Document:

Exhibit 4.(b)
 
BEMIS COMPANY, INC.
 
AND
 
U.S. BANK
 
NATIONAL ASSOCIATION,
 
Trustee
 

 

Subordinated
Debt Indenture

 
Dated as of July 10, 2009

 

 

 
BEMIS COMPANY, INC.
 
Reconciliation and tie between Sections 310 to 318(a), inclusive, of the Trust Indenture Act of 1939 and
 
Indenture, dated as of July 10, 2009
 

	
  Act
  Section

  	
   

  	
  Indenture Section

  
	
  Section 310(a)(1)

  	
   

  	
  609

  
	
  (a)(2)

  	
   

  	
  609

  
	
  (a)(3)

  	
   

  	
  Not
  Applicable

  
	
  (a)(4)

  	
   

  	
  Not
  Applicable

  
	
  (a)(5)

  	
   

  	
  609

  
	
  (b)

  	
   

  	
  608,
  610

  
	
  Section 311

  	
   

  	
  613

  
	
  Section 312(a)

  	
   

  	
  701,
  702(a)

  
	
  (b)

  	
   

  	
  702(b)

  
	
  (c)

  	
   

  	
  702(c)

  
	
  Section 313

  	
   

  	
  703

  
	
  Section 314(a)

  	
   

  	
  704

  
	
  (b)

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
  102

  
	
  (c)(2)

  	
   

  	
  102

  
	
  (c)(3)

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
  102

  
	
  (f)

  	
   

  	
  Not
  Applicable

  
	
  Section 315(a)

  	
   

  	
  601

  
	
  (b)

  	
   

  	
  602

  
	
  (c)

  	
   

  	
  601

  
	
  (d)

  	
   

  	
  601

  
	
  (e)

  	
   

  	
  514

  
	
  Section 316(a)

  	
   

  	
  101

  
	
  (a)(1)(A)

  	
   

  	
  502,
  512

  
	
  (a)(1)(B)

  	
   

  	
  513

  
	
  (a)(2)

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
  508

  
	
  (c)

  	
   

  	
  104

  
	
  Section 317(a)(1)

  	
   

  	
  503

  
	
  (a)(2)

  	
   

  	
  504

  
	
  (b)

  	
   

  	
  1003

  
	
  Section 318(a)

  	
   

  	
  107

  

 
Note:  This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

i

 
TABLE OF CONTENTS
 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION  

  
	
  SECTION 101.

  	
  Definitions

  	
  5

  
	
  SECTION 102.

  	
  Compliance Certificates and Opinions

  	
  12

  
	
  SECTION 103.

  	
  Form of Documents Delivered to Trustee

  	
  12

  
	
  SECTION 104.

  	
  Acts of Holders

  	
  13

  
	
  SECTION 105.

  	
  Notices, Etc., to Trustee and Company

  	
  13

  
	
  SECTION 106.

  	
  Notice to Holders; Waiver

  	
  14

  
	
  SECTION 107.

  	
  Compliance with Trust Indenture Act

  	
  14

  
	
  SECTION 108.

  	
  Effect of Headings and Table of Contents

  	
  14

  
	
  SECTION 109.

  	
  Successors and Assigns

  	
  14

  
	
  SECTION 110.

  	
  Separability Clause

  	
  14

  
	
  SECTION 111.

  	
  Benefits of Indenture

  	
  15

  
	
  SECTION 112.

  	
  Governing Law

  	
  15

  
	
  SECTION 113.

  	
  Legal Holidays

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO SECURITY FORMS

  	
   

  
	
  SECTION 201.

  	
  Forms Generally

  	
  15

  
	
  SECTION 202.

  	
  Form of Face of Security

  	
  15

  
	
  SECTION 203.

  	
  Form of Reverse of Security

  	
  17

  
	
  SECTION 204.

  	
  Form of Trustee’s Certificate of Authentication

  	
  20

  
	
  SECTION 205.

  	
  Form of Legend for Global Securities

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE THE SECURITIES

  	
   

  
	
  SECTION 301.

  	
  Amount Unlimited; Issuable in Series

  	
  21

  
	
  SECTION 302.

  	
  Denominations

  	
  23

  
	
  SECTION 303.

  	
  Execution, Authentication, Delivery and Dating

  	
  23

  
	
  SECTION 304.

  	
  Temporary Securities

  	
  25

  
	
  SECTION 305.

  	
  Registration, Registration of Transfer and Exchange

  	
  25

  
	
  SECTION 306.

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
  27

  
	
  SECTION 307.

  	
  Payment of Interest; Interest Rights Preserved

  	
  27

  
	
  SECTION 308.

  	
  Persons Deemed Owners

  	
  28

  
	
  SECTION 309.

  	
  Cancellation

  	
  29

  
	
  SECTION 310.

  	
  Computation of Interest

  	
  29

  
	
  SECTION 311.

  	
  Payment to be in Proper Currency

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR SATISFACTION AND
  DISCHARGE

  	
   

  
	
  SECTION 401.

  	
  Satisfaction and Discharge of Indenture

  	
  29

  
	
  SECTION 402.

  	
  Application of Trust Money

  	
  30

  
	
  SECTION 403.

  	
  Defeasance and Discharge of Indenture

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE REMEDIES

  	
   

  
	
  SECTION 501.

  	
  Events of Default

  	
  32

  
	
  SECTION 502.

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  33

  
	
  SECTION 503.

  	
  Collection of Indebtedness and Suits for Enforcement by
  Trustee

  	
  34

  
	
  SECTION 504.

  	
  Trustee May File Proofs of Claim

  	
  35

  

 

ii

 

	
  SECTION 505.

  	
  Trustee May Enforce Claims Without Possession of
  Securities

  	
  35

  
	
  SECTION 506.

  	
  Application of Money Collected

  	
  35

  
	
  SECTION 507.

  	
  Limitation on Suits

  	
  36

  
	
  SECTION 508.

  	
  Unconditional Right of Holders to Receive Principal,
  Premium and Interest

  	
  36

  
	
  SECTION 509.

  	
  Restoration of Rights and Remedies

  	
  36

  
	
  SECTION 510.

  	
  Rights and Remedies Cumulative

  	
  37

  
	
  SECTION 511.

  	
  Delay or Omission Not Waiver

  	
  37

  
	
  SECTION 512.

  	
  Control by Holders

  	
  37

  
	
  SECTION 513.

  	
  Waiver of Past Defaults

  	
  37

  
	
  SECTION 514.

  	
  Undertaking for Costs

  	
  38

  
	
  SECTION 515.

  	
  Waiver of Stay or Extension Laws

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX THE TRUSTEE

  	
   

  
	
  SECTION 601.

  	
  Certain Duties and Responsibilities

  	
  38

  
	
  SECTION 602.

  	
  Notice of Defaults

  	
  38

  
	
  SECTION 603.

  	
  Certain Rights of Trustee

  	
  39

  
	
  SECTION 604.

  	
  Not Responsible for Recitals or Issuance of Securities

  	
  40

  
	
  SECTION 605.

  	
  May Hold Securities

  	
  40

  
	
  SECTION 606.

  	
  Money Held in Trust

  	
  40

  
	
  SECTION 607.

  	
  Compensation and Reimbursement

  	
  40

  
	
  SECTION 608.

  	
  Disqualification; Conflicting Interests

  	
  41

  
	
  SECTION 609.

  	
  Corporate Trustee Required; Eligibility

  	
  41

  
	
  SECTION 610.

  	
  Resignation and Removal; Appointment of Successor

  	
  41

  
	
  SECTION 611.

  	
  Acceptance of Appointment by Successor

  	
  42

  
	
  SECTION 612.

  	
  Merger, Conversion, Consolidation or Succession to Business

  	
  43

  
	
  SECTION 613.

  	
  Preferential Collection of Claims Against Company

  	
  44

  
	
  SECTION 614.

  	
  Appointment of Authenticating Agent

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN HOLDERS’ LISTS AND
  REPORTS BY TRUSTEE AND COMPANY

  	
   

  
	
  SECTION 701.

  	
  Company to Furnish Trustee Names and Addresses of Holders

  	
  45

  
	
  SECTION 702.

  	
  Preservation of Information; Communications to Holders

  	
  45

  
	
  SECTION 703.

  	
  Reports by Trustee

  	
  46

  
	
  SECTION 704.

  	
  Reports by Company

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
   

  
	
  SECTION 801.

  	
  Company May Consolidate Etc., Only on Certain Terms

  	
  47

  
	
  SECTION 802.

  	
  Successor Substituted

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE SUPPLEMENTAL
  INDENTURES

  	
   

  
	
  SECTION 901.

  	
  Supplemental Indentures Without Consent of Holders

  	
  47

  
	
  SECTION 902.

  	
  Supplemental Indentures with Consent of Holders

  	
  49

  
	
  SECTION 903.

  	
  Execution of Supplemental Indentures

  	
  50

  
	
  SECTION 904.

  	
  Effect of Supplemental Indentures

  	
  50

  
	
  SECTION 905.

  	
  Conformity with Trust Indenture Act

  	
  50

  
	
  SECTION 906.

  	
  Reference in Securities to Supplemental Indentures

  	
  50

  
	
  SECTION 907.

  	
  Notice of Supplemental Indentures

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN COVENANTS

  	
   

  
	
  SECTION 1001.

  	
  Payment of Principal, Premium and Interest

  	
  51

  
	
  SECTION 1002.

  	
  Maintenance of Office or Agency

  	
  51

  
	
  SECTION 1003.

  	
  Money for Securities Payments to Be Held in Trust

  	
  51

  

 

iii

 

	
  SECTION 1004.

  	
  Existence

  	
  52

  
	
  SECTION 1005.

  	
  Maintenance of Properties

  	
  52

  
	
  SECTION 1006.

  	
  Payment of Taxes and Other Claims

  	
  53

  
	
  SECTION 1007.

  	
  Restriction on Secured Debt

  	
  53

  
	
  SECTION 1008.

  	
  Restriction on Sale and Leaseback Transactions

  	
  55

  
	
  SECTION 1009.

  	
  Defeasance of Certain Obligations

  	
  55

  
	
  SECTION 1010.

  	
  Waiver of Certain Covenants

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN REDEMPTION OF
  SECURITIES

  	
   

  
	
  SECTION 1101.

  	
  Applicability of Article

  	
  57

  
	
  SECTION 1102.

  	
  Election to Redeem; Notice to Trustee

  	
  57

  
	
  SECTION 1103.

  	
  Selection by Trustee of Securities to Be Redeemed

  	
  57

  
	
  SECTION 1104.

  	
  Notice of Redemption

  	
  58

  
	
  SECTION 1105.

  	
  Deposit of Redemption Price

  	
  58

  
	
  SECTION 1106.

  	
  Securities Payable on Redemption Date

  	
  58

  
	
  SECTION 1107.

  	
  Securities Redeemed in Part

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE SINKING FUNDS

  	
   

  
	
  SECTION 1201.

  	
  Applicability of Article

  	
  59

  
	
  SECTION 1202.

  	
  Satisfaction of Sinking Fund Payments with Securities

  	
  59

  
	
  SECTION 1203.

  	
  Redemption of Securities for Sinking Fund

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN SUBORDINATION OF
  THE SECURITIES

  	
   

  
	
  SECTION 1301.

  	
  Agreement to Subordinate

  	
  60

  
	
  SECTION 1302.

  	
  Liquidation, Dissolution, Bankruptcy

  	
  60

  
	
  SECTION 1303.

  	
  Default on Senior Indebtedness

  	
  61

  
	
  SECTION 1304.

  	
  Acceleration of Payment of Securities

  	
  61

  
	
  SECTION 1305.

  	
  When Distribution Must Be Paid Over

  	
  61

  
	
  SECTION 1306.

  	
  Subrogation

  	
  61

  
	
  SECTION 1307.

  	
  Relative Rights

  	
  62

  
	
  SECTION 1308.

  	
  Subordination May Not Be Impaired by Company

  	
  62

  
	
  SECTION 1309.

  	
  Rights of Trustee and Paying Agent

  	
  62

  
	
  SECTION 1310.

  	
  Distribution or Notice to Representative

  	
  62

  
	
  SECTION 1311.

  	
  Article Thirteen Not to Prevent Events of Default or
  Limit Right to Accelerate

  	
  63

  
	
  SECTION 1312.

  	
  Trust Monies Not Subordinated

  	
  63

  
	
  SECTION 1313.

  	
  Trustee Entitled to Rely

  	
  63

  
	
  SECTION 1314.

  	
  Trustee to Effectuate Subordination

  	
  63

  
	
  SECTION 1315.

  	
  Trustee Not Fiduciary for Holders of Senior Indebtedness

  	
  63

  
	
  SECTION 1316.

  	
  Reliance by Holders of
  Senior Indebtedness on Subordination Provisions

  	
  64

  

 

iv

 

SUBORDINATED
DEBT INDENTURE, dated as of July 10, 2009 between BEMIS COMPANY, INC., a
corporation duly organized and existing under the laws of the State of
Missouri, having its principal office at One Neenah Center, 4th Floor, P.O. Box 669, Neenah, Wisconsin
54957-0669 (the “Company”), and U.S.
BANK NATIONAL ASSOCIATION, a national banking association, having its corporate
trust office at 60 Livingston Avenue, St. Paul, Minnesota 55107, as trustee
hereunder (the “Trustee”).

 

RECITALS OF THE COMPANY

 

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

 

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

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

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

 

ARTICLE
ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 101.                                                                 Definitions.

 

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

 

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

 

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

 

(3)                                  any gender used in this
Indenture shall be deemed and construed to include correlative words of the
masculine, feminine or neuter gender;

 

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

 

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

 

Certain
terms, used principally in Article Six, are defined in that Article.

 

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

 

5

 

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

 

“Attributable Debt” in respect of any Sale and Leaseback
Transaction means, at the date of determination, the present value (discounted
at the rate of interest implicit in the terms of the lease) of the obligation
of the lessee for net rental payments during the remaining term of the lease
(including any period for which such lease has been extended or may, at the
option of the lessor, be extended).  “Net rental payments” under any lease for any period means
the sum of the rental and other payments required to be paid in such period by
the lessee thereunder, excluding any amounts required to be paid by such lessee
(whether or not designated as rental or additional rental) on account of
maintenance and repairs, insurance, taxes, assessments, water rates or similar
charges required to be paid by such lessee thereunder or any amounts required
to be paid by such lessee thereunder contingent upon the amount of sales,
maintenance and repairs, insurance, taxes, assessments, water rates or similar
charges.

 

“Authenticating Agent” means any Person authorized by the
Trustee pursuant to Section 614 to act on behalf of the Trustee to
authenticate Securities of one or more series.

 

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

 

“Board Resolution” means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company to have been duly
adopted by the Board of Directors and to be in full force and effect on the
date of such certification.  Where any
provision of this Indenture refers to action to be taken pursuant to a Board
Resolution (including establishment of any series of the Securities and the
forms and terms thereof), such action may be taken by any committee, officer or
employee of the Company authorized to take such action by a Board Resolution.

 

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

 

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

 

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

 

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

 

“Consolidated Net Tangible Assets” means the aggregate amount
of assets (less applicable reserves and other properly deductible items) after
deducting therefrom (a) all current liabilities (excluding any
indebtedness for money borrowed having a maturity of less than 12 months from
the date 

 

6

 

of
the most recent consolidated balance sheet of the Company but which by its
terms is renewable or extendable beyond 12 months from such date at the option
of the borrower) and (b) all goodwill, trade names, patents, unamortized
debt discount and expense and any other like intangibles, all as set forth on
the most recent consolidated balance sheet of the Company and computed in
accordance with generally accepted accounting principles.

 

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

 

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

 

“Debt” has the meaning specified in Section 1007.

 

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

 

“Depositary” means, with respect to the Securities of any
series issuable or issued in whole or in part in the form of one or more Global
Securities, the clearing agency registered under the Exchange Act, specified
for that purpose as contemplated by Section 301 or any successor clearing
agency registered under the Exchange Act as contemplated by Section 305,
and if at any time there is more than one such Person, “Depositary”
as used with respect to the Securities of any series shall mean the Depositary
with respect to the Securities of such series.

 

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

 

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

 

“Funded Debt” means Debt which by its terms matures at or is
extendible or renewable at the option of the obligor to a date more than 12
months after the date of the creation of such Debt.

 

“Global Security” means a Security bearing the legend
specified in Section 205 evidencing all or part of a series of Securities,
issued to the Depositary for such series or its nominee, and registered in the
name of such Depositary or nominee.

 

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

 

“Indenture” means this instrument as originally executed or
as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of particular series of
Securities established as contemplated by Section 301; provided, however,
that, if at any time more than one Person is acting as Trustee under this
instrument due to the appointment of one or more separate Trustees for any one
or more separate series of Securities pursuant to Section 610(e), “Indenture” shall mean, with respect to such series of
Securities for which any such Person is Trustee, this instrument as originally
executed or as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of particular series of
Securities for which such Person is Trustee established as contemplated by Section 301,
exclusive, however, of any provisions or terms which relate solely to other
series of Securities for which such Person is not Trustee, regardless of when
such terms or provisions were adopted, and exclusive of any provisions or terms
adopted by means of one or more indentures supplemental hereto executed and
delivered after such Person had become such Trustee but to which such Person,
as such Trustee, was not a party.

 

7

 

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

 

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

 

“Issue Date” means the first date on which Securities are issued
pursuant to this Indenture.

 

“Lien” or “Liens” has the
meaning specified in Section 1007.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)                               Securities
which have been paid pursuant to Section 306 or in exchange for or in lieu
of which other Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company; 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 or whether a quorum is present at a meeting of
Holders of Securities, (i) the principal amount of an Original Issue
Discount Security that shall be deemed to be Outstanding shall be the amount of
the principal thereof that would be due and payable as of the date of such
determination upon acceleration of the Maturity thereof pursuant to Section 502,
(ii) the principal amount of a Security denominated in one or more foreign
currencies or currency units that shall be deemed to be Outstanding shall be
the U.S. dollar equivalent, determined in the manner provided as contemplated
by Section 301 as of the date of original issuance of such Security, of
the principal amount (or, in the case of an Original Issue Discount Security,
the U.S. dollar equivalent, 

 

8

 

determined
as of the date of original issuance of such Security, of the amount determined
as provided in (i) above) of such Security as determined by the Company
pursuant to Section 301, and (iii) Securities owned by the Company or
any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

 

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

 

“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 (or formula for determining
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.

 

“Permitted Junior Securities” means unsecured debt or equity
securities of the Company or any successor corporation issued pursuant to a
plan of reorganization or readjustment of the Company, as applicable, that are
subordinated in right of payment to all then outstanding Senior Indebtedness of
the Company, as applicable, at least to the same extent that the Securities are
subordinated to the payment of all Senior Indebtedness of the Company.

 

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

 

“Place of Payment”, when used with respect to the Securities
of any series, means the place or places where the principal of (and premium,
if any) and/or interest on the Securities of that series are payable, where
Securities of that series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served.

 

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

 

“Principal Property” means any manufacturing plant located
within the United States of America (other than its territories or possessions)
and owned by the Company or any Subsidiary, the gross book value (without
deduction of any depreciation reserves) of which on the date as of which the
determination is being made exceeds 2% of Consolidated Net Tangible Assets of
the Company, except any such plant (i) which is financed by obligations
issued by a State or local governmental unit pursuant to Section 142(a)(5),
142(a)(6), 142(a)(8) or 144(a) of the Internal Revenue Code of 1986,
or any successor provision thereof, or (ii) which is not of material
importance to the business conducted by the Company and its Subsidiaries, taken
as a whole (as determined by any two of the following: the Chairman or a Vice
Chairman of the Board of the Company, its President, its Chief Financial
Officer, its Vice President of Finance, its Treasurer or its Controller).

 

9

 

“Proceeding” has the meaning specified in Section 1302.

 

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

 

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

 

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

 

“Representative” means the trustee, agent or representative
(if any) for an issue of Senior Indebtedness, as applicable; provided that if, and for so long as, such Senior
Indebtedness lacks such a Representative, then the Representative for such
Senior Indebtedness shall at all times constitute the holder or holders of a
majority in outstanding principal amount of obligations under such Senior
Indebtedness.

 

“Required Currency” has the meaning specified in Section 311.

 

“Responsible Officer”, when used with respect to the Trustee,
means any officer of the Trustee assigned by it to administer its corporate
trust matters.

 

“Restricted Subsidiary” means any Subsidiary which owns or
leases a Principal Property.

 

“Sale and Leaseback Transaction” has the meaning specified in
Section 1008.

 

“Securities” has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture; provided, however, that if at any time there is
more than one Person acting as Trustee under this Indenture, “Securities” with respect to the Indenture as to which such
Person is Trustee shall have the meaning stated in the first recital of this
Indenture and shall more particularly mean Securities authenticated and delivered
under this Indenture, exclusive, however, of Securities of any series as to
which such Person is not Trustee.

 

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

 

“Senior Indebtedness” with respect to the Company means the
principal, premium (if any) and interest (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization relating
to the Company, whether or not such claim for post-petition interest is allowed
in such proceeding) on and of all indebtedness and obligations (other than the
Securities, but including any debentures, notes or other evidence of
indebtedness issued under the Senior Indenture) of, or guaranteed or assumed
by, the Company that (i) are for borrowed money (ii) are evidenced by
bonds, debentures, notes or other similar instruments, (iii) represent
obligations to policyholders of insurance or investment contracts, (iv) represent
a reimbursement obligation with respect to a letter of credit, banker’s
acceptance or similar facility, or (v) represent the deferred purchase
price of property or services, in each case, whether outstanding on the Issue
Date or thereafter created, incurred, assumed or guaranteed, and all
amendments, renewals, extensions, modifications and refundings of such
indebtedness and obligations, unless in any such case the instrument by which
such indebtedness or obligations are created, incurred, assumed or guaranteed
by the Company, or are otherwise evidenced, provides that they are
subordinated, or are not superior, in right of payment to the Securities;
provided, however, that Senior Indebtedness shall not include, as applicable:

 

10

 

(1)                                  any obligation
of the Company to any Subsidiary of the Company,

 

(2)                                  any liability
for Federal, state, local or other taxes owed or owing by the Company or any
Subsidiary of the Company,

 

(3)                                  any accounts
payable or other liability to trade creditors (including guarantees thereof or
instruments evidencing such liabilities),

 

(4)                                  any obligations
with respect to any capital stock of the Company, or

 

(5)                                  any
indebtedness which by its terms is expressly made equal in rank and payment
with or subordinated to the Securities.

 

“Senior Indenture” means an Indenture, dated as of June 15,
1995, between the Company and U.S. Bank National Association (formerly known as
U.S. Bank Trust National Association, itself formerly First Trust National
Association), as trustee, as the same may be amended from time to time.

 

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

 

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

 

“Subsidiary” means any Corporation of which securities
(excluding securities entitled to vote for directors only by reason of the
happening of a contingency) entitled to elect at least a majority of the
Corporation’s directors shall at the time be owned, directly or indirectly, by
the Company, or one or more Subsidiaries, or by the Company and one or more
Subsidiaries.

 

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

 

“Trust Indenture Act” or “TIA” means the
Trust Indenture Act of 1939 as in force at the date as of which this instrument
was executed, except as provided in Section 905.

 

“U.S. Government Obligations” means direct obligations of the
United States of America, backed by its full faith and credit.

 

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

 

“Voting Stock”, when used with respect to a Corporation,
means stock of the class or classes having general voting power under ordinary
circumstances to elect at least a majority of the board of directors, managers
or trustees of such Corporation (irrespective of whether at the time stock or securities
of any other class or classes shall have or might have voting power by reason
of the happening of any contingency).

 

11

 

SECTION 102.                                                                 Compliance Certificates and
Opinions.

 

Upon
any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the
Trustee, if so requested by the Trustee, an Officers’ Certificate stating that
all conditions precedent, if any, provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any, have
been complied with, except that in the case of any such application or request
as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

 

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

 

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

 

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

 

(3)                                  a statement
that, in the opinion of each such individual, he has made such examination or
investigation as is necessary to enable him to express an informed opinion
whether such covenant or condition has been complied with; and

 

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

 

SECTION 103.                                                                 Form of Documents
Delivered to Trustee.

 

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

 

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

 

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

 

12

 

SECTION 104.                                                                 Acts of Holders.

 

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

 

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

 

(c)                                  The ownership
of Securities shall be proved by the Security Register. The Company may fix any
day as the record date for the purpose of determining the Holders of Securities
of any series entitled to give or take any request, demand, authorization,
direction, notice, consent, waiver or other action, or to vote on any action,
authorized or permitted to be given or taken by Holders of Securities of such
series.  If not set by the Company prior
to the first solicitation of a Holder of Securities of such series made by any
Person in respect of any such action, or, in the case of any such vote, prior
to such vote, the record date for any such action or vote shall be the 30th day
(or, if later, the date of the most recent list of Holders required to be
provided pursuant to Section 701) prior to such first solicitation or
vote, as the case may be. With regard to any record date for action to be taken
by the Holders of one or more series of Securities, only the Holders of
Securities of such series on such date (or their duly designated proxies) shall
be entitled to give or take, or vote on, the relevant action.

 

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

 

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

 

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

 

(1)                                  the Trustee by
any Holder or by the Company shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if made, given, furnished or filed
in writing to or with a Responsible Officer of the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Department, or

 

13

 

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

 

SECTION 106.                                                                 Notice to Holders;
Waiver.

 

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

 

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

 

SECTION 107.                                                                 Compliance with Trust
Indenture Act.

 

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

 

SECTION 108.                                                                 Effect of Headings and
Table of Contents.

 

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

 

SECTION 109.                                                                 Successors and Assigns.

 

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

 

SECTION 110.                                                                 Separability Clause.

 

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

 

14

 

SECTION 111.                       Benefits
of Indenture.

 

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

 

SECTION 112.                       Governing
Law.

 

This
Indenture and the Securities shall be governed by and construed in accordance
with the laws of the State of New York.

 

SECTION 113.                       Legal
Holidays.

 

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

 

ARTICLE
TWO

SECURITY FORMS

 

SECTION 201.                       Forms
Generally.

 

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

 

The
Trustee’s certificates of authentication shall be in substantially the form set
forth in this Article with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture.

 

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

 

SECTION 202.                       Form of
Face of Security.

 

[INSERT
ANY LEGEND REQUIRED BY THE INTERNAL REVENUE CODE AND THE REGULATIONS
THEREUNDER.]

 

15

 

BEMIS COMPANY, INC.

 

 

	
  No.            

  	
   

  	
  [$]

  	
                

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP:

  	
                

  

 

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

 

Payment
of the principal of (and premium, if any) and [IF APPLICABLE, INSERT - any
such] interest on this Security will be made at the office or agency of the
Company maintained for that purpose in
                    ,
in such coin or currency [of the United States of America] as at the time of
payment is legal tender for payment of public and private debts [IF APPLICABLE,
INSERT - ; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register].

 

[IF
APPLICABLE, INSERT - The Securities of this series are subject to redemption prior
to the Stated Maturity as described on the reverse hereof.]

 

16

 

Reference
is hereby made to the further provisions of this Security set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

 

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

 

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

 

	
  Date:

  	
   

  	
   

  	
  BEMIS
  COMPANY, INC.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
								

 

SECTION 203.                       Form of
Reverse of Security.

 

This
Security is one of a duly authorized issue of securities of the Company (herein
called the “Securities”), issued and to be issued in
one or more series under an Indenture, dated as of July 10, 2009 (herein
called the “Indenture”), between the Company and
U.S. Bank National Association, as Trustee (the “Trustee”,
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee, the holders of Senior
Indebtedness and the Holders of the Securities and of the terms upon which the
Securities are, and are to be authenticated and delivered.  This Security is one of the series designated
on the face hereof [, limited in aggregate principal amount to [$]
                      ].  By the terms of the Indenture, additional
Securities [IF APPLICABLE, INSERT - of this series and] of other separate
series, which may vary as to date, amount, Stated Maturity, interest rate or
method of calculating the interest rate and in other respects as therein
provided, may be issued in an unlimited principal amount.

 

[IF
APPLICABLE, INSERT - The Securities of this series are subject to redemption
prior to the Stated Maturity hereof upon not less than 30 days’ notice by mail
to the Persons in whose names the Securities to be redeemed are registered at
the address specified in the Security Register, [IF APPLICABLE, INSERT - (1) on
             in any
year commencing with the year
             and
ending with the year             
through operation of the sinking fund for this series at a Redemption Price
equal to 100% of the principal amount, and (2)] at any time [on or after
                    ],
as a whole or in part, at the election of the Company, at the following
Redemption Prices (expressed as percentages of the principal amount): If
redeemed [on or before                 ,
        %, and if redeemed] during the
12-month period beginning
             of the
years indicated,

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

17

 

and
thereafter at a Redemption Price equal to
        % of the principal amount [IF
APPLICABLE, INSERT -, together in the case of any such redemption [IF
APPLICABLE, INSERT - (whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, provided, however,
that installments of interest whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of such Securities (or one or
more Predecessor Securities) of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture].
[IF THERE IS NO SINKING FUND, INSERT - The Securities of this series are not
Subject to any sinking fund.]

 

[IF
APPLICABLE, INSERT - The Securities of this series are subject to redemption
prior to the Stated Maturity hereof upon not less than 30 days’ notice by mail
to the Persons in whose names the Securities to be redeemed are registered at
the address specified in the Security Register, (1) on
              
in any year commencing with the year        and
ending with the year
                  
through operation of the sinking fund for this series at the Redemption Prices
for redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time
[on or after
                    ],
as a whole or in part, at the election of the Company, at the Redemption Prices
for redemption otherwise than through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below: If redeemed
during the 12-month period beginning
              
of the years indicated,

 

	
  Year

  	
   

  	
  Redemption Price for

  Redemption Through Operation

  of the Sinking Fund

  	
   

  	
  Redemption Price for

  Redemption Otherwise Than

  Through Operation of the

  Sinking Fund

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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

 

[Notwithstanding
the foregoing, the Company may not, prior to
      , redeem any Securities of this series as
contemplated by [Clause (2) of] the preceding paragraph as a part of, or
in anticipation of, any refunding operation by the application, directly or
indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice) of less
than     % per annum.]

 

[The
sinking fund for this series provides for the redemption on
                  
in each year beginning with the year         
and ending with the year          of
[not less than]
[$]                    
[(“mandatory sinking fund”) and not more than
[$]              ]
aggregate principal amount of Securities of this series. [Securities of this
series acquired or redeemed by the Company otherwise than through [mandatory] sinking
fund payments may be credited against subsequent [mandatory] sinking fund
payments otherwise required to be made in the inverse order in which they
become due.]]

 

[In
the event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor of an authorized denomination for
the unredeemed portion hereof will be issued in the name of the Holder hereof
upon the cancellation hereof, and, in the event of transfer or exchange, a new
Security or Securities of this series and of like tenor and for a like
aggregate principal amount will be issued to the Holder, in the case of
exchange, or the designated transferee or transferees, in the case of
transfer.]

 

18

 

The
indebtedness evidenced by this Security is, to the extent and in the manner
provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness of the Company, and this
Security is issued subject to such provisions of the Indenture with respect
thereto. Each Holder of this Security, by accepting the same, (a) agrees
to and shall be bound by such provisions, (b) authorizes and directs the
Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination so provided and (c) appoints the Trustee his
attorney-in-fact for any and all such purposes.

 

[IF
THE SECURITY IS NOT AN ORIGINAL ISSUE DISCOUNT SECURITY, - If an Event of
Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may (subject to the
conditions set forth in the Indenture) be declared due and payable in the
manner and with the effect provided in the Indenture.]

 

[IF
THE SECURITY IS AN ORIGINAL ISSUE DISCOUNT SECURITY, - If an Event of Default
with respect to Securities of this series shall occur and be continuing, a
lesser amount than the principal amount due at the Stated Maturity of the
Securities of this series may (subject to the conditions set forth in the
Indenture) be declared due and payable in the manner and with the effect
provided in the Indenture.  The amount
due and payable on this Security in the event that this Security is declared
due and payable prior to the Stated Maturity hereof shall be - INSERT FORMULA
FOR DETERMINING THE AMOUNT - or in the event that this Security is redeemed
shall be the specified percentage - INSERT FORMULA FOR DETERMINING THE
AMOUNT.  Upon payment (i) of the
amount of principal so declared due and payable and (ii) of interest on
any overdue principal and overdue interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company’s
obligations in respect of the payment of the principal of and interest, if any,
on the Securities of this series shall terminate.]

 

[IF
APPLICABLE, INSERT - The Indenture contains provisions for defeasance at any
time of the Company’s obligations in respect of (i) the entire
indebtedness of this Security or (ii) certain restrictive covenants with
respect to this Security, in each case upon compliance with certain conditions
set forth therein.]

 

The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the rights of the Holders of the Securities of each series to be affected under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding of each series to be affected and, for
certain purposes, without the consent of the Holders of any Securities at the
time Outstanding.  The Indenture also
contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

 

[IF
THE SECURITY IS AN ORIGINAL ISSUE DISCOUNT SECURITY, - 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 under the Indenture or whether a quorum is present at a meeting of
Holders of Securities, the principal amount of any Original Issue Discount
Security that shall be deemed to be Outstanding shall be the amount of the
principal thereof that

 

19

 

would
be due and payable as of the date of such determination upon the acceleration
of the Maturity thereof.]

 

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

 

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

 

The
Securities of this series are issuable only in registered form without coupons
in denominations of [$1,000] and any amount in excess thereof which is an
integral multiple of [$1,000].  As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

 

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

 

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

 

The
Securities shall be governed by and construed in accordance with the laws of
the State of New York.

 

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

 

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

 

The
Trustee’s certificate of authentication shall be in substantially the following
form:

 

This
is one of the Securities of the series designated therein and issued pursuant
to the within-mentioned Indenture.

 

20

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  

 

SECTION 205.                       Form of
Legend for Global Securities.

 

Any
Global Security authenticated and delivered hereunder shall, in addition to the
provisions contained in Sections 202 and 203, bear a legend in substantially
the following form or such similar form as may be required by the Depositary:

 

“Unless
this certificate is presented by an authorized representative of The Depository
Trust Company (55 Water Street, New York, New York) to the issuer or to its
agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co.  or such other name as requested by an
authorized representative of The Depository Trust Company and any payment is
made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof,
Cede & Co., has an interest herein.”

 

ARTICLE
THREE

THE SECURITIES

 

SECTION 301.                       Amount
Unlimited; Issuable in Series.

 

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

 

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

 

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

 

(2)                                  any limit upon the aggregate
principal amount of the Securities of the series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in lieu of, other Securities of
the series pursuant to Section 304, 305, 306, 906, 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been
authenticated and delivered hereunder);

 

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

 

(4)                                  the date or dates on which
the principal or installments of principal and premium, if any, of the
Securities of the series is or are payable and any rights to extend such date
or dates;

 

21

 

(5)                                  the rate or rates at which
the Securities of the series shall bear interest, if any, or the formula
pursuant to which such rate or rates shall be determined, the date or dates
from which such interest shall accrue, the Interest Payment Dates on which such
interest shall be payable, the Regular Record Date for the interest payable on
any Interest Payment Date and the circumstances, if any in which the Company
may defer interest payments;

 

(6)                                  the place or places where
the principal of (and premium, if any) and interest on Securities of the series
shall be payable, any Securities of the series may be surrendered for
registration of transfer or exchange and notices and demands to or upon the
Company with respect to the Securities of the series and this Indenture may be
served;

 

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

 

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

 

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

 

(10)                            the currency, currencies or
currency units in which payment of the principal of and any premium and
interest on any Securities of the series shall be payable if other than the
currency of the United States of America, the manner of determining the U.S.
dollar equivalent of the principal amount thereof for purposes of the
definition of  “Outstanding” in Section 101,
and, if the principal of or any premium or interest on any Securities of the
series is to be payable, at the election of the Company or a Holder thereof, in
one or more currencies or currency units other than that or those in which the
Securities are stated to be payable, the currency, currencies or currency units
in which payment of the principal of and any premium and interest on Securities
of such series as to which such election is made shall be payable, and the
periods within which and the terms and conditions upon which such election is
to be made;

 

(11)                            any other event or events of
default applicable with respect to Securities of the series in addition to or
in lieu of those provided in Section 501(1)-(7);

 

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

 

(13)                            whether the Securities of
the series shall be issued in whole or in part in the form of one or more
Global Securities and, if so, (a) the Depositary with respect to such
Global Security or Securities and (b) the circumstances under which any
such Global Security may be exchanged for Securities registered in the name of,
and any transfer of such Global Security may be registered to, a Person other
than such Depositary or its nominee, if other than as set forth in Section 305;

 

(14)                            if principal of or any
premium or interest on the Securities of a series is denominated or payable in
a currency or currencies other than the currency of the United States of 

 

22

 

America,
whether and under what terms and conditions the Company may be discharged from
obligations pursuant to Sections 403 and 1009 with respect to Securities of
such series; and

 

(15)                            any other terms of the
series (which terms shall not be inconsistent with the provisions of this
Indenture, except as permitted by Section 901(5)).

 

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

 

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

 

With
respect to Securities of a series offered in a Periodic Offering, such Board
Resolution and Officers’ Certificate or supplemental indenture may provide
general terms or parameters for Securities of such series and provide either
that the specific terms of particular Securities of such series shall be
specified in a Company Order or that such terms shall be determined by the Company
or its agents in accordance with other procedures specified in a Company Order
as contemplated by the third paragraph of Section 303.

 

SECTION 302.                       Denominations.

 

Unless
otherwise provided in the applicable Officers’ Certificate or supplemental
indenture, the Securities of each series shall be issued in registered form
without coupons in such denominations as shall be specified as contemplated by Section 301.  In the absence of any such provisions with
respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 or any amount in excess thereof which is an
integral multiple of $1,000.

 

SECTION 303.                       Execution,
Authentication, Delivery and Dating.

 

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

 

Securities
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall bind the Company, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

 

At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Securities, or, in the case of
Securities offered in a Periodic Offering, from time to time in accordance with
such other procedures (including, without limitation, the receipt by the
Trustee of electronic instructions from the Company or its duly authorized
agents, promptly confirmed in writing by the Company) acceptable to the Trustee
as may be specified from time to time by a Company Order for establishing the
specific terms of particular Securities being so offered, and the Trustee in
accordance with the Company Order shall authenticate and 

 

23

 

deliver
such Securities.  If the form or forms or
terms of the Securities of the series have been established by or pursuant to
one or more Board Resolutions as permitted by Sections 201 and 301, in
authenticating such Securities and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 601) shall be fully protected
in relying upon, an Opinion of Counsel stating,

 

(a)                                  that the form or forms of
such Securities have been established in conformity with the provisions of this
Indenture;

 

(b)                                 that the terms of such
Securities have been established in conformity with the provisions of this
Indenture;

 

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

 

(d)                                 that authentication and
delivery of such Securities and the execution and delivery of the supplemental
indenture, if any, by the Trustee will not violate the terms of the Indenture;

 

(e)                                  that the Company has the
corporate power to issue such Securities, and has duly taken all necessary
corporate action with respect to such issuance; and

 

(f)                                    that the issuance of such
Securities will not contravene the certificate of incorporation or bylaws of
the Company or result in any  violation of any of the terms or provisions of any law or regulation or
of any indenture, mortgage or other agreement known to such Counsel by which
the Company is bound;

 

provided, however,
that, with respect to Securities of a series offered in a Periodic Offering,
the Trustee shall be entitled to receive such Opinion of Counsel in connection
only with the first authentication of each form of Securities of such series
and that the opinions described in Clauses (b) and (c) above may
state, respectively, that

 

(b)                                 if the terms of such
Securities are to be established pursuant to a Company Order or pursuant to
such procedures as may be specified from time to time by a Company Order, all
as contemplated by a Board Resolution or action taken pursuant thereto, such
terms will have been duly authorized by the Company and established in
conformity with the provisions of this Indenture; and

 

(c)                                  that such Securities, when
executed by the Company, completed, authenticated and delivered by the Trustee
in accordance with this Indenture, and issued and delivered by the Company and
paid for, all in accordance with any agreement of the Company relating to the
offering, issuance and sale of such Securities, will be duly issued under this
Indenture and will constitute valid and legally binding obligations of the
Company, enforceable in accordance with their terms, subject to bankruptcy,
insolvency, reorganization, moratorium and other laws relating to or affecting
generally the enforcement of creditors’ rights and to general principles of
equity.

 

With
respect to Securities of a series offered in a Periodic Offering, the Trustee
may rely, as to the authorization by the Company of any of such Securities, the
form or forms and terms thereof and the legality, validity, binding effect and
enforceability thereof, upon the Opinion of Counsel, Company Order 

 

24

 

and
other documents delivered pursuant to Sections 201 and 301 and this Section, as
applicable, in connection with the first authentication of a form of Securities
of such series and it shall not be necessary for the Company to deliver such
Opinion of Counsel and other documents (except as may be required by the
specified other procedures, if any, referred to above) at or prior to the time
of authentication of each Security of such series unless and until the Trustee
receives notice that such Opinion of Counsel or other documents have been
superseded or revoked, and may assume compliance with any conditions specified
in such Opinion of Counsel (other than any conditions to be performed by the
Trustee).  If such form or forms or terms
have been so established, the Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will
affect the Trustee’s own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner which is not reasonably acceptable to
the Trustee.

 

Each
Security shall be dated the date of its authentication.

 

No
Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate
of authentication substantially in the form provided for herein executed by the
Trustee by manual signature, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this
Indenture.  Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 309
together with a written statement (which need not comply with Section 102
and need not be accompanied by an Opinion of Counsel) stating that such
Security has never been issued and sold by the Company, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

SECTION 304.                       Temporary
Securities.

 

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

 

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

 

SECTION 305.                       Registration,
Registration of Transfer and Exchange.

 

The
Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities.  The Trustee is hereby 

 

25

 

appointed
“Security Registrar” for the purpose of
registering Securities and transfers of Securities as herein provided.

 

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

 

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

 

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

 

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

 

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

 

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

 

Notwithstanding
the foregoing, except as otherwise specified as contemplated by Section 301,
any Global Security shall be exchangeable pursuant to this Section 305 for
Securities registered in the name of Persons other than the Depositary for such
Security or its nominee only if (i) such Depositary notifies the Company
that it is unwilling or unable to continue as Depositary for such Global
Security or if at any time such Depositary ceases to be a clearing agency
registered under the Exchange Act, (ii) the Company executes and delivers
to the Trustee a Company Order that such Global Security shall be so
exchangeable or (iii) there shall have occurred and be continuing an Event
of Default with respect to the Securities of such series.  Upon the occurrence in respect of any Global
Security of any series of any one or more of the conditions specified in
Clauses (i), (ii) or (iii) of the preceding sentence or such other
conditions as may be specified as contemplated by Section 301 for such
series, such Global Security may be exchanged for Securities not bearing the
legend specified in Section 205 and registered in the names of such
Persons as may be specified by the Depositary (including Persons other than the
Depositary).

 

26

 

Notwithstanding
any other provision of this Indenture, a Global Security may not be transferred
except as a whole by the Depositary for such Global Security to a nominee of
the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION 307.                       Payment
of Interest; Interest Rights Preserved.

 

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

 

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

 

(1)                                  The Company may elect to
make payment of any Defaulted Interest to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted 

 

27

 

Interest,
which shall be fixed in the following manner. 
The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security of such series and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this Clause provided.
Thereupon the Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the Company
of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder of Securities of such series at such Holder’s address as it appears in
the Security Register, not less than 10 days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following Clause (2).

 

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

 

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

 

SECTION 308.                       Persons
Deemed Owners.

 

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

 

No
holder of any beneficial interest in any Global Security held on its behalf by
a Depositary (or its nominee) shall have any rights under this Indenture with
respect to such Global security or any Security represented thereby, and such
Depositary may be treated by the Company, the Trustee, and any agent of the
Company or the Trustee as the owner of such Global Security or any Security
represented thereby for all purposes whatsoever.  Notwithstanding the foregoing, with respect
to any Global Security, nothing herein shall prevent the Company, the Trustee,
or any agent of the Company or the Trustee, from giving effect to any written
certification, proxy or other authorization furnished by a Depositary or
impair, as between a Depositary and such holders of beneficial interest, the
operation of customary practices governing the exercise of the rights of the
Depositary (or its nominees) as Holder of any Security.

 

28

 

SECTION 309.                       Cancellation.

 

All
Securities surrendered for payment, redemption, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be
promptly canceled by it.  The Company may
at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person
for delivery to the Trustee) for cancellation any Securities previously
authenticated hereunder which the Company has not issued and sold, and all
Securities so delivered shall be promptly canceled by the Trustee.  No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section,
except as expressly permitted by this Indenture.  All canceled Securities held by the Trustee
shall be destroyed unless otherwise directed by a Company Order.

 

SECTION 310.                       Computation
of Interest.

 

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

 

SECTION 311.                       Payment
to be in Proper Currency.

 

In
the case of any Securities denominated in any currency (the “Required Currency”) other than United States of America
dollars, except as otherwise provided therein, the obligation of the Company to
make any payment of principal, premium or interest thereon shall not be
discharged or satisfied by any tender by the Company, or recovery by the
Trustee, in any currency other than the Required Currency, except to the extent
that such tender or recovery shall result in the Trustee timely holding the
full amount of the Required Currency then due and payable.  If any such tender or recovery is in a
currency other than the Required Currency, the Trustee may take such actions as
it considers appropriate to exchange such currency for the Required
Currency.  The costs and risks of any
such exchange, including without limitation the risks of delay and exchange
rate fluctuation, shall be borne by the Company, the Company shall remain fully
liable for any shortfall or delinquency in the full amount of Required Currency
then due and payable, and in no circumstances shall the Trustee be liable
therefor except in the case of its negligence or willful misconduct.

 

ARTICLE
FOUR

SATISFACTION AND DISCHARGE

 

SECTION 401.                       Satisfaction
and Discharge of Indenture.

 

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

 

29

 

(1)                                  either

 

(A)                              all Securities theretofore
authenticated and delivered (other than (i) Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided in Section 306
and (ii) Securities for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter repaid
to the Company or discharged from such trust, as provided in Section 1003)
have been delivered to the Trustee for cancellation; or

 

(B)                                all such Securities not
theretofore delivered to the Trustee for cancellation

 

(i)                                     have become due and payable,
or

 

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

 

(iii)  are to be called for redemption within
one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the
Company, and the Company, in the case of (i), (ii) or (iii) above,
has deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose an amount, in the currency in which such Securities are
payable, sufficient to pay and discharge the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal (and premium, if any) and interest to the date of such deposit (in
the case of Securities which have become due and payable) or to the respective
Stated Maturity or Redemption Date, as the case may be;

 

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

 

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

 

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

 

SECTION 402.                                                                    Application
of Trust Money.

 

Subject
to provisions of the last paragraph of Section 1003, all money deposited
with the Trustee pursuant to Section 401 shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal (and premium, if any) and
interest for whose payment such money has been deposited with the Trustee but
such money need not be segregated from other funds except to the extent
required by law.  Money and securities so
held in trust are not subject to Article Thirteen.

 

30

 

SECTION 403.                       Defeasance
and Discharge of Indenture.

 

If
principal of and any premium and interest on Securities of any series are
denominated and payable in United States of America dollars, the Company shall
be deemed to have paid and discharged the entire indebtedness on all the
Outstanding Securities of such series on the 91st day after the date of the
deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such Outstanding Securities, shall no longer be in
effect (and the Trustee, at the expense of the Company, shall at Company
Request, execute proper instruments acknowledging the same), except as to:

 

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

 

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

 

(c)                                  the rights,
powers, trusts, duties and immunities of the Trustee hereunder; provided that,
the following conditions shall have been satisfied:

 

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

 

(e)                                  such deposit
shall not cause the Trustee with respect to the Securities to have a
conflicting interest as defined in Section 608 and for purposes of the
Trust Indenture Act with respect to the Securities;

 

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

 

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

 

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

 

31

 

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

 

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

 

ARTICLE
FIVE

REMEDIES

 

SECTION 501.                       Events
of Default.

 

“Event of Default”, wherever used herein with respect to
Securities of any series, and unless otherwise provided with respect to
Securities of any series pursuant to Section 301(11), means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(1)                                  default in the
payment of any interest upon any Security of that series when it becomes due
and payable, whether or not such payment shall be prohibited by Article Thirteen
and continuance of such default for a period of 30 days; or

 

(2)                                  default in the
payment of the principal of (or premium, if any, on) any Security of that
series at its Maturity; whether or not such payment shall be prohibited by Article Thirteen;
or

 

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

 

(4)                                  default in the
performance, or breach, of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty a default in whose performance or
whose breach is elsewhere in this Section specifically dealt with or which
has expressly been included in this Indenture solely for the benefit of a
series of one or more Securities other than that series), and continuance of
such default or breach for a period of 60 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in aggregate principal amount of
the Outstanding Securities of that series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(5)                                  an event of
default, as defined in any indenture or instrument under which the Company or
any Restricted Subsidiary shall have outstanding at least $10,000,000 aggregate
principal amount of indebtedness for money borrowed, shall happen and be continuing
and such indebtedness shall, as a result thereof, 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 within 10 days after notice thereof shall have been
given, by registered or certified mail, to the Company by the Trustee, or to
the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Securities at the time Outstanding; provided, however,
that if such event of default under such 

 

32

 

indenture
or instrument shall be remedied or cured by the Company or waived by the
Holders of such indebtedness, then, unless the Securities of any series shall
have been accelerated as provided herein, the Event of Default hereunder by
reason thereof shall be deemed likewise to have been thereupon remedied, cured
or waived without further action upon the part of either the Trustee or any
Holders of the Securities of any series; or

 

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

 

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

 

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

 

SECTION 502.                       Acceleration
of Maturity; Rescission and Annulment.

 

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

 

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

 

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

 

33

 

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

 

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

 

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

 

(D)                               all sums paid or advanced by
the Trustee hereunder and the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due
the Trustee under Section 607; and

 

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

 

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

 

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

 

The
Company covenants that if

 

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

 

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

 

If
the Company fails to pay such amounts forthwith upon such demand, the Trustee,
in its own name and as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such
proceeding to judgment or final decree and may enforce the same against the
Company or any other obligor upon such Security and collect the moneys adjudged
or decreed to be payable in the manner provided by law out of the property of
the Company or any other obligor upon such Security, wherever situated.

 

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

 

34

 

SECTION 504.                       Trustee
May File Proofs of Claim.

 

In
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 (irrespective of whether the principal of the Securities shall then be
due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,

 

(i)                                     to file and
prove a claim for the whole amount of principal (and premium, if any) or such
portion of the principal amount of any series of Original Issue Discount
Securities as may be specified in the terms of such series and interest owing
and unpaid in respect of the Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 607) and of the Holders
allowed in such judicial proceeding, and

 

(ii)                                  to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607.

 

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

 

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

 

All
rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and for any
other amounts due the Trustee under Section 607, be for the ratable
benefit of the Holders of the Securities in respect of which such judgment has
been recovered.

 

SECTION 506.                       Application
of Money Collected.

 

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

 

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

 

SECOND: to holders of Senior Indebtedness of the Company to the extent
required by Article Thirteen.

 

35

 

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

 

FOURTH:  The balance, if any, to
the Person or Persons entitled thereto.

 

SECTION 507.                       Limitation
on Suits.

 

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

 

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

 

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

 

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

 

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

 

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

 

it
being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.

 

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

 

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

 

SECTION 509.                       Restoration
of Rights and Remedies.

 

If
the Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored
severally 

 

36

 

and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

SECTION 510.                       Rights
and Remedies Cumulative.

 

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

 

SECTION 511.                       Delay
or Omission Not Waiver.

 

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

 

SECTION 512.                       Control
by Holders.

 

The
Holders of a majority in aggregate principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that

 

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

 

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

 

SECTION 513.                       Waiver
of Past Defaults.

 

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

 

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

 

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

 

The
Company may, but shall not be obligated to, fix a record date for the purpose
of determining the Persons entitled to waive any past default hereunder. If a
record date is fixed, the Holders on such record date, or their duly designated
proxies, and only such Persons, shall be entitled to waive any default
hereunder, whether or not such Holders remain Holders after such record date;
provided, that unless such majority in principal amount shall have waived such
default prior to the date which is 90 days after such 

 

37

 

record
date, any such waiver of such default previously given shall automatically and
without further action by any Holder be canceled and of no further effect.

 

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

 

SECTION 514.                       Undertaking
for Costs.

 

All
parties to this Indenture agree, and each Holder of any Security by such Holder’s
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; provided,
however, that the provisions of this Section shall not apply to any suit
instituted by the Company, to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the Outstanding Securities of any series, or to
any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security on or after the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).

 

SECTION 515.                       Waiver
of Stay or Extension Laws.

 

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

 

ARTICLE
SIX

THE TRUSTEE

 

SECTION 601.                       Certain
Duties and Responsibilities.

 

The
provisions of TIA Section 315 shall apply to the Trustee.

 

SECTION 602.                       Notice
of Defaults.

 

Within
90 days after the occurrence of any default hereunder with respect to the
Securities of any series, the Trustee shall transmit by mail to all Holders of
Securities of such series, as their names and addresses appear in the Security
Register, notice of such default hereunder known to the Trustee, unless such
default shall have been cured or waived; provided however, that, except in the
case of a default in the payment of the principal of (or premium, if any) or
interest on any Security of such series or in the payment of any sinking fund
installment with respect to Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determine that the withholding of such
notice is in the interest of the Holders of Securities of such series; and
provided, further, that in the case of any default of the character specified
in Section 501(4) with respect to 

 

38

 

Securities
of such series, no such notice to Holders shall be given until at least 30 days
after the occurrence thereof.  For the
purpose of this Section, therein “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default with respect to Securities of such series.

 

SECTION 603.                       Certain
Rights of Trustee.

 

Subject
to the provisions of TIA Section 315(a) through 315(d):

 

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

 

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

 

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

 

(d)                                 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;

 

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

 

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

 

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

 

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

 

39

 

(i)                                     Delivery of
reports, information and documents to the Trustee under Section 704(1) and
704(2) is for informational purposes only and the Trustee’s receipt of the
foregoing shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Company’s compliance with any of their covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates); and

 

(j)                                     Except with
respect to Section 1001, the Trustee shall have no duty to inquire as to
the performance of the Company with respect to the covenants contained in Article 4.  In addition, the Trustee shall not be deemed
to have knowledge of an Event of Default except (i) any Default or Event
of Default occurring pursuant to Sections 1001, 501(1), 501(2) or 501(3) or
(ii) any Default or Event of Default of which the Trustee shall have
received written notification or obtained actual knowledge.

 

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

 

The
recitals contained herein and in the Securities, except the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. 
The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities. 
The Trustee or any Authenticating Agent shall not be accountable for the
use or application by the Company of Securities or the proceeds thereof.

 

SECTION 605.                       May Hold
Securities.

 

The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or
any other agent of the Company, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to TIA Sections 310(b) and
311, may otherwise deal with the Company with the same rights it would have if
it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or
such other agent.

 

SECTION 606.                       Money
Held in Trust.

 

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

 

SECTION 607.                       Compensation
and Reimbursement.

 

The
Company agrees

 

(1)                                  to pay to the
Trustee from time to time reasonable compensation for all services rendered by
it hereunder (which compensation shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust);

 

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

 

(3)                                  to indemnify
the Trustee and its agents for, and to hold it harmless against, any loss,
liability or expense incurred without negligence or bad faith on its part,
arising out of or in 

 

40

 

connection
with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers
or duties hereunder.

 

The
obligations of the Company under this Section 607 to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder
and shall survive the satisfaction and discharge of this Indenture.  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 payment of
principal of (and premium, if any) or interest on particular Securities, and
the Securities are hereby subordinated to each senior claim.

 

SECTION 608.                       Disqualification;
Conflicting Interests.

 

The
provisions of TIA Section 310(b) shall apply to the Trustee.

 

SECTION 609.                       Corporate
Trustee Required; Eligibility.

 

There
shall at all times be a Trustee hereunder which shall be eligible to act under
TIA Section 310(a)(1) and shall have a combined capital and surplus
of at least $50,000,000 and subject to supervision or examination by Federal,
State or District of Columbia authority. 
If such Corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.  Neither the Company, nor any
Person directly or indirectly controlling, controlled by or under common
control with the Company, shall act as Trustee hereunder.

 

SECTION 610.                       Resignation
and Removal; Appointment of Successor.

 

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

 

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

 

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

 

(d)                                 If at any time:

 

(1)                                  the Trustee shall fail to
comply with TIA Section 310(b) after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security for at
least six months, or

 

41

 

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

 

(3)                                  the Trustee shall become
incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver
of the Trustee or of its property shall be appointed or any public officer
shall take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation, then, in any such
case, (i) the Company by a Board Resolution may remove the Trustee with
respect to all Securities, or (ii) subject to Section 514, any Holder
who has been a bona fide Holder of a Security for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

 

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

 

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

 

SECTION 611.                       Acceptance
of Appointment by Successor.

 

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

 

42

 

Trustee
and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.

 

(b)                                 In case of the
appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall
execute and deliver an indenture supplemental hereto wherein each successor
Trustee shall accept such appointment and which (1) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and
to vest in, each successor Trustee all the rights, powers, trusts and duties of
the retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Securities, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Trustee shall
become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates. 
Whenever there is a successor Trustee with respect to one or more (but
less than all) series of securities issued pursuant to this Indenture, the
terms “Indenture” and “Securities”
shall have the meanings specified in the provisos to the respective definitions
of those terms in Section 101 which contemplate such situation.

 

(c)                                  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 paragraph (a) and
(b) of this Section, as the case may be.

 

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

 

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

 

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

 

43

 

the
Securities shall not have been authenticated by the Trustee then in office, any
successor by merger, conversion or consolidation to such Trustee may
authenticate such Securities either in the name of such predecessor hereunder
or in the name of the successor Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Securities
or in this Indenture provided that the certificate of the Trustee shall have;
provided, however, that the right to adopt the certificate of authentication of
any predecessor Trustee or to authenticate Securities in the name of any
predecessor Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

 

SECTION 613.                       Preferential
Collection of Claims Against Company.

 

The
Trustee shall comply with TIA Section 311(a).  A Trustee which has resigned or been removed
is subject to TIA Section 311(a) to the extent indicated therein.

 

SECTION 614.                       Appointment
of Authenticating Agent.

 

At
any time when any of the Securities remain Outstanding the Trustee, with the
concurrence of the Company, may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on
behalf of the Trustee to authenticate Securities of such series, and Securities
so authenticated shall be entitled to the benefits of this Indenture and shall
be valid and obligatory for all purposes as if authenticated by the Trustee
hereunder.  Wherever reference is made in
this Indenture to the authentication and delivery of Securities by the Trustee
or the Trustee’s certificate of authentication, such reference shall be deemed
to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. 
Each Authenticating Agent shall be acceptable to the Company and shall
at all times be a Corporation organized and doing business under the laws of
the United States of America, any State thereof or the District of Columbia
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or
examination by Federal, State or District of Columbia authority.  If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published.  If at
any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section.

 

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

 

An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company.  The
Trustee may at anytime terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the
Company.  Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will serve,
as their names and addresses appear in the Security Register.  Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named 

 

44

 

as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

 

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

 

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

 

This
is one of the Securities of the series designated herein and issued pursuant to
the within-mentioned Indenture.

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  As
  Authenticating Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Officer

  

 

ARTICLE
SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

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

 

If
the Trustee is not acting as Security Registrar for the Securities of any
series, the Company will furnish or cause to be furnished to the Trustee:

 

(a)                                  at intervals of
no more than six months commencing after the first issue of such series, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders as of a date not more than 15 days prior to the time
such information is furnished, and

 

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

 

SECTION 702.                       Preservation
of Information; Communications to Holders.

 

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

 

(b)                                 The rights of
Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and
privileges of the Trustee, shall be as provided by TIA Section 312(b).

 

45

 

(c)                                  Every Holder of
Securities, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of
them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with Section 702(b),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under Section 702(b).

 

SECTION 703.                       Reports
by Trustee.

 

Within
60 days after May 1 of each year commencing with the later of May 1,
2010 or the first May 1 after the first issuance of Securities pursuant to
this Indenture, the Trustee shall transmit by mail to all Holders of Securities
as provided in TIA Section 313(c) a brief report dated as of such May 1
if required by TIA Section 313(a) or 313(b).  A copy of each such report shall, at the time
of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which any Securities are listed, with the Commission and with the
Company.  The Company will notify the
Trustee when any Securities are listed on any stock exchange.

 

SECTION 704.                       Reports
by Company.

 

The
Company shall:

 

(1)                                  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 (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which
the Company may be required to file with the Commission pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934; or, if the
Company is not required to file information, documents or reports pursuant to
either of said Sections, then it shall file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of the
Securities Exchange Act of 1934 in respect of a security listed and registered
on a national securities exchange as may be prescribed from time to time in
such rules and regulations;

 

(2)                                  file with the
Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Company with the
conditions and covenants of this Indenture as may be required from time to time
by such rules and regulations;

 

(3)                                  transmit by
mail to all Holders, as their names and addresses appear in the Security
Register, within 30 days after the filing thereof with the Trustee, such
summaries of any information, documents and reports required to be filed by the
Company pursuant to paragraphs (1) and (2) of this Section as
may be required by rules and regulations prescribed from time to time by
the Commission; and

 

(4)                                  furnish to the
Trustee, within 120 days after the end of each fiscal year of the Company
ending after the date hereof, a brief certificate of the Company’s principal
executive officer, principal financial officer or principal accounting officer
as to his or her knowledge of the Company’s compliance with all conditions and
covenants under this Indenture.  For
purposes of this paragraph, such compliance shall be determined without regard
to any period of grace or requirement of notice provided under this Indenture.

 

46

 

ARTICLE
EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

 

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

 

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

 

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

 

(2)                                  immediately
after giving effect to such transaction, no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default,
shall have happened and be continuing; and

 

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

 

SECTION 802.                       Successor
Substituted.

 

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

 

ARTICLE
NINE

SUPPLEMENTAL INDENTURES

 

SECTION 901.                       Supplemental
Indentures Without Consent of Holders.

 

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

 

47

 

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

 

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

 

(3)                                  to add any additional Events
of Default (and if such Events of Default are to be for the benefit of less
than all series of Securities, stating that such Events of Default are being
included solely for the benefit of such series); or

 

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

 

(5)                                  to add to, change or
eliminate any of the provisions of this Indenture in respect of one or more
series of Securities, provided that any such addition, change or elimination (i) shall
neither (A) apply to any Security of any series created prior to the
execution of such supplemental indenture and entitled to the benefit of such
provision nor (B) modify the rights of the Holder of any such Security
with respect to such provision or (ii) shall become effective only when
there is no such Security Outstanding; or

 

(6)                                  to secure the Securities; or

 

(7)                                  to make any change in Article Thirteen
that would limit or terminate the benefits available to any holder of Senior
Indebtedness of the Company (or Representatives thereof) under Article Thirteen;
or

 

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

 

(9)                                  to supplement any of the
provisions of this Indenture to such extent as shall be necessary to permit or
facilitate the defeasance and discharge of any series of Securities pursuant to
Article Six, provided that any such action shall not adversely affect the
interest of the Holders of Securities of such series or any other series of
Securities in any material respect; or

 

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

 

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

 

48

 

(b)           An amendment under
this Section 901 may not make any change that adversely affects the rights
under Article Thirteen of any holder of Senior Indebtedness of the Company
then outstanding unless the holders of such Senior Indebtedness (or any group
or Representative thereof authorized to give a consent) consent to such change.

 

SECTION 902.                       Supplemental
Indentures with Consent of Holders.

 

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

 

(1)           change the Stated
Maturity of the principal of, or any installment of principal of or interest
on, any such Security, or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or reduce
the amount of the principal of an Original Issue Discount Security that would
be due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502, or change any Place of Payment where, or the coin
or currency in which, any such 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 Stated Maturity thereof (or, in the case of
redemption or repayment, on or after the Redemption Date or any repayment
date), or

 

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

 

(3)           modify the
provisions of this Indenture with respect to the subordination of the
Securities of any series in a manner adverse to the Holders thereof; or

 

(4)           modify any of the
provisions of this Section 902, Section 513 or Section 1010, except
to increase any such percentage or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder
of each Outstanding Security affected thereby; provided however, that this
Clause shall not be deemed to require the consent of any Holder with respect to
changes in the references to “the Trustee” and concomitant changes in this Section 902
and Section 1010, or the deletion of this proviso, in accordance with the
requirements of Sections 611(b) and 901(8).

 

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

 

The
Company may, but shall not be obligated to, fix a record date for the purpose
of determining the Persons entitled to consent to any indenture supplemental
hereto.  If a record date is fixed for
such purpose, the Holders on such record date or their duly designated proxies,
and only such Persons, shall be entitled to consent to such supplemental
indenture, whether or not such Holders remain Holders after such 

 

49

 

record
date; provided, that unless such consent shall have become effective by virtue
of the requisite percentage having been obtained prior to the date which is 90
days after such record date, any such consent previously given shall
automatically and without further action by any Holder be canceled and of no
further effect.

 

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

 

An
amendment under this Section 902 may not make any change that adversely
affects the rights under Article Thirteen of any holder of Senior
Indebtedness then outstanding unless the holders of such Senior Indebtedness
(or any group or Representative thereof authorize to give a consent) consent to
such change.

 

SECTION 903.                                                                    Execution
of Supplemental Indentures.

 

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

 

SECTION 904.                                                                    Effect
of Supplemental Indentures.

 

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

 

SECTION 905.                                                                    Conformity
with Trust Indenture Act.

 

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

 

SECTION 906.                                                                    Reference
in Securities to Supplemental Indentures.

 

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

 

SECTION 907.                                                                    Notice
of Supplemental Indentures.

 

Promptly
after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of Section 902, the Company shall
give notice thereof to the Holders of each Outstanding Security so affected,
pursuant to Section 106, setting forth in general terms the substance of
such supplemental indenture.

 

50

 

ARTICLE
TEN

COVENANTS

 

SECTION 1001.                                                              Payment
of Principal, Premium and Interest.

 

The
Company covenants and agrees for the benefit of each series of Securities that
it will duly and punctually pay the principal of (and premium, if any) and
interest on the Securities of that series in accordance with the terms of the
Securities and this Indenture.  In the
absence of contrary provisions with respect to the Securities of any series,
interest on the Securities of any series may, at the option of the Company, be
paid by check mailed to the address of the Person entitled thereto as it
appears on the Security Register.

 

SECTION 1002.                                                              Maintenance
of Office or Agency.

 

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

 

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

 

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

 

If
the Company shall at any time act as its own Paying Agent with respect to any
series of Securities, it will, on or before each due date of the principal of
(and premium, if any) or interest on any of the Securities of that series,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum in the currency in which such series of Securities is payable sufficient to
pay the principal (and premium, if any) or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
will promptly notify the Trustee of its failure so to act.

 

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

 

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

 

51

 

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

 

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

 

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

 

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

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of (and premium, if any) or
interest on any Security of any series and remaining unclaimed for two years
after such principal (and premium, if any) or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by
the Company) shall be discharged from such trust; and the Holder of such
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company on Company
Request.

 

SECTION 1004.                     Existence.

 

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

 

SECTION 1005.                     Maintenance
of Properties.

 

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

 

52

 

SECTION 1006.                                                         Payment
of Taxes and Other Claims.

 

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

 

SECTION 1007.                                                         Restriction
on Secured Debt.

 

(a)                                  The Company
will not itself, and will not permit any Restricted Subsidiary to, incur,
issue, assume or guarantee any notes, bonds, debentures or other similar
evidences of indebtedness for money borrowed (notes, bonds, debentures or other
similar evidences of indebtedness for money borrowed being hereinafter in this Article called
“Debt”), secured by pledge of, or
mortgage or other lien on, any Principal Property, now owned or hereafter owned
by the Company or any Restricted Subsidiary, or any shares of stock or Debt of
any Restricted Subsidiary (pledges, mortgages and other liens being hereinafter
in this Article called “Lien” or “Liens”), without effectively providing that the Securities
of each series then Outstanding (together with, if the Company shall so
determine, any other Debt of the Company or such Restricted Subsidiary then
existing or thereafter created which is not subordinate to the Securities of
each series then Outstanding) shall be secured equally and ratably with (or
prior to) such secured Debt, so long as such secured Debt shall be so secured;
provided, however, that this Section shall not apply to, and there shall
be excluded from secured Debt in any computation under this Section, Debt
secured by:

 

(1)           Liens
on any Principal Property acquired, constructed or improved by the Company or
any Restricted Subsidiary after the date of this Indenture which are created or
assumed contemporaneously with such acquisition, construction or improvement,
or within 180 days before or after the completion thereof, to secure or provide
for the payment of all or any part of the cost of such acquisition,
construction or improvement (including related expenditures capitalized for
Federal income tax purposes in connection therewith) incurred after the date of
this Indenture;

 

(2)           Liens
of or upon any property, shares of capital stock or Debt existing at the time
of acquisition thereof, whether by merger, consolidation, purchase, lease or
otherwise (including Liens of or upon property, shares of capital stock or
indebtedness of a corporation existing at the time such corporation becomes a
Restricted Subsidiary);

 

(3)           Liens
in favor of the Company or any Restricted Subsidiary;

 

(4)           Liens
in favor of the United States of America or any State thereof, or any
department, agency or instrumentality or political subdivision of the United
States of America or any State thereof or political entity affiliated
therewith, or in favor of any other country, or any political subdivision
thereof, to secure partial, progress, advance or other payments, or other
obligations, pursuant to any contract or statute or to secure any Debt incurred
for the purpose of financing all or any part of the cost of acquiring,
constructing or improving the property subject to such Liens (including Liens
incurred in connection with pollution control, industrial revenue or similar
financings);

 

(5)           Liens
imposed by law, such as mechanics’, workmen’s, repairmen’s, materialmen’s,
carriers’, warehousemen’s, vendors’ or other similar liens arising in the 

 

53

 

ordinary
course of business, or governmental (federal, state or municipal) liens arising
out of contracts for the sale of products or services by the Company or any
Restricted Subsidiary, or deposits or pledges to obtain the release of any of
the foregoing;

 

(6)           pledges
or deposits under workmen’s compensation laws or similar legislation and Liens
of judgments thereunder which are not currently dischargeable, or good faith
deposits in connection with bids, tenders, contracts (other than for the
payment of money) or leases to which the Company or any Restricted Subsidiary
is a party, or deposits to secure public or statutory obligations of the
Company or any Restricted Subsidiary, or deposits in connection with obtaining
or maintaining self- insurance or to obtain the benefits of any law, regulation
or arrangement pertaining to unemployment insurance, old age pensions, social
security or similar matters, or deposits of cash or obligations of the United
States of America to secure surety, appeal or customs bonds to which the
Company or any Restricted Subsidiary is a party, or deposits in litigation or
other proceedings such as, but not limited to, interpleader proceedings;

 

(7)           Liens
created by or resulting from any litigation or other proceeding which is being
contested in good faith by appropriate proceedings, including Liens arising out
of judgments or awards against the Company or any Restricted Subsidiary with
respect to which the Company or such Restricted Subsidiary is in good faith
prosecuting an appeal or proceedings for review; or Liens incurred by the
Company or any Restricted Subsidiary for the purpose of obtaining a stay or
discharge in the course of any litigation or other proceeding to which the
Company or such Restricted Subsidiary is a party;

 

(8)           Liens
for taxes or assessments or governmental charges or levies not yet due or
delinquent, or which can thereafter be paid without penalty, or which are being
contested in good faith by appropriate proceedings;

 

(9)           Liens
consisting of easements, rights-of-way, zoning restrictions, restrictions on
the use of real property, and defects and irregularities in the title thereto,
landlords’ liens and other similar liens and encumbrances none of which
interfere materially with the use of the property covered thereby in the
ordinary course of the business of the Company or such Restricted Subsidiary
and which do not, in the opinion of the Company, materially detract from the
value of such properties; or

 

(10)         any
extension, renewal or replacement (or successive extensions, renewals or
replacements), as a whole or in part, of any Lien referred to in the foregoing
clauses (1) to (9), inclusive; provided, that (i) such extension,
renewal or replacement Lien shall be limited to all or a part of the same
property, shares of stock or Debt that secured the Lien extended, renewed or
replaced (plus improvements on such property) and (ii) the Debt secured by
such Lien at such time is not increased.

 

(b)                                 Notwithstanding
the restrictions contained in subdivision (a) of this Section, the Company
and its Restricted Subsidiaries, or any of them, may incur, issue, assume or
guarantee Debt secured by Liens without equally and ratably securing the
Securities of each series then Outstanding, provided, that at the time of such
incurrence, issuance, assumption or guarantee, after giving effect thereto and
to the retirement of any Debt which is concurrently being retired, the
aggregate amount of all outstanding Debt secured by Liens which could not have
been incurred, issued, assumed or guaranteed by the Company or a Restricted
Subsidiary without equally and ratably securing the Securities of each series
then Outstanding except for the 

 

54

 

provisions
of this subdivision (b) does not at such time exceed 10% of Consolidated
Net Tangible Assets of the Company.

 

SECTION 1008.                                                         Restriction
on Sale and Leaseback Transactions.

 

(a)                                  The Company
will not itself, and it will not permit any Restricted Subsidiary to, enter
into any arrangement with any bank, insurance company or other lender or
investor (not including the Company or any Restricted Subsidiary) or to which
any such lender or investor is a party, providing for the leasing by the
Company or a Restricted Subsidiary for a period, including renewals, in excess
of three years of any Principal Property which has been or is to be sold or
transferred by the Company or any Restricted Subsidiary to such lender or
investor or to any person to whom funds have been or are to be advanced by such
lender or investor on the security of such Principal Property (herein referred
to as a “Sale and Leaseback Transaction”) unless
either:

 

(1)           The
Company or such Restricted Subsidiary would, at the time of entering into such
arrangement, be entitled, without equally and ratably securing the Securities
of each series then Outstanding, to incur Debt secured by a Lien on the
property, pursuant to paragraphs (1) to (10), inclusive, of Section 1007;
or

 

(2)           the
Company within 180 days after the sale or transfer shall have been made by the
Company or by a Restricted Subsidiary, applies an amount equal to the greater
of (i) the net proceeds of the sale of the Principal Property sold and
leased back pursuant to such arrangement or (ii) the fair market value of
the Principal Property so sold and leased back at the time of entering into
such arrangement (as determined by any two of the following: the Chairman or a
Vice Chairman of the Board of the Company, its President, its Chief Financial
Officer, its Vice President of Finance, its Treasurer or its Controller) to the
retirement of Funded Debt of the Company; provided, that the amount to be applied
to the retirement of Funded Debt of the Company shall be reduced by (A) the
principal amount of any Securities delivered within 120 days after such sale to
the Trustee for retirement and cancellation, and (B) the principal amount
of Funded Debt, other than Securities, voluntarily retired by the Company
within 120 days after such sale. 
Notwithstanding the foregoing, no retirement referred to in this clause
(a)(2) may be effected by payment at maturity or pursuant to any mandatory
sinking fund payment or mandatory prepayment provision.

 

(b)                                 Notwithstanding
the restrictions contained in subdivision (a) of this Section, the Company
and its Restricted Subsidiaries, or any of them, may enter into a Sale and
Leaseback Transaction, provided, that at the time of such transaction, after
giving effect thereto, the aggregate amount of all Attributable Debt in respect
of Sale and Leaseback Transactions existing at such time which could not have
been entered into except for the provisions of this subdivision (b) does
not at such time exceed 10% of Consolidated Net Tangible Assets of the Company.

 

(c)                                  A Sale and
Leaseback Transaction shall not be deemed to result in the creation of a Lien.

 

SECTION 1009.                                                         Defeasance
of Certain Obligations.

 

The
following provisions shall apply to the Securities of each series unless
specifically otherwise provided in a Board Resolution, Officers’ Certificate or
indenture supplemental hereto provided pursuant to Section 301. The
Company may omit to comply with any term, provision or condition set forth in
Sections 1005, 1006, 1007 and 1008 and any such omission with respect to
Sections 1005, 1006, 1007 

 

55

 

and
1008 shall not be an Event of Default, in each case with respect to the
Securities of that series, provided that the following conditions have been
satisfied:

 

(1)           with reference to
this Section 1009, the Company has deposited or caused to be irrevocably
deposited with the Trustee (or another trustee satisfying the requirements of Section 609)
as trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of that series, (i) money
in an amount, or (ii) U.S. 
Government Obligations which through the payment of interest and
principal in respect thereof in accordance with their terms will provide not
later than one day before the due date of any payment referred to in clause (A) or
(B) of this subparagraph (1) money in an amount, or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge (A) the principal of (and
premium, if any) and each installment of principal (and premium, if any) and
interest on the Outstanding Securities on the Stated Maturity of such principal
or installments of principal and interest and (B) any mandatory sinking
fund payments or analogous payments applicable to the Securities of such series
on the day on which such payments are due and payable in accordance with the
terms of this Indenture and of such Securities;

 

(2)           such deposit shall
not cause the Trustee with respect to the Securities of that series to have a
conflicting interest as defined in Section 608 and for purposes of the
Trust Indenture Act with respect to the Securities of any series;

 

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

 

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

 

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

 

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

 

SECTION 1010.                                                         Waiver
of Certain Covenants.

 

The
Company may omit in any particular instance to comply with any term, provision
or condition set forth in Sections 1004 to 1008, inclusive, with respect to the
Securities of any series if before the time for such compliance the Holders of
not less than a majority in aggregate principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until
such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

 

56

 

The
Company may, but shall not be obligated to, fix a record date for the purpose
of determining the Persons entitled to waive any such term, provision or
condition.  If a record date is fixed for
such purpose, the Holders on such record date or their duly designated proxies,
and only such Persons, shall be entitled to waive any such term, provision or
condition hereunder, whether or not such Holders remain Holders after such record
date; provided that unless the Holders of not less than a majority in principal
amount of the Outstanding Securities of such series shall have waived such
term, provision or condition prior to the date which is 90 days after such
record date, any such waiver previously given shall automatically and without
further action by any Holder be canceled and of no further effect.

 

ARTICLE
ELEVEN

REDEMPTION OF SECURITIES

 

SECTION 1101.                                                         Applicability
of Article.

 

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

 

SECTION 1102.                                                         Election
to Redeem; Notice to Trustee.

 

The
election of the Company to redeem any Securities shall be evidenced by an
Officers’ Certificate.  The Company
shall, at least 45 days prior to the Redemption Date fixed by the Company
(unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of

 

(1)                                  such Redemption
Date,

 

(2)                                  if the
Securities of such series have different terms and less than all of the
Securities of such series are to be redeemed, the terms of the Securities to be
redeemed, and

 

(3)                                  if less than
all the Securities of such series with identical terms are to be redeemed, the
principal amount of such Securities to be redeemed.

 

In
the case of any redemption of Securities prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with such restriction.

 

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

 

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

 

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

 

57

 

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

 

SECTION 1104.                                                         Notice
of Redemption.

 

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

 

All
notices of redemption shall state:

 

(1)                                  the Redemption
Date,

 

(2)                                  the Redemption
Price,

 

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

 

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

 

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

 

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

 

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

 

SECTION 1105.                                                         Deposit
of Redemption Price.

 

On
or prior to any Redemption Date, the Company shall deposit with the Trustee or
with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of
money in immediately available funds sufficient to pay the Redemption Price of,
and (except if the Redemption Date shall be an Interest Payment Date) accrued
interest on, all the Securities which are to be redeemed on that date.

 

SECTION 1106.                                                         Securities
Payable on Redemption Date.

 

Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. 
Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption
Price, together with accrued interest to the Redemption Date; provided,
however, that, unless otherwise specified as contemplated by Section 301,
installments of interest whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Regular Record Dates according to their terms and the provisions of Section 307.

 

58

 

If any Security called
for redemption shall not be so paid upon surrender thereof for redemption, the
principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

 

SECTION 1107.                                                         Securities Redeemed in Part.

 

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

 

ARTICLE TWELVE

SINKING FUNDS

 

SECTION 1201.                                                         Applicability of Article.

 

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

 

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

 

SECTION 1202.                                                         Satisfaction of Sinking Fund
Payments with Securities.

 

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

 

SECTION 1203.                                                         Redemption of Securities for
Sinking Fund.

 

Not less than 60 days
prior to each sinking fund payment date for Securities of like tenor of a
series, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, the portion 

 

59

 

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

 

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

 

ARTICLE THIRTEEN

SUBORDINATION OF THE SECURITIES

 

SECTION 1301.                                                         Agreement to Subordinate.

 

The Company agrees, and
each Holder by accepting a Security agrees, that the indebtedness evidenced by
the Securities is subordinated in right of payment, to the extent and in the
manner provided in this Article Thirteen, to the prior payment in full of
all existing and future Senior Indebtedness of the Company and that the subordination
is for the benefit of and enforceable by the holders of such Senior
Indebtedness. All provisions of this Article Thirteen shall be subject to Section 1312.

 

SECTION 1302.                                                         Liquidation, Dissolution,
Bankruptcy.

 

Upon any payment or
distribution of the assets of the Company to creditors upon a total or partial
liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property (each a “Proceeding”)
or upon an assignment by the Company for the benefit of creditors:

 

(a)           holders of Senior Indebtedness of the
Company shall be entitled to receive payment in full in cash (or other
consideration acceptable to the applicable holder of Senior Indebtedness) of
such Senior Indebtedness (including interest accruing after, or which would
accrue but for, the commencement of any such proceeding at the rate specified
in the applicable Senior Indebtedness, whether or not a claim for such interest
would be allowed) before any payment or distribution (other than Permitted
Junior Securities), whether in cash, securities or other property, shall be
made by the Company on account of principal, interest or other amounts owing in
respect of the Securities; and

 

(b)           until the Senior Indebtedness of the
Company is paid in full in cash (or other consideration acceptable to the
applicable holder of Senior Indebtedness), any payment or distribution (other
than Permitted Junior Securities), whether in cash, securities or other
property, to which Holders would be entitled but for this Article Thirteen
shall be made to holders of such Senior Indebtedness, for application to the
payment thereof, as their interests may appear, except that the Holders may
receive and retain payments made from the trust described under Article Four,
so long as, on the date or dates the respective amounts were paid into the
trust such payments were made with respect to the Securities without violating
this Article Thirteen.

 

60

 

SECTION 1303.                                                         Default on Senior Indebtedness.

 

The Company may not pay
principal of, premium (if any) or interest on, the Securities or make any
deposit pursuant to the provisions described under Section 403 and may not
otherwise purchase, redeem or otherwise retire any Securities (except that the
Holders may receive and retain (a) Permitted Junior Securities and (b) payments
made from the trust described under Article Four) (collectively, “pay the
Securities”) if:

 

(A)          a default in the payment of the
principal of, premium, if any, or interest on any Senior Indebtedness of the
Company occurs and is continuing or any other amount owing in respect of any
Senior Indebtedness of the Company is not paid when due, or

 

(B)           any other default occurs with respect
to Senior Indebtedness of the Company and the maturity of such Senior
Indebtedness of the Company is accelerated in accordance with its terms,

 

unless, in either case,
the default has been cured or waived and any such acceleration has been
rescinded or such Senior Indebtedness has been paid in full in cash (or other
consideration acceptable to the applicable holder of Senior Indebtedness).

 

SECTION 1304.                                                         Acceleration of Payment of
Securities.

 

In the event that any
Securities are declared due and payable before their Stated Maturity, then and
in such event the holders of Senior Indebtedness of the Company shall be
entitled to receive payment in full in cash (or other consideration acceptable
to the applicable holder of Senior Indebtedness) of such Senior Indebtedness
(including interest accruing after, or which would accrue but for, the
commencement of a Proceeding at the rate specified in the applicable Senior
Indebtedness, whether or not a claim for such interest would be allowed) before
any payment or distribution, whether in cash, securities or other property,
shall be made by the Company on account of principal, interest or other amounts
owing in respect of the Securities or on account of purchase or other
acquisition of Securities by the Company; provided, however, that nothing in
this Section 1304 shall prevent the satisfaction of any sinking fund
payment in accordance with this Indenture or as otherwise specified for the
Securities of any series by delivering and crediting pursuant to Section 1202
or as otherwise specified for the Securities of any series Securities which
have been acquired (upon redemption or otherwise) prior to such declaration of
acceleration.

 

SECTION 1305.                                                         When Distribution Must Be Paid
Over.

 

If any distribution is
made to the Trustee or to the Holders that because of this Article Thirteen
should not have been made to them, the Trustee or such Holders who receive the
distribution, as applicable, shall hold such distribution in trust for holders
of Senior Indebtedness of the Company and shall, upon the written instruction
of the Company, pay it over to them as their interests may appear. Nothing
contained in this Article Thirteen or elsewhere in this Indenture shall
prevent (a) the Company, at any time except under the conditions specified
in Section 1302, Section 1303 and Section 1304, from making
payments at any time of principal of (and premium, if any) or interest on the
Securities, or (b) the application by the Trustee of any money deposited
with it hereunder to the payment of or on account of the principal of (and
premium, if any) or interest on the Securities or the retention of such payment
by the Holders if, at the time of such application by the Trustee, the
conditions specified in Section 1302, Section 1303 and Section 1304
did not exist.

 

SECTION 1306.                                                         Subrogation.

 

After all Senior
Indebtedness of the Company is paid in full and until the Securities are paid
in full, the Holders shall, to the extent of the payments or distributions made
to the holders of Senior 

 

61

 

Indebtedness pursuant to
this Article Thirteen, be subrogated (equally and ratably with all other
indebtedness as to which the right to receive payment is pari passu with the
Securities) to the rights of holders of such Senior Indebtedness to receive
distributions applicable to Senior Indebtedness of the Company. A distribution
made under this Article Thirteen to holders of Senior Indebtedness which
otherwise would have been made to the Holders is not, as between the Company
and the Holders, a payment by the Company on such Senior Indebtedness.

 

SECTION 1307.                                                         Relative Rights.

 

This Article Thirteen
defines the relative rights of the Holders and holders of Senior Indebtedness
of the Company. Nothing in this Indenture shall:

 

(a)           impair, as between the Company and
the Holders, the obligation of the Company, which is absolute and
unconditional, to pay principal of (or premium, if any, on ) and interest on
the Securities in accordance with their terms; or

 

(b)           prevent the Trustee or any Holder
from exercising its available remedies upon a Default, subject to the rights of
holders of Senior Indebtedness of the Company to receive distributions
otherwise payable to the Holders.

 

SECTION 1308.                                                         Subordination May Not Be
Impaired by Company.

 

No right of any holder of
Senior Indebtedness of the Company to enforce the subordination of the
Indebtedness evidenced by the Securities shall be impaired by any act or
failure to act by the Company or by its failure to comply with this Indenture.

 

SECTION 1309.                                                         Rights of Trustee and Paying
Agent.

 

Notwithstanding Section 1303,
the Trustee or any Paying Agent may continue to make payments on the Securities
and shall not be charged with knowledge of the existence of facts that would
prohibit the making of any such payments unless, not less than two Business
Days prior to the date of such payment, a Responsible Officer of the Trustee
receives notice satisfactory to it that payments may not be made under this Article Thirteen.
The Company, the Registrar, any Paying Agent, a Representative or a holder of
Senior Indebtedness of the Company may give the notice; provided, however,
that, if an issue of Senior Indebtedness of the Company has a Representative,
only the Representative may give the notice.

 

The Trustee in its
individual or any other capacity may hold Senior Indebtedness of the Company
with the same rights it would have if it were not Trustee. The Registrar and
any Paying Agent may do the same with like rights. The Trustee shall be
entitled to all the rights set forth in this Article Thirteen with respect
to any Senior Indebtedness of the Company which may at any time be held by it,
to the same extent as any other holder of such Senior Indebtedness; and nothing
in Article Six shall deprive the Trustee of any of its rights as such
holder. Nothing in this Article Thirteen shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 607 or any other Section of
this Indenture.

 

SECTION 1310.                                                         Distribution or Notice to
Representative.

 

Whenever a distribution
is to be made or a notice given to holders of Senior Indebtedness of the
Company, the distribution may be made and the notice given to their
Representative (if any).

 

62

 

SECTION 1311.                                                         Article Thirteen Not to
Prevent Events of Default or Limit Right to Accelerate.

 

The failure to make a
payment pursuant to the terms of the Securities by reason of any provision in
this Article Thirteen shall not be construed as preventing the occurrence
of a Default in respect thereof. Nothing in this Article Thirteen shall
have any effect on the right of the Holders or the Trustee to accelerate the
maturity of the Securities.

 

SECTION 1312.                                                         Trust Monies Not Subordinated.

 

Notwithstanding anything
contained herein to the contrary, payments from money or the proceeds of U.S.
Government Obligations held in trust under Article Four by the Trustee and
deposited at a time when permitted by the subordination provisions of this Article Thirteen
for the payment of principal of and interest on the Securities shall not be
subordinated to the prior payment of any Senior Indebtedness of the Company or
subject to the restrictions set forth in this Article Thirteen, and none
of the Trustee or the Holders shall be obligated to pay over any such amount to
the Company or any holder of Senior Indebtedness of the Company or any other
creditor of the Company.

 

SECTION 1313.                                                         Trustee Entitled to Rely.

 

Upon any payment or
distribution pursuant to this Article Thirteen, the Trustee and the
Holders shall be entitled to rely (a) upon any order or decree of a court
of competent jurisdiction in which any Proceedings are pending, (b) upon a
certificate of the liquidating trustee or agent or other Person making such
payment or distribution to the Trustee or to the Holders or (c) upon the
Representatives for the holders of Senior Indebtedness of the Company for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of such Senior Indebtedness and other Indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article Thirteen.
In the event that the Trustee determines, in good faith, that evidence is
required with respect to the right of any Person as a holder of Senior
Indebtedness of the Company to participate in any payment or distribution
pursuant to this Article Thirteen, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of such Senior Indebtedness held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and other
facts pertinent to the rights of such Person under this Article Thirteen,
and, if such evidence is not furnished, the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to
receive such payment. The provisions of Section 601 and Section 603
shall be applicable to all actions or omissions of actions by the Trustee
pursuant to this Article Thirteen.

 

SECTION 1314.                                                         Trustee to Effectuate
Subordination.

 

Each Holder by accepting
a Security authorizes and directs the Trustee on his behalf to take such action
as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Holders and the holders of Senior Indebtedness of the
Company as provided in this Article Thirteen and appoints the Trustee as
attorney-in-fact for any and all such purposes.

 

SECTION 1315.                                                         Trustee Not Fiduciary for Holders
of Senior Indebtedness.

 

The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the
Company and shall not be liable to any such holders if it shall mistakenly pay
over or distribute to the Holders or the Company or any other Person money or
assets to which any holders of Senior Indebtedness of the Company shall be
entitled by virtue of this Article Thirteen or otherwise.

 

63

 

SECTION 1316.                                                         Reliance by Holders of Senior
Indebtedness on Subordination Provisions.

 

Each Holder by accepting
a Security acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement and a consideration to each holder
of any Senior Indebtedness of the Company, whether such Senior Indebtedness was
created or acquired before or after the issuance of the Securities, to acquire
and continue to hold, or to continue to hold, such Senior Indebtedness and such
holder of such Senior Indebtedness shall be deemed conclusively to have relied
on such subordination provisions in acquiring and continuing to hold, or in
continuing to hold, such Senior Indebtedness.

 

Without in any way
limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness of the Company may, at any time and from time to time, without the
consent of or notice to the Trustee or the Holders, without incurring responsibility
to the Trustee or the Holders and without impairing or releasing the
subordination provided in this Article Thirteen or the obligations
hereunder of the Holders to the holders of the Senior Indebtedness of the
Company, do any one or more of the following: 
(i) change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, Senior Indebtedness of the Company, or
otherwise amend or supplement in any manner Senior Indebtedness of the Company,
or any instrument evidencing the same or any agreement under which Senior
Indebtedness of the Company is outstanding; (ii) sell, exchange, release
or otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Indebtedness of the Company; (iii) release any Person liable in any
manner for the payment or collection of Senior Indebtedness of the Company; and
(iv) exercise or refrain from exercising any rights against the Company
and any other Person.

 

64

 

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

 

 

	
   

  	
  BEMIS COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gene C. Wulf

  
	
   

  	
   

  	
  Gene C. Wulf 

  
	
   

  	
   

  	
  Senior Vice
  President &

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Prokosch

  
	
   

  	
   

  	
  Richard Prokosch

  
	
   

  	
   

  	
  Vice PresidentExhibit 4.2  

 ELLORA ENERGY INC.  

 CERTIFICATE OF DESIGNATION

FOR

SERIES A 6% CONVERTIBLE PREFERRED STOCK  

Pursuant
to Section 151 of the 

General
Corporation Law of the State of Delaware 

        ELLORA
ENERGY INC., a Delaware corporation (the "Corporation"), DOES HEREBY CERTIFY that pursuant to the authority contained in
Section 4.3 of its Restated Certificate of Incorporation (the "Certificate of Incorporation"), and in accordance with the provision of
Section 151 of the General Corporation Law of the State of Delaware, its Board of Directors adopted the following resolution creating one series of its preferred stock designated as
"Series A 6% Convertible Preferred Stock": 

        RESOLVED,
that, pursuant to authority conferred upon the Board of Directors of the Corporation by the Certificate of Incorporation, the Board of Directors hereby creates and hereby
authorizes the issuance of 2,000,000 shares of Series A 6% Convertible Preferred Stock, par value $0.001 per share, of the Corporation, and hereby fixes the designations, powers, preferences
and relative, participating, optional or other special rights and the qualifications, limitations or restrictions thereof, of such shares, in addition to those set forth in the Certificate of
Incorporation, as follows: 

 Convertible Preferred.  

        Section 1.    Designation, Number of Shares and Stated Value of Series A 6% Convertible
Preferred.    The shares of such series shall be designated as Series A 6% Convertible Preferred Stock (the "Convertible
Preferred"). The number of shares of Convertible Preferred may be increased or decreased, but not to a number less than the number of shares of Convertible Preferred then
issued and outstanding, by resolution adopted by the full Board of Directors. The "Stated Value" per share of the Convertible Preferred shall be equal to Forty Dollars ($40.00). 

        Section 2.    Definitions.    In addition to the definitions set forth elsewhere
in
this Certificate of Designation of Convertible Preferred (this "Certificate of Designation"), the following terms shall have the meanings indicated: 

        "Business
Day" shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the State of Delaware are authorized or obligated by law or executive order to
close. 

        "Common
Stock" shall mean the common stock, par value $0.001 per share, of the Corporation. 

        "Convertible
Conversion Price" shall mean the price per share of Common Stock into which the Convertible Preferred is convertible based upon the quotient of the Stated Value divided by
the Convertible Conversion Price, as such price may be adjusted pursuant to the provisions hereof. The
initial Convertible Conversion Price is Nine Dollars ($9.00), resulting in each share of Convertible Preferred being initially convertible into 4.44444 shares of Common Stock. If the Corporation
completes (i) a sale of the Common Stock or a merger of the Corporation that results in the holders of the Common Stock immediately prior to such sale or merger owning less than 50% of the
Common Stock subsequent to the transaction, (ii) the sale of substantially all of the Corporation's assets or (iii) the completion of a Qualified IPO, and the price of the Common Stock
is sold, exchanged, or otherwise transferred or valued for less than $9.00 per share, then the Convertible Conversion Price shall be adjusted downward to equal such lower price. "Convertible Original
Issue Date" shall mean the date on which shares of the Convertible Preferred are first issued. 

 

        "Convertible
Preferred Antidilution Period" shall mean the period of time beginning on the Convertible Original Issue Date and ending on the closing of a Qualified IPO. 

        "Junior
Securities" means the Common Stock and any other series of stock issued by the Corporation ranking junior as to the Convertible Preferred upon liquidation, dissolution or winding
up of the Corporation. 

        "Parity
Securities" means any class or series of stock issued by the Corporation ranking on parity with the Convertible Preferred upon liquidation, dissolution and winding up of the
Corporation. 

        "Person"
means any individual, corporation, association, partnership, joint venture, limited liability company, trust, estate, or other entity or organization, other than the
Corporation, any subsidiary of the Corporation, any employee benefit plan of the Corporation or any subsidiary of the Corporation, or any entity holding shares of Common Stock for or pursuant to the
terms of any such plan. 

        "Qualified
IPO" means a registered underwritten public offering of the Common Stock of the Corporation resulting in a minimum aggregate amount of at least $20,000,000. 

        "Senior
Securities" means any class or series of stock issued by the Corporation ranking senior to the Convertible Preferred upon liquidation, dissolution and winding up of the
Corporation. 

        Section 3.    Liquidation Preference.    In the event of any liquidation,
dissolution
or winding up of the Corporation (in connection with the bankruptcy or insolvency of the Corporation or otherwise), whether voluntary or involuntary, before any payment or distribution of the assets
of the Corporation (whether capital or surplus) shall be made to or set apart for the holders of shares of any Junior Securities, the holders of the shares of Convertible Preferred, together and pari
passu with any Parity Securities, shall be entitled to receive an amount equal to the Stated Value multiplied by the number of shares of Convertible Preferred held by them, plus all cumulative
dividends that are accrued and unpaid thereon. To the extent the available assets are insufficient to fully satisfy such amounts, then the holders of the Convertible Preferred shall share ratably in
such distribution in the proportion that the number of each holder's Convertible Preferred shares bears to the total number of shares of Convertible Preferred then outstanding. After the payment of
the full amount of such liquidating distributions to the holders of Convertible Preferred described above, the holders of shares of Convertible Preferred will be entitled to share ratably, on an
as-converted basis, with the holders of Common Stock in the distribution of any remaining assets of the Corporation. No further payment on account of any such liquidation, dissolution or
winding up of the Corporation shall be paid to the holders of the shares of Convertible Preferred or the holders of any Parity Securities unless there shall be paid at the same time to the holders of
the shares of Convertible Preferred and the holders of any Parity Securities proportionate amounts determined ratably in proportion to the full amounts to which the holders of all outstanding shares
of Convertible Preferred and the holders of all such outstanding Parity Securities are respectively entitled with respect to such distribution. 

        Section 4.    Reacquired Shares.    Any shares of Convertible Preferred
repurchased,
redeemed, converted or otherwise acquired by the Corporation shall be retired and canceled promptly after the acquisition or receipt thereof by the Corporation. All such shares shall upon their
cancellation become authorized but unissued shares of preferred stock, without designation as to series. 

        Section 5.    Voting Rights.    

        (A)    General Voting Rights.    Except as may otherwise provided in Section 5(b) hereof or by law, the
Convertible Preferred shall be entitled to notice of all stockholders' meetings in accordance with the Corporation's bylaws, and the holders of the Convertible Preferred shall be entitled to vote on
all matters submitted to the stockholders for a vote together with the holders of the Common Stock, voting together as a single class with each share of Common Stock. Each share of Convertible
Preferred shall be entitled to one vote for each share of Common Stock into which the Convertible 

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Preferred
is convertible as of the record date for such vote or, if no record date is specified, the date of such vote. 

        (B)    Restrictions and Limitations.    For so long as any shares of Convertible Preferred remain outstanding, the
Corporation shall not, without the approval of the holders of at least a majority of the then outstanding shares of Convertible Preferred: 

        (i)    redeem,
purchase or otherwise acquire for value (or pay into or set aside a sinking fund for such purpose) any shares of Junior Stock (as defined below), including
without limitation, shares of Common Stock; 

        (ii)    amend,
repeal or change any provision of, or add any provision to, this Certificate of Designation; 

        (iii)    amend,
repeal or change any provision of the Corporation's Restated Certificate of Incorporation or bylaws if such action would materially adversely impact the
Convertible Preferred or the designation, powers, preferences and rights and the qualifications, limitations and/or restrictions thereof provided for herein; or 

        (iv)    authorize,
designate, issue, and sell shares of preferred stock with powers, rights, and preferences prior or senior to or on a parity with any powers, rights, and
preferences of the Convertible Preferred. 

        Section 6.    Conversion.    Holders of shares of Convertible Preferred shall
have the
right to convert all or a portion of such shares into Common Stock, as follows: 

        (A)  At
any time after the Convertible Original Issue Date and ending (with respect to shares actually redeemed) on the fifth day prior to a Redemption Date (as defined in
Section 7(B)), if any, each such share of Convertible Preferred shall be convertible at the option of the holder thereof into fully paid, non-assessable shares of Common Stock.
Moreover, all outstanding shares of Convertible Preferred shall be automatically converted into shares of Common Stock upon (i) a sale of the Common Stock or a merger of the Corporation that
results in the holders of the Common Stock immediately prior to such sale or merger owning less than 50% of the Common Stock subsequent to the transaction, (ii) the sale of substantially all of
the Corporation's assets or (iii) the completion of a Qualified IPO by the Corporation. The number of shares of Common Stock deliverable upon conversion of each share of Convertible Preferred
shall be determined by dividing the Stated Value of such share of Convertible Preferred by the Convertible Conversion Price then in effect. Upon the conversion of the Convertible Preferred, the rights
to unpaid dividends hereunder shall terminate, and the holder of Convertible Preferred shall not have any right to receive dividends in respect of the Convertible Preferred unless the Board of
Directors of the Corporation shall have declared dividends payable before the date of conversion. 

        (B)  The
Convertible Conversion Price and the number of shares of Common Stock that the holders of Convertible Preferred may purchase hereunder shall be subject to adjustment
as follows: 

        (i)    Issuance of Additional Common Stock.    If the Corporation at any time after the Convertible Original Issue
Date issues or sells shares of its Common Stock, or any securities convertible into or exchangeable for Common Stock ("Convertible Securities"), or in any manner grants any warrants, options or other
rights (collectively, "Options") to purchase shares of Common Stock or Convertible Securities, pursuant to which the subscriber, or the holder of such Option or Convertible Security, is entitled to
purchase any share of Common Stock at less than the Convertible Conversion Price, then the Convertible Conversion Price in effect immediately prior to such action by the Corporation shall be adjusted
by being multiplied by the fraction obtained: 

by
dividing 

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(X),
which is the numerator obtained by adding (A) the total number of issued and outstanding shares of Common Stock immediately prior to the effectiveness of such action by the Corporation,
plus (B) the number of shares of Common Stock that could have been acquired, at the Convertible Conversion Price, with the consideration, if any, received or deemed received by the Corporation
in exchange for such action, 

by 

(Y),
which is the denominator that equals the sum of the actual total number of issued and outstanding shares of Common Stock immediately after the effectiveness of any such transaction. 

        Notwithstanding
anything to the contrary, this paragraph (i) shall not be applicable to, and shall not include, (1) any shares of Common Stock or any Options or Convertible
Securities issued or issuable to officers, directors, employees and consultants or other service providers of the Corporation pursuant to a stock grant, stock option plan or purchase plan or other
employee stock incentive program or agreement or consulting agreement which is or was previously in existence as of the date of filing of this Certificate of Designation with the Secretary of State of
Delaware or which has been approved by the Corporation's stockholders, or (2) any shares of Common Stock issuable upon conversion of the Convertible Preferred. 

        (ii)    Subdivision or Combination of Common Stock.    If the Corporation at any time after the Convertible Original
Issue Date hereof subdivides (by any stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Convertible Conversion
Price in effect immediately prior to such subdivision will be proportionately reduced and the number of shares of Common Stock into which each share of Convertible Preferred is then convertible shall
be proportionately increased, and if the Corporation at any time combines (by reverse stock split or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Convertible
Conversion Price in effect immediately prior to such combination will be proportionately increased and the number of shares of Common Stock into which each share of Convertible Preferred is then
convertible shall be proportionately decreased. 

        (iii)    Reorganization, Reclassification, Consolidation, Merger or Sale.    Any capital reorganization,
reclassification, consolidation, merger or sale of all or substantially all of the Corporation's assets to another person which is effected in such a way that holders of Common Stock are entitled to
receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock is referred to herein as an "Organic Change." Prior to the
consummation of any Organic Change, the Corporation will make appropriate provisions (in form and substance satisfactory to holders of two-thirds of the then outstanding shares of
Convertible Preferred) to ensure that the Convertible Preferred holders will thereafter have the right to acquire and receive, in lieu of or in addition to the shares of Common Stock that immediately
prior thereto are acquirable and receivable upon the conversion of the Convertible Preferred, such shares of stock, securities or assets as such holders would have received in connection with such
Organic Change if such holders had fully converted all Convertible Preferred immediately prior to such Organic Change. The Corporation will not effect any such consolidation, merger or sale, unless
prior to the consummation thereof, the successor (if other than the Corporation) resulting from consolidation or merger or the party purchasing such assets assumes by written instrument (in form
reasonably satisfactory to the holders of two-thirds of the then outstanding shares of Convertible Preferred), the obligation to deliver to the Convertible Preferred holders such shares of
stock, securities or assets as, in accordance with the foregoing provisions, such holders may be entitled to acquire. 

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        (iv)    Treasury Shares.    The number of shares of Common Stock outstanding at any given time does not include shares
owned or held by or for the account of the Corporation or any of its subsidiaries, and the disposition of any shares so owned or held will be considered an issue or sale of Common Stock. 

        (v)    Record Date.    If the Corporation takes a record of the holders of Common Stock for the purpose of entitling
them (A) to receive a dividend or other distribution payable in Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase Common Stock, Options or
Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend
or upon the
making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. 

        (C)    In
the event that the Corporation proposes to take any action specified in this Section which requires any adjustment of the Convertible Conversion Price, then and in
each such case, at least ten days prior to any such event, the Corporation shall provide to the Convertible Preferred holders written notice of the date on which the books of the Corporation shall
close or a record shall be taken for such dividend, distribution, or subscription rights or for determining rights to vote in respect of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation, winding-up, or transaction. Such notice shall also specify, as applicable, the date on which the holders of capital stock shall be entitled thereto
or the date on which the holders of capital stock shall be entitled to exchange their stock for securities or other property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation, winding-up, or transaction, as the case may be. Such notice shall also state that the action in question or the record date is subject to the
effectiveness of a registration statement under the Securities Act of 1933, as amended, or to a favorable vote of security holders, if either is required. Furthermore, any notice shall state the
Convertible Conversion Price resulting from such adjustment and the increase or decrease, if any, in the number of shares obtainable at such price upon exercise, setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based. 

        (D)    The
conversion of any share of Convertible Preferred may be effected by the holder thereof by the surrender of the certificate or certificates therefor, duly endorsed,
at the principal offices of the Corporation or to such agent or agents of the Corporation as may be designated by the Board of Directors and by giving written notice to the Corporation that such
holder elects to convert the same. 

        (E)    As
promptly as practicable after the surrender of shares of Convertible Preferred for conversion, the Corporation shall issue and deliver or cause to be issued and
delivered to the holder of such shares certificates representing the number of fully paid and non-assessable shares of Common Stock into which such shares of Convertible Preferred have
been converted in accordance with the provisions of this Section. Subject to the following provisions of this Section, such conversion shall be deemed to have been made as of the close of business on
the date on which the shares of Convertible Preferred shall have been surrendered for conversion in the manner herein provided, so that the rights of the holder of the shares of Convertible Preferred
so surrendered shall cease at such time, and the person or persons entitled to receive the shares of Common Stock upon conversion thereof shall be treated for all purposes as having become the record
holder or holders of such shares of Common Stock at such time; provided, however, that any such surrender on any date when the stock transfer books of
the Corporation are closed shall be deemed to have been made, and shall be effective to terminate the rights of the holder or holders of the shares of Convertible Preferred so surrendered for
conversion and to constitute the person or persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes, at the opening of business on the next
succeeding day on which such transfer books are open. 

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        (F)    The
Corporation shall not be required to issue fractional shares of stock upon the conversion of the Convertible Preferred. As to any final fraction of a share which the
holder of one or more shares of Convertible Preferred would otherwise be entitled to receive upon conversion, the Corporation shall, in lieu of issuing any fractional share, the fraction will be
rounded up or down to the nearest whole number of shares. 

        Section 7.    Redemption.    

        (A)    The
Corporation may at any time it may lawfully do so after February 1, 2012, at the sole option of the Corporation, redeem in whole or in part the Convertible
Preferred by paying in cash therefor a sum equal to the Convertible Redemption Price (defined in Section 7(E) below). Any redemption effected
pursuant to this provision shall be made ratably among the holders of the Convertible Preferred in the proportion that the number of each holder's Convertible Preferred shares bears to the total
number of shares of Convertible Preferred then outstanding. 

        (B)    As
a condition to any such redemption pursuant to this Section 7, the Corporation shall provide written notice (each a "Redemption
Notice") to each holder of Convertible Preferred at least 10 days and no more than 30 days prior to the date of redemption (the
"Redemption Date") that the Corporation has exercised its rights pursuant to this Section 7 to redeem shares of Convertible Preferred. Each
Redemption Notice shall (i) be mailed to each holder of Convertible Preferred at the address last shown on the records of the Corporation, (ii) notify such holders of the redemption to
be effected, (iii) specify the number of shares of Convertible Preferred to be redeemed from such holder, the Redemption Date, the Convertible Redemption Price, and the place at which payment
may be obtained upon such redemption, and (iv) call upon each holder to surrender to the Corporation, in the manner and at the place designated in such notice, the certificate or certificates
representing the shares to be redeemed. Each holder shall surrender to the Corporation, in the manner set forth in the Redemption Notice, the certificate or certificates representing shares of
Convertible Preferred redeemed in accordance with this Section 7, and thereupon the Redemption Price of such shares shall be payable to the order of the person whose name appears on such
certificate or certificates as the owner thereof. Each such surrendered certificate shall be cancelled. In the event that less than all shares represented by a certificate shall be redeemed, a new
certificate shall be issued representing the unredeemed shares. 

        (C)    From
and after a Redemption Date, unless there shall have been a default in the payment of the applicable Convertible Redemption Price, the rights of all holders of
Convertible Preferred designated for redemption in the corresponding Redemption Notice as holders of Convertible Preferred (except the right to receive the Convertible Redemption Price without
interest thereon upon surrender of their
certificate or certificates) shall cease with respect to such shares, and such shares may not be thereafter transferred upon the books of the Corporation or be deemed outstanding for any purpose
whatsoever. 

        (D)    If
the funds of the Corporation legally available for the redemption of shares of Convertible Preferred on any Redemption Date are insufficient to redeem the total
number of shares of Convertible Preferred to be redeemed on such date, those funds which are legally available will be used to redeem the maximum number of such shares ratably among the holders of
such shares to be redeemed based upon their holdings of the outstanding Convertible Preferred. The Convertible Preferred not redeemed as a result of insufficient legally available funds shall remain
outstanding and entitled to all rights and preferences provided herein. At any time thereafter when additional funds of the Corporation are legally available for redemption of the shares of
Convertible Preferred, such funds will be immediately used to redeem the balance of the shares which the Corporation has become obligated to redeem on any Redemption Date, but which has not been
redeemed. 

        (E)    As
used herein, the term "Convertible Redemption Price" shall mean 101% of the Stated Value per share of Convertible
Preferred plus all cumulative dividends that are accrued and unpaid 

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thereon
as of the Redemption Date (or, if the Corporation is unable to redeem such shares because it has insufficient legally available funds, such later date on which the Convertible Redemption Price
is actually paid). 

        Section 8.    Dividend Provisions.    

        (A)    Cumulative Dividends.    The holders of record of the Convertible Preferred shall be entitled to receive
cumulative dividends at a rate of six percent (6%) per annum, compounded semi-annually, on the Stated Value (subject to adjustment for stock splits, stock dividends, reorganization,
reclassification or similar events (the "Adjusted Face Value")). At the discretion of the Corporation, any and all dividends are payable in additional shares of Convertible Preferred, each share being
valued at $40.00 for such purposes (the "PIK Shares") in lieu of cash. The Corporation shall, at all times as PIK Shares are authorized for payment hereby, have in reserve an amount of Convertible
Preferred as shall be necessary to pay all dividends in full in the form of PIK Shares. When issued, holders of such PIK Shares shall be entitled to the same rights, preferences, voting powers,
qualifications and privileges, including the right to receive cumulative dividends, as the shares of Convertible Preferred originally issued. 

        (B)    Payment.    Dividends on shares of Convertible Preferred shall be payable semi-annually in arrears,
when and as declared by the Board, on December 1 and June 1 of each year or the next business day if such date falls on a Saturday, Sunday, or legal holiday (each such date being herein
referred to as a "Dividend Payment Date") to holders of record as they appear on the records of the Corporation on any record date not exceeding sixty (60) days preceding such Dividend Payment
Date;
provided, however, that if the initial Dividend Payment Date following the issuance of shares of Convertible Preferred represents less than a full quarterly period, the dividends for such period shall
be due and payable on the next succeeding Dividend Payment Date. Dividends in arrears may be declared by the Board and paid at any time out of funds legally available therefor, without reference to
any regular Dividend Payment Date, to holders of record on any record date, not exceeding sixty (60) days preceding the payment date thereof, as may be fixed by the Board. 

        (C)    Default in Payment.    Dividends on the Convertible Preferred, including PIK Shares, if issued, shall commence
to accrue and shall be cumulative from and after the date of initial issuance thereof, whether or not declared by the Board. To the extent that dividends remain unpaid after the applicable Dividend
Payment Date, additional dividends shall accrue thereon at a rate of six percent (6%) per annum until paid and shall be a continuing obligation of the Corporation. Dividends paid on the shares of
Convertible Preferred, including PIK Shares, in an amount less than the total amount of dividends at the time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding. 

        (D)    Dividends on Common or Junior Stock.    The Convertible Preferred shall rank senior to all Junior Stock (as
defined below) of the Corporation with respect to the payment of dividends. No dividend or distribution (other than a dividend or distribution paid in Common Stock or in any other Junior Stock (as
defined below)) shall be declared or paid or set aside for payment on the Common Stock or on any other Junior Stock, nor shall any Common Stock or any other Junior Stock be redeemed, purchased or
otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any shares of any such stock) by the Corporation (except by conversion
into or exchange for shares of Common Stock or other Junior Stock) unless, in each case, full cumulative dividends on all outstanding shares of the Convertible Preferred shall have been declared and
paid through and including the most recent Dividend Payment Date. 

        Section 9.    Senior Securities.    The Corporation shall not create or issue
any
Senior Securities without the consent of the holders of a majority of the then outstanding shares of Convertible Preferred, such consent to be obtained in advance of the issuance of any such Senior
Securities after 

7

 

the
Corporation has furnished such holders with the relevant terms and conditions of the Senior Securities in reasonable detail. 

        Section 10.    Record Holders.    The Corporation may deem and treat the record
holder
of any shares of Convertible Preferred as the true and lawful owner thereof for all purposes, and the Corporation shall not be affected by any notice to the contrary. 

        Section 11.    Notice.    Except as may otherwise be provided by law or provided
for
herein, all notices referred to herein shall be in writing, and all notices hereunder shall be deemed to have been given upon
receipt, in the case of a notice of conversion given to the Corporation, or, in all other cases, upon the earlier of receipt of such notice or three Business Days after the mailing of such notices
sent by registered mail (unless first-class mail shall be specifically permitted for such notice under the terms hereof) with postage prepaid, addressed: If to the Corporation, to its principal
executive offices or to any agent of the Corporation designated as permitted hereby; or if to a holder of the Convertible Preferred, to such holder at the address of such holder of the Convertible
Preferred as listed in the stock record books of the Corporation, or to such other address as the Corporation or holder, as the case may be, shall have designated by notice similarly given. 

        Section 12.    Successors and Transferees.    The provisions applicable to
shares of
Convertible Preferred shall bind and inure to the benefit of and be enforceable by the Corporation, the respective successors to the Corporation, and by any record holder of shares of Convertible
Preferred. 

        IN
WITNESS WHEREOF, said Corporation has caused this Certificate of Designation to be signed by its duly authorized officer this 27th day of February, 2009. 

				
	 	ELLORA ENERGY INC.
	
 	
 By:	
 	
/s/ STEVEN R. ENGER

  Steven R. Enger, Executive Vice President

and Chief Financial Officer

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