Document:

Exhibit 10.10

 

SUMMARY OF FEES FOR BOARD OF
DIRECTORS

 

Each director of Old Second Bancorp, Inc. also
serves as a director of Old Second National Bank, and may serve on boards
of its other subsidiaries. In 2005, non-employee directors received $750 for
every board meeting attended for the first quarter and $925 for every board
meeting attended for quarters two through four and $500 for each committee
meeting attended. Non-employee directors of Old Second National Bank received a
$10,000 annual retainer for directors, $15,000 annual retainer for directors
that also serve as committee chair of the Audit, Compensation, or Governance
Commitees, $750 for every bank board meeting in the first quarter and $925 for
quarters two through four attended and $500 for each committee meeting attended.
Additionally, non-employee directors of Old Second Bank-Yorkville received $500
for directors and $250 for directors emeriti per meeting and Old Second
Bank-Kane County receive $500 for directors and $300 for directors emeriti per
meeting and non-employee directors of Old Second Mortgage receive $300 per
meeting.

 

Non-employee directors of Old Second National Bank are
also eligible to receive options pursuant to the Old Second Bancorp, Inc.
2002 Long Term Incentive Plan. The Company also maintains the Old Second
Bancorp Directors Fee Deferral Plan, under which directors are permitted to
defer receipt of their directors’ fees and earn a rate of return based upon the
performance of the Old Second Bancorp Common Stock. The plan is unqualified and
the directors have no interest in the trust. The deferred fees and any earnings
thereon are unsecured obligations of Old Second.

 

1Exhibit 4.27

 

Execution Copy

 

 

 

 

JUNIOR SUBORDINATED INDENTURE

 

 

Between

 

 

AMERICAN EQUITY INVESTMENT LIFE HOLDING
COMPANY

 

 

And

 

 

 

JPMORGAN CHASE BANK, National Association,

as Trustee

 

 

Dated as of December 15, 2005

 

 

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE
  I

  	
   

  
	
   

  	
  Definitions and Other Provisions of General
  Application

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
  1

  
	
  Section 1.2.

  	
  Compliance Certificate and Opinions

  	
  10

  
	
  Section 1.3.

  	
  Forms of Documents Delivered to Trustee

  	
  10

  
	
  Section 1.4.

  	
  Acts of Holders

  	
  11

  
	
  Section 1.5.

  	
  Notices, Etc. to Trustee and Company

  	
  13

  
	
  Section 1.6.

  	
  Notice to Holders; Waiver

  	
  13

  
	
  Section 1.7.

  	
  Effect of Headings and Table of Contents

  	
  13

  
	
  Section 1.8.

  	
  Successors and Assigns

  	
  13

  
	
  Section 1.9.

  	
  Separability Clause

  	
  14

  
	
  Section 1.10.

  	
  Benefits of Indenture

  	
  14

  
	
  Section 1.11.

  	
  Governing Law

  	
  14

  
	
  Section 1.12.

  	
  Submission to Jurisdiction

  	
  14

  
	
  Section 1.13.

  	
  Non-Business Days

  	
  14

  
	
  ARTICLE
  II

  	
   

  
	
  Security
  Forms

  	
   

  
	
  Section 2.1.

  	
  Form of Security

  	
  15

  
	
  Section 2.2.

  	
  Restricted Legend

  	
  20

  
	
  Section 2.3.

  	
  Form of Trustee’s Certificate of Authentication

  	
  22

  
	
  Section 2.4.

  	
  Temporary Securities

  	
  22

  
	
  Section 2.5.

  	
  Definitive Securities

  	
  23

  
	
  ARTICLE
  III

  	
   

  
	
  The
  Securities

  	
   

  
	
  Section 3.1.

  	
  Payment of Principal and Interest

  	
  23

  
	
  Section 3.2.

  	
  Denominations

  	
  25

  
	
  Section 3.3.

  	
  Execution, Authentication, Delivery and Dating

  	
  25

  
	
  Section 3.4.

  	
  Global Securities

  	
  26

  
	
  Section 3.5.

  	
  Registration, Transfer and Exchange Generally

  	
  28

  
	
  Section 3.6.

  	
  Mutilated, Destroyed, Lost and Stolen Securities

  	
  29

  
	
  Section 3.7.

  	
  Persons Deemed Owners

  	
  30

  
					

 

-i-

 

	
  Section 3.8.

  	
  Cancellation

  	
  30

  
	
  Section 3.9.

  	
  Deferrals of Interest Payment Dates

  	
  30

  
	
  Section 3.10.

  	
  Right of Set-Off

  	
  31

  
	
  Section 3.11.

  	
  Agreed Tax Treatment

  	
  31

  
	
  Section 3.12.

  	
  CUSIP Numbers

  	
  31

  
	
  ARTICLE
  IV

  	
   

  
	
  Satisfaction
  and Discharge

  	
   

  
	
  Section 4.1.

  	
  Satisfaction and Discharge of Indenture

  	
  32

  
	
  Section 4.2.

  	
  Application of Trust Money

  	
  33

  
	
  ARTICLE
  V

  	
   

  
	
  Remedies

  	
   

  
	
  Section 5.1.

  	
  Events of Default

  	
  33

  
	
  Section 5.2.

  	
  Acceleration of Maturity; Rescission and Annulment

  	
  34

  
	
  Section 5.3.

  	
  Collection of Indebtedness and Suits for Enforcement by Trustee.

  	
  35

  
	
  Section 5.4.

  	
  Trustee May File Proofs of Claim

  	
  36

  
	
  Section 5.5.

  	
  Trustee May Enforce Claim Without Possession of Securities

  	
  36

  
	
  Section 5.6.

  	
  Application of Money Collected

  	
  36

  
	
  Section 5.7.

  	
  Limitation on Suits

  	
  37

  
	
  Section 5.8.

  	
  Unconditional Right of Holders to Receive Principal, Premium, if any,
  and Interest; Direct Action by Holders of Preferred Securities

  	
  37

  
	
  Section 5.9.

  	
  Restoration of Rights and Remedies

  	
  38

  
	
  Section 5.10.

  	
  Rights and Remedies Cumulative

  	
  38

  
	
  Section 5.11.

  	
  Delay or Omission Not Waiver

  	
  38

  
	
  Section 5.12.

  	
  Control by Holders

  	
  38

  
	
  Section 5.13.

  	
  Waiver of Past Defaults

  	
  39

  
	
  Section 5.14.

  	
  Undertaking for Costs

  	
  39

  
	
  Section 5.15.

  	
  Waiver of Usury, Stay or Extension Laws

  	
  40

  
	
  ARTICLE
  VI

  	
   

  
	
  The
  Trustee

  	
   

  
	
  Section 6.1.

  	
  Corporate Trustee Required

  	
  40

  
	
  Section 6.2.

  	
  Certain Duties and Responsibilities

  	
  40

  
					

 

-ii-

 

	
  Section 6.3.

  	
  Notice of Defaults

  	
  42

  
	
  Section 6.4.

  	
  Certain Rights of Trustee

  	
  42

  
	
  Section 6.5.

  	
  May Hold Securities

  	
  44

  
	
  Section 6.6.

  	
  Compensation; Reimbursement; Indemnity

  	
  44

  
	
  Section 6.7.

  	
  Resignation and Removal; Appointment of Successor

  	
  45

  
	
  Section 6.8.

  	
  Acceptance of Appointment by Successor

  	
  46

  
	
  Section 6.9.

  	
  Merger, Conversion, Consolidation or Succession to Business

  	
  46

  
	
  Section 6.10.

  	
  Not Responsible for Recitals or Issuance of Securities

  	
  47

  
	
  Section 6.11.

  	
  Appointment of Authenticating Agent

  	
  47

  
	
  ARTICLE
  VII

  	
   

  
	
  Holder’s
  Lists and Reports by Company

  	
   

  
	
  Section 7.1.

  	
  Company to Furnish Trustee Names and Addresses of Holders

  	
  48

  
	
  Section 7.2.

  	
  Preservation of Information, Communications to Holders

  	
  49

  
	
  Section 7.3.

  	
  Reports by Company

  	
  49

  
	
  ARTICLE
  VIII

  	
   

  
	
  Consolidation,
  Merger, Conveyance, Transfer or Lease

  	
   

  
	
  Section 8.1.

  	
  Company May Consolidate, Etc., Only on Certain Terms

  	
  50

  
	
  Section 8.2.

  	
  Successor Company Substituted

  	
  51

  
	
  ARTICLE
  IX

  	
   

  
	
  Supplemental
  Indentures

  	
   

  
	
  Section 9.1.

  	
  Supplemental Indentures without Consent of Holders

  	
  51

  
	
  Section 9.2.

  	
  Supplemental Indentures with Consent of Holders

  	
  52

  
	
  Section 9.3.

  	
  Execution of Supplemental Indentures

  	
  53

  
	
  Section 9.4.

  	
  Effect of Supplemental Indentures

  	
  53

  
	
  Section 9.5.

  	
  Reference in Securities to Supplemental Indentures

  	
  53

  
	
  ARTICLE
  X

  	
   

  
	
  Covenants

  	
   

  
	
  Section 10.1.

  	
  Payment of Principal, Premium, if any, and Interest

  	
  53

  
	
  Section 10.2.

  	
  Money for Security Payments to be Held in Trust

  	
  54

  
	
  Section 10.3.

  	
  Statement as to Compliance

  	
  55

  
	
  Section 10.4.

  	
  Calculation Agent

  	
  55

  
					

 

-iii-

 

	
  Section 10.5.

  	
  Additional Tax Sums

  	
  56

  
	
  Section 10.6.

  	
  Additional Covenants

  	
  56

  
	
  Section 10.7.

  	
  Waiver of Covenants

  	
  57

  
	
  Section 10.8.

  	
  Treatment of Securities

  	
  57

  
	
  ARTICLE
  XI

  	
   

  
	
  Redemption
  of Securities

  	
   

  
	
  Section 11.1.

  	
  Optional Redemption

  	
  57

  
	
  Section 11.2.

  	
  Special Event Redemption

  	
  58

  
	
  Section 11.3.

  	
  Election to Redeem; Notice to Trustee

  	
  58

  
	
  Section 11.4.

  	
  Selection of Securities to be Redeemed

  	
  58

  
	
  Section 11.5.

  	
  Notice of Redemption

  	
  59

  
	
  Section 11.6.

  	
  Deposit of Redemption Price

  	
  59

  
	
  Section 11.7.

  	
  Payment of Securities Called for Redemption

  	
  60

  
	
  ARTICLE
  XII

  	
   

  
	
  Subordination
  of Securities

  	
   

  
	
  Section 12.1.

  	
  Securities Subordinate to Senior Debt

  	
  60

  
	
  Section 12.2.

  	
  No Payment When Senior Debt in Default; Payment Over of Proceeds Upon
  Dissolution, Etc.

  	
  60

  
	
  Section 12.3.

  	
  Payment Permitted If No Default

  	
  62

  
	
  Section 12.4.

  	
  Subrogation to Rights of Holders of Senior Debt

  	
  62

  
	
  Section 12.5.

  	
  Provisions Solely to Define Relative Rights

  	
  62

  
	
  Section 12.6.

  	
  Trustee to Effectuate Subordination

  	
  63

  
	
  Section 12.7.

  	
  No Waiver of Subordination Provisions

  	
  63

  
	
  Section 12.8.

  	
  Notice to Trustee

  	
  63

  
	
  Section 12.9.

  	
  Reliance on Judicial Order or Certificate of Liquidating Agent

  	
  64

  
	
  Section 12.10.

  	
  Trustee Not Fiduciary for Holders of Senior Debt

  	
  64

  
	
  Section 12.11.

  	
  Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s
  Rights

  	
  65

  
	
  Section 12.12.

  	
  Article Applicable to Paying Agents

  	
  65

  
					

 

-iv-

 

SCHEDULES

 

	
  Schedule A

  	
   

  	
  –

  	
   

  	
  Determination
  of LIBOR

  
	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Form of
  Officer’s Financial Certificate

  

 

i

 

Junior Subordinated Indenture, dated as of December 15, 2005, between American
Equity Investment Life Holding Company, an Iowa corporation (the “Company”), and JPMorgan Chase Bank, National
Association, a national banking
association, as Trustee (in such capacity, the “Trustee”).

 

Recitals of
the Company

 

Whereas, the Company has duly authorized the execution and
delivery of this Indenture to provide for the issuance of its unsecured junior
subordinated deferrable interest notes (the “Securities”) issued to evidence
loans made to the Company of the proceeds from the issuance by American Equity
Capital Trust XI, a Delaware statutory
trust (the “Trust”), of undivided preferred
beneficial interests in the assets of the Trust (the “Preferred Securities”) and undivided common
beneficial interests in the assets of the Trust (the “Common Securities” and, collectively with the Preferred
Securities, the “Trust
Securities”),
and to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered; and

 

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

 

Now, therefore, this Indenture Witnesseth:

 

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

 

ARTICLE I

 

Definitions
and Other Provisions of General Application

 

SECTION 1.1.  Definitions.

 

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

 

(a) 
the terms defined in this Article I have the meanings assigned to
them in this Article I;

 

(b) 
the words “include”, “includes” and “including” shall be deemed to be
followed by the phrase “without limitation”;

 

(c) 
all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with GAAP;

 

(d) 
unless the context otherwise requires, any reference to an “Article” or
a “Section” refers to an Article or a Section, as the case may be, of this
Indenture;

 

(e) 
the words “hereby”, “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;

 

1

 

(f)  a
reference to the singular includes the plural and vice versa; and

 

(g) 
the masculine, feminine or neuter genders used herein shall include the
masculine, feminine and neuter genders.

 

“Act”  when used with respect
to any Holder, has the meaning specified in Section 1.4.

 

“Administrative Trustee” means, with
respect to the Trust, each Person identified as an “Administrative Trustee” in
the Trust Agreement, solely in its capacity as Administrative Trustee of the
Trust under the Trust Agreement and not in its individual capacity, or its
successor in interest in such capacity, or any successor Administrative Trustee
appointed as therein provided.

 

“Additional Interest”  means the interest, if
any, that shall accrue on any amounts payable 
on the Securities, the payment of which has not been made on the
applicable Interest Payment Date and which shall accrue at the rate per annum
specified or determined as specified in such Security, in each case to the extent
legally enforceable.

 

“Additional Tax Sums”  has the meaning
specified in Section 10.5.

 

“Additional Taxes” means taxes, duties or other governmental
charges imposed on the Trust as a result of a Tax Event (which, for the sake of
clarity, does not include amounts required to be deducted or withheld by the
Trust from payments made by the Trust to or for the benefit of the Holder of,
or any Person that acquires a beneficial interest in, the Securities).

 

“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.

 

“Applicable Accounting Principles” means
accounting practices prescribed or permitted by the National Association of
Insurance Commissioners and, with respect to the Company’s subsidiary insurance
companies, the applicable insurance department of the state of domicile of such
insurance subsidiary, and in each case, applied consistently throughout the
periods involved.

 

“Applicable Depository Procedures” means, with respect to
any transfer or transaction involving a Global Security or beneficial interest
therein, the rules and procedures of the Depositary for such Security, in each
case to the extent applicable to such transaction and as in effect from time to
time.

 

“Applicable Insurance Regulatory
Authority” means
the Iowa Insurance Division or, if at any time after the execution of this
Indenture any such entity is not existing and performing the duties now
assigned to it, any successor body performing similar duties or functions.

 

“Authenticating Agent” means any Person
authorized by the Trustee pursuant to Section 6.11 to act on behalf of
the Trustee to authenticate the Securities.

 

2

 

“Bankruptcy Code” means Title 11 of the
United States Code or any successor statute(s) thereto, or any similar federal
or state law for the relief of debtors, in each case as amended from time to
time.

 

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

 

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

 

“Business Day” means any day other than
(i) a Saturday or Sunday, (ii) a day on which banking institutions in the City
of New York are authorized or required by law or executive order to remain
closed or (iii) a day on which the Corporate Trust Office of the Trustee is
closed for business.

 

“Calculation Agent” has the meaning
specified in Section 10.4.

 

“Common Securities”  has the meaning
specified in the first recital of this Indenture.

 

“Common Stock”  means the common stock,
par value $1.00 per share, of the Company.

 

“Company”  means the Person named
as the “Company” in the first paragraph
of this Indenture 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, the
written request or order signed in the name of the Company by its Chairman of
the Board of Directors, its Vice Chairman of the Board of Directors, its Chief
Executive Officer, President or a Vice President, and by its Chief Financial
Officer, its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee.

 

“Corporate Trust Office”  means the principal
office of the Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of this Indenture is
located at 600 Travis, 50th
Floor, Houston, Texas 77002, Attn: 
Worldwide Securities Services, American Equity Capital Trust XI.

 

“Debt” means, with respect to
any Person, whether recourse is to all or a portion of the assets of such
Person, whether currently existing or hereafter incurred and whether or not
contingent and without duplication, (i) every obligation of such Person for
money borrowed; (ii) every obligation of such Person evidenced by bonds,
debentures, notes or other similar instruments, including obligations incurred
in connection with the acquisition of property, assets or businesses; (iii)
every reimbursement obligation of such Person with respect to letters of
credit, bankers’ acceptances or similar facilities issued for the account of
such Person; (iv) every obligation of such Person issued or assumed as the
deferred purchase price of property or services (but excluding trade accounts
payable or other accrued liabilities arising in the ordinary course of
business); (v) every capital lease obligation of such Person; (vi) all
indebtedness of such Person, whether incurred on or prior to the date of this
Indenture or thereafter incurred, for claims in respect of derivative products,
including interest rate, foreign exchange rate and

 

3

 

commodity forward contracts,
options and swaps and similar arrangements; (vii) every obligation of the type
referred to in clauses (i) through (vi) of another Person and all dividends of
another Person the payment of which, in either case, such Person has guaranteed
or is responsible or liable for, directly or indirectly, as obligor or
otherwise; and (viii) any renewals, extensions, refundings, amendments or
modifications of any obligation of the type referred to in clauses (i) through
(vii).

 

“Defaulted Interest” has the meaning
specified in Section 3.1.

 

“Delaware Trustee” means, with respect to the Trust, the Person identified as the “Delaware
Trustee” in the Trust Agreement, solely in its capacity as Delaware Trustee of
the Trust under the Trust Agreement and not in its individual capacity, or its
successor in interest in such capacity, or any successor Delaware Trustee
appointed as therein provided.

 

“Depositary”  means an organization
registered as a clearing agency under the Exchange Act that is designated as
Depositary by the Company or any successor thereto.

 

“Depositary Participant” means a broker, dealer,
bank, other financial institution or other Person for whom from time to time a
Depositary effects book-entry transfers and pledges of securities deposited
with the Depositary.

 

“Distributions” means amounts payable in
respect of the Trust Securities as provided in the Trust Agreement and referred
to therein as “Distributions.”

 

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

 

“DTC” means The Depository
Trust Company, a New York corporation, or any successor thereto.

 

“Event of Default”  has the meaning
specified in Section 5.1.

 

“Exchange Act” means the Securities
Exchange Act of 1934 or any statute successor thereto, in each case as amended
from time to time.

 

“Expiration Date” has the meaning
specified in Section 1.4.

 

“Extension Period”  has the meaning
specified in Section 3.9.

 

“GAAP” means United States generally
accepted accounting principles, consistently applied, from time to time in
effect.

 

“Global Security”  means a Security that
evidences all or part of the Securities, the ownership and transfers of which
shall be made through book entries by a Depositary.

 

“Government Obligation” means (a) any security that is (i) a
direct obligation of the United States of America of which the full faith and
credit of the United States of America is pledged or (ii) an obligation of a
Person controlled or supervised by and acting as an agency or instrumentality
of the United States of America or the payment of which is unconditionally

 

4

 

guaranteed as a full faith and
credit obligation by the United States of America, which, in either case (i) or
(ii), is not callable or redeemable at the option of the issuer thereof, and
(b) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any Government Obligation that
is specified in clause (a) above and held by such bank for the account of the
holder of such depositary receipt, or with respect to any specific payment of
principal of or interest on any Government Obligation that is so specified and
held, provided,
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the Government Obligation or
the specific payment of principal or interest evidenced by such depositary
receipt.

 

“Guarantee Agreement” means the Guarantee
Agreement executed by the Company and JPMorgan Chase Bank, National
Association, as Guarantee Trustee, contemporaneously with the execution and
delivery of this Indenture, for the benefit of the holders of the Preferred
Securities, as modified, amended or supplemented from time to time.

 

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

 

“Indenture”  means this instrument as
originally executed or as it may from time to time be amended or supplemented
by one or more amendments or indentures supplemental hereto entered into
pursuant to the applicable provisions hereof.

 

“Interest Payment Date” means March 15, June 15, September 15,
and December 15 of each year, commencing on March 15, 2006, during the term of
this Indenture.

 

“Investment Company Act” means the Investment
Company Act of 1940 or any successor statute thereto, in each case as amended
from time to time.

 

“Investment Company
Event” means
the receipt by the Company of an Opinion of Counsel experienced in such matters
to the effect that, as a result of the occurrence of a change in law or
regulation (including any announced prospective change) or a written change in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority, there is more than an
insubstantial risk that the Trust is or, within ninety (90) days of the date of
such opinion will be, considered an “investment company” that is required to be
registered under the Investment Company Act, which change or prospective change
becomes effective or would become effective, as the case may be, on or after
the date of the issuance of the Securities.

 

“LIBOR” has the meaning
specified in Schedule A.

 

“LIBOR Business Day” has the meaning
specified in Schedule A.

 

“LIBOR Determination Date” has the meaning specified
in Schedule A.

 

“Liquidation Amount” has the meaning
specified in the Trust Agreement.

 

“Maturity,”  when used with respect
to any Security, means the date on which the principal of such Security or any
installment of principal becomes due and payable as therein or

 

5

 

herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for
redemption or otherwise.

 

“Notice of Default” means a written notice of the kind
specified in Section 5.1(c).

 

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

 

“Operative Documents”  means the Trust
Agreement, the Indenture, the Purchase Agreement, the Guarantee Agreement and
the Securities.

 

“Opinion of Counsel”  means a written opinion
of counsel, who may be counsel for or an employee of the Company or any
Affiliate of the Company.

 

“Optional Redemption
Price” has the meaning set forth in Section
11.1.

 

“Original Issue Date” means the date of
original issuance of each Security.

 

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

 

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

 

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

 

(iii)  Securities that have been
paid or in substitution for or in lieu of which other Securities have been
authenticated and delivered pursuant to the provisions of this Indenture,
unless proof satisfactory to the Trustee is presented that any such Securities
are held by Holders in whose hands such Securities are valid, binding and legal
obligations of the Company;

 

provided,  that, in determining
whether the Holders of the requisite principal amount of Outstanding Securities
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
that a Responsible Officer of the Trustee actually knows to be so owned shall
be so disregarded. Securities so owned that have been pledged in good faith may
be regarded as Outstanding if the pledgee establishes to the satisfaction of
the Trustee the pledgee’s right so to act with respect to

 

6

 

such Securities
and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor.
Notwithstanding anything herein to the contrary, Securities initially issued to
the Trust that are owned by the Trust shall be deemed to be Outstanding
notwithstanding the ownership by the Company or an Affiliate of any beneficial
interest in the Trust.

 

“Paying Agent” means the Trustee or any Person
authorized by the Company to pay the principal of or any premium or interest
on, or other amounts in respect of, any Securities on behalf of the Company.

 

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

 

“Place of Payment”  means, with respect to
the Securities, the Corporate Trust Office of the Trustee.

 

“Preferred Securities”  has the meaning
specified in the first recital of this Indenture.

 

“Predecessor Security”  of any particular
Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by such particular Security. For the purposes of this
definition, any security authenticated and delivered under Section 3.6
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

 

“Proceeding”  has the meaning
specified in Section 12.2.

 

“Property Trustee” means the Person identified as the “Property
Trustee” in the Trust Agreement, solely in its capacity as Property Trustee of
the Trust under the Trust Agreement and not in its individual capacity, or its
successor in interest in such capacity, or any successor Property Trustee
appointed as therein provided.

 

“Purchase Agreement”  means the agreement,
dated as of the date hereof, between the Company and the Trust and ALESCO Preferred Funding IX, Ltd.

 

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

 

“Redemption Price” means, when used with
respect to any Security to be redeemed, in whole or in part, the Special
Redemption Price or the Optional Redemption Price, as applicable, at which such
Security or portion thereof is to be redeemed as fixed by or pursuant to this
Indenture.

 

“Reference Banks” has the meaning specified
in Schedule A.

 

“Regular Record Date”  for the interest payable
on any Interest Payment Date with respect to the Securities means the date that
is fifteen (15) days preceding such Interest Payment Date (whether or not a
Business Day).

 

7

 

“Responsible Officer” means, when used with
respect to the Trustee, the officer in the Worldwide Securities Services
department of the Trustee having direct responsibility for the administration
of this Indenture.

 

“Rights Plan” means a plan of the Company providing for
the issuance by the Company to all holders of its Common Stock of rights
entitling the holders thereof to subscribe for or purchase shares of any class
or series of capital stock of the Company which rights (i) are deemed to be
transferred with such shares of such Common Stock and (ii) are also issued in
respect of future issuances of such Common Stock, in each case until the
occurrence of a specified event or events.

 

“Securities”  or “Security means any debt securities or debt security,
as the case may be, authenticated and delivered under this
Indenture.

 

“Securities Act” means the Securities Act
of 1933 or any successor statute thereto, in each case as amended from time to
time.

 

“Securities Register”  and “Securities Registrar”  have the respective
meanings specified in Section 3.5.

 

“Senior Debt”  means the principal of
and any premium and interest on (including interest accruing on or after the
filing of any petition in bankruptcy or for reorganization relating to the
Company, whether or not such claim for post-petition interest is allowed in
such proceeding) all Debt of the Company, whether incurred on or prior to the
date of this Indenture or thereafter incurred, unless it is provided
in the instrument creating or evidencing the same or pursuant to which the same
is outstanding, that such obligations are not superior in right of payment to
the Securities issued under this Indenture; provided, however, that if the
Company is subject to the regulation and supervision of any Applicable
Insurance Regulatory Authority, the Company shall have received the approval
of each appropriate Applicable Insurance Regulatory Authority prior to issuing any
such obligation if then required; and
provided, further, that Senior
Debt shall not be deemed to include any other debt securities and guarantees in
respect of such debt securities issued to any trust other than the Trust (or a
trustee of any such trust), partnership or other entity affiliated with the
Company that is a financing vehicle of the Company (a “financing entity”) in
connection with the issuance by such financing entity of equity securities or
other securities that are treated as equity capital for regulatory capital
purposes guaranteed by the Company pursuant to an instrument that ranks pari passu with or junior in right of
payment to this Indenture, including, without limitation, securities issued by
American Equity Capital Trust  I, American Equity
Capital Trust  II, American Equity Capital Trust  III, American Equity
Capital Trust  IV, American Equity Capital Trust V, American Equity
Capital Trust VI, American Equity Capital Trust VII,  American Equity Capital Trust VIII, American
Equity Capital Trust IX and American Equity Capital Trust X.

 

“Special Event”  means the occurrence of
an Investment Company Event or a Tax Event.

 

“Special Record Date”  for the payment of any
Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.1.

 

“Special Redemption
Price” has the meaning set forth in Section 11.2.

 

8

 

“Stated Maturity” means December 15, 2035.

 

“Statutory Financial
Statements” means all financial statements of the Company’s
subsidiary insurance companies for each relevant period, each prepared in
accordance with Applicable Accounting Principles.

 

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

 

“Tax Event” means the receipt by the
Company of an Opinion of Counsel experienced in such matters to the effect
that, as a result of (a) any amendment to or change (including any announced
prospective change) in the laws or any regulations thereunder of the United
States or any political subdivision or taxing authority thereof or therein or
(b) any judicial decision or any official administrative pronouncement
(including any private letter ruling, technical advice memorandum or field
service advice) or regulatory procedure, including any notice or announcement
of intent to adopt any such pronouncement or procedure (an “Administrative Action”), regardless of
whether such judicial decision or Administrative Action is issued to or in
connection with a proceeding involving the Company or the Trust and whether or
not subject to review or appeal, which amendment, change, judicial decision or
Administrative Action is enacted, promulgated or announced, in each case, on or
after the date of issuance of the Securities, there is more than an
insubstantial risk that (i) the Trust is, or will be within ninety (90) days of
the date of such opinion, subject to United States federal income tax with
respect to income received or accrued on the Securities, (ii) interest payable
by the Company on the Securities is not, or within ninety (90) days of the date
of such opinion, will not be, deductible by the Company, in whole or in part,
for United States federal income tax purposes, or (iii) the Trust is, or will
be within ninety (90) days of the date of such opinion, subject to more than a de minimis
amount of other taxes, duties or other governmental charges.

 

“Trust” has the meaning
specified in the first recital of this Indenture.

 

“Trust Agreement” means the Amended and Restated Trust
Agreement executed and delivered by the Company, the Property Trustee, Chase
Manhattan Bank USA, National Association, as Delaware Trustee and the
Administrative Trustees named therein, contemporaneously with the execution and
delivery of this Indenture, for the benefit of the holders of the Trust
Securities, as amended or supplemented from time to time.

 

“Trustee”  means the Person named
as the “Trustee” in the first paragraph
of this instrument, solely in its capacity as such and not in its individual
capacity, 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.

 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as
amended and as in effect on the date as of this Indenture.

 

“Trust Securities” has the meaning
specified in the first recital of this Indenture.

 

9

 

SECTION 1.2.  Compliance Certificate and Opinions.

 

(a)           Upon any application or request by
the Company to the Trustee to take any action under any provision of this
Indenture, the Company shall, if requested by the Trustee,  furnish to the Trustee an Officers’
Certificate stating that all conditions precedent (including covenants
compliance with which constitutes a condition 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 (including covenants compliance with which constitutes a
condition precedent), if any, have been complied with.

 

(b)           Every certificate or opinion with
respect to compliance with a condition or covenant provided for in this
Indenture (other than the certificate provided pursuant to Section 10.3)
shall include:

 

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

 

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

 

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

 

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

 

SECTION 1.3.  Forms of Documents Delivered to Trustee.

 

(a)           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.

 

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

 

10

 

(c)           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.

 

(d)           Whenever, subsequent to the receipt
by the Trustee of any Board Resolution, Officers’ Certificate, Opinion of
Counsel or other document or instrument, a clerical, typographical or other
inadvertent or unintentional error or omission shall be discovered therein, a
new document or instrument may be substituted therefor in corrected form with
the same force and effect as if originally received in the corrected form and,
irrespective of the date or dates of the actual execution and/or delivery
thereof, such substitute document or instrument shall be deemed to have been
executed and/or delivered as of the date or dates required with respect to the
document or instrument for which it is substituted.  Without limiting the generality of the
foregoing, any Securities issued under the authority of such defective document
or instrument shall nevertheless be the valid obligations of the Company
entitled to the benefits of this Indenture equally and ratably with all other
Outstanding Securities.

 

SECTION 1.4.  Acts of Holders.

 

(a)           Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given to or taken by Holders may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such Holders in
person or by an agent thereof duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such instrument
or instruments (including any appointment of an agent) is or 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 conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.4.

 

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

 

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

 

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

 

11

 

(e)           Without limiting the foregoing, a
Holder entitled to take any action hereunder with regard to any particular
Security may do so with regard to all or any part of the principal amount of
such Security or by one or more duly appointed agents each of which may do so pursuant
to such appointment with regard to all or any part of such principal amount.

 

(f)            Except as set forth in paragraph (g)
of this Section 1.4, the Company may set any day as a record date for
the purpose of determining the Holders of Outstanding Securities entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities. If any record date is set
pursuant to this paragraph, the Holders of Outstanding Securities on such
record date, and no other Holders, shall be entitled to take the relevant
action, whether or not such Holders remain Holders after such record date; provided,
that no such action shall be effective hereunder unless taken on or prior to
the applicable Expiration Date (as defined in Section 1.4(h)) by Holders
of the requisite principal amount of Outstanding Securities on such record
date.  Nothing in this paragraph shall be
construed to prevent the Company from setting a new record date for any action
for which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no
action by any Person be canceled and of no effect).  Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Trustee in writing and to each Holder of
Securities in the manner set forth in Section 1.6.

 

(g)           The Trustee may set any day as a
record date for the purpose of determining the Holders of Outstanding
Securities entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration or rescission or annulment
thereof referred to in Section 5.2, (iii) any request to institute
proceedings referred to in Section 5.7(b) or (iv) any direction referred
to in Section 5.12. If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities on such record date, and no
other Holders, shall be entitled to join in such notice, declaration, request
or direction, whether or not such Holders remain Holders after such record
date; provided, that no such action
shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities on such record date. Nothing in this paragraph shall be construed to
prevent the Trustee from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be canceled and of no effect).  Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the
Company’s expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Company in
writing and to each Holder of Securities in the manner set forth in Section
1.6.

 

(h)           With respect to any record date set
pursuant to paragraph (f) or (g) of this Section 1.4, the party hereto
that sets such record date may designate any day as the “Expiration Date” and from time to time may change the
Expiration Date to any earlier or later day; provided, that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto
in writing, and to each Holder of Securities in the manner set forth in Section
1.6, on or prior to the existing Expiration Date. If an Expiration Date is
not designated with respect to any record date set pursuant to this Section
1.4, the party hereto that set such record date shall be deemed to have
initially designated the ninetieth (90th) day after such record 

 

12

 

date as the Expiration Date
with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the one hundred eightieth (180th) day after the
applicable record date.

 

SECTION 1.5.  Notices, Etc. to Trustee and Company.

 

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

 

(a)           the Trustee by any Holder, any holder
of Preferred Securities or the Company shall be sufficient for every purpose hereunder
if made, given, furnished or filed in writing to or with and received by the
Trustee at its Corporate Trust Office, or

 

(b)           the Company by the Trustee, any
Holder or any holder of Preferred Securities shall be sufficient for every
purpose hereunder if in writing and mailed, first class, postage prepaid, to
the Company addressed to it at American Equity Investment Life Holding Company,
5000 Westown Parkway, Suite 440, West Des Moines, IA 50266, Attention: Wendy
Carlson, Chief Financial Officer or at any other address previously furnished
in writing to the Trustee by the Company.

 

SECTION 1.6.  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
to the address of such Holder as it appears in the Securities Register, not
later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice. If, by reason of the suspension of or
irregularities in regular mail service or for any other reason, it shall be
impossible or impracticable to mail notice of any event to Holders when said
notice is required to be given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be satisfactory to the Trustee
shall be deemed to be a sufficient giving of such notice. In any case where
notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect
the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

 

SECTION 1.7.  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 of this Indenture.

 

SECTION 1.8.  Successors and Assigns.

 

This Indenture
shall be binding upon and shall inure to the benefit of any successor to the
Company and the Trustee, including any successor by operation of law.  Except in connection

 

13

 

with a transaction involving
the Company that is permitted under Article VIII and pursuant to which
the assignee agrees in writing to perform the Company’s obligations hereunder,
the Company shall not assign its obligations hereunder.

 

SECTION 1.9.  Separability Clause.

 

If any provision
in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby, and there
shall be deemed substituted for the provision at issue a valid, legal and
enforceable provision as similar as possible to the provision at issue.

 

SECTION 1.10.  Benefits of Indenture.

 

Nothing in this
Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors and assigns, the holders of
Senior Debt, the Holders of the Securities and, to the extent expressly
provided in Sections 5.2, 5.8, 5.9, 5.11, 5.13,
9.2 and 10.7, the holders of Preferred Securities, any benefit or
any legal or equitable right, remedy or claim under this Indenture.

 

SECTION 1.11.  Governing Law.

 

This Indenture and the
rights and obligations of each of the Holders, the Company and the Trustee
shall be construed and enforced in accordance with and governed by the laws of
the State of New York without reference to its conflict of laws provisions
(other than Section 5-1401 of the General Obligations Law).

 

SECTION 1.12.  Submission to Jurisdiction.

 

ANY LEGAL ACTION
OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT
OF THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF
NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA
FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF
MANHATTAN). BY EXECUTION AND DELIVERY OF THIS INDENTURE, EACH PARTY ACCEPTS,
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR
LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE.

 

SECTION 1.13.  Non-Business Days.

 

If any Interest
Payment Date, Redemption Date or Stated Maturity of any Security shall not be a
Business Day, then (notwithstanding any other provision of this Indenture or
the Securities) payment of interest, premium, if any, or principal or other
amounts in respect of such Security shall not be made on such date, but shall
be made on the next succeeding Business Day (and no interest shall accrue in
respect of the amounts whose payment is so delayed for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be, until such next succeeding Business Day) except that, if such
Business Day falls in the next succeeding calendar year, such payment shall be
made on the immediately preceding

 

14

 

Business Day, in each case with
the same force and effect as if made on the Interest Payment Date or Redemption
Date or at the Stated Maturity.

 

ARTICLE II

 

Security
Forms

 

SECTION 2.1.  Form of Security.

 

Any Security
issued hereunder shall be in substantially the following form:

 

AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

 

Floating Rate Junior Subordinated Note due 2035

 

	
  No.

  	
   

  	
  $20,620,000

  

 

American Equity Investment Life Holding Company, a corporation
organized and existing under the laws of Iowa (hereinafter called the “Company,” which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to                 ,
or registered assigns, the principal sum of Twenty Million Six Hundred Twenty
Thousand Dollars ($20,620,000) or such other principal amount represented
hereby as may be set forth in the records of the Securities Registrar
hereinafter referred to in accordance with the Indenture on December 15,
2035.  The Company further promises to
pay interest on said principal sum from December 15, 2005, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, quarterly (subject to deferral as
set forth herein) in arrears on March 15, June 15, September 15, and December
15 of each year, commencing March 15, 2006, or if any such day is not a
Business Day, on the next succeeding Business Day (and no interest shall accrue
in respect of the amounts whose payment is so delayed for the period from and
after such Interest Payment Date until such next succeeding Business Day),
except that, if such Business Day falls in the next succeeding calendar year,
such payment shall be made on the immediately preceding Business Day, in each
case, with the same force and effect as if made on the Interest Payment Date,
at a fixed rate of 8.595% per annum
through the interest payment date in December 15, 2010 and a variable
rate equal to LIBOR plus 3.65% per annum thereafter, together with Additional
Tax Sums, if any, as provided in Section 10.5 of the Indenture, until
the principal hereof is paid or duly provided for or made available for
payment; provided,
further, that any overdue
principal, premium, if any, or Additional Tax Sums and any overdue installment
of interest shall bear Additional Interest at a fixed rate of 8.595% per annum through the interest payment date in
December 15, 2010 and a variable rate equal to LIBOR plus 3.65% per
annum thereafter (to the extent that the payment of such interest shall be
legally enforceable), compounded quarterly, from the dates such amounts are due
until they are paid or made available for payment, and such interest shall be
payable on demand.

 

The amount of
interest payable shall be computed on the basis of a 360-day year and the
actual number of days elapsed in the relevant interest period. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
shall, as provided in the Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest installment.  Any such interest not so punctually paid or
duly provided for shall forthwith cease

 

15

 

to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders
of Securities not less than ten (10) days prior to such Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture.

 

So long as no
Event of Default has occurred and is continuing, the Company shall have the
right, at any time and from time to time during the term of this Security, to
defer the payment of interest on this Security for a period of up to twenty
(20) consecutive quarterly
interest payment periods (each such period, an “Extension Period”), during which Extension
Period(s), no interest shall be due and payable (except any Additional Tax Sums
that may be due and payable).  No
Extension Period shall end on a date other than an Interest Payment Date, and
no Extension Period shall extend beyond the Stated Maturity of the principal of
this Security.  No interest shall be due
and payable during an Extension Period (except any Additional Tax Sums that may
be due and payable), except at the end thereof, but each installment of
interest that would otherwise have been due and payable during such Extension
Period shall bear Additional Interest (to the extent payment of such interest
would be legally enforceable) at a fixed
rate of 8.595% per annum through the interest payment date in December 15, 2010
and a variable rate equal to LIBOR plus 3.65% per annum thereafter, compounded
quarterly, from the dates on which amounts would have otherwise been due and
payable until paid or made available for payment.  At the end of any such Extension Period, the
Company shall pay all interest then accrued and unpaid on this Security,
together with such Additional Interest. 
Prior to the termination of any such Extension Period, the Company may
further defer the payment of interest; provided, that (i) all such
previous and further extensions comprising such Extension Period do not exceed
twenty (20) quarterly interest payment periods, (ii) no Extension Period shall
end on a date other than an Interest Payment Date and (iii) no Extension Period
shall extend beyond the Stated Maturity of the principal of this Security.  Upon the termination of any such Extension
Period and upon the payment of all accrued and unpaid interest and any
Additional Interest then due on any Interest Payment Date, the Company may
elect to begin a new Extension Period; provided, that (i) such Extension
Period does not exceed twenty (20) quarterly interest payment periods, (ii) no
Extension Period shall end on a date other than an Interest Payment Date and
(iii) no Extension Period shall extend beyond the Stated Maturity of the
principal of this Security.  The Company
shall give the Holder of this Security and the Trustee written notice of its
election to begin any such Extension Period at least one Business Day prior to
the next succeeding Interest Payment Date on which interest on this Security
would be payable but for such deferral or, so long as this Security is held by
the Trust, at least one Business Day prior to the earlier of (i) the next
succeeding date on which Distributions on the Preferred Securities of American
Equity Capital Trust XI would be
payable but for such deferral and (ii) the date on which the Property Trustee
of such Trust is required to give notice to any securities exchange or other
applicable self-regulatory organization or to holders of such Preferred
Securities of the record date for the payment of such Distributions.

 

During any such
Extension Period, the Company shall not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any of the Company’s capital stock or (ii) make any payment of
principal of or any interest or premium, if any, on or repay, repurchase or
redeem any debt securities of the

 

16

 

Company that rank pari passu
in all respects with or junior in interest to this Security (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Company in connection with (1) any employment contract, benefit plan or
other similar arrangement with or for the benefit of any one or more employees,
officers, directors or consultants, (2) a dividend reinvestment or stockholder
stock purchase plan and (3) the issuance of capital stock of the Company (or
securities convertible into or exercisable for such capital stock) as
consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of an exchange or conversion of
any class or series of the Company’s capital stock (or any capital stock of a
Subsidiary of the Company) for any class or series of the Company’s capital
stock or of any class or series of the Company’s indebtedness for any class or
series of the Company’s capital stock, (c) the purchase of fractional interests
in shares of the Company’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
(d) any declaration of a dividend in connection with any Rights Plan, the
issuance of rights, stock or other property under any Rights Plan, or the
redemption or repurchase of rights pursuant thereto or (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or
the stock issuable upon exercise of such warrants, options or other rights is
the same stock as that on which the dividend is being paid or ranks pari passu
with or junior to such stock).

 

Payment of
principal of, premium, if any, and interest on this Security shall be made in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts.  Payments of principal, premium, if any, and
interest due at the Maturity of this Security shall be made at the Place of Payment upon
surrender of such Securities to the Paying Agent, and payments of interest
shall be made, subject to such surrender where applicable, by wire transfer at
such place and to such account at a banking institution in the United States as
may be designated in writing to the Paying Agent at least ten (10) Business
Days prior to the date for payment by the Person entitled thereto unless proper
written transfer instructions have not been received by the relevant record
date, in which case such payments shall be made by check mailed to the address
of such Person as such address shall appear in the Security Register.  Notwithstanding the foregoing, so long as the
Holder of this Security is the Property Trustee, the payment of the principal
of (and premium, if any) and interest (including any overdue installment of
interest and Additional Tax Sums, if any) on this Security will be made at such
place and to such account as may be designated by the Property Trustee.

 

The indebtedness
evidenced by this Security is, to the extent provided in the Indenture,
subordinate and junior in right of payment to the prior payment in full of all
Senior Debt, and this Security is issued subject to the provisions of the
Indenture with respect thereto. Each Holder of this Security, by accepting the
same, (a) agrees to and shall be bound by such provisions, (b) authorizes and
directs the Trustee on his or her behalf to take such actions as may be
necessary or appropriate to effectuate the subordination so provided and (c)
appoints the Trustee his or her attorney-in-fact for any and all such purposes.
Each Holder hereof, by his or her acceptance hereof, waives all notice of the
acceptance of the subordination provisions contained herein and in the
Indenture by each holder of Senior Debt, whether now outstanding or hereafter
incurred, and waives reliance by each such holder upon said provisions.

 

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

 

17

 

[FORM OF REVERSE OF SECURITY]

 

This Security is
one of a duly authorized issue of securities of the Company (the “Securities”) issued under the Junior
Subordinated Indenture, dated as of December 15, 2005 (the “Indenture”),
between the Company and JPMorgan Chase Bank, National Association, as Trustee
(in such capacity, the “Trustee,” which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee, the
holders of Senior Debt, the Holders of the Securities and the holders of the
Preferred Securities, and of the terms upon which the Securities are, and are
to be, authenticated and delivered.

 

All terms used in
this Security that are defined in the Indenture or in the Amended and Restated Trust Agreement, dated as of
December 15, 2005 (as modified,
amended or supplemented from time to time, the “Trust Agreement”), relating to the American Equity Capital Trust XI (the “Trust”) among the Company, as
Depositor, the Trustees named therein and the Holders from time to time of the
Trust Securities issued pursuant thereto, shall have the meanings assigned to
them in the Indenture or the Trust Agreement, as the case may be.

 

The Company may, on any Interest Payment Date, at its option, upon not
less than thirty (30) days’ nor more than sixty (60) days’ written notice to
the Holders of the Securities (unless a shorter notice period shall be
satisfactory to the Trustee) on or after December 15, 2010 and subject to the
terms and conditions of Article XI of the Indenture, redeem this
Security in whole at any time or in part from time to time at a Redemption
Price equal to one hundred percent (100%) of the principal amount hereof,
together, in the case of any such redemption, with accrued interest, including
any Additional Interest, through but excluding the date fixed as the Redemption
Date; provided,
that the Company shall have received the prior approval of any Applicable
Insurance Regulatory Authority then required.

 

In addition, upon
the occurrence and during the continuation of a Special Event, the Company may,
at its option, upon not less than thirty (30) days’ nor more than sixty (60)
days’ written notice to the Holders of the Securities (unless a shorter notice
period shall be satisfactory to the Trustee), redeem this Security, in whole
but not in part, subject to the terms and conditions of Article XI of
the Indenture at a Redemption Price equal to one hundred seven and one half
percent (107.5%) of the principal amount hereof, together, in the case of any
such redemption, with accrued interest, including any Additional Interest, through
but excluding the date fixed as the Redemption Date; provided, that the Company shall
have received the prior approval of any Applicable Insurance Regulatory
Authority then required.

 

In the event of
redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof.  If less than
all the Securities are to be redeemed, the particular Securities to be redeemed
shall be selected not more than sixty (60) days prior to the Redemption Date by
the Trustee from the Outstanding Securities 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 a portion of the
principal amount of any Security.

 

The Indenture
permits, with certain exceptions as therein provided, the Company and the
Trustee at any time to enter into a supplemental indenture or indentures for
the purpose of

 

18

 

modifying in any manner the
rights and obligations of the Company and of the Holders of the Securities,
with the consent of the Holders of not less than a majority in principal amount
of the Outstanding Securities. The Indenture also contains provisions
permitting Holders of specified percentages in principal amount of the
Securities, on behalf of the Holders of all Securities, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

 

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

 

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

 

The Securities are
issuable only in registered form without coupons in minimum denominations of
$100,000 and any integral multiple of $1,000 in excess thereof. As provided in
the Indenture and subject to certain limitations therein set forth, Securities
are exchangeable for a like aggregate principal amount of Securities and of like
tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

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

 

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

 

The Company and,
by its acceptance of this Security or a beneficial interest therein, the Holder
of, and any Person that acquires a beneficial interest in, this Security agree
that, for United States federal, state and local tax purposes, it is intended
that this Security constitute indebtedness.

 

This Security shall be
construed and enforced in accordance with and governed by the laws of the State
of New York, without reference to its conflict of laws provisions (other than
Section 5-1401 of the General Obligations Law).

 

19

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed on this     
day of           , 20  .

 

 

	
   

  	
  American Equity Investment Life Holding Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

SECTION 2.2.  Restricted Legend.

 

(a)           Any Security issued hereunder shall
bear a legend in substantially the following form:

 

“[IF THE SECURITY IS A GLOBAL SECURITY INSERT: THIS SECURITY
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A
NOMINEE OF DTC.  THIS SECURITY IS
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC
OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,
AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A
WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER
NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF
SIGLER & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO SIGLER & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, SIGLER & CO., HAS AN
INTEREST HEREIN.]

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND SUCH SECURITIES,
AND ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF ANY SECURITIES IS HEREBY
NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE RELYING ON THE EXEMPTION FROM
THE

 

20

 

PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED
BY RULE 144A UNDER THE SECURITIES ACT.

 

THE HOLDER OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITIES MAY
BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE COMPANY, (II) TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (III) TO AN INSTITUTIONAL “ACCREDITED INVESTOR”
WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER
THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR
THE ACCOUNT OF AN “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR (V) PURSUANT TO AN EXEMPTION FROM THE SECURITIES
ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND, IN THE
CASE OF (III) OR (V), SUBJECT TO THE RIGHT OF THE COMPANY TO REQUIRE AN OPINION
OF COUNSEL AND OTHER INFORMATION SATISFACTORY TO IT AND (B) THE HOLDER WILL
NOTIFY ANY PURCHASER OF ANY SECURITIES FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE.

 

THE SECURITIES WILL BE ISSUED
AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE PRINCIPAL AMOUNT OF
NOT LESS THAN $100,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED
TRANSFER OF SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE
PRINCIPAL AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT
LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST ON SUCH SECURITIES, OR ANY
INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO
INTEREST WHATSOEVER IN SUCH SECURITIES.

 

THE HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN,
BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR
ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED (“ERISA”), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN

 

21

 

ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS”
BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN
ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN.
ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE
DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT
AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN
TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR
ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE.”

 

(b)           The above legends shall not be
removed from any Security unless there is delivered to the Company satisfactory
evidence, which may include an Opinion of Counsel, as may be reasonably
required to ensure that any future transfers thereof may be made without
restriction under or violation of the provisions of the Securities Act and
other applicable law.  Upon provision of
such satisfactory evidence, the Company shall execute and deliver to the
Trustee, and the Trustee shall deliver, upon receipt of a Company Order
directing it to do so, a Security that does not bear the legend.

 

SECTION 2.3.  Form of Trustee’s Certificate of
Authentication.

 

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

 

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

 

Dated:

 

	
   

  	
  JPMorgan Chase Bank, National Association,
  

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized signatory

  

 

SECTION 2.4.  Temporary Securities.

 

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

 

(b)           If temporary Securities are issued,
the Company will cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities, the
temporary Securities shall be exchangeable for definitive Securities upon
surrender of the

 

22

 

temporary Securities at the office or agency of the
Company designated for that purpose without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor one or more definitive Securities of any authorized denominations
having the same Original Issue Date and Stated Maturity and having the same
terms as such temporary Securities. Until so exchanged, the temporary
Securities shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities.

 

SECTION 2.5.  Definitive Securities.

 

The Securities
issued on the Original Issue Date shall be in definitive form.  The definitive Securities shall be printed,
lithographed or engraved, or produced by any combination of these methods, if
required by any securities exchange on which the Securities may be listed, on a
steel engraved border or steel engraved borders or may be produced in any other
manner permitted by the rules of any securities exchange on which the
Securities may be listed, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

 

ARTICLE III

The Securities

 

SECTION 3.1.  Payment of Principal and Interest.

 

(a)           The unpaid principal amount of the
Securities shall bear interest at a fixed
rate of 8.595% per annum through the interest payment date in December 15, 2010
and a variable rate of LIBOR plus 3.65% per annum thereafter until paid
or duly provided for, such interest to accrue from the Original Issue Date or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, and any overdue principal, premium, if any, or Additional
Tax Sums and any overdue installment of interest shall bear Additional Interest
at the rate equal to a fixed rate of
8.595% per annum through the interest payment date in December 15, 2010 and a variable rate of LIBOR plus 3.65% per annum thereafter, compounded quarterly
from the dates such amounts are due until they are paid or funds for the
payment thereof are made available for payment.

 

(b)           Interest and Additional Interest on
any Security that is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, except that interest and
any Additional Interest payable on the Stated Maturity (or any date of
principal repayment upon early maturity) of the principal of a Security or on a
Redemption Date shall be paid to the Person to whom principal is paid. The
initial payment of interest on any Security that is issued between a Regular
Record Date and the related Interest Payment Date shall be payable as provided
in such Security.

 

(c)           Any interest on any Security that is
due and payable, but is not timely paid or duly provided for, on any Interest
Payment Date for Securities (herein called “Defaulted Interest”) shall forthwith cease
to be payable to the registered Holder on the relevant Regular Record Date

 

23

 

by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in paragraph (i) or (ii) below:

 

(i)  The Company may elect to
make payment of any Defaulted Interest to the Persons in whose names the
Securities (or their respective Predecessor Securities) are registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest (a “Special
Record Date”),
which shall be fixed in the following manner. 
At least thirty (30) days prior to the date of the proposed payment, the
Company shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Security 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. Thereupon the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest, which shall be not more than fifteen (15) days and
not less than ten (10) days prior to the date of the proposed payment and not
less than ten (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 a Security at the address of such Holder as it appears in the Securities
Register not less than ten (10) days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities (or their respective Predecessor Securities) are registered on such
Special Record Date; or

 

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

 

(d)           Payments of interest on the
Securities shall include interest accrued to but excluding the respective
Interest Payment Dates. Interest payments for the Securities shall be computed
and paid on the basis of a 360-day year and the actual number of days
elapsed in the relevant interest period.

 

(e)           Payment of principal of, premium, if
any, and interest on the Securities shall be made in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts. 
Payments of principal, premium, if any, and interest due at the Maturity
of such Securities shall be made at the Place of Payment upon surrender of such
Securities to the Paying Agent and payments of interest shall be made subject
to such surrender where applicable, by wire transfer at such place and to such
account at a banking institution in the United States as may be designated in
writing to the Paying Agent at least ten (10) Business Days prior to the date
for payment by the Person entitled thereto unless

 

24

 

proper written transfer instructions have not been
received by the relevant record date, in which case such payments shall be made
by check mailed to the address of such Person as such address shall appear in
the Security Register.  Notwithstanding
the foregoing, so long as the holder of this Security is the Property Trustee,
the payment of the principal of (and premium, if any) and interest (including
any overdue installment of interest and Additional Tax Sums, if any) on this
Security will be made at such place and to such account as may be designated by
the Property Trustee.

 

(f)            Subject to the foregoing provisions
of this Section 3.1, each Security delivered under this Indenture upon
transfer of or in exchange for or in lieu of any other Security shall carry the
rights to interest accrued and unpaid, and to accrue, that were carried by such
other Security.

 

SECTION 3.2.  Denominations.

 

The Securities
shall be in registered form without coupons and shall be issuable in minimum
denominations of $100,000 and any integral multiple of $1,000 in excess
thereof.

 

SECTION 3.3.  Execution, Authentication, Delivery and
Dating.

 

(a)           At any time and from time to time
after the execution and delivery of this Indenture, the Company may deliver
Securities in an aggregate principal amount (including all then Outstanding
Securities) not in excess of Twenty Million Six Hundred Twenty Thousand Dollars
($20,620,000) executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Securities. In authenticating such Securities,
and accepting the additional responsibilities under this Indenture in relation
to such Securities, the Trustee shall be entitled to receive, and shall be fully
protected in relying upon:

 

(i)  a copy of any Board
Resolution relating thereto; and

 

(ii)  an Opinion of Counsel
stating that: (1) such Securities, when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute, and the Indenture
constitutes, valid and legally binding obligations of the Company, each
enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles; (2) the Securities have been duly authorized and executed by the
Company and have been delivered to the Trustee for authentication in accordance
with this Indenture; (3) the Securities are not required to be registered under
the Securities Act; and (4) the Indenture is not required to be qualified under
the Trust Indenture Act.

 

(b)           The Securities shall be executed on
behalf of the Company by its Chairman of the Board, its Vice Chairman of the
Board, its Chief Executive Officer, its President or one of its Vice
Presidents. The signature of any of these officers on the Securities may be
manual or facsimile.  Securities bearing
the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that
such

 

25

 

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

 

(c)           No Security shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose, unless
there appears on such Security a certificate of authentication substantially in
the form provided for herein executed by the Trustee by the manual signature of
one of its authorized signatories, and such certificate upon any Security shall
be conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder. Notwithstanding the foregoing, if any
Security shall have been authenticated and delivered hereunder but never issued
and sold by the Company, and the Company shall deliver such Security to the
Trustee for cancellation as provided in Section 3.8, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

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

 

SECTION 3.4.  Global Securities.

 

(a)           Upon the election of the Holder after
the Original Issue Date, which election need not be in writing, the Securities
owned by such Holder shall be issued in the form of one or more Global
Securities registered in the name of the Depositary or its nominee. Each Global
Security issued under this Indenture shall be registered in the name of the
Depositary designated by the Company for such Global Security or a nominee
thereof and delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Security shall constitute a single Security for
all purposes of this Indenture.

 

(b)           Notwithstanding any other provision
in this Indenture, no Global Security may be exchanged in whole or in part for
Securities registered, and no transfer of a Global Security in whole or in part
may be registered, in the name of any Person other than the Depositary for such
Global Security or a nominee thereof unless (i) such Depositary advises the
Trustee and the Company in writing that such Depositary is no longer willing or
able to properly discharge its responsibilities as Depositary with respect to
such Global Security, and no qualified successor is appointed by the Company
within ninety (90) days of receipt by the Company of such notice, (ii) such
Depositary ceases to be a clearing agency registered under the Exchange Act and
no successor is appointed by the Company within ninety (90) days after
obtaining knowledge of such event, (iii) the Company executes and delivers to
the Trustee a Company Order stating that the Company elects to terminate the
book-entry system through the Depositary or (iv) an Event of Default shall have
occurred and be continuing.  Upon the
occurrence of any event specified in clause (i), (ii), (iii) or (iv) above, the
Trustee shall notify the Depositary and instruct the Depositary to notify all
owners of beneficial interests in such Global Security of the occurrence of
such event and of the availability of Securities to such owners of beneficial
interests requesting the same.  The
Trustee may conclusively rely, and be protected in relying, upon the written identification
of the owners of beneficial interests furnished by the Depositary, and shall
not be liable for any delay resulting from a delay by the Depositary.  Upon the issuance of such Securities and the
registration in the Securities Register of such Securities in the names of the
Holders of the beneficial interests therein, the Trustees shall recognize such
holders of beneficial interests as Holders.

 

26

 

(c)           If any Global Security is to be
exchanged for other Securities or canceled in part, or if another Security is
to be exchanged in whole or in part for a beneficial interest in any Global
Security, then either (i) such Global Security shall be so surrendered for
exchange or cancellation as provided in this Article III or (ii) the
principal amount thereof shall be reduced or increased by an amount equal to
the portion thereof to be so exchanged or canceled, or equal to the principal
amount of such other Security to be so exchanged for a beneficial interest
therein, as the case may be, by means of an appropriate adjustment made on the
records of the Securities Registrar, whereupon the Trustee, in accordance with
the Applicable Depository Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment of a Global Security by the Depositary,
accompanied by registration instructions, the Company shall execute and the
Trustee shall authenticate and deliver any Securities issuable in exchange for
such Global Security (or any portion thereof) in accordance with the
instructions of the Depositary. The Trustee shall not be liable for any delay
in delivery of such instructions and may conclusively rely on, and shall be
fully protected in relying on, such instructions.

 

(d)           Every Security authenticated and
delivered upon registration of transfer of, or in exchange for or in lieu of, a
Global Security or any portion thereof shall be authenticated and delivered in
the form of, and shall be, a Global Security, unless such Security is
registered in the name of a Person other than the Depositary for such Global
Security or a nominee thereof.

 

(e)           Securities distributed to holders of
Book-Entry Preferred Securities (as defined in the applicable Trust Agreement)
upon the dissolution of the Trust shall be distributed in the form of one or
more Global Securities registered in the name of a Depositary or its nominee,
and deposited with the Securities Registrar, as custodian for such Depositary,
or with such Depositary, for credit by the Depositary to the respective
accounts of the beneficial owners of the Securities represented thereby (or
such other accounts as they may direct). 
Securities distributed to holders of Preferred Securities other than
Book-Entry Preferred Securities upon the dissolution of the Trust shall not be
issued in the form of a Global Security or any other form intended to
facilitate book-entry trading in beneficial interests in such Securities.

 

(f)            The Depositary or its nominee, as
the registered owner of a Global Security, shall be the Holder of such Global
Security for all purposes under this Indenture and the Securities, and owners
of beneficial interests in a Global Security shall hold such interests pursuant
to the Applicable Depository Procedures. Accordingly, any such owner’s
beneficial interest in a Global Security shall be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Depositary Participants.  The Securities Registrar and the Trustee
shall be entitled to deal with the Depositary for all purposes of this
Indenture relating to a Global Security (including the payment of principal and
interest thereon and the giving of instructions or directions by owners of
beneficial interests therein and the giving of notices) as the sole Holder of
the Security and shall have no obligations to the owners of beneficial
interests therein.  Neither the Trustee
nor the Securities Registrar shall have any liability in respect of any
transfers effected by the Depositary.

 

(g)           The rights of owners of beneficial
interests in a Global Security shall be exercised only through the Depositary
and shall be limited to those established by law and agreements between such
owners and the Depositary and/or its Depositary Participants.

 

27

 

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

 

SECTION 3.5.  Registration, Transfer and Exchange Generally.

 

(a)           The Trustee shall cause to be kept at
the Corporate Trust Office a register (the “Securities Register”) in which the registrar
and transfer agent with respect to the Securities (the “Securities Registrar”), subject to such reasonable
regulations as it may prescribe, shall provide for the registration of
Securities and of transfers and exchanges of Securities. The Trustee shall at
all times also be the Securities Registrar. 
The provisions of Article VI shall apply to the Trustee in its
role as Securities Registrar.

 

(b)           Subject to compliance with Section
2.2(b), upon surrender for registration of transfer of any Security at the
offices or agencies of the Company designated for that 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 Securities of any
authorized denominations of like tenor and aggregate principal amount.

 

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

 

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

 

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

 

(f)            No service charge shall be made to a
Holder for any transfer or exchange of Securities, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of Securities.

 

28

 

(g)           Neither the Company nor the Trustee
shall be required pursuant to the provisions of this Section 3.5 (g):
(i) to issue, register the transfer of or exchange any Security during a period
beginning at the opening of business fifteen (15) days before the day of
selection for redemption of Securities pursuant to Article XI and ending
at the close of business on the day of mailing of the notice of redemption or
(ii) to register the transfer of or exchange any Security so selected for
redemption in whole or in part, except, in the case of any such Security to be
redeemed in part, any portion thereof not to be redeemed.

 

(h)           The Company shall designate an office
or offices or agency or agencies where Securities may be surrendered for
registration or transfer or exchange. 
The Company initially designates the Corporate Trust Office as its
office and agency for such purposes.  The
Company shall give prompt written notice to the Trustee and to the Holders of
any change in the location of any such office or agency.

 

SECTION 3.6.  Mutilated, Destroyed, Lost and Stolen
Securities.

 

(a)           If any mutilated Security is
surrendered to the Trustee together with such security or indemnity as may be
required by the Trustee to save the Company and the Trustee harmless, the
Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of like tenor and aggregate principal amount
and bearing a number not contemporaneously outstanding.

 

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

 

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

 

(d)           Upon the issuance of any new Security
under this Section 3.6, 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.

 

(e)           Every new Security issued pursuant to
this Section 3.6 in lieu of any mutilated, destroyed, lost or stolen
Security shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, destroyed, lost or stolen Security shall
be at any time enforceable by anyone, and shall be entitled to all the benefits
of this Indenture equally and proportionately with any and all other Securities
duly issued hereunder.

 

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

 

29

 

SECTION 3.7.  Persons Deemed Owners.

 

The Company, the
Trustee and any agent of the Company or the Trustee shall treat the Person in
whose name any Security is registered as the owner of such Security for the
purpose of receiving payment of principal of and any interest on such Security
and for all other purposes whatsoever, and neither the Company, the Trustee nor
any agent of the Company or the Trustee shall be affected by notice to the
contrary.

 

SECTION 3.8.  Cancellation.

 

All Securities
surrendered for payment, redemption, transfer or exchange shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee, and any such
Securities and Securities surrendered directly to the Trustee for any such
purpose shall be promptly canceled by it. The Company may at any time deliver
to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder that the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be promptly canceled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section 3.8, except as expressly
permitted by this Indenture. All canceled Securities shall be retained by the
Trustee in accordance with its customary practices.

 

SECTION 3.9.  Deferrals of Interest Payment Dates.

 

(a)           So long as no Event of Default has
occurred and is continuing, the Company shall have the right, at any time and
from time to time during the term of the Security, to defer the payment of
interest on the Securities for a period of up to twenty (20) consecutive quarterly interest payment periods (each such period,
an “Extension
Period”), during which Extension Period(s), the
Company shall have the right to make no payments or partial payments of
interest on any Interest Payment Date (except any Additional Tax Sums that
otherwise may be due and payable).  No
Extension Period shall end on a date other than an Interest Payment Date and no
Extension Period shall extend beyond the Stated Maturity of the principal of
the Securities.  No interest shall be due
and payable during an Extension Period, except at the end thereof, but each
installment of interest that would otherwise have been due and payable during
such Extension Period shall bear Additional Interest (to the extent payment of
such interest would be legally enforceable) at the rate equal to a fixed rate of 8.595% per annum through the
interest payment date in December 15, 2010 and a variable rate equal to
LIBOR plus 3.65% per annum thereafter, compounded quarterly, from the dates on which amounts would have
otherwise been due and payable until paid or until funds for the payment
thereof have been made available for payment. 
At the end of any such Extension Period, the Company shall pay all
interest then accrued and unpaid on the Securities together with such Additional
Interest.  Prior to the termination of
any such Extension Period, the Company may extend such Extension Period and
further defer the payment of interest; provided, that (i) all such
previous and further extensions comprising such Extension Period do not exceed twenty (20) quarterly interest
payment periods, (ii) no Extension Period shall end on a date other than an
Interest Payment Date and (iii) no Extension Period shall extend beyond the
Stated Maturity of the principal of the Securities.  Upon the termination of any such Extension
Period and upon the payment of all accrued and unpaid interest and any
Additional Interest then due on any Interest Payment Date, the Company may
elect to begin a new Extension Period; provided, that (i) such Extension
Period does not exceed twenty (20)
quarterly interest
payment periods, (ii) no Extension Period shall end on a date other than an

 

30

 

Interest Payment Date and (iii) no Extension Period
shall extend beyond the Stated Maturity of the principal of the
Securities.  The Company shall give the
Holders of the Securities and the Trustee written notice of its election to
begin any such Extension Period at least one Business Day prior to the next
succeeding Interest Payment Date on which interest on the Securities would be
payable but for such deferral or, so long as any Securities are held by the
Trust, at least one Business Day prior to the earlier of (i) the next
succeeding date on which Distributions on the Preferred Securities of such
Trust would be payable but for such deferral and (ii) the date on which the
Property Trustee of such Trust is required to give notice to any securities
exchange or other applicable self-regulatory organization or to holders of such
Preferred Securities of the record date for the payment of such Distributions.

 

(b)           In connection with any such Extension
Period, the Company shall be subject to the restrictions set forth in Section
10.6(a).

 

SECTION 3.10.  Right of Set-Off.

 

Notwithstanding
anything to the contrary herein, the Company shall have the right to set off
any payment it is otherwise required to make in respect of any Security to the
extent the Company has theretofore made, or is concurrently on the date of such
payment making, a payment under the Guarantee Agreement relating to such
Security or to a holder of Preferred Securities pursuant to an action
undertaken under Section 5.8 of this Indenture.

 

SECTION 3.11.  Agreed Tax Treatment.

 

Each Security
issued hereunder shall provide that the Company and, by its acceptance or
acquisition of a Security or a beneficial interest therein, the Holder of, and
any Person that acquires a direct or indirect beneficial interest in, such
Security, intend and agree to treat such Security as indebtedness of the
Company for United States Federal, state and local tax purposes and to treat
the Preferred Securities (including but not limited to all payments and
proceeds with respect to the Preferred Securities) as an undivided beneficial
ownership interest in the Securities (and any other Trust property) (and
payments and proceeds therefrom, respectively) for United States Federal, state
and local tax purposes.  The provisions
of this Indenture shall be interpreted to further this intention and agreement
of the parties.

 

SECTION 3.12.  CUSIP Numbers.

 

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

 

31

 

ARTICLE IV

Satisfaction and Discharge

 

SECTION 4.1.  Satisfaction and Discharge of Indenture.

 

This Indenture
shall, upon Company Request, cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein
expressly provided for and as otherwise provided in this Section 4.1)
and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture,
when

 

(a)           either

 

(i) all Securities
theretofore authenticated and delivered (other than (A) Securities that have
been mutilated, destroyed, lost or stolen and that have been replaced or paid
as provided in Section 3.6 and (B) Securities for whose payment money
has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust as
provided in Section 10.2) have been delivered to the Trustee for
cancellation; or

 

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

 

(A)          have
become due and payable, or

 

(B)           will
become due and payable at their Stated Maturity within one year of the date of
deposit, or

 

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

 

and the Company, in the case of subclause
(ii)(A), (B) or (C) above, has deposited or caused to be deposited with the
Trustee as trust funds in trust for such purpose (x) an amount in the currency
or currencies in which the Securities are payable, (y) Government Obligations
which through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than the due date
of any payment, money in an amount or (z) a combination thereof, in each case
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge the entire indebtedness on such Securities
not theretofore delivered to the Trustee for cancellation, for principal and
any premium and interest (including any Additional Interest) to the date of
such deposit (in the case of Securities that have become due and payable) or to
the Stated Maturity (or any date of principal repayment upon early maturity) or
Redemption Date, as the case may be;

 

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

 

32

 

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

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 6.6, the obligations of the Company
to any Authenticating Agent under Section 6.11 and, if money shall have
been deposited with the Trustee pursuant to subclause (a)(ii) of this Section
4.1, the obligations of the Trustee under Section 4.2 and Section
10.2(e) shall survive.

 

SECTION 4.2.  Application of Trust Money.

 

Subject to the
provisions of Section 10.2(e), all money deposited with the Trustee
pursuant to Section 4.1 shall be held in trust and applied by the
Trustee, in accordance with the provisions of the Securities and this
Indenture, to the payment in accordance with Section 3.1, 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 any premium and interest (including any Additional Interest) for
the payment of which such money or obligations have been deposited with or
received by the Trustee.  Moneys held by
the Trustee under this Section 4.2 shall not be subject to the claims of
holders of Senior Debt under Article XII.

 

ARTICLE V

Remedies

 

SECTION 5.1.  Events of Default.

 

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

 

(a)           default in the payment of any
interest upon any Security, including any Additional Interest in respect
thereof, when it becomes due and payable, and continuance of such default for a
period of thirty (30) days (subject to the deferral of any due date in the case
of an Extension Period); or

 

(b)           default in the payment of the
principal of or any premium on any Security at its Maturity; or

 

(c)           default in the performance, or
breach, of any covenant or warranty of the Company in this Indenture and
continuance of such default or breach for a period of thirty (30) 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 twenty
five percent (25%) in aggregate principal amount of the Outstanding Securities
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;

 

33

 

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

 

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

 

(f)            the Trust shall have voluntarily or
involuntarily liquidated, dissolved, wound-up its business or otherwise
terminated its existence, except in connection with (1) the distribution
of the Securities to holders of the Preferred Securities in liquidation of
their interests in the Trust, (2) the redemption of all of the outstanding
Preferred Securities or (3) certain mergers, consolidations or
amalgamations, each as and to the extent permitted by the Trust Agreement.

 

SECTION 5.2.  Acceleration of Maturity; Rescission and
Annulment.

 

(a)           If an Event of Default occurs and is
continuing, then and in every such case the Trustee or the Holders of not less
than twenty five percent (25%) in aggregate principal amount of the Outstanding
Securities may declare the principal amount of all the Securities to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by Holders), provided, that if, upon an Event of Default, the Trustee or
the Holders of not less than twenty five percent (25%) in principal amount of
the Outstanding Securities fail to declare the principal of all the Outstanding
Securities to be immediately due and payable, the holders of at least twenty
five percent (25%) in aggregate Liquidation Amount of the Preferred Securities
then outstanding shall have the right to make such declaration by a notice in
writing to the Property Trustee, the Company and the Trustee; and upon any such
declaration the principal amount of and the accrued interest (including any
Additional Interest) on all the Securities shall become immediately due and
payable.

 

(b)           At any time after such a declaration
of acceleration with respect to Securities has been made and before a judgment
or decree for payment of the money due has been obtained by the Trustee as
hereinafter provided in this Article V, the Holders of a majority in
aggregate principal amount of the Outstanding Securities, by written

 

34

 

notice to the Indenture Trustee, or the holders of a
majority in aggregate Liquidation Amount of the Preferred Securities, by
written notice to the Property Trustee, the Company and the Trustee, may
rescind and annul such declaration and its consequences if:

 

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

 

(A)          all
overdue installments of interest on all Securities,

 

(B)           any
accrued Additional Interest on all Securities,

 

(C)           the
principal of and any premium on any Securities that have become due otherwise
than by such declaration of acceleration and interest (including any Additional
Interest) thereon at the rate borne by the Securities, and

 

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

 

(ii)  all Events of Default with
respect to Securities, other than the non-payment of the principal of
Securities that has become due solely by such acceleration, have been cured or
waived as provided in Section 5.13;

 

provided,
that if the Holders of such Securities fail to annul such declaration and waive
such default, the holders of not less than a majority in aggregate Liquidation
Amount of the Preferred Securities then outstanding shall also have the right
to rescind and annul such declaration and its consequences by written notice to
the Property Trustee, the Company and the Trustee, subject to the satisfaction
of the conditions set forth in paragraph (b) of this Section 5.2.  No such rescission shall affect any
subsequent default or impair any right consequent thereon.

 

SECTION 5.3.  Collection of Indebtedness and Suits for
Enforcement by Trustee. 

 

(a)           The Company covenants that if:

 

(i)  default is made in the
payment of any installment of interest (including any Additional Interest) on
any Security when such interest becomes due and payable and such default
continues for a period of thirty (30) days, or

 

(ii)  default is made in the
payment of the principal of and any premium on any Security at the Maturity
thereof,

 

the Company will,
upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders
of such Securities, the whole amount then due and payable on such Securities
for principal and any premium and interest (including any Additional Interest)
and, in addition thereto, all amounts owing the Trustee under Section 6.6.

 

(b)           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 Securities and collect the moneys adjudged or decreed to be payable
in the manner provided by

 

35

 

law out of the property of the Company or any other
obligor upon the Securities, wherever situated.

 

(c)           If an Event of Default with respect
to Securities occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders of
Securities 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 5.4.  Trustee May File Proofs of Claim.

 

In case of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or similar judicial proceeding relative to the Company
(or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized hereunder in order to have
claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to first 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 owing the Trustee, any
predecessor Trustee and other Persons under Section 6.6.

 

SECTION 5.5.  Trustee May Enforce Claim Without Possession
of Securities.

 

All rights of
action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, subject to Article XII
and after provision for the payment of all the amounts owing the Trustee, any
predecessor Trustee and other Persons under Section 6.6, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

 

SECTION 5.6.  Application of Money Collected.

 

Any money or
property collected or to be applied by the Trustee with respect to the
Securities pursuant to this Article V 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 or property on account of principal or any premium
or interest (including any Additional Interest), upon presentation of the
Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

 

FIRST: To the
payment of all amounts due the Trustee, any predecessor Trustee and other
Persons under Section 6.6;

 

36

 

SECOND: To the
payment of all Senior Debt of the Company if and to the extent required by Article
XII;

 

THIRD:  Subject to Article XII, to the payment
of the amounts then due and unpaid upon the Securities for principal and any
premium and interest (including any Additional Interest) 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
the Securities for principal and any premium and interest (including any
Additional Interest), respectively; and

 

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

 

SECTION 5.7.  Limitation on Suits.

 

Subject to Section
5.8, no Holder of any Securities shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture or for the
appointment of a custodian, receiver, assignee, trustee, liquidator,
sequestrator (or other similar official) or for any other remedy hereunder,
unless:

 

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

 

(b)           the Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

 

(c)           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;

 

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

 

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

 

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 itself of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Securities, 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 such Holders.

 

SECTION 5.8.  Unconditional Right of Holders to Receive
Principal, Premium, if any, and Interest; Direct
Action by Holders of Preferred Securities.

 

Notwithstanding
any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the
principal of and any premium on such Security at its Maturity and payment of
interest (including any Additional Interest) on such Security when due and
payable and to institute suit for the enforcement of any such payment, and such
right shall not be impaired without the consent of such Holder. Any

 

37

 

registered holder of the Preferred Securities shall have the right,
upon the occurrence of an Event of Default described in Section 5.1(a)
or Section 5.1(b), to institute a suit directly against the Company for
enforcement of payment to such holder of principal of and any premium and
interest (including any Additional Interest) on the Securities having a
principal amount equal to the aggregate Liquidation Amount of the Preferred
Securities held by such holder.

 

SECTION 5.9.  Restoration of Rights and Remedies.

 

If the Trustee,
any Holder or any holder of Preferred Securities 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, such Holder or such holder of Preferred Securities, then and in
every such case the Company, the Trustee, such Holders and such holder of
Preferred Securities shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee, such Holder and such holder
of Preferred Securities shall continue as though no such proceeding had been
instituted.

 

SECTION 5.10.  Rights and Remedies Cumulative.

 

Except as
otherwise provided in Section 3.6(f), no right or remedy herein
conferred upon or reserved to the Trustee or 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 5.11.  Delay or Omission Not Waiver.

 

No delay or
omission of the Trustee, any Holder of any Securities or any holder of any
Preferred Security to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein.  Every right and remedy given by this Article
V or by law to the Trustee or to the Holders and the right and remedy given
to the holders of Preferred Securities by Section 5.8 may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee, the
Holders or the holders of Preferred Securities, as the case may be.

 

SECTION 5.12.  Control by Holders.

 

The Holders of not
less than a majority in aggregate principal amount of the Outstanding Securities
(or, as the case may be, the holders of a majority in aggregate Liquidation
Amount of Preferred Securities)  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; provided, that:

 

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

 

(b)           the Trustee may take any other action
deemed proper by the Trustee that is not inconsistent with such direction, and

 

38

 

(c)           subject to the provisions of Section
6.2, the Trustee shall have the right to decline to follow such direction
if a Responsible Officer or Officers of the Trustee shall, in good faith, reasonably
determine that the proceeding so directed would be unjustly prejudicial to the
Holders not joining in any such direction or would involve the Trustee in
personal liability.

 

SECTION 5.13.  Waiver of Past Defaults.

 

(a)           The Holders of not less than a
majority in aggregate principal amount of the Outstanding Securities or the
holders of not less than a majority in aggregate Liquidation Amount of the
Preferred Securities may waive any past Event of Default hereunder and its
consequences except an Event of Default:

 

(i)  in the payment of the
principal of or any premium or interest (including any Additional Interest) on
any Security (unless such Event of Default has been cured and the Company has
paid to or deposited with the Trustee a sum sufficient to pay all installments
of interest (including any Additional Interest) due and past due and all
principal of and any premium on all Securities due otherwise than by
acceleration), or

 

(ii)  in respect of a covenant or
provision hereof that under Article IX cannot be modified or amended
without the consent of each Holder of any Outstanding Security.

 

(b)           Any such waiver shall be deemed to be
on behalf of the Holders of all the Securities or, in the case of a waiver by
holders of Preferred Securities issued by such Trust, by all holders of
Preferred Securities.

 

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

 

SECTION 5.14.  Undertaking for Costs.

 

All parties to
this Indenture agree, and each Holder of any Security by his or her acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken or omitted
by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section 5.14 shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than ten percent (10%) in aggregate
principal amount of the Outstanding Securities, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of or any
premium on the Security after the Stated Maturity or any interest (including
any Additional Interest) on any Security after it is due and payable.

 

39

 

SECTION 5.15.  Waiver of Usury, 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 usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

 

ARTICLE VI

The Trustee

 

SECTION 6.1.  Corporate Trustee Required.

 

There shall at all
times be a Trustee hereunder with respect to the Securities.  The Trustee shall be a corporation organized
and doing business under the laws of the United States or of any state thereof,
authorized to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000, subject to supervision or examination by
Federal or state authority and having an office within the United States. If
such corporation publishes reports of condition at least annually, pursuant to
law or to the requirements of such supervising or examining authority, then,
for the purposes of this Section 6.1, 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 6.1, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article VI.

 

SECTION 6.2.  Certain Duties and Responsibilities.

 

Except during the
continuance of an Event of Default:

 

(i)  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

 

(ii)  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; provided,
that in the case of any such certificates or opinions that by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not they
substantially conform on their face to the requirements of this Indenture.

 

(b)           If an Event of Default known to the
Trustee has occurred and is continuing, the Trustee shall, prior to the receipt
of directions, if any, from the Holders of at least a majority in aggregate
principal amount of the Outstanding Securities (or, if applicable, from the
holders of at least a majority in aggregate Liquidation Amount of Preferred
Securities), exercise such of the

 

40

 

rights and powers vested in it by this Indenture, and
use the same degree of care and skill in its exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person’s
own affairs.

 

(c)           Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it. 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
6.2.  To the extent that, at law or
in equity, the Trustee has duties and liabilities relating to the Holders, the
Trustee shall not be liable to any Holder or any holder of Preferred Securities
for the Trustee’s good faith reliance on the provisions of this Indenture.  The provisions of this Indenture, to the
extent that they restrict the duties and liabilities of the Trustee otherwise
existing at law or in equity, are agreed by the Company and the Holders and the
holders of Preferred Securities to replace such other duties and liabilities of
the Trustee.

 

(d)           No provisions of this Indenture shall
be construed to relieve the Trustee from liability with respect to matters that
are within the authority of the Trustee under this Indenture for its own
negligent action, negligent failure to act or willful misconduct, except that:

 

(i)  the Trustee shall not be
liable for any error or judgment made in good faith by an authorized officer of
the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

 

(ii)  the Trustee shall not be
liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of the Holders of at least a majority in
aggregate principal amount of the Outstanding Securities (or, as the case may
be, the holders of a majority in aggregate Liquidation Amount of Preferred
Securities) relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee under this Indenture; and

 

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

 

(e)           If at any time the Trustee hereunder
is not the same Person as the Property Trustee under the Trust Agreement:

 

(i)  whenever a reference is made
herein to the dissolution, termination or liquidation of the Trust, the Trustee
shall be entitled to assume that no such dissolution, termination, or
liquidation has occurred so long as the Securities are or continue to be
registered in the name of such Property Trustee, and the Trustee shall be
charged with notice or knowledge of such dissolution, termination or
liquidation only upon written notice thereof given to the Trustee by the
Depositor under the Trust Agreement; and

 

41

 

(ii)  the Trustee shall not be
charged with notice or knowledge that any Person is a holder of Preferred
Securities or Common Securities issued by the Trust or whether any group of
holders of Preferred Securities constitutes any specified percentage of all
outstanding Preferred Securities for any purpose under this Indenture, unless
and until the Trustee is furnished with a list of holders by such Property
Trustee and the aggregate Liquidation Amount of the Preferred Securities then
outstanding.  The Trustee may
conclusively rely and shall be protected in relying on such list.

 

(f)            Notwithstanding Section 1.10,
the Trustee shall not, and shall not be deemed to, owe any fiduciary duty to
the holders of any of the Trust Securities issued by the Trust and shall not be
liable to any such holder (other than for the willful misconduct or negligence
of the Trustee) if the Trustee in good faith (i) pays over or distributes to a
registered Holder of the Securities or to the Company or to any other Person,
cash, property or securities to which such holders of such Trust Securities
shall be entitled or (ii) takes any action or omits to take any action at the
request of the Holder of such Securities. 
Nothing in this paragraph shall affect the obligation of any other such
Person to hold such payment for the benefit of, and to pay such amount over to,
such holders of Preferred Securities or Common Securities or their
representatives.

 

SECTION 6.3.  Notice of Defaults.

 

Within ninety (90)
days after the occurrence of any default actually known to the Trustee, the
Trustee shall give the Holders notice of such default unless such default shall
have been cured or waived;  provided,  that in the case of any
default of the character specified in Section 5.1(c), no such notice to
Holders shall be given until at least thirty (30) days after the occurrence
thereof. For the purpose of this Section 6.3, the term “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.

 

SECTION 6.4.  Certain Rights of Trustee.

 

Subject to the
provisions of Section 6.2:

 

(a)           the Trustee may conclusively rely and
shall be fully protected in acting or refraining from acting in good faith and
in accordance with the terms hereof 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)           if (i) in performing its duties under
this Indenture the Trustee is required to decide between alternative courses of
action, (ii) in construing any of the provisions of this Indenture the Trustee
finds ambiguous or inconsistent with any other provisions contained herein or
(iii) the Trustee is unsure of the application of any provision of this
Indenture, then, except as to any matter as to which the Holders are entitled
to decide under the terms of this Indenture, the Trustee shall deliver a notice
to the Company requesting the Company’s written instruction as to the course of
action to be taken and the Trustee shall take such action, or refrain from
taking such action, as the Trustee shall be instructed in writing to take, or
to refrain from taking, by the Company; provided, that if the Trustee
does not receive such instructions from the Company within ten Business Days
after it has delivered such notice or such reasonably shorter period of

 

42

 

time set forth in such notice the Trustee may, but
shall be under no duty to, take such action, or refrain from taking such
action, as the Trustee shall deem advisable and in the best interests of the
Holders, in which event the Trustee shall have no liability except for its own
negligence, bad faith or willful misconduct;

 

(c)           any request or direction of the
Company shall be sufficiently evidenced by a Company Request or Company Order
and any resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;

 

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

 

(e)           the Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders or any holder of
Preferred Securities pursuant to this Indenture, unless such Holders (or such
holders of Preferred Securities) shall have offered to the Trustee security or indemnity
reasonably satisfactory to it against the costs, expenses (including reasonable
attorneys’ fees and expenses) and liabilities that might be incurred by it in
compliance with such request or direction, including reasonable advances as may
be requested by the Trustee;

 

(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, indenture, note or other paper or document,
but the Trustee in its discretion may make such inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney;

 

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

 

(h)           whenever in the administration of
this Indenture the Trustee shall deem it desirable to receive instructions with
respect to enforcing any remedy or right or taking any other action with
respect to enforcing any remedy or right hereunder, the Trustees (i) may
request instructions from the Holders (which instructions may only be given by
the Holders of the same aggregate principal amount of Outstanding Securities as
would be entitled to direct the Trustee under this Indenture in respect of such
remedy, right or action), (ii) may refrain from enforcing such remedy or right
or taking such action until such instructions are received and (iii) shall be
protected in acting in accordance with such instructions;

 

(i)            except as otherwise expressly
provided by this Indenture, the Trustee shall not be under any obligation to
take any action that is discretionary under the provisions of this Indenture;

 

43

 

(j)            without prejudice to any other
rights available to the Trustee under applicable law, when the Trustee incurs
expenses or renders services in connection with any bankruptcy, insolvency or
other proceeding referred to in clauses (d) or (e) of the definition of Event
of Default, such expenses (including legal fees and expenses of its agents and
counsel) and the compensation for such services are intended to constitute
expenses of administration under any bankruptcy laws or law relating to
creditors rights generally;

 

(k)           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, conclusively rely upon an Officers’
Certificate addressing such matter, which, upon receipt of such request, shall
be promptly delivered by the Company;

 

(l)            the Trustee shall not be charged
with knowledge of any Event of Default unless either (i) a Responsible Officer
of the Trustee shall have actual knowledge or (ii) the Trustee shall have
received written notice thereof from the Company or a Holder; and

 

(m)          in the event that the Trustee is also
acting as Paying Agent, Authenticating Agent or Securities Registrar hereunder,
the rights and protections afforded to the Trustee pursuant to this Article
VI shall also be afforded such Paying Agent, Authenticating Agent,  or 
Securities Registrar.

 

SECTION 6.5.  May Hold Securities.

 

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

 

SECTION 6.6.  Compensation; Reimbursement; Indemnity.

 

(a)           The Company agrees

 

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

 

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

 

(iii)  to the fullest extent
permitted by applicable law, to indemnify the Trustee and its Affiliates, and
their officers, directors, shareholders, agents, representatives and employees
for, and to hold them harmless against, any loss, damage, liability, tax (other
than income, franchise or other taxes imposed on amounts paid pursuant to (i)
or (ii)

 

44

 

hereof),
penalty, expense or claim of any kind or nature whatsoever incurred without
negligence, bad faith or willful misconduct on its part arising out of or in
connection with the acceptance or administration of this trust or the
performance of the Trustee’s duties hereunder, including the costs and expenses
of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.

 

(b)           To secure the Company’s payment
obligations in this Section 6.6, the Company hereby grants and pledges
to the Trustee and the Trustee shall have a lien prior to the Securities on all
money or property held or collected by the Trustee, other than money or
property held in trust to pay principal and interest on particular
Securities.  Such lien shall survive the
satisfaction and discharge of this Indenture or the resignation or removal of
the Trustee.

 

(c)           The obligations of the Company under
this Section 6.6 shall survive the satisfaction and discharge of this Indenture
and the earlier resignation or removal of the Trustee.

 

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

 

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

 

SECTION 6.7.  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
VI shall become effective until the acceptance of appointment by the
successor Trustee under Section 6.8.

 

(b)           The Trustee may resign at any time by
giving written notice thereof to the Company.

 

(c)           Unless an Event of Default shall have
occurred and be continuing, the Trustee may be removed at any time by the
Company by a Board Resolution.  If an
Event of Default shall have occurred and be continuing, the Trustee may be
removed by Act of the Holders of a majority in aggregate principal amount of
the Outstanding Securities, delivered to the Trustee and to the Company.

 

(d)           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 reason, at a time when no Event of Default shall have
occurred and be continuing, the Company, by a Board Resolution, shall promptly
appoint a successor Trustee, and such successor Trustee and the retiring
Trustee shall comply with the applicable requirements of Section 6.8. 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 reason, at

 

45

 

a time when an Event of Default shall have occurred
and be continuing, the Holders, by Act of the Holders of a majority in
aggregate principal amount of the Outstanding Securities, shall promptly
appoint a successor Trustee, and such successor Trustee and the retiring
Trustee shall comply with the applicable requirements of Section 6.8. If
no successor Trustee shall have been so appointed by the Company or the Holders
and accepted appointment within sixty (60) days after the giving of a notice of
resignation by the Trustee or the removal of the Trustee in the manner required
by Section 6.8, any Holder who has been a bona fide Holder of a Security
for at least six months may, on behalf of such Holder and all others similarly
situated, and any resigning Trustee may, at the expense of the Company,
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

 

(e)           The Company shall give notice to all
Holders in the manner provided in Section 1.6 of each resignation and
each removal of the Trustee and each appointment of a successor Trustee.  Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

 

SECTION 6.8.  Acceptance of Appointment by Successor.

 

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

 

(b)           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 rights, powers and
trusts referred to in paragraph (a) of this Section 6.8.

 

(c)           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 VI.

 

SECTION 6.9.  Merger, Conversion, Consolidation or
Succession to Business.

 

Any Person into
which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding
to all or substantially all of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto, provided,
that such Person shall be otherwise qualified and eligible under this Article
VI. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation or as otherwise provided above in this Section 6.9 to
such authenticating Trustee may adopt such authentication and deliver the
Securities so authenticated, and in case any Securities shall not have been
authenticated, any successor to the Trustee may

 

46

 

authenticate such Securities either in the name of any predecessor
Trustee or in the name of such successor Trustee, and in all cases the
certificate of authentication shall have the full force which it is provided
anywhere in the Securities or in this Indenture that the certificate of the
Trustee shall have.

 

SECTION 6.10.  Not Responsible for Recitals or Issuance of
Securities.

 

The recitals
contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither
the Trustee nor any Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of the Securities or the proceeds thereof.

 

SECTION 6.11.  Appointment of Authenticating Agent.

 

(a)           The Trustee may appoint an
Authenticating Agent or Agents with respect to the Securities, which shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 3.6, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, or of any State or Territory thereof or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by Federal or state authority. If such
Authenticating Agent publishes reports of condition at least annually pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section 6.11 the combined capital and surplus
of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section 6.11, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section
6.11.

 

(b)           Any Person into which an
Authenticating Agent may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any
Person succeeding to all or substantially all of the corporate trust business of
an Authenticating Agent shall be the successor Authenticating Agent hereunder,
provided such Person shall be otherwise eligible under this Section 6.11,
without the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.

 

(c)           An Authenticating Agent may resign at
any time by giving written notice thereof to the Trustee and to the Company.
The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the

 

47

 

Company. Upon receiving such a notice of resignation
or upon such a termination, or in case at any time such Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section
6.11, the Trustee may appoint a successor Authenticating Agent eligible
under the provisions of this Section 6.11, which shall be acceptable to
the Company, and shall give notice of such appointment to all Holders. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent.

 

(d)           The Company agrees to pay to each
Authenticating Agent from time to time reasonable compensation for its services
under this Section 6.11 in such amounts as the Company and the
Authenticating Agent shall agree from time to time.

 

(e)           If an appointment of an
Authenticating Agent is made pursuant to this Section 6.11, the
Securities may have endorsed thereon, in addition to the Trustee’s certificate
of authentication, an alternative certificate of authentication in the
following form:

 

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

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMorgan
  Chase Bank, National Association,

  not in its individual capacity, but solely as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authenticating
  Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized signatory

  	
   

  

 

 

ARTICLE VII

Holder’s Lists and Reports by Company

 

SECTION 7.1.  Company to Furnish Trustee Names and
Addresses of Holders.

 

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

 

(a)           semiannually, on or before June 30
and December 31 of each year, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders as of a date not
more than fifteen (15) days prior to the delivery thereof, and

 

(b)           at such other times as the Trustee
may request in writing, within thirty (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 fifteen (15) days prior to the time such list is furnished,

 

48

 

in each case to
the extent such information is in the possession or control of the Company and
has not otherwise been received by the Trustee in its capacity as Securities
Registrar.

 

SECTION 7.2.  Preservation of Information, Communications
to Holders.

 

(a)           The Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in Section
7.1 and the names and addresses of Holders received by the Trustee in its
capacity as Securities Registrar. The Trustee may destroy any list furnished to
it as provided in Section 7.1 upon receipt of a new list so furnished.

 

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

 

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

 

SECTION 7.3.  Reports by Company.

 

(a)           The Company shall furnish to
the Holders and to prospective purchasers of Securities, upon their request,
the information required to be furnished pursuant to Rule 144A(d)(4) under the
Securities Act.  The Company shall furnish
to the Trustee and, so long as the Property Trustee holds any of the
Securities, the Company shall furnish to the Property Trustee, Statutory
Financial Statements promptly following their filing with the Applicable
Insurance Regulatory Authority.  The delivery requirement set forth
in the preceding sentence may be satisfied by compliance with Section 7.3(b)
hereof.

 

(b)           The Company shall furnish to each of
(i) the Trustee, (ii) the Holders and to subsequent holders of Securities,
(iii) Cohen Bros. Financial Management LLC, 1818 Market Street, 28th
Street, Philadelphia, Pennsylvania 13103), or such other address as designated
by Cohen Bros. Financial Management LLC) and (iv) any beneficial owner of the
Securities reasonably identified to the Company (which identification may be
made either by such beneficial owner or by Cohen Bros. Financial Management
LLC), a duly completed and executed certificate substantially and substantively
in the form attached hereto as Exhibit A, including the financial
statements referenced in such Exhibit, which certificate and financial
statements shall be so furnished by the Company not later than forty-five (45)
days after the end of each of the first three fiscal quarters of each fiscal
year of the Company and not later than ninety (90) days after the end of each
fiscal year of the Company.  The delivery
requirements under this Section 7.3(b) may be satisfied by compliance with
Section 8.16(b) of the Trust Agreement.

 

(c)           If the Company intends to file its
annual and quarterly information with the Securities and Exchange Commission
(the “Commission”) in electronic
form pursuant to Regulation S-T of the Commission using the Commission’s
Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system, the Company shall notify the Trustee in the
manner prescribed herein of each such annual and quarterly filing.  The Trustee is hereby authorized and directed
to

 

49

 

access the EDGAR system for purposes of retrieving the
financial information so filed. 
Compliance with the foregoing shall constitute delivery by the Company
of its financial statements to the Trustee in compliance with the provisions of
Section 314(a) of the Trust Indenture Act, if applicable.  The Trustee shall have no duty to search for
or obtain any electronic or other filings that the Company makes with the
Commission, regardless of whether such filings are periodic, supplemental or
otherwise.  Delivery of reports,
information and documents to the Trustee pursuant to this Section 7.3(c)
shall be solely for purposes of compliance with this Section 7.3(c) and,
if applicable, with Section 314(a) of the Trust Indenture Act.  The Trustee’s receipt of such reports,
information and documents shall not constitute notice to it of the content
thereof or any matter determinable from the content thereof, including the
Company’s compliance with any of its covenants hereunder, as to which the
Trustee is entitled to rely upon Officers’ Certificates.

 

ARTICLE VIII

Consolidation, Merger, Conveyance, Transfer or Lease

 

SECTION 8.1.  Company May Consolidate, Etc., Only on
Certain Terms.

 

The Company shall
not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, and
no Person shall consolidate with or merge into the Company or convey, transfer
or lease its properties and assets substantially as an entirety to the Company,
unless:

 

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

 

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

 

(c)           the Company has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction, any
such supplemental indenture comply with this Article VIII and that all
conditions precedent herein provided for relating to such transaction have been
complied with; and the Trustee may rely upon such Officers’ Certificate and
Opinion of Counsel as conclusive evidence that such transaction complies with
this Section 8.1.

 

50

 

SECTION 8.2.  Successor Company Substituted.

 

(a)           Upon any consolidation or merger by
the Company with or into any other Person, or any conveyance, transfer or lease
by the Company of its properties and assets substantially as an entirety to any
Person in accordance with Section 8.1 and the execution and delivery to
the Trustee of the supplemental indenture described in Section 8.1(a),
the successor entity formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer or lease is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein; and in the event of any such conveyance or
transfer, following the execution and delivery of such supplemental indenture,
the Company shall be discharged from all obligations and covenants under the
Indenture and the Securities.

 

(b)           Such successor Person may cause to be
executed, and may issue either in its own name or in the name of the Company,
any or all of the Securities issuable hereunder that theretofore shall not have
been signed by the Company and delivered to the Trustee; and, upon the order of
such successor Person instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities that previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities that such successor Person thereafter shall
cause to be executed and delivered to the Trustee on its behalf. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Securities theretofore or thereafter issued in
accordance with the terms of this Indenture.

 

(c)           In case of any such consolidation,
merger, sale, conveyance or lease, such changes in phraseology and form may be
made in the Securities thereafter to be issued as may be appropriate to reflect
such occurrence.

 

ARTICLE IX

Supplemental Indentures

 

SECTION 9.1.  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 reasonably satisfactory to the Trustee,
for any of the following purposes:

 

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

 

(b)           to cure any ambiguity, to correct or
supplement any provision herein that may be defective or inconsistent with any
other provision herein, or to make or amend any other provisions with respect
to matters or questions arising under this Indenture, which shall not be
inconsistent with the other provisions of this Indenture, provided,
that such action pursuant to this clause (b) shall not adversely affect in any
material respect the interests of any Holders or the holders of the Preferred
Securities; or

 

51

 

(c)           to add to the covenants, restrictions
or obligations of the Company or to add to the Events of Default, provided,
that such action pursuant to this clause (c) shall not adversely affect in any
material respect the interests of any Holders or the holders of the Preferred
Securities; or

 

(d)           to modify, eliminate or add to any
provisions of the Indenture or the Securities to such extent as shall be
necessary to ensure that the Securities are treated as indebtedness of the
Company for United States Federal income tax purposes, provided, that such action
pursuant to this clause (d) shall not adversely affect in any material respect
the interests of any Holders or the holders of the Preferred Securities.

 

SECTION 9.2.  Supplemental Indentures with Consent of
Holders.

 

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

 

(i)  change the Stated Maturity
of the principal or any premium of any Security or change the date of payment
of any installment of interest (including any Additional Interest) on any
Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof or change the place
of payment where, or the coin or currency in which, any Security or interest
thereon is payable, or restrict or impair the right to institute suit for the
enforcement of any such payment on or after such date, or

 

(ii)  reduce the percentage in
aggregate principal amount of the Outstanding Securities, 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 any provision of
this Indenture or of defaults hereunder and their consequences provided for in
this Indenture, or

 

(iii)  modify any of the
provisions of this Section 9.2, Section 5.13 or Section 10.7,
except to increase any percentage in aggregate principal amount of the
Outstanding Securities, the consent of whose Holders is required for any
reason, or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Security;

 

provided,
further,
that, so long as any Preferred Securities remain outstanding, no amendment
under this Section 9.2 shall be effective until the holders of a
majority in Liquidation Amount of the Preferred Securities shall have consented
to such amendment; provided, further, that if the consent of the Holder
of each Outstanding Security is required for any amendment under this
Indenture, such amendment shall not be effective until the holder of each
Outstanding Preferred Security shall have consented to such amendment.

 

52

 

(b)           It shall not be necessary for any Act
of Holders under this Section 9.2 to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such Act shall
approve the substance thereof.

 

SECTION 9.3.  Execution of Supplemental Indentures.

 

In executing or
accepting the additional trusts created by any supplemental indenture permitted
by this Article IX or the modifications thereby of the trusts created by
this Indenture, the Trustee shall be entitled to receive, and shall be fully
protected in conclusively relying upon, an Officers’ Certificate and an Opinion
of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture, and that all conditions precedent
herein provided for relating to such action have been complied with. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture that affects the Trustee’s own rights, duties, indemnities or
immunities under this Indenture or otherwise. 
Copies of the final form of each supplemental indenture shall be
delivered by the Trustee at the expense of the Company to each Holder, and, if
the Trustee is the Property Trustee, to each holder of Preferred Securities, promptly  after the execution thereof.

 

SECTION 9.4.  Effect of Supplemental Indentures.

 

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

 

SECTION 9.5.  Reference in Securities to Supplemental
Indentures.

 

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

 

ARTICLE X

Covenants

 

SECTION 10.1.  Payment of Principal, Premium, if any, and Interest.

 

The Company
covenants and agrees for the benefit of the Holders of the Securities that it
will duly and punctually pay the principal of and any premium and interest
(including any Additional Interest) on the Securities in accordance with the
terms of the Securities and this Indenture. 
As of the date of this Indenture, the Company represents that it has no
present intention to exercise its right under Section
2.11 to defer payments of interest on the Securities.

 

53

 

SECTION 10.2.  Money for Security Payments to be Held in
Trust.

 

(a)           If the Company shall at any time act
as its own Paying Agent with respect to the Securities, it will, on or before
each due date of the principal of and any premium or interest (including any
Additional Interest) on the Securities, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal
and any premium or interest (including Additional 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 in writing of its failure
so to act.

 

(b)           Whenever the Company shall have one
or more Paying Agents, it will, prior to 10:00 a.m., New York City time, on
each due date of the principal of or any premium or interest (including any
Additional Interest) on any Securities, deposit with a Paying Agent a sum
sufficient to pay such amount, such sum to be held as provided in the Trust
Indenture Act and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its failure so to act.

 

(c)           The Company will cause each Paying
Agent for the 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 10.2, that such Paying Agent
will (i) comply with the provisions of this Indenture and the Trust Indenture
Act applicable to it as a Paying Agent and (ii) during the continuance of any
default by the Company (or any other obligor upon the Securities) in the making
of any payment in respect of the Securities, upon the written request of the
Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Securities.

 

(d)           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.

 

(e)           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 any premium or interest (including any Additional
Interest) on any Security and remaining unclaimed for two years after such
principal and any premium or interest has become due and payable shall (unless
otherwise required by mandatory provision of applicable escheat or abandoned or
unclaimed property law) be paid on Company Request to the Company, or (if then
held by the Company) shall (unless otherwise required by mandatory provision of
applicable escheat or abandoned or unclaimed property law) be discharged from
such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease; provided,  that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that

 

54

 

such money remains unclaimed and that, after a date
specified therein, which shall not be less than thirty (30) days from the date
of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

 

SECTION 10.3.  Statement as to Compliance.

 

The Company shall
deliver to the Trustee, within one hundred and twenty (120) days after the end
of each fiscal year of the Company ending after the date hereof, an Officers’
Certificate covering the preceding calendar year, stating whether or not to the
knowledge of the signers thereof the Company is in default in the performance
or 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 and status thereof of which they may have
knowledge.  The delivery requirements of
this Section 10.3 may be satisfied by compliance with Section 8.16(a) of the
Trust Agreement.

 

SECTION 10.4.  Calculation Agent.

 

(a)           The Company hereby agrees that for so
long as any of the Securities remain Outstanding, there will at all times be an
agent appointed to calculate LIBOR in respect of each Interest Payment Date in
accordance with the terms of Schedule A (the “Calculation Agent”). 
The Company has initially appointed the Property Trustee as Calculation
Agent for purposes of determining LIBOR for each Interest Payment Date.  The Calculation Agent may be removed by the
Company at any time.  So long as the
Property Trustee holds any of the Securities, the Calculation Agent shall be the
Property Trustee, except as described in the immediately preceding sentence.  If the Calculation Agent is unable or
unwilling to act as such or is removed by the Company, the Company will
promptly appoint as a replacement Calculation Agent the London office of a
leading bank which is engaged in transactions in Eurodollar deposits in the
international Eurodollar market and which does not control or is not controlled
by or under common control with the Company or its Affiliates.  The Calculation Agent may not resign its
duties without a successor having been duly appointed.

 

(b)           The Calculation Agent shall be
required to agree that, as soon as possible after 11:00 a.m. (London time) on
each LIBOR Determination Date (as defined in Schedule A), but in no
event later than 11:00 a.m. (London time) on the Business Day immediately
following each LIBOR Determination Date, the Calculation Agent will calculate
the interest rate (the Interest Payment shall be rounded to the nearest cent,
with half a cent being rounded upwards) for the related Interest Payment Date,
and will communicate such rate and amount to the Company, the Trustee, each
Paying Agent and the Depositary. The Calculation Agent will also specify to the
Company the quotations upon which the foregoing rates and amounts are based
and, in any event, the Calculation Agent shall notify the Company before 5:00
p.m. (London time) on each LIBOR Determination Date that either:  (i) it has determined or is in the
process of determining the foregoing rates and amounts or (ii) it has not
determined and is not in the process of determining the foregoing rates and
amounts, together with its reasons therefor. 
The Calculation Agent’s determination of the foregoing rates and amounts
for any Interest Payment Date will (in the absence of manifest error) be final
and binding upon all parties.  For the sole
purpose of calculating the interest rate for the Securities, “Business Day”
shall be defined as any day on which dealings in deposits in Dollars are
transacted in the London interbank market.

 

55

 

SECTION 10.5.  Additional Tax Sums.

 

So long as no
Event of Default has occurred and is continuing, if (a) the Trust is the Holder
of all of the Outstanding Securities and (b) a Tax Event described in clause
(i) or (iii) in the definition of Tax Event in Section 1.1 hereof has
occurred and is continuing, the Company shall pay to the Trust (and its
permitted successors or assigns under the related Trust Agreement) for so long
as the Trust (or its permitted successor or assignee) is the registered holder
of the Outstanding Securities, such amounts as may be necessary in order that
the amount of Distributions (including any Additional Interest Amount (as
defined in the Trust Agreement)) then due and payable by the Trust on the
Preferred Securities and Common Securities that at any time remain outstanding
in accordance with the terms thereof shall not be reduced as a result of any
Additional Taxes arising from such Tax Event (additional such amounts payable
by the Company to the Trust, the “Additional Tax Sums”).  Whenever in this Indenture or the Securities
there is a reference in any context to the payment of principal of or interest
on the Securities, such mention shall be deemed to include mention of the
payments of the Additional Tax Sums provided for in this Section 10.5 to
the extent that, in such context, Additional Tax Sums are, were or would be
payable in respect thereof pursuant to the provisions of this Section 10.5
and express mention of the payment of Additional Tax Sums (if applicable) in
any provisions hereof shall not be construed as excluding Additional Tax Sums
in those provisions hereof where such express mention is not made; provided,
that the deferral of the payment of interest pursuant to Section 3.9 on
the Securities shall not defer the payment of any Additional Tax Sums that may
be due and payable.

 

SECTION 10.6.  Additional Covenants.

 

(a)           The Company covenants and agrees with
each Holder of Securities that if an Event of Default shall have occurred and
be continuing or the Company shall have given notice of its election to begin
an Extension Period with respect to the Securities or such Extension Period, or
any extension thereof, shall be continuing, it shall not (i) declare or pay any
dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any shares of the Company’s capital stock,
or (ii) make any payment of principal of or any interest or premium, if any, on
or repay, repurchase or redeem any debt securities of the Company that rank pari passu in
all respects with or junior in interest to the Securities (other than (A)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Company in connection with any employment contract, benefit plan or other
similar arrangement with or for the benefit of any one or more employees,
officers, directors or consultants, in connection with a dividend reinvestment
or stockholder stock purchase plan or in connection with the issuance of
capital stock of the Company (or securities convertible into or exercisable for
such capital stock) as consideration in an acquisition transaction entered into
prior to the applicable Extension Period, (B) as a result of an exchange or
conversion of any class or series of the Company’s capital stock (or any capital
stock of a Subsidiary of the Company) for any class or series of the Company’s
capital stock or of any class or series of the Company’s indebtedness for any
class or series of the Company’s capital stock, (C) the purchase of fractional
interests in shares of the Company’s capital stock pursuant to the conversion
or exchange provisions of such capital stock or the security being converted or
exchanged, (D) any declaration of a dividend in connection with any Rights
Plan, the issuance of rights, stock or other property under any Rights Plan or
the redemption or repurchase of rights pursuant thereto or (E) any dividend in
the form of stock, warrants, options or other rights where the dividend stock
or the stock issuable upon

 

56

 

exercise of such warrants, options or other rights is
the same stock as that on which the dividend is being paid or ranks pari passu
with or junior to such stock).

 

(b)           The Company also covenants with each
Holder of Securities (i) to hold, directly or indirectly, one hundred percent
(100%) of the Common Securities of the Trust, provided,  that any permitted successor of the Company
hereunder may succeed to the Company’s ownership of such Common Securities,
(ii) as holder of such Common Securities, not to voluntarily dissolve, wind-up
or liquidate the Trust other than (A) in connection with a distribution of the
Securities to the holders of the Preferred Securities in liquidation of the
Trust or (B) in connection with certain mergers, consolidations or
amalgamations permitted by the Trust Agreement and (iii) to use its reasonable
commercial efforts, consistent with the terms and provisions of the Trust
Agreement, to cause the Trust to continue to be taxable as a grantor trust and
not as a corporation for United States Federal income tax purposes.

 

SECTION 10.7.  Waiver of Covenants.

 

The Company may
omit in any particular instance to comply with any covenant or condition
contained in Section 10.6 if, before or after the time for such compliance,
the Holders of at least a majority in aggregate principal amount of the
Outstanding Securities shall, by Act of such Holders, and at least a majority
of the aggregate Liquidation Amount of the Preferred Securities then
outstanding, by consent of such holders, either waive such compliance in such
instance or generally waive compliance with such covenant or condition, but no
such waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company in respect of any such covenant or condition shall
remain in full force and effect.

 

SECTION 10.8.  Treatment of Securities.

 

The Company will
treat the Securities as indebtedness, and the amounts, other than payments of
principal, payable in respect of the principal amount of such Securities as
interest, for all U.S. federal income tax purposes.  All payments in respect of the Securities
will be made free and clear of U.S. withholding tax to any beneficial owner
thereof that has provided an Internal Revenue Service Form W-9 or W-8BEN (or
any substitute or successor form) establishing its U.S. or non-U.S. status for
U.S. federal income tax purposes, or any other applicable form establishing a
complete exemption from U.S. withholding tax.

 

ARTICLE XI

Redemption of Securities

 

SECTION 11.1.  Optional Redemption.

 

The Company may, at its option, on any Interest Payment Date, on or
after December 15, 2010, redeem the Securities in whole at any time or in part
from time to time, at a Redemption Price equal to one hundred percent (100%) of
the principal amount thereof (or of the redeemed portion thereof, as
applicable), together, in the case of any such redemption, with accrued
interest, including any Additional Interest, through but excluding the date
fixed as the Redemption Date (the “Optional Redemption Price”); provided,
that the Company shall have

 

57

 

received the prior
approval of any Applicable Insurance Regulatory Authorities with respect to
such redemption if then required.

 

SECTION 11.2.  Special Event Redemption.

 

Prior to December
15, 2010, upon the occurrence and during the continuation of a Special Event,
the Company may, at its option, redeem the Securities, in whole but not in
part, at a Redemption Price equal to one hundred seven and one half percent
(107.5%) of the principal amount thereof, together, in the case of any such
redemption, with accrued interest, including any Additional Interest, through
but excluding the date fixed as the Redemption Date (the “Special Redemption
Price”), provided,
that the Company shall have received the prior approval of any Applicable
Insurance Regulatory Authority with respect to such redemption if then
required.

 

SECTION 11.3.  Election to Redeem; Notice to Trustee.

 

The election of
the Company to redeem any Securities, in whole or in part, shall be evidenced
by or pursuant to a Board Resolution.  In
case of any redemption at the election of the Company, the Company shall, not
less than forty-five (45) days and not more than seventy-five (75) days prior
to the Redemption Date (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee and the Property Trustee under the Trust Agreement
in writing of such date and of the principal amount of the Securities to be
redeemed and provide the additional information required to be included in the
notice or notices contemplated by Section 11.5. In the case of any
redemption of Securities, in whole or in part, (a) prior to the expiration of
any restriction on such redemption provided in this Indenture or the Securities
or (b) pursuant to an election of the Company which is subject to a condition
specified in this Indenture or the Securities, the Company shall furnish the
Trustee with an Officers’ Certificate and an Opinion of Counsel evidencing
compliance with such restriction or condition.

 

SECTION 11.4.  Selection of Securities to be Redeemed.

 

(a)           If less than all the Securities are
to be redeemed, the particular Securities to be redeemed shall be selected and
redeemed on a pro rata basis not more than sixty (60) days prior to the
Redemption Date by the Trustee from the Outstanding Securities not previously
called for redemption, provided, that the unredeemed portion of the principal
amount of any Security shall be in an authorized denomination (which shall not
be less than the minimum authorized denomination) for such Security.

 

(b)           The Trustee shall promptly notify the
Company in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Security that has been or
is to be redeemed.

 

(c)           The provisions of paragraphs (a) and
(b) of this Section 11.4 shall not apply with respect to any redemption
affecting only a single Security, whether such Security is to be redeemed in
whole or in part. In the case of any such redemption in part, the unredeemed
portion

 

58

 

of the principal amount of the Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

 

SECTION 11.5.  Notice of Redemption.

 

(a)           Notice of redemption shall be given
not later than the thirtieth (30th) day, and not earlier than the
sixtieth (60th) day, prior to the Redemption Date to each Holder of
Securities to be redeemed, in whole or in part, (unless a shorter notice shall
be satisfactory to the Property Trustee under the related Trust Agreement).

 

(b)           With respect to Securities to be
redeemed, in whole or in part, each notice of redemption shall state:

 

(i)  the Redemption Date;

 

(ii)  the Redemption Price or, if
the Redemption Price cannot be calculated prior to the time the notice is
required to be sent, the estimate of the Redemption Price, as calculated by the
Company, together with a statement that it is an estimate and that the actual
Redemption Price will be calculated on the fifth Business Day prior to the
Redemption Date (and if an estimate is provided, a further notice shall be sent
of the actual Redemption Price on the date that such Redemption Price is
calculated);

 

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

 

(iv)  that on the Redemption
Date, the Redemption Price will become due and payable upon each such Security
or portion thereof, and that any interest (including any Additional Interest)
on such Security or such portion, as the case may be, shall cease to accrue on
and after said date; and

 

(v)  the place or places where
such Securities are to be surrendered for payment of the Redemption Price.

 

(c)           Notice of redemption of Securities to
be redeemed, in whole or in part, 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 and shall be irrevocable. The notice if mailed in
the manner provided above shall be conclusively presumed to have been duly
given, whether or not the Holder receives such notice. In any case, a failure
to give such notice by mail or any defect in the notice to the Holder of any
Security designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any other Security.

 

SECTION 11.6.  Deposit of Redemption Price.

 

Prior to 10:00
a.m., New York City time, on the Redemption Date specified in the notice of
redemption given as provided in Section 11.5, the Company will deposit
with the Trustee or with one or more Paying Agents (or if the Company is acting
as its own Paying Agent, the Company will segregate and hold in trust as
provided in Section 10.2) an amount of money

 

59

 

sufficient to pay the Redemption Price of, and any accrued interest
(including any Additional Interest) on, all the Securities (or portions
thereof) that are to be redeemed on that date.

 

SECTION 11.7.  Payment of Securities Called for Redemption.

 

(a)           If any notice of redemption has been
given as provided in Section 11.5, the Securities or portion of
Securities with respect to which such notice has been given shall become due
and payable on the date and at the place or places stated in such notice at the
applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date. On presentation and surrender of
such Securities at a Place of Payment specified in such notice, the Securities
or the specified portions thereof shall be paid and redeemed by the Company at
the applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date.

 

(b)           Upon presentation of any Security
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder thereof, at the expense of the Company,
a new Security or Securities, of authorized denominations, in aggregate
principal amount equal to the unredeemed portion of the Security so presented
and having the same Original Issue Date, Stated Maturity and terms.

 

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

 

ARTICLE XII

Subordination of Securities

 

SECTION 12.1.  Securities Subordinate to Senior Debt.

 

The Company
covenants and agrees, and each Holder of a Security, by its acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner
hereinafter set forth in this Article XII, the payment of the principal
of and any premium and interest (including any Additional Interest) on each and
all of the Securities are hereby expressly made subordinate and subject in
right of payment to the prior payment in full of all Senior Debt.

 

SECTION 12.2.  No Payment When Senior Debt in Default;
Payment Over of Proceeds Upon Dissolution, Etc. 

 

(a)           In the event and during the
continuation of any default by the Company in the payment of any principal of
or any premium or interest on any Senior Debt (following any grace period, if
applicable) when the same becomes due and payable, whether at maturity or at a
date fixed for prepayment or by declaration of acceleration or otherwise, then,
upon written notice of such default to the Company by the holders of such
Senior Debt or any trustee therefor, unless and until such default shall have
been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property, securities, by set-off or otherwise) shall be made
or agreed to be made on account of the principal of or any premium or interest
(including any Additional Interest) on any of the Securities, or in respect of
any redemption, repayment, retirement, purchase or other acquisition of any of
the Securities.

 

60

 

(b)           In the event of a bankruptcy,
insolvency or other proceeding described in clause (d) or (e) of the definition
of Event of Default (each such event, if any, herein sometimes referred to as a
“Proceeding”), all Senior Debt
(including any interest thereon accruing after the commencement of any such
proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to any Holder of
any of the Securities on account thereof. Any payment or distribution, whether
in cash, securities or other property (other than securities of the Company or
any other entity provided for by a plan of reorganization or readjustment the
payment of which is subordinate, at least to the extent provided in these
subordination provisions with respect to the indebtedness evidenced by the
Securities, to the payment of all Senior Debt at the time outstanding and to
any securities issued in respect thereof under any such plan of reorganization
or readjustment), which would otherwise (but for these subordination
provisions) be payable or deliverable in respect of the Securities shall be
paid or delivered directly to the holders of Senior Debt in accordance with the
priorities then existing among such holders until all Senior Debt  (including any interest thereon accruing
after the commencement of any Proceeding) shall have been paid in full.

 

(c)           In the event of any Proceeding, after
payment in full of all sums owing with respect to Senior Debt, the Holders of
the Securities, together with the holders of any obligations of the Company
ranking on a parity with the Securities, shall be entitled to be paid from the
remaining assets of the Company the amounts at the time due and owing on
account of unpaid principal of and any premium and interest (including any
Additional Interest) on the Securities and such other obligations before any
payment or other distribution, whether in cash, property or otherwise, shall be
made on account of any capital stock or any obligations of the Company ranking
junior to the Securities and such other obligations. If, notwithstanding the
foregoing, any payment or distribution of any character or any security,
whether in cash, securities or other property (other than securities of the
Company or any other entity provided for by a plan of reorganization or
readjustment the payment of which is subordinate, at least to the extent
provided in these subordination provisions with respect to the indebtedness
evidenced by the Securities, to the payment of all Senior Debt at the time
outstanding and to any securities issued in respect thereof under any such plan
of reorganization or readjustment) shall be received by the Trustee or any
Holder in contravention of any of the terms hereof and before all Senior Debt
shall have been paid in full, such payment or distribution or security shall be
received in trust for the benefit of, and shall be paid over or delivered and
transferred to, the holders of the Senior Debt at the time outstanding in
accordance with the priorities then existing among such holders for application
to the payment of all Senior Debt remaining unpaid, to the extent necessary to
pay all such Senior Debt (including any interest thereon accruing after the
commencement of any Proceeding) in full. In the event of the failure of the
Trustee or any Holder to endorse or assign any such payment, distribution or
security, each holder of Senior Debt is hereby irrevocably authorized to
endorse or assign the same.

 

(d)           The Trustee and the Holders, at the
expense of the Company, shall take such reasonable action  (including the delivery of this Indenture to
an agent for any holders of Senior Debt or consent to the filing of a financing
statement with respect hereto) as may, in the opinion of counsel designated by
the holders of a majority in principal amount of the Senior Debt at the time
outstanding, be necessary or appropriate to assure the effectiveness of the
subordination effected by these provisions.

 

61

 

(e)           The provisions of this Section
12.2 shall not impair any rights, interests, remedies or powers of any
secured creditor of the Company in respect of any security interest the
creation of which is not prohibited by the provisions of this Indenture.

 

(f)            The securing of any obligations of
the Company, otherwise ranking on a parity with the Securities or ranking
junior to the Securities, shall not be deemed to prevent such obligations from
constituting, respectively, obligations ranking on a parity with the Securities
or ranking junior to the Securities.

 

SECTION 12.3.  Payment Permitted If No Default.

 

Nothing contained
in this Article XII or elsewhere in this Indenture or in any of the
Securities shall prevent (a) the Company, at any time, except during the
pendency of the conditions described in paragraph (a) of Section 12.2 or
of any Proceeding referred to in Section 12.2, from making payments at
any time of principal of and any premium or interest (including any Additional
Interest) on the Securities or (b) the application by the Trustee of any moneys
deposited with it hereunder to the payment of or on account of the principal of
and any premium or interest (including any Additional Interest) on the
Securities or the retention of such payment by the Holders, if, at the time of
such application by the Trustee, it did not have knowledge (in accordance with Section
12.8) that such payment would have been prohibited by the provisions of
this Article XII, except as provided in Section 12.8.

 

SECTION 12.4.  Subrogation to Rights of Holders of Senior
Debt.

 

Subject to the
payment in full of all amounts due or to become due on all Senior Debt, or the
provision for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt, the Holders of the Securities shall
be subrogated to the extent of the payments or distributions made to the
holders of such Senior Debt pursuant to the provisions of this Article XII
(equally and ratably with the holders of all indebtedness of the Company that
by its express terms is subordinated to Senior Debt of the Company to
substantially the same extent as the Securities are subordinated to the Senior
Debt and is entitled to like rights of subrogation by reason of any payments or
distributions made to holders of such Senior Debt) to the rights of the holders
of such Senior Debt to receive payments and distributions of cash, property and
securities applicable to the Senior Debt until the principal of and any premium
and interest (including any Additional Interest) on the Securities shall be
paid in full. For purposes of such subrogation, no payments or distributions to
the holders of the Senior Debt of any cash, property or securities to which the
Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article XII, and no payments made pursuant to the
provisions of this Article XII to the holders of Senior Debt by Holders
of the Securities or the Trustee, shall, as among the Company, its creditors
other than holders of Senior Debt, and the Holders of the Securities, be deemed
to be a payment or distribution by the Company to or on account of the Senior
Debt.

 

SECTION 12.5.  Provisions Solely to Define Relative Rights.

 

The provisions of
this Article XII are and are intended solely for the purpose of defining
the relative rights of the Holders of the Securities on the one hand and the
holders of Senior Debt on the other hand. Nothing contained in this Article
XII or elsewhere in this Indenture or in the

 

62

 

Securities is intended to or shall (a) impair, as between the Company
and the Holders of the Securities, the obligations of the Company, which are
absolute and unconditional, to pay to the Holders of the Securities the
principal of and any premium and interest (including any Additional Interest)
on the Securities as and when the same shall become due and payable in
accordance with their terms, (b) affect the relative rights against the Company
of the Holders of the Securities and creditors of the Company other than their
rights in relation to the holders of Senior Debt or (c) prevent the Trustee or
the Holder of any Security (or to the extent expressly provided herein, the
holder of any Preferred Security) from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, including filing
and voting claims in any Proceeding, subject to the rights, if any, under this Article
XII of the holders of Senior Debt to receive cash, property and securities
otherwise payable or deliverable to the Trustee or such Holder.

 

SECTION 12.6.  Trustee to Effectuate Subordination.

 

Each Holder of a
Security by his or her acceptance thereof authorizes and directs the Trustee on
his or her behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination provided in this Article XII
and appoints the Trustee his or her attorney-in-fact for any and all such
purposes.

 

SECTION 12.7.  No Waiver of Subordination Provisions.

 

(a)           No right of any present or future
holder of any Senior Debt 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 be otherwise charged with.

 

(b)           Without in any way limiting the generality
of paragraph (a) of this Section 12.7, the holders of Senior Debt may,
at any time and from to time, without the consent of or notice to the Trustee
or the Holders of the Securities, without incurring responsibility to such
Holders of the Securities and without impairing or releasing the subordination
provided in this Article XII or the obligations hereunder of such
Holders of the Securities to the holders of Senior Debt, do any one or more of
the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Debt, or otherwise amend or
supplement in any manner Senior Debt or any instrument evidencing the same or
any agreement under which Senior Debt is outstanding, (ii) sell, exchange, release
or otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Debt, (iii) release any Person liable in any manner for the payment of
Senior Debt and (iv) exercise or refrain from exercising any rights against the
Company and any other Person.

 

SECTION 12.8.  Notice to Trustee.

 

(a)           The Company shall give prompt written
notice to a Responsible Officer of the Trustee of any fact known to the Company
that would prohibit the making of any payment to or by the Trustee in respect
of the Securities. Notwithstanding the provisions of this Article XII or
any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the

 

63

 

existence of any facts that would prohibit the making
of any payment to or by the Trustee in respect of the Securities, unless and
until a Responsible Officer of the Trustee shall have received written notice
thereof from the Company or a holder of Senior Debt or from any trustee, agent
or representative therefor; provided,
that if the Trustee shall not have received the notice provided for in
this Section 12.8 at least two Business Days prior to the date upon
which by the terms hereof any monies may become payable for any purpose
(including, the payment of the principal of and any premium on or interest
(including any Additional Interest) on any Security), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power
and authority to receive such monies and to apply the same to the purpose 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.

 

(b)           The Trustee shall be entitled to rely
on the delivery to it of a written notice by a Person representing himself or
herself to be a holder of Senior Debt (or a trustee, agent, representative or
attorney-in-fact therefor) to establish that such notice has been given by a
holder of Senior Debt (or a trustee, agent, representative or attorney-in-fact
therefor). 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
Senior Debt to participate in any payment or distribution pursuant to this Article
XII, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt 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 XII, 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.

 

SECTION 12.9.  Reliance on Judicial Order or Certificate of
Liquidating Agent.

 

Upon any payment
or distribution of assets of the Company referred to in this Article XII,
the Trustee and the Holders of the Securities shall be entitled to conclusively
rely upon any order or decree entered by any court of competent jurisdiction in
which such Proceeding is pending, or a certificate of the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit
of creditors, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Holders of Securities, for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Debt and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
XII.

 

SECTION 12.10.  Trustee Not Fiduciary for Holders of Senior
Debt.

 

The Trustee, in its
capacity as trustee under this Indenture, shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt and shall not be liable to any
such holders if it shall in good faith mistakenly pay over or distribute to
Holders of Securities or to the Company or to any other Person cash, property
or securities to which any holders of Senior Debt shall be entitled by virtue
of this Article XII or otherwise.

 

64

 

SECTION 12.11.  Rights of Trustee as Holder of Senior Debt;
Preservation of Trustee’s Rights.

 

The Trustee in its
individual capacity shall be entitled to all the rights set forth in this Article
XII with respect to any Senior Debt that may at any time be held by it, to
the same extent as any other holder of Senior Debt, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.

 

SECTION 12.12.  Article Applicable to Paying Agents.

 

If at any time any
Paying Agent other than the Trustee shall have been appointed by the Company
and be then acting hereunder, the term “Trustee” as used in this Article XII shall in such
case (unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article XII in
addition to or in place of the Trustee; provided,  that Sections  12.8 and 12.11
shall not apply to the Company or any Affiliate of the Company if the Company
or such Affiliate acts as Paying Agent.

 

* * * *

 

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

 

65

 

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

 

	
   

  	
  American
  Equity Investment Life Holding Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Debra J. Richardson

  	
   

  
	
   

  	
   

  	
  Name:     Debra Richardson

  
	
   

  	
   

  	
  Title:       Secretary and Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMorgan
  Chase Bank, National Association, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Shelly A. Sterling

  	
   

  
	
   

  	
   

  	
  Name:     Shelly A. Sterling

  
	
   

  	
   

  	
  Title:       Vice President

  
					

 

66

 

DETERMINATION OF LIBOR

 

With respect to
the Securities, the London interbank offered rate (“LIBOR”) shall be determined by the Calculation Agent in
accordance with the following provisions (in each case rounded to the nearest
..000001%):

 

(1)           On the second LIBOR Business Day (as
defined below) prior to an Interest Payment Date (except with respect to the
first interest payment period, such date shall be December 13, 2005 (each such day, a “LIBOR Determination Date”), LIBOR for any
given security shall for the following interest payment period equal the rate,
as obtained by the Calculation Agent from Bloomberg Financial Markets
Commodities News, for three-month Eurodollar deposits that appears on Dow Jones
Telerate Page 3750 (as defined in the International Swaps and Derivatives
Association, Inc. 1991 Interest Rate and Currency Exchange Definitions), or
such other page as may replace such Page 3750, as of 11:00 a.m. (London time)
on such LIBOR Determination Date.

 

(2)           If, on any LIBOR Determination Date,
such rate does not appear on Dow Jones Telerate Page 3750 or such other page as
may replace such Page 3750, the Calculation Agent shall determine the
arithmetic mean of the offered quotations of the Reference Banks (as defined
below) to leading banks in the London interbank market for three-month
Eurodollar deposits in an amount determined by the Calculation Agent by
reference to requests for quotations as of approximately 11:00 a.m. (London
time) on the LIBOR Determination Date made by the Calculation Agent to the
Reference Banks.  If, on any LIBOR
Determination Date, at least two of the Reference Banks provide such
quotations, LIBOR shall equal such arithmetic mean of such quotations.  If, on any LIBOR Determination Date, only one
or none of the Reference Banks provide such quotations, LIBOR shall be deemed
to be the arithmetic mean of the offered quotations that leading banks in the
City of New York selected by the Calculation Agent are quoting on the relevant
LIBOR Determination Date for three-month Eurodollar deposits in an amount
determined by the Calculation Agent by reference to the principal London
offices of leading banks in the London interbank market; provided that, if the Calculation Agent is
required but is unable to determine a rate in accordance with at least one of
the procedures provided above, LIBOR shall be LIBOR as determined on the
previous LIBOR Determination Date.

 

(3)           As used herein: “Reference Banks” means four major banks in
the London interbank market selected by the Calculation Agent; and “LIBOR Business Day” means a day on which
commercial banks are open for business (including dealings in foreign exchange
and foreign currency deposits) in London.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]