Document:

exv4w1

 

 

ROHM AND HAAS COMPANY

TO

THE BANK OF NEW YORK

           
                   Trustee

 

INDENTURE

Dated as of September           , 2007

 

 

 

 

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	 	 	 	 	 	 	 
	SECTION 101.
	 	Definitions	 	 	1	 
	 
	 	Act	 	 	2	 
	 
	 	Affiliate	 	 	2	 
	 
	 	Attributable Debt	 	 	2	 
	 
	 	Authenticating Agent	 	 	2	 
	 
	 	Board of Directors	 	 	2	 
	 
	 	Board Resolution	 	 	2	 
	 
	 	Business Day	 	 	2	 
	 
	 	Certified Board Resolution	 	 	2	 
	 
	 	Commission	 	 	2	 
	 
	 	Common Stock	 	 	3	 
	 
	 	Company	 	 	3	 
	 
	 	Company Conversion Notice	 	 	3	 
	 
	 	“Company Request” or “Company Order”	 	 	3	 
	 
	 	Consolidated Net Worth	 	 	3	 
	 
	 	Conversion Agent	 	 	3	 
	 
	 	Conversion Date	 	 	3	 
	 
	 	Conversion Market Price	 	 	3	 
	 
	 	Conversion Price	 	 	3	 
	 
	 	Corporate Trust Office	 	 	3	 
	 
	 	Corporation	 	 	3	 
	 
	 	Defaulted Interest	 	 	3	 
	 
	 	Depository	 	 	3	 
	 
	 	Event of Default	 	 	3	 
	 
	 	Funded Debt	 	 	4	 
	 
	 	Global Security	 	 	4	 
	 
	 	Holder	 	 	4	 
	 
	 	Indenture	 	 	4	 
	 
	 	Interest	 	 	4	 
	 
	 	Interest Payment Date	 	 	4	 
	 
	 	Last Sale Price	 	 	4	 
	 
	 	Maturity	 	 	4	 
	 
	 	Mortgage	 	 	4	 
	 
	 	Notice of Redemption	 	 	4	 
	 
	 	Officers’ Certificate	 	 	4	 
	 
	 	Opinion of Counsel	 	 	4	 
	 
	 	Original Issue Discount Security	 	 	4	 
	 
	 	Outstanding	 	 	5	 
	 
	 	Paying Agent	 	 	5	 
	 
	 	Person	 	 	5	 
	 
	 	Place of Payment	 	 	5	 
	 
	 	Predecessor Security	 	 	6	 
	 
	 	Principal Operating Property	 	 	6	 

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	 	Redemption Date	 	 	6	 
	 
	 	Redemption Price	 	 	6	 
	 
	 	Regular Record Date	 	 	6	 
	 
	 	Responsible Officer	 	 	6	 
	 
	 	Restricted Subsidiary	 	 	6	 
	 
	 	Securities	 	 	7	 
	 
	 	Security Register	 	 	7	 
	 
	 	Special Record Date	 	 	7	 
	 
	 	Stated Maturity	 	 	7	 
	 
	 	Subsidiary	 	 	7	 
	 
	 	Trustee	 	 	7	 
	 
	 	Trust Indenture Act	 	 	7	 
	 
	 	U.S. Government Obligations	 	 	7	 
	 
	 	Unrestricted Subsidiary	 	 	7	 
	 
	 	Vice President	 	 	8	 
	SECTION 102.
	 	Compliance Certificates and Opinions	 	 	8	 
	SECTION 103.
	 	Form of Documents Delivered to Trustee	 	 	8	 
	SECTION 104.
	 	Acts of Holders	 	 	9	 
	SECTION 105.
	 	Notices, Etc., to Trustee and Company	 	 	9	 
	SECTION 106.
	 	Notice to Holders; Waiver	 	 	10	 
	SECTION 107.
	 	Conflict with Trust Indenture Act	 	 	10	 
	SECTION 108.
	 	Effect of Headings and Table of Contents	 	 	10	 
	SECTION 109.
	 	Successors and Assigns	 	 	10	 
	SECTION 110.
	 	Separability Clause	 	 	11	 
	SECTION 111.
	 	Benefits of Indenture	 	 	11	 
	SECTION 112.
	 	Governing Law	 	 	11	 
	SECTION 113.
	 	Legal Holidays	 	 	11	 

ARTICLE TWO

SECURITY FORMS

	 	 	 	 	 	 	 
	SECTION 201.
	 	Forms Generally	 	 	11	 
	SECTION 202.
	 	Form of Face of Security	 	 	12	 
	SECTION 203.
	 	Form of Reverse of Security	 	 	13	 
	SECTION 204.
	 	Form of Trustee’s Certificate of Authentication	 	 	17	 
	SECTION 205.
	 	Securities Issuable in the Form of a Global Security	 	 	18	 

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ARTICLE THREE

THE SECURITIES

	 	 	 	 	 	 	 
	SECTION 301.
	 	Amount Unlimited; Issuable in Series	 	 	19	 
	SECTION 302.
	 	Denominations	 	 	21	 
	SECTION 303.
	 	Execution, Authentication, Delivery and Dating	 	 	21	 
	SECTION 304.
	 	Temporary Securities	 	 	23	 
	SECTION 305.
	 	Registration, Registration of Transfer and Exchange	 	 	23	 
	SECTION 306.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	24	 
	SECTION 307.
	 	Payment of Interest; Interest Rights Preserved	 	 	25	 
	SECTION 308.
	 	Persons Deemed Owners	 	 	26	 
	SECTION 309.
	 	Cancellation	 	 	26	 
	SECTION 310.
	 	Computation of Interest	 	 	27	 

ARTICLE FOUR

SATISFACTION AND DISCHARGE

	 	 	 	 	 	 	 
	SECTION 401.
	 	Satisfaction and Discharge of Indenture	 	 	27	 
	SECTION 402.
	 	Application of Trust Money; Indemnification	 	 	28	 
	SECTION 403.
	 	Defeasance and Discharge of Indenture	 	 	28	 

ARTICLE FIVE

REMEDIES

	 	 	 	 	 	 	 
	SECTION 501.
	 	Events of Default	 	 	30	 
	SECTION 502.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	32	 
	SECTION 503.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	32	 
	SECTION 504.
	 	Trustee May File Proofs of Claim	 	 	33	 
	SECTION 505.
	 	Trustee May Enforce Claims Without Possession of Securities	 	 	33	 
	SECTION 506.
	 	Application of Money Collected	 	 	34	 
	SECTION 507.
	 	Limitation on Suits	 	 	34	 
	SECTION 508.
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	 	35	 
	SECTION 509.
	 	Restoration of Rights and Remedies	 	 	35	 
	SECTION 510.
	 	Rights and Remedies Cumulative	 	 	35	 
	SECTION 511.
	 	Delay or Omission Not Waiver	 	 	35	 
	SECTION 512.
	 	Control by Holders	 	 	35	 
	SECTION 513.
	 	Waiver of Past Defaults	 	 	36	 
	SECTION 514.
	 	Undertaking for Costs	 	 	36	 
	SECTION 515.
	 	Waiver of Stay or Extension Laws	 	 	36	 

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ARTICLE SIX

THE TRUSTEE

	 	 	 	 	 	 	 
	SECTION 601.
	 	Certain Duties and Responsibilities	 	 	37	 
	SECTION 602.
	 	Notice of Defaults	 	 	37	 
	SECTION 603.
	 	Certain Rights of Trustee	 	 	37	 
	SECTION 604.
	 	Not Responsible for Recitals or Issuance of Securities	 	 	38	 
	SECTION 605.
	 	May Hold Securities	 	 	38	 
	SECTION 606.
	 	Money Held in Trust	 	 	39	 
	SECTION 607.
	 	Compensation and Reimbursement	 	 	39	 
	SECTION 608.
	 	Disqualification; Conflicting Interests	 	 	39	 
	SECTION 609.
	 	Corporate Trustee Required; Eligibility	 	 	39	 
	SECTION 610.
	 	Resignation and Removal; Appointment of Successor	 	 	40	 
	SECTION 611.
	 	Acceptance of Appointment by Successor	 	 	41	 
	SECTION 612.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	42	 
	SECTION 613.
	 	Preferential Collection of Claims Against Company	 	 	42	 
	SECTION 614.
	 	Appointment of Authenticating Agent	 	 	42	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

	 	 	 	 	 	 	 
	SECTION 701.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	45	 
	SECTION 702.
	 	Preservation of Information; Communications to Holders	 	 	45	 
	SECTION 703.
	 	Reports by Trustee	 	 	45	 
	SECTION 704.
	 	Reports by Company	 	 	45	 

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

	 	 	 	 	 	 	 
	SECTION 801.
	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	46	 
	SECTION 802.
	 	Successor Corporation Substituted	 	 	46	 

ARTICLE NINE

SUPPLEMENTAL INDENTURES

	 	 	 	 	 	 	 
	SECTION 901.
	 	Supplemental Indentures Without Consent of Holders	 	 	47	 
	SECTION 902.
	 	Supplemental Indentures with Consent of Holders	 	 	48	 
	SECTION 903.
	 	Execution of Supplemental Indentures	 	 	49	 
	SECTION 904.
	 	Effect of Supplemental Indentures	 	 	49	 
	SECTION 905.
	 	Conformity with Trust Indenture Act	 	 	49	 
	SECTION 906.
	 	Reference in Securities to Supplemental Indenture	 	 	49	 

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ARTICLE TEN

COVENANTS

	 	 	 	 	 	 	 
	SECTION 1001.
	 	Payment of Principal, Premium and Interest	 	 	50	 
	SECTION 1002.
	 	Maintenance of Office or Agency	 	 	50	 
	SECTION 1003.
	 	Money for Securities Payments to Be Held in Trust	 	 	50	 
	SECTION 1004.
	 	Corporate Existence	 	 	52	 
	SECTION 1005.
	 	Maintenance of Properties	 	 	52	 
	SECTION 1006.
	 	Payment of Taxes and Other Claims	 	 	52	 
	SECTION 1007.
	 	Maintenance of Insurance	 	 	52	 
	SECTION 1008.
	 	Statement as to Compliance	 	 	53	 
	SECTION 1009.
	 	Limitation Upon Mortgages	 	 	53	 
	SECTION 1010.
	 	Limitation Upon Sale and Leaseback Transactions	 	 	54	 
	SECTION 1011.
	 	Defeasance of Certain Obligations	 	 	55	 
	SECTION 1012.
	 	Waiver of Certain Covenants	 	 	56	 

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

	 	 	 	 	 	 	 
	SECTION 1101.
	 	Applicability of Article	 	 	57	 
	SECTION 1102.
	 	Election to Redeem: Notice to Trustee	 	 	57	 
	SECTION 1103.
	 	Selection by Trustee of Securities to Be Redeemed	 	 	57	 
	SECTION 1104.
	 	Notice of Redemption	 	 	58	 
	SECTION 1105.
	 	Deposit of Redemption Price	 	 	58	 
	SECTION 1106.
	 	Securities Payable on Redemption Date	 	 	59	 
	SECTION 1107.
	 	Securities Redeemed in Part	 	 	59	 

ARTICLE TWELVE

SINKING FUNDS

	 	 	 	 	 	 	 
	SECTION 1201.
	 	Applicability of Article	 	 	59	 
	SECTION 1202.
	 	Satisfaction of Sinking Fund Payments with Securities	 	 	60	 
	SECTION 1203.
	 	Redemption of Securities for Sinking Fund	 	 	60	 

ARTICLE THIRTEEN

CONVERSION OF SECURITIES

	 	 	 	 	 	 	 
	SECTION 1301.
	 	Applicability of Article	 	 	61	 
	SECTION 1302.
	 	Exercise of Conversion Privilege	 	 	61	 
	SECTION 1303.
	 	Fractional Interests	 	 	62	 
	SECTION 1304.
	 	Adjustment of Conversion Price	 	 	62	 
	SECTION 1305.
	 	Reorganization of Company	 	 	66	 
	SECTION 1306.
	 	Notice of Certain Events	 	 	66	 

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	SECTION 1307.
	 	Taxes on Conversion	 	 	66	 
	SECTION 1308.
	 	Company to Provide Stock	 	 	67	 
	SECTION 1309.
	 	Disclaimer of Responsibility for Certain Matters	 	 	67	 
	SECTION 1310.
	 	Company Determination Final	 	 	67	 

vi

 

     INDENTURE, dated as of September           , 2007, between ROHM AND HAAS COMPANY, a corporation duly
organized and existing under the laws of the State of Delaware (herein called the “Company”),
having its principal office at Independence Mall West, Philadelphia, Pennsylvania, and THE BANK OF
NEW YORK, a banking corporation duly organized and existing under the laws of the State of New
York, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

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

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101. Definitions.

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

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

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

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

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

 

 

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

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

     “Attributable Debt” in respect of a Sale and Leaseback Transaction referred to in Sections
1009 and 1010 means, at the time of determination, the present value (discounted at the rate per
annum not greater than the rate borne by any Debt Securities of any series, compounded
semi-annually) of the total obligations of the lessee for net rental payments during the remaining
term of the lease included in such arrangement (including any period for which such lease has been
extended or may, at the option of the lessor, be extended). The term “net rental payments” under
any lease for any period shall mean the sum of the rental and other payments required to be paid in
such period by the lessee thereunder, not including, however, any amounts required to be paid by
such lessee (whether or not designated as rental or additional rental) on account of maintenance
and repairs, insurance, taxes, assessments, water rates or similar charges required to be paid by
such lessee thereunder. In the case of any lease which is terminable by the lessee upon the
payment of a penalty, such net amount shall also include the amount of such penalty, but no rent
shall be considered as required to be paid under such lease subsequent to the first date upon which
it may be so terminated.

     “Authenticating Agent” means any Person authorized by the Trustee to act on behalf of the
Trustee to authenticate Securities.

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board.

     “Board Resolution” means a resolution duly adopted by the Board of Directors.

     “Business Day”, when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law to close.

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

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

- 2 -

 

     “Common Stock” means, with respect to each series of Securities subject to Article Thirteen,
Common Stock of the Company as it exists on the date of issuance of such series.

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

     “Company Conversion Notice” has the meaning specified in Section 1302.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board, its President, its Vice Chairman or a Vice President, and
by its Chief Financial Officer, its Treasurer, an Assistant Treasurer, its Secretary or an
Assistant Secretary, and delivered to the Trustee.

     “Consolidated Net Worth” means the aggregate of capital stock and surplus and surplus reserves
which would be included on a consolidated balance sheet of the Company and its Subsidiaries
determined on a consolidated basis in accordance with generally accepted accounting principles,
less the cost of any treasury shares as included on such balance sheet.

     “Conversion Agent” means any Person (other than the Trustee) authorized by the Company to
accept Securities for conversion on behalf of the Company.

     “Conversion Date” has the meaning specified in Section 1302.

     “Conversion Market Price” has the meaning specified in Section 1302.

     “Conversion Price” has the meaning specified in Section 1304.

     “Corporate Trust Office” means the principal office of the Trustee in New York City at which
at any particular time its corporate trust business shall be administered. The Corporate Trust
Office on the date hereof is The Bank of New York, 101 Barclay Street, Floor 8-West, New York, N.Y.
10286, facsimile: (212) 815-5704, attn: Corporate Finance.

     “Corporation” includes corporations, associations, companies and business trusts.

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

     “Depository” means, with respect to the Securities of any series issuable or issued in the
form of one or more Global Securities, the Person designated as Depository by the Company pursuant
to Section 301 until a successor depositories shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Depository” shall mean or include such Person who is
then a Depository hereunder, and if at any time there is more than one such Person, “Depository” as
used with respect to the Securities of such series shall mean the Depository with respect to the
Global Securities of that series.

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

- 3 -

 

     “Funded Debt” means any indebtedness for money borrowed maturing on, or extendible at the
option of the obligor to, a date more than one year from the date of the creation thereof.

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

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

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term “Indenture”
shall also include the terms of particular series of Securities established as contemplated by
Section 301.

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

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

     “Last Sale Price” has the meaning specified in Section 1303.

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

     “Mortgage” means and includes any mortgage, pledge, lien, security interest, conditional sale
or other title retention agreement or other similar encumbrance.

     “Notice of Redemption” has the meaning specified in Section 1104.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the
President, the Vice Chairman or a Vice President, and by the Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company, and
delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company.

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

- 4 -

 

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

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

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

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

     (iv) Securities which have been converted into Common Stock pursuant hereto, and for
purposes of selection of Securities for partial redemption, Securities not deemed
Outstanding pursuant to Section 1103;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, (i) the principal amount of an Original Issue
Discount Security that shall be deemed to be Outstanding shall be the amount of the principal
thereof that would be due and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 502, and (ii) Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall
be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities
so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

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

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

     “Place of Payment”, when used with respect to the Securities of any series, means the place or
places where the principal of (and premium, if any) and interest on the Securities of that

- 5 -

 

series are payable and where the Securities of that series may be presented for exchange or conversion as
specified as contemplated by Section 301.

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

     “Principal Operating Property” means any principal manufacturing plant and related physical
facilities (other than facilities constructed or acquired subsequent to December 31, 1985 for the
control or abatement of atmospheric pollutants or contaminants, water pollution, noise, odor or
other pollution) which on the date of this Indenture or at any time subsequent thereto is located
in the United States, any of its territories or possessions or Puerto Rico and has been owned and
operated by the Company or any Subsidiary for more than 90 days; provided, however, that any
principal manufacturing plant and related physical facilities (not theretofore owned by the Company
or a Subsidiary) owned and operated by a corporation which becomes a Subsidiary after the original
execution and delivery of this Indenture shall not constitute a Principal Operating Property unless
owned and operated by such corporation for more than 90 days after it becomes a Subsidiary; and
provided, further, that the Board of Directors may by resolution declare that any plant is not of
material importance to the business of the Company and its Restricted Subsidiaries as a whole, in
which case such plant shall not be deemed to be a Principal Operating Property.

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

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

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

     “Responsible Officer”, when used with respect to the Trustee, means the chairman or any
vice-chairman of the board of directors, the chairman or any vice-chairman of the executive
committee of the board of directors, the chairman of the trust committee, the president, and vice
president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer, the controller or any
assistant controller or any other officer of the Trustee customarily performing functions similar
to those performed by any of the above designated officers and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.

     “Restricted Subsidiary” means as of the date of determination any Subsidiary of the Company
which owns or leases any Principal Operating Property.

- 6 -

 

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

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

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

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

     “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.

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

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended; provided,
however, if the Trust Indenture Act is amended after the date hereof, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

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

     “Unrestricted Subsidiary” means any Subsidiary other than a Restricted Subsidiary.

- 7 -

 

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

SECTION 102. Compliance Certificates and Opinions.

     Except as otherwise expressly provided by, or as contemplated in, Section 301 or 303 of this
Indenture, upon any application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate,
stating that all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and, where this Indenture provides that compliance with
conditions precedent is subject to verification by accountants, a certificate or opinion of an
accountant, together with an Opinion of Counsel stating that in the opinion of such counsel all
such conditions precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request, no additional
certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than certificates provided pursuant to Section 1008) shall include

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

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

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

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

SECTION 103. Form of Documents Delivered to Trustee.

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

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or

- 8 -

 

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

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

SECTION 104. Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 601) conclusive in favor of the Trustee and the Company, if made in the manner provided in
this Section.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

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

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

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

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

- 9 -

 

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

     (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid (or by facsimile to (212) 815-5704) or by overnight courier, to the Company
addressed to it Attention: Treasury Department at the address of its principal office
specified in the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company.

SECTION 106. Notice to Holders; Waiver.

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

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

SECTION 107. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under the Trust Indenture Act to be a part of and to govern this Indenture,
the latter shall control. If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act that may be so modified or excluded, the provision as so modified or
excluded shall be deemed to apply.

SECTION 108. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

SECTION 109. Successors and Assigns.

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

- 10 -

 

SECTION 110. Separability Clause.

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

SECTION 111. Benefits of Indenture.

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

SECTION 112. Governing Law.

     This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York. The Company and the Trustee consent to jurisdiction and venue of
state and federal courts located in the Borough of Manhattan in New York City, and both parties
waive the right to trial by jury.

SECTION 113. Legal Holidays.

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

ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

     The Securities of each series shall be in substantially the form set forth in this Article, or
in such other form or forms as shall be established by or pursuant to a Board Resolution 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
such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities. If the form of Securities of
any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate
record of such action shall be certified by the Secretary or an Assistant Secretary of the Company
and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by
Section 303 for the authentication and delivery of such Securities.

- 11 -

 

     The Trustee’s certificates of authentication shall be in substantially the form set forth in
this Article.

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

SECTION 202. Form of Face of Security.

     [If the Security is an Original Issue Discount Security, insert any legend required by the
United States Internal Revenue Code and the regulations thereunder.]

ROHM AND HAAS COMPANY

 

	 	 	 	 	 
	No. _____________
	 	$	_________	 

     ROHM AND HAAS COMPANY, a corporation duly organized and existing under the laws of Delaware
(herein called the “Company”, which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to _______ or registered assigns,
the principal sum of _______ Dollars on _______ (If the Security is to bear interest prior to
Maturity, insert-, and to pay interest thereon from
_______ or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on _______ and _______ in each
year, commencing _______, at the rate of _______% per annum, until the principal hereof is paid or made
available for payment [If applicable insert-, and (to the extent that the payment of such interest
shall be legally enforceable) at the rate of _______% per annum on any overdue principal and premium and
on any overdue installment of interest]. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be the _______ or _______
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to
the Holder on such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided in said
Indenture.

     [If the security is not to bear interest prior to Maturity, insert—The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of _______% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such default in payment
to the date payment of such principal has been made or duly provided for. Interest on any

- 12 -

 

overdue principal shall be payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of ____% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of such demand for
payment to the date payment of such interest has been made or duly provided for, and such interest
shall also be payable on demand.]

     Payment of the principal of (and premium, if any) and [if applicable, insert—any such]
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in ____, 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 [if applicable, insert—; provided,
however, that at the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the Security Register]. [If
applicable, insert-Initially, ________ will act as Conversion Agent.]

     Reference is hereby made to the further provisions of this Security 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 referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under a
facsimile of its corporate seal.

	 	 	 	 	 	 	 
	Dated:	 	ROHM AND HAAS COMPANY	 	 
	 
	 	 	 	 	 	 
	[Corporate Seal]

	 	By:
	 	 
	 	 
	 

	 	 	 	 	 	 

Attest:

                                                            

SECTION 203. Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
September ____, 2007 (herein called the “Indenture”), between the Company and The Bank of New York,
as Trustee (herein called the ‘Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is
hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof [, limited in aggregate principal amount to $____].

- 13 -

 

     [If applicable, insert—The Securities of this series are subject to redemption upon not less
than 30 days’ notice by mail, [if applicable, insert—(1) on ____ in any year commencing with the
year ____ and ending with the year ____ through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [on or after ________,
200     ], as a whole or in part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [on or before ____, ____%, and if
redeemed] during the 12-month period beginning ________ of the years indicated,

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Redemption	 	 	 	 	 	 	Redemption	 
	Year	 	Price	 	 	Year	 	 	Price	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ____% of the principal amount, together in the case of
any such redemption [if applicable, insert-(whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture.]

     [If applicable, insert-The Securities of this series are subject to redemption upon not less
than 30 days’ notice by mail, (1) on ____ in any year commencing with the year ____ and ending with
the year ____ through operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below, and (2) at any time [on or after ________], as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption otherwise than through operation
of the sinking fund (expressed -as percentages of the principal amount) set forth in the table
below: If redeemed during the 12-month period beginning ________ of the years indicated,

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REDEMPTION PRICE FOR
	 	 	REDEMPTION PRICE FOR	 	REDEMPTION
	 	 	REDEMPTION THROUGH	 	OTHERWISE THEN
	 	 	OPERATION OF THE	 	THROUGH OPERATION OF
	YEAR	 	SINKING FUND	 	THE SINKING FUND
	 
	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ____% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant Record Dates referred to
on the face hereof, all as provided in the Indenture.]

     [Notwithstanding the foregoing, the Company may not, prior to ____ redeem any Securities of this
series as contemplated by [Clause (2) of] the preceding paragraph as a part of, or in anticipation
of, any refunding operation by the application, directly or indirectly, of moneys

- 14 -

 

borrowed having an interest cost to the Company (calculated in accordance with generally accepted financial
practice) of less than ____% per annum.]

     [The sinking fund for this series provides for the redemption on ____ in each year beginning
with the year ____ and ending with the year ____ of [not less than] $________[(“mandatory sinking fund”) and
not more than $________] aggregate principal amount of Securities of this series.

     [Securities of this series acquired or redeemed by the Company otherwise than through
[mandatory] sinking fund payments may be credited against subsequent [mandatory] sinking fund
payments otherwise required to be made in the inverse order in which they become due.]

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     [If the Security is not an Original Issue Discount Security,-If an Event of Default with
respect to Securities of this series shall occur and be continuing, the principal of the Securities
of this series may be declared due and payable in the manner and with the effect provided in the
Indenture.]

     [If the Security is an Original Issue Discount Security,-If an Event of Default with respect
to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to—insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal and overdue interest (in each case to the extent that the payment
of such interest shall be legally enforceable), all of the Company’s obligations in respect of the
payment of the principal of and interest, if any, on the Securities of this series shall
terminate.]

     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
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, 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 Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

     [If applicable, insert — A Holder of a Security may convert it into Common Stock of the
Company at any time before the close of business on ________ If the Security is called for redemption,
the Holder may convert it at any time before the close of business on the date specified in the
Notice of Redemption. The initial conversion price is $________ per share, subject to adjustment in

- 15 -

 

certain events. To determine the number of shares issuable upon conversion of a Security, divide
the principal amount to be converted by the conversion price in effect on the conversion date. (If
applicable, insert — In lieu of delivering shares of Common Stock on conversion of a Security, the
Company may elect (in the manner described in the Indenture) to pay a Holder surrendering a
Security an amount in cash equal to the Conversion Market Price (as defined in the Indenture) of
the shares of Common Stock into which such Security is convertible on the date no later than the
eighth Business Day following the Conversion Date.) On conversion no payment or adjustment for
interest will be made. The Company will deliver a check for any fractional share.

     To convert a Security, a Holder must (1) complete and sign the conversion notice on the back
of the Security, (2) surrender the Security to a Conversion Agent, (3) furnish appropriate
endorsements and transfer documents if required by the Company, Registrar or Conversion Agent, and
(4) pay any transfer or similar tax required. A Holder may convert a portion of a Security if the
portion is an authorized denomination or a whole multiple of an authorized denomination.

     The conversion price will be adjusted for dividends or distributions on Common Stock payable
in Company stock; subdivisions, combinations or certain reclassifications of Common Stock;
distributions to all Holders of Common Stock of certain rights to purchase Common Stock at less
than the current market price at the time; distributions to such Holders of assets or debt
securities of the Company or certain rights to purchase securities of the Company (excluding cash
dividends or distributions from current or retained earnings). However, no adjustment need be made
if Holders may participate in the transaction or in certain other cases. The Company from time to
time may voluntarily reduce the conversion price for a period of time.

     If the Company is a party to a consolidation or merger or a transfer or lease of all or
substantially all of its assets, the right to convert a Security into Common Stock may be changed
into a right to convert it into Securities, cash or other assets of the Company or another Person
pursuant to a supplemental indenture.]

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

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $________ and any integral multiple thereof. As provided in the Indenture and

- 16 -

 

subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

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

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

     [If applicable, insert — CONVERSION NOTICE

     To convert this security into Common Stock of the Company, check the box:            o

     To convert only part of this Security, state the amount to be converted ($1,000 or any
integral multiple thereof).

$                                        

     If you want the stock certificate made out in another person’s name, fill in the form below:

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	(other person’s social security or tax I.D. number)
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	(other person’s name, address and zip code)	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	Date

	 	*Your signature	 	 
	 	 	(Sign exactly as your name appears on the other side of this Security.)

 

*  
Your signature must be guaranteed by a commercial bank or trust company or by a member or members’
organization of the New York Stock Exchange or American Stock Exchange.]

SECTION 204. Form of Trustee’s Certificate of Authentication.

     This is one of the Securities of a series designated under the Indenture described herein.

- 17 -

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,

as Trustee	 	 
	 
	 

	 	By:
	 	  

Authorized
Officer
	 	 

SECTION 205. Securities Issuable in the Form of a Global Security.

     If the Company shall establish pursuant to Section 301 that the Securities of a particular
series are to be issued in whole or in part in the form of one or more Global Securities, then the
Company shall execute and the Trustee shall, in accordance with Section 303 and the Company Order
delivered to the Trustee thereunder, authenticate and deliver, such Global Security or Securities,
which (i) shall represent, and shall be denominated in an amount equal to the aggregate principal
amount of, the Outstanding Securities of such series to be represented by such Global Security or
Securities, (ii) shall be registered in the name of the Depository for such Global Security or
Securities or its nominee, (iii) shall be delivered by the Trustee to the Depository or pursuant to
the Depository’s instruction and (iv) shall bear a legend substantially to the following effect:
“Unless and until it is exchanged in whole or in part for the individual Securities represented
hereby, this Global Security may not be transferred except as a whole by the Depository to a
nominee of the Depository or by a nominee of the Depository to the Depository or another nominee of
the Depository or by the Depository or any such nominee to a successor Depository or a nominee of
such successor Depository.”

     Notwithstanding any other provision of this Section 205 or of Section 305, unless the terms of
a Global Security expressly permit such Global Security to be exchanged in whole or in part for
individual Securities, a Global Security may be transferred, in whole but not in part and in the
manner provided in Section 305, only to another nominee of the Depository for such Global Security,
or to a successor Depository for such Global Security selected or approved by the Company or to a
nominee of such successor Depository.

     If at any time the Depository for a Global Security notifies the Company that it is unwilling
or unable to continue as Depository for such Global Security or if at any time the Depository for
the Securities for such series shall no longer be eligible or in good standing under the Securities
Exchange Act of 1934, as amended, or other applicable statute or regulation, the Company shall
appoint a successor Depository with respect to such Global Security. If a successor Depository for
such Global Security is not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such ineligibility, the Company’s election pursuant to Section 301 shall
no longer be effective with respect to such Global Security and the Company will execute, and the
Trustee, upon receipt of a Company Order for the
authentication and delivery of individual Securities of such series in exchange for such
Global Security, will authenticate and deliver individual Securities of such series of like tenor
and terms in definitive form in an aggregate principal amount equal to the principal amount of the
Global Security in exchange for such Global Security.

     The Company may at any time and in its sole discretion determine that the Securities of any
series issued or issuable in the form of one or more Global Securities shall no longer be
represented by such Global Security or Global Securities. In such event the Company will

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execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of individual
Securities of such series in exchange in whole or in part for such Global Security, will
authenticate and deliver individual Securities of such series of like tenor and terms in definitive
form in an aggregate principal amount equal to the principal amount of such Global Security or
Global Securities representing such series in exchange for such Global Security or Global
Securities.

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

     In any exchange provided for in any of the preceding three paragraphs, the Company will
execute and the Trustee will authenticate and deliver individual Securities in definitive
registered form in authorized denominations. Upon the exchange of a Global Security for individual
Securities, such Global Security shall be cancelled by the Trustee. Securities issued in exchange
for a Global Security pursuant to this Section shall be registered in such names and in such
authorized denominations as the Depository for such Global Security, pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Securities to the persons in whose names such Securities are so registered.

ARTICLE THREE

THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

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

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 303, set forth in, or determined in writing in the
manner provided in, an Officers’ Certificate, or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of any series:

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

     (2) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for

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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 205, 304, 305, 306, 906, or 1107 and except for
any Securities which, pursuant to Section 303, are deemed never to have been authenticated
and delivered hereunder);

     (3) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;

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

     (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, the Interest Payment Dates on
which such interest shall be payable and the Regular Record Date for the interest payable on
any Interest Payment Date;

     (6) the place or places where the principal of (and premium, if any) and interest on
Securities of the series shall be payable and where such Securities may be presented for
exchange or conversion;

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

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

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

     (10) if the amount of payments of principal of and any premium or interest on the
Securities of the series may be determined with reference to an index, the manner in which
such amounts shall be determined;

     (11) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

     (12) whether the Securities will be convertible into Common Stock and, if so, the terms
and conditions upon which such conversion will be effected, including the initial conversion
price or rate and the basis for adjustments thereto, if any, the conversion period and other
provisions in addition to or in lieu of those described herein, including whether the
Company may elect to pay cash in lieu of delivering shares of

- 20 -

 

Common Stock on conversion of any Securities and the method of computing the amount of cash so payable;

     (13) whether the Securities of the series will be issued in whole or in part in the
form of a Global Security or Global Securities; the terms and conditions, if any, upon which
such Global Security or Global Securities may be exchanged in whole or in part for other
individual Securities; and the Depository for such Global Security or Global Securities,
provided, however, that each Depository must, at the time of its designation and at all
times while it serves as Depository, be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, and any other applicable statute or regulation;

     (14) any Conversion Agents or other agents with respect to the Securities of such
series;

     (15) the method of setting the Record Date for determining the identity of Holders
entitled to vote or consent to any action permitted by this Indenture, if other than the
method provided in the Trust Indenture Act; and

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

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth in the Officers’ Certificate referred to above or in any
such indenture supplemental hereto.

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series.

SECTION 302. Denominations.

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

SECTION 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman of the Board, its
President, its Vice Chairman or one of its Vice Presidents under its corporate seal reproduced
thereon and attested by its Secretary or one of its Assistant Secretaries. The signature of any of
these officers on the Securities may be manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such

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individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such Securities.

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

     (a) if the form of such Securities has been established by or pursuant to a Board
Resolution as permitted by Section 201, that such form has been established in conformity
with the provisions of this Indenture;

     (b) if the terms of such Securities have been established by or pursuant to a Board
Resolution as permitted by Section 301, that such terms have been established in conformity
with the provisions of this Indenture; and

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

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

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the time of authentication upon original issuance of the first Security of such series to be
issued. After the original issuance of the first Security of each such series, the Trustee shall
authenticate such additional securities of such series in accordance with a written determination
of the Company in the manner provided in the Officer’s Certificate.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate

 - 22 - 

 

upon any Security shall be conclusive evidence, and the only evidence, that such Security has
been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture.
Notwithstanding the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall deliver such Security to
the Trustee for cancellation as provided in Section 309 together with a written statement (which
need not comply with Section 102 and need not be accompanied by an Opinion of Counsel) stating that
such Security has never been issued and sold by the Company, for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.

SECTION 304. Temporary Securities.

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

     If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Subject to Section 205, upon surrender for cancellation of any one or more temporary
Securities of any series the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor a like principal amount of definitive Securities of the same series and of
like tenor of authorized denominations. Until so exchanged the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series.

SECTION 305. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company in a Place
of Payment being herein sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed
“Security Registrar” for the purpose of registering Securities and transfers of Securities as
herein provided.

     Upon surrender for registration of transfer of any Security of any series at an office or
agency of the Trustee, the Company shall execute, and the Trustee shall authenticate and deliver,
in the name of the designated transferee or transferees, one or more new Securities of the same
series, of any authorized denominations and of a like aggregate principal amount and tenor.

 - 23 - 

 

     Subject to Section 205, at the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series, of any authorized denominations and of a like aggregate
principal amount and tenor, upon surrender of the Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

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

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

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

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

     Neither the Company, the Trustee nor any Paying Agent will have any responsibility or
liability for any aspect of the records relating to or payments made on account of beneficial
ownership interests of a Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.

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

     If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and
of like tenor and principal amount and bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of

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the same series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

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

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

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

SECTION 307. Payment of Interest; Interest Rights Preserved.

     Unless otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

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

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which

 - 25 - 

 

shall be not more than 15 days and not less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of the notice of
the proposed payment. The Trustee shall promptly notify the Company of such Special Record
Date and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Securities of such series at his address as
it appears in the Security Register, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following Clause (2).

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

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

SECTION 308. Persons Deemed Owners.

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

SECTION 309. Cancellation.

     All Securities surrendered for payment, redemption, registration of transfer, exchange or
conversion or for credit against any sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company
may at any time deliver to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner whatsoever and may deliver to
the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as

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provided in this Section, except as expressly permitted by this Indenture. All cancelled
Securities held by the Trustee shall be disposed of as directed by a Company Order.

SECTION 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

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

	 	(1)	 	either
	 
	 	 	 	(A) all Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 306 and (ii) Securities for whose
payment money has theretofore been deposited in trust or segregated and held
in trust by the Company and thereafter repaid to the Company or discharged
from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or
	 
	 	 	 	(B) all such Securities not theretofore delivered to the Trustee for
cancellation

     (i) have become due and payable, or

     (ii) will become due and payable at their Stated Maturity within one
year, or

     (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company,

and the Company, in the case of (B)(i), (ii) or (iii) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and premium,
if any) and interest to the date of such deposit (in the case of Securities which

 - 27 - 

 

have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;

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

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

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Trustee to any Authenticating
Agent under Section 614 and, if money shall have been deposited with the Trustee pursuant to
subclause (B) of clause (1) of this Section, the obligations of the Trustee under Section 402, the
last paragraph of Section 1003 and Article Thirteen, shall survive.

SECTION 402. Application of Trust Money; Indemnification.

     (a) Subject to the provisions of the last paragraph of Section 1003, all money deposited with
the Trustee pursuant to Section 401, all money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 403 or 1011 and all money received by the Trustee in respect of U.S.
Government Obligations deposited with the Trustee pursuant to Section 403 or 1011, shall be held in
trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and interest for whose payment such money has been deposited with or received by
the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by
Section 403 or 1011.

     (b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations deposited pursuant to Section 403 or
1011 or the interest and principal received in respect of such obligations other than any payable
by or on behalf of Holders.

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

SECTION 403. Defeasance and Discharge of Indenture.

     The Company shall be deemed to have paid and discharged the entire indebtedness on all the
Outstanding Securities on the 91st day after the date of the deposit referred to in subparagraph
(d) hereof, and the provisions of this Indenture, as it relates to such Outstanding Securities,
shall no longer be in effect (and the Trustee, at the expense of the Company, shall at Company
Request, execute proper instruments acknowledging the same), except as to:

 - 28 - 

 

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

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

     (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder;

provided that, the following conditions shall have been satisfied:

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

     (e) such deposit shall not cause the Trustee with respect to the Securities to have a
conflicting interest as defined in the Trust Indenture Act with respect to the Securities;

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

     (g) such provision would not cause any Outstanding Securities then listed on the New
York Stock Exchange or other securities exchange to be delisted as a result thereof;

     (h) no Event of Default or event which with notice or lapse of time would become an
Event of Default with respect to the Securities shall have occurred and be continuing on the
date of such deposit or during the period ending on the 91 st day after such date;

 - 29 - 

 

     (i) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel reasonably acceptable to the Trustee confirming that, subject to customary
assumptions and exclusions, (A) the Company has received from, or there has been published
by, the United States Internal Revenue Service a ruling, or (B) since the issuance of the
Securities, there has been a change in the applicable Federal income tax law, in either case
to the effect that, and based thereon such Officers’ Certificate and Opinion of Counsel
shall confirm that, subject to customary assumptions and exclusions, the Holders of the
Securities will not recognize income, gain or loss for Federal income tax purposes as a
result of such deposits, defeasance and discharge and will be subject to Federal income tax
on the same amount and in the same manner and at the same times, as would have been the case
if such deposit, defeasance and discharge had not occurred; and

     (j) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the defeasance contemplated
by this Section have been complied with.

ARTICLE FIVE

REMEDIES

SECTION 501. Events of Default.

     “Event of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events (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):

     (1) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or

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

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

     (4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture (other than (i) the obligations of the Company under Section 704 and (ii)
a covenant or warranty a default in whose performance or whose breach is elsewhere in this
Section specifically dealt with or which has expressly been included in this Indenture
solely for the benefit of series of Securities other than that series), and continuance of
such default or breach for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or the Company and the Trustee by the Holders
of at least 10% in principal amount of the Outstanding Securities of that series a written
notice specifying such default or breach and requiring it to be remedied and stating that
such notice is a “Notice of Default” hereunder; or

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     (5) a default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any indebtedness for money borrowed by
the Company (including this Indenture), whether such indebtedness now exists or shall
hereafter be created, which default shall constitute a failure to pay any portion of the
principal of such indebtedness when due and payable after the expiration of any applicable
grace period with respect thereto or shall have resulted in such indebtedness becoming or
being declared due and payable prior to the date on which it would otherwise have become due
and payable, without such indebtedness having been discharged, or such acceleration having
been rescinded or annulled, within a period of 10 days after there shall have been given, by
registered or certified mail, to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least 10% in principal amount of the Outstanding Securities of
that series a written notice specifying such default and requiring the Company to cause such
indebtedness to be discharged or cause such acceleration to be rescinded or annulled and
stating that such notice is a “Notice of Default” hereunder; provided, however, that,
subject to the provisions of Sections 601 and 602, the Trustee shall not be deemed to have
knowledge of such default unless either (A) a Responsible Officer of the Trustee shall have
actual knowledge of such default or (B) the Trustee shall have received written notice
thereof from the Company, from any Holder, from the holder of any such indebtedness or from
the trustee under any such mortgage, indenture or other instrument; or

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

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

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

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal amount (or,
if any of the Securities of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof) of all of the
Securities of that series to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable.

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

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

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

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

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

     (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel;

     and

     (2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 513.

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

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

     The Company covenants that if

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

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

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

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

SECTION 504. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company or any other obligor upon the
Securities, its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

     All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment

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shall, after provision for the payment of the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of
the Securities in respect of which such judgment has been recovered.

SECTION 506. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal (or premium, if any) or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

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

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

SECTION 507. Limitation on Suits.

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

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

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

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

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

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

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

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

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

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

SECTION 509. Restoration of Rights and Remedies.

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

SECTION 510. Rights and Remedies Cumulative.

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

SECTION 511. Delay or Omission Not Waiver.

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

SECTION 512. Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any

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remedy available to the Trustee, or exercising any trust or power conferred on the Trustee,
with respect to the Securities of such series, provided that

     (1) such direction shall not be in conflict with any rule of law or with this
Indenture, and

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

SECTION 513. Waiver of Past Defaults.

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

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

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

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

SECTION 514. Undertaking for Costs.

     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, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess reasonable costs, including reasonable attorneys’ fees, against any such party litigant in
the manner and to the extent provided in the Trust Indenture Act, provided that this
Section 514 shall have no application to any suit instituted by the Company or the Trustee.

SECTION 515. Waiver of Stay or Extension Laws.

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

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ARTICLE SIX

THE TRUSTEE

SECTION 601. Certain Duties and Responsibilities.

     Prior to the occurrence of an Event of Default, the Trustee shall have only its duties
expressly set forth herein and no implied duties. Following the occurrence of an Event of Default,
the Trustee shall exercise its duties as a prudent Person would conduct its affairs. The duties
and responsibilities of the Trustee shall be as provided by the Trust Indenture Act.

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

SECTION 602. Notice of Defaults.

     If a default occurs hereunder with respect to the Securities of any series, the Trustee shall
give the Holders of Securities of such series notice of such default as and to the extent provided
by the Trust Indenture Act; provided, however, that in the case of any default of
the character specified in Section 501(4) with respect to Securities of such series, no such notice
to Holders shall be given until at least 30 days after the occurrence thereof. For the purpose of
this Section, the term “default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.

SECTION 603. Certain Rights of Trustee.

     Subject to the provisions of Section 601:

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

     (b) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order or as otherwise expressly provided by, or as
contemplated in Section 301 or Section 303 herein and any resolution of the Board of
Directors may be sufficiently evidenced by a Certified Board Resolution;

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

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

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

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

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

     (h) In no event shall the Trustee be liable for any indirect, special, punitive or
consequential loss or damage of any kind whatsoever, including, but not limited to, lost
profits, even if the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action; and

     (i) In no event shall the Trustee be liable for any failure or delay in the performance
of its obligations hereunder because of circumstances beyond its control, including, but not
limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot,
embargo, governmental action, including any laws, ordinances, regulations, governmental
action or the like which delay, restrict or prohibit the providing of the services
contemplated by this Indenture.

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

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

SECTION 605. May Hold Securities.

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     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

SECTION 606. Money Held in Trust.

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

SECTION 607. Compensation and Reimbursement.

     The Company agrees

     (1) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder in accordance with an executed fee letter entered into by the
parties hereto (which compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);

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

     (3) to indemnify the Trustee (which for purposes of this subsection shall be deemed to
include its officers, directors, employees, counsel and agents) for, and to hold it harmless
against, any loss, liability or expense (including the reasonable fees and expenses of
counsel) incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including
the costs and expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder. This indemnity shall
survive payment in full of all securities and the resignation or removal of the Trustee.

SECTION 608. Disqualification; Conflicting Interests.

     Provisions relating to disqualification of the Trustee shall be as provided in the Trust
Indenture Act.

SECTION 609. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to exercise corporate trust powers, having a combined

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capital and surplus of at least $25,000,000 subject to supervision or examination by Federal
or State authority. If such corporation publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect hereinafter specified in
this Article.

SECTION 610. Resignation and Removal; Appointment of Successor.

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

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

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

     (d) If at any time:

     (1) the Trustee shall fail to comply with the provisions of the Trust Indenture Act
applicable in respect of a conflicting interest after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security for at least six
months, or

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

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

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

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one or

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

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

SECTION 611. Acceptance of Appointment by Successor.

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

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the

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

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

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

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

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.

SECTION 613. Preferential Collection of Claims Against Company.

     Provisions relating to preferential collection of claims against the Company shall be as
provided by the Trust Indenture Act.

SECTION 614. Appointment of Authenticating Agent.

     At any time when any of the Securities remain Outstanding the Trustee may appoint an
Authenticating Agent or Agents with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon
the

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exchange, registration of transfer or partial redemption or conversion thereof or pursuant to
Section 306, and Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery of Securities by
the Trustee or 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 and a
certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation
organized and doing business under the laws of the United States of America, any State thereof or
the District of Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than $25,000,000 and subject to supervision or examination
by Federal or State authority. If such Authenticating Agent publishes reports of condition at
least annually, pursuant to law or to the requirements of said supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report
of condition so published. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve, as their names
and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance
of its appointment hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No
successor Authenticating Agent shall be appointed unless eligible under the provisions of this
Section.

     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternate certificate of authentication in the following form:

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     This is one of the Securities of a series designated under the Indenture described herein.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	  

	 	 
	 	 	As Authenticating Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Authorized Officer	 	 

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ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

     The Company will furnish or cause to be furnished to the Trustee:

     (a) semi-annually, not later than May 15 and November 15 in each year, a list, in such
form as the Trustee may reasonably require, of the names and addresses of the Holders as of
the preceding May 1 or November 1, as the case may be, and

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

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

SECTION 702. Preservation of Information; Communications to Holders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of Holders contained in the most recent list furnished to the Trustee as
provided in Section 701 and the names and addresses of Holders received by the Trustee in
its capacity as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 701 upon receipt of a new list so furnished.

     (b) 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.

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent of either of
them shall be held accountable by reason of any disclosure of information as to names and
addresses of Holders made pursuant to the Trust Indenture Act.

SECTION 703. Reports by Trustee.

     To the extent and in the manner required by the Trust Indenture Act, reports by the Trustee
will be transmitted to Holders within 60 days after May 15 of each year.

SECTION 704. Reports by Company.

     The Company shall file with the Trustee and the Commission such information, documents and
other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act
at the times and in the manner provided pursuant to such Act; provided that

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any such information, documents or reports required to be filed with the Commission pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 shall be transmitted electronically
to the Trustee within 15 days after the same is filed with the Commission.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

     The Company shall not consolidate with or merge into any other corporation or convey, transfer
or lease its properties and assets substantially as an entirety to any Person, and the Company
shall not permit any Person to consolidate with or merge into the Company or convey, transfer or
lease its properties and assets substantially as an entirety to the Company, unless:

     (1) in case the Company shall consolidate with or merge into another corporation or
convey, transfer or lease its properties and assets substantially as an entirety to any
Person, the corporation formed by such consolidation or into which the Company is merged or
the Person which acquires by conveyance or transfer, or which leases, the properties and
assets of the Company substantially as an entirety shall be a corporation organized and
existing under the laws of the United States of America, any State thereof or the District
of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment
of the principal of (and premium, if any) and interest on all the Securities and the
performance of every covenant of this Indenture on the part of the Company to be performed
or observed;

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

     (3) if, as a result of any such consolidation or merger or such conveyance, transfer or
lease, properties or assets of the Company would become subject to a mortgage, pledge, lien,
security interest or other encumbrance which would not be permitted by this Indenture, the
Company or such successor corporation or Person, as the case may be, shall take such steps
as shall be necessary effectively to secure the Securities equally and ratably with (or
prior to) all indebtedness secured thereby; and

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

SECTION 802. Successor Corporation Substituted.

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     Upon any consolidation by the Company with or merger by the Company into any other corporation
or any conveyance, transfer or lease of the properties and assets of the Company substantially as
an entirety in accordance with Section 801, the successor corporation formed by such consolidation
or into which the Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor corporation had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor corporation shall be
relieved of all obligations and covenants under this Indenture and the Securities.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

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

     (1) to evidence the succession of another corporation to the Company and the assumption
by any such successor of the covenants of the Company herein and in the Securities; or

     (2) to add to the covenants of the Company for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Company; or

     (3) to add any additional Events of Default; or

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

     (5) to change or eliminate any of the provisions of this Indenture, provided that any
such change or elimination shall become effective only when there is no Security Outstanding
of any series created prior to the execution of such supplemental indenture which is
entitled to the benefit of such provision; or

     (6) to secure the Securities; or

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

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     (8) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 611(b);

     (9) to comply with the provisions of Section 1305; or

     (10) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions with respect
to matters or questions arising under this Indenture, provided such action shall not
adversely affect the interests of the Holders of Securities of any series in any material
respect.

SECTION 902. Supplemental Indentures with Consent of Holders.

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

     (1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any
Place of Payment where, or the coin or currency in which, any Security or any premium or the
interest thereon is payable, or make any change that adversely affects the right to convert
any Security or impair the right to institute suit for the enforcement of any such payment
on or after the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or to enforce such conversion right, or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture, or

     (3) modify any of the provisions of this Section, Section 513 or Section 1012, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, provided, however, that this clause shall not be

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deemed to require the consent of any Holder with respect to changes in the references
to “the Trustee” and concomitant changes in this Section and Section 1012, or the deletion
of this proviso, in accordance with the requirements of Sections 611(b) and 901(8).

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 the Holders of Securities of such series with respect
to such covenant or other provision, shall be deemed not to affect the rights under this Indenture
of the Holders of Securities of any other series.

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

SECTION 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

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

SECTION 905. Conformity with Trust Indenture Act.

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

SECTION 906. Reference in Securities to Supplemental Indenture.

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

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ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of (and premium, if any) and interest on the Securities of
that series in accordance with the terms of the Securities and this Indenture.

     The Company will have the right to require the Holder of a Security of any series, in
connection with the payment of the principal of and interest on the Security, to present at either
office or agency to be maintained by the Company in accordance with Section 1002 a certificate, in
such form as the Company may from time to time prescribe, to enable it to determine its duties and
liabilities with respect to any taxes, assessments or governmental charges which it may be required
to deduct or withhold therefrom under any present or future law of the United States of America or
of any State, county, municipality or taxing authority therein and giving, among other information,
the identity and residence of the Holder of such Security; and the Company will be entitled to
determine its duties and liabilities with respect to such deduction or withholding on the basis of
the information contained in such certificate or, if no such certificate shall be so presented, on
the basis of any presumption created by any such law, and shall be entitled to act in accordance
with such determination.

SECTION 1002. Maintenance of Office or Agency.

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

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

SECTION 1003. Money for Securities Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of (and premium, if any) or
interest

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

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

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

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

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

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

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

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

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published in the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, 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
Company.

SECTION 1004. Corporate Existence.

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

SECTION 1005. Maintenance of Properties.

     The Company 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 Company
may be necessary so that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this Section shall
prevent the Company from discontinuing the operation or maintenance of any of such properties if
such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or
the business of any Subsidiary and not disadvantageous in any material respect to the Holders.

SECTION 1006. Payment of Taxes and Other Claims.

     The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary,
and (2) all lawful claims for labor, materials and supplies which if unpaid, might by law become a
lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall
not be required to pay or discharge or cause to be paid or discharged any such tax, assessment,
charge or claim whose amount, applicability or validity is being contested in good faith by
appropriate proceedings.

SECTION 1007. Maintenance of Insurance.

     The Company will insure and keep insured, and will cause each Subsidiary to insure and keep
insured, with reputable insurance companies, so much of their respective properties, to such an
extent and against such risks (including fire), as companies engaged in similar businesses
customarily insure properties of a similar character; or, in lieu thereof, in the case of itself or
of any one or more of its Subsidiaries, the Company will maintain or cause to be maintained a
system or systems of self-insurance which will accord with the approved practices of companies

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owning or operating properties of a similar character and maintaining such systems, and, in
such cases of self-insurance, will maintain or cause to be maintained an insurance reserve or
reserves in adequate amounts.

SECTION 1008. Statement as to Compliance.

     The Company will deliver to the Trustee, within 120 days after the end of each fiscal year, a
written statement signed by the principal executive officer, the principal financial officer or the
principal accounting officer, stating that

     (1) a review of the activities of the Company during such year and of performance under
this Indenture has been made under his supervision;

     (2) to the best of his knowledge, based on such review, (a) the Company has fulfilled
all its obligations under this Indenture throughout such year, or, if there has been a
default in the fulfillment of any such obligation (determined without regard to any period
of grace or requirement of notice provided for in this Indenture), specifying each such
default known to him and the nature and status thereof, and (b) no event has occurred and is
continuing which is, or after notice or lapse of time or both would become, an Event of
Default under Clauses (3) or (4) of Section 501, or, if such an event has occurred and is
continuing, specifying each such event known to him and the nature and status thereof; and

     (3) setting forth arithmetical computations sufficient to show compliance with the
provisions of Sections 1009 and 1010 during such fiscal year.

SECTION 1009. Limitation Upon Mortgages.

     The Company will not itself, and will not permit any Restricted Subsidiary to, incur, issue,
assume, guarantee or suffer to exist any indebtedness for money borrowed (indebtedness for money
borrowed being hereinafter in this Section 1009 called “Debt”) secured by a Mortgage on any
Principal Operating Property of the Company or any Restricted Subsidiary, or any shares of stock of
or Debt of any Restricted Subsidiary, without effectively providing that the Securities (together
with, if the Company shall so determine, any other Debt of the Company or such Restricted
Subsidiary then existing or thereafter created which is not subordinate to the Securities) shall be
secured equally and ratably with (or, at the option of the Company, prior to) such secured Debt, so
long as such secured Debt shall be so secured, unless, after giving effect thereto, the aggregate
amount of all such secured Debt plus all Attributable Debt of the Company and its Restricted
Subsidiaries in respect of sale and leaseback transactions (as defined in Section 1010, but
excluding leases exempt from the prohibition of Section 1010 by Clauses (2) through (7), inclusive,
thereof) would not exceed 5% of Consolidated Net Worth; provided, however, that this Section 1009
shall not apply to, and there shall be excluded from secured Debt in any computation under this
Section, Debt secured by:

     (1) Mortgages on property of, or on any shares of stock of or Debt of, any corporation
existing at the time such corporation becomes a Restricted Subsidiary;

     (2) Mortgages in favor of the Company or any Restricted Subsidiary;

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     (3) Mortgages in favor of any governmental body to secure progress, advance or other
payments pursuant to any contract or provision of any statute;

     (4) Mortgages on property (including leasehold estates), shares of stock or Debt
existing at the time of acquisition thereof (including acquisition through merger or
consolidation) or to secure the payment of all or any part of the purchase price thereof or
construction thereon or to secure any Debt incurred prior to, at the time of, or within 120
days after the latest of the acquisition, the completion of construction or the commencement
of full operation of such property or within 120 days after the acquisition of such shares
or Debt for the purpose of financing all or any part of the purchase price thereof or
construction thereon, it being understood that if a bona fide commitment from a bank,
insurance company or other lender or investor (not including the Company or any Subsidiary)
for such financing is made prior to or within such 120-day period, the applicable Mortgage
shall be deemed to be included in this Clause (4) whether or not such Mortgage is created
within such 120-day period; or

     (5) any extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Mortgage referred to in the foregoing Clauses
(1) to (4), inclusive, provided, that such extension, renewal or replacement Mortgage shall
be limited to all or part of the same property, shares of stock or Debt that secured the
Mortgage extended, renewed or replaced (plus improvements on such property).

SECTION 1010. Limitation Upon Sale and Leaseback Transactions.

     Except as hereinafter provided, the Company will not itself, and it will not permit any
Restricted Subsidiary to, enter into any transaction with any bank, insurance company or other
lender or investor, or to which any such bank, company, lender or investor is a party, providing
for the leasing by the Company or a Restricted Subsidiary of any Principal Operating Property which
has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such bank,
company, lender or investor, or to any Person to whom funds have been or are to be advanced by such
bank, company, lender or investor on the security of such Principal Operating Property (herein
referred to as a “sale and leaseback transaction”). This covenant shall not apply to any sale and
leaseback transaction if:

     (1) the Company or such Restricted Subsidiary could create Debt secured by a Mortgage
pursuant to Section 1009, without regard to Clauses (1) through (5) thereof, on the
Principal Operating Property to be leased in an amount equal to the Attributable Debt with
respect to such sale and leaseback transaction without equally and ratably securing the
Securities, or

     (2) the Company or a Restricted Subsidiary, within 120 days after the sale or transfer
shall have been made by the Company or by a Restricted Subsidiary, applies an amount equal
to the greater of the net proceeds from the sale of the Principal Operating Property leased
pursuant to such arrangement or the fair market value of the Principal Operating Property so
leased at the time of entering into such arrangement (as determined in any manner approved
by the Board of Directors) to the retirement of Funded Debt of

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the Company or a Restricted Subsidiary (except that no Securities shall be retired if
such retirement of Securities pursuant to this provision would be prohibited by Section
1101); provided, that the amount to be applied to the retirement of Funded Debt of the
Company or a Restricted Subsidiary shall be reduced by (a) the principal amount of any
Securities (or other debentures or notes constituting Funded Debt of the Company or a
Restricted Subsidiary not subordinate to the Securities) delivered to the Trustee or other
applicable trustee for retirement and cancellation within 75 days after such sale or
transfer shall have been made and (b) the principal amount of Funded Debt, other than Funded
Debt included under Clause (a), voluntarily retired by the Company or a Restricted
Subsidiary within 75 days after such sale (notwithstanding the foregoing, no retirement
referred to in this Clause (2) may be effected by payment at maturity or pursuant to any
mandatory sinking fund payment or any mandatory prepayment provision), or

     (3) the Company or a Restricted Subsidiary, within 120 days after the sale or transfer
shall have been made by the Company or by a Restricted Subsidiary, applies an amount equal
to the greater of the net proceeds from the sale of the Principal Operating Property leased
pursuant to such arrangement or the fair market value of the Principal Operating Property so
leased at the time of entering into such arrangement (as determined in any manner approved
by the Board of Directors) to the purchase of a manufacturing plant and related physical
facilities similar to the Principal Operating Property leased pursuant to such arrangement,
or

     (4) the sale or transfer of the Principal Operating Property is made within 120 days
after the latest to occur of the date of (a) the acquisition of such Principal Operating
Property, (b) the completion of construction or (c) the commencement of full operation
thereof, or

     (5) the sale or transfer of the Principal Operating Property is made pursuant to a bona
fide commitment for such sale or transfer entered into with such bank, company, lender or
investor within 120 days after the latest to occur of the events specified in Clause (4)
above, or

     (6) the lease in such sale and leaseback transaction is for a period, including
renewals, of not in excess of three years, or

     (7) such arrangement is between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries.

SECTION 1011. Defeasance of Certain Obligations.

     The Company may omit to comply with any term, provision or condition set forth in Sections
1009 and 1010, with respect to the Securities if:

     (1) With reference to this Section 1011, the Company has deposited or caused to be
irrevocably deposited with the Trustee (or another trustee satisfying the requirements of
Section 609) as trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities, (i) money in an amount, or (ii)
U.S. Government Obligations which through the payment of interest and

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principal in respect thereof in accordance with their terms will provide not later than
one day before the due date of any payment referred to in clause (A) or (B) of this
subparagraph (1) money in an amount, or (iii) a combination thereof, sufficient, in the
opinion of a nationally recognized firm of independent certified public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge
(A) the principal of (and premium, if any) and each installment of principal of (and
premium, if any) and interest on the Outstanding Securities on the Stated Maturity of such
principal or installment of principal or interest and (B) any mandatory sinking fund
payments applicable to the Securities on the day on which such payments are due and payable
in accordance with the terms of the Indenture and of the Securities;

     (2) Such deposit shall not cause the Trustee with respect to the Securities to have a
conflicting interest as defined in the Trust Indenture Act with respect to the Securities;

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

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

     (5) The Company has delivered to the Trustee an Opinion of Counsel to the effect that
Holders of the Securities will not recognize income, gain or loss for Federal income tax
purposes as a result of such deposit and defeasance of certain obligations and will be
subject to Federal income tax on the same amount and in the same manner and at the same
times, as would have been the case if such deposit and defeasance had not occurred; and

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

SECTION 1012. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 1004 to 1007, inclusive, Section 1009 and Section 1010, with
respect to the Securities of any series if before the time for such compliance the Holders of at
least a majority in principal amount of the Outstanding Securities of such series shall, by Act of
such Holders, either waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company and the duties of the Trustee in respect of any such term, provision
or condition shall remain in full force and effect.

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ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

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

SECTION 1102. Election to Redeem: Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by a Certified Board
Resolution. In case of any redemption at the election of the Company of less than all the
Securities of any series, the Company shall, at least 45 days prior to the Redemption Date fixed by
the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Securities of such series to be redeemed. In
the case of any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company
shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such
restriction.

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

     If less than all the Securities of any series are to be redeemed, the particular Securities to
be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for Securities of that series
or any integral multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of that series.

     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

     If any Security selected for partial redemption is surrendered for conversion pursuant to
Article Thirteen after such selection, the converted portion of such Security shall be deemed (so
far as may be) to be the portion selected for redemption. Upon any redemption of less than all the
Securities of a series, for purposes of selection for redemption, the Company and the Trustee may
treat as Outstanding Securities surrendered for conversion during the period of 15 days next
preceding the mailing of a Notice of Redemption and need not treat as Outstanding any Security
authenticated and delivered during such period in exchange for the unconverted portion of any
Security converted in part during such period.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to

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

SECTION 1104. Notice of Redemption.

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

     Each notice of redemption (herein “Notice of Redemption”) shall state:

     (1) the Redemption Date,

     (2) the Redemption Price and the Conversion Price, if any,

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

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

     (5) the place or places where such Securities are to be surrendered for payment of the
Redemption Price or for conversion, if applicable,

     (6) if the Securities called for redemption are subject to Article Thirteen, that
Securities called for redemption may be converted, the requirements for conversion and the
date on which the right to convert such Securities will expire, and

     (7) that the redemption is for a sinking fund, if such is the case.

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

SECTION 1105. Deposit of Redemption Price.

     Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date. If any Security called for redemption is converted pursuant
to Article Thirteen, any money deposited with the Trustee or with a Paying Agent or segregated and
held in trust for the redemption of such Security shall be paid to the Company at the Company’s
request, or if then held by the Company, shall be discharged from such trust.

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SECTION 1106. Securities Payable on Redemption Date.

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

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security and remain convertible into Common
Stock in accordance with its terms.

SECTION 1107. Securities Redeemed in Part.

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

ARTICLE TWELVE

SINKING FUNDS

SECTION 1201. Applicability of Article.

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

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

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SECTION 1202. Satisfaction of Sinking Fund Payments with Securities.

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

SECTION 1203. Redemption of Securities for Sinking Fund.

     Not less than 45 days prior to each sinking fund payment date for any series of Securities,
the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next
ensuing sinking fund payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities of that series pursuant to Section 1202
and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days
before each such sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 1104. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 1106 and 1107.

     The Company’s obligation to make a mandatory or optional sinking fund payment shall
automatically be reduced by an amount equal to the Redemption Price allocable to any Securities or
portion thereof called for redemption pursuant to the preceding paragraph on any sinking fund
payment date and converted into Common Stock; provided, however, that if the Trustee is not the
Conversion Agent for the Securities, the Company or such Conversion Agent shall give the Trustee
written notice prior to the date fixed for redemption of the principal amount of Securities or
portions thereof so converted.

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ARTICLE THIRTEEN

CONVERSION OF SECURITIES

SECTION 1301. Applicability of Article.

     The provisions of this Article shall be applicable to the Securities of any series which are
convertible into Common Stock except as otherwise specified, pursuant to Section 301, for
Securities of such series.

SECTION 1302. Exercise of Conversion Privilege.

     In order to exercise the conversion privilege, the Holder of any Security to be converted
shall (1) complete and manually sign a conversion notice in substantially the form set forth on the
Security, (2) surrender the Security to the Company at its office or agency maintained for that
purpose as provided in this Indenture, (3) furnish appropriate endorsements and transfer documents
if required by the Company, the Trustee or a Conversion Agent, and (4) pay any transfer or similar
tax required. The date on which the Holder satisfies all those requirements is the conversion date
(the “Conversion Date”). The conversion shall be deemed to have been effected immediately prior to
the close of business on the Conversion Date. As soon as practicable after the Conversion Date, the
Company, at its election, shall deliver through the Conversion Agent either (1) a certificate for
the number of full shares of Common Stock issuable upon the conversion and cash in lieu of any
fractional shares in an amount determined pursuant to Section 1303, or (2) if so provided pursuant
to Section 301 for Securities of any series, written notice (such notice herein referred to as the
“Company Conversion Notice”) in the manner provided in Section 106 that the Company has elected to
pay such Holder an amount in cash equal to the market value of the shares (including fractional
shares) issuable upon the conversion (the “Conversion Market Price”). If the Company elects to pay
a Holder cash, the Company shall deposit with the Conversion Agent (or, if the Company or a
Subsidiary or an Affiliate of either of them is acting as the Conversion Agent, shall segregate and
hold in trust as provided in Section 1003) cash sufficient to pay the aggregate Conversion Market
Price due and owing as of the close of business no later than on the eighth Business Day following
the Conversion Date. The person in whose name the certificate for Common Stock is registered shall
be treated as a stockholder of record on and after the Conversion Date; provided, however, that no
surrender of a Security for conversion on any date when the stock transfer books of the Company
shall be closed shall be effective to constitute the Person or Persons entitled to receive the
shares of Common Stock upon such conversion as the stockholder or stockholders of record of such
shares of Common Stock on such date, but such surrender shall be effective to constitute the Person
or Persons in whose name or names the certificate or certificates for such shares are to be issued
as the stockholder or stockholders of record thereof for all purposes at the opening of business on
the next succeeding day on which such stock transfer books are open (unless the Company has elected
to pay the Holder cash in lieu of delivering shares of Common Stock on conversion of any
Securities) but such conversion shall nevertheless be at the Conversion Price in effect on the
Conversion Date. In the case of conversion of a portion, but less than all, of a Security, the
Company shall execute, and the Trustee shall authenticate and deliver to the Holder, at the expense
of the Company, a Security or Securities in an authorized denomination equal to the aggregate
principal amount of the unconverted portion of the Security surrendered.

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     Except as otherwise expressly provided in this Indenture, no payment or adjustment shall be
made for interest accrued on any Security (or portion thereof) converted or for dividends or
distributions on any Common Stock issued upon conversion of any Security. On conversion of an
Original Issue Discount Security, that portion of accrued Original Issue Discount attributable to
the period from the date of issuance to the Conversion Date shall not be cancelled, extinguished or
forfeited but rather shall be deemed to be paid in full to the Holder thereof through delivery of
the Common Stock or payment of cash, as the case may be, in exchange for the Original Issue
Discount Security being converted. The right, if any, of a Holder of any Security to cause the
Company to redeem, purchase or repay such Security shall terminate upon receipt by the Company, the
Trustee or a Conversion Agent of any notice of conversion of such Security.

     If the last day on which a Security may be converted is not a Business Day, the Security may
be surrendered for conversion on the next succeeding Business Day.

SECTION 1303. Fractional Interests.

     No fractions of shares or scrip representing fractions of shares shall be issued upon
conversion of Securities. At the request of the Holder, if more than one Security shall be
surrendered for conversion at one time by the same Holder, the number of full shares which shall be
issuable or amount of cash payable, as the case may be, upon conversion thereof shall be computed
on the basis of the aggregate principal amount of the Securities so surrendered. If any fraction of
a share of Common Stock would, except for the provisions of this Section, be issuable on the
conversion of any Security or Securities, the Company shall make payment in lieu thereof by check
in an amount equal to the value of such fractional share computed on the basis of the last sale
price of the Common Stock as reported on the Composite Tape for New York Stock Exchange — Listed
Stocks (or if not listed or admitted to trading on such Exchange, then on the principal national
securities exchange on which the Common Stock is listed or admitted to trading, or, if not listed
or admitted to trading on any national securities exchange, then as reported by the National
Association of Securities Dealers, Inc. through NASDAQ or a similar organization if NASDAQ is no
longer reporting information) on the last trading day prior to the Conversion Date (any such last
sale price being hereinafter referred to as the “Last Sale Price”). If on such trading day the
Common Stock is not quoted by any such organization, the fair value of such Common Stock on such
day, as determined by the Board of Directors, shall be used. For the purpose of this Section 1303
and Section 1304, the term “trading day” shall mean each Monday, Tuesday, Wednesday, Thursday and
Friday, other than any day on which securities are not traded on such exchange or in such market.

SECTION 1304. Adjustment of Conversion Price.

     The conversion price specified pursuant to Section 301 (herein called the “Conversion Price”)
shall be subject to adjustment from time to time as follows:

     (1) In case the Company shall: (i) pay a dividend or make a distribution on its Common
Stock in shares of Common Stock; (ii) subdivide its outstanding shares of Common Stock into
a greater number of shares; (iii) combine its outstanding shares of Common Stock into a
smaller number of shares; (iv) make a distribution on its Common

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Stock in shares of its capital stock other than Common Stock; or (v) issue any shares
of its capital stock by reclassification of its Common Stock, the Conversion Price in effect
immediately prior to such action shall be adjusted so that the Holder of any Security
thereafter surrendered for conversion shall be entitled to receive the number of shares of
Common Stock which he would have owned immediately following such action had such Security
been converted immediately prior thereto. Except as provided in subsection (5) below, an
adjustment made pursuant to this subsection (1) shall become effective immediately after the
Record Date in the case of a dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or reclassification.

     If after an adjustment a Holder of a Security upon conversion of it may receive shares
of two or more classes of capital stock of the Company, the Company shall determine the
allocation of the adjusted Conversion Price between the classes of capital stock. After such
allocation, the conversion privilege and the Conversion Price of each class of capital stock
shall thereafter be subject to adjustment on terms comparable to those applicable to Common
Stock in this Article.

     (2) In case the Company shall issue rights or warrants to all holders of Common Stock
entitling them for a period expiring within 60 days after the Record Date mentioned below to
purchase shares of Common Stock at a price per share less than the current market price per
share (as determined pursuant to subsection (4) below) of the Common Stock on the Record
Date mentioned below, the Conversion Price shall be adjusted in accordance with the formula:

where:

	 	 	 	 	 
	 

	 	C’
	 = 	the adjusted Conversion Price.
	 

	 	C
	 = 	the current Conversion Price.
	 

	 	O
	 = 	the number of shares of Common Stock outstanding on the Record Date.
	 

	 	N
	 = 	the number of additional shares of Common Stock offered.
	 

	 	P
	 = 	the offering price per share of the additional shares.
	 

	 	M
	 = 	the current market price per share of Common Stock on the Record Date.

Except as provided in subsection (5) below, such adjustment shall become effective immediately
after the Record Date for the determination of Holders entitled to receive such rights or warrants.

     (3) In case the Company shall distribute to all holders of Common Stock evidences of
indebtedness or assets (including Securities, but excluding (i) any rights or warrants
referred to in subsection (2) of this Section, (ii) any dividend or distribution paid
exclusively in cash, (iii) any dividend or distribution referred to in subsection (1) of
this

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Section, and (iv) distributions in connection with any merger or consolidation to which
Section 1305 applies), then in each such case the Conversion Price shall be adjusted in
accordance with the formula:

where:

	 	 	 	 	 
	 

	 	C’
	 = 	the adjusted Conversion Price.
	 

	 	C
	 = 	the current Conversion Price.
	 

	 	M
	 = 	the current market price per share of Common Stock on the Record Date
mentioned below.
	 

	 	F
	 = 	the fair market value on the Record Date of the assets, securities, rights or
warrants applicable to one share of Common Stock. The Company shall determine the fair
market value.

Except as provided in subsection (5) below, such adjustment shall become effective immediately
after the Record Date for the determination of stockholders entitled to receive such distribution.

     (4) For the purpose of any computation under subsections (2) and (3) above, the current
market price per share of Common Stock on any date shall be deemed to be the average of the
Last Sale Prices for 30 consecutive trading days commencing 45 trading days before the date
in question. If on any such trading day the Common Stock is not quoted by any organization
referred to in the definition of Last Sale Price in Section 1303, the fair value of the
Common Stock on such day, as determined by the Board of Directors, shall be used.

     (5) In any case in which this Section shall require that an adjustment be made
immediately following a Record Date, the Company may elect to defer the effectiveness of
such adjustment (but in no event later than the effective time of the event giving rise to
such adjustment), in which case the Company shall, with respect to any Security converted
after such record date and before such adjustment shall have become effective (i) defer
paying any cash payment pursuant to Section 1303 or issuing to the Holder of such Security
the number of shares of Common Stock and other capital stock of the Company issuable or cash
payable, as the case may be, upon such conversion in excess of the number of shares of
Common Stock and other capital stock of the Company issuable or cash payable, as the case
may be, thereupon only on the basis of the Conversion Price prior to adjustment, and (ii)
not later than five Business Days after such adjustment shall have become effective, pay to
such Holder the appropriate cash payment pursuant to Section 1303 and issue to such Holder
the additional shares of Common Stock and other capital stock of the Company issuable or
cash payable, as the case may be, on such conversion.

     (6) No adjustment in the Conversion Price shall be required unless such adjustment
would require an increase or decrease of at least 1% of the Conversion Price; provided, that
any adjustments which by reason of this subsection (6) are not required to

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be made shall be carried forward and taken into account in any subsequent adjustment.
No adjustment in the Conversion Price shall be required for (i) rights to purchase Common
Stock pursuant to a Company plan for reinvestment of dividends or interest or (ii) a change
in the par value of the Common Stock. To the extent the Securities become convertible into
cash, no adjustment need be made thereafter as to the cash. Interest will not accrue on the
cash. All calculations under this Article shall be made to the nearest cent or to the
nearest one-hundredth of a share, as the case may be.

     (7) The Conversion Price shall not be adjusted for any accrued original issue discount
on a Security.

     (8) Whenever the Conversion Price is adjusted, the Company shall promptly mail to all
Holders of Securities of the series to be affected a notice of the adjustment. The Company
shall file with the Trustee and any Conversion Agent such notice and a certificate from the
Company’s independent public accountants briefly stating the facts requiring the adjustment
and the manner of computing it. The certificate shall be conclusive evidence that the
adjustment is correct. Neither the Trustee nor any Conversion Agent shall be under any duty
or bear any responsibility with respect to such certificate.

     (9) No adjustment of the Conversion Price need be made for a transaction specified in
subsection (1), (2) and (3) of this Section if all Holders of Securities otherwise entitled
to an adjustment are entitled to participate in the transaction on a basis and with notice
that the Board of Directors determines to be fair and appropriate in light of the basis and
notice on which Holders of Common Stock participate in the transaction.

     (10) The Company from time to time may reduce the Conversion Price by any amount for
any period of time, provided the reduced Conversion Price is irrevocable for a minimum
period of 20 days. Whenever the Conversion Price is reduced, the Company shall mail to all
Holders of Securities of the series to be affected and file with the Trustee and any
Conversion Agent a notice of the reduction. The Company shall mail the notice at least 15
days before the date the reduced Conversion Price takes effect. The notice shall state the
reduced Conversion Price and the period it will be in effect. Such a reduction of the
Conversion Price does not change or adjust the Conversion Price otherwise in effect for
purposes of this Section.

Anything in this Section to the contrary notwithstanding (i) the Company shall be entitled to make
such reductions in the Conversion Price, in addition to those required by this Section, as it in
its discretion shall determine to be advisable in order that any stock dividend, subdivision of
shares, distribution of rights or warrants to purchase stock or Securities, or distribution of
other assets (other than cash dividends) hereafter made by the Company to its stockholders shall
not be taxable and (ii) in the event the Company shall declare any dividend or distribution
requiring an adjustment in the Conversion Price hereunder and shall, thereafter and before the
payment of such dividend or distribution to shareholders, legally abandon its plan to pay such
dividend or distribution, the Conversion Price then in effect hereunder, if changed to reflect such
dividend or distribution, shall forthwith be changed to the Conversion Price which would have been
in effect at the time of such abandonment had such dividend or distribution never been declared.

- 65 -

 

SECTION 1305. Reorganization of Company.

     If the Company is a party to a transaction subject to Section 801 (other than a transaction
which does not result in any reclassification, conversion, exchange or cancellation of outstanding
shares of Common Stock), the Person obligated to deliver securities, cash or other assets upon
conversion of Securities subject to this Article shall enter into a supplemental indenture. If the
issuer of Securities deliverable upon conversion of such Security is an Affiliate of the surviving
or transferee corporation, that issuer shall join in the supplemental indenture.

     The supplemental indenture shall provide that the Holder of any such Security may convert it
into the kind and amount of securities, cash or other assets which he would have owned immediately
after the consolidation, merger or transfer if he had converted the Security immediately before the
effective date of the transaction. The supplemental indenture shall provide for adjustments which,
for events subsequent to the effective date of such supplemental indenture, shall be as nearly
equivalent as may be practical to the adjustments provided for in this Article. The successor
Company shall mail to Holders of the Securities to be affected a notice briefly describing the
supplemental indenture.

     If this Section applies, subsection (1) of Section 1304 does not apply.

SECTION 1306. Notice of Certain Events.

If:

     (1) the Company takes any action that would require an adjustment in the Conversion
Price pursuant to subsections (1), (2) or (3) of Section 1304 unless the Holders are
entitled to participate in the transaction pursuant to Section 1304;

     (2) the Company takes any action that would require a supplemental indenture pursuant
to Section 1305; or

     (3) there is a liquidation or dissolution of the Company;

the Company shall mail to Holders of the Securities to be affected a notice stating the proposed
Record Date for a dividend or distribution or the proposed effective date of a subdivision,
combination, reclassification, consolidation, merger, transfer, liquidation or dissolution. The
Company shall mail the notice at least 15 days before such date. Failure to mail the notice or any
defect in it shall not affect the validity of the transaction.

SECTION 1307. Taxes on Conversion.

     The Company will pay any and all documentary stamp or similar taxes payable to the United
States of America or any political subdivision or taxing authority thereof or therein in respect of
the issue or delivery of shares of Common Stock on conversion of Securities pursuant thereto;
provided, however, that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the issue or delivery of shares of Common Stock in a name other
than that of the Holder of the Securities to be converted and no such issue or delivery shall be
made unless and until the Person requesting such issue or delivery has paid to

- 66 -

 

the Company the amount of any such tax or has established, to the satisfaction of the Company,
that such tax has been paid.

SECTION 1308. Company to Provide Stock.

     The Company shall reserve, out of its authorized but unissued Common Stock or its Common Stock
held in treasury, sufficient shares to provide for the conversion of Securities subject to this
Article from time to time as such Securities are presented for conversion.

     All shares of Common Stock which may be issued upon conversion of Securities will upon issue
be fully paid and non-assessable and free of pre-emptive rights.

     The Company will endeavor to comply with all securities laws regulating the offer and delivery
of shares of Common Stock upon conversion of Securities and will endeavor to list such shares on
each national securities exchange on which the Common Stock is listed.

SECTION 1309. Disclaimer of Responsibility for Certain Matters.

     The Trustee has no duty to determine when an adjustment under the Article should be made, how
it should be made or what it should be. The Trustee has no duty to determine whether any provisions
of a supplemental indenture under Section 1305 are correct. The Trustee makes no representation as
to the validity or value of any Securities or assets issued upon conversion of Securities. The
Trustee shall not be responsible for the Company’s failure to comply with this Article. Each
Conversion Agent other than the Company shall have the same protection under this Action as the
Trustee.

SECTION 1310. Company Determination Final.

     Any determination that the Company or the Board of Directors must make pursuant to Section
1303, 1304 or 1305 shall be conclusive; provided, however, that each such determination shall be
made in good faith.

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

- 67 -

 

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

	 	 	 	 	 	 	 
	 	 	ROHM AND HAAS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Corporate Trust Officer	 	 

- 68 -Exhibit 10.1 to Medtronic, Inc. Form 10-Q for period ended July 27, 2007

Exhibit 10.1

 

MEDTRONIC, INC.

1998 OUTSIDE DIRECTOR STOCK COMPENSATION PLAN

(as amended and restated effective September 1, 2007)

 

	
            1.
 	
            Purpose. The purpose of this Plan is to facilitate recruiting and retaining non-employee directors of outstanding ability.
 

 

	
            2.
 	
            Definitions. The capitalized terms used in this Plan have the meanings set forth below.
 

 

	
             
 	
            (a)
 	
            “Account” means a bookkeeping account maintained for a Participant to which Deferred Stock Units are credited pursuant to Section 8 of this Plan.
 

 

	
             
 	
            (b)
 	
            “Affiliate” means any corporation that is a “parent corporation” or “subsidiary corporation” of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, or any successor provision, and any joint venture in which the Company or any such “parent corporation” or “subsidiary corporation” owns an equity interest.
 

 

	
             
 	
            (c)
 	
            “Agreement” means a written contract entered into between the Company or an Affiliate and a Participant containing the terms and conditions of an Award granted hereunder (not inconsistent with this Plan).
 

 

	
             
 	
            (d)
 	
            “Annual Award” means an Option or Stock Appreciation Right granted pursuant to Section 7(c) of this Plan.
 

 

	
             
 	
            (e)
 	
“Annual
Retainer” of a Participant means the fixed annual fee for such Participant in effect on the first day of the Plan Year for
which such Annual Retainer is payable for services to be rendered as a Non-Employee Director of the Company. For purposes of
determining Awards, other than an Initial Award, for the short Plan Year beginning September 1, 2007 and ending on April 25,
2008, the Annual Retainer in effect on September 1, 2007 shall be 8/12 of the annual fee in effect as of September 1, 2007.

 

 

	
             
 	
            (f)
 	
            “Award” means an Option granted pursuant to Section 5 of this Plan, a Stock Appreciation Right granted pursuant to Section 6 of this Plan, an Annual or Initial Award granted pursuant to Section 7 of this Plan or a credit of Deferred Stock Units pursuant to Section 8 of this Plan.
 

 

	
             
 	
            (g)
 	
            “Board” means the Board of Directors of the Company.
 

 

	
             
 	
            (h)
 	
            “Change in Control” shall mean:
 

 

	
             
 	
            (i)
 	
            Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then outstanding Shares (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then 
 

 

outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this clause (h)(i), the following acquisitions shall not constitute a Change in Control: (1) any acquisition directly from the Company, (2) any acquisition by the Company or any of its subsidiaries, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries, (4) any acquisition by an underwriter temporarily holding securities pursuant to an offering of such securities or (5) any acquisition pursuant to a transaction that complies with clauses (A), (B) and (C) of clause (iii) below; or

 

	
             
 	
            (ii)
 	
            Individuals who, as of the date hereof, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of either an actual or threatened election contest or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or
 

 

	
             
 	
            (iii)
 	
Consummation of a
reorganization, merger, statutory share exchange or consolidation (or similar corporate transaction) involving the Company or any
of its Subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of
assets or stock of another entity (a “Business Combination”), in each case, unless, immediately following such Business
Combination, (A) substantially all of the individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 55% of, respectively, the then outstanding Shares and the total voting power
of (1) the corporation resulting from such Business Combination (the “Surviving Corporation”) or (2) if
applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 80% or more of the voting
securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), in substantially the
same proportion as their ownership, immediately prior to the Business Combination, of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (B) no person (other than any employee benefit plan (or related
trust) sponsored 
 

 

2

or maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner,
directly or indirectly, of 30% or more of the outstanding Shares and the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination; or

 

	
             
 	
            (iv)
 	
            Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. Notwithstanding the foregoing provisions of this definition, a Change in Control shall not be deemed to occur with respect to the Participant if the acquisition of the 30% or greater interest referred to in clause (a) is by a group, acting in concert, that includes the Participant or if at least 40% of the then outstanding common stock or combined voting power of the then outstanding voting securities (or voting equity interests) of the Surviving Corporation or, if applicable, the Parent Corporation shall be beneficially owned, directly or indirectly, immediately after a Business Combination by a group, acting in concert, that includes the Participant.
 

 

	
             
 	
            (i)
 	
            “Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from time to time, or any successor statute.
 

 

	
             
 	
            (j)
 	
            “Committee” means any committee of the Board designated by the Board to administer this Plan under Section 3 hereof which shall be composed of not less than two members, each of whom shall be a “non-employee director” as defined in Exchange Act Rule 16b-3.
 

 

	
             
 	
            (k)
 	
            “Company” means Medtronic, Inc., a Minnesota corporation, or any successor to all or substantially all of its businesses by merger, consolidation, purchase of assets or otherwise.
 

 

	
             
 	
            (l)
 	
            “Deferred Stock Unit” means the right to receive one Share pursuant to Section 8 of this Plan.
 

 

	
             
 	
            (m)
 	
            “Disability” means the disability of a Participant such that the Participant is unable due to a physical or mental illness or condition that is expected to be of a duration of twelve (12) months or more to perform the essential duties of a member of the Board.
 

 

	
             
 	
            (n)
 	
            “Exchange Act” means the Securities Exchange Act of 1934, as amended; “Exchange Act Rule 16b-3” means Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act as in effect with respect to the Company or any successor regulation.
 

 

3

	
             
 	
            (o)
 	
            “Fair Market Value” means, on a given date, (i) if there should be a public market for the Shares on such date, the closing sale price of the Shares on The New York Stock
Exchange, or, if the Shares are not listed or admitted on any national securities exchange, the arithmetic mean of the per Share closing bid price and per Share closing asked price on such date as quoted on the National Association of Securities Dealers Automated Quotation System (or such market in which such prices are regularly quoted) (the “NASDAQ”), or, if no sale of Shares shall have been reported on The New York Stock Exchange or quoted on the NASDAQ on such date, then the immediately preceding date on which sales of the Shares have been so reported or quoted shall be used, and (ii) if there should not be a public market for the Shares on such date, the Fair Market Value shall be the value established by the Committee in good faith.

 

	
             
 	
            (p)
 	
            “Fundamental Change” means a dissolution or liquidation of the Company, a sale of substantially all of the assets of the Company, a merger or consolidation of the Company with or into any other corporation, regardless of whether the Company is the surviving corporation, or a statutory share exchange involving capital stock of the Company.
 

 

	
             
 	
            (q)
 	
            “Initial Award” means an Option or Stock Appreciation Right granted pursuant to Section 7(b) of this Plan.
 

 

	
             
 	
            (r)
 	
            “Meeting” means a regular or special meeting of the Board or of a committee of the Board on which a particular Participant serves.
 

 

	
             
 	
            (s)
 	
            “Non-Employee Director” means a member of the Board who is not an employee of the Company or any Affiliate.
 

 

	
             
 	
            (t)
 	
            “Option” means a right to purchase Stock granted pursuant to Sections 5 and 7 of this Plan.
 

 

	
             
 	
            (u)
 	
            “Participant” means any Non-employee Director to whom an Award is made.
 

 

	
             
 	
            (v)
 	
            “Plan” means this 1998 Outside Director Stock Compensation Plan, as amended and in effect from time to time.
 

 

	
             
 	
            (w)
 	
            “Plan Year” means the period from September 1 of any year through the following August 31. Effective Septmber 1, 2007 the Plan Year shall be a short year ending on April 25, 2008 and thereafter the Plan Year shall correspond to the Company’s fiscal year. 
 

 

	
             
 	
            (x)
 	
            “Pro-Ration Factor” means: (A) in the case of a Participant who is a Non-Employee Director for the entire Plan Year in question and attends at least 75 percent of the Meetings that occur during such Plan Year (such Meetings, the “Plan Year Meetings”), 100 percent; (B) in the case of a Participant who is a  
 

 

4

Non-Employee Director for only a portion of a Plan Year and attends at least 75 percent of the Meetings that occur during that portion of a Plan Year (such meetings, the “Applicable Meetings”), a percentage determined by dividing the number of Applicable Meetings by the total number of Plan Year Meetings for that Plan Year; and (C) in the case of a Non- Employee Director who fails to satisfy the Meeting attendance requirement of clause (A) or (B), as applicable, 75 percent of the percentage specified in clause (A) or (B), as applicable.

 

	
             
 	
            (y)
 	
            “Share” means a share of common stock of the Company, $.10 par value per share.
 

 

	
             
 	
            (z)
 	
            “Stock Appreciation Right” means a stock appreciation right granted pursuant to Sections 6 and 7 of this Plan.
 

 

	
             
 	
            (aa)
 	
            “Subsidiary” means a “subsidiary corporation,” as that term is defined in Section 424(f) of the Code, or any successor provision.
 

 

	
             
 	
            (bb)
 	
            “Successor” with respect to a Participant means a court appointed conservator or guardian of a Participant; if the Participant is deceased, the legal representative of the estate of the Participant; or the person or persons who may, by bequest or inheritance, or pursuant to a transfer permitted under Section 9(d) of this Plan, acquire the right to exercise an Option or Stock Appreciation Right or receive Shares issuable in satisfaction of Deferred Stock Units in the event of the Participant’s death.
 

 

	
             
 	
            (cc)
 	
            “Term” means the period during which an Award may be exercised. Except when otherwise indicated by the context, reference to the masculine gender shall include, when used, the feminine gender and any term used in the singular shall also include the plural.
 

 

	
            3.
 	
            Administration.
 

 

	
             
 	
            (a)
 	
            Authority of Committee. The Committee or its delagee shall administer this Plan. The Committee shall have the authority to interpret this Plan and any Award or Agreement made under this Plan, to establish, amend, waive and rescind any rules and regulations relating to the administration of this Plan (including without limitation the manner in which Participants shall make elections provided for herein), to determine the terms and provisions of any Agreements entered into hereunder (not inconsistent with this Plan), and to make all other determinations necessary or advisable for the administration of this Plan. The Committee may correct any defect, supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent it shall deem desirable. The determinations of the Committee in the
administration of this Plan, as described herein, shall be final, binding and conclusive.
 

 

5

	
             
 	
            (b)
 	
            Indemnification. To the full extent permitted by law, each member and former member of the Committee and each person to whom the Committee delegates or has delegated authority under this Plan shall be entitled to indemnification by the Company against and from any loss, liability, judgment, damage, cost and reasonable
expense incurred by such member, former member or other person by reason of any action taken, failure to act or determination made in good faith under or with respect to this Plan.

 

	
            4.
 	
            In General.
 

 

	
             
 	
            (a)
 	
            Shares Available. The number of Shares available for distribution under this Plan is 3,000,000 (subject to adjustment under Section 9(f) hereof). Any Shares subject to the terms and conditions of an Award under this Plan which are not used because the terms and conditions of the Award are not met may again be used for an Award under this Plan. Any undistributed portion of any terminated, expired, exchanged, exercised or forfeited Award or any portion of an Award settled in cash in lieu of Shares shall be available for further Awards.
 

 

	
             
 	
            (b)
 	
            No Fractional Shares. No fractional Shares may be issued under this Plan; fractional Shares will be rounded to the nearest whole Share.
 

 

	
             
 	
            (c)
 	
            Rights as Shareholder. A participant shall have no rights as a shareholder with respect to any securities covered by an Award until the date the Participant becomes the holder of record.
 

 

	
            5.
 	
            Options.
 

 

	
             
 	
            (a)
 	
            Agreements. Each Option granted under this Plan shall be evidenced by an Option Agreement setting forth the terms and conditions thereof.
 

 

	
             
 	
            (b)
 	
            Discretionary Options. The Board or the Committee may, in its discretion, at any time or from time to time grant to any Non-Employee Director an Option to purchase such number of Shares, on such terms and conditions, as it shall determine.
 

 

	
             
 	
            (c)
 	
Purchase Price; Term
and Exercisability of Options. The purchase price of each share subject to an Option shall be the Fair
Market Value of a Share as of the date the Option is granted. Options granted to a Non-Employee Director under this Section 5
shall vest and be exercisable in full on the date of grant, except to the extent the Board or Committee provides otherwise in the
Option Agreement; provided, however, that in no event shall a Non-Employee
Director initially appointed by the Board be entitled to exercise an Option unless, and until such  
 

 

6

time as, such director shall
have been elected to the Board by the shareholders of the Company. Notwithstanding the foregoing, except as otherwise provided in
the Option Agreement, vesting of an Option granted to a Non-Employee Director who shall have been elected by the shareholders of
the Company shall accelerate and shall become immediately exercisable in full upon the occurrence of a Change in Control or in the event that the Non-Employee Director ceases to serve as a director of the Company due to death, Disability, resignation or retirement under the policies of the Company then in effect. Options shall expire no later than the ten-year anniversary date of the Option’s grant; provided, that an Option granted to a Non-Employee Director initially appointed by the Board shall expire on the date such director ceases to be a director of the Company unless such director shall have been elected by the shareholders subsequent to the grant of the Initial Award to such director.

 

	
             
 	
            (d)
 	
            Payment of Option Price. The purchase price of the Shares with respect to which an Option is exercised shall be payable in full at the time of exercise; provided, that to the extent permitted by law, Participants may simultaneously exercise Options and sell the Shares thereby acquired pursuant to a brokerage or similar relationship and use the proceeds from such sale to pay the purchase price of such Shares. The purchase price may also be paid in cash, or by delivery to the Company of Shares held by such Participant for at least six months before such exercise (in each case, such Shares having a Fair Market Value as of the date the Option is exercised equal to the purchase price of the Shares being purchased pursuant to the Option), or a combination thereof, in the discretion of the
Participant. In no event shall any Option be exercisable at any time after its Term. When an Option is no longer exercisable, it shall be deemed to have lapsed or terminated.
 

 

	
            6.
 	
            Stock Appreciation Rights.
 

 

	
             
 	
            (a)
 	
            Agreements. Each Stock Appreciation Right granted under this Plan shall be evidenced by an Agreement setting forth the terms and conditions thereof.
 

 

	
             
 	
            (b)
 	
            Discretionary Grant of Stock Appreciation Right. The Board or the Committee may, in its discretion, at any time or from time to time grant to any Non-Employee Director a Stock Appreciation Right (“Stock Appreciation Right”), on such terms and conditions, as it shall determine.
 

 

	
             
 	
            (c)
 	
Term and
Exercisability of Stock Appreciation Rights. Stock Appreciation Rights granted to a Non-Employee Director
under this Section 6 shall vest and be exercisable in full on the date of grant, except to the extent the Board or Committee
provides otherwise in the Stock Appreciation Right agreement; provided, however,
that in no event shall a Non-Employee Director initially appointed by the Board be entitled to exercise a Stock Appreciation Right
unless, and until such time as, such director shall have been elected to the Board  
 

 

7

by the shareholders of the Company.
Notwithstanding the foregoing, except as otherwise provided in the Stock Appreciation Right agreement, vesting of a Stock
Appreciation Right granted to a Non-Employee Director who shall have been elected by the shareholders of the Company shall
accelerate and shall become immediately exercisable in full upon the occurrence of a Change in Control or in the event that the
Non-Employee Director ceases to serve as a director of the Company due to death, Disability, resignation or retirement under the
policies of the Company then in effect. Stock Appreciation Rights shall expire no later than the ten-year anniversary date of the
Stock Appreciation Rights’ grant; provided, that a Stock Appreciation Right
granted to a Non-Employee Director initially appointed by the Board shall expire on the date such director ceases to be a director
of the Company unless such director shall have been elected by the shareholders subsequent to the grant of the Initial Award to
such director.

 

	
             
 	
            (d)
 	
            Settlement of Appreciation Right. Upon exercise of an Appreciation Right, the Participant shall receive Shares with an aggregate value determined by multiplying the number of Appreciation Rights units being exercised, by the excess of (i) the Fair Market Value of a Share as of the date of exercise over (ii) the Fair Market Value of a Share as of the date of the Award.
 

 

	
            7.
 	
            Initial and Annual Awards.
 

 

	
             
 	
            (a)
 	
            General. Each Non-Employee Director shall automatically be granted an Initial Award and Annual Award. Such Awards may take the form of an Option or Stock Appreciation Right as determined by the Committee from time to time. The provisions of Section 5 or 6 respectively shall govern the Option or Stock Appreciation Rights Agreement except as otherwise provided in this Section 7.
 

 

	
             
 	
            (b)
 	
            Initial Award. Each Non-Employee Director shall automatically be granted on the date such director first becomes a director an “Initial Award” for a number of units determined by dividing (i) two times the amount of the Annual Retainer as in effect immediately following such election or appointment by (ii) the Fair Market Value of a Share on the date of grant. No increase in the Annual Retainer of the Non-Employee Directors after a person becomes a Non-Employee Director shall increase the number of units subject to the Initial Award granted to such Non-Employee Director. An employee of the Company or an Affiliate who terminates such employment and thereafter becomes a Non-Employee Director is not entitled to receive an Initial Award but will be entitled to receive Annual Awards. A Non-Employee Director is not entitled
to receive more than one Initial Award during his or her lifetime. For purposes of Section 7(b) and 7(c) a unit shall represent an Option or Stock Appreciation Right with respect to one share of Stock.
 

 

8

	
             
 	
            (c)
 	
Annual Awards. On the first day of each Plan Year, each Non-Employee Director shall automatically be granted an
Annual Award for a number of units equal to (i) the amount of the Annual Retainer in effect as of such day, divided by
(ii) the Fair Market Value of a Share on the first day of the Plan Year. If there is an increase in the Annual Retainer after
the Annual Award is granted in a given year, each Non-Employee Director shall automatically be granted, as of the date such
increase is approved, a supplemental Annual Award for the number of units equal to (i) the amount of the increase in such
Annual Retainer divided by (ii) the Fair Market Value of a Share on the date of the grant. In the event that a Non-Employee
Director joins the Board in the middle of the Plan Year, then such Non-Employee Director shall automatically be granted an Annual
Award for a number of units equal to (i) the product obtained by multiplying the amount of the Annual Retainer in effect as
of such day by a fraction the numerator of which is the number of days remaining in the Plan Year as of the day such Non-Employee
Director commenced her or his term as a Non-Employee Director and the denominator of which is 365, divided by (ii) the Fair
Market Value of a Share on the day that such Non-Employee Director commenced her or his term as a Non-Employee Director.

 

	
             
 	
            (d)
 	
            Term and Exercisability of Awards. Initial Awards and Annual Awards shall expire on the fifth anniversary of the date the Non-Employee Director ceases to be a director of the Company for any reason, if earlier than the tenth anniversary of the date of the grant of the Award; and provided, further, that the Initial Award granted to a Non-Employee Director initially appointed by the Board shall expire on the date such director ceases to be a director of the Company unless such director shall have been elected by the shareholders subsequent to the grant of the Initial Award to such director.
 

 

	
            8.
 	
            Deferred Stock Units.
 

 

	
             
 	
            (a)
 	
            Annual Credit. As of the last day of each Plan Year, there shall be credited to the Account of each Participant who is a Non-Employee Director on such day a number of Deferred Stock Units equal to (i) the Annual Retainer in effect as of such day, times the Pro-Ration Factor, divided by (ii) the average of the Fair Market Value of a Share on each of the last 20 trading days during such Plan Year determined in accordance with clause (i) of Section 2(o) or, if clause (i) of Section 2(o) is inapplicable, the Fair Market Value of a Share as of the last day of such Plan Year determined in accordance with clause (ii) of Section 2(o). There shall be credited to the Account of any Non-Employee Director who retires from the Board prior to the last day of the Plan Year, as of the retirement date, a number of
Deferred Stock Units equal to (i) the Annual Retainer in effect as of such date, times the Pro-Ration Factor, divided by (ii) the average of the Fair Market Value of a Share on each of the last 20 trading days during such Plan Year determined in accordance with Section 2(o).
 

 

9

	
             
 	
            (b)
 	
            Discretionary Credits. The Board or the Committee may, in its discretion, at any time and from time to time, cause additional Deferred Stock Units to be credited to the account of any Non-Employee Director.
 

 

	
             
 	
            (c)
 	
Credits of Dividend
Equivalents; Maintenance of Accounts. The Company shall maintain an Account for each Participant to which
the credits provided for in Sections 8(a) and (b) above shall be made. Each Participant’s Account shall be credited
from time to time with additional Deferred Stock Units to reflect deemed reinvestment of any amounts that would have been paid as
cash dividends with respect to the Deferred Stock Units held in such Account if they were Shares. Subject to the provisions of
Section 8(d) regarding delivery of Shares, Accounts may be credited with fractional Deferred Stock Units pursuant to this
Section 8(c) and Sections 8(a) and (b).

 

	
             
 	
            (d)
 	
            Delivery of Shares from Accounts.
 

 

	
             
 	
            (i)
 	
            Each Participant shall be provided the opportunity to elect, in accordance with procedures established by the Committee in compliance with the requirements of Section 409A of the Internal Revenue Code, whether to receive the amounts credited to the Participant’s Account in a single lump sum or in five annual installments. Such election shall be made no later than the December 31 prior to the Plan Year in which the Deferred Stock Units are earned (or such later date permitted under Section 409A of the Internal Revenue Code); provided, however, that in the case of a newly appointed director such election may be made within 30 days of the date of such appointment. Once made, such an election may be changed on or before December 31 of any year, but such changed election shall take effect only with respect to Awards for the Plan Year
beginning after such change. If no election is made for a Plan Year, the amounts credited to a Participant’s account with respects to Awards for such year shall be delivered in a lump sum.
 

 

	
             
 	
            (ii)
 	
The balance in a
Participant’s Account shall be delivered to the Participant or the Participant’s Successor in the form of Shares as soon
as practicable after, or beginning as soon as practicable after, the date on which the Participant ceases for any reason to be a
member of the Board (the “Termination Date”). If a Participant has elected a lump sum delivery, or if a Participant dies
while a member of the Board, the Participant or the Participant’s Successor, as applicable, shall receive a number of Shares
equal to the total number of Deferred Stock Units in the Participant’s Account as of the Termination Date in full
satisfaction of all of the Participant’s interest in the Account; provided,
that any fractional Deferred Stock Units shall be rounded to the nearest higher whole number of Shares. If a Participant has
elected installment delivery and ceases to be a member of the Board for any reason other than the death of the Participant, then
the Participant shall receive the balance in  
 

 

10

such Participant’s Account in
the form of five annual deliveries of Shares (and if a Participant dies after ceasing to be a Board member, any remaining annual
deliveries shall be made to the Participant’s Successor). The precise number of shares delivered in each installment shall be
determined in such a manner as to cause each such delivery to represent approximately one-fifth of the Deferred Stock Units held
in such Account as of the Termination Date together with any dividend equivalents credited thereon. Notwithstanding the foregoing,
no such installment shall be delivered unless and until the Board or the Committee shall have approved the delivery (unless such
approval is not necessary under Exchange Act Rule 16b-3).

 

	
             
 	
            (iii)
 	
            Notwithstanding the foregoing, the balance in all Participants’ Accounts shall be delivered to the Participants in a single lump sum delivery of Shares upon the occurrence of any change of control as defined under Section 409A of the Internal Revenue Code and any controlling guidance issued under that section.
 

 

	
            9.
 	
            General Provisions.
 

 

	
             
 	
            (a)
 	
            Effective Date of this Plan. This Plan originally became effective as of March 5, 1998.
 

 

	
             
 	
            (b)
 	
            Duration of this Plan. This Plan shall remain in effect until it is terminated pursuant to Section 9(e) hereof.
 

 

	
             
 	
            (c)
 	
            No Right to Board Membership. Nothing in this Plan or in any Agreement shall confer upon any Participant the right to continue as a member of the Board.
 

 

	
             
 	
            (d)
 	
Transferability. A non-Employee Director may transfer an Award granted pursuant to
Section 5, 6, or 7 to any member of such Non-Employee Director’s “immediate family” (as such term is
defined in Rule 16a-1(e) promulgated under the Exchange Act, or any successor rule or regulation) or to one or more trusts
whose beneficiaries are members of such Non-Employee Director’s “immediate family” or partnerships in which such
family members are the only partners; provided, that (i) the transferor
receives no consideration for the transfer and (ii) such transferred Award shall continue to be subject to the same terms and
conditions as were applicable to such Award immediately prior to its transfer. Unless an award granted pursuant to
Section 5, 6, or 7 shall have expired, in the event of a Non-Employee Director’s death, an Award granted to such
Non-Employee Director pursuant to Section 5, 6, or 7 shall be transferable to the beneficiary, if any, designated by the
Non-Employee Director in writing to the Company prior to the Non-Employee Director’s death and such beneficiary shall succeed
to the rights of the Non-Employee Director to the extent permitted 
 

 

11

by law. If no such designation of a
beneficiary has been made, the Non-Employee Director’s legal representative shall succeed to such Award, which shall be
transferable by will or pursuant to the laws of descent and distribution.

 

	
             
 	
            (e)
 	
Amendment,
Modification and Termination of this Plan. Except as provided in this Section 9(e), the Board may at
any time amend, modify, terminate or suspend this Plan or any or all Agreements under this Plan to the extent permitted by law. No
termination, suspension or modification of this Plan may materially and adversely affect any right acquired by any Participant (or
a Participant’s legal representative) or any Successor under an Award granted before the date of termination, suspension or
modification, unless otherwise agreed by the Participant in the Agreement or otherwise or required as a matter of law. It is
conclusively presumed that any adjustment for changes in capitalization provided for in Section 9(f) hereof does not
adversely affect any right of a Participant under an Award.

 

	
             
 	
            (f)
 	
            Adjustment for Changes in Capitalization. Appropriate adjustments in the aggregate number and type of Shares available for Awards under this Plan, in the number and type of Shares subject to Awards then outstanding and in the Award exercise or conversion price as to any outstanding Awards and in the number of Deferred Stock Units in the Accounts, may be made by the Committee in its sole discretion to give effect to adjustments made in the number or type of Shares through a Fundamental Change, recapitalization, reclassification, stock dividend, stock split, stock combination, or other relevant change, provided that fractional Shares shall be rounded to the nearest whole Share.
 

 

	
             
 	
            (g)
 	
Fundamental
Change. In the event of a proposed Fundamental Change: (a) involving a merger, consolidation or
statutory share exchange, unless appropriate provision shall be made (which the Board may, but shall not be obligated to, make)
for the protection of the outstanding Awards by the substitution of appropriate voting common stock of the corporation surviving
any such merger or consolidation or, if appropriate, the parent corporation of the Company or such surviving corporation, to be
issuable upon the exercise of Awards, or (b) involving the dissolution or liquidation of the Company, the Board may, but
shall not be obligated to, declare, at least twenty days prior to the occurrence of the Fundamental Change, and provide written
notice to each holder of an Award of the declaration, that each outstanding Award, whether or not then exercisable, shall be
canceled at the time of, or immediately prior to the occurrence of, the Fundamental Change in exchange for payment in cash to each
holder of such Award, within 20 days after the Fundamental Change. At the time of the declaration provided for in the
immediately preceding sentence, each Award shall immediately become fully vested and each person holding an Award shall have the
right, during the period preceding the time of cancellation of the Award, to exercise the Award in full or any portion thereof.
Payment to holders of Options for each Share covered by the canceled Option shall be equal to the amount, if any, by which the
Fair Market Value (as defined in this Section 9(g)) per Share exceeds the exercise price per Share covered by such 
 

 

12

Option.
Payment to holders of each cancelled Stock Appreciation Right shall be equal to the aggregate amount of appreciation, if any. In
the event of a declaration pursuant to this Section 9(g), each outstanding Award that shall not have been exercised prior to
the Fundamental Change shall be canceled at the time of, or immediately prior to, the Fundamental Change, as provided in the
declaration. Notwithstanding the foregoing, no person holding an Award shall be entitled to the payment provided for in this
Section 9(g) if such Award shall have previously expired. For purposes of this Section 9(g) only, “Fair Market
Value” per Share means the cash plus the fair market value, as determined in good faith by the Board, of the non-cash
consideration to be received per Share by the shareholders of the Company upon the occurrence of the Fundamental Change,
notwithstanding anything to the contrary provided in this Plan.

 

	
             
 	
            (h)
 	
            Limits of Liability.
 

 

	
             
 	
            (i)
 	
            Any liability of the Company to any Participant with respect to an Award shall be based solely upon contractual obligations created by this Plan and the Agreement.
 

 

	
             
 	
            (ii)
 	
            Except as may be required by law, neither the Company nor any member or former member of the Board or of the Committee, nor any other person participating (including participation pursuant to a delegation of authority under Section 3(a) hereof) in any determination of any question under this Plan, or in the interpretation, administration or application of this Plan, shall have any liability to any party for any action taken, or not taken, in good faith under this Plan.
 

 

	
             
 	
            (i)
 	
            Compliance with Applicable Legal Requirements. No certificate for Shares distributable pursuant to this Plan shall be issued and delivered unless the issuance of such certificate complies with all applicable legal requirements including, without limitation, compliance with the provisions of applicable state securities laws, the Securities Act of 1933, as amended and in effect from time to time or any successor statute, the Exchange Act and the requirements of the exchanges on which the Company’s Shares may, at the time, be listed.
 

 

	
             
 	
            (j)
 	
Removal for
Cause. Notwithstanding any other provision of this Plan, this Section 9(i) shall apply in the event a
Participant is removed from the Board for cause before a Change of Control. In such event: (i) all of the Participant’s
Awards shall immediately expire and be forfeited, and (ii) unless the Board or the Committee specifically determines
otherwise in connection with or after such removal, the balance in such Participant’s Account shall be delivered to the
Participant in a single lump sum delivery of Shares after the expiration of six months from the date of such removal. In addition,
if the Participant has received or been entitled to delivery of Shares pursuant to the exercise of an Award within six months
before such removal, the Board or the Committee, in its sole discretion, may require the Participant to return or forfeit all or a 
 

 

13

portion of such Shares and receive
back the exercise price (if any) paid therefor, or may require the Participant to pay to the Company the economic value of such
Shares less such exercise price, determined as of the date of the exercise of Awards in the event of any of the following
occurrences (whether before or after such removal): competition with the Company or any Affiliate, unauthorized disclosure of
material proprietary information of the Company or any Affiliate, a violation of applicable business ethics policies or business
policies of the Company or any Affiliate, or any other action or event that the Board may determine warrants such a requirement.
The Board’s or Committee’s right to require such return or forfeiture must be exercised within 90 days after the
later of the date of such removal or the discovery of such an occurrence, but in no event later than 15 months after such
removal.

 

	
            10.
 	
            Governing Law. To the extent that federal laws do not otherwise control, this Plan and all determinations made and actions taken pursuant to this Plan shall be governed by the laws of Minnesota and construed accordingly.
 

 

	
            11.
 	
            Severability. In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.
 

 

	
            12.
 	
            Effect of Prior Plan. From and after the Effective Date of this Plan, no further awards shall be made to Non-Employee Directors under the Company’s 1994 Stock Award Plan the “Prior Plan”). Thereafter, all grants and awards made under the Prior Plan prior to such Effective Date shall continue in accordance with the terms of the Prior Plan.
 

 

 

GP:2225256 v2

14

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