Document:

Prepared and filed by St Ives Burrups

Exhibit 4.1

  EXECUTION COPY 

ENDURANCE SPECIALTY HOLDINGS LTD. 

AND 

THE BANK OF NEW YORK 

TRUSTEE 

 

 

SENIOR INDENTURE 

 

 

 

Dated as of July 15, 2004 

CROSS REFERENCE SHEET* 

Provisions of Trust Indenture Act of 1939 and Indenture to be dated as of July 15, 2004 between Endurance Specialty Holdings Ltd. and The Bank of New York, Trustee: 

	Section of the Act
	Section of Indenture

	 	 
	310(a)(1) and (2)	6.9
	310(a)(3) and (4)	Inapplicable
	310(b)	6.8 and 6.10(1), (2) and (4)
	310(c)	Inapplicable
	311(a)	6.13
	311(b)	6.13
	311(c)	Inapplicable
	312(a)	4.1 and 4.2
	312(b)	4.2
	312(c)	4.2
	313(a)	4.3
	313(b)(1)	Inapplicable
	313(b)(2)	4.3
	313(c)	4.3, 5.11, 6.10, 6.11, 8.2 and 12.2
	313(d)	4.3
	314(a)	3.4 and 3.11
	314(b)	Inapplicable
	314(c)(1) and (2)	11.5
	314(c)(3)	Inapplicable
	314(d)	Inapplicable
	314(e)	11.5
	314(f)	Inapplicable
	315(a), (c) and (d)	6.1
	315(b)	5.11
	315(e)	5.12
	316(a)(1)	5.9 and 5.10
	316(a)(2)	Not required
	 316(a)(last sentence)	7.4
	316(b)	5.7
	317(a)	5.2
	317(b)	3.3
	318(a)	11.7

* This Cross Reference Sheet is not part of the Indenture. 

  

TABLE OF CONTENTS 

Page 

	ARTICLE I DEFINITIONS	1	 
	 	 	 	 
	   Section 1.1	Certain Terms Defined	1	 
	 	 	 	 
	ARTICLE II SECURITIES	5	 
	 	 	 	 
	   Section 2.1	Forms Generally	5	 
	   Section 2.2	Form of Trustee’s Certificate of Authentication	6	 
	   Section 2.3	Amount Unlimited; Issuable in Series	6	 
	   Section 2.4	Authentication and Delivery of Securities	8	 
	   Section 2.5	Execution of Securities	10	 
	   Section 2.6	Certificate of Authentication	10	 
	   Section 2.7	Denomination and Date of Securities; Payments of Interest	10	 
	   Section 2.8	Registration, Transfer and Exchange	11	 
	   Section 2.9	Mutilated, Defaced, Destroyed, Lost and Stolen Securities	14	 
	   Section 2.10	Cancellation of Securities; Destruction Thereof	15	 
	   Section 2.11	Temporary Securities	15	 
	   Section 2.12	Global Securities	15	 
	   Section 2.13	CUSIP Numbers	15	 
	 	 	 	 
	ARTICLE III COVENANTS OF THE ISSUER	16	 
	 	 	 	 
	   Section 3.1	Payment of Principal, Premium and Interest	16	 
	   Section 3.2	Offices for Payments, Etc.	16	 
	   Section 3.3	Money for Security Payments to be Held in Trust; Unclaimed Money	17	 
	   Section 3.4	Statements of Officers of Issuer as to Default; Notice of Default	18	 
	   Section 3.5	Existence	18	 
	   Section 3.6	Maintenance of Properties	18	 
	   Section 3.7	Payment of Taxes and Other Claims	18	 
	   Section 3.8	Further Instruments and Acts	18	 
	   Section 3.9	Limitation on Liens	18	 
	   Section 3.10	Luxembourg Publications	18	 
	   Section 3.11	Commission Reports	19	 
	   Section 3.12	Calculation of Original Issue Discount	19	 
	 	 	 	 
	ARTICLE IV SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE	 	 
	 	TRUSTEE	19	 
	 	 	 	 
	   Section 4.1	Issuer to Furnish Trustee Information as to Names and Addresses of	 	 
	 	Securityholders	19	 
	   Section 4.2	Preservation of Information; Communications to Holders	19	 
	   Section 4.3	Reports by the Trustee	19	 
	 	 	 	 
	ARTICLE V REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF	 	 
	 	DEFAULT	20	 
	 	 	 	 
	   Section 5.1	Event of Default Defined; Acceleration of Maturity; Waiver of Default	20	 
	   Section 5.2	Collection of Indebtedness by Trustee; Trustee May Prove Debt	22	 
	   Section 5.3	Application of Proceeds	24	 
	   Section 5.4	Suits for Enforcement	24	 
	   Section 5.5	Restoration of Rights on Abandonment of Proceedings	24	 

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	   Section 5.6	Limitations on Suits by Securityholders	25	 
	   Section 5.7	Unconditional Right of Securityholders to Institute Certain Suits	25	 
	   Section 5.8	Powers and Remedies Cumulative; Delay or Omission Not Waiver of	 	 
	 	Default	25	 
	   Section 5.9	Control by Holders of Securities	25	 
	   Section 5.10	Waiver of Past Defaults	26	 
	   Section 5.11	Trustee to Give Notice of Default, but May Withhold in Certain	 	 
	 	Circumstances	26	 
	   Section 5.12	Right of Court to Require Filing of Undertaking to Pay Costs	26	 
	 	 	 	 
	ARTICLE VI CONCERNING THE TRUSTEE	27	 
	 	 	 	 
	   Section 6.1	Duties and Responsibilities of the Trustee; During Default; Prior to Default	27	 
	   Section 6.2	Certain Rights of the Trustee	28	 
	   Section 6.3	Trustee Not Responsible for Recitals, Disposition of Securities or	 	 
	 	Application of Proceeds Thereof	29	 
	   Section 6.4	Trustee and Agents May Hold Securities or Coupons; Collections, Etc	29	 
	   Section 6.5	Moneys Held by Trustee	29	 
	   Section 6.6	Compensation and Indemnification of Trustee	29	 
	   Section 6.7	Right of Trustee to Rely on Officer’s Certificate, Etc.	30	 
	   Section 6.8	Indentures Not Creating Potential Conflicting Interests for the Trustee	30	 
	   Section 6.9	Persons Eligible for Appointment as Trustee	30	 
	   Section 6.10	Resignation and Removal; Appointment of Successor Trustee	31	 
	   Section 6.11	Acceptance of Appointment by Successor Trustee	32	 
	   Section 6.12	Merger, Amalgamation, Conversion, Consolidation or Succession to	 	 
	 	Business of Trustee	32	 
	   Section 6.13	Preferential Collection of Claims Against the Issuer	33	 
	   Section 6.14	Appointment of Authenticating Agent	33	 
	 	 	 	 
	ARTICLE VII CONCERNING THE SECURITYHOLDERS	34	 
	 	 	 	 
	   Section 7.1	Evidence of Action Taken by Securityholders	34	 
	   Section 7.2	Proof of Execution of Instruments and of Holding of Securities	34	 
	   Section 7.3	Holders to Be Treated as Owners	35	 
	   Section 7.4	Securities Owned by Issuer Deemed Not Outstanding	35	 
	   Section 7.5	Right of Revocation of Action Taken	35	 
	 	 	 	 
	ARTICLE VIII SUPPLEMENTAL INDENTURES	36	 
	 	 	 	 
	   Section 8.1	Supplemental Indentures Without Consent of Securityholders	36	 
	   Section 8.2	Supplemental Indentures With Consent of Securityholders	37	 
	   Section 8.3	Effect of Supplemental Indenture	38	 
	   Section 8.4	Documents to Be Given to Trustee	38	 
	   Section 8.5	Notation on Securities in Respect of Supplemental Indentures	38	 
	   Section 8.6	Conformity with Trust Indenture Act of 1939	38	 
	 	 	 	 
	ARTICLE IX CONSOLIDATION, MERGER, AMALGAMATION, SALE OR CONVEYANCE	38	 
	 	 	 	 
	   Section 9.1	Issuer May Consolidate, Etc., Only on Certain Terms	38	 
	   Section 9.2	Successor Substituted for the Issuer	38	 
	   Section 9.3	Restrictions on Certain Dispositions	39	 
	 	 	 	 
	ARTICLE X SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS	39	 
	 	 	 	 
	   Section 10.1	Termination of Issuer’s Obligations Under the Indenture	39	 

ii 

   

	   Section 10.2	Application of Trust Funds	40	 
	   Section 10.3	Applicability of Defeasance Provisions; Issuer’s Option to Effect	 	 
	 	Defeasance or Covenant Defeasance	40	 
	   Section 10.4	Defeasance and Discharge	40	 
	   Section 10.5	Covenant Defeasance	41	 
	   Section 10.6	Conditions to Defeasance or Covenant Defeasance	41	 
	   Section 10.7	Deposited Money and U.S. Government Obligations to be Held in Trust	42	 
	   Section 10.8	Repayment to Issuer	43	 
	   Section 10.9	Indemnity For U.S. Government Obligations	43	 
	   Section 10.10	Reimbursement	43	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS	43	 
	 	 	 	 
	   Section 11.1	Incorporators, Shareholders, Officers and Directors of Issuer Exempt from	 	 
	 	Individual Liability	43	 
	   Section 11.2	Provisions of Indenture for the Sole Benefit of Parties and Holders of	 	 
	 	Securities and Coupons	43	 
	   Section 11.3	Successors and Assigns of Issuer Bound by Indenture	43	 
	   Section 11.4	Notices and Demands on Issuer, Trustee and Holders of Securities and	 	 
	 	Coupons	44	 
	   Section 11.5	Officer’s Certificates and Opinions of Counsel; Statements to Be Contained	 	 
	 	Therein	44	 
	   Section 11.6	Payments Due on Saturdays, Sundays and Holidays	45	 
	   Section 11.7	Conflict of Any Provision of Indenture with Trust Indenture Act of 1939	45	 
	   Section 11.8	New York Law to Govern; Waiver of Jury Trial	45	 
	   Section 11.9	Counterparts	45	 
	   Section 11.10	Effect of Headings	45	 
	   Section 11.11	Securities in a Foreign Currency or in ECU	45	 
	   Section 11.12	Judgment Currency	46	 
	   Section 11.13	Separability Clause	46	 
	 	 	 	 
	ARTICLE XII REDEMPTION OF SECURITIES AND SINKING FUNDS	46	 
	 	 	 	 
	   Section 12.1	Applicability of Article	46	 
	   Section 12.2	Notice of Redemption; Partial Redemptions	46	 
	   Section 12.3	Payment of Securities Called for Redemption	48	 
	   Section 12.4	Exclusion of Certain Securities from Eligibility for Selection for	 	 
	 	Redemption	48	 
	   Section 12.5	Mandatory and Optional Sinking Funds	48	 

iii 

THIS
    INDENTURE, dated as of July 15, 2004, between ENDURANCE SPECIALTY HOLDINGS
    LTD., an exempted company incorporated in Bermuda as a holding company (the “Issuer”),
    and The Bank of New York, a New York banking corporation, as trustee
	(the “Trustee”),

W I T N E S S E T H :

WHEREAS,
    the Issuer has duly authorized the issue from time to time of its unsecured
    debentures, notes or other evidences of
  unsecured indebtedness to be issued in one or more series (the “Securities”)
  up to such principal amount or amounts as may from time to time be authorized
  in accordance with the terms of this Indenture;

   WHEREAS, the Issuer has duly authorized the execution and
        delivery of this Indenture to provide, among other things, for the authentication,
        delivery and administration of the Securities; and 

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

     NOW, THEREFORE:  

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

ARTICLE I 

DEFINITIONS

Section 1.1         Certain
      Terms Defined. The
      following terms (except as otherwise expressly provided or unless the context
      otherwise
      clearly requires) for all purposes of this Indenture and of any indenture
      supplemental hereto shall have the respective meanings specified in this
      Section. All other terms used in this Indenture that are defined in the
      Trust Indenture Act of 1939 or the definitions of which in the Securities
      Act of 1933 are referred to in the Trust Indenture Act of 1939, including
      terms defined therein by reference to the Securities Act of 1933 (except
      as herein otherwise expressly provided or unless the context otherwise
      requires), shall have the meanings assigned to such terms in said Trust
      Indenture Act of 1939 and in said Securities Act as in force at the date
      of this Indenture. All accounting terms used herein and not expressly defined
      shall have the meanings assigned to such terms in accordance with generally
      accepted accounting principles, and the term “GENERALLY ACCEPTED
      ACCOUNTING PRINCIPLES” means such accounting principles as are generally
      accepted at the time of any computation.
	  The words “HEREIN,” “HEREOF” and “HEREUNDER” and
        other words of similar import refer to this Indenture as a whole and
        not to any particular Article, Section or other subdivision. The terms
        defined in this Article have the meanings assigned to them in this Article
        and include the plural as well as the singular.

     “AUTHENTICATING AGENT” shall have the meaning
        set forth in Section 6.14.  

    “AUTHORIZED NEWSPAPER” means a newspaper of general
        circulation, in the official language of the country of publication or
        in the English language customarily published on each Business Day whether
        or not published on Saturdays, Sundays or holidays. Whenever successive
        publications in an Authorized Newspaper are required hereunder they may
        be made (unless otherwise expressly provided herein) on the same or different
        days of the week and in the same or different Authorized Newspapers.  

    “BOARD OF DIRECTORS” means either the Board of
        Directors of the Issuer or any committee of such Board duly authorized
        to act on its behalf. 

    

 

“BOARD RESOLUTION” means
    a copy of one or more resolutions, certified by the secretary or an assistant
    secretary of
  the Issuer to have been duly adopted or consented to by the Board of Directors
  and to be in full force and effect, and delivered to the Trustee.

   “BUSINESS DAY” means, with respect to any Security,
        a day that in the city (or in any of the cities, if more than one) in
        which amounts are payable, as specified in the form of such Security,
        and in The City of New York is not a day on which banking institutions
        are authorized or required by law, executive order or regulation to close.  

     “COMMISSION” means the Securities and Exchange
        Commission, as from time to time constituted, created under the Securities
        Exchange Act of 1934, or if at any time after the execution and delivery
        of this Indenture such Commission is not existing and performing the
        duties now assigned to it under the Trust Indenture Act of 1939, then
        the body performing such duties on such date.  

     “CONSOLIDATED TOTAL ASSETS” means, in respect
        of the Issuer as of any date of determination, the amount of total assets
        shown on the consolidated balance sheet of the Issuer and its consolidated
        subsidiaries contained in the most recent annual or quarterly report
        filed with the Commission, or if the Issuer is not then subject to the
        Securities Exchange Act of 1934, the most recent annual or quarterly
        report to shareholders and, in respect of any Subsidiary as of any date
        of determination, the amount of total assets of such Subsidiary and its
        consolidated subsidiaries from which such consolidated balance sheet
        of the Issuer and its consolidated Subsidiaries was derived.  

     “CORPORATE TRUST OFFICE” means the principal
        office of the Trustee at which, at any time, its corporate trust business
        shall be administered, which office at the date hereof is located at
        101 Barclay Street, Floor 8W, New York, NY 10286, Attention: Corporate
        Trust Administration, or such other address as the Trustee may designate
        from time to time by notice to the Holders and the Issuer, or the principal
        corporate trust office of any successor Trustee (or such other address
        as such successor Trustee may designate from time to time by notice to
        the Holders and the Issuer). 

     “COUPON” means any interest coupon appertaining
        to an Unregistered Security.

     “COVENANT DEFEASANCE” shall
          have the meaning set forth in Section 10.5.

     “DEFEASANCE” shall
            have the meaning set forth in Section 10.4. 

     “DEPOSITARY” means, with respect to the Securities
        of any series issuable or issued in global form, the Person designated
        as Depositary by the Issuer pursuant to Section 2.3 until a successor
        Depositary shall have become such pursuant to the applicable provisions
        of this Indenture, and thereafter “DEPOSITARY” shall mean
        or include each Person who is then a Depositary hereunder, and if at
        any time there is more than one such Person, “DEPOSITARY” as
        used with respect to the Securities of any such series shall mean the
        Depositary with respect to the Registered Securities in global form of
        that series.  

     “DOLLAR” means the coin or currency of the United
        States of America as at the time of payment is legal tender for the payment
        of public and private debts.  

     “ECU” means the European Currency Unit as defined
        and revised from time to time by the Council of European Communities.  

     “EVENT OF DEFAULT” means any event or condition
        specified as such in Section 5.1.  

     “FAIR VALUE” when used with respect to Voting
        Shares means the fair value as determined in good faith by the Board
        of Directors of the Issuer.  

     “FOREIGN CURRENCY” means a currency issued by
        the government of a country other than the United States. 

2 

    

 

“HOLDER,” “HOLDER OF SECURITIES,” “SECURITYHOLDER” or
  other similar terms mean (a) in the case of any Registered Security, the person
  in whose name such Security is registered in the security register kept by
  the Issuer for that purpose in accordance with the terms hereof, and (b) in
  the case of any Unregistered Security, the bearer of such Security, or any
  Coupon appertaining thereto, as the case may be.

   “INDEBTEDNESS” shall have the meaning set forth
        in Section 5.1.  

     “INDENTURE” means this instrument as originally
        executed and delivered or, if amended or supplemented as herein provided,
        as so amended or supplemented or both, and shall include the forms and
        terms of particular series of Securities established as contemplated
        hereunder.  

     “ISSUER” means (except as otherwise provided
        in Article VI) Endurance Specialty Holdings Ltd., an exempted company
        incorporated in Bermuda as a holding company and, subject to Article
        IX, its successors and assigns.  

     “ISSUER ORDER” means a written statement, request
        or order of the Issuer signed in its name by the chairman or vice chairman
        of the Board of Directors, the president, any executive, senior or other
        vice president or the treasurer of the Issuer.  

     “JUDGMENT CURRENCY” shall have the meaning set
        forth in Section 11.12.  

     “OFFICER’S CERTIFICATE” means a certificate
        signed by the chairman or vice chairman of the Board of Directors, the
        president or any executive, senior or other vice president or the treasurer
        of the Issuer and delivered to the Trustee. Each such certificate shall
        comply with Section 314 of the Trust Indenture Act of 1939 and include the statements provided
        for in Section 11.5.  

     “OPINION OF COUNSEL” means an opinion in writing
        signed by the General Counsel of the Issuer or by such other legal counsel
        who may be an employee of or counsel to the Issuer and who shall be satisfactory
        to the Trustee. Each such opinion shall comply with Section 314 of the
        Trust Indenture Act of 1939 and include the statements provided for in
        Section 11.5.  

     “ORIGINAL ISSUE DATE” of any Security (or portion
        thereof) means the earlier of (1) the date of such Security or (2) the
        date of any Security (or portion thereof) for which such Security was
        issued (directly or indirectly) on registration of transfer, exchange
        or substitution.  

     “ORIGINAL ISSUE DISCOUNT SECURITY” means any
        Security that provides for an amount less than the principal amount thereof
        to be due and payable upon a declaration of acceleration of the maturity
        thereof pursuant to Section 5.1.  

     “OUTSTANDING” (except as otherwise provided
        in Sections 7.4, 10.4 and 10.5), when used with reference to Securities,
        shall, subject to the provisions of Sections 7.4, 10.4 and 10.5 mean,
        as of any particular time, all Securities authenticated and delivered
        by the Trustee under this Indenture, except  

     (1)     Securities theretofore canceled by the Trustee or delivered
        to the Trustee for cancellation;  

     (2)     Securities, or portions thereof, for the payment or
        redemption of which moneys or U.S. Government Obligations (as provided
        for in Section 10.1) in the necessary amount shall have been deposited
        in trust with the Trustee or with any paying agent (other than the Issuer)
        or shall have been set aside, segregated and held in trust by the Issuer
        for the Holders of such Securities (if the Issuer shall act as its own
        paying agent), provided that if such Securities, or portions thereof,
        are to be redeemed prior to the maturity thereof, notice of such redemption
        shall have been given as herein provided, or provision satisfactory to
        the Trustee shall have been made for giving such notice; and 

3 

    

 

(3)      Securities
  which shall have been paid or in substitution for which other Securities shall
  have been authenticated and delivered pursuant to the terms of Section 2.9
  (except with respect to any such Security as to which proof satisfactory to
  the Trustee is presented that such Security is held by a person in whose hands
  such Security is a legal, valid and binding obligation of the Issuer) or Securities
  not deemed outstanding pursuant to Section 12.2.

   In determining whether the Holders of the requisite principal
        amount of Outstanding Securities of any or all series have given any
        request, demand, authorization, direction, notice, consent or waiver
        hereunder, the principal amount of an Original Issue Discount Security
        that shall be deemed to be Outstanding for such purposes shall be the
        amount of the principal thereof that would be due and payable as of the
        date of such determination upon a declaration of acceleration of the
        maturity thereof pursuant to Section 5.1.  

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

     “PERMITTED LIENS” means liens for taxes or assessments
        or governmental charges or levies not then due and delinquent or the
        validity of which is being contested in good faith or which are less
        than $1,000,000 in amount and liens created by or resulting from any
        litigation or legal proceeding which is currently being contested in
        good faith by appropriate proceedings or which involves claims of less
        than $1,000,000.  

     “PERSON” means a legal person, including any
        individual, company, limited liability company, corporation, estate,
        partnership, limited liability partnership, joint venture, association,
        joint shares company, trust, unincorporated organization or government
        or any agency or political subdivision thereof or any other entity of
        whatever nature.  

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

     “RECORD DATE” shall have the meaning set forth
        in Section 2.7.  

     “REGISTERED SECURITY” means any Security registered
        on the Security register of the Issuer.  

     “REQUIRED CURRENCY” shall have the meaning set
        forth in Section 11.12.  

     “RESPONSIBLE OFFICER” when used with respect
        to the Trustee means any vice president, any senior trust officer or
        any trust officer, any assistant vice president, any assistant treasurer,
        or any other officer or assistant officer associated with the corporate
        trust department of the Trustee customarily performing functions similar
        to those performed by the persons who at the time shall be such officers,
        respectively, or to whom any corporate trust matter is referred because
        of his or her knowledge of and familiarity with the particular subject.  

     “RESTRICTED SUBSIDIARY” means (1) Endurance
        Specialty Insurance Ltd., Endurance Reinsurance Corporation of America
        and Endurance Worldwide Insurance Limited so long as they are Subsidiaries
        of the Issuer; (2) any other future or present Subsidiary the Consolidated
        Total Assets of which constitute 20 percent or more of the Consolidated
        Total Assets of the Issuer; and (3) any Subsidiary which is a successor,
        by merger or otherwise, to substantially all of the business or properties
        of any Subsidiary referred to or described in the foregoing clauses (1)
        or (2).  

     “SECURITY” or “SECURITIES” (except
        as otherwise provided in Section 7.4) has the meaning stated in the first
        recital of this Indenture, or, as the case may be, Securities that have
        been authenticated and delivered under this Indenture. 

4 

“SUBSIDIARY” means
    any corporation, partnership or other entity of which at the time of determination
    the Issuer
  owns or controls directly or indirectly more than 50% of the shares of Voting
  Shares.

   “TRUST INDENTURE ACT OF 1939” (except as otherwise
        provided in Sections 8.1 and 8.2) means the Trust Indenture Act of 1939
        as in force at the date as of which this Indenture was originally executed.  

     “TRUSTEE” means the Person identified as “Trustee” in
        the first paragraph hereof and, subject to the provisions of Article
        Six, shall also include any successor trustee. “Trustee” shall
        also mean or include each Person who is then a trustee hereunder and
        if at any time there is more than one such Person, “Trustee” as
        used with respect to the Securities of any series shall mean the trustee
        with respect to the Securities of such series.  

     “UNREGISTERED SECURITY” means any
        Security other than a Registered Security.  

     “U.S. GOVERNMENT OBLIGATIONS” means securities
        which are (1) direct obligations of the United States of America for
        the payment of which its full faith and credit is pledged or (2) obligations
        of a Person controlled or supervised by and acting as an agency or instrumentality
        of the United States of America the timely payment of which is unconditionally
        guaranteed by the full faith and credit of the United States of America
        which, in either case, are not callable or redeemable at the option of
        the issuer thereof or otherwise subject to prepayment, and shall also
        include a depository receipt issued by a New York Clearing House bank
        or trust company as custodian with respect to any such U.S. Government
        Obligation or a specific payment or interest on or principal of any such
        U.S. Government Obligation held by such custodian for the account of
        the holder of a depository receipt, provided that (except as required
        by law) such custodian is not authorized to make any deduction from the
        amount payable to the holder of such depository receipt or from any amount
        held by the custodian in respect of the U.S. Government Obligation or
        the specific payment of interest on or principal of the U.S. Government
        Obligation evidenced by such depository receipt.  

     “VOTING SHARES” means shares of any class or
        classes having general voting power under ordinary circumstances to elect
        a majority of the board of directors, managers or trustees of the corporation
        in question, provided that, for the purposes hereof, shares which carries
        only the right to vote conditionally on the happening of an event shall
        not be considered voting shares whether or not such event shall have
        happened.  

     “YIELD TO MATURITY” means the yield to maturity
        on a series of securities, calculated at the time of issuance of such
        series, or, if applicable, at the most recent redetermination of interest
        on such series, and calculated in accordance with accepted financial
        practice.

ARTICLE II 

SECURITIES 

Section 2.1       Forms
      Generally. The Securities of each series and the
      Coupons, if any, to be attached thereto shall be substantially in such
      form (not inconsistent with this Indenture) as shall be established by
      or pursuant to one or more Board Resolutions (as set forth in a Board Resolution
      or, to the extent established pursuant to rather than set forth in a Board
      Resolution, an Officer’s Certificate detailing such establishment) or in
      one or more indentures supplemental hereto, in each case with such appropriate
      insertions, omissions, substitutions and other variations as are required
      or permitted by this Indenture and may have imprinted or otherwise reproduced
      thereon such legend or legends or endorsements, not inconsistent with the
      provisions of this Indenture, as may be required to comply with any law
      or with any rules or regulations pursuant thereto, or with any rules of
      any securities exchange or to conform to general usage, all as may be determined
      by the officers executing such Securities and Coupons, if any, as evidenced
      by their execution of such Securities and Coupons. If temporary Securities
      of any series are issued as permitted by Section 2.11, the form thereof
      also shall be established as provided in the preceding sentence.

 

5 

    

 

If the forms of Securities and Coupons, if any,
  of the series are established by, or by action taken pursuant to, a Board Resolution,
  a copy of the Board Resolution together with an appropriate record of any such
  action taken pursuant thereto, including a copy of the approved form of Securities
  or Coupons, if any, shall be certified by the Secretary or an Assistant Secretary
  of the Issuer and delivered to the Trustee at or prior to the delivery of the
  Issuer Order contemplated by Section 2.4 for the authentication and delivery
  of such Securities.

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

     Section 2.2        Form
          of Trustee’s Certificate of Authentication.
          The Trustee’s certificate of authentication on all Securities shall
          be in substantially the following form:  

     “This is one of the Securities referred to in the
        within mentioned Senior Indenture. 

 	 	 	 	

______________________________ ,

  as Trustee
  

   By
      ___________________________

                  Authorized Signatory”   

If at any time there shall be an Authenticating
  Agent appointed with respect to any series of Securities, then the Trustee’s
  Certificate of Authentication to be borne by the Securities of each such series
  shall be substantially as follows:
   “This is one of the Securities referred to in the
        within mentioned Senior Indenture.

___________________________ ,

  as Authenticating Agent
  
  

     By
      ____________________________

                  Authorized Signatory” 

 

Section 2.3 Amount
      Unlimited; Issuable in Series. The aggregate principal
      amount of Securities which may be authenticated and delivered under this
      Indenture is unlimited.
       The Securities may be issued in one or more series and each
        such series shall rank equally and pari passu with all other unsecured
        and unsubordinated debt of the Issuer. There shall be established in
        or pursuant to one or more Board Resolutions (and to the extent established
        pursuant to rather than set forth in a Board Resolution, in an Officer’s
        Certificate detailing such establishment) or established in one or more
        indentures supplemental hereto, prior to the initial issuance of Securities
        of any series,  

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

     (2)        any limit upon
        the aggregate principal amount of the Securities of the series that may
        be authenticated and delivered under this Indenture (except for Securities
        authenticated and delivered upon registration of transfer of, or in exchange
        for, or in lieu of, other Securities of the series pursuant to Section
        2.8, 2.9, 2.11, 8.5 or 12.3);  

     (3)        if other than
        Dollars, the coin or currency in which the Securities of that series
        are denominated (including, but not limited to, any Foreign Currency
        or ECU);  

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

6 

    

 

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

   (6)        the
        place or places where the principal of and any interest on Securities
        of the series
        shall be payable (if other than as provided in Section 3.2);  

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

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

     (9)        if other than
        denominations of $1,000 and any integral multiple thereof in the case
        of Registered Securities, or $1,000 and $5,000 in the case of Unregistered
        Securities, the denominations in which Securities of the series shall
        be issuable;  

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

     (11)       if other than
        the coin or currency in which the Securities of that series are denominated,
        the coin or currency in which payment of the principal of or interest
        on the Securities of such series shall be payable;  

     (12)        if the principal
        of or interest on the Securities of such series are to be payable, at
        the election of the Issuer or a Holder thereof, in a coin or currency
        other than that in which the Securities are denominated, the period or
        periods within which, and the terms and conditions upon which, such election
        may be made;  

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

     (14)       whether the
        Securities of the series will be issuable as Registered Securities or Unregistered Securities (with or without Coupons), and whether
        such Securities will be issuable in global form or any combination of
        the foregoing, any restrictions applicable to the offer, sale or delivery
        of Unregistered Securities or the payment of interest thereon and, if
        other than as provided in Section 2.8, the terms upon and locations at
        which Unregistered Securities of any series may be exchanged for Registered
        Securities of such series and vice versa;  

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

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

7 

    

 

(17)        any
    Trustees, Depositaries, Authenticating Agents, paying or transfer Agents
    or Registrars or any other agents with respect to the Securities of such
    series;

   (18)        any
        deletions from, modifications of or additions to the Events of Default
        or covenants with respect to the Securities of such series; 

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

     (20)        the
        date as of which any Unregistered Securities of the series and any temporary
        Security in global form representing Outstanding Securities of the series
        shall be dated if other than the date of original issuance of the first
        Security of the series to be issued;  

     (21)        the
        applicability, if any, to the Securities of or within the series of Article
        X, or such other means of Defeasance or Covenant Defeasance as may be
        specified for the Securities and Coupons, if any, of such series; 

     (22)        if
        the Securities of the series shall be issued in whole or in part in global
        form (a) the Depositary for such global Securities, (b) the form of any
        legend in addition to or in lieu of that in Section 2.4 which shall be
        borne by such global security, (c) whether beneficial owners of interests
        in any Securities of the series in global form may exchange such interests
        for certificated Securities of such series and of like tenor of any authorized
        form and denomination, and (d) if other than as provided in Section 2.8,
        the circumstances under which any such exchange may occur;  

     (23)        the
        right of the Issuer, if any, to defer any payment of principal of or
        interest on the Securities of the series, or any tranche thereof, and
        the maximum length of any such deferral period; and  

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

     All Securities of any one series and Coupons, if any, appertaining
        thereto, shall be substantially identical, except in the case of Registered
        Securities as to denomination and except as may otherwise be provided
        by or pursuant to the Board Resolution or Officer’s Certificate referred
        to above or as set forth in any such indenture supplemental hereto. All
        Securities of any one series need not be issued at the same time and
        may pursuant to the Board Resolution or Officer’s Certificate be issued
        from time to time, consistent with the terms of this Indenture, if so
        provided by or pursuant to such Board Resolution, such Officer’s Certificate
        or in any such indenture supplemental hereto.  

     Section 2.4        Authentication
          and Delivery of Securities. (1) The Issuer
          may deliver Securities of any series having attached thereto appropriate
        Coupons, if any, executed by the Issuer to the Trustee for authentication
        together with the applicable documents referred to below in this Section,
        and the Trustee shall thereupon authenticate and deliver such Securities
        to or upon the order of the Issuer (contained in the Issuer Order referred
        to below in this Section) or pursuant to such procedures acceptable to
        the Trustee and to such recipients as may be specified from time to time
        by an Issuer Order. The maturity date, original issue date, interest
        rate and any other terms of the Securities of such series and Coupons,
        if any, appertaining thereto shall be determined by or pursuant to such
        Issuer Order and procedures. In authenticating such Securities and accepting
        the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall
        be entitled to receive and (subject to Section 6.1) shall be fully protected
        in relying upon, unless and until such documents have been superseded
        or revoked:

    
      (a)        an
          Issuer Order requesting such authentication and setting forth delivery
          instructions if the Securities and Coupons, if any, are not to be delivered
          to the Issuer, provided that, with respect to Securities of a series
          subject to a Periodic Offering, (i) such Issuer Order may be delivered
          by the Issuer to the Trustee prior to the delivery to the Trustee of
          such Securities for authentication and delivery, (ii) the Trustee shall
          authenticate and deliver Securities of such series for original issue
          from time to time,
          in an aggregate principal amount not exceeding the aggregate
          principal amount established for such series, pursuant to an Issuer
          Order or pursuant to procedures acceptable to the Trustee as may be
          specified from time to time by an Issuer Order and (iii) the maturity
          date or dates, original issue date or dates, interest rate or rates
          and any other terms of Securities of such series shall be determined
          by an Issuer Order or pursuant to such procedures;

  

8 

  

(b)        any
      Board Resolution, Officer’s Certificate and/or executed supplemental
      indenture referred to in Sections 2.1 and 2.3 by or pursuant to which the
      forms and terms of the Securities and Coupons, if any, were established; 

   (c)        an
      Officer’s Certificate setting forth the form or forms and terms of
      the Securities and Coupons, if any, stating that the form or forms
      and terms of the Securities and Coupons, if any, have been established
      pursuant to Sections 2.1 and 2.3 and comply with this Indenture, and covering
      such other matters as the Trustee may reasonably request; and 

   (d)        at
      the option of the Issuer, either one or more Opinions of Counsel, or a
      letter addressed to the Trustee permitting it to conclusively rely, as
      to the truth of the statements and the correctness of the opinions expressed
      therein, on one or more Opinions of Counsel, substantially to the effect
      that: 

  (i)        the
      forms of the Securities and Coupons, if any, have been duly authorized
      and established in conformity with the provisions of this Indenture;  

   (ii)        in
      the case of an underwritten offering, the terms of the Securities have
      been duly authorized and established in conformity with the provisions
      of this Indenture, and, in the case of an offering that is not underwritten,
      certain terms of the Securities have been established pursuant to a Board
      Resolution, an Officer’s Certificate or a supplemental indenture in
      accordance with this Indenture, and when such other terms as are to be
      established pursuant to procedures set forth in an Issuer Order shall have
      been established, all such terms will have been duly authorized by the
      Issuer and will have been established in conformity with the provisions
      of this Indenture;  

   (iii)        when
      the Securities and Coupons, if any, have been executed by the Issuer and
      authenticated by the Trustee in accordance with the provisions of this
      Indenture and delivered to and duly paid for by the purchasers thereof,
      they will have been duly issued under this Indenture, will be entitled
      to the benefits of this Indenture, and will be valid and binding obligations
      of the Issuer, enforceable in accordance with their respective terms except
      as (i) the enforceability thereof may be limited by bankruptcy, insolvency
      or similar laws affecting creditors’ rights generally and (ii) rights
      of acceleration, if any, and the availability of equitable remedies may
      be limited by equitable principles of general applicability; and  

   (iv)        that
      all applicable laws and requirements in respect of the execution and delivery
      by the Issuer of such Securities have been complied with.

In rendering such opinions, any counsel may qualify
  any opinions as to enforceability by stating that such enforceability may be
  limited by bankruptcy, insolvency, reorganization, liquidation, moratorium
  and other similar laws affecting the rights and remedies of creditors and is
  subject to general principles of equity (regardless of whether such enforceability
  is considered in a proceeding in equity or at law). Such counsel may rely upon
  opinions of other counsel (copies of which shall be delivered to the Trustee),
  who shall be counsel reasonably satisfactory to the Trustee, in which case
  the opinion shall state that such counsel believes he or she and the Trustee
  are entitled so to rely. Such counsel may also state that, insofar as such
  opinion involves factual matters, he or she has relied, to the extent he or
  she deems proper, upon certificates of officers of the Issuer and its subsidiaries
  and certificates of public officials.

   (2)        The
        Trustee shall have the right to decline to authenticate and deliver any
        Securities under this Section if the Trustee, being advised by counsel,
        determines that such action may not lawfully be
      taken by the Issuer or if the Trustee in good faith by its
      board of directors or board of trustees, executive committee, or a trust
      committee of directors or trustees or Responsible Officers shall determine
      that such action would expose the Trustee to personal liability to existing
      Holders or would affect the Trustee’s own rights, duties or immunities
under the Securities, this Indenture or otherwise.

9 

  

 

(3)         If
    the Issuer shall establish pursuant to Section 2.3 that the Securities of
    a series are to be issued in whole or in part in global form, then the Issuer
    shall execute and the Trustee shall, in accordance with this Section and
    the Issuer Order with respect to such series, authenticate and deliver one
    or more Securities in global form that (a) shall represent and shall be denominated
    in an amount equal to the aggregate principal amount of all of the Securities
    of such series issued and not yet canceled, (b) if such Securities are Registered
    Securities, shall be registered in the name of the Depositary for such Security
    or Securities in global form or the nominee of such Depositary, (c) if such
    Securities are Registered Securities, shall be delivered by the Trustee to
    such Depositary or pursuant to such Depositary’s instructions and (d)
    shall bear a legend substantially to the following effect: “Unless
    and until it is exchanged in whole or in part for Securities in definitive
    form, this Security may not be transferred except as a whole by the Depositary
    to the nominee of the Depositary or by a nominee of the Depositary to the
    Depositary or another nominee of the Depositary or by the Depositary or any
    such nominee to a successor Depositary or a nominee of such successor Depositary.” The
    Trustee shall have no responsibility for any action taken or not taken by
    the Depositary.

   (4)         Each
        Depositary designated pursuant to Section 2.3 must, at the time of its
        designation and at all times while it serves as Depositary, be a clearing
        agency registered under the Securities Exchange Act of 1934 and any other
        applicable statute or regulation.  

     Section 2.5         Execution
          of Securities. The Securities and, if applicable,
          each Coupon appertaining thereto shall be signed on behalf of the Issuer
          by the chairman or vice chairman of its Board of Directors or its president
          or any executive, senior or other vice president or its treasurer,
          but need not, be attested. Such signatures may be the manual or facsimile
          signatures of the present or any future such officers. Typographical
          and other minor errors or defects in any such signature shall not affect
          the validity or enforceability of any Security that has been duly authenticated
          and delivered by the Trustee.

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

     Section 2.6         Certificate
          of Authentication. Only such Securities as
          shall bear thereon a certificate of authentication substantially in
          the form herein before recited, executed by the Trustee by the manual
          signature of one of its authorized signatories, shall be entitled to
          the benefits of this Indenture or be valid or obligatory for any purpose.
          No Coupon shall be entitled to the benefits of this Indenture or shall
          be valid and obligatory for any purpose until the certificate of authentication
          on the Security to which such Coupon appertains shall have been duly
          executed by the Trustee. The execution of such certificate by the Trustee
          upon any Security executed by the Issuer shall be conclusive evidence
          that the Security so authenticated has been duly authenticated and
          delivered hereunder and that the Holder is entitled to the benefits
          of this Indenture.  

     Section 2.7         Denomination
          and Date of Securities; Payments of Interest.
          The Securities of each series shall be issuable as Registered Securities
          or Unregistered Securities in denominations established as contemplated
          by Section 2.3 or, with respect to the Registered Securities of any
          series, if not so established, in denominations of $1,000 and any integral
          multiple thereof. If denominations of Unregistered Securities of any series are not so established,
        such Securities shall be issuable in denominations of $1,000 and $5,000.
        The Securities of each series shall be numbered, lettered or otherwise
        distinguished in such manner or in accordance with such plan as the officers
        of the Issuer executing the same may determine with the approval of the
        Trustee, as evidenced by the execution and authentication thereof.   

10 

  
 

Each Registered Security shall be dated the date
  of its authentication. Each Unregistered Security shall be dated as provided
  in the resolution or resolutions of the Board of Directors of the Issuer referred
  to in Section 2.3. The Securities of each series shall bear interest, if any,
  from the date, and such interest shall be payable on the dates, established
  as contemplated by Section 2.3.

   The person in whose name any Registered Security of any
        series is registered at the close of business on any record date applicable
        to a particular series with respect to any interest payment date for
        such series shall be entitled to receive the interest, if any, payable
        on such interest payment date notwithstanding any transfer or exchange
        of such Registered Security subsequent to the record date and prior to
        such interest payment date, except if and to the extent the Issuer shall
        default in the payment of the interest due on such interest payment date
        for such series, in which case such defaulted interest shall be paid
        to the persons in whose names Outstanding Registered Securities for such
        series are registered at the close of business on a subsequent record
        date (which shall be not less than five Business Days prior to the date
        of payment of such defaulted interest) established by notice given by
        mail by or on behalf of the Issuer to the Holders of Registered Securities
        not less than 15 days preceding such subsequent record date. The term “record
        date” as used with respect to any interest payment date (except
        a date for payment of defaulted interest) for the Securities of any series
        shall mean the date specified as such in the terms of the Registered
        Securities of such series established as contemplated by Section 2.3,
        or, if no such date is so established, if such interest payment date
        is the first day of a calendar month, the fifteenth day of the next preceding
        calendar month or, if such interest payment date is the fifteenth day
        of a calendar month, the first day of such calendar month, whether or
        not such record date is a Business Day.  

     Section 2.8        Registration,
          Transfer and Exchange. (1) The Issuer will
          keep at each office or agency to be maintained for the purpose as provided
          in Section 3.2 for each series of Securities a register or registers
          in which, subject to such reasonable regulations as it may prescribe,
          it will provide for the registration of Registered Securities of such
          series and the registration of transfer of Registered Securities of
          such series. Such register shall be in written form in the English
          language. At all reasonable times such register or registers shall
          be open for inspection by the Trustee.  

     (2)        Subject
        to the prior written consent of the Bermuda Monetary Authority, where
        applicable, upon due presentation for registration of transfer of any
        Registered Security of any series at any such office or agency to be
        maintained for the purpose as provided in Section 3.2, the Issuer shall
        execute and the Trustee shall authenticate and deliver in the name of
        the transferee or transferees a new Registered Security or Registered
        Securities of the same series, maturity date, interest rate and original
        issue date in authorized denominations for a like aggregate principal
        amount.  

     Unregistered Securities (except for any temporary Unregistered
        Securities in global form) and Coupons (except for Coupons attached to
        any temporary Unregistered Securities in global form) shall be transferable
        by delivery.  

     (3)        (a)
        At the option of the Holder thereof, Registered Securities of any series
        (other than a Registered Security in global form, except as set forth
        below) may be exchanged for a Registered Security or Registered Securities
        of such series having authorized denominations and an equal aggregate
        principal amount, upon surrender of such Registered Securities to be
        exchanged at the agency of the Issuer that shall be maintained for such
        purpose in accordance with Section 3.2 and upon payment, if the Issuer
        shall so require, of the charges hereinafter provided. Whenever any Registered
        Securities are so surrendered for exchange, the Issuer shall execute,
        and the Trustee shall authenticate and deliver, the Registered Securities
which the Holder making the exchange is entitled to receive.  

11 

  

  (b)        Unless
      otherwise specified as contemplated by Section 2.3, at the option of the
      Holder, Unregistered Securities of such series may be exchanged for Registered
      Securities (if the Securities of such series are issuable in registered
      form) or Unregistered Securities (if Unregistered Securities of such series
      are issuable in more than one denomination and such exchanges are permitted
      by such series) of the same series, of any authorized denominations and
      of like tenor and aggregate principal amount, upon surrender of the Securities
      to be exchanged at the agency of the Issuer that shall be maintained for
      such purpose in accordance with Section 3.2, with all unmatured Coupons
      and all matured Coupons in default thereto appertaining. If the Holder
      of an Unregistered Security is
  unable to produce any such unmatured Coupon or Coupons or matured Coupon or
      Coupons in default, such exchange may be effected if the Unregistered Securities
      are accompanied by payment in funds acceptable to the Issuer and the Trustee
      in an amount equal to the face amount of such missing Coupon or Coupons,
      or the surrender of such missing Coupon or Coupons may be waived by the
      Issuer and the Trustee if there be furnished to them such security or indemnity
      as they may require to save each of
  them and any paying agent harmless. If thereafter the Holder of such Security
      shall surrender to any paying agent any such missing Coupon in respect
      of which such a payment shall have been made, such Holder shall be entitled
      to receive the amount of such payment as provided in Section 3.2. Notwithstanding
      the foregoing, in case any Unregistered Security of any series is surrendered
      at any such office or agency in exchange for a Registered Security of the
      same series after the close of business
  at such office or agency on (i) any record date and before the opening of business
      at such office or agency on the relevant interest payment date, or (ii)
      any special record date for payment of defaulted interest and before the
      opening of business at such office or agency on the related date for payment
      of defaulted interest, such Unregistered Security shall be surrendered
      without the Coupon relating to such interest or defaulted interest payment
      date or proposed date of payment, as the case
  may be (or, if such Coupon is so surrendered with such Unregistered Security,
  such Coupon shall be returned to the person so surrendering the Unregistered
  Security), and interest or defaulted interest, as the case may be, will not
  be payable on such date or proposed date for payment, as the case may be, in
  respect of the Registered Security issued in exchange for such Unregistered
  Security, but will be payable only to the Holder of such Coupon, when due in
  accordance with the provisions of this
  Indenture. 

   (c)        Registered
      Securities of any series may not be exchanged for Unregistered Securities
      of such series unless (i) otherwise specified pursuant to Section 2.3 and
      (ii) the Issuer has delivered to the Trustee an Opinion of Counsel that
      (A) the Issuer has received from the Internal Revenue Service a ruling
      or (B) since the date hereof, there has been a change in the applicable
      Federal income tax law, in either case to the effect that the inclusion
      of terms permitting Registered Securities to be exchanged for Unregistered
      Securities would result in no adverse Federal income tax effect to the
      Issuer or to any Holder. Whenever any Securities are so surrendered for
      exchange, the Issuer shall execute, and the Trustee shall authenticate
      and deliver, the Securities which the Holder making the exchange is entitled
      to receive. All Securities and Coupons surrendered upon any exchange or
      transfer provided for in this Indenture shall be canceled promptly and
      disposed of by the Trustee in accordance with its procedures for the disposition
      of cancelled securities in effect as of the date of such cancellation and
      the Trustee will deliver a certificate of disposition thereof to the Issuer.

(4)        All
    Registered Securities presented for registration of transfer, exchange, redemption
    or payment shall (if so required by the Issuer or the Trustee) be duly endorsed
    by, or be accompanied by a written instrument or instruments of transfer
    in form satisfactory to the Issuer and the Trustee duly executed by the Holder
    or his or her attorney duly authorized in writing.

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

     The Issuer shall not be required to exchange or register
        a transfer of (a) any Securities of any series for a period of 15 days
        next preceding the first mailing of notice of redemption of Securities
        of such series to be redeemed or (b) any Securities selected, called
        or being called for redemption, in whole or in part, except, in the case
        of any Security to be redeemed in part, the portion thereof not so to
        be redeemed.  

     (5)         Notwithstanding
        any other provision of this Section 2.8, unless and until it is exchanged
        in whole or in part for Securities in definitive registered form, a Registered
        Security in global form representing all or a portion of the Securities
        of a series may not be transferred except as a whole by the Depositary
        for such series to a nominee of such Depositary or by a nominee of such
        Depositary to such Depositary or another nominee of such Depositary or
        by such Depositary or any such nominee to a successor Depositary for
such series or a nominee of such successor Depositary. 

12 

  

  

If at
    any time the Depositary for any Registered Securities of a series represented
    by one or more Registered Securities in
  global form notifies the Issuer that it is unwilling or unable to continue
  as Depositary for such Registered Securities or if at any time the Depositary
  for such Registered Securities shall no longer be eligible under Section 2.4,
  the Issuer shall appoint a successor Depositary eligible under Section 2.4
  with respect to such Registered Securities. If a successor Depositary eligible
  under Section 2.4 for such Registered Securities is not appointed by the Issuer
  within 90 days after the Issuer receives such notice or becomes aware of such
  ineligibility, the Issuer’s election pursuant to Section 2.3 that such
  Registered Securities be represented by one or more Registered Securities in
  global form shall no longer be effective and the Issuer will execute, and the
  Trustee, upon receipt of an Officer’s Certificate for the authentication
  and delivery of definitive Securities of such series, will authenticate and
  deliver, Securities of such series in definitive registered form without Coupons,
  in any authorized denominations, in an aggregate principal amount equal to
  the principal amount of the Registered Security or Securities in global form
  representing such Registered Securities in exchange for such Registered Security
  or Securities in global form.

   The Issuer may at any time and in its sole discretion determine
      that the Registered Securities of any series issued in the form of one
      or more Registered Securities in global form shall no longer be represented
      by a Registered Security or Securities in global form. In such event the
      Issuer will execute, and the Trustee, upon receipt of an Officer’s
      Certificate for the authentication and delivery of definitive Securities
      of such series, will authenticate and deliver, Securities of such series
      in definitive registered form without Coupons, in any authorized denominations,
      in an aggregate principal amount equal to the principal amount of the Registered
      Security or Securities in global form representing such Registered Securities,
      in exchange for such Registered Security or Securities in global form.  

   If specified by the Issuer pursuant to Section 2.3 with respect
      to Securities represented by a Registered Security in global form, the
      Depositary for such Registered Security in global form may surrender such
      Registered Security in global form in exchange in whole or in part for
      Registered Securities of the same series in definitive form on such terms
      as are acceptable to the Issuer and such Depositary. Thereupon, the Issuer
      shall execute, and the Trustee shall authenticate and deliver, without
      service charge, 

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

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

   Upon the exchange of a Registered Security in global form
      for Registered Securities in definitive form without Coupons, in authorized
      denominations, such Registered Security in global form shall be canceled
      by the Trustee or an agent of the Issuer or the Trustee. Registered Securities
      in definitive form issued in exchange for a Registered Security in global
      form pursuant to this Section 2.8 shall be registered in such names and
      in such authorized denominations as the Depositary for such Registered
      Security in global form, pursuant to instructions from its direct or indirect
      participants or otherwise, shall instruct the Trustee or an agent of the
      Issuer or the Trustee. The Trustee or such agent shall deliver such Securities
      to or as directed by the Persons in whose names such Securities are so
      registered.  

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

13 

   

 

(7)        Notwithstanding
    anything herein or in the terms of any series of Securities to the contrary,
    none of the Issuer, the Trustee or any agent of the Issuer or the Trustee
    (any of which, other than the Issuer, shall conclusively rely, as to the
    truth of the statements and the correctness of the opinions expressed therein,
    on an Officer’s Certificate and an Opinion of Counsel) shall be required
    to exchange any Unregistered Security for a Registered Security if such exchange
    would result in adverse income tax consequences to the Issuer.

   (8)        The
        Trustee shall have no obligation or duty to monitor, determine or inquire
        as to compliance with any restrictions on transfer imposed under this
        Indenture or under applicable law with respect to any transfer of any
        interest in any Security (including any transfers between or among Depositary
        Participants or beneficial owners of interests in any Global Security)
        other than to require delivery of such certificates and other documentation
        or evidence as are expressly required by, and to do so if and when expressly
        required by the terms of, this Indenture, and to examine the same to
        determine substantial compliance as to form with the express requirements
        hereof.  

     Section 2.9        Mutilated,
          Defaced, Destroyed, Lost and Stolen Securities.
          In case any Security or any Coupon appertaining to any Security shall
          become mutilated, defaced or be destroyed, lost or stolen, the Issuer
          in its discretion may execute, and upon the written request of any
          officer of the Issuer, the Trustee shall authenticate and deliver a
          new Security of the same series, maturity date, interest rate and original
          issue date, bearing a number or other distinguishing symbol not contemporaneously
          outstanding, in exchange and substitution for the mutilated or defaced
          Security, or in lieu of and in substitution for the Security so destroyed,
          lost or stolen with Coupons corresponding to the Coupons appertaining
          to the Securities so mutilated, defaced, destroyed, lost or stolen,
          or in exchange or substitution for the Security to which such mutilated,
          defaced, destroyed, lost or stolen Coupon appertained, with Coupons
          appertaining thereto corresponding to the Coupons so mutilated, defaced,
          destroyed, lost or stolen. In every case the applicant for a substitute
          Security or Coupon shall furnish to the Issuer and to the Trustee and
          any agent of the Issuer or the Trustee such security or indemnity as
          may be required by them to indemnify and defend and to save each of
          them harmless and, in every case of destruction, loss or theft, evidence
          to their satisfaction of the destruction, loss or theft of such Security
          or Coupon and of the ownership thereof and in the case of mutilation
          or defacement shall surrender the Security and related Coupons to the
          Trustee or such agent.  

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

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

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Section 2.10        Cancellation
      of Securities; Destruction Thereof. All Securities
      and Coupons surrendered for payment, redemption, registration of transfer
      or exchange, or for credit against any payment in respect of a sinking
      or analogous fund, if surrendered to the Issuer or any agent of the Issuer
      or the Trustee or any agent of the Trustee, shall be delivered to the Trustee
      or its agent for cancellation or, if surrendered to the Trustee, shall
      be canceled by it; and no Securities or Coupons shall be issued in lieu
      thereof except as expressly permitted by any of the provisions of this
      Indenture. The Trustee or its agent shall dispose of canceled Securities
      and Coupons held by it in accordance with its procedures for the disposition
      of cancelled securities in effect as of the date of such cancellation.
      If the Issuer or its agent shall acquire any of the Securities or Coupons,
      such acquisition shall not operate as a redemption or satisfaction of the
      indebtedness represented by such Securities or Coupons unless and until
      the same are delivered to the Trustee or its agent for cancellation.

   Section 2.11        Temporary
          Securities. Pending the preparation of definitive
          Securities for any series, the Issuer may execute and the Trustee shall
          authenticate and deliver temporary Securities for such series (printed,
          lithographed, typewritten or otherwise reproduced, in each case in
          form satisfactory to the Trustee). Temporary Securities of any series
          shall be issuable as Registered Securities without Coupons, or as Unregistered
          Securities with or without Coupons attached thereto, of any authorized
          denomination, and substantially in the form of the definitive Securities
          of such series but with such omissions, insertions and variations as
          may be appropriate for temporary Securities, all as may be determined
          by the Issuer with the concurrence of the Trustee as evidenced by the
          execution and authentication thereof. Temporary Securities may contain
          such references to any provisions of this Indenture as may be appropriate.
          Every temporary Security shall be executed by the Issuer and be authenticated
          by the Trustee upon the same conditions and in substantially the same
          manner, and with like effect, as the definitive Securities. Without
          unreasonable delay the Issuer shall execute and shall furnish definitive
          Securities of such series and thereupon temporary Registered Securities
          of such series may be surrendered in exchange therefor without charge
          at each office or agency to be maintained by the Issuer for that purpose
          pursuant to Section 3.2 and, in the case of Unregistered Securities,
          at any agency maintained by the Issuer for such purpose as specified
          pursuant to Section 3.2, and the Trustee shall authenticate and deliver
          in exchange for such temporary Securities of such series an equal aggregate
          principal amount of definitive Securities of the same series having
          authorized denominations and, in the case of Unregistered Securities,
          having attached thereto any appropriate Coupons. Until so exchanged,
          the temporary Securities of any series shall be entitled to the same
          benefits under this Indenture as definitive Securities of such series,
          unless otherwise established pursuant to Section 2.3. The provisions
          of this Section are subject to any restrictions or limitations on the
          issue and delivery of temporary Unregistered Securities of any series
          that may be established pursuant to Section 2.3 (including any provision
          that Unregistered Securities of such series initially be issued in
          the form of a single Unregistered Security in global form to be delivered
          to a Depositary or agency located outside the United States and the
          procedures pursuant to which Unregistered Securities in definitive
          or global form of such series would be issued in exchange for such
          temporary Unregistered Security in global form).  

     Section 2.12        Global
          Securities. Neither the Trustee nor any Agent
          shall have any responsibility for any actions taken or not taken by
          the Depositary.  

     Section 2.13        CUSIP
          Numbers. The Issuer in issuing the Securities
          may use “CUSIP” numbers (if then generally in use), and, if so used
          by the Issuer, the Trustee shall use “CUSIP” numbers in notices of
          redemption as a convenience to Holders; provided that
          any such notice may state that no representation is made as to the
          correctness of such numbers either as printed on the Securities or
          as contained in any notice of a redemption and that reliance may be
          placed only on the other identification numbers printed on the Securities,
          and any such redemption shall not be affected by any defect in or omission
          of such numbers. The Issuer will promptly notify the Trustee of any
          change in the “CUSIP” numbers. 

15 

    

ARTICLE III 

COVENANTS OF THE ISSUER

Section 3.1        Payment
      of Principal, Premium and Interest. The Issuer
      covenants and agrees for the benefit of each series of Securities that
      it will duly and punctually pay or cause to be paid the principal of, and
      premium, if any, and interest on, each of the Securities of such series
      (together with any additional amounts payable pursuant to the terms of
      such Securities) at the place or places, at the respective times and in
      the manner provided in such Securities and in the Coupons, if any, appertaining
      thereto and in this Indenture. The interest on Securities with Coupons
      attached (together with any additional amounts payable pursuant to the
      terms of such Securities) shall be payable only upon presentation and surrender
      of the several Coupons for such interest installments as are evidenced
      thereby as they severally mature. If any temporary Unregistered Security
      provides that interest thereon may be paid while such Security is in temporary
      form, the interest on any such temporary Unregistered Security (together
      with any additional amounts payable pursuant to the terms of such Security)
      shall be paid, as to the installments of interest evidenced by Coupons
      attached thereto, if any, only upon presentation and surrender thereof,
      and, as to the other installments of interest, if any, only upon presentation
      of such Securities for notation thereon of the payment of such interest,
      in each case subject to any restrictions that may be established pursuant
      to Section 2.3. The interest on Registered Securities (together with any
      additional amounts payable pursuant to the terms of such Securities) shall
      be payable only to or upon the written order of the Holders thereof and,
      at the option of the Issuer, may be paid by wire transfer or by mailing
      checks for such interest payable to or upon the written order of such Holders
      at their last addresses as they appear on the registry books of the Issuer.

   Section 3.2        Offices
          for Payments, Etc. So long as any Securities
          are issued as Registered Securities, the Issuer will maintain in the
          Borough of Manhattan, The City of New York, an office or agency where
          the Registered Securities of each series may be presented for payment,
          where the Securities of each series may be presented for exchange as
          is provided in this Indenture and, if applicable, pursuant to Section
          2.3 and where the Registered Securities of each series may be presented
          for registration of transfer as in this Indenture provided.  

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

     The Issuer will maintain in the Borough of Manhattan, The
        City of New York, an office or agency where notices and demands to or
        upon the Issuer in respect of the Securities of any series, the Coupons
        appertaining thereto or this Indenture may be served.  

     The Issuer will give to the Trustee written notice of the
        location of each such office or agency and of any change of location
        thereof. In case the Issuer shall fail to maintain any agency required
        by this Section, or shall fail to give such notice of the location or
        of any change in the location of any of the above agencies, presentations
        and demands may be made and notices may be served at the Corporate Trust
        Office of the Trustee. 

16 

    

 

The Issuer may from time to time designate one or
  more additional offices or agencies where the Securities of a series and any
  Coupons appertaining thereto may be presented for payment, where the Securities
  of that series may be presented for exchange as provided in this Indenture
  and pursuant to Section 2.3 and where the Registered Securities of that series
  may be presented for registration of transfer as in this Indenture provided,
  and the Issuer may from time to time rescind any such designation, as the Issuer
  may deem desirable or expedient; provided, however, that no such designation
  or rescission shall in any manner relieve the Issuer of its obligation to maintain
  the agencies provided for in this Section. The Issuer will give to the Trustee
  prompt written notice of any such designation or rescission thereof.

   Section 3.3        Money
          for Security Payments to be Held in Trust; Unclaimed Money.
          If the Issuer shall at any time act as its own paying agent, it will,
          on or before each due date of the principal of and premium, if any,
          or interest on any of the Securities, segregate and hold in trust for
          the benefit of the Holders entitled thereto a sum sufficient to pay
          the principal (and premium, if any) or interest so becoming due until
          such sums shall be paid to such Holders or otherwise disposed of as
          herein provided and will promptly notify the Trustee of its action
          or failure so to act.  

     Whenever the Issuer shall have one or more paying agents,
        it will, on or prior to each due date of the principal of and premium,
        if any, or interest on any Securities, deposit with the paying agent
        or paying agents a sum sufficient to pay the principal, premium, if any,
        or interest so becoming due, such sum to be held in trust for the benefit
        of the Holders entitled to such principal, premium, if any, or interest,
        and, unless such paying agent is the Trustee, the Issuer will promptly
        notify the Trustee of its action or failure so to act.  

     The Issuer will cause each paying agent other than the Trustee
        to execute and deliver to the Trustee an instrument in which such paying
        agent shall agree with the Trustee, subject to the provisions of this
        Section, that such paying agent will:  

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

     (2)        give
        the Trustee notice of any default by the Holders (or any other obligor
        upon the Securities) in the making of any payment of principal and premium,
        if any, or interest; and  

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

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

     Any money deposited with the Trustee or any paying agent,
        or then held by the Issuer in trust for the payment of the principal
        of and premium, if any, or interest on any Security and remaining unclaimed
        for two years after such principal and premium, if any, or interest has
        become due and payable shall be paid to the Issuer on Issuer Order, or,
        if then held by the Issuer, shall be discharged from such trust; and
        the Holder of such Security shall thereafter, as an unsecured general
        creditor, look only to the Issuer for payment thereof, and all liability
        of the Trustee or such paying agent with respect to such trust money,
        and all liability of the Issuer as trustee thereof, shall thereupon cease;
        provided, however, that the Trustee or such paying agent, before being
        required to make any such repayment, shall at the expense of the Issuer
        cause to be published at least once, in an Authorized Newspaper in the
        Borough of Manhattan, The City of New York, and at least once in an Authorized
        Newspaper in London, 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 publication, any unclaimed balance of such money
        then remaining will be repaid to the Issuer. 

17 

    

 

Section 3.4        Statements
      of Officers of Issuer as to Default; Notice of Default.
      (1) The Issuer will deliver to the Trustee, within 120 days after the end
      of each fiscal year of the Issuer ending after the date hereof, a certificate,
      signed by the principal executive officer, principal financial officer
      or principal accounting officer, stating whether or not to the best knowledge
      of the signer thereof the Issuer is in default (without regard to periods
      of grace or requirements of notice) in the performance and observance of
      any of the terms, provisions and conditions hereof, and if the Issuer shall
      be in default, specifying all such defaults and the nature and status thereof
      of which they may have knowledge.

   (2)        The
        Issuer shall file with the Trustee written notice of the occurrence of
        any default or Event of Default within five Business Days of its becoming
        aware of any such default or Event of Default.  

     Section 3.5        Existence.
        Subject to Article IX, the Issuer will do or cause to be done all things
        necessary to preserve and keep in full force and effect its existence,
        rights (charter and statutory) and franchises and those of each of its
        Subsidiaries; provided, however, that the Issuer shall not be required
        to preserve any such right or franchise if its Board of Directors shall
        determine that the preservation thereof is no longer desirable in the
        conduct of the business of the Issuer or the business of any Subsidiary
        and that the loss thereof is not disadvantageous in any material respect
        to the Holders.  

     Section 3.6        Maintenance
          of Properties. The Issuer will cause all properties
          used or useful in the conduct of its business or the business of any
          Subsidiary to be maintained and kept in good condition, repair and
          working order and supplied with all necessary equipment and will cause
          to be made all necessary repairs, renewals, replacements, betterments
          and improvements thereof, all as in the judgment of the Issuer may
          be necessary so that the business carried on in connection therewith
          may be properly and advantageously conducted at all times; provided,
          however, that nothing in this Section shall prevent the Issuer from
          discontinuing the operation or maintenance of any such properties if
          such discontinuance is, in the judgment of the Issuer, desirable in
          the conduct of its business or the business of any Subsidiary and not
          disadvantageous in any material respect to the Holders.  

     Section 3.7        Payment
          of Taxes and Other Claims. The Issuer shall
          pay or discharge or cause to be paid or discharged, before the same
          shall become delinquent, (1) all taxes, assessments and governmental
          charges (including withholding taxes and any penalties, interest and
          additions to taxes) levied or imposed upon the Issuer or any Subsidiary
          or upon the income, profits or property of the Issuer or any Subsidiary,
          and (2) all material lawful claims for labor, materials and supplies
          which, if unpaid, might by law become a lien upon the property of the
          Issuer or any Subsidiary; provided, however, that the Issuer shall
          not be required to pay or discharge or cause to be paid or discharged
          any such tax, assessment, charge or claim whose amount, applicability
          or validity is being contested in good faith by appropriate proceedings
          and for which disputed amounts adequate reserves have been made.  

     Section 3.8        Further
          Instruments and Acts. Upon request of the Trustee,
          the Issuer will execute and deliver such further instruments and perform
          such further acts as may be reasonably necessary or proper to carry
          out more effectively the purposes of this Indenture.  

     Section 3.9        Limitation
          on Liens. The Issuer and its Restricted Subsidiaries
          may not issue, assume, incur or guarantee any indebtedness for borrowed
          money secured by a mortgage, pledge, lien or other encumbrance, directly
          or indirectly, upon any shares of the Voting Shares of a Restricted
          Subsidiary which shares are owned by the Issuer or its Restricted Subsidiaries
          without effectively providing that the Securities (and if the Issuer
          so elects, any other indebtedness of the Issuer ranking on a parity
          with the Securities) shall be secured equally and ratably with, or
          prior to, any such secured indebtedness so long as such indebtedness
          remains outstanding. This Section 3.9 shall not apply to Permitted
          Liens upon any shares of Voting Shares of any Person existing at the
          time such Person becomes a Restricted Subsidiary and any extensions,
          renewals or replacements thereof. 

18 

 

Section 3.10        Luxembourg
      Publications. In the event of the publication of
      any notice pursuant to Section 3.3, 5.11, 6.10, 6.11, 8.2 or 12.2, the
      party making such publication in the Borough of Manhattan, The City of
      New York and London shall also, to the extent that notice is required to
      be given to Holders of Securities of any series by applicable Luxembourg
      law or stock exchange regulation, as evidenced by an Officer’s Certificate
      delivered to such party, make a similar publication in Luxembourg.Commission
      Reports. The Issuer shall file with the Trustee,
      within 15 days after it files such annual and quarterly reports, information,
      documents and other reports with the Commission, copies of its annual report
      and of the information, documents and other reports (or copies of such
      portions of any of the foregoing as the Commission may by rules and regulations
      prescribe) which the Issuer is required to file with the Commission pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934. 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 Issuer’s compliance with any of its covenants
      hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s
      Certificates). The Trustee shall be under no obligation to analyze or make
      any credit decisions with respect to reports or other information received
      by it pursuant to this section, but shall hold such reports and other information
      solely for the benefit of, and review by, the security holders.

   Section 3.12        Calculation
        of Original Issue Discount. The Issuer shall
        file with the Trustee promptly at the end of each calendar year (i) a
        written notice specifying the amount of original issue discount (including
        daily rates and accrual periods), if any, accrued on Outstanding Securities
        as of the end of such year and (ii) such other specific information relating
        to such original issue discount as may then be relevant under the Internal
        Revenue Code of 1986, as amended from time to time. 

ARTICLE IV 

SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

Section
    4.1        Issuer
      to Furnish Trustee Information as to Names and Addresses of Securityholders. If and so long
        as the Trustee shall not be the Security registrar for the Securities
        of any series, the Issuer and any other obligor on the Securities will
        furnish or cause to be furnished to the Trustee a list in such form as
        the Trustee may reasonably require of the names and addresses of the
        Holders of the Registered Securities of such series pursuant to Section
        312 of the Trust Indenture Act of 1939 (1) semi-annually not more than
        5 days after each record date for the payment of interest on such Registered
        Securities, as hereinabove specified, as of such record date and on dates
        to be determined pursuant to Section 2.3 for non-interest bearing Registered
        Securities in each year, and (2) at such other times as the Trustee may
        request in writing, within thirty days after receipt by the Issuer of
        any such request as of a date not more than 15 days prior to the time
        such information is furnished. 
       Section 4.2        Preservation
          of Information; Communications to Holders.
          (1) The Trustee shall preserve, in as current a form as is reasonably
          practicable, the names and addresses of Holders contained in the most
          recent list furnished to the Trustee as provided in Section 4.1 and
          the names and addresses of Holders received by the Trustee in its capacity
          as Security Registrar or paying agent. The Trustee may destroy any
          list furnished to it as provided in Section 4.1 upon receipt of a new
          list so furnished.  

     (2)        The
        rights of Holders to communicate with other Holders with respect to their
        rights under this Indenture or under the Securities, and the corresponding
        rights and privileges of the Trustee, shall be as provided by the Trust
        Indenture Act of 1939.  

     (3)        Every
        Holder of Securities, by receiving and holding the same, agrees with
        the Issuer and the Trustee that neither the Issuer nor the Trustee nor
        any agent of any of them shall be held accountable by reason of the disclosure
        of any such information as to the names and addresses of the Holders
        in accordance with Sections 4.1 and 4.2(2), regardless of the source
        from which such information was derived, and that the Trustee shall not
        be held accountable by reason of mailing any material pursuant to a request
        made under Section 4.2(2).  

     Section 4.3        Reports
          by the Trustee. Any Trustee’s report required
          under Section 313(a) of the Trust Indenture Act of 1939 shall be transmitted
          within 60 days after April 15 each year beginning 2005, as provided
          in Section 313(c) of the Trust Indenture Act of 1939, so long as any
          Securities are Outstanding hereunder, and shall be dated
          as of April 15, if required by and in compliance with Section 313(a)
          of the Trust Indenture Act of 1939.  

19 

  

 

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

ARTICLE V 

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

Section 5.1        Event
      of Default Defined; Acceleration of Maturity; Waiver of Default. “Event
      of Default” with respect to Securities of any series wherever used herein,
      means each one of the following events which shall have occurred and be
      continuing (whatever the reason for such Event of Default and whether it
      shall be voluntary or involuntary or be effected by operation of law or
      pursuant to any judgment, decree or order of any court or any order, rule
      or regulation of any administrative or governmental body) unless it is
      either inapplicable to a particular series or it is specifically deleted
      or modified in an indenture supplemental hereto, if any, under which such
      series of Securities is issued:

   (1)        default
        in the payment of any installment of interest upon any of the Securities
        of such series as and when the same shall become due and payable, and
        continuance of such default for a period of 30 days and the interest
        payment date has not been properly extended or deferred; provided, however,
        that if the Issuer is permitted by the terms of the Securities of the
        applicable series to defer the payment in question, the date on which
        such payment is due and payable shall be the date on which the Issuer
        is required to make payment following such deferral, if such deferral
        has been elected pursuant to the terms of the Securities of that series
        (subject to any deferral of any due date in the case of an Extension
        Period); or  

     (2)        default
        in the payment of all or any part of the principal of, or premium, if
        any, on any of the Securities of such series as and when the same shall
        become due and payable either at maturity, upon any redemption, by declaration
        or otherwise; provided, however, that if the Issuer is permitted by the
        terms of the Securities of the applicable series to defer the payment
        in question, the date on which such payment is due and payable shall
        be the date on which the Issuer is required to make payment following
        such deferral, if such deferral has been elected pursuant to the terms
        of the Securities of that series (subject to any deferral of any due
        date in the case of an Extension Period); or  

     (3)        default
        in the payment of any sinking fund installment as and when the same shall
        become due and payable by the terms of the Securities of such series;
        or  

     (4)        failure
        on the part of the Issuer duly to observe or perform any other of the
        covenants or agreements on the part of the Issuer in the Securities of
        such series (other than a covenant or agreement in respect of the Securities
        of such series a default in the performance or breach of which is elsewhere
        in this Section specifically dealt with) or contained in this Indenture
        (other than a covenant or agreement included in this Indenture solely
        for the benefit of a series of Securities other than such series) for
        a period of 90 days after the date on which written notice specifying
        such failure, stating that such notice is a “Notice of Default” hereunder
        and demanding that the Issuer remedy the same, shall have been given
        by registered or certified mail, return receipt requested, to the Issuer
        by the Trustee, or to the Issuer and the Trustee by the holders of at
        least 25% in aggregate principal amount of the Outstanding Securities
        of all series affected thereby; or  

     (5)        a
        decree or order by a court having jurisdiction in the premises shall
        have been entered adjudging the Issuer or any Restricted Subsidiary as
        bankrupt or insolvent, or approving as properly filed a petition seeking
        reorganization of the Issuer or any Restricted Subsidiary under any applicable
        bankruptcy, insolvency or other similar law now or hereafter in effect,
        and such decree or order shall have continued undischarged and unstayed
        for a period of 120 days; or a decree or order of a court having jurisdiction
        in the premises for the appointment of a receiver or liquidator or trustee
        or assignee in bankruptcy or
        insolvency of the Issuer or any Restricted Subsidiary or
        of its or their property, or for the winding up or liquidation of its
        or their affairs, shall have been entered, and such decree or order shall
        have remained in force and unstayed
for a period of 120 days; or    

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(6)        the
    Issuer or any Restricted Subsidiary shall commence a voluntary case under
    any applicable bankruptcy, insolvency or other similar law now or hereafter
    in effect, or consent to the entry of an order for relief in an involuntary
    case under any such law, or consent to the appointment or taking possession
    by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or
    similar official) of the Issuer or any Restricted Subsidiary or for any substantial
    part of its or their property, or make any general assignment for the benefit
    of creditors, or shall admit in writing its inability to pay its or their
    respective debts generally as they become due; or

   (7)        an
        event of default, as defined in any one or more mortgages, indentures,
        instruments, bonds, debentures, notes or other similar instruments under
        which there may be issued, or by which there may be secured or evidenced,
        any indebtedness (other than the Securities of such series or nonrecourse
        obligations) (“Indebtedness” ) in excess of $50,000,000 for money borrowed
        by the Issuer or a Restricted Subsidiary shall occur (after giving effect
        to any applicable grace period), if such event of default shall result
        in the acceleration of such Indebtedness prior to its expressed maturity
        unless such Indebtedness is discharged or such acceleration is cured,
        waived, rescinded or annulled within 30 days after written notice thereof
        shall have been given by registered or certified mail, return receipt
        requested, to the Issuer by the Trustee or to the Issuer and the Trustee
        by the Holders of at least 25% in aggregate principal amount of the Outstanding
        Securities (treated as one class) which notice shall state that it is
        a “Notice of Default” hereunder; or  

     (8)        any
        other Event of Default provided in the supplemental indenture under which
        such series of Securities is issued or in the form of Security for such
        series; provided that if any such default or acceleration referred to
        in clause (7) above shall cease or be cured, waived, rescinded or annulled,
        then the Event of Default hereunder by reason thereof shall be deemed
        likewise to have been thereupon cured.  

     If an Event of Default described in clause (1), (2), (3),
        (4) or (8) (if the Event of Default under clause (4) or (8), as the case
        may be, is with respect to less than all series of Securities then Outstanding)
        occurs and is continuing, then, and in each and every such case, except
        for any series of Securities the principal of which shall have already
        become due and payable, either the Trustee or the Holders of not less
        than 25% in aggregate principal amount of the Securities of each such
        affected series then Outstanding hereunder (voting as a single class)
        by notice in writing to the Issuer (and to the Trustee if given by Securityholders),
        may declare the entire principal (or, if the Securities of any such affected
        series are Original Issue Discount Securities, such portion of the principal
        amount as may be specified in the terms of such series) of all Securities
        of all such affected series, and the interest accrued thereon, if any,
        to be due and payable immediately, and upon any such declaration, the
        same shall become immediately due and payable. If an Event of Default
        described in clause (4) or (8) (if the Event of Default under clause
        (4) or (8), as the case may be, is with respect to all series of Securities
        then Outstanding) or (7) occurs and is continuing, then and in each and
        every such case, unless the principal of all the Securities shall have
        already become due and payable, either the Trustee or the Holders of
        not less than 25% in aggregate principal amount of all the Securities
        then Outstanding hereunder (treated as one class), by notice in writing
        to the Issuer (and to the Trustee if given by Securityholders), may declare
        the entire principal (or, if any Securities are Original Issue Discount
        Securities, such portion of the principal as may be specified in the
        terms thereof) of all the Securities then Outstanding, and interest accrued
        thereon, if any, to be due and payable immediately, and upon any such
        declaration the same shall become immediately due and payable. If an
        Event of Default specified in clause (5) or (6) occurs, all unpaid principal
        (or, if any Securities are Original Issue Discount Securities, such portion
        of the principal as may be specified in the terms thereof) of all the
        Securities then Outstanding, and interest accrued thereon, if any, shall
        be due and payable immediately, without any declaration or other act
        on the part of the Trustee or any Securityholder. 

21 

 

The foregoing provisions, however,
    are subject to the condition that if, at any time after the principal (or,
    if the Securities
  are Original Issue Discount Securities, such portion of the principal as may
  be specified in the terms thereof) of the Securities of any series (or of all
  the Securities, as the case may be) shall have been so declared due and payable,
  and before any judgment or decree for the payment of the moneys due shall have
  been obtained or entered as hereinafter provided, the Issuer shall pay or shall
  deposit with the Trustee a sum sufficient to pay all matured installments of
  interest upon all the Securities of such series (or of all the Securities,
  as the case may be) and the principal of any and all Securities of each such
  series (or of all the Securities, as the case may be) which shall have become
  due otherwise than by acceleration (with interest upon such principal and,
  to the extent that payment of such interest is enforceable under applicable
  law, on overdue installments of interest, at the same rate as the rate of interest
  or Yield to Maturity (in the case of Original Issue Discount Securities) specified
  in the Securities of each such series (or at the respective rates of interest
  or Yields to Maturity of all the Securities, as the case may be) to the date
  of such payment or deposit) and such amount as shall be sufficient to cover
  reasonable compensation to the Trustee and each predecessor Trustee, its agents,
  attorneys and counsel, and all other expenses and liabilities incurred, and
  all advances made, by the Trustee and each predecessor Trustee except as a
  result of negligence, bad faith or willful misconduct, and if any and all Events
  of Default under the Indenture, other than the non-payment of the principal
  of Securities which shall have become due by acceleration, shall have been
  cured, waived or otherwise remedied as provided herein, then and in every such
  case the Holders of a majority in aggregate principal amount of all the Securities
  of each such series, or of all the Securities, in each case voting as a single
  class, then Outstanding, by written notice to the Issuer and to the Trustee,
  may waive all defaults with respect to each such series (or with respect to
  all the Securities, as the case may be) and rescind and annul such declaration
  and its consequences, but no such waiver or rescission and annulment shall
  extend to or shall affect any subsequent default or shall impair any right
  consequent thereon.

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

   Section 5.2        Collection
        of Indebtedness by Trustee; Trustee May Prove Debt.
        (1) The Issuer covenants that (a) in case default shall be made in the
        payment of any installment of interest on any of the Securities of any
        series when such interest shall have become due and payable, and such
        default shall have continued for a period of 30 days or (b) in case default
        shall be made in the payment of all or any part of the principal of any
        of the Securities of any series when the same shall have become due and
        payable, whether upon maturity of the Securities of such series or upon
        any redemption or by declaration or otherwise, then upon demand of the
        Trustee, the Issuer will pay to the Trustee for the benefit of the Holders
        of the Securities of such series the whole amount that then shall have
        become due and payable on all Securities of such series, and such Coupons,
        for principal or interest, as the case may be (with interest to the date
        of such payment upon the overdue principal and, to the extent that payment
        of such interest is enforceable under applicable law, on overdue installments
        of interest at the same rate as the rate of interest or Yield to Maturity
        (in the case of Original Issue Discount Securities) specified in the
        Securities of such series); and in addition thereto, such further amount
        as shall be sufficient to cover the costs and expenses of collection,
        including reasonable compensation to the Trustee and each predecessor
        Trustee, their respective agents, attorneys and counsel, and any expenses
        and liabilities incurred, and all advances made, by the Trustee and each
        predecessor Trustee except as a result of its negligence, bad faith or
        willful misconduct.  

   Until such demand is made by the Trustee, the Issuer may pay
      the principal of and interest on the Securities of any series to the registered
      holders, whether or not the Securities of such series be overdue.  

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

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(3)        In
    case there shall be pending proceedings relative to the Issuer or any other
    obligor upon the Securities under Title 11 of the United States Code or any
    other applicable Federal or state bankruptcy, insolvency or other similar
    law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
    liquidator, sequestrator or similar official shall have been appointed for
    or taken possession of the Issuer or its property or such other obligor,
    or in case of any other comparable judicial proceedings relative to the Issuer
    or other obligor upon the Securities, or to the creditors or property of
    the Issuer or such other obligor, the Trustee, irrespective of whether the
    principal of the Securities shall then be due and payable as therein expressed
    or by declaration or otherwise and irrespective of whether the Trustee shall
    have made any demand pursuant to the provisions of this Section, shall be
    entitled and empowered, by intervention in such proceedings or otherwise:

                (a)        to
        file and prove a claim or claims for the whole amount of principal and
        interest (or, if the Securities of any series are Original Issue Discount
        Securities, such portion of the principal amount as may be specified
        in the terms of such series) owing and unpaid in respect of the Securities
        of any series, and to file such other papers or documents as may be necessary
        or advisable in order to have the claims of the Trustee (including any
        claim for reasonable compensation to the Trustee and each predecessor
        Trustee, and their respective agents, attorneys and counsel, and for
        reimbursement of all expenses and liabilities incurred, and all advances
        made, by the Trustee and each predecessor Trustee, except as a result
        of negligence, bad faith or willful misconduct) and of the Securityholders
        allowed in any judicial proceedings relative to the Issuer or other obligor
        upon the Securities, or to the creditors or property of the Issuer or
        such other obligor,  

                 (b)        unless
        prohibited by applicable law and regulations, to vote on behalf of the
        holders of the Securities of any series in any election of a trustee
        or a standby trustee in arrangement, reorganization, liquidation or other
        bankruptcy or insolvency proceedings or person performing similar functions
        in comparable proceedings, and  

                 (c)        to
        collect and receive any moneys or other property payable or deliverable
        on any such claims, and to distribute all amounts received with respect
        to the claims of the Securityholders and of the Trustee on their behalf;
        and any trustee, receiver, or liquidator, custodian or other similar
        official is hereby authorized by each of the Securityholders to make
        payments to the Trustee, and, in the event that the Trustee shall consent
        to the making of payments directly to the Securityholders, to pay to
        the Trustee such amounts as shall be sufficient to cover reasonable compensation
        to the Trustee, each predecessor Trustee and their respective agents,
        attorneys and counsel, and all other expenses and liabilities incurred,
        and all advances made, by the Trustee and each predecessor Trustee except
        as a result of negligence, bad faith or willful misconduct.  

     Nothing herein contained shall be deemed to authorize the
        Trustee to authorize or consent to or vote for or accept or adopt on
        behalf of any Securityholder any plan of reorganization, arrangement,
        adjustment or composition affecting the Securities of any series or the
        rights of any Holder thereof, or to authorize the Trustee to vote in
        respect of the claim of any Securityholder in any such proceeding except,
        as aforesaid, to vote for the election of a trustee in bankruptcy or
        similar person.  

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

23 

    

 

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

   Section 5.3        Application
          of Proceeds. Any moneys collected by the Trustee
          pursuant to this Article in respect of any series shall be applied
          in the following order at the date or dates fixed by the Trustee and,
          in case of the distribution of such moneys on account of principal
          or interest, upon presentation of the several Securities and Coupons
          appertaining to such Securities in respect of which monies have been
          collected and stamping (or otherwise noting) thereon the payment, or
          issuing Securities of such series in reduced principal amounts in exchange
          for the presented Securities of like series if only partially paid,
          or upon surrender thereof if fully paid:  

     FIRST: To the payment of costs and expenses applicable to
        such series in respect of which monies have been collected, including
        reasonable compensation to the Trustee and each predecessor Trustee and
        their respective agents and attorneys and of all expenses and liabilities
        incurred, and all advances made, by the Trustee and each predecessor
        Trustee except as a result of negligence, bad faith or willful misconduct;  

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

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

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

     Section 5.4        Suits
          for Enforcement. In case an Event of Default
          has occurred, has not been waived and is continuing, the Trustee may
          in its discretion proceed to protect and enforce the rights vested
          in it by this Indenture by such appropriate judicial proceedings as
          the Trustee shall deem most effectual to protect and enforce any of
          such rights, either at law or in equity or in bankruptcy or otherwise,
          whether for the specific enforcement of any covenant or agreement contained
          in this Indenture or in aid of the exercise of any power granted in
          this Indenture or to enforce any other legal or equitable right vested
          in the Trustee by this Indenture or by law.  

     Section 5.5        Restoration
          of Rights on Abandonment of Proceedings. In
          case the Trustee shall have proceeded to enforce any right under this
          Indenture and such proceedings shall have been discontinued or abandoned
          for any reason, or shall have been determined adversely to the Trustee,
          then and in every such case the Issuer and the Trustee shall be restored
          respectively to their former positions and rights hereunder,
          and all rights, remedies and powers of the Issuer, the Trustee and
          the Securityholders shall continue as though no such proceedings had
          been taken.  

24 

    

 

Section 5.6        Limitations
      on Suits by Securityholders. No Holder of any Security
      of any series or of any Coupon appertaining thereto shall have any right
      by virtue or by availing of any provision of this Indenture to institute
      any action or proceeding at law or in equity or in bankruptcy or otherwise
      upon or under or with respect to this Indenture, or for the appointment
      of a trustee, receiver, liquidator, custodian or other similar official
      or for any other remedy hereunder, unless such Holder previously shall
      have given to the Trustee written notice of default and of the continuance
      thereof, as hereinbefore provided, and unless also the Holders of not less
      than 25% in aggregate principal amount of the Securities of each affected
      series then Outstanding (treated as a single class) shall have made written
      request upon the Trustee to institute such action or proceedings in its
      own name as trustee hereunder and shall have offered to the Trustee such
      indemnity reasonably satisfactory to it against the costs, expenses and
      liabilities to be incurred therein or thereby and the Trustee for 60 days
      after its receipt of such notice, request and offer of indemnity shall
      have failed to institute any such action or proceeding and no direction
      inconsistent with such written request shall have been given to the Trustee
      pursuant to Section 5.9; it being understood and intended, and being expressly
      covenanted by the taker and Holder of every Security or Coupon with every
      other taker and Holder and the Trustee, that no one or more Holders of
      Securities of any series or Coupons appertaining to such Securities shall
      have any right in any manner whatever by virtue or by availing of any provision
      of this Indenture to affect, disturb or prejudice the rights of any other
      such Holder of Securities or Coupons appertaining to such Securities, or
      to obtain or seek to obtain priority over or preference to any other such
      Holder or to enforce any right under this Indenture, except in the manner
      herein provided and for the equal, ratable and common benefit of all Holders
      of Securities of the applicable series and Coupons appertaining to such
      Securities. For the protection and enforcement of the provisions of this
      Section, each and every Securityholder and the Trustee shall be entitled
      to such relief as can be given either at law or in equity.

   Section 5.7        Unconditional
          Right of Securityholders to Institute Certain Suits. Notwithstanding
          any other provision in this Indenture and any provision of any Security,
          the right of any Holder of any Security
        or Coupon to receive payment of the principal of and interest on such
        Security or Coupon on or after the respective due dates expressed in
        such Security or Coupon, or to institute suit for the enforcement of
        any such payment on or after such respective dates, shall not be impaired
        or affected without the consent of such Holder.  

     Section 5.8        Powers
          and Remedies Cumulative; Delay or Omission Not Waiver of Default.
          Except as provided in Section 5.6, no right or remedy herein conferred
          upon or reserved to the Trustee or to the Holders of Securities or
          Coupons is intended to be exclusive of any other right or remedy, and
          every right and remedy shall, to the extent permitted by law, be cumulative
          and in addition to every other right and remedy given hereunder or
          now or hereafter existing at law or in equity or otherwise. The assertion
          or employment of any right or remedy hereunder, or otherwise, shall
          not prevent the concurrent assertion or employment of any other appropriate
          right or remedy.  

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

     Section 5.9        Control
          by Holders of Securities. The Holders of a
          majority in aggregate principal amount of the Securities of each series
          affected (with all such series voting as a single class) at the time
          Outstanding shall have the right to direct the time, method, and place
          of conducting any proceeding for any remedy available to the Trustee,
          or exercising any trust or power conferred on the Trustee with respect
          to the Securities of such series by this Indenture; provided that such
          direction shall not be otherwise than in accordance with law and the
          provisions of this Indenture; provided further that (subject to the
          provisions of Section 6.1) the Trustee shall have the right to decline
          to follow any such direction if the Trustee, being advised by counsel,
          shall determine that the action or proceeding so directed may not lawfully
          be taken or if the Trustee in good faith by its board of directors,
          the executive committee, or a trust committee of directors or Responsible
          Officers of the Trustee shall determine that the action or proceedings
          so directed would involve the Trustee in personal liability or if the
          Trustee in good faith shall so determine that the actions or forbearances
          specified in or pursuant to such direction would be unduly prejudicial
          to the interests of Holders of the Securities of all series so affected
          not joining in the giving of said direction, it being understood that
          (subject to Section 6.1) the Trustee shall have no duty to ascertain
          whether or not such actions or forbearances are unduly prejudicial
          to such Holders.  

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Nothing in this Indenture shall impair the right
  of the Trustee in its discretion to take any action deemed proper by the Trustee
  and which is not inconsistent with such direction or directions by Securityholders.

   Section 5.10        Waiver
          of Past Defaults. Prior to the acceleration
          of the maturity of any Securities as provided in Section 5.1, the Holders
          of a majority in aggregate principal amount of the Securities of all
          series at the time Outstanding with respect to which an Event of Default
          shall have occurred and be continuing (voting as a single class) may
          on behalf of the Holders of all such Securities waive any past default
          or Event of Default described in Section 5.1 and its consequences,
          except a default in respect of a covenant or provision hereof which
          cannot be modified or amended without the consent of the Holder of
          each Security affected. In the case of any such waiver, the Issuer,
          the Trustee and the Holders of all such Securities shall be restored to their
        former positions and rights hereunder, respectively; but no such waiver
        shall extend to any subsequent or other default or impair any right consequent
        thereon.  

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

     Section 5.11        Trustee
          to Give Notice of Default, but May Withhold in Certain Circumstances.
          The Trustee shall, within ninety days after the occurrence of a default
          with respect to the Securities of any series, give notice of all defaults
          with respect to that series actually known to a Responsible Officer
          of the Trustee (1) if any Unregistered Securities of that series are
          then Outstanding, to the Holders thereof, by publication at least once
          in an Authorized Newspaper in the Borough of Manhattan, The City of
          New York and at least once in an Authorized Newspaper in London (and,
          if required by Section 3.10, at least once in an Authorized Newspaper
          in Luxembourg) and (2) to all Holders of Securities of such series
          in the manner and to the extent provided in Section 313(c) of the Trust
          Indenture Act of 1939, unless in each case such defaults shall have
          been cured before the mailing or publication of such notice (the term “defaults” for
          the purpose of this Section being hereby defined to mean any event
          or condition which is, or with notice or lapse of time or both would
          become, an Event of Default); provided that, except in the case of
          default in the payment of the principal of or interest on any of the
          Securities of such series, or in the payment of any sinking fund installment
          on such series, the Trustee shall be protected in withholding such
          notice if and so long as the board of directors, the executive committee,
          or a trust committee of directors or trustees and/or Responsible Officers
          of the Trustee in good faith determines that the withholding of such
          notice is in the interests of the Securityholders of such series.  

     Section 5.12        Right
          of Court to Require Filing of Undertaking to Pay Costs.
          All parties to this Indenture agree, and each Holder of any Security
          or Coupon by his or her acceptance thereof shall be deemed to have
          agreed, that any court may in its discretion require, in any suit for
          the enforcement of any right or remedy under this Indenture or in any
          suit against the Trustee for any action taken, suffered or omitted
          by it as Trustee, the filing by any party litigant in such suit of
          an undertaking to pay the costs of such suit, and that such court may
          in its discretion assess reasonable costs, including reasonable attorneys’
          fees and expenses, against any party litigant in such suit, having
          due regard to the merits and good faith of the claims or defenses made
          by such party litigant; but the provisions of this Section shall not
          apply to any suit instituted by the Trustee, to any suit instituted
          by any Securityholder or group of Securityholders of any series holding
          in the aggregate more than 10% in aggregate principal amount of the
          Securities of such series, or, in the case of any suit relating to
          or arising under clause (4) or (8) of Section 5.1 (if the suit relates
          to Securities of more than one but less than all series), 10% in aggregate
          principal amount of Securities then Outstanding and affected
          thereby, or in the case of any suit relating to or arising under clause
          (4) or (8) (if the suit under clause (4) or (8) relates to all the
          Securities then Outstanding), (5), (6) or (7) of Section 5.1, 10% in
          aggregate principal amount of all Securities then Outstanding, or to
          any suit instituted by any Securityholder for the enforcement of the
          payment of the principal of or interest on any Security on or after
          the due date expressed in such Security or any date fixed for redemption. 

 

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ARTICLE VI 

CONCERNING THE TRUSTEE

Section 6.1        Duties
      and Responsibilities of the Trustee; During Default; Prior to Default.
      (1) With respect to the Holders of any series of Securities issued hereunder,
      the Trustee, prior to the occurrence of an Event of Default with respect
      to the Securities of a particular series and after the curing or waiving
      of all Events of Default which may have occurred with respect to such series,
      undertakes to perform such duties and only such duties as are specifically
      set forth in this Indenture. In case an Event of Default with respect to
      the Securities of a series has occurred (which has not been cured or waived)
      the Trustee shall exercise with respect to such series of Securities such
      of the rights and powers vested in it by this Indenture, and use the same
      degree of care and skill in their exercise, as a prudent person would exercise
      or use under the circumstances in the conduct of his or her own affairs.

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

  (a)        prior
      to the occurrence of an Event of Default with respect to the Securities of
      any series and after the curing or waiving of all such Events of Default
      with respect to such series which may have occurred:

(i)        the
    duties and obligations of the Trustee with respect to the Securities of any
    series shall be determined solely by the express provisions of this Indenture,
    and the Trustee shall not be liable except for the performance of such duties
    and obligations as are specifically set forth in this Indenture, and no implied
    covenants or obligations shall be read into this Indenture against the Trustee;
    and

   (ii)        in
        the absence of bad faith on the part of the Trustee, the Trustee may
        conclusively rely, as to the truth of the statements and the correctness
        of the opinions expressed therein, upon any statements, certificates
        or opinions furnished to the Trustee and conforming to the requirements
        of this Indenture; but in the case of any such statements, 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 (but need not confirm or investigate the accuracy of
        mathematical calculations or other facts stated therein unless specifically
        required by this Indenture).

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

   (c)        the
        Trustee shall not be liable with respect to any action taken or omitted
        to be taken by it in good faith in accordance with the direction of the
        Holders pursuant to Section 5.9 relating to the time, method and place
        of conducting any proceeding for any remedy available to the Trustee,
        or exercising any trust or power conferred upon the Trustee, under this
        Indenture.  

     (d)        the
        Trustee shall not be required to take notice, and shall not be deemed
        to have notice, of any default or Event of Default hereunder, except
        Events of Default described in paragraphs (1), (2) and (3) of Section
        5.1 hereof, unless a Responsible Officer of the Trustee shall be notified
        specifically of the default or Event of Default on a written instrument
        or document delivered to it at its notice address by the Issuer or by
        the Holders of at least 10% of the aggregate principal amount of Securities
        then outstanding. In the absence of delivery of notice satisfying
        those requirements, the Trustee may assume conclusively that there is
        no default or Event of Default, except as noted. 
     

27 

   

 

(3)        None
    of the provisions contained in this Indenture shall require the Trustee to
    expend or risk its own funds or otherwise incur personal financial liability
    in the performance of any of its duties or in the exercise of any of its
    rights or powers, if there shall be reasonable ground for believing that
    the repayment of such funds or adequate indemnity against such liability
    is not reasonably assured to it.

   The provisions of this Section 6.1 are in furtherance of
        and subject to Section 315 of the Trust Indenture Act of 1939.  

     Section 6.2        Certain
          Rights of the Trustee. In furtherance of and
          subject to the Trust Indenture Act of 1939, and subject to Section
          6.1:  

     (1)        the
        Trustee may conclusively rely, as to the truth of the statements and
        the correctness of the opinions expressed therein, and shall be protected
        in acting or refraining from acting upon any resolution, Officer’s Certificate
        or any other certificate, statement, instrument, opinion, report, notice,
        request, consent, order, bond, debenture, note, coupon, security or other
        paper or document believed by it to be genuine and to have been signed
        or presented by the proper party or parties;  

     (2)        any
        request, direction, order or demand of the Issuer mentioned herein shall
        be sufficiently evidenced by an Officer’s Certificate (unless other evidence
        in respect thereof be herein specifically prescribed); and any resolution
        of the Board of Directors may be evidenced to the Trustee by a copy thereof
        certified by the secretary or an assistant secretary of the Issuer;  

     (3)        the
        Trustee may consult with legal counsel of its choice or other experts,
        and the advice of such experts within the scope of such expert’s area
        of expertise or opinion of counsel with respect to legal matters shall
        be full and complete authorization and protection in respect of any action
        taken, suffered or omitted to be taken by it hereunder in good faith
        and in accordance with such advice or opinion.  

     (4)        the
        Trustee shall be under no obligation to exercise any of the trusts or
        powers vested in it by this Indenture at the request, order or direction
        of any of the Securityholders pursuant to the provisions of this Indenture,
        unless such Securityholders shall have offered to the Trustee security
        or indemnity reasonably satisfactory to it against the costs, expenses
        and liabilities which might be incurred therein or thereby;  

     (5)        the
        Trustee shall not be liable for any action taken or omitted by it in
        good faith and believed by it to be authorized or within the discretion,
        rights or powers conferred upon it by this Indenture;  

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

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

28 

    

 

(8)        the
    Trustee shall not be liable for any action taken, suffered, or omitted to
    be taken by it in good faith in accordance with the direction of the holders
    pursuant to Section 5.9 relating to the time, method and place of conducting
    any proceeding for any remedy available to the Trustee, or exercising any
    trust or power conferred upon it by this Indenture;

   (9)        the
        rights, privileges, protections, immunities and benefits given to the
        Trustee, including, without limitation, its right to be indemnified,
        are extended to, and shall be enforceable by, the Trustee in each of
        its capacities hereunder, and to each agent, custodian and other Person
        employed to act hereunder;  

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

     (11)        the
        Trustee shall not be bound to make any investigation into the facts or
        matters stated in any resolution, certificate, statement, instrument,
        opinion, report, notice, request, direction, consent, order, bond, debenture,
        note, other evidence of indebtedness or other paper or document, but
        the Trustee, in its discretion, may make such further inquiry or investigation
        into such facts or matters as it may see fit, and, if the Trustee shall
        determine to make such further inquiry or investigation, it shall be
        entitled to examine the books, records and premises of the Issuer, at
        a time reasonably determined by the Issuer, personally or by agent or
        attorney at the sole cost of the Issuer and shall incur no liability
        or additional liability of any kind by reason of such inquiry or investigation;
        and  

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

     Section 6.3        Trustee
          Not Responsible for Recitals, Disposition of Securities or Application
          of Proceeds Thereof.
          The recitals contained herein and in the Securities, except the Trustee’s
          certificates of authentication, shall be taken as the statements of
          the Issuer, and the Trustee assumes no responsibility for the correctness
          of the same. The Trustee makes no representation as to the validity
          or sufficiency of this Indenture or of any Securities or Coupons. The
          Trustee shall not be accountable for the use or application by the
          Issuer of any of the Securities or of the proceeds thereof.  

     Section 6.4        Trustee
          and Agents May Hold Securities or Coupons; Collections, Etc.
          The Trustee or any agent of the Issuer or the Trustee, in its individual
          or any other capacity, may become the owner or pledgee of Securities
          or Coupons with the same rights it would have if it were not the Trustee
          or such agent and may otherwise deal with the Issuer and receive, collect,
          hold and retain collections from the Issuer with the same rights it
          would have if it were not the Trustee or such agent.  

     Section 6.5        Moneys
          Held by Trustee. Subject to the provisions
          of Section 3.3 hereof, all moneys received by the Trustee shall, until
          used or applied as herein provided, be held in trust for the purposes
          for which they were received, but need not be segregated from other
          funds except to the extent required by mandatory provisions of law.
          Neither the Trustee nor any agent of the Issuer or the Trustee shall
          be under any liability for interest on any moneys received by it hereunder. 

 

29 

   

 

Section 6.6        Compensation
      and Indemnification of Trustee. The Issuer covenants
      and agrees to pay to the Trustee from time to time, and the Trustee shall
      be entitled to, such compensation as shall be agreed in writing between
      the Issuer and the Trustee from time to time (which shall not be limited
      by any provision of law in regard to the compensation of a trustee of an
      express trust) and the Issuer covenants and agrees to pay or reimburse
      the Trustee and each predecessor Trustee upon its request for all reasonable
      expenses, disbursements and advances incurred or made by or on behalf of
      it in accordance with any of the provisions of this Indenture (including
      the reasonable compensation and the expenses and disbursements of its counsel
      and of all agents and other persons not regularly in its employ) except
      any such expense, disbursement or advance as may arise from its negligence,
      bad faith or willful misconduct. The Issuer also covenants to indemnify
      the Trustee, each predecessor Trustee and their respective directors, officers,
      employees, and agents (the “indemnitees” ) for, and to hold the indemnitees
      harmless against, any and all loss, liability, claim, damage, penalty,
      fine or expense, including taxes and reasonable out-of-pocket expenses,
      reasonable incidental expenses and reasonable legal fees and expenses incurred
      without negligence, bad faith or willful misconduct on the indemnitees’
      part, arising out of or in connection with the acceptance or administration
      of this Indenture or the trusts hereunder and the indemnitees’ duties hereunder,
      including the costs and expenses of defending themselves against or investigating
      any claim, whether asserted by the Issuer or any Holder or any other Person,
      or liability in connection with the exercise or performance of the indemnitees’
      duties or obligations hereunder. The obligations of the Issuer under this
      Section to compensate and indemnify the indemnitees and to pay or reimburse
      the indemnitees for expenses, disbursements and advances shall constitute
      additional indebtedness hereunder and shall survive the satisfaction and
      discharge of this Indenture and the resignation or removal of the Trustee
      in accordance with Section 6.10 herein. Such additional indebtedness shall
      be a senior claim to that of the Securities upon all property and funds
      held or collected by the Trustee as such, except funds held in trust for
      the benefit of the Holders of particular Securities or Coupons, and the
      Securities are hereby subordinated to such senior claim.

   When the Trustee incurs expenses or renders services in connection
      with an Event of Default specified in Section 5.1(5) or Section 5.1(6),
      the expenses (including the reasonable charges and expenses of its counsel)
      and the compensation for the services are intended to constitute expenses
      of administration under any applicable Federal or state bankruptcy, insolvency
      or other similar law.

   Section 6.7        Right
        of Trustee to Rely on Officer’s Certificate, Etc.
        Subject to Sections 6.1 and 6.2, whenever in the administration of the
        trusts of this Indenture the Trustee shall deem it necessary or desirable
        that a matter be proved or established prior to taking or suffering or
        omitting any action hereunder, such matter (unless other evidence in
        respect thereof be herein specifically prescribed) may, in the absence
        of negligence, bad faith or willful misconduct on the part of the Trustee,
        be deemed to be conclusively proved and established by an Officer’s Certificate
        delivered to the Trustee, and such certificate, in the absence of negligence,
        bad faith or willful misconduct on the part of the Trustee, shall be
        full warrant to the Trustee for any action taken, suffered or omitted
        by it under the provisions of this Indenture upon the faith thereof.  

   Section 6.8        Indentures
        Not Creating Potential Conflicting Interests for the Trustee.
        The following indentures are hereby specifically described for the purposes
        of Section 310(b)(1) of the Trust Indenture Act of 1939: this Indenture
        with respect to the Securities of any series.  

   Section 6.9        Persons
        Eligible for Appointment as Trustee. The Trustee
        for each series of Securities hereunder shall at all times be a corporation
        or banking association organized and doing business under the laws of
        the United States of America or of any State or the District of Columbia
        having a combined capital and surplus of at least $50,000,000, and which
        is authorized under such laws to exercise corporate trust powers and
        is subject to supervision or examination by Federal, State or District
        of Columbia authority. Such corporation or banking association shall
        have a place of business or an affiliate with a place of business in
        the Borough of Manhattan, The City of New York if there be such a corporation
        or association in such location willing to act upon reasonable and customary
        terms and conditions. If such corporation or association publishes reports
        of condition at least annually, pursuant to law or to the requirements
        of the aforesaid supervising or examining authority, then for the purposes
        of this Section, the combined capital and surplus of such corporation
        or association shall be deemed to be its combined capital and surplus
        as set forth in its most recent report of condition so published. In
        case at any time the Trustee shall cease to be eligible in accordance
        with the provisions of this Section, the Trustee shall resign immediately
        in the manner and with the effect specified in Section 6.10. 

30 

    

 

The provisions of this Section 6.9 are in furtherance
  of and subject to Section 310(a) of the Trust Indenture Act of 1939.
   Section 6.10        Resignation
          and Removal; Appointment of Successor Trustee.
          (1) The Trustee, or any trustee or trustees hereafter appointed, may
          at any time resign with respect to one or more or all series of Securities
          by giving written notice of resignation to the Issuer and (a) if any
          Unregistered Securities of a series affected are then Outstanding,
          by giving notice of such resignation to the Holders thereof, by publication,
          at the Issuer’s expense, at least once in an Authorized Newspaper in
          the Borough of Manhattan, The City of New York, and at least once in
          an Authorized Newspaper in London (and, if required by Section 3.10,
          at least once in an Authorized Newspaper in Luxembourg) and (b) if
          any Unregistered Securities of a series affected are then Outstanding,
          by mailing notice of such resignation to the Holders thereof who have
          filed their names and addresses with the Trustee pursuant to Section
          313(c)(2) of the Trust Indenture Act of 1939 at such addresses as were
          so furnished to the Trustee and (c) by mailing notice of such resignation
          to the Holders of then Outstanding Registered Securities of each series
          affected at their addresses as they shall appear on the registry books.
          Upon receiving such notice of resignation, the Issuer shall promptly
          appoint a successor Trustee or Trustees with respect to the applicable
          series by written instrument in duplicate, executed by authority of
          the Board of Directors, one copy of which instrument shall be delivered
          to the resigning Trustee and one copy to the successor Trustee or Trustees.
          If no successor Trustee shall have been so appointed with respect to
          any series and have accepted appointment within 30 days after the mailing
          of such notice of resignation, the resigning Trustee may petition,
          at the Issuer’s expense, any court of competent jurisdiction for the
          appointment of a successor Trustee, or any Securityholder who has been
          a bona fide Holder of a Security or Securities of the applicable series
          for at least six months may, subject to the provisions of Section 5.12,
          on behalf of himself or herself and all others similarly situated,
          petition any such court for the appointment of a successor Trustee.
          Such court may thereupon, after such notice, if any, as it may deem
          proper and prescribe, appoint a successor Trustee.  

     (2)        In
        case at any time any of the following shall occur:  

                (a)        the
        Trustee shall fail to comply with the provisions of Section 310(b) of
        the Trust Indenture Act of 1939 with respect to any series of Securities
        after written request therefor by the Issuer or by any Securityholder
        who has been a bona fide Holder of a Security or Securities of such series
        for at least six months; or  

                 (b)        the
        Trustee shall cease to be eligible in accordance with the provisions
        of Section 6.9 and Section 310(a) of the Trust Indenture Act of 1939
        and shall fail to resign after written request therefor by the Issuer
        or by any Securityholder; or  

                 (c)        the
        Trustee shall become incapable of acting with respect to any series of
        Securities, or shall be adjudged bankrupt or insolvent, or a receiver
        or liquidator of the Trustee or of its property shall be appointed, or
        any public officer shall take charge or control of the Trustee or of
        its property or affairs for the purpose of rehabilitation, conservation
        or liquidation;  

     then, in any such case, the Issuer may remove the Trustee
        with respect to the applicable series of Securities and appoint a successor
        Trustee for such series by written instrument, in duplicate, executed
        by order of the Board of Directors of the Issuer, one copy of which instrument
        shall be delivered to the Trustee so removed and one copy to the successor
        Trustee, or, subject to the provisions of Section 315(e) of the Trust
        Indenture Act of 1939, any Securityholder who has been a bona fide Holder
        of a Security or Securities of such series for at least six months may
        on behalf of himself or herself and all others similarly situated, petition
        any court of competent jurisdiction for the removal of the Trustee and
        the appointment of a successor Trustee with respect to such series. Such
        court may thereupon, after such notice, if any, as it may deem proper,
        remove the Trustee and appoint a successor Trustee.  

     (3)        The
        Holders of a majority in aggregate principal amount of the Securities
        of each series at the time Outstanding may at any time remove the Trustee
        with respect to Securities of such series and appoint a successor Trustee
        with respect to the Securities of such series by delivering to the Trustee
        so
        removed, to the successor Trustee so appointed and to the
        Issuer the evidence provided for in Section 7.1 of the action in that
        regard taken by such Securityholders.

31 

 

(4)         Any
    resignation or removal of the Trustee with respect to any series and any
    appointment of a successor Trustee with respect to such series pursuant to
    any of the provisions of this Section 6.10 shall become effective upon acceptance
    of appointment by the successor Trustee as provided in Section 6.11.

   Section 6.11         Acceptance
          of Appointment by Successor Trustee. Any successor
          Trustee appointed as provided in Section 6.10 shall execute and deliver
          to the Issuer and to its predecessor Trustee an instrument accepting
          such appointment hereunder, and thereupon the resignation or removal
          of the predecessor Trustee with respect to all or any applicable series
          shall become effective and such successor Trustee, without any further
          act, deed or conveyance, shall become vested with all rights, powers,
          duties and obligations with respect to such series of its predecessor
          hereunder, with like effect as if originally named as Trustee for such
          series hereunder; but, nevertheless, on the written request of the
          Issuer or of the successor Trustee, upon payment of its charges then
          unpaid, the Trustee ceasing to act shall, subject to Section 3.3, pay
          over to the successor Trustee all moneys at the time held by it hereunder
          and shall execute and deliver an instrument transferring to such successor
          trustee all such rights, powers, duties and obligations. Upon request
          of any such successor Trustee, the Issuer shall execute any and all
          instruments in writing for more fully and certainly vesting in and
          confirming to such successor Trustee all such rights and powers. Any
          Trustee ceasing to act shall, nevertheless, retain a prior claim upon
          all property or funds held or collected by such Trustee to secure any
          amounts then due it pursuant to the provisions of Section 6.6.  

     If a successor Trustee is appointed with respect to the
        Securities of one or more (but not all) series, the Issuer, the predecessor
        Trustee and each successor Trustee with respect to the Securities of
        any applicable series shall execute and deliver an indenture supplemental
        hereto which shall contain such provisions as shall be deemed necessary
        or desirable to confirm that all the rights, powers, trusts and duties
        of the predecessor Trustee with respect to the Securities of any series
        as to which the predecessor Trustee is not retiring shall continue to
        be vested in the predecessor Trustee, and shall add to or change any
        of the provisions of this Indenture as shall be necessary to provide
        for or facilitate the administration of the trusts hereunder by more
        than one Trustee, it being understood that nothing herein or in such
        supplemental indenture shall constitute such Trustees co-trustees of
        the same trust and that each such Trustee shall be Trustee of a trust
        or trusts under separate indentures.  

     No successor Trustee with respect to any series of Securities
        shall accept appointment as provided in this Section 6.11 unless at the
        time of such acceptance such successor Trustee shall be qualified under
        Section 310(b) of the Trust Indenture Act of 1939 and eligible under
        the provisions of Section 6.9.  

     Upon acceptance of appointment by any successor Trustee
        as provided in this Section 6.11, the Issuer shall give notice thereof
        (1) if any Unregistered Securities of a series affected are then Outstanding,
        to the Holders thereof, by publication of such notice at least once in
        an Authorized Newspaper in the Borough of Manhattan, The City of New
        York, and at least once in an Authorized Newspaper in London (and, if
        required by Section 3.10, at least once in an Authorized Newspaper in
        Luxembourg) and (2) if any Unregistered Securities of a series affected
        are then Outstanding, to the Holders thereof who have filed their names
        and addresses with the Trustee pursuant to Section 313(c)(2) of the Trust
        Indenture Act of 1939, by mailing such notice to such Holders at such
        addresses as were so furnished to the Trustee (and the Trustee shall
        make such information available to the Issuer for such purpose) and (3)
        if any Registered Securities of a series affected are then Outstanding,
        to the Holders thereof, by mailing such notice to such Holders at their
        addresses as they shall appear on the registry books. If the acceptance
        of appointment is substantially contemporaneous with the resignation,
        then the notice called for by the preceding sentence may be combined
        with the notice called for by Section 6.10. If the Issuer fails to give
        such notice within ten days after acceptance of appointment by the successor
        Trustee, the successor Trustee shall cause such notice to be given at
        the expense of the Issuer.  

     Section 6.12         Merger,
          Amalgamation, Conversion, Consolidation or Succession to Business of Trustee. Any corporation into which the Trustee may be merged or amalgamated
          or converted or with which it may be consolidated, or any corporation
          resulting from any merger, amalgamation, conversion or consolidation
          to which the Trustee shall be a party, or any corporation succeeding
          to all or substantially all the corporate trust business of the Trustee,
          shall be the successor of the Trustee hereunder, provided that such
          corporation shall be qualified under Section 310(b) of the Trust Indenture
          Act of 1939 and eligible under the provisions of Section 6.9, without
          the execution or filing of any paper or any further act on the part
          of any of the parties hereto, anything herein to the contrary notwithstanding. 

 

32 

  

 

In case at the time such successor to the Trustee
  shall succeed to the trusts created by this Indenture any of the Securities
  of any series shall have been authenticated but not delivered, any such successor
  to the Trustee may adopt the certificate of authentication of any predecessor
  Trustee and deliver such Securities so authenticated; and, in case at that
  time any of the Securities of any series shall not have been authenticated,
  any successor to the Trustee may authenticate such Securities either in the
  name of any predecessor hereunder or in the name of the successor Trustee;
  and in all such cases such certificate shall have the full force which it is
  anywhere in the Securities of such series or in this Indenture provided that
  the certificate of the Trustee shall have; provided, that the right to adopt
  the certificate of authentication of any predecessor Trustee or to authenticate
  Securities of any series in the name of any predecessor Trustee shall apply
  only to its successor or successors by merger, amalgamation, conversion or
  consolidation.

   Section 6.13         Preferential
          Collection of Claims Against the Issuer. The
          Trustee shall comply with Section 311(a) of the Trust Indenture Act
          of 1939, excluding any creditor relationship listed in Section 311(b)
          of the Trust Indenture Act of 1939. A Trustee who has resigned or been
          removed shall be subject to Section 311(a) of the Trust Indenture Act
          of 1939 to the extent indicated therein.  

     Section 6.14         Appointment
          of Authenticating Agent. As long as any Securities
          of a series remain Outstanding, the Trustee may, by an instrument in
          writing, appoint with the approval of the Issuer an authenticating
          agent (the “Authenticating Agent”) which shall be authorized
          to act on behalf of the Trustee to authenticate Securities, including
          Securities issued upon exchange, registration of transfer, partial
          redemption or pursuant to Section 2.9. Securities of each such series
          authenticated by such Authenticating Agent shall
          be entitled to the benefits of this Indenture and shall be valid and
          obligatory for all purposes as
        if authenticated by the Trustee. Whenever reference is made in this Indenture
        to the authentication and delivery of Securities of any series by the
        Trustee or to the Trustee’s Certificate of Authentication, such
        reference shall be deemed to include authentication and delivery on behalf
        of the Trustee by an Authenticating Agent for such series and a Certificate
        of Authentication executed on behalf of the Trustee by such Authenticating
        Agent. Such Authenticating Agent shall at all times be a corporation
        organized and doing business under the laws of the United States of America
        or of any State, authorized under such laws to exercise corporate trust
        powers, having a combined capital and surplus of at least $50,000,000
        (determined as provided in Section 6.9 with respect to the Trustee) and
        subject to supervision or examination by Federal or State authority.  

     Any corporation into which any Authenticating Agent may
        be merged, amalgamated or converted, or with which it may be consolidated,
        or any corporation resulting from any merger, amalgamation, conversion
        or consolidation to which any Authenticating Agent shall be a party,
        or any corporation succeeding to all or substantially all the corporate
        agency business of any Authenticating Agent, shall continue to be the
        Authenticating Agent with respect to all series of Securities for which
        it served as Authenticating Agent without the execution or filing of
        any paper or any further act on the part of the Trustee or such Authenticating
        Agent. Any Authenticating Agent may at any time, and if it shall cease
        to be eligible shall, resign by giving written notice of resignation
        to the Trustee and to the Issuer.  

     Upon receiving such a notice of resignation or upon such
        a termination, or in case at any time any Authenticating Agent shall
        cease to be eligible in accordance with the provisions of this Section
        6.14 with respect to one or more series of Securities, the Trustee shall
        upon receipt of an Issuer Order appoint a successor Authenticating Agent
        and the Issuer shall provide notice of such appointment to all Holders
        of Securities of such series in the manner and to the extent provided
        in Section 11.4. Any successor Authenticating Agent
        upon acceptance of its appointment hereunder shall become vested with
        all rights, powers, duties and responsibilities of its predecessor hereunder,
        with like effect as if originally named as Authenticating Agent. The
        Issuer agrees to pay to the Authenticating Agent for such series from
        time to time reasonable compensation. The Authenticating
        Agent for the Securities of any series shall have no responsibility or
        liability for any action taken by it as such at the direction of the
        Trustee. 

 

33 

 

 

 Sections 6.2, 6.3, 6.4, 6.6 and 7.3
    shall be applicable to any Authenticating Agent.  

ARTICLE VII 

CONCERNING THE SECURITYHOLDERS 

 

Section 7.1         Evidence
      of Action Taken by Securityholders. Any request,
      demand, authorization, direction, notice, consent, waiver or other action
      provided by this Indenture to be given or taken by a specified percentage
      in principal amount of the Securityholders of any or all series may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such specified percentage of Securityholders in person
      or by agent duly appointed in writing; and, except as herein otherwise
      expressly provided, such action shall become effective when such instrument
      or instruments are delivered to the Trustee. Proof of execution of any
      instrument or of a writing appointing any such agent shall be sufficient
      for any purpose of this Indenture and (subject to Sections 6.1 and 6.2)
      conclusive in favor of the Trustee and the Issuer, if made in the manner
      provided in this Article.

   Section 7.2         Proof
          of Execution of Instruments and of Holding of Securities.
          Subject to Sections 6.1 and 6.2, the execution of any instrument by
          a Securityholder or his or her agent or proxy may be proved in the
          following manner:  

     (1)         The
        fact and date of the execution by any Holder of any instrument may be
        proved by the certificate of any notary public or other officer of any
        jurisdiction authorized to take acknowledgments of deeds or administer
        oaths that the person executing such instruments acknowledged to him
        or her the execution thereof, or by an affidavit of a witness to such
        execution sworn to before any such notary or other such officer. Where
        such execution is by or on behalf of any legal entity other than an individual,
        such certificate or affidavit shall also constitute sufficient proof
        of the authority of the person executing the same.  

     (2)         The
        fact of the holding by any Holder of an Unregistered Security of any
        series, and the identifying number of such Security and the date of his
        or her holding the same, may be proved by the production of such Security
        or by a certificate executed by any trust company, bank, banker or recognized
        securities dealer wherever situated satisfactory to the Trustee, if such
        certificate shall be deemed by the Trustee to be satisfactory. Each such
        certificate shall be dated and shall state that on the date thereof a
        Security of such series bearing a specified identifying number was deposited
        with or exhibited to such trust company, bank, banker or recognized securities
        dealer by the person named in such certificate. Any such certificate
        may be issued in respect of one or more Unregistered Securities of one
        or more series specified therein. The holding by the person named in
        any such certificate of any Unregistered Securities of any series specified
        therein shall be presumed to continue for a period of one year from the
        date of such certificate unless at the time of any determination of such
        holding (a) another certificate bearing a later date issued in respect
        of the same Securities shall be produced, or (b) the Securities of such
        series specified in such certificate shall be produced by some other
        person, or (c) the Securities of such series specified in such certificate
        shall have ceased to be Outstanding. Subject to Sections 6.1 and 6.2,
        the fact and date of the execution of any such instrument and the amount
        and numbers of Securities of any series held by the person so executing
        such instrument and the amount and numbers of any Security or Securities
        for such series may also be proven in accordance with such reasonable
        rules and regulations as may be prescribed by the Trustee for such series
        or in any other manner which the Trustee for such series may deem sufficient.  

     (3)         In
        the case of Registered Securities, the ownership of such Securities shall
        be proved by the Security register or by a certificate of the Security
        registrar. 

34 

  

 

The Issuer may set a record date for purposes of
  determining the identity of Holders of Registered Securities of any series
  entitled to vote or consent to any action referred to in Section 7.1, which
  record date may be set at any time or from time to time by notice to the Trustee,
  for any date or dates (in the case of any adjournment or reconsideration) not
  more than 60 days nor less than five days prior to the proposed date of such
  vote or consent, and thereafter, notwithstanding any other provisions hereof,
  with respect to Registered Securities of any series, only Holders of Registered
  Securities of such series of record on such record date shall be entitled to
  so vote or give such consent or revoke such vote or consent.

   Section 7.3         Holders
          to Be Treated as Owners. The Issuer, the Trustee
          and any agent of the Issuer or the Trustee may deem and treat the person
          in whose name any Security shall be registered upon the Security register
          for such series as the absolute owner of such Security (whether or
          not such Security shall be overdue and notwithstanding any notation
          of ownership or other writing thereon) for the purpose of receiving
          payment of or on account of the principal of and, subject to the provisions
          of this Indenture, interest on such Security and for all other purposes;
          and neither the Issuer nor the Trustee nor any agent of the Issuer
          or the Trustee shall be affected by any notice to the contrary. The
          Issuer, the Trustee and any agent of the Issuer or the Trustee may
          treat the Holder of any Unregistered Security and the Holder of any
          Coupon as the absolute owner of such Unregistered Security or Coupon
          (whether or not such Unregistered Security or Coupon shall be overdue)
          for the purpose of receiving payment thereof or on account thereof
          and for all other purposes and neither the Issuer, the Trustee, nor
          any agent of the Issuer or the Trustee shall be affected by any notice
          to the contrary. All such payments so made to any such person, or upon
          his or her order, shall be valid, and, to the extent of the sum or
          sums so paid, effectual to satisfy and discharge the liability for
          moneys payable upon any such Unregistered Security or Coupon.  

     Section 7.4         Securities
          Owned by Issuer Deemed Not Outstanding. In
          determining whether the Holders of the requisite aggregate principal
          amount of Outstanding Securities of any or all series have concurred
          in any direction, consent or waiver under this Indenture, Securities
          which are owned by the Issuer or any other obligor on the Securities
          with respect to which such determination is being made or by any person
          directly or indirectly controlling or controlled by or under direct
          or indirect common control with the Issuer or any other obligor on
          the Securities with respect to which such determination is being made
          shall be disregarded and deemed not to be Outstanding for the purpose
          of any such determination, except that for the purpose of determining
          whether the Trustee shall be protected in relying on any such direction,
          consent or waiver only Securities which a Responsible Officer of the
          Trustee actually knows are so owned shall be so disregarded. Securities
          so owned which have been pledged in good faith may be regarded as Outstanding
          if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
          right so to act with respect to such Securities and that the pledgee
          is not the Issuer or any other obligor upon the Securities or any person
          directly or indirectly controlling or controlled by or under direct
          or indirect common control with the Issuer or any other obligor on
          the Securities. In case of a dispute as to such right, the advice of
          counsel shall be full protection in respect of any decision made by
          the Trustee in accordance with such advice. Upon request of the Trustee,
          the Issuer shall furnish to the Trustee promptly an Officer’s
          Certificate listing and identifying all Securities, if any, known by
          the Issuer to be owned or held by or for the account of any of the
          above-described Persons; and, subject to Sections 6.1 and 6.2, the
          Trustee shall be entitled to accept such Officer’s Certificate
          as conclusive evidence of the facts therein set forth and of the fact
          that all Securities not listed therein are Outstanding for the purpose
          of any such determination.  

     Section 7.5         Right
          of Revocation of Action Taken. At any time
          prior to (but not after) the evidencing to the Trustee, as provided
          in Section 7.1, of the taking of any action by the Holders of the percentage
          in aggregate principal amount of the Securities of any or all series,
          as the case may be, specified in this Indenture in connection with
          such action, any Holder of a Security the serial number of which is
          shown by the evidence to be included among the serial numbers of the
          Securities the Holders of which have consented to such action may,
          by filing written notice at the Corporate Trust Office and upon proof
          of holding as provided in this Article, revoke such action so far as
          concerns such Security. Except as aforesaid any such action taken by
          the Holder of any Security shall be conclusive and binding upon such
          Holder and upon all future Holders and owners of such Security and
          of any Securities issued in exchange or substitution therefor or on
          registration of transfer thereof, irrespective of whether or not any
          notation in regard thereto is made upon any such Security. Any action
          taken by the Holders of the percentage in aggregate principal amount
          of the Securities of any or all series, as the case may be, specified
          in this Indenture in connection with such action shall be conclusively
          binding upon the Issuer, the Trustee and the Holders of all the Securities
          affected by such action. 

35 

  

ARTICLE VIII 

SUPPLEMENTAL INDENTURES

Section 8.1         Supplemental
      Indentures Without Consent of Securityholders.
      (1) In addition to any supplemental indenture otherwise authorized by this
      Indenture, the Issuer, when authorized by a resolution of its Board of
      Directors (which resolution may provide general terms or parameters for
      such action and may provide that the specific terms of such action may
      be determined in accordance with or pursuant to an Issuer Order), and the
      Trustee may from time to time and at any time enter into an indenture or
      indentures supplemental hereto, which comply with the Trust Indenture Act
      of 1939, as then in effect, without the consent of the Holders, for one
      or more of the following purposes:

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

                 (b)         to
        evidence the succession of another Person to the Issuer, or successive
        successions, and the assumption by the successor Person of the covenants,
        agreements and obligations of the Issuer pursuant to Article IX;  

                 (c)         to
        add to the covenants of the Issuer such further covenants, restrictions,
        conditions or provisions as the Issuer and the Trustee shall consider
        to be for the protection of the Holders of Securities or Coupons, and
        to make the occurrence, or the occurrence and continuance, of a default
        in any such additional covenants, restrictions, conditions or provisions
        an Event of Default permitting the enforcement of all or any of the several
        remedies provided in this Indenture as herein set forth; provided, that
        in respect of any such additional covenant, restriction, condition or
        provision such supplemental indenture may provide for a particular period
        of grace after default (which period may be shorter or longer than that
        allowed in the case of other defaults) or may provide for an immediate
        enforcement upon such an Event of Default or may limit the remedies available
        to the Trustee upon such an Event of Default or may limit the right of
        the Holders of a majority in aggregate principal amount of the Securities
        of such series to waive such an Event of Default;  

                 (d)         to
        cure any ambiguity or to correct or supplement any provision contained
        herein or in any supplemental indenture which may be defective or inconsistent
        with any other provision contained herein or in any supplemental indenture,
        or to make any other provisions as the Issuer may deem necessary or desirable,
        provided that no such action shall adversely affect the interests of
        the Holders of the Securities or Coupons;  

                 (e)         to
        establish the forms or terms of Securities of any series or of the Coupons
        appertaining to such Securities as permitted by Sections 2.1 and 2.3;
        and  

                 (f)         to
        evidence and provide for the acceptance of appointment hereunder by a
        successor Trustee with respect to the Securities of one or more series
        and to add to or change any of the provisions of this Indenture as shall
        be necessary to provide for or facilitate the administration of the trusts
        hereunder by more than one Trustee, pursuant to the requirements of Section
        6.11.  

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

     (3)         Any
        supplemental indenture authorized by the provisions of this Section may
        be executed without the consent of the Holders of any of the Securities
        at the time outstanding, notwithstanding any of the provisions of Section
        8.2. 

36 

 

 

Section 8.2         Supplemental
      Indentures With Consent of Securityholders. (1)
      With the consent (evidenced as provided in Article VII) of the Holders
      of not less than a majority in aggregate principal amount of the Securities
      at the time Outstanding of all series affected by such supplemental indenture
      (voting as one class), the Issuer, when authorized by a resolution of its
      Board of Directors (which resolution may provide general terms or parameters
      for such action and may provide that the specific terms of such action
      may be determined in accordance with or pursuant to an Issuer Order), and
      the Trustee may, from time to time and at any time, enter into an indenture
      or indentures supplemental hereto, which comply with the Trust Indenture
      Act of 1939, as then in effect, for the purpose of adding any provisions
      to or changing in any manner or eliminating any of the provisions of this
      Indenture or of any supplemental indenture or of modifying in any manner
      the rights of the Holders of the Securities of each such series or of the
      Coupons appertaining to such Securities; provided, that no such supplemental
      indenture shall (a) extend the final maturity of any then issued Security,
      or reduce the principal amount thereof, or reduce the rate or extend the
      time of payment of interest thereon, or reduce any amount payable on redemption
      thereof, or make the principal thereof (including any amount in respect
      of original issue discount), or interest thereon payable in any coin or
      currency other than that provided in such Securities and any Coupons thereon
      or in accordance with the terms thereof, or reduce the amount of the principal
      of a then issued Original Issue Discount Security that would be due and
      payable upon an acceleration of the maturity thereof pursuant to Section
      5.1 or the amount thereof provable in bankruptcy pursuant to Section 5.2,
      or impair or affect the right of any Securityholder to institute suit for
      the payment thereof or, if such Securities provide therefor, any right
      of repayment at the option of the Securityholder, in each case without
      the consent of the Holder of each Security so affected, or (b) reduce the
      percentage in principal amount of then issued Securities of any series,
      the consent of the Holders of which is required for any such supplemental
      indenture, without the consent of the Holders of each Security so affected.

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

     (3)         Upon
        the request of the Issuer, accompanied by a copy of a resolution of the
        Board of Directors (which resolution may provide general terms or parameters
        for such action and may provide that the specific terms of such action
        may be determined in accordance with or pursuant to an Issuer Order)
        certified by the secretary or an assistant secretary of the Issuer authorizing
        the execution of any such supplemental indenture, and upon the filing
        with the Trustee of evidence of the consent of the Holders of the Securities
        as aforesaid and other documents, if any, required by Section 7.1, the
        Trustee shall join with the Issuer in the execution of such supplemental
        indenture unless such supplemental indenture affects the Trustee’s
        own rights, duties or immunities under this Indenture or otherwise, in
        which case the Trustee may in its discretion, but shall not be obligated
        to, enter into such supplemental indenture.  

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

     (5)         Promptly
        after the execution by the Issuer and the Trustee of any supplemental
        indenture pursuant to the provisions of this Section, the Trustee shall
        give notice thereof (a) if any Registered Securities of a series affected
        thereby are then Outstanding, to the Holders thereof by mailing a notice
        thereof by first-class mail to such Holders at their addresses as they
        shall appear on the Security register, (b) if any Unregistered Securities
        of a series affected thereby are then Outstanding, to the Holders thereof
        who have filed their names and addresses with the Trustee pursuant to
        Section 313 (c)(2) of the Trust Indenture Act of 1939, by mailing a notice
        thereof by first-class mail to such Holders at such addresses as were
        so furnished to the Trustee and (c) if any Unregistered Securities of
        a series affected thereby are then Outstanding, to all Holders thereof,
        by publication of a notice thereof at least once in an Authorized Newspaper
        in the Borough of Manhattan, The City of New York, and at least once
        in an Authorized Newspaper in London (and, if required by Section 3.10,
        at least once in an Authorized Newspaper in Luxembourg),
        and in each case such notice shall set forth in general terms the substance
        of such supplemental indenture. Any failure of the Issuer to give such
        notice, or any defect therein, shall not, however, in any way impair
        or affect the validity of any such supplemental indenture. 

 

37 

  

 

Section 8.3         Effect
      of Supplemental Indenture. Upon the execution of
      any supplemental indenture pursuant to the provisions hereof, this Indenture
      shall be and be deemed to be modified and amended in accordance therewith
      and the respective rights, limitations of rights, obligations, duties and
      immunities under this Indenture of the Trustee, the Issuer and the Holders
      of Securities of each series affected thereby shall thereafter be determined,
      exercised and enforced hereunder subject in all respects to such modifications
      and amendments, and all the terms and conditions of any such supplemental
      indenture shall be and be deemed to be part of the terms and conditions
      of this Indenture for any and all purposes.

   Section 8.4         Documents
          to Be Given to Trustee. The Trustee, subject
          to the provisions of Sections 6.1 and 6.2, shall be entitled to receive,
          and shall be fully protected in relying upon, an Officer’s Certificate
          and an Opinion of Counsel as conclusive evidence that any supplemental
          indenture executed pursuant to this Article VIII complies with the
          applicable provisions of this Indenture.  

     Section 8.5         Notation
          on Securities in Respect of Supplemental Indentures.
          Securities of any series authenticated and delivered after the execution
          of any supplemental indenture pursuant to the provisions of this Article
          may bear a notation in form approved by the Trustee for such series
          as to any matter provided for by such supplemental indenture or as
          to any action taken by Securityholders. If the Issuer or the Trustee
          shall so determine, new Securities of any series so modified as to
          conform, in the opinion of the Trustee and the Board of Directors,
          to any modification of this Indenture contained in any such supplemental
          indenture may be prepared by the Issuer, authenticated by the Trustee
          and delivered in exchange for the Securities of such series then Outstanding.  

     Section 8.6         Conformity
          with Trust Indenture Act of 1939. Every supplemental
          indenture executed pursuant to this Article shall conform to the requirements
          of the Trust Indenture Act of 1939 as then in effect. 

ARTICLE IX 

CONSOLIDATION, MERGER, AMALGAMATION, SALE OR CONVEYANCE

Section 9.1         Issuer
      May Consolidate, Etc., Only on Certain Terms. The
      Issuer shall not consolidate with or merge or amalgamate into another Person
      or sell other than for cash all or substantially all its assets to another
      Person, or purchase all or substantially all the assets of another Person,
      unless:

   (1)         either
        the Issuer is the continuing Person, or the successor Person (if other
        than the Issuer) expressly assumes by supplemental indenture the obligations
        and covenants evidenced by the Indenture and the Securities (in which
        case, the Issuer will be discharged therefrom),  

     (2)         immediately
        thereafter, the Issuer or the successor Person (if other than the Issuer)
        would not be in default in the performance of any covenant or condition
        contained herein, and  

     (3)         a
        specified Officers’ Certificate and an Opinion of Counsel are delivered
        to the Trustee, each (i) stating that such consolidation, merger, sale,
        conveyance, or transfer, as the case may be, and any supplemental indenture
        pertaining thereto, comply with this Article VIII and Article IX, respectively,
        and (ii) otherwise complying with Section 11.5 herein.  

     Section 9.2         Successor
          Substituted for the Issuer. Upon any consolidation
          of the Issuer with, or merger or amalgamation of the Issuer into, any
          other Person or any conveyance or transfer of the properties and assets
          of the Issuer substantially as an entirety in accordance with Section
          9.1, the successor Person formed by such consolidation or into which
          the Issuer is merged or amalgamated or to which such conveyance or
          transfer is made shall succeed to, and be substituted for, and may
          exercise every right and power of, the Issuer under this
          Indenture with the same effect as if such successor Person had been
          named as the Issuer herein, and thereafter, the predecessor Person
          shall be relieved of all obligations and covenants under this Indenture
          and the Securities. 

 

38 

  

 

Section 9.3         Restrictions
      on Certain Dispositions. As long as any of the
      Securities remain Outstanding, the Issuer will not, and will not permit
      any Restricted Subsidiary to, issue, sell, assign, transfer or otherwise
      dispose of, directly or indirectly, any of the Voting Shares of any Restricted
      Subsidiary, unless:

   (1)         the
        issuance, sale, assignment, transfer or other disposition is required
        to comply with the order of a court or regulatory authority of competent
        jurisdiction, other than an order issued at the request of the Issuer
        or of one of its Restricted Subsidiaries;  

     (2)         all
        of the Voting Shares of a Restricted Subsidiary then owned by the Issuer
        or by its Restricted Subsidiaries is disposed of in a single transaction
        or in a series of related transactions, for a consideration consisting
        of cash or other property the fair market value of which (as determined
        in good faith by the Board of Directors) is at least equal to the Fair
        Value of such Voting Shares;  

     (3)         the
        issuance, sale, assignment, transfer or other disposition is made to
        the Issuer or another Restricted Subsidiary;  

     (4)         any
        issuance, sale, assignment, transfer or other disposition made in compliance
        with an order of a court or regulatory authority of competent jurisdiction;
        or  

     (5)         after
        giving effect to the issuance sale, assignment, transfer or other disposition,
        the Issuer and its Restricted Subsidiaries would own directly or indirectly
        at least 80% of the issued and outstanding Voting Shares of such Restricted
        Subsidiary and such issuance, sale, assignment, transfer or other disposition
        is made for a consideration consisting of cash or other property which
        is at least equal to the Fair Value of such Voting Shares.  

     Notwithstanding the foregoing, the Issuer may merge or consolidate
        any of its other Subsidiaries into or with another Person and it may
        sell, transfer or otherwise dispose of its business in accordance with
        the provisions of this Article IX. Furthermore, the foregoing covenant
        will not prohibit any issuance or disposition of securities by any other
        Subsidiary. 

ARTICLE X 

SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

Section 10.1         Termination
      of Issuer’s Obligations Under the Indenture.
      (1) This Indenture shall upon an Issuer Order cease to be of further effect
      with respect to Securities of or within any series and any Coupons appertaining
      thereto (except as to any surviving rights of registration of transfer
      or exchange of such Securities and replacement of such Securities which
      may have been lost, stolen or mutilated as herein expressly provided for)
      and the Trustee, at the expense of the Issuer, shall execute proper instruments
      acknowledging satisfaction and discharge of this Indenture with respect
      to such Securities and any Coupons appertaining thereto when

	 	 	 
	 	 	           (a)     either

	 	 	 	 	      (i)     all
        such Securities previously authenticated and delivered and all Coupons
        appertaining thereto (other than (A) such Coupons appertaining to Unregistered
        Securities surrendered in exchange for Registered Securities and maturing
        after such exchange, surrender of which is not required or has been waived
        as provided in Section 2.8, (B) such Securities and Coupons which have
        been destroyed, lost or stolen and which have been replaced or paid as
        provided in Section 2.9, (C) such Coupons appertaining to Unregistered
        Securities called for redemption and maturing after the date fixed for
        redemption thereof, surrender of which has been waived as provided in
        Section 12.3 and (D) such Securities and Coupons for whose payment money
        has theretofore been deposited in trust or segregated and held in trust
        by the Issuer and thereafter repaid to the Issuer or discharged from
        such trust as provided in Section 3.3) have been delivered to the Trustee
        for cancellation; or

 

39 

  
  

	 	 	 	 	 
	 	 	 	 	      (ii)     all
        Securities of such series and, in the case of (X) or (Y) below, all Coupons
        appertaining thereto not theretofore delivered to the Trustee for cancellation
        (X) have become due and payable, or (Y) will become due and payable within
        one year, or (Z) if redeemable at the option of the Issuer, are to be
        called for redemption within one year under arrangements satisfactory
        to the Trustee for the giving of notice of redemption by the Trustee
        in the name, and at the expense, of the Issuer, and the Issuer, in the
        case of (X), (Y) or (Z) above, has irrevocably deposited or caused to
        be deposited with the Trustee as trust funds in trust for the purpose
        an amount in the currency or currencies or currency unit or units in
        which the Securities of such series are payable, sufficient to pay and
        discharge the entire indebtedness on such Securities and such Coupons
        not theretofore delivered to the Trustee for cancellation, for principal,
        premium, if any, and interest, with respect thereto, to the date of such
        deposit (in the case of Securities which have become due and payable)
        or maturity date or redemption date, as the case may be;
	 	 	 	 	 

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

	 	 	           (c)     the
        Issuer has delivered to the Trustee an Officers' Certificate and an Opinion
        of Counsel, each stating that all conditions precedent herein provided
        for relating to the satisfaction and discharge of this Indenture as to
        such series have been complied with.
	 	 	 

(2)         Notwithstanding
    the satisfaction and discharge of this Indenture, the obligation of the Issuer
    to the Trustee and any predecessor Trustee under Section 6.6, the obligations
    of the Issuer to any Authenticating Agent under Section 6.14 and, if money
    shall have been deposited with the Trustee pursuant to (1)(a)(ii) of this
    Section, the obligations of the Trustee under Section 10.2 and the last paragraph
    of Section 3.3 shall survive.

   Section 10.2         Application
          of Trust Funds. Subject to the provisions of
          the last paragraph of Section 3.3, all money deposited with the Trustee
          pursuant to Section 10.1 shall be held in trust and applied by it,
          in accordance with the provisions of the Securities, the Coupons and
          this Indenture, to the payment, either directly or through any paying
          agent (including the Issuer acting as its own paying agent) as the
          Trustee may determine, to the Persons entitled thereto of the principal,
          premium, if any and any interest for whose payment such money has been
          deposited with or received by the Trustee, but such money need not
          be segregated from other funds except to the extent required by law.  

     Section 10.3         Applicability
          of Defeasance Provisions; Issuer’s Option to Effect Defeasance
          or Covenant Defeasance.
          If pursuant to Section 2.3 provision is made for either or both of
          (1) defeasance of the Securities of or within a series under Section
          10.4 or (2) covenant defeasance of the Securities of or within a series
          under Section 10.5, then the provisions of such Section or Sections,
          as the case may be, together with the provisions of Sections 10.6 through
          10.9 inclusive, with such modifications thereto as may be specified
          pursuant to Section 2.3 with respect to any Securities, shall be applicable
          to such Securities and any Coupons appertaining thereto, and the Issuer
          may at its option by or pursuant to Board Resolution, at any time,
          with respect to such Securities and any Coupons appertaining thereto,
          elect to have Section 10.4 (if applicable) or Section 10.5 (if applicable)
          be applied to such Outstanding Securities and any Coupons appertaining
          thereto upon compliance with the conditions set forth below in this
          Article. 

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Section 10.4         Defeasance
      and Discharge. Upon the Issuer’s exercise
      of the option specified in Section 10.3 applicable to this Section with
      respect to the Securities of or within a series, the Issuer shall be deemed
      to have been discharged from its obligations with respect to such Securities
      and any Coupons appertaining thereto on and after the date the
      conditions set forth in Section 10.6 are satisfied (hereinafter “defeasance”).
      For this purpose, such defeasance means that the Issuer shall be deemed
      to have paid and discharged the entire indebtedness represented by such
      Securities and any Coupons appertaining thereto which shall thereafter
      be deemed to be “Outstanding” only for the purposes of Section 10.7
      and the other Sections of this Indenture referred to in clause (2) of this
      Section, and to have satisfied all its other obligations under such Securities
      and any Coupons appertaining thereto and this Indenture insofar as such
      Securities and any Coupons appertaining thereto are concerned (and the
      Trustee, at the expense of the Issuer, shall on an Issuer Order execute
      proper instruments acknowledging the same), except the following which
      shall survive until otherwise terminated or discharged hereunder: (1) the
      rights of Holders of such Securities and any Coupons appertaining thereto
      to receive, solely from the trust funds described in Section 10.6(1) and
      as more fully set forth in such Section, payments in respect of the principal
      of, premium, if any, and interest, if any, on such Securities or any Coupons
      appertaining thereto when such payments are due; (2) the Issuer’s
      obligations with respect to such Securities under Sections 2.8, 2.9, 3.2
      and 3.3 and with respect to the payment of additional amounts, if any,
      payable with respect to such Securities as specified pursuant to Section
      2.3; (3) the rights, powers, trusts, duties and immunities of the Trustee
      hereunder and (4) this Article X. Subject to compliance with this Article
      X, the Issuer may exercise its option under this Section notwithstanding
      the prior exercise of its option under Section 10.5 with respect to such
      Securities and any Coupons appertaining thereto. Following a defeasance,
      payment of such Securities may not be accelerated because of an Event of
      Default.

   Section 10.5         Covenant
        Defeasance. Upon the Issuer’s exercise of
        the option specified in Section 10.3 applicable to this Section with
        respect to any Securities of or within a series, the Issuer shall be
        released from its obligations under Section 9.1 and 3.5 and, if specified
        pursuant to Section 2.3, its obligations under any other covenant with
        respect to such Securities and any Coupons appertaining thereto on an
        after the date the conditions set forth in Section 10.6 are satisfied
        (hereinafter, “covenant defeasance”), and such Securities
        and any Coupons appertaining thereto shall thereafter be deemed to be
        not “Outstanding” for the purposes of any direction, waiver, consent
        or declaration or Act of Holders (and the consequences of any thereof)
        in connection with Sections 9.1 and 3.5 or such other covenant, but shall
        continue to be deemed “Outstanding” for all other purposes hereunder.
        For this purpose, such covenant defeasance means that, with respect to
        such Securities and any Coupons appertaining thereto, the Issuer may
        omit to comply with and shall have no liability in respect of any term,
        condition or limitation set forth in any such Section or such other covenant,
        whether directly or indirectly, by reason of any reference elsewhere
        herein to any such Section or such other covenant or by reason of reference
        in any such Section or such other covenant to any other provision herein
        or in any other document and such omission to comply shall not constitute
        a default or an Event of Default under Section 5.1(4) or (8) or otherwise,
        as the case may be, but, except as specified above, the remainder of
        this Indenture and such Securities and any Coupons appertaining thereto
        shall be unaffected thereby.  

   Section 10.6         Conditions
        to Defeasance or Covenant Defeasance. The following
        shall be the conditions to application of Section 10.4 or Section 10.5
        to any Securities of or within a series and any Coupons appertaining
        thereto:  

   (1)          The
      Issuer shall have deposited or caused to be deposited irrevocably with
      the Trustee (or another Trustee satisfying the requirements of Section
      6.9 who shall agree to comply with, and shall be entitled to the benefits
      of, the provisions of Sections 10.3 through 10.9 inclusive and the last
      paragraph of Section 3.3 applicable to the Trustee, for purposes of such
      Sections also a “Trustee”) as trust funds in trust for the purpose
      of making the payments referred to in clauses (X) and (Y) of this Section
      10.6(1), specifically pledged as security for, and dedicated solely to,
      the benefit of the Holders of such Securities and any Coupons appertaining
      thereto, with instructions to the Trustee as to the application thereof,
      (a) money in an amount (in such currency, currencies or currency unit or
      units in which such Securities and any Coupons appertaining thereto are
      then specified as payable at maturity), or (b) if Securities of such series
      are not subject to repayment at the option of Holders, U.S. Government
      Obligations which through the payment of interest and principal in respect
      thereof in accordance with their terms will provide, not later than one
      day before the due date of any payment referred to in clause (X) or (Y)
      of this Section 10.6(1), money in an amount or (c) a combination thereof
      in an amount sufficient, in the opinion of a nationally recognized firm
      of independent certified public accountants expressed in a written certification
      thereof delivered to the Trustee, to pay and discharge, and
      which shall be applied by the Trustee to pay and discharge, (X) the principal
      of, premium, if any, and interest, if any, on Securities and any Coupons
      appertaining thereto on the maturity of such principal or installment of
      principal or interest and (Y) any mandatory sinking fund payments applicable
      to such Securities on the day on which such payments are due and payable
      in accordance with the terms of this Indenture and such Securities and
      any Coupons appertaining thereto. Before such a deposit the Issuer may
      make arrangements satisfactory to the Trustee for the redemption of Securities
      at a future date or dates in accordance with Article XII which shall be
given effect in applying the foregoing. 

 

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(2)         Such
    defeasance or covenant defeasance shall not result in a breach or violation
    of, or constitute a default or Event of Default under, this Indenture or
    result in a breach or violation of, or constitute a default under, any other
    material agreement or instrument to which the Issuer is a party or by which
    it is bound.

   (3)         In
        the case of an election under Section 10.4, the Issuer shall have delivered
        to the Trustee an Officers’ Certificate and an Opinion of Counsel
        to the effect that (a) the Issuer has received from, or there has been
        published by, the Internal Revenue Service a ruling, or (b) since the
        date of execution of this Indenture, there has been a change in the applicable
        Federal income tax law, in either case to the effect that, and based
        thereon such opinion shall confirm that, the Holders of such Securities
        and any Coupons appertaining thereto will not recognize income, gain
        or loss for Federal income tax purposes as a result of such defeasance
        and will be subject to Federal income tax on the same amount and in the
        same manner and at the same times, as would have been the case if such
        deposit, defeasance and discharge had not occurred.  

     (4)         In
        the case of an election under Section 10.5, the Issuer shall have delivered
        to the Trustee an Opinion of Counsel to the effect that the Holders of
        such Securities and any Coupons appertaining thereto 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.  

     (5)         The
        Issuer shall have delivered to the Trustee an Officers’ Certificate
        and an Opinion of Counsel, each stating that all conditions precedent
        to the defeasance under Section 10.4 or the covenant defeasance under
        Section 10.5 (as the case may be), including those contained in this
        Section 10.6 other than the 90 day period specified in Section 10.6(7),
        have been complied with.  

     (6)         This
        Issuer shall have delivered to the Trustee an Officer’s Certificate
        to the effect that neither such Securities nor any other Securities of
        the same series, if then listed on any securities exchange, will be delisted
        as a result of such deposit.  

     (7)         No
        event which is, or after notice or lapse of time or both would become,
        an Event of Default with respect to such Securities or any other Securities
        shall have occurred and be continuing at the time of such deposit or,
        with regard to any such event specified in Sections 5.1(5) and (6), at
        any time on or prior to the 90th day after the date of such deposit (it
        being understood that this condition shall not be deemed satisfied until
        after such 90th day).  

     (8)          Such
        defeasance or covenant defeasance shall not result in the trust arising
        from such deposit constituting an investment company within the meaning
        of the Investment Company Act of 1940 unless such trust shall be registered
        under such Act or exempt from registration thereunder.  

     (9)          Such
        defeasance or covenant defeasance shall be effected in compliance with
        any additional or substitute terms, conditions or limitations which may
        be imposed on the Issuer in connection therewith as contemplated by Section
        2.3.  

 

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Section 10.7          Deposited
      Money and U.S. Government Obligations to be Held in Trust. Subject
      to the provisions of the last paragraph of Section 3.3, all money and U.S.
      Government Obligations  (or other property as may be provided pursuant
      to Section 2.3) (including the proceeds thereof) deposited with the Trustee
      pursuant to Section 10.6 in respect of any Securities of any series and
      any Coupons appertaining thereto shall be held in trust and applied by
      the Trustee, in accordance with the provisions of such Securities and any
      Coupons appertaining thereto and this Indenture, to the payment, either
      directly or through any paying agent (including the Issuer acting as its
      own paying agent) as the Trustee may determine, to the Holders of such
      Securities and any Coupons appertaining thereto of all sums due and to
      become due thereon in respect of principal, premium, if any, and interest,
      if any, but such money need not be segregated from other funds except to
      the extent required by law.

   Section 10.8         Repayment
              to Issuer. The Trustee (any paying agent)
              shall promptly pay to the Issuer upon Issuer Order any excess money
              or securities held by them at any time.  

   Section 10.9        Indemnity
                For U.S. Government Obligations. The Issuer
                shall pay, and shall indemnify the Trustee against, any tax, fee
                or other charge imposed on or assessed against U.S. Government Obligations
				deposited pursuant to this Article
            or the principal and interest and any other amount received on such
            U.S. Government Obligations.

   Section 10.10         Reimbursement.
            If the Trustee or the paying agent is unable to apply any money in
            accordance with this Article with respect to any Securities by reason
            of any order or judgment of any court or government authority enjoining,
            restraining or otherwise prohibiting such application, then the obligations
            under this Indenture and such Securities from which the Issuer has
            been discharged or released pursuant to Section 10.4 or 10.5 shall
            be revived and reinstated as though no deposit had occurred pursuant
            to this Article with respect to such Securities, until such time
            as the Trustee or paying agent is permitted to apply all money held
            in trust pursuant to Section 10.7 with respect to such Securities
            in accordance with this Article; provided, however, that if the Issuer
            makes any payment of principal of or any premium or interest on any
            such Security following such reinstatement of its obligations, the
            Issuer shall be subrogated to the rights (if any) of the Holders
            of such Securities to receive such payment from the money so held
            in trust. 

ARTICLE XI 

MISCELLANEOUS PROVISIONS

Section 11.1         Incorporators,
      Shareholders, Officers and Directors of Issuer Exempt from Individual Liability.
      No recourse under or upon any obligation, covenant or agreement contained
      in this Indenture, or in any Security, or because of any indebtedness evidenced
      thereby, shall be had against any incorporator, as such or against any
      past, present or future shareholder, officer or director, as such, of the
      Issuer or of any successor, either directly or through the Issuer or any
      successor, under any rule of law, statute or constitutional provision or
      by the enforcement of any assessment or by any legal or equitable proceeding
      or otherwise, all such liability being expressly waived and released by
      the acceptance of the Securities and the Coupons appertaining thereto by
      the Holders thereof and as part of the consideration for the issue of the
      Securities and the Coupons appertaining thereto.

   Section 11.2         Provisions
          of Indenture for the Sole Benefit of Parties and Holders of Securities and
          Coupons. Nothing in this Indenture, in the
          Securities or in the Coupons appertaining thereto, expressed or implied,
          shall give or be construed to give to any person, firm or corporation,
          other than the parties hereto and their successors and the Holders
          of the Securities or Coupons, if any, any legal or equitable right,
          remedy or claim under this Indenture or under any covenant or provision
          herein contained, all such covenants and provisions being for the sole
          benefit of the parties hereto and their successors and of the Holders
          of the Securities or Coupons, if any.  

     Section 11.3         Successors
          and Assigns of Issuer Bound by Indenture. All
          the covenants, stipulations, promises and agreements in this Indenture
          contained by or in behalf of the Issuer shall bind its successors and
          assigns, whether so expressed or not. 

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Section 11.4         Notices
      and Demands on Issuer, Trustee and Holders of Securities and Coupons.
      Any notice or demand which by any provision of this Indenture is required
      or permitted to be given or served by the Trustee or by the Holders of
      Securities or Coupons to or on the Issuer shall be in writing (which may
      be by facsimile) and may be given or served by being deposited postage
      prepaid, first-class mail (except as otherwise specifically provided herein)
      addressed (until another address of the Issuer is filed by the Issuer with
      the Trustee) to Endurance Specialty Holdings Ltd., Wellesley House, 90
      Pitts Bay Road, Pembroke HM 08, Bermuda, Attn: General Counsel. Any notice,
      direction, request or demand by the Issuer or any Holder of Securities
      or Coupons to or upon the Trustee shall be deemed to have been sufficiently
      given or served by being deposited postage prepaid, first-class mail (except
      as otherwise specifically provided herein) addressed (until another address
      of the Trustee is filed by the Trustee with the Issuer) to The Bank of
      New York, 101 Barclay Street, Floor 8-W, New York, NY 10286, Attn: Corporate
      Trust Administration.

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

     In case, by reason of the suspension of or irregularities
        in regular mail service, it shall be impracticable to mail notice to
        the Issuer when such notice is required to be given pursuant to any provision
        of this Indenture, then any manner of giving such notice as shall be
        reasonably satisfactory to the Trustee shall be deemed to be a sufficient
        giving of such notice.  

     Section 11.5         Officer’s
          Certificates and Opinions of Counsel; Statements to Be Contained Therein. Upon any application or demand by the Issuer to the Trustee to take
          any action under any of the provisions of this Indenture, the Issuer
          shall furnish to the Trustee an Officer’s Certificate stating
          that all conditions precedent provided for in this Indenture relating
          to the proposed action have been complied with and an Opinion of Counsel
          stating that in the opinion of such counsel all such conditions precedent
          have been complied with, except that in the case of any such application
          or demand as to which the furnishing of such documents is specifically
          required by any provision of this Indenture relating to such particular
          application or demand, no additional certificate or opinion need be
          furnished.  

     Each certificate or opinion provided for in this Indenture
        and delivered to the Trustee with respect to compliance with a condition
        or covenant provided for in this Indenture shall include (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, he or she has made such examination or investigation
        as is necessary to enable him or her to express an informed opinion as
        to whether or not such covenant or condition has been complied with and
        (4) a statement as to whether or not, in the opinion of such person,
        such condition or covenant has been complied with.  

     Any certificate, statement or opinion of an officer of the
        Issuer may be based, insofar as it relates to legal matters, upon a certificate
        or opinion of or representations by counsel, unless such officer knows
        that the certificate or opinion or representations with respect to the
        matters upon which his or her certificate, statement or opinion may be
        based as aforesaid are erroneous, or in the exercise of reasonable care
        should know that the same are erroneous. Any certificate, statement or
        opinion of counsel may be based, insofar as it relates to factual matters,
        information with respect to which is in the possession of the Issuer,
        upon the certificate, statement or opinion of or representations by an
        officer or officers of the Issuer, unless such counsel actually knows
        that the certificate, statement or opinion or representations with respect to
        the matters upon which his or her certificate, statement or opinion may
        be based as aforesaid are erroneous, or in the exercise of reasonable
        care should know that the same are erroneous. 

 

44 

  

 

Any certificate, statement or opinion of an officer
  of the Issuer or of counsel may be based, insofar as it relates to accounting
  matters, upon a certificate or opinion of or representations by an accountant
  or firm of accountants in the employ of the Issuer, unless such officer or
  counsel, as the case may be, knows that the certificate or opinion or representations
  with respect to the accounting matters upon which his or her certificate, statement
  or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable
  care should know that the same are erroneous.

   Any certificate or opinion of any independent firm of public
        accountants filed with and directed to the Trustee shall contain a statement
        that such firm is independent.  

     Section 11.6         Payments
          Due on Saturdays, Sundays and Holidays. If
          the date of maturity of interest on or principal of the Securities
          of any series or any Coupons appertaining thereto or the date fixed
          for redemption or repayment of any such Security or Coupon shall not
          be a Business Day, then payment of interest or principal need not be
          made on such date, but may be made on the next succeeding Business
          Day with the same force and effect as if made on the date of maturity
          or the date fixed for redemption, and no interest shall accrue for
          the period after such date.  

     Section 11.7         Conflict
          of Any Provision of Indenture with Trust Indenture Act of 1939.
          If and to the extent that any provision of this Indenture limits, qualifies
          or conflicts with the duties imposed by, or with another provision
          (an “incorporated provision”) included in this Indenture
          by operation of, Sections 310 to 318, inclusive, of the Trust Indenture
          Act of 1939, such imposed duties or incorporated provision shall control.  

     Section 11.8         New
          York Law to Govern; Waiver of Jury Trial. This
          Indenture and each Security and Coupon shall be deemed to be a contract
          under the laws of the State of New York, and for all purposes shall
          be construed in accordance with the laws of such State, except as may
          otherwise be required by mandatory provisions of law.  

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

     Section 11.9         Counterparts.
        This Indenture may be executed in any number of counterparts, each of
        which shall be an original; but such counterparts shall together constitute
        but one and the same instrument.  

     Section 11.10         Effect
          of Headings. The Article and Section headings
          herein and the Table of Contents are for convenience only and shall
          not affect the construction hereof. Securities
          in a Foreign Currency
          or in ECU. Unless otherwise specified in an
          Officer’s Certificate delivered pursuant to Section 2.3 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 ECUs), 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. For purposes
          of this Section 11.11, 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 ECUs, Market Exchange Rate shall mean the rate of exchange
          determined by the Commission of the European Communities (or any successor
          thereto) as published in the Official Journal of the European Communities
          (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 ECUs, the rate of exchange
          as published in the Journal, as of the most recent available date,
          or quotations or, in the case of ECUs, 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, which for purposes of the ECU shall be
          Brussels, Belgium, or such other quotations or, in the case of ECU,
          rates of exchange as the Trustee 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 a currency
          other than Dollars in connection with any action taken by Holders of
          Securities pursuant to the terms of this Indenture including without
          limitation any determination contemplated in Section 5.1(7). 

 

45 

  

 

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 Issuer and all Holders.

   Section 11.12         Judgment
          Currency. The Issuer agrees, to the fullest
          extent that it may effectively do so under applicable law, that (1)
          if for the purpose of obtaining judgment in any court it is necessary
          to convert the sum due in respect of the principal of or interest on
          the Securities of any series (the “Required Currency”) into
          a currency in which a judgment will be rendered (the “Judgment
          Currency”), the rate of exchange used shall be the rate at which
          in accordance with normal banking procedures the Trustee could purchase
          in The City of New York the Required Currency with the Judgment Currency
          on the day on which final unappealable judgment is entered, unless
          such day is not a Business Day, then, to the extent permitted by applicable
          law, the rate of exchange used shall be the rate at which in accordance
          with normal banking procedures the Trustee could purchase in The City
          of New York the Required Currency with the Judgment Currency on the
          Business Day preceding the day on which final unappealable judgment
          is entered and (2) its obligations under this Indenture to make payments
          in the Required Currency (a) shall not be discharged or satisfied by
          any tender, or any recovery pursuant to any judgment (whether or not
          entered in accordance with subsection (1)), in any currency other than
          the Required Currency, except to the extent that such tender or recovery
          shall result in the actual receipt, by the payee, of the full amount
          of the Required Currency expressed to be payable in respect of such
          payments, (b) 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 (c) shall not be affected by judgment being obtained for any other
          sum due under this Indenture.  

     Section 11.13         Separability
          Clause. If any provision of this Indenture
          or of the Securities, or the application of any such provision to any
          Person or circumstance, shall be held to be invalid, illegal or unenforceable,
          the remainder of this Indenture or of the Securities, or the application
          of such provision to Persons or circumstances other than those as to
          whom or which it is invalid, illegal or unenforceable, shall not in
          any way be affected or impaired thereby. 

ARTICLE XII 

REDEMPTION OF SECURITIES AND SINKING FUNDS

Section 12.1         Applicability
      of Article. The provisions of this Article shall
      be applicable to the Securities of any series which are redeemable before
      their maturity or to any sinking fund for the retirement of Securities
      of a series except as otherwise specified as contemplated by Section 2.3
      for Securities of such series.

   Section 12.2         Notice
          of Redemption; Partial Redemptions. Notice
          of redemption to the Holders of Registered Securities of any series
          to be redeemed as a whole or in part at the option of the Issuer shall
          be given by mailing notice of such redemption by first class mail,
          postage prepaid, at least 30 days and not more than 60 days prior to
          the date fixed for redemption to such Holders of Securities of such
          series at their last addresses as they shall appear upon the registry
          books. Notice of redemption to the Holders of Unregistered Securities
          to be redeemed as a whole or in part, who have filed their names and
          addresses with the Trustee pursuant to Section 313(c)(2) of the Trust
          Indenture Act of 1939 shall be given at the Issuer’s
          expense by mailing notice of such redemption, by first class mail,
          postage prepaid, at least 30 days and not more than 60 prior to the
          date fixed for redemption, to such Holders at such addresses as were
          so furnished to the Trustee (and, in the case of any such notice given
          by the Issuer, the Trustee shall make such information available to
          the Issuer for such purpose). Notice of redemption to all other Holders
          of Unregistered Securities shall be published in an Authorized Newspaper
          in the Borough of Manhattan, The City of New York, and in an Authorized
          Newspaper in London (and, if required by Section 3.10, in an Authorized
          Newspaper in Luxembourg), in each case, once in each of three successive
          calendar weeks, the first publication to be not less than 30 nor more
          than 60 days prior to the date fixed for redemption. Any notice which
          is mailed in the manner herein provided shall be conclusively presumed
          to have been duly given, whether or not the Holder receives the notice.
          Failure to give notice by mail, or any defect in the notice to the
          Holder of any Security of a series designated for redemption as a whole
          or in part shall not affect the validity of the proceedings for the
          redemption of any other Security of such series. 

 

46 

  

 

The notice of redemption to each such Holder shall
  identify the securities to be redeemed (including CUSIP numbers), shall specify,
  the principal amount of each Security of such series held by such Holder to
  be redeemed, the date fixed for redemption, the redemption price, the place
  or places of payment, that payment will be made upon presentation and surrender
  of such Securities and, in the case of Securities with Coupons attached thereto,
  of all Coupons appertaining thereto maturing after the date fixed for redemption,
  that such redemption is pursuant to the mandatory or optional sinking fund,
  or both, if such be the case, that interest accrued to the date fixed for redemption
  will be paid as specified in such notice and that on and after said date interest
  thereon or on the portions thereof to be redeemed will cease to accrue. In
  case any Security of a series is to be redeemed in part only the notice of
  redemption shall state the portion of the principal amount thereof to be redeemed
  and shall state that on and after the date fixed for redemption, upon surrender
  of such Security, a new Security or Securities of such series in principal
  amount equal to the unredeemed portion thereof will be issued.

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

     On or before 10:00 a.m., New York City time, the redemption
        date specified in the notice of redemption given as provided in this
        Section, the Issuer will deposit with the Trustee or with one or more
        paying agents (or, if the Issuer is acting as its own paying agent, set
        aside, segregate and hold in trust as provided in Section 3.3) an amount
        of money sufficient to redeem on the redemption date all the Securities
        of such series so called for redemption at the appropriate redemption
        price, together with accrued interest to the date fixed for redemption.
        The Issuer will deliver to the Trustee at least 75 days prior to the
        date fixed for redemption an Officer’s Certificate stating the aggregate
        principal amount of Securities to be redeemed. In case of a redemption
        at the election of the Issuer prior to the expiration of any restriction
        on such redemption, the Issuer shall deliver to the Trustee, prior to
        the giving of any notice of redemption to Holders pursuant to this Section,
        an Officer’s Certificate stating that such restriction has been
        complied with.  

     If less than all the Securities of a series are to be redeemed,
        the Trustee shall select, in such manner as it shall deem appropriate
        and fair, Securities of such Series to be redeemed in whole or in part.
        Securities may be redeemed in part in multiples equal to the minimum
        authorized denomination for Securities of such series or any multiple
        thereof. The Trustee shall promptly notify the Issuer in writing of the
        Securities of such series selected for redemption and, in the case of
        any Securities of such series selected for partial redemption, the principal
        amount thereof to be redeemed. For all purposes of this Indenture, unless
        the context otherwise requires, all provisions relating to the redemption
        of Securities of any series shall relate, in the case of any Security
        redeemed or to be redeemed only in part, to the portion of the principal
        amount of such Security which has been or is to be redeemed. 

47 

  

 

Section 12.3         Payment
      of Securities Called for Redemption. If notice
      of redemption has been given as above provided, the Securities or portions
      of Securities specified in such notice shall become due and payable on
      the date and at the place stated in such notice at the applicable redemption
      price, together with interest accrued to the date fixed for redemption,
      and on and after said date (unless the Issuer shall default in
      the payment of such Securities at the redemption price, together with interest
      accrued to said date) interest on the Securities or portions of Securities
      so called for redemption shall cease to accrue, and the unmatured Coupons,
      if any, appertaining thereto shall be void, and, except as provided in
      Sections 3.3 and 6.5, such Securities shall cease from and after the date
      fixed for redemption to be entitled to any benefit or security under this
      Indenture, and the Holders thereof shall have no right in respect of such
      Securities except the right to receive the redemption price thereof and
      unpaid interest to the date fixed for redemption. On presentation and surrender
      of such Securities at a place of payment specified in said notice, together
      with all Coupons, if any, appertaining thereto maturing after the date
      fixed for redemption, said Securities or the specified portions thereof
      shall be paid and redeemed by the Issuer at the applicable redemption price,
      together with interest accrued thereon to the date fixed for redemption;
      provided that payment of interest becoming due on or prior to the date
      fixed for redemption shall be payable in the case of Securities with Coupons
      attached thereto, to the Holders of the Coupons for such interest upon
      surrender thereof, and in the case of Registered Securities, to the Holders
      of such Registered Securities registered as such on the relevant record
      date subject to the terms and provisions of Sections 2.3 and 2.7 hereof.

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

   If any Security with Coupons attached thereto is surrendered
      for redemption and is not accompanied by all appurtenant Coupons maturing
      after the date fixed for redemption, such Security may be redeemed after
      deducting from the redemption price any amount equal to the face amount
      of all such missing Coupons, or the surrender of such missing Coupon or
      Coupons may be waived by the Issuer and the Trustee if there be furnished
      to them such security or indemnity as they may require to save each of
      them and any paying agent harmless. If thereafter the Holder of such Security
      shall surrender to the Trustee or any paying agent any such missing Coupon
      in respect of which a deduction shall have been made from the redemption
      price, such Holder shall be entitled to receive the amount so deducted;
      provided, however, that interest represented by Coupons shall be payable
      as provided in Section 2.9 and, unless otherwise specified as contemplated
      by Section 2.3, only upon presentation and surrender of those Coupons.  

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

   Section 12.4         Exclusion
        of Certain Securities from Eligibility for Selection for Redemption.
        Securities shall be excluded from eligibility for selection for redemption
        if they are identified by registration and certificate number in an Officer’s
        Certificate delivered to the Trustee at least 40 days prior to the last
        date on which notice of redemption may be given as being owned of record
        and beneficially by, and not pledged or hypothecated by either (a) the
        Issuer or (b) an entity specifically identified in such written statement
        as directly or indirectly controlling or controlled by or under direct
        or indirect common control with the Issuer.  

   Section 12.5         Mandatory
        and Optional Sinking Funds. (1) The minimum amount
        of any sinking fund payment provided for by the terms of the Securities
        of any series is herein referred to as a “mandatory sinking fund
        payment”, and any payment in excess of such minimum amount provided
        for by the terms of the Securities of any series is herein referred to
        as an “optional sinking fund payment”. The date on which a
        sinking fund payment is to be made is herein referred to as the “sinking
        fund payment date”.  

   (2)         In
      lieu of making all or any part of any mandatory sinking fund payment with
      respect to any series of Securities in cash, the Issuer may at its option
      (a) deliver to the Trustee Securities of such series theretofore purchased
      or otherwise acquired (except upon redemption pursuant to the mandatory
      sinking fund) by the Issuer or receive credit for Securities of such series
      (not previously so credited) theretofore purchased or otherwise
      acquired (except as aforesaid) by the Issuer and delivered to the Trustee
      for cancellation pursuant to Section 2.10, (b) receive credit for optional
      sinking fund payments (not previously so credited) made pursuant to this
      Section, or (c) receive credit for Securities of such series (not previously
      so credited) redeemed by the Issuer through any optional redemption provision
      contained in the terms of such series. Securities so delivered or credited
      shall be received or credited by the Trustee at the sinking fund redemption
      price specified in such Securities. 

48 

  

 

(3)         On
    or before the 60th day next preceding each sinking fund payment date for
    any series, the Issuer will deliver to the Trustee an Officer’s Certificate
    (which need not contain the statements required by Section 11.5) (a) specifying
    the portion of the mandatory sinking fund payment to be satisfied by payment
    of cash and the portion to be satisfied by credit of Securities of such series
    and the basis for such credit, (b) stating that none of the Securities of
    such series has theretofore been so credited, (c) stating that no defaults
    in the payment of interest or Events of Default with respect to such series
    have occurred (which have not been waived or cured) and are continuing and
    (d) stating whether or not the Issuer intends to exercise its right to make
    an optional sinking fund payment with respect to such series and, if so,
    specifying the amount of such optional sinking fund payment which the Issuer
    intends to pay on or before the next succeeding sinking fund payment date.
    Any Securities of such series to be credited and required to be delivered
    to the Trustee in order for the Issuer to be entitled to credit therefor
    as aforesaid which have not theretofore been delivered to the Trustee shall
    be delivered for cancellation pursuant to Section 2.10 to the Trustee with
    such Officer’s Certificate (or reasonably promptly thereafter if acceptable
    to the Trustee). Such Officer’s Certificate shall be irrevocable and
    upon its receipt by the Trustee the Issuer shall become unconditionally obligated
    to make all the cash payments or payments therein referred to, if any, on
    or before the next succeeding sinking fund payment date. Failure of the Issuer,
    on or before any such 60th day, to deliver such Officer’s Certificate
    and Securities specified in this paragraph, if any, shall not constitute
    a default but shall constitute, on and as of such date, the irrevocable election
    of the Issuer (i) that the mandatory sinking fund payment for such series
    due on the next succeeding sinking fund payment date shall be paid entirely
    in cash without the option to deliver or credit Securities of such series
    in respect thereof and (ii) that the Issuer will make no optional sinking
    fund payment with respect to such series as provided in this Section.

   (4)         If
        the sinking fund payment or payments (mandatory or optional or both)
        to be made in cash on the next succeeding sinking fund payment date plus
        any unused balance of any preceding sinking fund payments made in cash
        shall exceed $50,000 (or the equivalent thereof in any Foreign Currency
        or ECU) or a lesser sum in Dollars (or the equivalent thereof in any
        Foreign Currency or ECU) if the Issuer shall so request with respect
        to the Securities of any particular series, such cash shall be applied
        on the next succeeding sinking fund payment date to the redemption of
        Securities of such series at the sinking fund redemption price together
        with accrued interest to the date fixed for redemption. If such amount
        shall be $50,000 (or the equivalent thereof in any Foreign Currency or
        ECU) or less and the Issuer makes no such request then it shall be carried
        over until a sum in excess of $50,000 (or the equivalent thereof in any
        Foreign Currency or ECU) is available. The Trustee shall select, in the
        manner provided in Section 12.2, for redemption on such sinking fund
        payment date a sufficient principal amount of Securities of such series
        to absorb said cash, as nearly as may be, and shall (if requested in
        writing by the Issuer) inform the Issuer of the serial numbers of the
        Securities of such series (or portions thereof) so selected. Securities
        shall be excluded from eligibility for redemption under this Section
        if they are identified by registration and certificate number in an Officer’s
        Certificate delivered to the Trustee at least 60 days prior to the sinking
        fund payment date as being owned of record and beneficially by, and not
        pledged or hypothecated by either (a) the Issuer or (b) an entity specifically
        identified in such Officer’s Certificate as directly or indirectly
        controlling or controlled by or under direct or indirect common control
        with the Issuer. The Trustee, in the name and at the expense of the Issuer
        (or the Issuer, if it shall so request the Trustee in writing) shall
        cause notice of redemption of the Securities of such series to be given
        in substantially the manner provided in Section 12.2 (and with the effect
        provided in Section 12.3) for the redemption of Securities of such series
        in part at the option of the Issuer. The amount of any sinking fund payments
        not so applied or allocated to the redemption of Securities of such series
        shall be added to the next cash sinking fund payment for such series
        and, together with such payment, shall be applied in accordance with
        the provisions of this Section. Any and all sinking fund moneys held
        on the stated maturity date of the Securities of any particular series
        (or earlier, if such maturity is accelerated), which are not held for
        the payment or redemption of particular
        Securities of such series shall be applied, together with
        other moneys, if necessary, sufficient for the purpose, to the payment
        of the principal of, and interest on, the Securities of such series at
maturity.  

49 

   

 

(5)         On
    or before each sinking fund payment date, the Issuer shall pay to the Trustee
    in cash or shall otherwise provide for the payment of all interest accrued
    to the date fixed for redemption on Securities to be redeemed on the next
    following sinking fund payment date.

  (6)         The
        Trustee shall not redeem or cause to be redeemed any Securities of a
        series with sinking fund moneys or give any notice of redemption of Securities
        for such series by operation of the sinking fund during the continuance
        of a default in payment of interest on such Securities or of any Event
        of Default except that, where the giving of notice of redemption of any
        Securities shall theretofore have been made, the Trustee shall redeem
        or cause to be redeemed such Securities, provided that it shall have
        received from the Issuer a sum sufficient for such redemption. Except
        as aforesaid, any moneys in the sinking fund for such series at the time
        when any such default or Event of Default shall occur, and any moneys
        thereafter paid into the sinking fund, shall, during the continuance
        of such default or Event of Default, be deemed to have been collected
        under Article V and held for the payment of all such Securities. In case
        such Event of Default shall have been waived as provided in Section 5.10
        or the default cured on or before the sixtieth day preceding the sinking
        fund payment date in any year, such moneys shall thereafter be applied
        on the next succeeding sinking fund payment date in accordance with this
        Section to the redemption of such Securities. 

50 

   

     

IN WITNESS WHEREOF, the parties hereto
    have caused this Indenture to be duly executed as of July 15, 2004.  

 

  	ENDURANCE SPECIALTY HOLDINGS LTD.
	 
	By: /s/ John V. Del Col
	

      
	   Name: John V. Del Col
	   Title: General Counsel and Secretary
	 
	 
	THE BANK OF NEW YORK,
	as Trustee
	 
	By: /s/ Stacey B. Poindexter
	

      
	   Name: /s/ Stacey B. Poindexter
	   Title: Assistant Vice PresidentPrepared and filed by St Ives Burrups

EXHIBIT 4.2

ENDURANCE SPECIALTY HOLDINGS LTD.

AND

THE BANK OF NEW YORK

TRUSTEE

FIRST SUPPLEMENTAL INDENTURE

Dated as of July 15, 2004

$250,000,000

7% Senior Notes

Due 2034

TABLE OF CONTENTS

	             Page

	ARTICLE I 7% SENIOR NOTES DUE 2034	 	1	 
	 	 	 	 	 
	 	 	 	 	 
	Section 1.01      	Establishment	 	1	 
	 	 	 	 	 
	Section 1.02      	Definitions	 	2	 
	 	 	 	 	 
	Section 1.03      	Payment of Principal and Interest	 	2	 
	 	 	 	 	 
	Section 1.04      	Denominations	 	3	 
	 	 	 	 	 
	Section 1.05      	Global Securities	 	3	 
	 	 	 	 	 
	Section 1.06      	Transfer	 	3	 
	 	 	 	 	 
	Section 1.07      	Defeasance	 	3	 
	 	 	 	 	 
	Section 1.08      	Redemption at the Option of the Company	 	3	 
	 	 	 	 	 
	Section 1.09      	Payment of Additional Amounts	 	5	 
	 	 	 	 	 
	Section 1.10      	Redemption for Tax Purposes	 	6	 
	 	 	 	 	 
	 	 	 	 	 
	ARTICLE II   Miscellaneous Provisions	 	6	 
	 	 	 	 	 
	 	 	 	 	 
	Section 2.01      	Recitals by the Company	 	6	 
	 	 	 	 	 
	Section 2.02      	Ratification and Incorporation of Original Indenture	 	6	 
	 	 	 	 	 
	Section 2.03      	Executed in Counterparts	 	6	 
	 	 	 	 	 
	Section 2.04      	New York Law to Govern	 	6	 
	 	 	 	 	 
	 	 	 	 	 
	Exhibit A         	Form of Global Note                                                                   	 	A-1	 
	Exhibit B         	Form of Certificate of Authentication                                                 	 	B-1	 

THIS
    FIRST SUPPLEMENTAL INDENTURE is made as of the 15th day of July,
    2004, by and between ENDURANCE SPECIALTY HOLDINGS LTD., an exempted company
incorporated in Bermuda as a holding company (the “Company”), and THE BANK OF NEW YORK, a New York banking corporation, as trustee (the “Trustee”):

WHEREAS, the Company has heretofore entered into a Senior Indenture, dated as of July 15, 2004 (the “Original Indenture”),
with the Trustee;

WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as supplemented by this First Supplemental Indenture, is herein called the “Indenture”;

WHEREAS,
    under the Original Indenture, a new series of senior notes may at any time
    be established by the Board of Directors of the Company in accordance with
    the provisions of the Original Indenture and the terms of such series may
    be described by a supplemental indenture executed by the Company and the
Trustee;

WHEREAS,
    the Company proposes to create under the Indenture a new series of senior
notes;

WHEREAS,
    additional senior notes of other series hereafter established, except as
    may be limited in the Original Indenture as at the time supplemented and
    modified, may be issued from time to time pursuant to the Indenture as at
    the time supplemented and modified, and all senior notes issued by the Company
    of any one series need not be issued at the same time and, unless otherwise
    so provided, may be reopened for issuances of additional senior notes of
such series; and

WHEREAS,
    all things necessary to authorize the execution and delivery of this First
    Supplemental Indenture and make it a valid and binding agreement of the Company,
in accordance with its terms, have been done.

NOW
    THEREFORE, in consideration of the agreements and obligations set forth herein
    and for other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:

	
ARTICLE I     

7% SENIOR NOTES DUE 2034

Section 1.01      Establishment.
    There is hereby established a new series of senior notes to be issued under
the Indenture, to be designated as the Company’s 7% Senior Notes due 2034 (the “Senior Notes”).

There
    are to be authenticated and delivered Senior Notes, initially limited in
    aggregate principal amount of $250,000,000 and no further Senior Notes shall
    be authenticated and delivered except as provided by Section 2.8, 2.9, 2.11,
    8.5 or 12.3 of the Original Indenture and the terms of this First Supplemental
    Indenture; provided, however, that the aggregate principal amount of the
    Senior Notes may be increased in the future, without the consent of the holders
of the Senior Notes, on the same terms and with the same CUSIP and ISI Nnumbers
    as the Senior Notes. The Senior Notes shall be issued in fully registered
form.

The
    Senior Notes shall be issued in the form of one or more Global Securities
    (as defined below) in substantially the form set out in Exhibit A hereto.
    The Depositary with respect to the Senior Notes shall be The Depository Trust
Company.

The form of the Trustee’s
    Certificate of Authentication for the Senior Notes shall be substantially
in the form set forth in Exhibit B hereto.

Each
    Senior Note shall be dated the date of authentication thereof and shall bear
    interest from the date of original issuance thereof or from the most recent
Interest Payment Date to which interest has been paid or duly provided for.

 

1

Section 1.02      Definitions.  The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture.

“Global Security” means,
    with respect to any series of securities, a security authenticated and delivered
    under the Original Indenture executed by the Company and delivered by the
    Trustee to the Depositary or pursuant to the Depositary's instruction, all
    in accordance with the Original Indenture, which shall be registered in the
name of the Depositary or its nominee.

“Interest Payment Date” means
January 15 and July 15 of each year, commencing January 15, 2005.

“Original Issue Date” means
July 15, 2004.

“Regular Record Date” means,
    with respect to each Interest Payment Date, the close of business on the
preceding January 1 or July 1, as the case may be.

“Stated Maturity” means
July 15, 2034.

“Underwriters” means
    J.P. Morgan Securities Inc., Barclays Capital Inc., Banc of America Securities
    LLC, BNY Capital Markets, Inc., Deutsche Bank Securities Inc., ING Financial
    Markets LLC, Wachovia Capital Markets, LLC, Comerica Securities Inc. and
Calyon Securities (USA) Inc.

“Underwriting Agreement” means
    the Underwriting Agreement, dated as of July 8, 2004, between the Company
    and J.P. Morgan Securities Inc. and Barclays Capital Inc., as representatives
of the Underwriters.

Section 1.03      Payment of Principal and Interest.  The principal of the Senior Notes shall be due at Stated Maturity.  The unpaid principal amount of the Senior Notes shall bear interest at the rate of 7% per year until paid or duly provided for, such interest to accrue from July 15, 2004 or from the most recent Interest Payment Date to which interest has been paid or duly provided for.  Interest shall be paid semi-annually in arrears on each Interest Payment Date, commencing January 15, 2005, to the Person in whose name the Senior Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity of principal or on a Redemption Date
as provided herein will be paid to the Person to whom principal is payable.  Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the holders on such Regular Record Date and may be paid as provided in Section 2.7 of the Original Indenture.

Payments
    of interest on the Senior Notes will include interest accrued to but excluding
    the respective Interest Payment Dates. Interest payments for the Senior Notes
    shall be computed and paid on the basis of a 360-day year consisting of twelve
    30-day months. In the event that any date on which interest is payable on
    the Senior Notes is not a Business Day, then payment of the interest payable
    on such date will be made on the next succeeding day that is a Business Day
    (and without any interest or other payment in respect of any such delay),
    except that, if such Business Day is in the next succeeding calendar year,
    such payment shall be made on the immediately preceding Business Day, in
    each case with the same force and effect as if made on the date the payment
was originally payable.

Payment
    of the principal, premium, if any, and interest due at the Stated Maturity
    of, or on a Redemption Date for, the Senior Notes shall be made upon surrender
    of the Senior Notes at the Corporate Trust Office of the Trustee. The principal
    of and interest on the Senior Notes shall be paid in such coin or currency
    of the United States of America as at the time of payment is legal tender
    for payment of public and private debts. Payments of interest (including
    interest on any Interest Payment Date) will be made, subject to such surrender
    where applicable, at the option of the Company, (i) by check mailed to the
    address of the Person entitled thereto as such address shall appear in the
    Security register or (ii) by wire transfer at such place and to such account
    at a banking institution in the United States as may be designated in writing
    to the Trustee at least 15 days prior to the date for payment by the Person
entitled thereto.

 

2

Section 1.04      Denominations.  The Senior Notes may be issued in denominations of $1,000, or whole multiples of $1,000 in excess of $2,000.

Section 1.05      Global Securities.  The Senior Notes will initially be issued in the form of one or more Global Securities registered in the name of the Depositary (which initially shall be The Depository Trust Company) or its nominee.  Except under the limited circumstances described below, Senior Notes represented by Global Securities will not be exchangeable for, and will not otherwise be issuable as, Senior Notes in definitive form.  The Global Securities described above may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.

Owners
    of beneficial interests in such Global Securities will not be considered
    the holders thereof for any purpose under the Indenture, and no Global Security
    representing a Senior Note shall be exchangeable, except for another Global
    Security of like denomination and tenor to be registered in the name of the
    Depositary or its nominee or to a successor Depositary or its nominee. The
    rights of holders of such Global Securities shall be exercised only through
the Depositary.

A
    Global Security shall be exchangeable for Senior Notes registered in the
    names of Persons other than the Depositary or its nominee only as provided
    by Section 2.8 (5) of the Original Indenture. Any Global Security that is
    exchangeable pursuant to the preceding sentence shall be exchangeable for
Senior Notes registered in such names as the Depositary shall direct.

Section 1.06      Transfer.  No service charge will be made for any registration of transfer or exchange of Senior Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.

Section 1.07      Defeasance.  The provisions of Sections 10.4 and 10.5 of the Original Indenture will apply to the Senior Notes.

Section 1.08      Redemption at the Option of the Company.
    The Senior Notes will be redeemable, at the option of the Company, in whole
    at any time or in part from time to time (a “Redemption Date”), at a redemption price (the “Redemption Price”)
    equal to the greater of (i) 100% of the aggregate principal amount of the
    Senior Notes to be redeemed and (ii) an amount equal to the sum of the present
    values of the remaining scheduled payments for principal and interest on
    the Senior Notes to be redeemed, not including any portion of the payments
    of interest accrued as of such Redemption Date, discounted to such Redemption
    Date on a semi-annual basis (assuming a 360-day year consisting of twelve
    30-day months) at the Treasury Rate, plus 30 basis points; plus in each case,
    accrued and unpaid interest on the Senior Notes to be redeemed to, but excluding,
such Redemption Date.

“Treasury Rate” means (1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for
    the maturity corresponding to the Comparable Treasury Issue (if no maturity
    is within three months before or after the remaining life, yields for the
    two published maturities most closely corresponding to the Comparable Treasury
    Issue will be determined and the Treasury Rate will be interpolated or extrapolated
    from such yields on a straight line basis, rounding to the nearest month),
    or (2) if such release (or any successor release) is not published during
    the week preceding the calculation date or does not contain such yields,
    the rate per year equal to the semi-annual equivalent yield to maturity of
    the Comparable Treasury Issue, calculated using a price for the Comparable
    Treasury Issue (expressed as a percentage of its principal amount) equal
    to the Comparable Treasury Price for such Redemption Date. The Treasury Rate
shall be calculated on the third business day preceding the Redemption Date.

 

3

“Comparable Treasury Issue” means
    the United States Treasury security selected by the Independent Investment
    Banker as having a maturity comparable to the remaining term of the Senior
    Notes to be redeemed that would be utilized, at the time of selection and
    in accordance with customary financial practice, in pricing new issues of
    corporate debt securities of comparable maturity to the remaining term of
the Senior Notes.

“Independent Investment Banker” means
    either J.P. Morgan Securities Inc. and its successors or Barclays Capital
    Inc. and its successors or, if either of such firms is unwilling or unable
    to select the Comparable Treasury Issue, an independent investment banking
    institution of national standing appointed by the Trustee after consultation
with the Company.

“Comparable Treasury Price” means
    with respect to any Redemption Date for the Senior Notes (1) the average
    of five Reference Treasury Dealer Quotations for such Redemption Date, after
    excluding the highest and lowest of such Reference Treasury Dealer Quotations,
    or (2) if the Trustee obtains fewer than five such Reference Treasury Dealer
Quotations, the average of all such quotations.

“Reference Treasury Dealer” means each of J.P. Morgan Securities Inc. and Barclays Capital Inc. and their respective successors and three other primary U.S. government securities dealers (each a “Primary Treasury Dealer”),
    as specified by the Company; provided that (1) if any of J.P. Morgan Securities
    Inc. and Barclays Capital Inc. and their respective successors or any Primary
    Treasury Dealer as specified by the Company shall cease to be a Primary Treasury
    Dealer, the Company will substitute therefor another Primary Treasury Dealer
    and (2) if the Company fails to select a substitute within a reasonable period
    of time, then the substitute will be a Primary Treasury Dealer selected by
    the Trustee
after consultation with the Company.

“Reference Treasury Dealer Quotations” means,
    with respect to the Reference Treasury Dealer and any Redemption Date, the
    average, as determined by the Independent Investment Banker, of the bid and
    asked prices for the Comparable Treasury Issue (expressed, in each case,
    as a percentage of its principal amount) quoted in writing to the Independent
    Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.

Notwithstanding
    Section 12.2 of the Original Indenture, the notice of redemption with respect
    to the foregoing redemption need not set forth the Redemption Price but only
the manner of calculation thereof.

The
    Company shall notify the Trustee of the Redemption Price with respect to
    the foregoing redemption promptly after the calculation thereof. The Trustee
shall not be responsible for calculating said Redemption Price.

If
    less than all of the Senior Notes are to be redeemed, the Trustee shall select,
    in such manner as it shall deem appropriate and fair, the principal amount
    of such Senior Notes held by each beneficial owner of such Senior Notes to
    be redeemed. The Trustee may select notes and portions of notes in amounts
    of $1,000 and whole multiples of $1,000 in excess of $2,000. The Trustee
    shall promptly notify the Company in writing of the Senior Notes selected
    for redemption and, in the case of any Senior Notes selected for partial
redemption, the principal amount thereof to be redeemed.

 

4

Section 1.09      Payment of Additional Amounts.
    The Company will make all payments of principal of and premium, if any, interest
    and any other amounts on, or in respect of, the Senior Notes without withholding
    or deduction at source for, or on account of, any present or future taxes,
    fees, duties, assessments or governmental charges of whatever nature imposed
    or levied by or on behalf of Bermuda or any other jurisdiction in which the
    Company is organized (a “taxing jurisdiction”) or any political
    subdivision or taxing authority thereof or therein, unless such taxes, fees,
    duties, assessments or governmental charges are required to be withheld or
    deducted by (x) the laws (or any regulations or rulings promulgated thereunder)
    of a taxing jurisdiction or any political subdivision or taxing authority
    thereof or therein or (y) an official position regarding the application,
    administration, interpretation or enforcement of any such laws, regulations
    or rulings (including, without limitation, a holding by a court of competent
    jurisdiction or by a taxing authority in a taxing jurisdiction or any political
    subdivision thereof). If a withholding or deduction at source is required,
    the Company will, subject to certain limitations and exceptions described
    below, pay to the holder of any Senior Note such additional amounts as may
    be necessary so that every net payment of principal, premium, if any, interest
    or any other amount made to such holder, after the withholding or deduction,
will not be less than the amount provided for in such Senior Note or in the Indenture
to be then due and payable.

The
    Company will not be required to pay any additional amounts for or on account
of:

(1)     any
tax, fee, duty, assessment or governmental charge of whatever nature which would
not have been imposed but for the fact that such holder (a) was a resident, domiciliary
or national of, or engaged in business or maintained a permanent establishment
or was physically present in, the relevant taxing jurisdiction or any political
subdivision thereof or otherwise had some connection with the relevant taxing
jurisdiction other than by reason of the mere ownership of, or receipt of payment
under, such note, (b) presented, where presentation is required, such Senior
Note for payment in the relevant taxing jurisdiction or any political subdivision
thereof, unless such Senior Note could not have been presented for payment elsewhere,
or (c) presented, where presentation is required, such Senior Note for payment
more than 30 days after the date on which the payment in respect of such Senior
Note became due and payable or provided for, whichever is later, except to the
extent that the holder would have been entitled to such additional amounts if
it had presented such Senior Note for payment on any day within that 30-day period;

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

(3)     any
tax, assessment or other governmental charge that is imposed or withheld by reason
of the failure by the holder of such Senior Note to comply with any reasonable
request by the Company addressed to the holder within 90 days of such request
(a) to provide information concerning the nationality, residence or identity
of the holder or (b) to make any declaration or other similar claim or satisfy
any information or reporting requirement, which is required or imposed by statute,
treaty, regulation or administrative practice of the relevant taxing jurisdiction
or any political subdivision thereof as a precondition to exemption from all
or part of such tax, assessment or
other governmental charge;

(4)     any
withholding or deduction required to be made pursuant to any EU Directive on
the taxation of savings implementing the conclusions of the ECOFIN Council meetings
of November 26-27, 2000, June 3, 2003 or any law implementing or complying with,
or introduced in order to conform to, such EU Directive; or

(5)     any
combination of items (1), (2), (3) and (4).

In
    addition, the Company will not pay additional amounts with respect to any
    payment of principal of, or premium, if any, interest or any other amounts
    on, any such Senior Note to any holder who is a fiduciary or partnership
    or other than the sole beneficial owner of such Senior Note if such payment
    would be required by the laws of the relevant taxing jurisdiction (or any
    political subdivision or relevant taxing authority thereof or therein) to
    be included in the income for tax purposes of a beneficiary or partner or
    settlor with respect to such fiduciary or a member of such partnership or
    a beneficial owner to the extent such beneficiary, partner or settlor would
    not have been entitled to such additional amounts had it been the holder
of the Senior Note.

 

5

Section 1.10      Redemption for Tax Purposes.  The Company may redeem the Senior Notes at its option, in whole but not in part, at a redemption price equal to 100% of the principal amount, together with accrued and unpaid interest and additional amounts, if any, to the Redemption Date, at any time the Company receives an opinion of counsel that as a result of (1) any change in or amendment to the laws or treaties (or any regulations or rulings promulgated under these laws or treaties) of Bermuda or any taxing jurisdiction (or of any political subdivision or taxation authority affecting taxation) or any change in the application or official interpretation of such laws, regulations or rulings, or (2)
any action taken by a taxing authority of Bermuda or any taxing jurisdiction (or any political subdivision or taxing authority affecting taxation) which action is generally applied or is taken with respect to the Company, or (3) a decision rendered by a court of competent jurisdiction in Bermuda or any taxing jurisdiction (or any political subdivision) whether or not such decision was rendered with respect to the Company, there is a substantial probability that the Company will be required as of the next Interest Payment Date to pay additional amounts with respect to the notes as provided in Section 1.09 herein and such requirements cannot be avoided by the use of reasonable measures (consistent with practices and interpretations generally followed or in effect at the time such measures
could be taken) then available.  If the Company elects to redeem the Senior Notes under this provision, the Company will give written notice of such election to the Trustee and the holders of the Senior Notes. Interest on the Senior Notes will cease to accrue unless the Company defaults in the payment of the redemption price set forth in this Section 1.09.

	
ARTICLE II     

MISCELLANEOUS PROVISIONS

Section 2.01      Recitals by the Company.  The recitals in this First Supplemental Indenture are made by the Company only and not by the Trustee, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture or of the Senior Notes.  The Trustee shall not be accountable for the use or application by the Company of the Senior Notes or the proceeds thereof.  All of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of the Senior Notes and of this First Supplemental Indenture as
fully and with like effect as if set forth herein in full.

Section 2.02      Ratification and Incorporation of Original Indenture.  As supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture and this First Supplemental Indenture shall be read, taken and construed as one and the same instrument.

Section 2.03      Executed in Counterparts.  This First Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

Section 2.04      New York Law to Govern.  This First Supplemental Indenture and each Senior Note shall be deemed to be a contract under the laws of the state of New York, and for all purposes shall be construed in accordance with the laws of such state, except as may be required by mandatory provisions of law.

6

     IN
    WITNESS WHEREOF, each party hereto has caused this instrument to be signed
    in its name and behalf by its duly authorized officers, all as of the day
and year first above written.

	 	ENDURANCE SPECIALTY HOLDINGS,
    LTD.
	 	as Issuer
	 	 
	 	By: /s/ John V. Del Col
		

	 	Name: John V. Del Col
	 	Title: General Counsel and Secretary
	 	 
	 	THE BANK OF NEW YORK.
	 	as Trustee
	 	 
	 	By: /s/ Stacey B. Poindexter
		

	 	Name: Stacey B. Poindexter
	 	Title: Assistant Vice President
	 	 

7

EXHIBIT A

Form of 7% Senior Note due July 15, 2034

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE FIRST SUPPLEMENTAL INDENTURE TO THE ORIGINAL INDENTURE HEREINAFTER REFERRED TO.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO ENDURANCE SPECIALTY HOLDINGS LTD. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

UNLESS
    AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE
    FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY
    TO THE NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
    DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

A-1

	No. ____	 
	 	CUSIP No. 29267HAA7
	 	ISIN
No. US29267HAA77

    

    

ENDURANCE SPECIALTY HOLDINGS LTD.

  7% Senior Notes

Due July 15, 2034

	Principal Amount:   	
$250,000,000
	 	 
	Regular Record Date:   	
 with respect to each Interest Payment Date, the close of business on the preceding January 1 or July 1, as the case may be
	 	 
	Original Issue
    Date:	July 15,
2004
	 	 
	Stated Maturity:	July
15, 2034
	 	 
	Interest Payment Dates:	January 15 and July 15 commencing January 15, 2005
	 	 
	Interest Rate:	7% per year
	 	 
	Authorized Denomination:	$1,000

Endurance Specialty Holdings Ltd., an exempted company incorporated in Bermuda as a holding company (the “Company,” which
    term includes any successor corporation under the Indenture referred to on
    the reverse hereof), for value received, hereby promises to pay to _________,
    or registered assigns, the principal sum of ($_________) on the Stated Maturity
    shown above, and to pay interest thereon from the Original Issue Date shown
    above, or from the most recent Interest Payment Date to which interest has
    been paid or duly provided for, semi-annually in arrears on each Interest
    Payment Date as specified above, commencing on January 15, 2005, and on the
    Stated Maturity at the rate per year shown above until the principal hereof
    is paid or made available for payment and on any overdue principal and on
    any overdue installment of interest to the extent permitted by law. As provided
    in the Indenture, the Company under certain circumstances would be required
    to pay Additional Amounts to the Holders of the Senior Notes. The interest
    so payable, and punctually paid or duly provided for, on any Interest Payment
    Date (other than an Interest Payment Date that is the Stated Maturity) will,
    as provided in the Indenture, be paid to the Person in whose name this Note
    is registered at the close of business on the Regular Record Date as specified
    above next preceding such Interest Payment Date, provided that any interest
    payable at Stated Maturity will be paid to the Person to whom principal is
    payable.
Except as otherwise provided in the Indenture, any such interest that is not
    so punctually paid or duly provided for will forthwith cease to be payable
    to the holders on such Regular Record Date and may be paid as provided in
Section 2.7 of the Original Indenture.

Payments
    of interest on this Note will include interest accrued to but excluding the
    respective Interest Payment Dates. Interest payments for this Note shall
    be computed and paid on the basis of a 360-day year consisting of twelve
    30-day months. In the event that any date on which interest is payable on
    this Note is not a Business Day, then payment of the interest payable on
    such date will be made on the next succeeding day that is a Business Day
    (and without any interest or other payment in respect of any such delay),
    except that, if such Business Day is in the next succeeding calendar year,
    payment shall be made on the immediately preceding Business Day, in each
    case with the same force and effect as if made on the date the payment was
originally payable.

Payment
    of the principal of and interest due at the Stated Maturity of this Note
    shall be made upon surrender of this Note at the Corporate Trust Office of
    the Trustee. The principal of and interest on this Note shall be paid in
    such coin or currency of the United States of America as at the time of payment
    is legal tender for payment of public and private debts. Payment of interest
    (including interest on an Interest Payment Date) will be made, subject to
    such surrender where applicable, at the option of the Company, (i) by check
    mailed to the address of the Person entitled thereto as such address shall
    appear in the Security register or (ii) by wire transfer at such place and
    to such account at a banking institution in the United States as may be designated
    in writing to the Trustee at least 15 days prior to the date for payment
by the Person entitled thereto.

A-2

The
    Senior Notes (as defined on the reverse hereof) will be unsecured obligations
    of the Company and will rank equally in right of payment with all the other
    unsecured, unsubordinated indebtedness of the Company from time to time outstanding.
    The Senior Notes will rank senior to any subordinated indebtedness of the
Company.

REFERENCE
    IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
    HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT
AS IF SET FORTH AT THIS PLACE.

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

A-3

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	ENDURANCE SPECIALTY HOLDINGS LTD.
	 	as Issuer
	 	 
	 	By:                                                                                 
	 	Name:
	 	Title:

Attest:

  

  _____________________

  Name:

Title

A-4

(Reverse Side of Note)

This Note is one of a duly authorized issue of senior notes of the Company issued and issuable in one or more series under a Senior Indenture dated as of July 15, 2004 (the “Original Indenture”), as supplemented by the First Supplemental Indenture, dated as of July 15, 2004 (the “First Supplemental Indenture,” and together with the Original Indenture, the “Indenture”), between the Company and The Bank of New York, as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the holders of the Senior Notes issued thereunder and of the terms upon which said Senior Notes are, and are to be, authenticated and delivered.  This Senior Note is one of the series designated on the face hereof as 7% Senior Notes due July 15, 2034 (the “Senior Notes”),
initially limited in aggregate principal amount of $250,000,000; provided, however,
that the aggregate principal amount of the Senior Notes may be increased in the
future, without the consent of the holders of the Senior Notes, on the same terms
and with the same CUSIP and ISIN numbers as the Senior Notes. Capitalized terms
used herein for which no definition is provided herein shall have the meanings
set forth in the Indenture.

This
    Note is exchangeable in whole or from time to time in part for Senior Notes
    of this series in definitive registered form only as provided herein and
    in the Indenture. If (i) at any time the Depositary notifies the Company
    that it is unwilling, unable or ineligible to continue as Depositary for
    this Note, and the Company does not appoint a successor Depositary within
    60 days after the Company receives such notice or becomes aware of such condition,
    as the case may be, (ii) an event of default under the Indenture with respect
    to the Senior Notes has occurred and is continuing, or (iii) the Company
    in its sole discretion determines that this Note shall be exchangeable for
    Senior Notes of this series in definitive registered form and executes and
    delivers to the Security registrar a written order of the Company providing
    that this Note shall be so exchangeable, this Note shall be exchangeable
    for Senior Notes of this series in definitive registered form, provided that
    the definitive Senior Notes so issued in exchange for this Note shall be
    in denominations of $1,000 and whole multiples of $1,000 in excess of $2,000,
    without coupons, and be of like aggregate principal amount and tenor as the
    portion of this Note to be exchanged. Except as provided above, owners of
    beneficial interests in this Note will not be entitled to have Senior Notes
    registered in their names, will not receive or be entitled to physical delivery
    of Senior Notes in definitive registered form and will not be considered
    the
holders thereof for any purpose under the Indenture.  Neither the Company, the
    Trustee, any Paying Agent nor the Security registrar shall have any responsibility
    or liability for any aspect of records relating to or payments made on account
    of beneficial ownership interests in this Note, or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interests.

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

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

The
    Indenture contains provisions for defeasance at any time of (a) the entire
    indebtedness of the Company pursuant to this Note and (b) restrictive covenants
    and the related Events of Default, upon compliance by the Company with certain
conditions set forth therein, which provisions apply to this Note.

A-5

The Senior Notes will be redeemable, at the option of the Company, in whole at any time or in part from time to time (a “Redemption Date”), at a redemption price (the “Redemption Price”)
    equal to the greater of (i) 100% of the principal amount of the Senior Notes
    to be redeemed and (ii) an amount equal to the sum of the present values
    of the remaining scheduled payments for principal of and interest on the
    Senior Notes to be redeemed, not including any portion of the payments of
    interest accrued as of such Redemption Date, discounted to such Redemption
    Date on a semi-annual basis (assuming a 360-day year consisting of twelve
    30-day months) at the Treasury Rate, plus 30 basis points; plus in each case,
    accrued and unpaid interest on the Senior Notes to be redeemed to, but excluding,
such Redemption Date.

“Treasury Rate” means (1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for
    the maturity corresponding to the Comparable Treasury Issue (if no maturity
    is within three months before or after the remaining life, yields for the
    two published maturities most closely corresponding to the Comparable Treasury
    Issue will be determined and the Treasury Rate will be interpolated or extrapolated
    from such yields on a straight line basis, rounding to the nearest month),
    or (2) if such release (or any successor release) is not published during
    the week preceding the calculation date or does not contain such yields,
    the rate per year equal to the semi-annual equivalent yield to maturity of
    the Comparable Treasury Issue, calculated using a price for the Comparable
    Treasury Issue (expressed as a percentage of its principal amount) equal
    to the Comparable Treasury Price for such Redemption Date. The Treasury Rate
shall be calculated on the third business day preceding the Redemption Date.

“Comparable Treasury Issue” means
    the United States Treasury security selected by the Independent Investment
    Banker as having a maturity comparable to the remaining term of the Senior
    Notes to be redeemed that would be utilized, at the time of selection and
    in accordance with customary financial practice, in pricing new issues of
    corporate debt securities of comparable maturity to the remaining term of
the Senior Notes.

“Independent Investment Banker” means
    J.P. Morgan Securities Inc. and its successors or Barclays Capital Inc. and
    its successors or, if either of such firms is unwilling or unable to select
    the Comparable Treasury Issue, an independent investment banking institution
    of national standing appointed by the Trustee after consultation with the
Company.

“Comparable Treasury Price” means
    with respect to any Redemption Date for the Senior Notes (1) the average
    of five Reference Treasury Dealer Quotations for such Redemption Date, after
    excluding the highest and lowest of such Reference Treasury Dealer Quotations,
    or (2) if the Trustee obtains fewer than five such Reference Treasury Dealer
Quotations, the average of all such quotations.

“Reference Treasury Dealer” means J.P. Morgan Securities Inc. and Barclays Capital Inc. and their respective successors and three other primary U.S. government securities dealers (each a “Primary Treasury Dealer”),
    as specified by the Company; provided that (1) if any of J.P. Morgan Securities
    Inc. and Barclays Capital Inc. and their respective successors or any Primary
    Treasury Dealer as specified by the Company shall cease to be a Primary Treasury
    Dealer, the Company will substitute therefore another Primary Treasury Dealer
    and (2) if the Company fails to select a substitute within a reasonable period
    of time, then the substitute will be a Primary Treasury Dealer selected by
    the Trustee after
consultation with the Company.

“Reference Treasury Dealer Quotations” means,
    with respect to the Reference Treasury Dealer and any Redemption Date, the
    average, as determined by the Independent Investment Banker, of the bid and
    asked prices for the Comparable Treasury Issue (expressed in each case as
    a percentage of its principal amount) quoted in writing to the Independent
    Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.

Notice
    of any redemption will be mailed at least 30 days but no more than 60 days
    before the redemption date to each Holder of the Senior Notes to be redeemed.
    Notwithstanding Section 12.2 of the Original Indenture, the notice of redemption
    with respect to the foregoing redemption need not set forth the Redemption
Price but only the manner of calculation thereof.

A-6

The
    Company shall notify the Trustee of the Redemption Price with respect to
    the foregoing redemption promptly after the calculation thereof. The Trustee
    shall not be responsible for calculating said Redemption Price. Unless the
    Company defaults in payment of the redemption price, on and after the redemption
    date, interest will cease to accrue on the Senior Notes or portions thereof
called for redemption.

If
    less than all of the Senior Notes are to be redeemed, the Trustee shall determine,
    in such manner as it deems appropriate and fair, the principal amount of
    such notes held by each beneficial owner of such Senior Notes to be redeemed.
    The Trustee may select notes and portions of notes in amounts of $1,000 and
whole multiples of $1,000 in excess of $2,000.

The
    Indenture contains provisions for redemption of the Senior Notes for tax
purposes in whole but not in part at the option of the Company.

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

As
    provided in the Indenture and subject to certain limitations therein set
    forth, the transfer of this Note is registrable in the Security register,
    upon surrender of this Note for registration of transfer at the office or
    agency of the Company for such purpose, duly endorsed by, or accompanied
    by a written instrument of transfer in form satisfactory to the Company or
    the Security registrar and duly executed by, the holder hereof or his attorney
    duly authorized in writing, and thereupon one or more new Senior Notes, of
    authorized denominations and of like tenor and for the same aggregate principal
    amount, will be issued to the designated transferee or transferees. No service
    charge shall be made for any such exchange or registration of transfer, but
    the Company will require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee, any Person authorized by the Company to pay the principal of or any premium or interest on any Securities on behalf of the Company (“Paying Agent”)
    and the Security registrar of the Company or the Trustee may deem and treat
    the Person in whose name this Note is registered as the absolute owner hereof
    for all purposes, whether or not this Note be overdue and notwithstanding
    any notice of ownership or writing thereon made by anyone other than the
    Security registrar, and neither the Company nor the Trustee nor any Paying
Agent nor the Security registrar shall be affected by notice to the contrary.

The
    Senior Notes are issuable only in registered form without coupons in denominations
    of $1,000 and whole multiples of $1,000 in excess of $2,000. As provided
    in the Indenture and subject to certain limitations therein set forth, Senior
    Notes are exchangeable for a like aggregate principal amount of Senior Notes
    of a different authorized denomination, as requested by the holder surrendering
    the same upon surrender of the Senior Note or Senior Notes to be exchanged
at the office or agency of the Company.

No
    recourse shall be had for payment of the principal of or interest on this
    Note, or for any claim based hereon, or otherwise in respect hereof, or based
    on or in respect of the Indenture, against any incorporator, as such or against
    any past, present or future shareholder, officer or director, as such, of
    the Company or of any successor, either directly or through the Company or
    any successor, under any rule, law statute or constitutional provision, or
    by the enforcement of any assessment or by any legal or equitable proceeding
    or otherwise, all such liability being expressly waived and released, by
the acceptance hereof and as part of the consideration for the issuance hereof.

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

This
    Note shall be governed by, and construed in accordance with, the internal
laws of the state of New York.

A-7

ABBREVIATIONS

The
    following abbreviations, when used in the inscription on the face of this
    instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

	TEN COM – as tenants in
    common    	 	
 UNIF GIFT MIN ACT – Custodian under Uniform
 Gift to Minors
Act
	 	 	 
	 	 	______________________
	 	 	 (State)
	 	 	 
	TEN ENT – as tenants by
the entireties	 	 
	 	 	 
	JT TEN – as joint tenants with rights
    of 	 	CUST – Custodian

survivorship and not as

tenants in common

Additional abbreviations may also be used

though not on the above list.

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 (please insert Social Security or other identifying number of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting and appointing

agent to transfer said Note on the books of the Company, with full power of substitution in the premises.

	Dated:	 	

  

  

  

  NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.

A-8

EXHIBIT B

	 	 	 	 	 	 	 

CERTIFICATE OF AUTHENTICATION

This
    is one of the 7% Senior Notes due 2034 referred to in the within-mentioned
Indenture.

	 	 	 	 	 	 	 	THE BANK OF NEW YORK

  as Trustee

  

  

  By:_________________________

	 	 	 	 	 	 	 	     Authorized
    Signatory

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]