Document:

<PAGE>
                                                                    EXHIBIT 10.1

The portion of this Exhibit 10.1 marked "******" has been omitted and
confidentially filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 promulgated under the Securities Exchange Act of 1934, as amended.

================================================================================

                         LOAN AGREEMENT PROVIDING FOR A
                        SENIOR SECURED TERM LOAN FACILITY
                              OF UP TO $32,000,000

                            CENTRAL GULF LINES, INC.
                                  as Borrower,

                                       AND

        The Banks and Financial Institutions listed on Schedule I hereto,
                                   as Lenders,

                                       AND

                                DNB NOR BANK ASA,
                         as Facility Agent and Arranger,

                     DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT
                        as Security Trustee and Arranger

                                       AND

                     INTERNATIONAL SHIPHOLDING CORPORATION,
                                  as Guarantor

================================================================================

                               September 26, 2005

<PAGE>
                                    CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   PAGE
                                                                                                                   ----
<S>      <C>                                                                                                       <C>
1.       DEFINITIONS.................................................................................................1
         1.1      Specific Definitions...............................................................................1
         1.2      Computation of Time Periods; Other Definitional Provisions........................................12
         1.3      Accounting Terms..................................................................................12
         1.4      Certain Matters Regarding Materiality.............................................................12
2.       REPRESENTATIONS AND WARRANTIES.............................................................................12
         2.1      Representations and Warranties....................................................................12
            (a)   Due Organization and Power........................................................................13
            (b)   Authorization and Consents........................................................................13
            (c)   Binding Obligations...............................................................................13
            (d)   No Violation......................................................................................13
            (e)   Filings; Stamp Taxes..............................................................................13
            (f)   Litigation........................................................................................13
            (g)   No Default........................................................................................13
            (h)   Vessel............................................................................................14
            (i)   Insurance.........................................................................................14
            (j)   Financial Information.............................................................................14
            (k)   Tax Returns.......................................................................................14
            (l)   ERISA.............................................................................................14
            (m)   Chief Executive Office............................................................................15
            (n)   Foreign Trade Control Regulations.................................................................15
            (o)   Equity Ownership..................................................................................15
            (p)   Environmental Matters and Claims..................................................................15
            (q)   Compliance with ISM Code, ISPS Code and MTSA......................................................16
            (r)   Threatened Withdrawal of DOC or SMC...............................................................16
            (s)   Liens.............................................................................................16
            (t)   Indebtedness......................................................................................16
            (u)   Payment Free of Taxes.............................................................................16
            (v)   No Proceedings to Dissolve........................................................................16
            (w)   Solvency..........................................................................................16
            (x)   Compliance with Laws..............................................................................16
            (y)   Survival..........................................................................................16
3.       THE LOAN...................................................................................................17
         3.1(a)   Purposes..........................................................................................17
            (b)   Making of the Loan................................................................................17
         3.2      Drawdown Notice...................................................................................17
         3.3      Effect of Drawdown Notice.........................................................................17
4.       CONDITIONS.................................................................................................17
         4.1      Conditions Precedent to the Effectiveness of this Agreement.......................................17
            (a)   Corporate Authority...............................................................................17
            (b)   The Agreement.....................................................................................18
            (c)   The Note..........................................................................................18
            (d)   The Creditors.....................................................................................18
            (e)   Fees..............................................................................................18
            (f)   Environmental Claims..............................................................................18
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                   PAGE
                                                                                                                   ----
<S>      <C>                                                                                                       <C>
            (g)   Legal Opinions....................................................................................18
            (h)   Officer's Certificate.............................................................................18
            (i)   Vessel Documents..................................................................................19
            (j)   Security Documents................................................................................19
            (k)   Vessel Appraisals.................................................................................19
            (l)   ISM DOC...........................................................................................19
            (m)   Evidence of Current COFR..........................................................................19
            (n)   Vessel Liens......................................................................................19
            (o)   NYK Charter.......................................................................................19
            (p)   Memorandum of Agreement...........................................................................19
            (q)   Vessel Delivery...................................................................................20
            (r)   Maritime Administration Approval..................................................................20
         4.2      Further Conditions Precedent......................................................................20
            (a)   Drawdown Notice...................................................................................20
            (b)   Representations and Warranties True...............................................................20
            (c)   No Default........................................................................................20
            (d)   No Material Adverse Effect........................................................................20
         4.3      Breakfunding Costs................................................................................20
         4.4      Satisfaction after Drawdown.......................................................................20
5.       REPAYMENT AND PREPAYMENT...................................................................................20
         5.1      Repayment.........................................................................................20
         5.2      Voluntary Prepayment; No Re-borrowing.............................................................21
         5.3      Mandatory Prepayment; Sale or Loss of Vessel......................................................21
         5.4      Interest and Cost With Application of Prepayments.................................................21
         5.5      Borrower's Obligation Absolute....................................................................21
6.       INTEREST AND RATE..........................................................................................21
         6.1      Payment of Interest; Interest Rate................................................................21
         6.2      Maximum Interest..................................................................................22
7.       PAYMENTS...................................................................................................22
         7.1      Place of Payments, No Set Off.....................................................................22
         7.2      Tax Credits.......................................................................................22
         7.3      Computations; Banking Days........................................................................22
8.       EVENTS OF DEFAULT..........................................................................................23
         8.1      Events of Default.................................................................................23
            (a)   Principal Payments................................................................................23
            (b)   Interest and other Payments.......................................................................23
            (c)   Representations, etc..............................................................................23
            (d)   Impossibility, Illegality.........................................................................23
            (e)   Mortgage..........................................................................................23
            (f)   Certain Covenants.................................................................................23
            (g)   Covenants.........................................................................................23
            (h)   Indebtedness and Other Obligations................................................................23
            (i)   Bankruptcy........................................................................................24
            (j)   Judgments.........................................................................................24
            (k)   Inability to Pay Debts............................................................................24
            (l)   Termination of Operations; Sale of Assets.........................................................24
            (m)   Change in Financial Position......................................................................24
            (n)   Cross-Default.....................................................................................24
            (o)   ERISA Debt........................................................................................24
</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                   PAGE
                                                                                                                   ----
<S>      <C>                                                                                                       <C>
            (p)   Time Charter......................................................................................25
         8.2      Indemnification...................................................................................25
         8.3      Application of Moneys.............................................................................25
9.       COVENANTS..................................................................................................26
         9.1      Affirmative Covenants.............................................................................26
            (a)   Performance of Agreements.........................................................................26
            (b)   Notice of Default, etc............................................................................26
            (c)   Obtain Consents...................................................................................26
            (d)   Financial Information.............................................................................26
            (e)   Contingent Liabilities............................................................................27
            (f)   Vessel Valuations.................................................................................27
            (g)   Corporate Existence...............................................................................27
            (h)   Books and Records.................................................................................27
            (i)   Taxes and Assessments.............................................................................28
            (j)   Inspection........................................................................................28
            (k)   Inspection and Survey Reports.....................................................................28
            (l)   Compliance with Statutes, Agreements, etc.........................................................28
            (m)   Environmental Matters.............................................................................28
            (n)   Insurance.........................................................................................28
            (o)   Vessel Management.................................................................................28
            (p)   Brokerage Commissions, etc........................................................................29
            (q)   ISM Code, ISPS Code and MTSA Matters..............................................................29
            (r)   ERISA.............................................................................................29
            (s)   Evidence of Current COFR..........................................................................29
         9.2      Negative Covenants................................................................................29
            (a)   Liens.............................................................................................29
            (b)   Third Party Guaranties............................................................................30
            (c)   Liens on Shares of Borrower.......................................................................30
            (d)   Subordination of Inter-Company Indebtedness.......................................................30
            (e)   Transaction with Affiliates.......................................................................30
            (f)   Change of Flag, Class, Management or Ownership....................................................30
            (g)   Chartering........................................................................................30
            (h)   Change in Business................................................................................30
            (i)   Sale of Assets....................................................................................31
            (j)   Changes in Offices or Names.......................................................................31
            (k)   Consolidation and Merger..........................................................................31
            (l)   Change Fiscal Year................................................................................31
            (m)   Indebtedness......................................................................................31
            (n)   Limitations on Ability to Make Distributions......................................................31
            (o)   Change of Control.................................................................................31
            (p)   No Money Laundering...............................................................................31
         9.3      Financial Covenants...............................................................................31
            (a)   Consolidated Indebtedness to Consolidated EBITDA Ratio............................................31
            (b)   Working Capital...................................................................................32
            (c)   Consolidated Tangible Net Worth...................................................................32
            (d)   Consolidated EBITDA to Interest Expense...........................................................32
         9.4      Asset Maintenance.................................................................................32
10.      GUARANTEE..................................................................................................32
         10.1     The Guarantee.....................................................................................32
</TABLE>

                                       3
<PAGE>

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<S>      <C>                                                                                                       <C>
         10.2     Obligations Unconditional.........................................................................32
         10.3     Reinstatement.....................................................................................33
         10.4     Subrogation.......................................................................................33
         10.5     Remedies..........................................................................................33
         10.6     Joint, Several and Solidary Liability.............................................................34
         10.7     Continuing Guarantee..............................................................................34
11.      ASSIGNMENT.................................................................................................34
12.      ILLEGALITY, INCREASED COST, NON-AVAILABILITY, ETC..........................................................34
         12.1     Illegality........................................................................................34
         12.2     Increased Costs...................................................................................35
         12.3     Nonavailability of Funds..........................................................................35
         12.4     Lender's Certificate Conclusive...................................................................36
         12.5     Compensation for Losses...........................................................................36
13.      CURRENCY INDEMNITY.........................................................................................36
         13.1     Currency Conversion...............................................................................36
         13.2     Change in Exchange Rate...........................................................................36
         13.3     Additional Debt Due...............................................................................36
         13.4     Rate of Exchange..................................................................................36
14.      FEES AND EXPENSES..........................................................................................37
         14.1     Fees..............................................................................................37
         14.2     Expenses..........................................................................................37
15.      APPLICABLE LAW, JURISDICTION AND WAIVER....................................................................37
         15.1     Applicable Law....................................................................................37
         15.2     Jurisdiction......................................................................................37
         15.3     WAIVER OF JURY TRIAL..............................................................................38
16.      THE AGENTS.................................................................................................38
         16.1     Appointment of Agents.............................................................................38
         16.2     Appointment of Security  Trustee..................................................................38
         16.3     Distribution of Payments..........................................................................38
         16.4     Holder of Interest in Note........................................................................39
         16.5     No Duty to Examine, Etc...........................................................................39
         16.6     Agents as Lenders.................................................................................39
         16.7     Acts of the Agents................................................................................39
         16.8     Certain Amendments................................................................................40
         16.9     Assumption re Event of Default....................................................................40
         16.10    Limitations of Liability..........................................................................40
         16.11    Indemnification of the Agent and Security Trustee.................................................41
         16.12    Consultation with Counsel.........................................................................41
         16.13    Resignation.......................................................................................41
         16.14    Representations of Lenders........................................................................41
         16.15    Notification of Event of Default..................................................................42
17.      NOTICES AND DEMANDS........................................................................................42
         17.1     Notices...........................................................................................42
18.      MISCELLANEOUS..............................................................................................42
         18.1     Time of Essence...................................................................................42
         18.2     Unenforceable, etc., Provisions - Effect..........................................................42
         18.3     References........................................................................................43
         18.4     Further Assurances................................................................................43
         18.5     Prior Agreements, Merger..........................................................................43
</TABLE>

                                       4
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<S>      <C>                                                                                                       <C>

         18.6     Entire Agreement; Amendments......................................................................43
         18.7     Indemnification...................................................................................43
         18.8     Headings..........................................................................................43
</TABLE>

SCHEDULES

    I    The Lenders and the Commitments
    II   The Applicable Margin
    III  Approved Ship Brokers
    IV   Liens
    V    Indebtedness

EXHIBITS

         A        Form of Promissory Note
         B        Form of Drawdown Notice
         C        Form of Compliance Certificate
         D        Form of Assignment and Assumption Agreement
         E        Form of Earnings Assignment
         F        Form of Insurances Assignment
         G        Form of U.S. Preferred Mortgage

                                       5
<PAGE>

                          SENIOR SECURED LOAN AGREEMENT

THIS SENIOR SECURED LOAN AGREEMENT (the "Loan Agreement" or "Agreement") is made
as of the 26th day of September 2005, by and among (1) CENTRAL GULF LINES, INC.,
a corporation organized and existing under the laws of the State of Delaware
(the "Borrower"), (2) INTERNATIONAL SHIPHOLDING CORPORATION, a corporation
organized and existing under the laws of the State of Delaware (the
"Guarantor"), as guarantor, (3) the banks and financial institutions listed on
Schedule I, as lenders (together with any bank or financial institution which
becomes a Lender pursuant to Article 11, the "Lenders" and each a "Lender"), (4)
DNB NOR BANK ASA ("DnB NOR"), as facility agent (in such capacity including any
successor thereto, the "Facility Agent") and as arranger and (5) DEUTSCHE
SCHIFFSBANK AKTIENGESELLSCHAFT ("DSB"), as security trustee for the Lenders (in
such capacity, the "Security Trustee") and as arranger.

                                WITNESSETH THAT:

                  WHEREAS, at the request of the Borrower, each of the Agents
(as defined below) has agreed to serve in such capacity under the terms of this
Agreement and the Lenders have agreed to provide to the Borrower a senior
secured term loan facility in the amount of up to Thirty-Two Million United
States Dollars (US $32,000,000);

                  NOW, THEREFORE, in consideration of the premises set forth
above, the covenants and agreements hereinafter set forth, and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as set forth below:

1. DEFINITIONS

1.1 Specific Definitions. In this Agreement the words and expressions specified
below shall, except where the context otherwise requires, have the meanings
attributed to them below:

<TABLE>
<S>                                           <C>
"Acceptable Accounting Firm"                  shall mean Ernst & Young LLP, or such other recognized international
                                              accounting firm as shall be approved by the Facility Agent, such
                                              approval not to be unreasonably withheld;

"Affiliate"                                   shall mean with respect to any Person, any other Person directly or
                                              indirectly controlled by or under common control with such Person.
                                              For the purposes of this definition, "control" (including, with
                                              correlative meanings, the terms "controlled by" and "under common
                                              control with") as applied to any Person means the possession directly
                                              or indirectly of the power to direct or cause the direction of the
                                              management and policies of that Person whether through ownership of
                                              voting securities or by contract or otherwise;

"Agents"                                      shall mean each of the Facility Agent and the Security Trustee;
</TABLE>

<PAGE>

<TABLE>
<S>                                           <C>
"Agreement"                                   shall mean this Agreement, as the same shall be amended, modified or
                                              supplemented from time to time;

"Applicable Margin"                           shall mean a margin which will vary as set forth on Schedule II
                                              attached hereto;

"Applicable Rate"                             shall mean any rate of interest applicable to the Loan from time to
                                              time pursuant to Section 6.1;

"Arrangers"                                   shall mean each of the Facility Agent and the Security Trustee;

"Assigned Moneys"                             shall mean sums assigned to or received by the Security Trustee
                                              pursuant to any Security Document;

"Assignment and Assumption Agreement(s)"      shall mean any Assignment and Assumption Agreement(s) executed
                                              pursuant to Section 11 substantially in the form set out in Exhibit D;

"Assignment Notices"                          shall mean (a) the notice with respect to the Earnings Assignment
                                              substantially in the form set out in Exhibit 1 thereto and (b) the
                                              notice with respect to the Insurances Assignment substantially in the
                                              form set out in Exhibit 3 thereto;

"Assignments"                                 shall mean the Earnings Assignment and the Insurances Assignment;

"Banking Day(s)"                              shall mean any day that is not a Saturday, Sunday or other day on
                                              which (a) banks in New York, New York, Bremen, Germany, and London,
                                              England are authorized or required by law to remain closed, or (b)
                                              banks are not generally open for dealing in dollar deposits in the
                                              London interbank market;

"Borrower"                                    shall have the meaning ascribed thereto in the preamble;

"Change of Control"                           shall mean (a) any "person" (as such term is used in Sections 13(d)
                                              and 14(d) of the Exchange Act), other than the existing owners, that
                                              becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5
                                              under the Exchange Act), directly or indirectly, of more than 30% of
                                              the total voting power of the Guarantor or (b) the Guarantor ceases to
                                              own, directly or indirectly, 100% of the Borrower or (c) the Board of
                                              Directors of the Borrower or the Guarantor ceases to consist of a
                                              majority of the directors existing on the date hereof or directors
                                              nominated by at least two-thirds (2/3) of the then existing directors
                                              or (d) the Johnsen Family shall cease to own at least twenty percent
                                              (20%) of the Guarantor;
</TABLE>

                                        2
<PAGE>

<TABLE>
<S>                                           <C>
"Charterer's Acknowledgment"                  shall mean the acknowledgment of the Time Charterer to the Assignment
                                              of Earnings in the form of Exhibit 2 thereto;

"Classification Society"                      shall mean a member of the International Association of Classification
                                              Societies acceptable to the Lenders with whom the Vessel is entered
                                              and who conducted periodic physical surveys and/or inspections of the
                                              Vessel;

"Closing Date"                                shall mean the day and year first written above;

"Code"                                        shall mean the Internal Revenue Code of 1986, as amended, and any
                                              successor statute and regulation promulgated thereunder;

"Collateral"                                  shall mean, all property or other assets, real or personal, tangible
                                              or intangible, whether now owned or hereafter acquired in which the
                                              Security Trustee or any Lender has been granted a security interest
                                              pursuant to a Security Document;

"Commitment(s)"                               shall mean in relation to a Lender, the portion of the Loan set out
                                              opposite its name in Schedule I hereto or, as the case may be, in any
                                              relevant Assignment and Assumption Agreement, as changed from time to
                                              time pursuant to the terms of this Agreement;

"Compliance Certificate"                      shall mean a certificate certifying the compliance by each of the
                                              Security Parties with all of its covenants contained herein and
                                              showing the calculations thereof in reasonable detail, delivered by
                                              the chief financial officer of the Guarantor to the Facility Agent
                                              from time to time pursuant to Section 9.1(d) in the form set out in
                                              Exhibit C or in such other form as the Facility Agent may agree;

"Consolidated EBITDA"                         shall mean, for any period, with respect to the Guarantor and the
                                              Subsidiaries, the sum of (without duplication) (a) Consolidated Net
                                              Income; (b) all Interest Expenses of the Guarantor and the
                                              Subsidiaries; (c) income taxes of the Guarantor and the Subsidiaries;
                                              and (d) depreciation and amortization of the Guarantor and the
                                              Subsidiaries determined on a consolidated basis in accordance with
                                              GAAP for such period; provided that if any Subsidiary is not
                                              wholly-owned by the Guarantor, Consolidated EBITDA shall be reduced
                                              (to the extent not otherwise reduced in accordance with GAAP) by an
                                              amount equal to (i) the amount of Consolidated Net Income
                                              attributable to such Subsidiary multiplied by (ii) the percentage
</TABLE>

                                        3
<PAGE>

<TABLE>
<S>                                           <C>
                                              ownership interest in the income of such Subsidiary not owned by the
                                              Guarantor on the last day of such period;

"Consolidated Indebtedness"                   all Indebtedness of the Guarantor and the Subsidiaries determined on
                                              a consolidated basis in accordance with GAAP;

"Consolidated Net Income"                     for any period shall mean the consolidated net income of the Guarantor
                                              and the Subsidiaries for such period, as shown on the consolidated
                                              financial statements of the Guarantor and the Subsidiaries delivered
                                              in accordance with Section 9.1 (d);

"Consolidated Tangible Net Worth"             shall mean, with respect to the Guarantor and its Subsidiaries, at
                                              any date for which a determination is to be made (determined on a
                                              consolidated basis without duplication in accordance with GAAP) (a)
                                              the amount of capital stock (including its outstanding preferred
                                              stock); plus (b) the amount of surplus and retained earnings (or, in
                                              the case of a surplus or retained earnings deficit, minus the amount
                                              of such deficit); plus (c) deferred charges to the extent amortized
                                              and acquired contract costs net of accumulated amortization as stated
                                              on the then most recent audited balance sheet of the Guarantor; minus
                                              (d) the sum of (i) the cost of treasury shares and (ii) the book
                                              value of all assets that should be classified as intangibles (without
                                              duplication of deductions in respect of items already deducted in
                                              arriving at surplus and retained earnings) but in any event including
                                              goodwill, minority interests, research and development costs,
                                              trademarks, trade names, copyrights, patents and franchises,
                                              unamortized debt discount and expense, all reserves and any write up
                                              in the book value of assets resulting from a revaluation thereof
                                              subsequent to December 31, 1996;

"Creditors"                                   shall mean, together, the Agents and the Lenders, each a "Creditor";

"Default"                                     shall mean any event that would, with the giving of notice or passage
                                              of time, or both, be an Event of Default;

"Default Rate"                                shall mean a rate per annum equal to two percent (2%) over the
                                              Applicable Rate then in effect;

"DnB NOR"                                     shall have the meaning ascribed thereto in the preamble;

"DOC"                                         shall mean a document of compliance issued to an Operator in
                                              accordance with rule 13 of the ISM Code;
</TABLE>

                                        4
<PAGE>

<TABLE>
<S>                                           <C>
"Dollars" and the sign "$"                    shall mean the legal currency, at any relevant time hereunder, of the
                                              United States of America and, in relation to all payments hereunder,
                                              in same day funds settled through the New York Clearing House
                                              Interbank Payments System (or such other Dollar funds as may be
                                              determined by the Facility Agent to be customary for the settlement
                                              in New York City of banking transactions of the type herein involved);

"Drawdown Date"                               shall mean the date, being a Banking Day, upon which the Borrower has
                                              requested that the Loan be made available to the Borrower, and the
                                              Loan is made, as provided in Section 3;

"Drawdown Notice"                             shall have the meaning ascribed thereto in Section 3.2;

"DSB"                                         shall have the meaning ascribed thereto in the preamble;

"Earnings Assignment"                         shall mean the first priority assignment in respect of the earnings of
                                              the Vessel from any and all sources to be executed by the Borrower in
                                              favor of the Security Trustee pursuant to Section 4.1(k),
                                              substantially in the form set out in Exhibit E;

"Environmental Affiliate(s)"                  shall mean, with respect to a Security Party, any Person or entity,
                                              the liability of which for Environmental Claims any Security Party may
                                              have assumed by contract or operation of law;

"Environmental Approval(s)"                   shall have the meaning ascribed thereto in Section 2.1(p);

"Environmental Claim(s)"                      shall have the meaning ascribed thereto in Section 2.1(p);

"Environmental Law(s)"                        shall have the meaning ascribed thereto in Section 2.1(p);

"ERISA"                                       shall mean the Employment Retirement Income Security Act of 1974, as
                                              amended;

"ERISA Affiliate"                             shall mean a trade or business (whether or not incorporated) which is
                                              under common control with the Borrower within the meaning of Sections
                                              414(b), (c), (m) or (o) of the Code;

"ERISA Group"                                 shall mean the Guarantor and its subsidiaries within the meaning of
                                              Section 424(f) of the Code;

"Event(s) of Default"                         shall mean any of the events set out in Section 8.1;

"Exchange Act"                                shall mean the Securities and Exchange Act of 1934, as amended;
</TABLE>

                                        5
<PAGE>

<TABLE>
<S>                                           <C>
"Facility Agent"                              shall have the meaning ascribed thereto in the preamble;

"Fair Market Value"                           shall mean, in respect of the Vessel, the average of two appraisals on
                                              a "willing seller, willing buyer" basis of the Vessel from ship
                                              brokers listed in Schedule III or such other independent ship brokers
                                              approved by the Majority Lenders, no such appraisal to be dated more
                                              than thirty (30) days prior to the date on which a determination of
                                              Fair Market Value is required pursuant to this Agreement;

"Final Payment"                               shall mean the principal amount of Five Million Nine Hundred Ninety
                                              Nine Thousand Nine Hundred Ninety Nine Dollars and Eighty Seven Cents
                                              ($5,999,999.87) plus such other amounts as may be necessary to repay
                                              the Loan in full together with accrued but unpaid interest and any
                                              other amounts owing by any Security Party to any Creditor pursuant to
                                              this Agreement, the Note or any Security Document;

"Final Payment Date"                          shall mean the date which is ten (10) years from the date hereof,
                                              unless such date is not a Banking Day, in which case the Final Payment
                                              Date shall be the Banking Day immediately preceding such ten (10) year
                                              anniversary of the date hereof;

"GAAP"                                        shall have the meaning ascribed thereto in Section 1.3;

"Guarantor"                                   shall have the meaning ascribed thereto in the preamble;

"Indebtedness"                                shall mean, with respect to any Person at any date of determination
                                              (without duplication), (i) all indebtedness of such Person for
                                              borrowed money, (ii) all obligations of such Person evidenced by
                                              bonds, debentures, notes or other similar instruments, (iii) all
                                              obligations of such Person in respect of letters of credit or other
                                              similar instruments (including reimbursement obligations with respect
                                              thereto), (iv) all obligations of such Person to pay the deferred and
                                              unpaid purchase price of property or services, which purchase price is
                                              due more than six months after the date of placing such property in
                                              service or taking delivery thereof or the completion of such services,
                                              except trade payables, (v) all obligations on account of principal of
                                              such Person as lessee under capitalized leases, (vi) all indebtedness
                                              of other Persons secured by a lien on any asset of such Person,
                                              whether or not such indebtedness is assumed by such Person; provided
                                              that the amount of such indebtedness shall be the
</TABLE>

                                        6
<PAGE>

<TABLE>
<S>                                           <C>
                                              lesser of (a) the fair market value of such asset at such date of
                                              determination and (b) the amount of such indebtedness, and (vii) all
                                              indebtedness of other Persons guaranteed by such Person to the extent
                                              guaranteed; the amount of Indebtedness of any Person at any date shall
                                              be the outstanding balance at such date of all unconditional
                                              obligations as described above and, with respect to contingent
                                              obligations, the maximum liability upon the occurrence of the
                                              contingency giving rise to the obligation, provided that the amount
                                              outstanding at any time of any indebtedness issued with original issue
                                              discount is the face amount of such indebtedness less the remaining
                                              unamortized portion of the original issue discount of such
                                              indebtedness at such time as determined in conformity with GAAP; and
                                              provided further that Indebtedness shall not include any liability for
                                              current or deferred federal, state, local or other taxes, or any trade
                                              payables;

"Indemnitee"                                  shall have the meaning ascribed thereto in Section 18.7;

"Insurance Assignment"                        shall mean the first priority assignment in respect of the insurances
                                              over the Vessel, to be executed by the Borrower in favor of the
                                              Security Trustee pursuant to Section 4.1(j), substantially in the form
                                              set out in Exhibit F;

"Interest Expense"                            shall mean, with respect to the Guarantor and the Subsidiaries, on a
                                              consolidated basis, for any period (without duplication), interest
                                              expense, whether paid or accrued (including the interest component of
                                              capitalized leases), on all Indebtedness of the Guarantor and the
                                              Subsidiaries for such period, net of interest income, all determined
                                              in accordance with GAAP;

"Interest Rate Agreements"                    shall mean any interest rate protection agreement, interest rate
                                              future agreement, interest rate option agreement, interest rate swap
                                              agreement, interest rate cap agreement, interest rate collar
                                              agreement, interest rate hedge agreement or other similar agreement
                                              or arrangement entered into between the Borrower, the Guarantor or
                                              any Subsidiary of the Borrower with either of the Agents, which is
                                              designed to protect the Borrower, the Guarantor or any of the
                                              Borrower's Subsidiaries against fluctuations in interest rates
                                              applicable under this Agreement, to or under which the Borrower, the
                                              Guarantor or any of the Borrower's Subsidiaries is a party or a
                                              beneficiary on the date of this Agreement or becomes a party or a
                                              beneficiary hereafter;
</TABLE>

                                        7
<PAGE>

<TABLE>
<S>                                           <C>
"Initial Payment Date"                        shall mean the date which is three (3) months after the Drawdown Date;

"Interest Notice"                             shall mean a notice from the Borrower to the Facility Agent specifying
                                              the duration of any relevant Interest Period;

"Interest Period"                             shall mean period(s) of three, six or twelve months as selected by
                                              the Borrower, or as otherwise agreed by the Lenders and the Borrower;

"ISM Code"                                    shall mean the International Safety Management Code for the Safe
                                              Operating of Ships and for Pollution Prevention constituted pursuant
                                              to Resolution A.741(18) of the International Maritime Organization
                                              and incorporated into the Safety of Life at Sea Convention and
                                              includes any amendments or extensions thereto and any regulation
                                              issued pursuant thereto;

"ISPS Code"                                   shall mean the International Ship and Port Facility Security Code
                                              adopted by the International Maritime Organization at a conference in
                                              December, 2002 and amending the Safety of Life at Sea Convention and
                                              includes any amendments or extensions thereto and any regulation
                                              issued pursuant thereto;

"ISSC"                                        shall mean the International Ship Security Certificate issued
                                              pursuant to the ISPS Code;

"Johnsen Family"                              shall mean (i) Niels W. Johnsen, Erik F. Johnsen, Niels M. Johnsen and
                                              Erik L. Johnsen; (ii) the wives and issue of Niels W. Johnsen, Erik F.
                                              Johnsen, Niels M. Johnsen and Erik L. Johnsen; and (iii) any trust for
                                              the benefit of, or controlled by, any of foregoing;

"LIBOR Rate"                                  shall mean, for each Interest Period, the London Interbank Offered
                                              Rate ("LIBOR") as set and published by the British Banker's
                                              Association ("BBA"), as selected by the Borrower three (3) Banking
                                              Days before the first day of such Interest Period as obtained by the
                                              Facility Agent from a wire that is sent through Bloomberg, L.P. which
                                              rate is based by BBA on an average of the Interbank Offered Rates for
                                              Dollar deposits in the London market based on quotes from designated
                                              banks in the London market. In the event that the three, six or
                                              twelve month LIBOR is no longer available from the BBA or Bloomberg,
                                              L.P., the Facility Agent shall select a comparable service to
                                              determine such rate and shall provide notice thereof to the Borrower;
</TABLE>

                                        8
<PAGE>

<TABLE>
<S>                                           <C>
"Loan"                                        shall mean the loan facility to be made available by the Lenders to
                                              the Borrower hereunder in a single advance pursuant to Section 3 in
                                              the maximum aggregate principal amount of Thirty-Two Million Dollars
                                              ($32,000,000), or the balance thereof from time to time outstanding;

"Majority Lenders"                            at any time shall mean Lenders holding an aggregate of more than
                                              66.66% of the Loan then outstanding;

"Material Adverse Effect"                     shall mean a material adverse effect on the ability of the Borrower
                                              and/or the Guarantor to meet any of their respective obligations with
                                              regard to (i) the Loan and the financing arrangements established in
                                              connection therewith or (ii) any of their respective other
                                              obligations that are material to the Borrower and the Guarantor
                                              considered as a whole;

"Materials Of Environmental Concern"          shall have the meaning ascribed thereto in Section 2.1(p);

"Memorandum of Agreement"                     means that certain contract between the Sellers and the Borrower
                                              dated June 30, 2005 providing for the purchase of the Vessel by the
                                              Borrower.

"Mortgage"                                    shall mean the first preferred United States ship mortgage on the
                                              Vessel, to be executed by the Borrower in favor of the Security
                                              Trustee pursuant to Section 4.1(g), substantially in the form set out
                                              in Exhibit G;

"MTSA"                                        shall mean the Maritime & Transportation Security Act, 2002, as
                                              amended, inter alia, by Public Law 107-295;

"Multiemployer Plan"                          shall mean, at any time, a "multiemployer plan" as defined in Section
                                              4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is
                                              making or accruing an obligation to make contributions or has within
                                              any of the three preceding plan years made or accrued an obligation to
                                              make contributions;

"Multiple Employer Plan"                      shall mean, at any time, an employee benefit plan, other than a
                                              Multiemployer Plan, subject to Title IV or ERISA, to which a Borrower
                                              or ERISA Affiliate, and one or more employers other than a Borrower
                                              or ERISA Affiliate, is making or accruing an obligation to make
                                              contributions or, in the event that any such plan has been
                                              terminated, to which a Borrower or ERISA Affiliate made or accrued an
                                              obligation to make contributions during any of the five plan years
                                              preceding the date of termination of such plan;
</TABLE>

                                        9
<PAGE>

<TABLE>
<S>                                           <C>
"Net Worth"                                   shall mean the result of (i) the sum of the Fair Market Value of all
                                              of the vessels owned by a Person minus (ii) the amount of all debt
                                              incurred by such Person related to those vessels;

"Note"                                        shall mean the promissory note to be executed by the Borrower to the
                                              order of the Facility Agent pursuant to Section 4.1(c), to evidence
                                              the Loan substantially in the form set out in Exhibit A;

"Operator"                                    shall mean the Person who is concerned with the operation of the
                                              Vessel and falls within the definition of "Company" set out in rule
                                              1.1.2 of the ISM Code";

"Payment Dates"                               means the Initial Payment Date and the dates falling at three (3)
                                              month intervals thereafter, the last of which is the Final Payment
                                              Date;

"PBGC"                                        shall mean the Pension Benefit Guaranty Corporation;

"Person"                                      shall mean any individual, sole proprietorship, corporation,
                                              partnership (general or limited), limited liability company, business
                                              trust, bank, trust company, joint venture, association, joint stock
                                              company, trust or other unincorporated organization, whether or not a
                                              legal entity, or any government or agency or political subdivision
                                              thereof;

"Plan"                                        shall mean any employee benefit plan (other than a Multiemployer Plan
                                              or a Multiple Employer Plan) covered by Title IV of ERISA; "Proceeding"
                                              shall have the meaning ascribed thereto in Section 8.1(i);

"Reference Bank(s)"                           shall mean each of DnB NOR and DSB;

"Required Percentage"                         means one hundred and twenty percent (120%);

"Security Document(s)"                        shall mean the Mortgage, the Assignments and any other documents that
                                              may be executed as security for the Loan and the Borrower's
                                              obligations in connection therewith;

"Security Party(ies)"                         shall mean each of the Borrower and the Guarantor;

"Security Trustee"                            shall have the meaning ascribed thereto in the preamble;

"Sellers"                                     Canterbury Shipholding S.A., a Panamanian corporation, and Canterbury
                                              Shipholding II S.A., a Panamanian corporation;
</TABLE>

                                        10
<PAGE>

<TABLE>
<S>                                           <C>
"SMC"                                         shall mean the safety management certificate issued in respect of a
                                              Vessel in accordance with rule 13 of the ISM code;

"subsidiary"                                  shall mean, with respect to any Person, any business entity of which
                                              more than 50% of the outstanding voting stock or other equity interest
                                              is owned directly or indirectly by such Person and/or one or more
                                              other subsidiaries of such Person;

"Subsidiary(ies)"                             shall mean all of the subsidiaries of the Guarantor;

"Taxes"                                       shall mean any present or future income or other taxes, levies,
                                              duties, charges, fees, deductions or withholdings of any nature now or
                                              hereafter imposed, levied, collected, withheld or assessed by any
                                              taxing authority whatsoever, except for taxes on or measured by the
                                              overall net income of each Lender imposed by its jurisdiction of
                                              incorporation or applicable lending office, the United States of
                                              America, the State or City of New York or any governmental subdivision
                                              or taxing authority of any thereof or by any other taxing authority
                                              having jurisdiction over such Lender (unless such jurisdiction is
                                              asserted by reason of the activities of the Borrower or any of the
                                              Subsidiaries);

"Termination Event"                           shall mean (i) a "reportable event," as defined in Section 403 of
                                              ERISA, (ii) the withdrawal of a Borrower or any ERISA Affiliate from
                                              a Multiemployer Plan during a plan year in which it was a
                                              "substantial employer," as defined in Section 4001(a)(2) of ERISA, or
                                              the incurrence of liability by a Borrower or any ERISA Affiliate
                                              under Section 4064 of ERISA upon the termination of a Multiple
                                              Employer Plan, (iii) the filing of a notice of intent to terminate a
                                              Plan under Section 4041 of ERISA or the treatment of a Multiemployer
                                              Plan amendment as a termination under Section 4041A of ERISA, (iv)
                                              the institution of proceedings to terminate a Plan or a Multiemployer
                                              Plan, or (v) any other event or condition which might constitute
                                              grounds under Section 4042 of ERISA for the termination of, or the
                                              appointment of a trustee to administer, any Plan or Multiemployer
                                              Plan;

"Time Charter"                                means that certain time charter of the Vessel dated June 30, 2005
                                              with the Time Charterer;

"Time Charterer"                              means Nippon Yusen Kaisha of Japan;
</TABLE>

                                        11
<PAGE>

<TABLE>
<S>                                           <C>
"Title XI Agreement"                          shall mean the Title XI Reserve Fund and Financial Agreement,
                                              Contract No. MA-12901, dated as of October 26, 1994 and made by and
                                              between Sulphur Carriers, Inc. and the United States of America;

"Total Loss"                                  shall have the meaning ascribed thereto in the Mortgage;

"Transaction Documents"                       shall mean each of this Agreement, the Note and the Security
                                              Documents;

"Vessel"                                      shall mean that certain Panamanian flag Pure Car and Truck Carrier
                                              known as the *****, to be renamed ***** and reflagged under United
                                              States law;

"Withdrawal Liability(ies)"                   shall have the meaning given to such term under Part 1 of Subtitle E
                                              of Title IV of ERISA.
</TABLE>

1.2 Computation of Time Periods; Other Definitional Provisions. In this
Agreement, the Note and the other Security Documents, in the computation of
periods of time from a specified date to a later specified date, the word "from"
means "from and including" and the words "to" and "until" each mean "to but
excluding"; words importing either gender include the other gender; references
to "writing" include printing, typing, lithography and other means of
reproducing words in a tangible visible form; the words "including," "includes"
and "include" shall be deemed to be followed by the words "without limitation";
references to articles, sections (or subdivisions of sections), exhibits,
annexes or schedules are to this Agreement, the Note or such Security Document,
as applicable; references to agreements and other contractual instruments
(including this Agreement, the Note and the Security Documents) shall be deemed
to include all subsequent amendments, amendments and restatements, supplements,
extensions, replacements and other modifications to such instruments (without,
however, limiting any prohibition on any such amendments, extensions and other
modifications by the terms of this Agreement, the Note or any Security
Document); references to any matter that is "approved" or requires "approval" of
a party shall mean approval given in the sole and absolute discretion of such
party unless otherwise specified.

1.3 Accounting Terms. Unless otherwise specified herein, all accounting terms
used in this Agreement, the Note and in the Security Documents shall be
interpreted, and all financial statements and certificates and reports as to
financial matters required to be delivered to the Facility Agent or to the
Lenders under this Agreement shall be prepared, in accordance with generally
accepted accounting principles for the United States ("GAAP").

1.4 Certain Matters Regarding Materiality. To the extent that any
representation, warranty, covenant or other undertaking of the Borrower in this
Agreement is qualified by reference to those which are not reasonably expected
to result in a "Material Adverse Effect" or language of similar import, no
inference shall be drawn therefrom that any Agent or Lender has knowledge or
approves of any noncompliance by the Borrower with any governmental rule.

2. REPRESENTATIONS AND WARRANTIES

2.1 Representations and Warranties. In order to induce the Creditors to enter
into this Agreement and to make the Loan available, each Security Party hereby
represents and warrants to

                                        12
<PAGE>

the Creditors (which representations and warranties shall survive the execution
and delivery of this Agreement and the Note and the drawdown of the Loan) that:

         (a) Due Organization and Power. Each Security Party is duly formed and
is validly existing in good standing under the laws of its jurisdiction of
incorporation or formation, has full power to carry on its business as now being
conducted and to enter into and perform its obligations under this Agreement,
the Note and the Security Documents to which it is a party, and has complied
with all statutory, regulatory and other requirements relative to such business
and such agreements;

         (b) Authorization and Consents. All necessary corporate action has been
taken to authorize, and all necessary consents and authorities have been
obtained and remain in full force and effect to permit, each Security Party to
enter into and perform its obligations under this Agreement, the Note and the
Security Documents and, in the case of the Borrower to borrow, service and repay
the Loan and, as of the date of this Agreement, no further consents or
authorities are necessary for the service and repayment of the Loan or any part
thereof;

         (c) Binding Obligations. This Agreement, the Note and the Security
Documents constitute or will, when executed and delivered, constitute the legal,
valid and binding obligations of each Security Party that is a party thereto
enforceable against such Security Party in accordance with their respective
terms, except to the extent that such enforcement may be limited by equitable
principles, principles of public policy or applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting generally the enforcement of
creditors' rights;

         (d) No Violation. The execution and delivery of, and the performance of
the provisions of, this Agreement, the Note and those of the Security Documents
to which it is to be a party by each Security Party do not contravene any
applicable law or regulation existing at the date hereof or any contractual
restriction binding on such Security Party or the certificate of incorporation
or by-laws (or equivalent instruments) thereof and that the proceeds of the Loan
shall be used by the Borrower exclusively for its own account or for the account
of a Subsidiary or Affiliate of the Borrower;

         (e) Filings; Stamp Taxes. Other than the recording of the Mortgage with
the appropriate authorities for the United States, and the filing of UCC
Financing Statements in the State of Delaware in respect of the Assignments, and
the payment and filing or recording fees consequent thereto, it is not necessary
for the legality, validity, enforceability or admissibility into evidence of
this Agreement, the Note or the Security Documents that any of them or any
document relating thereto be registered, filed, recorded or enrolled with any
court or authority in any relevant jurisdiction or that any stamp, registration
or similar Taxes be paid on or in relation to this Agreement, the Note or any of
the Security Documents;

         (f) Litigation. No action, suit or proceeding is pending or threatened
against any Security Party before any court, board of arbitration or
administrative agency which could or might have a Material Adverse Effect;

         (g) No Default. No Security Party is in default under any material
agreement by which it is bound, or is in default in respect of any material
financial commitment or obligation;

                                       13
<PAGE>
         (h) Vessel. Upon delivery of the Vessel to the Borrower; the Vessel:

             (i)     will be in the sole and absolute ownership of the Borrower
                     and duly registered in the Borrower's name under United
                     States flag, unencumbered, save and except for the Mortgage
                     and as permitted thereby;

             (ii)    will be classed in the highest classification and rating
                     for vessels of the same age and type with its
                     Classification Society without any material outstanding
                     recommendations;

             (iii)   will be operationally seaworthy and in every way fit for
                     its intended service; and

             (iv)    will be insured in accordance with the provisions of the
                     Mortgage and the requirements thereof in respect of such
                     insurances will have been complied with;

         (i) Insurance. Each of the Security Parties has insured its properties
and assets against such risks and in such amounts as are customary for companies
engaged in similar businesses;

         (j) Financial Information. Except as otherwise disclosed in writing to
the Facility Agent on or prior to the date hereof, all financial statements,
information and other data furnished by any Security Party to the Facility Agent
are complete and correct, such financial statements have been prepared in
accordance with GAAP and accurately and fairly present the financial condition
of the parties covered thereby as of the respective dates thereof and the
results of the operations thereof for the period or respective periods covered
by such financial statements, and since the date of the Guarantor's financial
statements most recently delivered to the Facility Agent there has been no
Material Adverse Effect as to any of such parties and none thereof has any
contingent obligations, liabilities for taxes or other outstanding financial
obligations which are material in the aggregate except as disclosed in such
statements, information and data;

         (k) Tax Returns. Each Security Party has filed all material tax returns
required to be filed thereby and has paid all taxes payable thereby which have
become due, other than those not yet delinquent or the nonpayment of which would
not have a Material Adverse Effect and except for those taxes being contested in
good faith and by appropriate proceedings or other acts and for which adequate
reserves shall have been set aside on its books;

         (l) ERISA. The execution and delivery of this Agreement and the
consummation of the transactions hereunder will not involve any prohibited
transaction within the meaning of ERISA or Section 4975 of the Code and no
condition exists or event or transaction has occurred in connection with any
Plan maintained or contributed to by any member of the ERISA Group or any ERISA
Affiliate resulting from the failure of any thereof to comply with ERISA which
is reasonably likely to result in any member of the ERISA Group or any ERISA
Affiliate incurring any liability, fine or penalty which individually or in the
aggregate could have a Material Adverse Effect. No member of the ERISA Group nor
any ERISA Affiliate, individually or collectively, has incurred, or reasonably
expects to incur, Withdrawal Liabilities or liabilities upon the happening of a
Termination Event the aggregate of which for all such Withdrawal Liabilities and
other liabilities exceeds or would exceed $30,000,000. With respect to any
Multiemployer Plan, Multiple

                                       14
<PAGE>
Employer Plan or Plan, no member of the ERISA Group nor any ERISA Affiliate is
aware of or has been notified that any "variance" from the "minimum funding
standard" has been requested (each such term as defined in Part 3, Subtitle B,
of Title 1 of ERISA). No member of the ERISA Group nor any ERISA Affiliate has
received any notice that any Multiemployer Plan is in reorganization, within the
meaning of Title IV of ERISA, which reorganization could have a Material Adverse
Effect;

         (m) Chief Executive Office. The chief executive office and chief place
of business of each Security Party and the office in which the records relating
to the earnings and other receivables of each Security Party are kept is, and
will continue to be, located at 650 Poydras Street, Suite 1700, New Orleans, LA
70130, USA;

         (n) Foreign Trade Control Regulations. To the best knowledge of each of
the Security Parties, none of the transactions contemplated herein will violate
the provisions of any statute or regulation enacted to prohibit or limit
economic transactions with certain foreign Persons including, without
limitation, any of the provisions of the Foreign Assets Control Regulations of
the United States of America (Title 31, Code of Federal Regulations, Chapter V,
Part 500, as amended);

         (o) Equity Ownership. The Borrower is owned, directly or indirectly,
one hundred percent (100%) by the Guarantor;

         (p) Environmental Matters and Claims. (a) Except as heretofore
disclosed in writing to the Facility Agent (i) the Borrower and its Affiliates
(which for purposes of this Section 2(p) shall be deemed to include the
Guarantor and its respective Affiliates) will, when required to operate their
business as then being conducted, be in compliance with all applicable United
States federal and state, local, foreign and international laws, regulations,
conventions and agreements relating to pollution prevention or protection of
human health or the environment (including, without limitation, ambient air,
surface water, ground water, navigable waters, waters of the contiguous zone,
ocean waters and international waters), including, without limitation, laws,
regulations, conventions and agreements relating to (1) emissions, discharges,
releases or threatened releases of chemicals, pollutants, contaminants, wastes,
toxic substances, hazardous materials, oil, hazardous substances, petroleum and
petroleum products and by-products ("Materials of Environmental Concern"), or
(2) the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Materials of Environmental Concern
("Environmental Laws"); (ii) the Borrower and its Affiliates will, when
required, have all permits, licenses, approvals, rulings, variances, exemptions,
clearances, consents or other authorizations required under applicable
Environmental Laws ("Environmental Approvals") and will, when required, be in
compliance with all Environmental Approvals required to operate their business
as then being conducted; (iii) the Borrower has not nor has any Affiliate
thereof has received any notice of any claim, action, cause of action,
investigation or demand by any person, entity, enterprise or government, or any
political subdivision, intergovernmental body or agency, department or
instrumentality thereof, alleging potential liability for, or a requirement to
incur, material investigator costs, cleanup costs, response and/or remedial
costs (whether incurred by a governmental entity or otherwise), natural
resources damages, property damages, personal injuries, attorneys' fees and
expenses, or fines or penalties, in each case arising out of, based on or
resulting from (1) the presence, or release or threat of release into the
environment, of any Materials of Environmental Concern at any location, whether
or not owned by such person, or (2) circumstances forming the basis of any
violation, or alleged violation, of any Environmental Law or Environmental
Approval ("Environmental Claim") (other than Environmental Claims that have

                                       15
<PAGE>
been fully and finally adjudicated or otherwise determined and all fines,
penalties and other costs, if any, payable by the Security Parties in respect
thereof have been paid in full or which are fully covered by insurance
(including permitted deductibles)); and (iv) there are no circumstances that may
prevent or interfere with such full compliance in the future; and (b) except as
heretofore disclosed in writing to the Facility Agent there is no Environmental
Claim pending or threatened against the Borrower or any Affiliate thereof and
there are no past or present actions, activities, circumstances, conditions,
events or incidents, including, without limitation, the release, emission,
discharge or disposal of any Materials of Environmental Concern, that could form
the basis of any Environmental Claim against such persons the adverse
disposition of which may result in a Material Adverse Effect;

         (q) Compliance with ISM Code, ISPS Code and MTSA. The Vessel and the
Operator complies with the requirements of the ISM Code, the ISPS Code and the
MTSA including (but not limited to) the maintenance and renewal of valid
certificates pursuant thereto;

         (r) Threatened Withdrawal of DOC or SMC. There is no threatened or
actual withdrawal of the Operator's DOC or SMC in respect of the Vessel;

         (s) Liens. Other than as disclosed in Schedule IV, there are no liens
of any kind on any property owned by any Security Party other than those liens
created pursuant to this Agreement or the Security Documents or permitted
thereby;

         (t) Indebtedness. Other than as disclosed in Schedule V, neither of the
Security Parties has any Indebtedness;

         (u) Payment Free of Taxes. All payments made or to be made by the
Security Parties under or pursuant to this Agreement, the Note and the Security
Documents shall be made free and clear of, and without deduction or withholding
for an account of, any Taxes;

         (v) No Proceedings to Dissolve. There are no proceedings or actions
pending or contemplated by any Security Party or, to the best knowledge of any
Security Party, contemplated by any third party, to dissolve or terminate any
Security Party.

         (w) Solvency. On the Closing Date, in the case of each of the Security
Parties, (a) the sum of its assets, at a fair valuation, does and will exceed
its liabilities, including, to the extent they are reportable as such in
accordance with GAAP, contingent liabilities, (b) the present fair market
salable value of its assets is not and shall not be less than the amount that
will be required to pay its probable liability on its then existing debts,
including, to the extent they are reportable as such in accordance with GAAP,
contingent liabilities, as they mature, (c) it does not and will not have
unreasonably small working capital with which to continue its business and (d)
it has not incurred, does not intend to incur and does not believe it will incur
debts beyond its ability to pay such debts as they mature;

         (x) Compliance with Laws. Each of the Security Parties is in compliance
with all Applicable Laws, except where any failure to comply with any such
Applicable Laws would not, alone or in the aggregate, have a Material Adverse
Effect; and

         (y) Survival. All representations, covenants and warranties made herein
and in any certificate or other document delivered pursuant hereto or in
connection herewith shall survive the making of the Loan and the issuance of the
Note.

                                       16
<PAGE>

3. THE LOAN

3.1 (a) Purposes. The Lenders shall make the Loan available to the Borrower for
the purposes of financing the purchase price to be paid for the Vessel.

         (b) Making of the Loan. Each of the Lenders, relying upon each of the
representations and warranties set out in Section 2, hereby severally and not
jointly agrees with the Borrower that, subject to and upon the terms of this
Agreement, it will, not later than 11:00 a.m. on the Drawdown Date, make its
portion of the Loan, in Federal or other funds, immediately available in New
York City to the Facility Agent at its address set forth on Schedule I or to
such account of the Facility Agent most recently designated by it for such
purpose by notice to the Lenders. Unless the Facility Agent determines that any
applicable condition specified in Sections 4.1 or 4.2 has not been satisfied,
the Facility Agent will make the funds so received from the Lenders available to
the Borrower at the aforesaid address, subject to the receipt of the funds by
the Facility Agent as provided in the immediately preceding sentence, not later
than 2:30 P.M. (New York City time) on the Drawdown Date, and in any event as
soon as practicable after receipt.

3.2 Drawdown Notice. The Borrower shall, at least three (3) Banking Days before
the Drawdown Date, serve a notice (a "Drawdown Notice"), substantially in the
form of Exhibit B, on the Facility Agent, which notice shall (a) be in writing
addressed to the Facility Agent, (b) be effective on receipt by the Facility
Agent, (c) specify the amount of the Loan to be drawn, (d) specify the Banking
Day on which the Loan is to be drawn, (e) specify the disbursement instructions
(which shall be consistent in all material respects with Section 2 of the
Memorandum of Agreement), (f) specify the initial Interest Period and (g) be
irrevocable.

3.3 Effect of Drawdown Notice. Delivery of a Drawdown Notice shall be deemed to
constitute a warranty by the Borrower (a) that the representations and
warranties stated in Section 2 (updated mutatis mutandis) are true and correct
on and as of the date of the Drawdown Notice and will be true and correct on and
as of the Drawdown Date as if made on such date, and (b) that no Event of
Default nor any event which with the giving of notice or lapse of time or both
would constitute an Event of Default has occurred and is continuing.

4. CONDITIONS

4.1 Conditions Precedent to the Effectiveness of this Agreement. The
effectiveness of this Agreement and the obligation of the Lenders to make the
Loan available to the Borrower under this Agreement shall be expressly subject
to the following conditions precedent:

         (a) Corporate Authority. The Facility Agent shall have received the
following documents in form and substance satisfactory to the Facility Agent and
its legal advisers:

             (i)     copies, certified as true and complete by an officer of
                     each of the Security Parties, of the resolutions of its
                     board of directors and, with respect to the Borrower,
                     shareholders evidencing approval of the Transaction
                     Documents to which each is a party and authorizing an
                     appropriate officer or officers or attorney-in-fact or
                     attorneys-in-fact to execute the same on its behalf,
                     including the execution of the Drawdown Notice;

                                       17
<PAGE>
             (ii)    copies, certified as true and complete by an officer of
                     each of the Security Parties, of the certificate or
                     articles of incorporation and by-laws or similar
                     constituent document thereof;

             (iii)   certificate of the jurisdiction of incorporation of each
                     Security Party as to the good standing thereof; and

             (iv)    a certificate signed by the Chairman, President, Executive
                     Vice President, Treasurer, Comptroller, Controller or chief
                     financial officer of each of the Security Parties to the
                     effect that (A) no Default or Event of Default shall have
                     occurred and be continuing and (B) the representations and
                     warranties of such Security Party contained in this
                     Agreement are true and correct as of the date of such
                     certificate.

         (b) The Agreement. Each of the Security Parties shall have duly
executed and delivered this Agreement to the Facility Agent.

         (c) The Note. The Borrower shall have duly executed and delivered the
Note to the Facility Agent.

         (d) The Creditors. The Facility Agent shall have received executed
counterparts of this Agreement from each of the Lenders (or, in the case of any
Lender as to which an executed counterpart shall not have been received, the
Facility Agent shall have received in form satisfactory to it a telex, facsimile
or other written confirmation from such Lender of the execution of a counterpart
of this Agreement by such Lender).

         (e) Fees. The Creditors shall have received payment in full of all fees
and expenses due to each thereof pursuant to the terms hereof on the date when
due including, without limitation, all fees and expenses due under Section 14.

         (f) Environmental Claims. The Lenders shall be satisfied that neither
of the Security Parties is subject to any Environmental Claim which could
reasonably be expected to have a Material Adverse Effect.

         (g) Legal Opinions. The Facility Agent, on behalf of the Agents and the
Lenders, shall have received opinions addressed to the Facility Agent from (i)
Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P., special counsel
to the Security Parties, and (ii) Seward & Kissel LLP, special counsel to the
Agents and the Lenders, in each case in such form as the Facility Agent may
require, as well as such other legal opinions as the Lenders shall have required
as to all or any matters under the laws of the State of Delaware, the State of
New York and the United States of America covering certain of the conditions and
representations and warranties which are the subjects of Sections 2 and 4,
respectively.

         (h) Officer's Certificate. The Facility Agent shall have received a
certificate signed by the President or other duly authorized executive officer
of the Borrower certifying that under applicable law existing on the date
hereof, the Borrower shall not be compelled by law to withhold or deduct any
Taxes from any amounts to become payable to the Facility Agent for the account
of the Creditors hereunder.

                                       18
<PAGE>

         (i) Vessel Documents. The Facility Agent shall have received evidence
satisfactory to it and its counsel that the Vessel upon delivery to the Borrower
will be:

             (i)     in the sole and absolute ownership of the Borrower and is
                     duly registered in the Borrower's name under United States
                     flag free of all liens and encumbrances of record other
                     than its Mortgage;

             (ii)    insured in accordance with the provisions of the Mortgage
                     and all requirements of the Mortgage in respect of such
                     insurance have been fulfilled (including, but not limited
                     to, letters of undertaking from the insurance brokers,
                     including confirmation notices of assignment, notices of
                     cancellation and loss payable clauses acceptable to the
                     Lenders);

             (iii)   classed in the highest classification and rating for
                     vessels of the same age and type with its Classification
                     Society without any material outstanding recommendations;
                     and

             (iv)    operationally seaworthy and in every way fit for its
                     intended service;

         (j) Security Documents. The Borrower shall have executed and delivered
to the Facility Agent:

             (i)     the Insurances Assignment;

             (ii)    the Earnings Assignment;

             (iii)   the Assignment Notices; and

             (iv)    such Uniform Commercial Code Financing Statements (Forms
                     UCC-1) as the Facility Agent shall require.

         (k) Vessel Appraisals. The Facility Agent shall have received
appraisals, in form and substance satisfactory to the Facility Agent, as to the
Fair Market Value of the Vessel. ******.

         (l) ISM DOC. To the extent required to be obtained by the ISM Code the
Security Trustee shall have received a copy of the DOC for the Vessel.

         (m) Evidence of Current COFR. The Facility Agent shall have received
copies of the current Certificate of Financial Responsibility pursuant to the
Oil Pollution Act 1990 for the Vessel.

         (n) Vessel Liens. The Facility Agent shall have received evidence
satisfactory to it and to its legal advisor that, save for the liens created by
the Mortgage and the Assignments, there are no liens, charges or encumbrances of
any kind whatsoever on the Vessel or on its earnings except as permitted hereby
or by any of the Security Documents.

         (o) NYK Charter. The Borrower shall have delivered to the Facility
Agent a true and complete copy of the Time Charter and the Charterer's
Acknowledgment.

         (p) Memorandum of Agreement. The Borrower shall have delivered to the
Facility Agent a true and complete copy of Memorandum of Agreement.

                                       19
<PAGE>
         (q) Vessel Delivery. The Facility Agent shall be satisfied that the
Vessel shall be delivered to the Borrower within two (2) Banking Days of the
Drawdown Date and that satisfactory arrangements have been made for (x) the
registration of the Vessel in the name of the Borrower under United States flag,
(y) the execution of the Mortgage and (z) the recordation of the Mortgage with
the National Vessel Documentation Center of the United States Coast Guard, in
each case on the opening of business on the Banking Day immediately following
the delivery of the Vessel to the Borrower.

         (r) Maritime Administration Approval. The Borrower shall have obtained
pre-approval from the United States Maritime Administration, in form and
substance satisfactory to the Lenders, for the possible transfer of the Vessel
upon the exercise of the Security Trustee's rights under the Mortgage to a party
not qualified to own and document a vessel under United States flag and/or the
re-documentation of the Vessel under foreign flag.

4.2 Further Conditions Precedent. The obligation of the Lenders to make the Loan
available to the Borrower shall also be expressly conditional upon:

         (a) Drawdown Notice. The Facility Agent having received a Drawdown
Notice in accordance with the terms of Section 3.2.

         (b) Representations and Warranties True. The representations stated in
Section 2 being true and correct as if made on that date.

         (c) No Default. No Default or Event of Default having occurred and
being continuing or would result from the making of the Loan.

         (d) No Material Adverse Effect. There having been no Material Adverse
Effect since June 30, 2005.

4.3 Breakfunding Costs. In the event that, on the date specified for the making
of the Loan in the Drawdown Notice, the Lenders shall not be obliged under this
Agreement to make the Loan available under this Agreement, the Borrower shall
indemnify and hold the Lenders fully harmless against any losses which the
Lenders (or any thereof) may sustain as a result of borrowing or agreeing to
borrow funds to meet the drawdown requirement of such Drawdown Notice and the
certificate of the relevant Lender or Lenders shall, absent manifest error, be
conclusive and binding on the Borrower as to the extent of any such losses.

4.4 Satisfaction after Drawdown. Without prejudice to any of the other terms and
conditions of this Agreement, in the event all of the Lenders elect, in their
sole discretion, to make the Loan prior to the satisfaction of all or any of the
conditions referred to in Sections 4.1 or 4.2, the Borrower hereby covenants and
undertakes to satisfy or procure the satisfaction of such condition or
conditions within seven (7) days after the Drawdown Date (or such longer period
as the Majority Lenders, in their sole discretion, may agree).

5. REPAYMENT AND PREPAYMENT

5.1 Repayment. Subject to the provisions of this Section 5 regarding application
of prepayments, the Borrower shall repay the principal of the Loan in forty (40)
consecutive quarterly installments on the Payment Dates, the first thirty-nine
(39) being in the amount of Six Hundred Sixty-Six Thousand Six Hundred Sixty-Six
Dollars and Sixty-Seven Cents ($666,666.67) and the

                                       20
<PAGE>
last such installment being in the amount of the Final Payment, such last
installment to be paid on the Final Payment Date.

5.2 Voluntary Prepayment; No Re-borrowing. The Borrower may prepay, upon three
(3) Banking Days written notice, the Loan or any portion thereof, without
penalty, provided that if such prepayment is made on a day other than a Payment
Date, such prepayment shall be made together with the costs and expenses
provided for in Section 5.4. Each prepayment shall be in a minimum amount of
Five Hundred Thousand Dollars ($500,000) plus any Five Hundred Thousand Dollar
($500,000) multiple thereof or the full amount of the Loan then outstanding. No
part of the Loan once repaid or prepaid will be available for re-borrowing.

5.3 Mandatory Prepayment; Sale or Loss of Vessel. Upon (i) the sale of the
Vessel or (ii) the earlier of (x) ninety (90) days after the Total Loss (as such
term is defined in the Mortgage) of the Vessel or (y) the date on which the
insurance proceeds in respect of such loss are received by the Borrower or the
Security Trustee as assignee thereof, the Borrower shall either (I) deliver to
the Security Trustee, such additional collateral, of equal or greater value with
the Vessel, as may be satisfactory to the Lenders in their sole discretion or
(II) repay the Loan in full, or such proceeds shall be applied by the Facility
Agent first, towards prepayment of the Loan and the Borrower's other obligations
hereunder in full and second, to the Borrower.

5.4 Interest and Cost With Application of Prepayments. Any and all prepayments
hereunder, whether mandatory or voluntary, shall be applied in the following
order:

             (a)     firstly, towards accrued and unpaid interest and for fees
                     due under this Agreement; and

             (b)     secondly, towards the installments of the Loan in the
                     inverse order of their due dates for payment.

5.5 Borrower's Obligation Absolute. The Borrower's obligation to pay each
Creditor hereunder and under the Note shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms hereof and
thereof, under any and all circumstances and irrespective of any set-off,
counterclaim or defense to payment which the Borrower may have or may have had
against the Creditors.

6. INTEREST AND RATE

6.1 Payment of Interest; Interest Rate. (a) (a) The Borrower hereby promises to
pay to the Lenders interest on the unpaid principal amount of the Loan for the
period commencing on the Drawdown Date until but not including the stated
maturity thereof (whether by acceleration or otherwise) or the date of
prepayment thereof at the Applicable Rate, which shall be the rate per annum
which is equal to the aggregate of (a) the LIBOR Rate plus (b) the Applicable
Margin. The Applicable Rate with respect to the Loan shall be determined by the
Facility Agent two (2) Banking Days prior to the first (1st) day of the relevant
Interest Period. The Facility Agent shall promptly notify the Borrower and the
Lenders in writing of the Applicable Rate as and when determined. Each such
determination, absent manifest error, shall be conclusive and binding upon the
Borrower.

         (b) Notwithstanding the foregoing, the Borrower agrees that after the
occurrence and during the continuance of an Event of Default, the Loan shall
bear interest at a rate per annum equal to the greater of (A) the Default Rate
and (B) two percent (2%) plus the sum of (x) the Applicable

                                       21
<PAGE>
Margin plus (y) the LIBOR Rate for overnight or weekend deposits. In addition,
the Borrower hereby promises to pay interest (to the extent that the payment of
such interest shall be legally enforceable) on any overdue interest, and on any
other amount payable by the Borrower hereunder which shall not be paid in full
when due (whether at stated maturity, by acceleration or otherwise), for the
period commencing on the due date thereof until but not including the date the
same is paid in full at the Default Rate.

         (c) Except as provided in the next sentence, accrued interest on the
Loan shall be payable on each Payment Date. Interest payable at the Default Rate
shall be payable from time to time on demand of the Facility Agent.

6.2 Maximum Interest. Anything in this Agreement or the Note to the contrary
notwithstanding, the interest rate on the Loan shall in no event be in excess of
the maximum rate permitted by Applicable Law.

7. PAYMENTS

7.1 Place of Payments, No Set Off. All payments to be made hereunder by the
Borrower shall be made to the Facility Agent, not later than 3 p.m. New York
time (any payment received after 3 p.m. New York time shall be deemed to have
been paid on the next Banking Day) on the due date of such payment, at its
office located at 200 Park Avenue, New York, New York 10166 or to such other
office of the Facility Agent as the Facility Agent may direct, without set-off
or counterclaim and free from, clear of, and without deduction for, any Taxes,
provided, however, that if the Borrower shall at any time be compelled by law to
withhold or deduct any Taxes from any amounts payable to the Lenders hereunder,
then the Borrower shall pay such additional amounts in Dollars as may be
necessary in order that the net amounts received after withholding or deduction
shall equal the amounts which would have been received if such withholding or
deduction were not required and, in the event any withholding or deduction is
made, whether for Taxes or otherwise, the Borrower shall promptly send to the
Facility Agent such documentary evidence with respect to such withholding or
deduction as may be required from time to time by the Lenders.

7.2 Tax Credits. If any Lender obtains the benefit of a credit against the
liability thereof for federal income taxes imposed by any taxing authority for
all or part of the Taxes as to which the Borrower has paid additional amounts as
aforesaid (and each Lender agrees to use its best efforts to obtain the benefit
of any such credit which may be available to it, provided it has knowledge that
such credit is in fact available to it), then such Lender shall reimburse the
Borrower for the amount of the credit so obtained. Each Lender agrees that in
the event that Taxes are imposed on account of the situs of its loans hereunder,
such Lender, upon acquiring knowledge of such event, shall, if commercially
reasonable, shift such loans on its books to another office of such Lender so as
to avoid the imposition of such Taxes.

7.3 Computations; Banking Days.

         (a) All computations of interest and fees shall be made by the Facility
Agent or the Lenders, as the case may be, on the basis of a 360-day year, in
each case for the actual number of days (including the first day but excluding
the last day) occurring in the period for which interest or

                                       22
<PAGE>
fees are payable. Each determination by the Facility Agent or the Lenders of an
interest rate or fee hereunder shall be conclusive and binding for all purposes,
absent manifest error.

         (b) Whenever any payment hereunder or under the Note shall be stated to
be due on a day other than a Banking Day, such payment shall be due and payable
on the next succeeding Banking Day unless the next succeeding Banking Day falls
in the following calendar month, in which case it shall be payable on the
immediately preceding Banking Day.

8. EVENTS OF DEFAULT

8.1 Events of Default. In the event that any of the following events shall occur
and be continuing:

         (a) Principal Payments. Any principal of the Loan is not paid on the
due date therefor; or

         (b) Interest and other Payments. Any interest on the Loan or any other
amount becoming payable under this Agreement and under any Transaction Document
or under any of them, is not paid within three (3) Banking Days from the date
when due; or

         (c) Representations, etc. Any representation, warranty or other
statement made by any of the Security Parties in this Agreement or in any other
instrument, document or other agreement delivered in connection herewith proves
to have been untrue or misleading in any material respect as at the date as of
which it was made; or

         (d) Impossibility, Illegality. It becomes impossible or unlawful for
any of the Security Parties to fulfill any of the covenants and obligations
contained herein or in any Transaction Document, or for any of the Lenders to
exercise any of the rights vested in any of them hereunder or under the other
Transaction Documents and such impossibility or illegality, in the reasonable
opinion of such Lender, will have a Material Adverse Effect on any of its rights
hereunder or under the other Transaction Documents or on any of its rights to
enforce any thereof; or

         (e) Mortgage. The Mortgage is not recorded within three (3) Banking
Days of the Drawdown Date or there is any default under the Mortgage; or

         (f) Certain Covenants. Any Security Party defaults in the performance
or observance of any covenant contained in Section 9.1(b), 9.1(m), 9.2(i) and
9.3(a) through (d) inclusive; or

         (g) Covenants. One or more of the Security Parties default in the
performance of any term, covenant or agreement contained in this Agreement or in
the other Transaction Documents, or in any other instrument, document or other
agreement delivered in connection herewith or therewith, in each case other than
an Event of Default referred to elsewhere in this Section 8.1, and such default
continues unremedied for a period of fifteen (15) days after written notice
thereof has been given to the relevant Security Party or Parties by the Facility
Agent at the request of any Lender; or

         (h) Indebtedness and Other Obligations. Any Security Party defaults in
the payment when due (subject to any applicable grace period) of any
Indebtedness or of any other indebtedness,

                                       23
<PAGE>
in either case, in an outstanding principal amount equal to or exceeding Two
Million Dollars ($2,000,000) or such Indebtedness or other indebtedness is, or
by reason of such default is subject to being, accelerated or any party becomes
entitled to enforce the security for any such Indebtedness or other indebtedness
and such party shall take steps to enforce the same, unless such default or
enforcement is being contested in good faith and by appropriate proceedings or
other acts and such Security Party has set aside on its books adequate reserves
with respect thereto; or

         (i) Bankruptcy. Any Security Party commences any proceedings relating
to any substantial portion of its property under any reorganization, arrangement
or readjustment of debt, dissolution, winding up, adjustment, composition,
bankruptcy or liquidation law or statute of any jurisdiction, whether now or
hereafter in effect (a "Proceeding"), or there is commenced against any thereof
any Proceeding and such Proceeding remains undismissed or unstayed for a period
of sixty (60) days; or any receiver, trustee, liquidator or sequestrator of, or
for, any thereof or any substantial portion of the property of any thereof is
appointed and is not discharged within a period of sixty (60) days; or any
thereof by any act indicates consent to or approval of or acquiescence in any
Proceeding or to the appointment of any receiver, trustee, liquidator or
sequestrator of, or for, itself or any substantial portion of its property; or

         (j) Judgments. Any judgment or order is made the effect whereof would
be to render invalid this Agreement or any other Transaction Document or any
material provision thereof or any Security Party asserts that any such agreement
or provision thereof is invalid; or judgments or orders for the payment of money
(not paid or fully covered by insurance, subject to applicable deductibles) in
excess of $2,500,000 in the aggregate for the Guarantor or its Subsidiaries (or
its equivalent in any other currency) shall be rendered against the Guarantor
and/or any of its Subsidiaries and such judgments or orders shall continue
unsatisfied and unstayed for a period of 30 days; or

         (k) Inability to Pay Debts. Any Security Party is unable to pay or
admits its inability to pay its debts as they fall due or a moratorium shall be
declared in respect of any Indebtedness of any thereof; or

         (l) Termination of Operations; Sale of Assets. Except as expressly
permitted under this Agreement, any Security Party ceases its operations or
sells or otherwise disposes of all or substantially all of its assets or all or
substantially all of the assets of any Security Party are seized or otherwise
appropriated; or

         (m) Change in Financial Position. Any change in the financial position
of any Security Party which, in the reasonable opinion of the Majority Lenders,
shall have a Material Adverse Effect; or

         (n) Cross-Default. Any Security Party defaults under any material
contract or agreement to which it is a party or by which it is bound; or

         (o) ERISA Debt. Any member of the ERISA Group or any ERISA Affiliate
shall (i) fail to pay when due an amount or amounts aggregating in excess of
$1,000,000 which it or they shall have become liable to pay under Title IV of
ERISA or (ii) any member of the ERISA Group or any ERISA Affiliate, individually
or collectively, shall incur, or shall reasonably expect to incur, any
Withdrawal Liability or liability upon the happening of a Termination Event and
the aggregate of all such Withdrawal Liabilities and such other liabilities
shall be in excess of $10,000,000; or

                                       24
<PAGE>
         (p) Time Charter. The Time Charter is terminated or the Time Charterer
is in material default thereunder, unless the Borrower has provided a substitute
charter and/or charterer acceptable to the Lenders in their sole discretion
within 30 days after such termination;

         then, the Lenders' obligation to make the Loan available shall cease
and the Facility Agent on behalf of the Lenders may, with the Majority Lenders'
consent and shall, upon the Majority Lenders' instruction, by notice to the
Borrower, declare the entire Loan, accrued interest and any other sums payable
by the Borrower hereunder, under the Note and under the other Transaction
Documents due and payable whereupon the same shall forthwith be due and payable
without presentment, demand, protest or notice of any kind, all of which are
hereby expressly waived; provided that upon the happening of an event specified
in subclauses (i) or (k) of this Section 8.1, the Loan, accrued interest and any
other sums payable by the Borrower hereunder, under the Note and under the other
Transaction Documents shall be immediately due and payable without declaration,
presentment, demand, protest or other notice to the Borrower all of which are
expressly waived. In such event, the Creditors, or any thereof, may proceed to
protect and enforce their respective rights by action at law, suit in equity or
in admiralty or other appropriate proceeding, whether for specific performance
of any covenant contained in this Agreement or in the Note or in any other
Transaction Document or in aid of the exercise of any power granted herein or
therein, or the Lenders or the Facility Agent may proceed to enforce the payment
of the Note when due or to enforce any other legal or equitable right of the
Lenders, or proceed to take any action authorized or permitted by Applicable Law
for the collection of all sums due, or so declared due, including, without
limitation, the right to appropriate and hold or apply (directly, by way of
set-off or otherwise) to the payment of the obligations of the Borrower to any
of the Creditors hereunder, under the Note and/or under the other Transaction
Documents (whether or not then due) all moneys and other amounts of the Borrower
then or thereafter in possession of any Creditor, the balance of any deposit
account (demand or time, matured or unmatured) of the Borrower then or
thereafter with any Creditor and every other claim of the Borrower then or
thereafter against any of the Creditors.

8.2 Indemnification. The Borrower agrees to, and shall, indemnify and hold each
of the Creditors harmless against any loss, as well as against any reasonable
costs or expenses (including reasonable legal fees and expenses), which any of
the Creditors sustains or incurs as a consequence of any default in payment of
the principal amount of the Loan, interest accrued thereon or any other amount
payable hereunder, under the Note or under the other Transaction Documents
including, but not limited to, all actual losses incurred in liquidating or
re-employing fixed deposits made by third parties or funds acquired to effect or
maintain the Loan or any portion thereof. Any Creditor's certification of such
costs and expenses shall, absent any manifest error, be conclusive and binding
on the Borrower.

8.3 Application of Moneys. Except as otherwise provided in any Security
Document, all moneys received by the Creditors under or pursuant to this
Agreement, the Note or any of the Security Documents after the happening of any
Event of Default (unless cured to the satisfaction of the Majority Lenders)
shall be applied by the Facility Agent in the following manner:

         (a) firstly, in or towards the payment or reimbursement of any expenses
or liabilities incurred by any of the Creditors in connection with the
ascertainment, protection or enforcement of its rights and remedies hereunder,
under the Note and under the other Transaction Documents;

         (b) secondly, in or towards payment of any interest owing in respect of
the Loan;

                                       25
<PAGE>
         (c) thirdly, in or towards repayment of the principal of the Loan;

         (d) fourthly, in or towards payment of all other sums which may be
owing to any of the Creditors under this Agreement, under the Note and under the
other Transaction Documents;

         (e) fifthly, in or towards payments of any amounts then owed under any
Interest Rate Agreement; and

         (f) sixthly, the surplus (if any) shall be paid to the Borrower or to
whomsoever else may be entitled thereto.

9. COVENANTS

9.1 Affirmative Covenants. Each of the Security Parties hereby covenants and
undertakes with the Lenders that, from the date hereof and so long as any
principal, interest or other moneys are owing in respect of this Agreement, the
Note or any of the Security Documents, it will:

         (a) Performance of Agreements. Duly perform and observe, and procure
the observance and performance by all other parties thereto (other than the
Lenders) of, the terms of this Agreement, the Note and the Security Documents;

         (b) Notice of Default, etc. Promptly upon obtaining knowledge thereof,
inform the Facility Agent of the occurrence of (a) any Event of Default or of
any event which, with the giving of notice or lapse of time, or both, would
constitute an Event of Default, (b) any litigation or governmental proceeding
pending or threatened against any Security Party which could reasonably be
expected to have a Material Adverse Effect, (c) the withdrawal of the Vessel's
rating by its Classification Society or the issuance by the Classification
Society of any material recommendation or notation affecting class and (d) any
other event or condition which is reasonably likely to have a Material Adverse
Effect, in each case promptly, and in any event within three (3) Banking Days
after becoming aware of the occurrence thereof;

         (c) Obtain Consents. Without prejudice to Section 2.1 and this Section
9.1, obtain every consent and do all other acts and things which may from time
to time be necessary or advisable for the continued due performance of all its
and the other Security Parties' respective obligations under this Agreement,
under the Note and under the Security Documents;

         (d) Financial Information. Deliver to the Facility Agent with
sufficient copies for the Lenders to be distributed to the Lenders by the
Facility Agent promptly upon the receipt thereof:

             (i)     as soon as available, but not later than ninety (90) days
                     after the end of each fiscal year of the Guarantor,
                     complete copies of the consolidated financial reports of
                     the Guarantor and its Subsidiaries together with a separate
                     financial report of the Borrower (together with a
                     Compliance Certificate), all in reasonable detail which
                     shall include at least the consolidated balance sheet of
                     the Guarantor and its Subsidiaries and a balance sheet for
                     the Borrower as of the end of such year and the related
                     statements of income and sources and uses of funds for such
                     year, each as prepared in accordance with GAAP, all in
                     reasonable detail, which shall be audited reports prepared
                     by an Acceptable Accounting Firm;

                                       26
<PAGE>
             (ii)    as soon as available, but not less than forty-five (45)
                     days after the end of each of the first three quarters of
                     each fiscal year of the Guarantor, a quarterly interim
                     balance sheets and profit and loss statements of the
                     Guarantor and its Subsidiaries and the related profit and
                     loss statements and sources and uses of funds (together
                     with a Compliance Certificate), all in reasonable detail,
                     unaudited, but certified to be true and complete by the
                     chief financial officer of the Guarantor;

             (iii)   promptly upon the mailing thereof to the shareholders of
                     the Guarantor, copies of all financial statements, reports,
                     proxy statements and other communications provided to the
                     Guarantor's shareholders;

             (iv)    within ten (10) days of the Guarantor's receipt thereof,
                     copies of all audit letters or other correspondence from
                     any external auditors including material financial
                     information in respect of the Guarantor and its
                     Subsidiaries; and

             (v)     such other statements (including, without limitation,
                     monthly consolidated statements of operating revenues and
                     expenses), lists of assets and accounts, budgets,
                     forecasts, reports and other financial information with
                     respect to its business as the Facility Agent may from time
                     to time reasonably request, certified to be true and
                     complete by the chief financial officer of the Guarantor;

         (e) Contingent Liabilities. For inclusion with each Compliance
Certificate delivered in connection with Sections 9.1(d)(i) and 9.1(d)(ii), and
in any event upon the reasonable request of the Facility Agent, an accounting of
all of the contingent liabilities of each Security Party;

         (f) Vessel Valuations. For inclusion with each Compliance Certificate
delivered pursuant to Section 9.1(d)(i), and in any event upon the reasonable
request of the Facility Agent, the Borrower shall obtain appraisals of the Fair
Market Value of the Vessel. One such additional valuation in any year is to be
at the Borrower'scost, provided, that following and during the continuance of
any Event of Default whether or not such Event of Default has been waived by the
Lenders, all such valuations are to be at the Borrower's cost. In the event the
Borrower fails or refuses to obtain the valuations requested pursuant to this
Section 9.1 within ten (10) days of the Facility Agent's request therefor, the
Facility Agent will be authorized to obtain such valuations, at the Borrower's
cost, from one of the approved ship brokers listed on Schedule III, which
valuations shall be deemed the equivalent of valuations duly obtained by the
Borrower pursuant to this Section 9.1(f), but the Facility Agent's actions in
doing so shall not excuse any default of the Borrower under this Section 9.1(f);

         (g) Corporate Existence. Do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and all
licenses, franchises, permits and assets necessary to the conduct of its
business;

         (h) Books and Records. At all times keep proper books of record and
account into which full and correct entries shall be made in accordance with
GAAP;

                                       27
<PAGE>
         (i) Taxes and Assessments. Pay and discharge all material taxes,
assessments and governmental charges or levies imposed upon it or upon its
income or property prior to the date upon which penalties attach thereto;
provided, however, that it shall not be required to pay and discharge, or cause
to be paid and discharged, any such tax, assessment, charge or levy so long as
the legality thereof shall be contested in good faith and by appropriate
proceedings or other acts and it shall set aside on its books adequate reserves
with respect thereto;

         (j) Inspection. Allow any representative or representatives designated
by the Facility Agent, subject to applicable laws and regulations, to visit and
inspect any of its properties, and, on request, to examine its books of account,
records, reports and other papers and to discuss its affairs, finances and
accounts with its officers, all at such reasonable times and as often as the
Facility Agent reasonably requests;

         (k) Inspection and Survey Reports. If the Lenders shall so request, the
Borrower shall provide the Lenders with copies of all internally generated
inspection or survey reports on the Vessel;

         (l) Compliance with Statutes, Agreements, etc. Do or cause to be done
all things necessary to comply with all material contracts or agreements to
which any of the Security Parties is a party, and all material laws, and the
rules and regulations thereunder, applicable to such Security Party, including,
without limitation, those laws, rules and regulations relating to employee
benefit plans and environmental matters except where failure to do so would not
be reasonably likely to have a Material Adverse Effect;

         (m) Environmental Matters. Promptly upon the occurrence of any of the
following conditions, provide to the Facility Agent a certificate of a chief
executive officer of the Guarantor, specifying in detail the nature of such
condition and its proposed response or the proposed response of any
Environmental Affiliate: (a) its receipt or the receipt by any Environmental
Affiliate of any written communication whatsoever that alleges that such Person
is not in compliance with any applicable Environmental Law or Environmental
Approval, if such noncompliance could reasonably be expected to have a Material
Adverse Effect, (b) knowledge by it or any Environmental Affiliate that there
exists any Environmental Claim pending or threatened against any such Person,
which could reasonably be expected to have a Material Adverse Effect, or (c) any
release, emission, discharge or disposal of any material that could form the
basis of any Environmental Claim against it or against any Environmental
Affiliate, if such Environmental Claim could reasonably be expected to have a
Material Adverse Effect. Upon the written request by the Facility Agent, the
Borrower will submit to the Facility Agent at reasonable intervals, a report
providing an update of the status of any issue or claim identified in any notice
or certificate required pursuant to this subsection;

         (n) Insurance. Maintain with financially sound and reputable insurance
companies insurance on all its properties and against all such risks and in at
least such amounts and with such deductibles as are usually insured against by
companies of established reputation engaged in the same or similar business from
time to time;

         (o) Vessel Management. Cause the Vessel to be managed both commercially
and technically by the Guarantor, a wholly-owned subsidiary thereof or its
existing manager;

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<PAGE>
         (p) Brokerage Commissions, etc. Indemnify and hold each of the Agents
and the Lenders harmless from any claim for any brokerage commission, fee or
compensation from any broker or third party resulting from the transactions
contemplated hereby;

         (q) ISM Code, ISPS Code and MTSA Matters. (i) Procure that the Operator
will comply with and ensure that the Vessel will comply with the requirements of
the ISM Code, ISPS Code and MTSA in accordance with the implementation schedules
thereof, including (but not limited to) the maintenance and renewal of valid
certificates, and when required, security plans, pursuant thereto throughout the
term of the Loan; and (ii) will procure that the Operator will immediately
inform the Facility Agent if there is any threatened or actual withdrawal of its
DOC, SMC or the ISSC in respect of the Vessel; and (iii) will procure that the
Operator will promptly inform the Facility Agent upon the issuance to the
Borrower or Operator of a DOC and to the Vessel of an SMC or ISSC;

         (r) ERISA. Forthwith upon learning of the occurrence of any material
liability of any member of the ERISA Group or any ERISA Affiliate pursuant to
ERISA in connection with the termination of any Plan or withdrawal or partial
withdrawal of any multi-employer plan (as defined in ERISA) or of a failure to
satisfy the minimum funding standards of Section 412 of the Code or Part 3 of
Title I of ERISA by any Plan for which any member of the ERISA Group or any
ERISA Affiliate is plan administrator (as defined in ERISA), furnish or cause to
be furnished to the Lenders written notice thereof;

         (s) Evidence of Current COFR. If the Lenders shall so request, provide
the Lenders with copies of the current Certificate of Financial Responsibility
pursuant to the Oil Pollution Act 1990 for the Vessel; and

9.2 Negative Covenants. Each of the Security Parties hereby covenants and
undertakes with the Lenders that, from the date hereof and so long as any
principal, interest or other moneys are owing in respect of this Agreement, the
Note or any other Transaction Documents, it will not, without the prior written
consent of the Majority Lenders (or all of the Lenders if required pursuant to
Section 16.8):

         (a) Liens. Create, assume or permit to exist, any mortgage, pledge,
lien, charge, encumbrance or any security interest whatsoever upon any
Collateral or, in respect of the Borrower and the Guarantor, other property
except:

             (i)     liens disclosed in Schedule IV;

             (ii)    liens to secure Indebtedness under Section 9.2(m), such
                     liens to be limited to the vessels constructed or acquired;

             (iii)   liens for taxes not yet payable for which adequate reserves
                     have been maintained;

             (iv)    the Mortgage, the Assignments and other liens in favor of
                     the Security Trustee or the Lenders;

             (v)     liens, charges and encumbrances against the Vessel
                     permitted to exist under the terms of the Mortgage;

                                       29
<PAGE>
             (vi)    pledges of certificates of deposit or other cash collateral
                     securing reimbursement obligations in connection with
                     letters of credit now or hereinafter issued for its account
                     in connection with the establishment of its financial
                     responsibility under 33C.F.R. Part 130 or 46 C.F.R. Part
                     540, as the case may be, as the same may be amended and
                     replaced;

             (vii)   pledges or deposits to secure obligations under workmen's
                     compensation laws or similar legislation, deposits to
                     secure public or statutory obligations, warehousemen's or
                     other like liens, or deposits to obtain the release of such
                     liens and deposits to secure surety, appeal or customs
                     bonds on which it is the principal, as to all of the
                     foregoing, only to the extent arising and continuing in the
                     ordinary course of business; and

             (viii)  other liens, charges and encumbrances incidental to the
                     conduct of its business, the ownership of its property and
                     assets and which do not in the aggregate materially detract
                     from the value of its property or assets or materially
                     impair the use thereof in the operation of its business;

         (b) Third Party Guaranties. Guaranty the obligations of any third
party, except a direct or indirect subsidiary of the Guarantor, whether or not
affiliated with such Security Party;

         (c) Liens on Shares of Borrower. With respect to the Guarantor, create,
assume or permit to exist, any mortgage, pledge, lien, charge, encumbrance or
any security interest whatsoever upon the shares of the Borrower;

         (d) Subordination of Inter-Company Indebtedness. With respect to the
Guarantor, procure that, upon the occurrence and during the continuance of an
Event of Default, no payments are made by any Security Party on any
inter-company Indebtedness until such time as the Loan is paid in full;

         (e) Transaction with Affiliates. Enter into any transaction with an
Affiliate, other than on an arms length basis;

         (f) Change of Flag, Class, Management or Ownership. Change the flag of
the Vessel other than to a jurisdiction reasonably acceptable to the Lenders,
its Classification Society other than to another member of the International
Association of Classification Societies, the technical management of the Vessel
other than to one or more technical management companies reasonably acceptable
to the Lenders or the immediate or ultimate ownership of the Vessel;

         (g) Chartering. Enter into any material amendment of the Time Charter
or any other charter party agreement without the prior consent of the Facility
Agent, which consent shall not be unreasonably withheld;

         (h) Change in Business. Materially change the nature of its business or
commence any business materially different from its current business;

                                       30
<PAGE>
         (i) Sale of Assets. Other than as reasonably acceptable to the Majority
Lenders, sell, or otherwise dispose of, the Vessel or any other asset (including
by way of spin-off, installment sale or otherwise) which is substantial in
relation to its assets taken as a whole; provided, however, that the Borrower
may sell the Vessel to a third party in an arm's length transaction provided
that the proceeds of such sale are distributed in accordance with Section 5.3 of
this Agreement;

         (j) Changes in Offices or Names. Change the location of its chief
executive office, its chief place of business or the office in which its records
relating to the earnings or insurances of the Vessel are kept or change its name
unless the Lenders shall have received sixty (60) days prior written notice of
such change;

         (k) Consolidation and Merger. Consolidate with, or merge into, any
corporation or other entity, or merge any corporation or other entity into it;
provided, however, that the Guarantor may merge with any Subsidiary or any other
Person if (A) at the time of such transaction and after giving effect thereto,
no Default or Event of Default shall have occurred or be continuing, (B) the
surviving entity of such consolidation or merger shall be the Guarantor and (C)
after giving effect to the transaction, the Guarantor's Consolidated Tangible
Net Worth shall be greater or equal to its Consolidated Tangible Net Worth prior
to the merger;

         (l) Change Fiscal Year. In the case of the Guarantor, change its fiscal
year;

         (m) Indebtedness. In the case of the Security Parties, incur any new
Indebtedness (which, for the sake of clarity, shall exclude any Indebtedness
pursuant to this Agreement) other than Indebtedness incurred to finance the
acquisition and/or construction of any vessels, provided that the principal
amount of such Indebtedness shall not exceed eighty percent (80%) of such
acquisition and/or construction price, unless such Indebtedness is subordinated
to all existing Indebtedness and this Loan; and

         (n) Limitations on Ability to Make Distributions. Except as provided in
Section 13(c)(1) of the Title XI Agreement, create or otherwise cause or permit
to exist or become effective any consensual encumbrance or restriction on the
ability of any Subsidiary to pay dividends or make any other distributions on
its capital stock or limited liability company interests, as the case may be, to
the Borrower or the Guarantor.

         (o) Change of Control. Cause or permit a Change of Control.

         (p) No Money Laundering. Contravene any law, official requirement or
other regulatory measure or procedure implemented to combat "money laundering"
(as defined in Article 1 of the Directive (91/308/EEC) of the Council of the
European Communities) and comparable United States Federal and state laws.

9.3 Financial Covenants. The Guarantor hereby covenants and undertakes with the
Lenders that, from the date hereof and so long as any principal, interest or
other moneys are owing in respect of this Agreement, the Note or any of the
Security Documents, it will:

         (a) Consolidated Indebtedness to Consolidated EBITDA Ratio. Maintain,
on a consolidated basis, a ratio of Consolidated Indebtedness to Consolidated
EBITDA of not more than 4.25 to 1.00, as measured at the end of each fiscal
quarter based on the four most recent fiscal quarters for which financial
information is available;

                                       31
<PAGE>

         (b) Working Capital. Maintain on a consolidated basis a ratio of
current assets to current liabilities of not less than 1.00 to 1.00, as measured
at the end of each fiscal quarter;

         (c) Consolidated Tangible Net Worth. Maintain a Consolidated Tangible
Net Worth, as measured at the end of each fiscal quarter, in an amount of not
less than the sum of One Hundred Sixty Million Dollars ($160,000,000) and the
sum of fifty percent (50%) of (i) all net income of the Guarantor (on a
consolidated basis) earned after June 30, 2005 and (ii) the proceeds from the
issuance of any common and/or preferred stock of the Guarantor on or after the
date hereof;

         (d) Consolidated EBITDA to Interest Expense. Maintain a ratio of
Consolidated EBITDA to Interest Expense of not less than 2.50 to 1.00, measured
at the end of each fiscal quarter based on the four most recent fiscal quarters
for which financial information is available;

9.4 Asset Maintenance. If at any time during the term of this Agreement, the
Fair Market Value of the Vessel is less than the Required Percentage of the
outstanding amount of the Loan, the Borrower shall, within a period of thirty
(30) days following receipt by the Borrower of written notice from the Facility
Agent notifying the Borrower of such shortfall and specifying the amount thereof
(which amount shall, in the absence of manifest error, be deemed to be
conclusive and binding on the Borrower), either (i) deliver to the Security
Trustee such additional collateral as may be satisfactory to the Lenders in
their sole discretion of sufficient value to make the Fair Market Value of the
Vessel plus the additional collateral, equal to the Required Percentage of the
outstanding amount of the Loan or (ii) the Borrower shall prepay such amount of
the Loan (together with interest thereon and any other monies payable in respect
of such prepayment pursuant to Section 5.4) as shall result in the Fair Market
Value of the Vessel being not less than the Required Percentage of the
outstanding amount of the Loan.

10. GUARANTEE

10.1 The Guarantee. The Guarantor hereby irrevocably and unconditionally
guarantees to each of the Creditors and their respective successors and assigns
the prompt payment in full when due (whether at stated maturity, by acceleration
or otherwise) of the principal of and interest on the Loan made by the Lenders
to the Borrower and evidenced by the Note and all other amounts from time to
time owing to the Creditors by the Borrower under this Agreement, under the Note
and under any of the Security Documents, in each case strictly in accordance
with the terms thereof (such obligations being herein collectively called the
"Guaranteed Obligations"). The Guarantor hereby further agrees that if the
Borrower shall fail to pay in full when due (whether at stated maturity, by
acceleration or otherwise) any of the Guaranteed Obligations, the Guarantor will
promptly pay the same, without any demand or notice whatsoever, and that in the
case of any extension of time of payment or renewal of any of the Guaranteed
Obligations, the same will be promptly paid in full when due (whether at
extended maturity, by acceleration or otherwise) in accordance with the terms of
such extension or renewal.

10.2 Obligations Unconditional. The obligations of the Guarantor under Section
10.1 are absolute, unconditional and irrevocable, irrespective of the value,
genuineness, validity, regularity or enforceability of the obligations of the
Borrower under this Agreement, the Note or any other agreement or instrument
referred to herein or therein, or any substitution, release or exchange of any
other guarantee of, or security for, any of the Guaranteed Obligations, and, to
the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever that might otherwise

                                       32
<PAGE>
constitute a legal or equitable discharge or defense of a surety or guarantor,
it being the intent of this Section 10.2 that the obligations of the Guarantor
hereunder shall be absolute, unconditional and irrevocable, under any and all
circumstances. Without limiting the generality of the foregoing, it is agreed
that the occurrence of any one or more of the following shall not alter or
impair the liability of the Guarantor hereunder, which shall remain absolute,
unconditional and irrevocable as described above:

             a)      at any time or from time to time, without notice to the
                     Guarantor, the time for any performance of or compliance
                     with any of the Guaranteed Obligations shall be extended,
                     or such performance or compliance shall be waived;

             b)      any of the acts mentioned in any of the provisions of this
                     Agreement or the Note or any other agreement or instrument
                     referred to herein or therein shall be done or omitted;

             c)      the maturity of any of the Guaranteed Obligations shall be
                     accelerated, or any of the Guaranteed Obligations shall be
                     modified, supplemented or amended in any respect, or any
                     right under this Agreement or the Note or any other
                     agreement or instrument referred to herein or therein shall
                     be waived or any other guarantee of any of the Guaranteed
                     Obligations or any security therefor shall be released or
                     exchanged, in whole or in part, or otherwise dealt with; or

             d)      any lien or security interest granted to, or in favor of,
                     the Security Trustee or any Lender or Lenders as security
                     for any of the Guaranteed Obligations shall fail to be
                     perfected.

The Guarantor hereby expressly waives diligence, presentment, demand of payment,
protest and all notices whatsoever, and any requirement that any Agent or any
Lender exhaust any right, power or remedy or proceed against the Borrower under
this Agreement or the Note or any other agreement or instrument referred to
herein or therein, or against any other Person under any other guarantee of, or
security for, any of the Guaranteed Obligations.

10.3 Reinstatement. The obligations of the Guarantor under this Section 10 shall
be automatically reinstated if and to the extent that for any reason any payment
by or on behalf of the Borrower in respect of the Guaranteed Obligations is
rescinded or must be otherwise restored by any holder of any of the Guaranteed
Obligations, whether as a result of any Proceedings and the Guarantor agrees
that it will indemnify each Creditor on demand for all reasonable costs and
expenses (including, without limitation, fees of counsel) incurred by such
Creditor in connection with such recission or restoration, including any such
costs and expenses incurred in defending against any claim alleging that such
payment constituted a preference, fraudulent transfer or similar payment under
any bankruptcy, insolvency or similar law.

10.4 Subrogation. The Guarantor hereby irrevocably waives, but only until all
amounts payable hereunder by the Guarantor to the Creditors (or any of them)
have been paid in full, any and all rights to which any of them may be entitled
by operation of law or otherwise, upon making any payment hereunder to be
subrogated to the rights of the payee against the Borrower with respect to such
payment or to be reimbursed, indemnified or exonerated by or to seek
contribution from the Borrower in respect thereof.

10.5 Remedies. The Guarantor agrees that, as between the Guarantor and the
Lenders, the obligations of the Borrower under this Agreement and the Note may
be declared to be forthwith due and payable as provided in Section 8 (and shall
be deemed to have become automatically due and

                                       33
<PAGE>
payable in the circumstances provided in said Section 8) for purposes of Section
10.1 notwithstanding any stay, injunction or other prohibition preventing such
declaration (or such obligations from becoming automatically due and payable) as
against the Borrower and that, in the event of such declaration (or such
obligations being deemed to have become automatically due and payable), such
obligations (whether or not due and payable by the Borrower) shall forthwith
become due and payable by the Guarantor for purposes of Section 10.1.

10.6 Joint, Several and Solidary Liability. The Guarantor's obligations and
liability under this Agreement shall be on a "solidary" or "joint and several"
basis along with Borrower to the same degree and extent as if the Guarantor had
been and/or will be a co-borrower, co-principal obligor and/or co-maker of the
Guaranteed Obligations. In the event that there is more than one Guarantor under
this Agreement, or in the event that there are other guarantors, endorsers or
sureties of all or any portion of the Guaranteed Obligations, the Guarantor's
obligations and liability hereunder shall further be on a "solidary" or "joint
and several" basis along with such other guarantors, endorsers and/or sureties.

10.7 Continuing Guarantee. The guarantee in this Section 10 is a continuing
guarantee, and shall apply to all Guaranteed Obligations whenever arising.

11. ASSIGNMENT.

         This Agreement shall be binding upon, and inure to the benefit of, each
of the Security Parties and each of the Creditors and their respective
successors and assigns, except that none of the Security Parties may assign any
of its rights or obligations hereunder without the written consent of the
Lenders. Each Lender shall be entitled to assign its rights and obligations
under this Agreement or grant participation(s) in the Loan to any subsidiary,
holding company or other affiliate of such Lender, to any subsidiary or other
affiliate company of any thereof or, with the consent of the Borrower (except
upon the occurrence and during the continuation of an Event of Default, in which
case the Borrower's consent shall not be required) and the Agents, in the case
of the Borrower such consent not to be unreasonably withheld, to any other bank
or financial institution (in a minimum amount of not less than $1,000,000), and
such Lender shall forthwith give notice of any such assignment or participation
to the Borrower and pay the other Lender an assignment fee of $3,000 for each
such assignment or participation; provided, however, that any such assignment
must be made pursuant to an Assignment and Assumption Agreement. The Borrower
will take all reasonable actions requested by the Agents or any Lender to effect
such assignment, including, without limitation, the execution of a written
consent to any Assignment and Assumption Agreement.

12. ILLEGALITY, INCREASED COST, NON-AVAILABILITY, ETC.

12.1 Illegality. In the event that by reason of any change in any applicable
law, regulation or regulatory requirement or in the interpretation thereof, a
Lender has a reasonable basis to conclude that it has become unlawful for any
Lender to maintain or give effect to its obligations as contemplated by this
Agreement, such Lender shall inform the Facility Agent and the Borrower to that
effect, whereafter the liability of such Lender to make its Commitment available
shall forthwith cease and the Borrower shall be required either to repay to such
Lender that portion of the Loan advanced by such Lender immediately or, if such
Lender so agrees, to repay such portion of the Loan to the Lender on the last
day of the calendar month in accordance with and subject to the provisions of
Section 12.5. In any such event, but without prejudice to the aforesaid
obligations of

                                       34
<PAGE>
the Borrower to repay such portion of the Loan, the Borrower and the relevant
Lender shall negotiate in good faith with a view to agreeing on terms for making
such portion of the Loan available from another jurisdiction or otherwise
restructuring such portion of the Loan on a basis which is not unlawful.

12.2 Increased Costs. If any change in applicable law, regulation or regulatory
requirement, or in the interpretation or application thereof by any governmental
or other authority, shall:

             (i)     subject any Lender to any Taxes with respect to its income
                     from the Loan, or any part thereof, or

             (ii)    change the basis of taxation to any Lender of payments of
                     principal or interest or any other payment due or to become
                     due pursuant to this Agreement (other than a change in the
                     basis effected by the jurisdiction of organization of such
                     Lender, the jurisdiction of the principal place of business
                     of such Lender, the United States of America, the State or
                     City of New York or any governmental subdivision or other
                     taxing authority having jurisdiction over such Lender
                     (unless such jurisdiction is asserted by reason of the
                     activities of any Security Party) or such other
                     jurisdiction where the Loan may be payable), or

             (iii)   impose, modify or deem applicable any reserve requirements
                     or require the making of any special deposits against or in
                     respect of any assets or liabilities of, deposits with or
                     for the account of, or loans by, a Lender, or

             (iv)    impose on any Lender any other condition affecting the Loan
                     or any part thereof,

         and the result of the foregoing is either to increase the cost to such
Lender of making available or maintaining its Commitment or any part thereof or
to reduce the amount of any payment received by such Lender, then and in any
such case if such increase or reduction in the opinion of such Lender materially
affects the interests of such Lender under or in connection with this Agreement:

         (a) such Lender shall notify the Facility Agent and the Borrower of the
happening of such event, and

         (b) the Borrower agrees forthwith upon demand to pay to such Lender
such amount as such Lender certifies to be necessary to compensate such Lender
for such additional cost or such reduction; provided however, that the foregoing
provisions shall not be applicable in the event that increased costs to the
Lender result from the exercise by the Lender of its right to assign its rights
or obligations under Section 11.

12.3 Nonavailability of Funds. If the Facility Agent shall determine that, by
reason of circumstances affecting the London Interbank Market generally,
adequate and reasonable means do not or will not exist for ascertaining the
Applicable Rate, the Facility Agent shall give notice of such determination to
the Borrower and the Lenders. The Borrower, the Facility Agent and the Majority
Lenders shall then negotiate in good faith in order to agree upon a mutually
satisfactory

                                       35
<PAGE>
interest rate to be substituted for that which would otherwise have
applied under this Agreement. If the Borrower, the Facility Agent and the
Majority Lenders are unable to agree upon such a substituted interest rate
within thirty (30) days of the giving of such determination notice, the Facility
Agent shall set an interest rate to take effect at the Facility Agent's
direction, which rate shall be equal to the Applicable Margin plus the cost to
the Lenders (as certified by each Lender) of funding the Loan.

12.4 Lender's Certificate Conclusive. A certificate or determination notice of
the Facility Agent or any Lender, as the case may be, as to any of the matters
referred to in this Section 12 shall, absent manifest error, be conclusive and
binding on the Borrower.

12.5 Compensation for Losses. Where any portion of the Loan is to be repaid by
the Borrower pursuant to this Section 12, the Borrower agrees simultaneously
with such repayment to pay to the relevant Lender all accrued interest to the
date of actual payment on the amount repaid and all other sums then payable by
the Borrower to the relevant Lender pursuant to this Agreement, together with
such amounts as may be certified by the relevant Lender to be necessary to
compensate such Lender for any actual loss, premium or penalties incurred or to
be incurred thereby on account of funds borrowed to make, fund or maintain its
Commitment or such portion thereof for the remainder (if any) of the then
current calendar month, but otherwise without penalty or premium.

13. CURRENCY INDEMNITY

13.1 Currency Conversion. If for the purpose of obtaining or enforcing a
judgment in any court in any country it becomes necessary to convert into any
other currency (the "judgment currency") an amount due in Dollars under this
Agreement or the other Transaction Documents then the conversion shall be made,
in the discretion of the Facility Agent, at the rate of exchange prevailing
either on the date of default or on the day before the day on which the judgment
is given or the order for enforcement is made, as the case may be (the
"conversion date"), provided that the Facility Agent shall not be entitled to
recover under this section any amount in the judgment currency which exceeds at
the conversion date the amount in Dollars due under this Agreement, the Note
and/or the other Transaction Documents.

13.2 Change in Exchange Rate. If there is a change in the rate of exchange
prevailing between the conversion date and the date of actual payment of the
amount due, the Borrower shall pay such additional amounts (if any, but in any
event not a lesser amount) as may be necessary to ensure that the amount paid in
the judgment currency when converted at the rate of exchange prevailing on the
date of payment will produce the amount then due under this Agreement, the Note
and/or the other Transaction Documents in Dollars; any excess over the amount
due received or collected by the Lenders shall be remitted to the Borrower.

13.3 Additional Debt Due. Any amount due from the Borrower under this Section 13
shall be due as a separate debt and shall not be affected by judgment being
obtained for any other sums due under or in respect of this Agreement, the Note
and/or any of the Security Documents.

13.4 Rate of Exchange. The term "rate of exchange" in this Section 13 means the
rate at which the Facility Agent in accordance with its normal practices is able
on the relevant date to purchase Dollars with the judgment currency and includes
any premium and costs of exchange payable in connection with such purchase.

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<PAGE>
14. FEES AND EXPENSES

14.1 Fees. The Borrower shall pay to the Facility Agent (for the account of the
Lenders) a fee equal to five-tenths of one percent (0.5%) of the Loan, such fee
to be payable on the Closing Date. The Borrower shall pay to the Arrangers an
arrangement fee of Fifty Thousand Dollars ($50,000), such fee to be payable on
the Closing Date. The Borrower shall also pay to the Facility Agent an agency
fee of Seven Thousand Five Hundred Dollars ($7,500) per annum, per lender.

14.2 Expenses. The Borrower agrees, whether or not the transactions hereby
contemplated are consummated, on demand to pay, or reimburse the Agents for
their payment of, the reasonable expenses of the Agents and (after the
occurrence and during the continuance of an Event of Default) the Lenders
incident to said transactions (and in connection with any supplements,
amendments, waivers or consents relating thereto or incurred in connection with
the enforcement or defense of any of the Agents' and the Lenders' rights or
remedies with respect thereto or in the preservation of the Agents' and the
Lenders' priorities under the documentation executed and delivered in connection
therewith) including, without limitation, all reasonable costs and expenses of
preparation, negotiation, execution and administration of this Agreement and the
documents referred to herein, the reasonable fees and disbursements of the
Agents' counsel in connection therewith, as well as the reasonable fees and
expenses of any independent appraisers, surveyors, engineers and other
consultants retained by the Agents in connection with this transaction, all
reasonable costs and expenses, if any, in connection with the enforcement of
this Agreement and the other Transaction Documents and stamp and other similar
taxes, if any, incident to the execution and delivery of the documents
(including, without limitation, the other Transaction Documents) herein
contemplated and to hold the Agents and the Lenders free and harmless in
connection with any liability arising from the nonpayment of any such stamp or
other similar taxes. Such taxes and, if any, interest and penalties related
thereto as may become payable after the date hereof shall be paid immediately by
the Borrower to the Agents or the Lenders, as the case may be, when liability
therefor is no longer contested by such party or parties or reimbursed
immediately by the Borrower to such party or parties after payment thereof (if
the Agents or the Lenders, at their sole discretion, chooses to make such
payment).

15. APPLICABLE LAW, JURISDICTION AND WAIVER

15.1 Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

15.2 Jurisdiction. The Borrower hereby irrevocably submits to the jurisdiction
of the courts of the State of New York and of the United States District Court
for the Southern District of New York in any action or proceeding brought
against it by any of the Lenders or the Agents under this Loan Agreement or
under any document delivered hereunder and hereby irrevocably agrees that valid
service of summons or other legal process on it may be effected by serving a
copy of the summons and other legal process in any such action or proceeding on
the Borrower by mailing or delivering the same by hand to the Borrower at the
address indicated for notices in Section 17.1. The service, as herein provided,
of such summons or other legal process in any such action or proceeding shall be
deemed personal service and accepted by the Borrower as such, and shall be legal
and binding upon the Borrower for all the purposes of any such action or
proceeding. Final judgment (a certified or exemplified copy of which shall be
conclusive evidence of the fact and of the amount of any indebtedness of the
Borrower to the Lenders or the Agent) against the Borrower in any such legal
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on

                                       37
<PAGE>
the judgment. The Borrower will advise the Facility Agent promptly of any change
of address for the purpose of service of process. Notwithstanding anything
herein to the contrary, the Lenders may bring any legal action or proceeding in
any other appropriate jurisdiction.

15.3 WAIVER OF JURY TRIAL. IT IS MUTUALLY AGREED BY AND AMONG EACH OF THE
SECURITY PARTIES AND EACH OF THE CREDITORS THAT EACH OF THEM HEREBY WAIVES TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO
AGAINST ANY OTHER PARTY HERETO ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY
WAY CONNECTED WITH THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS.

16. THE AGENTS

16.1 Appointment of Agents. Each of the Lenders irrevocably appoints and
authorizes the Facility Agent to take such action as facility agent on its
behalf and to exercise such powers under this Agreement, the Note and the other
Transaction Documents as are delegated to the Facility Agent by the terms hereof
and thereof. The Facility Agent nor any of its directors, officers, employees or
agents shall be liable for any action taken or omitted to be taken by it or them
under this Agreement, the Note or the other Transaction Documents or in
connection therewith, except for its or their own gross negligence or willful
misconduct.

16.2 Appointment of Security Trustee. Each of the Lenders irrevocably appoints,
designates and authorizes the Security Trustee to act as security trustee on its
behalf with regard to (i) the security, powers, rights, titles, benefits and
interests (both present and future) constituted by and conferred on the Lenders
or any of them or for the benefit thereof under or pursuant to this Agreement or
any of the other Transaction Documents (including, without limitation, the
benefit of all covenants, undertakings, representations, warranties and
obligations given, made or undertaken to any Lender in the Agreement or the
other Transaction Documents), (ii) all moneys, property and other assets paid or
transferred to or vested in any Lender or any agent of any Lender or received or
recovered by any Lender or any agent of any Lender pursuant to, or in connection
with, this Agreement or the other Transaction Documents whether from any
Security Party or any other person and (iii) all money, investments, property
and other assets at any time representing or deriving from any of the foregoing,
including all interest, income and other sums at any time received or receivable
by any Lender or any agent of any Lender in respect of the same (or any part
thereof). The Security Trustee hereby accepts such appointment but shall have no
obligations under this Agreement, under the Note or under any of the Security
Documents except those expressly set forth herein and therein.

16.3 Distribution of Payments. Whenever any payment is received by the Facility
Agent or the Security Trustee from the Borrower or the Guarantor for the account
of the Lenders, or any of them, whether of principal or interest on the Note,
commissions, fees under Section 14 or otherwise, it will thereafter cause to be
distributed on the same day if received before 10 a.m. New York time, or on the
next day if received thereafter, like funds relating to such payment ratably to
the Lenders according to their respective Commitments, in each case to be
applied according to the terms of this Agreement. Unless the Facility Agent or
the Security Trustee, as the case may be, shall have received notice from the
Borrower prior to the date when any payment is due hereunder that the Borrower
will not make any payment on such date, the Facility Agent or the Security
Trustee may assume that the Borrower have made such payment to the Facility
Agent or the Security Trustee, as the case may be, on the relevant date and the
Facility Agent or the Security Trustee may, in reliance upon such assumption,
make available to the Lenders on such date a corresponding amount relating

                                       38
<PAGE>
to such payment ratably to the Lenders according to their respective
Commitments. If and to the extent that the Borrower shall not have so made such
payment available to the Facility Agent or the Security Trustee, as the case may
be, the Lenders and the Borrower (but without duplication) severally agree to
repay to the Facility Agent or the Security Trustee, as the case may be,
forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to the Lenders until
the date such amount is repaid to the Facility Agent or the Security Trustee, as
the case may be, as calculated by the Facility Agent or Security Trustee to
reflect its cost of funds.

16.4 Holder of Interest in Note. The Agents may treat each Lender as the holder
of all of the interest of such Lender in the Note.

16.5 No Duty to Examine, Etc. The Agents shall not be under a duty to examine or
pass upon the validity, effectiveness or genuineness of any of this Agreement,
the other Transaction Documents or any instrument, document or communication
furnished pursuant to this Agreement or in connection therewith or in connection
with any other Transaction Document, and the Agents shall be entitled to assume
that the same are valid, effective and genuine, have been signed or sent by the
proper parties and are what they purport to be.

16.6 Agents as Lenders. With respect to that portion of the Loan made available
by it, each Agent shall have the same rights and powers hereunder as any other
Lender and may exercise the same as though it were not an Agent, and the term
"Lender" or "Lenders" shall include the Agent in its capacity as a Lender. Each
Agent and its affiliates may accept deposits from, lend money to and generally
engage in any kind of business with, the Borrower and the Guarantor as if it
were not an Agent.

16.7 Acts of the Agents. Each Agent shall have duties and discretion, and shall
act as follows:

             (a)     Obligations of the Agents. The obligations of each Agent
                     under this Agreement, the Note and the other Transaction
                     Documents are only those expressly set forth herein and
                     therein;

             (b)     No Duty to Investigate. No Agent shall at any time, unless
                     requested to do so by a Lender or Lenders, be under any
                     duty to enquire whether an Event of Default, or an event
                     which with the giving of notice or lapse of time, or both,
                     would constitute an Event of Default, has occurred or to
                     investigate the performance of this Agreement, the Note or
                     any Security Document by any Security Party; and

             (c)     Discretion of the Agents. Each Agent shall be entitled to
                     use its discretion with respect to exercising or refraining
                     from exercising any rights which may be vested in it by,
                     and with respect to taking or refraining from taking any
                     action or actions which it may be able to take under or in
                     respect of, this Agreement and the other Transaction
                     Documents, unless the Facility Agent shall have been
                     instructed by the Majority Lenders to exercise such rights
                     or to take or refrain from taking such action; provided,
                     however, that no Agent shall be required to take any action
                     which exposes it to personal liability or which is contrary
                     to this Agreement or applicable law;

                                       39
<PAGE>
             (d)     Instructions of Majority Lenders. Each Agent shall in all
                     cases be fully protected in acting or refraining from
                     acting under this Agreement or under any other Transaction
                     Document in accordance with the instructions of the
                     Majority Lenders, and any action taken or failure to act
                     pursuant to such instructions shall be binding on all of
                     the Lenders.

16.8 Certain Amendments. Neither this Agreement, the Note nor any of the
Security Documents nor any terms hereof or thereof may be amended unless such
amendment is approved by the Borrower and the Majority Lenders, provided that no
such amendment shall, without the consent of each Lender affected thereby, (i)
reduce the interest rate or extend the time of payment of scheduled principal
payments or interest or fees on the Loan, or reduce the principal amount of the
Loan or any fees hereunder, (ii) increase or decrease the Commitment of any
Lender or subject any Lender to any additional obligation (it being understood
that a waiver of any Event of Default or any mandatory repayment of the Loan
shall not constitute a change in the terms of any Commitment of any Lender),
(iii) amend, modify or waive any provision of this Section 16.8, (iv) amend the
definition of Majority Lenders or any other definition referred to in this
Section 16.8, (v) consent to the assignment or transfer by the Borrower of any
of its rights and obligations under this Agreement, (vi) release any Security
Party from any of its obligations under any Security Document except as
expressly provided herein or in such Security Document, (vii) amend any
provision relating to the maintenance of collateral under Section 9.4 or (viii)
amend the definition of Available Amount. All amendments approved by the
Majority Lenders under this Section 16.8 must be in writing and signed by the
Borrower and each of the Lenders. In the event that any Lender is unable to or
refuses to sign an amendment approved by the Majority Lenders hereunder, such
Lender hereby appoints the Agent as its Attorney-In-Fact for the purposes of
signing such amendment. No provision of this Section 16 or any other provisions
relating to the Agent may be modified without the consent of the Agent.

16.9 Assumption re Event of Default. Except as otherwise provided in Section
16.15, the Facility Agent and the Security Trustee shall be entitled to assume
that no Event of Default, or event which with the giving of notice or lapse of
time, or both, would constitute an Event of Default, has occurred and is
continuing, unless it has been notified by any Security Party of such fact, or
has been notified by a Lender that such Lender considers that an Event of
Default or such an event (specifying in detail the nature thereof) has occurred
and is continuing. In the event that either thereof shall have been notified by
any Security Party or any Lender in the manner set forth in the preceding
sentence of any Event of Default or of an event which with the giving of notice
or lapse of time, or both, would constitute an Event of Default, the Facility
Agent shall notify the Lenders and shall take action and assert such rights
under this Agreement, under the Note and under Security Documents as the
Majority Lenders shall request in writing.

16.10 Limitations of Liability. No Agent or Lender shall be under any liability
or responsibility whatsoever:

             (a)     to any Security Party or any other person or entity as a
                     consequence of any failure or delay in performance by, or
                     any breach by, any other Lenders or any other person of any
                     of its or their obligations under this Agreement or under
                     any Security Document;

             (b)     to any Lender or Lenders as a consequence of any failure or
                     delay in performance by, or any breach by, any Security
                     Party of any of its respective obligations under this
                     Agreement or under the other Transaction Documents; or

                                       40
<PAGE>
             (c)     to any Lender or Lenders for any statements,
                     representations or warranties contained in this Agreement,
                     in any Security Document or in any document or instrument
                     delivered in connection with the transaction hereby
                     contemplated; or for the validity, effectiveness,
                     enforceability or sufficiency of this Agreement, any other
                     Transaction Document or any document or instrument
                     delivered in connection with the transactions hereby
                     contemplated.

16.11 Indemnification of the Agent and Security Trustee. The Lenders agree to
indemnify each Agent (to the extent not reimbursed by the Security Parties or
any thereof), pro rata according to the respective amounts of their Commitments,
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever (including legal fees and expenses incurred in
investigating claims and defending itself against such liabilities) which may be
imposed on, incurred by or asserted against, such Agent in any way relating to
or arising out of this Agreement or any other Transaction Document, any action
taken or omitted by such Agent thereunder or the preparation, administration,
amendment or enforcement of, or waiver of any provision of, this Agreement or
any other Transaction Document, except that no Lender shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the gross
negligence or willful misconduct of either such Agent.

16.12 Consultation with Counsel. Each of the Facility Agent and the Security
Trustee may consult with legal counsel selected by such Agent and shall not be
liable for any action taken, permitted or omitted by it in good faith in
accordance with the advice or opinion of such counsel.

16.13 Resignation. Any Agent may resign at any time by giving sixty (60) days'
written notice thereof to the other Agents, the Lenders and the Borrower. Upon
any such resignation, the Lenders shall have the right to appoint a successor
Agent. If no successor Agent shall have been so appointed by the Lenders and
shall have accepted such appointment within sixty (60) days after the retiring
Agent's giving notice of resignation, then the retiring Agent may, on behalf of
the Lenders, appoint a successor Agent which shall be a bank or trust company of
recognized standing. The appointment of any successor Agent shall be subject to
the prior written consent of the Borrower, such consent not to be unreasonably
withheld. After any retiring Agent's resignation as Agent hereunder, the
provisions of this Section 16 shall continue in effect for its benefit with
respect to any actions taken or omitted by it while acting as Agent.

16.14 Representations of Lenders. Each Lender represents and warrants to each
other Lender and the Agent that:

             (a)     in making its decision to enter into this Agreement and to
                     make its Commitment available hereunder, it has
                     independently taken whatever steps it considers necessary
                     to evaluate the financial condition and affairs of the
                     Security Parties, that it has made an independent credit
                     judgment and that it has not relied upon any statement,
                     representation or warranty by any other Lender or any
                     Agent; and

                                       41
<PAGE>
             (b)     so long as any portion of its Commitment remains
                     outstanding, it will continue to make its own independent
                     evaluation of the financial condition and affairs of the
                     Security Parties.

16.15 Notification of Event of Default. The Facility Agent hereby undertakes to
promptly notify the Lenders, and the Lenders hereby promptly undertake to notify
the Facility Agent and the other Lenders, of the existence of any Event of
Default which shall have occurred and be continuing of which such party has
actual knowledge.

17. NOTICES AND DEMANDS

17.1 Notices. All notices, requests, demands and other communications to any
party hereunder shall be in writing (including prepaid overnight courier,
facsimile transmission or similar writing) and shall be given to the Borrower or
the Guarantor at the address or facsimile number set forth below and to the
Lenders and the Agents at their address and facsimile numbers set forth in
Schedule I or at such other address or facsimile numbers as such party may
hereafter specify for the purpose by notice to each other party hereto. Each
such notice, request or other communication shall be effective (i) if given by
facsimile, when such facsimile is transmitted to the facsimile number specified
in this Section and telephonic confirmation of receipt thereof is obtained or
(ii) if given by mail, prepaid overnight courier or any other means, when
received at the address specified in this Section or when delivery at such
address is refused.

                  If to the Borrower or the Guarantor:

                  650 Poydras Street
                  New Orleans, LA 70130
                  Facsimile No.: (504) 529-2078
                  Attention: Chief Financial Officer

                  With a copy to

                  One Whitehall Street
                  New York, NY 10004
                  Facsimile No.:  (212) 514-5692
                  Attention:  Mr. Niels M. Johnsen

18. MISCELLANEOUS

18.1 Time of Essence. Time is of the essence of this Agreement but no failure or
delay on the part of any Creditor to exercise any power or right under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise by any Creditor of any power or right hereunder preclude any other or
further exercise thereof or the exercise of any other power or right. The
remedies provided herein are cumulative and are not exclusive of any remedies
provided by law.

18.2 Unenforceable, etc., Provisions - Effect. In case any one or more of the
provisions contained in this Agreement or in the other Transaction Documents
would, if given effect, be invalid, illegal or unenforceable in any respect
under any law applicable in any relevant jurisdiction, said provision shall not
be enforceable against the relevant Security Party, but the validity, legality
and enforceability of the remaining provisions herein or therein contained shall
not in any way be affected or impaired thereby.

                                       42
<PAGE>
18.3 References. References herein to Articles, Sections, Exhibits and Schedules
are to be construed as references to articles, sections of, exhibits to, and
schedules to, this Agreement or the other Transaction Documents as applicable,
unless the context otherwise requires.

18.4 Further Assurances. Each of the Security Parties hereby agrees that if this
Agreement or any of the other Transaction Documents shall, in the reasonable
opinion of the Lenders, at any time be deemed by the Lenders for any reason
insufficient in whole or in part to carry out the true intent and spirit hereof
or thereof, it will execute or cause to be executed such other and further
assurances and documents as in the opinion of the Lenders may be required in
order to more effectively accomplish the purposes of this Agreement and/or the
other Transaction Documents.

18.5 Prior Agreements, Merger. Any and all prior understandings and agreements
heretofore entered into between the Security Parties on the one part, and the
Creditors, on the other part, whether written or oral, are superseded by and
merged into this Agreement and the other agreements (the forms of which are
exhibited hereto) to be executed and delivered in connection herewith to which
the Security Parties, the Agent, the Security Trustee and/or the Lenders are
parties, which alone fully and completely express the agreements between the
Security Parties, the Agents, and the Lenders.

18.6 Entire Agreement; Amendments. This Agreement constitutes the entire
agreement of the parties hereto including all parties added hereto pursuant to
an Assignment and Assumption Agreement. Subject to Section 16.8, any provision
of this Agreement or any other Transaction Document may be amended or waived if,
but only if, such amendment or waiver is in writing and is signed by the
Borrower, the Agents, and the Majority Lenders. This Agreement may be executed
in any number of counterparts, each of which shall be deemed an original, but
all such counterparts together shall constitute one and the same instrument.

18.7 Indemnification. Neither any Creditor nor any of its directors, officers,
agents or employees shall be liable to any of the Security Parties for any
action taken or not taken thereby in connection herewith in the absence of its
own gross negligence or willful misconduct. The Borrower and the Guarantor
hereby jointly and severally agree to indemnify the Creditors, their respective
affiliates and the respective directors, officers, agents and employees of the
foregoing (each an "Indemnitee") and hold each Indemnitee harmless from and
against any and all liabilities, losses, damages, costs and expenses of any
kind, including, without limitation, the reasonable fees and disbursements of
counsel, which may be incurred by such Indemnitee in connection with any
investigative, administrative or judicial proceeding (whether or not such
Indemnitee shall be designated a party thereto) brought or threatened relating
to or arising out of this Agreement, any actual or proposed use of proceeds of
the Loan hereunder, or any related transaction or claim; provided that (i) no
Indemnitee shall have the right to be indemnified hereunder for such
Indemnitee's own gross negligence or willful misconduct as determined by a court
of competent jurisdiction and (ii) to the extent permitted by law, the
Indemnitee shall provide the Security Parties with prompt notice of any such
investigative, administrative or judicial proceeding after the Indemnitee
becomes aware of such proceeding; provided, however, that the Indemnitee's
failure to provide such notice in a timely manner shall not relieve the Security
Parties of their obligations hereunder.

18.8 Headings. In this Agreement, Section headings are inserted for convenience
of reference only and shall not be taken into account in the interpretation of
this Agreement.

                  [Remainder of Page Intentionally Left Blank]

                                       43
<PAGE>
                           IN WITNESS whereof the parties hereto have caused
this Agreement to be duly executed by their duly
authorized representatives as of the day and year first above written.

                                    CENTRAL GULF LINES, INC.,
                                    as Borrower

                                    By:  /s/ NIELS M. JOHNSEN
                                       -----------------------------------------
                                         Name:  Niels M. Johnsen
                                         Title: Chairman

                                    INTERNATIONAL SHIPHOLDING CORPORATION,
                                    as Guarantor

                                    By:  /s/ NIELS M. JOHNSEN
                                       -----------------------------------------
                                         Name:  Niels M. Johnsen
                                         Title: President

                                    DNB NOR BANK ASA,
                                    as Facility Agent, Arranger and Lender

                                         By: /s/ SANJIV NAYAR
                                            ------------------------------------
                                         Name:  Sanjiv Nayar
                                         Title: Senior Vice President

                                         By: /s/ NIKOLAI NACHAMKIN
                                            ------------------------------------
                                         Name:  Nikolai Nachamkin
                                         Title: Senior Vice President

                                    DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT,
                                    as Security Trustee, Arranger and Lender

                                         By: /s/ LARS BOHLIG
                                            ------------------------------------
                                         Name:  Lars Bohlig
                                         Title: Assistant General Manager

                                         By: /s/ TANJA LAUERER
                                            ------------------------------------
                                         Name:  Tanja Lauerer
                                         Title: Assistant General Manager

<PAGE>
                                                                      SCHEDULE I

LENDERS                                                          COMMITMENT

Deutsche Schiffsbank Aktiengesellschaft                          $16,000,000
Domshof 17
P.O. Box 106269
28195 Bremen
Germany
Facsimile No.: +49 421 360 9329
Telephone No.: +49 421 360 9249
Email: malte.schulte-trux@schiffsbank.com
Attention: Malte Schulte-Trux

DnB NOR Bank ASA                                                 $16,000,000
New York Branch
200 Park Avenue
31st Floor
New York, New York  10166-0396
Facsimile No.: 212 681 3900
Telephone No.: 212 681 3858
Email: erlend.bryn@dnbnor.no
Attention: Mr. Erlend Bryn

<PAGE>

                                                                     SCHEDULE II

                                APPLICABLE MARGIN

         The Applicable Margin will vary as set forth hereunder based upon the
Guarantor's Consolidated Indebtedness to Consolidated EBITDA ratio:

<Table>
<Caption>
Consolidated Indebtedness/              Applicable Margin
Consolidated EBITDA
-----------------------------------     ---------------------------------------
<S>                                     <C>
    greater than or equal to 4.00         One and one-quarter percent (1.25%)
                                                       per annum

            less than 4.00                     One percent (1.0%) per annum

</Table>
Commencing on the eight year anniversary of this Agreement, the Applicable
Margin shall be increased by one-quarter of one percent (.25%) per annum.

The Applicable Margin for the Loan shall be determined by the Facility Agent
based on the information set out in the most recent Compliance Certificate
delivered to the Facility Agent in accordance with Section 9.1(d) hereof and
such determination of the Applicable Margin, absent manifest error, shall be
conclusive and binding upon the Borrower. In the event of a failure by the
Borrower to deliver a Compliance Certificate in a timely manner, the Guarantor's
Consolidated Indebtedness to Consolidated EBITDA ratio shall be deemed to be
equal to or greater than 4.00 until such Compliance Certificate is delivered.
Each change in Applicable Margin, if any, shall be effective as of the start of
the next calendar month.

<PAGE>
                                                                    SCHEDULE III

                              Approved Shipbrokers

R.S. Platou Shipbrokers a.s.                       Faber Shipping
Haakon VII's gate 10                               Olgasvej 39
Oslo, Norway                                       DK-2950 Vedbek
Telephone No.: +47 23 11 20 00                     Copenhagen, Denmark
Facsimile No.: +47 23 11 23 11                     Telephone No.: +45 4566 0450
                                                   Facsimile No.: +45 4566 0547

Fearnleys A/S
Grev Wedels plass 9
Oslo, Norway
Telephone No.: +47 22 93 60 00
Facsimile No.: +47 22 93 61 50

H. Clarkson & Company
12 Camomile Street
London EC3A 7BP
England
Telephone No.: +44 207 334 0000
Facsimile No.: +44 207 283 5260

Braemar Shipbrokers Ltd.
35 Cosway Street
London NW1 5BT
England
Telephone No.: +44 207 535 2600
Facsimile No.: +44 207 535 2601

Jacq. Pierot Jr. & Sons, Inc. (USA)
29 Broadway
New York, NY 10006
Telephone No.: (212) 344 3840
Facsimile No.: (212) 943 6598

Henses Shipping AS
Rosanes
0rsnesallen 20
P.O. Box 40, Teie
3106 T0nsberg
Norway
Telephone No.: +47 33 30 44 44
Facsimile No.: +47 33 32 30 30

<PAGE>

                                                                     SCHEDULE IV

                       Security Party Liens as of 9/30/05

Central Gulf Lines, Inc.

     1.  Mortgage, Earnings Assignment and Insurance Assignment on 419 LASH
         Barges in favor of DnB Nor Bank ASA (fka Den norske Bank ASA).

     2.  Mortgage, Earnings Assignment and Insurance Assignment on vessels GREEN
         LAKE and GREEN COVE in favor of HSBC Bank PLC as Facility Agent.

The foregoing does not reflect Liens to be discharged as a result of
Indebtedness paid off with the proceeds of the Loan.

<PAGE>
                                                                      SCHEDULE V

                    Security Party Indebtedness as of 9/30/05

International Shipholding Corporation

     1.  $54,033,000 outstanding on ISC's 7.75% Senior Notes, with The Bank of
         New York, as trustee, due October 15, 2007.

     2.  Guarantee of indebtedness in the amount of $28,541,000 to HSH Nordbank
         AG and others, which indebtedness is due on November 24, 2011.

     3.  Guarantee of indebtedness in the amount of $0 to Whitney National Bank
         and others, which indebtedness has a maturity date of December 6, 2009.

Central Gulf Lines, Inc.

     1.  $76,064,000 outstanding on LCI's and Central Gulf Lines, Inc.'s, as
         joint and several borrowers, credit facility dated September 30, 2003
         with HSBC Bank Plc and others, which indebtedness has a maturity date
         of September 30, 2013.

     2.  $0 outstanding on Central Gulf Lines, Inc.'s and LCI Shipholdings,
         Inc.'s, as joint and several borrowers, credit facility dated December
         6, 2004 with Whitney National Bank and others, which indebtedness has a
         maturity date of December 6, 2009.exv4w27

 

Exhibit 4.27

COUNTRYWIDE FINANCIAL CORPORATION

Issuer

TO

THE BANK OF NEW YORK

Trustee

INDENTURE

Dated as of September 30, 2005

Subordinated Debt Securities

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE ONE	 	 	 	 
	 
	 	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 101.
	 	Definitions	 	 	2	 
	SECTION 102.
	 	Compliance Certificates and Opinions	 	 	9	 
	SECTION 103.
	 	Form of Documents Delivered to Trustee	 	 	10	 
	SECTION 104.
	 	Acts of Holders	 	 	11	 
	SECTION 105.
	 	Notices, etc., to Trustee and Company	 	 	11	 
	SECTION 106.
	 	Notice to Holders; Waiver	 	 	12	 
	SECTION 107.
	 	Conflict with Trust Indenture Act	 	 	12	 
	SECTION 108.
	 	Effect of Headings and Table of Contents	 	 	12	 
	SECTION 109.
	 	Successors and Assigns	 	 	12	 
	SECTION 110.
	 	Separability Clause	 	 	13	 
	SECTION 111.
	 	Benefits of Indenture	 	 	13	 
	SECTION 112.
	 	Governing Law	 	 	13	 
	SECTION 113.
	 	Legal Holidays	 	 	13	 
	SECTION 114.
	 	Moneys of Different Currencies to be Segregated	 	 	13	 
	SECTION 115.
	 	Payment to Be in Proper Currency	 	 	13	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE TWO	 	 	 	 
	 
	 	FORMS OF DEBT SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 201.
	 	Forms Generally	 	 	15	 
	SECTION 202.
	 	Forms of Debt Securities	 	 	15	 
	SECTION 203.
	 	Form of Trustee’s Certificate of Authentication	 	 	15	 
	SECTION 204.
	 	CUSIP Numbers	 	 	16	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE THREE	 	 	 	 
	 
	 	THE DEBT SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 301.
	 	Amount Unlimited; Issuable in Series	 	 	17	 
	SECTION 302.
	 	Denominations	 	 	19	 
	SECTION 303.
	 	Execution, Authentication, Delivery and Dating	 	 	19	 
	SECTION 304.
	 	Temporary Debt Securities	 	 	21	 
	SECTION 305.
	 	Registration, Registration of Transfer and Exchange	 	 	22	 
	SECTION 306.
	 	Mutilated, Destroyed, Lost and Stolen Debt Securities	 	 	24	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 307.
	 	Payment of Interest; Interest Rights Preserved	 	 	24	 
	SECTION 308.
	 	Persons Deemed Owners	 	 	27	 
	SECTION 309.
	 	Cancellation	 	 	27	 
	SECTION 310.
	 	Computation of Interest	 	 	27	 
	SECTION 311.
	 	Payment in Currencies	 	 	27	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE FOUR	 	 	 	 
	 
	 	SATISFACTION AND DISCHARGE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 401.
	 	Satisfaction and Discharge of Indenture	 	 	31	 
	SECTION 402.
	 	Application of Trust Money	 	 	32	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE FIVE	 	 	 	 
	 
	 	REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 501.
	 	Events of Default	 	 	33	 
	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	 	 	36	 
	SECTION 505.
	 	Trustee May Enforce Claims without Possession of Debt Securities	 	 	37	 
	SECTION 506.
	 	Application of Money Collected	 	 	37	 
	SECTION 507.
	 	Limitation on Suits	 	 	37	 
	SECTION 508.
	 	Unconditional Right of Holders to
Receive Principal, Premium (if any) and Interest	 	 	38	 
	SECTION 509.
	 	Restoration of Rights and Remedies	 	 	38	 
	SECTION 510.
	 	Rights and Remedies Cumulative	 	 	38	 
	SECTION 511.
	 	Delay or Omission Not Waiver	 	 	39	 
	SECTION 512.
	 	Control by Holders	 	 	39	 
	SECTION 513.
	 	Waiver of Past Defaults	 	 	39	 
	SECTION 514.
	 	Undertaking for Costs	 	 	40	 
	SECTION 515.
	 	Waiver of Stay or Extension Laws	 	 	40	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE SIX	 	 	 	 
	 
	 	THE TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 601.
	 	Certain Duties and Responsibilities	 	 	41	 
	SECTION 602.
	 	Notice of Defaults	 	 	42	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 603.
	 	Certain Rights of Trustee	 	 	42	 
	SECTION 604.
	 	Not Responsible for Recitals or Issuance of Debt Securities	 	 	44	 
	SECTION 605.
	 	May Hold Debt Securities	 	 	44	 
	SECTION 606.
	 	Money Held in Trust	 	 	44	 
	SECTION 607.
	 	Compensation and Reimbursement	 	 	44	 
	SECTION 608.
	 	Corporate Trustee Required; Eligibility	 	 	45	 
	SECTION 609.
	 	Resignation and Removal; Appointment of Successor	 	 	45	 
	SECTION 610.
	 	Acceptance of Appointment by Successor	 	 	47	 
	SECTION 611.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	48	 
	SECTION 612.
	 	Preferential Collection of Claims	 	 	48	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE SEVEN	 	 	 	 
	 
	 	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 701.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	49	 
	SECTION 702.
	 	Preservation of Information; Communications to Holders	 	 	49	 
	SECTION 703.
	 	Reports by Trustee	 	 	49	 
	SECTION 704.
	 	Reports by Company	 	 	50	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE EIGHT	 	 	 	 
	 
	 	CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 801.
	 	Company May Consolidate, etc., Only on Certain Terms	 	 	51	 
	SECTION 802.
	 	Successor Corporation Substituted	 	 	51	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE NINE	 	 	 	 
	 
	 	SUPPLEMENTAL INDENTURES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 901.
	 	Supplemental Indentures without Consent of Holders	 	 	52	 
	SECTION 902.
	 	Supplemental Indentures with Consent of Holders	 	 	53	 
	SECTION 903.
	 	Execution of Supplemental Indentures	 	 	54	 
	SECTION 904.
	 	Effect of Supplemental Indentures	 	 	54	 
	SECTION 905.
	 	Notice to Holders	 	 	54	 
	SECTION 906.
	 	Conformity with Trust Indenture Act	 	 	54	 
	SECTION 907.
	 	Reference in Debt Securities to Supplemental Indentures	 	 	55	 
	SECTION 908.
	 	Subordination Unimpaired	 	 	55	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE TEN	 	 	 	 
	 
	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1001.
	 	Payment of Principal, Premium and Interest	 	 	56	 
	SECTION 1002.
	 	Maintenance of Office or Agency	 	 	56	 
	SECTION 1003.
	 	Money for Debt Securities Payments to Be Held in Trust	 	 	56	 
	SECTION 1004.
	 	Investment Company Act	 	 	58	 
	SECTION 1005.
	 	Officers’ Certificate as to Default	 	 	58	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE ELEVEN	 	 	 	 
	 
	 	REDEMPTION OF DEBT SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1101.
	 	Applicability of Article	 	 	59	 
	SECTION 1102.
	 	Election to Redeem, Notice to Trustee	 	 	59	 
	SECTION 1103.
	 	Selection by Trustee of Debt Securities to Be Redeemed	 	 	59	 
	SECTION 1104.
	 	Notice of Redemption	 	 	59	 
	SECTION 1105.
	 	Deposit of Redemption Price	 	 	60	 
	SECTION 1106.
	 	Debt Securities Payable on Redemption Date	 	 	60	 
	SECTION 1107.
	 	Debt Securities Redeemed in Part	 	 	61	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE TWELVE	 	 	 	 
	 
	 	SINKING FUNDS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1201.
	 	Applicability of Article	 	 	62	 
	SECTION 1202.
	 	Satisfaction of Sinking Fund Payments with Debt Securities	 	 	62	 
	SECTION 1203.
	 	Redemption of Debt Securities for Sinking Fund	 	 	62	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE THIRTEEN	 	 	 	 
	 
	 	DEFEASANCE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1301.
	 	Applicability of Article	 	 	64	 
	SECTION 1302.
	 	Defeasance Upon Deposit of Moneys or U.S. Government Obligations	 	 	64	 
	SECTION 1303.
	 	Deposited Moneys and U.S. Government Obligations To Be Held in Trust	 	 	66	 
	SECTION 1304.
	 	Repayment to Company	 	 	66	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE FOURTEEN	 	 	 	 
	 
	 	REPAYMENT AT THE OPTION OF HOLDERS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1401.
	 	Applicability of Article	 	 	67	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1402.
	 	Repayment of Debt Securities	 	 	67	 
	SECTION 1403.
	 	Exercise of Option	 	 	67	 
	SECTION 1404.
	 	When Debt Securities Surrendered
for Repayment Become Due and Payable	 	 	68	 
	SECTION 1405.
	 	Debt Securities Repaid in Part	 	 	68	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE FIFTEEN	 	 	 	 
	 
	 	SUBORDINATION OF DEBT SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1501.
	 	Agreement to Subordinate	 	 	69	 
	SECTION 1502.
	 	Default on Senior Indebtedness	 	 	69	 
	SECTION 1503.
	 	Liquidation; Dissolution; Bankruptcy	 	 	70	 
	SECTION 1504.
	 	Subrogation	 	 	71	 
	SECTION 1505.
	 	Trustee to Effectuate Subordination	 	 	72	 
	SECTION 1506.
	 	Notice by the Company	 	 	72	 
	SECTION 1507.
	 	Rights of the Trustee; Holders of Senior Indebtedness	 	 	73	 
	SECTION 1508.
	 	Subordination May Not Be Impaired	 	 	73	 

-v-

 

     INDENTURE dated as of September 30, 2005, between COUNTRYWIDE FINANCIAL CORPORATION, a
Delaware corporation (hereinafter called the “Company”), having its principal office at 4500 Park
Granada, Calabasas, CA 91302, and THE BANK OF NEW YORK, a New York banking corporation (hereinafter
called the “Trustee”), having its Corporate Trust Office at 101 Barclay Street, New York, New York
10286.

RECITALS OF THE COMPANY

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

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

     This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended,
and the rules and regulations of the Securities and Exchange Commission promulgated thereunder that
are required to be part of this Indenture and, to the extent applicable, shall be governed by such
provisions.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

1

 

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

          SECTION 101. Definitions.

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

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

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

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

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

          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.

          “Additional Provisions” has the meaning specified in Section 1501.

          “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.

          “Board of Directors” means the board of directors of the Company or the executive or any other
committee of that board duly authorized to act in respect hereof.

          “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, and delivered to the Trustee.

          “Business Day”, when with respect to any Place of Payment, unless otherwise specified in a
Board Resolution, and an Officers’ Certificate, or in a supplemental indenture,

-2-

 

means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking
institutions in an applicable Place of Payment or the city in which the Trustee’s Corporate Trust
Office is located or in New York, New York or Los Angeles, California are authorized or obligated
by law, executive order or regulation to remain closed.

          For purposes of Section 311(b)(4) of the Trust Indenture Act, the term “cash transaction”
means any transaction in which full payment for goods or securities sold is made within seven days
after delivery of the goods or securities in currency or in checks or other orders drawn upon the
banks or bankers and payable upon demand.

          “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, or if at any time after the execution 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 on such date.

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

          “Components”, with respect to a composite currency, means the currency amounts that are
components of such composite currency on the Conversion Date with respect to such composite
currency. If the official unit of any component currency is altered by way of combination or
subdivision, the amount of such currency in the Component shall be proportionately divided or
multiplied. If two or more component currencies are consolidated into a single currency, the
amounts of those currencies as Components shall be replaced by an amount in such single currency
equal to the sum of the amounts of such consolidated component currencies expressed in such single
currency, and such amount shall thereafter be a Component. If after such Conversion Date any
component currency shall be divided into two or more currencies, the amount of such currency as a
Component shall be replaced by amounts of such two or more currencies, each of which shall be equal
to the amount of such former component currency divided by the number of currencies into which such
component currency was divided, and such amounts shall thereafter be Components.

          “Conversion Date”, with respect to a composite currency, has the meaning specified in Section
311.

          “Corporate Trust Office” means the corporate trust office of the Trustee at which at any
particular time its corporate trust business shall be principally administered, which office at the
date of execution of this instrument is located at 101 Barclay Street, Floor 8 West, New York, New
York 10286, Attention: Corporate Trust Administration, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Company, or the

-3-

 

principal corporate trust office of any successor Trustee (or such other address as such
successor Trustee may designate from time to time by notice to the Holders and the Company).

          The term “corporation” includes corporations, associations, companies and business trusts.

          “Current Stated Principal Maturity” has the meaning specified in Section 312.

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

          “Default” has the meaning specified in Section 503.

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

          “Discharged” has the meaning specified in Section 1302.

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

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

          “Exchange Rate” means, unless otherwise specified in accordance with Section 301, (a) with
respect to Dollars in which payment is to be made on a series of Debt Securities denominated in a
composite currency, the exchange rate between Dollars and such composite currency reported by the
agency or organization, if any, designated pursuant to Section 301(11) on the applicable Regular or
Special Record Date with respect to an Interest Payment Date or the fifteenth day immediately
preceding the Maturity of an installment of principal, or on such other date provided herein, as
the case may be; (b) with respect to Dollars in which payment is to be made on a series of Debt
Securities denominated in a Foreign Currency, the noon Dollar buying rate for that currency for
cable transfers quoted by the Exchange Rate Agent in The City of New York on the Regular or Special
Record Date with respect to an Interest Payment Date or the fifteenth day immediately preceding the
Maturity of an installment of principal, or on such other date provided herein, as the case maybe,
as certified for customs purposes by the Federal Reserve Bank of New York and (c) with respect to
Foreign Currency in which payment is to be made on a series of Debt Securities converted into
Dollars pursuant to Section 311(d), the noon Dollar selling rate for that currency for cable
transfers quoted by the Exchange Rate Agent in The City of New York on the second Business Day
preceding an Interest Payment Date or the second Business Day preceding the Maturity of an
installment of principal, or on such other date provided herein, as the case may be, as certified
for customs purposes by the Federal Reserve Bank of New York. If for any reason such rates are not
available with respect to one or more currencies for which an Exchange Rate is required, the
Company shall use such quotation of the Federal Reserve Bank of New York as of the most recent
available date, or quotations from one or more commercial banks in The City of New York or in the
country of issue of the currency in question, or such other quotations as the Company, in each
case, shall deem appropriate. If there is more than one market for dealing in any currency by
reason of foreign exchange regulations or otherwise, the market to be used in respect of such
currency shall be the largest market upon

-4-

 

which a nonresident issuer of securities designated in such currency would purchase such
currency in order to make payments in respect of such securities.

          “Exchange Rate Agent” means the New York clearing house bank designated pursuant to Section
301, or any successor thereto.

          “Exchange Rate Officer’s Certificate”, with respect to any date for the payment of principal
of (and premium, if any) and interest on any series of Debt Securities, means a certificate setting
forth the applicable Exchange Rate as of the Regular or Special Record Date with respect to an
Interest Payment Date or the fifteenth day immediately preceding the maturity of an installment of
principal, as the case may be, and the amounts payable in Dollars in respect of the principal of
(and premium, if any) and interest on Debt Securities denominated in any Foreign Currency, and
signed by the Chairman of the Board, the President, any Vice President, any Assistant Vice
President, the Treasurer, any Assistant Treasurer, the Controller or any Assistant Controller of
the Company and delivered to the Trustee.

          “Extension Notice” has the meaning specified in Section 312.

          “Extension Period” has the meaning specified in Section 312.

          “Final Maturity” has the meaning specified in Section 312.

          “Foreign Currency” means any currency, currency unit or composite currency issued by the
government of one or more countries other than the United States of America or by any recognized
confederation or association of such governments.

          “Holder” means a Person in whose name a Debt 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, unless the context otherwise requires, shall include the terms of
a particular series of Debt Securities established as contemplated by Section 301.

          The term “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”, with respect to any Debt Security, means the Stated Maturity of an
installment of interest on such Debt Security.

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

-5-

 

          “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the
President, any Managing Director, any Vice President, the Treasurer, an Assistant Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary of the Company that
complies with the requirements of Section 314(e) of the Trust Indenture Act and is delivered to the
Trustee.

          “Opinion of Counsel” means a written opinion of counsel, who may be an employee of, or counsel
to, the Company and who shall be reasonably satisfactory to the Trustee, which is delivered to the
Trustee.

          “Optional Reset Date” has the meaning specified in Section 307(b).

          “Original Issue Discount Security” means, except as otherwise defined in a Debt Security, any
Debt Security which is issued with original issue discount within the meaning of Section 1273(a) of
the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

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

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

          (ii) Debt Securities for whose payment, redemption or repayment 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 Debt Securities; provided,
however, that if such Debt Securities are to be redeemed, notice of such redemption
has been duly given pursuant to this Indenture and such Debt Securities or provision
therefor satisfactory to the Trustee has been made; and

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

provided, however, that in determining whether the Holders of the requisite
principal amount of Debt Securities Outstanding have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Debt Securities owned by the Company or any other
obligor upon the Debt 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 such request, demand, authorization, direction, notice, consent or
waiver, only Debt Securities which the Trustee knows to be so owned shall be so disregarded. Debt
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

-6-

 

act with respect to such Debt Securities and that the pledgee is not the Company or any other
obligor upon the Debt Securities or any Affiliate of the Company or of such other obligor. The
Trustee shall not be deemed to know that any Debt Securities are so owned unless it has received
written notice of such fact at its Corporate Trust Office or unless one of its Responsible Officers
has actual knowledge thereof.

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

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

          “Place of Payment”, when used with respect to the Debt Securities of any series, unless
otherwise specified in a Board Resolution, and an Officers’ Certificate, or in a supplemental
indenture, means the office or agency of the Company in the Borough of Manhattan, The City and
State of New York, and such other place or places, if any, where the principal of (and premium, if
any) and interest on the Debt Securities of that series are payable as specified as contemplated by
Section 301.

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

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

          “Redemption Price”, when used with respect to any Debt 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 Debt
Securities of any series means the date specified for that purpose as contemplated by Section 301.

          “Repayment Date” means, when used with respect to any Debt Security to be repaid at the option
of the Holder, the date fixed for such repayment by or pursuant to this Indenture.

          “Repayment Price” means, when used with respect to any Debt Security to be repaid at the
option of the Holder, the price at which it is to be repaid by or pursuant to this Indenture.

          “Required Currency” means the currency in which the Debt Securities of any series are payable,
in accordance with their terms or pursuant to an election made by one or more Holders pursuant to
Section 301 hereof. If, however, the Required Currency is unavailable for the reasons stated in
Section 311(d)(i) or (ii), the Required Currency shall mean U.S. Dollars.

-7-

 

          “Reset Notice” has the meaning specified in Section 307(b).

          “Responsible Officer”, when used with respect to the Trustee, means any officer of the Trustee
assigned to its corporate trust department, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred because of such
person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

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

          For purposes of Section 311(b)(6) of the Trust Indenture Act, the term “self-liquidating
paper” means any draft, bill of exchanges, acceptance or obligation which is made, drawn,
negotiated or incurred by the Company or any other obligor upon the Debt Securities for the purpose
of financing the purchase, processing, manufacture, shipment, storage or sale of goods, wares or
merchandise and which is secured by documents evidencing title to, possession of or a lien upon,
the goods, wares or merchandise or the receivables or proceeds arising from the sale of the goods,
wares or merchandise previously constituting the security, provided the security is
received by the Trustee simultaneously with the creation of the creditor relationship with such
Person arising from the making, drawing, negotiation or incurring of the draft, bill of exchange,
acceptance or obligation.

          “Senior Indebtedness” means, with respect to the Company, (i) the principal,
premium, if any, and interest in respect of (A) indebtedness for money borrowed and (B)
indebtedness evidenced by securities, debentures, bonds or other similar instruments; (ii) all
capital lease obligations; (iii) all obligations issued or assumed as the deferred purchase price
of property, all conditional sale obligations and all obligations under any title retention
agreement (but excluding trade accounts payable arising in the ordinary course of business); (iv)
all obligations for the reimbursement on any letter of credit, banker’s acceptance, security
purchase facility, repurchase agreement or similar arrangement; (v) all obligations to make payment
or delivery pursuant to the terms of financial instruments such as (a) securities contracts and
foreign currency exchange contracts, (b) derivative instruments, such as swap agreements (including
interest rate and foreign exchange rate swap agreements), cap agreements, floor agreements, collar
agreements, interest rate agreements, foreign exchange rate agreements, options, commodity futures
contracts, commodity option contracts or any other hedging arrangement, and (c) in the case of both
(a) and (b) above, any similar credit or other arrangements, transactions or financial instruments,
(vi) all obligations of the type referred to in clauses (i) through (v) of other Persons (whether
on balance sheet or off), the payment of which the Company is responsible or liable as obligor,
guarantor or otherwise, or for which the Company provides direct credit support or substitutes; and
(vii) all obligations of the type referred to in clauses (i) through (vi) of other Persons secured
by any lien on any property or asset of the Company (whether or not such obligation is assumed by
the Company), except that Senior Indebtedness shall not include (1) any such indebtedness that
contains express terms, or is issued under a deed, indenture or other agreement or instrument that
contains express terms, providing that it is subordinate to or ranks pari passu with the Debt
Securities, (2) the guarantee by the Company of the indebtedness

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represented by the 8% Junior Subordinated Deferrable Interest Debentures due December 15, 2026
of Countrywide Home Loans, Inc., (3) the guarantee by the Company of the indebtedness represented
by the 8.05% Junior Subordinated Debentures due June 15, 2027 of Countrywide Home Loans, Inc., and
(4) the indebtedness represented by the 6.75% Junior Subordinated Deferrable Interest Debentures
Due April 1, 2033 issued by the Company.

          “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 Debt Security or any installment of principal
thereof or interest thereon, means the date specified in such Debt Security as the fixed date on
which the principal of such Debt Security or such installment of principal or interest is due and
payable.

          “Stated Principal Maturity” means the Stated Maturity for the payment of principal, or any
installment of principal, of any Debt Security.

          “Subsidiary” means any corporation at least a majority of the outstanding Voting Stock of
which shall at the time directly or indirectly be owned or controlled by the Company or 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 Debt Securities of any series shall mean the Trustee with respect to Debt Securities of that
series.

          “Trust Indenture Act” means the Trust Indenture Act of 1939 and any reference herein to such
Act or a particular provision thereof shall mean such Act or provision, as the case may be, as
amended or replaced from time to time or as supplemented from time to time by rules or regulations
adopted by the Commission under or in furtherance of the purposes of such Act or provision, as the
case may be.

          “U.S. Government Obligations” has the meaning specified in Section 1302.

          “Voting Stock”, as applied to the stock of any corporation, means stock of any class or
classes, however designated, having ordinary voting power for the election of a majority of the
directors of such corporation, other than stock having such power only by reason of the happening
of a contingency.

          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 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

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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 any 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 as
to whether or not such covenant or conclusion has been complied with; and

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

          SECTION 103. Form of Documents Delivered to Trustee.

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

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

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

          SECTION 104. Acts of Holders.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and

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evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by agent duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are delivered to the Trustee
and, where it is hereby expressly required, to the Company. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Holders signing such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 315 of the Trust Indenture Act) 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 in any manner which the Trustee deems sufficient.

          (c) The ownership, principal amount and serial numbers of Debt Securities held by any Person,
and the date of the commencement and the date of the termination of holding the same, shall be
proved by the Security Register.

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

          (e) For purposes of determining the aggregate principal amount of Outstanding Debt Securities
of any series the Holders of which are required, requested or permitted to give any request,
demand, authorization, direction, notice, consent, waiver or take any other Act under this
Indenture, each Debt Security denominated in a Foreign Currency shall be deemed to have a principal
amount determined by an Exchange Rate Agent (as evidenced by a certificate of such Exchange Rate
Agent) by converting the principal amount of such Debt Security in the Foreign Currency in which
such Debt Security is denominated into Dollars at the Exchange Rate as of 9:00 A.M., New York time,
on the date such Act is delivered to the Trustee and, where it is hereby expressly required, to the
Company (or, if there is no such rate on such date for the reasons specified in Section 311(d)(i)
of the Indenture, such rate on the rate specified in such Section).

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

          Any request, demand, authorization, direction, notice, consent, waiver or other 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 if made, given, furnished or filed in writing to or with the Trustee at its
Corporate Trust Office, or

     (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed,

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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 or at any other address
previously furnished in writing to the Trustee by the Company, Attention: Chairman of the
Board of Directors, 4500 Park Granada, Calabasas, California 91302.

          SECTION 106. Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest data 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 matter, 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 the event of suspension of regular mail service or for any other reason it shall be
impracticable to give such notice by mail, then such a notification as shall be made with the
approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

          SECTION 107. Conflict with Trust Indenture Act.

          If any provision hereof limits, qualifies or conflicts with any duties under any required
provision of the Trust Indenture Act imposed hereon by Section 318(c) thereof, such required
provision shall control.

          SECTION 108. Effect of Headings and Table of Contents.

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

          SECTION 109. Successors and Assigns.

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

          SECTION 110. Separability Clause.

          In case any provision in this Indenture or in the Debt 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.

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          SECTION 111. Benefits of Indenture.

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

          SECTION 112. Governing Law.

          This Indenture and the Debt Securities shall be governed by and construed in accordance with
the laws of the State of New York applicable to agreements made and to be performed in said state.

          SECTION 113. Legal Holidays.

          Unless otherwise specifically provided for in the applicable Debt Securities, in any case
where any Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date, Stated
Maturity, Stated Principal Maturity or Maturity of any Debt Security shall not be a Business Day at
any Place of Payment, then the required payment of principal, premium, if any, and/or interest 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, Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity, Stated Principal
Maturity or Maturity, and no interest shall accrue on such payment for the period from and after
such Interest Payment Date, Repayment Date, Redemption Date, sinking fund payment date, Stated
Maturity, Stated Principal Maturity or Maturity, as the case may be, to the next succeeding
Business Day.

          SECTION 114. Moneys of Different Currencies to be Segregated.

          The Trustee shall segregate all moneys, funds and accounts held by the Trustee hereunder in
one currency from any moneys, funds or accounts in any other currencies, notwithstanding any
provision herein which would otherwise permit the Trustee to commingle such amounts.

          SECTION 115. Payment to Be in Proper Currency.

          Each reference in any Debt Security, or in the Board Resolution relating thereto, to any
currency shall be of the essence. The obligation of the Company to make any payment of principal
of (and premium, if any) and interest on any Debt Security 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 than 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, and 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. The Company hereby

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waives any defense of payment based upon any such tender or recovery which is not in the
Required Currency, or which, when exchanged for the Required Currency by the Trustee, is less than
the full amount of Required Currency then due and payable.

          Any costs incurred by or on behalf of the Company (other than costs incurred by the Trustee
that are passed on to the Company as provided above) in correction with the conversion of any
Foreign Currency to Dollars pursuant to an election made by a Holder in accordance with Section 301
shall be borne by the Holder making such an election through deduction from payments required to be
made to such Holder pursuant to the terms of this Indenture.

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ARTICLE TWO

FORMS OF DEBT SECURITIES

          SECTION 201. Forms Generally.

          The Debt Securities shall have 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 or designation and such legends or endorsements placed thereon, as
the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture,
or as may be required to comply with any law or with any rule or regulation made pursuant thereto
or with any rule or regulation of any securities exchange on which any of the Debt Securities may
be listed, or to conform to usage, all as determined by the officers executing such Debt
Securities, as conclusively evidenced by their execution of such Debt Securities.

          The Trustee’s certificate of authentication shall be in substantially the form set forth in
Section 203.

          SECTION 202. Forms of Debt Securities.

          Each Debt Security shall be the form approved from time to time by or pursuant to a Board
Resolution and an Officers’ Certificate or one or more indentures supplemental hereto which shall
set forth the information required by Section 301. If the form of Debt Security for 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 Officers’ Certificate setting forth such form.

          SECTION 203. Form of Trustee’s Certificate of Authentication.

          The form of the Trustee’s certificate of authentication to be borne by the Debt Securities
shall be substantially as follows:

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	          Dated:

	 	 
	 	 	 	     THE BANK OF NEW YORK,
	 

	 	 	 	 	 	     as Trustee
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	     Authorized Signatory

          SECTION
204. CUSIP Numbers.

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

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ARTICLE THREE

THE DEBT SECURITIES

               SECTION 301. Amount Unlimited; Issuable in Series.

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

               The Debt Securities may be issued in one or more series. There shall be established in or
pursuant to a Board Resolution, and set forth in an Officers’ Certificate, or established in one or
more indentures supplemental hereto, with such notification to the Trustee in advance of the
issuance of the Debt Securities of any series as may be agreed upon by the parties hereto:

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

          (2) the limit, if any, upon the aggregate principal amount of the Debt Securities of
the series which may be authenticated and delivered under this Indenture (except for Debt
Securities authenticated and delivered upon registration or, transfer of, or in exchange
for, or in lieu of, other Debt Securities of the series pursuant to Section 304, 305, 306,
907 or 1107);

          (3) the date or dates, or the method or methods, if any, by which such date or dates
shall be determined or extended, on which the principal of the Debt Securities of the series
is payable;

          (4) the rate or rates, if any, at which the Debt Securities of the series shall bear
interest, if any, or the method or methods, if any, by which such rate or rates are to be
determined or reset, the date or dates, if any, from which such interest shall accrue, or
the method or methods, if any, by which such date or dates shall be determined or reset, the
Interest Payment Dates, if any, on which such interest shall be payable and the Regular
Record Dates, if any, for the interest payable on such Interest Payment Dates, and the basis
upon which interest shall be calculated if other than that of a 360-day year of twelve
30-day months;

          (5) the place or places, if any, in addition to or other than the office or agency of
the Company in the Borough of Manhattan, The City of New York and State of New York, where
the principal of (and premium, if any) and interest on Debt Securities of the series shall
be payable, any Debt Securities may be surrendered for registration of transfer or exchange
and notices or demands to or upon the Company in respect of such Debt Securities and this
Indenture may be served;

          (6) the period or periods within which or the date or dates on which, if any, the price
or prices at which and the terms and conditions upon which Debt Securities of the series may
be redeemed, in whole or in part, at the option of the Company;

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

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

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

          (10) provisions, if any, for the defeasance of Debt Securities of the series;

          (11) (A) the currency of denomination of the Debt Securities of any series, which may
be in Dollars or any Foreign Currency, (B) if such Debt Securities are denominated in a
Foreign Currency which is a composite currency, the agency or organization, if any,
responsible for overseeing such composite currency and (C) if such Debt Securities are
denominated in a Foreign Currency other than a composite currency, the capital city of the
country of such Foreign Currency;

          (12) the designation of the currency or currencies in which payment of the principal of
(and premium, if any) and interest on the Debt Securities of the series will be made, and,
if such currency or currencies is a Foreign Currency, whether payment of the principal (and
premium, if any) or the interest on such Debt Securities, at the election of a Holder
thereof, may instead be payable in Dollars and the terms and conditions upon which such
election may be made;

          (13) any additional Defaults or restrictive covenants provided for with respect to Debt
Securities of the series;

          (14) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture), including any terms which may be required or advisable under
United States laws or regulations or advisable in connection with the marketing of Debt
Securities of the series;

          (15) if the Debt Securities of such series are to be denominated or payable in a
Foreign Currency, the designation of the initial Exchange Rate Agent and, if other than as
set forth herein, the definition of the Exchange Rate;

          (16) the form of Debt Securities of such series and, if issuable in global form, the
name of the depository with respect thereto and the terms upon which and the circumstances
under which such Notes may be exchanged; and

          (17) the ability, if any, of the Holder of a Debt Security to renew all or any portion
of a Debt Security.

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               All Debt Securities of any one series shall be substantially identical except as to the
currency of payments due thereunder, denomination, the rate or rates of interest, if any, and
Maturity and except as may otherwise be provided in or pursuant to such Board Resolution and set
forth in such Officers’ Certificate or in any such indenture supplemental hereto. In addition, all
Debt Securities of any one series need not be issued at the same time and, unless otherwise so
provided by the Company, a series may be reopened for issuance of additional Debt Securities of
such series or to establish additional terms of such series of Debt Securities.

               If any of the terms of a series of Debt Securities is established by an 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 such series.

               SECTION 302. Denominations.

               Unless otherwise specified in a supplemental indenture, the Debt Securities of each series
shall be issuable in registered form without coupons in such denominations as shall be specified in
accordance with the requirements of Section 301. In the absence of any such provisions with
respect to the Debt Securities of any series, the Debt Securities of such series shall be issuable
in denominations of $1,000 or any integral multiple thereto. Debt Securities denominated in a
Foreign Currency shall be issuable in such denominations as are established with respect to such
Debt Securities in or pursuant to this Indenture.

               SECTION 303. Execution, Authentication, Delivery and Dating.

               (a) The Debt Securities shall be executed on behalf of the Company by its Chairman of the
Board, its President, one of its Managing Directors or one of its Vice Presidents. The signature
of any of these officers on the Debt Securities may be manual or facsimile.

               Debt 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 Debt
Securities or did not hold such offices at the date of such Debt Securities.

               (b) At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Debt Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of each such
series of such Debt Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Debt Securities. The Trustee shall be entitled to receive, prior to
the authentication and delivery of such Debt Securities, the supplemental indenture or the Board
Resolution by or pursuant to which the form and terms of such Debt Securities have been approved
(and, if such form or terms are approved, pursuant to a Board Resolution, an Officers’ Certificate
approving such terms and form), an Officers’ Certificate as to the absence of any event which is,
or after notice or lapse of time or both would become, an Event of Default, and an Opinion of
Counsel stating that:

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          (1) all instruments furnished by the Company to the Trustee in connection with the
authentication and delivery of such Debt Securities conform to the requirements of this
Indenture and constitute sufficient authority hereunder for the Trustee to authenticate and
deliver such Debt Securities;

          (2) the form and terms of such Debt Securities have been established in conformity with
the provisions of this Indenture;

          (3) in the event that the form or terms of such Debt Securities have been established
in a supplemental indenture the execution and delivery of such supplemental indenture have
been duly authorized by all necessary corporate action of the Company, such supplemental
indenture has been duly executed and delivered by the Company and, assuming due
authorization, execution and delivery by the Trustee, will constitute a legal, valid and
binding obligation enforceable against the Company in accordance with its terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and
subject, as to enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law);

          (4) the execution and delivery of such Debt Securities have been duly authorized by all
necessary corporate action of the Company and such Debt Securities have been duly executed
by the Company, and, assuming due authentication by the Trustee and delivery by the Company,
will constitute the legal, valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, entitled to the benefit of the Indenture,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally and subject, as to enforceability, to general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law);

          (5) that all laws and requirements hereunder in respect of the execution and delivery
by the Company of such Debt Securities have been complied with; and

          (6) such other matters as the Trustee may reasonably request.

               (c) If all the Debt Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Opinion of Counsel and Officers’ Certificates at the time of issuance of
each Debt Security, but such opinion and certificate, with appropriate modifications, shall be
delivered at or before the time of issuance of the first Debt Security of such series. Any request
by the Company that the Trustee authenticate Debt Securities of such series will be deemed to be a
certification by the Company that (i) all conditions precedent provided for in this Indenture
relating to the authentication and delivery of such Debt Securities have been complied with and
(ii) there has not occurred an event which is, or after notice or lapse of time or both, would
become an Event of Default.

               Notwithstanding the above, if the terms of Debt Securities are to be established pursuant to a
supplemental indenture, the Company shall deliver to the Trustee, together with such supplemental
indenture, the Opinion of Counsel referred to in subsection (b), above, and the

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Officers’ Certificate, referred to in subsection (b), above, regarding the absence of an Event
of Default.

               (d) The Trustee shall not be required to authenticate such Debt Securities if the issuance of
such Debt Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or
immunities under the Debt Securities and this Indenture or otherwise in a manner which is not
reasonably acceptable to the Trustee or if the Trustee determines that such authentication may not
lawfully be made or if the Trustee reasonably determines that such authentication would be
prejudicial to the Holders of Outstanding Debt Securities.

               (e) Each Debt Security shall be dated the date of its authentication.

               (f) No Debt Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Debt Security a certificate of
authentication substantially in the form provided for herein duly executed by the Trustee by manual
signature of one of its authorized officers, and such certificate upon any Debt Security shall be
conclusive evidence, and the only evidence, that such Debt Security has been duly authenticated and
delivered hereunder and is entitled to the benefits of this Indenture.

               SECTION 304. Temporary Debt Securities.

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

               Except in the case of temporary Debt Securities in global form, which shall be exchanged in
accordance with the provisions thereof, if temporary Debt Securities of any series are issued, the
Company will cause definitive Debt Securities of such series to be prepared without unreasonable
delay. After the preparation of definitive Debt Securities of such series, the temporary Debt
Securities of such series shall be exchangeable for definitive Debt Securities of such series upon
surrender of the temporary Debt Securities of such series at the office or agency of the Company in
a Place of Payment for such series, without charge to the Holder. Upon surrender for cancellation
of any one or more temporary Debt Securities of any series, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive
Debt Securities of the same series of authorized denominations and of the same Stated Maturity.
Unless otherwise specified as contemplated by Section 301 with respect to temporary Debt Securities
in global form until so exchanged, the temporary Debt Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive Debt Securities of
such series.

               SECTION 305. Registration, Registration of Transfer and Exchange.

               The Company shall cause to be kept at one of its offices or agencies maintained pursuant to
Section 1002 a register (the register maintained in such office being herein

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sometimes referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Debt Securities
and of transfers of Debt Securities. Said office or agency is hereby appointed “Security
Registrar” for the purpose of registering Debt Securities and transfers of Debt Securities as
herein provided.

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

               Unless otherwise specified as contemplated by Section 301 with respect to Debt Securities in
global form at the option of the Holder, Debt Securities of any series may be exchanged for other
Debt Securities of the same series containing identical terms and provisions of any authorized
denomination or denominations, of like aggregate principal amount, upon surrender of the Debt
Securities to be exchanged at such office or agency. Whenever any Debt Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Debt Securities which the Holder making the exchange is entitled to receive.

               Notwithstanding the foregoing, unless otherwise specified as contemplated in Section 301, any
global Debt Security shall be exchangeable for definitive Debt Securities only if (i) the
depository is at any time unwilling, unable or ineligible to continue as depository and a successor
depository is not appointed by the Company within 60 days of the date the Company is so informed in
writing, (ii) the Company executes and delivers to the Trustee a Company Order to the effect that
such global Debt Security shall be so exchangeable, or (iii) an Event of Default has occurred and
is continuing with respect to the Debt Securities. If the beneficial owners of interests in a
global Debt Security are entitled to exchange such interests for definitive Debt Securities, then
without unnecessary delay but in any event not later than the earliest date on which such interests
may be so exchanged, the Company shall deliver to the Trustee definitive Debt Securities in such
form and denominations as are required by or pursuant to this Indenture, and of the same series,
containing identical terms and in aggregate principal amount equal to the principal amount of, such
global Debt Security, executed by the Company. On or after the earliest date on which such
interests may be so exchanged, such global Debt Security shall be surrendered from time to time by
the depository specified in the Company Order with respect thereto, and in accordance with
instructions given to the Trustee and such depository, as the case may be (which instructions shall
be in writing but need be contained in or accompanied by an Officers’ Certificate or be accompanied
by an Opinion of Counsel), as shall be specified in the Company Order with respect thereto to the
Trustee, as the Company’s agent for such purpose, to be exchanged, in whole or in part, for
definitive Debt Securities as described above without charge. The Trustee shall authenticate and
make available for delivery, in exchange for each portion of such surrendered global Debt Security,
a like aggregate principal amount of definitive Debt Securities of the same series of authorized
denominations and of like tenor as the portion of such global Debt Security to be exchanged;
provided, however, that no such exchanges may occur during a period beginning at
the opening of business 15 days before any selection of Debt Securities of the same series and
continuing identical terms to be redeemed and ending on the

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relevant Redemption Date. Promptly following any such exchange in part, such global Debt
Security shall be returned by the Trustee to such depository. If a Debt Security is issued in
exchange for any portion of a global Debt Security after the close of business at the office or
agency of the Company for such Debt Security where such exchange occurs on or after (i) any Regular
Record Date for such Debt Security and before the opening of business at such office or agency on
the next Interest Payment Date, or (ii) any Special Record Date for such Debt Security and before
the opening of business at such office or agency on the related proposed date for payment of
interest or Defaulted Interest, as the case may be, interest shall not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of such Debt Security,
but shall be payable on such Interest Payment Date or proposed date for payment, as the case may
be, only to the Person to whom interest in respect of such portion of such global Debt Security
shall be payable in accordance with the provisions of this Indenture.

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

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

               No service charge shall be made for any registration of transfer or exchange of Debt
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 transfer, registration of transfer
or exchange of Debt Securities, other than exchanges pursuant to Section 304, 907 or 1107 not
involving any transfer.

               Except as otherwise provided in or pursuant to this Indenture the Company shall not be
required (i) to issue, register the transfer of or exchange Debt Securities of any particular
series during a period beginning at the opening of business 15 days before the day of the mailing
of a notice of redemption of Debt Securities of such series selected for redemption under Section
1103 and ending at the close of business on the day of such mailing, (ii) to register the transfer
of or exchange any Debt Security called for redemption in whole or in part, except the unredeemed
portion of any Debt Security being redeemed in part, or (iii) to issue, register the transfer of or
exchange any Debt Security which has been surrendered for repayment at the option of the Holder
thereof, except the portion, if any, of such Debt Security not to be so repaid.

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

               If (i) any mutilated Debt Security is surrendered to the Trustee, or (ii) the Company and the
Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Debt
Security, and there is delivered to the Company and the Trustee such security or indemnity as may
be required by them to save each of them harmless, then, in the absence of notice to the Company or
the Trustee that such Debt Security has been acquired by a bona fide

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purchaser, the Company shall execute and upon its written request the Trustee shall
authenticate and deliver, in exchange for any such mutilated Debt Security or in lieu of any such
destroyed, lost or stolen Debt Security, a new Debt Security containing identical provisions and of
like principal amount bearing a number not contemporaneously outstanding.

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

               Upon the issuance of any new Debt 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 Debt Security of any series issued pursuant to this Section in lieu of any
destroyed, lost or stolen Debt Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Debt 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 Debt 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 Debt Securities.

               SECTION 307. Payment of Interest; Interest Rights Preserved.

               (a) Unless otherwise specified as contemplated by Section 301, interest on any Debt 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 Debt Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, except that in
the case of a Debt Security issued between a Regular Record Date and the initial Interest Payment
Date relating to such Regular Record Date, interest for the period beginning on the date of issue
and ending on such initial Interest Payment Date shall be paid to the person to whom such Debt
Security shall have been originally issued. Unless otherwise specified as contemplated by Section
301, at the option of the Company, payment of interest on any Debt Security may be made by check
mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register.

               Unless otherwise specified as contemplated by Section 301, any interest on any Debt 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
registered Holder on the relevant Regular Record Date by virtue of his 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 Debt Securities of such series (or their respective Predecessor Securities)
are registered at the close of business on a Special Record Date

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for the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Debt 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 Debt Securities of such series at his address
as it appears in the Security Register, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the
Persons in whose names the Debt 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 Debt Securities of
any series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Debt 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.

               (b) The provisions of this Section 307(b) may be made applicable to any series of Debt
Securities issued pursuant to Section 301 (with such modifications, additions or substitutions as
may be specified pursuant to such Section 301). The interest rate (or the spread and/or spread
multiplier used to calculate such interest rate, if applicable) on any Debt Security of such series
may be reset by the Company at its option on the date or dates specified in such Debt Security
(each, an “Optional Reset Date”). The Company may exercise such option with respect to any such
Debt Security by notifying the Trustee of such exercise at least 45 but not more than 60 calendar
days prior to an Optional Reset Date for such Debt Security. If the Company so notifies the
Trustee of such exercise, not later than 40 calendar days prior to such Optional Reset Date the
Trustee shall transmit, in the manner provided for in Section 106, to the Holder of such Debt
Security a notice (the “Reset Notice”) indicating (i) that the Company has elected to reset the
interest rate (or the spread and/or spread multiplier used to calculate such interest rate, if
applicable), (ii) such new interest rate (or such new spread and/or spread multiplier, if
applicable) and (iii) the provisions, if any, for redemption by the Company during the period from
such Optional Reset Date to the next Optional Reset Date or, if there is no such next Optional
Reset Date, to the Stated Principal Maturity of such Debt Security (each such period, a “Subsequent
Interest Period”), including the date or dates on which, or the period or

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periods during which, and the price or prices at which such redemption may occur during such
Subsequent Interest Period.

               Notwithstanding the foregoing, not later than 20 calendar days prior to the applicable
Optional Reset Date for a Debt Security, the Company may, at its option, revoke the interest rate
(or the spread and/or spread multiplier used to calculate such interest rate, if applicable)
provided for in the Reset Notice and establish an interest rate (or a spread and/or spread
multiplier used to calculate such interest rate, if applicable) that is higher than the interest
rate (or the spread and/or spread multiplier, if applicable) provided for in the Reset Notice, for
the Subsequent Interest Period by causing the Trustee to transmit, in the manner provided for in
Section 106, notice of such higher interest rate (or such higher spread and/or spread multiplier,
if applicable) to the Holder of such Debt Security. Such notice shall be irrevocable. All Debt
Securities with respect to which the interest rate (or the spread and/or spread multiplier used to
calculate such interest rate, if applicable) is reset on an Optional Reset Date, and with respect
to which the Holders of such Debt Securities have not surrendered such Debt Securities for
repayment (or have validly revoked any such surrender) pursuant to the next succeeding paragraph,
will bear such higher interest rate (or such higher spread and/or spread multiplier, if
applicable).

               If the provisions of Section 307(b) are made applicable to any Debt Security and the Company
notifies the Trustee of the exercise of its option to reset the interest rate (or the spread and/or
spread multiplier used to calculate such interest rate, if applicable) on such Debt Security on an
Optional Reset Date, the Holder of such Debt Security will have the option to elect repayment by
the Company of such Debt Security on such Optional Reset Date at a price equal to the principal
amount thereof plus any accrued interest to such Optional Reset Date. In order to obtain repayment
of such Debt Security on such Optional Reset Date, the Holder must follow the procedures set forth
in Section 1403 for repayment at the option of Holders, except that (i) the period for delivery of
such Debt Security or notification to the Trustee shall be at least 25 but not more than 35
calendar days prior to such Optional Reset Date and (ii) if the Holder has surrendered such Debt
Security for repayment following receipt of the Reset Notice, the Holder may revoke such surrender
for repayment by written notice to the Trustee received prior to 5:00 P.M., New York City time, on
the tenth calendar day prior to such Optional Reset Date.

               Subject to the foregoing provisions of this Section and Section 305, each Debt Security
delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of
any other Debt Security shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Debt Security.

               SECTION 308. Persons Deemed Owners.

               Prior to due presentment of a Debt 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 Debt
Security is registered as the owner of such Debt Security for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Sections 305 and 307) interest on such Debt
Security and for all other purposes whatsoever, whether or not such Debt 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.

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               No holder of any beneficial interest in any global Debt Security held on its behalf by a
depository shall have any rights under this Indenture with respect to such global Debt Security,
and such depository may be treated by the Company, the Trustee, and any agent of the Company or the
Trustee as the owner of such global Debt Security for all purposes whatsoever. None of the
Company, the Trustee nor any agent of the Company or the Trustee will have any responsibility or
liability for any aspect of the records relating to or payments made on account of beneficial
ownership interests of a global Debt Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

               SECTION 309. Cancellation.

               Unless otherwise provided with respect to a series of Debt Securities, all Debt Securities
surrendered for payment, redemption, repayment, 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 cancelled by it. The Company may at any time
deliver to the Trustee for cancellation any Debt Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and all Debt Securities so
delivered shall be promptly cancelled by the Trustee. No Debt Securities shall be authenticated in
lieu of or in exchange for any Debt Securities cancelled as provided in this Section, except as
expressly permitted by this Indenture. All cancelled Debt Securities held by the Trustee shall be
retained by the Trustee for such period as it may, in its sole discretion, determine, unless, by a
Company Order, the Company shall direct that the cancelled Debt Securities be returned to it.

               SECTION 310. Computation of Interest.

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

               SECTION 311. Payment in Currencies.

               (a) Payment of the principal of (and premium, if any) and interest on the Debt Securities of
any series shall be made in the currency or currencies specified pursuant to Section 301;
provided that in the case of Debt Securities of a series denominated in one or more Foreign
Currencies the Holder of a Debt Security of such series may elect to receive such payment in
Dollars if authorized pursuant to Section 301(12).

               A Holder may make such election by delivering to the Trustee a written notice thereof,
substantially in the form attached hereto as Exhibit A or in such other form as may be acceptable
to the Trustee, not later than the close of business on the Regular or Special Record Date
immediately preceding the applicable Interest Payment Date or the fifteenth day immediately
preceding the Maturity of an installment of principal, as the case may be. Such election shall
remain in effect with respect to such Holder until such Holder delivers to the Trustee a written
notice rescinding such election, provided that any such notice must be delivered to the
Trustee not later than the close of business on the Regular or Special Record Date immediately
preceding the next Interest Payment Date or the fifteenth day immediately

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preceding the Maturity of an installment of principal, as the case may be, in order to be
effective for the payment to be made thereon; and provided, further, that no such
rescission may be made with respect to payments to be made on any Debt Security with respect to
which notice of redemption has been given by the Company pursuant to Article Eleven or a notice of
option to elect repayment has been sent by a Holder or transferee pursuant to Article Fourteen.

               (b) If at least one Holder has made the election referred to in subsection (a) above to
receive payments in Dollars on a series of Debt Securities denominated in one or more Foreign
Currencies, then the Trustee shall deliver to the Company, not later than the fourth Business Day
after the Regular or Special Record Date with respect to an Interest Payment Date or the tenth day
immediately preceding the Maturity of an installment of principal, as the case may be, a written
notice specifying the amount of principal of (and premium, if any) and interest on such series of
Debt Securities to be paid in Dollars on such payment date.

               (c) Except as otherwise specified as contemplated by Section 301 hereof, if at least one
Holder has made the election referred to in subsection (a) above to receive payments in Dollars on
a series of Debt Securities denominated in one or more Foreign Currencies, then the amount
receivable by Holders of a series of Debt Securities who have elected payment in Dollars shall be
determined by the Company on the basis of the applicable Exchange Rate set forth in the applicable
Exchange Rate Officer’s Certificate. The Company shall deliver, not later than the eighth day
following each Regular or Special Record Date or the sixth day immediately preceding the Maturity
of an installment of principal, as the case may be, to the Trustee an Exchange Rate Officer’s
Certificate in respect of the payments to be made to such Holders on such payment date.

               (d) (i) If the Foreign Currency in which a series of Debt Securities is denominated is not
available to the Company for making payment thereof due to the imposition of exchange controls or
other circumstances beyond the control of the Company, then with respect to each date for the
payment of principal of (and premium, if any) and interest on such series of Debt Securities
occurring after the final date on which the Foreign Currency was so used, all payments with respect
to the Debt Securities of any such series shall be made in Dollars. If payment is to be made in
Dollars to the Holders of any such series of Debt Securities pursuant to the provisions of the
preceding sentence, then the amount to be paid in Dollars on a payment date by the Company to the
Trustee and by the Trustee or any Paying Agent to Holders shall be determined by an Exchange Rate
Agent and shall be equal to the sum obtained by converting the specified Foreign Currency into
Dollars at the applicable Exchange Rate, or if no rate is quoted for such Foreign Currency, the
last date such rate is quoted.

               (ii) If any composite currency in which a Debt Security is denominated or payable ceases to
be used for the purposes for which it was established or is not available due to circumstances
beyond the control of the Company, then with respect to each date for the payment of principal of
(and premium, if any) and interest on a series of Debt Securities denominated in such composite
currency (the “Conversion Date”) occurring after the last date on which the composite currency was
so used, all payments with respect to the Debt Securities of any such series shall be made in
Dollars. If payment with respect to Debt Securities of a series denominated in a composite
currency is to be made in Dollars pursuant to the provisions of the preceding sentence, then the
amount to be paid in Dollars on a payment date by the Company to

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the Trustee and by the Trustee or any Paying Agent to Holders shall be determined by an
Exchange Rate Agent and shall be equal to the sum of the amounts obtained by converting each
Component of such composite currency into Dollars at its respective Exchange Rate, multiplied by
the number of units of the composite currency that would have been so paid had the composite
currency not ceased to be so used.

               (e) All decisions and determinations of an Exchange Rate Agent regarding the Exchange Rate or
conversion of Foreign Currency (other than a composite currency) into Dollars pursuant to
subsection (d) (i) above or the conversion of a composite currency into Dollars pursuant to
subsection (d) (ii) shall, in the absence of manifest error, be conclusive for all purposes and
irrevocably binding upon the Company, the Trustee, any Paying Agent and all Holders of the Debt
Securities. If a Foreign Currency (other than a composite currency) in which payment of a series
of Debt Securities may be made, pursuant to subsection (a) above, is not available to the Company
for making payments thereof due to the imposition of exchange controls or other circumstances
beyond the control of the Company, the Company, after learning thereof, will give notice thereof to
the Trustee immediately (and the Trustee promptly thereafter will give notice to the Holders in the
manner provided in Section 106) specifying the last date on which the Foreign Currency was used for
the payment of principal of (and premium, if any) or interest on such series of Debt Securities.
In the event any composite currency in which a Debt Security is denominated or payable ceases to be
used for the purposes for which it was established or is not available due to circumstances beyond
the control of the Company, the Company, after learning thereof, will give notice thereof to the
Trustee immediately (and the Trustee promptly thereafter will give notice to the Holders in the
manner provided in Section 106). In the event of any subsequent change in any Component, the
Company, after learning thereof, will give notice to the Trustee similarly (and the Trustee
promptly thereafter will give notice to the Holders in the manner provided in Section 106). The
Trustee shall be fully justified and protected in relying and acting upon the information so
received by it from the Company and shall not otherwise have any duty or obligation to determine
such information independently.

               SECTION 312. Optional Extension of Stated Principal Maturity.

               The provisions of this Section 312 may be made applicable to any series of Debt Securities
issued pursuant to Section 301 (with such modifications, additions or substitutions as may be
specified pursuant to such Section 301). The Stated Principal Maturity of any Debt Security of
such series may be extended by the Company at its option for the period or periods specified in
such Debt Security (each such period, an “Extension Period”) up to but not beyond the date (the
“Final Maturity”) specified in such Debt Security. The Company may exercise such option with
respect to any such Debt Security by notifying the Trustee of such exercise at least 45 but not
more than 60 calendar days prior to the Stated Principal Maturity of such Debt Security then in
effect (the “Current Stated Principal Maturity”). If the Company so notifies the Trustee of such
exercise, not later than 40 calendar days prior to the Current Stated Principal Maturity the
Trustee shall transmit, in the manner provided for in Section 106, to the Holder of such Debt
Security a notice (the “Extension Notice”) indicating (i) that the Company has elected to extend
the Current Stated Principal Maturity, (ii) the new Stated Principal Maturity and the Final
Maturity, (iii) the interest rate (or the spread and/or spread multiplier used to calculate such
interest rate, if applicable) applicable to the Extension Period and (iv) the provisions, if any,
for redemption by the Company during such Extension Period, including the date or dates on which,

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or the period or periods during which, and the price or prices at which such redemption may
occur during such Extension Period. Upon the Trustee’s transmittal of the Extension Notice to the
Holder of such Debt Security, the Current Stated Principal Maturity of such Debt Security shall be
extended automatically and, except as modified by the Extension Notice and as described in the next
two paragraphs, such Debt Security will have the same terms as prior to the transmittal of such
Extension Notice.

               Notwithstanding the foregoing, not later than 20 calendar days prior to the Current Stated
Principal Maturity of such Debt Security, the Company may, at its option, revoke the interest rate
(or the spread and/or spread multiplier used to calculate such interest rate, if applicable)
provided for in the Extension Notice and establish an interest rate (or a spread and/or spread
multiplier used to calculate such interest rate, if applicable) that is higher than the interest
rate (or the spread and/or spread multiplier, if applicable) provided for in the Extension Notice
for the Extension Period by causing the Trustee to transmit, in the manner provided for in Section
106, notice of such higher interest rate (or such higher spread and/or spread multiplier, if
applicable) to the Holder of such Debt Security. Such notice shall be irrevocable. All Debt
Securities with respect to which the Current Stated Principal Maturity is extended, and with
respect to which the Holders of such Debt Securities have not surrendered such Debt Securities for
repayment (or have validly revoked any such surrender), will bear such higher interest rate (or
such higher spread and/or spread multiplier, if applicable).

               If the provisions of this Section 312 are made applicable to any Debt Security and the Company
notifies the Trustee of the exercise of its option to extend the Current Stated Principal Maturity
of such Debt Security, the Holder of such Debt Security will have the option to elect repayment of
such Debt Security by the Company on the Current Stated Principal Maturity at a price equal to the
principal amount thereof plus any accrued interest to the Current Stated Principal Maturity. In
order to obtain repayment of such Debt Security on the Current Stated Principal Maturity, the
Holder must follow the procedures set forth in Section 1403 for repayment at the option of Holders,
except that (i) the period for delivery of such Debt Security or notification to the Trustee shall
be at least 25 but not more than 35 calendar days prior to the Current Stated Principal Maturity
and (ii) if the Holder has surrendered such Debt Security for repayment following receipt of the
Extension Notice, the Holder may revoke such surrender for repayment prior to 5:00 P.M., New York
City time, on the tenth calendar day prior to the Current Stated Principal Maturity.

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ARTICLE FOUR

SATISFACTION AND DISCHARGE

               SECTION 401. Satisfaction and Discharge of Indenture.

               This Indenture shall upon a Company Request cease to be of further effect with respect to any
series of Debt Securities specified therein (except as to any surviving rights of registration of
transfer or exchange of Debt Securities of such series herein expressly provided for and rights to
receive payments of principal, premium and interest thereon) and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

               (1) either

          (A) all Debt Securities of such series theretofore authenticated and delivered
(other than (i) Debt Securities of such series which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 306 and (ii) Debt
Securities of such series for whose payment money in the Required Currency 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 Debt Securities of such series 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 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 irrevocably deposited
or caused to be deposited with the Trustee as trust funds in trust for the purpose
an amount in the Required Currency sufficient to pay and discharge the entire
indebtedness on such Debt Securities for principal (and premium, if any) and
interest to the date of such deposit (in the case of Debt Securities which become
due and payable) or to the Stated Maturity or Redemption Date, as the case may be;

         (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to the Outstanding Debt Securities of such series; and

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          (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 as to such series have been complied with.

               In the event that there are Debt Securities of two or more series hereunder, the Trustee shall
be required to execute an instrument acknowledging satisfaction and discharge of the Indenture only
if requested to do so with respect to the Debt Securities of such series as to which it is Trustee
and if the other conditions thereto are met.

               Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of
Debt Securities, the obligations of the Company pursuant to Section 115, the obligations of the
Company to the Trustee under Section 607 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 the 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 Debt 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.

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ARTICLE FIVE

REMEDIES

               SECTION 501. Events of Default.

               “Event of Default”, wherever used herein with respect to Debt Securities of any series, means
any one of the following events (whatever the reason for such Event of Default and whether it shall
be voluntary or involuntary or be effected by operation of law, pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body)
unless it is either inapplicable to a particular series or it is specifically deleted or modified
in the supplemental indenture under which such series of Debt Securities is issued or in the form
of Debt Security for such series:

          (1) the entry of a decree or order for relief in respect of the Company by a court
having jurisdiction in the premises in an involuntary case under the Federal bankruptcy
laws, as now or hereafter constituted, or appointing under any such law a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the
Company or of any substantial part of its property, or ordering under any such law the
winding up or liquidation of its affairs, and the continuance of any such decree or order
unstayed and in effect for a period of 90 consecutive days; or

          (2) the commencement by the Company of a voluntary case under the Federal bankruptcy
laws, as now or hereafter constituted, or the consent by it to the entry of an order for
relief in an involuntary case under any such law or to the appointment under any such law of
a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar
official) of the Company or of any substantial part of its property, or the making by it
under any such law of an assignment for the benefit of creditors, or the admission by it in
writing under any such law of its inability to pay its debts generally as they become due,
or the taking of any corporate action in furtherance of any of the foregoing; or

          (3) any other Event of Default provided, by means of an indenture supplemental hereto
or pursuant to Section 301, with respect to Debt Securities of that series.

               SECTION 502. Acceleration of Maturity; Rescission and Annulment.

               If an Event of Default with respect to Debt Securities of any series at the time Outstanding
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 Outstanding Debt Securities of such series may declare the
principal amount (or, if the Debt Securities of such series are Original Issue Discount Securities,
such portion of the principal amount as may be specified in the terms of such series) of all the
Debt Securities of such series to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable.

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               At any time after such a declaration of acceleration with respect to Debt 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 Debt Securities of such series, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its consequences if

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

          (A) all overdue installments of interest on all Debt Securities of such series,

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

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

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

          (2) all Events of Default with respect to Debt Securities of such series, other than
the non-payment of the principal of Debt Securities of such 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 installment of interest on any Debt 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
Debt Security at the Maturity thereof or otherwise,

the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of
such Debt Securities, the amount then due and payable on such Debt Securities for principal (and
premium, if any) and interest and, to the extent that payment of such interest shall be legally
enforceable, interest upon the overdue principal (and premium, if any) and upon overdue

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installments of interest, at the rate or rates prescribed therefor in such Debt Securities; and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

               If 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, and may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Company or any other obligor upon such Debt Securities 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 Debt Securities, wherever situated.

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

       (1) an Event of Default with respect to that series specified in Section 501; or

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

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

       (4) default in the deposit of any sinking fund payment when and as due by the terms of
a Debt Security of such series; or

       (5) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture or the Debt Securities (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 Debt
Securities of a series other than such 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 Debt Securities of such 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

       (6) the entry of a decree or order for relief in respect of the Company by a court
having jurisdiction in the premises in an involuntary case under the Federal bankruptcy
laws, as now or hereafter constituted, or any other Federal or State bankruptcy, insolvency
or other similar law, or appointing a receiver, liquidator, assignee, custodian, 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

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the continuance of any such decree or order unstayed and in effect for a period of 90
consecutive days; or

      (7) the commencement by the Company of a voluntary case under the Federal bankruptcy
laws, as now or hereafter constituted, or any other applicable Federal or State bankruptcy,
insolvency or other similar law, or the consent by it to the entry of an order for relief in
an involuntary case under any such law or to the appointment of a receiver, liquidator,
assignee, custodian, 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 any corporate action in furtherance of any of the
foregoing; or

      (8) any other Defaults provided, by means of an indenture supplemental hereto or
pursuant to Section 301, with respect to the Debt Securities of such series.

              If a Default with respect to Debt 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 Debt Securities of such series by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy.

              SECTION 504. Trustee May File Proofs of Claim.

               In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceedings, or any
voluntary or involuntary case under the Federal bankruptcy laws as now or hereafter constituted,
relative to the Company or any other obligor upon the Debt Securities of a particular series or the
property of the Company or such other obligor or their creditors, the Trustee (irrespective of
whether the principal of such Debt 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)
and interest owing and unpaid in respect of the Debt Securities of such series and to file
such other papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) 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 receiver, assignee, trustee, custodian, liquidator, sequestrator (or other similar
official) in any such proceeding is hereby authorized by each Holder (i) to make such payments to
the Trustee, and (ii) in the event that the Trustee shall consent to the making of such payments

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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 Debt 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 Debt
Securities.

               All rights of action and claims under this Indenture or the Debt Securities may be prosecuted
and enforced by the Trustee without the possession of any of the Debt 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, be for the ratable benefit of the Holders of the
Debt 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 (and premium, if any) or interest, upon presentation of the Debt 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;

       SECOND: To the payment of all Senior Indebtedness of the Company if and to the extent
required by Article Fifteen hereof;

       THIRD: To the payment of the amounts then due and unpaid for principal of (and
premium, if any) and interest on the Debt 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 Debt Securities for principal (and premium,
if any) and interest, respectively. The Holders of each series of Debt Securities
denominated in a Foreign Currency shall be entitled to receive a ratable portion of the
amount determined by an Exchange Rate Agent by converting the principal amount Outstanding
of such series of Debt Securities in the currency in which such series of Debt Securities is
denominated into Dollars at the Exchange Rate as of the date of declaration of acceleration
of the Maturity of the Debt Securities (or, if there is no such rate on such date for the
reasons specified in Section 311(d) of the Indenture, such rate on the date specified in
such Section); and

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

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               SECTION 507. Limitation on Suits.

               No Holder of any Debt 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
Default with respect to the Debt Securities of such series;

      (2) the Holders of not less than 25% in aggregate principal amount of the Outstanding
Debt Securities of such series shall have made written request to the Trustee to institute
proceedings in respect of such 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 at maturity of
the Outstanding Debt Securities of such 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 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 (if
any) and Interest.

               Notwithstanding any other provision in this Indenture, the Holder of any Debt 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 Debt Security on the respective
Stated Maturity or Maturities expressed in such Debt Security (or, in the case of redemption, on
the Redemption Date or, in the case of repayment, on the Repayment Date) and to institute suit for
the enforcement of any such payment, and such right 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 the
Company, the Trustee and the Holders shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and

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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 in 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 Debt Security to exercise any
right or remedy accruing upon any Default shall impair any such right or remedy or constitute a
waiver of any such 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 Debt 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 Debt Securities of such series, provided, that the Trustee shall have
the right to decline to follow any such direction

      (1) if the Trustee being advised by counsel shall determine that the action so directed
may not lawfully be taken, or if the Trustee in good faith shall, by a Responsible Officer
or Officers of the Trustee, determine that the proceedings would be illegal or in conflict
with this Indenture or involve it in personal liability; and

      (2) subject to the provisions of Section 601, if the Trustee in good faith shall, by a
Responsible Officer or Responsible Officers of the Trustee, determine that the proceeding so
directed would be unjustly prejudicial to the Holders of Debt Securities of such series not
joining in any such direction, and 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 Debt
Securities of any series may on behalf of the Holders of all the Debt Securities of any such series
waive any past default hereunder with respect to such series and its consequences, except a default

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

               (b) 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 Debt Security of such series
affected.

               Upon any such waiver, such default shall cease to exist, and any 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 Debt Security by his 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; but the provisions of this Section shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding more
than 10% in aggregate principal amount of the Outstanding Debt 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 Debt Security on or after the respective Stated Maturity or Maturities
expressed in such Debt Security (or, in the case of redemption or repayment, on or after the
related Redemption Date or Repayment Date, as the case may be).

               SECTION 515. Waiver of Stay or Extension Laws.

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

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ARTICLE SIX

THE TRUSTEE

               SECTION 601. Certain Duties and Responsibilities.

               (a) With respect to Debt Securities of any series, except during the continuance of an Event
of Default with respect to the Debt Securities of such series,

       (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

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

               (b) In case an Event of Default with respect to Debt Securities of any series has occurred and
is continuing, the Trustee shall, with respect to the Debt Securities of such series, exercise such
of the rights and powers vested in it by this Indenture, and use the same degree of care and skill
in their exercise, as a prudent person would exercise or use under the circumstances in the conduct
of his or her own affairs.

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

       (1) this Subsection shall not be construed to limit the effect of Subsection (a) of
this Section;

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

       (3) the Trustee shall not be liable with respect to any action taken, suffered or
omitted to be taken by it with respect to Debt Securities of any series in good faith in
accordance with the direction of the Holders of a majority in aggregate principal amount of
the Outstanding Debt Securities of such series relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Indenture.

               (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties

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hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

               (e) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

               SECTION 602. Notice of Defaults.

               Within 90 days after the occurrence of any default hereunder with respect to Debt Securities
of any series, the Trustee shall transmit by mail to all Holders of Debt 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 Debt Security of such series or in the payment of any sinking
fund installment with respect to Debt 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 Debt Securities of such
series. For the purpose of this Section, the term “default” means any event which is, or after
notice or lapse of time or both would become, an Default with respect to Debt Securities of such
series.

               SECTION 603. Certain Rights of Trustee.

               Subject to Sections 315(a) through (d) of the Trust Indenture Act:

               (a) the Trustee may exclusively rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note 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 and any resolution of the Board of Directors shall 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 of its selection and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

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               (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 of Debt Securities pursuant
to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity
reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred
by it in compliance with such request or direction;

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

               (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 charged with knowledge of any Event of Default with respect to
the Debt Securities of any series for which it is acting as Trustee unless either (1) a Responsible
Officer of the Trustee shall have actual knowledge of the Event of Default or (2) written notice of
such Event of Default shall have been given to the Trustee by the Company or any other obligor on
such Debt Securities or by any Holder of such Debt Securities;

               (i) 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 or rights or powers conferred
upon it by this Indenture;

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

               (k) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action; and

               (l) the Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

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

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

               SECTION 605. May Hold Debt Securities.

               The Trustee, any Paying Agent, the Security Registrar or any other agent of the Company, in
its individual or any other capacity, may become the owner or pledgee of Debt Securities, and,
subject to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, 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 such compensation as agreed in writing by
the Company and the Trustee 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) 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 those incurred in connection with any application to the
Commission for a stay pursuant to Section 310(b) of the Trust Indenture Act (whether or not
granted) and the reasonable compensation and the reasonable 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 or any predecessor Trustee and their agents for, and to
hold them harmless against, any loss, damage, claims, liability or expense (including
attorneys’ fees and expenses) incurred without negligence or bad faith on its part, arising
out of or in connection with the acceptance or administration of this trust or performance
of its duties hereunder, including the costs and expenses of defending itself against any
claim (whether asserted by the Company, or any Holder or any other Person) or liability in
connection with the exercise or performance of any of its powers or duties hereunder or in
connection with enforcing the provisions of this Section.

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               As security for the performance of the obligations of the Company under this Section the
Trustee shall have a claim prior to the Debt 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 Debt Securities.

               SECTION 608. Corporate Trustee Required; Eligibility.

               There shall at all times be a Trustee hereunder that is a corporation eligible to act as such
pursuant to the terms of the Trust Indenture Act and that has a combined capital and surplus of at
least $50,000,000, subject to supervision or examination by Federal or State authority. If such
corporation publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published. If at any
time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified in this Article.

               SECTION 609. 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 under Section 610.

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

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

               (d) If at any time:

      (1) the Trustee shall fail to comply with the obligations imposed upon it under Section
310(b) of the Trust Indenture Act with respect to the Debt Securities of any series after
written request therefor by the Company or by any Holder who has been a bona fide Holder of
a Debt Security of such series for at least six months, or

      (2) the Trustee shall cease to be eligible under Section 608 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 a decree or order for relief by a
court having jurisdiction in the premises shall have been entered in respect of the Trustee
in an involuntary case under the Federal bankruptcy laws, as now or hereafter

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constituted, or any other applicable Federal or State bankruptcy, insolvency or similar
law; or a decree or order by a court having jurisdiction in the premises shall have been
entered for the appointment of a receiver, custodian, liquidator, assignee, trustee,
seques-trator (or other similar official) of the Trustee or of its property or affairs, or
any public officer shall take charge or control of the Trustee or of its property or affairs
for the purpose of rehabilitation, conservation, winding up or liquidation; or

      (4) the Trustee shall commence a voluntary case under the Federal bankruptcy laws, as
now or hereafter constituted, or any other applicable Federal or State bankruptcy,
insolvency or similar law or shall consent to the appointment of or taking possession by a
receiver, custodian, liquidator, assignee, trustee, sequestrator (or other similar official)
of the Trustee or its property or affairs, or shall make an assignment for the benefit of
creditors, or shall admit in writing its inability to pay its debts generally as they become
due, or shall take corporate action in furtherance of any such action,

then, in any such case, (i) the Company, by a Board Resolution, may remove the Trustee with respect
to all Debt Securities or the Debt Securities of such series, or (ii) subject to Section 315(e) of
the Trust Indenture Act, any Holder who has been a bona fide Holder of a Debt Security of any
series 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 for the Debt Securities
of such series and the appointment of a successor Trustee.

               (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 Debt Securities of one or
more series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor
Trustee or Trustees with respect to the Debt Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the Debt 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 Debt Securities of any particular series) and shall comply with the applicable requirements
of Section 610. If, within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Debt Securities of any series
shall be appointed by Act of the Holders of a majority in aggregate principal amount of the
Outstanding Debt 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, become the
successor Trustee with respect to the Debt Securities of such series and to that extent supersede
the successor Trustee appointed by the Company if no successor Trustee with respect to the Debt
Securities of any series shall have been so appointed by the Company or the Holders and accepted
appointment in the manner hereinafter provided, any Holder who has been a bona fide Holder of a
Debt 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 Debt Securities of such series.

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

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successor Trustee with respect to the Debt Securities of such series and the address of its
Corporate Trust Office.

               SECTION 610. Acceptance of Appointment by Successor.

               (a) In the case of an appointment hereunder of a successor Trustee with respect to all Debt
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 request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee,
and shall duly assign, transfer and deliver to such successor Trustee all property and money held
by such retiring Trustee hereunder, subject to its lien, if any, provided for in Section 607.

               (b) In case of the appointment hereunder of a successor Trustee with respect to the Debt
Securities of one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Debt 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 Debt 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 Debt 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 Debt 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 Debt 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 Debt Securities
of that or those series to which the appointment of such successor Trustee relates.

               (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) or (b) of this Section, as the case may
be.

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               (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 611. 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 of 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 Debt 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 Debt Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such Debt Securities. In case
any Debt Securities shall not have been authenticated by such predecessor Trustee, any such
successor Trustee, by merger, conversion or consolidation, may authenticate and deliver such Debt
Securities, in either its own name or that of its predecessor Trustee, with the full force and
effect which this Indenture provides for the certificate of authentication of the Trustee.

               SECTION 612. Preferential Collection of Claims.

               If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Debt Securities), the Trustee shall be subject to the provisions of the Trust Indenture
Act regarding the collection of claims against the Company (or any such other obligor).

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ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

               In accordance with Section 312(a) of the Trust Indenture Act, the Company will furnish or
cause to be furnished to the Trustee with respect to Debt Securities of each series for which it
acts as Trustee:

               (a) semiannually, not more than 15 days after the Regular Record Date in respect of the Debt
Securities of such series or on June 30 and December 31 of each year with respect to each series of
Debt Securities for which there are no Regular Record Dates, a list, in such form as the Trustee
may reasonably require, of the names and addresses of the Holders as of such Regular Record Date or
June 15 or December 15, as the case may be, and

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

provided, however, that if and so long as the Trustee shall be the Security
Registrar for Debt Securities of a series, no such list need be furnished with respect to such
series of Debt Securities.

               SECTION 702. Preservation of Information; Communications to Holders.

               (a) The Trustee shall comply with the obligations imposed upon it pursuant to Section 312 of
the Trust Indenture Act.

               (b) Every Holder of Debt Securities, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company nor the Trustee 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 312 of the Trust Indenture Act, 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 312(b) of the Trust Indenture Act.

               SECTION 703. Reports by Trustee.

               (a) Within 120 days after December 31 of each year commencing with the first December 31 after
the first issuance of Debt Securities pursuant to this Indenture the Trustee shall transmit to the
Holders of Debt Securities, in the manner and to the extent provided in Section 313(c) of the Trust
Indenture Act, a brief report based as of such December 31, if required by Section 313(a) of the
Trust Indenture Act. The Trustee also shall comply with Section 313(b) of the Trust Indenture Act
and shall transmit to Holders such other reports, if any, as may be required pursuant to the Trust
Indenture Act.

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               (b) Reports pursuant to this Section shall be transmitted in the manner and to the Persons
required by Sections 313(c) and 313(d) of the Trust Indenture Act.

               (c) 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 Debt Securities of such series are listed, with
the Commission and also with the Company. The Company will notify the Trustee when any series of
Debt Securities is listed on any stock exchange and of any delisting thereof.

               SECTION 704. Reports by Company.

       The Company, pursuant to Section 314(a) of the Trust Indenture Act, will:

      (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 will 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; and

      (3) transmit by mail to all Holders, as their names and addressees appear in the
Security Register, within 30 days after the filing thereof with the Trustee, in the manner
and to the extent provided in Section 313(c) of the Trust Indenture Act, 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.

               Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

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ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

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

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

      (1) the corporation formed by such consolidation or into which the Company is merged or
the Person which acquires by conveyance or transfer the properties and assets of the Company
substantially as an entirety shall be a corporation organized and existing under the laws of
the United States of America, any political subdivision thereof or any State thereof 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 Debt Securities and the performance of
every covenant of this Indenture on the part of the Company to be performed or observed;

      (2) immediately after giving effect to such transaction, 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 or transfer and such
supplemental indenture comply with this Article and that all conditions precedent herein
provided for relating to such transaction have been complied with.

               SECTION 802. Successor Corporation Substituted.

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

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ARTICLE NINE

SUPPLEMENTAL INDENTURES

               SECTION 901. Supplemental Indentures without Consent of Holders.

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

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

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

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

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

      (5) to change or eliminate any of the provisions of this Indenture, provided
that any such change or elimination shall either (i) become effective only when there is no
Debt Security Outstanding of any series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision or (ii) shall neither (A) apply
to any Debt 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 Debt Security with respect to such provision; or

      (6) to establish the form or terms of Debt Securities of any series as permitted by
Sections 202 and 301; or

      (7) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Debt 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 610; or

      (8) to secure the Debt Securities; or

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

      (10) to modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the Trust Indenture
Act or under any similar federal statute hereafter enacted and to add to this Indenture such
other provisions as may be expressly required under the Trust Indenture Act.

               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 Debt 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 under this Indenture of
such Debt Securities; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Debt Security affected thereby,

               (1) change the Stated Principal Maturity (except as permitted pursuant to Section 312
hereof) of the principal of, or change the Stated Maturity of any installment of interest
on, any Debt Security, or reduce the principal amount thereof or, except as permitted
pursuant to Section 307(b) hereof, the interest thereon or any premium payable upon
redemption or repayment 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 adversely affect any right of repayment at the
option of a Holder of any Debt Security, or reduce the amount of, or postpone the date fixed
for, any payment under any sinking fund or analogous provisions of any Debt Security, or
change any Place of Payment, or the coin or currency or currency unit in which any Debt
Security or the interest thereon is payable, or change or eliminate the rights of a Holder
under Section 311, 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 the Repayment Date, as the case may be), or

               (2) reduce the percentage in aggregate principal amount of the Outstanding Debt
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

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       (3) make any change relating to the subordination of the Debt Securities in a manner
adverse to the Holders of such Debt Securities; or

       (4) modify any of the provisions of this Section or Section 513, 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 Debt Security
affected thereby.

               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.

               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 Debt Securities, or which modifies the rights of the Holders of Debt 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 Debt Securities of any other series.

               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 315 of the Trust Indenture Act) 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 Debt Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

       SECTION 905. Notice to Holders.

       Promptly after the execution by the Company and the Trustee of any supplemental indenture
under Section 902 of this Article, the Company shall transmit by mail a notice, setting forth in
general terms the substance of such supplemental indenture, to all Holders of Debt Securities, as
the names and addresses of such Holders appear on the Security Register for each series of Debt
Securities.

       SECTION 906. Conformity with Trust Indenture Act.

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

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               SECTION 907. Reference in Debt Securities to Supplemental Indentures.

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

               SECTION 908. Subordination Unimpaired.

               This Indenture may not be amended to alter the subordination of any of the Outstanding Debt
Securities without the written consent of each holder of Senior Indebtedness then outstanding that
would be adversely affected thereby.

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ARTICLE TEN

COVENANTS

               SECTION 1001. Payment of Principal, Premium and Interest.

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

               SECTION 1002. Maintenance of Office or Agency.

               The Company will maintain in each Place of Payment for any series of Debt Securities an office
or agency where Debt Securities may be presented or surrendered for payment, where Debt Securities
may be surrendered for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Debt Securities 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 the agent to receive all presentations, surrenders,
notices and demands.

               The Company may also from time to time designate one or more other offices or agencies (in or
outside of such Place of Payment) where the Debt Securities of one or more series may be presented
or surrendered for any or all of 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 any series of Debt Securities, for such purposes. The Company will give prompt written
notice to the Trustee of any such designation and any change in the location of any such other
office or agency.

               Unless otherwise set forth in, or pursuant to, a Board Resolution or indenture supplemental
hereto with respect to a series of Debt Securities, the Company hereby initially designates as the
Place of Payment for each series of Debt Securities, the Borough of Manhattan, The City and State
of New York, and initially appoints the Trustee at its Corporate Trust Office as the Company’s
office or agency for each such purpose in such city.

               SECTION 1003. Money for Debt 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
Debt Securities, it will, on or before each due date of the principal of (and premium, if any) or
interest on any of the Debt Securities of such series, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided, and will promptly notify the Trustee of its action or failure so to act.

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

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

      (1) hold all sums held by it for the payment of the principal of (and premium, if any)
or interest on Debt Securities of such 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 Debt Securities of such series) in the making of any payment of principal of (and
premium, if any) or interest on the Debt Securities of such 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.

               Unless otherwise specified as contemplated by Section 301, 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 Debt 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 Debt 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 and State of New
York, and each Place of Payment with respect to Debt

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Securities of the series with respect to which such moneys are so held or cause to be mailed
to each such Holder, or both, 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 or
mailing, any unclaimed balance of such money then remaining will be repaid to the Company.

               SECTION 1004. Investment Company Act.

               The Company will not take any action if as a result thereof it would be required to register
as an investment company under the Investment Company Act of 1940, as amended.

               SECTION 1005. Officers’ Certificate as to Default.

               The Company will deliver to the Trustee, on or before a date not more than four months after
the end of its fiscal year ending after the date hereof, an Officers’ Certificate from its
principal executive officer, principal financial officer or principal accounting officer, stating
whether or not to the best knowledge of the signer thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided hereunder), and, if the
Company shall be in default, specifying all such defaults and the nature thereof of which the
signer of such Officers’ Certificate may have knowledge.

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ARTICLE ELEVEN

REDEMPTION OF DEBT SECURITIES

          SECTION 1101. Applicability of Article.

          Debt 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 Debt 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 Debt Securities shall be evidenced by a Board
Resolution. In case of any redemption at the election of the Company of less than all of the Debt
Securities of any series, the Company shall, at least 60 days prior to the Redemption Date fixed by
the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Debt Securities of such series to be redeemed.
In the case of any redemption of Debt Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Debt 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 Debt Securities to Be Redeemed.

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

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

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Debt Securities shall relate, in the case of any Debt Security
redeemed or to be redeemed only in part, to the portion of the principal amount of such Debt
Security 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
15 nor more than 30 days prior to the Redemption Date, to each Holder of Debt Securities to be
redeemed, at his address appearing in the Security Register.

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          All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

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

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

          (5) the Place or Places of Payment where such Debt Securities are to be surrendered for
payment of the Redemption Price,

          (6) that the redemption is in connection with a sinking fund, if such is the case, and

          (7) if applicable, the CUSIP number for such Debt Security.

          Notice of redemption of Debt 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 the currency in which the Debt Securities of such
series are payable (except as otherwise specified pursuant to Section 301 for the Debt Securities
of such series and except, if applicable, as provided in Section 311) sufficient to pay the
Redemption Price of, and (unless otherwise specified pursuant to Section 301 for the Debt
Securities of such series and the Redemption Date is an Interest Payment Date) accrued interest on,
all the Debt Securities or portion thereof, as the case may be, which are to be redeemed on that
date.

          SECTION 1106. Debt Securities Payable on Redemption Date.

          Notice of redemption having been given as aforesaid, the Debt Securities so to be redeemed
shall become due and payable and shall be paid by the Company on the Redemption Date and at the
Redemption Price therein specified and on and after such Redemption Date (unless the Company shall
default in the payment of the Redemption Price and any accrued interest in respect of such Debt
Securities on such Redemption Date) such Debt Securities shall, if the same were interest bearing,
cease to bear interest. Upon surrender of any such Debt Security for redemption in accordance with
said notice, the Redemption Price of such Debt Security so to be repaid shall be paid by the
Company, together with accrued interest, if any, to

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the Redemption Date; provided, however, that installments of interest, if any,
on an Interest Payment Date that is prior to the Redemption Date (or, if specified pursuant to
Section 301, that is on the Redemption Date) shall be payable (but without interest thereon, unless
the Company shall default in payment thereof) to the Holder of such Debt Security, or one or more
Predecessor Securities, registered as such at 5:00 P.M., New York City time, on the relevant Record
Date according to its or their terms and the provisions of Section 307.

          If any Debt Security called for redemption shall not be so paid upon surrender thereof, the
Redemption Price shall, until paid, bear interest from the Redemption Date at the rate of interest
(or the manner of calculating the rate of interest) applicable to such Debt Security on the day
prior to the Redemption Date or, in the case of an Original Issue Discount Security, at the yield
to maturity of such Original Issue Discount Security.

          SECTION 1107. Debt Securities Redeemed in Part.

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

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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
Debt Securities of a series except as otherwise specified as contemplated by Section 301 for Debt
Securities of such series.

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

          SECTION 1202. Satisfaction of Sinking Fund Payments with Debt Securities.

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

          Not less than 60 days prior to each sinking fund payment date for any series of Debt
Securities (unless a shorter period shall be satisfactory to the Trustee), the Company will deliver
to the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion thereof, if any, which is
to be satisfied by payment of cash, the portion thereof, if any, which is to be satisfied by
crediting Debt Securities of that series pursuant to Section 1202 and, prior to or concurrently
with the delivery of such Officers’ Certificate, will also deliver to the Trustee any Debt
Securities to be so credited and not theretofore delivered to the Trustee. Not less than 45 days
(unless a shorter period shall be satisfactory to the Trustee) before each such sinking fund
payment date the Trustee shall select the Debt 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

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1104. Such notice having been duly given, the redemption of such Debt Securities shall be
made upon the terms and in the manner stated in Sections 1105, 1106 and 1107.

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ARTICLE THIRTEEN

DEFEASANCE

          SECTION 1301. Applicability of Article.

          If, pursuant to Section 301, provision is made for the defeasance of Debt Securities of a
series, then the provisions of this Article shall be applicable except as otherwise specified as
contemplated by Section 301 for Debt Securities of such series.

          SECTION 1302. Defeasance Upon Deposit of Moneys or U.S. Government
Obligations.

          At the Company’s option, either (a) the Company shall be deemed to have been Discharged (as
defined below) from its obligations with respect to Debt Securities of any series on the 91st day
after the applicable conditions set forth below have been satisfied or (b) the Company shall cease
to be under any obligation to comply with any term, provision or condition set forth in Section
801, with respect to Debt Securities of any series at any time after the applicable conditions set
forth below have been satisfied:

     (1) the Company shall have deposited or caused to be deposited irrevocably with the
Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of the Debt Securities of such series (i) money in the
Required Currency in an amount, or (ii) in the case of Debt Securities denominated in
Dollars, U.S. Government Obligations (as defined below), which through the payment of
interest and principal in respect thereof in accordance with their terms will provide
(without any reinvestment of such interest or principal), not later than one day before the
due date of any payment, money in an amount, or (iii) a combination of (i) and (ii)
sufficient, in the opinion (with respect to (ii) and (iii) of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to
the Trustee at or prior to the time of such deposit, to pay and discharge each
installment-of principal (including any mandatory sinking fund Payments) of, and premium, if
any, and interest on, the Outstanding Debt Securities of such series on the dates such
installments of interest, premium or principal are due;

     (2) the Company shall have delivered to the Trustee an Officers’ Certificate certifying
as to whether the Debt Securities of such series are then listed on the New York Stock
Exchange;

     (3) if the Debt Securities of such series are then listed on the New York Stock
Exchange, the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Company’s exercise of its option under this Section would not cause such
Debt Securities to be delisted;

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

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deposit as evidenced to the Trustee in an Officers’ Certificate delivered to the
Trustee concurrently with such deposit;

     (5) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that (and containing no assumption or qualification) (i) Holders of the Debt Securities of
such series will not recognize income, gain or loss for Federal income tax purposes as a
result of the Company’s exercise of its option under this Section and will be subject to
Federal income tax on the same amount and in the same manner and at the same time as would
have been the case if such option had not been exercised, and, in the case of the Debt
Securities of such series being Discharged, accompanied by a ruling to that effect received
from or published by the Internal Revenue Service (it being understood that (A) such Opinion
shall also state that such ruling is consistent with the conclusions reached in such Opinion
and (B) the Trustee shall be under no obligation to investigate the basis or correctness of
such ruling) and (ii) all conditions precedent to the Discharge pursuant to this Section
have been complied with;

     (6) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Company’s exercise of its option under this provision will not cause any violation
of the Investment Company Act of 1940, as amended, on the part of the Company, the trust,
the trust funds representing the Company’s deposit or the Trustee; and

     (7) the Company shall have paid or duly provided for payment of all amounts then due to
the Trustee pursuant to Section 607.

          “Discharged” means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by, and obligations under, the Debt Securities of such series and to have
satisfied all the obligations under this Indenture relating to the Debt Securities of such series
(and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the
same), except (A) the rights of Holders of Debt Securities of such series to receive, from the
trust fund described in clause (1) above, payment of the principal of, and premium, if any, and the
interest on such Debt Securities when such payments are due, (B) the Company’s obligations with
respect to the Debt Securities of such series under Sections 305, 306, 1002 and 1303 and (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder, including without
limitation, the provisions of Section 607.

          “U.S. Government Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or instrumentality of the United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case under clauses (i) or (ii) are not
callable or redeemable at the option of the issuer thereof.

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          SECTION 1303. Deposited Moneys and U.S. Government Obligations To Be Held in
Trust.

          All moneys and U.S. Government Obligations deposited with the Trustee pursuant to Section 1302
in respect of Debt Securities of a series shall be held in trust and applied by it, in accordance
with the provisions of such Debt Securities and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as it own Paying Agent) as the Trustee may
determine, to the Holders of such Debt Securities, of all sums due and to become due thereon for
principal, premium, if any, and interest, if any, but such money need not be segregated from other
funds except to the extent required by law.

          SECTION 1304. Repayment to Company.

          The Trustee and any Paying Agent shall promptly pay or return to the Company upon Company
Request any money and U.S. Government Obligations held by them at any time that are not required
for the payment of the principal of, and premium, if any, and interest on, the Debt Securities of
any series for which money or U.S. Government Obligations have been deposited pursuant to Section
1302.

          The provisions of the last paragraph of Section 1003 shall apply to any money held by the
Trustee or any Paying Agent under this Article that remains unclaimed for two years after the
Maturity of any series of Debt Securities for which money or U.S. Government Obligations have been
deposited pursuant to Section 1302.

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ARTICLE FOURTEEN

REPAYMENT AT THE OPTION OF HOLDERS

          SECTION 1401. Applicability of Article.

          Repayment of Debt Securities of any series before their Stated Maturity at the option of
Holders thereof shall be made in accordance with the terms of such Debt Securities and (except as
otherwise specified by the terms of such series established pursuant to Section 301) in accordance
with this Article Fourteen.

          SECTION 1402. Repayment of Debt Securities.

          Debt Securities of any series subject to repayment in whole or in part at the option of the
Holders thereof will, unless otherwise provided in the terms of such Debt Securities, be repaid at
the Repayment Price thereof, together with interest, if any, thereon accrued to the Repayment Date
specified in or pursuant to the terms of such Debt Securities. On or prior to the Repayment 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 the currency in which the Debt Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Debt Securities of such series and except, if applicable,
as provided in Section 311) sufficient to pay the Repayment Price of and (unless otherwise
specified pursuant to Section 301 for the Debt Securities of such series and the Repayment Date is
an Interest Payment Date) accrued interest on, all the Debt Securities or portions thereof, as the
case may be, to be repaid on such date.

          SECTION 1403. Exercise of Option.

          Debt Securities of any series subject to repayment at the option of the Holders thereof will
contain an “Option to Elect Repayment” form. In order to be repaid at the option of the Holder,
any Debt Security so providing for such repayment, together with the “Option to Elect Repayment”
form duly completed by the Holder (or by the Holder’s attorney duly authorized in writing), must be
received by or on behalf of the Company at the Place of Payment therefor specified in the terms of
such Debt Security (or at such other place or places of which the Company shall from time to time
notify the Holders of such Debt Securities) not more than 60 nor less than 30 calendar days prior
to the Repayment Date. If less than the entire principal amount of such Debt Security is to be
repaid in accordance with the terms of such Debt Security, the portion of such Debt Security to be
repaid, in increments of the minimum denomination for Debt Securities of such series, and the
denomination or denominations of the Debt Security or Debt Securities to be issued to the Holder
for the portion of such Debt Security surrendered that is not to be repaid, must be specified. Any
Debt Security providing for repayment at the option of the Holder thereof may not be repaid in part
if, following such repayment, the unpaid principal amount of such Debt Security would be less than
the minimum denomination of Debt Securities of the series of which such Debt Security to be repaid
is a part. Except as may be otherwise provided in any Debt Security providing for repayment at the
option of the Holder thereof, exercise of the repayment option by the Holder shall be irrevocable
unless waived by the Company.

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          SECTION 1404. When Debt Securities Surrendered for Repayment Become Due and Payable.

          If Debt Securities of any series providing for repayment at the option of the Holders thereof
shall have been surrendered as provided in this Article Fourteen and as provided by or pursuant to
the terms of such Debt Securities, such Debt Securities or the portions thereof, as the case may
be, to be repaid shall become due and payable and shall be paid by the Company on the Repayment
Date therein specified, and on and after such Repayment Date (unless the Company shall default in
the payment of the Repayment Price and any accrued interest in respect of such Debt Securities on
such Repayment Date) such Debt Securities shall, if the same were interest bearing, cease to bear
interest. Upon surrender of any such Debt Security for repayment in accordance with such
provisions, the Repayment Price of such Debt Security so to be repaid shall be paid by the Company,
together with accrued interest, if any, to the Repayment Date; provided, however,
that installments of interest, if any, on an Interest Payment Date that is prior to the Repayment
Date (or, if specified pursuant to Section 301, that is on the Repayment Date) shall be payable
(but without interest thereon, unless the Company shall default in the payment thereof) to the
Holder of such Debt Security, or one or more Predecessor Securities, registered as such at 5:00
P.M., New York City time, on the relevant Regular Record Date according to its or their terms and
the provisions of Section 307.

          If any Debt Security surrendered for repayment shall not be so repaid upon surrender thereof,
the Repayment Price shall, until paid, bear interest from the Repayment Date at the rate of
interest (or manner of calculating the rate of interest) applicable to such Debt Security on the
day prior to the Repayment Date or, in the case of an Original Issue Discount Security, at the
yield to maturity of such Original Issue Discount Security.

          SECTION 1405. Debt Securities Repaid in Part.

          Upon surrender of any Debt Security which is to be repaid in part only, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such Debt Security, without
service charge and at the expense of the Company, a new Debt Security or Debt Securities of the
same series, of any authorized denomination specified by the Holder, in an aggregate principal
amount equal to and in exchange for the portion of the principal of such Debt Security so
surrendered which is not to be repaid.

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ARTICLE FIFTEEN

SUBORDINATION OF DEBT SECURITIES

          SECTION 1501. Agreement to Subordinate.

          The Company covenants and agrees, and each holder of Debt Securities issued hereunder and
under any supplemental indenture or by any resolutions by the Board of Directors of the Company
(“Additional Provisions”) by such Holder’s acceptance thereof likewise covenants and agrees, that
all Debt Securities shall be issued subject to the provisions of this Article Fifteen; and each
holder of a Debt Security, whether upon original issue or upon transfer or assignment thereof,
accepts and agrees to be bound by such provisions.

          The payment by the Company of the principal of, premium, if any, and interest on all Debt
Securities shall, to the extent and in the manner hereinafter set forth, be subordinated and junior
in right of payment to the prior payment in full of all Senior Indebtedness of the Company whether
outstanding at the date of this Indenture or thereafter incurred.

          No provision of this Article Fifteen shall prevent the occurrence of any Default or Event of
Default hereunder.

          SECTION 1502. Default on Senior Indebtedness.

          No payment may be made of the principal of, premium, if any, or interest on the Debt
Securities, or in respect of any redemption, retirement, purchase or other acquisition of any of
the Debt Securities, at any time when (i) there is a default in the payment of the principal of,
premium, if any, interest on or otherwise in respect of any Senior Indebtedness, whether at
maturity or at a date fixed for prepayment or by declaration or otherwise, or (ii) any event of
default with respect to any Senior Indebtedness has occurred and is continuing, or would occur as a
result of such payment on the Debt Securities or any redemption, retirement, purchase or other
acquisition of any of the Debt Securities, permitting the holders of such Senior Indebtedness (or a
trustee on behalf of the holders thereof) to accelerate the maturity thereof.

          In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee
when such payment is prohibited by the preceding paragraph of this Section 1502, such payment shall
be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior
Indebtedness or their representatives, or to the trustee or trustees under any indenture pursuant
to which any of such Senior Indebtedness may have been issued, as their interests may appear, but
only to the extent that the holders of the Senior Indebtedness (or their representative or
representatives or a trustee) notify the Trustee in writing within 90 days of such payment of the
amounts then due and owing on the Senior Indebtedness and only the amounts specified in such notice
to the Trustee shall be paid to the holders of Senior Indebtedness.

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          SECTION 1503. Liquidation; Dissolution; Bankruptcy.

          Upon any payment by the Company or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any dissolution, winding-up,
liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy,
insolvency, receivership or other proceedings, all amounts due upon all Senior Indebtedness of the
Company shall first be paid in full, or payment thereof provided for in money in accordance with
their terms, before any payment is made by the Company on account of the principal (and premium, if
any) or interest on the Debt Securities; and upon any such dissolution or winding-up or liquidation
or reorganization, any payment by the Company, or distribution of assets of the Company of any kind
or character, whether in cash, property or securities, to which the Holders or the Trustee would be
entitled to receive from the Company, except under the provisions of this Article Fifteen, shall be
paid by the Company, or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other
Person making such payment or distribution, or by the Holders or by the Trustee under the Indenture
if received by them or it, directly to the holders of Senior Indebtedness of the Company (pro rata
to such holders on the basis of the amounts of Senior Indebtedness held by such holders, as
calculated by the Company) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent necessary to pay such
Senior Indebtedness in full, in money or money’s worth, after giving effect to any concurrent
payment or distribution to or for the holders of such Senior Indebtedness, before any payment or
distribution is made to the Holders or to the Trustee.

          In the event that, notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, prohibited by the
foregoing, shall be received by the Trustee before all Senior Indebtedness of the Company is paid
in full, or provision is made for such payment in money in accordance with its terms, such payment
or distribution shall be held in trust for the benefit of and shall be paid over or delivered to
the holders of such Senior Indebtedness or their representative or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments evidencing such Senior
Indebtedness may have been issued, and their respective interests may appear, as calculated by the
Company, for application to the payment of all Senior Indebtedness of the Company remaining unpaid
to the extent necessary to pay such Senior Indebtedness in full in money in accordance with its
terms, after giving effect to any concurrent payment or distribution to or for the benefit of the
holders of such Senior Indebtedness.

          For purposes of this Article Fifteen, the words “cash, property or securities” shall not be
deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article Fifteen with
respect to the Debt Securities to the payment of all Senior Indebtedness of the Company that may at
the time be outstanding, provided that (i) such Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment, and (ii) the rights of
the holders of such Senior Indebtedness are not, without the consent of such holders, altered by
such reorganization or readjustment. The consolidation of the Company with, or the merger of the
Company into, another corporation or the liquidation or dissolution of the Company following the
conveyance or transfer of its property as an entirety, or substantially as

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an entirety, to another corporation upon the terms and conditions provided for in Article
Eight of this Indenture shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 1503 if such other corporation shall, as a part of
such consolidation, merger, conveyance or transfer, comply with the conditions stated in Article
Eight of this Indenture. Nothing in Section 1502 or in this Section 1503 shall apply to claims of,
or payments to, the Trustee under or pursuant to Section 607 of this Indenture.

          SECTION 1504. Subrogation.

          Subject to the payment in full of all Senior Indebtedness of the Company, the rights of the
Holders shall be subrogated to the rights of the holders of such Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company applicable to such Senior
Indebtedness until all amounts owing on the Debt Securities shall be paid in full; and, for the
purposes of such subrogation, no payments or distributions to the holders of such Senior
Indebtedness of any cash, property or securities to which the Holders or the Trustee would be
entitled except under the provisions of this Article Fifteen, and no payment over pursuant to the
provisions of this Article Fifteen to or for the benefit of the holders of such Senior Indebtedness
by Holders or the Trustee, shall, as between the Company, its creditors other than holders of
Senior Indebtedness of the Company, and the holders of the Debt Securities, be deemed to be a
payment by the Company to or on account of such Senior Indebtedness. It is understood that the
provisions of this Article Fifteen are and are intended solely for the purposes of defining the
relative rights of the holders of the Debt Securities, on the one hand, and the holders of such
Senior Indebtedness, on the other hand.

          Nothing contained in this Article Fifteen or elsewhere in this Indenture, any Additional
Provisions or in the Debt Securities is intended to or shall impair, as between the Company, its
creditors other than the holders of Senior Indebtedness of the Company, and the holders of the Debt
Securities, the obligation of the Company, which is absolute and unconditional, to pay to the
holders of the Debt Securities the principal of, premium, if any, and interest on, the Debt
Securities as and when the same shall become due and payable in accordance with their terms, or is
intended to or shall affect the relative rights of the holders of the Debt Securities and creditors
of the Company, other than the holders of Senior Indebtedness of the Company, nor shall anything
herein or therein prevent the Trustee or the holder of any Debt Security from exercising all
remedies otherwise permitted by applicable law upon default under the Indenture, subject to the
rights, if any, under this Article Fifteen of the holders of such Senior Indebtedness in respect of
cash, property or securities of the Company received upon the exercise of any such remedy.

          Upon any payment or distribution of assets of the Company referred to in this Article Fifteen,
the Trustee, subject to the provisions of Article Six of this Indenture, and the Holders shall be
entitled to conclusively rely upon any order or decree made by any court of competent jurisdiction
in which such dissolution, winding-up, liquidation or reorganization proceedings are pending, or a
certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent or other Person
making such payment or distribution, delivered to the Trustee or to the Holders, for the purposes
of ascertaining the Persons entitled to participate in such distribution, the holders of Senior
Indebtedness and other indebtedness of the Company, the

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amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article Fifteen.

          SECTION 1505. Trustee to Effectuate Subordination.

          Each Holder by such Holder’s acceptance thereof authorizes and directs the Trustee on such
Holder’s behalf to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article Fifteen and appoints the Trustee such Holder’s
attorney-in-fact for any and all such purposes.

          SECTION 1506. Notice by the Company.

          The Company shall give prompt written notice to a Responsible Officer of any fact known to the
Company that would prohibit the making of any payment of monies to or by the Trustee in respect of
the Debt Securities pursuant to the provisions of this Article Fifteen. Notwithstanding the
provisions of this Article Fifteen or any other provision of this Indenture or any Additional
Provisions, the Trustee shall not be charged with knowledge of the existence of any facts that
would prohibit the making of any payment of monies to or by the Trustee in respect of the Debt
Securities pursuant to the provisions of this Article Fifteen, unless and until a Responsible
Officer shall have received written notice thereof from the Company or a holder or holders of
Senior Indebtedness or from any trustee therefor; and before the receipt of any such written
notice, the Trustee, subject to the provisions of Article Six of this Indenture, shall be entitled
in all respects to assume that no such facts exist; provided, however, that if the
Trustee shall not have received the notice provided for in this Section 1506 at least two Business
Days prior to the date upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (or premium, if any) or interest on
any Debt Security), then, anything herein contained to the contrary notwithstanding, the Trustee
shall have full power and authority to receive such money and to apply the same to the purposes for
which they were received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.

          The Trustee, subject to the provisions of Article Six of this Indenture, shall be entitled to
conclusively rely on the delivery to it of a written notice by a Person representing himself to be
a holder of Senior Indebtedness of the Company (or a trustee on behalf of such holder) to establish
that such notice has been given by a holder of such Senior Indebtedness or a trustee on behalf of
any such holder or holders. In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of such Senior
Indebtedness to participate in any payment or distribution pursuant to this Article Fifteen, 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 any other facts pertinent to the
rights of such Person under this Article Fifteen, 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.

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          SECTION 1507. Rights of the Trustee; Holders of Senior Indebtedness.

          The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article Fifteen in respect of any Senior Indebtedness at any time held by it, to the same extent as
any other holder of Senior Indebtedness, and nothing in this Indenture or any Additional Provisions
shall deprive the Trustee of any of its rights as such holder.

          With respect to the holders of Senior Indebtedness of the Company, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are specifically set forth in
this Article Fifteen, and no implied covenants or obligations with respect to the holders of such
Senior Indebtedness shall be read into this Indenture or any Additional Provisions against the
Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of such Senior
Indebtedness and, subject to the provisions of Article Six of this Indenture, the Trustee shall not
be liable to any holder of such Senior Indebtedness if it shall pay over or deliver to Holders, the
Company or any other Person money or assets to which any holder of such Senior Indebtedness shall
be entitled by virtue of this Article Fifteen or otherwise.

          Nothing in this Article Fifteen shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 607.

          SECTION 1508. Subordination May Not Be Impaired.

          No right of any present or future holder of any Senior Indebtedness of the Company to enforce
subordination as herein provided shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of the Company, or by any act or failure to act in good faith by any
such holder, or by any noncompliance by the Company with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof that any such holder may have or otherwise be
charged with.

          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 Holders and without
impairing or releasing the subordination provided in this Article Fifteen or the obligations
hereunder of the holders of the Debt Securities to the holders of such Senior Indebtedness, 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, such Senior Indebtedness, or otherwise amend or supplement in any
manner such Senior Indebtedness or any instrument evidencing the same or any agreement under which
such Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing such Senior Indebtedness; (iii) release any
Person liable in any manner for the collection of such Senior Indebtedness; and (iv) exercise or
refrain from exercising any rights against the Company and any other Person.

* * * * *

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          This instrument maybe 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.

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

	 	 	 	 	 
	 	COUNTRYWIDE FINANCIAL CORPORATION

 	 
	 	By:  	/s/ Bradley W. Coburn
 	 
	 	 	Title: Managing Director, Assistant  	 
	 	 	           Treasurer, Cash Management 	 
	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	/s/ Stacey B. Poindexter
 	 
	 	 	Title:  Assistant Vice President 	 
	 	 	 	 

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Exhibit A

Form of election to receive payments in

U.S. Dollars or to rescind such election

     The undersigned, registered owner of certificate number —                                                              (the “Certificate”),
representing [name of series of Debt Securities] (the “Debt Securities”) in an aggregate principal
amount of                                                             , hereby

	 	 	 	 	 
	 

	 	o
	 	elects to receive all payments in respect of the Debt Securities in U.S. Dollars.
Subject to the terms and conditions set forth in the indenture under which the Debt
Securities were issued (the “Indenture”), this election shall take effect on the next
Record Date (as defined in the Indenture) after this election form is received by the
Trustee and shall remain in effect until it is rescinded by the undersigned or until
the Certificate is transferred or paid in full at Maturity.
	 
	 	 	 	 
	 

	 	o
	 	rescinds the election previously submitted by the undersigned to receive all
payments in respect of the Debt Securities in U.S. Dollars represented by the
Certificate. Subject to the terms and conditions set forth in the Indenture, this
rescission shall take effect on the next Record Date (as defined in such Indenture)
after this election form is received by the Trustee, or, in the case of Maturity of an
installment of principal, the fifteenth day immediately preceding such Maturity.

     The undersigned acknowledges that, except as provided in the Indenture, any costs incurred by
or on behalf of the Company in connection with the conversion of foreign currency into U.S. Dollars
shall be borne by the undersigned through deduction from payments required to be made to the
undersigned pursuant to the terms of the Indenture.

     All capitalized terms used herein, unless otherwise defined herein, shall have the meanings
assigned to them in the Indenture.

	 	 	 	 	 
	 

	 	 

(Name of Owner)
	 	 
	 
	 	 	 	 
	 

	 	 

(Signature of owner)
	 	 

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