to
Section 1002 or at the Corporate Trust Office of the Trustee a register (the
register maintained in such office and in any other office or agency of the
Company in a Place of Payment being herein sometimes collectively referred to
as the “Security Register”) in 

 

-23-

 

which, subject
to Section 203 and to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities and of transfers of
Securities.  The Trustee initially is
hereby appointed “Security Registrar” for the purpose of registering Securities
and transfers of Securities as herein provided.  The Company may act as Security Registrar and may change or
appoint a Security Registrar without prior notice to Holders or to the Trustee.

Subject to
Section 203, upon surrender for registration of transfer of any Security of any
series at the office or agency in a Place of Payment for that series, the
Company shall execute, the Guarantor shall execute Guarantees on and the
Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities of the same series, of
any authorized denominations and of a like aggregate principal amount and
tenor.  In the case of a transfer of
part of any Security, the Company shall execute, the Guarantor shall execute
Guarantees on, and the Trustee shall authenticate and deliver, one or more new
Securities of the same series in the name of the designated transferee or
transferees, in respect of the part transferred, and one or more new Securities
of the same series, in respect of the balance of the old Security not
transferred, in the name of the transferor.

Subject to
Section 203, at the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor, upon
surrender of the Securities to be exchanged at such office or agency.  Whenever any Securities are so surrendered
for exchange, the Company shall execute, the Guarantor shall execute Guarantees
on and the Trustee shall authenticate and deliver, the Securities which the
Holder making the exchange is entitled to receive.

Subject to
Section 203, all Securities issued upon any registration or transfer or
exchange of Securities and the Guarantees thereon shall be valid obligations of
the Company and the Guarantor, respectively, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

Every Security
presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed, by the Holder thereof or his attorney duly
authorized in writing.

No service
charge shall be made for any registration of transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Securities, other than exchanges
pursuant to Section 203, 304, 906 or 1107 not involving any transfer.

 

-24-

 

The Company
shall not be required (i) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business
15 days before the day of the mailing of a notice of redemption of Securities
of that series selected for redemption (under Section 1103) and ending at the
close of business on the day of such mailing, or (ii) to register the transfer
of or exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

SECTION 306.       Mutilated, Destroyed, Lost and Stolen
Securities.

 

If there shall
be delivered to the Company, the Guarantor and the Trustee (i)(A) any mutilated
Security or (B) evidence to their satisfaction of the destruction, loss or
theft of any Security and (ii) such security or indemnity as may be required by
them to hold each of them and any agent of either of them harmless, then, in
the absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company and the Guarantor, if
applicable, shall execute and upon its request the Trustee shall authenticate
and deliver, in lieu of any such destroyed, lost or stolen Security or in
exchange for such mutilated Security, a new Security of the same series and of
like tenor and principal amount and bearing a number not contemporaneously outstanding.

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

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

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

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

SECTION 307.       Payment of Interest; Interest Rights
Preserved.

 

Interest on
any Security which is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name that Secu-

 

-25-

 

rity (or one
or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest.

Any interest
on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the relevant
Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company or the Guarantor, at its election in each
case, as provided in clause (1) or (2) below:

(1)           The Company or the
Guarantor may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed in the
following manner.  The Company or the
Guarantor shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Security of such series and the date of
the proposed payment, and at the same time the Company or the Guarantor shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment.  The
Trustee shall promptly notify the Company and the Guarantor of such Special
Record Date and, in the name and at the expense of the Company or the
Guarantor, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Securities of such series at his address as it appears
in the Security Register, not less than 10 days prior to such Special Record
Date.  Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are registered
at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2).

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

 

-26-

 

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

SECTION 308.       Persons Deemed Owners.

 

Subject to
Section 203, the Company, the Guarantor, the Trustee and any agent of the
Company, the Guarantor or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of receiving
payment of principal of (and premium, if any) and (subject to Section 307)
interest on such Security and for all other purposes whatsoever, whether or not
such Security be overdue, and none of the Company, the Guarantor, the Trustee
or any agent of the Company, the Guarantor or the Trustee shall be affected by
notice to the contrary.

SECTION 309.       Cancellation.

 

All Securities
surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee and shall be promptly
cancelled by it.  The Company or the
Guarantor may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company or the
Guarantor may have acquired in any manner whatsoever, and all Securities so
delivered shall be promptly cancelled by the Trustee.  No Securities shall be authenticated in lieu of or in exchange
for any Securities cancelled as provided in this section, except as expressly
permitted by this Indenture.  The Trustee
shall destroy cancelled Securities and deliver a certificate of such
destruction to the Company or the Guarantor.

SECTION 310.       Computation of Interest.

 

Except as
otherwise specified as contemplated by Section 301 for the Securities of any
series, interest on the Securities of each series shall be computed on the
basis of a year of 12 30-day months.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401.       Satisfaction and Discharge of
Indenture.

 

This Indenture
shall upon Company Request from the Company and the Guarantor cease to be of
further effect with respect to any series of Securities (except as to (i) any
surviving rights of registration of transfer or exchange of Securities herein
expressly provided 

 

-27-

 

for, (ii)
rights hereunder of Holders to receive payments of principal of, and premium,
if any, and interest on, Securities, and other rights, duties and obligations
of the Holders as beneficiaries hereof with respect to the amounts, if any, so
deposited with the Trustee, (iii) remaining obligations of the Company to make
mandatory sinking fund payments and (iv) the rights, obligations and
immunities of the Trustee hereunder), and the Trustee, at the expense of the
Company or the Guarantor, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture with respect to any series of
Securities, when

(1)           either

(A)          all Securities of
such series theretofore authenticated and delivered (other than (i) Securities
of such series which have been mutilated, destroyed, lost or stolen and which
have been replaced or paid as provided in Section 306 and (ii) Securities of
such series for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company or the Guarantor and thereafter
repaid to the Company or the Guarantor or discharged from such trust, as
provided in Section 1003) have been delivered to the Trustee for cancellation;
or

(B)           all such Securities
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 or the Guarantor,

and the Company or the Guarantor, in the case
of (i), (ii) or (iii) above, has deposited or caused to be deposited with the
Trustee as trust funds in trust for the purpose an amount in cash sufficient to
pay and discharge the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for principal (and premium, if any)
and interest to the date of such deposit (in the case of Securities which have
become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;

(2)           if all series of
Securities are being discharged, the Company or the Guarantor has paid or
caused to be paid all other sums payable hereunder by the Company or the
Guarantor; and

 

-28-

 

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

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company and the Guarantor to the Trustee under Section 607, and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this section, the obligations of the Trustee under Section 402 and the next to
last paragraph of Section 1003, shall survive.

SECTION 402.       Application of Trust Funds;
Indemnification.

 

(a)           Subject to the
provisions of the next to last paragraph of Section 1003, all money and U.S.
Government Obligations deposited with the Trustee pursuant to Section 401, all
money and U.S. Government Obligations deposited with the Trustee pursuant to
Section 401, 403 or 404 and all money received by the Trustee in respect of
U.S. Government Obligations deposited with the Trustee pursuant to Section 403
or 404 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company or the Guarantor
acting as Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium, if any) and interest for whose payment
such money has been deposited with or received by the Trustee or to make
mandatory sinking fund payments or analogous payments as contemplated by
Section 401, 403 or 404, but such money need not be segregated from other funds
except to the extent required by law.

(b)           The Company or the
Guarantor shall pay and shall indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against U.S. Government Obligations deposited
pursuant to Section 401, 403 or 404, or the interest and principal received in
respect of such obligations other than any payable by or on behalf of Holders.

(c)           The Trustee shall
deliver or pay to the Company or the Guarantor from time to time upon Company
Request from the Company or the Guarantor, as the case may be, any U.S. Government
Obligations or money held by it as provided in Section 403 or 404 which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are then
in excess of the amount thereof which then would have been required to be
deposited for the purpose for which such obligations or money were deposited or
received.

SECTION 403.       Defeasance and Discharge of Indenture.

 

The Company
and the Guarantor shall be deemed to have paid and discharged the entire
indebtedness on all the Outstanding Securities on the 91st day after the date
of the 

 

-29-

 

deposit referred
to in subparagraph (1) of this section, and the provisions of this Indenture,
as it relates to such Outstanding Securities, shall no longer be in effect (and
the Trustee, at the expense of the Company or the Guarantor, shall at Company
Request of the Company or the Guarantor, execute proper instruments
acknowledging the same), except as to:

(a)           the rights of
Holders of Securities to receive, from the trust funds described in
subparagraph (1) hereof, (i) payment of the principal of (and premium, if any)
and each installment of principal of (and premium, if any) or interest on the
Outstanding Securities on the Stated Maturity of such principal or installment
of principal or interest and (ii) the benefit of any mandatory sinking fund
payments applicable to the Securities on the day on which such payments are due
and payable in accordance with the terms of this Indenture and the Securities;

(b)           the Company’s and
the Guarantor’s obligations with respect to such Securities under Sections 304,
305, 306, 1002, 1003 and 1009; and

(c)           the obligations of
the Company and the Guarantor to the Trustee under Section 607,

provided
that the following conditions shall have been satisfied:

(1)           the Company or the
Guarantor has or caused to be irrevocably deposited (except as provided in
Section 402) with the Trustee as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the
Securities, (i) money in U.S. dollars in an amount (or if the Securities are
denominated in any currency other than U.S. dollars, an amount of the
applicable currency), or (ii) an amount, or (ii) U.S. Government
Obligations which through the payment of interest and principal in respect
thereof in accordance with their terms will provide not later than one day
before the due date of any payment referred to in clause (A) or (B) of this
subparagraph money in an amount, or (iii) a combination thereof, sufficient, in
the opinion of a nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge (A) the principal of (and premium, if any) and each installment
of principal of (and premium, if any) and interest on the Outstanding
Securities on the Stated Maturity of such principal or installment of principal
or interest or on the applicable Redemption Date and (B) any mandatory sinking
fund payments applicable to the Securities on the day on which such payments
are due and payable in accordance with the terms of this Indenture and of the
Securities;

(2)           such deposit shall
not cause the Trustee with respect to the Securities to have a conflicting
interest for purposes of the Trust Indenture Act with respect to the Securities;

 

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(3)           such deposit will
not result in a breach or violation of, or constitute a default under, any
applicable laws, this Indenture or any other agreement or instrument to which
the Company or the Guarantor is a party or by which it is bound;

(4)           no Event of Default
or event which with notice or lapse of time or both would become an Event of
Default with respect to the Securities shall have occurred and be continuing on
the date of such deposit after giving effect to such deposit or during the
period ending on the 91st day after such date and no bankruptcy proceeding with
respect to the Company or the Guarantor will have occurred and be continuing at
any time during the period ending on the 91st day after such date;

(5)           the Company and the
Guarantor shall have delivered to the Trustee an Opinion of Counsel with no
material qualifications, to the effect that Holders of the Securities will not
recognize income, gain or loss for federal income tax purposes as a result of
such deposit, defeasance and discharge and will be subject to federal income
tax on the same amount and in the same manner and at the same times, as would
have been the case if such deposit, defeasance and discharge had not occurred
and such Opinion of Counsel must refer to and be based upon a letter ruling of
the Internal Revenue Service received by the Company and the Guarantor, a
Revenue Ruling published by the Internal Revenue Service or a change in
applicable United States federal income tax law occurring after the date of the
applicable supplemental indenture;

(6)           the Company and the
Guarantor shall have delivered to the Trustee an Officer’s Certificate as to
solvency and the absence of any intent of preferring the Holders over the other
creditors of the Company or the Guarantor, as the case may be; and

(7)           the Company and the
Guarantor shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the defeasance contemplated by this section have been complied
with.

SECTION 404.       Defeasance of Certain Obligations.

 

If this
section is specified to be applicable to Securities of any series, the Company
may omit to comply with (or elect to have the obligation of the Guarantor
released with respect to) any term, provision or condition set forth in the
sections of this Indenture or such Security specified with respect to the
Securities of that series (“Covenant Defeasance”) if:

(1)           with reference to
this section, the Company or the Guarantor has deposited or caused to be
irrevocably deposited with the Trustee as trust funds in trust, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of
the Securities of that series, (i) money in an amount, or (ii) U.S. Government
Obliga-

 

-31-

 

tions which through the payment of interest and principal in respect
thereof in accordance with their terms will provide not later than one day
before the due date of any payment referred to in clause (A) or (B) of this
subparagraph money in an amount, or (iii) a combination thereof, sufficient, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge (A) the principal of (and premium, if any) and each installment
of principal (and premium, if any) and interest on the Outstanding Securities
of that series on the Stated Maturity of such principal or installment of
principal or interest and (B) any mandatory sinking fund payments or analogous
payments applicable to Securities of such series on the day on which such
payments are due and payable in accordance with the terms of the Indenture and
of such Securities;

(2)           such deposit shall
not cause the Trustee with respect to the Securities of that series to have a
conflicting interest for purposes of the Trust Indenture Act with respect to
the Securities of any series;

(3)           such deposit will
not result in a breach or violation of, or constitute a default under, this
Indenture or any other agreement or instrument to which the Company or the
Guarantor is a party or by which it is bound;

(4)           the Company and the
Guarantor shall have delivered to the Trustee an Opinion of Counsel with no
material qualifications to the effect that Holders of the Securities will not
recognize income, gain or loss for federal income tax purposes as a result of
such deposit and defeasance of certain obligations and will be subject to
federal income tax on the same amount and in the same manner and at the same
times, as would have been the case if such deposit and defeasance had not occurred;

(5)           no Event of Default
or event which with notice or lapse of time would become an Event of Default
with respect to the Securities shall have occurred and be continuing on the
date of such deposit after giving effect to such deposit; and

(6)           the Company and the
Guarantor shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided
for relating to the defeasance contemplated by this section have been complied
with.

SECTION 405.       Reinstatement

 

If the Trustee
or Paying Agent is unable to apply any money or U.S. Government Obligations in
accordance with this Article 4 by reason of any legal proceeding or by reason
of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise pro­hibiting such application, the Company’s and the
Guarantor’s obligations under this Indenture, the Securities and the Guarantee
shall be revived and reinstated as though 

 

-32-

 

no deposit had
occurred pursuant to Section 401, 403 or 404 until such time as the Trustee or
Paying Agent is permitted to apply all such U.S. legal tender or U.S.
Government Obligations in accordance with this article; provided, however,
that if the Company or the Guarantor has made any payment of principal of,
premium, if any, on, interest on or Additional Amounts, if any, on any
Securities because of the reinstatement of their obligations, the Company and
the Guarantor shall be subrogated to the rights of the Holders of such
Securities to receive such payment from the money or U.S. Government
Obligations held by the Trus­tee or Paying Agent.

ARTICLE FIVE

REMEDIES

SECTION 501.       Events of Default.

 

“Event of
Default” (except as otherwise specified or contemplated by Section 301 for
Securities of any series) wherever used herein with respect to Securities of
any series, means any one of the following events:

(1)           default in the
payment of any interest upon any Security of that series when it becomes due
and payable, and continuance of such default for a period of 60 days; or

(2)           default in the
payment of the principal of (or premium, if any, on) any Security of that
series at its Maturity; or

(3)           default in the
deposit of any sinking fund payment, when and as due by the terms of a Security
of that series; or

(4)           default in the
performance, or breach, of any material covenant or warranty of the Company or
the Guarantor in this Indenture, the Securities or the Guarantee (other than a
covenant or warranty a default in whose performance or whose breach is
elsewhere in this section specifically dealt with or which has expressly been
included in this Indenture solely for the benefit of series of Securities other
than that series) for a period of 60 days after there has been given, and
continuance of such by registered or certified mail, to the Company or the
Guarantor by the Trustee or to the Company, the Guarantor and the Trustee by
the Holders of at least 25% in principal amount of the Outstanding Securities a
written notice specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder; or

(5)           the entry by a court
having jurisdiction in the premises of (A) a decree or order for relief in
respect of the Company or the Guarantor in an involuntary case or 

 

-33-

 

proceeding under any applicable bankruptcy, insolvency, reorganization
or other similar law or (B) a decree or order adjudging the Company or the
Guarantor a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company or the Guarantor under any applicable law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or the Guarantor or of any substantial part of
its property, or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 60 consecutive days; or

(6)           the commencement by
the Company or the Guarantor of a voluntary case or proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar law or of
any other case or proceeding to be adjudicated a bankrupt or insolvent, or the
consent by the Company or the Guarantor to the entry of a decree or order for
relief in respect of the Company or the Guarantor in an involuntary case or
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against the Company or the Guarantor, or the filing by the Company
or the Guarantor of a petition or answer or consent seeking reorganization or
relief under any applicable law, or the consent by the Company or the Guarantor
to the filing of such petition or to the appointment of or taking possession by
a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of the Company or the Guarantor or of any substantial part of the
Company’s or the Guarantor’s property, or the making by the Company or the
Guarantor of an assignment for the benefit of creditors, or the admission by
the Company or the Guarantor in writing of their inability to pay its debts
generally as they become due and its willingness to have a case commenced
against it or to seek an order for relief under any applicable bankruptcy,
insolvency or other similar law or the taking of corporate action by the
Company in furtherance of any such action; or

(7)           the Guarantee ceases
to be in full force and effect or is declared to be null and void and
unenforceable or is found to be invalid, in each case by a court of competent
jurisdiction in a final non-appealable judgment, or the Guarantor denies its
liability under the Guarantee (other than by reason of release of the Guarantor
in accordance with the terms of this Indenture); or

(8)           any other Event of
Default expressly provided with respect to Securities of that series.

SECTION 502.       Acceleration of Maturity: Rescission
and Annulment.

 

If an Event of
Default (other than an Event of Default described in Section 501(5) or 501(6))
with respect to Securities of any series at the time Outstanding occurs and is
continuing, then in every such case the Trustee or the Holders of not less than
25% in princi-

 

-34-

 

pal amount of
the Outstanding Securities of that series may declare the principal amount (or,
if the Securities of that series are Original Issue Discount Securities, such
portion of the principal amount as may be specified in the terms of that
series) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company and the Guarantor (and to
the Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable.

In the case of
an Event of Default described in Section 501(5) or 501(6), which occurs and is
continuing with respect to Securities of any series at the time Outstanding,
then all unpaid principal of and accrued interest on all such Outstanding Securities
of that series shall become immediately due and payable without any notice or
other action on the part of the Trustee or the Holders of any Securities of
such series.

At any time
after such a declaration of acceleration with respect to Securities of any
series has been made and before a judgment or decree for payment of the money
due has been obtained by the Trustee as hereinafter in this article provided,
the Holders of at least a majority in principal amount of the Outstanding
Securities of that series, by written notice to the Company, the Guarantor and
the Trustee, may rescind and annul such declaration and its consequences if

(1)           the Company or the
Guarantor has paid or deposited with the Trustee a sum sufficient to pay

(A)          all overdue interest
on all Securities of that series,

(B)           the principal of
(and premium, if any, on) any Securities of that series which have become due
otherwise than by such declaration of acceleration and interest thereon at the
rate or rates prescribed therefor in such Securities,

(C)           to the extent that
payment of such interest is lawful, interest upon overdue interest at the rate
or rates prescribed therefor in such Securities, and

(D)          all sums paid or
advanced by the Trustee and any predecessor Trustee hereunder and all sums due
the Trustee and any predecessor Trustee under Section 607;

and

(2)           all Events of
Default with respect to Securities of that series, other than the non-payment
of the principal of Securities of that series which have become due 

 

-35-

 

solely by such declaration of acceleration, have been cured or waived
as provided in Section 513.

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

SECTION 503.       Collection of Indebtedness and Suits
for Enforcement by Trustee.

 

The Company
and the Guarantor covenant that if

(1)           default is made in
the payment of any interest on any Security when such interest becomes due and
payable and such default continues for a period of 30 days, or

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

the Company or
the Guarantor will, upon demand of the Trustee, pay to it, for the benefit of
the Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest and, to the extent
that payment of such interest shall be legally enforceable, interest on any
overdue principal (and premium, if any) and on any overdue interest, at the
rate or rates prescribed therefor in such Securities, and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of
collection, including all amounts due the Trustee and any predecessor Trustee
under Section 607.

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

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

SECTION 504.       Trustee May File Proofs of Claim.

 

In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding 

 

-36-

 

relative to
the Company or the Guarantor or any other obligor upon the Securities or the
property of the Company or the Guarantor or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company or the Guarantor for the payment of overdue principal or interest)
shall be entitled and empowered, by intervention in such proceeding or
otherwise,

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

(ii)     to collect and receive
any moneys or other property payable or deliverable on any such claims and to
distribute the same;

and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due 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 607.

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 505.       Trustee May Enforce Claims Without
Possession of Securities.

 

All rights of
action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Securities in respect of which such judgment has been recovered.

SECTION 506.       Application of Money Collected.

 

Any money
collected by the Trustee pursuant to this article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of 

 

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such money on
account of principal (or premium, if any) or interest, upon presentation of the
Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

FIRST:  To the payment of all amounts due the
Trustee and each predecessor Trustee under Section 607;

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

THIRD:  To the Company.

SECTION 507.       Limitation on Suits.

 

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

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

(2)           the Holders of not
less than 25% in principal amount of the Outstanding Securities of that series
shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;

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

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

(5)           no direction
inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;

it being
understood and intended that no one or more of such Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other of such
Holders, or to obtain or to seek to obtain 

 

-38-

 

priority or
preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders.

SECTION 508.       Unconditional Right of Holders to
Receive Principal, Premium and Interest.

 

Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal
of (and premium, if any) and (subject to Section 307) interest on such Security
on the Stated Maturity or Maturities expressed in such Security or the
Guarantee thereof (or, in the case of redemption, on the Redemption Date) and
to institute suit for the enforcement of any such payment, including under the
Guarantee and such rights shall not be impaired without the consent of such
Holder.

SECTION 509.       Restoration of Rights and Remedies.

 

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

SECTION 510.       Rights and Remedies Cumulative.

 

Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no
right or remedy herein or in the Guarantee conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment
of any other appropriate right or remedy.

SECTION 511.       Delay or Omission Not Waiver.

 

No delay or
omission of the Trustee or of any Holder of any Securities to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or any acquiescence
therein.  Every right and remedy given
by this article or by law to the Trustee or to the Holders may be 

 

-39-

 

exercised from
time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

SECTION 512.       Control by Holders.

 

The Holders of
a majority in principal amount of the Outstanding Securities of any series (or
if more than one series is affected thereby, of all series so affected, voting
as a single class) shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that

(1)           such direction shall
not be in conflict with any rule of law or with this Indenture, expose the
Trustee to personal liability or be unduly prejudicial to holders not joining
therein, and

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

Nothing in
this Indenture shall impair the right of the Trustee to take any other action
deemed proper by the Trustee which is not inconsistent with such direction.

SECTION 513.       Waiver of Past Defaults.

 

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

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

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

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

SECTION 514.       Undertaking for Costs.

 

All parties to
this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit 

 

-40-

 

against the
Trustee for any action taken, suffered or omitted by it as Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made
by such party litigant; but the provisions of this section shall not apply to
any suit instituted by the Company, to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the
aggregate more than 10% in principal amount of the Outstanding Securities of
any series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of (or premium, if any) or interest on any Securities
on or after the Stated Maturity or Maturities expressed in such Security (or,
in the case of redemption, on or after the Redemption Date).  This Section 514 shall be in lieu of Section
315(e) of the Trust Indenture Act and such Section 315(e) is hereby expressly
excluded from this Indenture, as permitted by the Trust Indenture Act.

SECTION 515.       Waiver of Stay or Extension Laws.

 

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

ARTICLE SIX

THE TRUSTEE

SECTION 601.       Certain Duties and Responsibilities.

 

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

(1)           the Trustee undertakes to perform
such duties and only such duties as are specifically set forth in this
Indenture with respect to such series, 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, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, 

 

41

 

the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture.

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

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

(1)           this subsection shall not be construed
to limit the effect of subsection (a) of this section;

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

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

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

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

SECTION 602.       Notice of Defaults.

 

Within 90 days
after the occurrence of any default hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of
such series, as their names and addresses appear in the Security Register,
notice of such de-

 

42

 

fault
hereunder known to the Trustee, unless such default shall have been cured or
waived; provided, however, that, except in the case of a default
in the payment of the principal of (or premium, if any) or interest on any
Security of such series or in the payment of any sinking fund installment with
respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors or Responsible Officers of the
Trustee in good faith determines that the withholding of such notice is in the
interest of the Holders of Securities of such series; and provided, further,
that in the case of any default of the character specified in Section 501(4)
with respect to Securities of such series, no such notice to Holders shall be
given until at least 30 days after the occurrence thereof.  For the purpose of this section, the term
“default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.

SECTION 603.       Certain Rights of Trustee.

 

Subject to the
provisions of Section 601:

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

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

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

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

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

 

43

 

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

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

SECTION 604.       Not Responsible for Recitals or
Issuance of Securities.

 

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

SECTION 605.       May Hold Securities.

 

The Trustee,
any Paying Agent, any Security Registrar or any other agent of the Company or
the Guarantor, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 608 and 612, may otherwise deal
with, and collect obligations owed to it by, the Company or the Guarantor with
the same rights it would have if it were not Trustee, Paying Agent, Security Registrar
or such other agent.

SECTION 606.       Money Held in Trust.

 

Money held by
the Trustee in trust hereunder need not be segregated from other funds except
to the extent required by law.  The
Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed with the Company and the Guarantor.

SECTION 607.       Compensation and Reimbursement.

 

The Company
and the Guarantor, jointly and severally, agree:

 

44

 

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

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

(3)           to indemnify each of
the Trustee and any predecessor Trustee for, and to hold it harmless against,
any loss, liability or expense, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder and the
performance of its duties hereunder, including the costs and expenses of
defending itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder, except to the extent
any such loss, liability or expense is due to its own negligence or bad faith.

To ensure the
performance of the obligations of the Company or the Guarantor under this
section, the Trustee shall have a senior claim to which the Securities are
hereby made subordinate upon all property and funds held or collected by the
Trustee as such, except property and funds held in trust for the payment of
principal of, premium, if any, or interest on particular Securities.

SECTION 608.       Disqualification; Conflicting
Interests.

 

The Trustee
shall comply with the terms of Section 310(b) of the Trust Indenture
Act.  The provisions of Section 310 of
the Trust Indenture Act shall apply to the Issuer and the Guarantor, as
obligors of the Securities.

SECTION 609.       Corporate Trustee Required;
Eligibility.

 

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 of America, any State
thereof or the District of Columbia, authorized under such laws to exercise
corporate trust powers having (or, in the case of the subsidiary of a bank
holding company that guarantees the obligations of the Trustee under this
Indenture, such holding company’s parent shall have) a combined capital and
surplus of at least $50,000,000 subject to supervision or examination by
Federal or State authority.  If such
corporation or holding company parent publishes reports of condition at least
annually, pursuant to law or the requirements of said supervising or examining
authority, then for the purposes of this section, the combined capital and
surplus of such corporation or holding company parent shall be deemed to be its
combined capital and surplus 

 

45

 

as set forth
in its most recent report of condition so published.  If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this section, it shall resign immediately in
the manner and with the effect hereinafter specified in this article.

SECTION 610.       Resignation and Removal; Appointment
of Successor.

 

(a)           No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to
this article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section
611.

(b)           The Trustee may
resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company or the Guarantor.  If the instrument of acceptance by a
successor Trustee required by Section 611 shall not have been delivered to the
Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.  If the acceptance of
appointment is substantially contemporaneous with the resignation, then the
notice called for by the first sentence of this subsection may be combined with
the instrument called for by Section 611.

(c)           The Trustee may be
removed at any time with respect to the Securities of any series by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Trustee, the Company and the Guarantor.

(d)           If at any time:

(1)           the Trustee shall fail to comply with
Section 608 after written request therefor by the Company, the Guarantor
or by any Holder who has been a bona fide Holder of a Security for at least six
months, or

(2)           the Trustee shall cease to be
eligible under Section 609 and shall fail to resign after written request
therefor by the Company, the Guarantor or by any such Holder, or

(3)           the Trustee shall become incapable of
acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee
or of its property shall be appointed or any public officer shall take charge
or control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,

then, in any
such case, (i) the Company or the Guarantor by a Board Resolution may remove
the Trustee with respect to all Securities, or (ii) subject to Section 514, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

 

46

 

(e)           If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur
in the office of Trustee for any cause, with respect to the Securities of one
or more series, the Company or the Guarantor, by a Board Resolution, 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 such
series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 611.  If, within
one year after such resignation, removal or incapability, or the occurrence of
such vacancy, a successor Trustee with respect to the Securities of any series
shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Securities of such series delivered to the Company, the
Guarantor and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 611, become the successor Trustee with
respect to the Securities of such series and to that extent supersede the successor
appointed by the Company or the Guarantor. 
If no successor Trustee with respect to the Securities of any series
shall have been so appointed by the Company, the Guarantor or the Holders and
accepted appointment in the manner required by Section 611, any Holder who has been
a bona fide Holder of a Security of such series for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

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

SECTION 611.       Acceptance of Appointment by Successor.

 

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

 

47

 

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

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

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

SECTION 612.       Merger, Conversion, Consolidation or
Succession to Business.

 

Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee (including the administration of this Indenture), shall be the
successor of the Trustee hereunder, provided such corporation 

 

48

 

shall be
otherwise qualified and eligible under this article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto.  In case any Securities shall
have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with
the same effect as if such successor Trustee had itself authenticated such
Securities.

SECTION 613.       Preferential Collection of Claims Against
Company.

 

If and when
the Trustee shall be or become a creditor of the Company or the Guarantor (or
any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company or the Guarantor (or any such other obligor).  A trustee who has resigned or been removed
shall be subject to the Trust Indenture Act Section 311(a) to the extent
provided therein.

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701.       Company to Furnish Trustee Names and
Addresses of Holders.

 

The Company
will furnish or cause to be furnished to the Trustee with respect to the
Securities of each series

(a)           semi-annually, not
more than fifteen days after each Regular Record Date, or, in the case of any
series of Securities on which semi-annual interest is not payable, not more
than fifteen days after such semi-annual dates as may be specified by the
Trustee, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such Regular Record Date or such
semi-annual date, as the case may be, and

(b)           at such other times
as the Trustee may request in writing, within 30 days after the receipt by the
Company or the Guarantor of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished;

provided,
however, that so long as the Trustee is the Security Registrar, no such
list need be furnished.

SECTION 702.       Preservation of Information;
Communications to Holders.

 

(a)           The Trustee shall
preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list furnished to the 

 

49

 

Trustee as
provided in Section 701 and the names and addresses of Holders received by the
Trustee in its capacity as Security Registrar. 
The Trustee may destroy any list furnished to it as provided in Section
701 upon receipt of a new list so furnished.

(b)           If three or more
Holders (herein referred to as “applicants”) apply in writing to the Trustee,
and furnish to the Trustee reasonable proof that each such applicant has owned
a Security for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to
communicate with other Holders with respect to their rights under this
Indenture or under the Securities and is accompanied by a copy of the form of
proxy or other communication which such applicants propose to transmit, then
the Trustee shall, within five Business Days after the receipt of such
application, at its election, either

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

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

If the Trustee
shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder
whose name and address appear in the information preserved at the time by the
Trustee in accordance with Section 702(a) a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness after
a tender to the Trustee of the material to be mailed and of payment, or provision
for the payment, of the reasonable expenses of mailing, unless within five days
after such tender the Trustee shall mail to such applicants and file with the
Commission, together with a copy of the material to be mailed, a written
statement to the effect that, in the opinion of the Trustee, such mailing would
be contrary to the best interest of the Holders or would be in violation of
applicable law.  Such written statement
shall specify the basis of such opinion. 
If the Commission, after opportunity for a hearing upon the objections
specified in the written statement so filed, shall enter an order refusing to
sustain any of such objections or if, after the entry of an order sustaining
one or more of such objections, the Commission shall find, after notice and
opportunity for hearing, that all the objections so sustained have been met and
shall enter an order so declaring, the Trustee shall mail copies of such
material to all such Holders with reasonable promptness after the entry of such
order and the renewal of such tender; otherwise the Trustee shall be relieved
of any obligation or duty to such applicants respecting their application.

(c)           Every Holder of
Securities, by receiving and holding the same, agrees with the Company, the
Guarantor and the Trustee that neither the Company, the Guarantor 

 

50

 

nor the
Trustee nor any agent of either of them shall be held accountable by reason of
the disclosure of any such information as to the names and addresses of the Holders
in accordance with Section 702(b), regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Section 702(b).

(d)           Subject to Sections
702(a), 702(b), 702(c) and 601, if the Company, the Guarantor or any other
Person (other than the Trustee) shall desire to communicate with Holders of
Securities to solicit or obtain from them any proxy, consent, authorization,
waiver, approval of a plan of reorganization, arrangement or readjustment or
other action (“Holder Action”), the Trustee shall have no duty to participate
in such communication or solicitation or the processing of responses in any
manner except (i) to furnish the rules and regulations and to perform the
functions referred to in Section 104 and (ii) to receive (A) the instruments
evidencing the Holder Action together with (B) the Officers’ Certificate and
Opinion of Counsel referred to below. 
Each of the Company and the Guarantor hereby covenants that any and all
communications and solicitations distributed by it in connection with any
Holder Action will comply in all material respects with applicable law,
including without limitation applicable law concerning adequacy of
disclosure.  The Trustee shall have no
responsibility for the accuracy or completeness of any materials circulated to
solicit any Holder Action nor for any related communications nor for the
compliance thereof with applicable law. 
No Holder Action shall become effective until the Trustee shall have
received from the Company, the Guarantor or other Person who solicited the
Holder Action (1) the instruments evidencing such Holder Action and (2) (x) (in
the case of Holder Action solicited by the Company or the representative of the
Company’s estate if the Company is the debtor in any bankruptcy or other
insolvency proceeding) an Officers’ Certificate and (y) (in all cases) an Opinion
of Counsel, each specifying the Holder Action taken and stating that such
Holder Action has been duly and validly taken in compliance with this Indenture
in all material respects.  Such
Officers’ Certificate, if any, shall also certify that (after giving effect to
such Holder Action) no Event of Default or event or condition which, with
notice or lapse of time or both, would become an Event of Default has occurred
and is continuing or has not been waived.

(e)           The Depositary may
grant proxies and otherwise authorize its participants which own the Global
Securities to give or take any Act which a Holder is entitled to take under the
Indenture; provided, however, that the Depositary has delivered a
list of such participants to the Trustee.

SECTION 703.       Reports by Trustee.

 

(a)           Within 60 days after
[                          ] of each year
commencing with the first [                       ]
following the date of this Indenture, the Trustee shall transmit by mail to all
Holders, as their names and addresses appear in the Security Register, a brief 

 

51

 

report dated
as of such [                     ], to the
extent required by Section 313(a) of the Trust Indenture Act.

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

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

SECTION 704.       Reports by Guarantor.

 

The Guarantor
shall:

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

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

ARTICLE EIGHT

SUCCESSOR CORPORATION

SECTION 801.       When Company or Guarantor May Merge or
Transfer Assets.

 

The Guarantor
shall not, and shall not permit the Company to, in one or more related
transactions, (1) consolidate or amalgamate with or merge with or into any
other Person or convey, transfer, sell or lease its properties and assets
substantially as an entirety to any 

 

52

 

Person, or (2)
permit any Person to consolidate with or merge into the Guarantor or the
Company, or permit any Person to convey, transfer, sell or lease that Person’s
properties and assets substantially as an entirety to the Guarantor or the Company,
as the case may be, unless:

(a)           in the case of (1)
and (2) above, if the Guarantor or the Company, as the case may be, is not the
surviving person, such Person will expressly assume, by supplemental indenture
satisfactory in form to the Trustee, the due and punctual payment pursuant to
the Securities, the Indenture and the Guarantee of the principal of, any
premium and interest on and any Additional Amounts with respect to all of the
Securities issued thereunder, and the performance of all applicable obligations
under the Indenture, the Guarantee and the Securities issued thereunder; and

(b)           immediately after
giving effect to such transaction, and treating any Indebtedness which becomes
an obligation of the Company, the Guarantor or a designated Subsidiary as a
result of such transactions as having been incurred by the Company, the
Guarantor or such designated Subsidiary at the time of such transaction, no
Event of Default, and no event which, after the giving of notice or lapse of
time, or both, would become an Event of Default, shall have occurred and be
continuing; and

(c)           each of the Company
and the Guarantor have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture comply with this Article and
that all conditions precedent herein provided for relating to such transaction
have been complied with.

Upon any
consolidation or amalgamation of the Company or the Guarantor with, or merger
of the Company or the Guarantor into, any other Person or any conveyance,
transfer, sale, lease or other disposition of the properties and assets of the
Company or the Guarantor in accordance with this Article, the successor shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company or the Guarantor, as the case may be, under this Indenture, the
Securities and the Guarantee with the same effect as if such successor had been
named as the Company or the Guarantor, as the case may be, herein and therein,
and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture, the Guarantee
and the Securities.

 

53

 

ARTICLE NINE

AMENDMENTS & SUPPLEMENTAL INDENTURES

SECTION 901.       Amendments or Supplemental Indentures
without Consent of Holders.

 

The Company
and the Guarantor, when authorized by a Board Resolution,  and the Trustee, at any time and from time
to time, may amend or supplement this Indenture or the Securities or the
Guarantees without the consent of any Holder, so long as such changes, other
than those set forth in clause (2), do not materially and adversely affect the
interests of the Holder:

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

(2)           to make any
modifications or amendments that do not, in the good faith opinion of the
Company’s and the Guarantor’s Board of Directors and the Trustee, adversely
affect the interests of the Holders in any material respect;

(3)           to provide for the
assumption of the Company’s or the Guarantor’s obligations under this Indenture
by a successor upon any merger, consolidation or asset transfer as permitted by
and in compliance with Article Eight of this Indenture;

(4)           to provide any
security for or additional guarantees of the Securities;

(5)           to add Events of
Default with respect to the Securities;

(6)           to add to the
Company’s or the Guarantor’s covenants for the benefit of the Holders or to
surrender any right or power conferred upon the Company or the Guarantor by
this Indenture;

(7)           to make any change
necessary for the registration of the Securities and the Guarantee under the
Securities Act or to comply with the TIA, or any amendment thereto, or to
comply with any requirement of the SEC in connection with the qualification of
the Indenture under the TIA, provided that such modification or amendment does
not, in the good faith opinion of the Company’s and the Guarantor’s Board of
Directors and the Trustee, adversely affect the interests of the Holders of the
Securities in any material respect;

(8)           to provide for
uncertificated Securities or Guarantees in addition to or in place of
certificated Securities or Guarantees or to provide for bearer Securities or
Guarantees;

 

54

 

(9)           to add to or change
any of the provisions of this Indenture to such extent as shall be necessary to
permit or facilitate the issuance of Securities in bearer form, registrable or
not registrable as to principal, and with or without interest coupons;

(10)         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
Security Outstanding of any series created prior to the execution of such
supplemental indenture which is entitled to the benefit of such provision;

(11)         to establish the form
or terms of Securities of any series as permitted by Sections 201 and 301; or

(12)         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
facilitate the administration of the trusts hereunder by more than one Trustee,
pursuant to the requirements of Section 611(b).

SECTION 902.       Amendments or Supplemental Indentures
with Consent of Holders.

 

With the
written consent of the Holders of not less than a majority in aggregate
principal amount of the Securities at the time Outstanding of all series
affected by such amendment or supplement (taken together as one class), the
Company and the Guarantor, when authorized by Board Resolutions, and the
Trustee, at any time and from time to time, may amend or supplement this
Indenture or the Securities.  However,
without the consent of each Holder affected, an amendment to this Indenture or
the Securities may not:

(1)           change the Stated
Maturity of the principal of, or any premium on or any installment of interest
with respect to the Securities;

(2)           reduce the principal
amount of, or the rate (or modify the calculation of such principal amount or
rate) of interest on, or any Additional Amounts with respect to, or any premium
payable upon the redemption of, the Securities;

(3)           change the currency
of payment of principal of or interest on the Securities;

(4)           change the
redemption provisions, if any, of any Securities in any manner adverse to the
holders of such Securities;

(5)           impair the right to
institute suit for the enforcement of any payment on or with respect to the
Securities;

 

-55-

 

(6)           reduce the
above-stated percentage of Holders of the Securities of any series necessary to
modify or amend this Indenture;

(7)           if the Securities
are convertible, adversely affect the right to convert the Securities into
Common Shares in accordance with the provisions of this Indenture;

(8)           release the
Guarantor from any of its obligations under its Guarantee or this Indenture
otherwise than in accordance with the terms of this Indenture;

(9)           modify or change any
provision of this Indenture or the related definitions affecting the ranking of
the Securities or the Guarantee in a manner which adversely affects the Holders;

(10)         change the obligation
to pay Additional Amounts with respect to any Security; or

(11)         modify the foregoing
requirements or reduce the percentage of Outstanding Securities necessary to
waive any covenant or past default.

It shall not
be necessary for any Act of the Holders under this Section 902 to approve the
particular form of any proposed amendment or supplemental indenture, but it
shall be sufficient if such Act approves the substance thereof.

After an
amendment or supplemental indenture under this Section 902 becomes effective,
the Company and the Guarantor shall mail to each Holder a notice briefly
describing the amendment or supplemental indenture.

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

SECTION 903.       Execution of Supplemental Indentures.

 

The Trustee
shall sign any supplemental indenture authorized pursuant to this article if
the amendment contained therein does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
If it does, the Trustee may, but need not, sign such supplemental
indenture.  In executing, or accepting
the additional trusts created by, any supplemental indenture permitted by this
article or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon, an Officers’ Certificate from each of the
Company and the Guaran-

 

56

 

tor and an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture.

SECTION 904.       Effect of Supplemental Indentures.

 

Upon the
execution of any supplemental indenture under this article, this Indenture
shall be modified in accordance therewith, and such supplemental indenture
shall form a part of this Indenture for all purposes; and every Holder of
Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

SECTION 905.       Conformity with Trust Indenture Act.

 

Every
supplemental indenture executed pursuant to this article shall conform to the
requirements of the Trust Indenture Act as then in effect.

SECTION 906.       Reference in Securities to
Supplemental Indentures.

 

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

ARTICLE TEN

COVENANTS

SECTION 1001      Payment of Principal, Premium and
Interest.

 

The Company
covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of (and premium, if any) and interest on
the Securities of that series in accordance with the terms of the Securities
and this Indenture.  Payments of
premium, if any, Additional Amounts, if any, and interest in respect of a
certificated Security may be made at the option of the Company by wire transfer
of immediately available funds to the accounts specified by registered Holders
as of the relevant record dates or, by checks mailed to the addresses of the
registered Holders as of the relevant record dates or at the specified offices
of any Paying Agent.  Payment of
principal in respect of a certificated Security will only be made against
presentation and, provided that payment is made in full, surrender of the
appropriate certificate at the specified offices of any Paying Agent. The 

 

57

 

Guarantor
covenants that it will, as and when any amounts are due hereunder or under any
Security, duly and punctually pay such amounts as provided in the Guarantee.

SECTION 1002      Maintenance of Office or Agency.

 

The Company
and the Guarantor will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment and my be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Company or the
Guarantor in respect of the Securities of that series and this Indenture may be
served.  The Company and the Guarantor
hereby initially appoint the Trustee its office or agency for each of said
purposes.  The Company and the Guarantor
will give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. 
If at any time the Company or the Guarantor shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee, and each of the
Company and the Guarantor hereby appoints the Trustee as its agent to receive
all such presentations, surrenders, notices and demands.

The Company
and the Guarantor 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 such purposes and may from time to time rescind
such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company or the Guarantor of its
obligation to maintain an office or agency in each Place of Payment for
Securities of any series for such purposes. 
The Company and the Guarantor 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 1003      Money for Securities; Payments to Be
Held in Trust.

 

If the Company
shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of (and
premium, if any) or interest on any of the Securities of that series, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal (and premium, if any) or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure
so to act.

Whenever the
Company or the Guarantor shall have one or more Paying Agents for any series of
Securities, it will, on or prior to each due date of the principal of (and
premium, if any) or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or 

 

58

 

interest, and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

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

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

(2)           give the Trustee
notice of any default by the Company (or any other obligor upon the Securities
of that series including, without limitation, the Guarantor) in the making of
any payment of principal (and premium, if any) or interest on the Securities of
that series; and

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

The Company or
the Guarantor may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or by Company
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by
the Company or such Paying Agent, such sums to be held by the Trustee upon the
same trusts as those upon which such sums were held by the Company, the
Guarantor or such Paying Agent; and, upon such payment by any Paying Agent to
the Trustee, such Paying Agent shall be released from all further liability
with respect to such money.

Any money
deposited with the Trustee or any Paying Agent, or then held by the Company or
the Guarantor, in trust for the payment of the principal of (and premium, if
any) or interest on any Security of any series and remaining unclaimed for two
years after such principal (and premium, if any) or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by
the Company or the Guarantor) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor,
look, only to the Company or the Guarantor for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company or the Guarantor as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company or the Guarantor cause to be mailed or published once,
in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the City, County and State of New
York, or both, 

 

59

 

notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such mailing or publication,
any unclaimed balance of such money then remaining will be repaid to the
Company or the Guarantor.

The Company
shall have no obligation to make payment of principal of (or premium, if any)
or interest on any Security in immediately available funds, except that if the
Company shall have received original payment for Securities in immediately
available funds it shall make available immediately available funds for payment
of the principal of such Securities.

SECTION 1004      Corporate Existence.

 

Subject to
Article Eight, each of the Company and the Guarantor will do or cause to be
done all things necessary to preserve and keep in full force and effect its
corporate existence, rights (charter and statutory) and franchises; provided,
however, that the Company and the Guarantor shall not be required to
preserve any such right or franchise if its respective Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company or the Guarantor and that the loss thereof is
not disadvantageous in any material respect to the Holders.

SECTION 1005      Maintenance of Properties.

 

Each of the
Company and the Guarantor will use its reasonable efforts to cause all material
properties used or useful in the conduct of its business to be maintained and
kept in good condition, repair and working order (subject to wear and tear) and
supplied with all necessary material equipment and will use its reasonable
efforts to cause to be made all necessary material repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this section shall prevent the Company or the
Guarantor from discontinuing the operation or maintenance of any of such
properties if such discontinuance is, in the judgment of the Company or the
Guarantor, desirable in the conduct of its business and not disadvantageous in
any material respect to the Holders.

SECTION 1006.     Statement by Officers as to Default.

 

The Company
and the Guarantor will each deliver to the Trustee, within 120 days after the
end of each fiscal year ending after the date hereof, a certificate of the
principal executive officer, principal financial officer or principal
accounting officer of each the Company and the Guarantor stating whether or not
to the best knowledge of the signers thereof the Company or the Guarantor is in
default in the performance and observance of any of the terms, provisions and
conditions of this Indenture, and if the Company or the Guarantor shall 

 

60

 

be in default,
specifying all such defaults and the nature and status thereof of which they
may have knowledge.

SECTION 1007.     Waiver of Certain Covenants.

 

The Company or
the Guarantor, as the case may be, may omit in any particular instance to
comply with any term, provision or condition set forth in Section 1006 if
before or after the time for such compliance the Holders of at least a majority
in principal amount of the Outstanding Securities of all series affected by the
omission (taken together as one class) shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and
the Guarantor and the duties of the Trustee in respect of any such term,
provision or condition shall remain in full force and effect.

SECTION 1008.     Ownership and Business of the Company.

 

The Guarantor
shall at all times own, directly or indirectly, 100% of the Capital Stock of
the Company.  The Company shall not
carry on any business whatsoever other than in connection with the issuance,
listing, registration and exchange of the Securities, lending of the proceeds
of the sale of the Securities to the Guarantor and activities incidental to the
foregoing.

SECTION 1009.     Additional Amounts.

 

All amounts
payable (whether in respect of principal, interest or otherwise) in respect of
the Securities or the Guarantee will be made free and clear of and without
withholding or deduction for or on account of any present or future taxes,
duties, levies, assessments or governmental charges of whatever nature imposed
or levied by or on behalf of the Bermuda or any political subdivision thereof
or any authority or agency therein or thereof having power to tax, unless the
withholding or deduction of such taxes, duties, levies, assessments or
governmental charges is required by law. 
In that event, the Company or the Guarantor will, jointly or severally,
pay, or cause to be paid, such Additional Amounts as may be necessary in order
that the net amounts receivable by a Holder after such withholding or deduction
shall equal the respective amounts that would have been receivable by such
Holder had no such withholding or deduction been required, except that no such
Additional Amounts shall be payable in relation to any payment in respect of
any of the Securities or the Guarantee (a) to, or to a third party on behalf
of, a Person who would be able to avoid such withholding or deduction but for a
failure to satisfy any applicable statutory certification, information or documentation
requirements concerning the nationality, residence or identity of such Person
or to make a declaration of non-residence or similar claim for exemption which,
in either case, is required as a precondition to exemption, or is liable for
such taxes, duties, levies, assessments or governmental charges in respect of
such Security by reason of his having some con-

 

61

 

nection with (including,
without limitation, being a citizen of, being incorporated or engaged in a
trade or business in, or having a residence or principal place of business or
other presence in) Bermuda other than (i) the mere holding of such Security or
(ii) the receipt of principal, interest, or other amount in respect of such
Security; (b) presented for payment more than 30 days after the Relevant Date,
except to the extent that the relevant Holder would have been entitled to such
Additional Amounts on presenting the same for payment on or before the expiry
of such period of 30 days; (c) on account of any inheritance, gift, estate,
personal property, sales or transfer or similar taxes, duties, levies, assessments
or similar governmental charges; or (d) on account of any taxes, duties,
levies, assessments or governmental charges that are payable otherwise than by
withholding from payments in respect of such Security or the Guarantee.

If the
Guarantor becomes subject generally at any time to any taxing jurisdiction other
than or in addition to Bermuda, references in this section to Bermuda shall be
read and construed as references to such other jurisdiction(s) and/or to
Bermuda.

Any reference
in this Indenture to principal, premium or interest in respect of the Securities
or the Guarantee, any redemption amount and any other amounts in the nature of
principal, shall be deemed also to refer to any Additional Amounts that may be
payable under this Indenture, and the express mention of the payment of
Additional Amounts (if applicable) in any provision hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made.

Except as
otherwise provided in or pursuant to this Indenture, if the Securities require
the payment of Additional Amounts, at least 10 days prior to the first Relevant
Date with respect to such Securities, and at least 10 days prior to each
Relevant Date if there has been any change with respect to the matters set
forth in the below-mentioned Officers’ Certificate, the Company, the Guarantor
or their designee shall furnish to the Trustee, the Registrar and the Paying
Agent an Officers’ Certificate instructing the Trustee and such Paying Agents
whether such payment of principal of or interest on the Securities shall be
made to Holders without withholding for or on account of any tax assessment or
other governmental charge described above due to the payment of Additional
Amounts by the Company or the Guarantor. 
If any such payment of Additional Amounts shall be required, then such
certificate shall specify by country the amount, if any, required to be
withheld on such payments to such Holders, and the Company and the Guarantor
agree to pay to the Trustee, the Registrar or the Paying Agent the Additional Amounts
required.

 

62

 

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101.     Applicability of Article.

 

Securities of
any series which are redeemable before their Stated Maturity shall be
redeemable in accordance with their terms and (except as otherwise specified as
contemplated by Section 301 for Securities of any series) in accordance with
this article.

SECTION 1102.     Election to Redeem; Notice to Trustee.

 

The election
of the Company to redeem any Securities shall be evidenced by a Board
Resolution.  In case of any redemption
at the election of the Company of less than all the Securities of any series,
the Company and the Guarantor shall, at least 45 days prior to the Redemption
Date fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date and of the principal
amount of Securities of such series to be redeemed, such notice to be
accompanied by a written statement signed by an authorized officer of the
Company and the Guarantor stating that no defaults in the payment of interest
or Events of Default with respect to the Securities of that series have
occurred (which have not been waived or cured).  In the case of any redemption of Securities prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company and the Guarantor shall
furnish the Trustee an Officers’ Certificate evidencing compliance with such restriction.

SECTION 1103.     Selection by Trustee of Securities to Be
Redeemed.

 

If less than
all the Securities of any series are to be redeemed, the particular Securities
to be redeemed shall be selected not more than 60 days prior to the Redemption
Date by the Trustee, from the Outstanding Securities of such series not
previously called for redemption, by such method as the Trustee in its sole
discretion shall deem fair and appropriate and which may provide for the
selection or 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 such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

The Trustee
shall promptly notify the Company and the Guarantor 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 all
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case
of any Securities 

 

63

 

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

SECTION 1104.     Notice of Redemption.

 

Notice of
redemption shall be given from the Company, the Guarantor or the Trustee by
first-class mail, postage prepaid, mailed not less than 45 nor more than 60
days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register.  Any notice which is mailed in the manner herein provided shall be
conclusively presumed to have been duly given, whether or not such Holder
receives the notice.  Failure to give
notice by mail, or any defect in the notice to any such Holder in respect of
any Security, shall not affect the validity of the proceedings for the
redemption of any other Security.

All notices of
redemption shall state:

(1)           the Redemption Date,

(2)           the Redemption Price
and any accrued interest,

(3)           if less than all the
Outstanding Securities of any series are to be redeemed, the identification
(and, in the case of partial redemption, the principal amounts) of the
particular Securities to be redeemed,

(4)           that on the
Redemption Date the Redemption Price and any accrued interest will become due
and payable upon each such Security to be redeemed together with accrued
interest thereon and, if applicable, that interest thereon will cease to accrue
on and after said date,

(5)           the place or places
where such Securities are to be surrendered for payment of the Redemption Price
and any accrued interest,

(6)           that the redemption
is for a sinking fund, if such is the case, and

(7)           the CUSIP number
and, if applicable, the ISIN number, of the Securities being redeemed.

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

 

64

 

SECTION 1105.     Deposit of Redemption Price.

 

On or prior to
any Redemption Date, the Company or the Guarantor shall deposit with the
Trustee or with a Paying Agent (or, if the Company or the Guarantor is acting
as its own Paying Agent, segregate and hold in trust as provided in Section
1003) an amount of money, in funds immediately available on the due date,
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.

SECTION 1106.     Securities Payable on Redemption Date.

 

Notice of
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified together with accrued interest thereon, and from and after
such date (unless the Company or the Guarantor shall default in the payment of
the Redemption Price and accrued interest) such Securities shall cease to bear
interest.  Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be
paid by the Company at the Redemption Price, together with accrued interest to
the Redemption Date; provided, however, that installments of
interest whose Stated Maturity is on the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities, registered
as such at the close of business on the relevant Record Dates according to
their terms and the provisions of Section 307.

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

The Trustee
shall not redeem any Securities of any series pursuant to this article (unless
all Outstanding Securities of such series are to be redeemed) or mail or give
any notice of redemption of Securities during the continuance of an Event of
Default hereunder known to the Trustee with respect to such series, except
that, where the mailing of notice of redemption of any Securities shall
theretofore have been made, the Trustee shall redeem or cause to be redeemed
such Securities, provided that it shall have received from the Company or the
Guarantor a sum sufficient for such redemption.  Except as aforesaid, any moneys theretofore or thereafter
received by the Trustee shall, during the continuance of such Event of Default,
be deemed to have been collected under Article Five and held for the payment of
all such Securities of such series.  In
case such Event of Default shall have been waived as provided in Section 513 or
the default cured on or before the sixtieth day preceding the Redemption Date,
such moneys shall thereafter be applied in accordance with the provisions of
this article.

 

65

 

SECTION 1107.     Securities Redeemed in Part.

 

Any Security
which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company, the Guarantor or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company, the Guarantor and the Trustee duly executed by, the Holder thereof or
his attorney duly authorized in writing), and the Company shall execute, the
Guarantor shall execute Guarantees on, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security
or Securities of the same series, of any authorized denomination as requested
by such Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

ARTICLE TWELVE

SINKING FUNDS

SECTION 1201.     Applicability of Article.

 

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

The minimum
amount of any sinking fund payment provided for by the terms of Securities of
any series is herein referred to as a “mandatory sinking fund payment,” and any
payment in excess of such minimum amount provided for by the terms of
Securities of any series is herein referred to as an “optional sinking fund
payment.”  If provided for by the terms
of Securities of any series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 1202.  Each sinking fund payment shall be applied
to the redemption of Securities of any series as provided for by the terms of
Securities of such series.

SECTION 1202.     Satisfaction of Sinking Fund Payments
with Securities.

 

The Company
(1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as credit Securities of a series which
have been redeemed either at the election of the Company pursuant to the terms
of such Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the
Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that
such Securities have not been previously so credited.  Such Securities shall be received and credited for such purpose
by the Trustee at the Redemption Price specified in such Securities for redemp-

 

66

 

tion through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

SECTION 1203.     Redemption of Securities for Sinking
Fund.

 

Not less than
60 days prior to each sinking fund payment date for any series of Securities,
the Company (1) will deliver to the Trustee an Officers’ Certificate (A)
stating that no defaults in the payment of interest or Events of Default with
respect to Securities of that series have occurred (which have not been waived
or cured), (B) specifying the amount of the next ensuing sinking fund payment
for that series pursuant to the terms of Securities of that series, (C) stating
whether or not the Company intends to exercise its right, if any, to make an
optional sinking fund payment with respect to such series on the next ensuing
sinking fund payment date and, if so, specifying the amount of such optional
sinking fund payment and (D) specifying the portion of such sinking fund
payment, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting
Securities of that series pursuant to Section 1202 and (2) will also
deliver to the Trustee any Securities to be so delivered.  Not less than 30 days before each such
sinking fund payment date the Trustee shall select the Securities of such series
to be redeemed upon such sinking fund payment date in the manner specified in
Section 1103 and cause notice of the redemption thereof to be given in the name
of and at the expense of the Company in the manner provided in Section 1104.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1105, 1106 and 1107. 
Failure of the Company, on or before any such 60th day, to deliver such
Officers’ Certificate and Securities specified in this section, if any, shall
not constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Company (a) that the mandatory sinking fund
payment for such series due on the next succeeding sinking fund payment date
shall be paid entirely in cash without the option to deliver or credit
Securities of such series in respect thereof and (b) that the Company will
make no optional sinking fund payment with respect to Securities of such series
as provided in this article.

The Trustee
shall not redeem or cause to be redeemed any Security of a series with sinking
fund moneys or mail any notice of redemption of Securities of such series by
operation of the sinking fund during the continuance of a default in payment of
interest on such Securities or of any Event of Default with respect to such
series except that, where the mailing of notice of redemption of any Securities
shall therefore have been made, the Trustee shall redeem or cause to be
redeemed such Securities, provided that it shall have received from the Company
a sum sufficient for such redemption. 
Except as aforesaid, any moneys in the sinking fund for such series at
the time when any such default or Event of Default shall occur, and any moneys
thereafter paid into the sinking fund, shall, during the continuance of such
default or Event of Default, be deemed to have been collected under Article
Five and held for the payment of all such Securities of such series.  In case such Event of Default shall have
been waived as provided in Section 513 or the default cured on or before the
60th day preceding 

 

67

 

the sinking
fund payment date, such moneys shall thereafter be applied on the next
succeeding sinking fund payment date in accordance with this section to the
redemption of such Securities.

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

ARTICLE THIRTEEN

GUARANTEE OF SECURITIES

SECTION 1301.     Unconditional Guarantee.

 

Subject to the
provisions of this Article Thirteen, the Guarantor hereby unconditionally
guarantees, on an unsecured, unsubordinated basis, to each Holder of a Security
authenticated and delivered by the Trustee and to the Trustee and its
successors, irrespective of the validity and enforceability of this Indenture,
the Securities or the obligations of the Company to the Holders or the Trustee
hereunder or thereunder, that: (a) the principal of (and premium, if any) and
interest on the Securities and any Additional Amounts with respect thereto,
will be duly and punctually paid in full when due, whether at maturity, by
acceleration, call for redemption or otherwise and all obligations of the
Company or the Guarantor to the Holders or the Trustee hereunder or thereunder
(including amounts due the Trustee under Section 607 hereof) or under the
Securities (including fees, expenses or other disbursements) will be promptly
paid in full or performed, all in accordance with the terms hereof and thereof;
and (b) in case of any extension of time of payment or renewal of any
Securities or any of such other obligations, the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, whether at maturity, by acceleration, call for redemption, purchase or
otherwise (all such obligations guaranteed by the Guarantor, the “Guaranteed
Obligations”).  Failing payment when due
of any amount so guaranteed, or failing performance of any other obligation of
the Company to the Holders, for whatever reason, the Guarantor will be
obligated to pay, or to perform or cause the performance of the same
immediately.  An Event of Default under
this Indenture or the Securities shall constitute an event of default under
this Guarantee, and shall entitle the Holders of Securities or the Trustee to
accelerate the obligations of the Guarantor hereunder in the same manner and to
the same extent as the obligations of the Company.

The Guarantor
agrees to pay any and all fees and expenses (including reasonable attorney’s
fees and expenses) incurred by the Trustee or the Holders in enforcing any
rights under this Article Thirteen with respect to the Guarantor.

Without
limiting the generality of the foregoing, this Guarantee guarantees, to the
extent provided herein, the payment of all amounts that constitute part of the
Guaranteed 

 

68

 

Obligations and
would be owed by the Company under this Indenture or the Securities but for the
fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving the Company.

No
stockholder, officer, director, employee or incorporator, past, present or
future, of the Guarantor, as such, shall have any personal liability under this
Guarantee by reason of his, her or its status as such stockholder, officer, director,
employee or incorporator

SECTION 1302.     Execution and Delivery of Guarantee.

 

The Guarantee
to be endorsed on the Securities pursuant to Section 204 shall be deemed to
include the terms of the Guarantee set forth in this Article Thirteen.  The Guarantor hereby agrees to execute the
Guarantee in the form established pursuant to Section 204 to be endorsed on
each Security authenticated and delivered by the Trustee.

The Guarantee
shall be executed on behalf of the Guarantor by an Officer of the
Guarantor.  The signature of such
Officer on the Guarantee may be manual or facsimile.

A Guarantee
bearing the manual or facsimile signature of an individual who was at any time
the proper officer of the Guarantor shall bind the Guarantor, notwithstanding
that such individual has ceased to hold such office prior to the authentication
and delivery of the Security on which the Guarantee is endorsed or did not hold
such office at the date of the Guarantee.

The delivery
of any Security by the Trustee after the authentication thereof hereunder,
shall constitute due delivery of the Guarantee endorsed thereon on behalf of
the respective Guarantor.  The Guarantor
hereby agrees that the Guarantee set forth in this Article Thirteen and in
Section 204 shall remain in full force and effect notwithstanding any failure
to endorse a Guarantee on any Security.

SECTION 1303.     Obligations of the Guarantor
Unconditional.

 

Nothing
contained in this Article Thirteen or elsewhere in this Indenture or in any
Security is intended to or shall impair, as between the Guarantor and the Holders
and the Trustee, the obligation of the Guarantor, which is absolute and
unconditional, to pay to the Holders and the Trustee the principal of (and
premium, if any), and interest and Additional Amounts, if any, on the
Securities (and to the Trustee amounts due under Section 607) as and when the
same shall become due and payable in accordance with the provisions of this
Guarantee, nor shall anything herein or therein prevent the Trustee or any
Holder from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture.  Without
limiting the generality of the foregoing, it is agreed that the occurrence of
any one or more of the following shall not affect the liability of the
Guarantor hereunder:

 

69

 

(a)           the lack of
validity, regularity or enforceability of this Indenture or the Securities with
respect to the Company or any agreement or instrument relating thereto;

(b)           any change in the
time, manner or place of payment of, or in any other term of any of the
Securities, or any other amendment or waiver of or any consent to departure
from this Indenture;

(c)           any amendment or
modification of or deletion from or addition or supplement to or other change
in the Guarantee, the Indenture or the Securities or any other instrument or
agreement applicable to any of the parties to the Guarantee, the Indenture or
the Securities;

(d)           any furnishing or
acceptance of any security or any guarantee or other liability of any
Subsidiary or any other party, or any release of any security or any guarantee
or other liability of any Subsidiary or any other party, for the Guaranteed
Obligations, or the failure of any security or any guarantee or other liability
of any Subsidiary or any other party or the failure of any Person to perfect
any interest in any collateral;

(e)           any failure,
omission or delay on the part of the Company to conform or comply with any term
of the Indenture or the Securities or any other instrument or agreement
referred to in paragraph (a) above, including, without limitation, failure to
give notice to the Guarantor or the Trustee of the occurrence of an Event of
Default;

(f)            any waiver of the
payment, performance or observance of any of the obligations, conditions,
covenants or agreements contained in the Guarantee, the Indenture or the
Securities, or any other waiver, consent, extension indulgence, compromise
settlement release or other action or inaction under or in respect of the
Guarantee, the Indenture or the Securities or any other instrument or agreement
referred to in paragraph (a) above or any obligation or liability of the
Company or any exercise or non-exercise of any right, remedy, power or
privilege under or in respect of any such instrument or agreement or any such
obligation or liability;

(g)           any failure,
omission or delay on the part of the Trustee or any Holder of Securities to
enforce, assert, exercise or continue exercising any right, power or remedy
conferred on it in the Guarantee or the Indenture, or any such failure,
omission or delay on the part of the Trustee or any Holder of Securities in
connection with the Guarantee, the Indenture or the Securities, or any other
action on the part of the Trustee or any Holder of Securities;

(h)           the assignment of
any right, title or interest of the Trustee or any Holder in this Indenture or
the Securities to any other Person;

(i)            any voluntary or
involuntary bankruptcy, insolvency, suspension of payments, reorganizations,
arrangement, readjustment, assignment for the benefit of creditors, 

 

70

 

receivership,
liquidation or similar proceedings with respect to the Company, the Guarantor
or any other Person or any of their respective properties or creditors, or any
action taken by any trustee, receiver or similar officer or by any court in any
such proceeding;

(j)            any limitation on
the liability or obligations of the Company or any other Person under the
Guarantee, the Indenture or the Securities, or any partial discharge,
cancellation or unenforceability of the Guarantee, the Indenture or the
Securities or any other agreement or instrument referred to in paragraph (c)
above or any term hereof, to the extent not mutually agreed upon by the parties
hereto;

(k)           any merger or
consolidation of the Company or the Guarantor into or with any other
corporation or any sale, lease or transfer of any of the assets of the Company
or the Guarantor to any other Person;

(l)            any change in the
ownership of any shares of Capital Stock of the Guarantor, or any change in the
corporate relationship between the Company and the Guarantor, or any
termination of such relationship, or any change in the corporate existence,
structure, or ownership of the Company;

(m)          any release or
discharge, by operation of law, of the Guarantor from the performance or
observance of any obligation, covenant or agreement contained in the Guarantee,
the Indenture or the Securities;

(n)           any action, failure,
omission or delay on the part of the Trustee or any Holder of Securities that
may impede any Guarantor from acquiring or subrogating such Holders or
Trustee’s rights or benefits; or

(o)           any other
occurrence, circumstance, happening or event whatsoever, whether similar or
dissimilar to the foregoing, whether foreseen or unforeseen, and any other
circumstance that might otherwise constitute a legal defense or discharge of
the liabilities of the Guarantor or that might otherwise limit recourse against
the Guarantor; it being the intent of the Guarantor that its obligations
hereunder shall not be discharged except by payment of all amounts owing
pursuant to this Indenture or the Securities.

The Guarantee
shall continue to be effective or be reinstated, as the case may be, if at any
time any payment or performance with respect to any of the Securities is
rescinded or must otherwise be returned by the Trustee, any Holder or any other
Person upon the insolvency, bankruptcy or reorganization of the Company or
otherwise, all as though such payment or performance had not been made or
occurred.  In the event that any payment
or any part thereof is rescinded or must otherwise be returned, the Securities
shall be reinstated and deemed reduced only by such amount paid and not so
rescinded or returned.  The obligations
of the Guarantor under the Guarantee shall not be subject to reduction,
termination or other impairment by any set-off, recoupment, counterclaim or
defense or for any other reason.

 

71

 

SECTION 1304.     Waivers.

 

The Guarantor
hereby irrevocably waives, to the extent permitted by applicable law:

(a)           promptness, demand
for payment, diligence, presentment, notice of acceptance and any other notice
with respect to any of the Guaranteed Obligations and the Guarantee;

(b)           any requirement that
the Trustee, any Holder or any other Person protect, secure, perfect or insure
any Lien or any property subject thereto or exhaust any right, sue or take any
action against the Company or any other Person, or obtain any relief pursuant
to this Indenture or pursue any other available remedy prior to making a claim
against the Guarantor hereunder;

(c)           all right to trial
by jury in any action, proceeding or counterclaim arising out of or relating to
this Indenture or the Securities;

(d)           filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right
to require a proceeding first against the Company, protest or notice with
respect to such Security or the Indebtedness evidenced thereby and all demands
whatsoever;

(e)           any defense arising
by reason of any claim or defense based upon an election of remedies by the
Trustee or any Holder that in any manner impairs, reduces, releases or
otherwise adversely affects its subrogation, contribution or reimbursement
rights or other rights to proceed against the Company or any other Person;

(f)            any right to which
it may be entitled to have the assets of the Company first be used as payment
of the Company’s or the Guarantor’s obligations hereunder prior to any amounts
being claimed from or paid by the Guarantor hereunder; or

(g)           any duty on the part of the Trustee
or any Holder to disclose to the Guarantor any matter, fact or thing relating
to the business, operation or condition of the Company and its assets now known
or hereafter known by the Trustee or such Holder.

SECTION 1305.     Amendment, Etc.

 

No amendment,
modification or waiver of any provision of this Indenture relating to the
Guarantor or consent to any departure by the Guarantor or any other Person from
any such provision will in any event be effective unless it is signed by the
Guarantor and the Trustee.

 

72

 

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

	
   

  	
  ARCH CAPITAL GROUP (U.S.) INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witnessed in the presence of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [                                               ]

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

IN WITNESS
WHEREOF, ARCH CAPITAL GROUP LTD., as Guarantor, has caused this Indenture to be
duly executed as a deed the day and year first before written.

	
  The common seal
  of   )

  	
   

  
	
  ARCH CAPITAL GROUP
  LTD.      )

  	
   

  
	
  was
  hereunto      )

  	
   

  
	
  affixed in
  the      )

  	
   

  
	
  presence
  of       )

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:Exhibit 10.56

 

Execution Copy

 

AMENDMENT AND WAIVER AGREEMENT NO. 5

TO

CREDIT AGREEMENT

 

AMENDMENT AND WAIVER AGREEMENT NO. 5 dated as of July 3, 2003 (this “Agreement”),
to that certain Credit Agreement (as amended, modified, restated or
supplemented from time to time, the “Credit Agreement”), dated as of
June 20, 2002, made by and among Manufacturers’ Services Limited, a Delaware
corporation (the “Parent”), Manufacturers’ Services Salt Lake City
Operations, Inc., a Delaware corporation (“MSSLCO”), Manufacturers’
Services Western U.S. Operations, Inc., a California corporation (“MSWUSO”),
Manufacturers’ Services Central U.S. Operations, Inc., a Minnesota corporation
(“MSCUSO”), MSL Lowell Operations, Inc., a Delaware corporation (“MSLLO”),
MSL Midwest Operations, Inc., a Delaware corporation (“MSLMO”; and
together with the Parent, MSSLCO, MSWUSO, MSCUSO and MSLLO, each a “Borrower”
and, collectively, the “Borrowers”), the financial institutions party
thereto from time to time (the “Lenders”), Bank of America, N.A., as
administrative agent (in such capacity, together with any successor in such
capacity, the “Administrative Agent”), Credit Suisse First Boston,
Cayman Islands Branch, as syndication agent, General Electric Capital
Corporation, as documentation agent, and Banc of America Securities LLC and
Credit Suisse First Boston, Cayman Islands Branch, as co-book managers and
co-lead arrangers, and the Guarantors party thereto.

 

The Borrowers, the Guarantors, the Majority Lenders and the
Administrative Agent desire to waive and amend certain provisions of the Credit
Agreement.

 

NOW, THEREFORE, subject to the conditions precedent set forth in
Section 4 hereof, the Borrowers, the Guarantors, the Majority Lenders and the
Administrative Agent hereby agree as follows:

 

SECTION 1      CAPITALIZED
TERMS.

 

1.1                                 Capitalized terms used
herein and not defined herein shall have the respective meanings assigned to
such terms in the Credit Agreement.

 

SECTION 2      WAIVERS
TO THE CREDIT AGREEMENT.

 

2.1                                 The Administrative
Agent and the Majority Lenders hereby waive the requirement under clause (iv)
of the defined term Permitted Acquisition as it relates to the acquisition by
the Parent of certain assets of Groupe Ingenico (the “Ingenico Acquisition”);
provided, that (i) the consideration paid by the Parent in respect of
the Ingenico Acquisition shall consist solely of (x) proceeds from the issuance
of the Parent’s Series B Convertible Preferred Stock pursuant to the Series B
Equity Agreements, (y) funds available to or generated by Foreign Subsidiaries
(other than monies loaned or contributed to any of such Foreign Subsidiaries by
the Parent or any of its Domestic Subsidiaries) and (z) common stock of the
Parent

 

 

and (ii) all agreements, documents and instruments executed in
connection with the Ingenico Acquisition shall in form, scope and substance
reasonably satisfactory to the Administrative Agent.

 

2.2                                 Except for the
specific waiver set forth in this Section 2, nothing herein shall be deemed to
be a waiver of any covenant or agreement contained in the Credit Agreement, and
the Borrowers and Guarantors hereby agree that all of the covenants and
agreements contained in the Credit Agreement are hereby ratified and confirmed
in all respects.

 

SECTION 3      AMENDMENTS
TO THE LOAN AND SECURITY AGREEMENT.

 

3.1                                 Annex A to the Credit
Agreement is hereby amended by adding the following defined term in the correct
alphabetical order:

 

“Series B Equity Agreements” means, collectively, (i) the
Registration Rights Agreement, dated on or about July 1, 2003, among the
Parent, U.S. Bancorp Piper Jaffray, RBC Dain Rauscher, Inc. and the buyers
referred to therein, (ii) the Securities Purchase Agreement, dated on or about
July 1, 2003, between the Parent and the buyers referred to therein, (iii) the
Warrant executed by the Parent, dated on or about July 1, 2003, (iv) the
Manufacturers’ Services Limited Private Placement Memorandum, dated on or about
July 1, 2003 and (v) the Certificate of Designations executed by the Parent on
or about July 1, 2003.

 

3.2                                 The definition of
“EBITDA” in Appendix A to the Credit Agreement is hereby amended by adding the
following subclause (w) immediately before subclause (x) appearing in clause
(b) thereof:

 

(w) severance, cash restructuring and other one-time cash charges in
the fiscal quarters of the Parent ending September 30, 2003 and/or December 31,
2003, but solely to the extent any such severance, cash restructuring or other
one-time cash charges are paid with proceeds from the issuance of the Parent’s
Series B Convertible Preferred Stock pursuant to the Series B Equity
Agreements,

 

3.3                                 The definition of
“Equity Agreements” in Appendix A to the Credit Agreement is hereby amended by
(a) deleting the word “and” at the end of clause (iv) thereof and substituting
“,” therefor, (b) deleting the “.” at the end of clause (v) thereof and
substituting “and” therefor and (c) adding a new clause (vi) which read as
follows:

 

(vi) the Series B Equity Agreements.

 

3.4                                 The definition of
“Fixed Charges” in Appendix A to the Credit Agreement is hereby amended by (a)
adding a “(i)” immediately before the word “Debt” appearing in the fourth line
thereof and (b) adding “or (ii) proceeds from the

 

2

 

issuance of the Parent’s Series B Convertible Preferred Stock pursuant
to the Series B Equity Agreements” immediately after the words “such Debt”
appearing in the fifth line thereof.

 

3.5                                 Section 5.2 of the
Credit Agreement is hereby amended by adding a new clause (r) after clause (q)
thereof which reads as follows:

 

(r)  With each of the annual
audited Financial Statements delivered pursuant to Section 5.2(a) and
each of the quarterly Financial Statements delivered pursuant to Section
5.2(b), a certificate of the chief financial officer, chief accounting
officer or treasurer of the Parent setting forth the aggregate amount of cash
proceeds from issuance of the Parent’s Series B Convertible Preferred Stock
used by the Parent (including any such proceeds contributed or loaned by the
Parent to any Subsidiary) during the period covered in such Financial
Statements (in the case of each of the quarterly Financial Statements delivered
pursuant to Section 5.2(b)) and for the fiscal quarter of the Parent
ending on the last day of the Fiscal Year covered in such Financial Statements
(in the case of each of the Financial Statements delivered pursuant to Section 5.2(a))
and the uses of such cash proceeds by the Parent or any of its Subsidiaries
during such period.

 

3.6                                 Section 7.10 of the
Credit Agreement is hereby amended by deleting “270 days” where it appears in
the first line thereof and substituting “450 days” therefor.

 

3.7                                 Section 7.15(f) of the
Credit Agreement is hereby amended by adding “and Debt permitted by clause (n)
below” after the words “Closing Date” appearing in the parenthetical in clause
(ii) thereof.

 

3.8                                 Section 7.15 of the
Credit Agreement is hereby further amended by (a) deleting the word “and” at
the end of clause (1) thereof, (b) deleting the “.” at the end of clause (m)
thereof and substituting “; and” therefor” and (c) adding a new clause (n)
which read as follows:

 

(n)  unsecured Debt of any
Foreign Subsidiary to the Parent representing loans to Foreign Subsidiaries of
the net cash proceeds received by the Parent from the issuance of its Series B
Convertible Preferred Stock pursuant to the Series B Equity Agreements.

 

3.9                                 Section 7.33 of the
Credit Agreement is hereby amended by deleting “270 days after the Closing
Date” where it appears in clause (i) thereof and substituting “October 30, 2003”
therefor.

 

SECTION 4      CONDITIONS
PRECEDENT.  This Agreement shall
become effective on such date as the following conditions shall have been
satisfied in full:

 

3

 

4.1                                 Counterparts of this
Agreement executed by the Borrowers, the Guarantors, the Majority Lenders and
the Administrative Agent shall have been delivered to the Administrative Agent.

 

4.2                                 The Administrative
Agent shall have received a copy, certified by a Responsible Officer of the
Parent as true, correct and complete, of the Series B Equity Agreements as
originally executed and delivered, together with all schedules and exhibits
thereto, and every other agreement, instrument and document entered into or
executed in connection therewith, which in each case shall be in form, scope
and substance satisfactory to the Administrative Agent.

 

4.3                                 The Borrowers shall
have paid to the Administrative Agent, for the ratable benefit of the Lenders
who have delivered to the Administrative Agent an executed signature page to
this Agreement prior to 2:00 p.m. on July 3, 2003, an amendment fee in the
amount of $150,000.

 

SECTION 5      ADDITIONAL
AGREEMENT.

 

5.1                                 The Administrative
Agent, the Majority Lenders, the Borrowers and the Guarantors hereby agree that
the items listed in Section 4 of Waiver and Undertaking Agreement No. 3 to
Credit Agreement, dated as of February12, 2003, among the Administrative Agent,
the Majority Lenders, the Majority Revolving Lenders, the Majority Term
Lenders, the Borrowers and the Guarantors shall be satisfied on or prior to
September 15, 2003 (and the Borrowers and Guarantors agree that the failure to
satisfy any of such items on or prior to September 15, 2003 shall be an Event
of Default).

 

SECTION 6.     MISCELLANEOUS

 

6.1                                 Each of the Borrowers
reaffirms and restates the representations and warranties set forth in Article
6 of the Credit Agreement and all such representations and warranties shall be
true and correct on the date hereof with the same force and effect as if made
on such date (except insofar as such representation and warranties relate
expressly to an earlier date, in which case such representations and warranties
shall be true and correct as of such earlier date).  Each of the Borrowers and Guarantors represents and warrants
(which representations and warranties shall survive the execution and delivery
hereof) to the Administrative Agent and the Lenders that:

 

(a)           It
has the corporate power and authority to execute, deliver and carry out the
terms and provisions of this Agreement and has taken or caused to be taken all
necessary corporate action to authorize the execution, delivery and performance
of this Agreement;

 

4

 

(b)           No
consent of any other person (including, without limitation, shareholders or
creditors of any Borrower or Guarantor), and no action of, or filing with any
governmental or public body or authority is required to authorize, or is
otherwise required in connection with the execution, delivery and performance
of this Agreement;

 

(c)           This
Agreement and the other instruments and documents contemplated hereby have been
duly executed and delivered by a duly authorized officer on behalf of such
party, and constitute a legal, valid and binding obligation of such party
enforceable against such party in accordance with its terms, subject to
bankruptcy, reorganization, insolvency, moratorium and other similar laws
affecting the enforcement of creditors’ rights generally and the exercise of
judicial discretion in accordance with general principles of equity; and

 

(d)           The
execution, delivery and performance of this Agreement and the other instruments
and documents contemplated hereby will not violate any law, statute or
regulation, or any order or decree of any court or governmental
instrumentality, or conflict with, or result in the breach of, or constitute a
default under any contractual obligation of such party.

 

6.2                                 Except as herein
expressly amended or waived, nothing herein shall be deemed to be a waiver of
or amendment to any covenant or agreement contained in the Credit Agreement,
and each Borrower and Guarantor hereby agrees that all of the covenants and
agreements contained in the Credit Agreement and the other Loan Documents are
hereby ratified and confirmed in all respects and shall remain in full force
and effect in accordance with their respective terms.

 

6.3                                 All references to the
Credit Agreement in the Credit Agreement or any other Loan Document and the
other documents and instruments delivered pursuant to or in connection
therewith shall mean the Credit Agreement as modified hereby and as the Credit
Agreement may in the future be amended, restated, supplemented or modified from
time to time.

 

6.4                                 This Agreement may be
executed by the parties hereto individually or in combination, in one or more
counterparts, each of which shall be an original and all of which shall
constitute one and the same agreement.

 

6.5                                 Delivery of an
executed counterpart of a signature page by telecopier shall be effective as
delivery of a manually executed counterpart.

 

5

 

6.6                                 This Agreement shall
be governed by, and construed and interpreted in accordance with, the laws of
the State of New York.

 

6.7                                 The parties hereto
shall, at any time and from time to time following the execution of this
Agreement, execute and deliver all such further instruments and take all such
further action as may be reasonably necessary or appropriate in order to carry
out the provisions of this Agreement.

 

[Remainder of page intentionally left blank]

 

6

 

IN WITNESS WHEREOF, the parties have entered into this Agreement on the
date first above written.

 

	
   

  	
  “BORROWERS”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES LIMITED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES SALT LAKE

  CITY OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES WESTERN

  U.S. OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES CENTRAL U.S.

  OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL LOWELL OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL MIDWEST OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  

 

 

	
   

  	
  “GUARANTORS”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES LIMITED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES SALT LAKE

  CITY OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES WESTERN

  U.S. OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS’ SERVICES CENTRAL U.S.

  OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL LOWELL OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL MIDWEST OPERATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL SPV SPAIN, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  

 

 

	
   

  	
  MSL HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Lannan

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “ADMINISTRATIVE AGENT”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as the

  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “REVOLVING LENDERS”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, CAYMAN

  ISLANDS BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  UPS CAPITAL CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  MSL HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “ADMINISTRATIVE AGENT”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as the

  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “REVOLVING LENDERS”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, CAYMAN

  ISLANDS BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  UPS CAPITAL CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

	
   

  	
  MSL HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “ADMINISTRATIVE AGENT”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as the Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “REVOLVING LENDERS”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Hetu

  	
   

  	
  /s/ Doreen B. Welch

  
	
   

  	
  Title:

  	
  ROBERT HETU

  	
   

  	
  DOREEN B. WELCH

  
	
   

  	
   

  	
  DIRECTOR

  	
   

  	
  ASSOCIATE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UPS CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

 

	
   

  	
  MSL HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “ADMINISTRATIVE AGENT”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as the Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “REVOLVING LENDERS”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, CAYMAN

  ISLANDS BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  Its Only Authorized Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UPS CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
									

 

 

	
   

  	
  MSL HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MSL INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “ADMINISTRATIVE AGENT”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as the Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “REVOLVING LENDERS”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, CAYMAN

  ISLANDS BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UPS CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  Sr. Vice President

  	
   

  
							

 

 

	
   

  	
  CONGRESS FINANCIAL CORPORATION

  (CENTRAL)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  FIRST VICE PRESIDENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HSBC BUSINESS CREDIT (USA) INC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ORIX FINANCIAL SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “TERM LENDERS”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WINGATE CAPITAL LTD.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Partnership, Portfolio Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GLB Partners, LP., its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Investment Group, L.L.C., its

  
	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

 

	
   

  	
  CONGRESS FINANCIAL CORPORATION

  (CENTRAL)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HSBC BUSINESS CREDIT (USA) INC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  Vice President.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ORIX FINANCIAL SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “TERM LENDERS”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WINGATE CAPITAL LTD.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Partnership, Portfolio Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GLB Partners, LP., its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Investment Group, L.L.C., its

  
	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

	
   

  	
  CONGRESS FINANCIAL CORPORATION

  
	
   

  	
  (CENTRAL)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC BUSINESS CREDIT (USA) INC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ORIX FINANCIAL SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Title:

  	
  VICE PRESIDENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “TERM LENDERS”

  
	
   

  	
   

  	
   

  
	
   

  	
  WINGATE CAPITAL LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Partnership, Portfolio Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GLB Partners, L.P., its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Investment Group, L.L.C., its

  
	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  CONGRESS FINANCIAL CORPORATION

  
	
   

  	
  (CENTRAL)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC BUSINESS CREDIT (USA) INC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ORIX FINANCIAL SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “TERM LENDERS”

  
	
   

  	
   

  	
   

  
	
   

  	
  WINGATE CAPITAL LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Partnership, Portfolio Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GLB Partners, L.P., its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Citadel Investment Group, L.L.C., its

  
	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Levoyd E. Robinson

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Levoyd E. Robinson,
  CFA

  
	
   

  	
   

  	
  Managing Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]