Document:

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Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into on March 23, 2007, and is
effective on March 26, 2007 (the “Effective Date”), by and between KAYDON CORPORATION, a Delaware
corporation (the “Company”), and JAMES O’LEARY, an individual (“Executive”).

WITNESSETH:

     WHEREAS, the Company desires to employ Executive as its President and Chief Executive Officer,
and Executive desires to be so employed on the terms and conditions contained in this Agreement.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
herein contained, the Company and Executive hereby agree as follows:

1. Employment and Duties.

     (a) The Company hereby agrees to employ Executive for the Term (as hereinafter defined) as its
President and Chief Executive Officer. The Executive shall have such management and oversight
responsibilities and authority as are necessary to efficiently administer the affairs of the
Company and as are customary of a President and Chief Executive Officer. All powers herein granted
to the Executive are subject to supervisory approval of the Board, and the Executive may be given
such further reasonably related supervisory duties, powers and prerogatives as may be delegated to
him from time to time by said Board. The Executive shall report exclusively to the Board and
further shall render such advice to the Board as said Board may from time to time request. In
addition, during the Term the Company will cause the Executive to be nominated for re-election as a
Director of the Company.

     (b) During the Term, and excluding any periods of vacation and sick leave to which the
Executive is entitled, Executive shall devote substantially all of his business time and efforts to
the business and affairs of the Company and, to the extent necessary to discharge the
responsibilities assigned to the Executive hereunder, use the Executive’s reasonable best efforts
to perform faithfully such responsibilities. Executive is required to work those business hours
customarily necessary to perform properly such duties and responsibilities normally associated with
the position of President and Chief Executive Officer. In performing such duties hereunder,
Executive shall comply with the policies and procedures as adopted from time to time by the Board,
shall give the Company the benefit of his special knowledge, skills, contacts and business
experience, shall perform his duties and carry out his responsibilities hereunder in a diligent
manner. For a transition period to extend no later than May 1, 2007, the Executive may provide
advisory services to Beazer Homes USA, Inc. so as to expedite and facilitate his full time
transition into the Company with the prior approval of the Board. Such advisory services shall not
unreasonably interfere with the services to be rendered by the Executive hereunder.

     (c) During the Term, it shall not be a violation of this Agreement for the Executive to (i)
with the prior approval of the Board in each case (which approval shall not be unreasonably
withheld or delayed), serve on corporate, civic or charitable boards or committees, (ii) with the
prior approval of the Board in each case, deliver lectures, fulfill speaking engagements or teach

 

 

at educational institutions, and (iii) manage personal investments, so long as such activities
do not significantly interfere or constitute a conflict of interest with the performance of the
Executive’s responsibilities as an employee of the Company in accordance with this Agreement.

     (d) The principal location for performance of Executive’s services hereunder shall
be at the offices of the Company in Ann Arbor, Michigan, subject to reasonable travel requirements
during the course of such performance. Executive shall not be required, without his consent, to
regularly report to any office of the Company which is located more than fifty (50) miles from the
Company’s current office location, provided Executive shall be expected to travel to the extent
reasonably necessary to fulfill his responsibilities.

	2.	 	Employment Term. The term of Executive’s employment hereunder (the “Term”) shall
commence effective as of the date hereof and shall continue thereafter until terminated in
accordance with Section 4 below.

3. Compensation and Benefits.

     (a) Base Salary. During the Term, the Executive shall receive an annual base salary
(“Annual Base Salary”) in the amount of at least Seven Hundred Thousand ($700,000.00) Dollars,
payable in accordance with the Company’s normal payroll practices (but not less frequently than
monthly). During the Term, the Annual Base Salary shall be reviewed by the Compensation Committee
(for purposes of increase only) at least annually. Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this Agreement. Annual Base
Salary shall not be reduced after any such increase and the term Annual Base Salary as utilized in
this Agreement shall refer to Annual Base Salary as so increased.

     (b) Bonuses; Stock Incentive Plans. Executive shall be eligible to and shall
participate in the Company’s bonus, stock option, restricted stock and other stock incentive plans
at the discretion of the Compensation Committee of the Board. The amount and terms of, and the
targets, conditions and restrictions applicable to each bonus or other incentive award shall be
subject to the provisions of any such plan and of the applicable award by the Company.
Notwithstanding the foregoing:

     (i) in addition to any bonus to which the Executive would be entitled to under the
Company’s Executive Management Bonus Program (the “EMBP”), Executive shall be entitled to a
supplemental performance bonus equal to 40% of annual base salary in any year of the Term
during which the Company’s EBITDA performance achieves 100% of the Target EBITDA goal
established by the Compensation Committee pursuant to the EMBP, and a supplemental bonus
equal to 3% of annual base salary for each percentage that the Company’s EBITDA performance
exceeds the 114% of the Target EBITDA goal established by the Compensation Committee
pursuant to the EMBP, until the total of bonus payments equals 150% of the Executive’s
annual base salary. Anything contained herein to the contrary notwithstanding, in the event
that the EMBP is no longer in effect (or is reduced or modified downward in any material
respect), the Company will establish a comparable performance incentive plan that will
provide for annual cash bonuses to

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Executive resulting in total payments to Executive not less than those which Executive
is currently entitled to receive under this provision.

     (ii) within ten (10) business days from the Effective Date, upon action by the
Compensation Committee, the Company shall grant Executive non-qualified stock options to
acquire 250,000 shares of common stock of the Company in accordance with the terms and
conditions of the Kaydon Corporation 1999 Long-Term Stock Incentive Plan (the “1999 Plan”).
The option agreement relating to such options shall provide that (A) such options shall vest
and become exercisable with respect to 50,000 shares on each anniversary of the date of
grant, subject to acceleration as provided in Sections 4(f)(v) and 5(e) below, (B) the
strike price for all such options shall be the closing price of the Company’s common stock
on the New York Stock Exchange on the date of grant and (C) such options shall expire on the
day prior to the tenth anniversary of the date of grant. In the event of any conflict
between the terms of the 1999 Plan and this Agreement, this Agreement shall govern and
control and shall be deemed to be an amendment to the 1999 Plan.

     (iii) within ten (10) business days from the Effective Date, upon action by the
Compensation Committee, the Company shall grant Executive a restricted stock award for
100,000 shares of common stock of the Company in accordance with all of the terms and
conditions of the 1999 Plan. The agreement relating to such shares of restricted stock
shall provide that (A) the restrictions pertaining to such shares shall terminate with
respect to 20,000 shares on each anniversary of the date of grant, subject to acceleration
as provided in Sections 4(f)(v) and 5(e) below, and (B) so long as the Executive is employed
by the Company, the Executive shall be entitled to receive any dividends declared and
payable by the Company with respect to such restricted stock held by the Executive,
regardless of whether said stock has vested or become unrestricted at such time. In the
event of any conflict between the terms of the 1999 Plan and this Agreement, this Agreement
shall govern and control and shall be deemed to be an amendment to the 1999 Plan.

     (iv) within ten (10) business days from the Effective Date, upon action by the
Compensation Committee, the Company shall grant Executive a restricted stock award for
10,000 shares of common stock of the Company in accordance with all of the terms and
conditions of the 1999 Plan. The agreement relating to such shares of restricted stock
shall provide that (A) the restrictions pertaining to such shares shall terminate on the
first anniversary of the date of grant, subject to acceleration as provided in Sections
4(f)(v) and 5(e) below and (B) so long as the Executive is employed by the Company, the
Executive shall be entitled to receive any dividends declared and payable by the Company
with respect to such restricted stock held by the Executive, regardless of whether said
stock has vested or become unrestricted at such time. In the event of any conflict between
the terms of the 1999 Plan and this Agreement, this Agreement shall govern and control and
shall be deemed to be an amendment to the 1999 Plan The Executive shall purchase an equal
number of shares of the Company’s common stock within thirty (30) days of the Effective Date
and shall retain ownership of at least 10,000 shares of Company common stock during the
Term.

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     (c) Incentive, Savings and Retirement Plans. During the Term, the Executive shall be
entitled to participate in all incentive, savings and retirement plans, practices, policies and
programs (the “Programs”) applicable generally to other most senior executives of the Company and
its affiliated companies. The Programs currently include, without limitation, the Kaydon
Corporation Retirement Plan (the “Retirement Plan”), the Kaydon Corporation Supplemental Executive
Retirement Plan (the “SERP”) and the Kaydon Corporation Executive Management Bonus Plan (the “Bonus
Plan”). Notwithstanding the foregoing or anything contained in the applicable Programs to the
contrary, the Company agrees that, with respect to the Executive’s participation in the SERP, the
Executive shall be entitled to the following (and the SERP shall be amended, as of the Effective
Date, to provide for the following):

     (i) the Executive shall be eligible for benefits under the SERP on the Effective Date
(i.e., for all purposes of the SERP, the Executive shall be deemed to be sixty-five (65)
years of age on the Effective Date) and the Executive shall remain a participant in the SERP
during the Term;

     (ii) the Executive shall be 100% vested under the SERP on the Effective Date,
regardless of whether the Executive is vested under the Retirement Plan;

     (iii) the Executive shall be entitled to a lump sum payment from the SERP upon the
termination of his employment with the Company following a Change in Control, said payment
to be made in cash and, subject to Section 11 below, within thirty (30) days following the
Date of Termination;

     (iv) the Executive shall be entitled to ten (10) years of additional credited service
on the Effective Date and, thereafter, each day of the Executive’s actual credited service
shall entitle the Executive to one (1) day of additional credited service, subject to a
maximum of thirty (30) years of credited service. By way of example, after two years of
actual credited service with the Company, the Executive shall have fourteen (14) years of
credited service under the SERP (i.e., 10 + 2 + 2);

     (v) the Executive shall be deemed to be a person identified in Appendix C to the SERP
as eligible for additional credited service; and

     (vi) the definition of a “Change in Control” shall be as set forth in Section 5(j)
below .

     (d) Welfare Benefit Plans. During the Term, the Executive and/or the Executive’s
family, as the case may be, shall be eligible for participation in and shall receive all benefits
under welfare benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription, dental, disability,
employee life, group life, accidental death and travel accident insurance plans and programs) to
the extent applicable generally to other most senior executives of the Company and its affiliated
companies.

     (e) Expenses. The Company shall pay or reimburse Executive for all reasonable and
necessary out-of-pocket expenses incurred in the performance of his duties under this Agreement,
subject to approval in accordance with the Company’s standard reimbursement

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policies. Executive shall keep detailed and accurate records of expenses incurred in
connection with the performance of his duties hereunder and reimbursement therefore shall be in
accordance with policies and procedures to be established from time to time by the Board.

     (f) Office and Support Staff. During the Term, the Executive shall be entitled to an
office or offices of a size and with furnishings and other appointments, and to secretarial and
other assistance, consistent with the Executive’s position and title.

     (g) Vacation. During the Term, Executive shall be entitled to twenty (20) working
days of compensated vacation in each fiscal year, to be taken at times which do not unreasonably
interfere with the performance of Executive’s duties hereunder. Any unused vacation time from any
fiscal year shall be subject to accumulation or forfeiture in accordance with Company policy as in
effect from time to time. Executive also shall be entitled to such periods of sick leave as is
customarily provided by the Company to its senior executive employees.

     (h) Relocation. The Company shall reimburse Executive for reasonable and actual
relocation expenses incurred in moving from his present primary residence in the Atlanta, Georgia
area to the Ann Arbor, Michigan area. The following reasonable expenses shall be reimbursed,
provided Executive submits adequate documentation (for example, receipts, closing documents, etc.)
substantiating the expenses: costs for packing, moving and insuring household goods and
automobiles; costs for storage of household goods prior to moving into a new residence; costs
associated with house hunting trips to Ann Arbor; costs associated with temporary housing (a small,
furnished apartment in the Ann Arbor area) for Executive; costs associated with the purchase of a
new home in the Ann Arbor area (including, without limitation, closing costs, legal fees, home
inspections, title insurance, mortgage broker fees and transfer taxes, “points” or “origination
fees” not to exceed 1%); costs associated with the sale of Executive’s current residence
(including, without limitation, closing costs, legal fees, transfer taxes, any real estate broker
commissions and mortgage prepayment penalties). All of the foregoing (Subsections (i) through
(viii) above) and Section 3(i) below shall be “grossed-up”, so-called, to the extent not otherwise
tax deductible to the Executive, to take into account income tax consequences to Executive.

     (i) Attorneys’ Fees. The Company shall reimburse Executive for the actual and
reasonable expenses incurred by Executive for having this Agreement prepared and/or reviewed by an
attorney.

     (j) Life insurance. During the Term, the Company shall maintain a term life insurance
policy covering the life of Executive in the face amount of not less than $2,000,000.00 with
respect to which the Executive shall have the right to designate the beneficiary. Upon the
termination of Executive’s employment for any reason, the Company shall, within thirty (30) days
after such termination, transfer (without cost to the Executive), free and clear of liens and
security interests, the ownership of said life insurance to Executive or his designee.

     The Company warrants and represents to the Executive that this Agreement, including, without
limitation, the grants and amendments to the 1999 Plan and the SERP contemplated hereby, have been
duly authorized and approved by the Compensation Committee of the Board and the Board.

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4. Termination of Employment for Death or Disability; Other Termination Absent any Change in
Control.

     (a) Death or Disability. The Executive’s employment shall terminate automatically
upon the Executive’s death during the Term. If the Disability of the Executive occurs during the
Term (pursuant to the definition of Disability set forth below), the Company may give to the
Executive written notice in accordance with Section 10(c) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective on the 30th day after receipt of such notice by the Executive
(the “Disability Effective Date”), provided that, within the thirty (30) days after such receipt,
the Executive shall not have returned to full-time performance of the Executive’s duties. For
purposes of this Agreement, “Disability” shall mean the absence of the Executive from the
Executive’s duties with the Company on a full-time basis for one hundred and twenty (120)
consecutive business days as a result of incapacity due to mental or physical illness which is
determined to be total and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive’s legal representative.

     (b) Cause. The Company may terminate the Executive’s employment for Cause. For
purposes of this Agreement, “Cause” shall mean:

     (i) any act or failure to act by Executive done with the intent to harm in any material
respect the financial interests or reputation of the Company or any affiliated companies;

     (ii) Executive being convicted of (or entering a plea of guilty or nolo contendere to)
a felony (other than a felony involving a motor vehicle not involving alcohol or drugs);

     (iii) Executive’s dishonesty, misappropriation or fraud with regard to the Company or
any affiliated companies, including (but not limited to) any falsification of company
records or reports (other than good faith expense account disputes);

     (iv) a grossly negligent act or failure to act by Executive which has a material
adverse affect on the Company or any affiliated companies;

     (v) the material breach by Executive of his agreements or obligations under this
Agreement which has a material adverse effect on the Company, which breach, if curable, is
not cured by Executive within fifteen (15) days (i.e., calendar days) after written notice
from the Company which specifically identifies the material breach which the Company
believes that Executive has committed; or

     (vi) the continued refusal to follow the directives of the Board or its designees which
are consistent with Executive’s duties and responsibilities identified in Section 1 hereof;
provided that the foregoing refusal shall not be “cause” if Executive in good faith believes
that such direction is illegal, unethical or immoral and promptly so notifies the Board in
writing.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive

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for Good Reason. For purposes of this Agreement, “Good Reason” shall mean:

     (i) the assignment to the Executive of any duties inconsistent in any material respect
with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 1 of this
Agreement, or any other action by the Company which results in a diminution in such
position, authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Company within fifteen (15) days after receipt of notice thereof given by the Executive;

     (ii) any failure by the Company to comply with any of the provisions of Section 3 of
this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring
in bad faith and which is remedied by the Company within fifteen (15) days after receipt of
notice thereof given by the Executive;

     (iii) the Company’s requiring the Executive to be based at any office or location other
than as provided in Section 1(e) hereof, which is not remedied by the Company within fifteen
(15) days after receipt of notice thereof given by the Executive; or

     (iv) the material breach by the Company of any of its other material obligations under
this Agreement, which breach, if curable, is not cured by the Company within fifteen (15)
days after written notice from the Executive which specifically identifies the material
breach which the Executive believes that the Company has committed permitted by this
Agreement.

     Anything in this Agreement to the contrary notwithstanding, a termination by the Executive for
any reason during the 30 day period immediately preceding the twelve (12) month anniversary of a
Change in Control shall be deemed to be a termination for Good Reason for all purposes of this
Agreement.

     (d) Notice of Termination. Any termination by the Company for Cause, or by the
Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto
given in accordance with Section 10(c) of this Agreement. For purposes of this Agreement, a
“Notice of Termination” means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination date (which date shall
be not more than thirty (30) days after the giving of such notice). The failure by the Executive
or the Company to set forth in the Notice of Termination any fact or circumstance which contributes
to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such
fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

     (e) Date of Termination. “Date of Termination” means (i) if the Executive’s

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employment is terminated by the Company for Cause, or by the Executive for Good Reason, the
date of receipt of the Notice of Termination or, subject to applicable cure periods, any later date
specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the
Company other than for Cause or Disability, the Date of Termination shall be the date on which the
Company notifies the Executive of such termination and (iii) if the Executive’s employment is
terminated by reason of death or Disability, the Date of Termination shall be the date of death of
the Executive or the Disability Effective Date, as the case may be.

     (f) Obligations of the Company. If, during the Term, the Company shall terminate the
Executive’s employment other than for Cause or the Executive shall terminate his employment for
Good Reason, then:

     (i) the Company shall pay to the Executive in a lump sum in cash, subject to Section 11
below, within thirty (30) days following the Date of Termination, or as soon thereafter as
is reasonably practicable, the aggregate of the following amounts: (1) the Executive’s
Annual Base Salary through the Date of Termination to the extent not theretofore paid, (2)
any accrued but unpaid annual bonus (“Annual Bonus”) respecting any completed fiscal year
ending prior to the Date of Termination, (3) the product of (x) the Highest Annual Bonus
(hereinafter defined) and (y) a fraction, the numerator of which is the number of days in
the current fiscal year through the Date of Termination, and the denominator of which is 365
and (4) any compensation previously deferred by the Executive (together with any accrued
interest or earnings thereon) and any accrued vacation pay, in each case to the extent not
theretofore paid (the sum of the amounts described in clauses (1), (2), (3) and (4) shall be
hereinafter referred to as the “Accrued Obligations”). The timing of payment by the Company
of any deferred compensation shall remain subject to any payment election previously made by
the Executive. The term “Highest Annual Bonus” shall mean the highest of the Executive’s
aggregate bonuses (whether paid or deferred) under all of the Company’s annual incentive
and/or bonus plans (including, without limitation, the Bonus Plan) during the last three
full fiscal years prior to the Date of Termination or for such lesser period as the
Executive has been employed by the Company (annualized in the event that the Executive was
not employed by the Company for the whole of any such fiscal year).

     (ii) the Company shall pay to the Executive in a lump sum in cash, subject to Section
11 below, within thirty (30) days following the Date of Termination, or as soon thereafter
as is reasonably practicable, an amount equal to two (2) times the sum of (1) Executive’s
Annual Base Salary (at the rate in effect on the Date of Termination), and (2) the Highest
Annual Bonus;

     (iii) for a period two (2) years after the Date of Termination, or such longer period
as may be provided by the terms of the appropriate plan, program, practice or policy, but
subject to applicable insurance company and other legal requirements, the Company shall
continue benefits to the Executive and/or the Executive’s family at least equal to those
which would have been provided to them in accordance with the plans, programs, practices and
policies described in Section 3(d) of this Agreement if the Executive’s employment had not
been terminated or, if more favorable to the Executive, as in effect generally at any time
within two (2) years thereafter with respect to other peer

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executives and their families; provided, however, that if the Executive becomes
reemployed with another employer and receives medical or other welfare benefits under
another employer provided plan, the medical and other welfare benefits described herein
shall be secondary to those provided under the other employer-provided plan during the two
(2) year period referenced herein; notwithstanding the foregoing, if the Executive’s
benefits referenced herein or the level of coverage cannot be continued due to Internal
Revenue Service or insurance company restrictions, the Company shall provide the Executive
with such substantially equivalent benefits or such additional benefits as shall be
necessary to make the benefits to the Executive and/or the Executive’s family substantially
equivalent, even if the payment or coverage of such benefits shall be provided through other
sources; and

     (iv) to the extent not theretofore paid or provided, the Company shall timely pay or
provide to the Executive any other amounts or benefits required to be paid or provided or
which the Executive is eligible to receive under any plan, program, policy or practice or
contract or agreement of the Company and its affiliated companies (such other amounts and
benefits shall be hereinafter referred to as the “Other Benefits”).

     (v) all stock options, restricted stock awards, long term incentive plan benefits and
any other benefits that are subject to vesting based upon the continued employment of the
Executive which would become vested, unrestricted or exercisable within the two (2) year
period immediately following the Date of Termination shall automatically become vested,
unrestricted and/or exercisable, as the case may be.

     (g) Death. If the Executive’s employment is terminated by reason of the Executive’s
death, this Agreement shall terminate without further obligations to the Executive’s legal
representatives under this Agreement, other than for payment of Accrued Obligations and the timely
payment or provision of Other Benefits. Accrued Obligations shall be paid to the Executive’s
estate or beneficiary, as applicable, in a lump sum in cash within thirty (30) days of the Date of
Termination, or as soon thereafter as is reasonably practicable.

     (h) Disability. If the Executive’s employment is terminated by reason of the
Executive’s Disability, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits. Accrued Obligations shall be paid to the Executive or the Executive’s legal
representative in a lump sum in cash, subject to Section 11 below, within thirty (30) days
following the Date of Termination, or as soon thereafter as is reasonably practicable.

     (i) Cause. If the Executive’s employment shall be terminated by the Company for
Cause, this Agreement shall terminate without further obligations to the Executive other than the
obligation to pay to the Executive (A) his Annual Base Salary through the Date of Termination, (B)
the amount of any compensation previously deferred by the Executive, and (C) Other Benefits, in
each case to the extent theretofore unpaid.

     (j) Other than for Good Reason. If the Executive voluntarily terminates employment
during the Term, excluding a termination for Good Reason, this Agreement shall terminate without
further obligations to the Executive, other than for Accrued Obligations and the timely

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payment or provision of Other Benefits. In such case, all Accrued Obligations shall be paid
to the Executive in a lump sum in cash, subject to Section 11 below, within thirty (30) days
following the Date of Termination, or as soon thereafter as is reasonably practicable.

	5.	 	Termination of Employment Following a Change in Control.

     (a) Termination. In the event that Executive’s employment is terminated by the
Company other than for Cause, or is terminated by the Executive for Good Reason, (i) during the
period beginning on the date a third person begins a tender or exchange offer, circulates a proxy
to stockholders, or takes other steps to effect a Change in Control and ending on the complete abandonment of that effort or (ii) at any time within three (3) years following the
date on which a Change in Control occurs, then the Company shall provide to Executive the rights
and benefits described in this Section 5 in lieu of all other benefits of a severance nature under
Section 4(f) of this Agreement. The specific arrangements referred to in this Section 5 are not
intended to exclude Executive’s participation in other benefit plans in which Executive currently
participates or which are or may become available to executive personnel generally in the class or
category of Executive or to preclude other compensation or benefits as may be authorized by the
Board of Directors from time to time.

     (b) Accrued Benefits. The Company shall pay to the Executive in a lump sum in cash,
subject to Section 11 below, within 30 days after the Date of Termination, or as soon thereafter as
is reasonably practicable, the sum of (1) the Executive’s Annual Base Salary through the Date of
Termination to the extent not theretofore paid, (2) any accrued but unpaid Annual Bonus respecting
any completed fiscal year ending prior to the Date of Termination, (3) the product of (x) the
greater of (i) the Highest Annual Bonus, and (ii) the target bonus for the year during which the
Date of Termination occurs, and (y) a fraction, the numerator of which is the number of days in the
current fiscal year through the Date of Termination, and the denominator of which is 365, and (4)
any compensation previously deferred by the Executive (together with any accrued interest or
earnings thereon) and any accrued vacation pay, in each case to the extent not theretofore paid.
Anything contained herein to the contrary notwithstanding, the timing of payment by the Company of
any deferred compensation shall remain subject to the terms and conditions of the applicable
deferred compensation plan and any payment election previously made by the Executive.

     (c) Additional Payment. The Company shall pay to the Executive in a lump sum in cash,
subject to Section 11 below, within 30 days after the Date of Termination, or as soon thereafter as
is reasonably practicable, an amount equal to three (3) times the sum of (x) the Executive’s Annual
Base Salary and (y) the greater of (A) the Highest Annual Bonus or (B) the target bonus for the
year during which the Date of Termination occurs.

     (d) Continuation of Benefits. For three (3) years after the Executive’s Date of
Termination, or such longer period as may be provided by the terms of the appropriate plan,
program, practice or policy, the Company shall continue benefits to the Executive and/or the
Executive’s family at least equal to those which would have been provided to them in accordance
with the plans, programs, practices and policies described in Section 3(d) of this Agreement if the
Executive’s employment had not been terminated or, if more favorable to the Executive, as in effect
generally at any time thereafter with respect to other peer executives of

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the Company and its affiliated companies and their families, provided, however, that if the
Executive becomes reemployed with another employer and is eligible to receive medical or other
welfare benefits under another employer provided plan, the medical and other welfare benefits
described herein shall be secondary to those provided under such other plan during such applicable
period of eligibility. For purposes of determining eligibility (but not the time of commencement of
benefits) of the Executive for retiree benefits pursuant to such plans, practices, programs and
policies, the Executive shall be considered to have remained employed until three (3) years after
the Date of Termination and to have retired on the last day of such period.

     If due to insurance company or Internal Revenue Service restrictions, the Executive is
ineligible to continue to be covered under the terms of any such benefit plan or program, or in the
event Executive is eligible but the benefits applicable to Executive under any such plan or program
after termination of employment are not substantially equivalent to the benefits applicable to
Executive immediately prior to termination or, if more favorable to the Executive, during the
three-year period thereafter, the Company shall provide such substantially equivalent benefits, or
such additional benefits as may be necessary to make the Executive whole through other sources.

     (e) Acceleration of Vesting. All stock options, restricted stock awards, long term
incentive plan benefits and any other benefits that are subject to vesting based upon the continued
employment of the Executive shall automatically become vested, unrestricted and/or exercisable, as
the case may be.

     (f) Outplacement Services. Full outplacement services provided by the professional
outplacement consulting firm of Executive’s choosing, to a maximum of $50,000, provided that all
expenses reimbursable under this subsection (vi) must be incurred and reimbursed no later than
December 31 of the second calendar year following the calendar year in which Executive’s employment
is terminated.

     (g) Other Benefits. To the extent not theretofore paid or provided, the Company shall
timely pay or provide to the Executive any other amounts or benefits required to be paid or
provided or which the Executive is eligible to receive under any plan, program, policy or practice
or contract or agreement of the Company and its affiliated companies

     (h) Supplemental Executive Retirement Plan Benefits.

     (i) Accrued Benefit: In the event a Change in Control occurs, the Executive
shall be entitled to payment of the Actuarial Equivalent of the Executive’s vested Accrued
Benefit under the SERP, if any, adjusted as follows to the extent applicable to the
Executive:

     A. Additional Credit. Executive’s benefit and Accrued Benefit under
the SERP shall be computed by crediting the Executive with the Additional Credit
provided in Section 2.17(a) of the SERP; and

     B. Actuarial Equivalent. The Actuarial Equivalent of the payments from
the SERP determined under that Plan and this subsection shall be

11

 

determined by taking into account the reduction for early commencement of
benefits imposed by that Plan and by using reasonable actuarial assumptions. For
purposes of determining the lump sum actuarial equivalent, the corresponding
actuarial assumptions provided in the Retirement Plan (or, to the extent not
provided in that Plan, as provided under GATT) shall be used.

     (ii) Effect. The execution of this Agreement constitutes:

     A. An amendment of the SERP with respect to Executive to effect the provisions
of this Agreement;

     B. An agreement by Executive to the terms of, and consent in accordance with
Section 6.1(a) of the SERP to, the amended and restated SERP adopted by the
Board of Directors as of October 16, 2006, and to the amendments to the SERP
provided in this Agreement;

     C. An agreement by the Company and Executive that Executive may not be removed
from the Additional Credit provisions of the SERP; and

     D. An agreement by the Company and Executive that Executive’s employment with
any successor to the Company shall not cause forfeiture of Executive’s benefits
under the SERP under Section 3.6(a) of the SERP.

Payment of the SERP benefit as provided by this Agreement satisfies the Company’s
obligations to Executive, if any, under the SERP.

     (iii) Limitation. Notwithstanding any other provision of this Agreement, this
subsection (h) does not provide any SERP benefit to Executive if Executive was not an Active
Participant in the SERP at any time within six (6) months prior to the Change in Control,
unless Executive was removed as an Active Participant in the SERP or the SERP was amended or
terminated within six (6) months prior to the Change in Control.

     (i) Definitions. For purposes of this Section 5 of this Agreement:

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

     (ii) “Change in Control” means any one of the following:

     A. The failure of the Continuing Directors at any time to constitute at least a
majority of the members of the Board;

     B. The acquisition by any Person of beneficial ownership (within the meaning of
Rule 13d-3 issued under the Act) of 20% or more of the outstanding common stock of
the Company or the combined voting power of the Company’s outstanding securities
entitled to vote generally in the election of directors;

12

 

     C. The approval by the stockholders of the Company of a reorganization, merger
or consolidation, unless with or into a Permitted Successor; or

     D. The approval by the stockholders of the Company of a complete liquidation
or dissolution of the Company or the sale or disposition of all or substantially all
of its assets other than to a Permitted Successor.

     (iii) “Continuing Directors” means those individuals constituting the Board as of the
Effective Date and any subsequent directors whose election or nomination for election by the
Company’s stockholders was approved by a vote of two-thirds of the individuals who are then
Continuing Directors, but specifically excluding any individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as the term is
used in Rule 14a-11 of Regulation 14A issued under the Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board.

     (iv) “Employee Benefit Plan” means any plan or program established by the Company or a
Subsidiary for the compensation or benefit of its employees.

     (v) “Permitted Successor” means a corporation which, immediately following the
consummation of a Change in Control above, satisfies all of the following criteria:

     A. Sixty percent or more of the outstanding common stock of the corporation and
the combined voting power of the outstanding securities of the corporation entitled
to vote generally in the election of directors (in each case determined immediately
following the consummation of the applicable transaction) is beneficially owned,
directly or indirectly, by all or substantially all of the Persons who were the
beneficial owners of the Company’s outstanding common stock and outstanding
securities entitled to vote generally in the election of directors (respectively)
immediately prior to the applicable transaction;

     B. No Person beneficially owns, directly or indirectly, 20% or more of the
outstanding common stock of the corporation or the combined voting power of the
outstanding securities of the corporation entitled to vote generally in the election
of directors; and

     C. At least a majority of the board of directors is comprised of Continuing
Directors.

     (vi) “Person” has the same meaning as set forth in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended.

     (vii) “Persons Acting as a Group” means owners of a corporation that enters into a
merger, consolidation, purchase or acquisition of stock, or similar business transaction
with the corporation. If a person, including an entity, owns stock in both corporations
that enter into a merger, consolidation, purchase or acquisition of stock, or similar
transaction, such shareholder is considered to be acting as a group with other

13

 

shareholders in a corporation prior to the transaction giving rise to the change and
not with respect to the ownership interest in the other corporation. Persons will not be
considered to be acting as a group solely because they purchase or own stock of the same
corporation at the same time or as a result of the same public offering, or purchase assets
of the same corporation at the same time.

     (viii) “Subsidiary” means any corporation or other entity of which 50% or more of the
outstanding voting stock or voting ownership interest is directly or indirectly owned or
controlled by the Company or by one or more Subsidiaries of the Company.

6. Indemnification. The Company agrees to indemnify the Executive to the fullest extent
provided by Article VI of the Company’s Bylaws, as in effect on the Effective Date, regardless of
whether such Bylaw provisions are hereafter amended, eliminated or held to be invalid as a matter
of Delaware law. The Company’s indemnification obligations shall survive the expiration or
termination of the Term for any reason.

7. Employment Covenants.

     (a) Non-Solicitation. In recognition of the highly competitive nature of the
industries in which the Company conducts its business, and to further protect the goodwill of the
Company and to promote and preserve its legitimate business interests, the Executive agrees that
during the two year period following his termination of employment under circumstances that entitle
the Executive to receive payments under Section 4 or Section 5 of his Agreement, the Executive
shall not:

     (i) directly or indirectly (A) induce any current customer of the Company to patronize
any business directly or indirectly in competition with the Business conducted by the
Company; (B) request or advise any of the current customers to withdraw, curtail or cancel
any business with the Company; or

     (ii) directly or indirectly employ any person who was employed by the Company at or
within the prior six months, or in any manner seek to induce any such person to leave his or
her employment; provided, that, the Executive may hire an employee of the Company or any of
its affiliates who was terminated by the Company or resigned from employment with the
Company so long as the Executive did not directly or indirectly influence such termination
or resignation.

The Executive acknowledges that in the event of his breach of the foregoing covenant, money damages
would be an inadequate remedy. Accordingly, and notwithstanding any other provision of this
Agreement, without prejudice to the rights of the Company to seek such damages or other remedies
available to it, the Company shall be entitled to seek injunctive relief, specific performance or
other equitable relief in any proceeding which the Company may bring to enforce the foregoing
covenant not to compete on its express and explicit terms without the necessity of posting a bond.

     (b) Confidential Information. Executive agrees that all Confidential Information
shall be the sole property of the Company, and Executive agrees that he shall not during the Term
nor thereafter, use for his benefit or the benefit of others or disclose at any time Confidential

14

 

Information or take with him upon termination of this Agreement any records, papers, reports,
lists, computer tapes or disks or any other materials of any nature that contain any Confidential
Information. “Confidential Information” shall mean all information other than General Knowledge
(defined below) relating to the Company’s: (i) business or existing projects including all those in
various stages of research and development including all unpublished plans for new products or
services; (ii) financial information, internal business procedures and other information which
relate to the way the Company conducts its business and which are not publicly available; (iii)
data written by the Company’s employees or others, including source codes, object codes, marketing
and development plans, budgets, forecasts, forecast assumptions and future plans and potential
strategies of the Company which have been or are being discussed; (iv) unpublished pricing data;
(v) identity, buying habits and practices of the Company, its suppliers and customers to the extent
not publicly available; (vi) information regarding the skills or compensation of employees of the
Company; (vii) the Intellectual Property of the Company and any information pertaining thereto;
(viii) materials and information supplied by customers or clients to the Company that contain data
regarding any research, products, procedures or the like; and (ix) any other information deemed
confidential by the Company by marking such information with the word “Confidential” or similar
word; by orally advising the Executive that the information is confidential or by treating the
information in such a manner that the Executive should reasonably believe it to be deemed
confidential by the Company. “General Knowledge” shall mean (i) general skills or experience
gained during Executive’s employment with, consultation for or work for the Company; and (ii)
information and data publicly available.

     (c) Records. All files, records, memoranda and other documents regarding former,
existing or prospective customers of the Company or relating in any manner whatsoever to
Confidential Information (collectively, “Records”), whether prepared by Executive or otherwise
coming into his possession, shall be the exclusive property of the Company. All Records shall be
immediately placed in the physical possession of the Company upon the termination of Executive’s
employment with the Company, or at any other time specified by the Board. The retention and use by
Executive of duplicates in any form of Records is prohibited after the termination of Executive’s
employment with the Company.

     (d) Breach. Executive hereby recognizes and acknowledges that irreparable injury or
damage shall result to the Company in the event of a breach or threatened breach by Executive of
any of the terms or provisions of this Section 7, and Executive therefore agrees that the Company
shall be entitled to an injunction restraining Executive from engaging in any activity constituting
such breach or threatened breach. Nothing contained herein shall be construed as prohibiting the
Company from pursuing any other remedies available to the Company at law or in equity for such
breach or threatened breach, including but not limited to, the recovery of damages from Executive
and, if Executive is an employee of the Company, the termination of his employment with the Company
in accordance with the terms and provisions of this Agreement.

     (e) Survival. Notwithstanding the termination of the employment of Executive or the
termination of this Agreement, the provisions of this Section 7 shall survive and be binding upon
Executive unless a written agreement which specifically refers to the termination of the
obligations and covenants of this Section 7 is executed by the Company.

15

 

8. Mitigation. Except as otherwise provided in this Agreement pertaining to medical and
other welfare benefits, in no event shall the Executive be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and such amounts shall not be reduced whether or not the Executive
obtains other employment. The Company agrees to pay as incurred, to the full extent permitted by
law, all reasonable legal fees and expenses which the Executive may reasonably incur as a result of
any contest by (i) the Company, provided that the Executive prevails in at least one material
issue, (ii) the Executive, provided that the Executive prevails in at least one material issue, or
(iii) others, of the validity or enforceability of, or liability under, any provision of this
Agreement (including, without limitation, as a result of any contest by the Executive about the
amount of any payment pursuant to this Agreement), plus in each case interest on any delayed
payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Internal
Revenue Code of 1986, as amended (the “Code”).

9. Successors.

     (a) This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns. The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had
taken place, and the failure of the Company to do so shall be deemed Good Reason. As used in this
Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its
business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation
of law, or otherwise.

10. Miscellaneous.

     (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware, without reference to principles of conflict of laws. Any legal action, suit or
proceeding arising out of or relating to this Agreement shall be instituted in the state or federal
courts in the States of either Michigan or Delaware, and the parties agree not to assert, in any
action, suit or proceeding by way of motion, as a defense or otherwise, any claim that either party
is not personally subject to the jurisdiction of such court, or that such action, suit or
proceeding is brought in an inconvenient forum, or that the venue is improper or that the subject
matter hereof cannot be enforced in such court. The parties hereby irrevocably submit to the
jurisdiction of any such court in any such action, suit or proceeding and agree that service of all
process in any such action, suit or proceeding in any such court may be made by registered or
certified mail, return receipt requested, to its address set forth in this Agreement, such service
being hereby acknowledged by such party to be sufficient for personal jurisdiction in any action
against such party in any such court and to be otherwise effective and binding service in every
respect.

16

 

     (b) The captions of this Agreement are not part of the provisions hereof and shall have no
force or effect. This Agreement may not be amended or modified otherwise than by a written
agreement executed by the parties hereto or their respective successors and legal representatives.

     (c) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party, by commercial overnight courier or by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

If to the Executive:

James O’Leary

c/o Berkowitz, Trager & Trager, LLC

8 Wright Street, 2nd Floor

Westport, Connecticut 06880

Attention: Richard Berkowitz, Esq.

If to the Company:

Kaydon Corporation

315 East Eisenhower Parkway, Suite 300

Ann Arbor, Michigan 48108

Attention: Vice President-Administration

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

     (d) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (e) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (f) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to terminate employment
for Good Reason pursuant to Section 4(c) of this Agreement, shall not be deemed to be a waiver of
such provision or right or any other provision or right of this Agreement.

     (g) This Agreement supersedes any and all other prior or contemporaneous agreements, either
oral or in writing, between the parties hereto with respect to the subject matter hereof. This
Agreement may be executed via facsimile transmission signature and in counterparts, each of which
shall be deemed to be an original but all of which together will constitute one and the same
instrument.

11. Special Rules Regarding Section 409A of the Internal Revenue Code. Notwithstanding
anything herein to the contrary, in the event any payments or benefits required to be provided

17

 

hereunder are deemed to constitute payments of “nonqualified deferred compensation” that is subject
to the requirements of Section 409A of the Internal Revenue Code, then the time and manner in which
such payment or benefit is provided shall be adjusted, to the extent reasonably possible, so that
payment or distribution is made at a time and in a manner that is consistent with the requirements
of such Section 409A (and applicable proposed or final Treasury regulations or other guidance
issued or to be issued by the Internal Revenue Service). This Section 11 may, for example, require
that certain payments to Executive following his termination of employment be accumulated and
deferred without interest until the first day of the seventh month following the Date of
Termination, if, at the Date of Termination Executive was a “specified employee” (as that term is
used for purposes of Section 409A(2)(B)(i)).

12. Certain Additional Payments by the Company.

     (a) Tax Reimbursement Payment. Anything in this Agreement to the contrary
notwithstanding, in the event that any amount or benefit paid, payable, or to be paid, or
distributed, distributable, or to be distributed to or with respect to Executive by the Company
(whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with
the Company, or with any person whose actions result in a change of ownership covered by Code
Section 280G or any person affiliated with the Company or such person) as a result of a change in
ownership of the Company or a change in ownership of a direct or indirect parent thereof
(collectively, the “Covered Payments”) is or becomes subject to the excise tax imposed by or under
Section 4999 of the Code (or any similar tax that may hereafter be imposed), and/or any interest or
penalties with respect to such excise tax (such excise tax, together with such interest and
penalties, is hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay
to Executive an additional amount (the “Tax Reimbursement Payment”) such that after payment by
Executive of all taxes (including, without limitation, any interest or penalties and any Excise Tax
imposed on or attributable to the Tax Reimbursement Payment itself) Executive retains an amount of
the Tax Reimbursement Payment equal to the sum of (i) the amount of the Excise Tax imposed upon the
Covered Payments, and (ii) without duplication, an amount equal to the product of (A) any
deductions disallowed for federal, state or local income tax purposes because of the inclusion of
the Tax Reimbursement Payment in Executive’s adjusted gross income, and (B) the highest applicable
marginal rate of federal, state or local income taxation, respectively, for the calendar year in
which the Tax Reimbursement Payment is made or is to be made. The intent of this Section 12 is
that (a) Executive, after paying his federal, state and local income tax and any payroll taxes on
Executive, will be in the same position as if he was not subject to the Excise Tax under Section
4999 of the Code and did not receive the extra payments pursuant to this Section 12, and (b) that
Executive should never be “out-of-pocket” with respect to any tax or other amount subject to this
Section 12, whether payable to any taxing authority or repayable to the Company, and this Section
12 shall be interpreted accordingly.

     (b) Certain Covered Payments. Except as otherwise provided in Section 12(a), for
purposes of determining whether any of the Covered Payments will be subject to the Excise Tax and
the amount of such Excise Tax,

     (i) such Covered Payments will be treated as “parachute payments” (within the meaning
of Section 280G(b)(2) of the Code) and such payments in excess of the Code

18

 

Section 280G(b)(3) “base amount” shall be treated as subject to the Excise Tax, unless,
and except to the extent that, the Company’s independent certified public accountants
appointed prior to the change in ownership covered by Code Section 280G(b)(2) or legal
counsel (reasonably acceptable to Executive) appointed by such public accountants (the
“Accountant”), deliver a written opinion to Executive, reasonably satisfactory to
Executive’s legal counsel, that Executive has a reasonable basis to claim that the Covered
Payments (in whole or in part) (A) do not constitute “parachute payments”, (B) represent
reasonable compensation for services actually rendered (within the meaning of Section
280G(b)(4) of the Code) in excess of the “base amount” allocable to such reasonable
compensation, or (C) such “parachute payments” are otherwise not subject to such Excise Tax
(with appropriate legal authority, detailed analysis and explanation provided therein by the
Accountants); and

     (ii) the value of any Covered Payments which are non-cash benefits or deferred payments
or benefits shall be determined by the Accountant in accordance with the principles of
Section 280G of the Code.

     (c) Applicable Tax Rates, Etc. For purposes of determining the amount of the Tax
Reimbursement Payment, Executive shall be deemed:

     (i) to pay federal, state and/or local income taxes at the highest applicable marginal
rate of income taxation for the calendar year in which the Tax Reimbursement Payment is made
or is to be made; and

     (ii) to have otherwise allowable deductions for federal, state and local income tax
purposes at least equal to those disallowed due to the inclusion of the Tax Reimbursement
Payment in Executive’s adjusted gross income.

     (d) Correction of Tax Reimbursement Payment; Refunds.

     (i) (A) In the event that prior to the time Executive has filed any of his tax returns
for the calendar year in which the change in ownership event covered by Code Section
280G(b)(2) occurred, the Accountant determines, for any reason whatever, the correct amount
of the Tax Reimbursement Payment to be less than the amount determined at the time the Tax
Reimbursement Payment was made, Executive shall repay to the Company, at the time that the
amount of such reduction in Tax Reimbursement Payment is determined by the Accountant, the
portion of the prior Tax Reimbursement Payment attributable to such reduction (including the
portion of the Tax Reimbursement Payment attributable to the Excise Tax and federal, state
and local income tax imposed on the portion of the Tax Reimbursement Payment being repaid by
Executive, using the assumptions and methodology utilized to calculate the Tax Reimbursement
Payment (unless manifestly erroneous)), plus interest on the amount of such repayment at the
rate provided in Section 1274(b)(2)(B) of the Code.

     (B) In the event that the determination set forth in (A) above is made by the
Accountant after the filing by Executive of any of his tax returns for the calendar year in
which the change in ownership event covered by Code Section 280G(b)(2)

19

 

occurred but prior to one (1) year after the occurrence of such change in ownership,
Executive shall file at the request of the Company an amended tax return in accordance with
the Accountant’s determination, but no portion of the Tax Reimbursement Payment shall be
required to be refunded to the Company until actual refund or credit of such portion has
been made to Executive, and interest payable to the Company shall not exceed the interest
received or credited to Executive by such tax authority for the period it held such portion
(less any tax Executive must pay on such interest and which he is unable to deduct as a
result of payment of the refund).

     (C) In the event Executive receives a refund pursuant to (B) above and repays such
amount to the Company, Executive shall thereafter file for refunds or credits by reason of
the repayments to the Company.

     (D) Executive and the Company shall mutually agree upon the course of action, if any,
to be pursued (which shall be at the expense of the Company if Executive’s claim for refund
or credit is denied.

     (ii) In the event that the Excise Tax is later determined by the Accountants or the
Internal Revenue Service to exceed the amount taken into account hereunder at the time the
Tax Reimbursement Payment is made (including by reason of any payment the existence or
amount of which cannot be determined at the time of the Tax Reimbursement Payment), the
Company shall make an additional Tax Reimbursement Payment in respect of such excess (plus
any interest or penalties payable with respect to such excess) once the amount of such
excess is finally determined.

     (iii) In the event of any controversy with the Internal Revenue Service (or other
taxing authority) under this Section 12, subject to subpart (d)(i)(D) above, Executive shall
permit the Company to control issues related to this Section 12 (at its expense), provided
that such issues do not potentially materially adversely affect Executive, but Executive
shall control any other issues. In the event the issues are interrelated, Executive and the
Company shall in good faith cooperate so as not to jeopardize resolution of either issue,
but if the parties cannot agree Executive shall make the final determination with regard to
the issues. In the event of any conference with any taxing authority as to the Excise Tax
or associated income taxes, Executive shall permit the representative of the Company to
accompany him and Executive and his representative shall cooperate with the Company and its
representative.

     (iv) With regard to any initial filing for a refund or any other action required
pursuant to this Section 12 (other than by mutual agreement) or, if not required, agreed to
by the Company and Executive, Executive shall cooperate fully with the Company, provided
that the foregoing shall not apply to actions that are provided herein to be at the sole
discretion of Executive.

     (e) Time of Payment. The Tax Reimbursement Payment, or any portion thereof, payable
by the Company shall be paid not later than the fifth (5th) day following the determination by the
Accountant, and any payment made after such fifth (5th) day shall bear interest at the rate
provided in Code Section 1274(b)(2)(B). The Company shall use its best

20

 

efforts to cause the Accountant to promptly deliver the initial determination required
hereunder and, if not delivered, within ninety (90) days after the change in ownership event
covered by Section 280G(b)(2) of the Code, the Company shall pay Executive the Tax Reimbursement
Payment set forth in an opinion from counsel recognized as knowledgeable in the relevant areas
selected by Executive, and reasonably acceptable to the Company, within five (5) days after
delivery of such opinion. The amount of such payment shall be subject to later adjustment in
accordance with the determination of the Accountant as provided herein.

     (f) Fees, Etc. The Company shall be responsible for all charges of the Accountant and
if clause (e) above is applicable the reasonable charges for the opinion given by Executive’s
counsel.

     (g) Further Agreement. The Company and Executive shall mutually agree on and
promulgate further guidelines in accordance with this Section 12 to the extent, if any, necessary
to effect the reversal of excessive or shortfall Tax Reimbursement Payments. The foregoing shall
not in any way be inconsistent with Section 12(d)(i)(D) hereof.

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

	 	 	 	 	 
	 	KAYDON CORPORATION

 	 
	 	By:  	/S/ JOHN F. BROCCI
 	 
	 	Name:  John F. Brocci 	
	 	Title:    Vice President Administration and Secretary 	 
	 
	 
	 	EXECUTIVE:

/S/ JAMES O’LEARY

JAMES O’LEARY

 	 
	 	 	 
	 	 	 
	 	 	 
	 

21exv4w18

 

Exhibit 4.18

IOMAI CORPORATION

and

                                                            , as Trustee

INDENTURE

Dated
as of
                    ,
                

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	1.1. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.2. OTHER DEFINITIONS
	 	 	5	 
	 
	 	 	 	 
	1.3. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT
	 	 	5	 
	 
	 	 	 	 
	1.4. RULES OF CONSTRUCTION
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 2 THE SECURITIES
	 	 	6	 
	 
	 	 	 	 
	2.1. ISSUABLE IN SERIES
	 	 	6	 
	 
	 	 	 	 
	2.2. ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES
	 	 	7	 
	 
	 	 	 	 
	2.3. EXECUTION AND AUTHENTICATION
	 	 	9	 
	 
	 	 	 	 
	2.4. REGISTRAR AND PAYING AGENT
	 	 	10	 
	 
	 	 	 	 
	2.5. PAYING AGENT TO HOLD ASSETS IN TRUST
	 	 	11	 
	 
	 	 	 	 
	2.6. SECURITYHOLDER LISTS
	 	 	11	 
	 
	 	 	 	 
	2.7. TRANSFER AND EXCHANGE
	 	 	11	 
	 
	 	 	 	 
	2.8. REPLACEMENT SECURITIES
	 	 	12	 
	 
	 	 	 	 
	2.9. OUTSTANDING SECURITIES
	 	 	12	 
	 
	 	 	 	 
	2.10. WHEN TREASURY SECURITIES DISREGARDED; DETERMINATION OF HOLDERS’
ACTION
	 	 	13	 
	 
	 	 	 	 
	2.11. TEMPORARY SECURITIES
	 	 	13	 
	 
	 	 	 	 
	2.12. CANCELLATION
	 	 	13	 
	 
	 	 	 	 
	2.13. PAYMENT OF INTEREST; DEFAULTED INTEREST; COMPUTATION OF INTEREST
	 	 	14	 
	 
	 	 	 	 
	2.14. CUSIP NUMBER
	 	 	14	 
	 
	 	 	 	 
	2.15. PROVISIONS FOR GLOBAL SECURITIES
	 	 	14	 
	 
	 	 	 	 
	2.16. PERSONS DEEMED OWNERS
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 3 REDEMPTION
	 	 	16	 
	 
	 	 	 	 
	3.1. NOTICES TO TRUSTEE
	 	 	16	 
	 
	 	 	 	 
	3.2. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED
	 	 	16	 
	 
	 	 	 	 
	3.3. NOTICE OF REDEMPTION
	 	 	17	 
	 
	 	 	 	 
	3.4. EFFECT OF NOTICE OF REDEMPTION
	 	 	18	 
	 
	 	 	 	 
	3.5. DEPOSIT OF REDEMPTION PRICE
	 	 	18	 
	 
	 	 	 	 
	3.6. SECURITIES REDEEMED IN PART
	 	 	18	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	PAGE	 
	ARTICLE 4 COVENANTS
	 	 	18	 
	 
	 	 	 	 
	4.1. PAYMENT OF SECURITIES
	 	 	18	 
	 
	 	 	 	 
	4.2. SEC REPORTS
	 	 	19	 
	 
	 	 	 	 
	4.3. WAIVER OF STAY, EXTENSION OR USURY LAWS
	 	 	19	 
	 
	 	 	 	 
	4.4. COMPLIANCE CERTIFICATE
	 	 	19	 
	 
	 	 	 	 
	4.5. CORPORATE EXISTENCE
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 5 SUCCESSOR CORPORATION
	 	 	20	 
	 
	 	 	 	 
	5.1. LIMITATION ON CONSOLIDATION, MERGER AND SALE OF ASSETS
	 	 	20	 
	 
	 	 	 	 
	5.2. SUCCESSOR PERSON SUBSTITUTED
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 6 DEFAULTS AND REMEDIES
	 	 	21	 
	 
	 	 	 	 
	6.1. EVENTS OF DEFAULT
	 	 	21	 
	 
	 	 	 	 
	6.2. ACCELERATION
	 	 	22	 
	 
	 	 	 	 
	6.3. REMEDIES
	 	 	23	 
	 
	 	 	 	 
	6.4. WAIVER OF PAST DEFAULTS AND EVENTS OF DEFAULT
	 	 	23	 
	 
	 	 	 	 
	6.5. CONTROL BY MAJORITY
	 	 	23	 
	 
	 	 	 	 
	6.6. LIMITATION ON SUITS
	 	 	24	 
	 
	 	 	 	 
	6.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT
	 	 	24	 
	 
	 	 	 	 
	6.8. COLLECTION SUIT BY TRUSTEE
	 	 	24	 
	 
	 	 	 	 
	6.9. TRUSTEE MAY FILE PROOFS OF CLAIM
	 	 	25	 
	 
	 	 	 	 
	6.10. PRIORITIES
	 	 	25	 
	 
	 	 	 	 
	6.11. UNDERTAKING FOR COSTS
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 7 TRUSTEE
	 	 	26	 
	 
	 	 	 	 
	7.1. DUTIES OF TRUSTEE
	 	 	26	 
	 
	 	 	 	 
	7.2. RIGHTS OF TRUSTEE
	 	 	27	 
	 
	 	 	 	 
	7.3. INDIVIDUAL RIGHTS OF TRUSTEE
	 	 	28	 
	 
	 	 	 	 
	7.4. TRUSTEE’S DISCLAIMER
	 	 	28	 
	 
	 	 	 	 
	7.5. NOTICE OF DEFAULT
	 	 	28	 
	 
	 	 	 	 
	7.6. REPORTS BY TRUSTEE TO HOLDERS
	 	 	29	 
	 
	 	 	 	 
	7.7. COMPENSATION AND INDEMNITY
	 	 	29	 
	 
	 	 	 	 
	7.8. REPLACEMENT OF TRUSTEE
	 	 	29	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	PAGE	 
	7.9. SUCCESSOR TRUSTEE BY CONSOLIDATION, MERGER OR CONVERSION
	 	 	30	 
	 
	 	 	 	 
	7.10. ELIGIBILITY; DISQUALIFICATION
	 	 	31	 
	 
	 	 	 	 
	7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY
	 	 	31	 
	 
	 	 	 	 
	7.12. PAYING AGENTS
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 8 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	31	 
	 
	 	 	 	 
	8.1. WITHOUT CONSENT OF HOLDERS
	 	 	31	 
	 
	 	 	 	 
	8.2. WITH CONSENT OF HOLDERS
	 	 	32	 
	 
	 	 	 	 
	8.3. COMPLIANCE WITH TRUST INDENTURE ACT
	 	 	33	 
	 
	 	 	 	 
	8.4. REVOCATION AND EFFECT OF CONSENTS
	 	 	34	 
	 
	 	 	 	 
	8.5. NOTATION ON OR EXCHANGE OF SECURITIES
	 	 	34	 
	 
	 	 	 	 
	8.6. TRUSTEE
TO SIGN AMENDMENTS, ETC.
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 9 DISCHARGE OF INDENTURE; DEFEASANCE
	 	 	35	 
	 
	 	 	 	 
	9.1. DISCHARGE OF INDENTURE
	 	 	35	 
	 
	 	 	 	 
	9.2. LEGAL DEFEASANCE
	 	 	35	 
	 
	 	 	 	 
	9.3. COVENANT DEFEASANCE
	 	 	35	 
	 
	 	 	 	 
	9.4. CONDITIONS TO LEGAL DEFEASANCE OR COVENANT DEFEASANCE
	 	 	36	 
	 
	 	 	 	 
	9.5. DEPOSITED MONEY AND U.S. AND FOREIGN GOVERNMENT OBLIGATIONS TO BE HELD
IN TRUST;    OTHER MISCELLANEOUS PROVISIONS
	 	 	37	 
	 
	 	 	 	 
	9.6. REINSTATEMENT
	 	 	38	 
	 
	 	 	 	 
	9.7. MONEYS HELD BY PAYING AGENT
	 	 	38	 
	 
	 	 	 	 
	9.8. MONEYS HELD BY TRUSTEE
	 	 	38	 
	 
	 	 	 	 
	ARTICLE 10 MISCELLANEOUS
	 	 	39	 
	 
	 	 	 	 
	10.1. TRUST INDENTURE ACT CONTROLS
	 	 	39	 
	 
	 	 	 	 
	10.2. NOTICES
	 	 	39	 
	 
	 	 	 	 
	10.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS
	 	 	40	 
	 
	 	 	 	 
	10.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT
	 	 	40	 
	 
	 	 	 	 
	10.5. STATEMENT REQUIRED IN CERTIFICATE AND OPINION
	 	 	41	 
	 
	 	 	 	 
	10.6. RULES BY TRUSTEE AND AGENTS
	 	 	41	 
	 
	 	 	 	 
	10.7. BUSINESS DAYS; LEGAL HOLIDAYS; PLACE OF PAYMENT
	 	 	41	 
	 
	 	 	 	 
	10.8. GOVERNING LAW
	 	 	41	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	PAGE	 
	10.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS
	 	 	42	 
	 
	 	 	 	 
	10.10. NO RECOURSE AGAINST OTHERS
	 	 	42	 
	 
	 	 	 	 
	10.11. SUCCESSORS
	 	 	42	 
	 
	 	 	 	 
	10.12. MULTIPLE COUNTERPARTS
	 	 	42	 
	 
	 	 	 	 
	10.13. TABLE OF CONTENTS, HEADINGS, ETC
	 	 	42	 
	 
	 	 	 	 
	10.14. SEVERABILITY
	 	 	42	 
	 
	 	 	 	 
	10.15. SECURITIES IN A FOREIGN CURRENCY OR IN EURO
	 	 	42	 
	 
	 	 	 	 
	10.16. JUDGMENT CURRENCY
	 	 	43	 

-iv-

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA SECTION	 	INDENTURE SECTION
	310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N/A
	(a)(4)
	 	N/A
	(a)(5)
	 	7.10
	(b)
	 	7.8; 7.10; 10.4
	(b)(1)
	 	7.10
	(b)(9)
	 	7.10
	311(a)
	 	7.11
	(b)
	 	7.11
	312(a)
	 	2.6
	(b)
	 	10.3
	(c)
	 	10.3
	313(a)
	 	7.6
	(b)(1)
	 	7.6
	(b)(2)
	 	7.6
	(c)
	 	7.6; 10.4
	(d)
	 	7.6
	314(a)
	 	4.2; 4.4; 10.4
	(b)
	 	N/A
	(c)(1)
	 	10.4; 10.5
	(c)(2)
	 	10.4; 10.5
	(c)(3)
	 	N/A
	(d)
	 	N/A
	(e)
	 	10.5
	(f)
	 	N/A
	315(a)
	 	7.1, 7.2
	(b)
	 	7.5; 10.2
	(c)
	 	7.1
	(d)
	 	6.5; 7.1; 7.2
	(e)
	 	6.11
	316(a)(last sentence)
	 	2.10
	(a)(1)(A)
	 	6.5
	(a)(1)(B)
	 	6.4
	(a)(2)
	 	8.2
	(b)
	 	6.7
	(c)
	 	8.4
	317(a)(1)
	 	6.8
	(a)(2)
	 	6.9
	(b)
	 	2.5; 7.12
	318(a)
	 	10.1

 

			
	N/A means not applicable

Note: This Cross-Reference Table shall not, for any purpose, be deemed to be a part of the
Indenture.

-v-

 

     INDENTURE, dated as of                                         ,                     , by and between
Iomai Corporation, a Delaware
corporation, as Issuer (the “Company”) and                                         , a                                          organized
under the laws of                                         , as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its debentures, notes or other evidences of indebtedness to be
issued in one or more series (the “Securities”), as herein provided, up to such principal amount as
may from time to time be authorized in or pursuant to one or more resolutions of the Board of
Directors or by supplemental indenture.

     All things necessary to make this Indenture a valid agreement of the Company in accordance
with its terms have been done, and the execution and delivery thereof have been in all respects
duly authorized by the parties hereto.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

1.1. DEFINITIONS.

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

     “Agent” means any Registrar, Paying Agent, co-registrar or agent for service of notices and
demands.

     “Board of Directors” means the Board of Directors of the Company or any committee duly
authorized to act therefor.

     “Board Resolution” means a copy of a resolution certified pursuant to an Officers’ Certificate
to have been duly adopted by the Board of Directors of the Company and to be in full force and
effect on the date of such certification and delivered to the Trustee.

     “Capital Stock” means, with respect to any Person, any and all shares or other equivalents

 

 

(however designated) of capital stock, partnership interests or any other participation, right
or other interest in the nature of an equity interest in such Person or any option, warrant or
other security convertible into any of the foregoing.

     “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces such party pursuant to Article 5 of this Indenture and thereafter means the
successor and any other primary obligor on the Securities.

     “Company Order” means a written order signed in the name of the Company by two Officers, one
of whom must be its Chief Executive Officer or its Chief Financial Officer.

     “Company Request” means any written request signed in the name of the Company by its Chief
Executive Officer, its President, any Vice President, its Chief Financial Officer or its Treasurer
and attested to by the Secretary or any Assistant Secretary of the Company.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered.

     “Default” means any event that is, or with the passing of time or giving of notice or both
would be, an Event of Default.

     “Depository” means, with respect to the Securities of any Series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated as Depository for
such Series by the Company, which Depository shall be a clearing agency registered under the
Exchange Act, until a successor Depository shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Depository” shall mean each Person who is then a
Depository hereunder, and if at any time there is more than one such Person, such Persons.

     “Dollars” means the currency of the United States of America.

     “Euro” means the single currency to be introduced at the start of the third stage of economic
and monetary union pursuant to the treaty establishing the European Economic Community, as amended
by the Treaty on European Union signed at Maastricht on February 7, 1992.

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

     “Foreign Currency” means any currency or currency unit issued by a government other than the
government of the United States of America.

     “Foreign Government Obligations” means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused
to be issued such currency for the payment of which obligations its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is unconditionally guaranteed as a
full faith and credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer thereof.

-2-

 

     “GAAP” means generally accepted accounting principles consistently applied as in effect in the
United States from time to time.

     “Global Security” or “Global Securities” means a Security or Securities, as the case may be,
in the form established pursuant to Section 2.2, evidencing all or part of a Series of Securities
issued to the Depository for such Series or its nominee, and registered in the name of such
Depository or nominee, and bearing the legend set forth in Section 2.15(c) (or such legend as may
be specified as contemplated by Section 2.2 for such Securities).

     “Holder” or “Securityholder” means the Person in whose name a Security is registered on the
Registrar’s books.

     “Indebtedness” means (without duplication), with respect to any Person, any indebtedness at
any time outstanding, secured or unsecured, contingent or otherwise, which is for borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such Person or only to
a portion thereof), or evidenced by bonds, notes, debentures or similar instruments or representing
the balance deferred and unpaid of the purchase price of any property (excluding any balances that
constitute accounts payable or trade payables, and other accrued liabilities arising in the
ordinary course of business) if and to the extent any of the foregoing indebtedness would appear as
a liability upon a balance sheet of such Person prepared in accordance with GAAP.

     “Indenture” means this Indenture as amended, restated or supplemented from time to time.

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

     “Lien” means, with respect to any property or assets of any Person, any mortgage or deed of
trust, pledge, hypothecation, assignment, deposit arrangement, security interest, lien, charge,
easement, encumbrance, preference, priority, or other security agreement or preferential
arrangement of any kind or nature whatsoever on or with respect to such property or assets
(including, without limitation, any capitalized lease obligation, conditional sales, or other title
retention agreement having substantially the same economic effect as any of the foregoing).

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

     “Officer” means the Chief Executive Officer, the President, any Vice President, the Chief
Financial Officer, the Treasurer or the Secretary of the Company or any other officer designated by
the Board of Directors, as the case may be.

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by the
Chairman, Chief Executive Officer, the President or any Senior or Executive Vice President, and the
Chief Financial Officer or any Treasurer of such Person that shall comply with applicable
provisions of this Indenture.

-3-

 

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

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

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

     “Responsible Officer” when used with respect to the Trustee, means any officer within the
corporate trust department or division of the Trustee (or any successor group of the Trustee) or
any other officer of the Trustee customarily performing functions similar to those performed by any
of the above designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his knowledge of and
familiarity with the particular subject.

     “SEC” means the United States Securities and Exchange Commission as constituted from time to
time or any successor performing substantially the same functions.

     “Securities” means the securities that are issued under this Indenture, as amended or
supplemented from time to time pursuant to this Indenture.

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

     “Series” or “Series of Securities” means each series of debentures, notes or other debt
instruments of the Company created pursuant to Sections 2.1 or 2.2 hereof.

     “Significant Subsidiary” means (i) any direct or indirect Subsidiary of the Company that would
be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such regulation is in effect on the date hereof, or (ii) any
group of direct or indirect Subsidiaries of the Company that, taken together as a group, would be a
“significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant
to the Securities Act, as such regulation is in effect on the date hereof.

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

     “Subsidiary” of any specified Person means any corporation, limited liability company,
partnership, joint venture, association or other business entity, whether now existing or hereafter
organized or acquired, (i) in the case of a corporation, of which more than 50% of the total voting
power of the Capital Stock entitled (without regard to the occurrence of any contingency) to vote
in the election of directors thereof is held, directly or indirectly by such Person or any of

-4-

 

its Subsidiaries; or (ii) in the case of a partnership, joint venture, association or other
business entity, with respect to which such Person or any of its Subsidiaries has the power to
direct or cause the direction of the management and policies of such entity by contract or
otherwise or if in accordance with GAAP such entity is consolidated with such Person for financial
statement purposes.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Section 77aaa-77bbbb) as in effect
on the date of this Indenture (except as provided in Section 8.3 hereof).

     “Trustee” means the party named as such in this Indenture until a successor replaces it
pursuant to this Indenture and thereafter means the successor, 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.

     “U.S. Government Obligations” means direct non-callable obligations of, or non-callable
obligations guaranteed by, the United States of America for the payment of which obligation or
guarantee the full faith and credit of the United States of America is pledged.

1.2. OTHER DEFINITIONS.

     The definitions of the following terms may be found in the sections indicated as follows:

	 	 	 
	TERM	 	DEFINED IN SECTION
	“Bankruptcy Law”
	 	6.1
	“Business Day”
	 	10.7
	“Covenant Defeasance”
	 	9.3
	“Custodian”
	 	6.1
	“Event of Default”
	 	6.1
	“Journal”
	 	10.15
	“Judgment Currency”
	 	10.16
	“Legal Defeasance”
	 	9.2
	“Legal Holiday”
	 	10.7
	“Market Exchange Rate”
	 	10.15
	“New York Banking Day”
	 	10.16
	“Paying Agent”
	 	2.4
	“Place of Payment”
	 	10.7
	“Registrar”
	 	2.4
	“Required Currency”
	 	10.16
	“Service Agent”
	 	2.4

     1.3. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

     Whenever this Indenture refers to a provision of the TIA, the portion of such provision
required to be incorporated herein in order for this Indenture to be qualified under the TIA is
incorporated by reference in and made a part of this Indenture. The following TIA terms used in
this Indenture have the following meanings:

-5-

 

     “Commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture securityholder” means a Holder or Securityholder.

     “indenture to be qualified” means this Indenture.

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

     “obligor on the indenture securities” means the Company.

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

1.4. RULES OF CONSTRUCTION.

     Unless the context otherwise requires:

          (1) a term has the meaning assigned to it herein, whether defined expressly or by reference;

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

          (3) “or” is not exclusive;

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

          (5) words used herein implying any gender shall apply to each gender; and

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

ARTICLE 2

THE SECURITIES

2.1. ISSUABLE IN SERIES.

     The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of
a Series shall be identical except as may be set forth in a Board Resolution, a supplemental
indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. In the case of Securities of a Series to be issued
from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture may
provide for the method by which specified terms (such as interest rate, Stated

-6-

 

Maturity, record date or date from which interest shall accrue) are to be determined.
Securities may differ between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the Indenture.

2.2. ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES.

     At or prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection 2.2(1) and either as to such
Securities within the Series or as to the Series generally in the case of Subsections 2.2(2)
through 2.2(24)) by a Board Resolution, a supplemental indenture or an Officers’ Certificate, in
each case, pursuant to authority granted under a Board Resolution:

          (1) the title of the Series (which shall distinguish the Securities of that particular Series
from the Securities of any other Series);

          (2) any limit upon the aggregate principal amount of the Securities of the Series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series
pursuant to Section 2.7, 2.8, 2.11, 3.6 or 8.5);

          (3) the price or prices (expressed as a percentage of the principal amount thereof) at which
the Securities of the Series will be issued;

          (4) the date or dates on which the principal of the Securities of the Series is payable;

          (5) the rate or rates (which may be fixed or variable) per annum or, if applicable, the method
used to determine such rate or rates (including, but not limited to, any commodity, commodity
index, stock exchange index or financial index) at which the Securities of the Series shall bear
interest, if any, the date or dates from which such interest, if any, shall accrue, the date or
dates on which such interest, if any, shall commence and be payable and any regular record date for
the interest payable on any Interest Payment Date;

          (6) the place or places where the principal of and interest and premium, if any, on the
Securities of the Series shall be payable, or the method of such payment, if by wire transfer, mail
or other means;

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

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

-7-

 

          (9) the dates, if any, on which and the price or prices at which the Securities of the Series
will be repurchased by the Company at the option of the Holders thereof and other detailed terms
and provisions of such repurchase obligations;

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

          (11) the forms of the Securities of the Series in bearer (if to be issued outside of the
United States) or fully registered form (and, if in fully registered form, whether the Securities
will be issuable as Global Securities);

          (12) if other than the principal amount thereof, the portion of the principal amount of the
Securities of the Series that shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 6.2;

          (13) the currency of denomination of the Securities of the Series, which may be Dollars or any
Foreign Currency, including, but not limited to, the Euro, and if such currency of denomination is
a composite currency other than the Euro, the agency or organization, if any, responsible for
overseeing such composite currency;

          (14) the designation of the currency, currencies or currency units in which payment of the
principal of and interest and premium, if any, on the Securities of the Series will be made;

          (15) if payments of principal of or interest or premium, if any, on the Securities of the
Series are to be made in one or more currencies or currency units other than that or those in which
such Securities are denominated, the manner in which the exchange rate with respect to such
payments will be determined;

          (16) the manner in which the amounts of payment of principal of or interest and premium, if
any, on the Securities of the Series will be determined, if such amounts may be determined by
reference to an index based on a currency or currencies or by reference to a commodity, commodity
index, stock exchange index or financial index;

          (17) the provisions, if any, relating to any collateral provided for the Securities of the
Series;

          (18) any addition to or change in the covenants set forth in Articles 4 or 5 that applies to
Securities of the Series;

          (19) any addition to or change in the Events of Default which applies to any Securities of the
Series and any change in the right of the Trustee or the requisite Holders of such Securities to
declare the principal amount thereof due and payable pursuant to Section 6.2;

          (20) the terms and conditions, if any, for conversion of the Securities into or exchange of
the Securities for shares of common stock or preferred stock of the Company that apply to
Securities of the Series;

-8-

 

          (21) any depositories, interest rate calculation agents, exchange rate calculation agents or
other agents with respect to Securities of such Series if other than those appointed herein;

          (22) the terms and conditions, if any, upon which the Securities shall be subordinated in
right of payment to other Indebtedness of the Company;

          (23) if applicable, that the Securities of the Series, in whole or any specified part, shall
be defeasible pursuant to Article 9; and

          (24) any other terms of the Securities of the Series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by Section 8.1, but which may modify or
delete any provision of this Indenture insofar as it applies to such Series).

     All Securities of any one Series need not be issued at the same time and may be issued from
time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the
Board Resolution, supplemental indenture or Officers’ Certificate referred to above, and the
authorized principal amount of any Series may not be increased to provide for issuances of
additional Securities of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers’ Certificate.

2.3. EXECUTION AND AUTHENTICATION.

     The Securities shall be executed on behalf of the Company by two Officers of the Company or an
Officer and an Assistant Secretary of the Company. Each such signature may be either manual or
facsimile. The Company’s seal may be impressed, affixed, imprinted or reproduced on the Securities
and may be in facsimile form.

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

     A Security shall not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture. The Trustee shall at any time, and from time to time,
authenticate Securities for original issue in the principal amount provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of
a Company Order. Such Company Order may authorize authentication and delivery pursuant to oral or
electronic instructions from the Company or its duly authorized agent or agents, which oral
instructions shall be promptly confirmed in writing. Each Security shall be dated the date of its
authentication.

     The aggregate principal amount of Securities of any Series outstanding at any time may not
exceed any limit upon the maximum principal amount for such Series set forth in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section
2.2, except as provided in Section 2.8.

     Prior to the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution,

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supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities
of that Series or of Securities within that Series and the terms of the Securities of that Series
or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.4, and
(c) an Opinion of Counsel complying with Section 10.4.

     The Trustee shall have the right to decline to authenticate and deliver any Securities of such
Series: (a) if the Trustee, being advised in writing by outside counsel, determines that such
action may not lawfully be taken; or (b) if the Trustee in good faith by its board of directors or
trustees, executive committee or a trust committee of directors and/or vice-presidents shall
reasonably determine that such action would expose the Trustee to personal liability, or cause it
to have a conflict of interest with respect to Holders of any then outstanding Series of
Securities.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so.
Any appointment shall be evidenced by instrument signed by an authorized officer of the Trustee, a
copy of which shall be furnished to the Company. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An authenticating agent has
the same rights as an Agent to deal with the Company or an Affiliate of the Company.

2.4. REGISTRAR AND PAYING AGENT.

     The Company shall maintain in each Place of Payment for any Series of Securities (i) an office
or agency where such Securities may be presented for registration of transfer or for exchange
(“Registrar”), (ii) an office or agency where such Securities may be presented for payment (“Paying
Agent”) PROVIDED that at the option of the Company payment of interest may be made by check mailed
to the address of the Person entitled thereto as such address shall appear in the register for the
Securities maintained by the Registrar, and (iii) an office or agency where notices and demands to
or upon the Company in respect of the Securities and this Indenture may be served (“Service
Agent”). The Registrar shall keep a register of the Securities and of their transfer and exchange.
The Company may have one or more co-registrars and one or more additional paying agents. The
Company shall 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 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 as set forth in Section
10.2. If the Company acts as Paying Agent, it shall segregate the money held by it for the payment
of principal of and premium, if any, and interest on the Securities and hold it as a separate trust
fund. The Company may change any Paying Agent, Registrar or co-registrar without notice to any
Securityholder.

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

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     The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address
of any such Agent. If the Company fails to maintain a Registrar or Paying Agent, or agent for
service of notices and demands, or fails to give the foregoing notice, the Trustee shall act as
such. The Company hereby appoints the Trustee as the initial Registrar, Paying Agent and Service
Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be,
is appointed prior to the time Securities of that Series are first issued. The Company hereby
initially designates the Corporate Trust Office of the Trustee as such office of the Company.

2.5. PAYING AGENT TO HOLD ASSETS IN TRUST.

     The Trustee as Paying Agent shall, and the Company shall require each Paying Agent other than
the Trustee to agree in writing that each Paying Agent shall hold in trust for the benefit of the
Holders of any Series of Securities or the Trustee all assets held by the Paying Agent for the
payment of principal of, or interest or premium (if any) on, such Series of Securities (whether
such assets have been distributed to it by the Company or any other obligor on such Series of
Securities), and the Company and the Paying Agent shall notify the Trustee in writing of any
Default by the Company (or any other obligor on such Series of Securities) in making any such
payment. The Company at any time may require a Paying Agent to distribute all assets held by it to
the Trustee and account for any assets disbursed and the Trustee may at any time during the
continuance of any payment default with respect to any Series of Securities, upon written request
to a Paying Agent, require such Paying Agent to distribute all assets held by it to the Trustee and
to account for any assets distributed. Upon distribution to the Trustee of all assets that shall
have been delivered by the Company to the Paying Agent, the Paying Agent shall have no further
liability for such assets.

2.6. SECURITYHOLDER LISTS.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Securityholders of each Series of Securities.
If the Trustee is not the Registrar, the Company shall furnish to the Trustee as of each regular
record date for the payment of interest on the Securities of a Series and before each related
Interest Payment Date, and at such other times as the Trustee may request in writing, a list in
such form and as of such date as the Trustee may reasonably require of the names and addresses of
Securityholders of each Series of Securities.

2.7. TRANSFER AND EXCHANGE.

     When Securities of a Series are presented to the Registrar with a request to register the
transfer thereof, the Registrar shall register the transfer as requested if the requirements of
applicable law are met, and when such Securities of a Series are presented to the Registrar with a
request to exchange them for an equal principal amount of other authorized denominations of
Securities of the same Series, the Registrar shall make the exchange as requested. To permit
transfers and exchanges, upon surrender of any Security for registration of transfer at the office
or agency maintained pursuant to Section 2.4 hereof, the Company shall execute and the Trustee

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shall authenticate Securities at the Registrar’s request.

     If Securities are issued as Global Securities, the provisions of Section 2.15 shall apply.

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

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

     Any exchange or transfer shall be without charge, except that the Company may require payment
by the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation to a transfer or exchange, but this provision shall not apply to any exchange pursuant
to Section 2.11, 3.6 or 8.5 hereof. The Trustee shall not be required to register transfers of
Securities of any Series or to exchange Securities of any Series for a period of 15 days before the
record date for selection for redemption of such Securities. The Trustee shall not be required to
exchange or register transfers of Securities of any Series called or being called for redemption in
whole or in part, except the unredeemed portion of such Security being redeemed in part.

2.8. REPLACEMENT SECURITIES.

     If a mutilated Security is surrendered to the Trustee or if the Holder of a Security presents
evidence to the satisfaction of the Company and the Trustee that the Security has been lost,
destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security of the same Series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding. An indemnity bond may be required by the Company or the Trustee
that is sufficient in the reasonable judgment of the Company or the Trustee, as the case may be, to
protect the Company, the Trustee or any Agent from any loss which any of them may suffer if a
Security is replaced. The Company may charge such Holder for its out-of-pocket expenses in
replacing a Security, including the fees and expenses of the Trustee. Every replacement Security
shall constitute an original additional obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all other Securities of
that Series duly issued hereunder.

2.9. OUTSTANDING SECURITIES.

     Securities outstanding at any time are all Securities authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, and those described in this Section
2.9 as not outstanding.

     If a Security is replaced pursuant to Section 2.8 (other than a mutilated Security surrendered
for replacement), it ceases to be outstanding until the Company and the Trustee

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receive proof satisfactory to each of them that the replaced Security is held by a bona fide
purchaser. A mutilated Security ceases to be outstanding upon surrender of such Security and
replacement thereof pursuant to Section 2.8.

     If a Paying Agent holds on a Redemption Date or the Stated Maturity money sufficient to pay
the principal of, premium, if any, and accrued interest on Securities payable on that date and is
not prohibited from paying such money to the Holders thereof pursuant to the terms of this
Indenture (PROVIDED that, if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been
made), then on and after that date such Securities cease to be outstanding and interest on them
ceases to accrue.

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

			
	2.10.	 	WHEN TREASURY SECURITIES DISREGARDED; DETERMINATION OF HOLDERS’ ACTION.

     In determining whether the Holders of the required aggregate principal amount of the
Securities of any Series have concurred in any direction, waiver or consent, the Securities of any
Series owned by the Company or any other obligor on such Securities or by any Affiliate of any of
them shall be disregarded, except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities of such Series which
the Trustee actually knows are so owned shall be so disregarded. Securities of such Series so owned
which have been pledged in good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to the Securities of such
Series and that the pledgee is not the Company or any other obligor upon the Securities of such
Series or any Affiliate of any of them.

2.11. TEMPORARY SECURITIES.

     Until definitive Securities are ready for delivery, the Company may prepare and execute and
the Trustee shall authenticate temporary Securities. Temporary Securities shall be substantially
in the form, and shall carry all rights, of definitive Securities but may have variations that the
Company considers appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and execute and the Trustee shall authenticate definitive Securities in exchange for
temporary Securities presented to it without charge to the Holder.

2.12. CANCELLATION.

     All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee for cancellation. The Company may at any time 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 (or to any other
Person for delivery to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold. The Registrar

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and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
transfer, exchange or payment. The Trustee or, at the direction of the Trustee, the Registrar or
the Paying Agent, and no one else, shall cancel and at the written request of the Company, shall
dispose of all Securities surrendered for transfer, exchange, payment or cancellation. If the
Company shall acquire any of the Securities, such acquisition shall not operate as a redemption or
satisfaction of the Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.12. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section
2.12, except as expressly permitted by this Indenture.

			
	2.13.	 	PAYMENT OF INTEREST; DEFAULTED INTEREST; COMPUTATION OF INTEREST.

     Except as otherwise provided as contemplated by Section 2.2 with respect to any Series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security is registered
at the close of business on the regular record date for such interest, as provided in the Board
Resolution, supplemental indenture hereto or Officers’ Certificate establishing the terms of such
Series.

     If the Company defaults in a payment of interest on the Securities, it shall pay the defaulted
amounts, plus any interest payable on defaulted amounts pursuant to Section 4.1 hereof, to the
Persons who are Securityholders on a subsequent special record date, which date shall be the
fifteenth day next preceding the date fixed by the Company for the payment of defaulted interest or
the next succeeding Business Day if such date is not a Business Day. At least 15 days before the
special record date, the Company shall mail or cause to be mailed to each Securityholder, with a
copy to the Trustee, a notice that states the special record date, the payment date, and the amount
of defaulted interest, and interest payable on such defaulted interest, if any, to be paid.

     Except as otherwise specified as contemplated by Section 2.2 for Securities of any Series,
interest on the Securities of each Series shall be computed on the basis of a 360-day year of
twelve 30-day months.

2.14. CUSIP NUMBER.

     The Company in issuing the Securities may use one or more “CUSIP” numbers, and if so, the
Trustee shall use the CUSIP number(s) in notices of redemption or exchange as a convenience to
Holders, PROVIDED that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP number(s) printed in the notice or on the Securities, and that
reliance may be placed only on the other identification numbers printed on the Securities and any
such redemption shall not be affected by any defect in or omission of any such numbers.

2.15. PROVISIONS FOR GLOBAL SECURITIES.

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     (a) A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall
establish whether the Securities of a Series shall be issued in whole or in part in the form of one
or more Global Securities and the Depository for such Global Securities or Securities.

     (b) Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture
and in addition thereto, if, and only if the Depository (i) at any time is unwilling or unable to
continue as Depository for such Global Security or ceases to be a clearing agency registered under
the Exchange Act and (ii) a successor Depository is not appointed by the Company within 90 days
after the date the Company is so informed in writing or becomes aware of the same, the Company
promptly will execute and deliver to the Trustee definitive Securities, and the Trustee, upon
receipt of a Company Request for the authentication and delivery of such definitive Securities
(which the Company will promptly execute and deliver to the Trustee) and an Officers’ Certificate
to the effect that such Global Security shall be so exchangeable, will authenticate and deliver
definitive Securities, without charge, registered in such names and in such authorized
denominations as the Depository shall direct in writing (pursuant to instructions from its direct
and indirect participants or otherwise) in an aggregate principal amount equal to the principal
amount of the Global Security with like tenor and terms. Upon the exchange of a Global Security
for definitive Securities, such Global Security shall be canceled by the Trustee. Unless and until
it is exchanged in whole or in part for definitive Securities, as provided in this Section 2.15(b),
a Global Security may not be transferred except as a whole by the Depository with respect to such
Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository
or another nominee of such Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such a successor Depository.

     (c) Any Global Security issued hereunder shall bear a legend in substantially the following
form:

“This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of
the Depository or a nominee of the Depository. This Security is
exchangeable for Securities registered in the name of a Person other
than the Depository or its nominee only in the limited circumstances
described in the Indenture, and may not be transferred except as a
whole by the Depository to a nominee of the Depository, by a nominee
of the Depository to the Depository or another nominee of the
Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such a successor Depository.”

     (d) The Depository, as a Holder, may appoint agents and otherwise authorize participants to
give or take any request, demand, authorization, direction, notice, consent, waiver or other action
which a Holder is entitled to give or take under the Indenture.

     (e) Notwithstanding the other provisions of this Indenture, unless otherwise specified as
contemplated by Section 2.2, payment of the principal of and interest and premium, if any, on any
Global Security shall be made to the Depository or its nominee in its capacity as the Holder
thereof.

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     (f) Except as provided in Section 2.15(e), the Company, the Trustee and any Agent shall treat
a Person as the Holder of such principal amount of outstanding Securities of any Series represented
by a Global Security as shall be specified in a written statement of the Depository (which may be
in the form of a participants’ list for such Series) with respect to such Global Security, for
purposes of obtaining any consents, declarations, waivers or directions required to be given by the
Holders pursuant to this Indenture, PROVIDED that until the Trustee is so provided with a written
statement, it may treat the Depository or any other Person in whose name a Global Security is
registered as the owner of such Global Security for the purpose of receiving payment of principal
of and any premium and (subject to Section 2.13) any interest on such Global Security and for all
other purposes whatsoever, and neither the Company, the Trustee nor any agent of the Company or the
Trustee shall be affected by notice to the contrary.

2.16. PERSONS DEEMED OWNERS.

     Prior to due presentment of a Security for registration of transfer, the Company, the Trustee,
the Registrar and any agent of the Company, the Registrar or the Trustee may treat the Person in
whose name such Security is registered as the owner of such Security for the purpose of receiving
payment of principal of and any premium and (subject to Section 2.13) any interest on such Security
and for all other purposes whatsoever, and neither the Company, the Trustee, the Registrar nor any
agent of the Company, the Registrar or the Trustee shall be affected by notice to the contrary.

ARTICLE 3

REDEMPTION

3.1. NOTICES TO TRUSTEE.

     The Company may, with respect to any Series of Securities, reserve the right to redeem and pay
the Series of Securities or may covenant to redeem and pay the Series of Securities or any part
thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such
Securities or the related Board Resolution, supplemental indenture or Officers’ Certificate. If a
Series of Securities is redeemable and the Company elects to redeem such Securities of a Series, it
shall notify the Trustee of the Redemption Date and the principal amount of Securities to be
redeemed at least 45 days (unless a shorter notice shall be satisfactory to the Trustee) before the
Redemption Date. Any such notice may be canceled at any time prior to notice of such redemption
being mailed to any Holder and shall thereby be void and of no effect.

3.2. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.

     Unless otherwise indicated for a particular Series of Securities by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, if fewer than all of the Securities of a Series
are to be redeemed, the Trustee shall select the Securities of a Series to be redeemed pro rata, by
lot or by any other method that the Trustee considers fair and appropriate (unless the Company
specifically directs the Trustee otherwise) and, if such Securities are listed on any securities
exchange, by a method that complies with the requirements of such exchange.

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     The Trustee shall make the selection from Securities of a Series outstanding and not
previously called for redemption and shall promptly notify the Company in writing of the Securities
selected for redemption and, in the case of any Security selected for partial redemption, the
principal amount thereof to be redeemed at least 35 but not more than 60 days before the Redemption
Date. Securities of a Series in denominations of $1,000 may be redeemed only in whole. The Trustee
may select for redemption portions of the principal of Securities of a Series that have
denominations larger than $1,000. Securities of a Series and portions of them it selects shall be
in amounts of $1,000 or, with respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2(10), the minimum principal denomination for each Series and integral
multiples thereof. Provisions of this Indenture that apply to Securities called for redemption also
apply to portions of Securities called for redemption.

3.3. NOTICE OF REDEMPTION.

     Unless otherwise indicated for a particular Series by Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, at least 30 days, and no more than 60 days, before a
Redemption Date, the Company shall mail, or cause to be mailed, a notice of redemption by
first-class mail to each Holder of Securities to be redeemed at his or her last address as the same
appears on the registry books maintained by the Registrar. The notice shall identify the
Securities to be redeemed (including the CUSIP number(s) thereof, if any) and shall state:

          (1) the Redemption Date;

          (2) the redemption price, and that such redemption price shall become due and payable on the
Redemption Date;

          (3) if any Security of a Series is being redeemed in part, the portion of the principal amount
of such Security of a Series to be redeemed and that, after the Redemption Date and upon surrender
of such Security of a Series, a new Security or Securities in principal amount equal to the
unredeemed portion will be issued;

          (4) the name and address of the Paying Agent;

          (5) that Securities of a Series called for redemption must be surrendered to the Paying Agent
to collect the redemption price, and the place or places where each such Security is to be
surrendered for such payment;

          (6) that, unless the Company defaults in making the redemption payment, interest on the
Securities of a Series called for redemption ceases to accrue on the Redemption Date, and the only
remaining right of the Holders of such Securities is to receive payment of the redemption price
upon surrender to the Paying Agent of the Securities redeemed;

          (7) if fewer than all the Securities of a Series are to be redeemed, the identification of the
particular Securities of a Series (or portion thereof) to be redeemed, as well as the aggregate
principal amount of Securities of a Series to be redeemed and the aggregate principal amount of
Securities of a Series to be outstanding after such partial redemption.

          (8) the CUSIP number, if any, printed on the Securities being redeemed; and

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          (9) that no representation is made as to the correctness or accuracy of the CUSIP number, if
any, listed in such notice or printed on the Securities.

     At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s sole expense.

3.4. EFFECT OF NOTICE OF REDEMPTION.

     Once the notice of redemption described in Section 3.3 is mailed, Securities of a Series
called for redemption become due and payable on the Redemption Date and at the redemption price,
plus interest, if any, accrued to the Redemption Date. Upon surrender to the Trustee or Paying
Agent, such Securities of a Series shall be paid at the redemption price, plus accrued interest, if
any, to the Redemption Date, PROVIDED that if the Redemption Date is after a regular interest
payment record date and on or prior to the next Interest Payment Date, the accrued interest shall
be payable to the Holder of the redeemed Securities registered on the relevant record date, as
specified by the Company in the notice to the Trustee pursuant to Section 3.1 hereof.

3.5. DEPOSIT OF REDEMPTION PRICE.

     On or prior to the Redemption Date (but no later than 11:00 A.M. Eastern Time on such date),
the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and
accrued interest, if any, on all Securities to be redeemed on that date other than Securities or
portions thereof called for redemption on that date which have been delivered by the Company to the
Trustee for cancellation.

     On and after any Redemption Date, if money sufficient to pay the redemption price of and
accrued interest on Securities called for redemption shall have been made available in accordance
with the preceding paragraph and the Company and the Paying Agent are not prohibited from paying
such moneys to Holders, the Securities called for redemption will cease to accrue interest and the
only right of the Holders of such Securities will be to receive payment of the redemption price of
and, subject to the proviso in Section 3.4, accrued and unpaid interest on such Securities to the
Redemption Date. If any Security called for redemption shall not be so paid, interest will be
paid, from the Redemption Date until such redemption payment is made, on the unpaid principal of
the Security and any interest or premium (if any) not paid on such unpaid principal, in each case,
at the rate and in the manner provided in the Securities.

3.6. SECURITIES REDEEMED IN PART.

     Upon surrender of a Security of a Series that is redeemed in part, the Company shall execute
and the Trustee shall authenticate for a Holder a new Security of the same Series equal in
principal amount to the unredeemed portion of the Security surrendered.

ARTICLE 4

COVENANTS

4.1. PAYMENT OF SECURITIES.

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     The Company shall pay the principal of and interest and premium, if any, on each Series of
Securities on the dates and in the manner provided in such Securities and this Indenture.

     An installment of principal or interest shall be considered paid on the date it is due if the
Trustee or Paying Agent holds on that date money designated for and sufficient to pay such
installment and is not prohibited from paying such money to the Holders pursuant to the terms of
this Indenture or otherwise.

     The Company shall pay interest on overdue principal, and overdue interest, to the extent
lawful, at the rate specified in the Series of Securities.

4.2. SEC REPORTS.

     The Company will deliver to the Trustee within 15 days after the filing of the same with the
SEC, copies of the quarterly and annual report and of the information documents and other reports,
if any, which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act. Notwithstanding that the Company may not be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company will file with the SEC, to the extent
permitted, and provide the Trustee, with such quarterly and annual reports and such information,
documents and other reports specified in Section 13 and 15(d) of the Exchange Act. The Company
will also comply with the other provisions of TIA Section 314(a).

4.3. WAIVER OF STAY, EXTENSION OR USURY LAWS.

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

4.4. COMPLIANCE CERTIFICATE.

     (a) The Company shall deliver to the Trustee, within 120 days after the end of each fiscal
year of the Company, an Officers’ Certificate which complies with TIA Section 314(a)(4) stating
that a review of the activities of the Company and its Subsidiaries during such fiscal year has
been made under the supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this Indenture, and
further stating, as to each such Officer signing such certificate, that to the best of his or her
knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained
in this Indenture and that there is no default in the performance or observance of any of the
terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which he or she may have knowledge and what
action the Company is taking or proposes to take with respect thereto) and

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that to the best of his or her knowledge no event has occurred and remains in existence by
reason of which payments on account of the principal of or interest or premium, if any, on the
Securities is prohibited or if such event has occurred, a description of the event and what action
the Company is taking or proposes to take with respect thereto.

     (b) (i) If any Default or Event of Default has occurred and is continuing or (ii) if any
Holder seeks to exercise any remedy hereunder with respect to a claimed Default under this
Indenture or the Securities, within five Business Days after its becoming aware of such occurrence
the Company shall deliver to the Trustee an Officers’ Certificate specifying such event, notice or
other action and what action the Company is taking or proposes to take with respect thereto.

4.5. CORPORATE EXISTENCE.

     Subject to Article 5 hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence, in accordance with the
organizational documents (as the same may be amended from time to time) of the Company and the
rights (charter and statutory), licenses and franchises of the Company; PROVIDED, HOWEVER, that the
Company shall not be required to preserve its corporate existence, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct of the business of
the Company and that the loss thereof is not adverse in any material respect to the Holders.

ARTICLE 5

SUCCESSOR CORPORATION

5.1. LIMITATION ON CONSOLIDATION, MERGER AND SALE OF ASSETS.

     (a) The Company will not, in any transaction or series of transactions, merge or consolidate
with or into, or sell, assign, convey, transfer, lease or otherwise dispose of all or substantially
all of its properties and assets (as an entirety or substantially as an entirety in one transaction
or a series of related transactions), to any Person or Persons, unless at the time of and after
giving effect thereto (i) either (A) if the transaction or series of transactions is a merger or
consolidation, the Company shall be the surviving Person of such merger or consolidation, or (B)
the Person formed by such consolidation or into which the Company is merged or to which the
properties and assets of the Company are transferred (any such surviving Person or transferee
Person being the “Surviving Entity”) shall be a corporation organized and existing under the laws
of the United States of America, any state thereof or the District of Columbia or a corporation or
comparable legal entity organized under the laws of a foreign jurisdiction and shall expressly
assume by a supplemental indenture executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, all of the obligations of the Company (including, without limitation,
the obligation to pay the principal of, and premium and interest, if any, on the Securities and the
performance of the other covenants) under the Securities of each Series and this Indenture, and in
each case, this Indenture shall remain in full force and effect; and (ii) immediately before and
immediately after giving effect to such transaction or series of transactions on a pro forma basis
(including, without limitation, any Indebtedness incurred or

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anticipated to be incurred in connection with or in respect of such transaction or series of
transactions), no Default or Event of Default shall have occurred and be continuing.

     (b) In connection with any consolidation, merger or transfer of assets contemplated by this
Section 5.1, the Company shall deliver, or cause to be delivered, to the Trustee, in form and
substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and the supplemental indenture in
respect thereto comply with this Section 5.1 and that all conditions precedent herein provided for
relating to such transaction or transactions have been complied with.

5.2. SUCCESSOR PERSON SUBSTITUTED.

     Upon any consolidation or merger, or any transfer of all or substantially all of the assets of
the Company in accordance with Section 5.1 above, the successor corporation formed by such
consolidation or into which the Company is merged or to which such transfer 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 corporation had been named as the Company
herein, and thereafter (except with respect to any such transfer which is a lease) the predecessor
corporation shall be relieved of all obligations and covenants under this Indenture and the
Securities.

ARTICLE 6

DEFAULTS AND REMEDIES

6.1. EVENTS OF DEFAULT.

     “Events of Default,” wherever used herein with respect to Securities of any Series, means any
one of the following events, unless in the establishing Board Resolution, supplemental indenture or
Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of
Default:

          (1) there is a default in the payment of any principal of, or premium, if any, on the
Securities when the same becomes due and payable at Maturity, upon acceleration, redemption or
otherwise;

          (2) there is a default in the payment of any interest on any Security of a Series when the
same becomes due and payable and the Default continues for a period of 30 days;

          (3) the Company defaults in the observance or performance of any other covenant in the
Securities of a Series or this Indenture for 60 days after written notice from the Trustee or the
Holders of not less than 25% in the aggregate principal amount of the Securities of such Series
then outstanding which notice must specify the Default, demand that it be remedied and state the
notice is a “Notice of Default”;

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

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               (A) commences a voluntary case,

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

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

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

               (E) generally is not paying its debts as they become due;

          (5) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

               (A) is for relief against the Company or any Significant Subsidiary in an
involuntary case;

               (B) appoints a Custodian of the Company or any Significant Subsidiary or for
all or substantially all of the property of the Company or any Significant
Subsidiary; or

               (C) orders the liquidation of the Company or any Significant Subsidiary, and
the order or decree remains unstayed and in effect for 90 consecutive days; or

          (6) any other Event of Default provided with respect to Securities of that Series, which is
specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in
accordance with Section 2.2(19).

     The term “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for
the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

     The Trustee may withhold notice of any Default (except in payment of principal or premium, if
any, or interest on the Securities) to the Holders of the Securities of any Series in accordance
with Section 7.5. When a Default is cured, it ceases to exist.

6.2. ACCELERATION.

     If an Event of Default with respect to Securities of any Series at the time outstanding (other
than an Event of Default arising under Section 6.1(4) or (5)) occurs and is continuing, the Trustee
by written notice to the Company, or the Holders of not less than 25% in aggregate principal amount
of the Securities of that Series then outstanding may by written notice to the Company and the
Trustee declare that the entire principal amount of all the Securities of that Series then
outstanding plus accrued and unpaid interest to the date of acceleration are immediately due and
payable, in which case such amounts shall become immediately due and payable; PROVIDED, HOWEVER,
that after such acceleration but before a judgment or decree

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based on such acceleration is obtained by the Trustee, the Holders of a majority in aggregate
principal amount of the outstanding Securities of that Series may rescind and annul such
acceleration and its consequences if (i) all existing Events of Default, other than the nonpayment
of accelerated principal, premium, if any, or interest that has become due solely because of the
acceleration, have been cured or waived, (ii) to the extent the payment of such interest is lawful,
interest on overdue installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid and (iii) the rescission would not conflict
with any judgment or decree. No such rescission shall affect any subsequent Default or impair any
right consequent thereto. In case an Event of Default specified in Section 6.1(4) or (5) with
respect to the Company occurs, such principal, premium, if any, and interest amount with respect to
all of the Securities of that Series shall be due and payable immediately without any declaration
or other act on the part of the Trustee or the Holders of the Securities of that Series.

6.3. REMEDIES.

     If an Event of Default with respect to Securities of any Series at the time outstanding occurs
and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of principal of, or premium, if any, and interest on the Securities of that
Series or to enforce the performance of any provision of the Securities of that Series or this
Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities of
that Series or does not produce any of them in the proceeding. A delay or omission by the Trustee
or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No
remedy is exclusive of any other remedy. All available remedies are cumulative to the extent
permitted by law.

6.4. WAIVER OF PAST DEFAULTS AND EVENTS OF DEFAULT.

     Subject to Sections 6.2, 6.7 and 8.2 hereof, the Holders of a majority in principal amount of
the Securities of any Series then outstanding have the right to waive any existing Default or Event
of Default with respect to such Series or compliance with any provision of this Indenture (with
respect to such Series) or the Securities of such Series. Upon any such waiver, such Default with
respect to such Series shall cease to exist, and any Event of Default with respect to such Series
arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or Event of Default or impair any right
consequent thereto. This Section 6.4 shall be in lieu of TIA Section 316(a)(1)(B), and TIA Section
316(a)(1)(B) is hereby expressly excluded from this Indenture and Section as permitted by the TIA.

6.5. CONTROL BY MAJORITY.

     Subject to Sections 6.2, 6.7 and 8.2 hereof, the Holders of a majority in principal amount of
the Securities of any Series then outstanding may direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust or

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power conferred on the Trustee by this Indenture with respect to such Series. The Trustee,
however, may refuse to follow any direction that conflicts with law or this Indenture or that the
Trustee determines may be unduly prejudicial to the rights of another Securityholder or that may
involve the Trustee in personal liability; PROVIDED that the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction. This Section 6.5 shall
be in lieu of TIA Section 316(a)(1)(A), and TIA Section 316(a)(1)(A) is hereby expressly excluded
from this Indenture and Section as permitted by the TIA.

6.6. LIMITATION ON SUITS.

     Subject to Section 6.7 below, a Securityholder may not institute any proceeding or pursue any
remedy with respect to this Indenture or the Securities of a Series unless:

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

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

          (3) such Holder or Holders offer to the Trustee indemnity reasonably satisfactory to the
Trustee against any loss, liability or expense to be incurred in compliance with such request;

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

          (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in aggregate principal amount of the Securities of
such Series then outstanding.

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

6.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT.

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
of a Series to receive payment of principal of, and premium, if any, and interest of the Security
of such Series on or after the respective due dates expressed in the Security of such Series, or to
bring suit for the enforcement of any such payment on or after such respective dates, is absolute
and unconditional and shall not be impaired or affected without the consent of the Holder.

6.8. COLLECTION SUIT BY TRUSTEE.

     If an Event of Default in payment of principal, premium or interest specified in Section
6.1(1) or (2) hereof with respect to Securities of any Series at the time outstanding occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company (or any other obligor on the Securities of that Series) for the whole amount

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of unpaid principal and premium, if any, and accrued interest remaining unpaid, together with
interest on overdue principal and premium, if any, and, to the extent that payment of such interest
is lawful, interest on overdue installments of interest, in each case at the rate then borne by the
Securities of that Series, and such further amounts as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, as set forth in Section 7.7.

6.9. TRUSTEE MAY FILE PROOFS OF CLAIM.

     The Trustee may file such proofs of claim and other papers or documents, and take other
actions (including sitting on a committee of creditors) as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the Securityholders allowed
in any judicial proceedings relative to the Company (or any other obligor upon the Securities), any
of their respective creditors or any of their respective property and shall be entitled and
empowered to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same after deduction of its charges and expenses to the extent that
any such charges and expenses are not paid out of the estate in any such proceedings and any
custodian in any such judicial proceeding is hereby authorized by each Securityholder 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 Securityholders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.7 hereof.

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

6.10. PRIORITIES.

     If the Trustee collects any money pursuant to this Article 6, it shall pay out the money in
the following order:

FIRST: to the Trustee for amounts due under Section 7.7 hereof;

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

THIRD: to the Company.

     The Trustee may fix a record date and payment date for any payment to Securityholders pursuant
to this Section 6.10. At least 15 days before such record date, the Trustee shall mail to

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each Securityholder a notice that states the record date, the payment date and amount to be
paid.

6.11. UNDERTAKING FOR COSTS.

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.7 hereof or a suit by Holders of more than 10% in
principal amount of the Securities of a Series then outstanding.

ARTICLE 7

TRUSTEE

7.1. DUTIES OF TRUSTEE.

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

     (b) Except during the continuance of an Event of Default:

          (1) The Trustee need perform only those duties that are specifically set forth in this
Indenture and no covenants or obligations shall be implied in this Indenture against the Trustee.

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

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

          (1) This paragraph does not limit the effect of paragraph (b) of this Section 7.1.

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

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          (3) The Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in `accordance with a direction received by it pursuant to Sections 6.2 and 6.5 hereof.

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

     (e) Whether or not therein expressly so provided, paragraphs (a), (b), (c) and (d) of this
Section 7.1 shall govern every provision of this Indenture that in any way relates to the Trustee.

     (f) The Trustee and Paying Agent shall not be liable for interest on any money received by it
except as the Trustee and Paying Agent 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 the law.

     (g) The Paying Agent, the Registrar and any authenticating agent shall be entitled to the
protections, immunities and standard of care set forth in paragraphs (a), (b), (c), (d) and (f) of
this Section 7.1 and in Section 7.2 with respect to the Trustee.

7.2. RIGHTS OF TRUSTEE.

     (a) Subject to Section 7.1 hereof:

          (1) The Trustee may rely on and shall be protected in acting or refraining from acting upon
any document reasonably believed by it to be genuine and to have been signed or presented by the
proper Person. The Trustee need not investigate any fact or matter stated in the document.

          (2) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel, or both, which shall conform to the provisions of Section 10.5 hereof.
The Trustee shall be protected and shall not be liable for any action it takes or omits to take in
good faith in reliance on such certificate or opinion.

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

          (4) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it reasonably believes to be authorized or within its rights or powers.

          (5) The Trustee may consult with counsel reasonably acceptable to the Trustee, which may be
counsel to the Company, and the advice or opinion of such counsel as to matters of law shall be
full and complete authorization and protection from liability in respect of any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of
such counsel.

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          (6) 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 pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which may be incurred therein or
thereby.

          (7) The Trustee shall not be deemed to have knowledge of any fact or matter (including,
without limitation, a Default or Event of Default) unless such fact or matter is known to a
Responsible Officer of the Trustee.

          (8) Unless otherwise expressly provided herein or in the Securities of a Series or the related
Board Resolution, supplemental indenture or Officers’ Certificate, the Trustee shall not have any
responsibility with respect to reports, notices, certificates or other documents filed with it
hereunder, except to make them available for inspection, at reasonable times, by Securityholders,
it being understood that delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein,
including the Company’s compliance with any of its covenants hereunder (except as set forth in
Section 4.4).

7.3. INDIVIDUAL RIGHTS OF TRUSTEE.

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may make loans to, accept deposits from, perform services for or otherwise deal with
the Company, or any Affiliate thereof, with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights. The Trustee, however, shall be subject to Sections
7.10 and 7.11 hereof.

7.4. TRUSTEE’S DISCLAIMER.

     The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities (except that the Trustee represents that it is duly authorized to execute and deliver
this Indenture and authenticate the Securities and perform its obligations hereunder), it shall not
be accountable for the Company’s use of the proceeds from the sale of Securities or any money paid
to the Company pursuant to the terms of this Indenture and it shall not be responsible for any
statement in the Securities other than its certificates of authentication.

7.5. NOTICE OF DEFAULT.

     If a Default or an Event of Default occurs and is continuing with respect to the Securities of
any Series and if it is known to the Trustee, the Trustee shall mail to each Securityholder of the
Securities of that Series notice of the Default or the Event of Default, as the case may be, within
90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of
such Default or Event of Default (except if such Default or Event of Default has been validly cured
or waived before the giving of such notice). Except in the case of a Default or an Event of
Default in payment of the principal of, or premium, if any, or interest on any Security of any
Series, the Trustee may withhold the notice if and so long as the Board of Directors of the
Trustee, the executive committee or any trust committee of such board and/or its

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Responsible Officers in good faith determine(s) that withholding the notice is in the
interests of the Securityholders of that Series.

7.6. REPORTS BY TRUSTEE TO HOLDERS.

     If and to the extent required by the TIA, within 60 days after April 1 of each year,
commencing the April 1 following the date of this Indenture, the Trustee shall mail to each
Securityholder a brief report dated as of such April 1 that complies with TIA Section 313(a). The
Trustee also shall comply with TIA Sections 313(b) and 313(c).

     A copy of each report at the time of its mailing to Securityholders shall be filed with the
SEC and any stock exchange on which the Securities of that Series are listed. The Company shall
promptly notify the Trustee when the Securities of any Series are listed on any stock exchange or
any delisting thereof, and the Trustee shall comply with TIA Section 313(d).

7.7. COMPENSATION AND INDEMNITY.

     The Company shall pay to the Trustee from time to time reasonable compensation for its
services. The Trustee’s compensation shall not be limited by any provision of law on compensation
of a trustee of an express trust. The Company shall reimburse the Trustee within 45 days after
receipt of request for all reasonable out-of-pocket disbursements and expenses incurred or made by
it in connection with its duties under this Indenture, including the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

     The Company shall indemnify the Trustee for, and hold it harmless against, any and all loss or
liability incurred by it in connection with the acceptance or performance of its duties under this
Indenture including the reasonable costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers or duties hereunder.
The Trustee shall notify the Company promptly of any claim asserted against the Trustee for which
it may seek indemnity.

     The failure by the Trustee to so notify the Company shall not however relieve the Company of
its obligations. Notwithstanding the foregoing, the Company need not reimburse the Trustee for any
expense or indemnify it against any loss or liability incurred by the Trustee through its
negligence or bad faith. To secure the payment obligations of the Company in this Section 7.7, the
Trustee shall have a lien prior to the Securities of any Series on all money or property held or
collected by the Trustee except such money or property held in trust to pay principal of and
interest and premium (if any) on particular Securities of that Series.

     When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.1(4) or (5) hereof occurs, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law.

     For purposes of this Section 7.7, the term “Trustee” shall include any trustee appointed
pursuant to Article 9.

7.8. REPLACEMENT OF TRUSTEE.

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     The Trustee may resign with respect to the Securities of one or more Series by so notifying
the Company in writing at least 90 days in advance of such resignation.

     The Holders of a majority in principal amount of the outstanding Securities of any Series may
remove the Trustee with respect to that Series by notifying the removed Trustee in writing and may
appoint a successor Trustee with respect to that Series with the consent of the Company, which
consent shall not be unreasonably withheld. The Company may remove the Trustee with respect to
that Series at its election if:

          (1) the Trustee fails to comply with, or ceases to be eligible under, Section 7.10 hereof;

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

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

          (4) the Trustee otherwise becomes incapable of acting.

          (5) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee with
respect to any Series of Securities for any reason, the Company shall promptly appoint, by Board
Resolution, a successor Trustee.

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

     If the Trustee with respect to the Securities of one or more Series fails to comply with
Section 7.10 hereof, any Securityholder of the applicable Series may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately following such delivery, (i) the retiring Trustee with
respect to one or more Series shall, subject to its rights under Section 7.7 hereof, transfer all
property held by it as Trustee with respect to such Series to the successor Trustee, (ii) the
resignation or removal of the retiring Trustee shall become effective, and (iii) the successor
Trustee with respect to such Series shall have all the rights, powers and duties of the Trustee
under this Indenture. A successor Trustee with respect to the Securities of one or more Series
shall mail notice of its succession to each Securityholder of such Series.

7.9. SUCCESSOR TRUSTEE BY CONSOLIDATION, MERGER OR CONVERSION.

     If the Trustee, or any Agent, consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust assets to, another corporation, subject to Section 7.10

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hereof, the successor corporation without any further act shall be the successor Trustee or
Agent, as the case may be.

7.10. ELIGIBILITY; DISQUALIFICATION.

     This Indenture shall always have a Trustee who satisfies the requirements of TIA Sections
310(a)(1), (2) and (5) in every respect. The Trustee (or in the case of a Trustee that is a Person
included in a bank holding company system, the related bank holding company) shall have a combined
capital and surplus of at least $100,000,000 as set forth in its most recent published annual
report of condition. The Trustee shall comply with TIA Section 310(b), including the provision in
Section 310(b)(1). In addition, if the Trustee is a Person included in a bank holding company
system, the Trustee, independently of such bank holding company, shall meet the capital
requirements of TIA Section 310(a)(2). If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 7.10, it shall resign immediately in the manner and
with the effect specified in this Article 7.

7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

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

7.12. PAYING AGENTS.

     The Company shall cause each Paying Agent other than the Trustee to execute and deliver to it
and the Trustee an instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section 7.12:

          (1) that it will hold all sums held by it as agent for the payment of principal of, or
premium, if any, or interest on, the Securities (whether such sums have been paid to it by the
Company or by any obligor on the Securities) in trust for the benefit of Holders of the Securities
or the Trustee;

          (2) that it will at any time during the continuance of any Event of Default, upon written
request from the Trustee, deliver to the Trustee all sums so held in trust by it together with a
full accounting thereof; and

          (3) that it will give the Trustee written notice within three (3) Business Days after any
failure of the Company (or by any obligor on the Securities) in the payment of any installment of
the principal of, premium, if any, or interest on, the Securities when the same shall be due and
payable.

ARTICLE 8

AMENDMENTS, SUPPLEMENTS AND WAIVERS

8.1. WITHOUT CONSENT OF HOLDERS.

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     The Company, when authorized by a Board Resolution, and the Trustee may amend or supplement
this Indenture or the Securities of one or more Series without notice to or consent of any
Securityholder:

          (1) to comply with Section 5.1 hereof;

          (2) to provide for certificated Securities in addition to uncertificated Securities;

          (3) to comply with any requirements of the SEC under the TIA;

          (4) to cure any ambiguity, defect or inconsistency, or to make any other change herein or in
the Securities that does not materially and adversely affect the rights of any Securityholder;

          (5) to provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture; or

          (6) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more Series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee.

     The Trustee is hereby authorized to join with the Company in the execution of any supplemental
indenture authorized or permitted by the terms of this Indenture and to make any further
appropriate agreements and stipulations which may be therein contained, but the Trustee shall not
be obligated to enter into any such supplemental indenture which adversely affects its own rights,
duties or immunities under this Indenture.

8.2. WITH CONSENT OF HOLDERS.

     (a) The Company, when authorized by a Board Resolution, and the Trustee may amend or
supplement this Indenture or the Securities of one or more Series with the written consent of the
Holders of not less than a majority in aggregate principal amount of the outstanding Securities of
such Series affected by such amendment or supplement without notice to any Securityholder. The
Holders of not less than a majority in aggregate principal amount of the outstanding Securities of
each such Series affected by such amendment or supplement may waive compliance in a particular
instance by the Company with any provision of this Indenture or the Securities of such Series
without notice to any Securityholder. Subject to Section 8.4, without the consent of each
Securityholder affected, however, an amendment, supplement or waiver may not:

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

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

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          (3) reduce the principal or change the Stated Maturity of any Security or reduce the amount
of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

          (4) make any Security payable in money other than that stated in the Security;

          (5) change the amount or time of any payment required by the Securities or reduce the premium
payable upon any redemption of the Securities, or change the time before which no such redemption
may be made;

          (6) waive a Default or Event of Default in the payment of the principal of or interest or
premium, if any, on any Security (except a rescission of acceleration of the Securities of any
Series by the Holders of at least a majority in principal amount of the outstanding Securities of
such Series and a waiver of the payment default that resulted from such acceleration);

          (7) waive a redemption payment with respect to any Security or change any of the provisions
with respect to the redemption of any Securities;

          (8) make any changes in Section 6.6 hereof or this Section 8.2; except to increase any
percentage of Securities the Holders of which must consent to any matter; or

          (9) take any other action otherwise prohibited by this Indenture to be taken without the
consent of each Holder affected thereby.

     (b) Upon the request of the Company, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon the receipt by the Trustee of evidence
reasonably satisfactory to the Trustee of the consent of the Securityholders as aforesaid and upon
receipt by the Trustee of the documents described in Section 8.6 hereof, the Trustee shall join
with the Company in the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under this Indenture, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such supplemental
indenture.

     (c) It shall not be necessary for the consent of the Holders under this section 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 or supplement under this Section becomes effective, the Company shall mail to
Securityholders a notice briefly describing the amendment or supplement. Any failure of the
Company to mail any such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any supplemental indenture.

8.3. COMPLIANCE WITH TRUST INDENTURE ACT.

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

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8.4. REVOCATION AND EFFECT OF CONSENTS.

     Until an amendment, supplement, waiver or other action becomes effective, a consent to it by a
Holder of a Security is a continuing consent conclusive and binding upon such Holder and every
subsequent Holder of the same Security or portion thereof, and of any Security issued upon the
transfer thereof or in exchange therefor or in place thereof, even if notation of the consent is
not made on any such Security. Any such Holder or subsequent Holder, however, may revoke the
consent as to his Security or portion of a Security, if the Trustee receives the notice of
revocation before the date the amendment, supplement, waiver or other action becomes effective.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement, or waiver which record
date shall be at least 30 days prior to the first solicitation of such consent. If a record date
is fixed, then, notwithstanding the preceding paragraph, those Persons who were Holders at such
record date (or their duly designated proxies), and only such Persons, shall be entitled to consent
to such amendment, supplement, or waiver or to revoke any consent previously given, whether or not
such Persons continue to be Holders after such record date.

     After an amendment, supplement, waiver or other action becomes effective, it shall bind every
Securityholder, unless it makes a change described in any of clauses (1) through (9) of Section 8.2
hereof. In that case the amendment, supplement, waiver or other action shall bind each Holder of a
Security who has consented to it and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security; PROVIDED that any such waiver
shall not impair or affect the right of any Holder to receive payment of principal of and interest
and premium (if any) on a Security, on or after the respective due dates expressed in such
Security, or to bring suit for the enforcement of any such payment on or after such respective
dates without the consent of such Holder.

8.5. NOTATION ON OR EXCHANGE OF SECURITIES.

     If an amendment, supplement, or waiver changes the terms of a Security of any Series, the
Trustee may request the Holder of such Security to deliver it to the Trustee. In such case, the
Trustee shall place an appropriate notation on such Security about the changed terms and return it
to the Holder. Alternatively, the Company in exchange for such Security may issue and the Trustee
shall authenticate a new security that reflects the changed terms. Failure to make the appropriate
notation or issue a new Security shall not affect the validity and effect of such amendment,
supplement or waiver.

8.6. TRUSTEE TO SIGN AMENDMENTS, ETC.

     The Trustee shall sign any amendment, supplement or waiver authorized pursuant to this Article
8 if the amendment, supplement or waiver does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. If it does, the Trustee may, but need not, sign it. In signing or
refusing to sign such amendment, supplement or waiver the Trustee shall be entitled to receive and,
subject to Section 7.1 hereof, shall be fully protected in relying upon an Officers’ Certificate
and an Opinion of Counsel stating that such amendment, supplement or waiver is authorized or
permitted by this Indenture. The Company may not sign an amendment or

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supplement until the Board of Directors of the Company approves it.

ARTICLE 9

DISCHARGE OF INDENTURE; DEFEASANCE

9.1. DISCHARGE OF INDENTURE.

     The Company may terminate its obligations under the Securities of any Series and this
Indenture with respect to such Series, except the obligations referred to in the last paragraph of
this Section 9.1, if there shall have been canceled by the Trustee or delivered to the Trustee for
cancellation all Securities of such Series theretofore authenticated and delivered (other than any
Securities of such Series that are asserted to have been destroyed, lost or stolen and that shall
have been replaced as provided in Section 2.8 hereof) and the Company has paid all sums payable by
it hereunder or deposited all required sums with the Trustee.

     After such delivery the Trustee upon request shall acknowledge in a writing prepared by or on
behalf of the Company the discharge of the Company’s obligations under the Securities of such
Series and this Indenture except for those surviving obligations specified below.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company in Sections 7.7, 9.5 and 9.6 hereof shall survive.

9.2. LEGAL DEFEASANCE.

     The Company may at its option, by Board Resolution, be discharged from its obligations with
respect to the Securities of any Series on the date upon which the conditions set forth in Section
9.4 below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, such Legal Defeasance
means that the Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Securities of such Series and to have satisfied all its other obligations under
such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at
the expense of the Company, shall, subject to Section 9.6 hereof, execute proper instruments
acknowledging the same, as are delivered to it by the Company), except for the following which
shall survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of
outstanding Securities of such Series to receive solely from the trust funds described in Section
9.4 hereof and as more fully set forth in such section, payments in respect of the principal of,
premium, if any, and interest on the Securities of such Series when such payments are due, (B) the
Company’s obligations with respect to the Securities of such Series under Sections 2.4, 2.5, 2.6,
2.7, 2.8 and 2.9 hereof, (C) the rights, powers, trusts, duties, and immunities of the Trustee
hereunder (including claims of, or payments to, the Trustee under or pursuant to Section 7.7
hereof) and (D) this Article 9. Subject to compliance with this Article 9, the Company may
exercise its option under this Section 9.2 with respect to the Securities of any Series
notwithstanding the prior exercise of its option under Section 9.3 below with respect to the
Securities of such Series.

9.3. COVENANT DEFEASANCE.

     At the option of the Company, pursuant to a Board Resolution, the Company shall be

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released from its obligations with respect to the outstanding Securities of any Series under
Sections 4.2 through 4.5 hereof, inclusive, and Section 5.1 hereof, with respect to the outstanding
Securities of such Series, on and after the date the conditions set forth in Section 9.4 hereof are
satisfied (hereinafter, “Covenant Defeasance”). For this purpose, such Covenant Defeasance means
that the Company may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such specified section or portion thereof, whether
directly or indirectly by reason of any reference elsewhere herein to any such specified Section or
portion thereof or by reason of any reference in any such specified section or portion thereof to
any other provision herein or in any other document, but the remainder of this Indenture and the
Securities of any Series shall be unaffected thereby.

9.4. CONDITIONS TO LEGAL DEFEASANCE OR COVENANT DEFEASANCE.

     The following shall be the conditions to application of Section 9.2 or Section 9.3 hereof to
the outstanding Securities of a Series:

          (1) the Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee satisfying the requirements of Section 7.10 hereof who shall agree to comply
with the provisions of this Article 9 applicable to it) as funds in trust for the purpose of making
the following payments, specifically pledged as security for, and dedicated solely to, the benefit
of the Holders of the Securities, (A) money in an amount, or (B) U.S. Government Obligations or
Foreign Government Obligations which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than the due date of any
payment, 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, and which shall be applied by the Trustee
(or other qualifying trustee) to pay and discharge, the principal of, premium, if any, and accrued
interest on the outstanding Securities of such Series at the Stated Maturity of such principal,
premium, if any, or interest, or on dates for payment and redemption of such principal, premium, if
any, and interest selected in accordance with the terms of this Indenture and of the Securities of
such Series;

          (2) no Event of Default or Default with respect to the Securities of such Series shall have
occurred and be continuing on the date of such deposit, or shall have occurred and be continuing at
any time during the period ending on the 91st day after the date of such deposit or, if longer,
ending on the day following the expiration of the longest preference period under any Bankruptcy
Law applicable to the Company in respect of such deposit as specified in the Opinion of Counsel
identified in paragraph (8) below (it being understood that this condition shall not be deemed
satisfied until the expiration of such period);

          (3) such Legal Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest for purposes of the TIA with respect to any securities of the Company;

          (4) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute default under any other agreement or instrument to which the Company is a party or by
which it is bound;

 -36- 

 

          (5) the Company shall have delivered to the Trustee an Opinion of Counsel stating that, as a
result of such Legal Defeasance or Covenant Defeasance, neither the trust nor the Trustee will be
required to register as an investment company under the Investment Company Act of 1940, as amended;

          (6) in the case of an election under Section 9.2 above, the Company shall have delivered to
the Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling to the effect that or (ii) there has been a
change in any applicable Federal income tax law with the effect that, and such opinion shall
confirm that, the Holders of the outstanding Securities of such Series or Persons in their
positions will not recognize income, gain or loss for Federal income tax purposes solely as a
result of such Legal Defeasance and will be subject to Federal income tax on the same amounts, in
the same manner, including as a result of prepayment, and at the same times as would have been the
case if such Legal Defeasance had not occurred;

          (7) in the case of an election under Section 9.3 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Holders of the outstanding Securities of
such Series will not recognize income, gain or loss for Federal income tax purposes as a result of
such Covenant Defeasance and will be subject to Federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant Defeasance had not
occurred;

          (8) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for in this Article 9 relating to
either the Legal Defeasance under Section 9.2 above or the Covenant Defeasance under Section 9.3
hereof (as the case may be) have been complied with;

          (9) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the
deposit under clause (1) was not made by the Company with the intent of defeating, hindering,
delaying or defrauding any creditors of the Company or others; and

          (10) the Company shall have paid or duly provided for payment under terms mutually
satisfactory to the Company and the Trustee all amounts then due to the Trustee pursuant to Section
7.7 hereof.

	9.5.	 	DEPOSITED MONEY AND U.S. AND FOREIGN GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST; OTHER
MISCELLANEOUS PROVISIONS.

     All money, U.S. Government Obligations and Foreign Government Obligations (including the
proceeds thereof) deposited with the Trustee pursuant to Section 9.4 hereof in respect of the
outstanding Securities shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either directly or through any
Paying Agent as the Trustee may determine, to the Holders of such Securities, of all sums due and
to become due thereon in respect of principal, premium, if any, and accrued interest, but such
money need not be segregated from other funds except to the extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge

 -37- 

 

imposed on or assessed against the U.S. Government Obligations and Foreign Government
Obligations deposited pursuant to Section 9.4 hereof or the principal, premium, if any, and
interest received in respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of the outstanding Securities.

     Anything in this Article 9 to the contrary notwithstanding, but subject to payment of any of
its outstanding fees and expenses, the Trustee shall deliver or pay to the Company from time to
time upon Company Request any money, U.S. Government Obligations or Foreign Government Obligations
held by it as provided in Section 9.4 hereof 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
an equivalent Legal Defeasance or Covenant Defeasance.

9.6. REINSTATEMENT.

     If the Trustee or Paying Agent is unable to apply any money, U.S. Government Obligations or
Foreign Government Obligations in accordance with Section 9.1, 9.2, 9.3 or 9.4 hereof 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 9 until such time as the Trustee or Paying Agent is permitted to apply all
such money, U.S. Government Obligations or Foreign Government Obligations, as the case may be, in
accordance with Section 9.1, 9.2, 9.3 or 9.4 hereof; PROVIDED, HOWEVER, that if the Company has
made any payment of principal of, premium, if any, or accrued interest on any Securities because of
the reinstatement of their obligations, the Company shall be subrogated to the rights of the
Holders of such Securities to receive such payment from the money, U.S. Government Obligations or
Foreign Government Obligations held by the Trustee or Paying Agent.

9.7. MONEYS HELD BY PAYING AGENT.

     In connection with the satisfaction and discharge of this Indenture, all moneys then held by
any Paying Agent under the provisions of this Indenture shall, upon demand of the Company, be paid
to the Trustee, or if sufficient moneys have been deposited pursuant to Section 9.1 hereof, to the
Company, and thereupon such Paying Agent shall be released from all further liability with respect
to such moneys.

9.8. MONEYS HELD BY TRUSTEE.

     Any moneys deposited with the Trustee or any Paying Agent or then held by the Company in trust
for the payment of the principal of, or premium, if any, or interest on any Security that are not
applied but remain unclaimed by the Holder of such Security for two years after the date upon which
the principal of, or premium, if any, or interest on such Security shall have respectively become
due and payable shall be repaid to the Company upon Company Request, or if such moneys are then
held by the Company in trust, such moneys shall be released from such trust; and the Holder of such
Security entitled to receive such payment shall thereafter, as an unsecured general creditor, look
only to the Company for the payment thereof, and all

 -38- 

 

liability of the Trustee or such Paying Agent with respect to such trust money shall thereupon
cease; PROVIDED, HOWEVER, that the Trustee or any such Paying Agent, before being required to make
any such repayment, may, at the expense of the Company, either mail to each Securityholder
affected, at the address shown in the register of the Securities maintained by the Registrar or
cause to be published once a week for two successive weeks, in a newspaper published in the English
language, customarily published each Business Day and of general circulation in the City of New
York, New York, a notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such mailing or publication, any
unclaimed balance of such moneys then remaining will be repaid to the Company. After payment to
the Company or the release of any money held in trust by the Company, Securityholders entitled to
the money must look only to the Company for payment as general creditors unless applicable
abandoned property law designates another Person.

ARTICLE 10

MISCELLANEOUS

10.1. TRUST INDENTURE ACT CONTROLS.

     If any provision of this Indenture limits, qualifies or conflicts with another provision which
is required to be included in this Indenture by the TIA, the required provision shall control. If
any provision of this Indenture modifies or excludes any provision of the TIA which may be so
modified or excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or to be excluded, as the case may be.

10.2. NOTICES.

     Any notice or communication shall be given in writing and delivered in Person, sent by
facsimile (and receipt confirmed by telephone or electronic transmission report), delivered by
commercial courier service or mailed by first-class mail, postage prepaid, addressed as follows:

If to the Company:

Iomai Corporation

20 Firstfield Road

Gaithersburg, MD 20878

Fax: (301) 556-4501

Attention: Russell P. Wilson, General Counsel

Copy to:

Ropes & Gray LLP

One International Place

Boston, Massachusetts 02110

Fax: (617) 951-7050

Attention: Paul M. Kinsella

 -39- 

 

	 	 	 	 	 	 	 
	 	 	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 to the
Company or the Trustee shall be deemed to have been given or made as of the date so delivered if
personally delivered; when receipt is confirmed by telephone or electronic transmission report, if
sent by facsimile; and three (3) Business Days after mailing if sent by registered or certified
mail, postage prepaid (except that a notice of change of address shall not be deemed to have been
given until actually received by the addressee).

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

     Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication to a
Securityholder is mailed in the manner provided above, it shall be deemed duly given, three
Business Days after such mailing, whether or not the addressee receives it.

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

     In the case of Global Securities, notices or communications to be given to Securityholders
shall be given to the Depository, in accordance with its applicable policies as in effect from time
to time.

     In addition to the manner provided for in the foregoing provisions, notices or communications
to Securityholders shall be given by the Company by release made to Reuters Economic Services and
Bloomberg Business News.

10.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

     Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other
Securityholders of that Series or any other Series with respect to their rights under this
Indenture or the Securities of that Series or any other Series. The Company, the Trustee, the
Registrar and any other Person shall have the protection of TIA Section 312(c).

10.4. 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:

 -40- 

 

          (1) an Officers’ Certificate (which shall include the statements set forth in Section 10.5
below) 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

          (2) an Opinion of Counsel (which shall include the statements set forth in Section 10.5 below)
stating that, in the opinion of such counsel, all such conditions precedent have been complied
with.

10.5. STATEMENT REQUIRED IN CERTIFICATE AND OPINION.

     Each certificate and opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than pursuant to Section 4.4 hereof) shall include:

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

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

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

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

10.6. RULES BY TRUSTEE AND AGENTS.

     The Trustee may make reasonable rules for action by or at meetings of Securityholders. The
Registrar and Paying Agent may make reasonable rules for their functions.

10.7. BUSINESS DAYS; LEGAL HOLIDAYS; PLACE OF PAYMENT.

     A “Business Day” is a day that is not a Legal Holiday. A “Legal Holiday” is a Saturday, a
Sunday, a federally-recognized holiday or a day on which banking institutions are not authorized or
required by law or executive order to be open in the State of Maryland or the State of New York.

     If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period. “Place of Payment” means the place or places where the principal of and any
premium and interest on the Securities of a Series are payable as specified as contemplated by
Section 2.2. If the regular record date is a Legal Holiday, the record date shall not be affected.

10.8. GOVERNING LAW.

 -41- 

 

     THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW
YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

10.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

     This Indenture may not be used to interpret another indenture, loan, security or debt
agreement of the Company or any Subsidiary thereof. No such indenture, loan, security or debt
agreement may be used to interpret this Indenture.

10.10. NO RECOURSE AGAINST OTHERS.

     A director, officer, employee, stockholder or incorporator, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or the Indenture. Each
Securityholder by accepting a Security waives and releases all such liability. Such waiver and
release are part of the consideration for the issuance of the Securities.

10.11. SUCCESSORS.

     All covenants and agreements of the Company in this Indenture and the Securities shall bind
its successors and assigns, whether so expressed or not. All agreements of the Trustee, any
additional trustee and any Paying Agents in this Indenture shall bind their respective successors
and assigns.

10.12. MULTIPLE COUNTERPARTS.

     The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall
be deemed an original, but all of them together represent one and the same agreement.

10.13. TABLE OF CONTENTS, HEADINGS, ETC.

     The table of contents, cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

10.14. SEVERABILITY.

     Each provision of this Indenture shall be considered separable and if for any reason any
provision which is not essential to the effectuation of the basic purpose of this Indenture or 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 and a Holder shall
have no claim therefor against any party hereto.

10.15. SECURITIES IN A FOREIGN CURRENCY OR IN EURO.

     Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an

 -42- 

 

Officers’ Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a
particular Series of Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of Securities of all Series or
all Series affected by a particular action at the time outstanding and, at such time, there are
outstanding Securities of any Series which are denominated in a coin or currency other than Dollars
(including Euros), then the principal amount of Securities of such Series which shall be deemed to
be outstanding for the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section
10.15, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York City for cable
transfers of that currency as published by the Federal Reserve Bank of New York; PROVIDED, HOWEVER,
in the case of Euros, Market Exchange Rate shall mean the rate of exchange determined by the
Commission of the European Union (or any successor thereto) as published in the Official Journal of
the European Union (such publication or any successor publication, the “Journal”). If such Market
Exchange Rate is not available for any reason with respect to such currency, the Trustee shall use,
in its sole discretion and without liability on its part, such quotation of the Federal Reserve
Bank of New York or, in the case of Euros, the rate of exchange as published in the Journal, as of
the most recent available date, or quotations or, in the case of Euros, rates of exchange from one
or more major banks in The City of New York or in the country of issue of the currency in question
or, in the case of Euros, in Luxembourg or such other quotations or, in the case of Euros, rates of
exchange as the Trustee, upon consultation with the Company, shall deem appropriate. The
provisions of this paragraph shall apply in determining the equivalent principal amount in respect
of Securities of a Series denominated in currency other than Dollars in connection with any action
taken by Holders of Securities pursuant to the terms of this Indenture.

     All decisions and determinations of the Trustee regarding the Market Exchange Rate or any
alternative determination provided for in the preceding paragraph shall be in its sole discretion
and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all
purposes and irrevocably binding upon the Company and all Holders.

10.16. 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 or premium (if any) or other amount 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 New York Banking Day, then, the rate of exchange used shall be
the rate at which in accordance with normal banking procedures the Trustee could purchase in The
City of New York the Required Currency with the Judgment Currency on the New York Banking 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, 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

 -43- 

 

the full amount of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for the purpose of
recovering in the Required Currency the amount, if any, by which such actual receipt shall fall
short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not
be affected by judgment being obtained for any other sum due under this Indenture. For purposes of
the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in
The City of New York on which banking institutions are authorized or required by law, regulation or
executive order to close.

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	IOMAI CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	[Name of Trustee]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 -44- 

 

STATE OF MARYLAND

) SS

COUNTY OF                                         

     On this, the                      day of                                         ,                     , before me, a Notary Public in and for said County
and State, the undersigned officer, personally appeared                                                                         
        , known to
me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument
and acknowledged that he or she executed the same for the purposes therein contained.

     IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	 	 	 	 	 
	Notary Public

	 	 
 

	 	 

[SEAL]

My Commission Expires:

STATE OF MARYLAND

) SS

COUNTY
OF ________________

     On this, the                      day of                                         ,                     , before me, a Notary Public in and for said County
and State, the undersigned officer, personally appeared                                                                         
        , known to
me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument
and acknowledged that he or she executed the same for the purposes therein contained.

     IN WITNESS WHEREOF, I hereunto set my hand and official seal.

	 	 	 	 	 
	Notary Public

	 	 
 

	 	 

[SEAL]

My Commission Expires:

 -45-

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