Document:

Exhibit 4.2

 

 

COBALT INTERNATIONAL ENERGY, INC.

 

as the Company

 

and

 

as Trustee

 

 

Subordinated Indenture

 

Dated as of              ,  20

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  ARTICLE 1

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  
	
   

  	
   

  
	
  Section 1.01. Definitions

  	
  1

  
	
  Section 1.02. Other Definitions

  	
  8

  
	
  Section 1.03. Incorporation by Reference of Trust Indenture Act

  	
  8

  
	
  Section 1.04. Rules of Construction

  	
  9

  
	
   

  	
   

  
	
  ARTICLE 2

  
	
  THE SECURITIES

  
	
   

  	
   

  
	
  Section 2.01. Form and Dating

  	
  9

  
	
  Section 2.02. Execution And Authentication

  	
  10

  
	
  Section 2.03. Amount Unlimited; Issuable in Series

  	
  12

  
	
  Section 2.04. Denomination and Date of Securities; Payments of Interest

  	
  15

  
	
  Section 2.05. Registrar and Paying Agent; Agents Generally

  	
  15

  
	
  Section 2.06. Paying Agent to Hold Money in Trust

  	
  16

  
	
  Section 2.07. Transfer and Exchange

  	
  17

  
	
  Section 2.08. Replacement Securities

  	
  20

  
	
  Section 2.09. Outstanding Securities

  	
  21

  
	
  Section 2.10. Temporary Securities

  	
  22

  
	
  Section 2.11. Cancellation

  	
  22

  
	
  Section 2.12. CUSIP Numbers

  	
  23

  
	
  Section 2.13. Defaulted Interest

  	
  23

  
	
  Section 2.14. Series May Include Tranches

  	
  23

  
	
   

  	
   

  
	
  ARTICLE 3

  
	
  REDEMPTION

  
	
   

  	
   

  
	
  Section 3.01. Applicability of Article

  	
  24

  
	
  Section 3.02. Notice of Redemption; Partial Redemptions

  	
  24

  
	
  Section 3.03. Payment Of Securities Called For Redemption

  	
  26

  
	
  Section 3.04. Exclusion of Certain Securities from Eligibility for Selection for
  Redemption

  	
  27

  
	
  Section 3.05. Mandatory and Optional Sinking Funds

  	
  27

  
	
   

  	
   

  
	
  ARTICLE 4

  
	
  COVENANTS

  
	
   

  	
   

  
	
  Section 4.01. Payment of Securities

  	
  30

  
	
  Section 4.02. Maintenance of Office or Agency

  	
  31

  

 

i

 

	
  Section 4.03. Securityholders’ Lists

  	
  32

  
	
  Section 4.04. Certificate to Trustee

  	
  32

  
	
  Section 4.05. Reports by the Company

  	
  32

  
	
  Section 4.06. Additional Amounts

  	
  32

  
	
   

  	
   

  
	
  ARTICLE 5

  
	
  SUCCESSOR CORPORATION

  
	
   

  	
   

  
	
  Section 5.01. When Company May Merge, Etc

  	
  33

  
	
  Section 5.02. Successor Substituted

  	
  33

  
	
   

  	
   

  
	
  ARTICLE 6

  
	
  DEFAULT AND REMEDIES

  
	
   

  	
   

  
	
  Section 6.01. Events of Default

  	
  34

  
	
  Section 6.02. Acceleration

  	
  35

  
	
  Section 6.03. Other Remedies

  	
  36

  
	
  Section 6.04. Waiver of Past Defaults

  	
  36

  
	
  Section 6.05. Control by Majority

  	
  37

  
	
  Section 6.06. Limitation on Suits

  	
  37

  
	
  Section 6.07. Rights of Holders to Receive Payment

  	
  38

  
	
  Section 6.08. Collection Suit by Trustee

  	
  38

  
	
  Section 6.09. Trustee May File Proofs of Claim

  	
  38

  
	
  Section 6.10. Application of Proceeds

  	
  38

  
	
  Section 6.11. Restoration of Rights and Remedies

  	
  39

  
	
  Section 6.12. Undertaking for Costs

  	
  40

  
	
  Section 6.13. Rights and Remedies Cumulative

  	
  40

  
	
  Section 6.14. Delay or Omission not Waiver

  	
  40

  
	
   

  	
   

  
	
  ARTICLE 7

  
	
  TRUSTEE

  
	
   

  	
   

  
	
  Section 7.01. General

  	
  40

  
	
  Section 7.02. Certain Rights of Trustee

  	
  41

  
	
  Section 7.03. Individual Rights of Trustee

  	
  42

  
	
  Section 7.04. Trustee’s Disclaimer

  	
  43

  
	
  Section 7.05. Notice of Default

  	
  43

  
	
  Section 7.06. Reports by Trustee to Holders

  	
  44

  
	
  Section 7.07. Compensation and Indemnity

  	
  44

  
	
  Section 7.08. Replacement of Trustee

  	
  45

  
	
  Section 7.09. Acceptance of Appointment by Successor

  	
  46

  
	
  Section 7.10. Successor Trustee By Merger, Etc

  	
  47

  
	
  Section 7.11. Eligibility

  	
  47

  
	
  Section 7.12. Money Held in Trust

  	
  47

  

 

ii

 

	
  ARTICLE 8

  
	
  SATISFACTION AND
  DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

  
	
   

  	
   

  
	
  Section 8.01. Satisfaction and Discharge of Indenture

  	
  47

  
	
  Section 8.02. Application by Trustee of Funds Deposited for Payment of Securities

  	
  48

  
	
  Section 8.03. Repayment of Moneys Held by Paying Agent

  	
  49

  
	
  Section 8.04. Return of Moneys Held by Trustee and Paying Agent Unclaimed for Two
  Years

  	
  49

  
	
  Section 8.05. Defeasance and Discharge of Indenture

  	
  49

  
	
  Section 8.06. Defeasance of Certain Obligations

  	
  51

  
	
  Section 8.07. Reinstatement

  	
  52

  
	
  Section 8.08. Indemnity

  	
  53

  
	
  Section 8.09. Excess Funds

  	
  53

  
	
  Section 8.10. Qualifying Trustee

  	
  53

  
	
   

  	
   

  
	
  ARTICLE 9

  
	
  AMENDMENTS, SUPPLEMENTS
  AND WAIVERS

  
	
   

  	
   

  
	
  Section 9.01. Without Consent of Holders

  	
  53

  
	
  Section 9.02. With Consent of Holders

  	
  54

  
	
  Section 9.03. Revocation and Effect of Consent

  	
  55

  
	
  Section 9.04. Notation on or Exchange of Securities

  	
  56

  
	
  Section 9.05. Trustee to Sign Amendments, Etc

  	
  56

  
	
  Section 9.06. Conformity with Trust Indenture Act

  	
  56

  
	
   

  	
   

  
	
  ARTICLE 10

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  Section 10.01. Trust Indenture Act of 1939

  	
  56

  
	
  Section 10.02. Notices

  	
  57

  
	
  Section 10.03. Certificate and Opinion as to Conditions Precedent

  	
  58

  
	
  Section 10.04. Statements Required in Certificate or Opinion

  	
  58

  
	
  Section 10.05. Evidence of Ownership

  	
  58

  
	
  Section 10.06. Rules by Trustee, Paying Agent or Registrar

  	
  59

  
	
  Section 10.07. Payment Date Other Than a Business Day

  	
  59

  
	
  Section 10.08. Governing Law

  	
  60

  
	
  Section 10.09. No Adverse Interpretation of Other Agreements

  	
  60

  
	
  Section 10.10. Successors

  	
  60

  
	
  Section 10.11. Duplicate Originals

  	
  60

  
	
  Section 10.12. Separability

  	
  60

  
	
  Section 10.13. Table of Contents, Headings, Etc

  	
  60

  
	
  Section 10.14. Incorporators, Stockholders, Officers and Directors of Company
  Exempt from Individual Liability

  	
  60

  

 

iii

 

	
  Section 10.15. Judgment Currency

  	
  61

  
	
   

  	
   

  
	
  ARTICLE 11

  
	
  SUBORDINATION OF
  SECURITIES

  
	
   

  	
   

  
	
  Section 11.01. Agreement to Subordinate

  	
  61

  
	
  Section 11.02. Payments to Securityholders

  	
  61

  
	
  Section 11.03. Subrogation of Securities

  	
  63

  
	
  Section 11.04. Authorization by Securityholders

  	
  64

  
	
  Section 11.05. Notice to Trustee

  	
  65

  
	
  Section 11.06. Trustee’s Relation to Senior Indebtedness

  	
  66

  
	
  Section 11.07. No Impairment of Subordination

  	
  66

  

 

SIGNATURES

 

iv

 

SUBORDINATED INDENTURE, dated as of
            
    , 200    , between Cobalt
International Energy, Inc., a Delaware corporation, as the Company, and                 ,
as Trustee.

 

RECITALS OF THE COMPANY

 

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

 

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

 

NOW, THEREFORE:

 

In consideration of the premises and the purchases
of the Securities by the holders thereof, the Company and the Trustee mutually
covenant and agree for the equal and proportionate benefit of the respective
holders from time to time of the Securities or of any and all series thereof
and of the coupons, if any, appertaining thereto as follows:

 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01. 
Definitions.

 

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

 

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

 

“Authorized Newspaper”
means a newspaper (which, in the case of The City of New York, will, if
practicable, be The Wall Street Journal (Eastern 

 

 

Edition) and in the case of London, will, if
practicable, be the Financial Times (London Edition) and published in an
official language of the country of publication customarily published at least
once a day for at least five days in each calendar week and of general
circulation in The City of New York or London, as applicable.  If it shall be impractical in the opinion of
the Trustee to make any publication of any notice required hereby in an Authorized
Newspaper, any publication or other notice in lieu thereof which is made or
given with the approval of the Trustee shall constitute a sufficient
publication of such notice.

 

“Bank Credit Agreement”
means each of (i) the Term Loan Credit Agreement, as such Agreement has
been and may be amended, restated, supplemented or otherwise modified from time
to time, and (ii) the Revolving Credit Agreement, as such Agreement has
been and may be amended, restated, supplemented or otherwise modified from time
to time, and includes any agreement extending the maturity of, or restructuring
(including, but not limited to, the inclusion of additional borrowers
thereunder that are Subsidiaries of the Company and whose obligations are
guaranteed by the Company thereunder) all or any portion of, the Debt under such
Agreements or any successor agreements and includes any agreement with one or
more banks or other lending institutions refinancing all or any portion of the
Debt under such Agreement or any successor agreements.

 

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

 

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

 

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

 

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

 

2

 

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

 

“Corporate Trust Office”
means the office of the Trustee at which the corporate trust business of the
Trustee shall, at any particular time, be administered, which office is, at the
date of this Indenture, located at [     ]
Attention:  [     ].

 

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

 

“Debt” means,
with respect to any Person at any date of determination (without duplication), (i) all
indebtedness of such Person for borrowed money, (ii) all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments,
(iii) all obligations of such Person in respect of letters of credit or
bankers’ acceptance or other similar instruments (or reimbursement obligations
with respect thereto), (iv) all obligations of such Person to pay the
deferred purchase price of property or services, except Trade Payables, (v) all
obligations of such Person as lessee under Capital Leases, (vi) all Debt
of others secured by a Lien on any asset of such Person, whether or not such
Debt is assumed by such Person; provided that, for purposes of determining the
amount of any Debt of the type described in this clause, if recourse with
respect to such Debt is limited to such asset, the amount of such Debt shall be
limited to the lesser of the fair market value of such asset or the amount of
such Debt, (vii) all Debt of others Guaranteed by such Person to the
extent such Debt is Guaranteed by such Person, (viii) all redeemable stock
valued at the greater of its voluntary or involuntary liquidation preference
plus accrued and unpaid dividends and (ix) to the extent not otherwise
included in this definition, all obligations of such Person under Currency
Agreements and Interest Rate Agreements.

 

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

 

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

 

3

 

such series shall mean the Depositary with respect
to the Registered Global Securities of that series.

 

“Designated Senior
Indebtedness” means (i) Debt under the Bank Credit Agreements
and (ii) Debt constituting Senior Indebtedness which, at the time of its
determination, (A) has an aggregate principal amount of at least $[        ] million and (B) is specifically
designated in the instrument evidencing such Senior Indebtedness as “Designated
Senior Indebtedness” by the Company.

 

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

 

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

 

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

 

“Holder” or “Securityholder” means the registered holder of any Security
with respect to Registered Securities and the bearer of any Unregistered
Security or any coupon appertaining thereto, as the case may be.

 

“Indenture”
means this Indenture as originally executed and delivered or as it may be
amended or supplemented from time to time by one or more indentures
supplemental to this Indenture entered into pursuant to the applicable
provisions of this Indenture and shall include the forms and terms of the 

 

4

 

Securities of each series established as
contemplated pursuant to Sections 2.01 and 2.03.

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

“Registered Security”
means any Security registered on the Security Register (as defined in Section 2.05).

 

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

 

“Revolving Credit Agreement”
means the Revolving Credit Agreement, dated May 31, 2007, among the
Company, Bank of America, N.A., as administrative agent, swing line lender and
L/C issuer, and the lenders party thereto.

 

“Securities”
means any of the securities, as defined in the first paragraph of the recitals
hereof, that are authenticated and delivered under this Indenture and, unless
the context indicates otherwise, shall include any coupon appertaining thereto.

 

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

 

“Senior Indebtedness”
means the principal of (and premium, if any) and interest on all Debt of the
Company whether created, incurred or assumed before, on or after the date of
this Indenture; provided that such Senior Indebtedness shall 

 

6

 

not include (i) Debt of the Company that, when
incurred and without respect to any election under Section 1111(b) of
Title 11, U.S. Code, was without recourse, (ii) any other Debt of the
Company which by the terms of the instrument creating or evidencing the same
are specifically designated as not being senior in right of payment to the
Securities, and in particular the Securities shall rank pari passu with all
other debt securities and guarantees issued to any trust, partnership or other
entity affiliated with the Company which is a financing vehicle of the Company
in connection with an issuance of preferred securities by such financing entity
and (iii) redeemable stock of the Company.

 

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

 

“Term Loan Agreement”
means the Term Loan Credit Agreement, dated May 31, 2007, among the
Company, Bank of America, N.A., as administrative agent, and the lenders party
thereto.

 

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

 

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

 

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

 

“Unregistered Security”
means any Security other than a Registered Security.

 

“U.S. Government
Obligations” means securities that are (i) direct obligations
of the United States of America for the payment of which its full faith and
credit is pledged or (ii) obligations of an agency or instrumentality of
the United States of America the payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States of America, and
shall also 

 

7

 

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

 

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

 

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

 

	
  Term

  	
   

  	
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authenticating Agent

  	
   

  	
  2.02

  	
   

  
	
  Cash Transaction

  	
   

  	
  7.03

  	
   

  
	
  Dollars

  	
   

  	
  4.02

  	
   

  
	
  Event of Default

  	
   

  	
  6.01

  	
   

  
	
  Judgment Currency

  	
   

  	
  10.15

  	
  (a)

  
	
  mandatory sinking fund
  payment

  	
   

  	
  3.05

  	
   

  
	
  optional sinking fund
  payment

  	
   

  	
  3.05

  	
   

  
	
  Paying Agent

  	
   

  	
  2.05

  	
   

  
	
  Payment Blockage Period

  	
   

  	
  11.02

  	
   

  
	
  record date

  	
   

  	
  2.04

  	
   

  
	
  Registrar

  	
   

  	
  2.05

  	
   

  
	
  Required Currency

  	
   

  	
  10.15

  	
  (a)

  
	
  Security Register

  	
   

  	
  2.05

  	
   

  
	
  self-liquidating paper

  	
   

  	
  7.03

  	
   

  
	
  sinking fund payment
  date

  	
   

  	
  3.05

  	
   

  
	
  tranche

  	
   

  	
  2.14

  	
   

  

 

Section 1.03. 
Incorporation by Reference of Trust Indenture Act.  Whenever
this Indenture refers to a provision of the Trust Indenture Act, the provision
is incorporated by reference in and made a part of this Indenture.  The 

 

8

 

following terms used in this Indenture that are
defined by the Trust Indenture Act have the following meanings:

 

“indenture securities”
means the Securities;

 

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

 

“indenture to be qualified”
means this Indenture;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE 2

THE SECURITIES

 

Section 2.01.  Form and
Dating.  The
Securities of each series shall be substantially in such form or forms (not
inconsistent with this Indenture) as shall be established by or pursuant to one
or more Board Resolutions or in one or more 

 

9

 

indentures supplemental hereto, in each case with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture and may have imprinted or otherwise
reproduced thereon such legend or legends or endorsements, not inconsistent
with the provisions of this Indenture, as may be required to comply with any
law, or with any rules of any securities exchange or usage, all as may be
determined by the officers executing such Securities as evidenced by their
execution of the Securities.  Unless
otherwise so established, Unregistered Securities shall have coupons attached.

 

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

 

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

 

A Security and the coupons appertaining thereto
shall not be valid until the Trustee or Authenticating Agent manually signs the
certificate of authentication on the Security or on the Security to which such
coupon appertains by an authorized officer. 
The signature shall be conclusive evidence that the Security or the
Security to which the coupon appertains has been authenticated under this
Indenture.

 

At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of
any series having attached thereto appropriate coupons, if any, executed by the
Company to the Trustee for authentication together with the applicable
documents referred to below in this Section, and the Trustee shall thereupon
authenticate and deliver such Securities to or upon the written order of the
Company.  In authenticating any
Securities of a series, the Trustee shall be entitled to receive prior to the
authentication of any Securities of such series, and (subject to Article 7)
shall be fully protected in relying upon, unless and until such documents have
been superseded or revoked:

 

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

 

10

 

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

 

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

 

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

 

Notwithstanding the provisions of Sections 2.01 and
2.02, if, in connection with a Periodic Offering, all Securities of a series
are not to be originally issued at one time, it shall not be necessary to
deliver the Board Resolution otherwise required pursuant to Section 2.01
or the written order, Officers’ Certificate and Opinion of Counsel otherwise
required pursuant to Section 2.02 at or prior to the authentication of
each Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to
be issued.

 

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

 

If the Company shall establish pursuant to Section 2.03
that the Securities of a series or a portion thereof are to be issued in the
form of one or more 

 

11

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12

 

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

 

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

 

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

 

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

 

(i)         if other than the
principal amount thereof, the portion of the principal amount of Securities of
the series which shall be payable upon declaration of acceleration of the
maturity thereof;

 

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

 

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

 

(l)         whether the Securities of
the series or any portion thereof will be issuable as Registered Securities
(and if so, whether such Securities will be issuable as Registered Global
Securities) or Unregistered Securities (with or without coupons) (and if so,
whether such Securities will be issued in temporary or permanent global form),
or any combination of the foregoing, any restrictions applicable to the offer,
sale or delivery of Unregistered Securities or the payment 

 

13

 

of interest thereon and,
if other than as provided herein, the terms upon which Unregistered Securities
of any series may be exchanged for Registered Securities of such series and
vice versa;

 

(m)       whether the Securities of
the series may be exchangeable for and/or convertible into the common stock of
the Company or any other security;

 

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

 

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

 

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

 

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

 

(r)         if the Securities of the
series are issuable in whole or in part as one or more Registered Global
Securities or Unregistered Securities in global form, the identity of the
Depositary or common Depositary for such Registered Global Security or
Securities or Unregistered Securities in global form;

 

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

 

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

 

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

 

14

 

time, consistent with the terms of this Indenture,
if so provided by or pursuant to such Board Resolution or in any such indenture
supplemental hereto and any forms and terms of Securities to be issued from
time to time may be completed and established from time to time prior to the
issuance thereof by procedures described in such Board Resolution or
supplemental indenture.

 

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

 

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

 

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

 

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

 

Section 2.05.  Registrar
and Paying Agent; Agents Generally.  The Company shall maintain an office or agency where Securities may be presented
for registration, registration of transfer or for exchange (the “Registrar”) and an office or agency where Securities may be
presented for payment (the “Paying Agent”),
which shall be in the Borough of Manhattan, The City of New York.

 

15

 

The Company shall cause the Registrar to keep a
register of the Registered Securities and of their registration, transfer and
exchange (the “Security Register”).  The Company may have one or more additional
Paying Agents or transfer agents with respect to any series.

 

The Company shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture.  The agreement shall implement the provisions
of this Indenture and the Trust Indenture Act that relate to such Agent.  The Company shall give prompt written notice
to the Trustee of the name and address of any Agent and any change in the name
or address of an Agent.  If the Company
fails to maintain a Registrar or Paying Agent, the Trustee shall act as
such.  The Company may remove any Agent
upon written notice to such Agent and the Trustee; provided
that no such removal shall become effective until (i) the acceptance of an
appointment by a successor Agent to such Agent as evidenced by an appropriate
agency agreement entered into by the Company and such successor Agent and
delivered to the Trustee or (ii) notification to the Trustee that the
Trustee shall serve as such Agent until the appointment of a successor Agent in
accordance with clause (i) of this proviso.  The Company or any affiliate of the Company
may act as Paying Agent or Registrar; provided that
neither the Company nor an affiliate of the Company shall act as Paying Agent
in connection with the defeasance of the Securities or the discharge of this
Indenture under Article 8.

 

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

 

Section 2.06.  Paying
Agent to Hold Money in Trust.  Not later than 10:00 a.m. New York City time on each due date or,
in the case of Unregistered Securities, 10:00 a.m. New York City time on
the Business Day prior to the due date, of any Principal or interest on any
Securities, the Company shall deposit with the Paying Agent money in
immediately available funds sufficient to pay such Principal or interest.  The Company shall require each Paying Agent
other than the Trustee to agree in writing that such Paying Agent shall hold in
trust for the benefit of the Holders of such Securities or the Trustee all
money held by the Paying Agent for the payment of Principal of and interest on
such Securities and shall promptly notify the Trustee of any default by the
Company in making any such payment.  The
Company at any time may require a Paying Agent to pay all money held by it to
the Trustee and account for any funds disbursed, and the Trustee may at any
time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. 
Upon doing so, the Paying Agent shall have no further liability for the
money so paid over to the

 

16

 

Trustee.  If
the Company or any affiliate of the Company acts as Paying Agent, it will, on
or before each due date of any Principal of or interest on any Securities,
segregate and hold in a separate trust fund for the benefit of the Holders
thereof a sum of money sufficient to pay such Principal or interest so becoming
due until such sum of money shall be paid to such Holders or otherwise disposed
of as provided in this Indenture, and will promptly notify the Trustee in
writing of its action or failure to act as required by this Section.

 

Section 2.07.  Transfer
and Exchange.  Unregistered Securities (except for any temporary global Unregistered
Securities) and coupons (except for coupons attached to any temporary global
Unregistered Securities) shall be transferable by delivery.

 

At the option of the Holder thereof, Registered
Securities of any series (other than a Registered Global Security, except as
set forth below) may be exchanged for a Registered Security or Registered
Securities of such series and tenor having authorized denominations and an
equal aggregate principal amount, upon surrender of such Registered Securities
to be exchanged at the agency of the Company that shall be maintained for such
purpose in accordance with Section 2.05 and upon payment, if the Company
shall so require, of the charges hereinafter provided.  If the Securities of any series are issued in
both registered and unregistered form, except as otherwise established pursuant
to Section 2.03, at the option of the Holder thereof, Unregistered
Securities of any series may be exchanged for Registered Securities of such
series and tenor having authorized denominations and an equal aggregate
principal amount, upon surrender of such Unregistered Securities to be
exchanged at the agency of the Company that shall be maintained for such
purpose in accordance with Section 4.02, with, in the case of Unregistered
Securities that have coupons attached, all unmatured coupons and all matured
coupons in default thereto appertaining, and upon payment, if the Company shall
so require, of the charges hereinafter provided.  At the option of the Holder thereof, if
Unregistered Securities of any series, maturity date, interest rate and
original issue date are issued in more than one authorized denomination, except
as otherwise established pursuant to Section 2.03, such Unregistered
Securities may be exchanged for Unregistered Securities of such series and
tenor having authorized denominations and an equal aggregate principal amount,
upon surrender of such Unregistered Securities to be exchanged at the agency of
the Company that shall be maintained for such purpose in accordance with Section 4.02,
with, in the case of Unregistered Securities that have coupons attached, all
unmatured coupons and all matured coupons in default thereto appertaining, and
upon payment, if the Company shall so require, of the charges hereinafter
provided.  Registered Securities of any
series may not be exchanged for Unregistered Securities of such series.  Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

 

17

 

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

 

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

 

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

 

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

 

If at any time the Depositary for any Registered
Global Securities of any series notifies the Company that it is unwilling or
unable to continue as Depositary for such Registered Global Securities or if at
any time the Depositary for such Registered Global Securities shall no longer
be eligible under applicable law, the Company shall appoint a successor
Depositary eligible under applicable law with respect to such Registered Global
Securities.  If a successor Depositary
eligible under applicable law for such Registered Global Securities is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such ineligibility, the Company will execute, and the
Trustee, upon receipt of the Company’s order for the authentication and
delivery of definitive Registered Securities of such series and tenor, will
authenticate and deliver Registered Securities of such series and tenor, in any
authorized denominations, in an aggregate principal amount equal to the
principal amount of such Registered Global Securities, in exchange for such
Registered Global Securities.

 

The Company may at any time and in its sole
discretion and subject to the procedures of the Depositary determine that any
Registered Global Securities of

 

18

 

any series shall no longer be maintained in global
form.  In such event the Company will
execute, and the Trustee, upon receipt of the Company’s order for the
authentication and delivery of definitive Registered Securities of such series
and tenor, will authenticate and deliver, Registered Securities of such series
and tenor in any authorized denominations, in an aggregate principal amount
equal to the principal amount of such Registered Global Securities, in exchange
for such Registered Global Securities.

 

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

 

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

 

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

 

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

 

Registered Securities issued in exchange for a
Registered Global Security pursuant to this Section 2.07 shall be
registered in such names and in such authorized denominations as the Depositary
for such Registered Global Security, pursuant to instructions from its direct
or indirect participants or otherwise, shall instruct the Trustee or an agent
of the Company or the Trustee.  The Trustee
or such agent shall deliver such Securities to or as directed by the Persons in
whose names such Securities are so registered.

 

All Securities issued upon any transfer or exchange
of Securities shall be valid obligations of the Company, evidencing the same
debt, and entitled to the

 

19

 

same benefits under this Indenture, as the
Securities surrendered upon such transfer or exchange.

 

Notwithstanding anything herein or in the forms or
terms of any Securities to the contrary, none of the Company, the Trustee or
any agent of the Company or the Trustee shall be required to exchange any
Unregistered Security for a Registered Security if such exchange would result
in adverse Federal income tax consequences to the Company (such as, for
example, the inability of the Company to deduct from its income, as computed
for Federal income tax purposes, the interest payable on the Unregistered
Securities) under then applicable United States Federal income tax laws.  The Trustee and any such agent shall be
entitled to rely on an Officers’ Certificate or an Opinion of Counsel in
determining such result.

 

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

 

Section 2.08. 
Replacement Securities.  If any mutilated Security or a Security with a mutilated coupon appertaining
to it is surrendered to the Trustee, the Company shall execute and the Trustee
shall authenticate and deliver, in exchange for such mutilated Security or in
exchange for the Security to which a mutilated coupon appertains, a new
Security of the same series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding, with coupons corresponding to the
coupons, if any, appertaining to such mutilated Security or to the Security to
which such mutilated coupon appertains.

 

If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss or
theft of any Security or coupon and (ii) such security or indemnity as may
be required by them to save each of them and any agent of any of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security
or coupon has been acquired by a bona fide purchaser, the Company shall execute
and the Trustee shall authenticate and deliver, in lieu of any such destroyed,
lost or stolen Security or in exchange for the Security to which a destroyed,
lost or stolen coupon appertains (with all appurtenant coupons not destroyed,
lost or stolen), a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding, with
coupons corresponding to the coupons, if any, appertaining to such destroyed,
lost or stolen Security or to the Security to which such destroyed, lost or
stolen coupon appertains.

 

In case any such mutilated, destroyed, lost or
stolen Security or coupon has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Security, pay such
Security or coupon (without

 

20

 

surrender thereof except in the case of a mutilated
Security or coupon) if the applicant for such payment shall furnish to the
Company and the Trustee such security or indemnity as may be required by them
to save each of them and any agent of any of them harmless, and in the case of
destruction, loss or theft, evidence satisfactory to the Company and the
Trustee and any agent of them of the destruction, loss or theft of such
Security and the ownership thereof; provided, however,
that the Principal of and any interest on Unregistered Securities shall, except
as otherwise provided in Section 4.02, be payable only at an office or
agency located outside the United States of America.

 

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

 

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

 

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

 

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

 

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

 

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

 

21

 

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

 

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

 

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

 

22

 

certificate of disposition to the Company.  The Company may not issue new Securities to
replace Securities it has paid in full or delivered to the Trustee for
cancellation.

 

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

 

Section 2.13.  Defaulted
Interest.  If the Company defaults in a payment of interest on the Registered
Securities, it shall pay, or shall deposit with the Paying Agent money in immediately
available funds sufficient to pay, the defaulted interest plus (to the extent
lawful) any interest payable on the defaulted interest (as may be specified in
the terms thereof, established pursuant to Section 2.03) to the Persons
who are Holders on a subsequent special record date, which shall mean the 15th
day next preceding the date fixed by the Company for the payment of defaulted
interest, whether or not such day is a Business Day.  At least 15 days before such special record
date, the Company shall mail to each Holder of such Registered Securities and
to the Trustee a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

 

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

 

23

 

ARTICLE 3

REDEMPTION

 

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

 

Section 3.02.  Notice of
Redemption; Partial Redemptions.  Notice of redemption to the Holders of Registered Securities of any
series to be redeemed as a whole or in part at the option of the Company shall
be given by mailing notice of such redemption by first class mail, postage
prepaid, at least 30 days and not more than 60 days prior to the date fixed for
redemption to such Holders of Registered Securities of such series at their
last addresses as they shall appear upon the registry books.  Notice of redemption to the Holders of
Unregistered Securities of any series to be redeemed as a whole or in part who
have filed their names and addresses with the Trustee pursuant to Section 313(c)(2) of
the Trust Indenture Act, shall be given by mailing notice of such redemption,
by first class mail, postage prepaid, at least 30 days and not more than 60
days prior to the date fixed for redemption, to such Holders at such addresses
as were so furnished to the Trustee (and, in the case of any such notice given
by the Company, the Trustee shall make such information available to the
Company for such purpose).  Notice of
redemption to all other Holders of Unregistered Securities of any series to be
redeemed as a whole or in part shall be published in an Authorized Newspaper in
The City of New York, or with respect to any Security the interest on which is
based on the offered quotations in the interbank Eurodollar market for dollar
deposits in an Authorized Newspaper in London, in each case, once in each of
three successive calendar weeks, the first publication to be not less than 30
days nor more than 60 days prior to the date fixed for redemption.  Any notice which is mailed or published in
the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the Holder receives the notice.  Failure to give notice by mail, or any defect
in the notice to the Holder of any Security of a series designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Security of such series.

 

The notice of redemption to each such Holder shall
specify the principal amount of each Security of such series held by such
Holder to be redeemed, the CUSIP numbers of the Securities to be redeemed, the
date fixed for redemption, the redemption price, or if not then ascertainable,
the manner of calculation thereof, the place or places of payment, that payment
will be made upon presentation and surrender of such Securities and, in the
case of Securities with coupons attached thereto, of all coupons appertaining
thereto maturing after the date fixed for redemption, that such redemption is
pursuant to the mandatory or

 

24

 

optional sinking fund, or both, if such be the
case, that interest accrued to the date fixed for redemption will be paid as
specified in such notice and that on and after said date interest thereon or on
the portions thereof to be redeemed will cease to accrue.  In case any Security of a series is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Security, a new Security or
Securities of such series and tenor in principal amount equal to the unredeemed
portion thereof will be issued.

 

The notice of redemption of Securities of any
series to be redeemed at the option of the Company shall be given by the
Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company.

 

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

 

If less than all the Securities of a series are to
be redeemed, the Trustee shall select, pro rata, by lot or in such manner as it
shall deem appropriate and fair, Securities of such series to be redeemed in
whole or in part.  Securities may be
redeemed in part in principal amounts equal to authorized denominations for
Securities of such series.  The Trustee
shall promptly notify the Company in

 

25

 

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

 

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

 

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

 

If any Security with coupons attached thereto is
surrendered for redemption and is not accompanied by all appurtenant coupons
maturing after the date fixed for redemption, the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee, if there be
furnished to each of them such security or indemnity as they may require to
save each of them harmless.

 

26

 

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

 

Section 3.04.  Exclusion
of Certain Securities from Eligibility for Selection for Redemption.  Securities
shall be excluded from eligibility for selection for redemption if they are
identified by registration and certificate number in a written statement signed
by an authorized officer of the Company and delivered to the Trustee at least
40 days prior to the last date on which notice of redemption may be given as
being owned of record 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 3.05.  Mandatory
and Optional Sinking Funds.  The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a “mandatory
sinking fund payment”, and any payment in excess of such minimum
amount provided for by the terms of the Securities of any series is herein
referred to as an “optional sinking fund
payment”.  The date on which a
sinking fund payment is to be made is herein referred to as the “sinking fund payment date”.

 

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

 

On or before the sixtieth day next preceding each
sinking fund payment date for any series, or such shorter period as shall be
acceptable to the Trustee, the Company will deliver to the Trustee an Officers’
Certificate (a) specifying the portion of the mandatory sinking fund
payment to be satisfied by payment of cash and the portion to be satisfied by
credit of specified Securities of such series and the basis for such credit, (b) stating
that none of the specified Securities of such

 

27

 

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

 

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

 

28

 

indirectly controlling or controlled by or under
direct or indirect common control with the Company.  The Trustee, in the name and at the expense
of the Company (or the Company, if it shall so request the Trustee in writing)
shall cause notice of redemption of the Securities of such series to be given
in substantially the manner provided in Section 3.02 (and with the effect
provided in Section 3.03) for the redemption of Securities of such series
in part at the option of the Company. 
The amount of any sinking fund payments not so applied or allocated to
the redemption of Securities of such series shall be added to the next cash
sinking fund payment for such series and, together with such payment, shall be
applied in accordance with the provisions of this Section.  Any and all sinking fund moneys held on the
stated maturity date of the Securities of any particular series (or earlier, if
such maturity is accelerated), which are not held for the payment or redemption
of particular Securities of such series shall be applied, together with other
moneys, if necessary, sufficient for the purpose, to the payment of the
Principal of, and interest on, the Securities of such series at maturity.

 

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

 

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

 

29

 

ARTICLE 4

COVENANTS

 

Section 4.01.  Payment of
Securities.  The Company shall pay the Principal of and interest on the Securities on
the dates and in the manner provided in the Securities and this Indenture.  The interest on Securities with coupons
attached (together with any additional amounts payable pursuant to the terms of
such Securities) shall be payable only upon presentation and surrender of the
several coupons for such interest installments as are evidenced thereby as they
severally mature.  The interest on any
temporary Unregistered Securities (together with any additional amounts payable
pursuant to the terms of such Securities) shall be paid, as to the installments
of interest evidenced by coupons attached thereto, if any, only upon
presentation and surrender thereof, and, as to the other installments of
interest, if any, only upon presentation of such Unregistered Securities for
notation thereon of the payment of such interest.  The interest on Registered Securities
(together with any additional amounts payable pursuant to the terms of such
Securities) shall be payable only to the Holders thereof (subject to Section 2.04)
and at the option of the Company may be paid by mailing checks for such
interest payable to or upon the written order of such Holders at their last
addresses as they appear on the Security Register of the Company.

 

Notwithstanding any provisions of this Indenture
and the Securities of any series to the contrary, if the Company and a Holder
of any Registered Security so agree, payments of interest on, and any portion
of the Principal of, such Holder’s Registered Security (other than interest
payable at maturity or on any redemption or repayment date or the final payment
of Principal on such Security) shall be made by the Paying Agent, upon receipt
from the Company of immediately available funds by 11:00 A.M., New York
City time (or such other time as may be agreed to between the Company and the
Paying Agent), directly to the Holder of such Security (by Federal funds wire
transfer or otherwise) if the Holder has delivered written instructions to the
Trustee 15 days prior to such payment date requesting that such payment will be
so made and designating the bank account to which such payments shall be so
made and in the case of payments of Principal, surrenders the same to the
Trustee in exchange for a Security or Securities aggregating the same principal
amount as the unredeemed principal amount of the Securities surrendered.  The Trustee shall be entitled to rely on the
last instruction delivered by the Holder pursuant to this Section 4.01
unless a new instruction is delivered 15 days prior to a payment date.  The Company will indemnify and hold each of
the Trustee and any Paying Agent harmless against any loss, liability or
expense (including attorneys’ fees) resulting from any act or omission to act
on the part of the Company or any such Holder in connection with any such
agreement or from making any payment in accordance with any such agreement.

 

30

 

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

 

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

 

The Company will maintain one or more agencies in a
city or cities located outside the United States of America (including any city
in which such an agency is required to be maintained under the rules of
any stock exchange on which the Securities of any series are listed) where the
Unregistered Securities, if any, of each series and coupons, if any,
appertaining thereto may be presented for payment.  No payment on any Unregistered Security or
coupon will be made upon presentation of such Unregistered Security or coupon
at an agency of the Company within the United States of America nor will any
payment be made by transfer to an account in, or by mail to an address in, the
United States of America unless, pursuant to applicable United States of
America laws and regulations then in effect, such payment can be made without
adverse tax consequences to the Company. 
Notwithstanding the foregoing, if full payment in United States Dollars
(“Dollars”) at each agency maintained by
the Company outside the United States of America for payment on such
Unregistered Securities or coupons appertaining thereto is illegal or
effectively precluded by exchange controls or other similar restrictions,
payments in Dollars of Unregistered Securities of any series and coupons
appertaining thereto which are payable in Dollars may be made at an agency of
the Company maintained in the United States of America.

 

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

 

31

 

Section 4.03. 
Securityholders’ Lists.  The Company will furnish or cause to be furnished to the Trustee a list
in such form as the Trustee may reasonably require of the names and addresses
of the holders of the Securities pursuant to Section 312 of the Trust
Indenture Act of 1939 (a) semi-annually not more than 15 days after each
record date for the payment of semi-annual interest on the Securities, as
hereinabove specified, as of such record date, and (b) at such other times
as the Trustee may request in writing, within thirty days after receipt by the
Company of any such request as of a date not more than 15 days prior to the
time such information is furnished.

 

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

 

Section 4.05.  Reports by
the Company.  The Company covenants to file with the Trustee, within 15 days after the
Company files the same with the Commission, copies of the annual reports and of
the information, documents, and other reports which the Company may be required
to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act.

 

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

 

32

 

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.

 

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

 

ARTICLE 5

SUCCESSOR CORPORATION

 

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

 

Section 5.02.  Successor
Substituted.  Upon any consolidation or merger, or any sale, conveyance, transfer,
lease or other disposition of all or substantially all of the property and
assets of the Company in accordance with Section 5.01 of this Indenture,
the successor Person formed by such consolidation or into which the Company is
merged or to which such sale, conveyance, transfer, lease or other

 

33

 

disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein and thereafter the predecessor Person, except in the case
of a lease, shall be relieved of all obligations and covenants under this
Indenture and the Securities.

 

ARTICLE 6

DEFAULT AND REMEDIES

 

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

 

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

 

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

 

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

 

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

 

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

 

34

 

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

 

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

 

Section 6.02. 
Acceleration.  (a) If an Event of Default other than as described in clauses (d) or
(e) of Section 6.01 with respect to the Securities of any series then
outstanding occurs and is continuing, then, and in each and every such case,
except for any series of Securities the principal of which shall have already
become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of the Securities of any such series then
outstanding hereunder (all such series voting together as a single class) by
notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Securities of
any such series are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of such series established
pursuant to Section 2.03) of all Securities of such series, and the
interest accrued thereon, if any, to be due and payable immediately, and upon
any such declaration the same shall become immediately due and payable.

 

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

 

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

 

35

 

Section 7.07, and if any and all Events of
Default under the Indenture, other than the non-payment of the principal of
Securities which shall have become due by acceleration, shall have been cured,
waived or otherwise remedied as provided herein, then and in every such case
the Holders of a majority in aggregate principal amount of all the then
outstanding Securities of all such series that have been accelerated (voting as
a single class), by written notice to the Company and to the Trustee, may waive
all defaults with respect to all such series (or with respect to all the
Securities, as the case may be) and rescind and annul such declaration and its
consequences, but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent default or shall impair any right consequent
thereon.

 

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

 

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

 

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

 

Section 6.04.  Waiver of
Past Defaults.  Subject to Sections 6.02, 6.07 and 9.02, the Holders of at least a
majority in principal amount (or, if the Securities are Original Issue Discount
Securities, such portion of the principal as is then accelerable under Section 6.02)
of the outstanding Securities of all series affected (voting as a single
class), by notice to the Trustee, may waive an existing Default or Event of
Default with respect to the Securities of such series and its consequences,
except a Default in the payment of Principal of or interest on any Security as
specified in clauses (a) or (b) of Section 6.01 or in respect of
a covenant or provision of this Indenture which cannot be modified or amended
without the consent of the Holder of each outstanding Security affected.  Upon any such waiver, such Default shall cease
to exist, and any Event of Default with respect to the Securities of such
series arising therefrom shall be deemed to have

 

36

 

been cured, for every purpose of this Indenture;
but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any right consequent thereto.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

37

 

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

 

Section 6.07.  Rights of
Holders to Receive Payment.  Notwithstanding any other provision of this Indenture, the right of any
Holder of a Security to receive payment of Principal of or interest, if any, on
such Holder’s Security on or after the respective due dates expressed on such
Security, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

 

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

 

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

 

Section 6.10. 
Application of Proceeds.  Any moneys collected by the Trustee pursuant to this Article in
respect of the Securities of any series shall be applied in the following order
at the date or dates fixed by the Trustee and, in case

 

38

 

of the distribution of such moneys on account of
Principal or interest, upon presentation of the several Securities and coupons
appertaining to such Securities in respect of which moneys have been collected
and noting thereon the payment, or issuing Securities of such series and tenor
in reduced principal amounts in exchange for the presented Securities of such
series and tenor if only partially paid, or upon surrender thereof if fully
paid:

 

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

 

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

 

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

 

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

 

Section 6.11. 
Restoration of Rights and Remedies. 
If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this

 

39

 

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

 

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

 

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

 

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

 

ARTICLE 7

TRUSTEE

 

Section 7.01. 
General.  The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act and as set forth herein.  Notwithstanding the foregoing, no provision
of this Indenture shall require the

 

40

 

Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, unless it
receives indemnity satisfactory to it against any loss, liability or
expense.  Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Article 7.

 

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

 

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

 

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

 

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

 

(d)      any request, direction, order
or demand of the Company mentioned herein shall be sufficiently evidenced by an
Officers’ Certificate (unless other evidence in respect thereof be herein
specifically

 

41

 

prescribed);
and any Board Resolution may be evidenced to the Trustee by a copy thereof
certified by the Secretary or an Assistant Secretary of the Company;

 

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

 

(f)       the Trustee shall not be
liable for any action it takes or omits to take in good faith that it believes
to be authorized or within its rights or powers or for any action it takes or
omits to take in accordance with the direction of the Holders in accordance
with Section 6.05 relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture;

 

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

 

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

 

Section 7.03.  Individual
Rights of Trustee.  The Trustee, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not the Trustee.  Any Agent may do the same with like rights.

 

42

 

However, the Trustee is subject to Trust Indenture
Act Sections 310(b) and 311.  For
purposes of Trust Indenture Act Section 311(b)(4) and (6), the
following terms shall mean:

 

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

 

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

 

Section 7.04.  Trustee’s
Disclaimer.  The recitals contained herein and in the Securities (except the Trustee’s
certificate of authentication) shall be taken as statements of the Company and
not of the Trustee and the Trustee assumes no responsibility for the
correctness of the same.  Neither the
Trustee nor any of its agents (a) makes any representation as to the
validity or adequacy of this Indenture or the Securities and (b) shall be
accountable for the Company’s use or application of the proceeds from the
Securities.

 

Section 7.05.  Notice of
Default.  If
any Default with respect to the Securities of any series occurs and is
continuing and if such Default is known to the actual knowledge of a
Responsible Officer with the Corporate Trust Department of the Trustee, the
Trustee shall give to each Holder of Securities of such series notice of such
Default within 90 days after it occurs (a) if any Unregistered Securities
of such series are then outstanding, to the Holders thereof, by publication at
least once in an Authorized Newspaper in the Borough of Manhattan, The City of
New York and at least once in an Authorized Newspaper in London and (b) to
all Holders of Securities of such series in the manner and to the extent
provided in Section 313(c) of the Trust Indenture Act, unless such
Default shall have been cured or waived before the mailing or publication of
such notice; provided, however, that, except in the case of a Default in the
payment of the Principal of or interest on any Security, the Trustee shall be
protected in withholding such notice if the Trustee in good faith determines
that the withholding of such notice is in the interests of the Holders.

 

43

 

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

 

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

 

Section 7.07. 
Compensation and Indemnity.  The Company shall pay to the Trustee such compensation as shall be
agreed upon in writing from time to time for its services.  The compensation of the Trustee shall not be
limited by any law on compensation of a Trustee of an express trust.  The Company shall reimburse the Trustee and
any predecessor Trustee upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred or made by the Trustee or such predecessor
Trustee.  Such expenses shall include the
reasonable compensation and expenses of the Trustee’s or such predecessor
Trustee’s agents, counsel and other persons not regularly in their employ.

 

The Company shall indemnify the Trustee and any
predecessor Trustee for, and hold them harmless against, any loss or liability
or expense incurred by them without negligence or bad faith on their part
arising out of or in connection with the acceptance or administration of this
Indenture and the Securities or the issuance of the Securities or of series
thereof or the trusts hereunder and the performance of duties under this
Indenture and the Securities, including the costs and expenses of defending
themselves against or investigating any claim or liability and of complying
with any process served upon them or any of their officers in connection with
the exercise or performance of any of their powers or duties under this
Indenture and the Securities.

 

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

 

The obligations of the Company under this Section to
compensate and indemnify the Trustee and each predecessor Trustee and to pay or
reimburse the Trustee and each predecessor Trustee for expenses, disbursements
and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture or the rejection or
termination of this

 

44

 

Indenture under bankruptcy law.  Such additional indebtedness shall be a
senior claim to that of the Securities upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the benefit of
the Holders of particular Securities or coupons, and the Securities are hereby
subordinated to such senior claim. 
Without prejudice to any other rights available to the Trustee under
applicable law, if the Trustee renders services and incurs expenses following
an Event of Default under Section 6.01(d) or Section 6.01(e) hereof,
the parties hereto and the holders by their acceptance of the Securities hereby
agree that such expenses are intended to constitute expenses of administration
under any bankruptcy law.

 

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

 

The Trustee may resign as Trustee with respect to
the Securities of any series at any time by so notifying the Company in
writing.  The Holders of a majority in
principal amount of the outstanding Securities of any series may remove the
Trustee as Trustee with respect to the Securities of such series by so notifying
the Trustee in writing and may appoint a successor Trustee with respect thereto
with the consent of the Company.  The
Company may remove the Trustee as Trustee with respect to the Securities of any
series if: (i) the Trustee is no longer eligible under Section 7.11
of this Indenture; (ii) the Trustee is adjudged a bankrupt or insolvent; (iii) a
receiver or other public officer takes charge of the Trustee or its property;
or (iv) the Trustee becomes incapable of acting.

 

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

 

The Company shall give notice of any resignation
and any removal of the Trustee with respect to the Securities of any series and
each appointment of a successor Trustee in respect of the Securities of such
series to all Holders of

 

45

 

Securities of such series.  Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

 

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

 

Section 7.09.  Acceptance
of Appointment by Successor.  In
case of the appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges and
subject to the lien provided for in Section 7.07, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee
hereunder.

 

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

 

46

 

those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.

 

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

 

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

 

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

 

Section 7.11. 
Eligibility.  This Indenture shall always have a Trustee who satisfies the
requirements of Trust Indenture Act Section 310(a).  The Trustee shall have a combined capital and
surplus of at least $25,000,000 as set forth in its most recent published
annual report of condition.

 

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

 

ARTICLE 8

SATISFACTION
AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

 

Section 8.01. 
Satisfaction and Discharge of Indenture. 
If at any time (a) the Company shall
have paid or caused to be paid the Principal of and interest on all the Securities
of any series outstanding hereunder (other than Securities of such series which
have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 2.08) as and when the same shall have become due and
payable, or (b) the Company shall have delivered to the Trustee for
cancellation all Securities of any series theretofore authenticated (other than
any Securities of such series which shall have been destroyed, lost or stolen
and 

 

47

 

which shall have been replaced or paid as provided
in Section 2.08) or (c) (i) all the securities of such series
not theretofore delivered to the Trustee for cancellation shall have become due
and payable, or are by their terms to become due and payable within one year or
are to be called for redemption within one year under arrangements satisfactory
to the Trustee for the giving of notice of redemption, and (ii) the
Company shall have irrevocably deposited or caused to be deposited with the
Trustee as trust funds the entire amount in cash (other than moneys repaid by
the Trustee or any paying agent to the Company in accordance with Section 8.04)
or U.S. Government Obligations, maturing as to principal and interest in such
amounts and at such times as will insure (without consideration of the
reinvestment of such interest) the availability of cash, or a combination
thereof, sufficient to pay at maturity or upon redemption all Securities of
such series (other than any Securities of such series which shall have been
destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 2.08) not theretofore delivered to the Trustee for
cancellation, including principal and interest due or to become due on or prior
to such date of maturity or redemption as the case may be, and if, in any such
case, the Company is not prohibited from making payments in respect of the
Securities by Article 11 hereof and shall also pay or cause to be paid all
other sums payable hereunder by the Company with respect to Securities of such
series, then this Indenture shall cease to be of further effect with respect to
Securities of such series (except as to (i) rights of registration of
transfer and exchange of securities of such series, and the Company’s right of
optional redemption, if any, (ii) substitution of mutilated, defaced,
destroyed, lost or stolen Securities, (iii) rights of holders to receive
payments of principal thereof and interest thereon, upon the original stated
due dates therefor (but not upon acceleration) and remaining rights of the
holders to receive mandatory sinking fund payments, if any, (iv) the
rights, obligations and immunities of the Trustee hereunder and (v) the
rights of the Securityholders of such series as beneficiaries hereof with
respect to the property so deposited with the Trustee payable to all or any of
them), and the Trustee, on demand of the Company accompanied by an Officers’
Certificate and an Opinion of Counsel and at the cost and expense of the
Company, shall execute proper instruments acknowledging such satisfaction of
and discharging this Indenture with respect to such series; provided, that the
rights of Holders of the Securities to receive amounts in respect of Principal
of and interest on the Securities held by them shall not be delayed longer than
required by then-applicable mandatory rules or policies of any securities
exchange upon which the Securities are listed. 
The Company agrees to reimburse the Trustee for any costs or expenses
thereafter reasonably and properly incurred and to compensate the Trustee for
any services thereafter reasonably and properly rendered by the Trustee in
connection with this Indenture or the Securities of such series.

 

Section 8.02. 
Application by Trustee of Funds Deposited for Payment of
Securities.  Subject to Section 8.04, all moneys (including U.S. Government

 

48

 

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

 

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

 

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

 

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

 

49

 

so deposited with the Trustee payable to all or any
of them; provided that the following conditions shall have been satisfied:

 

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

 

(ii)   the Company has delivered to the
Trustee (A) either (x) an Opinion of Counsel to the effect that
Holders of Securities of such series will not recognize income, gain or loss
for federal income tax purposes as a result of the Company’s exercise of its
option under this Section 8.05 and will be subject to federal income tax
on the same amount and in the same manner and at the same times as would have
been the case if such deposit, defeasance and discharge had not occurred, which
Opinion of Counsel must be based upon a ruling of the Internal Revenue Service
to the same effect or a change in applicable federal income tax law or related
treasury regulations after the date of this Indenture or (y) a ruling
directed to the Trustee received from the Internal Revenue Service to the same
effect as the aforementioned Opinion of Counsel and (B) an Opinion of
Counsel to the effect that the creation of the defeasance trust does not
violate the Investment Company Act of 1940 and after the passage of 123 days
following the deposit, the trust fund will not be subject to the effect of Section 547
of the U.S. Bankruptcy Code or Section 15 of the New York Debtor and
Creditor Law;

 

(iii)  immediately after giving effect
to such deposit on a pro forma basis, no Event of Default, or event that after
the giving of notice or

 

50

 

lapse
of time or both would become an Event of Default, shall have occurred and be
continuing on the date of such deposit or during the period ending on the 123rd
day after the date of such deposit, and such deposit shall not result in a
breach or violation of, or constitute a default under, any other agreement or
instrument to which the Company is a party or by which the Company is bound;

 

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

 

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

 

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

 

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

 

(a)        with reference to this Section 8.06,
the Company has deposited or caused to be irrevocably deposited with the Trustee
(or another qualifying trustee satisfying the requirements of Section 7.11)
as trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of such series and the
Indenture with respect to the Securities of such series, (i) money in an
amount or (ii) U.S. Government Obligations which through the payment of
interest and principal in respect thereof in accordance with their terms will
provide not later than one day before the due dates thereof or earlier
redemption (irrevocably provided for under agreements satisfactory to the
Trustee), as the case may be, of any payment referred to in subclause (x) or
(y) of this clause (a) money in an amount, or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge without consideration of the
reinvestment of such interest and after payment of all federal, state and local
taxes or other charges and assessments in

 

51

 

respect thereof payable
by the Trustee (x) the principal of, premium, if any, and each installment
of interest on the outstanding Securities of such series on the due date
thereof or earlier redemption (irrevocably provided for under arrangements
satisfactory to the Trustee), as the case may be, and (y) any mandatory
sinking fund payments or analogous payments applicable to the Securities of
such series and the Indenture with respect to the Securities of such series on
the day on which such payments are due and payable in accordance with the terms
of the Indenture and of Securities of such series and the Indenture with
respect to the Securities of such series;

 

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

 

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

 

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

 

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

 

Section 8.07. 
Reinstatement.  If the Trustee or paying agent is unable to apply any monies or U.S.
Government Obligations in accordance with Article 8 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Securities shall be revived
and reinstated as though no deposit had occurred pursuant to this Article until
such time as the Trustee or paying agent is permitted

 

52

 

to apply all such monies or U.S. Government
Obligations in accordance with Article 8; provided,
however, that if the Company has made any payment of Principal of or
interest on any Securities because of the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the monies or U.S. Government Obligations held by the
Trustee or paying agent.

 

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

 

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

 

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

 

ARTICLE 9

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

 

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

 

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

 

53

 

(b)      to comply with Article 5;

 

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

 

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

 

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

 

(f)       to provide for
uncertificated or Unregistered Securities and to make all appropriate changes
for such purpose; and

 

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

 

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

 

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

 

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

 

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

 

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

 

54

 

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

 

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

 

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

 

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

 

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

 

The Company may, but shall not be obligated to, fix
a record date (which may be not less than five nor more than 60 days prior to
the solicitation of consents) for the purpose of determining the Holders of the
Securities of any series affected entitled to consent to any amendment,
supplement or waiver.  If a record date
is fixed, then, notwithstanding the immediately preceding paragraph, those
Persons who were such Holders at such record date (or their duly designated
proxies) and only those Persons shall be entitled to consent to such amendment,
supplement or waiver or to revoke any consent previously given, whether or not

 

55

 

such Persons continue to be such Holders after such
record date.  No such consent shall be
valid or effective for more than 90 days after such record date.

 

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

 

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

 

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

 

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

 

ARTICLE 10

MISCELLANEOUS

 

Section 10.01.  Trust
Indenture Act of 1939.  This Indenture shall incorporate and be governed by the provisions of
the Trust Indenture Act that are required to be part of and to govern
indentures qualified under the Trust Indenture Act.

 

56

 

Section 10.02. 
Notices.  Any notice or communication shall be sufficiently given if written and (a) if
delivered in person when received or (b) if mailed by first class mail 5
days after mailing, or (c) as between the Company and the Trustee if sent
by facsimile transmission, when transmission is confirmed, in each case
addressed as follows:

 

if to the Company:

 

Cobalt International Energy, Inc. 

Two Post Oak Central

1980 Post Oak Boulevard, Suite 1200

Houston, TX 77056

Telecopy: (713) 579-9184

Attention:  General Counsel and Executive
Vice President

 

if to the Trustee:

 

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

 

Any notice or communication shall be sufficiently
given to Holders of any Unregistered Securities, by publication at least once
in an Authorized Newspaper in The City of New York, or with respect to any
Security the interest on which is based on the offered quotations in the
interbank Eurodollar market for dollar deposits at least once in an Authorized
Newspaper in London, and by mailing to the Holders thereof who have filed their
names and addresses with the Trustee pursuant to Section 313(c)(2) of
the Trust Indenture Act at such addresses as were so furnished to the Trustee
and to Holders of Registered Securities by mailing to such Holders at their
addresses as they shall appear on the Security Register.  Notice mailed shall be sufficiently given if
so mailed within the time prescribed. 
Copies of any such communication or notice to a Holder shall also be
mailed to the Trustee and each Agent at the same time.

 

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

 

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

 

57

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 10.05.  Evidence
of Ownership.  The Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the Holder of any Unregistered Security and the Holder of any
coupon as the absolute owner of such

 

58

 

Unregistered Security or coupon (whether or not
such Unregistered Security or coupon shall be overdue) for the purpose of
receiving payment thereof or on account thereof and for all other purposes, and
neither the Company, the Trustee, nor any agent of the Company or the Trustee
shall be affected by any notice to the contrary.  The fact of the holding by any Holder of an
Unregistered Security, and the identifying number of such Security and the date
of his holding the same, may be proved by the production of such Security or by
a certificate executed by any trust company, bank, banker or recognized
securities dealer wherever situated satisfactory to the Trustee, if such
certificate shall be deemed by the Trustee to be satisfactory.  Each such certificate shall be dated and
shall state that on the date thereof a Security bearing a specified identifying
number was deposited with or exhibited to such trust company, bank, banker or
recognized securities dealer by the person named in such certificate.  Any such certificate may be issued in respect
of one or more Unregistered Securities specified therein.  The holding by the person named in any such
certificate of any Unregistered Securities specified therein shall be presumed
to continue for a period of one year from the date of such certificate unless
at the time of any determination of such holding (1) another certificate
bearing a later date issued in respect of the same Securities shall be produced
or (2) the Security specified in such certificate shall be produced by
some other Person, or (3) the Security specified in such certificate shall
have ceased to be outstanding.  Subject
to Article 7, the fact and date of the execution of any such instrument
and the amount and numbers of Securities held by the Person so executing such
instrument may also be proven in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in any other manner which
the Trustee may deem sufficient.

 

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

 

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

 

Section 10.07.  Payment
Date Other Than a Business Day.  Except as otherwise provided with respect to a series of Securities, if
any date for payment of Principal or interest on any Security shall not be a
Business Day at any place of payment, then payment of Principal of or interest
on such Security, as the case may be, need not be made on such date, but may be
made on the next succeeding

 

59

 

Business Day at any place of payment with the same
force and effect as if made on such date and no interest shall accrue in
respect of such payment for the period from and after such date.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

60

 

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

 

ARTICLE 11

SUBORDINATION OF SECURITIES

 

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

 

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

 

61

 

the continuance of any default (other than a
payment default) with respect to Designated Senior Indebtedness pursuant to
which the maturity thereof may be accelerated, from and after the date of
receipt by the Trustee of written notice from the holders of such Designated
Senior Indebtedness or from an agent of such holders, stating that such default
has occurred and is continuing, no payments on account of Principal or interest
in respect of the Securities may be made by the Company for a period (“Payment
Blockage Period”) commencing on the date of delivery of such notice and ending
179 days thereafter (unless such Payment Blockage Period shall be terminated by
written notice to the Trustee from the holders of such Designated Senior
Indebtedness or from an agent of such holders, or such default has been cured
or waived or has ceased to exist).  Only
one Payment Blockage Period may be commenced with respect to the Securities
during any period of 360 consecutive days. 
No Event of Default which existed or was continuing on the date of the
commencement of any Payment Blockage Period with respect to the Designated Senior
Indebtedness initiating such Payment Blockage Period shall be or be made the
basis for the commencement of any subsequent Payment Blockage Period by the
holders of such Designated Senior Indebtedness, unless such Event of Default
shall have been cured or waived for a period of not less than 90 consecutive
days.

 

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

 

62

 

to the holders of the indebtedness evidenced by the
Securities or to the Trustee under this Indenture.

 

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

 

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

 

Section 11.03. 
Subrogation of Securities.  Subject to the payment in full of all Senior Indebtedness, the Holders
of the Securities shall be subrogated to the rights of the holders of Senior
Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to the Senior Indebtedness until the
principal of and interest on the Securities shall be paid in full; and, for the
purposes of such subrogation, no payments or distributions to the

 

63

 

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

 

Nothing contained in this Article or elsewhere
in this Indenture or in the Securities is intended to or shall impair, as
between the Company, its creditors other than the holders of Senior
Indebtedness, and the Holders of the Securities, the obligation of the Company,
which is absolute and unconditional, to pay to the Holders of the Securities
the Principal of and interest on the Securities as and when the same shall
become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders of the Securities and creditors
of the Company other than the holders of the Senior Indebtedness, nor shall
anything herein or therein prevent the Holder of any Security or the Trustee on
his behalf from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this Article of
the holders of Senior Indebtedness in respect of cash, property or securities
of the Company received upon the exercise of any such remedy.

 

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

 

Section 11.04. 
Authorization by Securityholders. 
Each Holder of a Security by his acceptance
thereof authorizes the Trustee in his behalf to take such action as may be
necessary or appropriate to effectuate the subordination

 

64

 

provided in this Article and appoints the
Trustee his attorney-in-fact for any and all such purposes.

 

Section 11.05.  Notice to
Trustee.  The
Company shall give prompt written notice to the Trustee and to any paying agent
of any fact known to the Company which would prohibit the making of any payment
of moneys to or by the Trustee or any paying agent in respect of the Securities
pursuant to the provisions of this Article or would end such
prohibition.  Regardless of anything to
the contrary contained in this Article or elsewhere in this Indenture, the
Trustee shall not be charged with knowledge of the existence of any Senior
Indebtedness or of any default or event of default with respect to any Senior
Indebtedness or of any other facts which would prohibit the making of any
payment of moneys to or by the Trustee or which would end such prohibition,
unless and until the Trustee shall have received notice in writing at its
principal Corporate Trust Office to that effect signed by an officer of the
Company, or by a holder or agent of a holder of Senior Indebtedness or by the
trustee under any indenture pursuant to which Senior Indebtedness shall be
outstanding, who shall have been certified by the Company or otherwise
established to the reasonable satisfaction of the Trustee to be such holder or
agent or trustee, and, prior to the receipt of any such written notice, the
Trustee shall, subject to Sections 7.01 and 7.02, be entitled to assume that no
such facts exist; provided that if on a date at least three Business Days prior
to the date upon which by the terms hereof any such moneys shall become payable
for any purpose (including, without limitation, the payment of the Principal
of, or interest on any Security) the Trustee shall not have received with
respect to such moneys the notice of prohibition provided for in this Section,
then, regardless of anything herein to the contrary, the Trustee shall have
full power and authority to receive such moneys and to apply the same to the
purpose for which they were received, and shall not be affected by any notice
to the contrary which may be received by it on or after such prior date.

 

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

 

The Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a
holder of Senior Indebtedness (or a trustee or agent on behalf of such holder)
to establish that such notice has been given by a holder of Senior Indebtedness
or a trustee or agent on behalf of any such holder.  In the event that the Trustee determines in
good faith that further evidence is required with respect to the right of any
Person as a holder of Senior

 

65

 

Indebtedness to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article, and if such evidence
is not furnished the Trustee may defer any payment to such Person pending
judicial determination as to the right of such Person to receive such payment.

 

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

 

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

 

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

 

66

 

SIGNATURES

 

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

 

	
  (SEAL)  

  	
   

  	
  COBALT INTERNATIONAL ENERGY, INC.

  
	
   

  	
   

  	
  as the Company

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  as the Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

67exh101.htm

Exhibit 10.1

 

 

 

December 31, 2010

 

 

Stephen E. Wessel

CEO & President

Guaranty Savings Bank

3798 Veterans Boulevard

Metairie, Louisiana, 70002

 

Re:  Change in Control Agreement

 

Dear Mr. Wessel:

 

In furtherance of the provisions and terms of your initial letter of engagement as Chief Executive Officer and President of Guaranty Savings Bank, dated November 28, 2005, as amended on February 26, 2008 and November 20, 2008 (the "Letter Agreement"), and your subsequent acceptance thereof, and more specifically the provisions regarding a Change in Control, the Board of Directors has decided and does hereby agree to the following:

 

If a Change in Control as defined in the Letter Agreement occurs during the next one (1) year of your employment as Chief Executive Officer and President, commencing January 1, 2011, and extending through December 31, 2011, and your employment is terminated for reasons other than cause (as defined in November 20, 2008 agreement), then you shall be entitled to and receive the following by the dates specified in the Letter Agreement:

 

	
  

	
a.

	
Accrued Base Salary through the date of termination of your employment; plus

	
  

	
b.

	
A lump sum payment equal to one year's Base Salary; and

	
  

	
c.

	
Any other benefits to which you may be entitled upon your termination of employment with Guaranty, in accordance with the terms of the plans and programs of Guaranty.

 

The above and foregoing supersedes any and all prior verbal and/or written statements or communications in relation to a Change in Control.

 

	
/s/ Albert J. Zahn, Jr.

	  
	
Albert J. Zahn, Jr., Chairman

	  
	  
	  
	
I hereby acknowledge and accept the terms and provisions as set forth above on this 31st day of December, 2010.

	  
	  
	
/s/ Stephen E. Wessel

	  
	
Stephen E. Wessel

	  

 

 

 

 

 

 

 

 

a Savings and Loan Holding Company

 

3798 Veterans Boulevard, Metairie, Louisiana 70002-5837

Telephone: (504) 457-6220     Facsimile: (504) 457-6227

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]