Document:

EXHIBIT 4.3

 

LA QUINTA INNS,
INC.

as the Company

 

and

 

U.S. TRUST COMPANY
OF TEXAS, N.A.

as Trustee

 

 

Indenture

 

Dated as of
September 15, 1995

 

 

 

TABLE
OF CONTENTS*

 

	
  ARTICLE 1

  
	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
   

  
	
  SECTION 1.1.

  	
  Definitions

  	
  1

  
	
  SECTION 1.2.

  	
  Other Definitions

  	
  8

  
	
  SECTION
  1.3.

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  9

  
	
  SECTION 1.4.

  	
  Rules of
  Construction

  	
  9

  
	
   

  
	
  ARTICLE 2

  
	
   

  
	
  THE SECURITIES

  
	
   

  
	
  SECTION 2.1.

  	
  Form

  	
  10

  
	
  SECTION
  2.2.

  	
  Execution
  and Authentication

  	
  10

  
	
  SECTION
  2.3.

  	
  Amount
  Unlimited; Issuable in Series

  	
  12

  
	
  SECTION
  2.4.

  	
  Denomination
  and Date of Securities; Payments of Interest

  	
  15

  
	
  SECTION
  2.5.

  	
  Registrar
  and Paying Agent; Agents Generally

  	
  16

  
	
  SECTION
  2.6.

  	
  Paying
  Agent to Hold Money in Trust

  	
  17

  
	
  SECTION 2.7.

  	
  Transfer and
  Exchange

  	
  18

  
	
  SECTION 2.8.

  	
  Replacement
  Securities

  	
  21

  
	
  SECTION 2.9.

  	
  Outstanding
  Securities

  	
  22

  
	
  SECTION 2.10.

  	
  Temporary
  Securities

  	
  23

  
	
  SECTION 2.11.

  	
  Cancellation

  	
  23

  
	
  SECTION 2.12.

  	
  CUSIP Numbers

  	
  24

  
	
  SECTION 2.13.

  	
  Defaulted Interest

  	
  24

  
	
  SECTION
  2.14.

  	
  Series May
  Include Tranches

  	
  24

  
				

 

* The Table of Contents shall not for any purposes be deemed to be a
part of the Indenture.

 

i

 

	
  ARTICLE 3

  
	
   

  
	
  REDEMPTION

  
	
   

  
	
  SECTION 3.1.

  	
  Applicability
  of Article

  	
  25

  

 

	
  SECTION
  3.2.

  	
  Notice
  of Redemption; Partial Redemptions

  	
  25

  
	
  SECTION
  3.3.

  	
  Payment
  of Securities Called for Redemption

  	
  27

  
	
  SECTION
  3.4.

  	
  Exclusion
  of Certain Securities from Eligibility for Selection for Redemption

  	
  28

  
	
  SECTION
  3.5.

  	
  Mandatory
  and Optional Sinking Funds

  	
  28

  
	
   

  
	
  ARTICLE 4

  
	
   

  
	
  COVENANTS

  
	
   

  
	
  SECTION 4.1.

  	
  Payment of
  Securities

  	
  31

  
	
  SECTION
  4.2.

  	
  Maintenance
  of Office or Agency

  	
  33

  
	
  SECTION 4.3.

  	
  Negative Pledge

  	
  34

  
	
  SECTION
  4.4.

  	
  Certain
  Sale and Lease-back Transactions

  	
  35

  
	
  SECTION 4.5.

  	
  Certificate to
  Trustee

  	
  37

  
	
  SECTION 4.6.

  	
  Reports by the
  Company

  	
  37

  
	
   

  
	
  ARTICLE 5

  
	
   

  
	
  SUCCESSOR
  CORPORATION

  
	
   

  
	
  SECTION 5.1.

  	
  When Company May
  Merge, Etc.

  	
  37

  
	
  SECTION 5.2.

  	
  Successor
  Substituted

  	
  38

  
	
   

  
	
  ARTICLE 6

  
	
   

  
	
  DEFAULT
  AND REMEDIES

  
	
   

  
	
  SECTION 6.1.

  	
  Events of Default

  	
  39

  
	
  SECTION 6.2.

  	
  Acceleration

  	
  40

  
	
  SECTION 6.3.

  	
  Other Remedies

  	
  42

  
	
  SECTION 6.4.

  	
  Waiver of Past
  Defaults

  	
  43

  
	
  SECTION 6.5.

  	
  Control by Majority

  	
  43

  
	
  SECTION 6.6.

  	
  Limitation on Suits

  	
  43

  
	
  SECTION
  6.7.

  	
  Rights
  of Holders to Receive Payment

  	
  44

  
	
  SECTION 6.8.

  	
  Collection
  Suit by Trustee

  	
  44

  
	
  SECTION
  6.9.

  	
  Trustee
  May File Proofs of Claim

  	
  45

  
	
  SECTION 6.10.

  	
  Application of
  Proceeds

  	
  45

  
	
  SECTION
  6.11.

  	
  Restoration
  of Rights and Remedies

  	
  46

  
	
  SECTION 6.12.

  	
  Undertaking for
  Costs

  	
  47

  
	
  SECTION
  6.13.

  	
  Rights
  and Remedies Cumulative

  	
  47

  
	
  SECTION
  6.14.

  	
  Delay or
  Omission Not Waiver

  	
  47

  
				

 

ii

 

	
  ARTICLE 7

  
	
   

  
	
  TRUSTEE

  
	
   

  
	
  SECTION 7.1.

  	
  General

  	
  48

  
	
  SECTION 7.2.

  	
  Certain Rights
  of Trustee

  	
  48

  
	
  SECTION
  7.3.

  	
  Individual
  Rights of Trustee

  	
  50

  
	
  SECTION 7.4.

  	
  Trustee’s
  Disclaimer

  	
  50

  
	
  SECTION 7.5.

  	
  Notice of Default

  	
  51

  
	
  SECTION
  7.6.

  	
  Reports by
  Trustee to Holders

  	
  51

  
	
  SECTION 7.7.

  	
  Compensation
  and Indemnity

  	
  51

  
	
  SECTION 7.8.

  	
  Replacement of
  Trustee

  	
  53

  
	
  SECTION
  7.9.

  	
  Successor
  Trustee by Merger, Etc

  	
  54

  
	
  SECTION 7.10.

  	
  Eligibility

  	
  54

  
	
  SECTION 7.11.

  	
  Money Held in Trust

  	
  54

  
	
   

  
	
  ARTICLE 8

  
	
   

  
	
  DISCHARGE
  OF INDENTURE

  
	
   

  
	
  SECTION
  8.1.

  	
  Defeasance
  Within One Year of Payment

  	
  55

  
	
  SECTION 8.2.

  	
  Defeasance

  	
  56

  
	
  SECTION 8.3.

  	
  Covenant Defeasance

  	
  57

  
	
  SECTION 8.4.

  	
  Application
  of Trust Money

  	
  58

  
	
  SECTION 8.5.

  	
  Repayment to
  Company

  	
  59

  
	
   

  
	
  ARTICLE 9

  
	
   

  
	
  AMENDMENTS, SUPPLEMENTS
  AND WAIVERS

  
	
   

  
	
  SECTION 9.1.

  	
  Without
  Consent of Holders

  	
  59

  
	
  SECTION 9.2.

  	
  With Consent of
  Holders

  	
  60

  
	
  SECTION
  9.3.

  	
  Revocation
  and Effect of Consent

  	
  62

  
	
  SECTION
  9.4.

  	
  Notation
  on or Exchange of Securities

  	
  63

  
	
  SECTION
  9.5.

  	
  Trustee
  to Siam Amendments, Etc

  	
  63

  
	
  SECTION
  9.6.

  	
  Conformity
  with Trust Indenture Act

  	
  63

  
				

 

iii

 

	
  ARTICLE 10

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  
	
  SECTION
  10.1.

  	
  Trust
  Indenture Act of 1939

  	
  63

  
	
  SECTION 10.2.

  	
  Notices

  	
  64

  
	
  SECTION
  10.3.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  65

  
	
  SECTION
  10.4.

  	
  Statements
  Required in Certificate or Opinion

  	
  65

  
	
  SECTION 10.5.

  	
  Evidence of
  Ownership

  	
  67

  
	
  SECTION 10.6.

  	
  Rules by Trustee,
  Paying Agent or Registrar

  	
  68

  
	
  SECTION
  10.7.

  	
  Payment
  Date Other Than a Business Day

  	
  68

  
	
  SECTION 10.8.

  	
  Governing Law

  	
  68

  
	
  SECTION
  10.9.

  	
  No
  Adverse Interpretation of Other Agreements

  	
  68

  
	
  SECTION 10.10.

  	
  Successors

  	
  68

  
	
  SECTION 10.11.

  	
  Duplicate
  Originals

  	
  68

  
	
  SECTION 10.12.

  	
  Separability

  	
  68

  
	
  SECTION 10.13.

  	
  Table of Contents,
  Headings, Etc

  	
  69

  
	
  SECTION 10.14.

  	
  Incorporators,
  Shareholders, Officers and Directors of Company Exempt from Individual
  Liability

  	
  69

  
	
  SECTION 10.15.

  	
  Judgment Currency

  	
  69

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  71

  

 

iv

 

INDENTURE, dated
as of September 15, 1995, between La Quinta Inns, Inc., a Texas corporation, as
the Company, and U.S. Trust Company of Texas, N.A., a national banking
association, as Trustee.

 

RECITALS
OF THE COMPANY

 

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

 

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

 

NOW, THEREFORE:

 

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

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION BY
REFERENCE

 

SECTION 1.1.  Definitions.  “Agent” means any Registrar, Paying Agent,
transfer agent or Authenticating Agent.

 

“Attributable
Debt” means, when used in connection with a sale and lease-back transaction
referred to in Section 4.4, on any date as of which the amount thereof is to be
determined, the product of (a) the net proceeds from such sale and lease-back
transaction multiplied by (b) a fraction, the numerator of which is the number
of full years of the term of the lease relating to the property involved in
such sale and lease-back transaction (without regard to any options to renew or
extend such term) remaining on the date of the making of such computation and
the denominator of which is the number of full years of the term of such lease
measured from the first day of such term.

 

 

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

 

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

 

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

 

“Capital Stock”
means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or
nonvoting) of such Person’s capital stock or equity, including, without
limitation, all Common Stock and Preferred Stock.

 

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

 

2

 

“Common Stock”
means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or
nonvoting) of such Person’s common stock; whether now outstanding or issued
after the date of this Indenture, including, without limitation, all series and
classes of such common stock.

 

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

 

“Combined Net
Worth” means, at any date of determination, the combined shareholders’ equity
of the Company, as set forth on the then most recently available combined
balance sheet of the Company and its combined subsidiaries and joint ventures.

 

“Corporate Trust
office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered,
which office is, at the date of this Indenture, located at 2001 Ross Avenue,
Suite 2700, Dallas, Texas 75201-2936, Attention: Corporate Trust
Administration.

 

“Default” means
any Event of Default as defined in Section 6.1 and any event that is, or after
notice or passage of time or both would be, an Event of Default.

 

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

 

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

 

“Exempted Debt”
means the sum, without duplication, of the following items outstanding as of
the date Exempted Debt is being determined: 
(i) indebtedness of the Company and its Restricted Subsidiaries incurred
after the date of this Indenture and secured by liens created or assumed or
permitted to exist pursuant to Section 4.3 (b) and (ii) Attributable Debt of
the

 

3

 

Company and its
Restricted Subsidiaries in respect of all sale and lease-back transactions with
regard to any Principal Property entered into pursuant to Section 4.4(b).

 

“Funded Debt”
means all indebtedness for money borrowed, including purchase money
indebtedness, having a maturity of more than one year from the date of its
creation or having a maturity of less than one year but by its terms being
renewable or extendible, at the option of the obligor in respect thereof,
beyond one year from the date of its creation.

 

“GAAP” means
generally accepted accounting principles in the United States of America at the
date of any computation required or permitted hereunder.

 

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

 

“Indenture” means
this Indenture as originally executed or as it may be amended or supplemented
from time to time by one or more indentures supplemental to this Indenture
entered into pursuant to the applicable provisions of this Indenture and shall
include the forms and terms of the Securities of each series established as
contemplated pursuant to Sections 2.1 and 2.3.

 

“Investment” means
any investment in any Person, whether by means of share purchase, capital
contribution, loan, time deposit or otherwise.

 

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

 

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

 

4

 

“Officers’
Certificate” means a certificate signed in the name of the Company (i) by the
chairman of the board of directors, the president or chief executive officer or
a vice president and (ii) by the chief financial officer, the treasurer or any
assistant treasurer, or the secretary or any assistant secretary, complying
with Section 10.4 and delivered to the Trustee. Each such certificate shall
comply with Section 314 of the Trust Indenture Act and include (except as
otherwise expressly provided in this Indenture) the statements provided in
Section 10.4.

 

“Opinion of
Counsel” means a written opinion signed by legal counsel, who may be an
employee of or counsel to the Company, satisfactory to the Trustee and
complying with Section 10.4. Each such opinion shall comply with Section 314 of
the Trust Indenture Act and include the statements provided in Section 10.4, if
and to the extent required thereby.

 

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

 

“Original Issue
Discount Security” means any Security that provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.2.

 

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

 

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

 

“Preferred Stock”
means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting)
of such Person’s preferred or preference stock, whether now outstanding or
issued after the date of the 

5

 

Indenture,
including, without limitation, all series and classes of such preferred or preference
stock.

 

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

 

“Principal
Property” means land, land improvements, buildings and associated equipment
owned or leased pursuant to a capital lease and used by the Company or a
Restricted subsidiary primarily in the hotel business, but shall not include
any such property financed through the issuance of tax exempt governmental
obligation (including, without limitation, industrial revenue bonds and similar
financings).

 

“Registered Global
Security” means a Security evidencing all or a part of a series of Registered
Securities, issued to the Depositary for such series in accordance with Section
2.2, and bearing the legend prescribed in Section 2.2.

 

“Registered
Security” means any Security registered on the Security Register (as defined in
Section 2.5).

 

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

 

“Restricted
Subsidiary” means any Subsidiary organized and existing under the laws of the
United States of America and the principal business of which is carried on
within the United States of America which owns or is a lessee pursuant to a
capital lease of any Principal Property other than:

 

(i)         each Subsidiary the major part of whose
business consists of finance, banking, credit, leasing, insurance, financial
services or other similar operations, or any combination thereof;

 

(ii)        each Subsidiary formed or acquired after
the date hereof for the purpose of acquiring the business or assets of another
Person and which does not acquire all or any

 

6

 

substantial part
of the business or assets of the Company or any Restricted Subsidiary; and

 

(iii)       the following unincorporated partnerships
and joint ventures: La Quinta — Houston I.H. 10, Ltd.; La Quinta San Antonio —
South Joint Venture; La Quinta Austin Motor Hotel, Ltd.; La Quinta — Dallas
Central Expressway, Ltd.; LQ Motor Inn Venture -Austin No. 530; La Quinta —
Wichita, Kansas, No. 532, Ltd.; and LQ — West Bank Joint Venture;

 

provided,
however, that any Subsidiary may be declared a Restricted Subsidiary by
Board Resolution, effective as of the date such Board Resolution is adopted; provided
further, that any such declaration may be rescinded by further Board
Resolution, effective as of the date such further Board Resolution is adopted.

 

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

 

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

 

“Subsidiary”
means, with respect to any Person, any corporation, association or other
business entity of which more than 50% of the outstanding Voting Stock is
owned, directly or indirectly, by such Person and one or more other
Subsidiaries of such Person.

 

“Trustee” means
the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of Article 7 and thereafter
means such successor.

 

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

 

“UCC” means the
Uniform Commercial Code, as in effect in each applicable jurisdiction.

 

“United States
Bankruptcy Code” means the Bankruptcy Reform Act of 1978, as amended and as
codified in Title 11 of the United States Code, as amended from time to time
hereafter, or any successor federal bankruptcy law.

 

7

 

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

 

“U.S. Government
Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged
or (ii) obligations of an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government obligation or a specific payment of interest on or
principal of any such U.S. Government obligation held by such custodian for the
account of the holder of a depository receipt; provided that (except as
required by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government obligation or the
specific payment of interest on or principal of the U.S. Government obligation
evidenced by such depository receipt.

 

“Voting Stock”
means with respect to any Person, Capital Stock of any class or kind ordinarily
having the power to vote for the election of directors, managers or other
voting members of the governing body of such Person.

 

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

 

SECTION 1.2.  Other Definitions.  Each of the following terms is defined in
the section set forth opposite such term:

 

	
  Term

  	
  Section

  
	
  Authenticating
  Agent

  	
  2.2

  
	
  cash transaction

  	
  7.3

  
	
  Dollars

  	
  4.2

  
	
  Event of Default

  	
  6.1

  
	
  Judgment
  Currency

  	
  10.15

  
	
  mandatory
  sinking fund payment

  	
  3.5

  
	
  optional sinking
  fund payment

  	
  3.5

  
	
  Paying Agent

  	
  2.5

  
	
  record date

  	
  2.4

  
	
  Registrar

  	
  2.5

  
	
  Required
  Currency

  	
  10.15

  
	
  Security
  Register

  	
  2.5

  
	
  self-liquidating
  paper

  	
  7.3

  
	
  sinking fund
  payment date

  	
  3.5

  
	
  tranche

  	
  2.14

  

 

8

 

SECTION 1.3.  Incorporation by Reference of Trust
Indenture Act.  Whenever this Indenture refers to a
provision of the Trust Indenture Act, the provision is incorporated by
reference in and made a part of this Indenture. The following terms used in
this Indenture that are defined by the Trust Indenture Act have the following
meanings:

 

“indenture
securities” means the Securities;

 

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

 

“indenture to be
qualified” means this Indenture;

 

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

 

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

 

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

 

SECTION 1.4.  Rules
of Construction.  Unless the context otherwise requires:

 

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

 

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

 

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

 

9

 

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

 

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

 

ARTICLE 2

 

THE SECURITIES

 

SECTION 2.1.  Form. The Securities of each
series shall be substantially in such form or forms (not inconsistent with this
Indenture) as shall be established by or pursuant to one or more Board
Resolutions or in one or more indentures supplemental hereto, in each case with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture and may have imprinted or otherwise
reproduced thereon such legend or legends or endorsements, not inconsistent
with the provisions of this Indenture, as may be required to comply with any
law, or with any rules of any securities exchange or usage, all as may be
determined by the officers executing such Securities as evidenced by their
execution of the Securities. Unless otherwise so established, Unregistered
Securities shall have coupons attached.

 

SECTION 2.2.  Execution and Authentication. Two
officers shall execute the Securities (other than coupons) for the Company by
facsimile or manual signature in the name and on behalf of the Company. The
seal of the Company, if any, shall be reproduced on the Securities. If an
Officer whose signature is on a Security no longer holds that office at the
time the Security is authenticated, the Security shall nevertheless be valid.

 

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

 

A Security (other
than coupons) shall not be valid until the Trustee or Authenticating Agent
manually signs the certificate of authentication on the Security. The signature
shall be

 

10

 

conclusive
evidence that the Security has been authenticated under this Indenture.

 

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

 

(1)        any Board Resolution and/or executed
supplemental indenture referred to in Sections 2.1 and 2.3 by or pursuant to
which the forms and terms of the Securities of that series were established;

 

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

 

(3)        at the option of the Company, either an
Opinion of Counsel, or a letter addressed to the Trustee permitting it to rely
on an opinion of Counsel, substantially to the effect that the Securities have
been duly authorized and, if executed and authenticated in accordance with the
provisions of the Indenture and delivered to and duly paid for by the
purchasers thereof on the date of such opinion, would be entitled to the
benefits of-the Indenture and would be valid and binding obligations of the
Company, enforceable against the Company in accordance with their respective
terms, subject to bankruptcy, insolvency, reorganization, receivership,
moratorium and other similar laws affecting creditors’ rights generally,
general principles of equity, and such other matters as shall be specified
therein.

 

11

 

If the Company shall establish pursuant to Section 2.3
that the Securities of a series or a portion thereof are to be issued in the
form of one or more Registered Global Securities, then the company shall
execute and the Trustee shall authenticate and deliver one or more Registered
Global Securities that (i) shall represent and shall be denominated. in an
amount equal to the aggregate principal amount of all of the Securities of such
series issued in such form and not yet canceled, (ii) shall be registered in
the name of the Depositary for such Registered Global Security or securities or
the nominee of such Depositary, (iii) shall be delivered by the Trustee to such
Depositary or its custodian or pursuant to such Depositary’s instructions and
(iv) shall bear a legend substantially to the following effect: “Unless and until
it is exchanged in whole or in part for Securities in definitive registered
form, this Security may not be transferred except as a whole by the Depositary
to the nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary.”

 

SECTION 2.3.  Amount Unlimited; Issuable in Series. The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited.

 

The Securities may
be issued in one or more series and each such series shall rank equally and
pari passu with all other unsecured and unsubordinated debt of the Company.
There shall be established in or pursuant to Board Resolution or one or more
indentures supplemental hereto, prior to the initial issuance of Securities of
any series, subject to the last sentence of this Section 2.3,

 

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

 

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

 

12

 

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

 

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

 

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

 

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

 

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

 

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

 

(9)        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;

 

(10)      if other than the coin or currency in
which the Securities of the series are denominated, the coin or currency in
which payment of the principal of or interest on the 

 

13

 

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

 

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

 

(12)      whether the Securities of the series or
any portion thereof will be issuable as Registered Securities (and if so,
whether such Securities will be issuable as Registered Global Securities) or
Unregistered Securities (with or without coupons), or any combination of the
foregoing, any restrictions applicable to the offer, sale or delivery of
Unregistered Securities or the payment of interest thereon and, if other than
as provided herein, the terms upon which Unregistered Securities of any series
may be exchanged for Registered Securities of such series and vice versa;

 

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

 

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

 

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

 

14

 

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

 

(17)      if the Securities of the series are
issuable in whole or in part as one or more Registered Global Securities, the
identity of the Depositary for such Registered Global Security or Securities
(which Depositary shall, at the time of its designation as Depositary and at
all times while it serves as Depositary, be a clearing agency registered under
the Exchange Act and any other applicable statute or regulation);

 

(18)      any other events of default or covenants
with respect to the Securities of the series; and

 

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

 

All Securities of
any one series and coupons, if any, appertaining thereto shall be substantially
identical, except in the case of Registered Securities as to date and
denomination, except in the case of any Periodic Offering and except as may
otherwise be provided by or pursuant to the Board Resolution referred to above
or as set forth in any such indenture supplemental hereto. All Securities of
any one series need not be issued at the same time and may be issued from time
to time, consistent with the terms of this Indenture, if so provided by or
pursuant to such Board Resolution or in any such indenture supplemental hereto
and any forms and terms of Securities to be issued from time to time may be
completed and established from time to time prior to the issuance thereof by
procedures described in such Board Resolution or supplemental indenture.

 

SECTION 2.4.  Denomination and Date of Securities;
Payments of Interest. The Securities of each
series shall be issuable as Registered Securities or Unregistered Securities in
denominations established as contemplated by Section 2.3 or, if not so
established with respect to Securities of any series, in denominations of
$1,000 and any integral multiple thereof. The Securities of each series shall
be numbered, lettered or otherwise distinguished in such manner or in
accordance with such plan as the Officers of the Company executing the same may
determine,

 

15

 

as evidenced by their execution thereof.

 

Each Security
shall be dated the date of its authentication. The Securities of each series
shall bear interest, if any, from the date, and such interest and shall be
payable on the dates, established as contemplated by Section 2.3.

 

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

 

SECTION 2.5.  Registrar and Paying Agent; Agents
Generally.
The Company shall maintain an office or agency where Securities may be
presented for registration, registration of transfer or for exchange (the
“Registrar”) and an office or agency where Securities may be presented for
payment (the “Paying Agent”), which shall be in the Borough of Manhattan, The
City of New York. The Company shall cause the Registrar to keep a register of
the Registered Securities and of their registration, transfer and exchange (the
“Security Register”). The Company may have one or more additional Paying
Agents or transfer agents with respect to any series.

 

The Company shall
enter into an appropriate agency agreement with any Agent not a party to this
Indenture. The agreement shall implement the provisions of this Indenture and
the Trust Indenture Act that relate to such Agent. The Company shall give
prompt written notice to the Trustee of the name and address of any Agent and
any change in the name or address of an Agent. If the Company fails to maintain
a Registrar or Paying Agent, the Trustee shall act as

 

16

 

such.  The Company may remove any Agent upon
written notice to such Agent and the Trustee; provided that no such
removal shall become effective until (i) the acceptance of an appointment by a
successor Agent to such Agent as evidenced by an appropriate agency agreement
entered into by the Company and such successor Agent and delivered to the
Trustee or (ii) notification to the Trustee that the Trustee shall serve as
such Agent until the appointment of a successor Agent in accordance with clause
(i) of this proviso. The Company or any affiliate of the Company may act as
Paying Agent or Registrar; provided that neither the Company nor an
affiliate of the company shall act as Paying Agent in connection with the
defeasance of the Securities or the discharge of this Indenture under Article
8.

 

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

 

SECTION 2.6.  Paying Agent to Hold Money in Trust. Not
later than 10:00 a.m. New York City time on each due date of any Principal or
interest on any Securities, the Company shall deposit with the Paying Agent
money in immediately available funds sufficient to pay such Principal or
interest. The Company shall require each Paying Agent other than the Trustee to
agree in writing that such Paying Agent shall hold in trust for the benefit of
the Holders of such Securities or the Trustee all money held by the Paying
Agent for the payment of Principal of and interest on such Securities and shall
promptly notify the Trustee of any default by the Company in making any such
payment. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee and account for any funds disbursed, and the Trustee
may at any time during the continuance of any payment default, upon written
request to a Paying Agent, require such Paying Agent to pay all money held by
it to the Trustee and to account for any funds disbursed. Upon doing so, the Paying
Agent shall have no further liability for the money so paid over to the
Trustee. If the Company or any affiliate of the Company acts as Paying Agent,
it will, on or before each due date of any Principal of or interest on any
Securities, segregate and hold in a separate trust fund for the benefit of the
Holders thereof a sum of money sufficient to pay such Principal or interest so
becoming due until such sum of money shall be paid to such Holders or otherwise
disposed of as provided in this Indenture, and will promptly notify the

 

17

 

Trustee in writing
of its action or failure to act as required by this Section.

 

SECTION 2.7.  Transfer
and Exchange. Unregistered Securities
(except for any temporary global Unregistered Securities) and coupons (except
for coupons attached to any temporary global Unregistered Securities) shall be
transferable by delivery.

 

At the option of
the Holder thereof, Registered Securities of any series (other than a
Registered Global Security, except as set forth below) may be exchanged for a
Registered Security or Registered Securities of such series and tenor having
authorized denominations and an equal aggregate principal amount, upon
surrender of such Registered Securities to be exchanged at the agency of the
Company that shall be maintained for such purpose in accordance with Section
2.5 and upon payment, if the Company shall so require, of the charges
hereinafter provided. If the Securities of any series are issued in both registered
and unregistered form, except as otherwise established pursuant to Section 2.3,
at the option of the Holder thereof, Unregistered Securities of any series may
be exchanged for Registered Securities of such series and tenor having
authorized denominations and an equal aggregate principal amount, upon
surrender of such Unregistered Securities to be exchanged at the agency of the
Company that shall be maintained for such purpose in accordance with Section
4.2, with, in the case of Unregistered Securities that have coupons attached,
all unmatured coupons and all matured coupons in default thereto appertaining,
and upon payment, if the Company shall so require, of the charges hereinafter
provided. At the option of the Holder thereof, if Unregistered Securities of
any series, maturity date, interest rate and original issue date are issued in
more than one authorized denomination, except as otherwise established pursuant
to Section 2.3, such Unregistered Securities may be exchanged for Unregistered
Securities of such series and tenor having authorized denominations and an
equal aggregate principal amount, upon surrender of such Unregistered
Securities to be exchanged at the agency of the Company that shall be
maintained for such purpose in accordance with Section 4.2, with, in the case
of Unregistered Securities that have coupons attached, all unmatured coupons
and all matured coupons in default thereto appertaining, and upon payment, if
the Company shall so require, of the charges hereinafter provided. Registered
Securities of any series may not be exchanged for Unregistered Securities of
such series. Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the
Securities which the

 

18

 

Holder making the
exchange is entitled to receive.

 

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

 

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

 

Notwithstanding
any other provision of this Section 2.7, unless and until it is exchanged in
whole or in part for Securities in definitive registered form, a Registered
Global Security representing all or a portion of the securities of a series may
not be transferred except as a whole by the Depositary for such series to a
nominee of such Depositary or by a nominee of such Depositary to such
Depositary or another nominee of such Depositary or by such Depositary or any
such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

 

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

 

The Company may at
any time and in its sole discretion determine that any Registered Global
Securities of any series shall no longer be maintained in global form.

 

19

 

In such event the
Company will execute, and the Trustee, upon receipt of the Company’s order for
the authentication and delivery of definitive Registered Securities of such
series and tenor, will authenticate and deliver, Registered Securities of such
series and tenor in any authorized denominations, in an aggregate principal
amount equal to the principal amount of such Registered Global Securities, in
exchange for such Registered Global Securities.

 

Any time the
Registered Securities of any series are not in the form of Registered Global
Securities pursuant to the preceding two paragraphs, the Company agrees to
supply the Trustee with a reasonable supply of certificated Registered
Securities without the legend required by Section 2.2 and the Trustee agrees to
hold such Registered Securities in safekeeping until authenticated and
delivered pursuant to the terms of this Indenture.

 

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

 

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

 

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

 

Registered
Securities issued in exchange for a Registered Global Security pursuant to this
Section 2.7 shall be registered in such names and in such authorized
denominations as the Depositary for such Registered Global Security, pursuant
to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee or an agent of the Company or the

 

20

 

Trustee. The
Trustee or such agent shall deliver such Securities to or as directed by the
Persons in whose names such Securities are so registered.

 

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

 

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

 

Neither the
Registrar nor the Company shall be required (i) to issue, authenticate,
register the transfer of or exchange Securities of any series for a period of
15 days before a selection of such Securities to-be redeemed or (ii) to
register the transfer of or exchange any Security selected for redemption in
whole or in part.

 

SECTION 2.8.  Replacement Securities. If a
defaced or mutilated Security of any series is surrendered to the Trustee or if
a Holder claims that its Security of any series has been lost, destroyed or
wrongfully taken, the Company shall, subject to the further provisions of this
Section 2.8, issue and the Trustee shall authenticate a replacement Security of
such series and tenor and principal amount bearing a number not
contemporaneously outstanding. The Company may charge such Holder for any tax
or other governmental charge that may be imposed as a result of or in
connection with replacing a Security and for its expenses land the expenses of
the Trustee (including without limitation attorneys’ fees and expenses) in
replacing a Security. In case any such mutilated, defaced, lost, destroyed or
wrongfully taken Security has become or is about to become due and payable, the
Company in its discretion may pay such Security instead of issuing a new
Security in replacement thereof. If required by the Trustee or the Company, (i)
an indemnity bond must be furnished that is sufficient in the judgment of both
the Trustee and 

 

21

 

the Company to
protect the Company, the Trustee and any Agent from any loss that any of them
may suffer if a security is replaced or paid as provided in this Section 2.8
and (ii) in the case of a lost, destroyed or wrongfully taken security,
evidence must be furnished to the satisfaction of both the Trustee and the Company
of the loss, destruction or wrongful taking of such Security. Notwithstanding
the foregoing, the company and the Trustee shall have no obligation to replace
or pay a Security pursuant to this Section 2.8 if either the, Company or the
Trustee has notice that such Security has been acquired by a bona fide
purchaser.

 

Every replacement
Security is an additional obligation of the Company and shall be entitled to
the benefits of this Indenture.

 

To the extent
permitted bylaw, the foregoing provisions of this Section are exclusive with
respect to the replacement or payment of mutilated, destroyed, lost or
wrongfully taken Securities.

 

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

 

If a Security is
replaced pursuant to Section 2.8, it ceases to be outstanding unless and until
the Trustee and the Company receive proof satisfactory to them that the
replaced Security is held by a holder in due course.

 

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

 

A Security does
not cease to be outstanding because the company or one of its affiliates holds
such Security, provided, however, that, in determining whether
the Holders of the requisite principal amount of the outstanding Securities
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Securities owned by the Company or any affiliate of the
Company shall be disregarded and deemed not to be outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only
Securities as to which a Responsible

 

22

 

Officer of the
Trustee has received written notice to be so owned shall be so disregarded. Any
securities so owned which are pledged by the Company, or by any affiliate of
the Company, as security for loans or other obligations, otherwise than to
another such affiliate of the Company, shall be deemed to be outstanding, if
the pledgee is entitled pursuant to the terms of its pledge agreement and is
free to exercise in its or his discretion the right to vote such securities,
uncontrolled by the Company or by any such affiliate.

 

SECTION 2.10.  Temporary Securities. Until
definitive Securities of any series are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities of such series.
Temporary Securities of any series shall be substantially in the form of
definitive Securities of such series but may have insertions, substitutions,
omissions and other variations determined to be appropriate by the Officers
executing the temporary Securities, as evidenced by their execution of such
temporary Securities. If temporary Securities of any series are issued, the
Company will cause definitive Securities of such series to be prepared without
unreasonable delay. After the preparation of definitive Securities of any
series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series and tenor upon surrender of such temporary
Securities at the office or agency of the Company designated for such purpose
pursuant to Section 4.2, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities of any series the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of such series and
tenor and authorized denominations. Until so exchanged, the temporary Securities
of any series shall be entitled to the same benefits under this Indenture as
definitive Securities of such series.

 

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

 

23

 

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

 

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

 

SECTION 2.13.  Defaulted Interest. If the
‘Company defaults in a payment of interest on the Securities, it shall pay, or
shall deposit with the Paying Agent money in immediately available funds
sufficient to pay, the defaulted interest plus (to the extent lawful) any
interest payable on the defaulted interest (as may be specified in the terms
thereof, established pursuant to Section 2.3) to the Persons who are Holders on
a subsequent special record date, which shall mean the 15th day next
preceding the date fixed by the Company for the payment of defaulted interest,
whether or not such day is a Business Day. At least 15 days before such special
record date, the Company shall mail to each Holder and to the Trustee a notice
that states the special record date, the payment date and the amount of
defaulted interest to be paid.

 

SECTION 2.14.  Series May Include Tranches. A
series of Securities may include one or more tranches (each a “tranche”)
of Securities, including Securities issued in a Periodic Offering. The
Securities of different tranches may have one or more different terms,
including authentication ‘dates and public offering prices, but all the
Securities within each such tranche shall have identical terms, including
authentication date and public offering price. Notwithstanding any other
provision of this Indenture, with respect to Sections 2.2 (other than the
fourth paragraph thereof) through 2.4, 2.7, 2.8, 2.10, 3.1 through 3.5, 4.2,
6.1 through 6.14, 8.1 through 8.5 and 9.2, if any series of Securities includes
more than one tranche, all provisions of such sections applicable to any series
of Securities shall be deemed equally applicable to each tranche of any series
of Securities in the same manner as though originally designated a series
unless otherwise provided with respect to such series or tranche pursuant to
Section 2.3. In particular, and without limiting the scope of the next
preceding sentence, any of the provisions of such sections which provide for or
permit action to be taken with respect to a series of Securities shall also be
deemed to provide for and permit such action to be taken instead only with
respect 

 

24

 

to Securities of
one or more tranches within that series (and such provisions shall be deemed
satisfied thereby), even if no comparable action is taken with respect to
Securities in the remaining tranches of that series.

 

ARTICLE 3

 

REDEMPTION

 

SECTION 3.1.  Applicability of Article. The
provisions of this Article shall be applicable to the Securities of any series
which are redeemable before their maturity or to any sinking fund for the
retirement of Securities of a series except as otherwise specified as
contemplated by Section 2.3 for Securities of such series.

 

SECTION 3.2.  Notice of Redemption; Partial Redemptions. Notice
of redemption to the Holders of Registered Securities of any series to be
redeemed as a whole or in part at the option of the Company shall be given by
mailing notice of such redemption by first class mail, postage prepaid, at
least 30 days and not more than 60 days prior to the date fixed for redemption to
such Holders of Registered Securities of such series at their last addresses as
they shall appear upon the Securities Register. Notice of redemption to the
Holders of Unregistered Securities of any series to be redeemed as a whole or
in part who have filed their names and addresses with the Trustee pursuant to
Section 313(c)(2) of the Trust Indenture Act, shall be given by mailing notice
of such redemption, by first class mail, postage prepaid, at least 30 days and
not more than 60 days prior to the date fixed for redemption, to such Holders
at such addresses as were so furnished to the Trustee (and, in the case of any
such notice given by the Company, the Trustee shall make such information
available to the Company for such purpose). Notice of redemption to all other
Holders of Unregistered Securities of any series to be redeemed as a ‘whole or
in part shall be published in an Authorized Newspaper in The City of New York
or with respect to any Security the interest on which is based on the offered
quotations in the interbank Eurodollar market for dollar deposits in an
Authorized Newspaper in London, in each case, once in each of three successive
calendar weeks, the first publication to be not less than 30 days nor more than
60 days prior to the date fixed for redemption. Any notice which is mailed or
published in the manner herein provided shall be conclusively presumed to have
been duly given, whether or not the Holder receives the notice. Failure to give
notice by mail, or any defect in the notice to the

 

25

 

Holder of any
Security of a series designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Security
of such series.

 

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

 

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

 

Not later than
10:00 a.m. New York City time on the redemption date specified in the notice of
redemption given as provided in this Section, the Company will deposit with the
Trustee or with one or more Paying Agents (or, if the Company is acting as its
own Paying Agent, set aside, segregate and hold in trust as provided in Section
2.6) an amount of money in immediately available funds sufficient to redeem on
the redemption date all the Securities of such series so called for redemption
at the appropriate redemption price, together with accrued interest to the date
fixed for redemption. If less than all the outstanding Securities of a series
are to be redeemed, the Company will deliver to the Trustee at least 15 days
prior to the last date on which notice of redemption may be given to Holders
pursuant to the first paragraph of this Section 3.2 (or such shorter period as
shall be acceptable to the Trustee) an Officers’ Certificate (which need not
contain the statements required by Section 10.4) stating the aggregate
principal

 

26

 

amount of such
Securities to be redeemed. In case of a redemption at the election of the
Company prior to the expiration of any restriction on such redemption, the
company shall deliver to the Trustee, prior to the giving of any notice of
redemption to Holders pursuant to this Section, an Officers’ Certificate
stating that such redemption is not prohibited by such restriction.

 

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

 

SECTION 3.3.  Payment of Securities Called for
Redemption.
If notice of redemption has been-given as above provided, the Securities or
portions of Securities specified in such notice shall become due and payable on
the date and at the place stated in such notice at the applicable redemption
price, together with interest accrued to the date fixed for redemption, and on
and after such date (unless the Company shall default in the payment of such
Securities at the redemption price, together with interest accrued to such
date) interest on the Securities or portions of Securities so called for
redemption shall cease to accrue, and the unmatured coupons, if any,
appertaining thereto shall be void and, except as provided in Sections 7.11 and
8.4, such Securities shall cease from and after the date fixed for redemption
to be entitled to any benefit under this Indenture, and the Holders thereof
shall have no right in respect of such Securities except the right to receive
the redemption price thereof and unpaid interest to the date fixed for
redemption. On presentation and surrender of such Securities at a place of
payment specified in said notice, together with all coupons, if any,
appertaining thereto maturing after the date fixed for redemption, said
Securities or the specified portions thereof shall be paid and redeemed by the
Company at the applicable redemption price, together with interest accrued
thereon to the 

 

27

 

date fixed for
redemption; provided that payment of interest becoming due on or prior
to the date fixed for redemption shall be payable in the case of Securities
with coupons attached thereto, to the Holders of the coupons for such interest
upon surrender thereof, and in the case of Registered Securities, to the
Holders of such Registered Securities registered as such on the relevant record
date subject to the terms and provisions of Sections 2.4 and 2.13 hereof.

 

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

 

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

 

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

 

SECTION 3.4.  Exclusion of Certain Securities from
Eligibility for Selection for Redemption.
Securities shall be excluded from eligibility for selection for redemption if
they are identified by registration and certificate number in a written
statement signed by an authorized officer of the Company and delivered to the
Trustee at least .40 days prior to the last date on which notice of redemption
may be given as being owned of record and beneficially by, and not pledged or hypothecated
by either (a) the Company or (b) an entity specifically identified in such
written statement as directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company.

 

SECTION 3.5.  Mandatory and optional Sinking Funds. The
minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as 

 

28

 

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

 

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

 

On or before the
sixtieth day next preceding each sinking fund payment date for any series, or
such shorter period as shall be acceptable to the Trustee, the Company will
deliver to the Trustee an Officers’ Certificate (a) specifying the portion of
the mandatory sinking fund payment to be satisfied by payment of cash and the
portion to be satisfied by credit of specified Securities of such series and
the basis for such credit, (b) stating that none of the specified Securities of
such series has theretofore been so credited, (c) stating that no defaults in
the payment of interest or Events of Default with respect to such series have
occurred (which have not been waived or cured) and are continuing and (d)
stating whether or not the Company intends to exercise its right to make an
optional sinking fund payment with respect to such series and, if so,
specifying the amount of such optional sinking fund payment which the Company
intends to pay on or before the next succeeding sinking fund payment date. Any
Securities of such series to be credited and required to be delivered to the
Trustee in order for the Company to be entitled to credit therefor as aforesaid
which have not theretofore been delivered to the Trustee shall be delivered for
cancellation pursuant to Section 2.11 to the Trustee with such Officers’
Certificate (or reasonably promptly thereafter if acceptable to the Trustee).
Such Officers’ Certificate shall be irrevocable and upon its receipt by the
Trustee the Company shall become unconditionally

 

29

 

obligated to make
all the cash payments or delivery of securities therein referred to, if any, on
or before the next succeeding sinking fund payment date. Failure of the
Company, on or before any such sixtieth day, to deliver such Officer’s
Certificate and Securities specified in this paragraph, if any, shall not
constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Company (i) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be
paid entirely in cash without the option to deliver or credit Securities of
such series in respect thereof and (ii) that the Company will make no optional
sinking fund payment with respect to such series as provided in this Section.

 

If the sinking
fund payment or payments (mandatory or optional or both) to be made in cash on
the next succeeding sinking fund payment date plus any unused balance of any
preceding sinking fund payments made in cash shall exceed $50,000 (or a lesser
sum if the Company shall so request with respect to the Securities of any
series), such cash shall be applied on the next succeeding sinking fund payment
date to the redemption of Securities of such series at the sinking fund
redemption price thereof together with accrued interest thereon to the date
fixed for redemption. If such amount shall be $50,000 (or such lesser sum) or
less and the Company makes no such request then it shall be carried over until
a sum in excess of $50,000-(or such lesser sum) is available. The Trustee shall
select, in the manner provided in Section 3.2, for redemption on such sinking
fund payment date a sufficient principal amount of Securities of such series to
absorb said cash, as nearly as may be, and shall inform the Company of the
serial numbers of the Securities of such series (or portions thereof) so
selected. Securities shall be excluded from eligibility for redemption under
this section if they are identified by registration and certificate number in
an Officers’ Certificate delivered to the Trustee at least 60 days prior to the
sinking fund payment date as being owned of record and beneficially by, and not
pledged or hypothecated by either (a) the Company or (b) an entity specifically
identified in such officers’ Certificate as directly or indirectly controlling
or controlled by or under direct or indirect common control with the Company.
The Trustee, in the name and at the expense of the Company (or the Company, if
it shall so request the Trustee in writing) shall cause notice of redemption of
the Securities of such series to be given in substantially the manner provided
in Section 3.2 (and with the effect provided in Section 3.3) for the redemption
of Securities of such series in part at the option of the Company. The amount
of any sinking fund payments not so applied or allocated

 

30

 

to the redemption
of Securities of such series shall be added to the next cash sinking fund
payment for such series and, together with such payment, shall be applied in
accordance with the provisions of this Section. Any and all sinking fund moneys
held on the stated maturity date of the Securities of any particular series (or
earlier, if such maturity is accelerated), which are not held for the payment
or redemption of particular Securities of such series shall be applied,
together with other moneys, if necessary, sufficient for the purpose, to the
payment of the Principal of, and interest on, the Securities of such series at
maturity.

 

Not later than
10:00 a.m. New York City time on each sinking fund payment date, the Company
shall pay to the Trustee in cash or shall otherwise provide for the payment of
all interest accrued to the date fixed for redemption on Securities to be
redeemed on the next following sinking fund payment date.

 

The Trustee shall
not redeem or cause to be redeemed any Securities of a series with sinking fund
moneys or mail any notice of redemption of Securities of such series by
operation of the sinking fund during the continuance of a Default in payment of
interest on such Securities or of any Event of Default except that, where the
mailing of notice of redemption of any Securities shall theretofore have been
made, the Trustee shall-redeem or cause to be redeemed such Securities, provided
that it shall have received from the. Company a sum sufficient for such
redemption. Except as aforesaid, any moneys in the sinking fund for such series
at the time when any such Default or Event of Default shall occur, and any
moneys thereafter paid into the sinking fund, shall, during the continuance of
such Default or Event of Default, be deemed to have been collected under
Article 6 and held for the payment of all such Securities. In case such Event
of Default shall have been waived as provided in Section 6.4 or the Default
cured on or before the sixtieth day preceding the sinking fund payment date in
any year, such moneys shall thereafter be applied on the next succeeding
sinking fund payment date in accordance with this Section to the redemption of
such Securities.

 

ARTICLE 4

 

COVENANTS

 

SECTION 4.1.  Payment of Securities. The
Company shall pay the Principal of and interest on the Securities on the dates
and in the manner provided in the Securities and this

 

31

 

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

 

Notwithstanding
any provisions of this Indenture and the Securities of any series to the
contrary, if the Company and a Holder of any Registered Security so agree,
payments of interest on, and any portion of the Principal of, such Holder’s
Registered Security (other than interest payable at maturity or on any
redemption or repayment date or the final payment of Principal on such Security)
shall be made by the Paying Agent, upon receipt from the Company of immediately
available funds by 11:00 A.M., New York City time (or such other time as may be
agreed to between the Company and the Paying Agent), directly to the Holder of
such Security (by Federal funds wire transfer or otherwise) if the Holder has
delivered written instructions to the Trustee 15 days prior to such payment
date requesting that such payment will be so made and designating the bank
account to which such payments shall be so made and in the case of payments of
Principal surrenders the same to the Trustee in exchange for a Security or
Securities aggregating the same principal amount as the unredeemed principal
amount of the Securities surrendered. The Trustee shall be entitled to rely on
the last instruction delivered by the Holder pursuant to this Section 4.1
unless a new instruction is delivered 15 days prior to a payment date. The
Company will indemnify and hold each of the Trustee and any Paying Agent
harmless against any loss, liability or expense (including attorneys’ fees)
resulting from any act or omission to act on the part of the Company or any
such Holder in connection with any such agreement or from making any payment in
accordance with any such agreement.

 

32

 

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

 

SECTION 4.2.  Maintenance of Office or Agency. The
Company will maintain in the Borough of Manhattan, The City of New York, an
office or agency where Securities may be surrendered for registration of
transfer or exchange or for presentation for payment and where notices and
demands to or upon the Company in respect of the securities and this Indenture
may be served. The Company hereby initially designates the Corporate Trust
Office of the Trustee, located in the Borough of Manhattan, The City of New
York, as such office or agency of the Company. The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be
made or served at the address of the Trustee set forth in Section 10.2.

 

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

 

The Company may
also from time to time designate one or more other offices or agencies where
the Securities of any series may be presented or surrendered for any or all
such purposes

 

33

 

and may from time to
time rescind such designations; provided that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in the Borough of Manhattan, The City of New York
for such purposes. The Company will give prompt written notice to the. Trustee
of any such designation or rescission and of any change in the location of any
such other office or agency.

 

SECTION 4.3.  Negative Pledge.   (a) The Company will not, and will not
permit any Restricted Subsidiary to, create or incur Lien on any shares of
stock, indebtedness or other obligations of a Restricted Subsidiary or any
Principal Property of the Company or a Restricted Subsidiary, whether such
shares of stock, indebtedness or other obligations of a Restricted Subsidiary
or Principal Property are owned at date of this Indenture or hereafter
acquired, unless the Company secures or causes such Restricted Subsidiary to
secure the outstanding Securities equally and ratably with all indebtedness
secured by such Lien, so long such indebtedness shall be so secured; provided,
however, that this covenant shall not apply in the case of: (i) the creation of
any Lien on any shares of stock, indebtedness or other obligations of a
Subsidiary or any Principal Property hereafter acquired (including acquisitions
by way of merger or consolidation) by the Company or a Restricted Subsidiary
contemporaneously with such acquisition, or within 180 days thereafter, to
secure or provide for the payment or financing of any part of the purchase
price thereof, or the assumption of any Lien upon any shares of stock,
indebtedness or other obligations of a Subsidiary or any Principal Property
hereafter acquired existing at the time of such acquisition, or the acquisition
of any shares of stock, indebtedness or other obligations of a Subsidiary or
any Principal Property subject to any Lien without the assumption thereof, provided
that every such Lien referred to in this clause (i) shall attach only to the
shares of stock, indebtedness or other obligations of a Subsidiary or any
Principal Property so acquired and fixed improvements thereon; (ii) any, Lien
on any shares of stock, indebtedness or other obligations of a Subsidiary or
any Principal Property existing at the date of this Indenture; (iii) any Lien
on any s area of stock, indebtedness or other obligations of a Subsidiary or
any Principal Property in favor of the Company or any Restricted Subsidiary;
(iv) any Lien on any Principal Property being constructed or improved securing
loans to finance such construction or improvements; (v) any Lien on shares of
stock, indebtedness or other obligations of a Subsidiary or any Principal
Property incurred in connection with the issuance of tax-exempt governmental
obligations (including, without limitation, industrial revenue bonds and
similar financings); (vi) any

 

34

 

mechanics’,
materialmen’s, carriers’ or other similar Liens arising in the ordinary course
of business with respect to obligations which are not yet due or that are being
contested in good faith, (vii) any Lien on any shares of stock, indebtedness or
other obligations of a Subsidiary or any Principal Property for taxes,
assessments or governmental charges or levies not yet delinquent, or already
delinquent but the validity of which is being contested in good faith, (viii)
any Lien on any shares of stock, indebtedness or other obligations of a
Subsidiary or any Principal Property arising in connection with legal
proceedings being contested in good faith, including any judgment Lien so long
as execution thereon is stayed, (ix) any landlord’s Lien on fixtures located on
premises leased by the Company or a Restricted Subsidiary in the ordinary
course of business, and tenants’ rights under leases, easements and similar
Liens not materially impairing the use or value of the property involved, (x)
any Lien arising by reason of deposits necessary to qualify the Company or any
Restricted Subsidiary to conduct business, maintain self-insurance, or obtain
the benefit of, or comply with, any law, and (xi) any renewal of or
substitution for any Lien permitted by any of the preceding clauses (i) through
(x), provided, in the case of a Lien permitted under clause (i), (ii) or (iv),
the indebtedness secured is not increased nor the Lien extended to any
additional assets.

 

(b)        Notwithstanding the provisions of
paragraph (a) of this Section, the Company or any Restricted Subsidiary may
create or assume Liens in addition to those permitted by paragraph (a) of this
Section, and renew, extend or replace such liens, provided that at the time of
such creation, assumption, renewal, extension or replacement, and after giving
effect thereto, Exempted Debt does not exceed 15% Combined Net Worth.

 

SECTION 4.4.  Certain Sale and Lease-back Transactions.  (a) 
The Company will not, and will not hermit any Restricted Subsidiary to,
sell or transfer, directly or indirectly, except to the Company or a Restricted
Subsidiary, any Principal Property as an entirety, or any substantial portion
thereof, with the intention of taking back a lease of such property, except a
lease for a period of three years or less at the end of which it is intended
that the use of such property by the lessee will be discontinued; provided
that, notwithstanding the foregoing, the Company or any Restricted Subsidiary
may sell any such Principal Property and lease it back for a longer period 

 

35

 

(i) if the Company
or such Restricted Subsidiary would be entitled, pursuant to the provisions of
Section 4.3(a), to create a Lien on the property to be leased securing Funded
Debt in an amount equal to the Attributable Debt with respect to such sale and
lease-back transaction without equally and ratably securing the outstanding
Securities or (ii) if (A) the Company promptly informs the Trustee of such
transaction and (B) the Company causes an amount equal to the fair value (as
determined by Board Resolution of the Company) of such property to be applied
(1) to the purchase of other property that will constitute Principal Property
having a fair value at least equal to the fair value of the property sold or
(2) to the retirement, within 120 days after receipt of such proceeds, of
Funded Debt incurred or assumed by the Company or Restricted Subsidiary
(including the Securities); provided further that, in lieu of applying
all of or any part of such net proceeds to such retirement, the Company may,
within 75 days after such sale, deliver or cause to be delivered to the applicable
trustee for cancellation either debentures or notes evidencing Funded Debt of
the Company (which may include the Securities) or of a Restricted Subsidiary
previously authenticated and delivered by the applicable trustee, and not
theretofore tendered for sinking fund purposes or called for a sinking fund or
otherwise applied as a credit against an obligation to redeem or retire such
notes or debentures, and an Officers’ Certificate (which shall be delivered to
the Trustee and which need not contain the statements prescribed by Section
10.4) stating that the Company elects to deliver or cause to be delivered such
debentures or notes in lieu of retiring Funded Debt as hereinabove provided. If
the Company shall so deliver debentures or notes to the applicable trustee and
the Company shall duly deliver such Officers’ Certificate, the amount of cash
which the Company shall be required to apply to the retirement of Funded Debt
under this Section 4.4(a) shall be reduced by an amount equal to the aggregate of
the then applicable optional redemption prices (not including any optional
sinking fund redemption prices) of such debentures or notes, or, if there are
no such redemption prices, the principal amount of such debentures or notes; provided,
that in the case of debentures or notes which provide for an amount less than
the principal amount thereof to be due and payable upon a declaration of the
maturity thereof, such amount of cash shall be reduced by the amount of
principal of such debentures or notes that would be due and payable as of the
date of such application upon a declaration of acceleration of the maturity
thereof pursuant to the terms of the indenture pursuant to which such
debentures or notes were issued.

 

(b)        Notwithstanding the provisions of paragraph
(a) of this Section 4.4, the Company

 

36

 

or any Restricted
Subsidiary may enter into sale and lease-back transactions in addition to those
permitted by paragraph (a) of this Section 4.4 without any obligation to retire
any outstanding Securities or other Funded Debt, provided that at the
time of entering into such sale and lease-back transactions and after giving
effect thereto, Exempted Debt does not exceed 15% of Combined Net Worth.

 

SECTION 4.5.  Certificate to Trustee. The
Company will furnish to the Trustee annually, on or before a date not more than
four months after the end of its fiscal year (which, on the date hereof, is a
calendar year), a brief certificate (which need not contain the statements
required by Section 10.4) from its principal executive, financial or accounting
officer as to his or her knowledge of the compliance of the Company with all
conditions and covenants under this Indenture (such compliance to be determined
without regard to any period of grace or requirement of notice provided under
this Indenture) which certificate shall comply with the requirements of the
Trust Indenture Act.

 

SECTION 4.6.  Reports by the Company. The
Company covenants to file with the Trustee, within 15 days after the Company is
required to file the same with the Commission, copies of the annual reports and
of the information, documents, and other reports which the Company may be
required to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act.

 

ARTICLE 5

 

SUCCESSOR CORPORATION

 

SECTION 5.1.  When Company May Merge,
Etc. The Company shall not consolidate with, merge with or
into, or sell, convey, transfer, lease or otherwise dispose of all or
substantially all of its property and assets (as an entirety or substantially
as an entirety in one transaction or a series of related transactions) to, any
Person (other than a consolidation with or merger with or into a Subsidiary or
a sale, conveyance, transfer, lease or other disposition to a Subsidiary) or
permit any Person to merge with or into the Company unless:

 

(i)         either (x) the Company shall be the
continuing Person or (y) the Person (if other than the Company) formed by such
consolidation or into which the Company is merged or that acquired or leased
such property and assets of the company shall be a corporation organized and
validly existing under the laws of 

 

37

 

the United States
of America or any jurisdiction thereof and shall expressly assume, by a
supplemental indenture, executed and delivered to the Trustee, all of the
obligations of the Company on all of the Securities and under this indenture
and the Company shall have delivered to the Trustee an opinion of Counsel stating
that such consolidation, merger or transfer and such supplemental indenture
complies with this provision and that all conditions precedent provided for
herein relating to such transaction have been complied with and that such
supplemental indenture constitutes the legal, valid and binding obligation of
the Company or such successor enforceable against such entity in accordance
with its terms, subject to customary exceptions; and

 

(ii)        an Officers’ Certificate to the effect
that immediately after giving effect to such transaction, no Default shall have
occurred and be continuing and an opinion of Counsel as to the matters set
forth in Section 5.1(i) shall have been delivered to the Trustee.

 

SECTION 5.2.  Successor Substituted. Upon any
consolidation or merger, or any sale, conveyance; transfer, lease or other
disposition of all or substantially all of the property and assets of the
Company in accordance with Section 5.1 of this Indenture, the successor Person
formed by such consolidation or into which the Company is merged or to which
such sale, conveyance, transfer, lease or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the company under this Indenture with the same effect as if such successor
Person had been named as the Company herein. In the event of any such sale,
conveyance, transfer or other disposition (other than by way of lease) the
Company or any successor Person that shall theretofore have become such in the
manner described in this Article shall be discharged from all obligations and
covenants under this Indenture and the Securities and may be liquidated and
dissolved.

 

38

 

ARTICLE 6

 

DEFAULT
AND REMEDIES

 

SECTION 6.1.  Events of Default. An “Event
of Default” shall occur with respect to the Securities of any series if:

 

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

 

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

 

(c)        (i) default by the Company or any
Restricted Subsidiary in the payment when due at maturity of any Funded Debt
(other than Funded Debt that is nonrecourse to the Company and its Restricted
Subsidiaries) in excess of $15,000,000, whether such Funded Debt is outstanding
at the date of this Indenture or is hereafter outstanding, and the continuation
of such default for the greater of any period of grace applicable thereto or
ten days from the date of such default or (ii) an event of default, as defined in
any indenture, agreement or instrument evidencing or under which the Company
and/or any Restricted Subsidiary has at the date of this Indenture or shall
thereafter have outstanding at least $15,000,000 aggregate principal amount of
Funded Debt, shall happen and be continuing and such Funded Debt shall have
been accelerated so that the same shall be or become due and payable prior to
the date on which the same would otherwise have become due and payable, and
such acceleration shall not be rescinded or annulled or such indebtedness shall
not be discharged, within ten days;

 

(d)        the Company defaults in the performance
of or breaches any other covenant or agreement of the Company in this Indenture
with respect to any Security of such series or in the Securities of such series
and such default or breach continues for a period of 30 consecutive days after
written notice to the company by the Trustee or to the Company and the Trustee
by the Holders of 25% or more in aggregate principal amount of the Securities of
all series affected thereby;

 

39

 

(e)        an involuntary case or other proceeding
shall be commenced against the Company or any Restricted Subsidiary with
respect to it or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of it or any substantial part
of its property, any such involuntary case or other proceeding shall remain undismissed
and unstayed for a period of 60 days; or an order for relief shall be entered
against the Company or any Restricted Subsidiary under the federal bankruptcy
laws as now or hereafter in effect;

 

(f)         the Company or any Restricted
Subsidiary (A) commences a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consents to the
entry of an order for relief in an involuntary case under any such law, (B)
consents to the appointment of or taking possession by a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official of the Company
or any Restricted Subsidiary or for all or substantially all of the property
and assets of the Company or any Restricted Subsidiary or (C) effects any
general assignment for the benefit of creditors; or

 

(g)        any other Event of Default established
pursuant to Section 2.3 with respect to the Securities of such series occurs.

 

SECTION 6.2.  Acceleration.  (a) If an Event of Default described in clauses
(a) or (b) of Section 6.1 with respect to the Securities of any series then
outstanding occurs and is continuing, then, and in each and every such case,
except for any series of Securities the principal of which shall have already
become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of the Securities of any such affected series
then outstanding hereunder (each such series treated as a separate class) by
notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Securities of
any such series are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of such series established
pursuant to Section 2.3) of all Securities of such affected series, and the
interest accrued thereon, if any, to be due and payable immediately, and upon
any such declaration the same shall become immediately due and payable.

 

40

 

(b)        If an Event of Default described in
clauses (c), (d) or (g) of Section 6.1 with respect to the securities of one or
more but not all series then outstanding, or with respect to the Securities of
all series then outstanding, occurs and is continuing, then, and in each and
every such case, except for any series of Securities the principal of which
shall have already become due and payable, either the Trustee or the Holders of
not less than 25% in aggregate principal amount (or, if the Securities of any
such series are Original Issue Discount Securities, the amount thereof
accelerable under this Section) of the Securities of all such affected series
then outstanding hereunder (treated as a single class) by notice in writing to
the Company (and to the Trustee if given by Securityholders), may declare the
entire principal (or, if the Securities of any such series are Original Issue
Discount Securities, such portion of the principal amount as may be specified
in the terms of such series established pursuant to Section 2.3) of all
Securities of all such affected series, and the interest accrued thereon, if
any, to be due and payable immediately, and upon any such declaration the same
shall become immediately due and payable.

 

(c)        If an Event of Default described in
clause (d) or (e) of Section 6.1 occurs and is continuing, then the principal
amount (or, if any Securities are Original Issue Discount Securities, such
portion of the principal as may be specified in the terms thereof established
pursuant to Section 2.3) of all the Securities then outstanding and interest
accrued thereon, if any, shall be and become immediately due and payable,
without any notice or other action by any Holder or the Trustee, to the full
extent permitted by applicable law.

 

The foregoing
provisions, however, are subject to the condition that if, at any time after
the principal (or, if the Securities are Original Issue Discount Securities,
such portion of the principal as may be specified in the terms thereof
established pursuant to Section 2.3) of the Securities of any series (or of all
the Securities, as the case may be) shall have been so declared due and
payable, and before any judgment or decree for the payment of the moneys due
shall have been obtained or entered as hereinafter provided, the Company shall
pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Securities of each such series (or of all
the Securities, as the case may be) and the principal of any and all Securities
of each such series (or of all the Securities, as the case may be) which shall
have become due otherwise than by acceleration (with interest upon such
principal and, to the

 

41

 

extent that
payment of such interest is enforceable under applicable law, on overdue
installments of interest, at the same rate as the rate of interest or Yield to
Maturity (in the case of original Issue Discount Securities) specified in the
Securities of each such series to the date of such payment or deposit) and such
amount as shall be sufficient to cover all amounts owing the Trustee under
Section 7.7, and if any and all Events of Default under the Indenture, other
than the non-payment of the principal of Securities which shall have become due
by acceleration, shall have been cured, waived or otherwise remedied as
provided herein, then and in every such case the Holders of a majority in
aggregate principal amount of all the then outstanding Securities of all such series
that have been accelerated (voting as a single class), by written notice to the
Company and to the Trustee, may waive all defaults with respect to all such
series (or with respect to all the Securities, as the case may be) and rescind
and annul such declaration and its consequences, but no such waiver or
rescission and annulment shall extend to or shall affect any subsequent default
or shall impair any right consequent thereon.

 

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

 

SECTION 6.3.  Other Remedies. If a payment
default or an Event of Default with respect to the Securities of any series
occurs and is continuing, the Trustee may pursue, in its own name or as trustee
of an express trust, any available remedy by proceeding at law or in equity to
collect the payment of principal of and interest on the Securities of such
series or to enforce the performance of any provision of the Securities of such
series or this Indenture.

 

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

 

42

 

SECTION 6.4.  Waiver
of Past Defaults. Subject to Sections 6.2,
6.7 and 9.2, the Holders of at least a majority in principal amount (or, if the
Securities are original Issue Discount Securities, such portion of the
principal as is then accelerable under Section 6.2) of the outstanding
Securities of all series affected (voting as a single class), by notice to the
Trustee, may waive, on behalf of the Holders of all the Securities of such
series, an existing Default or Event of Default with respect to the securities
of such series and its consequences, except a Default in the payment of
Principal of or interest on any Security as specified in clauses (a) or (b) of
Section 6.1 or in respect of a covenant or provision of this Indenture which
cannot be modified or amended without the consent of the Holder of each
outstanding Security affected. Upon any such waiver, such Default shall cease
to exist, and any Event of Default with respect to the Securities of such
series arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereto.

 

SECTION 6.5.  Control by Majority. Subject to
Sections 7.1 and 7.2(v), the Holders of at least a majority in aggregate
principal amount (or, if any Securities are Original Issue Discount Securities,
such portion of the principal as is then accelerable under Section 6.2) of the
outstanding Securities of all series affected (voting as a single class) may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the Trustee
with respect to the Securities of such series by this Indenture; provided,
that the Trustee may refuse to follow any direction that conflicts with law or
this Indenture, that may involve the Trustee in personal liability or that the
Trustee determines in good faith may be unduly prejudicial to the rights of
Holders not joining in the giving of such direction; and provided further,
that the Trustee may take any other action it deems proper that is not
inconsistent with any directions received from Holders of Securities pursuant
to this Section 6.5.

 

SECTION 6.6.  Limitation on Suits. No Holder of
any Security of any series may institute any proceeding, judicial or otherwise,
with respect to this Indenture or the Securities of such series, or for the appointment
of a receiver or trustee, or for any other remedy hereunder, unless:

 

43

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION 6.7.  Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
of a Security to receive payment of Principal of or interest, if any, on such
Holder’s Security on or after the respective due dates expressed on such
Security, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

 

SECTION 6.8.  Collection Suit by Trustee. If an
Event of Default with respect to the Securities of any series in payment of
Principal or interest specified in clause (a) or (b) of Section 6.1 occurs and
is continuing, the Trustee may recover judgment in its own name and as trustee
of an express trust against the Company for the whole amount (or such portion
thereof as specified in the terms established pursuant to Section 2.3 of
original Issue Discount Securities) of Principal of, and accrued interest
remaining unpaid on, together with interest on overdue Principal of, and, to the
extent that payment of such interest is lawful, interest on overdue

 

44

 

installments of
interest on, the Securities of such series, in each case at the rate or Yield
to Maturity (in the case of Original Issue Discount Securities) specified in
such Securities, and such further amount as shall be sufficient to cover all
amounts owing the Trustee under Section 7.7.

 

SECTION 6.9.  Trustee May File Proofs of Claim. In the
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for amounts due the Trustee under Section 7.7) and the Holders
allowed in any judicial proceedings relative to the Company (or any other
obligor on the Securities), its creditors or its property and shall be entitled
and empowered to collect and receive any moneys, securities or other property
payable or deliverable upon conversion or exchange of the Securities or upon
any such claims and to distribute the same, and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it under Section 7.7. Nothing herein contained shall be deemed to
empower the Trustee to authorize or consent to, or accept or adopt on behalf of
any Holder, any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or the rights of any Holder thereof, or to authorize
the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

SECTION 6.10.  Application of Proceeds. Any
moneys collected by the Trustee pursuant to this Article in respect of the
Securities of any series shall be applied in the following order at the date or
dates fixed by the Trustee and, in case of the distribution of such moneys on
account of Principal or interest, upon presentation of the several Securities
and coupons appertaining to such Securities in respect of which moneys have
been collected and noting thereon the payment, or issuing Securities of such
series and tenor in reduced principal amounts in exchange for the presented
Securities of such series and tenor if only partially paid, or upon surrender
thereof if fully paid:

 

45

 

FIRST:   To the payment of all amounts due the
Trustee under Section 7.7 applicable to the Securities of such series in
respect of which moneys have been collected;

 

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

 

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

 

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

 

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

 

46

 

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

 

SECTION 6.12.  Undertaking for Costs. In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, in
either case in respect to the Securities of any series, a court may require any
party litigant in such suit (other than the Trustee) to file an undertaking to
pay the costs of the suit, and the court may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant (other than the Trustee)
in the suit having due regard to the merits and good faith of the claims or
defenses made by the party litigant. This Section 6.12 does not apply to a suit
by a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in
principal amount of the outstanding Securities of such series.

 

SECTION 6.13.  Rights and Remedies Cumulative. Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or wrongfully taken Securities in Section 2.8, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

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

 

47

 

ARTICLE
7

 

TRUSTEE

 

SECTION 7.1.  General. The duties and
responsibilities of the Trustee shall be as provided by the Trust Indenture Act
and as set forth herein. Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, unless it receives
indemnity satisfactory to it against any loss, liability or expense. Whether or
not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Article 7.

 

SECTION 7.2.  Certain Rights of Trustee. Subject
to Trust Indenture Act Sections 315(a) through (d):

 

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

 

(ii)        before the Trustee acts or refrains from
acting, it may require an Officers’ Certificate and/or an opinion of Counsel,
which shall conform to Section 10.4. The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate
or opinion. Subject to Sections 7.1 and 7.2, whenever in the administration of
the trusts of this Indenture the Trustee shall deem it necessary or desirable
that a matter be proved or established prior to taking or suffering or omitting
any action hereunder, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may, in the absence of negligence or bad faith
on the part of the Trustee, be deemed to be conclusively proved and established
by an Officers’ Certificate delivered to the Trustee, and

 

48

 

such certificate,
in the absence of negligence or bad faith on the part of the Trustee, shall be
full warrant to the Trustee for any action taken, suffered or omitted by it
under the provisions of this Indenture upon the faith thereof;

 

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

 

(iv)       any request, direction, order or demand
of the Company mentioned herein shall be sufficiently evidenced by an Officers’
Certificate (unless other evidence in respect thereof be herein specifically
prescribed); and any Board Resolution may be evidenced to the Trustee by a copy
thereof certified by the secretary or an Assistant Secretary of the Company;

 

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

 

(vi)       the Trustee shall not be liable for any
action it takes or omits to take in good faith that it believes to be
authorized or within its rights or powers or for any action it takes or omits
to take in accordance with the direction of the Holders in accordance with
Section 6.5 relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture;

 

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

 

(viii)     prior to the occurrence of an Event of
Default hereunder and after the curing or waiving of all Events of Default, the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution,

 

49

 

certificate,
Officers’ Certificate, Opinion of Counsel, Board Resolution, statement,
instrument, opinion, report, notice, request, consent, order, approval,
appraisal, bond, debenture, note, coupon, security, or other paper or document,
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, during normal business hours and upon prior written
notice, the books, records and premises of the Company, personally or by agent
or attorney.

 

SECTION 7.3.  Individual Rights of Trustee. The
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with the Company or its Affiliates
with the same rights it would have if it were not the Trustee. Any Agent may do
the same with like rights. However, the Trustee is subject to Trust Indenture
Act Sections 310 (b) and 311. For purposes of Trust Indenture Act Section
311(b)(4) and (6), the following terms shall mean:

 

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

 

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

 

SECTION 7.4.  Trustee’s Disclaimer. The
recitals contained herein and in the Securities (except the Trustee’s
certificate of authentication) shall be taken as statements of the Company and
not of the Trustee and the Trustee assumes no responsibility for the
correctness of the same. Neither the Trustee nor any of its agents (i) makes
any representation as to the validity or 

 

50

 

adequacy of this
Indenture or the Securities and (ii) shall be accountable for the Company’s use
or application of the proceeds from the Securities.

 

SECTION 7.5.  Notice of Default. If any Default
with respect to the Securities of any series occurs and is continuing and if
such Default is known to the actual knowledge of a Responsible Officer with the
Corporate Trust Department of the Trustee, the Trustee shall give to each
Holder of Securities of such series notice of such Default within 90 days after
it occurs (i) if any Unregistered Securities of such series are then
outstanding, to the Holders thereof, by publication at least once in an
Authorized Newspaper in the Borough of Manhattan, The City of New York and at
least once in an Authorized Newspaper in London and (ii) to all Holders of
Securities of such series in the manner and to the extent provided in Section
313(c) of the Trust Indenture Act, unless such Default shall have been cured or
waived before the mailing or publication of such notice; provided, however,
that, except in the case of a Default in the payment of the Principal of or
interest on any Security, the Trustee shall be protected in withholding such
notice if the Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders.

 

SECTION 7.6.  Reports by Trustee to Holders. Within
60 days after each May 15, beginning with May 15, 1996, the Trustee shall mail
to each Holder as and to the extent provided in Trust Indenture Act Section
313(c) a brief report dated as of such May 15, if required by Trust Indenture
Act Section 313(a).

 

SECTION 7.7.  Compensation and Indemnity. The
Company shall pay to the Trustee such compensation as shall be agreed upon in
writing from time to time for its services. The compensation of the Trustee
shall not be limited by any law on compensation of a Trustee of an express
trust. The Company agrees to pay or reimburse the Trustee and each-predecessor
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by or on behalf of it in accordance with any of the
provisions of this Indenture and the Securities or the issuance of the
Securities or any series thereof (including the reasonable compensation and the
expenses and disbursements of its counsel and of all agents and other persons
not regularly in its employ) except to the extent any such expense,
disbursement or advance may arise from its negligence or bad faith. The Company
shall indemnify the Trustee and each predecessor Trustee

 

51

 

for, and to hold
it harmless against, any loss, liability or expense arising out of or in
connection with the acceptance or administration of this Indenture and the
Securities or the issuance of the Securities or any series thereof or the
trusts hereunder and the performance of its duties hereunder, including the
costs and expenses of defending itself against or investigating any claim of
liability in the premises, except to the extent such loss liability or expense
is due to the negligence or bad faith of the Trustee or such predecessor
Trustee. The Trustee shall notify the Company promptly of any claim asserted
against the Trustee for which it may seek indemnity. The Company shall defend
the claim and the Trustee shall cooperate in the defense. The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel; provided, that the Company will not be required to pay such fees
and expenses if it assumes the Trustee’s defense and there is no conflict of
interest between the Company and the Trustee in connection with such defense.
The Company need not pay for any settlement made without its written consent.
The Company need not reimburse any expense or indemnify against any loss or
liability to the extent incurred by the Trustee through its negligence, bad
faith or willful misconduct.

 

To secure the
Company’s payment obligations in this Section 7.7, the Trustee shall have a
lien prior to the Securities on all money or property held or collected by the
Trustee, in its capacity as Trustee, except money or property held in trust to
pay Principal of, and interest on particular Securities.

 

The obligations of
the Company under this Section to compensate and indemnify the Trustee and each
predecessor Trustee and to pay or reimburse the Trustee and each predecessor
Trustee for expenses, disbursements and advances shall constitute additional
indebtedness hereunder and shall survive the satisfaction and discharge of this
Indenture or the rejection or termination of this Indenture under bankruptcy
law. Such additional indebtedness shall be a senior claim to that of the
Securities upon all property and funds held or collected by the Trustee as
such, except funds held in trust for the benefit of the Holders of particular
Securities or coupons, and the Securities are hereby subordinated to such
senior claim. If the Trustee renders services and incurs expenses following an
Event of Default under Section 6.1(e) or section 6.1 (f) hereof, the parties
hereto and the holders by their acceptance of the Securities hereby agree that
such expenses are intended to constitute expenses of administration under any
bankruptcy law.

 

52

 

SECTION 7.8.  Replacement
of Trustee. A resignation or removal of the
Trustee as Trustee with respect to the Securities of any series and appointment
of a successor Trustee as Trustee with respect to the Securities of any series
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.8.

 

The Trustee may
resign as Trustee with respect to the Securities of any series at any time by
so notifying the Company in writing. The Holders of a majority in principal
amount of the outstanding Securities of any series may remove the Trustee as
Trustee with respect to the Securities of such series by so notifying the
Trustee and the Company in writing and may appoint a successor Trustee with
respect thereto with the consent of the Company. The Company may remove the
Trustee as Trustee with respect to the Securities of any series if: (i) the
Trustee is no longer eligible under Section 7.10 of this Indenture; (ii) the
Trustee is adjudged a bankrupt or insolvent; (iii) a receiver or other public
officer takes charge of the Trustee or its property; or (iv) the Trustee
becomes incapable of acting.

 

If the Trustee
resigns or is removed as Trustee with respect to the Securities of any series,
or if a vacancy exists in the office of Trustee with respect to the Securities
of any series for any reason, the Company shall promptly appoint a successor
Trustee with respect thereto. Within one year after the successor Trustee takes
office, the Holders of a majority in principal amount of the outstanding
Securities of such series may appoint a successor Trustee in respect of such
Securities to replace the successor Trustee appointed by the Company. If the
successor Trustee with respect to the Securities of any series does not deliver
its written acceptance required by the next succeeding paragraph of this
Section 7.8 within 30 days after the retiring Trustee resigns or is removed,
the retiring Trustee, the Company or the Holders of a majority in principal
amount of the outstanding Securities of such series may petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
thereto.

 

A successor
Trustee with respect to the Securities of any series shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company.
Immediately after the delivery of such written acceptance, subject to the lien
provided for in Section 7.7, (i) the retiring Trustee shall transfer all
property held by it as Trustee in respect of the Securities of such series to
the successor Trustee, (ii) the resignation or removal of the retiring Trustee
in respect of the Securities of such series shall become effective and (iii)
the successor Trustee shall have all the

 

53

 

rights, powers and
duties of the Trustee in respect of the Securities of such series under this
indenture. A successor Trustee shall mail notice of its succession to each
Holder of Securities of such series.

 

Upon request of
any such successor Trustee, the company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor
Trustee all such rights, powers and trusts referred to in the preceding
paragraph.

 

The Company shall
give notice of any resignation and any removal of the Trustee with respect to
the Securities of any series and each appointment of a successor Trustee in
respect of the Securities of such series to all Holders of Securities of such
series. Each notice shall include the name of the successor Trustee and the
address of its Corporate Trust Office.

 

Notwithstanding
replacement of the Trustee with respect to the Securities of any series
pursuant to this Section 7.8, the Company’s obligations under Section 7.7 shall
continue for the benefit of the retiring Trustee.

 

SECTION 7.9.  Successor Trustee by Merger, Etc. If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation or
national banking association, the resulting, surviving or transferee
corporation or national banking association without any further act shall be
the successor Trustee with the same effect as if the successor Trustee had been
named as the Trustee herein.

 

SECTION 7.10.  Eligibility. This Indenture
shall always have a Trustee who satisfies the requirements of Trust Indenture
Act Section 310(a). The Trustee shall have a combined capital and surplus of at
least $10,000,000 as set forth in its most recent published annual report of
condition, if any. The Trustee shall comply with Trust Indenture Act Section
310(b). If at any time the Trustee with respect to the Securities of any series
shall cease to be eligible in accordance with the provisions of this Section,
it shall resign immediately in the manner and with the effect specified in this
Article.

 

SECTION 7.11.  Money Held in Trust. The Trustee
shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the
Trustee need not be segregated from other funds except to the extent required
by 

 

54

 

law and except for
money held in trust under Article 8 of this Indenture.

 

ARTICLE 8

 

DISCHARGE OF INDENTURE

 

SECTION 8.1.  Defeasance Within One Year of Payment. Except
as otherwise provided in this Section 8.1, the Company may terminate its
obligations under the Securities of any series and this Indenture with respect
‘to Securities of such series if:

 

(i)         all Securities of such series
previously authenticated and delivered (other than destroyed, lost or
wrongfully taken Securities of such series that have been replaced or
Securities of such series that are paid pursuant to Section 4.1 or Securities
of such series for whose payment money or securities have theretofore been held
in trust and thereafter repaid to the Company, as provided in Section 8.5) have
been delivered to the Trustee for cancellation and the Company has paid all
sums payable by it hereunder; or

 

(ii)        (A) the Securities of such series mature
within one year or all of them are to be called for redemption within one year
under arrangements satisfactory to the Trustee for giving the notice of
redemption, (B) the Company irrevocably deposits in trust with the Trustee, as
trust funds solely for the benefit of the Holders of such Securities for that
purpose, money or U.S. Government Obligations or a combination thereof
sufficient (unless such funds consist solely of money, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee), without consideration
of any reinvestment, to pay Principal of and interest on the Securities of such
series to maturity or redemption, as the case may be, and to pay all other sums
payable by it hereunder, and (C) the Company delivers to the Trustee an
Officers’ Certificate and an opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the satisfaction and
discharge of this Indenture with respect to the Securities of such series have
been complied with.

 

55

 

With respect to
the foregoing clause (i), only the Company’s obligations under Sections 7.7 and
8.5 in respect of the Securities of such series shall survive. With respect to
the foregoing clause (ii), only the Company’s obligations in Sections 2.2
through 2.12, 4.2, 7.7, 7.8 and 8.5 in respect of the Securities of such series
shall survive until such Securities of such series are no longer outstanding.
Thereafter, only the Company’s obligations in Sections 7.7 and 8.5 in respect
of the Securities of such series shall survive. After any such irrevocable
deposit, the Trustee shall acknowledge in writing the discharge of the
Company’s obligations under the Securities of such series and this Indenture
with respect to the Securities of such series except for those surviving
obligations specified above.

 

SECTION 8.2.  Defeasance. Except as provided
below, the Company will be deemed to have paid and will be discharged from any
and all obligations in respect of the Securities of any series and the
provisions of this Indenture will no longer be in effect with respect to the
Securities of such series (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same); provided that
the following conditions shall have been satisfied:

 

(i)         the Company has irrevocably deposited
in trust with the Trustee as trust funds solely for the benefit of the Holders
of the Securities of such series, for payment of the Principal of and interest
on the Securities of such series, money or U.S. Government obligations or a
combination thereof sufficient (unless such funds consist solely of money, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee) without
consideration of any reinvestment and after payment of all federal, state and
local taxes or other charges and assessments in respect thereof payable by the
Trustee, to pay and discharge the Principal of and accrued interest on the
outstanding-Securities of such series to maturity or earlier redemption
(irrevocably provided for under arrangements satisfactory to the Trustee), as
the case may be;

 

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

 

56

 

(iii)       no Default with respect to the Securities
of such series shall have occurred and be continuing on the date of such
deposit;

 

(iv)       the Company shall have delivered to the
Trustee (1) either (x) a ruling directed to the Trustee received from the
Internal Revenue Service to the effect that the Holders of the Securities of
such series will not recognize income, gain or loss for federal income tax purposes
as a result of the Company’s exercise of its option under this Section 8.2 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 or (y) an Opinion of Counsel to the same effect as
the ruling described in clause (x) above and based upon a change in law and (2)
an Opinion of Counsel to the effect that the Holders of the securities of such
series have a valid security interest in the trust funds subject to no prior
liens under the UCC; and

 

(v)        the Company has delivered to the Trustee
an Officers’ Certificate and an opinion of Counsel, in each case stating that
all conditions precedent provided for herein relating to the defeasance
contemplated by this Section 8.2 of the Securities of such series have been
complied with.

 

The Company’s
obligations in Sections 2.2 through 2.12, 4.2, 7.7, 7.8 and 8.5 with respect to
the Securities of such series shall survive until such Securities are no longer
outstanding. Thereafter, only the Company’s obligations in Sections 7.7 and 8.5
shall survive.

 

SECTION 8.3.  Covenant Defeasance. The Company
may omit to comply with any term, provision or condition set forth in Sections
4.3 or 4.4 (or any other specific covenant relating to such series provided for
in a Board Resolution or supplemental indenture pursuant to Section 2.3 which
may by its terms be defeased pursuant to this Section 8.3), and such omission
shall be deemed not to be an Event of Default under clauses (c), (d) or (g) of
Section 6.1, with respect to the outstanding Securities of a series if:

 

(i)         the Company has irrevocably deposited
in trust with the Trustee as trust funds solely for the benefit of the Holders
of the Securities of such series, for payment of the Principal of and interest,
if any, on the Securities of such series, money or U.S. Government Obligations
or a combination thereof in an amount

 

57

 

sufficient (unless
such funds consist solely of money, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee) without consideration of any reinvestment and
after payment of all federal, state and local taxes or other charges and
assessments in respect thereof payable by the Trustee, to pay and discharge the
Principal of and interest on the outstanding securities of such series to
maturity or earlier redemption (irrevocably provided for under arrangements
satisfactory to the Trustee), as the case may be;

 

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

 

(iii)       no Default with respect to the Securities
of such series shall have occurred and be continuing on the date of such
deposit;

 

(iv)       the Company has delivered to the Trustee
an opinion of Counsel to the effect that (A) the Holders of the Securities of
such series have a valid security interest in the trust funds subject to no
prior liens under the UCC and (B) such Holders will not recognize income, gain
or loss for federal income tax purposes as a result of such deposit and covenant
defeasance and will be subject to federal income tax on the same amount and in
the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred; and

 

(v)        the Company has delivered to the Trustee
an officers, Certificate and an Opinion of Counsel, in each case stating that
all conditions precedent provided for herein relating to the covenant
defeasance contemplated by this Section 8.3 of the Securities of such series
have been complied with.

 

SECTION 8.4.  Application of Trust Money. Subject
to Section 8.5, the Trustee or Paying Agent shall hold in trust money or U.S.
Government obligations deposited with it pursuant to Section 8.1, 8.2 or 8.3,
as the case may be, in respect of the Securities of any series and shall apply
the deposited money and the proceeds from deposited U.S. Government Obligations
in accordance with the Securities of such series and this Indenture to the
payment of 

 

58

 

Principal of and
interest on the Securities of such series; but such money peed not be
segregated from other funds except to the extent required by law. The Company
shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the U.S. Government Obligations deposited
pursuant to Section 8.1, 8.2 or 8.3, as the case may be, or the principal and
interest received in respect thereof, other than any such tax, fee or other
charge that by law is for the account of the Holders.

 

SECTION 8.5.  Repayment to Company. Subject to
Sections 7.7, 8.1, 8.2 and 8.3, the Trustee and the Paying Agent shall promptly
pay to the Company upon request set forth in an Officers’ Certificate any money
held by them at any time and not required to make payments hereunder and
thereupon shall be relieved from all liability with respect to such money. The
Trustee and the Paying Agent shall pay to the Company upon written request any
money held by them and required to make payments hereunder under this Indenture
that remains unclaimed for two years; provided that the Trustee or such Paying
Agent before being required to make any payment may cause to be published at
the expense of the Company once in an Authorized Newspaper in The City of New
York or with respect to any Security the interest on which is based on the
offered quotations in the interbank Eurodollar market for dollar deposits in an
Authorized Newspaper in London or mail to each Holder entitled to such money at
such Holder’s address (as set forth in the Security Register) notice that such
money remains unclaimed and that after a date specified therein (which shall be
at least 30 days from the date of such publication or mailing) any unclaimed
balance of such money then remaining will be repaid to the Company. After
payment to the Company, Holders entitled to such money must look to the Company
for payment as general creditors unless an applicable law designates another
Person, and all liability of the Trustee and such Paying Agent with respect to
such money shall cease.

 

ARTICLE 9

 

AMENDMENTS, SUPPLEMENT AND WAIVERS

 

SECTION 9.1.  Without Consent of Holders. The
Company and the Trustee may amend or supplement this Indenture or the
Securities of any series without notice to or the consent of any Holder:

 

(1)        to cure any ambiguity, defect or
inconsistency in this Indenture; provided 

 

59

 

that such
amendments or supplements shall not materially and adversely affect the
interests of the Holders;

 

(2)        to comply with Article 5;

 

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

 

(4)        to evidence and provide for the
acceptance of appointment hereunder with respect to the Securities of any or
all series by a successor Trustee;

 

(5)        to establish the form or forms or terms
of Securities of any series or of the coupons appertaining to such Securities
as permitted by Section 2.3;

 

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

 

(7)        to change or eliminate any provisions of
the Indenture with respect to all or any series of the Securities not then
outstanding (and, if such change is applicable to fewer than all such series of
the Securities, specifying the series to which such change is applicable), and
to specify the rights and remedies of the Trustee and the holders of such
Securities in connection therewith; and

 

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

 

SECTION 9.2.  With Consent of Holders. Subject
to Sections 6.4 and 6.7, without prior notice to any Holders, the Company and
the Trustee may amend this Indenture and the Securities of any series with the
written consent of the Holders of a majority in principal amount of the
outstanding Securities of all series affected by such supplemental indenture
(all such series voting as one class), and the Holders of a majority in
principal amount of the outstanding Securities of all series affected thereby
(all such series voting as one class) by written notice to the Trustee may
waive future compliance by the Company with any provision of this Indenture or
the Securities of such series.

 

Notwithstanding
the provisions of this Section 9.2, without the consent of each Holder affected
thereby, an amendment or waiver, including a waiver pursuant to Section 6.4,
may not:

 

60

 

(i)         extend the stated maturity of the
Principal of, or any sinking fund obligation or any installment of interest on,
such Holder’s Security, or reduce the Principal amount thereof or the rate of
interest thereon (including any amount in respect of original issue discount),
or any premium payable with respect thereto, or adversely affect the rights of
such Holder under any mandatory redemption or repurchase provision or any right
of redemption or repurchase at the option of such Holder, or reduce the amount
of the Principal of an Original Issue Discount Security that would be due and
payable upon an acceleration of the maturity thereof pursuant to Section 6.2 or
the amount thereof provable in bankruptcy, or change any place of payment
where, or the currency in which, any Security or any premium or the interest
thereon is payable, or impair the right to institute suit for the enforcement
of any such payment on or after the due date therefor;

 

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

 

(iii)       waive a Default in the payment of
Principal of or interest on any Security of such Holder; or

 

(iv)       modify any of the provisions of this
Section 9.2, 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.

 

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

 

It shall not be
necessary for the consent of any Holder under this section 9.2 to approve the
particular form of any proposed amendment, supplement or waiver, but it shall
be sufficient if such consent approves the substance thereof.

 

61

 

After an
amendment, supplement or waiver under this Section 9.2 becomes effective, the
Company or, at the company’s request, the Trustee shall give to the Holders
affected thereby a notice briefly describing the amendment, supplement or
waiver. The Company or, at the Company’s request, the Trustee will mail
supplemental indentures to Holders upon request. Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture or waiver.

 

SECTION 9.3.  Revocation and Effect of Consent. Until an
amendment or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Security or
portion of a Security that evidences the same debt as the Security of the
consenting Holder, even if notation of the consent is not made on any Security.
However, any such Holder or subsequent Holder may revoke the consent as to its
Security or portion of its Security. Such revocation shall be effective only if
the Trustee receives the notice of revocation before the date the amendment,
supplement or waiver becomes effective.

 

The Company may,
but shall not be obligated to, fix a record date (which may be not less than 10
nor more than 60 days prior to the solicitation of consents) for the purpose of
determining the Holders of the Securities of any series affected entitled to
consent to any amendment, supplement or waiver. If a record date is fixed,
then, notwithstanding the immediately preceding paragraph, those Persons who
were such Holders at such record date (or their duly designated proxies) and
only those Persons shall be entitled to consent to such amendment, supplement
or waiver or to revoke any consent previously given, whether or not such
Persons continue to be such Holders after such record date. No such consent
shall be valid or effective for more than 90 days after such record date.

 

After an
amendment, supplement or waiver becomes effective with respect to the
Securities of any series affected thereby, it shall bind every Holder of such
Securities theretofore or thereafter authenticated and delivered hereunder
unless it is of the type described in any of clauses (i) through (iv) of
Section 9.2. In case of an amendment or waiver of the type described in clauses
(i) through (iv) of Section 9.2, the amendment or waiver shall bind each such
Holder who has consented to it and every subsequent Holder of a Security that
evidences the same indebtedness as the Security of the consenting Holder.

 

62

 

SECTION 9.4.  Notation
on or Exchange of Securities. If an
amendment, supplement or waiver changes the terms of any Security, the Trustee
may require the Holder thereof to deliver it to the Trustee. The Trustee may
place an appropriate notation on the Security about the changed terms and
return it to the Holder and the Trustee may place an appropriate notation on
any Security of such series thereafter authenticated. Alternatively, if the
company or the Trustee so determines, the Company in exchange for the Security
shall issue and the Trustee shall authenticate a new Security of the same
series and tenor that reflects the changed terms.

 

SECTION 9.5.  Trustee to Siam Amendments, Etc. The
Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an opinion of Counsel stating that the execution of any amendment,
supplement or waiver authorized pursuant to this Article 9 is authorized or
permitted by this Indenture, stating that all requisite consents have been
obtained or that no consents are required and stating that such supplemental
indenture constitutes the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, subject to
customary exceptions. Subject to the preceding sentence, the Trustee shall sign
such amendment, supplement or waiver if the same does not adversely affect the
rights of the Trustee. The Trustee may, but shall not be obligated to, execute
any such amendment, supplement or waiver that affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

 

SECTION 9.6.  Conformity with Trust Indenture Act. Every
supplemental indenture executed pursuant to this Article 9 shall conform to the
requirements of the Trust Indenture Act as then in effect.

 

ARTICLE 10

 

MISCELLANEOUS

 

SECTION 10.1.  Trust Indenture Act of 1939. This
Indenture shall incorporate and be governed by the provisions of the Trust
Indenture Act that are required to be part of and to govern indentures
qualified under the Trust Indenture Act. If any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by operation of Section
318(c) of the Trust Indenture Act, the imposed duties shall control.

 

63

 

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

 

if to the Company:

 

La Quinta Inns,
Inc.

Weston Centre

112 E. Pecan Street

San Antonio, Texas 78299-2636

Telecopy: (210) 302-6100

Attention: General Counsel

 

if to the Trustee:

 

U.S. Trust Company
of Texas, N.A

2001 Ross Avenue,
Suite 2700

Dallas, Texas
75201-2936

Telecopy: (214)
754-1303

Attention:
Corporate Trust Administration

 

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

 

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

 

64

 

Failure to mail a
notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. Except as otherwise provided in this
Indenture, if a notice or communication is mailed in the manner provided in this
Section 10.2, it is duly given, whether or not the addressee receives it.

 

Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall. be filed with the Trustee, but such filing shall not
be a condition. precedent to the validity of any action taken in reliance upon
such waiver.

 

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

 

SECTION 10.3.  Certificate and Opinion as to Conditions
Precedent.
Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

 

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

 

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

 

SECTION 10.4.  Statements Required in Certificate or
Opinion.
Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

 

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

 

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

 

(iii)       a statement that, in the opinion of each
such person, he has made such examination or investigation as is necessary to
enable him to express an

 

65

 

informed opinion
as to whether or not such covenant or condition has been complied with; and

 

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

 

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

 

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

 

66

 

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

 

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

 

67

 

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

 

SECTION 10.6.  Rules by Trustee,
Paying Agent or Registrar. The Trustee may make reasonable
rules for action by or at a meeting of Holders. The Paying Agent or Registrar
may make reasonable rules for its functions.

 

SECTION 10.7.  Payment Date Other Than a Business Day. If any
date for payment of Principal or interest on any Security shall not be a
Business Day at any place of payment, then payment of Principal of or interest
on such Security, as the case may be, need not be made on such date, but may be
made on the next succeeding Business Day at any place of payment with the same
force and effect as if made on such date and no interest shall accrue in
respect of such payment for the period from and after such date.

 

SECTION 10.8.  Governing Law. The laws of the
State of New York shall govern this Indenture and the Securities.

 

SECTION 10.9.  No Adverse Interpretation of Other
Agreements.
This Indenture may not be used to interpret another indenture or loan or debt
agreement of the Company or any Subsidiary of the Company. Any such indenture
or agreement may not be used to interpret this Indenture.

 

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

 

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

 

SECTION
10.12.  Separability. In case any
provision in this Indenture or in the Securities 

 

68

 

shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

 

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

 

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

 

SECTION
10.15.  Judgment Currency. The Company
agrees, to the fullest extent that it may effectively do so under applicable
law, that (a) if for the purpose of obtaining judgment in any court it is
necessary to convert the sum due in respect of the Principal of or interest on
the Securities of any series (the “Required Currency”) into a currency
in which a judgment will be rendered (the “Judgment Currency”), the rate
of exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a Business Day, then, to the extent
permitted by applicable law, the rate of exchange used shall be the rate at
which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the Required Currency with the Judgment Currency on the
Business Day preceding the day on which final unappealable judgment is entered
and (b) its obligations under this Indenture to make payments in the Required
Currency (i) shall not be discharged or satisfied by any tender, or any
recovery 

 

69

 

pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause of
action for the purpose of recovering in the Required currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the Required
Currency so expressed to be payable and (iii) shall not be affected by judgment
being obtained for any other sum due under this Indenture.

 

70

 

SIGNATURES

 

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

 

	
  (SEAL)

  	
   

  	
  LA QUINTA INNS,
  INC.

  
	
  Attest:

  	
   

  	
   

  	
  as the Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ John F.
  Schmutz

  	
   

  	
   

  	
   

  
	
  Name:

  	
  John F. Schmutz

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  	
  By:

  	
  /s/ Michael A.
  Depatie

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Michael A.
  Depatie

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President – Finance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
  U.S. TRUST
  COMPANY OF TEXAS, N.A.

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
								

 

71

 

	
  STATE OF TEXAS

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF BEXAR

  	
  )

  

 

BEFORE ME, the
undersigned authority, on this 19th day of Sept., 1995,
personally appeared Michael A. Depatie, Senior Vice President–Finance
of La Quinta Inns, Inc., a Texas corporation, known to me (or proved to be by
introduction upon the oath of a person known to me) to be the person and
officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that he/she executed the same as the act of such corporation for the
purposes and consideration herein expressed and in the capacity therein stated.

 

GIVEN UNDER MY
HAND AND SEAL THIS 19TH DAY OF SEPTEMBER, 1995.

 

	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Carolyn F. Hanoir

  
	
   

  	
  NOTARY PUBLIC, STATE OF TEXAS

  
	
   

  	
  Print Name:

  
	
   

  	
  Commission Expires:

  

 

[Stamp]

 

	
  STATE OF ___________________

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  COUNTY OF _________________

  	
  )

  	
   

  

 

BEFORE ME, the
undersigned authority, on this       
day of                                
, 1995, personally appeared                               , of U.S. Trust Company of Texas,
N.A., a national banking association, known to me (or proved to me by
introduction upon the oath of a person known to me) to be the person and
officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that he/she executed the same as the act of such trust for the purposes
and consideration herein expressed and in the capacity therein stated.

 

GIVEN UNDER MY
HAND AND SEAL THIS             DAY
OF                                ,
1995.

 

	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC, STATE OF

  	
   

  
	
   

  	
  Print Name:

  
	
   

  	
  Commission Expires:

  

 

72

 

 

	
  STATE OF ___________________

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  COUNTY OF _________________

  	
  )

  	
   

  

 

BEFORE ME, the
undersigned authority, on this       
day of                                 
, 1995, personally appeared                            , of La Quinta Inns, Inc., a Texas
corporation, known to me (or proved to me by introduction upon the oath of a
person known to me) to be the person and officer whose name is subscribed to
the foregoing instrument, and acknowledged to me that he/she executed the same
as the act of such trust for the purposes and consideration herein expressed
and in the capacity therein stated.

 

GIVEN UNDER MY
HAND AND SEAL THIS              DAY
OF                                         
, 1995.

 

	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC, STATE OF

  	
   

  
	
   

  	
  Print Name:

  
	
   

  	
  Commission Expires:

  

 

	
  STATE OF TEXAS

  	
  )

  
	
   

  	
  )

  
	
  COUNTY OF BEXAR

  	
  )

  

 

BEFORE ME, the
undersigned authority, on this 18th day of  September, 1995, personally appeared JOHN C. STOHLMANN,
VICE PRESIDENT of U.S. Trust Company of Texas, N.A., a national banking
association, known to me (or proved to me by introduction upon the oath of a
person known to me) to be the person and officer whose name is subscribed to
the foregoing instrument, and acknowledged to me that he/she executed the same
as the act of such trust for the purposes and consideration herein expressed
and in the capacity therein stated.

 

GIVEN UNDER MY
HAND AND SEAL THIS 18th DAY OF September, 1995.

 

	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Patricia a. Robles

  
	
   

  	
  NOTARY PUBLIC, STATE OF Texas

  
	
   

  	
  Print Name: Patricia A. Robles

  
	
   

  	
  Commission Expires: 02-13-99

  

 

73

 

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

 

	
   

  	
   

  	
  LA QUINTA INNS, INC.

  
	
   

  	
   

  	
  as the Company

  
	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Name:  John
  F. Schmutz

  	
   

  	
   

  	
   

  
	
  Title: 
  Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. TRUST COMPANY OF TEXAS, N.A. as 

  Trustee

  	
   

   

  
	
   

  	
   

  	
   

  	
   

  
	
  (SEAL)

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  By:

  	
  /s/ John C. Stohlmann 

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  John
  C. Stohlmann 

  	
   

  
	
   

  	
   

  	
   

  	
  Title:  Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Colette E. Neuner 

  	
   

  	
   

  
	
  Name: 
  Colette E. Neuner 

  	
   

  	
   

  
	
  Title: 
  Assistant Vice President

  	
   

  	
   

  

 

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EXHIBIT 10.10    
  

[La
Quinta Letterhead] 

May
3, 2000 

Mr.
Stephen T. Parker

28908 North 111th Street

Scottsdale, AZ 85262 

Dear
Steve: 

I
am very pleased to confirm our offer of the position of Senior Vice President Sales and Marketing. This letter provides a confirmation of the compensation and benefits offered to you as we had
discussed. 

	Salary:	 	$300,000 annually.
	

Bonus:	
 	

Participation in our executive bonus plan with a target bonus of 40% of base pay. A copy of the bonus plan is enclosed for your review. For the business plan year 2000, your bonus will be guaranteed at 40% of base pay prorated from May 8,
2000.
	

Stock Options:	
 	

Participate in our Non-qualified Stock Option Plan with an initial grant of options to purchase 125,000 shares of Meditrust common stock (pending approval of the Board of Directors). The exercise price for the options will be set at fair market value
on the date of employment. These options vest over four years – 25% on each of the successive anniversary dates of the effective date of your employment, pursuant to the stock option plan.
	

 	
 	

Additionally, as we discussed a new executive compensation plan is presently under review by the Board of Directors, which may either enhance or replace the aforementioned stock option grant.
	

Car Allowance:	
 	

You will receive a car allowance of $1,100 per month in lieu of reimbursement for use of your personal vehicle for business.
	

Vacation:	
 	

You will be eligible to take four weeks of vacation each calendar year, prorated for the first year of employment.
	

Other benefits:	
 	

Enclosed you will find a detailed explanation of our health, life, dental, long term disability and other benefit plans. You are eligible to enroll in our Flexible Benefits program on the first of the month after one full month of
service.
	

Relocation:	
 	

Reimbursement for normal costs in connection with a relocation as explained in the enclosed policy.
	
 	
 	

 

	

Severance:	
 	

Although La Quinta does not have employment contracts for our officers, we will commit that if you are terminated from the company without cause, that your severance payment will be one year salary and target bonus. Furthermore, in the event you are
terminated without cause, you will be entitled to continue to receive during the severance period such company provided group health insurance, life insurance and long-term disability coverage as are in effect for you at the time of termination. In
the event your employment with La Quinta is terminated voluntarily or by reason of death, disability (which entitles you to coverage under the long-term disability plan) or for "cause," no severance would be due or payable. For purposes thereof,
"cause" shall be (a) your willful and continuing failure to discharge your duties and responsibilities to La Quinta, (b) any material act of dishonesty involving La Quinta, (c) conviction of a felony. Any disputes arising out of this arrangement will
be arbitrated in the State of Texas under the rules of the American Arbitration Association. The judgment of the arbitrator is final. The prevailing party gets costs and attorneys' fees paid. If termination of employment were due to a change of
control, then your severance would be two years salary and two years target bonus. Furthermore, you will be entitled to continue to receive during the two year severance period such company provided group health insurance, life insurance and
long-term disability coverage as are in effect for you at the time of termination. It is our intention to have in place a written definition of "change in control" within the first 120 days of your employment.
	

Start Date	
 	

Your start date is May 8, 2000.

Please
call me if you have any questions regarding this letter, as it is important for both of us to have a clear and complete understanding as possible. Vito Stellato, our Senior Vice President of
Human Resources is also available to answer any questions regarding benefits and relocation. Please feel free to contact him at 214-492-6758. 

I
look forward to working with you and am confident that you are capable of making a significant contribution to the success of La Quinta Inns. Welcome aboard. 

Sincerely, 

/s/
Francis W. Cash 

Francis
W. Cash

President and CEO 

VJS:lb 

Encl. 

 
 

EMPLOYEE'S ACCEPTANCE    
  

I
have received and read the attached offer letter, and agree to the terms outlined for the position of Senior Vice President Sales and Marketing. 

	/s/ Stephen T. Parker
Signature of Employee	 	Stephen T. Parker
Printed Name
	
5/3/2000
 Date	
 	

 

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EXHIBIT 10.10

EMPLOYEE'S ACCEPTANCE

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