Document:

Exhibit 4.2

 

SEA
CONTAINERS LTD.,

Issuer,

 

and

 

THE BANK OF NEW
YORK,

Trustee

 

 

INDENTURE

 

Dated as of
               
, 2003

 

 

$
            

 

12 1/2%
Senior Notes

 

due 2009

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE ONE

  DEFINITIONS AND OTHER PROVISIONS
  OF GENERAL APPLICATION

  
	
   

  
	
  Section 101.

  	
  Definitions

  
	
  Section 102.

  	
  Other Definitions

  
	
  Section 103.

  	
  Compliance Certificates and Opinions

  
	
  Section 104.

  	
  Form of Documents Delivered to Trustee

  
	
  Section 105.

  	
  Acts of Holders

  
	
  Section 106.

  	
  Notices, Etc., to Trustee and Company

  
	
  Section 107.

  	
  Notices to Holders; Waiver

  
	
  Section 108.

  	
  Conflict of any Provision of Indenture with
  Trust Indenture Act

  
	
  Section 109.

  	
  Effect of Headings and Table of Contents

  
	
  Section 110.

  	
  Successors and Assigns

  
	
  Section 111.

  	
  Separability Clause

  
	
  Section 112.

  	
  Benefits of Indenture

  
	
  Section 113.

  	
  Governing Law

  
	
  Section 114.

  	
  Legal Holidays

  
	
  Section 115.

  	
  Consent to Jurisdiction and Service of
  Process; Waiver of Jury Trial

  
	
  Section 116.

  	
  Conversion of Currency

  
	
  Section 117.

  	
  No Recourse Against Others

  
	
   

  	
   

  
	
  ARTICLE TWO

  SENIOR NOTE FORMS

  
	
   

  	
   

  
	
  Section 201.

  	
  Forms Generally

  
	
  Section 202.

  	
  Securities Issuable in Global Form

  
	
   

  	
   

  
	
  ARTICLE THREE

  THE SENIOR NOTES

  
	
   

  	
   

  
	
  Section 301.

  	
  Title and Terms

  
	
  Section 302.

  	
  Denominations

  
	
  Section 303.

  	
  Execution, Authentication, Delivery and
  Dating

  
	
  Section 304.

  	
  Temporary Senior Notes

  
	
  Section 305.

  	
  Registration; Registration of Transfer and
  Exchange

  
	
  Section 306.

  	
  Mutilated, Destroyed, Lost and Stolen
  Senior Notes

  
	
  Section 307.

  	
  Payment of Interest; Interest Rights
  Preserved

  
	
  Section 308.

  	
  Persons Deemed Owners

  
	
  Section 309.

  	
  Cancellation

  
	
  Section 310.

  	
  Computation of Interest

  
	
  Section 311.

  	
  CUSIP and CINS Numbers

  
	
   

  	
   

  
	
  ARTICLE FOUR

  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  
	
  Section 401.

  	
  Satisfaction and Discharge of Indenture

  
	
  Section 402.

  	
  Application of Trust Money

  
	
   

  	
   

  
	
  ARTICLE FIVE

  REMEDIES

  
	
   

  	
   

  
	
  Section 501.

  	
  Events of Default

  
	
  Section 502.

  	
  Acceleration of Maturity; Rescission

  

 

i

 

	
  Section 503.

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee

  
	
  Section 504.

  	
  Trustee May File Proofs of Claim

  
	
  Section 505.

  	
  Trustee May Enforce Claims Without
  Possession of Senior Notes

  
	
  Section 506.

  	
  Application of Money Collected

  
	
  Section 507.

  	
  Limitation on Suits

  
	
  Section 508.

  	
  Unconditional Right of Holders to Receive
  Principal, Premium and Interest

  
	
  Section 509.

  	
  Restoration of Rights and Remedies

  
	
  Section 510.

  	
  Rights and Remedies Cumulative

  
	
  Section 511.

  	
  Delay or Omission Not Waiver

  
	
  Section 512.

  	
  Control by Holders

  
	
  Section 513.

  	
  Waiver of Past Defaults

  
	
  Section 514.

  	
  Undertaking for Costs

  
	
  Section 515.

  	
  Waiver of Stay, Extension or Usury Laws

  
	
   

  	
   

  
	
  ARTICLE SIX

  THE TRUSTEE

  
	
   

  	
   

  
	
  Section 601.

  	
  Notice of Defaults

  
	
  Section 602.

  	
  Certain Rights of Trustee

  
	
  Section 603.

  	
  Not Responsible for Recitals or Issuance of
  Senior Notes

  
	
  Section 604.

  	
  May Hold Senior Notes

  
	
  Section 605.

  	
  Money Held in Trust

  
	
  Section 606.

  	
  Compensation and Reimbursement

  
	
  Section 607.

  	
  Conflicting Interests

  
	
  Section 608.

  	
  Corporate Trustee Required; Eligibility

  
	
  Section 609.

  	
  Resignation and Removal; Appointment of
  Successor

  
	
  Section 610.

  	
  Acceptance of Appointment by Successor

  
	
  Section 611.

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  
	
  Section 612.

  	
  Preferential Collection of Claims Against
  Company

  
	
   

  	
   

  
	
  ARTICLE SEVEN

  HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

  
	
   

  	
   

  
	
  Section 701.

  	
  Disclosure of Names and Addresses of Holders

  
	
  Section 702.

  	
  Reports by Trustee

  
	
  Section 703.

  	
  Reports by Company

  
	
   

  	
   

  
	
  ARTICLE EIGHT

  CONSOLIDATION, MERGER,
  CONVEYANCE, TRANSFER OR LEASE

  
	
   

  	
   

  
	
  Section 801.

  	
  Company May Consolidate, Etc., Only on
  Certain Terms

  
	
  Section 802.

  	
  Successor Substituted

  
	
   

  	
   

  
	
  ARTICLE NINE

  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  
	
  Section 901.

  	
  Supplemental Indentures Without Consent of
  Holders

  
	
  Section 902.

  	
  Supplemental Indentures With Consent of
  Holders

  
	
  Section 903.

  	
  Execution of Supplemental Indentures

  
	
  Section 904.

  	
  Effect of Supplemental Indentures

  
	
  Section 905.

  	
  Conformity with Trust Indenture Act

  
	
  Section 906.

  	
  Reference in Senior Notes to Supplemental
  Indentures

  

 

ii

 

	
  ARTICLE TEN

  COVENANTS

  
	
   

  	
   

  
	
  Section 1001.

  	
  Payment of Principal, Premium, Interest and
  Additional Amounts

  
	
  Section 1002.

  	
  Maintenance of Office or Agency

  
	
  Section 1003.

  	
  Money for Senior Note Payments to Be Held
  in Trust; Designation of Paying Agent

  
	
  Section 1004.

  	
  Corporate Existence

  
	
  Section 1005.

  	
  Payment of Taxes and Other Claims

  
	
  Section 1006.

  	
  Maintenance of Properties

  
	
  Section 1007.

  	
  Limitation on Indebtedness

  
	
  Section 1008.

  	
  Limitation on Restricted Payments

  
	
  Section 1009.

  	
  Transactions with Affiliates

  
	
  Section 1010.

  	
  Restriction on Preferred Shares of
  Subsidiaries

  
	
  Section 1011.

  	
  Limitation on Dividends and Other Payment
  Restrictions Affecting Subsidiaries

  
	
  Section 1012.

  	
  Purchase of Senior Notes upon Change of
  Control

  
	
  Section 1013.

  	
  Disposition of Proceeds of Asset Sales

  
	
  Section 1014.

  	
  Conduct of Business

  
	
  Section 1015.

  	
  Maintenance of Consolidated Tangible Net
  Worth

  
	
  Section 1016.

  	
  Statement as to Compliance; Notice of
  Default; Reporting Requirements

  
	
  Section 1017.

  	
  Waiver of Certain Covenants

  
	
  Section 1018.

  	
  Termination of Certain Covenants

  
	
   

  	
   

  
	
  ARTICLE ELEVEN

  REDEMPTION OF SENIOR NOTES

  
	
   

  	
   

  
	
  Section 1101.

  	
  Right of Redemption; Optional Tax
  Redemption

  
	
  Section 1102.

  	
  Applicability of Article

  
	
  Section 1103.

  	
  Election to Redeem; Notice to Trustee

  
	
  Section 1104.

  	
  Selection by Trustee of Senior Notes to Be
  Redeemed

  
	
  Section 1105.

  	
  Notice of Redemption

  
	
  Section 1106.

  	
  Deposit of Redemption Price

  
	
  Section 1107.

  	
  Senior Notes Payable on Redemption Date

  
	
  Section 1108.

  	
  Senior Notes Redeemed in Part

  
	
   

  	
   

  
	
  ARTICLE TWELVE

  DEFEASANCE

  
	
   

  	
   

  
	
  Section 1201.

  	
  Defeasance and Discharge

  
	
  Section 1202.

  	
  Conditions to Defeasance

  
	
  Section 1203.

  	
  Defeasance of Certain Obligations

  
	
  Section 1204.

  	
  Deposited Money and U.S. Government
  Obligations to Be Held in Trust; Other Miscellaneous Provisions

  
	
  Section 1205.

  	
  Reinstatement

  
	
  Exhibit A—

  	
  Form of Senior Note

  

 

iii

 

Reconciliation
and tie between Trust Indenture Act

of 1939 and
This Indenture(1)

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture  Section

  
	
   

  	
   

  	
   

  	
   

  
	
  § 310

  	
  (a)(1)

  	
   

  	
  608

  
	
   

  	
  (a)(2)

  	
   

  	
  608

  
	
   

  	
  (b)

  	
   

  	
  607, 609

  
	
  § 312

  	
  (c)

  	
   

  	
  701

  
	
  § 314

  	
  (a)

  	
   

  	
  703

  
	
   

  	
  (a)(4)

  	
   

  	
  1014

  
	
   

  	
  (c)(1)

  	
   

  	
  103

  
	
   

  	
  (c)(2)

  	
   

  	
  103

  
	
   

  	
  (e)

  	
   

  	
  103

  
	
  § 315

  	
  (b)

  	
   

  	
  601

  
	
  § 316

  	
  (a)(last sentence)

  	
   

  	
  101

  (“Outstanding”)

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  502, 512

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  513

  
	
   

  	
  (b)

  	
   

  	
  508

  
	
   

  	
  (c)

  	
   

  	
  105

  
	
  § 317

  	
  (a)(1)

  	
   

  	
  503

  
	
   

  	
  (a)(2)

  	
   

  	
  504

  
	
  § 318

  	
  (a)

  	
   

  	
  108

  
	
   

  	
   

  	
   

  	
   

  

 

(1)                                  This reconciliation and tie shall not, for any
purpose, be deemed to be part of the Indenture.

 

iv

 

INDENTURE, dated as of
                    ,
2003, between SEA CONTAINERS LTD., a company limited by shares
incorporated in the Islands of Bermuda under the Companies (Incorporation by
Registration) Act 1970 (hereinafter called the “Company”), and THE BANK OF NEW
YORK, a New York banking corporation, trustee (hereinafter called the
“Trustee”).

 

RECITALS OF THE
COMPANY

 

The Company has duly authorized
the creation of and issuance of 12 1/2% Senior Notes due
2009 (herein called the “Senior Notes”) of substantially the tenor and amount
hereinafter set forth, and to provide therefor the Company has duly authorized
the execution and delivery of this Indenture.

 

This Indenture is subject to the
provisions of the Trust Indenture Act of 1939, as amended, that are required to
be part of this Indenture and shall, to the extent applicable, be governed by
such provisions.

 

All things necessary have been
done to make the Senior Notes, when executed by the Company and authenticated
and delivered hereunder and duly issued by the Company, the valid obligations
of the Company and to make this Indenture a valid agreement of the Company,
each in accordance with their respective terms.

 

NOW, THEREFORE, THIS INDENTURE
WITNESSETH:

 

For and in consideration of the
premises and the purchase of the Senior Notes by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Senior Notes, 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:

 

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

 

(b)                                 all other terms used herein and not defined in
this Article or in other Articles of this Indenture which are defined in the
Trust Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;

 

(c)                                  all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with Generally Accepted
Accounting Principles;

 

(d)                                 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.

 

Certain terms, used principally
in Articles Five and Ten, are defined in those Articles.

 

“Additional Amounts” has the
meaning set forth in Section 1001(b).

 

“Affiliate” means (i) any
Person directly or indirectly controlling or controlled by, or under direct or
indirect common control with, the Company, (ii) each executive officer or
director of the Company, (iii) any spouse, immediate family member or
other relative who has the same principal residence as any Person described in
clause (i) or (ii) above, (iv) any trust in which any such
Persons described in clauses (i) through (iii) above have a
substantial beneficial interest and (v) any corporation or other
organization of which any such Persons described in clauses (i) through
(iv) above collectively own more than 50% of the equity of such entity.
For purposes of this definition, beneficial ownership of 10% or more of voting
common equity (on a fully diluted basis) or warrants to purchase such equity
(whether or not currently exercisable) of a Person shall be deemed to be
control of such Person.

 

 

“Agent Members” has the meaning
set forth in Section 305.

 

“Asset Acquisition” means
(i) any capital contribution (by means of transfers of cash or other
property to others or payments for property or services for the account or use
of others, or otherwise), or purchase or acquisition of Capital Stock, by the
Company or any Subsidiary of the Company in any other Person, in either case,
pursuant to which such Person shall become a Subsidiary or shall be merged with
or into the Company or any Subsidiary or (ii) any acquisition by the
Company or any Subsidiary of the Company of the assets of any Person which
constitute substantially all of an operating unit or business of such Person,
provided no such capital contribution or purchase or acquisition of Capital
Stock or acquisition of assets shall constitute an “Asset Acquisition” unless
financial statements (including, without limitation, an income statement,
balance sheet and statement of cash flows) prepared and audited by accountants
nationally recognized in the relevant country in accordance with the relevant
accounting principles with respect to such Person, operating unit or business,
are delivered to the Trustee.

 

“Asset Sale” means any sale,
issuance, conveyance, transfer, lease or other disposition (including, without
limitation, by way of merger, consolidation or sale-leaseback) to any Person
other than the Company or a Subsidiary of the Company, in one or a series of
related transactions, of (a) any Capital Stock of any Subsidiary of the
Company; (b) all or substantially all of the properties and assets of any
division or line of business of the Company or any Subsidiary of the Company;
or (c) any other properties or assets of the Company or any Subsidiary of
the Company other than, in the case of this clause (c), the disposition of
such properties or assets in the ordinary course of business.

 

“Average Life to Stated
Maturity” means, as of the date of determination, with respect to any
Indebtedness, the quotient obtained by dividing (i) the sum of the
products of (a) the number of years from the date of determination to the
date or dates of each successive scheduled principal payment of such
Indebtedness (including scheduled redemption and similar payments with respect
to Redeemable Capital Stock) multiplied by (b) the amount of each such
principal (or redemption or similar) payment by (ii) the sum of all such
principal (or redemption or similar) payments.

 

“Board of Directors” means the
board of directors of the Company.

 

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

 

“Business Day” means each
Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which
banking institutions in New York City or London are authorized or obligated by
law, regulation or executive order to close.

 

“Capital Lease Obligation” of
any Person means any obligations (including, without limitation, for the
payment of rent, hire or other remuneration) of such Person and its
Subsidiaries on a consolidated basis under any leases, charter parties or other
arrangements conveying the right to use any property (whether real, personal or
mixed) which, in accordance with GAAP, is required to be recorded as a
capitalized lease obligation.

 

“Capital Stock” of any Person
means any and all shares, interests, participations, or other equivalents
(however designated) of such Person’s capital stock whether now outstanding or
issued after the date of this Indenture.

 

“Cash Equivalents” means
(a) securities issued or directly and fully guaranteed or insured by the
United States, the United Kingdom or other governments whose securities are
readily marketable in London or New York City or any agency or instrumentality
thereof (provided that the full faith and credit of such government is pledged
in support thereof) having maturities of not more than one year

 

2

 

from the date of acquisition
and having the highest rating from either of Standard & Poor’s Credit
Market Services, a division of the McGraw-Hill Companies, or Moody’s Investors
Service, Inc., (b) time deposits, certificates of deposit and bankers’
acceptances issued in London or in New York City by any commercial bank, or any
subsidiary or branch thereof, which bank is of recognized standing and has, on
a consolidated basis, capital, surplus and undivided profits in excess of
$300,000,000 or a Moody’s Bank Credit Service rating for short-term bank
deposits of at least P-2, with maturities of not more than one year from the
date of acquisition by such Person, (c) repurchase obligations with a term
of not more than 90 days for underlying securities of the types described
in clause (a) above entered into with any bank meeting the qualifications
specified in clause (b) above, (d) commercial paper issued by any
Person and having one of the top two investment ratings from either Standard &
Poor’s Credit Market Services, a division of the McGraw-Hill Companies, or
Moody’s Investors Service, Inc. and in each case maturing not more than
270 days after the date of acquisition by such Person and
(e) investments in money market funds substantially all of whose assets
are comprised of securities of the types described in clauses (a) through
(d) above.

 

“Cash Flow Coverage Ratio” for
any Reference Period means the ratio of (a) SCL’s Consolidated Cash Flow
for such Reference Period to (b) SCL’s Consolidated Fixed Charges for such
Reference Period; provided that for purposes of calculating SCL’s Consolidated
Fixed Charges, (x) Consolidated Interest Expense shall be SCL’s actual
Consolidated Interest Expense during such Reference Period, adjusted by (A) increasing
such actual Consolidated Interest Expense by the amount attributable to new
Indebtedness Incurred at any time from the beginning of such Reference Period
through the Transaction Date, on a pro forma basis as if such Indebtedness had
been Incurred on the first day of such Reference Period and had been
outstanding during all such Reference Period; and (B) decreasing such
actual Consolidated Interest Expense by the amount attributable to any
Indebtedness repaid at any time from the beginning of such Reference Period
through the Transaction Date, on a pro forma basis as if such Indebtedness had
been repaid on the first day of such Reference Period and had been repaid
during all such Reference Period; and (y) the aggregate amount of cash
dividends and other distributions paid or accrued on Included Stock shall be
the amount actually paid and accrued during such Reference Period, adjusted by
(A) increasing such actual amount by the amount attributable to new
Included Stock issued at any time from the beginning of such Reference Period
to the Transaction Date, on a pro forma basis as if such Included Stock had
been issued on the first day of such Reference Period and had been outstanding
during all such Reference Period; and (B) decreasing such actual amount by
the amount attributable to any Included Stock repaid, redeemed or acquired or
converted into Capital Stock (other than Redeemable Capital Stock) at any time
from the beginning of such Reference Period through the Transaction Date, on a
pro forma basis as if such Included Stock had been repaid, redeemed or acquired
or converted into Capital Stock (other than Redeemable Capital Stock) on the
first day of such Reference Period and had been repaid, redeemed or acquired or
converted into Capital Stock (other than Redeemable Capital Stock) during all
such Reference Period. “Consolidated Cash Flow” and “Consolidated Fixed
Charges” shall be calculated after giving effect on a pro forma basis for such
period to any Asset Sales or Asset Acquisitions occurring during the period
commencing on the first day of such period to and including the Transaction
Date, as if such Asset Sale or Asset Acquisition had occurred on the first day
of such period.

 

“Change of Control” means the
occurrence of any of the following events: (a) any “person” or “group” (as
such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other
than Permitted Holders, is or becomes the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, except that a person shall
be deemed to have “beneficial ownership” of all securities that such person has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than 33 1/3%
of the aggregate voting power of all classes of Voting Stock of the Company;
(b) the Company amalgamates or consolidates with, or merges with or into,
another Person or sells, assigns, conveys, transfers, leases or otherwise
disposes of all or substantially all of its assets to any Person, or any Person
amalgamates or consolidates with, or merges

 

3

 

with or into, the Company, in
any such event pursuant to a transaction in which the outstanding Voting Stock
of all classes of the Company is converted into or exchanged for cash,
securities or other property, other than any such transaction where
(i) the outstanding Voting Stock of each class of the Company is converted
into or exchanged for (1) Voting Stock (other than Redeemable Capital Stock)
of the surviving or transferee company or corporation or (2) cash,
securities and other property in an amount which could be paid by the Company
as a Restricted Payment under this Indenture and (ii) the holders of each
class of the Voting Stock of the Company immediately prior to such transaction
own, directly or indirectly, not less than a majority of each class of the
Voting Stock of the surviving or transferee company or corporation immediately
after such transaction; (c) at any time, individuals who constituted the
Board of Directors on the date of this Indenture (together with any new
directors whose election by such Board of Directors or whose nomination for
election by the shareholders of the Company was approved by a vote of 66 2/3%
of the directors then still in office who were either directors on the date of
this Indenture or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of
Directors then in office; or (d) any order, judgment or decree shall be
entered against the Company decreeing the dissolution or liquidation of the
Company and shall not be discharged for a period in excess of 60 days
after the date on which any period for appeal has expired and during which a stay
of enforcement of such judgment, order or decree has not been in effect.

 

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

 

“Company” means the Person named
as the “Company” in the first paragraph of this instrument, until a successor
Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person. To the
extent necessary to comply with the requirements of the provisions of Sections
310 through 317 of the Trust Indenture Act as they are applicable to the
Company, the term “Company” shall include any other obligor with respect to the
Senior Notes for the purposes of complying with such provisions.

 

“Company Order” or “Company
Request” means a written request or order signed in the name of the Company
(i) by its President, any Executive Vice President, any Senior Vice
President, or any Vice President and (ii) by its Secretary or any
Assistant Secretary and delivered to the Trustee; provided, however, that such written request or order may be
signed by any two of the officers listed in clause (i) above in lieu of
being signed by one of such officers listed in such clause (i) and one of
the officers listed in clause (ii) above.

 

“Consolidated Cash Flow” with
respect to any period means Consolidated Net Income plus, to the extent the
following were deducted in determining Consolidated Net Income,
(i) Consolidated Interest Expense, (ii) federal, state, local and
foreign income taxes and (iii) depreciation, amortization and other
non-cash charges for such period (taken as one accounting period).

 

“Consolidated Fixed Charges”
with respect to any period means the aggregate amount of Consolidated Interest
Expense, any capitalized interest, and the aggregate amount of cash dividends
and other distributions paid or accrued on Included Stock, in each case during
such period.

 

“Consolidated Interest Expense”
means, with respect to any period, without duplication, the sum of (i) the
interest expense of a Person and its Subsidiaries for such period as determined
in accordance with GAAP, including, without limitation, (a) any
amortization of debt discount, (b) the net cost under Interest Rate
Agreements (including any amortization of discounts), (c) the interest
portion of any deferred payment obligation, (d) all commissions, discounts
and other fees and charges owed with respect to letters of credit and bankers’
acceptance financing and (e) all accrued interest and (ii) the
interest component of Capital Lease Obligations paid, accrued and/or scheduled
to be paid or accrued

 

4

 

by such Person and its
Subsidiaries during such period, as determined in accordance with GAAP.
Furthermore, in calculating “Consolidated Interest Expense”, (i) interest
on outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall
be deemed to have accrued at a fixed rate per
annum equal to the rate of interest on such Indebtedness in effect
on the Transaction Date; (ii) if interest on any Indebtedness actually
Incurred on the Transaction Date may optionally be determined at an interest
rate based upon a factor of a prime or similar rate, a eurocurrency interbank
offered rate, or other rates, then the interest rate in effect on the
Transaction Date will be deemed to have been in effect during the period; and
(iii) notwithstanding clauses (i) and (ii) above, interest on
Indebtedness determined on a fluctuating basis, to the extent such interest is
covered by agreements relating to Interest Rate Agreements, shall be deemed to
have accrued at the rate per annum
resulting after giving effect to the operation of such agreements. If such
Person or any of its Subsidiaries directly or indirectly guarantees
Indebtedness of a third Person, the above clause shall give effect to the
Incurrence of such guaranteed Indebtedness as if such Person or such Subsidiary
had directly Incurred or otherwise assumed such guaranteed Indebtedness; provided that no effect shall be given to
any such Guaranty of Indebtedness Incurred prior to the date of this Indenture,
except that any interest actually paid by the Company or any Subsidiary
pursuant to any such Guaranty during the period in question shall be included
in computing SCL’s Consolidated Interest Expense for such period.

 

“Consolidated Net Income” with
respect to any period means the consolidated net income (loss), before
dividends on Preferred Shares, for such period of the Company and its
Subsidiaries (after deducting net income attributable to minority interests in
Subsidiaries of the Company) but without giving effect to any extraordinary
gain or loss or gains or losses from sales of assets (other than from sales of
assets determined by the Board of Directors to be in the ordinary course of
business), provided there should
be excluded (i) for purposes of the covenant contained in
Section 1007 hereof, but not for purposes of the covenant contained in
Section 1008 hereof, the net income of any Person (other than a
Subsidiary) in which the Company or any of its consolidated Subsidiaries has an
interest with a third party except to the extent of the amount of dividends or
distributions actually paid to the Company or a Subsidiary during such period,
(ii) for purposes of the covenant contained in Section 1008 hereof,
but not for purposes of the covenant contained in Section 1007 hereof,
except to the extent of the amount of dividends or distributions actually paid
to the Company or one of its Subsidiaries by such Person, the net income of any
Person during such period accrued prior to the date it becomes a Subsidiary of
the Company or is merged into or consolidated with the Company or any of its
Subsidiaries or that Person’s assets are acquired by the Company or any of its
Subsidiaries and (iii) the amount of net income (if positive) of any
Subsidiary which, as a result of the operation of the terms of its charter or
any agreement, instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to the Subsidiary, could not be distributed by such
Subsidiary to the Company through the paying, making or repaying of dividends
or similar distributions, inter–company loans or advances or management
and similar fees.

 

“Consolidated Net Income
Available for Restricted Payments” with respect to any period means the
Consolidated Net Income for such period less dividends and other distributions
made during such period on (x) Preferred Shares (including Preferred
Shares constituting Redeemable Capital Stock) existing on July 1, 1996,
and Preferred Shares issued to refinance such Preferred Shares as permitted by
Section 1008(b)(iv) of this Indenture and (y) Redeemable Capital
Stock issued subsequent to July 1, 1996.

 

“Consolidated Net Worth” means
at any time the sum of the liquidation value of Preferred Shares (other than
Redeemable Capital Stock) and common shareholders’ equity (adjusted for foreign
currency gains or losses subsequent to the December 31 Balance Sheet to the
extent the net amount of such adjustments aggregates in excess of $25,000,000,
as calculated in accordance with Statement of Financial Accounting Standards
No. 52 of the Financial Accounting Standards Board).

 

5

 

“Consolidated Revenue” means for
any period the total revenues of the Company and its Subsidiaries, determined
in accordance with GAAP.

 

“Consolidated Tangible Net
Worth” means at any time Consolidated Net Worth less the sum of (i) the
net book amount of all assets, after deducting any reserves applicable thereto,
which would be treated as intangibles under GAAP and (ii) any write-up in
the book value of any asset on the books of the Company or any Subsidiary
resulting from a revaluation thereof subsequent to the date of this Indenture
(other than the write-up of book value of an asset made in accordance with
GAAP), all as presented on SCL’s consolidated financial statements.

 

“Container Business” means all
aspects of the business of (a) acquiring, by purchase, lease or otherwise,
manufacturing, improving, using, maintaining, repairing, leasing, selling and
otherwise disposing of marine and intermodal cargo containers and flat racks of
all kinds, chassis for the transportation of containers and flat racks by road
or railway and cranes for the handling of such containers and flat racks,
(b) designing, holding, acquiring by purchase, charter or otherwise, of
vessels for the transportation of such containers, flat racks and chassis by
sea or on inland waterways and improving, outfitting, using, maintaining,
repairing, chartering to third Persons and selling or otherwise disposing of
such vessels, (c) acquiring, either alone or jointly with one or more
Affiliates by purchase, lease or otherwise, real property or interests therein
principally for use by the Company or any Subsidiary engaged in the Container
Business as office space, terminals or facilities for the manufacturing or
repairing of containers and related equipment and constructing buildings and
other improvements thereon and, to the extent incidental to such principal use,
the selling, leasing to third Persons or otherwise disposing of remaining
unused real property and/or unused improvements thereon, (d) providing
insurance against casualty risks of all kinds, and against personal liabilities
for injury to third persons or their property, occurring or arising in the
conduct of the business described in preceding clauses (a) through (c),
(e) providing or arranging financing for the aforesaid activities and
(f) activities incidental to or integrated with those mentioned above.

 

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

 

“Currency Agreement” means any
foreign exchange contract, currency swap agreement or other similar agreement
or arrangements designed to protect the Company or any Subsidiary against
fluctuations in currency values.

 

“December 31 Balance Sheet”
means the consolidated balance sheet of the Company and its Subsidiaries as at
December 31, 1995, as included in the Company’s Annual Report on
Form 10-K for the year ended December 31, 1995.

 

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

 

“Depositary” means The
Depository Trust Company and its nominees and successors.

 

“Event of Default” has the
meaning specified in Article Five.

 

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

 

“Fair Market Value” means, with
respect to any asset or property, the sale value that would be obtained in an
arm’s length transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer.

 

“Federal Bankruptcy Code” means
the Bankruptcy Reform Act of 1978, as codified in Title 11 of the United States
Code, as amended from time to time.

 

6

 

“Generally Accepted Accounting
Principles” or “GAAP” means generally accepted accounting principles in the
United States, consistently applied, as in effect as of the date of this
Indenture including, without limitation, those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession.

 

“Global Security” means a
certificate that evidences all or part of the Senior Notes issued to the
Depositary in accordance with Section 303 and bearing the legend set out
in Exhibit A.

 

“Group Loan Agreements” means
(i) the Loan Agreement, dated as of July 24, 1998 among the Company
and certain of its Subsidiaries, as borrowers, and the Banks named therein,
(ii) the Amended and Restated Indenture dated as of July 16, 2001, between
The Bank of New York, as trustee, and Sea Containers SPC Ltd., and
(iii) the Amended and Restated Loan Agreement dated as of July 16,
2001 between the Company and First Union National Bank, and includes any
amendments, renewals, extensions or refundings of such agreements.

 

“Guaranty” means, as applied to
any obligation, (1) a guaranty (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner, of any part or all of such obligation and (2) an
agreement, direct or indirect, contingent or otherwise, the practical effect of
which is to assure in any way the payment or performance (or payment of damages
in the event of non-performance) of any part or all of such obligation,
including, without limiting the foregoing, the payment of amounts drawn down by
letters of credit.

 

“Holder” means the registered
holder of any Senior Note.

 

“Included Stock” means
(i) Preferred Shares (including Redeemable Capital Stock) of the Company
or any of its Subsidiaries outstanding on the date of this Indenture and
Preferred Shares issued to refinance such Preferred Shares as permitted by
Section 1008(b)(iv) of this Indenture and (ii) Redeemable
Capital Stock of the Company or any of its Subsidiaries issued after the date
of this Indenture.

 

“Incur” means, with respect to
any Indebtedness, to incur, create, issue, assume or directly or indirectly
Guaranty or otherwise in any manner become directly or indirectly liable for or
with respect to, or become responsible for, the payment of, contingently or
otherwise, such Indebtedness; provided,
however, that neither the accrual of interest (whether such interest
is payable in cash or kind) nor the accretion of original issue discount shall
be considered an Incurrence of Indebtedness.

 

“Indebtedness” of any Person
means, at any date, without duplication, (i) all obligations of such
Person for borrowed money, (ii) all obligations of such Person evidenced
by bonds, notes, debentures or other similar instruments, (iii) all obligations
of such Person in respect of letters of credit or bankers’ acceptances or other
similar instruments (or reimbursement obligations with respect thereto),
(iv) all obligations of such Person as lessee under Capital Lease
Obligations, (v) all Indebtedness of others secured by a Lien on any asset
of such Person, whether or not such Indebtedness is assumed by such Person,
(vi) all Indebtedness of others Guarantied by such Person, (vii) all
Redeemable Capital Stock valued at the mandatory liquidation preference or
redemption price plus accrued and unpaid dividends, (viii) to the extent
not otherwise included, obligations under Currency Agreements and Interest Rate
Agreements and (ix) all obligations of such Person to pay the deferred and
unpaid purchase price of property or services, which purchase price is due more
than six months after the date of placing such property in service or taking
delivery and title thereto or the completion of such services, except trade
payables accrued in the ordinary course of business.

 

“Indenture” means this
instrument as originally executed (including all exhibits and schedules hereto)
and as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions
hereof.

 

7

 

“Interest” means the sum of all
interest, plus any Additional Amounts payable as supplemental interest pursuant
to Section 1001(b).

 

“Interest Payment Date” means
the Stated Maturity of an installment of Interest on the Senior Notes.

 

“Interest Rate Agreements” means
the obligations of any Person pursuant to any arrangement with any other Person
whereby, directly or indirectly, such Person is entitled to receive from time
to time periodic payments calculated by applying either a fixed or floating
rate of interest on a stated notional amount in exchange for periodic payments
made by such Person calculated by applying a fixed or floating rate of interest
on the same notional amount or pursuant to any interest rate protection
agreement, interest rate future, interest rate option or other interest rate
hedge arrangement.

 

“Investment” means, directly or
indirectly, any advance, loan or other extension of credit (other than a
Guaranty) or capital contribution to (by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others) or any purchase or acquisition by such Person of any Capital
Stock, bonds, notes, debentures or other securities issued or owned by, any
other Person.

 

“Investment Grade Ratings” has
the meaning set forth in Section 1018.

 

“Issue Date” means
                       ,
2003, the date on which the Senior Notes are originally issued under this
Indenture.

 

“Lien” means any mortgage,
charge, pledge, lien, privilege, security interest or encumbrance of any kind
(including, without limitation, any conditional sale or other title retention
agreement or lease in the nature thereof, any sale with recourse against the seller
or any Affiliate of the seller, or any agreement to give any security
interest).

 

“Maritime Shipping and Rail
Transport Businesses” means:

 

(a)                                  the Container Business;

 

(b)                                 all aspects of the maritime shipping and ferry
business in lawful trades other than the Container Business, including the
acquisition of the title to or the right to possess and use ships of kinds
other than those designed primarily for use in the Container Business, the
outfitting, furnishing, supplying, management, manning, use, operation,
chartering, sale and other disposition of such ships and the acquisition,
ownership, management and operation of ports and harbor facilities servicing
any such ships;

 

(c)                                  the insurance business (subject to applicable
statutory and regulatory limitations) related to the activities described in
clause (b) above;

 

(d)                                 all aspects of the passenger and freight rail
transport businesses, including the ownership, management, use, operation,
leasing and sale of railroads and railroad franchises and equipment and related
interests in real property, and

 

(e)                                  business and activities incidental to or
integrated with the foregoing.

 

“Material Subsidiary” means, at
any particular time, any Subsidiary of the Company that, together with the
Subsidiaries of such Subsidiary, (a) accounted for more than 10% of the
Consolidated Revenues of the Company and its Subsidiaries for the most recently
completed fiscal year or (b) was the owner of more than 10% of the
consolidated assets of the Company and its Subsidiaries as at the end of such
fiscal year, all as shown on the consolidated financial statements of the
Company and its Subsidiaries for such fiscal year.

 

“Maturity”, when used with
respect to the Senior Notes, means the date on which the principal of the
Senior Notes becomes due and payable as therein or herein provided, whether at
Stated Maturity,

 

8

 

on the Change of Control
Purchase Date, and whether by redemption, declaration of acceleration, change
of control or otherwise.

 

“Minimum Consolidated Tangible
Net Worth” means $175,000,000.

 

“Net Cash Proceeds” means, with
respect to any Asset Sale, the proceeds thereof in the form of cash or Cash
Equivalents including payments in respect of deferred payment obligations when
received in the form of cash or Cash Equivalents (except to the extent that
such obligations are financed or sold with recourse to the Company or any
Subsidiary of the Company) net of (i) brokerage commissions and other fees
and expenses (including fees and expenses of legal counsel and investment
bankers) related to such Asset Sale, (ii) provisions for all taxes payable
as a result of such Asset Sale, (iii) amounts required to be paid to any
Person (other than the Company or any Subsidiary of the Company) owning a
beneficial interest in the assets subject to the Asset Sale and
(iv) appropriate amounts to be provided by the Company or any Subsidiary
of the Company, as the case may be, as a reserve required in accordance with
Generally Accepted Accounting Principles consistently applied against any
liabilities associated with such Asset Sale and retained by the Company or any
Subsidiary of the Company, as the case may be, after such Asset Sale,
including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under
any indemnification obligations associated with such Asset Sale.

 

“OEHL” means Orient-Express
Hotels Ltd., a Bermuda company 47%-owned by the Company.

 

“Officers’ Certificate” means a
certificate signed by (i) the President, any Executive Vice President, any
Senior Vice President or any Vice President of the Company and (ii) the
Secretary or any Assistant Secretary of the Company and delivered to the Trustee;
provided, however, that such
certificate may be signed by two of the officers listed in clause (i)
above in lieu of being signed by one of such officers listed in such
clause (i) and one of the officers listed in clause (ii) above.

 

“Opinion of Counsel” means a
written opinion of counsel, who may be counsel for the Company, and who shall
be acceptable to the Trustee. Each such opinion shall include the statements
provided for in Trust Indenture Act Section 314(e) to the extent
applicable.

 

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

 

(a)                                  Senior Notes theretofore cancelled by the Trustee
or delivered to the Trustee for cancellation;

 

(b)                                 Senior Notes, or portions thereof, for whose
payment, redemption or purchase, money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Senior
Notes; provided that, if such
Senior Notes 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;

 

(c)                                  Senior Notes, except to the extent provided in
Section 1201, with respect to which the Company has effected defeasance as
provided in Article Twelve; and

 

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

 

9

 

provided, however, that, in determining whether the Holders of the
requisite principal amount of Outstanding Senior Notes have given any request,
demand, direction, consent or waiver hereunder, Senior Notes owned by the
Company or any other obligor upon the Senior Notes or any Affiliate of the
Company or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, direction, consent or waiver, only
Senior Notes which a Responsible Officer of the Trustee actually knows to be so
owned shall be so disregarded. Senior Notes 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
Senior Notes and that the pledgee is not the Company or any other obligor upon
the Senior Notes or any Affiliate of the Company or such other obligor.

 

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

 

“Permitted Holder” means any
wholly owned Subsidiary of the Company, James B. Sherwood or any “group” (as
such term is used in Section 13(d) of the Exchange Act) of which James B.
Sherwood is a member, and any other Person who or which is an heir or legatee
of James B. Sherwood and receives any Voting Stock of the Company from the
estate of James B. Sherwood or the estate of any of the foregoing.

 

“Permitted Indebtedness” means
any of the following Indebtedness of the Company or any Subsidiary, as the case
may be:

 

(i)                                     Indebtedness of the Company or a Subsidiary
outstanding on the date of this Indenture, including but not limited to
Indebtedness under the Group Loan Agreements in amounts equal to or less than
the amounts outstanding on the date of this Indenture;

 

(ii)                                  Indebtedness and obligations of the Company under
the Senior Notes and the obligations relating to the Senior Notes under this
Indenture;

 

(iii)                               Indebtedness of a Subsidiary of the Company to the
Company or another Subsidiary, or of the Company to any Subsidiary;

 

(iv)                              Senior Indebtedness the proceeds of which are used
to acquire or refinance assets used in the Maritime Shipping and Rail Transport
Businesses of the Company; provided
that the aggregate amount of Indebtedness the proceeds of which were used to
acquire or refinance assets used in the Maritime Shipping and Rail Transport
Businesses (whether Incurred pursuant to this provision or any other provision
of this Indenture) shall not exceed 90% of the book value (after giving effect
to related deductions for accumulated depreciation) of all assets used in the
Maritime Shipping and Rail Transport Businesses; and provided further that the aggregate amount of Permitted
Indebtedness Incurred under this clause (iv) from July 1, 1996 (the
date of the indenture providing for the 10 1/2% Senior
Notes) shall not exceed $300,000,000, of which no more than $150,000,000 may be
Incurred in any fiscal year of the Company;

 

(v)                                 Indebtedness of the Company or its Subsidiaries
represented by documentary, insurance or trade letters of credit issued in the
ordinary course of business, and standby letters of credit, the total aggregate
amount of such letters of credit not exceeding an aggregate amount of
$50,000,000 at any one time outstanding;

 

(vi)                              Indebtedness for working capital purposes of the
Company or its Subsidiaries not to exceed $75,000,000 in principal amount at
any one time outstanding;

 

10

 

(vii)                           Indebtedness of the Company or its Subsidiaries
arising as a result of Guaranties by the Company or its Subsidiaries of
Indebtedness of Persons (other than Subsidiaries), which Guaranties are
Incurred after the date of this Indenture and shall not exceed $25,000,000 at
any one time outstanding;

 

(viii)                        Indebtedness of the Company under Currency
Agreements and Interest Rate Agreements, provided
that such agreements do not increase the Indebtedness of the Company or a
Subsidiary outstanding other than as a result of fluctuations in interest rates
or foreign currency exchange rates or by reason of fees, indemnities and
compensation payable thereunder; and

 

(ix)                                Indebtedness (including Redeemable Capital Stock)
used to replace, renew, refinance or refund Indebtedness outstanding on the
date of this Indenture, Permitted Indebtedness Incurred pursuant to
clause (iv) of this definition of Permitted Indebtedness or other
Indebtedness Incurred in accordance with Section 1007 (excluding Permitted
Indebtedness), in a principal amount (or, if such Indebtedness does not require
cash payments prior to maturity, with an original issue price of such
Indebtedness) not to exceed the lesser of (a) the principal amount (or
mandatory liquidation preference, in the case of Redeemable Capital Stock) of
the Indebtedness so replaced, renewed, refinanced or refunded (or, if the
Indebtedness being replaced, renewed, refinanced or refunded was issued with an
original issue discount, the original issue price plus the amortized portion of
the original issue discount to the date that such replacing, renewing,
refinancing or refunding Indebtedness was Incurred) or (b) the principal
amount (or mandatory liquidation preference, in the case of Redeemable Capital
Stock) or original issue price plus amortized original issue discount, as the
case may be, of such Indebtedness as of the date of this Indenture, plus any
prepayment penalties and premiums, accrued and unpaid interest on the
Indebtedness so replaced, renewed, refinanced or refunded, plus customary fees,
expenses and costs related to the Incurrence of such replacing, renewing,
refinancing or refunding Indebtedness; provided
that, if the Indebtedness being replaced, renewed, refinanced or refunded is
Indebtedness of the Company, such replacing, renewing, refinancing or refunding
shall be Indebtedness of the Company; provided
further that immediately after giving effect to such replacing,
renewing, refinancing or refunding, no Default or Event of Default shall have
occurred and be continuing; and provided
further that Indebtedness used to replace, renew, refinance or
refund Indebtedness of the Company that is pari
passu or subordinated in right of payment to the Senior Notes will
only be permitted if (x) such new Indebtedness is expressly pari passu or subordinated in right of
payment to the Senior Notes at least to the same extent that the Indebtedness
to be replaced, renewed, refinanced or refunded is pari passu or subordinated to the Senior Notes and
(y) the Average Life to Stated Maturity and Stated Maturity of such
Indebtedness exceed the Average Life to Stated Maturity and Stated Maturity,
respectively, of the Senior Notes.

 

For the purpose of determining
the amount of outstanding Indebtedness under any of the foregoing clauses, there
shall be included (A) the principal amount then outstanding that was
originally Incurred pursuant to such clause; (B) any outstanding
Indebtedness Incurred pursuant to clause (ix) to replace, renew, refinance
or refund Indebtedness originally Incurred pursuant to such clause; and
(C) any subsequent replacements, renewals, refinancings or refundings
thereof.

 

“Permitted Investment” means an
Investment which consists of any one or more of the following:

 

(i)                                     Investments in a Subsidiary;

 

(ii)                                  Investments in United States Treasury securities
or other government securities having the highest rating from
Standard & Poor’s Credit Market Services, a division of the
McGraw-Hill Companies, or Moody’s Investors Service, Inc. pledged to
secure collateralized senior notes so long as the entire purchase price for
such securities consists of proceeds from the issuance of such senior notes;

 

(iii)                               Cash Equivalents;

 

11

 

(iv)                              (I) Investments in Persons whose principal business
is one or more aspects of the Maritime Shipping and Rail Transport Businesses
and (II) Investments in other Persons engaged in a business in which SCL
is permitted to be engaged under Section 1014 hereof and with whom the
Company or one of its Subsidiaries, substantially contemporaneously with such
Investment, enters into a management contract to manage the business of such
other Person or a contract pursuant to which the Company or one of its
Subsidiaries leases or charters, or has the right of first refusal to lease or
charter, assets or property of the Company or any of its Subsidiaries to such
other Person, so long as the Board of Directors determines that such Investment
is necessary to obtain the management contract, lease, charter or right of first
refusal; provided that
(x) after giving effect to such Investment, the Company could Incur $1.00
of additional Indebtedness under Section 1007 hereof (which is not
Permitted Indebtedness), and (y) such Investment would not cause the
maximum aggregate amount invested under this clause (iv) at such time to
exceed 20% of SCL’s Consolidated Tangible Net Worth; (in calculating the amount
invested under this clause (iv), such amount shall be reduced by an amount
equal to the net reduction in Investments in any third Person not a Subsidiary
of the Company resulting from payments of interest on Indebtedness, dividends,
repayments of loans or advances, or other transfers of assets, in each case to
the Company or any Subsidiary from any such third Person and by any amount
received by the Company or any Subsidiary from any such third Person pursuant
to any management contract, lease or charter; provided
that such payments (a) were not otherwise included in the Consolidated Net
Income of SCL and (b) do not exceed, in the case of such third Person, the
amount of Investments previously made by the Company or any Subsidiary in such
third Person);

 

(v)                                 Negotiable instruments held for collection;
outstanding travel, moving and other like advances to officers, employees and
consultants; or lease, utility and other similar deposits, in each of the
foregoing cases in the ordinary course of business of the Company or a
Subsidiary, as the case may be;

 

(vi)                              Investments in the Senior Notes; and

 

(vii)                           Investments in equity securities which have been
accepted for trading by a registered securities exchange or automated quotation
system of the United States acquired by the Company or a Subsidiary of the
Company as consideration for the sale of assets by the Company or such Subsidiary;
provided, such securities shall
only be a Permitted Investment until the 180th day following the acquisition
thereof.

 

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

 

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

 

“Preferred Shares” mean, with
respect to any Person, any and all shares, interests, participations or other
equivalents (however designated) of such Person’s preferred or preference stock
whether now outstanding or issued after the date hereof, and includes, without
limitation, all classes and series of preferred or preference stock.

 

“Prospectus” means the
prospectus dated
                    ,
2003, with respect to the Senior Notes.

 

“Redeemable Capital Stock” means
any Capital Stock that, either by its terms, by the terms of any security into
which it is convertible or exchangeable or otherwise, (i) is or upon the
happening of an event or passage of time would be required to be redeemed prior
to the final Stated Maturity of the

 

12

 

Senior Notes, (ii) is
redeemable at the option of the holder thereof at any time prior to such final
Stated Maturity, or (iii) is convertible into or exchangeable for Capital
Stock referred to in clause (i) or (ii) above or Indebtedness having
a scheduled maturity prior to the final Stated Maturity of the Senior Notes, provided that Capital Stock which
otherwise would not constitute Redeemable Capital Stock shall not constitute
Redeemable Capital Stock because it provides for the redemption or acquisition
of such Capital Stock in the event of a change of control of the Company so
long as the definition of change of control in such instrument does not include
a change of control which would not constitute a Change of Control.

 

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

 

“Redemption Price”, when used with
respect to any Senior Note 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 means the
          or
                    
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.

 

“Responsible Officer”, when used
with respect to the Trustee, means any vice president, any assistant secretary,
any assistant treasurer, any trust officer or assistant trust officer or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers or assigned by the Trustee to
administer corporate trust matters at its Corporate Trust Office and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his knowledge of and familiarity with the
particular subject.

 

“SCL” means the Company
collectively with its Subsidiaries.

 

“Senior Indebtedness” means
(i) the principal of, premium, if any, and accrued and unpaid interest
(including all interest accruing subsequent to the commencement of an
insolvency proceeding, or which, but for such commencement, would have accrued,
whether or not such interest is an allowable claim enforceable against the
debtor under the Federal Bankruptcy Code or any similar law) on, and any
regularly accruing fees and reasonable expenses and all other amounts payable
under or in respect of, all Indebtedness of the Company (other than the
Series A Debentures and the Series B Debentures), including letters
of credit (and reimbursement agreements with respect thereto), unless such
Indebtedness, by its terms or by the terms of any agreement pursuant to which
such Indebtedness is issued, is subordinated in right of payment to the Senior
Notes and (ii) modifications, renewals, extensions and refundings
(including permitted increases and refinancings of the existing Indebtedness of
the Company) of any of the foregoing obligations unless the foregoing
obligations or such modifications, renewals, extensions and refundings thereof
provide by their terms, or by the terms of any agreement or instrument pursuant
to which such Indebtedness is issued, that such Indebtedness shall be subordinated
in right of payment to the Senior Notes. Notwithstanding the foregoing, “Senior
Indebtedness” shall not include (i) Indebtedness evidenced by the
Series A Debentures or the Series B Debentures,
(ii) Indebtedness that is subordinated or junior in right of payment to
any Indebtedness of the Company, (iii) any liability for federal, state,
provincial, local or other taxes owed or owing by the Company,
(iv) Indebtedness of the Company to a Subsidiary of the Company or any
other Affiliate of the Company or any of such Affiliate’s subsidiaries,
(v) amounts owing under leases (other than Capital Lease Obligations and
other than leases which but for the existence of a fair market value purchase
option would be a Capital Lease Obligation), (vi) any Indebtedness of the
Company that, when Incurred and without respect to any election under
Section 1111(b) of the Federal Bankruptcy Code, was without recourse to
the Company, (vii) any Indebtedness to any employee of the Company or any
of its Subsidiaries, (viii) any repurchase, redemption or other obligation
in respect of Redeemable Capital Stock and (ix) any trade payables.

 

“Senior Note Register” and
“Senior Note Registrar” have the meanings specified in Section 305.

 

13

 

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

 

“Series A Debentures” means
the $87,113,000 in current aggregate principal amount of 12 1/2% Senior
Subordinated Debentures Due 2004, Series A of the Company issued on
November 19, 1992, under the Subordinated Debenture Indenture.

 

“Series B Debentures” means
the $11,770,000 in current aggregate principal amount of 12 1/2% Senior
Subordinated Debentures Due 2004, Series B of the Company issued on
February 4, 1993, under the Subordinated Debenture Indenture.

 

“7 7/8 Senior Notes” means the
$149,750,000 in current aggregate principal amount of 7 7/8% Senior Notes Due
2008 of the Company.

 

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

 

“Stated Maturity”, when used
with respect to any Indebtedness or any installment of principal or interest
thereon (or scheduled or required redemption or dividend payment), means the
date specified in such Indebtedness as the fixed date on which the principal
(or scheduled or required redemption or dividend payment) of such Indebtedness
or such installment of principal or interest (or scheduled or required
redemption or dividend payment) is due and payable.

 

“Subordinated Debenture
Indenture” means the Indenture, dated as of November 1, 1992, between the
Company and The Bank of New York, as successor to United States Trust Company
of New York, as Trustee, as the same has been and may be supplemented and
amended from time to time, providing for the Series A Debentures and
Series B Debentures.

 

“Subordinated Indebtedness”
means any Indebtedness of the Company or a Subsidiary that is expressly
subordinated in right of payment to any other Indebtedness of the Company or a
Subsidiary.

 

“Subsidiary” means (i) any
Person a majority of the equity ownership or the Voting Stock of which is at
the time owned, directly or indirectly, by the Company or by one or more other
Subsidiaries of the Company, or by the Company and one or more such
Subsidiaries of the Company or (ii) GE SeaCo SRL, a joint venture between
the Company and General Electric Capital Corporation relating to their respective
container fleets (or any successor in interest thereto) for so long as the
Company owns, directly or indirectly, at least 50% of the voting equity
thereof.

 

“10 1/2% Senior Notes” means the
$63,575,000 in current aggregate principal amount of 10 1/2% Senior Notes Due
2003 of the Company.

 

“10 3/4% Senior Notes” means the
$115,000,000 in current aggregate principal amount of 10 3/4% Senior Notes due
2006 of the Company.

 

“Transaction Date” with respect
to any calculation or determination required to be made under this Indenture
means the date of the event requiring such calculation or determination.

 

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

 

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

 

“Voting Stock” means shares of
the class or classes pursuant to which the holders thereof have the general
voting power under ordinary circumstances to elect directors, managers or
trustees of a company or corporation (irrespective of whether or not at the
time shares of any other class or classes shall have or might have voting power
by reason of the happening of any contingency); as of the date of this
Indenture, the Company had two classes of Voting Stock, denominated
Class A common shares and Class B common shares.

 

14

 

Section 102.  Other Definitions.

 

	
  Term

  	
   

  	
  Defined

  Section in

  
	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  105(a)

  
	
  “Change in Tax Law”

  	
   

  	
  1101(b)

  
	
  “Change of Control Notice”

  	
   

  	
  1012(b)

  
	
  “Change of Control Purchase Date”

  	
   

  	
  1012(a)

  
	
  “Change of Control Purchase Notice”

  	
   

  	
  1012(c)

  
	
  “Change of Control Purchase Price”

  	
   

  	
  1012(a)

  
	
  “covenant defeasance”

  	
   

  	
  1203

  
	
  “CSC”

  	
   

  	
  115

  
	
  “Defaulted Interest”

  	
   

  	
  307

  
	
  “defeasance”

  	
   

  	
  1201

  
	
  “Excess Proceeds”

  	
   

  	
  1013(b)

  
	
  “Excess Proceeds Offer”

  	
   

  	
  1013(c)

  
	
  “Excess Proceeds Payment”

  	
   

  	
  1013(c)

  
	
  “Excess Proceeds Payment Date”

  	
   

  	
  1013(c)(ii)

  
	
  “incorporated provision”

  	
   

  	
  108

  
	
  “Offer”

  	
   

  	
  1016

  
	
  “Purchase Date”

  	
   

  	
  1016

  
	
  “rate(s) of exchange”

  	
   

  	
  116(b)

  
	
  “Replacement Assets”

  	
   

  	
  1013(b)

  
	
  “Restricted Payment”

  	
   

  	
  1008

  
	
  “SCA”

  	
   

  	
  115

  
	
  Surviving Entity”

  	
   

  	
  801(i)

  
	
  “U.S. Government Obligations”

  	
   

  	
  1202(a)

  

 

Section 103.  Compliance
Certificates and Opinions.

 

Upon any application or request
by the Company to the Trustee to take any action under any provision of this
Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Indenture
(including any covenant compliance which constitutes a condition precedent)
relating to the proposed action have been complied with, and an Opinion of
Counsel stating that in the opinion of such counsel all such conditions
precedent, 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
(other than the certificates required by Section 1016(a)) with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

 

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

 

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

 

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

 

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

 

Section 104.  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,

 

15

 

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 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 the matters upon
which his certificate or opinion is based are erroneous. Any such certificate
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, 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 105.  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 are
delivered to the Trustee and, where it is hereby expressly required, to the
Company. 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 Trust Indenture Act
Section 315) conclusive in favor of the Trustee and the Company, if made
in the manner provided in this Section.

 

(b)                                 The fact and date of the execution by any Person
of any such instrument or writing may be proved in any reasonable manner which
the Trustee deems sufficient.

 

(c)                                  The ownership of Senior Notes shall be proved by
the Senior Note Register.

 

(d)                                 If the Company shall solicit from the Holders any
request, demand, authorization, direction, notice, consent, waiver or other
Act, the Company may, at its option, by or pursuant to a Board Resolution, fix
in advance a record date for the determination of such Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or
other Act, but the Company shall have no obligation to do so. Notwithstanding
Trust Indenture Act Section 316(c), any such record date shall be the
record date specified in or pursuant to such Board Resolution, which shall be a
date not more than 30 days prior to the first solicitation of Holders
generally in connection therewith and no 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 may be 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 Senior Notes then Outstanding have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for this purpose the Senior Notes then Outstanding
shall be computed as of such record date; provided,
however, that no such request, demand, authorization, direction,
notice, consent, waiver or other Act by the Holders on such record date shall
be deemed

 

16

 

effective
unless it shall become effective pursuant to the provisions of this Indenture
not later than six months after the record date.

 

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

 

Section 106.  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,

 

(a)                                  the Trustee by any Holder or the Company shall be
sufficient for every purpose hereunder if made, given, furnished or delivered,
in writing, to or with the Trustee at its Corporate Trust Office, Attention:
Corporate Trust Administration; or

 

(b)                                 the Company by the Trustee or by any Holder shall
be sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if made, given, furnished or delivered in writing to the Company
addressed to it at SEA CONTAINERS LTD., 41 Cedar Avenue, P.O. Box HM
1179, Hamilton HM EX, Bermuda, Attention: Secretary (with a copy to
(i) SEA CONTAINERS AMERICA INC., 1155 Avenue of the Americas, 30th
Floor, New York, New York 10036, Attention: General Counsel and (ii) SEA
CONTAINERS SERVICES LTD., 20 Upper Ground, London SE1 9PF, England,
Attention: General Counsel) or at any other address furnished in writing to the
Trustee by the Company.

 

Section 107.  Notices to Holders; Waiver.

 

Where this Indenture provides
for notice to Holders of any event, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and sent by
facsimile transmission or mailed, first class postage prepaid, to each Holder
affected by such event at his address as it appears in the Senior Note 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. Any notice when deposited for
mailing to a Holder in the aforesaid manner shall be presumed to have been
received by such Holder whether or not actually received by such Holder. 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 cause, it shall be
impracticable to mail notice of any event as required by any provision of this
Indenture, then any method of giving such notice as shall be satisfactory to
the Trustee shall be deemed to be a sufficient giving of such notice.

 

Section 108.  Conflict of any Provision of Indenture with
Trust Indenture Act.

 

If and to the extent that any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by Sections 310 to 318, inclusive, of the Trust Indenture Act, or
conflicts with any provision (an “incorporated provision”) required by or
deemed to be included in this Indenture by operation of such Trust Indenture
Act Sections, such imposed duties or incorporated provision shall control. If
any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall
be deemed to apply to this Indenture as so modified or excluded, as the case
may be.

 

17

 

Section 109.  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 110.  Successors and Assigns.

 

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

 

Section 111.  Separability Clause.

 

In case any provision in this
Indenture or in the Senior Notes 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 112.  Benefits of Indenture.

 

Nothing in this Indenture or in
the Senior Notes, express or implied, shall give to any Person (other than the
parties hereto and their successors hereunder, any Paying Agent, the Holders
and the holders of Senior Indebtedness) any benefit or any legal or equitable
right, remedy or claim under this Indenture.

 

Section 113.  Governing Law.

 

THIS INDENTURE
AND THE SENIOR NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

 

Section 114.  Legal Holidays.

 

In any case where any Interest
Payment Date, any date established for payment of Defaulted Interest pursuant
to Section 307, or any Maturity with respect to any Senior Note shall not
be a Business Day, then (notwithstanding any other provision of this Indenture
or of the Senior Notes) payment of interest, principal or premium, if any, need
not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the Interest Payment Date, the
date established for payment of Defaulted Interest pursuant to Section 307
or at Maturity, and no interest shall accrue with respect to such payment for
the period from and after such Interest Payment Date, the date established for
payment of Defaulted Interest pursuant to Section 307 or Maturity, as the
case may be, to the next succeeding Business Day.

 

Section 115.  Consent to Jurisdiction and Service of
Process; Waiver of Jury Trial.

 

The Company agrees that any
legal suit, action or proceeding brought by any party to enforce any rights
under or with respect to this Indenture or the Senior Notes may be instituted
in any state or federal court in New York City and waives to the fullest extent
permitted by law any objection which it may now or hereafter have to the laying
of venue of any such suit, action or proceeding and irrevocably submits to the
non-exclusive jurisdiction of any such court in any such suit, action or
proceeding. The Company hereby irrevocably designates and appoints each of Sea
Containers America Inc. (“SCA”) and Corporation Service Company (“CSC”) as
the Company’s authorized agents to receive and forward on its behalf service of
any and all process which may be served in any such suit, action or proceeding
in any such court and agrees that service of process upon either or both SCA or
any successor (provided, however,
that such service upon SCA or any successor shall only be required by this
Section 115 so long as SCA or such successor maintains an office at the
address set forth herein or at another address in New York City which the
Company has designated by written notice to the Trustee) at its office at 1155
Avenue of the Americas, 30th Floor, New York, New York 10036, and CSC or any
successor at its office at 80 State Street, Albany, New York 12207-2543 (or
such other address in the State of New York as the Company may designate by
written notice to the Trustee) and written notice of such service to the
Company marked or delivered to either or both SCA (subject to the foregoing
proviso) and CSC at their addresses set forth herein shall be deemed in every
respect effective service of process upon the Company in any such suit, action
or proceeding and shall be taken and held to be valid personal service upon the
Company. Nothing in this Section 115 shall affect the right of any party
hereto to

 

18

 

serve process in any manner
permitted by law or limit the right of any party hereto to bring proceedings
against the Company in the courts of any jurisdiction or jurisdictions. The
Company further agrees to take any and all action, including the execution and
filing of any and all such documents and instruments as may be necessary to
continue such designation and appointment of SCA and CSC in full force and
effect so long as this Indenture or any of the Senior Notes shall be
outstanding. To the extent that the Company has or hereafter may acquire any
immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, executor or otherwise) with respect to itself or its property, the
Company hereby irrevocably waives such immunity in respect of its obligations
under this Indenture and the Senior Notes, to the extent permitted by law.

 

EACH OF THE COMPANY AND THE
TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERIMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SENIOR NOTES OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 116.  Conversion of Currency.

 

(a)                                  The Company shall indemnify the Holders against,
and the Holders shall have an additional legal claim for, any loss or damage
which, consequent upon any judgment being obtained or enforced in respect of
the non-payment by the Company of any amount due under or pursuant to this
Indenture, arises from any variation in rates of exchange between United States
dollars and the currency in which judgment is obtained or enforced between the
date such amount became due (or the date of the said judgment being obtained as
the case may be) and the date of actual payment of such amount. The indemnity
contained in this Section 116 shall apply irrespective of any indulgence
granted to the Company from time to time and shall continue in full force and
effect notwithstanding any payment by or on behalf of the Company, and any
amount due from the Company under this Section 116 will be due as a separate
payment and shall not be affected by any judgment being obtained for any other
sums due under or in respect of this Indenture.

 

(b)                                 The term “rate(s) of exchange” shall mean the
rate, quoted at noon for transactions in excess of $1,000,000, at which the Holder
is able or would have been able on the relevant date to purchase at Morgan
Guaranty Trust Company of New York at its main branch in New York City, United
States dollars with the judgment currency other than United States dollars
referred to in Subsection (a) above and includes any premiums and costs of
exchange payable.

 

Section 117.  No Recourse Against Others.

 

A director, officer, employee or
shareholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Senior Notes or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting any of the Senior Notes waives and releases
all such liability.

 

ARTICLE TWO

 

SENIOR NOTE
FORMS

 

Section 201.  Forms Generally.

 

The Senior Notes and the
Trustee’s certificate of authentication shall be in substantially the form
annexed hereto as Exhibit A. The Senior Notes may have such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, notations or other marks
of identification and such notations, legends or endorsements required by law,
stock exchange agreements to which the Company is subject, or usage. Any portion
of the text of any Senior Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note. The Company shall
approve the form of any notation, legend or endorsement on the Senior Notes.
Each Senior Note shall be dated the date of its authentication.

 

19

 

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

 

The terms and provisions
contained in the form of the Senior Notes annexed hereto as Exhibit A
shall constitute, and are hereby expressly made, a part of this Indenture. To
the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.

 

Section 202.  Securities Issuable in Global
Form.

 

(a)                                  If so specified in the Company Order referred to
in Section 303, any amount of the Senior Notes may be issued in the form
of one or more permanent Global Securities registered in the name of the
Depositary. Such Global Securities shall be substantially in the forms set
forth in Exhibit A with such modifications as may be necessary or
desirable to reflect the issuance thereof in global form.

 

(b)                                 Subject to the provisions of Section 303 and,
if applicable, Section 304, the Trustee shall deliver and redeliver any
Senior Note in permanent global form in the manner and upon instructions given
by the Person or Persons specified in the form of Security or in the applicable
Company Order. If a Company Order pursuant to Section 303 or
Section 304 has been, or simultaneously is, delivered, any instructions by
the Company with respect to endorsement or delivery or redelivery of a Senior
Note in global form shall be in writing but need not comply with
Section 103 and need not be accompanied by an Opinion of Counsel.

 

(c)                                  Payment of principal of and any premium and
interest on any Senior Note in permanent global form shall be made to the
Person or Persons specified in the form of Senior Note. The Company, the
Trustee and any agent of the Company and the Trustee shall treat the Holder of
any permanent Global Security as the owner of such Global Security for the
purpose of receiving payment of principal of, premium, if any, and interest on
such Global Security and for all other purposes whatsoever, whether or not such
Senior Note be overdue, and none of the Company, the Trustee or any agent of
the Company or the Trustee shall be affected by notice to the contrary.

 

(d)                                 If at any time, (i) the Depositary notifies
the Company that it is unwilling or unable to continue as Depositary or if at
any time the Depositary shall no longer be registered or in good standing under
the Exchange Act or other applicable statute or regulation and a successor
Depositary is not appointed by the Company within 90 days after the
Company receives such notice or becomes aware of such condition, as the case
may be, or (ii) the Company in its sole discretion determines that no
Securities shall be represented by a Global Security or Global Securities and
that the provisions of this Section 202 shall no longer apply to any
Senior Notes, then in such event this Section 202 shall no longer be
applicable to the Senior Notes, and the Company will execute and the Trustee,
upon Company Request, will authenticate and deliver Senior Notes in definitive
registered form, in authorized denominations, and in an aggregate principal
amount equal to the principal amount of the Global Security or Global
Securities in exchange for such Global Security whereupon the Global Security
or Global Securities shall be cancelled by the Trustee. Such Senior Notes in
definitive registered form issued in exchange for the Global Security or Global
Securities pursuant to this Section 202(d) shall be registered in such
names and issued in such authorized denominations as the Depositary, pursuant
to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee in compliance with the Trustee’s procedures. Subject to
Sections 303 and 304, the Trustee shall deliver such Senior Notes to the
Persons in whose names such Senior Notes are so registered.

 

(e)                                  Any Person having a beneficial interest in the
Securities evidenced by one or more Global Securities may cause the Depositary
to request the issuance of one or more definitive Senior Note

 

20

 

certificates
in exchange for such Person’s interest in the Global Securities in compliance
with the Depositary’s procedures. In such event, the Company will execute, and
the Trustee will, subject to Sections 303 and 304, authenticate and deliver to
such Person one or more definitive Senior Note certificates in definitive
registered form, in authorized denominations, and in an aggregate principal
amount equal to the principal amount of such Person’s beneficial interest in
the Global Securities that it has requested be exchanged.

 

ARTICLE THREE

 

THE SENIOR
NOTES

 

Section 301.  Title and Terms.

 

The aggregate principal amount
at maturity of Senior Notes which may be authenticated and delivered under this
Indenture is limited to $                        ,
except for Senior Notes authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Senior Notes pursuant to
Section 303, 304, 305, 306, 906, 1012, 1013, 1015 or 1108.

 

The Senior Notes shall be known
and designated as the 12 1/2% Senior Notes due 2009, of
the Company. In no event shall the aggregate principal amount of the Senior
Notes exceed
$                       .

 

The Stated Maturity of the
Senior Notes shall be
                       ,
2009, and they shall bear interest at the rate of 12 1/2%
per annum, which interest shall
accrue from          , 2003, and
shall be payable semiannually on
           and
             
each year commencing
                       ,
2003, and at said Stated Maturity, to the Holders of record of Senior Notes at
the close of business on the
             or
               
next preceding such Interest Payment Date. Interest on the Senior Notes will
accrue from the date of issuance or from the most recent Interest Payment Date
to which interest has been paid.

 

The principal of, and premium,
if any, or Interest on, the Senior Notes shall be payable, and, except as
described below, the Senior Notes will be exchangeable and transferable, at the
office or agency of the Company maintained for such purpose in the Borough of
Manhattan, City of New York, or at such other office or agency of the Company
as may be maintained for such purpose; provided
that, at the option of the Company, Interest may be paid by check mailed to
addresses of the Persons entitled thereto as such addresses shall appear on the
Senior Note Register. For the purpose of paying interest on the Senior Notes,
the Company will at all times have appointed and maintain a Paying Agent (which
may be the Trustee) which either will have an office or agency in the Borough
of Manhattan, City of New York, or will make arrangements for interest checks
to be paid at a bank, trust company or other agency located in the Borough of
Manhattan, City of New York. The Bank of New York will be initially appointed
as Paying Agent for the Senior Notes. Until otherwise designated by the
Company, the Company’s office or agency in New York will be the Trustee’s
office located at 101 Barclay Street, New York, New York 10286.

 

The Depositary for the Senior
Notes originally issued pursuant to the Offering Memorandum is the Depository
Trust Company.

 

The Senior Notes shall be
redeemable as provided in Article Eleven.

 

The Senior Notes shall not be
entitled to the benefits of any sinking fund.

 

Section 302.  Denominations.

 

The Senior Notes shall be
issuable only in registered form without coupons and only in denominations of
$1,000 and any integral multiple thereof. No service charge will be made for
any registration of transfer, exchange or redemption of Senior Notes, except
that in certain circumstances a service charge may be levied for any tax or
other governmental charge that may be imposed in connection therewith.

 

21

 

Section 303. 
Execution, Authentication, Delivery and Dating.

 

The Senior Notes shall be
executed on behalf of the Company by any one director or officer and the
secretary of the Company under the common seal of the Company reproduced
thereon. The signature of any of these directors or officers on the Senior
Notes may be manual or facsimile.

 

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

 

At any time and from time to
time after the execution and delivery of this Indenture, the Company may
deliver Senior Notes executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such
Senior Notes directing the Trustee to authenticate the Senior Notes and
certifying that all conditions precedent to the issuance of Senior Notes
contained herein have been fully complied with, and the Trustee in accordance
with such Company Order shall authenticate and deliver such Senior Notes as in
this Indenture provided and not otherwise. The Trustee shall be entitled to
receive an Officers’ Certificate and an Opinion of Counsel of the Company that
it may reasonably request in connection with such authentication of Senior
Notes. Such order shall specify the amount of Senior Notes to be authenticated
and the date on which the original issue of Senior Notes is to be
authenticated.

 

The Company shall execute and
the Trustee shall authenticate and deliver one or more Global Securities that
(i) shall represent an aggregate amount equal to the aggregate principal
amount of the Outstanding Senior Notes originally issued pursuant to the
Prospectus (less the aggregate principal amount, if any, of the Senior Notes
originally purchased and delivered in definitive registered form),
(ii) shall be registered in the name of the Depositary or the nominee of
the Depositary, (iii) shall be delivered by the Trustee to the Depositary
or pursuant to the Depositary’s instruction and (iv) shall bear a legend
substantially to the effect specified in Exhibit A to this Indenture (or
in the form required by the Depositary).

 

The Depositary must, at all
times while it serves as such Depositary, be a clearing agency registered under
the Exchange Act and any other applicable statute or regulation.

 

Each Senior Note shall be dated
the date of its authentication.

 

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

 

In case the Company, pursuant to
Article Eight, shall be amalgamated, consolidated or merged with or into any
other Person or shall convey, transfer, lease or otherwise dispose of
substantially all of its properties and assets to any Person, and the successor
Person resulting from such amalgamation or consolidation, or surviving such
merger, or into which the Company shall have been merged, or the successor
Person which shall have received a conveyance, transfer, lease or other
disposition as aforesaid, shall have executed an indenture supplemental hereto
with the Trustee pursuant to Article Eight, any of the Senior Notes
authenticated or delivered prior to such amalgamation, consolidation, merger,
conveyance, transfer, lease or other disposition may, from time to time, at the
request of the successor Person, be exchanged for other Senior Notes executed
in the name of the successor Person with such changes in phraseology and form
as may be appropriate, but otherwise in substance of like tenor as the Senior
Notes surrendered for such exchange and of like principal amount; and the
Trustee, upon Company Order of the successor Person, shall authenticate and deliver
Senior Notes as specified

 

22

 

in such request for the purpose
of such exchange. If Senior Notes shall at any time be authenticated and
delivered in any new name of a successor Person pursuant to this Section in
exchange or substitution for or upon registration of transfer of any Senior
Notes, such successor Person, at the option of any Holder but without expense
to such Holder, shall provide for the exchange of all Senior Notes at the time
Outstanding held by such Holder for Senior Notes authenticated and delivered in
such new name.

 

Section 304.  Temporary Senior Notes.

 

Pending the preparation of
definitive Senior Notes as provided in Section 201, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Senior Notes which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the same tenor as the definitive Senior Notes in lieu of which
they are issued, with such appropriate insertions, omissions, substitutions and
other variations as the directors or officers executing such Senior Notes may
determine, as conclusively evidenced by their execution of such Senior Notes
and which may be executed by manual or facsimile signatures to the same extent
as set forth in Section 303.

 

If temporary Senior Notes are
issued, the Company will cause definitive Senior Notes to be prepared without
unreasonable delay. After the preparation of definitive Senior Notes, the
temporary Senior Notes shall be exchangeable for definitive Senior Notes upon
surrender of the temporary Senior Notes at the office or agency of the Company
designated for such purpose pursuant to Section 1002, without charge to
the Holder. Upon surrender for cancellation of any one or more temporary Senior
Notes, the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor a like principal amount of definitive Senior Notes of
authorized denominations. Until so exchanged, the temporary Senior Notes shall
in all respects be entitled to the same benefits under this Indenture as
definitive Senior Notes.

 

Section 305. 
Registration; Registration of Transfer and Exchange.

 

The Company shall cause to be
kept at the Corporate Trust Office of the Trustee a register (the register
maintained in such office and in any other office or agency designated pursuant
to Section 1002 being herein sometimes referred to as the “Senior Note
Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Senior Notes and
of transfers of Senior Notes. Said office or agency is hereby initially
appointed “Senior Note Registrar” for the purpose of registering Senior Notes
and transfers of Senior Notes as herein provided.

 

Subject to the provisions of
this Section 305 regarding the transfer of interests in the Global
Security, upon surrender for registration of transfer of any Senior Note at the
office or agency of the Company designated pursuant to Section 1002, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Senior Notes
of any authorized denomination or denominations of a like aggregate principal
amount.

 

At the option of the Holder,
Senior Notes may be exchanged for other Senior Notes of any authorized
denomination and of a like aggregate principal amount, upon surrender of the
Senior Notes to be exchanged at such office or agency. Whenever any Senior
Notes are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Senior Notes which the Holder
making the exchange is entitled to receive.

 

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

 

23

 

Every Senior Note presented or
surrendered for registration of transfer, or for exchange or redemption, shall
(if so required by the Company or the Senior Note Registrar) be duly endorsed,
or be accompanied by a written instrument of transfer in form satisfactory to
the Company and the Senior Note 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 or redemption of Senior Notes, but
the Company may require payment of a sum sufficient to pay all documentary,
stamp or similar issue or transfer taxes or other governmental charges that may
be imposed in connection with any registration of transfer or exchange of
Senior Notes, other than transfers or exchanges pursuant to Section 303,
304, 906, 1012, 1013, 1015 or 1108 not involving any transfer.

 

The Company shall not be
required (a) to issue, register the transfer of or exchange any Senior
Note during a period beginning at the opening of business (i) 15 days
before the mailing of a notice of redemption of the Senior Notes selected for
redemption under Section 1104 and ending at the close of business on the
day of such mailing or (ii) 15 days before an Interest Payment Date
and ending on the close of business on the Interest Payment Date, or
(b) to register the transfer of or exchange any Senior Note so selected
for redemption in whole or in part, except the unredeemed portion of Senior
Notes being redeemed in part.

 

Notwithstanding any other
provision of this Section, unless and until it is exchanged in whole or in part
for the individual Senior Notes represented thereby, a Global Security
representing all or a portion of the Senior Notes may not be transferred except
as a whole by the Depositary to a nominee of such Depositary or by a nominee of
such Depositary to such Depositary or another nominee of such Depositary or by
such Depositary or any such nominee to a successor Depositary or a nominee of such
successor Depositary.

 

If at any time the Depositary
notifies the Company that it is unwilling or unable to continue as Depositary
or if at any time the Depositary shall no longer be eligible under
Section 303, the Company shall appoint a successor Depositary. If a
successor Depositary is not appointed by the Company within 90 days after
the Company receives such notice or becomes aware of such ineligibility, the
Company will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of individual Senior Notes, will authenticate and
deliver, individual Senior Notes in an aggregate principal amount equal to the
principal amount of the Global Security or Securities representing the Senior
Notes in exchange for such Global Security or Senior Notes.

 

If an Event of Default has
occurred and is continuing, the Company will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of individual
Securities, will authenticate and deliver, individual Securities in an
aggregate principal amount equal to the principal amount of the Global Security
or Securities representing the Securities in exchange for such Global Security
or Securities.

 

The Depositary may surrender a
Global Security in exchange in whole or in part for individual Senior Notes
registered in the name of a member of, or participant in, the Depositary (an
“Agent Member”). Thereupon, the Company shall execute, and the Trustee shall
authenticate and deliver, without service charge to each Person specified by
such Depositary a new individual Security or Securities of any authorized
denomination 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 the Security Registrar shall reflect on its books and records the date and
a decrease in the principal amount of the Global Security equal to the
principal amount of the individual Senior Notes delivered to Holders thereof.

 

Upon the exchange of a Global
Security for individual Senior Notes, such Global Security shall be cancelled
by the Trustee. Individual Senior Notes issued in exchange for a Global
Security pursuant to this Section 305 shall be registered in such names
and in such authorized denominations as the

 

24

 

Depositary for such Global
Security, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee. The Trustee and the Company shall not
have any liability for the accuracy of the instructions received from the
Depositary. The Trustee shall deliver such Senior Notes to the Persons in whose
names such Senior Notes are so registered.

 

Agent Members shall have no
rights under this Indenture with respect to any Global Security held on their
behalf by the Depositary, or the Paying Agent as its custodian, or under the
Global Security, and the Depositary may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner of such
Global Security for all purposes whatsoever.

 

Neither the Company nor the
Trustee shall have any responsibility or obligation to any participant in the
Depositary, any Person claiming a beneficial ownership interest in the
Securities under or through the Depositary or any such participant, or any
other Person which is not shown on the Security Register as being a Holder,
with respect to (1) the Senior Notes; (2) the accuracy of any records
maintained by the Depositary or any such participant; (3) the payment by
the Depositary or any such participant of any amount in respect of the
principal of or premium or interest on the Senior Notes; (4) any notice
which is permitted or required to be given to Holders of Senior Notes under this
Indenture; (5) the selection by the Depositary or any such participant of
any Person to receive payment in the event of a partial redemption of the
Senior Notes; or (6) any consent given or other action taken by the
Depositary as Holder of Senior Notes.

 

Section 306.  Mutilated, Destroyed, Lost and
Stolen Senior Notes.

 

If (a) any mutilated Senior
Note is surrendered to the Trustee or (b) the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any
Senior Note, and there is delivered to the Company and the Trustee such
security or indemnity as may be required by them to save each of them and any
agent of them harmless, then, in the absence of notice to the Company or the
Trustee that such Senior Note has been acquired by a bona fide purchaser, the
Company shall execute and upon Company Order the Trustee shall authenticate and
deliver, in exchange for any such mutilated Senior Note or in lieu of any such
destroyed, lost or stolen Senior Note, a replacement Senior Note of like tenor
and principal amount, and bearing a number not contemporaneously outstanding.

 

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

 

Upon the issuance of any
replacement Senior Notes under this Section, the Company may require the
payment of a sum sufficient to pay all documentary, stamp or similar issue or
transfer taxes or other governmental charges that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

 

Every replacement Senior Note
issued pursuant to this Section in lieu of any destroyed, lost or stolen Senior
Note shall constitute a contractual obligation of the Company, whether or not
the destroyed, lost or stolen Senior Note shall be at any time enforceable by
anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Senior Notes 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 Senior Notes.

 

Section 307.  Payment of Interest; Interest
Rights Preserved.

 

Interest on any Senior Note
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 Senior Note (or one
or more

 

25

 

Predecessor Senior Notes) is
registered at the close of business on the Regular Record Date for such
Interest.

 

Any Interest on any Senior Note
which is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date (such defaulted interest 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, at its election in each case, as provided
in Subsection (a) or (b) below:

 

(a)                                  The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the Senior Notes (or their
respective Predecessor Senior Notes) are registered at the close of business on
a Special Record Date for the payment of such Defaulted Interest, which shall
be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Senior
Note and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this
Subsection 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 ten days prior to the date of the proposed
payment and not less than ten days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company
of such Special Record Date. In the name and at the expense of the Company, the
Trustee 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 at his address as it appears in the Senior Note Register, not less
than ten 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
Senior Notes (or their respective Predecessor Senior Notes) are registered at
the close of business on such Special Record Date and shall no longer be
payable pursuant to the following Subsection (b).

 

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

 

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

 

Section 308.  Persons Deemed Owners.

 

Prior to the time of due
presentment for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name any Senior
Note is registered as the owner of such Senior Note for the purpose of
receiving payment of principal of, and premium, if any, and (subject to
Sections 305 and 307) Interest on, such Senior Note and for all other purposes
whatsoever, whether or not such Senior Note be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

 

26

 

Section 309.  Cancellation.

 

All Senior Notes surrendered for
payment, redemption, registration of transfer or exchange shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be
promptly cancelled by it. The Company shall deliver to the Trustee for
cancellation any Senior Notes previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all Senior
Notes so delivered shall be promptly cancelled by the Trustee. No Senior Notes
shall be authenticated in lieu of or in exchange for any Senior Notes cancelled
as provided in this Section, except as expressly permitted by this Indenture.
All cancelled Senior Notes shall be disposed of by the Trustee in accordance
with its customary procedures and certification of their disposal delivered to
the Company unless by a Company Order the Company shall direct that cancelled
Senior Notes be returned to it.

 

Section 310.  Computation of Interest.

 

Interest on the Senior Notes
shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Section 311.  CUSIP and CINS Numbers.

 

The Company in issuing the
Senior Notes may use “CUSIP” and “CINS” numbers (if then generally in use) and,
if so, the Trustee shall use “CUSIP” and “CINS” numbers in notices of
redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Senior Notes or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Senior Notes, and any such
redemption shall not be affected by an defect in or omission of such numbers.
The Company will promptly notify the Trustee of any change in the “CUSIP” or
“CINS” numbers.

 

ARTICLE FOUR

 

SATISFACTION
AND DISCHARGE

 

Section 401.  Satisfaction
and Discharge of Indenture.

 

This Indenture shall, upon
Company Request, cease to be of further effect as to all Outstanding Senior
Notes (except as to surviving rights of registration of transfer or exchange of
Senior Notes herein expressly provided for) and the Trustee, on demand of and
at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture as to such Senior Notes, when

 

(a)                                  either

 

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

 

(2)                                  all such Senior Notes not theretofore delivered to
the Trustee for cancellation have become due and payable,

 

and the Company, in the case of
(2) above, has irrevocably deposited or caused to be deposited with the
Trustee, under the terms of an irrevocable trust agreement in form and
substance satisfactory to the Trustee, as trust funds in trust solely for the
benefit of the Holders for that purpose, cash in U.S.

 

27

 

dollars sufficient to pay and discharge the
entire Indebtedness on such Senior Notes not theretofore delivered to the
Trustee for cancellation, for principal, premium, if any, and Interest to the
date of such deposit (in the case of Senior Notes which have become due and
payable) or to the Stated Maturity or Redemption Date, as the case may be;

 

(b)                                 the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and

 

(c)                                  the Company has 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 to the Trustee
under Section 606 and the penultimate paragraph of Section 1003
hereof shall survive.

 

Section 402.  Application of Trust Money.

 

Subject to the provisions of the
penultimate paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it,
in accordance with the provisions of the Senior Notes and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal, premium, if any, and Interest for whose payment such
money has been deposited with the Trustee.

 

ARTICLE FIVE

 

REMEDIES

 

Section 501.  Events of Default.

 

An “Event of Default” occurs if:

 

(a)                                  the Company defaults in the payment of Interest on
any Senior Note when the same becomes due and payable and such Default
continues for a period of 30 days; or

 

(b)                                 the Company defaults in the payment of the
principal of, premium, if any, on any Senior Note when the same becomes due and
payable at Maturity; or

 

(c)                                  the Company defaults in the performance of, or
breaches, any covenant, warranty or agreement of the Company under the Senior
Notes or hereunder (other than a Default in the performance, or breach, of a
covenant, warranty or agreement that is specifically dealt with elsewhere in
this Section), and such Default or breach continues for a period of
30 days after there has been given, by registered or certified mail, to
the Company by the Trustee or to the Company and the Trustee by the Holders of
at least 25% in principal amount of the Outstanding Senior Notes, a written
notice specifying such Default or breach and stating that such notice is a
“Notice of Default” hereunder; or

 

(d)                                 an event of Default shall have occurred with
respect to any issue or issues of Indebtedness of the Company or any Subsidiary
having an outstanding principal amount of $5,000,000 or more individually or in
the aggregate, for all issues of all such Persons, whether such Indebtedness
now exists or shall hereafter be created, which has caused such Indebtedness of
at least $5,000,000 or aggregating at least $5,000,000 becoming or being
declared due and payable prior to the date on which it would otherwise become
due and payable and such Indebtedness has not been discharged in full or such
acceleration has not been rescinded or annulled within 30 days of such
acceleration; or

 

28

 

(e)                                  judgments or orders are rendered against the
Company or any Subsidiary which require the payment in money, either
individually or in an aggregate amount, that is more than $5,000,000 and such
judgments or orders shall remain unsatisfied, unstayed or unbonded (provided that the judgment or order shall
only be considered bonded if as a result of such bond no action can be taken to
enforce the judgment or order) for 60 days; or

 

(f)                                    a decree or order is entered by a court having
jurisdiction in the premises (i) for relief in respect of the Company or
any Material Subsidiary in an involuntary case or proceeding under the Federal
Bankruptcy Code or any other federal or state law relating to bankruptcy,
insolvency, reorganization or relief of debtors, or similar law or
(ii) adjudging the Company or any Material Subsidiary 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 any Material
Subsidiary under the Federal Bankruptcy Code or any other applicable federal or
state law relating to bankruptcy, insolvency, reorganization or relief of
debtors or other similar law, or (iii) appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of the
Company or any Material Subsidiary or of any substantial part of any of their
properties, or (iv) ordering the winding up or liquidation of any of their
affairs, and any such decree or order remains unstayed and in effect for a
period of 60 consecutive days; or

 

(g)                                 the Company or any Material Subsidiary institutes
a voluntary case or proceeding under the Federal Bankruptcy Code or any other
applicable federal or state law relating to bankruptcy, insolvency,
reorganization or relief of debtors or similar law or any other case or
proceeding to be adjudicated a bankrupt or insolvent, or any of them consents
to the entry of a decree or order for relief in respect of the Company or any
Material Subsidiary in any involuntary case or proceeding under the Federal
Bankruptcy Code or any other applicable federal or state law relating to
bankruptcy, insolvency, reorganization or relief of debtors or similar law or
to the institution of bankruptcy or insolvency proceedings against the Company
or any Material Subsidiary, or any of them files a petition or answer or consent
seeking reorganization or relief under the Federal Bankruptcy Code or any other
applicable federal or state law relating to bankruptcy, insolvency,
reorganization or relief of debtors, or similar law, or any of them consents to
the filing of any such petition or to the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of any of the Company or any Material Subsidiary or of any
substantial part of its property, or any of them makes an assignment for the
benefit of creditors, or any of them admits in writing its inability to pay its
debts generally as they become due or any of them takes corporate action in
furtherance of any such action; or

 

(h)                                 the Company or any Material Subsidiary which is
not a U.S. corporation makes an application for an administrative order or
convenes any meeting of its members or creditors or takes any other steps
(under any applicable law relating to bankruptcy, insolvency, liquidation,
winding-up, reorganization or similar proceedings) with a view to the
liquidation, winding-up, dissolution, receivership, administration,
reorganization or amalgamation of the Company or such Material Subsidiary or
with a view to proposing any kind of composition, scheme of arrangement or
other compromise or arrangement with its creditors generally other than solvent
amalgamations and similar reorganizations otherwise permitted under Article
Eight hereof; or

 

(i)                                     with respect to the Company or any Material
Subsidiary that is not a U.S. corporation, (i) an application for an
administrative order in relation to the Company or such Material Subsidiary is
presented to a court having jurisdiction in the premises; (ii) an
administrative or other receiver or any manager is appointed by a court having
jurisdiction in the premises with respect to the Company or such Material
Subsidiary or all or any substantial part of their respective property; or
(iii) a petition is presented to a court having jurisdiction in the
premises by any person requesting the liquidation, dissolution or winding-up of
the Company or such Material Subsidiary; and, in the case of each of clauses
(i) through (iii) above, such application,

 

29

 

appointment or petition is not revoked,
discharged or dismissed or the related proceedings not stayed, as the case may
be, within 60 days; or

 

(j)                                     there occurs, in relation to the Company or any
Material Subsidiary which is not a U.S. corporation, in any courts having jurisdiction
in the premises of any country or territory in which it carries on business or
to the jurisdiction of whose courts it or a substantial portion of its property
is subject any event or proceeding which corresponds in that country or
territory with any of those mentioned in sub-clauses (f) to
(i) inclusive (subject to the same exceptions provided in said sub-clauses
and the passage of analogous time periods); or

 

(k)                                  there is a Default in the performance or breach of
any of the provisions of Article Eight or Section 1012.

 

Section 502.  Acceleration of Maturity;
Rescission.

 

(a)                                  If an Event of Default (other than an Event of
Default specified in Section 501(f) through 501(j)) occurs and is
continuing, the Trustee or the Holders of at least 25% of the principal amount
of the Senior Notes then Outstanding by written notice to the Company (and to
the Trustee if such notice is given by the Holders), may, and the Trustee at
the request of such Holders shall, declare all unpaid principal of, and
premium, if any, and accrued Interest on, all the Senior Notes to be due and
payable immediately, and upon any such declaration such principal, premium and
accrued Interest shall become immediately due and payable. Thereupon the
Trustee may, at its discretion, proceed to protect and enforce the rights of
Holders of the Senior Notes by appropriate judicial proceeding.

 

(b)                                 If an Event of Default specified in any of
Sections 501(f) through 501(j) occurs and is continuing, the amounts described
in clause (a) above shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder.

 

(c)                                  After a declaration of acceleration, but before a
judgment or decree for payment of the money due has been obtained by the
Trustee, by written notice to the Company and the Trustee, the Holders of a
majority in aggregate principal amount of the Outstanding Senior Notes may
annul a declaration of acceleration of the Senior Notes, provided, in each case, that (a) the
Company has paid or deposited with the Trustee a sum sufficient to pay
(i) all sums paid or advanced by the Trustee under this Indenture and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, (ii) all overdue Interest on all Senior Notes,
(iii) the principal of and premium, if any, on the Senior Notes, which
have become due otherwise than by such declaration of acceleration and interest
thereon at the rate borne by the Senior Notes and (iv) to the extent that
payment of such interest is lawful, interest upon overdue Interest at the rate
borne by the Senior Notes; and (b) all Events of Default, other than the
non-payment of principal of the Senior Notes which have become due solely by
the declaration of acceleration, have been cured or waived.

 

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

 

The Company covenants that if

 

(a)                                  Default is made in the payment of any Interest on
any Senior Note when such Interest becomes due and payable, and such Default
continues for a period of 30 days, or

 

(b)                                 Default is made in the payment of the principal
of, or premium, if any, on any Senior Note at the Maturity thereof,

 

30

 

the Company will, upon demand of the Trustee,
pay to it, for the benefit of the Holders of such Senior Notes, the whole
amount then due and payable on such Senior Notes for principal, premium, if
any, and Interest, with interest upon the overdue principal, premium, if any,
and, to the extent that payment of such interest shall be legally enforceable,
upon overdue installments of Interest, at the rate borne by the Senior Notes;
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

If the Company 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 and may prosecute such proceeding to judgment or
final decree, and may enforce the same against the Company or any other obligor
upon the Senior Notes and collect the moneys adjudged or decreed to be payable
in the manner provided by law out of the property of the Company or any other
obligor upon the Senior Notes, wherever situated.

 

If an Event of Default occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders under this Indenture by such
appropriate private or judicial proceedings as the Trustee shall deem most
effectual to protect and enforce such rights.

 

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 relative to the Company or
any other obligor upon the Senior Notes or the property of the Company or of
such other obligor or their creditors, the Trustee (irrespective of whether the
principal of the Senior Notes 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 for the payment of overdue principal
or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise,

 

(a)                                  to file and prove a claim for the whole amount of
principal, premium, if any, and Interest owing and unpaid in respect of the
Senior Notes 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

 

(b)                                 to collect and receive any moneys, securities or
other property payable or deliverable upon the exchange of the Senior Notes in
connection with any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or 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 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 606.

 

Nothing herein contained shall
be deemed to authorize the Trustee to authorize, consent to, accept or adopt on
behalf of any Holder any proposal, plan of reorganization, arrangement,
adjustment or composition or other similar arrangement affecting the Senior
Notes 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 Senior Notes.

 

All rights of action and claims
under this Indenture or the Senior Notes may be prosecuted and enforced by the
Trustee without the possession of any of the Senior Notes or the production
thereof in

 

31

 

any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name and 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 Senior Notes 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 such
money on account of principal, premium, if any, or closing Interest, upon presentation
of the Senior Notes 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 under Section 606;

 

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

 

THIRD: The balance, if any, to
the Company.

 

Section 507.  Limitation on Suits.

 

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

 

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

 

(b)                                 a written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder shall have been made by not less than 25% in principal amount of the
Senior Notes then Outstanding;

 

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

 

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

 

(e)                                  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 Senior Notes;

 

it being understood and intended that no one
or more 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 Holders, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture
except in the manner provided in this Indenture and for the equal and ratable
benefit of all the Holders.

 

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

 

Notwithstanding any other
provision in this Indenture, the Holder of any Senior Note 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
Senior Note on the respective due dates expressed in such Senior Note (or, in
the case of redemption, on the Redemption Date) and to institute suit for

 

32

 

the enforcement of any such
payment, 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
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 the Company, the Trustee and the Holders shall, subject to any
determination in such proceeding, 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 provided in
Section 306, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

 

Section 511.  Delay or Omission Not Waiver.

 

No delay or omission of the
Trustee or of any Holder of any Senior Note to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

 

Section 512.  Control by Holders.

 

The Holders of a majority in
principal amount of the Senior Notes then Outstanding shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee, provided, however, that

 

(a)                                  such direction shall not be in conflict with any
rule of law or with this Indenture or expose the Trustee to personal liability,
and

 

(b)                                 subject to the provisions of Trust Indenture Act
Section 315, the Trustee may 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 Senior Notes then Outstanding may, on
behalf of all Holders of Senior Notes, waive any past Default or Event of
Default hereunder and its consequences, except a Default or Event of Default

 

(a)                                  in the payment of the principal of, or premium, if
any, or interest on, any Senior Note, or

 

(b)                                 in respect of a covenant or provision hereof which
under Article Nine cannot be modified or amended without the consent of the
Holder of each Outstanding Senior Note 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.

 

33

 

Section 514.  Undertaking for Costs.

 

All parties to this Indenture
agree, and each Holder of any Senior Note by his acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in any
suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against
any party litigant in such suit, having due regard to the merits and good faith
of the claims or defenses made by such party litigant; but the provisions of
this Section shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder for the enforcement of the payment of the principal
of, or premium, if any, or interest on, any Senior Note on or after the
respective Stated Maturities expressed in such Senior Note (or, in the case of
redemption, on or after the Redemption Date), or to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the Senior Notes.

 

Section 515.  Waiver of Stay, Extension or Usury Laws.

 

The Company covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, extension or usury 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 (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.  Notice of Defaults.

 

Within 90 days after the
occurrence of any Default that is known to the Trustee, the Trustee shall
transmit by mail to all Holders, as their names and addresses appear in the
Senior Note Register, notice of such Default, 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 Senior Note, 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 and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interest of the Holders; and provided
further that, in the case of any Default or breach of the character
specified in Section 501(c), no such notice to Holders shall be given
until at least 30 days after the occurrence thereof.

 

Section 602.  Certain Rights of Trustee.

 

Subject to the provisions of
Trust Indenture Act Sections 315(a) through 315(d):

 

(a)                                  the Trustee may conclusively rely and shall be
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of Indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper 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 of the Company may be sufficiently
evidenced by a Board Resolution;

 

34

 

(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 of its
selection 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 security or indemnity reasonably
satisfactory to it against the costs, expenses and liabilities which might be incurred
by it in compliance with such request or direction;

 

(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;

 

(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;

 

(h)                                 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;

 

(i)                                     the Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within the rights or powers conferred upon it by this Indenture;

 

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

 

(k)                                  the rights, privileges, protections, immunities
and benefits given to the Trustee, including, without limitation, its right to
be indemnified, are extended to, and shall be enforceable by, the Trustee in
each of its capacities hereunder; and

 

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

 

Section 603.  Not Responsible for Recitals
or Issuance of Senior Notes.

 

The recitals contained herein
and in the Senior Notes, except the Trustee’s certificates of authentication, shall
be taken as the statements of the Company, and the Trustee assumes no

 

35

 

responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Senior Notes. The Trustee shall not be
accountable for the use or application by the Company of the proceeds from the
issuance of the Senior Notes, except that the Trustee represents that it is
duly authorized to execute and deliver this Indenture, authenticate the Senior
Notes and perform its obligations hereunder and that, if and when the Company
seeks to qualify this Indenture under the Trust Indenture Act, the statements
made by it in a Statement of Eligibility on Form T-1 supplied to the Company
will be true and accurate, subject to the qualifications set forth therein.

 

Section 604.  May Hold Senior Notes.

 

The Trustee and any Paying
Agent, Senior Note Registrar or other agent of the Company, in its individual
or any other capacity, may become the owner or pledgee of Senior Notes and,
subject to Trust Indenture Act Sections 310(b) and 311, may otherwise deal with
the Company with the same rights it would have if it were not Trustee, Paying
Agent, Senior Note Registrar or such other agent.

 

Section 605.  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 in writting with the
Company.

 

Section 606.  Compensation
and Reimbursement.

 

The Company agrees:

 

(a)                                  to pay to the Trustee from time to time such
compensation as shall be agreed between the Company and the Trustee 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);

 

(b)                                 except as otherwise expressly provided herein, to
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee 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 negligence or bad faith;
and

 

(c)                                  to indemnify each of the Trustee and any
predecessor for, and to hold it harmless against, any and all loss, damage,
claim, liability or expense, including taxes (other than taxes based on the
income of the Trustee) incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of this
trust, including the costs and expenses of defending itself against any claim (whether
asserted by any Holder or the Company or any other Person) or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

 

As security for the performance
of the obligations of the Company under this Section, the Trustee shall have a
claim prior to the Senior Notes upon all property and funds held or collected
by the Trustee as such, except funds held in trust for the benefit of Holders
of particular Senior Notes.

 

If the Trustee incurs expenses
or renders services after the occurrence of an Event of Default specified in
Sections 501(f) through (j), the expenses and compensation for such services
are intended to constitute expenses of administration under the Federal
Bankruptcy Code or any similar federal, state or foreign law for the relief of
debtors.

 

The provisions of this Section
shall survive the termination of this Indenture.

 

36

Section 607.  Conflicting
Interests.

 

The
Trustee shall comply with the provisions of Section 310(b) of the Trust
Indenture Act.

 

Section 608.  Corporate Trustee Required; Eligibility.

 

There
shall at all times be a Trustee hereunder which shall be eligible to act as
Trustee under Trust Indenture Act Section 310(a)(1) and which shall have a
combined capital and surplus of at least $50,000,000 and have its Corporate
Trust Office located in The City of New York (or if its Corporate Trust Office
shall not be located in The City of New York, which shall maintain an office in
The City of New York where the Senior Notes may be presented or surrendered and
notices and demands hereunder may be made or served) to the extent there is
such an institution eligible and willing to serve. If such corporation
publishes reports of condition at least annually pursuant to law or to the
requirements of federal, state, territorial or District of Columbia supervising
or examining authority, then, for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. 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 609.  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 under
Section 610.

 

(b)                                 The Trustee may, at any time, resign as Trustee by
giving written notice to the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within
30 days after the giving of such notice of resignation, the resigning
Trustee may petition, at the expense of the Company any court of competent
jurisdiction for the appointment of a successor Trustee.

 

(c)                                  The Trustee may, at any time, be removed as
Trustee by an Act of the Holders of a majority in principal amount of the
Outstanding Senior Notes delivered to the Trustee and the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered
to the Trustee within 30 days after the giving of such notice of removal, the
Trustee being removed may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee.

 

(d)                                 If at any time:

 

(1)                                  the Trustee shall fail to comply with the
provisions of Trust Indenture Act Section 310(b) after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a
Senior Note for at least six months, or

 

(2)                                  the Trustee shall cease to be eligible under Section 608
and shall fail to resign after written request therefor by the Company or by
any Holder who has been a bona fide Holder of a Senior Note for at least six
months, 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 case, (i) the
Company by a Board Resolution may remove the Trustee, or (ii) subject to
Section 514, the Holder of any Senior Note who has been a bona fide Holder
of a Senior Note for at least six months may, on behalf of himself and all others
similarly

 

37

 

situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

(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, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Senior Notes delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with Section 610, become the successor Trustee
and supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders of the
Senior Notes and so accepted appointment, the Holder of any Senior Note who has
been a bona fide Holder 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.

 

(f)                                    The Company shall give notice of each resignation
and each removal of the Trustee and each appointment of a successor Trustee by
mailing written notice of such event by first class mail, postage prepaid, to
the Holders of Senior Notes as their names and addresses appear in the Senior
Note Register. Each notice shall include the name of the successor Trustee and
the address of its Corporate Trust Office.

 

Section 610.  Acceptance
of Appointment by Successor.

 

Every successor Trustee
appointed hereunder shall execute, acknowledge and deliver to the Company and
to the retiring Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee; provided, however, that
the retiring Trustee shall continue to be entitled to the benefit of
Section 606(c). On request of the Company or the successor Trustee, such
retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all such 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. Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts.

 

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 611. 
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 of the corporate trust business of the Trustee, shall be the successor of
the Trustee hereunder, provided such corporation 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 Senior
Notes 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 Senior Notes so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Senior Notes.

 

38

 

Section 612.  Preferential
Collection of Claims Against Company.

 

If and when the Trustee shall be
or become a creditor of the Company (or any other obligor under the Senior
Notes), the Trustee shall be subject to the provisions of the Trust Indenture
Act regarding the collection of claims against the Company (or any such other
obligor).

 

ARTICLE SEVEN

 

HOLDERS’ LISTS AND REPORTS BY

TRUSTEE AND COMPANY

 

Section 701.  Disclosure
of Names and Addresses of Holders.

 

Every Holder of Senior Notes, by
receiving and holding the same, agrees with the Company and the Trustee that
neither the Company nor the Trustee or any agent of either of them shall be
held accountable by reason of the disclosure of any information as to the names
and addresses of the Holders in accordance with Trust Indenture Act
Section 312, 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 Trust Indenture Act
Section 312.

 

Section 702.  Reports by Trustee .

 

(a)                                  Within 60 days after May 15 of each year
commencing with the first May 15 after the first issuance of Senior Notes,
the Trustee shall transmit by mail to all Holders, as their names and addresses
appear in the Senior Note Register, as provided in Trust Indenture Act
Section 313(c), a brief report dated as of such May 15 if required by
Trust Indenture Act Section 313(a).

 

(b)                                 A copy of each such report shall, at the time of
such transmission to Holders, be filed by the Trustee with each stock exchange,
if any, upon which the Senior Notes are listed, with the Commission and with
the Company. The Company will promptly notify the Trustee when the Senior Notes
are listed on any stock exchange and of any delisting thereof.

 

Section 703.  Reports by Company.

 

The Company shall:

 

(a)                                  file with the Trustee, within 15 days after
the Company files the same with the Commission, copies of the annual reports
and of the information, documents and other reports (or copies of such portions
of any of the foregoing as the Commission may from time to time by rules and
regulations prescribe) which the Company is required to file with the
Commission pursuant to Section 1016(c) of this Indenture;

 

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

 

(c)                                  transmit by mail to all Holders, as their names
and addresses appear in the Senior Note Register, (i) within 30 days
after the filing thereof with the Trustee, in the manner and to the extent
provided in Trust Indenture Act Section 313(c), such summaries of any
information, documents and reports required to be filed by the Company pursuant
to Subsections (a) and (b) of this Section as may be required by
rules and regulations prescribed from time to time by the Commission and
(ii) within 30 days after the mailing thereof to shareholders of the
Company, all reports and other documents sent by the Company to its
shareholders.

 

Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any

 

39

 

information contained therein or determinable
from information contained therein, including the Company’s compliance with any
of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

 

ARTICLE EIGHT

 

CONSOLIDATION, MERGER,

CONVEYANCE, TRANSFER OR LEASE

 

Section 801.  Company May Consolidate, Etc., Only on Certain Terms.

 

The Company shall not amalgamate
or consolidate with, or merge with or into, any other Person or sell, assign,
convey, transfer, lease or otherwise dispose of all or substantially all of its
properties and assets substantially as an entirety to any Person or group of
affiliated Persons unless at the time and after giving effect thereto:

 

(i)                                     either (a) the Company shall be the
continuing company or corporation or (b) the Person (if other than the
Company) formed by such amalgamation, consolidation or merger, or to which such
sale, assignment, transfer, lease, conveyance or disposition shall have been
made (the “Surviving Entity”), is a company or corporation duly organized and
validly existing under the laws of the Islands of Bermuda, the United States of
America, any state thereof or the District of Columbia and shall, in either
case, expressly assume by supplemental indenture hereto, executed and delivered
to the Trustee, in form satisfactory to the Trustee, all the obligations of the
Company under the Senior Notes and this Indenture, and this Indenture shall
remain in full force and effect;

 

(ii)                                  immediately prior to such transaction, and
immediately after giving effect to such transaction on a pro forma basis, no Default or Event of
Default shall have occurred and be continuing;

 

(iii)                               except as provided for in Section 1018, the Consolidated Net Worth
of the Company (or the Surviving Entity if the Company is not the continuing
obligor under this Indenture), on a pro
forma basis after giving effect to such transaction, is not less
than the Consolidated Net Worth of the Company immediately prior to such
transaction;

 

(iv)                              except as provided for in Section 1018, immediately after giving
effect to such transaction on a pro forma basis, the Company (or the Surviving
Entity if the Company is not the continuing obligor under this Indenture) would
be able to Incur at least $1.00 of additional Indebtedness pursuant to
Section 1007 (excluding Permitted Indebtedness);

 

(v)                                 the Surviving Entity formed by such amalgamation,
consolidation, merger, conveyance, transfer or lease (if such person is
organized and validly existing under the laws of a jurisdiction other than the
United States, any State thereof, or the District of Columbia) agrees to
indemnify the Holder of each Senior Note against (a) any tax, assessment
or governmental charge imposed on any such Holder or required to be withheld or
deducted from any payment to such Holder as a consequence of such amalgamation,
consolidation, merger, conveyance, transfer or lease and (b) any costs or
expenses of the act of such amalgamation, consolidation, merger, conveyance,
transfer or lease; and

 

(vi)                              the Company has delivered to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion
of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture, if one is required by this Section 801, comply
with this Section 801 and that all conditions precedent herein provided for
relating to such transaction have been complied with.

 

40

 

Section 802.  Successor Substituted.

 

Upon any amalgamation or
consolidation or merger or any sale, assignment, transfer, lease or conveyance
or other disposition of all or substantially all of the assets of the Company
in accordance with Section 801, the successor Person formed by such
amalgamation or consolidation or into which the Company is merged or to which
such sale, assignment, transfer, lease, conveyance or other disposition is made
shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein.

 

ARTICLE NINE

 

SUPPLEMENTAL INDENTURES

 

 

Section 901.  Supplemental
Indentures Without Consent of Holders.

 

Without the consent of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto in form satisfactory to the Trustee, for any of the
following purposes:

 

(a)                                  to evidence the succession in accordance with
Section 801 of another Person to the Company and the assumption by any
such successor of the covenants of the Company herein and in the Senior Notes;

 

(b)                                 to add to the covenants of the Company for the
benefit of the Holders, or to surrender any right or power herein or in the
Senior Notes conferred upon the Company;

 

(c)                                  to cure any ambiguity, to correct or supplement
any provision herein which may be defective or inconsistent with any other
provision herein, or to make any other provisions with respect to matters or
questions arising under this Indenture; provided
that, in each case, such provisions shall not adversely affect the interests of
the Holders;

 

(d)                                 to secure the Senior Notes;

 

(e)                                  to make any other change that does not adversely
affect the rights of any Holder;

 

(f)                                    to comply with the requirements of the Commission
under the Trust Indenture Act; or

 

(g)                                 to evidence the appointment of a successor Trustee
upon the resignation or removal of the Trustee as Trustee, as provided in
Section 609 of the Indenture.

 

Section 902.  Supplemental
Indentures With Consent of Holders.

 

With the consent of the Holders
of not less than a majority in principal amount of the Outstanding Senior
Notes, by Act of such Holders delivered to the Company and the Trustee, the
Company, when authorized by a Board Resolution, and the Trustee may enter into
one or more indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or waiving or modifying in any manner the rights of the Holders
under this Indenture; provided, however,
that no such supplemental indenture, amendment or waiver shall, without the
consent of the Holder of each Outstanding Senior Note affected thereby:

 

(a)                                  change the Stated Maturity of the principal of, or
any installment of Interest on, any Senior Note or reduce the principal amount
thereof or reduce the rate of interest or any premium payable upon the
redemption thereof, or reduce any Additional Amounts payable, if any, or change
the coin or currency in which the principal of any Senior Note or any premium
or the Interest thereon is payable, or impair the right to institute suit for
the enforcement of any such payment after the Stated Maturity thereof (or, in
the case of redemption, on or after the

 

41

 

Redemption Date) or modify the
obligation of the Company to purchase Senior Notes upon a Change of Control; or

 

(b)                                 reduce the percentage in principal amount of the
Outstanding Senior Notes, the consent of whose Holders is required for any such
supplemental indenture or the consent of whose Holders is required for any
waiver (of compliance with certain provisions of this Indenture or certain
Defaults hereunder and their consequences) provided for in this Indenture; or

 

(c)                                  modify any of the provisions of this Section or
Section 513 or Section 1017, except to increase the percentage or
principal amount of Outstanding Senior Notes the consent of whose Holders is
required for the actions described in such sections, or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Senior Note affected thereby.

 

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

 

Section 903.  Execution of
Supplemental Indentures.

 

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 Trust Indenture Act
Sections 315(a) through 315(d) and Section 602 hereof) shall be fully
protected in relying upon, an Opinion of Counsel and an Officers’ Certificate
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

 

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 Senior Notes 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 Senior Notes to
Supplemental Indentures.

 

Senior Notes 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 Senior Notes so modified as
to conform, in the opinion of the Trustee and the Company, to any such
supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Senior
Notes.

 

ARTICLE TEN

 

COVENANTS

 

 

Section 1001.  Payment of
Principal, Premium, Interest and Additional Amounts.

 

(a)                                  The Company will duly and punctually pay the
principal of, and premium, if any, and Interest on, the Senior Notes in
accordance with the terms of the Senior Notes and this Indenture.

 

42

 

(b)                                 The Company hereby further agrees, subject to the
limitations and exceptions set forth below, that if any deduction or
withholding for any present or future taxes, assessments or other governmental
charges of the jurisdiction (or any political subdivision or taxing authority
thereof or therein) in which the Company is incorporated or resident for tax
purposes shall at any time be required by such jurisdiction (or any such
political subdivision or taxing authority) in respect of any amounts to be paid
by the Company under the Senior Notes, then the Company will pay to the Holder
of a Senior Note as supplemental interest such additional amounts (“Additional
Amounts”) as may be necessary in order that the net amounts paid to the Holder
of such Senior Note who, with respect to any such tax, assessment or other
governmental charge, is not resident in such jurisdiction, after such deduction
or withholding, shall be not less than the amounts specified in such Senior
Note to which such Holder is entitled; provided,
however, that the Company shall not be required to make any payment
of Additional Amounts (i) for or on account of any such tax, assessment or
governmental charge imposed by the jurisdiction in which the Company is
incorporated or resident for tax purposes (or any political subdivision or
taxing authority thereof or therein) or (ii) for or on account of:

 

(A)                              any tax, assessment or other governmental charge which would not have
been imposed but for (x) the existence of any present or former connection
between such Holder (or between a fiduciary, settlor, beneficiary, member or
shareholder of, or possessor of a power over, such Holder, if such Holder is an
estate, trust, partnership or corporation) and the taxing jurisdiction or any
political subdivision or territory or possession thereof or area subject to its
jurisdiction, including, without limitation, such Holder (or such fiduciary,
settlor, beneficiary, member, shareholder or possessor) being or having been a
citizen or resident thereof or being or having been present or engaged in trade
or business therein or having or having had a permanent establishment therein
or (y) the presentation of a Senior Note (where presentation is required)
for payment on a date more than 30 days after the date on which such
payment became due and payable or the date on which payment thereof is duly
provided for, whichever occurs later;

 

(B)                                any estate, inheritance, gift, sale, transfer, personal property or
similar tax, assessment or other governmental charge;

 

43

 

(C)                                any tax, assessment or other governmental charge which is payable
otherwise than by withholding from payments of (or in respect of) principal of,
or premium, if any, or interest on, the Senior Notes;

 

(D)                               any tax, assessment or other governmental charge that is imposed or
withheld by reason of the failure to comply by the Holder or the beneficial
owner of a Senior Note with a request of the Company addressed to the Holder
(x) to provide information, documents and other evidence concerning the
nationality, residence or identity of the Holder or such beneficial owner or
(y) to make and deliver any declaration or other similar claim (other than
a claim for refund of a tax, assessment or other governmental charge withheld
by the Company) or satisfy any information or reporting requirement, which, in
the case of (x) or (y), is required or imposed by a statute, treaty, regulation
or administrative practice of the taxing jurisdiction as a precondition to
exemption from all or part of such tax, assessment or other governmental
charge; or

 

(E)                                 any combination of items (A), (B), (C) and
(D);

 

nor shall Additional Amounts be
paid with respect to any payment of the principal of, or any premium or
interest on, any Senior Note to any Holder who is a fiduciary or partnership or
other than the sole beneficial owner of such payment to the extent such payment
would be required by the laws of the jurisdictions in which the Company is
incorporated or resident for tax purposes (or any political subdivision or
taxing authority thereof or therein) to be included in the income for tax
purposes of a beneficiary or settlor with respect to such fiduciary or a member
of such partnership or a beneficial owner who would not have been entitled to
such Additional Amounts had it been the Holder of the Senior Note.

 

Whenever in this Indenture (including, without limitation, the form of
Senior Note set forth in Exhibit A attached hereto) there is mentioned, in
any context, the payment of the principal of, or any premium or Interest on, or
in respect of, any Senior Note or the net proceeds received on the sale or
exchange of any Senior Note, such mention shall be deemed to include mention of
the payment of Additional Amounts provided for in this Section to the extent
that, in such context, Additional Amounts are, were or would be payable in
respect thereof pursuant to the provisions of this Section and express mention
of the payment of Additional Amounts (if applicable) in any provisions hereof
shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

 

At least ten days prior to the first Interest Payment Date, and at
least ten days prior to each date of payment of principal and any premium or
Interest, if there has been any change with respect to the matters set forth in
the below-mentioned Officers’ Certificate, the Company will furnish the Trustee
and the Company’s principal Paying Agent or Paying Agents, if other than the
Trustee, with an Officers’ Certificate instructing the Trustee and such Paying
Agent or Paying Agents whether such payment of principal of and any premium or
Interest on the Senior Notes shall be made to Holders of Senior Notes without
withholding for or on account of any tax, assessment or other governmental
charge described in the Senior Notes. If any such withholding shall be
required, then such Officers’ Certificate shall specify by country the amount,
if any, required to be withheld on such payments to such Holders of Senior
Notes and the Company will pay to the Trustee or such Paying Agent or Paying
Agents the Additional Amounts required by this Section. The Company covenants to
indemnify the Trustee and any Paying Agent for, and to hold them harmless
against, any loss, liability or expense reasonably incurred without negligence
or bad faith on their part arising out of or in connection with actions taken
or omitted by any of them in reliance on any Officers’ Certificate furnished
pursuant to this Section.

 

44

 

Section 1002.  Maintenance of Office or
Agency.

 

The Company will maintain, in
The City of New York, an office or agency where Senior Notes may be presented
or surrendered for payment, where Senior Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Senior Notes and this Indenture may be served. If
the Corporate Trust Office is located in the City of New York, then it shall be
such office or agency of the Company, unless the Company shall designate and
maintain some other office or agency for one or more of such purposes. The
Company will give prompt written notice to the Trustee of any change in the
location of any such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office, and the Company
hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

 

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

 

Section 1003.  Money for Senior Note Payments
to Be Held in Trust; Designation of Paying Agent.

 

If the Company shall at any time
act as its own Paying Agent, it will, on or before each due date of the
principal of, or premium, if any, or Interest on, any of the Senior Notes,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the principal, 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 shall have
one or more Paying Agents for the Senior Notes, it will, on or before each due
date of the principal of, or premium, if any, or Interest on, any Senior Notes,
deposit with a Paying Agent a sum in same day funds (or New York Clearing House
funds if such deposit is made prior to the date on which such deposit is
required to be made) sufficient to pay the principal, premium, if any, or
Interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or Interest and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of such
action or any failure so to act.

 

The Company will cause each
Paying Agent 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:

 

(a)                                  hold all sums held by it for the payment of the
principal of, or premium, if any, or Interest on, Senior Notes 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;

 

(b)                                 give the Trustee notice of any Default by the
Company (or any other obligor upon the Senior Notes) in the making of any
payment of principal, premium, if any, or Interest; and

 

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

 

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

 

45

 

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, in trust for the
payment of the principal of, or premium, if any, or Interest on, any Senior
Note and remaining unclaimed for two years after such principal, 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) shall be discharged from such
trust; and the Holder of such Senior Note shall thereafter, as an unsecured
general creditor, look only to the Company 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 as trustee thereof, shall thereupon cease.

 

The Company hereby initially
designates the Trustee to act as Paying Agent hereunder.

 

Section 1004.  Corporate Existence.

 

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

 

Section 1005.  Payment of Taxes and Other
Claims.

 

The Company will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (a) all taxes, assessments and governmental charges levied or
imposed upon it or any Subsidiary or upon the income, profits or property of
the Company or any of its Subsidiaries and (b) all lawful claims for
labor, materials and supplies, which, if unpaid, might by law become a Lien
upon the property of the Company or any of its Subsidiaries; provided, however, that the Company shall
not be required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings properly instituted
and diligently conducted and in respect of which appropriate reserves are being
maintained in accordance with GAAP consistently applied.

 

Section 1006.  Maintenance
of Properties.

 

The Company shall cause all
properties owned by, or leased to, it or any Subsidiary of the Company and
necessary in the conduct of its business or the business of such Subsidiary to
be maintained and kept in normal condition, repair and working order, ordinary
wear and tear excepted; provided, however,
that nothing in this Section shall prevent the Company or any Subsidiary of the
Company from discontinuing the use, operation or maintenance of any of such
properties, or disposing of any of them, if such discontinuance or disposal is,
in the judgment of the Board of Directors or the board of directors of the
Subsidiary concerned, or of any officer of the Company or such Subsidiary
having managerial responsibility for any such property, desirable in the
conduct of the business of the Company or any Subsidiary of the Company and if
such discontinuance or disposal is not adverse in any material respect to the
Holders of the Senior Notes.

 

The Company shall provide or
cause to be provided, for itself and any Subsidiaries of the Company, insurance
(including appropriate self-insurance) against loss or damage of the kinds
customarily insured against by corporations similarly situated and owning like
properties in the same general areas in which the Company or such Subsidiaries
operate.

 

46

 

Section 1007.  Limitation
on Indebtedness.

 

Except as provided for in
Section 1018, the Company will not, and will not permit any of its
Subsidiaries to, Incur any Indebtedness (excluding Permitted Indebtedness)
unless, at the time of such Incurrence and after giving effect thereto on a pro forma basis, SCL’s Cash Flow Coverage
Ratio for the Reference Period would have equaled or exceeded 1.75 to 1.0.

 

Section 1008.  Limitation
on Restricted Payments.

 

(a)                                  Except as provided for in Section 1018, the
Company will not, and will not permit any of its Subsidiaries to, directly or
indirectly,

 

(i)                                     declare or pay any dividend on, or make any
distribution to holders of, any shares of its or such Subsidiary’s Capital
Stock (other than dividends or distributions payable in shares of its or such
Subsidiary’s Capital Stock or in options, warrants or other rights to purchase
such Capital Stock, but excluding dividends or distributions payable in
Redeemable Capital Stock or in options, warrants or other rights to purchase
Redeemable Capital Stock),

 

(ii)                                  purchase, redeem or acquire or retire for value,
any Capital Stock of the Company or any Subsidiary or any options, warrants or
other rights to acquire such Capital Stock (except pursuant to mandatory
sinking fund requirements or at the Stated Maturity thereof, which payments may
be made at any time during the year prior to the required sinking fund payment
date or Stated Maturity),

 

(iii)                               make any voluntary or optional principal payment, or voluntary or
optional redemption, repurchase, defeasance, or other acquisition or retirement
for value, of Indebtedness of the Company that is subordinated in right of
payment to the Senior Notes (except pursuant to mandatory sinking fund
requirements or at the Stated Maturity thereof, which payments may be made at
any time during the year prior to the required sinking fund payment date or
Stated Maturity), or

 

(iv)                              make any Investment (other than any Permitted Investment) in any Person
other than a Subsidiary and other than a Person which becomes a Subsidiary as a
result of such Investment

 

(such payments or other actions
described in the foregoing clauses (i) through (iv) are collectively
referred to as “Restricted Payments”), unless at the time of and after giving
effect to the proposed Restricted Payment (the amount of any such Restricted
Payment, if other than cash, shall be as determined by the Board of Directors,
whose determination shall be conclusive and evidenced by a Board Resolution),
(1) no Default or Event of Default shall have occurred and be continuing
or shall occur as a result of such Restricted Payment, (2) the Company
could Incur at least $1.00 of additional Indebtedness under Section 1007 (excluding
Permitted Indebtedness) and (3) the aggregate amount of all Restricted
Payments declared or made after July 1, 1996 (the date of the indenture
providing for the 10 1/2% Senior Notes) shall not exceed
the sum of:

 

(A)                              50% of the aggregate cumulative Consolidated Net Income Available for
Restricted Payments accrued on a cumulative basis during the period (taken as
one accounting period) beginning on April 1, 1993 and ending on the last
day of the Company’s last fiscal quarter ending prior to the date of such
proposed Restricted Payment (or, if such aggregate cumulative Consolidated Net
Income Available for Restricted Payments shall be a loss, minus 100% of such
loss), plus

 

(B)                                the aggregate net proceeds, including the Fair Market Value of property other
than cash (as determined by the Board of Directors), received after
February 1, 1998 (the date of the indenture providing for the 7 7/8%
Senior Notes) by the Company from the issuance or sale (other than to any of
its Subsidiaries) of shares of Capital Stock of the Company (other than

 

47

 

Redeemable Capital Stock) or
warrants, options or rights to purchase such shares of Capital Stock of the
Company (other than Redeemable Capital Stock), plus

 

(C)                                the aggregate net proceeds, including the Fair Market Value of property
other than cash (as determined by the Board of Directors), received after
February 1, 1998 by the Company (other than from any of its Subsidiaries)
upon the exercise of options, warrants or rights to purchase shares of Capital
Stock of the Company (other than Redeemable Capital Stock), plus

 

(D)                               the aggregate net proceeds, including the Fair Market Value of property
other than cash (as determined by the Board of Directors), received after February 1,
1998 by the Company from the issue or sale of debt securities or Redeemable
Capital Stock that, in either case, have been converted into or exchanged for
Capital Stock of the Company (other than Redeemable Capital Stock), plus the
aggregate cash received by the Company at the time of such conversion or
exchange, plus

 

(E)                                 an amount equal to the net reduction after
February 1, 1998 in Investments in any third Person not a Subsidiary of
the Company resulting from payments of interest on Indebtedness, dividends,
repayments of loans or advances, or other transfers of assets, in each case to
the Company or any Subsidiary from any such third Person, but only to the
extent such payments (i) were not otherwise included in the Consolidated
Net Income of SCL, (ii) were not deducted from the Investment of the
Company in any third Person not a Subsidiary pursuant to clause (iv) of
the definition of Permitted Investments and (iii) do not exceed in the
case of any such third Person the amount of Investments previously made by the
Company or any Subsidiary in such third Person, plus

 

(F)                                 $15,000,000.

 

(b)                                 The foregoing clause (a) will not be violated
by reason of and will not take into account:

 

(i)                                     the payment of any dividend within 60 days
after the date of declaration thereof, if at such declaration date such
declaration complied with the foregoing provision (in which event such dividend
shall be deemed to have been paid on such date of declaration thereof for
purposes of the foregoing provision),

 

(ii)                                  a Restricted Payment by a Subsidiary to the
Company or to another Subsidiary of the Company or by the Company to a
Subsidiary of the Company, provided
that any Restricted Payment by a Subsidiary of the Company relating to Capital
Stock held by the Company or a Subsidiary of the Company shall also be
permitted to be made to Persons other than the Company or a Subsidiary of the
Company so long as such Restricted Payment is made to the Company or such
Subsidiary of the Company and such other Person pro rata based on the ownership interests in such Capital
Stock of the Company or such Subsidiary, on the one hand, and such other
Person, on the other hand,

 

(iii)                               the issuance of Capital Stock (other than Redeemable Capital Stock) upon
the exercise by employees of options issued pursuant to employee benefit plans,
or

 

(iv)                              so long as no Default or Event of Default is in existence,

 

(A)                              the acquisition or retirement for value of any shares of Capital Stock
or Subordinated Indebtedness prior to a Stated Maturity of such Indebtedness by
exchange for, or upon conversion of, or out of the proceeds of the
substantially concurrent sale for cash (other than to a Subsidiary) of, other
shares of Capital Stock (other than Redeemable Capital Stock) of the Company or
Indebtedness of the type, and satisfying the requirements, described in
clause (ix) of the definition of Permitted Indebtedness (except that any
Indebtedness of the Company issued in exchange for the Series A

 

48

 

Debentures or the Series B
Debentures shall only be required to satisfy the requirements that
(xx) immediately after giving effect to such exchange, no Default or Event
of Default shall have occurred and be continuing, and (yy) the Average
Life to Stated Maturity and Stated Maturity of such Indebtedness must exceed
the Average Life to Stated Maturity and Stated Maturity of the Senior Notes,
respectively),

 

(B)                                the payment of a dividend on Preferred Shares (including Redeemable
Capital Stock) outstanding on the date of this Indenture and Preferred Shares
issued to refinance such Preferred Shares as permitted by preceding
clause (A) at rates not in excess of those set forth in the terms of such
Preferred Shares on the date hereof, and

 

(C)                                the payment of dividends on Redeemable Capital Stock issued after the
date of this Indenture.

 

Notwithstanding anything to the
contrary herein, the aggregate net proceeds, including the Fair Market Value of
property other than cash, received by the Company from the issuance or sale of
shares of Capital Stock (other than Redeemable Capital Stock) of the Company
pursuant to clauses (iii) and (iv)(A) above shall not be counted for
purposes of increasing the available amount of Restricted Payments pursuant to
clause (a)(3)(B) above.

 

Section 1009.  Transactions
with Affiliates.

 

Except as provided for in
Section 1018, the Company will not, and will not permit any of its
Subsidiaries to, directly or indirectly, enter into any transaction or series
of related transactions (including, without limitation, the sale, purchase,
exchange or lease of assets, property or services, the entering into of any
contract, agreement or understanding, any Investment, or the payment of any
compensation) with any Affiliate of the Company (other than a Subsidiary thereof)
unless (i) such transaction or series of transactions is or are on terms
that are no less favorable to the Company or such Subsidiary, as the case may
be, than could have been obtained at the time of such transaction or
transactions in a comparable transaction in arm’s-length dealings with an
unaffiliated third party and (ii) with respect to any transaction or
series of transactions involving aggregate payments in excess of $15,000,000,
the Company delivers an Officers’ Certificate to the Trustee certifying that
such transaction or series of transactions complies with clause (i) above
and that such transaction or series of transactions has received the approval
of a majority of the disinterested directors of the Board of Directors and for
which the Company or such Subsidiary delivers to the Trustee a written opinion
of a recognized independent financial advisor, auditing or appraisal firm
stating that the transaction is fair to the Company or such Subsidiary from a
financial point of view or in the case of the sale by the Company or a
Subsidiary of an asset, that the consideration received for such asset equals
or exceeds the appraised value of such asset, or in the case of a purchase by
the Company or a Subsidiary of an asset, that the consideration paid for such
asset equals or does not exceed the appraised value of such asset, provided that the foregoing restriction
shall not apply to transactions pursuant to agreements, in place and as in
place as of the date hereof, disclosed or described in the Prospectus or in the
Company’s Annual Report on Form 10-K to the Commission for the year ended
December 31, 2002, and any extensions of such agreements and any
replacements of such agreements, provided
such replacements have substantially similar terms to the agreements being
replaced.

 

Section 1010.  Restriction
on Preferred Shares of Subsidiaries.

 

Except as provided for in
Section 1018, the Company will not permit any of its Subsidiaries to issue
any Preferred Shares (other than Redeemable Capital Stock, to the extent such
Redeemable Capital Stock is otherwise permitted to be issued in accordance with
the terms of this Indenture) or warrants, options or other rights to purchase
or otherwise acquire any Preferred Shares of such Subsidiary (other than
Redeemable Capital Stock, to the extent such Redeemable Capital Stock is
otherwise permitted to be issued in accordance with the terms of this
Indenture) or permit any Person

 

49

 

to own or hold an interest in any Preferred
Shares of such Subsidiary (other than Redeemable Capital Stock, to the extent
such Redeemable Capital Stock is otherwise permitted to be issued in accordance
with the terms of this Indenture), provided,
however, that this Section 1010 shall not restrict any
Subsidiary from issuing Preferred Shares to and held by the Company or a wholly
owned Subsidiary of the Company.

 

Section 1011.  Limitation
on Dividends and Other Payment Restrictions Affecting Subsidiaries.

 

The Company will not, and will
not permit any Material Subsidiary to, create or otherwise cause or suffer to
exist or become effective any consensual encumbrance or restriction of any kind
on the ability of any Material Subsidiary to (a) pay dividends or make any
other distribution on its Capital Stock, (b) pay any Indebtedness owed to
the Company or any Subsidiary, (c) make loans or advances to the Company
or any Subsidiary or (d) transfer any of its property or assets to the
Company or any Subsidiary, except (i) any encumbrance or restriction with
respect to a Subsidiary that is not a Subsidiary of the Company on the date
hereof, in existence at the time such Person becomes a Subsidiary of the
Company or created on the date it becomes a Subsidiary so long as such
encumbrance or restriction was not created in contemplation of such Person
becoming a Subsidiary; (ii) any encumbrance or restriction with respect to
a Subsidiary that had no assets immediately prior to the time the encumbrance
or restriction was created and which encumbrance or restriction was created in
connection with such Subsidiary’s acquisition of assets and the financing
thereof; (iii) any encumbrance or restriction arising under or by reason
of applicable law; (iv) any restriction on the ability of a Subsidiary to
transfer an asset or property to the extent such restriction arises pursuant to
a security interest or mortgage entered into in connection with the financing
of the acquisition of such asset or property; and (v) any encumbrance or
restriction pursuant to any agreement that extends, refinances, renews or
replaces any agreement containing any of the restrictions described in the
foregoing clauses (i), (ii) and (iv), provided
that the terms and conditions of any such restrictions are not materially less
favorable to the Holders of the Senior Notes than those under or pursuant to
the agreement extended, refinanced, renewed or replaced. The Incurrence of
Indebtedness shall not be considered the creation, existence or effectiveness
of a consensual encumbrance or restriction merely because the obligation to
repay such Indebtedness may limit such Subsidiary’s cash flow available to make
any of the payments described in clauses (a) through (d) above.

 

Section 1012.  Purchase of
Senior Notes upon Change of Control.

 

(a)                                  If there shall have occurred a Change of Control,
the Senior Notes shall be purchased by the Company, at the option of the Holder
thereof, in whole or in part in integral multiples of $1,000, on a Business Day
that is not earlier than 45 days nor later than 60 days from the date
the Change of Control Notice referred to below is given to Holders of the
Senior Notes or such later date as may be necessary for the Company to comply
with requirements under the Exchange Act (such date, or such later date, being
the “Change of Control Purchase Date”), at a purchase price in cash (the
“Change of Control Purchase Price”) in an amount equal to 101% of the principal
amount of such Senior Notes plus accrued and unpaid Interest (including any
Defaulted Interest), if any, to the Change of Control Purchase Date, subject to
satisfaction by or on behalf of the Holder of the Senior Notes of the
requirements set forth in Section 1012(c).

 

(b)                                 Within 30 days after the occurrence of a
Change of Control, the Company shall give written notice of such Change of
Control (a “Change of Control Notice”) to the Trustee, and the Trustee shall
promptly upon its receipt of such notice give a copy of such notice to Holders
of the Senior Notes in the manner specified in Section 107. The Trustee shall
be under no obligation to ascertain the occurrence of a Change of Control or to
give notice with respect thereto other than as provided above upon receipt of a
Change of Control Notice from the Company. The Change of

 

50

 

Control Notice shall include a
form of Change of Control Purchase Notice to be completed by the Holder of the
Senior Notes and shall state:

 

(i)                                     the events causing the Change of Control and the
date such Change of Control is deemed to have occurred for purposes of this
Section 1012;

 

(ii)                                  the date by which a Holder of the Senior Notes
must give a Change of Control Purchase Notice;

 

(iii)                               the Change of Control Purchase Price;

 

(iv)                              the Change of Control Purchase Date;

 

(v)                                 that any Senior Note not purchased will continue
to accrue interest;

 

(vi)                              that the Company will pay the Change of Control Purchase Price, promptly
following the Change of Control Purchase Date, for any Senior Notes that have
been properly tendered and not withdrawn; and

 

(vii)                           the procedures a Holder of the Senior Notes must follow to exercise
rights under this Section 1012 and a brief description of those rights and
the limitations on such rights set forth in this Section 1012.

 

(c)                                  A Holder of the Senior Notes may exercise its
rights specified in Section 1012(a) upon (i) delivery to any Paying
Agent of a written notice (a “Change of Control Purchase Notice”) at any time
prior to the close of business on the Change of Control Purchase Date, stating
(A) the certificate number of the Senior Note that the Holder of the
Senior Notes will deliver to be purchased and (B) the portion of the
principal amount of the Senior Note that the Holder of the Senior Notes will
deliver to be purchased, which portion must be $1,000 or an integral multiple
thereof and (ii) delivery of such Senior Note to such Paying Agent at the
office specified for such purpose in the Change of Control Notice prior to, on
or after the Change of Control Purchase Date (together with all necessary
endorsements), such delivery being a condition to receipt by the Holder of the
Senior Notes of the Change of Control Purchase Price therefor; provided, however, that such Change of
Control Purchase Price shall be so paid only if the Senior Note so delivered to
such office shall conform in all respects to the description thereof set forth
in the related Change of Control Purchase Notice. A Change of Control Purchase
Notice may be withdrawn by delivering to the Paying Agent, not later than the
close of business on the third Business Day immediately preceding the Change of
Control Purchase Date, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder of the Senior Notes, the principal amount
of Senior Notes covered by the Change of Control Purchase Notice, and a
statement that such Holder of the Senior Notes is withdrawing his election to
have such Senior Notes purchased. If a Holder of the Senior Notes has elected
to deliver to the Company for purchase a portion of a Senior Note and not
timely withdrawn such election, and if the principal amount of such portion is
$1,000 or an integral multiple of $1,000, the Company shall purchase such
portion from the Holder thereof pursuant to this Section 1012. Provisions
of this Indenture that apply to the purchase of all of a Senior Note also apply
to the purchase of a portion of such Senior Note. Each Paying Agent shall
promptly notify the Company of the receipt by the former of any and all Change
of Control Purchase Notices.

 

(d)                                 Upon receipt by any Paying Agent of a Change of
Control Purchase Notice which is not timely withdrawn, the Holder of the Senior
Note in respect of which such Change of Control Purchase Notice was given shall
thereafter be entitled to receive solely the Change of Control Purchase Price with
respect to such Senior Note. Such Change of Control Purchase Price shall be
paid to such Holder promptly following the later of the Business Day following
the Change of Control Purchase Date (provided the conditions in
Section 1012(c) have been satisfied) and the

 

51

 

time of delivery of such Senior
Note to the relevant Paying Agent at the office of such Paying Agent by the
Holder thereof in the manner required by Section 1012(c).

 

(e)                                  On or prior to the Change of Control Purchase
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money in same day funds (or New York
Clearing House funds if such deposit is made prior to the Change of Control
Purchase Date) sufficient to pay the Change of Control Purchase Price of all
the Senior Notes or portions thereof which are to be purchased on that date.

 

(f)                                    Upon surrender of any such Senior Note for
purchase in accordance with the foregoing provisions, such Senior Note shall be
paid by the Company at the Change of Control Purchase Price; provided, however, that installments of
Interest whose Stated Maturity is on or prior to the Change of Control Purchase
Date shall be payable to the Holders of such Senior Notes, or one or more
Predecessor Senior Notes, registered as such on the relevant Regular Record
Dates according to the terms and the provisions of Section 307. If any Senior
Note tendered for purchase shall not be so paid upon surrender thereof, the
principal thereof (and premium, if any, thereon) shall, until paid, bear
interest from the Change of Control Purchase Date at the rate borne by such
Senior Note.

 

(g)                                 Any Senior Note that is to be purchased only in
part shall be surrendered to a Paying Agent at the office of such Paying Agent
(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing), and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Senior Note, without service
charge, one or more new Senior Notes of any authorized denomination as
requested by such Holder in an aggregate principal amount equal to, and in
exchange for, the portion of the principal amount of the Senior Note so
surrendered that is not purchased.

 

Section 1013.  Disposition
of Proceeds of Asset Sales.

 

Except as provided for in
Section 1018,

 

(a)                                  the Company will not, and will not permit any of
its Subsidiaries to, make any Asset Sale unless

 

(i)                                     the Company or such Subsidiary, as the case may
be, receives consideration (including by way of the purchaser assuming
Indebtedness of the Company or any of its Subsidiaries) at the time of such
Asset Sale at least equal to the Fair Market Value of the shares or assets sold
or otherwise disposed of,

 

(ii)                                  if the Fair Market Value of such Asset Sale
exceeds $25,000,000, at least 75% of such consideration consists of cash
(including cash to be received after the date of such sale pursuant to a lease
not giving rise to a Capital Lease Obligation), Cash Equivalents or the assumption
of Indebtedness of the Company or any of its Subsidiaries by the purchaser, provided that, in the event of a sale by
the Company or any of its Subsidiaries of a hotel, the Fair Market Value of
which exceeds $25,000,000, at least 75% of such consideration consists of
(A) cash (including cash to be received after the date of such sale
pursuant to a lease not giving rise to a Capital Lease Obligation),
(B) Cash Equivalents, (C) the assumption of Indebtedness of the
Company or any of its Subsidiaries by the purchaser or (D) Indebtedness of
the purchaser or any Subsidiary of the purchaser secured by a perfected first
mortgage on the hotel being sold, and

 

52

 

(iii)                               no Default or Event of Default exists or would exist after giving effect
to such Asset Sale.

 

(b)                                 To the extent that the Net Cash Proceeds from any
Asset Sale are not applied to permanently repay Senior Indebtedness (including
the Senior Notes), and permanently reduce the commitments under the instruments
governing the Indebtedness so repaid, the Company or such Subsidiary, as the
case may be, may commit to apply the Net Cash Proceeds from such Asset Sale,
within 180 days of such Asset Sale (and in fact apply such Net Cash
Proceeds within 360 days of such Asset Sale), to an Investment in
properties and assets that will be used in the businesses of the Company and
its Subsidiaries as permitted or engaged in on the date of this Indenture or in
businesses similar or related thereto (“Replacement Assets”). Any Net Cash
Proceeds from any Asset Sale that are not applied to pay, acquire or retire
Senior Indebtedness, and are either not committed to an Investment in
Replacement Assets within 180 days of such Asset Sale or, if committed
within such 180-day period, are not invested in Replacement Assets within such
360-day period, constitute “Excess Proceeds”, provided that, in the event that
the Company is required to make and completes an Excess Proceeds Offer (as
defined in Subsection 1013(c)), upon such completion, the amount of Excess
Proceeds will be reset to zero and thereafter recalculated from time to time
according to the provisions of this Section 1013. The Trustee shall be
under no obligation to ascertain the existence of Excess Proceeds resulting from
any Asset Sale.

 

(c)                                  If, as of the first day of any calendar month, the
aggregate amount of Excess Proceeds not theretofore subject to an Excess
Proceeds Offer totals at least $10,000,000, the Company must, not later than
the fifteenth Business Day of such month, make an offer (an “Excess Proceeds
Offer”) to purchase from the holders of public, unsecured Indebtedness that is
not Subordinated Indebtedness (including from the Holders of the Senior Notes
on a pro rata basis an aggregate
principal amount of such Indebtedness equal to the Excess Proceeds on such
date, at a purchase price in cash equal to 100% of the principal amount of such
Indebtedness, plus accrued and unpaid interest (if any) (including Defaulted
Interest) to the date of purchase (the “Excess Proceeds Payment”). If the
aggregate principal amount of such Indebtedness validly tendered and not
withdrawn by holders thereof exceeds the Excess Proceeds, the Indebtedness to
be purchased will be selected on a pro rata
basis.

 

At any time that the Company is
required to commence an Excess Proceeds Offer, it shall mail a form of letter
of transmittal and a notice to the Trustee and each Holder of Senior Notes
receiving such Excess Proceeds Offer, which notice shall state:

 

(i)                                     that the Excess Proceeds Offer is being made
pursuant to this Section 1013 and that all Senior Notes validly tendered
will be accepted for payment on a pro rata
basis together with all other public, unsecured Indebtedness which is not
Subordinated Indebtedness;

 

(ii)                                  the purchase price and the date of purchase (which
shall be a Business Day no earlier than 30 days nor later than
40 days from the date such notice is mailed and which shall be a date
prior to the date of purchase, if any, established by the Company for the purchase
of any Indebtedness subordinated to the Senior Notes pursuant to any covenant
or other provision similar to this Section 1013) (the “Excess Proceeds
Payment Date”);

 

(iii)                               that any Senior Notes not tendered will continue to accrue interest;

 

(iv)                              that, unless the Company defaults in the payment of the Excess Proceeds
Payment, any Senior Notes accepted for payment pursuant to the Excess Proceeds
Offer shall cease to accrue interest after the Excess Proceeds Payment Date;

 

(v)                                 that Holders electing to have Senior Notes
purchased pursuant to the Excess Proceeds Offer will be required to surrender
the evidence of such Senior Notes, together with a properly completed copy of
the form of letter of transmittal enclosed therewith, to the

 

53

 

Paying Agent at the address
specified in the notice prior to the close of business on the Business Day
immediately preceding the Excess Proceeds Payment Date;

 

(vi)                              that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the third Business Day
immediately preceding the Excess Proceeds Payment Date, a facsimile
transmission or letter setting forth the name of such Holder, the type and
principal amount of Senior Notes delivered for purchase, and a statement that
such Holder is withdrawing his election to have such Senior Notes purchased;
and

 

(vii)                           that Holders whose Senior Notes are being purchased only in part will be
issued new Senior Notes, with identical terms and equal in principal amount to
the unpurchased portion of the Indebtedness surrendered; provided that all Senior Notes purchased
and each new evidence of Senior Notes issued shall be in an original principal
amount of $1,000 or an integral multiple thereof.

 

On or prior to the date notice is mailed to the Trustee and each holder
of Senior Notes receiving such Excess Proceeds Offer, the Company shall furnish
the Trustee with an Officers’ Certificate stating the amount of the Excess
Proceeds Payment.

 

On the Excess Proceeds Payment Date, the Company shall:

 

(i)                                     accept for payment on a pro rata basis public, unsecured Indebtedness, that is not
Subordinated Indebtedness (including the Senior Notes), or portions thereof
tendered pursuant to the Excess Proceeds Offer;

 

(ii)                                  deposit with the Paying Agent money sufficient to
pay the purchase price of all Senior Notes or portions thereof so accepted; and

 

(iii)                               deliver, or cause to be delivered, to the Trustee all Senior Notes or
portions thereof so accepted together with an Officers’ Certificate specifying
the Senior Notes or portions thereof accepted for payment by the Company. The
Paying Agent shall promptly mail to the Holders of Senior Notes so accepted
payment in an amount equal to the purchase price, and the Trustee shall
promptly authenticate and mail to such Holders a new evidence of Senior Notes
of the same tenor and equal in principal amount to any unpurchased portion of
the Senior Note surrendered; provided
that all Senior Notes purchased and each new evidence of Senior Notes issued
shall be in an original principal amount of $1,000 or an integral multiple
thereof.

 

The Company will publicly announce the results of the Excess Proceeds
Offer as soon as practicable after the Excess Proceeds Payment Date. For purposes
of this Section 1013, the Trustee shall act as the Paying Agent.

 

The Company will comply with Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder, to the extent such laws
and regulations are applicable, in the event that an Asset Sale occurs and the
Company is required to purchase Indebtedness as described in this
Section 1013.

 

(d)                                 Notwithstanding anything in Section 1013(c),
to the extent that the aggregate principal amount of public, unsecured
Indebtedness that is not Subordinated Indebtedness (including the Senior Notes)
tendered pursuant to an Excess Proceeds Offer is less than the Excess Proceeds
available for such Excess Proceeds Offer, the Company may use such amount for
the purchase of any Subordinated Indebtedness pursuant to a covenant or other
provision similar to this Section 1013 and for general corporate purposes.

 

54

 

Section 1014.  Conduct of Business.

 

The Company and its Subsidiaries
will not engage in any businesses that are not the same as, or similar or
related to, the businesses in which the Company and its Subsidiaries are
engaged on July 1, 1996.

 

Section 1015.  Maintenance
of Consolidated Tangible Net Worth.

 

Except as provided for in
Section 1018, if, at any time, SCL’s Consolidated Tangible Net Worth at
the end of each of any two consecutive fiscal quarters is less than the Minimum
Consolidated Tangible Net Worth, then the Company shall make an offer (an
“Offer”), on or prior to the 30th day following the date on which the Company
files its quarterly or annual report, as the case may be, with the Commission
reporting the results for the second fiscal quarter giving rise to the
obligation to make the Offer (or, in the event the Company is not required to
file a quarterly report with the Commission in accordance with this
Indenture, on or prior to the 30th day following the date on which SCL
determines the results for the second fiscal quarter giving rise to the
obligation to make the Offer; but in any event not later than the 75th day
following the end of the quarter in the case of the first three fiscal quarters
in any fiscal year, or the 120th day following the end of the quarter in the
case of the fourth quarter in any fiscal year), to purchase 10% of the
aggregate principal amount of the Senior Notes originally issued (or such
lesser amount as may be outstanding at the time) at a purchase price of 100% of
the principal amount plus Interest accrued and unpaid to the date on which the
Senior Notes are to be purchased (the “Purchase Date”); provided, however, that if the Purchase
Date is an Interest Payment Date, Interest payable on such date shall be paid
according to the terms and provisions of Section 307. The Company may not
credit against its obligation to purchase Senior Notes on any Purchase Date
hereunder the principal amount of any Senior Notes previously acquired or
redeemed by the Company. In no event shall the failure to meet the Minimum
Consolidated Tangible Net Worth requirement stated above at the end of any
fiscal quarter be counted toward the making of more than one Offer hereunder.

 

Notice of an Offer, together
with a form of letter of transmittal, shall be mailed by the Company not less
than 25 days before the Purchase Date to the Trustee and to the Holders at
their last registered addresses. The Trustee shall be under no obligation to
ascertain whether an Offer is required to be made under this Section 1015.
The Offer shall remain open from the time of mailing until at least until five
Business Days before the Purchase Date.

 

The notice and form of letter of
transmittal shall be accompanied by a copy of the information regarding SCL
required to be contained in a quarterly report for the second fiscal quarter
referred to above if such second fiscal quarter is one of the Company’s first
three fiscal quarters or, if the Company is not required to file quarterly
reports with the Commission in accordance with this Indenture, such other
report as the Company delivers to its shareholders with respect to such second
fiscal quarter or, if no such report is delivered, a copy of SCL’s quarterly
financial results for such quarter. If such second fiscal quarter is the
Company’s last fiscal quarter of a fiscal year, a copy of the information required
to be contained in an annual report for the fiscal year ending with such second
fiscal quarter shall either accompany the notice or be delivered to Holders not
less than ten days before the Purchase Date. The notice and form of letter of
transmittal shall contain all instructions and materials necessary to enable
such Holders to tender Senior Notes pursuant to the Offer. The notice together
with the form of letter of transmittal, which shall govern the terms of the
Offer, shall state:

 

(1)                                  the Offer is being made pursuant to this
Section 1015 and that Senior Notes will be accepted for payment on a pro rata basis;

 

(2)                                  the purchase price and the Purchase Date;

 

(3)                                  that any Senior Note not tendered or accepted for
payment will continue to accrue Interest;

 

55

 

(4)                                  that, unless the Company defaults in the payment
of the purchase price, any Senior Note accepted for payment pursuant to the
Offer shall cease to accrue Interest after the Purchase Date;

 

(5)                                  that Holders electing to have a Senior Note
purchased pursuant to the Offer will be required to surrender the Senior Note,
with a properly completed copy of the form of letter of transmittal, to the
Paying Agent at the address specified in the notice five Business Days prior to
the Purchase Date;

 

(6)                                  that Holders will be entitled to withdraw their
election if the Paying Agent receives, not later than three Business Days prior
to the close of business on the Purchase Date, a facsimile transmission or
letter setting forth the name of the Holder, the principal amount of Senior
Notes the Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Senior Notes purchased; and

 

(7)                                  that Holders whose Senior Notes are purchased only
in part will be issued new Senior Notes equal in principal amount to the
unpurchased portions thereof tendered pursuant to the Offer, of the Senior
Notes surrendered.

 

On the Purchase Date, the
Company shall (i) accept for purchase on a pro rata basis Senior Notes or portions thereof tendered
pursuant to the Offer in a principal amount not to exceed 10% of the aggregate
principal amount of Senior Notes originally issued, (ii) deposit with the
Paying Agent money sufficient to pay the purchase price of all Senior Notes or
portions thereof so accepted, and (iii) deliver to the Trustee Senior
Notes so accepted together with an Officers’ Certificate (A) setting forth
calculations demonstrating compliance with clauses (i) and (ii), and (B) stating
the Senior Notes or portions thereof accepted for payment by the Company. The
Paying Agent shall promptly mail or deliver to Holders of Senior Notes so
accepted payment in an amount equal to the purchase price as specified in an
Officers’ Certificate. The Trustee shall promptly authenticate and mail or
deliver to each Holder who tendered Senior Notes pursuant to the Offer a new
Senior Note equal in principal amount to any unpurchased portion of the Senior
Note surrendered. The Company will publicly announce the results of the Offer
on or as soon as practicable after the Purchase Date. For purposes of this
Section 1015, the Trustee shall act as the Paying Agent.

 

Section 1016.  Statement as
to Compliance; Notice of Default; Reporting Requirements.

 

(a)                                  The Company will deliver to the Trustee, within
120 days after the end of each fiscal year ending after the date hereof, a
brief certificate of its principal executive officer, principal financial
officer or principal accounting officer stating whether, to such officer’s knowledge,
the Company is in compliance with all covenants and conditions to be complied
with by it under this Indenture. For purposes of this Section 1016, such
compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

 

(b)                                 If a Default has occurred and is continuing, or if
the Trustee, any Holder or the trustee for or the holder of any other
Indebtedness of the Company (other than Indebtedness in the aggregate principal
amount of less than $5,000,000) gives any notice or takes any other action with
respect to a claimed Default, the Company shall deliver to the Trustee an
Officers’ Certificate specifying such Default, notice or other action within
five Business Days of the occurrence of such Default or receipt of such notice;
provided, however, that in the
event that the Company gives notice of such Default, notice or other action to
any other person prior to the fifth Business Day after the occurrence of such
Default or receipt of such notice, the Company shall deliver such Officers’
Certificate to the Trustee concurrently with the giving of such notice to such
other person.

 

56

 

(c)                                  So long as the Senior Notes remain outstanding,
the Company shall file with the Commission annual reports, quarterly reports
and all other information, documents and other reports required to be filed
with the Commission under Section 13 and 15(d) of the Exchange Act as if
it were a domestic issuer, provided
that if the Company does not have a class of securities registered under the
Exchange Act (and only if the Company does not have a class of securities
registered under the Exchange Act), the Company shall furnish to the Trustee
(and, to the extent it is permitted to do so, to the Commission) on a timely
basis the financial information which it would be required to file with the
Commission under Section 13 of the Exchange Act if it were a domestic
issuer with a class of securities registered under the Exchange Act. The Company
will furnish to the Trustee, and, to the extent required by law, provide to the
Holders, within 15 days after its files them with the Commission copies
and/or summaries of such reports and documents.

 

(d)                                 The Company will provide the Holders with copies
of all documents which the Company, from time to time, provides to its
shareholders.

 

Section 1017.  Waiver of
Certain Covenants.

 

The Company may with respect to
the Senior Notes omit in any particular instance to comply with any covenant or
condition set forth in Sections 1007 through 1011 and Section 1014 if,
before or after the time for such compliance, the Holders of a majority in
aggregate principal amount of the Senior Notes at the time Outstanding shall,
by Act of such Holders, waive such compliance in such instance with such
covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such covenant or condition shall remain in full
force and effect.

 

Section 1018.  Termination
of Certain Covenants.

 

In the event that the ratings
assigned to the Senior Notes by Standard & Poor’s Credit Market
Services, a division of the McGraw-Hill Companies (or successor thereto) and
Moody’s Investors Service, Inc. (or successor thereto) are equal to or
higher than BBB- and Baa3, or the equivalents thereof, respectively (the
“Investment Grade Ratings”), and notwithstanding that the Senior Notes may
later cease to have an Investment Grade Rating, the Company and its
Subsidiaries will not be subject to its obligations under Sections 1007, 1008,
1009, 1010, 1013 and 1015 and clauses (iii) and (iv) of Section 801,
provided that no Default or Event
of Default has occurred and is continuing.

 

ARTICLE ELEVEN

 

REDEMPTION OF SENIOR NOTES

 

Section 1101.  Right of Redemption; Optional
Tax Redemption.

 

(a)                                  The Senior Notes may be redeemed at the election
of the Company at any time on or after July 1, 2005 as a whole or in part,
subject to the conditions and at the Redemption Prices specified in the form of
Senior Note, together with accrued Interest to the Redemption Date.

 

(b)                                 The Senior Notes may be redeemed at the option of
the Company in whole but not in part at any time at a redemption price equal to
the principal amount thereof plus accrued Interest to the date fixed for
redemption, if, as a result of any change in or amendment to the laws or any
regulations or rulings promulgated thereunder of the jurisdiction (or of any
political subdivision or taxing authority thereof or therein) in which the
Company is incorporated or resident for tax purposes or any change in the
official application or interpretation of such laws, regulations or rulings, or
any change in the official application or interpretation of, or any execution
of or amendment to, any treaty or treaties affecting taxation to which such
jurisdiction (or such political subdivision or taxing authority) is a party (a
“Change in Tax Law”), which becomes effective on or after the Issue Date, the
Company is or would be required to pay Additional Amounts with respect to the
Senior Notes on the next succeeding

 

57

 

Interest Payment Date and the
payment of such Additional Amounts cannot be avoided by the use of any
reasonable measures available to the Company.

 

(c)                                  If, pursuant to Section 801 of this
Indenture, a Surviving Entity has been or would be required to pay any
Additional Amounts, as therein provided, as a consequence of any amalgamation,
consolidation, merger, conveyance, transfer or lease and as a consequence of a
Change in Tax Law occurring after the date of such amalgamation, consolidation,
merger, conveyance, transfer or lease, the Senior Notes may be redeemed at the
option of such Surviving Entity in whole, but not in part, at any time, at a
redemption price equal to the principal amount thereof plus accrued Interest to
the date fixed for redemption. Prior to the giving of notice of redemption of
such Senior Notes pursuant to this Indenture, such Surviving Entity will
deliver to the Trustee an Officers’ Certificate, stating that such Person is
entitled to effect such redemption and setting forth in reasonable detail a statement
of circumstances showing that the conditions precedent to the right of such
Person to redeem such Senior Notes pursuant to this Section have been
satisfied.

 

Section 1102. 
Applicability of Article.

 

Redemption of Senior Notes at
the election of the Company, as permitted by any provision of this Indenture,
shall be made in accordance with such provision and this Article.

 

Section 1103.  Election to Redeem; Notice to
Trustee.

 

The election of the Company to
redeem any Senior Notes pursuant to Section 1101 shall be evidenced by a
Board Resolution. In case of any redemption at the election of the Company, the
Company shall, not less than 30 days (or, if the Trustee is to give notice
at the request of the Company, 45 days) nor more than 60 days prior
to the Redemption Date fixed by it (unless a shorter notice period shall be
satisfactory to the Trustee) notify the Trustee of such Redemption Date, of the
principal amount of Senior Notes to be redeemed and the paragraph of
Section 1101 pursuant to which such Redemption is to be effected.

 

Section 1104.  Selection by Trustee of Senior
Notes to Be Redeemed.

 

If less than all the Senior
Notes are to be redeemed, the particular Senior Notes or portions thereof to be
redeemed shall be selected not more than 60 days and not less than
30 days prior to the Redemption Date by the Trustee, from the Outstanding
Senior Notes not previously called for redemption, either pro rata, by lot or by any other method
the Trustee deems fair and reasonable, and the amounts to be redeemed may be
equal to $1,000 or any integral multiple thereof.

 

The Trustee shall promptly
notify the Company and the Senior Note Registrar in writing of the Senior Notes
selected for redemption and, in the case of any Senior Notes 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
redemption of Senior Notes shall relate, in the case of any Senior Note
redeemed or to be redeemed only in part, to the portion of the principal amount
of such Senior Note which has been or is to be redeemed.

 

Section 1105.  Notice of Redemption.

 

Notice of redemption shall be
given by first class mail, postage prepaid, mailed not less than 30 nor more
than 60 days prior to the Redemption Date, to each Holder of Senior Notes
to be redeemed, at his address appearing in the Senior Note Register.

 

All notices of redemption shall
identify the Senior Notes to be redeemed (including CUSIP or CINS numbers) and
shall state:

 

(a)                                  the Redemption Date;

 

58

 

(b)                                 the Redemption Price;

 

(c)                                  if less than all Outstanding Senior Notes are to
be redeemed, the identification (and, in the case of a Senior Note to be
redeemed in part, the principal amount) of the particular Senior Notes to be
redeemed;

 

(d)                                 that on the Redemption Date the Redemption Price
will become due and payable upon each such Senior Note or portion thereof, and
that Interest thereon shall cease to accrue on and after said date; and

 

(e)                                  the place or places where such Senior Notes are to
be surrendered for payment of the Redemption Price.

 

Notice of redemption of Senior
Notes to be redeemed at the election of the Company shall be given by the
Company or, at its request, by the Trustee in the name and at the expense of
the Company.

 

Section 1106.  Deposit of
Redemption Price.

 

At or prior to 11:00 a.m.
New York City time on any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003) an amount
of money in same day funds (or New York Clearing House funds if such deposit is
made prior to the applicable Redemption 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 Senior Notes or portions thereof which are to be
redeemed on that date.

 

Section 1107.  Senior Notes Payable on
Redemption Date.

 

Notice of redemption having been
given as aforesaid, the Senior Notes so to be redeemed shall, on the Redemption
Date, become due and payable at the Redemption Price therein specified and from
and after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Senior Notes shall cease to bear
Interest. Upon surrender of any such Senior Note for redemption in accordance
with said notice, such Senior Note 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 or prior to the Redemption Date shall be
payable to the Holders of such Senior Notes, or one or more Predecessor Senior
Notes, registered as such on the relevant Regular Record Dates according to the
terms and the provisions of Section 309.

 

If any Senior Note called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal thereof and premium, if any, thereon shall, until paid, bear interest
from the Redemption Date at the rate borne by such Senior Note.

 

Section 1108.  Senior Notes Redeemed in Part.

 

Any Senior Note which is to be
redeemed only in part shall be surrendered at the office or agency of the
Company maintained for such purpose pursuant to Section 1002 (with, if the
Company, the Senior Note Registrar or the Trustee so requires, due endorsement
by, or a written instrument of transfer in form satisfactory to, the Company, the
Senior Note Registrar or the Trustee, duly executed by the Holder thereof or
his attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and deliver to the Holder of such Senior Note
without service charge, a new Senior Note or Senior Notes, 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 Senior Note
so surrendered.

 

59

 

ARTICLE TWELVE

 

DEFEASANCE

 

Section 1201.  Defeasance
and Discharge.

 

The Company may, at its option
by Board Resolution, at any time, elect to be discharged from its obligations
with respect to all Outstanding Senior Notes on the date the conditions set
forth below are satisfied (hereinafter “defeasance”). For this purpose, such
defeasance means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by all Outstanding Senior Notes which shall
thereafter be deemed to be Outstanding only for the purposes of
Section 1205 and the other Sections of this Indenture referred to in
(A) and (B) below, and to have satisfied all its other obligations
with respect to such Senior Notes and this Indenture (and the Trustee, on
demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following which shall survive until
otherwise terminated or discharged hereunder: (A) the rights of Holders of
such Senior Notes to receive, solely from the trust fund described in
Section 1202 and as more fully set forth in such Section, payments in
respect of the principal of, and premium, if any, and Interest on, such Senior
Notes when such payments are due, (B) the Company’s obligations with
respect to such Senior Notes under Sections 304, 305, 307, 1002 and 1003,
(C) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and the Company’s obligations in connection therewith and
(D) this Article Twelve.

 

Section 1202.  Conditions
to Defeasance.

 

The following shall be the
conditions to application of Section 1201 to the Outstanding Senior Notes:

 

(a)                                  With respect to the defeasance of the Senior
Notes, the Company shall irrevocably have deposited or caused to be deposited
with the Trustee (or another trustee satisfying the requirements of
Section 608 who shall agree to comply with the provisions of this Article
Twelve applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Senior Notes, (A) cash in U.S.
Dollars, (B) U.S. Government Obligations which through the scheduled
payment of principal and interest in respect thereof in accordance with their
terms will provide, not later than one day before the due date of any payment,
cash in U.S. Dollars or (C) a combination thereof, in each such case in
such amounts as will be sufficient, in the opinion of a United States nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge and which
shall be applied by the Trustee (or other qualifying trustee) to pay and
discharge the principal of, and premium, if any, and Interest on, the
Outstanding Senior Notes on the Stated Maturity of such principal or
installment of principal or on the day on which such payments of premium or
Interest are due and payable in accordance with the terms of this Indenture and
of such Senior Notes; provided
that the Trustee shall have been irrevocably instructed to apply such money or
the proceeds of such U.S. Government Obligations to said payments with respect
to the Senior Notes. For this purpose, “U.S. Government Obligations” means
securities that are (x) direct obligations of the United States of America
for the timely payment of which its full faith and credit is pledged or
(y) 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 either case, are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act), as custodian with respect to any such U.S. Government
Obligation or a specific payment of principal of or interest on any such U.S.
Government Obligation held by such custodian for the account of the holder of
such depository receipt; provided
that (except as required by law) such custodian is not authorized

 

60

 

to make any deduction from the
amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or the
specific payment of principal of or interest on the U.S. Government Obligation
evidenced by such depository receipt;

 

(b)                                 The Company shall have delivered to the Trustee an
Opinion of Counsel from United States counsel stating that (x) the Company
has received from, or there has been published by, the Internal Revenue Service
a ruling or (y) since the date hereof there has been a change in the
applicable federal income tax law, in either case to the effect that, and based
thereon such opinion shall confirm that, the Holders of the Senior Notes
subject to defeasance will not recognize income, gain or loss for federal
income tax purposes as a result of such defeasance and will be subject to
federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such defeasance had not occurred;

 

(c)                                  The Company shall have delivered to the Trustee an
Opinion of Counsel from Bermuda counsel to the effect that Holders of the
Outstanding Senior Notes subject to defeasance will not recognize income, gain
or loss for Bermuda tax purposes as a result of such defeasance, and will be
subject to Bermuda taxes on the same amounts, in the same manner and at the
same times as would have been the case if such defeasance had not occurred;

 

(d)                                 The Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that after the 91st day following the deposit,
the trust funds established pursuant to this Article Twelve will not be subject
to the effect of any applicable United States bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally (for the
limited purpose of the Opinion of Counsel referred to in this paragraph, such
opinion may contain an assumption that the conclusions contained in a customary
solvency letter by a nationally recognized appraisal firm, dated as of the date
of the deposit and taking into account such deposit, are accurate as of such
date, provided that such solvency
letter is also addressed and delivered to the Trustee);

 

(e)                                  No Default or Event of Default with respect to the
Senior Notes shall have occurred and be continuing on the date of such deposit
or, insofar as Subsections 501(f) through 501(j) is concerned, at any time
during the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period);

 

(f)                                    Such defeasance shall not result in a breach or
violation of, or constitute a Default under, this Indenture or any other
material agreement or instrument to which the Company is a party or by which it
is bound; and

 

(g)                                 The Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all
conditions precedent to the defeasance under Section 1201 have been
complied with.

 

Section 1203.  Defeasance
of Certain Obligations.

 

The Company may omit to comply
with any term, provision or condition set forth in Sections 703, 801(iii),
801(iv), 1007 through 1015 and 1016(c) and clauses (c) (with respect to
Sections 703, 1007 through 1015 and 1016(c)), (d), (e) and (k) (with
respect to Sections 801(iii) and 801(iv)) under Section 501 shall be
deemed not to be Events of Default, in each case with respect to all
Outstanding Senior Notes on the date the conditions set forth below are
satisfied in full (hereinafter “covenant defeasance”):

 

(a)                                  with reference to this Section 1203, the
Company has irrevocably deposited or caused to be irrevocably deposited with
the Trustee (or another trustee satisfying the requirements of Section 608
of this Indenture) and conveyed all right, title and interest to the Trustee
for the

 

61

 

benefit of the Holders of the
Senior Notes, under the terms of an irrevocable trust agreement in form and
substance satisfactory to the Trustee, as trust funds in trust, specifically
pledged to the Trustee for the benefit of the Holders of the Senior Notes as
security for payment of the principal of, and premium, if any, and interest on,
the Senior Notes, and dedicated solely to the benefit of the Holders of the
Senior Notes in and to (A) cash in U.S. dollars, (B) U.S. Government
Obligations that, through the scheduled 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 this clause (i),
cash in U.S. dollars, or (C) a combination thereof, in each such case in
an amount sufficient, in the opinion of a United States nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, to pay and discharge, without consideration
of the reinvestment of such interest and after payment of all federal, state
and local taxes and other charges and assessments in respect thereof payable by
the Trustee, the principal of, and premium, if any, and interest on, the
Outstanding Senior Notes on the Stated Maturity of such principal or interest; provided that the Trustee shall have been
irrevocably instructed to apply such money or the proceeds of such U.S.
Government Obligations to the payment of such principal, premium, if any, and
interest with respect to the Senior Notes;

 

(b)                                 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 is a party or by which it is
bound;

 

(c)                                  no Default or Event of Default shall have occurred
and be continuing on the date of such deposit;

 

(d)                                 the Company shall have delivered to the Trustee an
Opinion of Counsel from United States counsel to the effect that the Holders of
the Senior Notes will not recognize income, gain or loss for United States
federal income tax purposes as a result of such deposit and covenant defeasance
and will be subject to United States federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such
deposit and covenant defeasance had not occurred;

 

(e)                                  the Company shall have delivered to the Trustee an
Opinion of Counsel from Bermuda counsel to the effect that Holders of the
Senior Notes will not recognize income, gain or loss for Bermuda federal income
tax or other tax purposes as a result of such deposit and covenant defeasance
and will be subject to Bermuda federal income tax and other tax on the same amount,
in the same manner and at the same times as would have been the case if such
deposit and covenant defeasance had not occurred;

 

(f)                                    the Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that, after the 91st day following the
deposit, the trust funds established pursuant to this Article Twelve will not
be subject to the effect of any applicable United States bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights
generally (for the limited purpose of the Opinion of Counsel referred to in
this paragraph, such opinion may contain an assumption that the conclusions
contained in a customary solvency letter by a nationally recognized appraisal
firm, dated as of the date of the deposit and taking into account such deposit,
are accurate as of such date, provided that such solvency letter is also
addressed and delivered to the Trustee); and

 

(g)                                 the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent to the defeasance with respect to all Outstanding Senior
Notes contemplated by this Section 1203 have been complied with.

 

62

 

Section 1204.  Deposited Money and U.S.
Government Obligations to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject to the provisions of the
last paragraph of Section 1003, all money and U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 1204, the
“Trustee”) pursuant to Section 1202 or 1203 in respect of all Outstanding
Senior Notes shall be held in trust and applied by the Trustee, in accordance
with the provisions of such Senior Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Holders of such
Senior Notes of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, but such money need not be segregated from other
funds except to the extent required by law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash or U.S. Government Obligations deposited pursuant to
Section 1202 or 1203 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of all Outstanding Senior Notes.

 

Anything in this Article Twelve
to the contrary notwithstanding, the Trustee shall deliver or pay to the
Company from time to time upon Company Request any money or U.S. Government
Obligations held by it as provided in Section 1202 or 1203 which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee (which
may be the opinion delivered under Section 1202(a)), are in excess of the
amount thereof which would then be required to be deposited to effect an
equivalent defeasance or covenant defeasance.

 

Section 1205.  Reinstatement.

 

If the Trustee or Paying Agent
is unable to apply any money in accordance with Section 1202 or
Section 1203 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company’s obligations under this Indenture and the Senior
Notes shall be revived and reinstated as though no deposit had occurred pursuant
to Section 1202 or Section 1203, as the case may be, until such time
as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 1202 or Section 1203, as the case may be; provided, however, that, if the Company makes
any payment of principal of, or premium, if any, or interest on, any Senior
Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Senior Notes to receive such
payment from the money held by such Trustee or Paying Agent.

 

*****

 

This Indenture may be signed in
any number of counterparts with the same effect as if the signatures to each
counterpart were upon a single instrument, and all such counterparts together
shall be deemed an original of this Indenture.

 

63

 

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

 

	
   

  	
   

  	
   

  	
  SEA CONTAINERS LTD.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  

 

64

 

EXHIBIT A

 

[FACE OF SENIOR NOTE]

 

SEA CONTAINERS LTD.

 

12 1/2%
Senior Notes due 2009

 

THIS NOTE IS
ISSUED IN GLOBAL FORM AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY” OR “DTC”) OR A NOMINEE OF THE
DEPOSITARY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER
THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO SEA
CONTAINERS LTD. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

 

	
  No. 1

  	
  CUSIP            

  
	
   

  	
  $            

  

 

SEA CONTAINERS LTD., a
company limited by shares incorporated in the Islands of Bermuda under the
Companies (Incorporation by Registration) Act 1970 (herein called the
“Company”, which term includes any successor entity under the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & CO.
or registered assigns, the principal sum of
                         
United States Dollars on
                     
, 2009, at the office or agency of the Company referred to below, and to pay
interest thereon commencing on
                       ,
2003 and semiannually thereafter, on                
and
                           
in each year, accruing from
                        ,
2003 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, at the rate of 12 1/2% per annum, in United States Dollars, until
the principal hereof is paid or duly provided for. The Interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Senior
Note (or one or more Predecessor Senior Notes) is registered at the close of
business on the Regular Record Date for such interest, which shall be the                              
or
              
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such Interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date, and may be paid to the Person in whose name this Senior Note (or
one or more Predecessor Senior Notes) is registered at the close of business on
a Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Senior Notes not less
than ten days prior to such Special Record Date, or may be paid at any time in
any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Senior Notes may be listed, and upon such
notice as may be required by such exchange, all as more fully provided in said
Indenture.

 

A-1

 

Payment of the principal of, and
premium, if any, and Interest on, this Senior Note will be made at the office
or agency of the Company maintained for that purpose in The City of New York,
or at such other office or agency of the Company as may be maintained for such
purpose, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts; provided, however, that payment of
Interest may be made at the option of the Company by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Senior Note Register.

 

The Company hereby further
agrees, subject to the limitations and exceptions set forth in the Indenture,
to pay Additional Amounts (as defined in the Indenture) hereon.

 

Reference is hereby made to the
further provisions of this Senior Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth
at this place.

 

Unless the certificate of
authentication hereon has been duly executed by the Trustee referred to on the
reverse hereof by manual signature, this Senior Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

 

A-2

 

IN WITNESS WHEREOF, the Company
has caused this instrument to be duly executed under its common seal.

 

	
   

  	
  SEA CONTAINERS LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

This is one of the 12 1/2%
Senior Notes due 2009 described in the within–mentioned Indenture.

 

	
  Dated:

  	
  THE BANK OF NEW
  YORK,

  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

A-3

 

SEA CONTAINERS LTD.

12 1/2%
Senior Notes due 2009

 

This Senior Note is one of a
duly authorized issue of securities of the Company designated as its 12 1/2%
Senior Notes due 2009 (herein called the “Senior Notes”), limited (except as
otherwise provided in the Indenture referred to below) in aggregate principal
amount to $            ,
which is being issued under an indenture (herein called the “Indenture”) dated
as of
                    ,
2003, between the Company and The Bank of New York, as trustee (herein called
the “Trustee”, which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Trustee and the
Holders of the Senior Notes, and of the terms upon which the Senior Notes are, and
are to be, authenticated and delivered.

 

The Senior Notes are subject to
redemption upon not less than 30 nor more than 60 days’ notice, in whole
or in part, in amounts of $1,000 or an integral multiple of $1,000, at any time
on or after                        ,
2005, at the election of the Company, at a Redemption Price equal to 100% of
the principal amount of the Senior Notes, together in the case of any such
redemption with accrued and unpaid Interest to the Redemption Date (subject to
the right of Holders of record on relevant Regular Record Dates to receive
Interest due on an Interest Payment Date that is on or prior to the Redemption
Date), all as provided in the Indenture.

 

The Senior Notes are subject to
redemption, in whole but not in part, at the option of the Company in the event
that the Company becomes obligated to pay Additional Amounts hereon.

 

In the event that a Change of
Control occurs, each Holder shall have the right, as provided in, and subject
to the terms of, the Indenture, to require that the Company repurchase such
Holder’s Senior Notes in whole or in part in integral multiples of $1,000 at a
purchase price in cash in an amount equal to 101% of the principal amount
thereof plus accrued and unpaid Interest to the date of purchase.

 

The Indenture provides that if
the Company’s Consolidated Tangible Net Worth at the end of each of any two
consecutive fiscal quarters is less than the Minimum Consolidated Tangible Net
Worth (as specified in the Indenture), then the Company shall make an offer to
purchase 10% of the aggregate principal amount of Senior Notes originally
issued at a purchase price of 100% of the principal amount plus interest
accrued and unpaid to the date of such purchase, and on such other terms as
provided in the Indenture.

 

The Senior Notes are not
entitled to the benefit of any sinking fund.

 

In the case of any redemption of
Senior Notes, interest installments whose Stated Maturity is on or prior to the
Redemption Date will be payable to the Holders of such Senior Notes, or one or
more Predecessor Senior Notes, of record at the close of business on the
relevant Regular Record Date referred to on the face hereof. Senior Notes (or
portions thereof) for whose redemption and payment provision is made in
accordance with the Indenture shall cease to bear Interest from and after the
Redemption Date.

 

In the event of redemption of
this Senior Note in part only, a new Senior Note or Senior Notes for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof.

 

If an Event of Default shall
occur and be continuing, the principal of all the Senior Notes may be declared
due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture contains
provisions for defeasance at any time of the (a) entire indebtedness of
the Company on this Senior Note and (b) certain restrictive covenants and
related Defaults and Events of

 

A-4

 

Default, in each case upon
compliance by the Company with certain conditions set forth therein, which
provisions apply to this Senior Note.

 

The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of the
Senior Notes at the time Outstanding. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Senior Notes at the time Outstanding, on behalf of the Holders of all
the Senior Notes, to waive compliance by the Company with certain provisions of
the Indenture and certain past Defaults under the Indenture and their
consequences. Any such consent or waiver by or on behalf of the Holder of this
Senior Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Senior Note and of any Senior Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Senior Note.

 

No reference herein to the
Indenture and no provision of this Senior Note or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of, and premium, if any, and interest on, this Senior Note
at the times, place, and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Senior
Note is registrable on the Senior Note Register of the Company, upon surrender
of this Senior Note for registration of transfer at the office or agency of the
Company maintained for such purpose in The City of New York, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Senior Note Registrar duly executed by, the Holder hereof or
his attorney duly authorized in writing, and thereupon one or more new Senior
Notes, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

 

The Senior Notes are issuable
only in registered form without coupons in denominations of $1,000 and any
integral multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Senior Notes are exchangeable for a like
aggregate principal amount of Senior Notes of a different authorized
denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made
for any registration of transfer or exchange or redemption of Senior Notes, but
the Company may require payment of a sum sufficient to pay all documentary,
stamp or similar issue or transfer taxes or other governmental charges payable
in connection with any registration of transfer or exchange.

 

Prior to the time of due
presentment of this Senior Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Senior Note is registered as the owner hereof for all purposes,
whether or not this Senior Note be overdue, and neither the Company, the
Trustee nor any agent shall be affected by notice to the contrary.

 

Interest on this Senior Note
shall be computed on the basis of a 360-day year of twelve 30-day months.

 

All terms used in this Senior
Note which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

 

The Indenture and this Senior
Note shall be governed by and construed in accordance with the laws of the
State of New York.

 

A-5

 

Assignment Form

 

To assign this Note, fill in the
form below: (I) or (We) assign and transfer this Note to

 

 

 

(Insert assignee’s soc. sec. or
tax I.D. no.)

 

 

 

 

 

 

 

 

(Print or type assignee’s name,
address and zip code)

 

And irrevocably appoint
                                                         
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name
  appears on the face of this Note)

  

 

	
  Signature
  Guarantee*

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

* NOTICE: The Signature must be guaranteed by
an institution which is a member of one of the following recognized signature
Guarantee Programs: (i) The Securities Transfer Agent Medallion Program
(STAMP); (ii)  The New York Stock Exchange Medallion Program (MNSP);
(iii)  The Stock Exchange Medallion Program (SEMP); or (iv) in such
other guarantee program acceptable to the Trustee.

 

A-6

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to elect to have
this Senior Note purchased by the Company pursuant to Section 1012 or
Section 1013 or Section 1015, as the case may be, of the Indenture,
check the box:

 

o

 

If you want to elect to have
only a part of this Senior Note purchased by the Company pursuant to
Section 1012 or Section 1013 or Section 1015, as the case may
be, of the Indenture, state the amount: $

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as name appears on the other
  side of this Senior Note)

  

 

	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

* NOTICE: The Signature must be guaranteed by
an institution which is a member of one of the following recognized signature
Guarantee Programs: (i) The Securities Transfer Agent Medallion Program
(STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The
Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee
program acceptable to the Trustee.

 

A-7QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 4.01    
    

       
 WELLPOINT HEALTH NETWORKS INC.  

 AND  

 Trustee  

 Senior Debt Securities  

 INDENTURE  

 

  

 Dated as of                        , 200  

 
 CROSS REFERENCE SHEET*  

        Provisions of Sections 310 through 318(a) inclusive of the Trust Indenture Act of 1939, as amended, and the Indenture dated as
of                        ,
200      between WellPoint Health Networks Inc. and                        , as Trustee.

	Section of Act
 
	 	Section of

Indenture

	310(a)(1)	 	6.10
	310(a)(2)	 	6.10
	310(a)(3)	 	N/A
	310(a)(4)	 	N/A
	310(a)(5)	 	6.10
	310(b)	 	6.10
	310(c)	 	N/A
	311(a)	 	6.11
	311(b)	 	6.11
	311(c)	 	N/A
	312(a)	 	4.01
	312(b)	 	4.02(b)
	312(c)	 	4.02(c)
	313(a)	 	6.06
	313(b)	 	6.06
	313(c)	 	6.06
	313(d)	 	6.06
	314(a)	 	3.04 and 4.03
	314(b)	 	N/A
	314(c)(1)	 	2.04 and 11.05
	314(c)(2)	 	2.04 and 11.05
	314(c)(3)	 	N/A
	314(d)	 	N/A
	314(e)	 	11.05
	315(a)	 	6.01(b)
	315(b)	 	6.05
	315(c)	 	6.01(a)
	315(d)	 	6.01(c)
	315(e)	 	5.10
	316(a)(1)(A)	 	5.08
	316(a)(1)(B)	 	5.09
	316(a)(2)	 	N/A
	316(b)	 	5.06
	316(c)	 	2.07
	317(a)(1)	 	5.02
	317(a)(2)	 	5.02
	317(b)	 	3.02 and 3.03
	318(a)	 	11.07

	*
	This
cross reference sheet shall not, for any purpose, be deemed to be a part of the Indenture. 

        Attention
should also be directed to Section 318(c) of the Trust Indenture Act of 1939, as amended, which provides that the provisions of Sections 310
through 317 of such Act are a part of and govern every qualified indenture, whether or not physically contained therein. 

i

   TABLE OF CONTENTS  

	ARTICLE 1 DEFINITIONS	 	1
	 	SECTION 1.01.	Certain Terms Defined	 	1
	

ARTICLE 2 SECURITIES	
 	

5
	 	SECTION 2.01.	Forms Generally	 	5
	 	SECTION 2.02.	Form of Trustee's Certificate of Authentication	 	6
	 	SECTION 2.03.	Amount Unlimited; Issuable in Series	 	6
	 	SECTION 2.04.	Authentication and Delivery of Securities	 	8
	 	SECTION 2.05.	Execution of Securities	 	8
	 	SECTION 2.06.	Certificate of Authentication	 	9
	 	SECTION 2.07.	Denomination and Date of Securities; Payments of Interest	 	9
	 	SECTION 2.08.	Registration, Transfer and Exchange	 	10
	 	SECTION 2.09.	Mutilated, Defaced, Destroyed, Lost and Stolen Securities	 	11
	 	SECTION 2.10.	Cancellation of Securities	 	11
	 	SECTION 2.11.	Temporary Securities	 	11
	 	SECTION 2.12.	Securities in Global Form	 	12
	 	SECTION 2.13.	CUSIP Numbers	 	12
	

ARTICLE 3 COVENANTS OF THE COMPANY	
 	

13
	 	SECTION 3.01.	Payment of Principal and Interest	 	13
	 	SECTION 3.02.	Offices for Payment, Etc.	 	13
	 	SECTION 3.03.	Paying Agents	 	13
	 	SECTION 3.04.	Written Statement to Trustee	 	14
	 	SECTION 3.05.	Waiver of Certain Covenants	 	14
	 	SECTION 3.06.	Limitation on Liens	 	14
	 	SECTION 3.07.	Calculation of Original Issue Discount	 	15
	

ARTICLE 4 SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY	
 	

15
	 	SECTION 4.01.	Company to Furnish Trustee Information as to Names and Addresses of Securityholders	 	15
	 	SECTION 4.02.	Preservation and Disclosure of Securityholders' Lists	 	16
	 	SECTION 4.03.	Reports by the Company	 	17
	

ARTICLE 5 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	
 	

17
	 	SECTION 5.01.	Event of Default Defined; Acceleration of Maturity; Waiver of Default	 	17
	 	SECTION 5.02.	Collection of Indebtedness by Trustee; Trustee May Prove Debt	 	19
	 	SECTION 5.03.	Application of Proceeds	 	20
	 	SECTION 5.04.	Restoration of Rights on Abandonment of Proceedings	 	21
	 	SECTION 5.05.	Limitations on Suits by Securityholders	 	21
	 	SECTION 5.06.	Unconditional Right of Securityholders to Institute Certain Suits	 	21
	 	SECTION 5.07.	Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default	 	21
	 	SECTION 5.08.	Control by Securityholders	 	22
	 	SECTION 5.09.	Waiver of Past Defaults	 	22
	 	SECTION 5.10.	Right of Court to Require Filing of Undertaking to Pay Costs	 	22
	 	SECTION 5.11.	Suits for Enforcement	 	22
	

ARTICLE 6 CONCERNING THE TRUSTEE	
 	

23
	 	SECTION 6.01.	Duties of Trustee	 	23
	 	SECTION 6.02.	Rights of Trustee	 	23
	 	SECTION 6.03.	Individual Rights of Trustee	 	25
	 	 	 	 

ii

 

	 	SECTION 6.04.	Trustee's Disclaimer	 	25
	 	SECTION 6.05.	Notice of Defaults	 	25
	 	SECTION 6.06.	Reports by Trustee to Holders	 	25
	 	SECTION 6.07.	Compensation and Indemnity	 	25
	 	SECTION 6.08.	Replacement of Trustee	 	26
	 	SECTION 6.09.	Successor Trustee by Merger	 	26
	 	SECTION 6.10.	Eligibility; Disqualification	 	26
	 	SECTION 6.11.	Preferential Collection of Claims Against Company	 	26
	

ARTICLE 7 CONCERNING THE SECURITYHOLDERS	
 	

27
	 	SECTION 7.01.	Evidence of Action Taken by Securityholders	 	27
	 	SECTION 7.02.	Proof of Execution of Instruments	 	27
	 	SECTION 7.03.	Holders to Be Treated as Owners	 	27
	 	SECTION 7.04.	Securities Owned by Company Deemed Not Outstanding	 	27
	 	SECTION 7.05.	Right of Revocation of Action Taken	 	27
	

ARTICLE 8 SUPPLEMENTAL INDENTURES	
 	

28
	 	SECTION 8.01.	Supplemental Indentures Without Consent of Securityholders	 	28
	 	SECTION 8.02.	Supplemental Indentures with Consent of Securityholders	 	29
	 	SECTION 8.03.	Effect of Supplemental Indenture	 	29
	 	SECTION 8.04.	Documents to Be Given to Trustee	 	30
	 	SECTION 8.05.	Notation on Securities in Respect of Supplemental Indentures	 	30
	

ARTICLE 9 CONSOLIDATION, MERGER, SALE OR CONVEYANCE	
 	

30
	 	SECTION 9.01.	Company May Consolidate, Etc. on Certain Terms	 	30
	 	SECTION 9.02.	Successor Corporation Substituted	 	30
	 	SECTION 9.03.	Opinion of Counsel to Trustee	 	31
	

ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS	
 	

31
	 	SECTION 10.01.	Satisfaction and Discharge of Indenture	 	31
	 	SECTION 10.02.	Application by Trustee of Funds Deposited for Payment of Securities	 	34
	 	SECTION 10.03.	Repayment of Moneys Held by Paying Agent	 	34
	 	SECTION 10.04.	Return of Unclaimed Moneys Held by Trustee and Paying Agent	 	34
	 	SECTION 10.05.	Reinstatement of Company's Obligations	 	34
	

ARTICLE 11 MISCELLANEOUS PROVISIONS	
 	

35
	 	SECTION 11.01.	Incorporators, Stockholders, Officers and Directors of Company Exempt from Individual Liability	 	35
	 	SECTION 11.02.	Provisions of Indenture for the Sole Benefit of Parties and Securityholders	 	35
	 	SECTION 11.03.	Successors and Assigns of Company Bound by Indenture	 	35
	 	SECTION 11.04.	Notices and Demands on Company, Trustee and Securityholders	 	35
	 	SECTION 11.05.	Officers' Certificates and Opinions of Counsel; Statements to Be Contained Therein	 	35
	 	SECTION 11.06.	Payments Due on Saturdays, Sundays and Holidays	 	36
	 	SECTION 11.07.	Conflict of Any Provision of Indenture with Trust Indenture Act of 1939	 	36
	 	SECTION 11.08.	New York Law to Govern	 	36
	 	SECTION 11.09.	Counterparts	 	37
	 	SECTION 11.10.	Effect of Headings; Gender	 	37
	

ARTICLE 12 REDEMPTION OF SECURITIES AND SINKING FUNDS	
 	

37
	 	SECTION 12.01.	Applicability of Article	 	37
	 	SECTION 12.02.	Notice of Redemption; Partial Redemptions	 	37
	 	SECTION 12.03.	Payment of Securities Called for Redemption	 	38
	 	 	 	 

iii

 

	 	SECTION 12.04.	Exclusion of Certain Securities from Eligibility for Selection for Redemption	 	38
	 	SECTION 12.05.	Mandatory and Optional Sinking Funds	 	39
	 	SECTION 12.06.	Repayment at the Option of the Holders	 	40
	 	SECTION 12.07.	Conversion Arrangement on Call for Redemption	 	40
	

ARTICLE 13 CONVERSION OF SECURITIES	
 	

41
	 	SECTION 13.01.	Applicability of Article	 	41
	 	SECTION 13.02.	Right of Holders to Convert Securities into Common Shares	 	42
	 	SECTION 13.03.	Issuance of Common Shares on Conversions	 	42
	 	SECTION 13.04.	No Payment or Adjustment for Interest or Dividends	 	43
	 	SECTION 13.05.	Adjustment of Conversion Price	 	43
	 	SECTION 13.06.	No Fractional Shares to Be Issued	 	46
	 	SECTION 13.07.	Preservation of Conversion Rights upon Consolidation, Merger, Sale or Conveyance	 	46
	 	SECTION 13.08.	Notice to Holders of the Securities of a Series Prior to Taking Certain Types of Action	 	47
	 	SECTION 13.09.	Covenant to Reserve Shares for Issuance on Conversion of Securities	 	47
	 	SECTION 13.10.	Compliance with Governmental Requirements	 	47
	 	SECTION 13.11.	Payment of Taxes upon Certificates for Shares Issued upon Conversion	 	48
	 	SECTION 13.12.	Trustee's Duties with Respect to Conversion Provisions	 	48
	 	SECTION 13.13.	Conversion of Securities into Preferred Shares or Other Securities	 	48

iv

   
        THIS INDENTURE (the "Indenture"), dated as
of                        , 200      between WELLPOINT HEALTH NETWORKS INC., a Delaware
corporation (the "Company"), and                        (the "Trustee"). 

W
I T N E S S E T H: 

        WHEREAS,
the Company has duly authorized the issue from time to time of its unsecured debentures, notes or other evidences of indebtedness (the
"Securities") to be issued in one or more Series; and 

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

        NOW,
THEREFORE: 

        In
consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually agreed for the equal and ratable benefit of the Holders from time to time of
the Securities or of Series thereof as follows: 

ARTICLE 1  

 DEFINITIONS  

        SECTION
1.01.    Certain Terms Defined.    The following terms (except as otherwise expressly provided or unless the
context otherwise clearly requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section. All other terms used in
this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or the definitions of
which in the Securities Act of 1933, as amended, are referred to in the Trust Indenture Act of 1939, as amended, including terms defined therein by reference to the Securities Act of 1933, as amended
(except as herein otherwise expressly provided or unless the context otherwise clearly requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act
as in force at the date of this Indenture. All accounting terms used herein and not expressly defined shall have the meanings assigned to such terms in accordance with generally accepted accounting
principles, and the term "generally accepted accounting principles" means such accounting principles as are generally accepted at the time of any computation. The words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Indenture as a whole, as supplemented and amended from time to time, and not to any particular Article, Section or other subdivision. The
terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular. 

        "Board of Directors" means either the Board of Directors of the Company or any duly authorized committee of that Board or any duly
authorized committee created by that Board. 

        "Business Day" means, except as may otherwise be provided in the form of Securities of any particular Series, with respect to any Place of
Payment or place of publication, any day, other than a Saturday or Sunday, or a day on which banking institutions are authorized or required by law or regulation to close in that Place of Payment,
place of publication or where the principal corporate trust office of the Trustee is located. 

        "Capital Lease" means all material monetary obligations of the Company or any of its Subsidiaries under any leasing or similar arrangement
which is classified as a capital lease in accordance with generally accepted accounting principles (GAAP) (including Statement of Financial Accounting Standards No. 13 of the Financial
Accounting Standards Board) and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount of such obligation, determined in accordance with GAAP (including such
Statement No. 13). 

1

 

        "Capital Stock" in any person means any and all shares, interests, participations or other equivalents in the equity (however designated)
in such person and any rights (other than debt securities convertible into an equity interest), warrants or options to acquire an equity interest in such person. 

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

        "Common Shares" means the shares of common stock, par value $.01 per share, of the Company as they exist on the date of this Indenture, or
any other shares of capital stock of the Company into which such shares shall be reclassified or changed. 

        "Company" means WellPoint Health Networks Inc., a Delaware corporation, until a successor corporation shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter "Company" shall mean such successor corporation. 

        "Consolidated Net Tangible Assets" means the aggregate amount of assets (less applicable reserves and other properly deductible items)
after deducting therefrom (a) all current liabilities (excluding any thereof constituting Funded Debt by reason of being extendible or renewable), and (b) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set forth on the books and records of the Company and its consolidated subsidiaries and computed in
accordance with generally accepted accounting principles. 

        "Corporate Trust Office" means the principal corporate trust office of the Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of execution of this Indenture is located at                        .

        "covenant defeasance" has the meaning specified in Section 10.01(b). 

        "defaulted interest" has the meaning specified in Section 2.07. 

        "Depository" shall mean, with respect to Securities of any Series for which the Company shall determine that such Securities will be
issued as a Depository Security, The Depository Trust Company, New York, New York, or another clearing agency or any successor registered under the Securities Exchange Act of 1934, as amended, or
other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to Sections 2.03 and 2.12. 

        "Depository Security" shall mean, with respect to any Series of Securities, a Security executed by the Company and authenticated and
delivered by the Trustee to the Depository or pursuant to the Depository's instruction, all in accordance with this Indenture and pursuant to a resolution of the Board of Directors as contemplated by
Section 2.03, which (i) shall be registered as to principal and interest in the name of the Depository or its nominee and (ii) shall represent, and shall be denominated in an
amount equal to the aggregate principal amount of, all of the Outstanding Securities of such Series. 

        "defeasance" has the meaning specified in Section 10.01(b). 

        "Dollar" means the coin or currency of the United States of America which as of the time of payment is legal tender for the payment of
public and private debts. 

        "Event of Default" has the meaning specified in Section 5.01. 

        "Funded Debt" means all indebtedness, whether or not evidenced by a bond, debenture, note or similar instrument or agreement, for the
repayment of money borrowed, having a maturity of more than 12 months from the date of its creation or having a maturity of less than 12 months from the date of its creation but by its
terms being renewable or extendible beyond 12 months from such date at the 

2

 

option
of the borrower. For the purpose of determining "Funded Debt" of any corporation, there shall be excluded any particular indebtedness if, on or prior to the maturity thereof, there shall have
been deposited with the proper depository in trust the necessary funds for the payment, redemption or satisfaction of such indebtedness. 

        "Government Obligations" means, unless otherwise specified pursuant to Section 2.03, securities which are (i) direct
obligations of the United States government or (ii) obligations of a Person controlled or supervised by, or acting as an agency or instrumentality of, the United States government, the payment
of which obligations is unconditionally guaranteed by such government, and which, in either case, are full faith and credit obligations of such government, and which are not callable or redeemable at
the option of the issuer thereof. 

        "Holder," "Holder of Securities," "Registered
Holder," "Securityholder" or other similar terms mean the Person in whose name at the time a particular Security is registered
in the Security register. 

        "Indenture" means this instrument as originally executed or as it may from time to time be amended or supplemented as herein provided, as
so amended or supplemented or both, and shall include the forms and terms of particular Series of Securities established as contemplated by Section 2.03. 

        "Lien" means any mortgage, pledge, hypothecation, charge, assignment, deposit arrangement, encumbrance, security interest, lien (statutory
or other), or preference, priority, or other security or similar agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any agreement to give or grant a
Lien or any lease, conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing). 

        "Officers' Certificate" means a certificate signed on behalf of the Company by the chairman of the Board of Directors or the vice chairman
or the president or any vice president and by the treasurer, the controller, any assistant treasurer, the secretary or any assistant secretary of the Company and delivered to the Trustee. Each such
certificate shall include the statements provided for in Section 11.05. 

        "Opinion of Counsel" means a written opinion of legal counsel who may be an employee of or counsel to the Company and who shall be
reasonably acceptable to the Trustee. Each Opinion of Counsel shall include the statements provided for in Section 11.05, if and to the extent required hereby. 

        "original issue date" of any Security (or portion thereof) means the date set forth as such on such Security. 

        "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 thereof pursuant to Section 5.01. 

        "Outstanding," when used with reference to Securities, shall, subject to the provisions of Section 7.04, mean, as of any particular
time, all Securities authenticated and delivered under this Indenture, except 

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

        (b)   Securities,
or portions thereof, for the payment or redemption of which moneys in the necessary amount and in the required currency shall have been deposited in trust
with the Trustee or with any Paying Agent (other than the Company) or shall have been set aside, segregated and held in trust by the Company for the holders of such Securities (if the Company shall
act as its own Paying Agent), provided that if such securities, or portions thereof, are to be redeemed prior 

3

 

to
the maturity thereof, notice of such redemption shall have been given as herein provided, or provision satisfactory to the Trustee shall have been made for giving such notice; 

        (c)   Securities
in substitution for which other Securities shall have been authenticated and delivered, or which shall have been paid, pursuant to the terms of
Section 2.09 (except with respect to any such Security as to which proof satisfactory to the Trustee and the Company is presented that such Security
is held by a person in whose hands such Security is a legal, valid and binding obligation of the Company); 

        (d)   Securities
converted into Common Shares or Preferred Shares in accordance with or as contemplated by this Indenture; and 

        (e)   Securities
with respect to which the Company has effected defeasance and/or covenant defeasance as provided in Article 10. 

        "Paying Agent" means any Person (which may include the Company) authorized by the Company to pay the principal of or interest, if any, on
any Security on behalf of the Company. 

        "Person" or "person" means any individual, corporation, 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 interest,
if any, on the Securities of that Series are payable as specified pursuant to Section 3.02. 

        "Preferred Shares" means, any shares of capital stock issued by the Company that are entitled to a preference or priority over the Common
Shares upon any distribution of the Company's assets, whether by dividend or upon liquidation. 

        "principal" whenever used with reference to the Securities or any Security or any portion thereof, shall be deemed to include "and
premium, if any." 

        "Property" means, with respect to any person, any interest of such person in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible, including, without limitation, Capital Stock in any other person. 

        "Responsible Officer" when used with respect to the Trustee shall mean any officer within the corporate trust department (or any successor
department) of the Trustee including any vice president, assistant vice president, assistant secretary, senior trust officer, trust officer or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is
referred at the Corporate Trust Office because of his or her knowledge of and familiarity with the particular subject. 

        "Secured Debt" means any indebtedness for borrowed money incurred, assumed or guaranteed after the date of the Indenture by the Company or
a Subsidiary that is secured by a Lien. 

        "Security" or "Securities" has the meaning stated in the first recital of this Indenture
and more particularly means any securities authenticated and delivered under this Indenture. 

        "Series" or "Series of Securities" means all Securities of a similar tenor authorized by a
particular resolution of the Board of Directors. 

        "Subsidiary" means (i) a corporation, 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 the Company, by one or more Subsidiaries of the Company or by the Company and one or more Subsidiaries of the Company,
(ii) a partnership, limited liability company, joint venture or similar entity 

4

 

in
which the Company, a Subsidiary of the Company or the Company and one or more Subsidiaries of the Company, directly or indirectly, holds a majority interest in the equity capital or profits or
other similar interests of such entity, or (iii) any other person (other than a corporation) in which the Company, a Subsidiary of the Company or the Company and one or more Subsidiaries of the
Company, directly or indirectly, at the date of determination, has (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the
directors or other governing body of such person. 

        "Trustee" means the Person identified as "Trustee" in the first paragraph hereof until a successor Trustee shall have become such pursuant
to the provision hereof, 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. 

        "Trust Indenture Act of 1939" or "TIA" (except as otherwise provided in Sections 8.01 and
8.02) means the Trust Indenture Act of 1939, as amended, as in force at the date as of which this Indenture was originally executed. 

        "United States of America" means the United States of America (including the states and the District of Columbia), its territories,
possessions, the Commonwealth of Puerto Rico and other areas subject to its jurisdiction. 

        "vice president" when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or
a word or words added before or after the title of "vice president." 

ARTICLE 2  

 SECURITIES  

        SECTION
2.01.    Forms Generally.    The Securities of each Series shall be substantially in such form (including
temporary or definitive global form) as shall be established by or pursuant to a resolution of the Board of Directors or in one or more indentures supplemental hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture (the provisions of which shall be appropriate to reflect the terms of the Series of
Securities represented thereby) and may have imprinted or otherwise reproduced thereon such legend or legends, not inconsistent with the provisions of this Indenture, as may be required to comply with
any law or with any rules or regulations pursuant thereto, or with any rules of any securities exchange or to conform to general usage, all as may be determined by the officers executing such
Securities as evidenced by their execution of the 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. 

5

 

        SECTION
2.02.    Form of Trustee's Certificate of Authentication.    The Trustee's certificate of authentication on
all Securities shall be in substantially the following form: 

        This
is one of the Securities of the Series designated herein and referred to in the within-mentioned Indenture. 

	 	 	                        , as Trustee
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Authorized Signatory
	

 	
 	

 	
 	

or
	

 	
 	

                        , as Trustee
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	as Authentication Agent
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Authorized Signatory

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

        The
Securities may be issued in one or more Series. There shall be established in or pursuant to a resolution of the Board of Directors and set forth in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance of Securities of any Series, 

        (a)   the
title of the Securities of the Series (which title shall distinguish the Securities of the Series from all other Securities issued by the Company); 

        (b)   any
limit upon the aggregate principal amount of the Securities of the Series that may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.08, 2.09, 2.11, 8.05 or 12.03); 

        (c)   if
other than 100% of their principal amount, the percentage of their principal amount at which the Securities of the Series will be offered for sale to the public; 

        (d)   the
date or dates on which the principal of the Securities of the Series is payable or the method of determination thereof; 

        (e)   the
rate or rates (which may be fixed or variable), or the method or methods of determination thereof, 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 record dates for the determination of Holders to whom interest is
payable; 

        (f)    the
place or places where the principal and interest, if any, on Securities of the Series shall be payable (if other than as provided in Section 3.02); 

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

        (h)   if
other than the principal amount thereof, the portion of the principal amount of Securities of the Series which shall be payable upon declaration of acceleration of
the maturity thereof pursuant to Section 5.01 or provable in bankruptcy pursuant to Section 5.02; 

6

 

        (i)    the
obligation, if any, of the Company to redeem, purchase or repay Securities of the Series whether pursuant to any sinking fund or analogous provisions or pursuant to
other provisions set forth therein or at the option of a Holder thereof and the price or prices at which and the period or periods within which and the terms and conditions upon which Securities of
the Series shall be redeemed, purchased or repaid, in whole or in part; 

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

        (k)   the
form of the Securities, including such legends as required by law or as the Company deems necessary or appropriate and the form of any temporary global security
which may be issued; 

        (l)    whether,
and under what circumstances, the Securities of any Series shall be convertible into other securities of the Company and, if so, the terms and conditions upon
which such conversion will be effected including the initial conversion price or rate, the conversion period and other provisions in addition to or in lieu of those described herein; 

        (m)  if
other than the Trustee, any trustees, authenticating or Paying Agents, transfer agents or registrars or any other agents with respect to the Securities of such
Series; 

        (n)   if
the Securities of such Series do not bear interest, the applicable dates for purposes of Section 4.01 hereof; 

        (o)   whether
the Securities of such Series are to be issuable in whole or in part in the form of one or more Depository Securities, and, in such case, the Depository for such
Securities; 

        (p)   the
application, if any, of either or both of Section 10.01(b)(ii) or 10.01(b)(iii) to the Securities of the Series; 

        (q)   the
obligation, if any, of the Company to permit the conversion of the Securities of such Series into the Company's Common Shares or Preferred Shares (and the class
thereof), as the case may be, and the terms and conditions upon which such conversion shall be effected (including, without limitation, the initial conversion price or rate, the conversion period, any
adjustment of the applicable conversion price or rate and any requirements relative to reservation of shares for purposes of conversion; and 

        (r)   any
other terms or conditions upon which the Securities of the Series are to be issued (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 resolution of the Board of
Directors or in any such indenture supplemental hereto. All Securities of any one Series need not be issued at the same time, and unless otherwise provided, a Series may be reopened for issuances of
additional Securities of such Series. 

7

   
        SECTION 2.04.    Authentication and Delivery of 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, and the Trustee shall thereupon authenticate and make
available for delivery such Securities to or upon the written order of the Company, signed by both (a) the chairman of its Board of Directors, or its president or any vice president and
(b) its treasurer or any assistant treasurer, secretary or any assistant secretary without any further action by the Company. 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 6.01) shall be fully protected in relying upon: 

        (a)   a
copy of any resolution or resolutions of the Board of Directors relating to such Series, in each case certified by the secretary or an assistant secretary of the
Company; 

        (b)   a
supplemental indenture, if any; 

        (c)   an
Officers' Certificate setting forth the form and terms of the Securities of such Series as required pursuant to Sections 2.01 and 2.03, respectively, and prepared in
accordance with Section 11.05; and 

        (d)   an
Opinion of Counsel, prepared in accordance with Section 11.05, which shall state 

          (i)  that
the form or forms and terms of such Securities have been established by or pursuant to a resolution of the Board of Directors or by a supplemental indenture as
permitted by Sections 2.01 and 2.03 in conformity with the provisions of this Indenture and in conformity with such resolution; and 

         (ii)  that
such Securities have been duly authorized, and, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any
conditions specified in such opinion of counsel, will constitute valid and binding obligations of the Company enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization or other laws relating to or affecting the enforcement of creditors' rights generally and by general equitable principles, regardless of whether such
enforceability is considered in a proceeding in equity or at law. 

        The
Trustee shall have the right to decline to authenticate and deliver any Securities under this Section if the issue of such Securities pursuant to this Indenture will affect the
Trustee's own rights, duties or immunities under this Indenture in a manner not reasonably acceptable to the Trustee. 

        SECTION
2.05.    Execution of Securities.    The Securities shall be signed on behalf of the Company by both
(a) the chairman of its Board of Directors or its president or any vice president and (b) its treasurer or any assistant treasurer or its secretary or any assistant secretary, under its
corporate seal which may, but need not, be attested. Such signatures may be the manual or facsimile signatures of such officers. The seal of the Company may be in the form of a facsimile thereof and
may be impressed, affixed, imprinted or otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such reproduction of the seal or any such signature shall not
affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee. 

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

8

 

        SECTION
2.06.    Certificate of Authentication.    Only such Securities as shall bear thereon a certificate of
authentication substantially in the form hereinbefore recited and executed by the Trustee by the manual signature of one of its authorized signatories shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee upon any Security executed by the Company shall be conclusive evidence that the Security so authenticated has been
duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture. 

        Notwithstanding
the foregoing, if any Security shall have been duly authenticated and delivered hereunder but never issued and sold by the Company, the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 2.10 together with a written statement (which need not comply with Section 11.05 and need not be accompanied by an Opinion
of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of the Indenture such Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of the Indenture. 

        SECTION
2.07.    Denomination and Date of Securities; Payments of Interest.    The Securities shall be issuable in
denominations as shall be specified as contemplated by Section 2.03. In the absence of any such
specification with respect to the Securities of any Series, Securities shall be issuable in denominations of $1,000 and any integral multiple thereof, and interest shall be computed on the basis of a
360-day year of twelve 30-day months. The Securities shall be numbered, lettered, or otherwise distinguished in such manner or in accordance with such plan as the officers of
the Company executing the same may determine with the approval of the Trustee as evidenced by the execution and authentication thereof. 

        Each
Security shall be dated the date of its authentication. 

        Unless
otherwise provided as contemplated by Section 2.03, 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 Security (or one or more predecessor securities) is registered at the close of business on the regular record date for the payment of such interest. 

        The
term "record date" as used with respect to any interest payment date (except for a date for payment of defaulted interest) shall mean the date specified as such in the terms of the
Securities of any particular Series, or, if no such date is so specified, the close of business on the fifteenth day preceding such interest payment date, whether or not such record date is a Business
Day. 

        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 (called "defaulted interest" for purposes of
this Section) shall forthwith cease to be payable to the Registered Holder on the relevant record date by virtue of his having been such Holder; and such defaulted interest may be paid by the Company,
at its election in each case, as provided in clause (a) or clause (b) below: 

        (a)   The
Company may elect to make payment of any defaulted interest to the persons in whose names any such Securities (or their respective predecessor Securities) are
registered at the close of business on a special record date for the payment of such defaulted interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing
of the amount of defaulted interest proposed to be paid on each Security of such Series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount
of money equal to the aggregate amount proposed to be paid in respect of such defaulted interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the persons entitled to such defaulted interest as in this clause provided. Thereupon the Trustee shall fix a special
record date for the payment of such defaulted interest in respect of Securities of such Series which shall be not more than 15 nor less than 10 days prior to the date of the proposed 

9

 

payment
and not less than 10 days after the receipt by the Trustee of, the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the
name and at the expense of the Company, shall cause notice of the proposed payment of such defaulted interest and the special record date thereof to be mailed, first class postage prepaid, to each
Registered Holder 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 mailed as aforesaid, such defaulted interest in respect of Securities of such Series shall be paid to the persons in whose names such Securities (or their
respective predecessor Securities) are registered on such special record date and such defaulted interest shall no longer be payable pursuant to the following clause (b). 

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

        Subject
to the foregoing provisions of this Section, each Security delivered under this Indenture upon 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
2.08.    Registration, Transfer and Exchange.    The Company will cause to be kept at each office or agency to
be maintained for the purpose as provided in Section 3.02 a register or registers in which, subject to such reasonable regulations as it may prescribe, the Company will provide for the
registration and the registration of the transfer of, the Securities. The Trustee is hereby appointed Security registrar for purposes of registering, and registering transfers of, the Securities. 

        Upon
surrender for registration of transfer of any Security of any Series at any such office or agency to be maintained for the purpose as provided in Section 3.02, the Company
shall execute and the Trustee
shall authenticate and make available for delivery in the name of the transferee or transferees a new Security or Securities of the same Series and of a like tenor and containing the same terms (other
than the principal amount thereof, if more than one Security is executed, authenticated and delivered with respect to any security so presented, in which case the aggregate principal amount of the
executed, authenticated and delivered Securities shall equal the principal amount of the Security presented in respect thereof) and conditions. 

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

        Every
Security presented or surrendered for registration of transfer or 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 Trustee 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 transfer or exchange of Securities, other than exchanges pursuant to Sections 2.11, 8.05 or 12.03 not involving any transfer. 

        The
Company shall not be required (i) to issue, register the transfer of or exchange any Security during a 15-day period prior to the day of mailing of the relevant
notice of redemption or (ii) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except, in the case of any Security to be redeemed in part, the
portion thereof not redeemed. 

10

 

        SECTION
2.09.    Mutilated, Defaced, Destroyed, Lost and Stolen Securities.    In case any temporary or definitive
Security shall become mutilated or defaced or be destroyed, lost or stolen, the Company shall execute, and upon the written request of any officer of the Company, the Trustee shall authenticate and
make available for delivery a new Security of the same Series and of like tenor and principal amount and with the same terms and conditions, bearing a number not contemporaneously outstanding, in
exchange and substitution for the mutilated or defaced Security or in lieu of and substitution for the Security so destroyed, lost or stolen. In every case the applicant for a substitute Security
shall furnish to the Company and to the Trustee and to any agent of the Company or the Trustee such security or indemnity as may be required by them to indemnify and defend and to save each of them
harmless and, in every case of destruction, loss or theft, evidence to their satisfaction of the destruction, loss or theft of such Security and of the ownership thereof. 

        Upon
the issuance of any substitute Security, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. In case any Security which has matured or is about to mature or has been called for redemption in
full shall become mutilated or defaced or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof
except in the case of a mutilated or defaced Security); provided, however, that unless otherwise provided pursuant to Section 2.03, the applicant for such payment shall furnish to the Company
and to the Trustee and any agent of the Company or the Trustee such security or indemnity as any of them may require to save each of them harmless, and, in every case of destruction, loss or theft,
the applicant shall also furnish to the Company and the Trustee and any agent of the Company or the Trustee evidence to their satisfaction of the destruction, loss or theft of such Security and of the
ownership thereof. 

        Every
substitute Security of any Series issued pursuant to the provisions of this Section by virtue of the fact that any Security is destroyed, lost or stolen shall constitute an
additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone and shall be entitled to all the benefits of (but
shall be subject to all the limitations of rights set forth in) this Indenture equally and proportionately with any and all other Securities of such Series duly authenticated and delivered hereunder.
All Securities shall be held and owned upon the express condition that, to the extent permitted by law, the foregoing provisions are exclusive with respect to the replacement or payment of mutilated,
defaced, destroyed, lost or stolen Securities and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to
the replacement or payment of negotiable instruments or other securities without their surrender. 

        SECTION
2.10.    Cancellation of Securities    . All Securities surrendered for payment, redemption, registration of
transfer or exchange, or for credit against any payment in respect of a sinking or analogous fund, shall, if surrendered to the Company or any agent of the Company or the Trustee, be delivered to the
Trustee for cancellation or, if surrendered to the Trustee, shall be cancelled by it; and no Securities shall be issued in lieu thereof, except as expressly permitted by any of the provisions of this
Indenture. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold and all Securities so
delivered shall be promptly cancelled by the Trustee. The Trustee shall return cancelled Securities held by it to the Company. If the Company shall acquire any of the Securities, such acquisition
shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation. 

        SECTION
2.11.    Temporary Securities.    Pending the preparation of definitive Securities for any Series, the Company
may execute and the Trustee shall authenticate and make available for delivery temporary Securities for such Series (printed, lithographed, typewritten or otherwise reproduced, in each case in form
reasonably acceptable to the Trustee). Temporary Securities of any Series may be 

11

 

issued
of any authorized denomination, and substantially in the form of the definitive Securities of such Series but with such omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company with the reasonable concurrence of the Trustee. Temporary Securities may contain such reference to any provisions of this Indenture as may be
appropriate. Every temporary Security shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the
definitive Securities. Without unreasonable delay the Company shall execute and shall furnish definitive securities of such Series and thereupon temporary Securities of such Series may be surrendered
in exchange therefor without charge at each office or agency to be maintained by the Company for that purpose pursuant to Section 3.02, and the Trustee shall authenticate and make available for
delivery in exchange for such temporary Securities of such Series a like aggregate principal amount of definitive Securities of the same Series of authorized denominations. Until so exchanged,
the temporary Securities of any Series shall be entitled to the same benefits under this Indenture as definitive Securities of such Series. 

        SECTION
2.12.    Securities in Global Form.    If Securities of a Series are issuable in global form, as specified as
contemplated by Section 2.03, then, notwithstanding clause (j) of Section 2.03 and the provisions of Section 2.07, such Security shall represent such of the Outstanding
Securities of such Series as shall be specified therein and may provide that it shall represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and that the aggregate
amount of Outstanding Securities represented thereby may from time to time be reduced to reflect exchanges. Any endorsement of a Security in global form to reflect the amount, or any increase or
decrease in the amount, of Outstanding Securities represented thereby may be made by the Trustee in such manner and upon instructions given by such Person or Persons as shall be specified therein or
in the Company order to be delivered to the Trustee pursuant to Section 2.04. Subject to the provisions of Section 2.04, the Trustee shall deliver and redeliver any Security in
definitive global form in the manner and upon written instructions given by the Person or Persons specified therein or in the applicable Company order. If a Company order pursuant to
Section 2.04 has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Security in global form shall be in writing
but need not comply with Section 11.05 and need not be accompanied by an Opinion of Counsel. 

        The
provisions of the last sentence of Section 2.06 shall apply to any Security represented by a Security in global form if such Security was never issued and sold by the Company
and the Company delivers to the Trustee the Security in global form together with written instructions (which need not comply with Section 11.05 and need not be accompanied by an Opinion of
Counsel) with regard to the reduction in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of Section 2.06. 

        Notwithstanding
the provisions of Sections 2.03 and 2.07, unless otherwise specified as contemplated by Section 2.03, payment of principal of and any interest on any Security in
definitive global form shall be made to the Person or Persons specified therein. 

        Except
as provided in the preceding paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat a Person as the Holder of such principal amount of
outstanding Securities represented by a definitive global Security as shall be specified in a written statement of the Holder of such definitive global Security. 

        SECTION
2.13.    CUSIP Numbers.    The Company in issuing the Securities may use "CUSIP" numbers (if then generally in
use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other 

12

 

identification
numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change
in the CUSIP numbers. 

ARTICLE 3  

 COVENANTS OF THE COMPANY  

        SECTION
3.01.    Payment of Principal and Interest.    The Company covenants and agrees for the benefit of each
particular Series of Securities that it will duly and punctually pay or cause to be paid the principal of, and interest on, each of the Securities of such Series in accordance with the terms of the
Securities of such Series and this Indenture. 

        SECTION
3.02.    Offices for Payment, Etc.    So long as any of the Securities remain outstanding, the Company will
maintain the following for each Series: an office or agency (a) where the Securities may be presented for payment or conversion, (b) where the Securities may be presented for
registration of transfer and for exchange as in this Indenture provided, and (c) where notices and demands to or upon the Company in respect of the Securities or of this Indenture may be
served. The Company will give to the Trustee written notice of the location of any such office or agency and of any change of location
thereof. In case the Company shall fail to so designate or maintain any such office or agency or shall fail to give such notice of the location or of any change in the location thereof, presentations
and demands may be made and notices may be served at the Corporate Trust Office. Unless otherwise specified pursuant to Section 2.03, the Trustee is hereby appointed Paying Agent. 

        SECTION
3.03.    Paying Agents.    Whenever the Company shall appoint a Paying Agent other than the Trustee with
respect to the Securities of any Series, it will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Agent shall agree with the Trustee, subject to the provisions
of this Section, 

        (a)   that
it will hold all sums received by it as such Agent for the payment of the principal of or interest on the Securities of such Series (whether such sums have been
paid to it by the Company or by any other obligor on the Securities of such Series) in trust for the benefit of the Holders of the Securities of such Series or of the Trustee, and upon the occurrence
of an Event of Default and upon the written request of the Trustee, pay over all such sums received by it to the Trustee, and 

        (b)   that
it will give the Trustee notice of any failure by the Company (or by any other obligor on the Securities of such Series) to make any payment of the principal of or
interest on the Securities of such Series when the same shall be due and payable. 

        The
Company will, on or prior to each due date of the principal of or interest on the Securities of such Series, deposit in a timely manner with the Paying Agent a sum sufficient to pay
such principal or interest so becoming due, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of any failure to take such action. 

        If
the Company shall act as its own Paying Agent with respect to the Securities of any Series, it will, on or before each due date of the principal of or interest on the Securities of
such Series, set aside, segregate and hold in trust for the benefit of the Holders of the Securities of such Series a sum sufficient to pay such principal or interest so becoming due. The
Company will promptly notify the Trustee of any failure to take such action. 

13

   
        Anything in this Section to the contrary notwithstanding, the Company may at any time, for the purpose of obtaining a satisfaction and discharge with respect to one or more or all Series
of Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust for any such Series by the Company or any Paying Agent hereunder, as required by this
Section, such sums to be held by the Trustee upon the trusts herein contained. 

        Anything
in this Section to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section is subject to the provisions of Sections 10.03 and 10.04. 

        SECTION
3.04.    Written Statement to Trustee.    The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company ending after the date hereof, a brief certificate (which need not comply with Section 11.05) from the principal executive, financial or
accounting officer of the Company as to his or her knowledge, after due inquiry, of the Company's compliance with all conditions and covenants under the Indenture (such compliance to be determined
without regard to any period of grace or requirement of notice provided under the Indenture). 

        SECTION
3.05.    Waiver of Certain Covenants.    The Company may omit in any particular instance to comply with any
term, provision or condition set forth in Section 3.06 with respect to the Securities of any Series if before the time for such compliance the Holders of at least a majority in principal amount
of the Outstanding Securities of such Series shall either waive such compliance in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend
to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and effect. 

        SECTION
3.06.    Limitation on Liens.    The Company will not, and will not permit any Subsidiary to, directly or
indirectly, create, incur, assume or permit to exist any Lien on or with respect to any Property of the Company or such Subsidiary or any interest therein or any income or profits therefrom, unless
the Securities are secured equally and ratably with (or prior to) any and all other indebtedness secured by such Lien, except for: 

        (a)   any
Lien arising in the ordinary course of business, other than in connection with indebtedness for borrowed money; 

        (b)   any
Lien on Property acquired by the Company or any Subsidiary after the date of issuance of the Securities, provided that such Lien existed on the date such Property
was acquired; 

        (c)   any
Lien existing on the date of the Indenture; 

        (d)   any
Lien securing indebtedness incurred to finance the purchase price or cost of construction of Property (or additions, substantial repairs, alterations or substantial
improvements thereto), provided that such Lien and the indebtedness secured thereby are incurred within one year of the later of acquisition or completion of construction (or addition, repair,
alteration or improvement) and full operation thereof; 

        (e)   any
Liens arising out of judgments or awards made against the Company or any Subsidiary having an outstanding principal amount which do not exceed $20 million in
the aggregate or with respect to which the Company or such Subsidiary shall in good faith be prosecuting an appeal or proceedings for review, Liens which are discharged within 60 days of entry
of judgment or Liens incurred by the Company or a Subsidiary for the purpose of obtaining a stay or discharge in the course of any legal proceeding to which the Company or such Subsidiary is a party; 

        (f)    any
Lien for taxes not yet due and payable by the Company or any Subsidiary or which the Company or such Subsidiary is contesting in good faith; 

14

 

        (g)   any
Lien on or with respect to Property of a Subsidiary in favor of the Company or another Subsidiary; 

        (h)   short-term
repurchase agreements covering portfolio securities; 

        (i)    any
Lien securing indebtedness in respect of Capital Leases on the Property subject to such Capital Leases; 

        (j)    deposits,
reserves or contingent payment arrangements required under or pursuant to any applicable provisions of federal, state or local rules, regulations or ordinances
regarding health maintenance organizations, providers of life, health care or disability insurance or the provision of health care
services or such insurance or the management of health care services or securing regulatory capital or other financial responsibility requirements; 

        (k)   any
Lien (other than a Lien permitted under any of clauses (a) through (j) of this paragraph) securing indebtedness of the Company or of any Subsidiary
provided that the aggregate principal amount of all Secured Debt may not exceed 15% of Consolidated Net Tangible Assets of the Company and its Subsidiaries; 

        (l)    any
Lien extending, renewing or replacing any Lien permitted by clause (a) through (k) above; and 

        (m)  any
Lien securing indebtedness the proceeds of which are deposited, promptly upon receipt, with the Trustee solely for the purpose of effecting a legal defeasance or
covenant defeasance as set forth under "Satisfaction and Discharge of Indenture" and "Defeasance." 

        In
the case of Liens permitted under clauses (b) and (d), such Liens may not relate to any Property of the Company or a Subsidiary other than the Property so acquired,
constructed, added, repaired, altered or improved, as the case may be. In the case of Liens permitted under clause (l), unless such Liens are otherwise permitted under clause (k), such
Liens (A) may not relate to any Property of the Company or a Subsidiary other than the Property to which the Lien being extended, renewed or replaced related to, and (B) may not secure
indebtedness in excess of that secured by the Lien being extended, renewed or replaced. 

        SECTION
3.07.    Calculation of Original Issue Discount.    The Company shall file with the Trustee promptly at the
end of each calendar year a written notice specifying, if any, the amount of original issue discount (including daily rates and accrual periods) accrued on each Series of Outstanding Securities as of
the end of such year. 

ARTICLE 4  

 SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY  

        SECTION
4.01.    Company to Furnish Trustee Information as to Names and Addresses of Securityholders.    The Company
covenants and agrees that it will furnish or cause to be furnished to the Trustee a list in
such form as the Trustee may reasonably require of the names and addresses of the Holders of the Securities of each Series: 

        (a)   semiannually
and not more than 15 days after each record date for the payment of interest on such Securities, as hereinabove specified, as of such record date,
and 

        (b)   at
such other times as the Trustee may reasonably request in writing, within 30 days after receipt by the Company of any such request, such list to be as of a
date not more than 15 days prior to the time such information is furnished, provided that if and so long as the Trustee shall be the Security registrar for such Series, such list shall not be
required to be furnished. 

15

 

        SECTION
4.02.    Preservation and Disclosure of Securityholders' Lists.    

        (a)   The
Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the Holders of each Series of Securities
contained in the most recent list furnished to it as provided in Section 4.01 or maintained by the Trustee in its capacity as Security registrar for such Series, if so acting. The Trustee may
destroy any list furnished to it as provided in Section 4.01 upon receipt of a new list so furnished. 

        (b)   In
case three or more Holders of Securities of any Series (hereinafter 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 of Securities of a particular Series (in which case the applicants must all hold Securities of such Series) or with Holders of all Securities with respect to their rights under this
Indenture or under such Securities and such application is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, then the Trustee shall, within
five business days after the receipt of such application, at its election, either 

          (i)  afford
to such applicants access to the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of this
Section 4.02, or 

         (ii)  inform
such applicants as to the approximate number of Holders of Securities of such Series or all Securities, as the case may be, whose names and addresses appear in
the information preserved at the time by the Trustee, in accordance with the provisions of subsection (a) of this Section, and as to the
approximate cost of mailing to such Securityholders the form of proxy or other communication, if any, specified in such application. 

        If
the Trustee shall elect not to afford to such applicants access to such information, the Trustee shall, upon the written request of such applicants, mail to each Securityholder of
such Series or all Securities, as the case may be, whose name and address appear in the information preserved at the time by the Trustee in accordance with the provisions of subsection (a) of
this Section, 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 interests of the Holders of Securities of
such Series or all Securities, as the case may be, or could be in violation of applicable law. Such written statement shall specify the basis of such opinion. If the Commission, after opportunity for
a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of such order sustaining one or more
of such objections, the Commission shall find, after notice and opportunity for hearing, that all the objections so sustained have been met, and shall enter an order so declaring, the Trustee shall
mail copies of such material to all such Securityholders with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application. 

        (c)   Each
and every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of
the Company or the Trustee shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders of Securities in accordance with the provisions of
subsection (b) of this Section, 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 such subsection (b). 

16

 

        SECTION
4.03.    Reports by the Company.    The Company covenants: 

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

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

        (c)   to
transmit by mail to the Holders of Securities in the manner and to the extent required by Section 6.06, within 30 days after the filing thereof with the
Trustee, such summaries of any information, documents, and reports required to be filed by the Company pursuant to subsections (a) and (b) of this Section as may be required to be
transmitted to such Holders by rules and regulations prescribed from time to time by the Commission. 

ARTICLE 5  

 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT  

        SECTION
5.01.    Event of Default Defined; Acceleration of Maturity; Waiver of Default.    "Event of Default" with
respect to Securities of any Series wherever used herein, means any one of the following events which shall have occurred and be continuing (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body) unless it is either inapplicable to a particular Series or it is specifically deleted or modified in or pursuant to the supplemental indenture or resolution of the Board of Directors
establishing such Series of Securities or in the form of Security for such Series: 

        (a)   default
in the payment of any installment of interest upon any of the Securities of such Series as and when the same shall become due and payable, and continuance of
such default for a period of 30 days; or 

        (b)   default
in the payment of all or any part of the principal of any of the Securities of such Series as and when the same shall become due and payable, either at maturity,
upon any redemption, by declaration or otherwise; or 

        (c)   default
in the performance, or breach of any covenant or warranty of the Company contained in the Securities of such Series or in this Indenture (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 one or
more Series of Securities other than that Series), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Company
by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the 

17

 

Outstanding
Securities of that Series, 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 

        (d)   default
under any bond, debenture, note or other evidence of indebtedness of the Company or any Subsidiary, or under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced any indebtedness of the Company or any Subsidiary, whether such indebtedness now exists or is hereafter created, which default
involves the failure to pay principal on indebtedness at the final maturity thereof after the expiration of any applicable grace period with respect thereto, or which has resulted in indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable in an aggregate amount in excess of $40,000,000; or 

        (e)   the
entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable Federal or State law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company 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 90 consecutive days; or 

        (f)    the
commencement by the Company of a voluntary case or proceeding under any applicable Federal or State 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 it to the entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by
it of a petition or answer or consent seeking reorganization or relief under any applicable Federal or State law, or the consent by it 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 of any substantial part of its property, or the making by it of an assignment for
the benefit of creditors; or 

        (g)   any
other Event of Default provided with respect to Securities of such Series in the supplemental indenture or resolution of the Board of Directors establishing such
Series. 

        If
an Event of Default occurs and is continuing with respect to the Securities of any Series, then and in each and every such case, unless the principal of all Securities of such Series
shall have already become due and payable, either the Trustee for such Series or the Holders of not less than 25% in aggregate principal amount at maturity of the Securities of such Series then
Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Holders), may declare the principal of all the Securities of such Series to be due and payable
immediately, and upon any such declaration the same shall become and shall be immediately due and payable. This provision, however, is subject to the condition that if at any time after the principal
of the Securities of such Series shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest, if any, upon all the Securities of such Series and the principal of any
and all Securities of such Series which shall have become due otherwise than by such acceleration (with interest upon such principal and, to the extent that payment of such interest is enforceable
under applicable law, upon overdue installments of interest, at the rate borne by the Securities of such Series to the date of such payment or deposit) and 

18

 

in
Dollars such amount as shall be sufficient to cover reasonable compensation to the Trustee, its agents, attorneys and counsel and all other expenses and liabilities incurred, and all advances made,
by the Trustee, its agents, attorneys and counsel and any and all defaults under this Indenture, other than the nonpayment of the principal of Securities of such Series which shall have become due by
such acceleration, shall have been remedied, then and in every such case the Holders of a majority in aggregate principal amount at maturity of the Securities of such Series then Outstanding, by
written notice to the Company and to the Trustee for the Securities of such Series, may waive all defaults and rescind and annul such declaration and its consequences; but no such waiver or rescission
and annulment shall extend to or shall affect any subsequent default or shall impair any right consequent thereon. 

        SECTION
5.02.    Collection of Indebtedness by Trustee; Trustee May Prove Debt.    The Company covenants that
(a) in case default shall be made in the payment of any installment of interest on any of the Securities of any Series when such interest shall have become due and payable, and such default
shall have continued for a period of 30 days, or (b) in case default shall be made in the payment of all or any part of the principal of any of the Securities of any Series when the same
shall have become due and payable, whether upon maturity of the Securities of such Series or upon any redemption or by declaration or otherwise, then upon demand of the Trustee for the Securities of
such Series, the Company will pay to the Trustee for the Securities of such Series for the benefit of the Holders of the Securities of such Series the whole amount that then shall have become due and
payable on all Securities of such Series for principal of or interest, as the case may be (with interest to the date of such payment upon the overdue principal and, to the extent that payment of such
interest is enforceable under applicable law, on overdue installments of interest at the same rate as the rate of interest specified in the Securities of such Series); and in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation to, and all expenses and liabilities incurred and all advances made by, the
Trustee and each predecessor Trustee and their respective agents, attorneys and counsel. 

        Until
such demand is made by the Trustee, the Company may pay the principal of and interest on the Securities of any Series to the persons entitled thereto, whether or not the principal
of and interest on the Securities of such Series are overdue. 

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

        In
case there shall be pending proceedings relative to the Company or any other obligor upon the Securities under Title 11 of the United States Code or any other applicable Federal or
State bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed
for or taken possession of the Company or its property or such other obligor, or in case of any other comparable judicial proceedings relative to the Company or other obligor under the Securities of
any Series, or to the creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the principal of any 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 pursuant to the 

19

 

provisions
of this Section, shall be entitled and empowered, by intervention in such proceedings or otherwise: 

        (a)   to
file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Securities of any Series, 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 reasonable compensation to, and all expenses and liabilities incurred and all
advances made by, the Trustee and each predecessor Trustee, and their respective agents, attorneys and counsel) and of the Securityholders allowed in any judicial proceedings relative to the Company
or other obligor upon all Securities of any Series, or to the creditors or property of the Company or such other obligor, and 

        (b)   to
collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute all amounts received with respect to the claims of the
Securityholders and of the Trustee on their behalf; and any trustee, receiver, or liquidator, custodian or other similar official is hereby authorized by each of the Holders to make payments to the
Trustee for the Securities of such Series, and, in the event that such Trustee shall consent to the making of payments directly to the Securityholders, to pay to such Trustee such amounts as shall be
sufficient to cover reasonable compensation to, and all expenses and liabilities incurred and all advances made by, such Trustee, each
predecessor Trustee and their respective agents, attorneys and counsel and all other amounts due to such Trustee or any predecessor Trustee pursuant to Section 6.07. 

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

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

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

        SECTION
5.03.    Application of Proceeds.    Any moneys collected by the Trustee for the Securities of such Series
pursuant to this Article in respect of the Securities of any Series shall be applied in the following order at the date or dates fixed by such Trustee and, in case of the distribution of such moneys
on account of principal or interest, upon presentation of the several Securities in respect of which moneys have been collected and stamping (or otherwise noting) thereon the payment, or issuing
Securities of such Series in reduced principal amounts in exchange for the presented Securities of like Series if only partially paid, or upon surrender thereof if fully paid: 

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

20

 

agents
and attorneys and all other amounts due to the Trustee or any predecessor Trustee pursuant to Section 6.07; 

        SECOND:
To the payment of the amounts then due and unpaid for principal of and interest on the Securities of such Series in respect of which moneys have been collected, such payments to
be made ratably to the persons entitled thereto, without discrimination or preference, according to the amounts then due and payable on such Securities for principal and interest; and 

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

        SECTION
5.04.    Restoration of Rights on Abandonment of Proceedings.    In case the Trustee for the Securities of any
Series shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the
Trustee, then and in every such case, subject to the determination in any such proceeding, the Company and the Trustee shall be restored respectively to their former positions and rights hereunder,
and all rights, remedies and powers of the Company, the Trustee and the Securityholders shall continue as though no such proceedings had been taken. 

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

        SECTION
5.06.    Unconditional Right of Securityholders to Institute Certain Suits.    Notwithstanding any provision
in this Indenture and any provision of any Security, the right of any Holder of any Security to receive payment of the principal of and (subject to Section 2.07) interest on such Security at
the respective rates, in the respective amount on or after the respective due dates expressed in such Security, or to institute suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder. 

        SECTION
5.07.    Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.    Except as provided in
Section 2.09 and Section 5.05, no right or remedy herein conferred upon or reserved to the Trustee or to the Securityholders 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 

21

 

equity
or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 

        No
delay or omission of the Trustee or of any Securityholder to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such
right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence therein; and, subject to Section 5.05, every power and remedy given by this Indenture or by
law to the Trustee or to the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or the Securityholders. 

        SECTION
5.08.    Control by Securityholders.    The Holders of a majority in aggregate principal amount of the
Securities of each Series affected (with each Series treated as a separate class) at the time Outstanding shall have the right to direct the time, method, and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to the Securities of such Series by this Indenture; provided that such direction shall not
be otherwise than in accordance with law and the provisions of this Indenture and provided further that the Trustee shall have the right to decline to follow any such direction if the Trustee shall
determine that the action or proceedings so directed would involve the Trustee in personal liability or if the Trustee in good faith shall so determine that the actions or forbearances specified in or
pursuant to such direction would be unduly prejudicial to the interests of Holders of the Securities of all Series so affected not joining in the giving of said direction, it being understood that the
Trustee shall have no duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders. 

        SECTION
5.09.    Waiver of Past Defaults.    The Holders of a majority in aggregate principal amount of the Securities
of such Series at the time outstanding may on behalf of the Holders of all the Securities of such Series waive any past default hereunder or its consequences, except a default in the payment of the
principal of or interest on any of the Securities of such Series. 

        Upon
any such waiver, such default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to have been
cured and not to have occurred for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 

        SECTION
5.10.    Right of Court to Require Filing of Undertaking to Pay 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 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 and expenses, against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder
or group of Securityholders of any Series holding in the aggregate more than 10% in aggregate principal amount of the Securities of such Series, or to any suit instituted by any Securityholder for the
enforcement of the payment of the principal of or interest on any Security on or after the due date expressed in such Security. 

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

22

 

ARTICLE 6  

 CONCERNING THE TRUSTEE  

        SECTION
6.01.    Duties of Trustee.    

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

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

          (i)  the
Trustee need perform only those duties that are specifically set forth in this Indenture and the Trustee shall not be liable except for the performance of such
duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 

         (ii)  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any such certificates or opinions which by any provision hereof
are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 

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

          (i)  this
paragraph (c) does not limit the effect of paragraph (b) of this Section 6.01; 

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

        (iii)  the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to
Section 5.08. 

        (d)   Every
provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 6.01. 

        (e)   No
provision of this Indenture shall require the Trustee to extend or risk its own funds or otherwise incur any financial liability unless it receives indemnity
satisfactory to it against any loss, liability or expense. 

        (f)    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 in writing with the Company. 

        SECTION
6.02.    Rights of Trustee.    

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

23

  

        (b)   Before
the Trustee acts or refrains from acting, it may require an Officers' Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on such Officers' Certificate or Opinion of Counsel. 

        (c)   Subject
to the provisions of Section 6.01(c), the Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be
authorized or within its rights or powers. 

        (d)   Before
the Trustee acts or refrains from acting the Trustee may consult with counsel of its selection 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 in accordance with such advice or Opinion of
Counsel. 

        (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 indemnity reasonable to it against the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction. 

        (f)    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. 

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

        (h)   The
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder. 

        (i)    The
Trustee shall not be bound to ascertain or inquire as to the performance or observance of any covenants, conditions or agreements on the part of the Company, except
as otherwise set forth herein, but the Trustee may require of the Company full information and advice as to the performance of the covenants, conditions and agreements contained herein and shall be
entitled in connection herewith to examine the books, records and premises of the Company. 

        (j)    The
permissive rights of the Trustee to do things enumerated in this Indenture shall not be construed as a duty and the Trustee shall not be answerable for other than
its negligence or willful default. 

        (k)   Except
for (i) a default under Sections 5.01(a) or (b) hereof, or (ii) any other event of which the Trustee has "actual knowledge" and which event,
with the giving of notice or the passage of time or both, would constitute an Event of Default under this Indenture, the Trustee shall not be deemed to have notice of any default or event unless
specifically notified in writing of such event by the Company or the Holders of not less than 25% in aggregate principal amount of 

24

 

the
Securities Outstanding; as used herein, the term "actual knowledge" means the actual fact or statement of knowing, without any duty to make any investigation with regard thereto. 

        SECTION
6.03.    Individual Rights of Trustee.    The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or its affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, registrar or
co-registrar may do the same with like rights. However, the Trustee must comply with Sections 6.10 and 6.11. 

        SECTION
6.04.    Trustee's Disclaimer.    The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company's use of the proceeds from the Securities, it shall not be responsible for any statement in the registration statement for the
Securities under the Securities Act of 1933, as amended, or in the Indenture or the Securities (other than its certificate of authentication). 

        SECTION
6.05.    Notice of Defaults.    If a default occurs and is continuing with respect to any Securities of any
Series and if the Trustee has actual knowledge of such default, the Trustee shall give to each Securityholder of such Series notice of the default within 90 days after such default occurs.
Except in the case of a default described in Section 5.01(a) or (b), the Trustee may withhold the notice if and so
long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders of such Series. 

        SECTION
6.06.    Reports by Trustee to Holders.    Within 60 days after each
[            ] 1 beginning with the [            ] 1 following the date of this Indenture, the Trustee shall mail to
each
Securityholder of any Series and each other person specified in TIA Section 313(c) a brief report dated as of such [            ] 1 that complies with
TIA Section 313(a) to the extent required thereby. The Trustee also shall comply with TIA Section 313(b). 

        A
copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the Commission and each securities exchange on which the Securities of any Series
are listed. The Company agrees promptly to notify the Trustee whenever the Securities of any Series become listed on any securities exchange and of any delisting thereof. 

        SECTION
6.07.    Compensation and Indemnity.    The Company agrees: 

        (a)   to
pay to the Trustee from time to time, and the Trustee shall be entitled to, in Dollars such compensation as shall be agreed to in writing between the Company and the
Trustee 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); 

        (b)   to
reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of
this Indenture (including the reasonable compensation and the expenses, advances and disbursements of its agents and counsel), except to the extent any such expense, disbursement or advance may be
attributable to its negligence or willful misconduct; and 

        (c)   to
indemnify the Trustee in Dollars for, and to hold it harmless against, any loss, liability or expense arising out of or in connection with the acceptance or
administration of this trust or the performance of its duties hereunder, including the costs and expenses of defending itself against or investigating any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the extent that any such loss, liability or expense may be attributable to its negligence or willful misconduct. 

        As
security for the performance of the obligations of the Company in this Section 6.07, the Trustee shall have a lien prior to the Securities on all money or property held or
collected by the Trustee, except that held in trust to pay the principal of or interest, if any, on particular Securities. 

25

 

        "Trustee"
for purpose of this Section 6.07 includes any predecessor trustee, provided that the negligence or bad faith of any Trustee shall not be attributable to any other
Trustee. 

        The
Company's payment obligations pursuant to this Section 6.07 shall constitute additional indebtedness hereunder and shall survive the discharge of this Indenture. When the
Trustee incurs expenses after the occurrence of a default specified in Sections 5.01(d) and 5.01(e), such expenses (including reasonable fees and expenses of its counsel) are intended to constitute
expenses of administration under bankruptcy law. 

        SECTION
6.08.    Replacement of Trustee.    The Trustee may resign at any time with respect to Securities of one or
more Series by so notifying the Company; provided, however, no such resignation shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 6.08. The
Holders of a majority in aggregate principal amount of the Outstanding Securities of any Series may remove the Trustee with respect to such Series at the time outstanding by so notifying the Trustee
and the Company. The Company shall remove the Trustee if: 

        (a)   the
Trustee fails to comply with Section 6.10; 

        (b)   the
Trustee is adjudged bankrupt or insolvent; 

        (c)   a
receiver or public officer takes charge of the Trustee or its property; or 

        (d)   the
Trustee otherwise becomes incapable of acting. 

        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, with respect to the Securities of one or more Series, the Company shall promptly
appoint, by resolution of its Board of Directors, a successor Trustee with respect to the Securities of such Series. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture with respect to the Securities of such Series. The successor Trustee shall
mail a notice of its succession to Securityholders so affected. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided
for in Section 6.07. 

        If
a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of a majority in
aggregate Principal Amount of the Securities at the time outstanding may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

        If
the Trustee fails to comply with Section 6.10, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee. 

        SECTION
6.09.    Successor Trustee by Merger.    If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to, another corporation, the resulting, surviving or transferee corporation without any further act shall be the successor
Trustee. 

        SECTION
6.10.    Eligibility; Disqualification.    The Trustee shall at all times satisfy the requirements of TIA
Section 310(a)(1). The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. Neither the Company nor
any person directly or indirectly controlling, controlled by or under common control with the Company shall serve as Trustee hereunder. The Trustee shall comply with TIA Section 310(b). 

        SECTION
6.11.    Preferential Collection of Claims Against Company.    The Trustee shall comply with TIA
Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated therein. 

26

 

ARTICLE 7  

 CONCERNING THE SECURITYHOLDERS  

        SECTION
7.01.    Evidence of Action Taken by Securityholders.    

        (a)   Any
request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Securityholders of any or all Series may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such specified percentage of
Securityholders in person or by agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are
delivered to the Trustee. Proof of execution of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Sections 6.01 and 6.02)
conclusive in favor of the Trustee and the Company, if made in the manner provided in this Article. 

        (b)   The
ownership of Securities shall be proved by the Security register. 

        SECTION
7.02.    Proof of Execution of Instruments.    Subject to Sections 6.01 and 6.02, the execution of any
instrument by a Securityholder or his agent or proxy may be proved in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee. 

        SECTION
7.03.    Holders to Be Treated as Owners.    The Company, the Trustee and any agent of the Company or the
Trustee may deem and treat the person in whose name any Security shall be registered upon the Security register for such Series as the absolute owner of such Security (whether or not such Security
shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account of the principal of and interest on such Security and for
all other purposes; and neither the Company nor the Trustee nor any agent of the Company or the Trustee shall be affected by any notice to the contrary. All such payments so made to any such person,
or upon his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Security. 

        SECTION
7.04.    Securities Owned by Company Deemed Not Outstanding.    In determining whether the Holders of the
requisite aggregate principal amount of Outstanding Securities of any or all Series have concurred in any direction, consent or waiver under this Indenture, Securities which are owned by the
Company or any other obligor on the Securities with respect to which such determination is being made or by any person directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company or any other obligor on the Securities with respect to which such determination is being made shall be disregarded and deemed not to be Outstanding for the purpose of
any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver only Securities which the Trustee knows
are so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any other obligor on the Securities. 

        SECTION
7.05.    Right of Revocation of Action Taken.    At any time prior to (but not after) the evidencing to the
Trustee, as provided in Section 7.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Securities of any or all Series, as the case may be,
specified in this Indenture in connection with such action, any Holder of a Security the serial number of which is shown by the evidence to be included among the serial numbers of the Securities the
Holders of which have consented to such action may, by filing written notice at the Corporate Trust 

27

 

Office
and upon proof of holding as provided in this Article, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the Holder of any Security shall be
conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of any Securities issued in exchange or substitution therefor, irrespective of whether or not any
notation in regard thereto is made upon any such Security. Any action taken by the Holders of the percentage in aggregate principal amount of the Securities of any or all Series, as the case may be,
specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the Holders of all the Securities affected by such action. 

ARTICLE 8  

 SUPPLEMENTAL INDENTURES  

        SECTION
8.01.    Supplemental Indentures Without Consent of Securityholders.    The Company, when authorized by a
resolution of its Board of Directors, and the Trustee for the Securities of any and all Series may from time to time and at any time enter into an indenture or indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act of 1939 as in force at the date
of the execution thereof), in form satisfactory to such Trustee, for one or more of the following purposes: 

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

        (b)   to
evidence the succession of another corporation to the Company, or successive successions, and the assumption by the successor corporation of the covenants, agreements
and obligations of the Company pursuant to Article 9; 

        (c)   to
add to the covenants of the Company such further covenants, restrictions, conditions or provisions for the protection of the Holders of Securities of any or all
Series and, if such additional covenants are to be for the benefit of less than all the Series of Securities, stating that such covenants are being added solely for the benefit of such Series; 

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

        (e)   to
establish the form or terms of Securities of any Series as permitted by Sections 2.01 and 2.03; or 

        (f)    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 the one Trustee, pursuant to the requirements of
Section 6.08. 

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

28

 

        Any
supplemental indenture authorized by the provisions of this Section may be executed without the consent of the Holders of any of the Securities at the time Outstanding,
notwithstanding any of the provisions of Section 8.02. 

        SECTION
8.02.    Supplemental Indentures with Consent of Securityholders.    With the consent (evidenced as provided
in Article 7) of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding of each Series affected by such supplemental indenture (voting
as one class), the Company, when authorized by a resolution of its Board of Directors, and the Trustee for such Series of Securities may, from time to time and at any time, enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act of 1939 as in force at the date of execution thereof) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders of the Securities of each such
Series; provided, however, that no such supplemental indenture shall (a) extend the final maturity date of any Security, or reduce the principal amount thereof or any premium thereon, or reduce
the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof, or impair or affect the right of any Securityholder to institute suit for payment
thereof or, if the Securities provide therefor, any right of repayment at the option of the Securityholder without the consent of the Holder of each Security so affected, or (b) reduce the
aforesaid percentage of Securities of any Series, the consent of the Holders of which is required for any such supplemental indenture, without the consent of the Holders of each Security so affected,
or (c) reduce the amount of principal payable upon acceleration of the maturity date of any Original Issue Discount Security. 

        Upon
the request of the Company, accompanied by a copy of a resolution of the Board of Directors certified by the secretary or an assistant secretary of the Company authorizing the
execution of any such supplemental indenture, and upon the filing with the Trustee for such Series of Securities of evidence of the consent of the Securityholders as aforesaid and other documents, if
any, required by Section 7.01, the Trustee for such Series of Securities shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects
such Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case such Trustee may in its discretion, but shall not be obligated to, enter into such supplemental
indenture. 

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

        Promptly
after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Company shall give notice in the manner and to
the extent provided in Section 11.04 to the Holders of Securities of each Series affected thereby at their addresses as they shall appear on the Security register of the Company, setting forth
in general terms the substance of such supplemental indenture. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture. 

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

29

 

        SECTION
8.04.    Documents to Be Given to Trustee.    The Trustee, subject to the provisions of Sections 6.01 and
6.02, shall receive an Officers' Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article 8 complies with the applicable
provisions of this Indenture. 

        SECTION
8.05.    Notation on Securities in Respect of Supplemental Indentures.    Securities of any Series
authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article may bear, upon the direction of the Company, a notation in form satisfactory to
the Trustee for the Securities of such Series as to any matter provided for by such supplemental indenture. If the Company or the Trustee shall so determine, new Securities of any Series so modified
as to conform, in the opinion of the Trustee and the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company,
authenticated by the Trustee and delivered in exchange for the Securities of such Series then outstanding. 

ARTICLE 9  

 CONSOLIDATION, MERGER, SALE OR CONVEYANCE  

        SECTION
9.01.    Company May Consolidate, Etc. on Certain Terms.    The Company may consolidate with, sell, convey or
lease all or substantially all of its assets to, or merge with or into, any other corporation, provided that in any such case, (a) either the Company shall be the continuing corporation, or the
successor corporation shall be organized and validly existing under the laws of the United States of America or any State thereof or the District of Columbia and shall expressly assume the due and
punctual payment of the principal of and interest on all the securities according to their tenor, and the
due and punctual performance and observance of all of the covenants and conditions of this Indenture to be performed or observed by the Company by supplemental indenture satisfactory to the Trustee,
executed and delivered to the Trustee by such corporation, and (b) the Company or such successor corporation, as the case may be, shall not, immediately after such merger, consolidation, sale,
conveyance or lease, be in material default in the performance or observance of any such covenant or condition. 

        SECTION
9.02.    Successor Corporation Substituted.    In case of any such consolidation, merger, sale, lease or
conveyance, and following such an assumption by the successor corporation, such successor corporation shall succeed to and be substituted for the Company, with the same effect as if it had been named
herein. Such successor corporation may cause to be signed, and may issue either in its own name or in the name of the Company prior to such succession any or all of the Securities issuable hereunder
which theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such successor corporation instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall make available for delivery any Securities which previously shall have been signed and delivered by
the officers of the Company to the Trustee for authentication, and any Securities which such successor corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose.
All of the Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the execution hereof. 

30

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

        In
the event of any such sale or conveyance the Company (or any successor corporation which shall theretofore have become such in the manner described in this Article) shall be
discharged from all obligations and covenants under this Indenture and the Securities and may be liquidated and dissolved. 

        SECTION
9.03.    Opinion of Counsel to Trustee.    The Trustee, subject to the provisions of Sections 6.01 and 6.02,
shall receive an Opinion of Counsel, prepared in accordance with Section 11.05, as conclusive evidence that any such consolidation, merger, sale, lease or conveyance, and any such assumption,
and any such liquidation or dissolution, complies with the applicable provisions of this Indenture. 

ARTICLE 10  

 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS  

        SECTION
10.01.    Satisfaction and Discharge of Indenture.    

        (a)   If
at any time (i) the Company shall have paid or caused to be paid the principal of and interest on all the Securities of any Series Outstanding hereunder (other
than Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.09) as and when the same shall have become due and payable, or
(ii) the Company shall have delivered to the Trustee for cancellation all Securities of any Series theretofore authenticated (other than any Securities of such Series which have been destroyed,
lost or stolen and which shall have been replaced or paid as provided in Section 2.09) or (iii) (A) all the Securities of such Series not theretofore delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption, and (B) the Company shall have irrevocably deposited or caused to be deposited with the Trustee as trust funds the entire amount (other than
moneys repaid by the Trustee or any Paying Agent to the Company in accordance with Section 10.04) or Government Obligations maturing as to principal and interest in such amounts and at such
times as will ensure the availability of cash sufficient to pay at maturity or upon redemption all Securities of such Series (other than any Securities of such Series which shall have been destroyed,
lost or stolen and which shall have been replaced or paid as provided in Section 2.09) not theretofore delivered to the Trustee for cancellation, including principal and interest due or to
become due to such date of maturity as the case may be, and if, in any such case, the Company shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to
Securities of such Series, then this Indenture shall cease to be of further effect with respect to Securities of such Series (except as to (1) rights of registration of transfer and exchange,
and the Company's right of optional redemption (provided the Company provides sufficient funds to effect such optional redemption), (2) substitution of mutilated, defaced, destroyed, lost or
stolen Securities, (3) rights of Holders to receive payments of principal thereof and interest thereon upon the original stated due dates therefor (but not upon acceleration) and remaining
rights of the Holders to receive mandatory sinking fund payments, if any, (4) the rights, obligations and immunities of the Trustee hereunder and (5) the rights of the Securityholders of
such Series as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them), and, subject to Section 10.05, the Trustee, on demand of the
Company accompanied by an Officers' Certificate and an Opinion of Counsel and at the cost and expense of the Company, shall execute proper instruments acknowledging such satisfaction of and
discharging this Indenture with respect to such 

31

 

Series;
provided, that the rights of Holders of the Securities to receive amounts in respect of principal of and interest on the Securities held by them shall not be delayed longer than required by
then-applicable mandatory rules or policies of any securities exchange upon which the Securities are listed. The Company agrees to reimburse the Trustee for any costs or expenses
thereafter reasonably and properly incurred and to compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee in connection with this Indenture and the
Securities of such Series. 

        (b)   (i) In
addition to the provisions of Section 10.01(a), the Company may, at its option by or pursuant to, or otherwise in a manner or by such Persons as may
be authorized pursuant to, one or more resolutions duly adopted by the Board of Directors, at any time with respect to the Securities of any Series, elect to have defeasance under subsection
(ii) or (iii) of this Section 10.01(b) be applied to the Outstanding Securities of such Series provided that provision therefor is made for such application pursuant to
Section 2.03 and the applicable conditions thereto as set forth in this Section 10.01(b) have been satisfied. 

         (ii)  Upon
the Company's exercise of the option referenced in Section 10.01(b)(i) applicable to this subsection, the Company may terminate its obligations under
the Outstanding Securities of any Series and this Indenture with respect to such Series on the date the conditions set forth below are satisfied (hereinafter, "defeasance"). For this purpose, such
defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by the Outstanding Securities of such Series and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense and request of the Company, shall execute proper instruments
acknowledging the same), except for the following: (A) the rights of Holders of Outstanding Securities of such Series to receive payments in respect of the principal of and interest on such
Securities when such payments are due, (B) the Company's obligations with respect to such Securities under Sections 2.08, 2.09, 3.02, 6.07, 10.04 and 10.05, (C) the rights, powers,
trusts, duties and immunities of the Trustee hereunder, and (D) this Section 10.01(b). 

        (iii)  Upon
the Company's exercise of the option referenced in Section 10.01(b)(i) applicable to this subsection, the Company shall be released from its
obligations under the covenants contained in Sections 3.04 and 3.06 with respect to the Outstanding Securities of such Series on and after the date the conditions set forth below are satisfied
(hereinafter, "covenant defeasance"), and the Outstanding Securities of such Series shall thereafter be deemed to be not "Outstanding" for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed "Outstanding" for all other purposes hereunder. For this purpose, such
covenant defeasance means that, with respect to the Outstanding Securities, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or
in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 5.01(c) or (g), but, except as specified above, the remainder of this
Indenture and such Outstanding Securities of such Series shall be unaffected thereby. 

        (iv)  The
following shall be the conditions to the application of Section 10.01(b)(ii) or (iii) to the Outstanding Securities of such Series: 

        (A)  The
Company shall have irrevocably deposited or caused to be deposited with the Trustee (or another trustee satisfying the requirements of Section 6.10 who shall
agree 

32

 

to
comply with the provisions of this Section 10.01(b) applicable to it) under the terms of an irrevocable trust agreement, as trust funds in trust solely for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of Securities of such Series, (I) cash in the currency or currency unit required,
or (II) Government Obligations maturing as to principal and interest in such amounts (payable in the currency in which the Securities of such Series are payable) and at such times as are
sufficient to pay the principal of and interest on the Outstanding Securities of such Series to maturity or redemption, as the case may be, or (III) a combination thereof, in each case
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, and which
shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, (x) the principal of and each installment of principal of and interest, if any, on the Outstanding Securities
of such Series on the stated maturity of such principal or installment of principal or interest, if any, and (y) any mandatory sinking fund payments or analogous payments applicable to the
Outstanding Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and of such Securities. Such irrevocable trust agreement
shall include, among other things, (a) provision for the payments referenced in clauses (x) and (y) of the immediately preceding sentence, (b) the payment of the reasonable
expenses of the Trustee incurred or to be incurred in connection with carrying out such trust provisions, (c) rights of registration, transfer, substitution and exchange of Securities of such
Series in accordance with the terms stated in this Indenture and (d) continuation of the rights and obligations and immunities of the Trustee as against the Holders of Securities of such Series
as stated in this Indenture. 

        (B)  No
Event of Default or event which with notice or lapse of time or both would constitute an Event of Default with respect to the Securities of such Series shall have
occurred and be continuing on the date of such deposit or, insofar as Sections 5.01(e) and 5.01(f) are concerned, at any time during the period ending on the 91st day after the date of such deposit
(it being understood that this condition shall not be deemed satisfied until the expiration of such period). 

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

        (D)  In
the case of an election under Section 10.01(b)(ii), the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Securityholders of
such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit and defeasance and will be subject to Federal income tax on the same amounts and in the
same manner and at the same time as would have been the case if such deposit and defeasance had not occurred, and which Opinion of Counsel must be based upon (x) a ruling of the U.S. Internal
Revenue Service to the same effect or (y) a change in applicable U.S. Federal income tax law after the date of the Indenture such that a ruling is no longer required. 

        (E)  In
the case of an election under Section 10.01(b)(iii) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that
Securityholders of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same
amounts and in the same manner and at the same time as would have been the case if such covenant defeasance had not occurred. 

33

 

        (F)  The
Company shall have delivered to the Trustee an Officers' Certificate and Opinion of Counsel, each stating that all conditions precedent provided for herein relating
to the deposit and defeasance or covenant defeasance, as the case may be, contemplated by this Section 10.01(b) have been complied with. 

        SECTION
10.02.    Application by Trustee of Funds Deposited for Payment of Securities.    Subject to
Section 10.04, all moneys deposited with the Trustee pursuant to Section 10.01 shall be held in trust and applied by it to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent), to the Holders of the particular Securities of such Series for the payment or redemption of which such moneys have been deposited with the
Trustee, of all sums due and to become due thereon for principal and interest; but such money need not be segregated from other funds except to the extent required by law. 

        SECTION
10.03.    Repayment of Moneys Held by Paying Agent.    In connection with the satisfaction and discharge of
this Indenture with respect to Securities of any Series, all moneys then held by any Paying Agent (other than the Company) under the provisions of this Indenture with respect to such Series of
Securities shall, upon written demand of the Company, be paid to the Trustee and thereupon such Paying Agent shall be released from all further liability with respect to such moneys. 

        SECTION
10.04.    Return of Unclaimed Moneys Held by Trustee and Paying Agent.    Any moneys deposited with or paid to
the Trustee or any Paying Agent (including the Company acting as its own Paying Agent) for the payment of the principal of or interest on any Security of any Series and not applied but remaining
unclaimed for two years after the date upon which such principal or interest shall have become due and payable, shall, upon the written request of the Company, unless otherwise required by mandatory
provisions of applicable escheat or abandoned or unclaimed property law, promptly be repaid to the Company by the Trustee for such Series or such Paying Agent (except that with respect to any amounts
then held by the Company in trust as its own Paying Agent no such request need be given and at such time the Company shall be discharged from its duty to hold such moneys in trust as Paying Agent),
and the Holder of the Security of such Series shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the
Company for any payment which such Holder may be entitled to collect, and all liability of the Trustee or any Paying Agent with respect to such moneys shall thereupon cease. Anything in this
Article 10 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the written request of the Company any money or Government Obligations held by
it as provided in
Section 10.01(b)(iv) which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to effect such defeasance or covenant defeasance, as the case may be, in accordance with the provisions of this Indenture. 

        SECTION
10.05.    Reinstatement of Company's Obligations.    If the Trustee is unable to apply any funds or Government
Obligations in accordance with Section 10.01 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company's obligations under this indenture and the Securities of any Series for which such application is prohibited shall be revived and reinstated as if no deposit
had occurred pursuant to Section 10.01 until such time as the Trustee is permitted to apply all such funds or Government Obligations in accordance with Section 10.01; provided, however,
that if the Company has made any payment of interest on or principal of any of such Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the
Securityholders of such Securities to receive such payment from the funds or Government Obligations held by the Trustee. 

34

 

ARTICLE 11  

 MISCELLANEOUS PROVISIONS  

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

        SECTION
11.02.    Provisions of Indenture for the Sole Benefit of Parties and Securityholders.    Nothing in this
Indenture or in the Securities, expressed or implied, shall give or be construed to give to any Person, firm or corporation, other than the parties hereto, any Paying Agent and their successors
hereunder and the Holders of the Securities any legal or equitable right, remedy or claim under this Indenture or
under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties hereto and their successors and of the Holders of the Securities. 

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

        SECTION
11.04.    Notices and Demands on Company, Trustee and Securityholders.    Any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by the Trustee or by the Holders of Securities to or on the Company may be given or served by being deposited postage
prepaid, first-class mail (except as otherwise specifically provided herein) addressed (until another address of the Company is filed by the Company with the Trustee) to WellPoint Health
Networks Inc., 1 WellPoint Way, Thousand Oaks, CA 91362, Attention: Corporate Secretary. Any notice, direction, request or demand by the Company or any Securityholder to or upon the Trustee
shall be deemed to have been sufficiently given or made, for all purposes, if given or made at the Corporate Trust Office. 

        Where
this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed by
first-class mail, postage prepaid to such Holders as their names and addresses appear in the Security register within the time prescribed. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. In any case where notice to Holders is given by
mail, neither the failure to mail such notice, nor any defect in any notice so mailed to any particular Holder shall affect the sufficiency of such notice with respect to other Holders, and any notice
which is mailed in the manner herein provided shall be conclusively presumed to have been duly given. 

        In
case, by reason of the suspension of or irregularities in regular mail service, it shall be impracticable to mail notice to the Company and Securityholders when such notice is
required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be reasonably acceptable to the Trustee shall be deemed to be a sufficient giving of
such notice. 

        SECTION
11.05.    Officers' Certificates and Opinions of Counsel; Statements to Be Contained Therein.    Upon any
application or demand by the Company to the Trustee to take any action under 

35

 

any
of the provisions of this Indenture, the Company 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 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 demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished. 

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

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

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

        SECTION
11.06.    Payments Due on Saturdays, Sundays and Holidays.    Unless otherwise specified in a Security, if the
date of maturity of interest on or principal of the Securities of any Series or the date
fixed for redemption or repayment of any such Security shall not be a Business Day, then payment of interest or principal need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after such date. 

        SECTION
11.07.    Conflict of Any Provision of Indenture with Trust Indenture Act of 1939.    If and to the extent
that any provision of this Indenture limits, qualifies or conflicts with another provision included in this Indenture which is required by the Trust Indenture Act of 1939, as amended, such required
provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act of 1939, as amended, that may be so modified or excluded, the latter provision
shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be. 

        SECTION
11.08.    New York Law to Govern.    This Indenture and each Security shall be deemed to be a contract under
the internal laws of the State of New York (without regard to conflicts of laws provisions thereof), and for all purposes shall be construed in accordance with the laws of said State. 

36

 

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

        SECTION
11.10.    Effect of Headings; Gender.    The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof. The use of the masculine, feminine or neuter gender herein shall not limit in any way the applicability of any term or provision
hereof. 

ARTICLE 12  

 REDEMPTION OF SECURITIES AND SINKING FUNDS  

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

        SECTION
12.02.    Notice of Redemption; Partial Redemptions.    Notice of redemption to the Holders of Securities of
any Series required to be redeemed or to be redeemed as a whole or in part at the option of the Company shall be given by giving notice of such redemption as provided in Section 11.04, at least
15 days and not more than forty-five days prior to the date fixed for redemption to such Holders of Securities of such Series. Failure to give notice by mail, or any defect in the
notice to the Holder of any Security of a Series designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Security of such
Series. 

        The
notice of redemption to each such Holder shall specify the date fixed for redemption, the "CUSIP" number or numbers for such Securities, the redemption price, the Place or Places of
Payment, that payment will be made upon presentation and surrender of such Securities, that such redemption is pursuant to the mandatory or optional sinking fund, or both, if such be the case, that
interest accrued to the date fixed for redemption will be paid as specified in such notice, that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue
and, if applicable, that a Holder of Securities who desires to convert Securities for redemption must satisfy the requirements for conversion contained in such Securities, the then existing conversion
price or rate and the date and time when the option to convert shall expire. If less than all of the Securities of any Series are to be redeemed, the notice of redemption shall specify the numbers of
the Securities of such Series to be redeemed. In case any Security of a Series is to be redeemed in part, the notice of redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that on and after the date fixed for redemption, upon surrender of such Security, a new Security or Securities of such Series in principal amount equal to the unredeemed
Portion thereof will be issued. 

        The
notice of redemption of Securities of any Series to be redeemed at the option of the Company shall be given by the Company or, at the Company's request, by the Trustee in the name
and at the expense of the Company. If such notice is to be given by the Trustee, the Company shall provide notice of such redemption to the Trustee at least forty-five days prior to the
date fixed for redemption (unless a shorter notice shall be satisfactory to the Trustee). If such notice is given by the Company, the Company shall provide a copy of such notice given to the Holders
of such redemption to the Trustee at least 3 Business Days prior to the date such notice is given to such Holders, but in any event at least 15 days prior to the date fixed for redemption
(unless a shorter notice shall be satisfactory to the Trustee). 

        Unless
otherwise specified pursuant to Section 2.03, not later than the redemption date specified in the notice of redemption given as provided in this Section, the Company will
have on deposit with the Trustee or with one or more Paying Agents (or, if the Company is acting as its own Paying Agent, 

37

 

set
aside, segregate and hold in trust as provided in Section 3.04) in funds available on such date an amount of money (or other forms of property, if permitted by the terms of the Securities
of such Series) sufficient to redeem on the redemption date all the Securities of such Series so called for redemption at the appropriate redemption price, together with accrued interest to the date
fixed for redemption. If less than all the Outstanding Securities of a Series are to be redeemed, the Company will deliver to the Trustee at least forty-five days prior to the date fixed
for redemption an Officers' Certificate stating the aggregate principal amount of Securities to be redeemed (unless a shorter notice shall be satisfactory to the Trustee). 

        If
less than all the Securities of a Series are to be redeemed, the Trustee shall select, in such manner as it shall deem appropriate and fair, Securities of such Series to be redeemed
in whole or in part and the Trustee shall promptly notify the Company in writing of the Securities of such Series selected for redemption and, in the case of any Securities of such Series selected for
partial redemption, the principal amount thereof to be redeemed. However, if less than all the Securities of any Series with differing issue dates, interest rates and stated maturities are to be
redeemed, the Company in its sole discretion shall select the particular securities to be redeemed and shall notify the Trustee in writing thereof at least forty-five days prior to the
relevant redemption date (unless a shorter notice shall be satisfactory to the Trustee). Securities may be redeemed in part in multiples equal to the minimum authorized denomination for Securities of
such Series or any multiple thereof. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities of any Series shall relate, in
the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed. 

        SECTION
12.03.    Payment of Securities Called for Redemption.    If notice of redemption has been given as above
provided, the Securities or portions of Securities specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption, and on and after said date (unless the Company shall default in the payment of such Securities at the redemption price, together with interest
accrued to said date) interest on the Securities or portions of Securities so called for redemption shall cease to accrue, and, except as provided in Sections 6.01 and 10.04, such Securities shall
cease from and after the date fixed for redemption to be entitled to any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities except the
right to receive the redemption price thereof and unpaid interest to the date fixed for redemption. On presentation and surrender of such Securities at a Place of Payment specified in said notice,
said Securities or the specified portions thereof shall be paid and redeemed by the Company at the applicable redemption price, together with interest accrued thereon to the date fixed for redemption;
provided that if for any Securities the date fixed for redemption is a regular interest payment date, payment of interest becoming due on such date shall be payable to the Holders of such Securities
registered as such on the relevant record date subject to the terms and provisions of Section 2.07 hereof. 

        If
any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the date fixed
for redemption at the rate of interest borne by the Security. 

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

        SECTION
12.04.    Exclusion of Certain Securities from Eligibility for Selection for Redemption.    Securities shall
be excluded from eligibility for selection for redemption if they are identified by registration and certificate number in a written statement signed by an authorized officer of the 

38

 

Company
and delivered to the Trustee at least 30 days prior to the last date on which notice of redemption may be given as being owned of record and beneficially by, and not pledged or
hypothecated by, either (a) the Company or (b) an entity specifically identified in such written statement as directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company. 

        SECTION
12.05.    Mandatory and Optional Sinking Funds.    The minimum amount of any sinking fund payment provided for
by the terms of Securities of any Series is herein referred to as a "mandatory sinking fund payment," and any payment in excess of such minimum amount provided for by the terms of Securities of any
Series is herein referred to as an "optional sinking fund payment." The date on which a sinking fund payment is to be made is herein referred to as the "sinking fund payment date." 

        In
lieu of making all or any part of any mandatory sinking fund payment with respect to any Series of Securities in cash, the Company may at its option (a) deliver to the Trustee
securities of such Series theretofore purchased or otherwise acquired (except upon redemption pursuant to the mandatory sinking fund) by the Company or receive credit for Securities of such Series
(not previously so credited) theretofore purchased or otherwise acquired (except as aforesaid) by the Company and delivered to the Trustee for cancellation pursuant to Section 2.10,
(b) receive credit for optional sinking fund payments (not previously so credited) made pursuant to this Section, or (c) receive credit for Securities of such Series (not previously so
credited) redeemed by the Company through any optional redemption provision contained in the terms of such Series. Securities so delivered or credited shall be received or credited by the Trustee at
the sinking fund redemption price specified in such Securities. 

        On
or before the forty-fifth day next preceding each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee a written statement (which need not
contain the statements required by Section 11.05) signed by an authorized officer of the Company (a) specifying the
portion of the mandatory sinking fund payment to be satisfied by payment of cash (except as otherwise specified pursuant to Section 2.03 for the Securities of such Series), and the portion to
be satisfied by delivery or credit of Securities of such Series, (b) stating that none of the Securities of such Series for which credit is sought has theretofore been so credited,
(c) stating that no defaults in the payment of interest or Events of Default with respect to such Series have occurred (which have not been waived or cured) and are continuing,
(d) stating whether or not the Company intends to exercise its right to make an optional sinking fund payment with respect to such Series and, if so, specifying the amount of such optional
sinking fund payment which the Company intends to pay on or before the next succeeding sinking fund payment date and (e) specifying such sinking fund payment date. Any Securities of such Series
to be credited and required to be delivered on the Trustee in order for the Company to be entitled to credit therefor as aforesaid which have not theretofore been delivered to the Trustee shall be
delivered for cancellation pursuant to Section 2.10 to the Trustee with such written statement. Such written statement shall be irrevocable and upon its receipt by the Trustee the Company shall
become unconditionally obligated to make all the cash payments or payments therein referred to, if any, on or before the next succeeding sinking fund payment date. Failure of the Company, on or before
any such forty-fifth day, to deliver such written statement and Securities specified in this paragraph, if any, shall not constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Company (i) that the mandatory sinking fund payment for such Series due on the next succeeding sinking fund payment date shall be paid entirely in cash without the
option to deliver or credit Securities of such Series in respect thereof and (ii) that the Company will make no optional sinking fund payment with respect to such Series as provided in this
Section. 

        If
the sinking fund payment or payments (mandatory or optional or both) to be made in cash on the next succeeding sinking fund payment date plus any unused balance of any preceding
sinking fund payments made in cash shall exceed $100,000 (or a lesser sum if the Company shall so request) with respect to the Securities of any particular Series, such cash shall be applied on the
next succeeding 

39

 

sinking
fund payment date to the redemption of Securities of such Series at the sinking fund redemption price together with accrued interest to the date fixed for redemption. If such amount shall be
$100,000 or less and the Company makes no such request then it shall be carried over until a sum in excess of $100,000 is available. The Trustee shall select, in the manner provided in
Section 12.02 and giving effect to any exclusions required pursuant to Section 12.04, for redemption on such sinking fund payment date a sufficient principal amount of Securities of such
Series to absorb said cash, as nearly as may be possible, and shall (if requested in writing by the Company) inform the Company of the serial numbers of the Securities of such Series (or portions
thereof) so selected. The Trustee, in the name and at the expense of the Company (or the Company, if it shall so notify the Trustee in writing), shall cause notice of redemption of the Securities of
such Series to be given in substantially the manner provided in Section 12.02 (and with the effect provided in Section 12.03) for the redemption of Securities of such Series at the
option of the Company. The amount of any sinking fund payments not so applied or allocated to the redemption of Securities of such Series shall be added to the next cash sinking fund payment for such
Series and, together with such payment, shall be applied in accordance with the provisions of this Section. Any and all sinking fund moneys held on the stated maturity date of the Securities of any
particular Series (or earlier, if such maturity is accelerated), which are not held for the payment or redemption of particular Securities of such Series shall be applied, together with other moneys,
if necessary, sufficient for the purpose, to the payment of the principal of, and interest on, the Securities of such Series at maturity. 

        Unless
otherwise specified pursuant to Section 2.03, not later than the sinking fund payment date, the Company shall have paid to the Trustee in cash or shall otherwise provide in
funds available on such date for the payment of all principal and interest accrued to the date fixed for redemption on Securities to be redeemed on such sinking fund payment date. 

        The
Trustee shall not redeem or cause to be redeemed any Securities of a Series with sinking fund moneys or mail or publish any notice of redemption of Securities for such Series by
operation of the sinking fund during the continuance of a default in payment of interest on such Securities or of any Event of Default except that, where the mailing or publication of notice of
redemption of any Securities shall theretofore have been made, the Trustee shall redeem or cause to be redeemed such Securities, provided that it shall have received from the Company a sum sufficient
for such redemption. Except as aforesaid, any moneys in the sinking fund for such Series at the time when any such default or Event of Default shall occur, and any moneys thereafter paid into the
sinking fund, shall, during the continuance of such default or Event of Default, be deemed to have been collected under Article 5 and held for the payment of all such Securities. In case such
Event of Default shall have been waived as provided in Section 5.09 or the default cured on or before the sixtieth day preceding the sinking fund payment date in any year, such moneys shall
thereafter be applied on the next succeeding sinking fund payment date in accordance with this Section to the redemption of such Securities. 

        SECTION
12.06.    Repayment at the Option of the Holders.    Securities of any Series which are repayable at the
option of the Holders thereof before their stated maturity shall be repaid in accordance with the terms of the Securities of such Series. 

        The
repayment of any principal amount of Securities pursuant to such option of the Holder to require repayment of Securities before their stated maturity, for purposes of
Section 10.01, shall not operate as a payment, redemption or satisfaction of the indebtedness represented by such Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Securities be cancelled. 

        SECTION
12.07.    Conversion Arrangement on Call for Redemption.    In connection with any redemption of Securities,
the Company may arrange for the purchase and conversion of any Securities called for redemption by an agreement with one or more investment bankers or other purchasers to purchase such Securities by
paying to the Trustee or the Paying Agent in trust for the Holders of 

40

 

Securities,
on or before 10:00 a.m. New York time on the redemption date, an amount not less than the redemption price, together with interest, if any, accrued to the redemption date of such
Securities, in immediately available funds. Notwithstanding anything to the contrary contained in this Article 12, the obligation of the Company to pay the redemption price of such Securities,
including all accrued interest, if any, shall be deemed to be satisfied and discharged to the extent such amount is so paid by such purchasers. If such an agreement is entered into, any Securities not
duly surrendered for conversion by the Holders thereof may, at the option of the Company, be deemed, to the fullest extent permitted by law, acquired by such purchasers from such Holders and
surrendered by such purchasers for conversion, all as of immediately prior to the close of business on the last day on which such Securities called for redemption may be converted in accordance with
this Indenture and the terms of such Securities, subject to payment to the Trustee or Paying Agent of the above-described amount. The Trustee or the Paying Agent shall hold and pay to the Holders
whose Securities are selected for redemption any such amount paid to it in the same manner as it would pay moneys deposited with it by the Company for the redemption of Securities. Without the
Trustee's and the Paying Agent's prior written consent, no arrangement between the Company and such purchasers for the purchase and conversion of any Securities shall increase or otherwise affect any
of the powers, duties, responsibilities or obligations of the Trustee and the Paying Agent as set forth in this Indenture, and the Company agrees to indemnify the Trustee and the Paying Agent from,
and hold them harmless against, any loss, liability or expense arising out of or in connection with any such arrangement for the purchase and conversion of any Securities between the Company and such
purchasers, including the costs and expenses incurred by the Trustee and the Paying Agent (including the fees and expenses of their agents and counsel) in the defense of any claim or liability arising
out of or in connection with the exercise or performance of any of their powers, duties, responsibilities or obligations under this Indenture. 

ARTICLE 13  

 CONVERSION OF SECURITIES  

        SECTION
13.01.    Applicability of Article.    Securities of any Series which are convertible into Common Shares at
the option of the Holder of such Securities shall be convertible in accordance with their terms and (unless otherwise specified as contemplated by Section 2.03 for the Securities of any Series)
in accordance with this Article. Each reference in this Article 13 to "a Security" or "the Securities" refers to the Securities of the particular Series that is convertible into Common Shares.
If more than one Series of Securities with conversion privileges are Outstanding at any time, the provisions of this Article 13 shall be applied separately to each such Series. 

41

   
        SECTION 13.02.    Right of Holders to Convert Securities into Common Shares.    Subject to and upon compliance with
the terms of the Securities and the provisions of Section 12.07 and this Article 13, at the option of the Holder thereof, any Security of any Series of any authorized denomination which
is convertible into Common Shares, or any portion of the principal amount thereof which is $1,000 or any integral multiple of $1,000, may, at any time during the period specified in the Securities of
such Series, or in case such Security or portion thereof shall have been called for redemption, then in respect of such Security or portion thereof until and including, but not after (unless the
Company shall default in payment due upon the redemption thereof) the close of business on the redemption date (except that in the case of repayment at the option of the Holder, if specified in the
terms of the relevant Security, such right shall terminate upon the Company's receipt of written notice of the exercise of such option), be converted into duly authorized, validly issued, fully paid
and nonassessable Common Shares, as specified in such Security, at the conversion price or conversion rate for each $1,000 principal amount of Securities (such initial conversion rate reflecting an
initial conversion price specified in such Security) in effect on the conversion date, or, in case an adjustment in the conversion price has taken place pursuant to the provisions of this
Article 13, then at the applicable conversion price as so adjusted, upon surrender of the Security or Securities, the principal amount of which is so to be converted, to the Company at any time
during usual business hours at the office or agency to be maintained by it in accordance with the provisions of Section 3.02, accompanied by a written notice of election to convert as provided
in Section 13.03 and, if the Holder requests that the Common Shares be registered in a name other than that of the Holder, by a written instrument or instruments of transfer in form
satisfactory to the Company and/or the Trustee, as applicable, duly executed by the Holder thereof or his attorney duly authorized in writing. All Securities surrendered for conversion shall, if
surrendered to the Company or any conversion agent, be delivered to the Trustee for cancellation and cancelled by it, or shall, if surrendered to the Trustee, be cancelled by it, as provided in
Section 2.10. 

        The
initial conversion price or conversion rate in respect of a Series of Securities shall be as specified in the Securities of such Series. The conversion price or conversion rate will
be subject to adjustment on the terms set forth in Section 13.05 or such other or different terms, if any, as may be specified by Section 2.03 for Securities of such Series. Provisions
of this Indenture that apply to conversion of all of a Security also apply to conversion of any portion of it. 

        SECTION
13.03.    Issuance of Common Shares on Conversions.    As promptly as practicable after the surrender, as
herein provided, of any Security or Securities for conversion into Common Shares, the Company shall deliver or cause to be delivered at its said office or agency to or upon the written order of the
Holder of the Security or Securities so surrendered a certificate or certificates representing the number of duly authorized, validly issued, fully paid and nonassessable Common Shares into which such
Security or Securities may be converted in accordance with the terms thereof and the provisions of this Article 13. Prior to delivery of such certificate or certificates, the Company shall
require written notice at its said office or agency from the Holder of the Security or Securities so surrendered stating that the Holder irrevocably elects to convert such Security or Securities, or,
if less than the entire principal amount thereof is to be converted, stating the portion thereof to be converted. Such notice shall also state the name or names (with address and social security or
other taxpayer identification number) in which said certificate or certificates are to be issued. Such conversion shall be deemed to have been made at the time that such Security or Securities shall
have been surrendered for conversion and such notice shall have been received by the Company or the Trustee, the rights of the Holder of such Security or Securities as a Holder shall cease at such
time, the Person or Persons entitled to receive the Common Shares upon conversion of such Security or Securities shall be treated for all purposes as having become either record holder or holders of
such Common Shares at such time and such conversion shall be at the conversion price in effect at such time. In the case of any Security of any Series which is converted in part only, upon such
conversion, the Company shall execute and, upon the Company's request and at the Company's expense, the Trustee or an authenticating agent shall 

42

 

authenticate
and deliver to the Holder thereof, as requested by such Holder, a new Security or Securities of such Series of authorized denominations in aggregate principal amount equal to the
unconverted portion of such Security. 

        If
the last day on which such Security may be converted is not a Business Day in a place where the conversion agent for that Security is located, such Security may be surrendered to that
conversion agent on the next succeeding day that is a Business Day. 

        The
Company shall not be required to deliver certificates for Common Shares upon conversion while its stock transfer books are closed for a meeting of shareholders or for the payment of
dividends or for any other purpose, but certificates for Common Shares shall be delivered as soon as the stock transfer books shall again be opened. 

        SECTION
13.04.    No Payment or Adjustment for Interest or Dividends.    Unless otherwise specified as contemplated by
Section 2.03 for Securities of such Series, Securities surrendered for conversion into Common Shares during the period from the close of business on any regular record date (or special record
date) next preceding any interest payment date to the opening of business on such interest payment date (except Securities called for redemption on a redemption date within such period) when
surrendered for conversion must be accompanied by payment (by certified or official bank check to the order of the Company payable in clearing house funds at the location where the Securities are
surrendered) of an amount equal to the interest thereon which the Holder is entitled to receive on such interest payment date. Payment of interest shall be made, on such interest payment date or such
other payment date (as set forth in Section 2.07), as the case may be, to the Holder of the Securities as
of such regular record date or special record date, as applicable. Except where Securities surrendered for conversion must be accompanied by payment as described above, no interest on converted
Securities will be payable by the Company on any interest payment date subsequent to the date of conversion. No other payment or adjustment for interest or dividends is to be made upon conversion.
Notwithstanding the foregoing, upon conversion of any Original Issue Discount Security, the fixed number of Common Shares into which such Security is convertible delivered by the Company to the Holder
thereof shall be applied, first, to the portion attributable to the accrued original issue discount relating to the period from the date of issuance to the date of conversion of such Security, and,
second, to the portion attributable to the balance of the principal amount of such Security. 

        SECTION
13.05.    Adjustment of Conversion Price.    Unless otherwise specified as contemplated by Section 2.03
for Securities of such Series, the conversion price for Securities convertible into Common Shares shall be adjusted from time to time as follows: 

        (a)   In
case the Company shall (x) pay a dividend or make a distribution on Common Shares in Common Shares, (y) subdivide the outstanding Common Shares into a
greater number of shares or (z) combine the outstanding Common Shares into a smaller number of shares, the conversion price for the Securities of such Series shall be adjusted so that the
Holder of any such Security thereafter surrendered for conversion shall be entitled to receive the number of Common Shares which he would have owned or have been entitled to receive after the
happening of any of the events described above had such Security been converted immediately prior to the record date in the case of a dividend or the effective date in the case of subdivision or
combination. An adjustment made pursuant to this subsection (a) shall become effective immediately after the record date in the case of a dividend, except as provided in subsection
(h) below, and shall become effective immediately after the effective date in the case of a subdivision or combination. 

        (b)   In
case the Company shall issue rights or warrants to all holders of Common Shares entitling them (for a period expiring within 45 days after the record date
mentioned below) to subscribe for or purchase Common Shares at a price per share less than the current market price per share of Common Shares (as defined for purposes of this subsection (b) in
subsection (e) below), at the record date for the determination of stockholders entitled to receive such rights 

43

 

or
warrants, the conversion price in effect immediately prior thereto shall be adjusted so that the same shall equal the price determined by multiplying the conversion price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the number of Common Shares outstanding on such record date plus the number of Common Shares which the aggregate offering price
of the total number of Common Shares so offered would purchase at such current market price, and the denominator of which shall be the number of Common Shares outstanding on such record date plus the
number of additional Common Shares receivable upon exercise of such rights or warrants. Such adjustment shall be made successively whenever any such rights or warrants are issued, and shall become
effective immediately, except as provided in subsection (h) below, after such record date. In determining whether any rights or warrants entitle the Holders of the Securities of such Series to
subscribe for or purchase Common Shares at less than such current market price, and in determining the aggregate offering price of such Common Shares, there shall be taken into account any
consideration received by the Company for such rights or warrants plus the exercise price thereof, the value of such consideration or exercise price, as the case may be, if other than cash, to be
determined by the Board of Directors. 

        (c)   In
case the Company shall distribute to all holders of Common Shares any shares of capital stock of the Company (other than Common Shares) or evidences of its
indebtedness or assets (excluding cash dividends or distributions paid from retained earnings of the Company) or rights or warrants to subscribe for or purchase any of its securities (excluding those
rights or warrants referred to in subsection (b) above) (any of the foregoing being herein in this subsection (c) called the "Special Securities"), then, in each such case, unless the
Company elects to reserve such Special Securities for distribution to the Holders of Securities of such Series upon the conversion so that any such Holder converting such Securities will receive upon
such conversion, in addition to the Common Shares to which such Holder is entitled, the amount and kind of Special Securities which such Holder would have received if such Holder had, immediately
prior to the record date for the distribution of the Special Securities, converted Securities into Common Shares, the conversion price shall be adjusted so that the same shall equal the price
determined by multiplying the conversion price in effect immediately prior to such record date by a fraction the numerator of which shall be the current market price per share (as defined for purposes
of this subsection (c) in subsection (e) below) of Common Shares on the record date mentioned above less the then fair market value (as determined by the Board of Directors, whose
determination shall, if made in good faith, be conclusive) of the portion of the Special Securities so distributed applicable to one Common Share, and the denominator of which shall be the current
market price per Common Shares (as defined in subsection (e) below); provided, however, that in the event the then fair market value (as so determined) of the portion of the Special Securities
so distributed applicable to one Common Share is equal to or greater than the current market price per Common Share (as defined in subsection (e) below) on the record date mentioned above, in
lieu of the foregoing adjustment, adequate provision shall be made so that each Holder of Securities of such Series shall have the right to receive the amount and kind of Special Securities such
holder would have received had he converted such Securities immediately prior to the record date for the distribution of the Special Securities. Such adjustment shall become effective immediately,
except as provided in
subsection (h) below, after the record date for the determination of stockholders entitled to receive such distribution. 

        (d)   If,
pursuant to subsection (b) or (c) above, the conversion price shall have been adjusted because the Company has declared a dividend, or made a
distribution, on the outstanding Common Shares in the form of any right or warrant to purchase securities of the Company, or the Company has issued any such right or warrant, then, upon the expiration
of any such unexercised right or unexercised warrant, the conversion price shall forthwith be adjusted to equal the conversion price that would have applied had such right or warrant never been
declared, distributed or issued. 

44

 

        (e)   For
the purpose of any computation under subsection (b) above, the current market price per Common Share on any date shall be deemed to be the average of the
reported last sales prices for the thirty consecutive Trading Days (as defined below) commencing forty-five Trading Days before the date in question. For the purpose of any computation
under subsection (c) above, the current market price per Common Share on any date shall be deemed to be the average of the reported last sales prices for the ten consecutive Trading Days before
the date in question. The reported last sales price for each day (whether for purposes of subsection (b) or subsection (c)) shall be the reported last sales price, regular way, or, in case no
sale takes place on such day, the average of the reported closing bid and asked prices, regular way, in either case as reported on the New York Stock Exchange Composite Tape or, if the Common Shares
are not listed or admitted to trading on the New York Stock Exchange, on the principal national securities exchange on which the Common Shares are listed or admitted to trading or, if not listed or
admitted to trading on any national securities exchange, on the National Market of the National Association of Securities Dealers, Inc. Automated Quotations System ("NASDAQ") or, if the Common
Shares are not quoted on such National Market, the average of the closing bid and asked prices on such day in the over-the-counter market as reported by NASDAQ or, if bid and
asked prices for the Common Shares on each such day shall not have been reported through NASDAQ, the average of the bid and asked prices for such day as furnished by any New York Stock Exchange member
firm regularly making a market in the Common Shares selected for such purpose by the Board of Directors or a committee thereof or, if no such quotations are available, the fair market value of the
Common Shares as determined by a New York Stock Exchange member firm regularly making a market in the Common Shares selected for such purpose by the Board of Directors or a committee thereof. As used
herein, the term "Trading Day" with respect to the Common Shares means (x) if the Common Shares are listed or admitted for trading on the New York Stock Exchange or another national securities
exchange, a day on which the New York Stock Exchange or such other national securities exchange is open for business or (y) if the Common Shares are quoted on the National Market of the NASDAQ,
a day on which trades may be made on such National Market or (z) otherwise, any day other than a Saturday or Sunday or a day on which banking institutions in the State of New York are
authorized or obligated by law or executive order to close. 

        (f)    No
adjustment in the conversion price shall be required unless such adjustment would require an increase or decrease of at least 1% in such price; provided, however,
that any adjustments which by reason of this subsection (f) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment; and, provided, further, that adjustment shall be required and made in accordance with the provisions of this Article 13 (other than this subsection (f))
not later than such time as may be required in order to preserve the tax free nature of a distribution to the holders of Common Shares. All calculations under this Article 13 shall be made to
the nearest cent or to the nearest 1/100 of a share, as the case may be, with one-half cent and 1/200 of a share, respectively, being rounded upward. Anything
in this Section 13.05 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the conversion price, in addition to those required by this Section 13.05,
as it in its discretion shall determine to be advisable in order that any stock dividend, subdivision of shares, distribution of rights or warrants to purchase stock or securities, or distribution of
other assets (other than cash dividends) hereafter made by the Company to its shareholders shall not be taxable. 

        (g)   Whenever
the conversion price is adjusted, as herein provided, the Company shall promptly file with the Trustee, at the Corporate Trust Office of the Trustee, and with
the office or agency maintained by the Company for the conversion of Securities of such Series pursuant to Section 3.02, an Officers' Certificate, setting forth the conversion price after such
adjustment and setting forth a brief statement of the facts requiring such adjustment, which certificate shall be 

45

 

conclusive
evidence of the correctness of such adjustment. Neither the Trustee nor any conversion agent shall be under any duty or responsibility with respect to any such certificate or any facts or
computations set forth therein, except to exhibit said certificate from time to time to any Holder of a Security of such Series desiring to inspect the same. The Company shall promptly cause a notice
setting forth the adjusted conversion price to be mailed to the Holders of Securities of such Series, as their names and addresses appear upon the Security register of the Company. 

        (h)   In
any case in which this Section 13.05 provides that an adjustment shall become effective immediately after a record date for an event, the Company may defer
until the occurrence of such event (y) issuing to the Holder of any Security of such Series converted after such record date and before the occurrence of such event the additional Common Shares
issuable upon such conversion by reason of the adjustment required by such event over and above the Common Shares issuable upon such conversion before giving effect to such adjustment and
(z) paying to such holder any amount in cash in lieu of any fractional Common Shares pursuant to Section 13.06 hereof. 

        SECTION
13.06.    No Fractional Shares to Be Issued.    No fractional Common Shares shall be issued upon any
conversion of Securities. If more than one Security of any Series shall be surrendered for conversion at one time by the same Holder, the number of full shares which shall be issuable upon conversion
thereof shall be computed on the basis of the aggregate principal amount of the Securities of such Series (or specified portions thereof to the extent permitted hereby) so surrendered. Instead of a
fraction of a share of Common Stock which would otherwise be issuable upon conversion of any Security or Securities (or specified portions thereof), the Company shall pay a cash adjustment (computed
to the nearest cent, with one-half cent being rounded upward) in respect of such fraction of a share in an amount equal to the same fractional interest of the reported last sales price (as
defined in Section 13.05(e)) of the Common Shares on the Trading Day (as defined in Section 13.05(e)) next preceding the day of conversion. 

        SECTION
13.07.    Preservation of Conversion Rights upon Consolidation, Merger, Sale or Conveyance.    In case of any
consolidation of the Company with, or merger of the Company into, any other corporation (other than a consolidation or merger in which the Company is the continuing corporation), or in the case of any
sale or transfer of all or substantially all of the assets of the Company, the corporation formed by such consolidation or the corporation into which the Company shall have been merged or the
corporation which shall have acquired such assets, as the case may be, shall execute and deliver to the Trustee, a supplemental indenture, in accordance with the provisions of Articles 8 and 9 as they
relate to supplemental indentures, providing that the Holder of each Security then Outstanding of a Series which was convertible into Common Shares shall have the right thereafter to convert such
Security into the kind and amount of shares of stock and other securities and property, including cash, receivable upon such consolidation, merger, sale or transfer by a holder of the number of Common
Shares of the Company into which such Securities might have been converted immediately prior to such consolidation, merger, sale or transfer. Such supplemental indenture shall conform to the
provisions of the Trust Indenture Act of 1939 as then in effect and shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this
Article 13. Neither the Trustee nor any conversion agent shall have any liability or responsibility for determining the correctness of any provision contained in any such supplemental indenture
relating either to the kind or amount of shares of stock or other securities or property receivable by Holders of the Securities upon the conversion of their Securities after any such consolidation,
merger, sale or transfer, or to any adjustment to be made with respect thereto and, subject to the provisions of Section 313 of the Trust Indenture Act of 1939, may accept as conclusive
evidence of the correctness of any such provisions, and shall be protected in relying upon, an Officers' Certificate with respect thereto and an Opinion of Counsel with respect to legal matters
related thereto. If in the case of any such consolidation, merger, sale or transfer, the stock or other securities and property receivable by a Holder of the Securities includes stock or other
securities and property of a corporation other than the 

46

 

successor
or purchasing corporation, then such supplemental indenture shall also be executed by such other corporation and shall contain such additional provisions to protect the interests of the
Holders of the Securities as the Board of Directors shall reasonably consider necessary. The above provisions of this Section 13.07 shall similarly apply to successive consolidations, mergers,
sales or transfers. 

        SECTION
13.08.    Notice to Holders of the Securities of a Series Prior to Taking Certain Types of Action.    With
respect to the Securities of any Series, in case: 

        (a)   the
Company shall authorize the issuance to all holders of Common Shares of rights or warrants to subscribe for or purchase shares of its capital stock or of any other
right; 

        (b)   the
Company shall authorize the distribution to all holders of Common Shares of evidences of indebtedness or assets (except for cash dividends or distributions paid from
retained earnings of the Company); 

        (c)   of
any subdivision or combination of Common Shares or of any consolidation or merger to which the Company is a party and for which approval by the shareholders of the
Company is required, or of the sale or transfer of all or substantially all of the assets of the Company; or 

        (d)   of
the voluntary or involuntary dissolution, liquidation or winding up of the Company; then the Company shall cause to be filed with the Trustee and at the office or
agency maintained for the purpose of conversion of Securities of such Series pursuant to Section 3.02, and shall cause to be mailed to the Holders of Securities of such Series, at their last
addresses as they shall appear on the Security register of the Company, at least ten days prior to the applicable record date hereinafter specified, a notice stating (i) the date as of which
the holders of Common Shares to be entitled to receive any such rights, warrants or distribution are to be determined, or (ii) the date on which any such subdivision, combination,
consolidation, merger, sale, transfer, dissolution, liquidation, winding up or other action is expected to become effective, and the date as of which it is expected that holders of record of Common
Shares shall be entitled to exchange their Common Shares for securities or other property, if any, deliverable upon such subdivision, combination, consolidation, merger, sale, transfer, dissolution,
liquidation, winding up or other action. The failure to give the notice required by this Section 13.08 or any defect therein shall not affect the legality or validity of any distribution,
right, warrant, subdivision, combination, consolidation, merger, sale, transfer, dissolution, liquidation, winding up or other action, or the vote upon any of the foregoing. 

        SECTION
13.09.    Covenant to Reserve Shares for Issuance on Conversion of Securities.    The Company covenants that
at all times it will reserve and keep available out of each class of its authorized Common Shares, free from preemptive rights, solely for the purpose of issue upon conversion of Securities of any
Series as herein provided, such number of Common Shares as shall then be issuable upon the conversion of all Outstanding Securities of such Series. The Company covenants that all Common Shares which
shall be so issuable shall, when issued or delivered, be duly and validly issued Common Shares into which Securities of such Series are convertible, and shall be fully paid and nonassessable, free of
all liens and charges and not subject to preemptive rights and that, upon conversion, the appropriate capital stock accounts of the Company will be duly credited. 

        SECTION
13.10.    Compliance with Governmental Requirements.    The Company covenants that if any Common Shares
required to be reserved for purposes of conversion of Securities hereunder require registration or listing with or approval of any governmental authority under any Federal or State law, pursuant to
the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or any national or regional securities exchange on which the Common Shares are listed at the time of
delivery of any Common Shares, before such shares may be issued upon conversion, the Company will use its best efforts to cause such shares to be duly registered, listed or approved, as the case may
be. 

47

 

        SECTION
13.11.    Payment of Taxes upon Certificates for Shares Issued upon Conversion.    The issuance of
certificates for Common Shares upon the conversion of Securities shall be made without charge to the converting Holders for any tax (including, without limitation, all documentary and stamp taxes) in
respect of the issuance and delivery of such certificates, and such certificates shall be issued in the respective names of, or in such names as may be directed by, the holders of the Securities
converted; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any such certificate in a
name other than that of the Holder of the Security converted, and the Company shall not be required to issue or deliver such certificate unless or until the Person or Persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 

        SECTION
13.12.    Trustee's Duties with Respect to Conversion Provisions.    The Trustee and any conversion agent
shall have no duty, responsibility or liability to any Holder to determine whether any facts exist which may require any adjustment of the conversion rate, or with respect to the nature or extent of
any such adjustment when made, or with respect to the method employed, or herein or in any supplemental indenture (or whether such supplemental indenture need be entered into) provided to be employed,
in making the same. Neither the Trustee nor any conversion agent shall be accountable with respect to the registration under securities laws, listing, validity or value (or the kind or amount) of any
Common Shares, or of any other securities or property, which may at any time be issued or delivered upon the conversion of any Security, and neither the Trustee nor any conversion agent makes any
representation with respect thereto. Neither the Trustee nor any conversion agent shall be responsible for any failure of the Company to make any cash payment or to issue, transfer or deliver any
shares of stock or stock certificates or other securities or property upon the surrender of any Security for the purpose of conversion; and the Trustee and any conversion agent, subject to the
provisions of Section 313 of the TIA, shall not be responsible for any failure of the Company to comply with any of the covenants of the Company contained in this Article 13. 

        SECTION
13.13.    Conversion of Securities into Preferred Shares or Other Securities.    Notwithstanding anything to
the contrary in this Article 13, the Company may issue Securities that are convertible into Preferred Shares or other securities of the Company, including Preferred Shares convertible into
Common Shares, in which case all terms and conditions relating to the conversion of Securities into Preferred Shares or other securities, including any terms similar to those provided in Sections
13.01 through 13.12, shall be as provided in or pursuant to an appropriate resolution of the Board of Directors or in any indenture supplemental hereto or as otherwise contemplated by
Section 2.03. 

        *
* * * * 

48

 

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

	 	 	WELLPOINT HEALTH NETWORKS INC.
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	

                        , as Trustee
	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

49

QuickLinks

Exhibit 4.01

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]