Document:

exv4w4

 

Exhibit 4.4

PENN VIRGINIA CORPORATION,

as Issuer,

PENN VIRGINIA HOLDING CORP.

PENN VIRGINIA OIL & GAS CORPORATION (a Virginia Corporation)

PENN VIRGINIA OIL & GAS CORPORATION (a Texas Corporation)

PENN VIRGINIA RESOURCE GP, LLC

PENN VIRGINIA RESOURCE LP CORP.

and

KANAWHA RAIL CORP.

as Subsidiary Guarantors,

and

________________________________________,

as Trustee

SUBORDINATED INDENTURE

Dated as of
_______________________

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 
	TIA
Section	 	Indenture
Section
	310 (a)(1)
	 	 	609	 
	 	(a)(2)
	 	 	609	 
	 	(a)(3)
	 	 	N.A.	 
	 	(a)(4)
	 	 	N.A.	 
	 	(b)
	 	 	608	 
	 
	 	 	610	 
	311 (a)
	 	 	613	 
	 	(b)
	 	 	613	 
	312 (a)
	 	 	701	 
	 
	 	 	702	 
	 	(b)
	 	 	702	 
	 	(c)
	 	 	702	 
	313 (a)
	 	 	703	 
	 	(b)
	 	 	703	 
	 	(c)
	 	 	703	 
	 	(d)
	 	 	703	 
	314 (a)
	 	 	704	 
	 	(a)(4)
	 	 	101	 
	 
	 	 	1001	 
	 	(b)
	 	 	N.A.	 
	 	(c)(1)
	 	 	102	 
	 	(c)(2)
	 	 	102	 
	 	(c)(3)
	 	 	N.A.	 
	 	(d)
	 	 	N.A.	 
	 	(e)
	 	 	102	 
	315 (a)
	 	 	601	 
	 	(b)
	 	 	602	 
	 	(c)
	 	 	601	 
	 	(d)
	 	 	601	 
	 	(e)
	 	 	514	 
	316 (a)
	 	 	101	 
	316 (a)(1)(A)
	 	 	502	 
	 
	 	 	512	 
	 	(a)(1)(B)
	 	 	513	 
	 	(a)(2)
	 	 	N.A.	 
	 	(b)
	 	 	508	 
	 	(c)
	 	 	104	 
	317 (a)(1)
	 	 	503	 
	 	(a)(2)
	 	 	504	 
	 	(b)
	 	 	1003	 
	318 (a)
	 	 	107	 

N.A. means Not Applicable

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	PAGE
	
ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION	 	 
	SECTION 101.	 	
Definitions.
	 	  1
	SECTION 102.	 	
Compliance Certificates and Opinions.
	 	  7
	SECTION 103.	 	
Form of Documents Delivered to Trustee.
	 	  8
	SECTION 104.	 	
Acts of Holders; Record Dates.
	 	  8
	SECTION 105.	 	
Notices, Etc., to Trustee, Company and Subsidiary Guarantors.
	 	10
	SECTION 106.	 	
Notice to Holders; Waiver.
	 	10
	SECTION 107.	 	
Conflict with Trust Indenture Act.
	 	11
	SECTION 108.	 	
Effect of Headings and Table of Contents.
	 	11
	SECTION 109.	 	
Successors and Assigns.
	 	11
	SECTION 110.	 	
Separability Clause.
	 	11
	SECTION 111.	 	
Benefits of Indenture.
	 	11
	SECTION 112.	 	
Governing Law.
	 	12
	SECTION 113.	 	
Legal Holidays.
	 	12
	
ARTICLE TWO

SECURITY FORMS	 	 
	SECTION 201.	 	
Forms Generally.
	 	12
	SECTION 202.	 	
Form of Face of Security.
	 	12
	SECTION 203.	 	
Form of Reverse of Security.
	 	14
	SECTION 204.	 	
Form of Conversion Notice.
	 	18
	SECTION 205.	 	
Form of Legend for Global Securities.
	 	20
	SECTION 206.	 	
Form of Trustee’s Certificate of Authentication.
	 	20
	
ARTICLE THREE

THE SECURITIES	 	 
	SECTION 301.	 	
Amount Unlimited; Issuable in Series.
	 	21
	SECTION 302.	 	
Denominations.
	 	23
	SECTION 303.	 	
Execution, Authentication, Delivery and Dating.
	 	23
	SECTION 304.	 	
Temporary Securities.
	 	25
	SECTION 305.	 	
Registration, Registration of Transfer and Exchange.
	 	25
	SECTION 306.	 	
Mutilated, Destroyed, Lost and Stolen Securities.
	 	27
	SECTION 307.	 	
Payment of Interest; Interest Rights Preserved.
	 	27
	SECTION 308.	 	
Persons Deemed Owners.
	 	29
	SECTION 309.	 	
Cancellation.
	 	29
	SECTION 310.	 	
Computation of Interest.
	 	29
	
ARTICLE FOUR

SATISFACTION AND DISCHARGE	 	 
	SECTION 401.	 	
Satisfaction and Discharge of Indenture.
	 	29
	SECTION 402.	 	
Application of Trust Money.
	 	31

i

 

	 	 	 	 	 
	 	 	 	 	PAGE
	
ARTICLE FIVE

REMEDIES	 	 
	SECTION 501.	 	
Events of Default.
	 	31
	SECTION 502.	 	
Acceleration of Maturity; Rescission and Annulment.
	 	32
	SECTION 503.	 	
Collection of Indebtedness and Suits for Enforcement by Trustee.
	 	33
	SECTION 504.	 	
Trustee May File Proofs of Claim.
	 	34
	SECTION 505.	 	
Trustee May Enforce Claims Without Possession of Securities.
	 	34
	SECTION 506.	 	
Application of Money Collected.
	 	34
	SECTION 507.	 	
Limitation on Suits.
	 	35
	SECTION 508.	 	
Unconditional Right of Holders to Receive Principal, Premium and
Interest and to Convert.
	 	35
	SECTION 509.	 	
Restoration of Rights and Remedies.
	 	36
	SECTION 510.	 	
Rights and Remedies Cumulative.
	 	36
	SECTION 511.	 	
Delay or Omission Not Waiver.
	 	36
	SECTION 512.	 	
Control by Holders.
	 	36
	SECTION 513.	 	
Waiver of Past Defaults.
	 	36
	SECTION 514.	 	
Undertaking for Costs.
	 	37
	SECTION 515.	 	
Waiver of Usury, Stay or Extension Laws.
	 	37
	
ARTICLE SIX

THE TRUSTEE	 	 
	SECTION 601.	 	
Certain Duties and Responsibilities.
	 	37
	SECTION 602.	 	
Notice of Defaults.
	 	38
	SECTION 603.	 	
Certain Rights of Trustee.
	 	38
	SECTION 604.	 	
Not Responsible for Recitals or Issuance of Securities.
	 	39
	SECTION 605.	 	
May Hold Securities.
	 	39
	SECTION 606.	 	
Money Held in Trust.
	 	39
	SECTION 607.	 	
Compensation and Reimbursement.
	 	39
	SECTION 608.	 	
Conflicting Interests.
	 	40
	SECTION 609.	 	
Corporate Trustee Required; Eligibility.
	 	40
	SECTION 610.	 	
Resignation and Removal; Appointment of Successor.
	 	40
	SECTION 611.	 	
Acceptance of Appointment by Successor.
	 	42
	SECTION 612.	 	
Merger, Conversion, Consolidation or Succession to Business.
	 	42
	SECTION 613.	 	
Preferential Collection of Claims Against Company.
	 	43
	SECTION 614.	 	
Appointment of Authenticating Agent.
	 	43
	
ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 
	SECTION 701.	 	
Company to Furnish Trustee Names and Addresses of Holders.
	 	44
	SECTION 702.	 	
Preservation of Information; Communications to Holders.
	 	45
	SECTION 703.	 	
Reports by Trustee.
	 	45
	SECTION 704.	 	
Reports by Company.
	 	45
	
ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 
	SECTION 801.	 	
Company May Consolidate, Etc., Only on Certain Terms.
	 	46

ii

 

	 	 	 	 	 
	 	 	 	 	PAGE
	SECTION 802.	 	
Successor Substituted.
	 	47
	
ARTICLE NINE

SUPPLEMENTAL INDENTURES	 	 
	SECTION 901.	 	
Supplemental Indentures Without Consent of Holders.
	 	47
	SECTION 902.	 	
Supplemental Indentures With Consent of Holders.
	 	48
	SECTION 903.	 	
Execution of Supplemental Indentures.
	 	49
	SECTION 904.	 	
Effect of Supplemental Indentures.
	 	50
	SECTION 905.	 	
Conformity with Trust Indenture Act.
	 	50
	SECTION 906.	 	
Reference in Securities to Supplemental Indentures.
	 	50
	
ARTICLE TEN

COVENANTS	 	 
	SECTION 1001.	 	
Payment of Principal, Premium and Interest.
	 	50
	SECTION 1002.	 	
Maintenance of Office or Agency.
	 	50
	SECTION 1003.	 	
Money for Securities Payments to Be Held in Trust.
	 	51
	SECTION 1004.	 	
Statement by Officers as to Default.
	 	52
	SECTION 1005.	 	
Existence.
	 	52
	SECTION 1006.	 	
Maintenance of Properties.
	 	52
	SECTION 1007.	 	
Payment of Taxes and Other Claims.
	 	52
	SECTION 1008.	 	
Maintenance of Insurance.
	 	53
	SECTION 1009.	 	
Waiver of Certain Covenants.
	 	53
	
ARTICLE ELEVEN

REDEMPTION OF SECURITIES	 	 
	SECTION 1101.	 	
Applicability of Article.
	 	53
	SECTION 1102.	 	
Election to Redeem; Notice to Trustee.
	 	53
	SECTION 1103.	 	
Selection by Trustee of Securities to Be Redeemed.
	 	54
	SECTION 1104.	 	
Notice of Redemption.
	 	54
	SECTION 1105.	 	
Deposit of Redemption Price.
	 	55
	SECTION 1106.	 	
Securities Payable on Redemption Date.
	 	55
	SECTION 1107.	 	
Securities Redeemed in Part.
	 	56
	
ARTICLE TWELVE

SUBORDINATION OF SECURITIES	 	 
	SECTION 1201.	 	
Applicability of Article.
	 	56
	SECTION 1202.	 	
Securities Subordinate to Senior Debt.
	 	56
	SECTION 1203.	 	
Payment Over of Proceeds Upon Dissolution, Etc.
	 	56
	SECTION 1204.	 	
No Payment When Senior Debt of the Company in Default.
	 	58
	SECTION 1205.	 	
Payment Permitted If No Default.
	 	59
	SECTION 1206.	 	
Subrogation to Rights of Holders of Senior Debt of the Company.
	 	59
	SECTION 1207.	 	
Provisions Solely to Define Relative Rights.
	 	59
	SECTION 1208.	 	
Trustee to Effectuate Subordination.
	 	60
	SECTION 1209.	 	
No Waiver of Subordination Provisions.
	 	60
	SECTION 1210.	 	
Notice to Trustee.
	 	60
	SECTION 1211.	 	
Reliance on Judicial Order or Certificate of Liquidating Agent.
	 	61
	SECTION 1212.	 	
Trustee Not Fiduciary for Holders of Senior Debt of the Company.
	 	61

iii

 

	 	 	 	 	 
	 	 	 	 	PAGE
	SECTION 1213.	 	
Rights of Trustee as Holder of Senior Debt of the Company;
Preservation of Trustee’s Rights.
	 	61
	SECTION 1214.	 	
Article Applicable to Paying Agents.
	 	62
	SECTION 1215.	 	
Defeasance of this Article Twelve.
	 	62
	
ARTICLE THIRTEEN

CONVERSION OF SECURITIES	 	 
	SECTION 1301.	 	
Applicability of Article.
	 	62
	SECTION 1302.	 	
Exercise of Conversion Privilege.
	 	62
	SECTION 1303.	 	
No Fractional Shares.
	 	63
	SECTION 1304.	 	
Adjustment of Conversion Price.
	 	64
	SECTION 1305.	 	
Notice of Certain Corporate Actions.
	 	64
	SECTION 1306.	 	
Reservation of Shares of Common Stock.
	 	65
	SECTION 1307.	 	
Payment of Certain Taxes Upon Conversion.
	 	65
	SECTION 1308.	 	
Nonassessability.
	 	65
	SECTION 1309.	 	
Effect of Consolidation or Merger on Conversion Privilege.
	 	65
	SECTION 1310.	 	
Duties of Trustee Regarding Conversion.
	 	66
	SECTION 1311.	 	
Repayment of Certain Funds Upon Conversion.
	 	67
	
ARTICLE FOURTEEN

DEFEASANCE AND COVENANT DEFEASANCE	 	 
	SECTION 1401.	 	
Company’s Option to Effect Defeasance or Covenant Defeasance.
	 	67
	SECTION 1402.	 	
Defeasance and Discharge.
	 	67
	SECTION 1403.	 	
Covenant Defeasance.
	 	67
	SECTION 1404.	 	
Conditions to Defeasance or Covenant Defeasance.
	 	68
	SECTION 1405.	 	
Deposited Money and U.S. Government Obligations to Be Held in
Trust; Miscellaneous Provisions.
	 	70
	SECTION 1406.	 	
Reinstatement.
	 	70
	
ARTICLE FIFTEEN

SINKING FUNDS	 	 
	SECTION 1501.	 	
Applicability of Article.
	 	71
	SECTION 1502.	 	
Satisfaction of Sinking Fund Payments with Securities.
	 	71
	SECTION 1503.	 	
Redemption of Securities for Sinking Fund.
	 	71
	
ARTICLE SIXTEEN

GUARANTEE	 	 
	SECTION 1601.	 	
Unconditional Guarantee.
	 	72
	SECTION 1602.	 	
Execution and Delivery of Guarantee.
	 	74
	SECTION 1603.	 	
Limitation on Subsidiary Guarantors’ Liability.
	 	74
	SECTION 1604.	 	
Release of Subsidiary Guarantors from Guarantee.
	 	74
	SECTION 1605.	 	
Subsidiary Guarantor Contribution.
	 	75
	
ANNEX A	 	 
	NOTATION OF
GUARANTEE	 	78

iv

 

     INDENTURE, dated as of      , among Penn Virginia Corporation, a
corporation duly organized and existing under the laws of the Commonwealth of
Virginia (herein called the “Company”), having its principal office at One
Radnor Corporate Center, 100 Matsonford Road, Radnor, Pennsylvania 19087, and
Penn Virginia Holding Corp., a Delaware corporation, Penn Virginia Oil & Gas
Corporation (a Virginia corporation), Penn Virginia Oil & Gas Corporation (a
Texas corporation), Penn Virginia Resource GP, LLC, a Delaware limited
liability company, Penn Virginia Resource LP Corp., a Delaware corporation, and
Kanawha Rail Corp., a Virginia corporation, (together, the “Subsidiary
Guarantors”), and      , a      banking
corporation, as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

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

     The Company and the Subsidiary Guarantors are members of the same
consolidated group of companies. The Subsidiary Guarantors will derive direct
and indirect economic benefit from the issuance of the Securities.
Accordingly, each Subsidiary Guarantor has duly authorized the execution and
delivery of this Indenture to provide for its full, unconditional and joint and
several Guarantee of the Securities to the extent provided in or pursuant to
this Indenture.

     This Indenture is subject to the provisions of the Trust Indenture Act of
1939, as amended, that are required to be a part of this Indenture and shall,
to the extent applicable, be governed by such provisions.

     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 agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, as
follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101. Definitions.

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

 

 

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

          (2) all other terms used herein which are defined in the Trust Indenture
Act, or the Securities Act of 1933, as amended, as amend either directly or by
reference therein, have the meanings assigned to them therein;

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

          (4) 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; and

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

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

     “Affiliate” of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
“control” when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing; provided that direct or indirect beneficial ownership of 10% or more
of the Voting Stock of a Person shall be deemed to control.

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

     “Board of Directors” means either the board of directors of the Company or
any committee of that board duly authorized to act for it in respect.

     “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 its Board
of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

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

     “Capital Stock” of any Person means any and all shares, interests,
participations or other equivalents (however designated) of corporate stock or
other equity participations, including partnership interests, whether general
or limited, of such Person.

2

 

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

     “Common Stock” means the Company’s common stock, $6.25 par value per
share, and shall include securities of any class, however designated, which are
convertible into such Common Stock.

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

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

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

     “corporation” means a corporation, association, company, joint-stock
company, limited liability company, partnership or business trust.

     “Covenant Defeasance” has the meaning specified in Section 1403.

     “Debt” of any Person at any date means any obligation created or assumed
by such Person for the repayment of borrowed money and any Guarantee thereof.

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

     “Defeasance” has the meaning specified in Section 1402.

     “Depositary” means, with respect to Securities of any series issuable in
whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 301.

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

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

     “Expiration Date” has the meaning specified in Section 104.

     “Funding Guarantor” has the meaning specified in Section 1605.

     “Global Security” means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 205 (or such
legend as may be specified as contemplated by Section 301 for such Securities).

3

 

     “Guarantee” means any obligation, contingent or otherwise, of any Person
directly or indirectly Guaranteeing any Debt or other obligation of any other
Person and any obligation, direct or indirect, contingent or otherwise, of such
Person (a) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt or other obligation of such other Person (whether arising
by virtue of partnership arrangements, or by agreement to keep-well, to
purchase assets, goods, securities or services, to take-or-pay, or to maintain
financial statement conditions or otherwise) or (b) entered into for purposes
of assuring in any other manner the obligee of such Debt or other obligation of
the payment thereof or to protect such obligee against loss in respect thereof
(in whole or in part); provided, however, that the term “Guarantee” shall not
include endorsements for collection or deposit in the ordinary course of
business. The term “Guarantee” used as a verb has a corresponding meaning.

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

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

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

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

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

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

     “Notice of Default” means a written notice of the kind specified in
Section 501(4).

     “Officer’s Certificate” means a certificate signed by the Chairman of the
Board, a Vice Chairman of the Board, the President or a Vice President, of the
Company and delivered to the Trustee. The officer signing the Company’s
Officer’s Certificate given pursuant to Section 1004 shall be the principal
executive, financial or accounting officer of the Company.

     “Opinion of Counsel” means, as to the Company, a written opinion of
counsel, who may be counsel for the Company and who shall be acceptable to the
Trustee.

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

4

 

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

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

		
	 	     (2) 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;

		
	 	     (3) Securities as to which Defeasance has been effected pursuant to
Section 1402; and

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any
request, demand, authorization, direction, notice, consent, waiver or other
action hereunder as of any date, (A) the principal amount of an Original Issue
Discount Security which shall be deemed to be Outstanding shall be the amount
of the principal thereof which would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 502, (B)
if, as of such date, the principal amount payable at the Stated Maturity of a
Security is not determinable, the principal amount of such Security which shall
be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 301, (C) the principal amount of a Security denominated
in one or more foreign currencies or currency units which shall be deemed to be
Outstanding shall be the U.S. dollar equivalent, determined as of such date in
the manner provided as contemplated by Section 301, of the principal amount of
such Security (or, in the case of a Security described in Clause (A) or (B)
above, of the amount determined as provided in such Clause), and (D) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent, waiver or other action, only Securities which the Trustee knows to be
so owned shall be so disregarded. Securities so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor.

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

5

 

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

     “Place of Payment”, when used with respect to the Securities of any
series, means the place or places where the principal of and any premium and
interest on the Securities of that series are payable as specified as
contemplated by Section 301.

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

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

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

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

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

     “Securities Act” means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time. “Security
Register” and “Security Registrar” have the respective meanings specified in
Section 305.

     “Senior Debt” with respect to any series of Securities shall have the
meaning specified as contemplated by Section 301.

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

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

     “Subsidiary” of any Person means (1) a corporation more than 50% of the
combined voting power of the outstanding Voting Stock of which is owned,
directly or indirectly, by such Person or by one or more other Subsidiaries of
such Person or by such Person and one or more Subsidiaries thereof or (2) any
other Person (other than a corporation) in which such Person, or one or more
other Subsidiaries of such Person or such Person and one or more other
Subsidiaries thereof, directly or indirectly, has at least a majority ownership
and power to direct the policies, management and affairs thereof.

6

 

     “Subsidiary Guarantors” means the Person or Persons named as the
“Subsidiary Guarantors” in the first paragraph of this instrument until a
successor Person or Persons shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Subsidiary Guarantors” shall mean
such successor Person or Persons, and any other Subsidiary of the Company who
may execute this Indenture, or a supplement thereto, for the purpose of
providing a Guarantee of Securities pursuant to this Indenture.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at
the date as of which this instrument was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, “Trust
Indenture Act” means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

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

     “U.S. Government Obligation” has the meaning specified in Section 1404.

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

     “Voting Stock” of any Person means Capital Stock of such Person which
ordinarily has voting power for the election of directors (or persons
performing similar functions) of such Person, whether at all times or only so
long as no senior class of securities has such voting power by reason of any
contingency.

     “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person
all of the outstanding Capital Stock or other ownership interests of which
(other than directors’ qualifying shares) shall at the time be owned by such
Person or by one or more Wholly Owned Subsidiaries of such Person or by such
Person and one or more Wholly Owned Subsidiaries of such Person.

SECTION 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take or
refrain from taking any action under any provision of this Indenture, the
Company shall furnish to the Trustee such certificates and opinions as may be
required under the Trust Indenture Act. Each such certificate or opinion shall
be given in the form of an Officer’s Certificate, if to be given by an officer
of the Company, or an Opinion of Counsel, if to be given by counsel, and shall
comply with the requirements of the Trust Indenture Act and any other
requirements set forth in this Indenture.

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

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

7

 

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

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

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

SECTION 103. Form of Documents Delivered to Trustee.

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

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

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

SECTION 104. Acts of Holders; Record Dates.

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

8

 

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

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

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

     The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series 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 of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series 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
by Holders of the requisite principal amount of Outstanding Securities of such
series 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 cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Securities of the relevant series on the date
such action is taken. 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 of the
relevant series in the manner set forth in Section 106.

     The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
join in the giving or making of (i) any Notice of Default, (ii) any declaration
of acceleration referred to in Section 502, (iii) any request to institute
proceedings referred to in Section 507(2) or (iv) any direction referred to in
Section 512, in each case with respect to Securities of such series. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of such series 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

9

 

on or prior to the applicable Expiration Date by Holders of the requisite
principal amount of Outstanding Securities of such series 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 cancelled and of no
effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken. 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 of the relevant series in the manner
set forth in Section 106.

     With respect to any record date set pursuant to this Section, the party
hereto which sets such record dates 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 of the relevant series in the manner set forth in
Section 106, 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, the party hereto which set such record date shall be deemed to have
initially designated the 180th day after such record 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 180th day after the applicable record date.

     Without limiting the foregoing, a Holder entitled hereunder 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.

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

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

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

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

SECTION 106. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class

10

 

postage prepaid, to each Holder affected by such event, at his address as
it appears in the Security Register, not later than the latest date (if any),
and not earlier than the earliest date (if any), prescribed for the giving of
such notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. If notice is mailed to Holders in the manner provided in this
Section 106, it is duly given, whether or not the addressee receives it. Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

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

SECTION 107. Conflict with Trust Indenture Act.

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

SECTION 108. Effect of Headings and Table of Contents.

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

SECTION 109. Successors and Assigns.

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

SECTION 110. Separability Clause.

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

SECTION 111. Benefits of Indenture.

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

11

 

SECTION 112. Governing Law.

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

SECTION 113. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, purchase
date or Stated Maturity of any Security shall not be a Business Day at any
Place of Payment, then (notwithstanding any other provision of this Indenture
or of the Securities (other than a provision of any Security which specifically
states that such provision shall apply in lieu of this Section)) payment of
interest or principal (and premium, if any) need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date, Redemption Date or purchase date, or at the Stated Maturity.

ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

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

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

SECTION 202. Form of Face of Security.

[Insert any legend required by the Internal Revenue Code and the regulations thereunder.]

Penn Virginia Corporation

	 	 	 
	No. 	 	$ 

12

 

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

     [If the Security is not to bear interest prior to Maturity, insert — The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal and any overdue premium shall
bear interest at the rate of      % per annum (to the extent that the payment of
such interest shall be legally enforceable), from the dates such amounts are
due until they are paid or made available for payment. Interest on any overdue
principal or premium shall be payable on demand. Any such interest on overdue
principal or premium which is not paid on demand shall bear interest at the
rate of      % per annum (to the extent that the payment of such interest on
interest shall be legally enforceable), from the date of such demand until the
amount so demanded is paid or made available for payment. Interest on any
overdue interest shall be payable on demand.]

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

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

13

 

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

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

	 	 	 	 	 
	Dated:	 	 	 	 
	 	 	 	 	 
	 	 	Penn Virginia Corporation
	 	 	 	 	 
	 	 	
By	 	 
	 	 	 	 	

SECTION 203. Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of           (herein called
the “Indenture”, which term shall have the meaning assigned to it in such
instrument), among the Company, the Subsidiary Guarantors and
          , as Trustee (herein called the “Trustee”,
which term includes any successor trustee under the Indenture), and reference
is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee, the holders of Senior Debt and the Holders of the Securities and of
the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof
[if applicable, insert —, limited in aggregate principal amount to
$     ].

     [If applicable, insert — The Securities of this series are subject to
redemption upon not less than 30 days’ notice by mail, [if applicable, insert
— (1) on      in any year commencing with the year      and ending
with the year      through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time
[if applicable, insert — on or after      , 19     ], as a whole or in part,
at the election of the Company, at the following Redemption Prices (expressed
as percentages of the principal amount): If redeemed [if applicable, insert —
on or before      ,      %, and if redeemed] during the 12-month period
beginning      of the years indicated,

	 	 	 	 	 	 	 
	 	 	Redemption

	 	 
	 	Redemption
	Year	 	Price
	 	Year
	 	Price
	
	 	

	 	

	 	

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

14

 

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

	 	 	 	 	 
	Year	 	
Redemption Price

For Redemption

Through Operation

of the

Sinking Fund
	 	Redemption Price For

Redemption Otherwise

Than Through Operation

of the Sinking Fund
	
	 	

	 	

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

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

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

     [If the Security is subject to redemption of any kind, insert — In the
event of redemption of this Security in part only, a new Security or Securities
of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.]

15

 

     The indebtedness evidenced by this Security is, to the extent provided in
the Indenture, subordinate and subject in right of payment to the prior payment
in full of all Senior Debt of the Company, 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 behalf to take such
action as may be necessary or appropriate to effectuate the subordination so
provided and (c) appoints the Trustee his attorney-in-fact for any and all such
purposes.

     [If applicable, insert — The Indenture contains provisions for Defeasance
at any time of [the entire indebtedness of this Security] [or] [certain
restrictive covenants and Events of Default with respect to this Security] [,
in each case] upon compliance with certain conditions set forth in the
Indenture.]

     [If the Security is convertible into Common Stock of the Company, insert
— Subject to the provisions of the Indenture, the Holder of this Security is
entitled, at its option, at any time on or before [insert date](except that, in
case this Security or any portion hereof shall be called for redemption, such
right shall terminate with respect to this Security or portion hereof, as the
case may be, so called for redemption at the close of business on the date
fixed for redemption as provided in the Indenture unless the Company defaults
in making the payment due upon redemption), to convert the principal amount of
this Security (or any portion hereof which is $1,000 or an integral multiple
thereof [if applicable, insert the equivalent thereof in one or more foreign
currencies, currency units or composite currencies]), into fully paid and
non-assessable shares (calculated as to each conversion to the nearest 1/100th
of a share) of the Common Stock of the Company, as said shares shall be
constituted at the date of conversion, at the conversion price of [$]     
principal amount of Securities for each share of Common Stock, or at the
adjusted conversion price in effect at the date of conversion determined as
provided in the Indenture, upon surrender of this Security, together with the
conversion notice hereon duly executed, to the Company at the designated office
or agency of the Company in      , accompanied (if so required by the
Company) by instruments of transfer, in form satisfactory to the Company and to
the Trustee, duly executed by the Holder or by its duly authorized attorney in
writing. Such surrendering shall, if made during any period beginning at the
close of business on a Regular Record Date and ending at the opening of
business on the Interest Payment Date next following such Regular Record Date
(unless this Security or the portion being converted shall have been called for
redemption on a Redemption Date during such period), also be accompanied by
payment of an amount equal to the Interest payable on such Interest Payment
Date on the principal amount of this Security then being converted. Subject to
the aforesaid requirement for payment and, in the case of a conversion after
the Regular Record Date next preceding any Interest Payment Date and on or
before such Interest Payment Date, to the right of the Holder of this Security
(or any Predecessor Security) of record at such Regular Record Date to receive
an installment of interest (with certain exceptions provided in the Indenture),
no adjustment is to be made on conversion for interest accrued hereon or for
dividends on shares of Common Stock issued on conversion. The Company is not
required to issue fractional shares upon any such conversion, but shall make
adjustment therefor in cash on the basis of the current market value of such
fractional interest as provided in the Indenture. The conversion price is
subject to adjustment as provided in the Indenture. In addition, the Indenture
provides that in case of certain consolidations or mergers to which the Company
is a party or the sale of substantially all of the assets of the Company, the
Indenture shall be amended, without the consent of any Holders of Securities,
so that this Security, if then outstanding, will be convertible thereafter,
during the period this Security shall be convertible

16

 

as specified above, only into the kind and amount of securities, cash and
other property receivable upon the consolidation, merger or sale by a holder of
the number of shares of Common Stock into which this Security might have been
converted immediately prior to such consolidation, merger or sale (assuming
such holder of Common Stock failed to exercise any rights of election and
received per share the kind and amount received per share by a plurality of
non-electing shares) [if applicable, insert— , assuming if such consolidation,
merger or sale is prior to [date], that this Security were convertible at the
time of such consolidation, merger or sale at the initial conversion price
specified above as adjusted from to such time pursuant to the Indenture]. In
the event of conversion of this Security in part only, a new Security or
Securities for the unconverted portion hereof shall be issued in the name of
the Holder hereof upon the cancellation hereof.]

     [If the Security is convertible into other securities or property, specify
the conversion features and the form of conversion notice pursuant to Section
204 hereof.]

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

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

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
at the time Outstanding of each series to be affected. The Indenture also
contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such

17

 

Event of Default as Trustee and offered the Trustee reasonable indemnity,
and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by
the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates
expressed herein.

     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 and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

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

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

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

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

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

SECTION 204. Form of Conversion Notice.

     To Penn Virginia Corporation

     The undersigned owner of this Security hereby irrevocably exercises the
option to convert this Security, or portion hereof (which is $1,000 or an
integral multiple thereof) below designated, into shares of Common Stock of the
Company in accordance with the terms of the Indenture referred to in this
Security, and directs that the shares issuable and deliverable upon the
conversion, together

18

 

with any check in payment for fractional shares and any Securities
representing any unconverted principal amount hereof, be issued and delivered
to the registered holder hereof unless a different name has been indicated
below. If this Notice is being delivered on a date after the close of business
on a Regular Record Date and prior to the opening of business on the related
Interest Payment Date (unless this Security or the portion thereof being
converted has been called for redemption on a Redemption Date within such
period), this Notice is accompanied by payment of an amount equal to the
interest payable on such Interest Payment Date of the principal of this
Security to be converted. If shares are to be issued in the name of a Person
other than the undersigned, the undersigned will pay all transfer taxes payable
with respect hereto. Any amount required to be paid by the undersigned on
account of interest accompanies this Security.

Principal Amount to be Converted (in an integral multiple of $1,000, if less
than all [if applicable, insert the equivalent thereof in one or more foreign
currencies, currency units or composite currencies]):

[$]   

Dated   

	 	 	 
	 	 	

	 
	 	 	

Signature

	 	 	 
	 	 	Signature(s) must be guaranteed
by an institution which is a
member of one of the following
recognized signature Guarantee
Programs:
	 	 	(i) The Securities Transfer Agent
Medallion Program (STAMP); (ii)
The New York Stock Exchange
Medallion Program (MNSP); (iii)
The Stock Exchange Medallion
Program (SEMP) or (iv) another
guarantee program acceptable to
the Trustee

	 	 	 
	 	 	

	 
	 	 	

Signature Guarantee

19

 

     Fill in for registration of shares of Common Stock and Security if to be
issued otherwise than to the registered holder.

	 
	
   

	
(Name)

	 
	
   

	
(Address)

Please print Name and Address

(including zip code number)

Social Security or other Taxpayer

Identifying Number

SECTION 205. Form of Legend for Global Securities.

     Unless otherwise specified as contemplated by Section 301 for the
Securities evidenced thereby, every Global Security authenticated and delivered
hereunder shall bear a legend in substantially the following form:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

SECTION 206. Form of Trustee’s Certificate of Authentication.

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

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

	 	 	 	 	 
	 	 	

As Trustee
	 ,

	 	 	 	 	 	 
	 	By	 	

	 	 
	 	 	 	
Authorized Officer	 	 

20

 

ARTICLE THREE

THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

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

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

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

          (2) any change to the subordination provisions which applies to the
Securities of the series from those contained in Article Twelve, and the
definitions of Senior Debt and Designated Senior Debt which shall apply to the
Securities of the series;

          (3) any limit upon the aggregate principal amount of the Securities of the
series which may be authenticated and delivered under this Indenture (except
for Securities authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other Securities of the series pursuant to
Section 304, 305, 306, 906, 1107 or 1302 and except for any Securities which,
pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);

          (4) the price or prices (expressed as a percentage of the principal amount
thereof) at which the Securities will be issued and, if other than the entire
principal amount thereof, the portion of the principal amount of any Securities
of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

          (5) whether Securities of the series are entitled to the benefits of any
Guarantee of any Subsidiary Guarantors pursuant to this Indenture;

          (6) if applicable, the terms of any right to convert or exchange
Securities of the series into shares of Common Stock or other Securities or
property of the Company or other issuers;

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

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

          (9) the rate or rates at which any Securities of the series shall bear
interest, if any, the date or dates from which any such interest shall accrue,
the Interest Payment Dates on which any such interest shall be payable and the
Regular Record Date for any such interest payable on any Interest Payment Date;

21

 

          (10) the place or places where the principal of and any premium and
interest on any Securities of the series shall be payable;

          (11) the period or periods within which, the price or prices at which and
the terms and conditions upon which any Securities of the series may be
redeemed, in whole or in part, at the option of the Company and, if other than
by a Board Resolution, the manner in which any election by the Company to
redeem the Securities shall be evidenced;

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

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

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

          (15) if other than the currency of the United States of America, the
currency, currencies or currency units in which the principal of or any premium
or interest on any Securities of the series shall be payable and the manner of
determining the equivalent thereof in the currency of the United States of
America for any purpose, including for purposes of the definition of
“Outstanding” in Section 101;

          (16) if the principal of or any premium or interest on any Securities of
the series is to be payable, at the election of the Company or the Holder
thereof, in one or more currencies or currency units other than that or those
in which such Securities are stated to be payable, the currency, currencies or
currency units in which the principal of or any premium or interest on such
Securities as to which such election is made shall be payable, the periods
within which and the terms and conditions upon which such election is to be
made and the amount so payable (or the manner in which such amount shall be
determined);

          (17) if the principal amount payable at the Stated Maturity of any
Securities of the series will not be determinable as of any one or more dates
prior to the Stated Maturity, the amount which shall be deemed to be the
principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall be
due and payable upon any Maturity other than the Stated Maturity or which shall
be deemed to be Outstanding as of any date prior to the Stated Maturity (or, in
any such case, the manner in which such amount deemed to be the principal
amount shall be determined);

          (18) any addition to or change in the Events of Default which applies to
any Securities of the series and any change in the right of the Trustee or the
requisite Holders of such Securities to declare the principal amount thereof
due and payable pursuant to Section 502;

22

 

          (19) if applicable, that the Securities of the series, in whole or any
specified part, shall be defeasible pursuant to Section 1402 or Section 1403 or
both such Sections and, if other than by a Board Resolution, the manner in
which any election by the Company to defease such Securities shall be
evidenced;

          (20) if applicable, that any Securities of the series shall be issuable in
whole or in part in the form of one or more Global Securities and, in such
case, the respective Depositories for such Global Securities, the form of any
legend or legends which shall be borne by any such Global Security in addition
to or in lieu of that set forth in Section 205 and any circumstances in
addition to or in lieu of those set forth in Clause (2) of the last paragraph
of Section 305 in which any such Global Security may be exchanged in whole or
in part for Securities registered, and any transfer of such Global Security in
whole or in part may be registered, in the name or names of Persons other than
the Depositary for such Global Security or a nominee thereof;

          (21) any addition to or change in the covenants set forth in Article Ten
which applies to Securities of the series; and

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

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

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

     The Securities shall be subordinated in right of payment to Senior Debt of
the Company as provided in Article Twelve.

SECTION 302. Denominations.

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

SECTION 303. Execution, Authentication, Delivery and Dating.

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

23

 

     The seal of the Company may be in the form of a facsimile thereof and may
be impressed, affixed, imprinted or otherwise reproduced on the Securities.
Securities bearing the manual or facsimile signatures of individuals who were
at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.

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

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

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

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

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

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

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the

24

 

form provided for herein executed by the Trustee by manual signature, and
such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.

SECTION 304. Temporary Securities.

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

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

SECTION 305. Registration, Registration of Transfer and Exchange.

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

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

     At the option of the Holder, Securities of any series may be exchanged for
other Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount, upon surrender of the Securities to
be exchanged at such office or agency. Whenever any Securities

25

 

are so surrendered for exchange, the Company shall execute and the Trustee
shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

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

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

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

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

     The provisions of Clauses (1), (2), (3) and (4) below shall apply only to
Global Securities:

          (1) Each Global Security authenticated under this Indenture shall be
registered in the name of the Depositary designated 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.

          (2) 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 (A) such Depositary (i) has notified the Company that it
is unwilling or unable to continue as Depositary for such Global Security or
(ii) has ceased to be a clearing agency registered under the Exchange Act, (B)
there shall have occurred and be continuing an Event of Default with respect to
such Global Security or (C) there shall exist such circumstances, if any, in
addition to or in lieu of the foregoing as have been specified for this purpose
as contemplated by Section 301.

          (3) Subject to Clause (2) above, any exchange of a Global Security for
other Securities may be made in whole or in part, and all Securities issued in
exchange for a Global Security or any portion thereof shall be registered in
such names as the Depositary for such Global Security shall direct.

26

 

          (4) 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, whether pursuant to this Section, Section 304, 306, 906 or 1107 or
otherwise, 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.

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

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

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

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

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

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

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

SECTION 307. Payment of Interest; Interest Rights Preserved.

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

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

          (1) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security of such
series and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this Clause
provided. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest which shall be not more than 15 days and not
less than 10 days prior to the date of the proposed payment and not less than
10 days after the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and,
in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor to be given to each Holder of Securities of such series in the manner
set forth in Section 106, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest
shall be paid to the Persons in whose names the Securities of such series (or
their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following Clause (2).

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

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

     Subject to the provisions of Section 1302, in the case of any Security
which is converted after any Regular Record Date and on or prior to the next
succeeding Interest Payment Date (other than any Security the principal of (or
premium, if any, on)) which shall become due and payable, whether at a Stated
Maturity or by declaration of acceleration, call for redemption, or otherwise,
prior to such Interest Payment Date), interest whose Stated Maturity is on such
Interest Payment Date shall be payable on such Interest Payment Date
notwithstanding such conversion and such interest (whether or not punctually
paid or duly provided for) shall be paid to the Person in whose name that
Security (or any one or more Predecessor Securities) is registered at the close
of business on such Regular

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Record Date. Except as otherwise expressly provided in the immediately
preceding sentence, in the case of any Security which is converted, interest
whose Stated Maturity is after the date of conversion of such Security shall
not be payable.

SECTION 308. Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the
Company, the Subsidiary Guarantors, the Trustee and any agent of the Company or
the Trustee may treat the Person in whose name such Security is registered as
the owner of such Security for the purpose of receiving payment of principal of
and any premium and (subject to Section 307) any interest on such Security and
for all other purposes whatsoever, whether or not such Security be overdue, and
none of the Company, the Subsidiary Guarantors, the Trustee nor any of their
respective agents shall be affected by notice to the contrary.

     None of the Company, the Subsidiary Guarantors, the Trustee, nor any of
their respective agents 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 Security or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.

SECTION 309. Cancellation.

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

SECTION 310. Computation of Interest.

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

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

     This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for),

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and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when

          (1) either

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

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

		
	 	     (i) have become due and payable, or

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

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

		
	 	and the Company in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as trust
funds in trust for the purpose money in an amount sufficient
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 to
the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

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

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

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

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SECTION 402. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium
and interest for whose payment such money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

SECTION 501. Events of Default.

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

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

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

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

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

          (5) the entry by a court having jurisdiction in the premises of (A) a
decree or order for relief in respect of the Company or, if any series of
Securities Outstanding under this Indenture is entitled to the benefits of a
Guarantee, in respect of any of the Subsidiary Guarantors, in an involuntary
case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order
adjudging the Company or, if any series of Securities Outstanding under this
Indenture is entitled to the benefits of a Guarantee, any of the Subsidiary
Guarantors, a bankrupt or insolvent, or approving as properly filed a petition
seeking

31

 

reorganization, arrangement, adjustment or composition of or in respect of
the Company or, if any series of Securities Outstanding under this Indenture is
entitled to the benefits of a Guarantee, any of the Subsidiary Guarantors,
under any applicable Federal or State law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or, if any series of Securities Outstanding under this Indenture
is entitled to the benefits of a Guarantee, of any of the Subsidiary
Guarantors, or of any substantial part of its or their property, or ordering
the winding up or liquidation of its or their affairs, and the continuance of
any such decree or order for relief or any such other decree or order unstayed
and in effect for a period of 60 consecutive days; or

          (6) the commencement by the Company or, if any series of Securities
Outstanding under this Indenture is entitled to the benefits of a Guarantee,
any of the Subsidiary Guarantors, of a voluntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it or them to the entry of a decree or order for
relief in respect of the Company or, if any series of Securities Outstanding
under this Indenture is entitled to the benefits of a Guarantee, in respect of
any of the Subsidiary Guarantors, in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against it or them, or the filing by it or them of a petition or
answer or consent seeking reorganization or relief under any applicable Federal
or State law, or the consent by it or them 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, if
any series of Securities Outstanding under this Indenture is entitled to the
benefits of a Guarantee, of any of the Subsidiary Guarantors, or of any
substantial part of its or their property, or the making by it or them of an
assignment for the benefit of creditors, or the admission by it or them in
writing of its or their inability to pay its or their debts generally as they
become due, or the taking of corporate action by the Company or, if any series
of Securities Outstanding under this Indenture is entitled to the benefits of a
Guarantee, by any of the Subsidiary Guarantors, in furtherance of any such
action; or

          (7) if any series of Securities Outstanding under this Indenture is
entitled to the benefits of a Guarantee, the Guarantee of any of the Subsidiary
Guarantors ceases to be in full force and effect with respect to Securities of
that series (except as otherwise provided in this Indenture) or is declared
null and void in a judicial proceeding or any of the Subsidiary Guarantors
denies or disaffirms its obligations under this Indenture or such Guarantee; or

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

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in
Section 501(5) or 501(6)) with respect to Securities of any series at the time
Outstanding occurs and is continuing, then in every such case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal amount of all the
Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately

32

 

due and payable. If an Event of Default specified in Section 501(5) or
501(6) with respect to Securities of any series at the time Outstanding occurs,
the principal amount of all the Securities of that series (or, if any
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified by the terms
thereof) shall automatically, and without any declaration or other action on
the part of the Trustee or any Holder, become immediately due and payable.

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

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

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

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

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

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

		
	 	   and

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

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

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

     If an Event of Default occurs and is continuing, the Trustee, in its own
name and as trustee of an express trust, shall be entitled and empowered to
institute any action or proceedings at law or in equity for the collection of
the sums so due and unpaid or enforce the performance of any provision of the
Securities of the affected series or this Indenture, and may prosecute any such
action or proceedings to judgment or final decree, and may enforce any such
judgment or final decree against the Subsidiary Guarantors or the Company or
any other obligor upon the Securities of such series (and collect in the manner
provided by law out of the property of the Subsidiary Guarantors or the Company
or any other obligor upon the Securities of such series wherever situated the
moneys adjudged or decreed to be payable).

33

 

SECTION 504. Trustee May File Proofs of Claim.

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

     No provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or
other similar committee.

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

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

SECTION 506. Application of Money Collected.

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

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

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

34

 

		
	 	     THIRD: The remainder, if any, shall be paid
to the Subsidiary Guarantors or the Company,
as applicable, its successors, or assigns, or
to whomsoever may be lawfully entitled to
receive the same, or as a court of competent
jurisdiction may direct.

SECTION 507. Limitation on Suits.

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

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

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

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

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

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

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

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

     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 and (subject to Section 307)
interest on such Security on the respective Stated Maturity or Maturities
expressed in such Security (or, in the case of redemption or offer by the
Company to purchase the Securities pursuant to the terms of this Indenture, on
the Redemption Date or purchase date, as applicable) and to convert such
Securities in accordance with the terms thereof, and to institute suit for the
enforcement of any such payment or right of conversion, and such rights shall
not be impaired without the consent of such Holder.

35

 

SECTION 509. Restoration of Rights and Remedies.

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

SECTION 510. Rights and Remedies Cumulative.

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

SECTION 511. Delay or Omission Not Waiver.

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

SECTION 512. Control by Holders.

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

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

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

SECTION 513. Waiver of Past Defaults.

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

36

 

          (1) in the payment of the principal of or any premium or interest on any
Security of such series (including any Security which is required to have been
purchased by the Company pursuant to an offer to purchase by the Company made
pursuant to the terms of this Indenture), or

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

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

SECTION 514. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit
to file an undertaking to pay the costs of such suit, and may assess costs
against any such party litigant, in the manner and to the extent provided in
the Trust Indenture Act; provided that neither this Section nor the Trust
Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the
Company.

SECTION 515. 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 SIX

THE TRUSTEE

SECTION 601. Certain Duties and Responsibilities.

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

37

 

SECTION 602. Notice of Defaults.

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

SECTION 603. Certain Rights of Trustee.

     Subject to the provisions of Section 601:

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

          (2) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order, and any
resolution of the Board of Directors shall be sufficiently evidenced by a Board
Resolution;

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

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

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

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

          (7) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be

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responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder.

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

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

SECTION 605. May Hold Securities.

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

SECTION 606. Money Held in Trust.

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

SECTION 607. Compensation and Reimbursement.

     The Company agrees

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

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

          (3) to indemnify the Trustee for, and to hold it harmless against, any
loss, liability or expense incurred without gross negligence or bad faith on
its part, arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. When the Trustee incurs
expenses or renders services after the occurrence of an Event of Default
specified in paragraph (5) or (6) of Section 501 of this Indenture, such
expenses and the compensation for such services are intended to constitute
expenses of administration under any Insolvency or Liquidation Proceeding. For
the purposes of this

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paragraph, “Insolvency” or Liquidation Proceeding” means, with respect to
any Person, (a) an insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or similar case or proceeding in
connection therewith, relative to such Person or its creditors, as such, or its
assets, or (b) any liquidation, dissolution or other winding-up proceeding of
such Person, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy or (c) any assignment for the benefit of creditors or
any other marshaling of assets and liabilities of such Person.

SECTION 608. Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series.

SECTION 609. Corporate Trustee Required; Eligibility.

     There shall at all times be one (and only one) Trustee hereunder with
respect to the Securities of each series, which may be Trustee hereunder for
Securities of one or more other series. Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such, and has a combined
capital and surplus of at least $50,000,000. If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of its supervising or examining authority, then for the purposes of this
Section and to the extent permitted by the Trust Indenture Act, the combined
capital and surplus of such Person 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 with respect to the Securities of any series shall
cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

SECTION 610. Resignation and Removal; Appointment of Successor.

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

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

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

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     If at any time:

          (1) the Trustee shall fail to comply with Section 608 after written
request therefor by the Company or by any Holder who has been a bona fide
Holder of a Security for at least six months, or

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

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

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

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

     The Company shall give notice of each resignation and each removal of the
Trustee with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner provided in Section 106. Each
notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

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SECTION 611. Acceptance of Appointment by Successor.

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

     In case of the appointment hereunder of a successor Trustee with respect
to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer
and confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates. Upon request of any such
successor Trustee, the Company shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in the first or second preceding
paragraph, as the case may be. No successor Trustee shall accept its
appointment unless at the time of such acceptance such successor Trustee shall
be qualified and eligible under this Article.

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

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the

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

SECTION 613. Preferential Collection of Claims Against Company.

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

SECTION 614. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to
one or more series of Securities which shall be authorized to act on behalf of
the Trustee to authenticate Securities of such series issued upon original
issue and upon exchange, registration of transfer or partial redemption thereof
or pursuant to Section 306, and Securities so authenticated shall be entitled
to the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee’s certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$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, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

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

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     An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 106 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

     The Trustee agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section, and the Trustee
shall be entitled to be reimbursed for such payments, subject to the provisions
of Section 607.

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

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

	 	 	 	 	 
	 	 	

As Trustee
	 ,

	 	 	 	 	 	 	 
	 	By	 	

As Authenticating Agent
	 ,	 

	 	 	 	 	 	 
	 	By	 	

	 	 
	 	 	 	
Authorized Officer	 	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

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

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

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

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

SECTION 702. Preservation of Information; Communications to Holders.

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

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

     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 any of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

SECTION 703. Reports by Trustee.

     The Trustee shall transmit to Holders such reports concerning the Trustee
and its actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto.

     A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange upon which any
Securities are listed, with the Commission and with the Company. The Company
will notify the Trustee when any Securities are listed on any stock exchange.

SECTION 704. Reports by Company.

     (a)  For so long as any series of Securities is Outstanding, the Company,
within 15 days after it files the same with the Commission, shall file with the
Trustee, copies of the annual reports and the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission
may by rules and regulations prescribe) that the Company is required to file
with the Commission pursuant to Section 13 or 15(d) of the Exchange Act. If
the Company is not subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act, the Company shall file with the Trustee within 15 days
after it would have been required to file the same with the Commission and
provide Holders with such annual reports and such information, documents and
other reports comparable to what the Company would have been required to file
with the Commission had it been subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act. The Company shall also comply with
the provisions of Trust Indenture Act Section 314(a).

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     (b)  The Company may request the Trustee on behalf of the Company at the
Company’s expense to mail the foregoing to Holders. In such case, the Company
shall provide the Trustee with a sufficient number of copies of all reports and
other documents and information that the Trustee may be required to deliver to
Holders under this Section.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

     The Company shall not, in a single transaction or a series of related
transactions, consolidate with or merge into any other Person or permit any
other Person to consolidate with or merge into the Company or, directly or
indirectly, transfer, convey, sell, lease or otherwise dispose of all or
substantially all of its assets, unless:

          (1) in a transaction in which the Company does not survive or in which the
Company transfers, conveys, sells, leases or otherwise disposes of all or
substantially all of its assets, the successor entity (for purposes of this
Article Eight, a “Successor Company”) shall be a corporation, partnership,
trust or other entity organized and validly existing under the laws of the
United States of America, any State thereof or the District of Columbia, and
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of and any premium and interest on all the
Securities and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed;

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

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

          (4) any other conditions provided pursuant to Section 301 with respect to
the Securities of a series are satisfied;

          (5) if the Company is not the continuing Person, then each Subsidiary
Guarantor, unless it has become the Successor Company, shall confirm that its
Guarantee shall continue to apply to the obligations under the Securities and
this Indenture; and

          (6) the Company has delivered to the Trustee an Officer’s Certificate and
an Opinion of Counsel, each stating that such consolidation, merger,
conveyance, transfer or lease and, if a supplemental indenture is required in
connection with such transaction, such supplemental

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indenture comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

SECTION 802. Successor Substituted.

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

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

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

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

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

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

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

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

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          (6) to secure the Securities; or

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

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

          (9) to permit the qualification of this Indenture or any Indenture
supplemental hereto under the Trust Indenture Act as then in effect, except
that nothing herein contained shall permit or authorize the inclusion in any
Indenture supplemental hereto of the provisions referred to in Section
316(a)(2) of the Trust Indenture Act;

          (10) to add Subsidiary Guarantors with respect to any or all of the
Securities; or

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

     The Trustee is hereby authorized to join with the Company and the
Subsidiary Guarantors in the execution of any such supplemental indenture, to
make any further appropriate agreements and stipulations which may be therein
contained and to accept the conveyance, transfer, assignment, mortgage or
pledge of any property thereunder.

     Any supplemental indenture authorized by the provisions of this Section
901 may be executed by the Company, the Subsidiary Guarantors and the Trustee
without the consent of the Holders of any of the Securities at the time
Outstanding, notwithstanding any of the provisions of Section 902.

SECTION 902. Supplemental Indentures With Consent of Holders.

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

          (1) change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Security, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the
redemption thereof, or reduce the amount of the principal of an

48

 

Original Issue Discount Security or any other Security which would be due
and payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 502, or change any Place of Payment where, or the coin or currency
in which, any Security or any premium or interest thereon is payable, or impair
the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date or in the case of an offer to purchase Securities which has
been made pursuant to a covenant contained in this Indenture, on or after the
applicable purchase date), or modify the provisions of this Indenture with
respect to the subordination of the Securities in a manner adverse to the
Holders, or

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

          (3) if applicable, make any change that adversely affects the right to
convert any Security to which the provisions of Article Thirteen are applicable
or, except as provided in this Indenture, decrease the conversion rate or
increase the conversion price of any Security, or

          (4) modify any of the provisions of this Section, Section 513 or Section
1009, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Out standing Security affected thereby; provided,
however, that this clause shall not be deemed to require the consent of any
Holder with respect to changes in the references to “the Trustee” and
concomitant changes in this Section and Section 1009, or the deletion of this
proviso, in accordance with the requirements of Sections 611 and 901(8); or

          (5) following the making of an offer to purchase Securities which has been
made pursuant to a covenant contained in this Indenture, modify the provisions
of this Indenture with respect to such offer to purchase in a manner adverse to
such Holder; or

          (6) except as provided in Section 1604, release the Subsidiary Guarantors
or modify the Guarantee in any manner adverse to the Holders.

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

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

SECTION 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying

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upon, an Officer’s Certificate and Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

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

SECTION 905. Conformity with Trust Indenture Act.

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

SECTION 906. Reference in Securities to Supplemental Indentures.

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

ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

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

SECTION 1002. Maintenance of Office or Agency.

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

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

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

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

     Whenever the Company shall have one or more Paying Agents for any series
of Securities, it will, prior to each due date of the principal of or any
premium or interest on any Securities of that series, deposit with a Paying
Agent a sum sufficient to pay such amount, such sum to be held as provided by
the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company or any other obligor upon the
Securities of that series in the making of any payment in respect of the
Securities of that series, 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 of that series.

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

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

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

SECTION 1004. Statement by Officers as to Default.

     (a)  The Company shall, so long as any series of Securities is Outstanding,
deliver to the Trustee, within 90 days after the end of each fiscal year of the
Company ending after the date hereof, an Officer’s Certificate, stating whether
or not to the best knowledge of the signers thereof the Company is in default
in the performance and observance of any of the terms, provisions and
conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company shall be in
default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

     (b)  The Company shall, so long as any series of Securities is Outstanding,
deliver to the Trustee, as soon as possible and in any event within five days
after the Company becomes aware of the occurrence of an Event of Default or an
event which, with notice or the lapse of time or both, would constitute an
Event of Default, an Officer’s Certificate setting forth the details of such
Event of Default or default, and the action which the Company proposes to take
with respect thereto.

SECTION 1005. Existence.

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

SECTION 1006. Maintenance of Properties.

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

SECTION 1007. Payment of Taxes and Other Claims.

     The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (1) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any

52

 

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

SECTION 1008. Maintenance of Insurance.

     The Company shall, and shall cause its Subsidiaries to, keep at all times
all of their properties which are of an insurable nature insured against loss
or damage with insurers believed by the Company to be responsible to the extent
that property of similar character is usually so insured by corporations
similarly situated and owning like properties in accordance with good business
practice.

SECTION 1009. Waiver of Certain Covenants.

     Except as otherwise specified as contemplated by Section 301 for
Securities of such series, the Company and the Subsidiary Guarantors may, with
respect to the Securities of any series, omit in any particular instance to
comply with any term, provision or condition set forth in any covenant provided
pursuant to Section 301(21), 901(2) or 901(7) for the benefit of the Holders of
such series if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series
shall, by Act of such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the Subsidiary Guarantors and the duties of the
Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

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

SECTION 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by
a Board Resolution or in another manner specified as contemplated by Section
301 for such Securities. In case of any redemption at the election of the
Company of less than all the Securities of any series (including any such
redemption affecting only a single Security), the Company shall, at least 60
days prior to the Redemption Date fixed by the Company (unless a shorter notice
shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date, of the principal amount of Securities of such series to be redeemed and,
if applicable, of the tenor of the Securities to be redeemed. In the case of
any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officer’s Certificate
evidencing compliance with such restriction.

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

     If less than all the Securities of any series are to be redeemed (unless
all the Securities of such series and of a specified tenor are to be redeemed
or unless such redemption affects only a single Security), the particular
Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series
not previously called for redemption, by such method as the Trustee shall deem
fair and appropriate and which may provide for the selection for redemption of
a portion of the principal amount of any Security of such series, 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. If less than all the Securities of such
series and of a specified tenor are to be redeemed (unless such redemption
affects only a single Security), the particular Securities to be redeemed shall
be selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence.

     If any Security selected for partial redemption is converted in part
before termination of the conversion right with respect to the portion of the
Security so selected, the converted portion of such Security shall be deemed
(so far as may be) to be the portion selected for redemption.
Securities which have been converted during a selection of Securities to
be redeemed shall be treated by the Trustee as Outstanding for the purpose of
such selection.

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

     The provisions of the two preceding paragraphs 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 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.

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

SECTION 1104. Notice of Redemption.

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

     All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

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          (3) if less than all the Outstanding Securities of any series consisting
of more than a single Security are to be redeemed, the identification (and, in
the case of partial redemption of any such Securities, the principal amounts)
of the particular Securities to be redeemed and, if less than all the
Outstanding Securities of any series consisting of a single Security are to be
redeemed, the principal amount of the particular Security to be redeemed,

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

          (5) if applicable, the conversion price, and that the date on which the
right to convert the principal of the Securities or the portions thereof to be
redeemed will terminate will be the Redemption Date and the place or places
where such Securities may be surrendered for conversion,

          (6) the place or places where each such Security is to be surrendered for
payment of the Redemption Price, and

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

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

SECTION 1105. Deposit of Redemption Price.

     Prior to any Redemption Date, the Company shall deposit with the Trustee
or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of money
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date, other than any Securities called for
redemption on that date which have been converted prior to the date of such
deposit.

     If any Security or portion thereof called for redemption is converted, any
money deposited with the Trustee or with any Paying Agent or so segregated and
held in trust for the redemption of such Security or portion thereof shall
(subject to any right of the Holder of such Security or any Predecessor
Security to receive interest as provided in the last paragraph of Section 307)
be paid to the Company upon Company Request or, if then held by the Company,
shall be discharged from such trust.

SECTION 1106. Securities Payable on Redemption Date.

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

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that, unless otherwise
specified as contemplated by Section 301, installments of interest whose Stated
Maturity is on or prior to the Redemption Date will be payable to the Holders
of such Securities, or one or more Predecessor Securities, registered as such
at the close of business on the relevant Record Dates according to their terms
and the provisions of Section 307.

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

SECTION 1107. Securities Redeemed in Part.

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

ARTICLE TWELVE

SUBORDINATION OF SECURITIES

SECTION 1201. Applicability of Article.

     Unless otherwise provided with respect to the Securities of any series in
or pursuant to the Board Resolution or supplemental indenture establishing such
series of Securities pursuant to Section 301, the provisions of this Article
shall be applicable to each series of Securities.

SECTION 1202. Securities Subordinate to Senior Debt.

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

     No provisions of this Article Twelve shall prevent the occurrence of any
Event of Default.

SECTION 1203. Payment Over of Proceeds Upon Dissolution, Etc.

     In the event of (a) any insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to the Company or to its
creditors, as such, or to its assets, or (b) any liquidation, dissolution or
other winding up of the Company, whether voluntary or involuntary and whether
or not involving insolvency or bankruptcy, or (c) any assignment for the
benefit of creditors or any other marshalling of assets and liabilities of the
Company, then and in any such event specified in (a), (b) or (c) above

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(each
such event, if any, herein sometimes referred to as a “Proceeding”) the holders
of Senior Debt of the Company shall be entitled to receive payment in full of
all amounts due or to become due on or in respect of all Senior Debt of the
Company, or provision shall be made for such payment in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior Debt
of the Company, before the Holders of the Securities are entitled to receive
any payment or distribution of any kind or character, whether in cash, property
or securities (including any payment or distribution which may be payable or
deliverable by reason of the payment of any other Debt of the Company
subordinated to the payment of the Securities, such payment or distribution
being hereinafter referred to as a “Junior Subordinated Payment”), on account
of principal of (or premium, if any) or interest on the Securities or on
account of any purchase or other acquisition of Securities by the Company or
any Subsidiary of the Company (all such payments, distributions, purchases and
acquisitions, other than the payment or distribution of stock or securities of
the Company referred to in the second succeeding paragraph, herein referred to,
individually and collectively, as a “Securities Payment”), and to that end the
holders of Senior Debt of the Company shall be entitled to receive, for
application to
the payment thereof, any Securities Payment which may be payable or
deliverable in respect of the Securities in any such Proceeding.

     In the event that, notwithstanding the foregoing provisions of this
Section, the Trustee or the Holder of any Security shall have received any
Securities Payment before all Senior Debt of the Company is paid in full or
payment thereof provided for in cash or cash equivalents or otherwise in a
manner satisfactory to the holders of Senior Debt of the Company, and if such
fact shall, at or prior to the time of such Securities Payment, have been made
known to the Trustee or, as the case may be, such Holder, then and in such
event such Securities Payment shall be paid over or delivered forthwith to the
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee,
agent or other Person making payment or distribution of assets of the Company
for application to the payment of all Senior Debt of the Company remaining
unpaid, to the extent necessary to pay all Senior Debt of the Company in full,
after giving effect to any concurrent payment or distribution to or for the
holders of Senior Debt of the Company.

     For purposes of this Article only, the words “any payment or distribution
of any kind or character, whether in cash, property or securities” shall not be
deemed to include a payment or distribution of stock or securities of the
Company provided for by a plan of reorganization or readjustment authorized by
an order or decree of a court of competent jurisdiction in a reorganization
proceeding under any applicable bankruptcy law or of any other corporation
provided for by such plan of reorganization or readjustment which stock or
securities are subordinated in right of payment to all then outstanding Senior
Debt of the Company to substantially the same extent as the Securities are so
subordinated as provided in this Article. The consolidation of the Company
with, or the merger of the Company into, another Person or the liquidation or
dissolution of the Company following the conveyance or transfer of all or
substantially all of its properties and assets as an entirety to another Person
upon the terms and conditions set forth in Article Eight shall not be deemed a
Proceeding for the purposes of this Section if the Person formed by such
consolidation or into which the Company is merged or the Person which acquires
by conveyance or transfer such properties and assets as an entirety, as the
case may be, shall, as a part of such consolidation, merger, conveyance or
transfer, comply with the conditions set forth in Article Eight.

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SECTION 1204. No Payment When Senior Debt of the Company in Default.

     In the event that any Senior Payment Default (as defined below) shall have
occurred and be continuing, then no Securities Payment shall be made unless and
until such Senior Payment Default shall have been cured or waived or shall have
ceased to exist or all amounts then due and payable in respect of Senior Debt
of the Company shall have been paid in full, or provision shall have been made
for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt of the Company; provided, however,
that nothing in this Section shall prevent the satisfaction of any sinking fund
payment in accordance with Article Fifteen by delivering and crediting pursuant
to Section 1502 Securities which have been acquired (upon redemption or
otherwise) prior to such Senior Payment Default.

     “Senior Payment Default” means any default in the payment of principal of
(or premium, if any) or interest on any Senior Debt of the Company when due,
whether at the Stated Maturity of any such payment or by declaration of
acceleration, call for redemption or otherwise.

     In the event that any Senior Nonmonetary Default (as defined below) shall
have occurred and be continuing, then, upon the receipt by the Company and the
Trustee of written notice of such Senior Nonmonetary Default from any holder,
or agent for the holders, of the Designated Senior Debt which is the subject of
such Senior Nonmonetary Default, no Securities Payment shall be made during the
period (the “Payment Blockage Period”) commencing on the date of such receipt
of such written notice and ending on the earlier of (i) the date on which such
Senior Nonmonetary Default shall have been cured or waived or shall have ceased
to exist or all Designated Senior Debt the subject of such Senior Nonmonetary
Default shall have been discharged; (ii) the 179th day after the date of such
receipt of such written notice; and (iii) the date on which the Payment
Blockage Period shall have been terminated by written notice to the Company or
the Trustee from the agent for the Designated Senior Debt initiating the
Payment Blockage Period; provided, however, that nothing in this Section shall
prevent the satisfaction of any sinking fund payment in accordance with Article
Fifteen by delivering and crediting pursuant to Section 1502 Securities which
have been acquired (upon redemption or otherwise) prior to the date of such
receipt of such written notice. No more than one Payment Blockage Period may
be commenced with respect to the Securities during any 360-day period and there
shall be a period of at least 181 consecutive days in each 360-day period when
no Payment Blockage Period is in effect. For all purposes of this paragraph,
no Senior Payment Default or Senior Nonmonetary Default that existed or was
continuing on the date of commencement of any Payment Blockage Period shall be,
or be made, the basis for the commencement of a subsequent Payment Blockage
Period, whether or not within a period of 360 consecutive days, unless such
Senior Payment Default or Senior Nonmonetary Default shall have been cured for
a period of not less than 90 consecutive days.

     “Senior Nonmonetary Default” means the occurrence or existence and
continuance of any event of default with respect to any Designated Senior Debt,
other than a Senior Payment Default, permitting the holders of such Designated
Senior Debt (or a trustee or agent on behalf of the holders thereof) to declare
such Designated Senior Debt due and payable prior to the date on which it would
otherwise become due and payable.

     In the event that, notwithstanding the foregoing, the Company shall make
any Securities Payment to the Trustee or any Holder prohibited by the foregoing
provisions of this Section, and if

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such fact shall, at or prior to the time of
such Securities Payment, have been made known to the Trustee or, as the case
may be, such Holder, then and in such event such Securities Payment shall be
paid over and delivered forthwith to the Company.

     The provisions of this Section shall not apply to any Securities Payment
with respect to which Section 1203 would be applicable.

SECTION 1205. Payment Permitted If No Default.

     Nothing contained in this Article or elsewhere in this Indenture or in any
of the Securities shall prevent (a) the Company, at any time except during the
pendency of any Proceeding referred to in Section 1203 or under the conditions
described in Section 1204, from making Securities Payments, or (b) the
application by the Trustee of any money deposited with it hereunder to
Securities Payments or the retention of such Securities Payment by the Holders,
if, at the time of such application by the Trustee, it did not have knowledge
that such Securities Payment would have been prohibited by the provisions of
this Article.

SECTION 1206. Subrogation to Rights of Holders of Senior Debt of the Company.

     Subject to the payment in full of all amounts due or to become due on or
in respect of Senior Debt of the Company, or the provision for such payment in
cash or cash equivalents or otherwise in a manner satisfactory to the holders
of Senior Debt of the Company, the Holders of the Securities shall be
subrogated to the rights of the holders of such Senior Debt of the Company to
receive payments and distributions of cash, property and securities applicable
to the Senior Debt of the Company until the principal of (and premium, if any)
and 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
the Company 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, and no payments over pursuant to the provisions of this Article to the
holders of Senior Debt of the Company by Holders of the Securities or the
Trustee, shall, as among the Company, its creditors other than holders of
Senior Debt of the Company 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 of
the Company.

SECTION 1207. Provisions Solely to Define Relative Rights.

     The provisions of this Article are and are intended solely for the purpose
of defining the relative rights of the Holders on the one hand and the holders
of Senior Debt of the Company on the other hand. Nothing contained in this
Article or elsewhere in this Indenture or in the Securities is intended to or
shall (a) impair, as among the Company, its creditors other than holders of
Senior Debt of the Company and the Holders of the Securities, the obligation of
the Company, which is absolute and unconditional (and which, subject to the
rights under this Article of the holders of Senior Debt of the Company, is
intended to rank equally with all other general obligations of the Company), to
pay to the Holders of the Securities the principal of (and premium, if any) and
interest on the Securities as and when the same shall become due and payable in
accordance with their terms; or (b) affect the relative rights against the
Company of the Holders of the Securities and creditors of the Company other
than the holders of Senior Debt of the Company; or (c) prevent the Trustee or
the Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon

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default under this Indenture, subject to the rights, if
any, under this Article of the holders of Senior Debt of the Company to receive
cash, property and securities otherwise payable or deliverable to the Trustee
or such Holder.

SECTION 1208. Trustee to Effectuate Subordination.

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

SECTION 1209. No Waiver of Subordination Provisions.

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

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

SECTION 1210. Notice to Trustee.

     The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by
the Trustee in respect of the Securities. Notwithstanding the provisions of
this Article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless
and until the Trustee shall have received written notice thereof from the
Company or a holder of Senior Debt of the Company or from any trustee therefor;
and, prior to the receipt of any such written notice, the Trustee, subject to
the provisions of Section 601, shall be entitled in all respects to assume that
no such facts exist; provided, however, that if the Trustee shall not have
received the notice provided for in this Section at least three Business Days
prior to the date upon which by the terms hereof any money may become payable
for any purpose (including, without limitation, the payment of the principal of
(and premium, if any) or interest on any Security), then, anything herein
contained to the

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contrary notwithstanding, the Trustee shall have full power
and authority to receive such money and to apply the same to the purpose for
which such money was received and shall not be affected by any notice to the
contrary which may be received by it within three Business Days prior to such
date.

     Subject to the provisions of Section 601, the Trustee shall be entitled to
rely on the delivery to it of a written notice by a Person representing himself
to be a holder of Senior Debt of the Company (or a trustee therefor) to
establish that such notice has been given by a holder of Senior Debt of the
Company (or a trustee 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 of the Company to participate in any payment or distribution
pursuant to this Article, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Debt of the Company 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, 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 1211. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets of the Company referred to in
this Article, the Trustee, subject to the provisions of Section 601, and the
Holders of the Securities shall be entitled to 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 of
the Company 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.

SECTION 1212. Trustee Not Fiduciary for Holders of Senior Debt of the Company.

     The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Debt of the Company 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 of the Company shall be entitled by virtue of this
Article or otherwise.

SECTION 1213. Rights of Trustee as Holder of Senior Debt of the Company;
Preservation of Trustee’s Rights.

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

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

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SECTION 1214. Article Applicable to Paying Agents.

     In case 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 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 in addition to or in place of the Trustee; provided,
however, that Section 1213 shall not apply to the Company or any Affiliate of the
Company if it or Affiliate acts as Paying Agent.

SECTION 1215. Defeasance of this Article Twelve.

     The subordination of the Securities of a series provided by this Article
Twelve is expressly made subject to the provisions for defeasance or covenant
defeasance in Article Fourteen hereof and, anything herein to the contrary
notwithstanding, upon the effectiveness of any such defeasance or covenant
defeasance, the Securities of such series then outstanding shall thereupon
cease to be subordinated pursuant to this Article Twelve.

ARTICLE THIRTEEN

CONVERSION OF SECURITIES

SECTION 1301. Applicability of Article.

     The provisions of this Article shall be applicable to the Securities of
any series which are convertible into shares of Common Stock of the Company,
and the issuance of such shares of Common Stock upon the conversion of such
Securities, except as otherwise specified as contemplated by Section 301 for
the Securities of such series.

SECTION 1302. Exercise of Conversion Privilege.

     In order to exercise a conversion privilege, the Holder of a Security of a
series with such a privilege shall surrender such Security to the Company at
the office or agency maintained for that purpose pursuant to Section 1002,
accompanied by written notice to the Company that the Holder elects to convert
such Security or a specified portion thereof. Such notice shall also state, if
different from the name and address of such Holder, the name or names (with
address) in which the certificate or certificates for shares of Common Stock
which shall be issuable on such conversion shall be issued. Securities
surrendered for conversion shall (if so required by the Company or the Trustee)
be duly endorsed by or accompanied by instruments of transfer in forms
satisfactory to the Company and the Trustee duly executed by the registered
Holder or its attorney duly authorized in writing; and Securities so
surrendered for conversion during the period from the close of business on any
Regular Record Date to the opening of business on the next succeeding Interest
Payment Date (excluding Securities or portions thereof called for redemption
during such period) shall also be accompanied by payment of an amount equal to
the interest payable on such Interest Payment Date on the principal amount of
such Security then being converted, and such interest shall be payable to such
registered Holder notwithstanding the conversion of such Security, subject to
the provisions of Section 307 relating to the payment of Defaulted Interest by
the Company. As promptly as practicable after the receipt of such notice and
of any payment required pursuant to a Board Resolution and, subject to Section
303, set forth, or determined in the manner provided, in an Officers’
Certificate, or established in one or more indentures supplemental hereto
setting forth the

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terms of such series of Security, and the surrender of such
Security in accordance with such reasonable procedures as the Company may
prescribe, the Company shall issue and shall deliver, at the office or agency
at which such Security is surrendered, to such Holder or on its written order,
a certificate or certificates for the number of full shares of Common Stock
issuable upon the conversion of such Security (or specified portion thereof), in accordance with the provisions of such
Board Resolution, Officers’ Certificate or supplemental indenture, and cash as
provided therein in respect of any fractional share of such Common Stock
otherwise issuable upon such conversion. Such conversion shall be deemed to
have been effected immediately prior to the close of business on the date on
which such notice and such payment, if required, shall have been received in
proper order for conversion by the Company and such Security shall have been
surrendered as aforesaid (unless such Holder shall have so surrendered such
Security and shall have instructed the Company to effect the conversion on a
particular date following such surrender and such Holder shall be entitled to
convert such Security on such date, in which case such conversion shall be
deemed to be effected immediately prior to the close of business on such date)
and at such time the rights of the Holder of such Security as such Security
Holder shall cease and the person or persons in whose name or names any
certificate or certificates for shares of Common Stock of the Company shall be
issuable upon such conversion shall be deemed to have become the Holder or
Holders of record of the shares represented thereby. Except as set forth above
and subject to the final paragraph of Section 307, no payment or adjustment
shall be made upon any conversion on account of any interest accrued on the
Securities surrendered for conversion or on account of any dividends on the
Common Stock of the Company issued upon such conversion.

     In the case of any Security which is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and
deliver to or on the order of the Holder thereof, at the expense of the
Company, a new Security or Securities of the same series, of authorized
denominations, in aggregate principal amount equal to the unconverted portion
of such Security.

SECTION 1303. No Fractional Shares.

     No fractional share of Common Stock of the Company shall be issued upon
conversions of Securities of any series. If more than one Security shall be
surrendered for conversion at one time by the same Holder, the number of full
shares which shall be issuable upon conversion shall be computed on the basis
of the aggregate principal amount of the Securities (or specified portions
thereof to the extent permitted hereby) so surrendered. If, except for the
provisions of this Section 1303, any Holder of a Security or Securities would
be entitled to a fractional share of Common Stock of the Company upon the
conversion of such Security or Securities, or specified portions thereof, the
Company shall pay to such Holder an amount in cash equal to the current market
value of such fractional share computed, (i) if such Common Stock is listed or
admitted to unlisted trading privileges on a national securities exchange, on
the basis of the last reported sale price regular way on such exchange on the
last trading day prior to the date of conversion upon which such a sale shall
have been effected, or (ii) if such Common Stock is not at the time so listed
or admitted to unlisted trading privileges on a national securities exchange,
on the basis of the average of the bid and asked prices of such Common Stock in
the over-the-counter market, on the last trading day prior to the date of
conversion, as reported by the National Quotation Bureau, Incorporated or
similar organization if the National Quotation Bureau, Incorporated is no
longer reporting such information, or if not so available, the fair market
price as determined by the Board of

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Directors. For purposes of this Section,
“trading day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday
other than any day an which the Common Stock is not traded on the New York
Stock Exchange, or if the Common Stock is not traded on the New
York Stock Exchange, on the principal exchange or market on which the
Common Stock is traded or quoted.

SECTION 1304. Adjustment of Conversion Price.

     The conversion price of Securities of any series that is convertible into
Common Stock of the Company shall be adjusted for any stock dividends, stock
splits, reclassification, combinations or similar transactions in accordance
with the term of the supplemental indenture or Board Resolutions setting forth
the terms of the Securities of such series.

     Whenever the conversion price is adjusted, the Company shall compute the
adjusted conversion price in accordance with terms of the applicable Board
Resolution or supplemental indenture and shall prepare an Officers’ Certificate
setting forth the adjusted conversion price and showing in reasonable detail
the facts upon which such adjustment is based, and such certificate shall
forthwith be filed at each office or agency maintained for the purpose of
conversion of Securities pursuant to Section 1002 and, if different, with the
Trustee. The Company shall forthwith cause a notice setting forth the adjusted
conversion price to be mailed, first class postage prepaid, to each Holder of
Securities of such series at its address appearing on the Security Register and
to any conversion agent other than the Trustee.

SECTION 1305. Notice of Certain Corporate Actions.

     In case:

     (a)  the Company shall declare a dividend (or any other distribution) on
its Common Stock payable otherwise than in cash out of its retained earnings
(other than a dividend for which approval of any stockholders of the Company is
required); or

     (b)  the Company shall authorize the granting to the holders of its Common
Stock of rights, options or warrants to subscribe for or purchase any shares of
capital stock of any class or of any other rights (other than any such grant
for which approval of any stockholders of the Company is required); or

     (c)  of any reclassification of the Common Stock of the Company (other than
a subdivision or combination of its outstanding shares of Common Stock, or of
any consolidation, merger or share exchange to which the Company is a party and
for which approval of any stockholders of the Company is required), or of the
sale of all or substantially all of the assets of the Company; or

     (d)  of the voluntary or involuntary dissolution, liquidation or winding up
of the Company;

then the Company shall cause to be filed with the Trustee, and shall cause to
be mailed to all Holders at their last addresses as they shall appear in the
Securities Register, at least 20 days (or 10 days in any case specified in
clause (a) or (b) above) prior to the applicable record date hereinafter
specified, a notice stating (i) the date on which a record is to be taken for
the purpose of such dividend,

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distribution, rights, options or warrants, or, if
a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution, rights, options or warrants are to be determined, or (ii) the
date on which such reclassification, consolidation, merger, share exchange,
sale, dissolution, liquidation or winding up is expected to become effective,
and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their shares of Common Stock for securities, cash
or other property deliverable upon such reclassification, consolidation,
merger, share exchange, sale, dissolution, liquidation or winding up. If at
any time the Trustee shall not be the conversion agent, a copy of such notice
shall also forthwith be filed by the Company with the Trustee.

SECTION 1306. Reservation of Shares of Common Stock.

     The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock, for the
purpose of effecting the conversion of Securities, the full number of shares of
Common Stock of the Company then issuable upon the conversion of all
outstanding Securities of any series that has conversion rights.

SECTION 1307. Payment of Certain Taxes Upon Conversion.

     The Company will pay any and all taxes that may be payable in respect of
the issue or delivery of shares of its Common Stock on conversion of Securities
pursuant hereto. The Company shall not, however, be required to pay any tax
which may be payable in respect of any transfer involved in the issue and
delivery of shares of its Common Stock in a name other than that of the Holder
of the Security or Securities to be converted, and no such issue or delivery
shall be made unless and until the Person requesting such issue has paid to the
Company the amount of any such tax, or has established, to the satisfaction of
the Company, that such tax has been paid.

SECTION 1308. Nonassessability.

     The Company covenants that all shares of its Common Stock which may be
issued upon conversion of Securities will upon issue in accordance with the
terms hereof be duly and validly issued and fully paid and nonassessable.

SECTION 1309. Effect of Consolidation or Merger on Conversion Privilege.

     In case of any consolidation of the Company with, or merger of the Company
into or with any other Person, or in case of any sale of all or substantially
all of the assets of the Company, the Company or the Person formed by such
consolidation or the Person into which the Company shall have been merged or
the Person which shall have acquired such assets, as the case may be, shall
execute and deliver to the Trustee a supplemental indenture in accordance with
Section 801 providing that the Holder of each Security then outstanding of any
series that is convertible into Common Stock of the Company shall have the
right, which right shall be the exclusive conversion right thereafter available
to said Holder (until the expiration of the conversion right of such Security),
to convert such Security into the kind and amount of shares of stock or other
securities or property (including cash) receivable upon such consolidation,
merger or sale by a holder of the number of shares of Common Stock of the
Company into which such Security might have been converted immediately prior to
such consolidation, merger or sale, subject to compliance with the other
provisions of this Indenture, such Security and such supplemental indenture. Such

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supplemental indenture shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in such Security. The above provisions of this Section shall
similarly apply to successive consolidations, mergers or sales. It is
expressly agreed and understood that anything in this Indenture to the contrary
notwithstanding, if, pursuant to such merger, consolidation or sale, holders of
outstanding shares of Common Stock of the Company do not receive shares of
common stock of the surviving corporation but receive other securities, cash or
other property or any combination thereof, Holders of Securities shall not have
the right to thereafter convert their Securities into common stock of the
surviving corporation or the corporation which shall have acquired such assets,
but rather, shall have the right upon such conversion to receive the other
securities, cash or other property receivable by a holder of the number of
shares of Common Stock of the Company into which the Securities held by such
holder might have been converted immediately prior to such consolidation,
merger or sale, all as more fully provided in the first sentence of this
Section 1309. Anything in this Section 1309 to the contrary notwithstanding,
the provisions of this Section 1309 shall not apply to a merger or
consolidation of another corporation with or into the Company pursuant to which
both of the following conditions are applicable: (i) the Company is the
surviving corporation and (ii) the outstanding shares of Common Stock of the
Company are not changed or converted into any other securities or property
(including cash) or changed in number or character or reclassified pursuant to
the terms of such merger or consolidation.

     As evidence of the kind and amount of shares of stock or other securities
or property (including cash) into which Securities may properly be convertible
after any such consolidation, merger or sale, or as to the appropriate
adjustments of the conversion prices applicable with respect thereto, the
Trustee shall be furnished with and may accept the certificate or opinion of an
independent certified public accountant with respect thereto; and, in the
absence of bad faith on the part of the Trustee, the Trustee may conclusively
rely thereon, and shall not be responsible or accountable to any Holder of
Securities for any provision in conformity therewith or approved by such
independent certified accountant which may be contained in said supplemental
indenture.

SECTION 1310. Duties of Trustee Regarding Conversion.

     Neither the Trustee nor any conversion agent shall at any time be under
any duty or responsibility to any Holder of Securities of any series that is
convertible into Common Stock of the Company to determine whether any facts
exist which may require any adjustment of the conversion price, or with respect
to the nature or extent of any such adjustment when made, or with respect to
the method employed, whether herein or in any supplemental indenture, any
resolutions of the Board of Directors or written instrument executed by one or
more officers of the Company provided to be employed in making the same.
Neither the Trustee nor any conversion agent shall be accountable with respect
to the validity or value (or the kind or amount) of any shares of Common Stock
of the Company, or of any securities or property, which may at any time be
issued or delivered upon the conversion of any Securities and neither the
Trustee nor any conversion agent makes any representation with respect thereto.
Subject to the provisions of Section 601, neither the Trustee nor any
conversion agent shall be responsible for any failure of the Company to issue,
transfer or deliver any shares of its Common Stock or stock certificates or
other securities or property upon the surrender of any Security for the purpose
of conversion or to comply with any of the covenants of the Company contained
in this Article Thirteen or in the applicable supplemental indenture, resolutions of the
Board of Directors or written instrument executed by one or more duly
authorized officers of the Company.

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SECTION 1311. Repayment of Certain Funds Upon Conversion.

     Any funds which at any time shall have been deposited by the Company or on
its behalf with the Trustee or any other paying agent for the purpose of paying
the principal of, and premium, if any, and interest, if any, on any of the
Securities (including funds deposited for the sinking fund referred to in
Article Three hereof) and which shall not be required for such purposes because
of the conversion of such Securities as provided in this Article Thirteen shall
after such conversion be repaid to the Company by the Trustee upon the
Company’s written request by Company Request.

ARTICLE FOURTEEN

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1401. Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may elect, at its option at any time, to have Section 1402 or
Section 1403 applied to any Securities or any series of Securities, as the case
may be, designated pursuant to Section 301 as being defeasible pursuant to such
Section 1402 or 1403, in accordance with any applicable requirements provided
pursuant to Section 301 and upon compliance with the conditions set forth below
in this Article. Any such election shall be evidenced in or pursuant to a
Board Resolution or in another manner specified as contemplated by Section 301
for such Securities.

SECTION 1402. Defeasance and Discharge.

     Upon the Company’s exercise of its option (if any) to have this Section
applied to any Securities or any series of Securities, as the case may be, the
Company shall be deemed to have been discharged from its obligations, and the
provisions of Article Twelve shall cease to be effective, with respect to such
Securities as provided in this Section on and after the date the conditions set
forth in Section 1404 are satisfied (hereinafter called “Defeasance”). For
this purpose, such Defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by such Securities and
to have satisfied all its other obligations under such Securities and this
Indenture insofar as such Securities are concerned (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), subject to the following which shall survive until otherwise terminated
or discharged hereunder: (1) the rights of Holders of such Securities to
receive, solely from the trust fund described in Section 1404 and as more fully
set forth in such Section, payments in respect of the principal of and any
premium and interest on such Securities when payments are due, (2) the
Company’s obligations with respect to such Securities under Sections 304, 305,
306, 1002 and 1003, (3) the rights, powers, trusts, duties and immunities of
the Trustee hereunder and (4) this Article. If the Company exercises its
defeasance option pursuant to this Section 1402, the Guarantee will terminate
with respect to that series of Securities. Subject to compliance with this
Article, the Company may exercise its option (if any) to have this Section
applied to any Securities notwithstanding the prior exercise of its option (if any) to
have Section 1403 applied to such Securities.

SECTION 1403. Covenant Defeasance.

     Upon the Company’s exercise of its option (if any) to have this Section
applied to any Securities or any series of Securities, as the case may be, (1)
the Company shall be released from its obligations under Section 801(4),
Sections 1006 through 1008, inclusive, and any covenants

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provided pursuant to
Section 301(21), 901(2) or 901(7) for the benefit of the Holders of such
Securities, (2) the occurrence of any event specified in Sections 501(4) (with
respect to any of Section 801(4), Sections 1006 through 1008, inclusive, and
any such covenants provided pursuant to Section 301(21), 901(2) or 901(7)), and
501(8) shall be deemed not to be or result in an Event of Default, (3) the
occurrence of any event specified in Section 501(5) or 501(6), as they relate
to the Subsidiary Guarantors only, shall be deemed not to be or result in an
Event of Default and (4) the provisions of Article Twelve shall cease to be
effective, in each case with respect to such Securities as provided in this
Section on and after the date the conditions set forth in Section 1404 are
satisfied (hereinafter called “Covenant Defeasance”). For this purpose, such
Covenant Defeasance means that, with respect to such Securities, the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such specified Section (to the extent
so specified in the case of Section 501(4)) or Article Twelve, whether directly
or indirectly by reason of any reference elsewhere herein to any such Section
or Article or by reason of any reference in any such Section or Article to any
other provision herein or in any other document, but the remainder of this
Indenture and such Securities shall be unaffected thereby.

SECTION 1404. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of Section 1402
or Section 1403 to any Securities or any series of Securities, as the case may
be:

          (1) The Company shall irrevocably have deposited or caused to be deposited
with the Trustee (or another trustee which satisfies the requirements
contemplated by Section 609 and agrees to comply with the provisions of this
Article applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefits of the Holders of such Securities, (A) money in an amount, or
(B) U.S. Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment, money in an
amount, or (C) 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,
and which shall be applied by the Trustee (or any such other qualifying
trustee) to pay and discharge, the principal of and any premium and interest on
such Securities on the respective Stated Maturities, in accordance with the
terms of this Indenture and such Securities. As used herein, “U.S. Government
Obligation” means (x) any security which is (i) a direct obligation of the
United States of America for the payment 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 the payment of which is
unconditionally 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 (y) any depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as
custodian with respect to any U.S. Government Obligation which is specified in
Clause (x) 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 U.S. Government Obligation which 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 U.S.

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Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

          (2) In the event of an election to have Section 1402 apply to any
Securities or any series of Securities, as the case may be, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (A) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling or (B) since the date of this instrument, there has been a
change in the applicable Federal income tax law, in either case (A) or (B) to
the effect that, and based thereon such opinion shall confirm that, the Holders
of such Securities will not recognize gain or loss for Federal income tax
purposes as a result of the deposit, Defeasance and discharge to be effected
with respect to such Securities and will be subject to Federal income tax on
the same amount, in the same manner and at the same times as would be the case
if such deposit, Defeasance and discharge were not to occur.

          (3) In the event of an election to have Section 1403 apply to any
Securities or any series of Securities, as the case may be, the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of such Securities will not recognize gain or loss for Federal income
tax purposes as a result of the deposit and Covenant Defeasance to be effected
with respect to such Securities and will be subject to Federal income tax on
the same amount, in the same manner and at the same times as would be the case
if such deposit and Covenant Defeasance were not to occur.

          (4) The Company shall have delivered to the Trustee an Officer’s
Certificate to the effect that neither such Securities nor any other Securities
of the same series, if then listed on any securities exchange, will be delisted
as a result of such deposit.

          (5) No event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to such Securities or any other
Securities shall have occurred and be continuing at the time of such deposit
or, with regard to any such event specified in Sections 501(5) and (6), at any
time on or prior to the 121st day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until after such
121st day).

          (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to
have a conflicting interest within the meaning of the Trust Indenture Act
(assuming all Securities are in default within the meaning of such Act).

          (7) Such Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under, any other agreement or instrument
to which the Company is a party or by which it is bound.

           (8) At the time of such deposit, (A) no default in the payment of any
principal of or premium or interest on any Senior Debt of the Company shall
have occurred and be continuing, (B) no event of default with respect to any
Senior Debt of the Company shall have resulted in such Senior Debt becoming,
and continuing to be, due and payable prior to the date on which it would
otherwise have become due and payable (unless payment of such Senior Debt has
been made or duly provided for), and (C) no other event of default with respect
to any Senior Debt of the Company shall have occurred and be continuing
permitting (after notice or lapse of time or both) the holders
of

69

 

such Senior
Debt (or a trustee on behalf of such holders) to declare such Senior Debt due
and payable prior to the date on which it would otherwise have become due and
payable.

          (9) The Company shall have delivered to the Trustee an Opinion of Counsel
to the effect that such deposit shall not cause either the Trustee or the trust
so created to be subject to the Investment Company Act of 1940.

          (10) The Company shall have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have been
complied with.

SECTION 1405. Deposited Money and U.S. Government Obligations to Be Held in
Trust; Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 1003, all money
and U.S. Government Obligations (including the proceeds thereof) deposited with
the Trustee or other qualifying trustee (solely for purposes of this Section
and Section 1406, the Trustee and any such other trustee are referred to
collectively as the “Trustee”) pursuant to Section 1404 in respect of any
Securities shall be held in trust and applied by the Trustee, in accordance
with the provisions of such Securities and this Indenture, to the payment,
either directly or through any such Paying Agent (including the Company acting
as its own Paying Agent) as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal
and any premium and interest, but money so held in trust need not be segregated
from other funds except to the extent required by law. Money and U.S.
Government Obligations so held in trust shall not be subject to the provisions
of Article Twelve.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1504 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of Outstanding Securities.

     Anything in this Article to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any
money or U.S. Government Obligations held by it as provided in Section 1404
with respect to any Securities which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect the Defeasance or Covenant
Defeasance, as the case may be, with respect to such Securities.

SECTION 1406. Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article with respect to any Securities by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the obligations under this
Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1402 or 1403 shall be revived and reinstated as
though no deposit had occurred pursuant to this Article with respect to such
Securities, until such time as the Trustee or Paying Agent is permitted to
apply all money held in trust pursuant to Section 1405 with respect to

70

 

such Securities in accordance with this Article; provided, however, that if the
Company makes any payment of principal of or any premium or interest on any
such Security following such reinstatement of its obligations, the Company
shall be subrogated to the rights (if any) of the Holders of such Securities to
receive such payment from the money so held in trust.

ARTICLE FIFTEEN

SINKING FUNDS

SECTION 1501. Applicability of Article.

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

     The minimum amount of any sinking fund payment provided for by the terms
of any Securities is herein referred to as a “mandatory sinking fund payment”,
and any payment in excess of such minimum amount provided for by the terms of
such Securities is herein referred to as an “optional sinking fund payment”.
If provided for by the terms of any Securities, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 1502. Each
sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.

SECTION 1502. Satisfaction of Sinking Fund Payments with Securities.

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

SECTION 1503. Redemption of Securities for Sinking Fund.

     Not less than 35 days prior to each sinking fund payment date for any
Securities, the Company will deliver to the Trustee an Officer’s Certificate
specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, the portion thereof, if
any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities pursuant
to Section 1502 and will also deliver to the Trustee any Securities to be so
delivered. Not less than 32 days prior to each such sinking fund payment date,
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in

71

 

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

ARTICLE SIXTEEN

GUARANTEE

SECTION 1601. Unconditional Guarantee.

     (a)  Notwithstanding any provision of this Article to the contrary, the
provisions of this Article shall be applicable only to, and inure solely to the
benefit of, the Securities of any series designated, pursuant to Section 301,
as entitled to the benefits of the Guarantee of each of the Subsidiary
Guarantors.

     (b)  For value received, each of the Subsidiary Guarantors hereby fully,
unconditionally and absolutely guarantees (the “Guarantee”) to the Holders and
to the Trustee the due and punctual payment of the principal of, and premium,
if any, and interest on the Securities and all other amounts due and payable
under this Indenture and the Securities by the Company, when and as such
principal, premium, if any, and interest shall become due and payable, whether
at the stated maturity or by declaration of acceleration, call for redemption
or otherwise, according to the terms of the Securities and this Indenture,
subject to the limitations set forth in Section 1603.

     (c)  Failing payment when due of any amount guaranteed pursuant to the
Guarantee, for whatever reason, each of the Subsidiary Guarantors will be
jointly and severally obligated to pay the same immediately. The Guarantee
hereunder is intended to be a general, unsecured, senior obligation of each of
the Subsidiary Guarantors and will rank pari passu in right of payment with all
debt of such Subsidiary Guarantor that is not, by its terms, expressly
subordinated in right of payment to the Guarantee. Each of the Subsidiary
Guarantors hereby agrees that its obligations hereunder shall be full,
unconditional and absolute, irrespective of the validity, regularity or
enforceability of the Securities, the Guarantee (including the Guarantee of any
other Subsidiary Guarantor) or this Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder of the Securities with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Company or any other Subsidiary Guarantor, or any action to enforce
the same or any other circumstances which might otherwise constitute a legal or
equitable discharge or defense of the Subsidiary Guarantors. Each of the
Subsidiary Guarantors hereby agrees that in the event of a default in payment
of the principal of, or premium, if any, or interest on the Securities, whether
at the Stated Maturity or by declaration of acceleration, call
for redemption or otherwise, legal proceedings may be instituted by the
Trustee on behalf of the Holders or, subject to Section 507, by the Holders, on
the terms and conditions set forth in this Indenture, directly against such
Subsidiary Guarantor to enforce the Guarantee without first proceeding against
the Company or any other Subsidiary Guarantor.

     (d)  The obligations of each of the Subsidiary Guarantors under this
Article shall be as aforesaid full, unconditional and absolute and shall not be
impaired, modified, released or limited by any occurrence or condition
whatsoever, including, without limitation, (A) any compromise, settlement,
release, waiver, renewal, extension, indulgence or modification of, or any
change in, any of the obligations and liabilities of the Company or any of the
Subsidiary Guarantors contained in the Securities or this Indenture, (B) any
impairment, modification, release or limitation of the

72

 

liability of the
Company, any of the Subsidiary Guarantors or either of their estates in
bankruptcy, or any remedy for the enforcement thereof, resulting from the
operation of any present or future provision of any applicable bankruptcy law,
or other statute or from the decision of any court, (C) the assertion or
exercise by the Company, any of the Subsidiary Guarantors or the Trustee of any
rights or remedies under the Securities or this Indenture or their delay in or
failure to assert or exercise any such rights or remedies, (D) the assignment
or the purported assignment of any property as security for the Securities,
including all or any part of the rights of the Company or any of the Subsidiary
Guarantors under this Indenture, (E) the extension of the time for payment by
the Company or any of the Subsidiary Guarantors of any payments or other sums
or any part thereof owing or payable under any of the terms and provisions of
the Securities or this Indenture or of the time for performance by the Company
or any of the Subsidiary Guarantors of any other obligations under or arising
out of any such terms and provisions or the extension or the renewal of any
thereof, (F) the modification or amendment (whether material or otherwise) of
any duty, agreement or obligation of the Company or any of the Subsidiary
Guarantors set forth in this Indenture, (G) the voluntary or involuntary
liquidation, dissolution, sale or other disposition of all or substantially all
of the assets, marshaling of assets and liabilities, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of, or other similar proceeding
affecting, the Company or any of the Subsidiary Guarantors or any of their
respective assets, or the disaffirmance of the Securities, the Guarantee or
this Indenture in any such proceeding, (H) the release or discharge of the
Company or any of the Subsidiary Guarantors from the performance or observance
of any agreement, covenant, term or condition contained in any of such
instruments by operation of law, (I) the unenforceability of the Securities,
the Guarantee or this Indenture or (J) any other circumstances (other than
payment in full or discharge of all amounts guaranteed pursuant to the
Guarantee) which might otherwise constitute a legal or equitable discharge of a
surety or guarantor.

     (e)  Each of the Subsidiary Guarantors hereby (A) waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
the merger, insolvency or bankruptcy of the Company or any of the Subsidiary
Guarantors, and all demands whatsoever, (B) acknowledges that any agreement,
instrument or document evidencing the Guarantee may be transferred and that the
benefit of its obligations hereunder shall extend to each holder of any
agreement, instrument or document evidencing the Guarantee without notice to it
and (C) covenants that the Guarantee will not be discharged except by complete
performance of the Guarantee. Each of the Subsidiary Guarantors further agrees
that if at any time all or any part of any payment theretofore applied by any
Person to the Guarantee is, or must be, rescinded or returned for any
reason whatsoever, including without limitation, the
insolvency, bankruptcy or reorganization of the Company or any of the
Subsidiary Guarantors, the Guarantee shall, to the extent that such payment is
or must be rescinded or returned, be deemed to have continued in existence
notwithstanding such application, and the Guarantee shall continue to be
effective or be reinstated, as the case may be, as though such application had
not been made.

     (f)  Each of the Subsidiary Guarantors shall be subrogated to all rights
of the Holders and the Trustee against the Company in respect of any amounts
paid by such Subsidiary Guarantor pursuant to the provisions of this Indenture,
provided, however, that such Subsidiary Guarantor, shall not be entitled to
enforce or to receive any payments arising out of, or based upon, such right of
subrogation until all of the Securities and the Guarantee shall have been paid
in full or discharged.

73

 

SECTION 1602. Execution and Delivery of Guarantee.

     To further evidence the Guarantee set forth in Section 1601, each of the
Subsidiary Guarantors hereby agrees that a notation relating to such Guarantee,
substantially in the form attached hereto as Annex A, shall be endorsed on each
Security entitled to the benefits of the Guarantee authenticated and delivered
by the Trustee and executed by either manual or facsimile signature of an
officer of such Subsidiary Guarantor, or in the case of a Subsidiary Guarantor
that is a limited partnership, an officer of the general partner of each
Subsidiary Guarantor. Each of the Subsidiary Guarantors hereby agrees that the
Guarantee set forth in Section 1601 shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation relating to
the Guarantee. If any officer of the Subsidiary Guarantor, or in the case of a
Subsidiary Guarantor that is a limited partnership, any officer of the general
partner of the Subsidiary Guarantor, whose signature is on this Indenture or a
Security no longer holds that office at the time the Trustee authenticates such
Security or at any time thereafter, the Guarantee of such Security shall be
valid nevertheless. The delivery of any Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Guarantee set forth in this Indenture on behalf of the Subsidiary Guarantors.

     The Trustee hereby accepts the trusts in this Indenture upon the terms and
conditions herein set forth.

SECTION 1603. Limitation on Subsidiary Guarantors’ Liability.

     Each Subsidiary Guarantor and by its acceptance hereof each Holder of a
Security entitled to the benefits of the Guarantee hereby confirm that it is
the intention of all such parties that the guarantee by such Subsidiary
Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or
conveyance for purposes of any Federal or state law. To effectuate the
foregoing intention, the Holders of a Security entitled to the benefits of the
Guarantee and the Subsidiary Guarantors hereby irrevocably agree that the
obligations of each Subsidiary Guarantor under its Guarantee shall be limited
to the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Subsidiary Guarantor and to any collections from or
payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Guarantee, result
in the obligations of such Subsidiary Guarantor under the Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under Federal or
state law.

SECTION 1604. Release of Subsidiary Guarantors from Guarantee.

     (a)  Notwithstanding any other provisions of this Indenture, the Guarantee
of any Subsidiary Guarantor may be released upon the terms and subject to the
conditions set forth in this Section 1604. Provided that no Default shall have
occurred and shall be continuing under this Indenture, any Guarantee incurred
by a Subsidiary Guarantor pursuant to this Article shall be unconditionally
released and discharged (i) automatically upon (A) any sale, exchange or
transfer, whether by way of merger or otherwise, to any Person that is not an
Affiliate of the Company, of all of the Company’s direct or indirect limited
partnership or other equity interests in such Subsidiary Guarantor (provided
such sale, exchange or transfer is not prohibited by this Indenture) or (B) the
merger of such Subsidiary Guarantor into the Company or any other Subsidiary
Guarantor or the liquidation and dissolution of such Subsidiary Guarantor (in
each case to the extent not prohibited by

74

 

this Indenture) or (ii) following
delivery of a written notice of such release or discharge by the Company to the
Trustee, upon the release or discharge of all guarantees by such Subsidiary
Guarantor of any debt of the Company other than obligations arising under this
Indenture and any Securities issued hereunder, except a discharge or release by
or as a result of payment under such guarantees.

     (b)  The Trustee shall deliver an appropriate instrument evidencing any
release of a Subsidiary Guarantor from the Guarantee upon receipt of a written
request of the Company accompanied by an Officers’ Certificate and an Opinion
of Counsel the Subsidiary Guarantor is entitled to such release in accordance
with the provisions of this Indenture. Any Subsidiary Guarantor not so
released remains liable for the full amount of principal of (and premium, if
any, on) and interest on the Securities entitled to the benefits of such
Guarantee as provided in this Indenture, subject to the limitations of Section
1603.

SECTION 1605. Subsidiary Guarantor Contribution.

     In order to provide for just and equitable contribution among the
Subsidiary Guarantors, the Subsidiary Guarantors hereby agree, inter se, that
in the event any payment or distribution is made by any Subsidiary Guarantor (a
“Funding Guarantor”) under its Guarantee, such Funding Guarantor shall be
entitled to a contribution from each other Subsidiary Guarantor (if any) in a
pro rata amount based on the net assets of each Subsidiary Guarantor (including
the Funding Guarantor) for all payments, damages and expenses incurred by that
Funding Guarantor in discharging the Company’s obligations with respect to the
Securities or any other Subsidiary Guarantor’s obligations with respect to its
Guarantee.

75

 

     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.

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

	 	 	 	 	 
	 	 	Penn Virginia Corporation
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	President and Chief Executive Officer
	 	 	 	 	 
	 	 	Penn Virginia Holding Corp.
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	President
	 	 	 	 	 
	 	 	Penn Virginia Oil and Gas Corporation
	 	 	(a Virginia corporation)
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer
	 	 	 	 	 
	 	 	Penn Virginia Oil and Gas Corporation
	 	 	(a Texas Corporation)
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer
	 	 	 	 	 
	 	 	Penn Virginia Resource GP, LLC
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer
	 	 	 	 	 
	 	 	Penn Virginia Resource LP Corp.
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer

76

 

	 	 	 	 	 
	 	 	Kanawha Rail Corp.
	 	 	 	 	 
	 	 	
By
	

	 	 	 	A. James Dearlove
	 	 	 	Chief Executive Officer
	 	 	 	 	 
	 	 	, as Trustee
	 	 	 	 	 
	 	 	
By
	

77

 

ANNEX A

     NOTATION OF GUARANTEE

     Each of the Subsidiary Guarantors (which term includes any successor
Person under the Indenture), has fully, unconditionally and absolutely
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture, the due and punctual payment of the principal of,
and premium, if any, and interest on the Securities and all other amounts due
and payable under the Indenture and the Securities by the Company.

     The obligations of the Subsidiary Guarantors to the Holders of Securities
and to the Trustee pursuant to the Guarantee and the Indenture are expressly
set forth in Article Sixteen of the Indenture and reference is hereby made to
the Indenture for the precise terms of the Guarantee.

	 	 	 	 	 
	 	 	Penn Virginia Holding Corp.
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	President
	 	 	 	 	 
	 	 	Penn Virginia Oil and Gas Corporation
	 	 	(a Virginia corporation)
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer
	 	 	 	 	 
	 	 	Penn Virginia Oil and Gas Corporation
	 	 	(a Texas Corporation)
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer
	 	 	 	 	 
	 	 	Penn Virginia Resource GP, LLC
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer
	 	 	 	 	 
	 	 	Penn Virginia Resource LP Corp.
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer

78

 

	 	 	 	 	 
	 	 	Kanawha Rail Corp.
	 	 	 	 	 
	 	 	
By
	 	

	 	 	 	 	A. James Dearlove
	 	 	 	 	Chief Executive Officer

792003-Q4 Floating Rate Note

     EXHIBIT 4.1

      

     UNLESS THIS SECURITY (AS DEFINED
     HEREIN) IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
     TRUST COMPANY, A NEW YORK CORPORATION (THE "DEPOSITARY") TO THE
     COMPANY (AS DEFINED HEREIN) OR ITS AGENT FOR REGISTRATION OF TRANSFER,
     EXCHANGE OR PAYMENT, AND ANY CERTIFICATE TO BE ISSUED IS REGISTERED IN THE
     NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
     AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY AMOUNT PAYABLE
     THEREUNDER IS MADE PAYABLE TO CEDE & CO. OR TO SUCH OTHER NAME AS IS
     REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER,
     PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
     WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
     INTEREST HEREIN.

     UNLESS AND UNTIL THIS SECURITY IS
     EXCHANGED IN WHOLE OR IN PART FOR CERTIFICATED SECURITIES REGISTERED IN THE
     NAMES OF THE VARIOUS BENEFICIAL HOLDERS HEREOF AS THEN CERTIFIED TO THE
     COMPANY BY THE DEPOSITARY OR A SUCCESSOR DEPOSITARY, THIS SECURITY MAY NOT
     BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
     DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
     NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
     SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

     WASHINGTON MUTUAL,
     INC.

     FLOATING RATE NOTES
     DUE NOVEMBER 3, 2005

     	No. 1	
                    $400,000,000

		
                    CUSIP: 
                    939322 AJ 2

            
     WASHINGTON MUTUAL, INC., a Washington corporation (hereinafter called the
     "Company," which term shall refer to such Company until a
     successor corporation shall have become such pursuant to the provisions of
     the Indenture referred to herein and thereafter "Company" shall
     mean such successor corporation), for value received, hereby promises to
     pay to Cede & Co., or registered assigns, the principal sum of FOUR
     HUNDRED MILLION ($400,000,000) on November 3, 2005, and to and to pay
     interest thereon at the rate of 1.4325% per annum (the "Initial
     Interest Rate") from and including November 3, 2003 (the
     "Original Issue Date") to but excluding February 3, 2004 and
     thereafter at a rate per annum equal to LIBOR (as defined below) plus 0.27%
     per annum until the principal hereof is paid or duly made available for
     payment, quarterly in arrears on February 3, May 3, August 3 and November 3
     of each year (each such date, an "Interest Payment Date"),
     commencing on February 3, 2004, and on the Maturity Date.  Interest
     will be computed based on an actual/360 day count basis.  Interest
     payments for this Security shall include accrued interest from and
     including the Original Issue Date or from and including the last date in
     respect of which interest has been paid or duly provided for, as the case
     may be, to but excluding the Interest Payment Date or Maturity Date (except
     as described below), as the case may be.

     

      

            
     If any Interest Payment Date, other than the Maturity Date, falls on a day
     that is not a Business Day (as defined below), the interest payment shall
     be postponed to the next day that is a Business Day, except if that
     Business Day is in the next succeeding calendar month, the Interest Payment
     Date shall be the immediately preceding Business Day. If the Maturity Date
     falls on a day that is not a Business Day, the payment of interest and
     principal on this Security shall be made on the next succeeding Business
     Day, and no interest on such payment shall accrue for the period from and
     after the Maturity Date.

            
     The rate of interest on this Security shall be reset quarterly (the
     "Interest Reset Period," and the first day of each Interest Reset
     Period being an "Interest Reset Date"). The Interest Reset Dates
     shall be February 1, May 1, August 1 and November 1 of each year; provided
     that the interest rate in effect from the Original Issue Date to but
     excluding the first Interest Reset Date shall be the Initial Interest
     Rate.  If any Interest Reset Date falls on a day that is not a
     Business Day (as defined below), the Interest Reset Date shall be postponed
     to the next day that is a Business Day, except if that Business Day is in
     the next succeeding calendar month, the Interest Reset Date shall be the
     next preceding Business Day.

            
     As used herein, "Business Day" means any day, other than a
     Saturday or Sunday, that is neither a legal holiday nor a day on which
     banking institutions are authorized or required by law or regulation to
     close in The City of New York.

            
     The Bank of New York is the "Calculation Agent" for this
     Security. Upon the request of the Holder of this Security, the Calculation
     Agent shall provide the interest rate then in effect and, if determined,
     the interest rate that shall become effective on the next Interest Reset
     Date.

     

                
     The Calculation Agent shall determine the Initial Interest Rate on the
     second London banking day preceding the Original Issue Date and interest
     rate for each succeeding Interest Reset Period by reference to LIBOR on the
     second London banking day preceding the applicable Interest Reset Date
     (each such day, an "Interest Determination Date"). "London
     banking day" means any day on which dealings in deposits in U.S.
     dollars are transacted in the London interbank market.

                
     "LIBOR" shall be determined by the Calculation Agent as follows:

                
     (i)  As of each Interest Determination Date, LIBOR shall be the rate
     for deposits in U.S. dollars for a period of three months, commencing on
     the related Interest Reset Date, that appears on Page 3750, or any
     successor page, on Moneyline Telerate Inc., or any successor service, at
     approximately 11:00 a.m., London time, on such Interest Determination Date.

                
     (ii)  If no rate so appears, then the Calculation Agent shall request
     the principal London offices of each of four major reference banks in the
     London interbank market, as selected by the Calculation Agent after
     consultation with the Issuer, to provide the Calculation Agent with its
     offered quotation for deposits in U.S. dollars for a period of three
     months, commencing on the related Interest Reset Date, to prime banks in
     the London interbank market at approximately 11:00 a.m., London time, on
     such Interest Determination Date and in a principal amount that is
     representative of a single transaction in U.S. dollars in that market at
     that time. If at least two quotations are provided, LIBOR determined on
     such Interest Determination Date shall be the arithmetic mean of those
     quotations. If fewer than two quotations are provided, LIBOR shall be
     determined for the related Interest Reset Date as the arithmetic mean of
     the rates quoted at approximately 11:00 a.m., New York City time, on that
     Interest Reset Date, by three major banks in New York City, as selected by
     the Calculation Agent after consultation with the Issuer, for loans in U.S.
     dollars to leading European banks, for a period of three months, commencing
     on the related Interest Reset Date, and in a principal amount that is
     representative of a single transaction in U.S. dollars in that market at
     that time. If the banks so selected by the

     2

     

      Calculation Agent are not
     quoting as set forth above, LIBOR for such Interest Determination Date
     shall remain LIBOR for the immediately preceding Interest Reset Period, or,
     if there was no such Interest Reset Period, the rate of interest payable
     shall be the Initial Interest Rate.

     

            
     Accrued interest on this Security shall be calculated by multiplying the
     principal amount hereof by an accrued interest factor. The accrued interest
     factor shall be computed by adding the interest factors calculated for each
     day in the period for which interest is being paid. The interest factor for
     each day is computed by dividing the interest rate applicable to that day
     by 360. The interest rate in effect on any Interest Reset Date shall be the
     applicable rate as reset on that date. The interest rate applicable to any
     other day is the interest rate from the immediately preceding Interest
     Reset Date, or if none, the Initial Interest Rate. All percentages used in
     or resulting from any calculation of the rate of interest on this
     Registered Global Security shall be rounded, if necessary, to the nearest
     one hundred-thousandth of a percentage point (with .000005% rounded up to
     .00001%), and all U.S. dollar amounts used in or resulting from these
     calculations shall be rounded to the nearest cent (with one-half cent
     rounded upward).

            
     The interest so payable, and punctually paid or duly provided for, on any
     Interest Payment Date will, as provided in such Indenture, be paid to the
     Person in whose name this Security (or one or more Predecessor Securities)
     is registered at the close of business on the Regular Record Date for such
     interest, which shall be (in each case whether or not a Business Day) the
     January 19, April 18, July 19 and October 19, as the case may be, next
     preceding such Interest Payment Date.  Any interest not punctually
     paid or duly provided for shall forthwith cease to be payable to the Holder
     on such Regular Record Date and may either be paid to the Person in whose
     name this Security (or one or more Predecessor Securities) is registered at
     the close of business on a Special Record Date for the payment of such
     Defaulted Interest to be fixed by the Trustee, notice whereof shall be
     given to Holders of Securities of this series not less than 10 days
     prior to such Special Record Date, or be paid at any time in any other
     lawful manner not inconsistent with the requirements of any securities
     exchange on which the Securities of this series may be listed, and upon
     such notice as may be required by such exchange, all as more fully provided
     in said Indenture.

            
     Payment of the principal of (and premium, if any, on) and interest, if any,
     on this Security will be made at the corporate trust office of the Trustee
     maintained for that purpose in the Borough of Manhattan, in The City of New
     York, or at such other office or agency that the Company will maintain for
     that purpose in New York City, 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; provided, however, that at the option of the
     Company, payment of interest may be made by check mailed to the address of
     the Person entitled thereto as such address shall appear in the Security
     Register.

     3

     

      

            
     This security is one of a duly authorized issue of securities of the
     Company (herein called the "Securities"), issued and to be issued
     in one or more series under an Indenture, dated as of August 10, 1999,
     between the Company and The Bank of New York, as Trustee (herein called the
     "Trustee," which term includes any successor trustee or trustees
     under the Indenture) as supplemented by a First Supplemental Indenture
     dated August 1, 2002 and a second Supplemental Indenture dated November 20,
     2002 (herein called the "Indenture"), to which Indenture and all
     indentures supplemental thereto reference is hereby made for a statement of
     the respective rights, limitations of rights, duties and immunities
     thereunder of the Company, the Trustee and the Holders of the Securities
     and of the terms upon which the Securities are, and are to be,
     authenticated and delivered.  This Security is one of the series
     designated on the face hereof, limited in aggregate principal amount to
     $400,000,000.

            
     Each Holder of the Securities, by the acceptance thereof, agrees to and
     shall be bound by such provisions of the Indenture. The Securities may not
     be redeemed by the Company prior to maturity.

            
     If an Event of Default with respect to Securities of this series shall
     occur and be continuing, the principal of the Securities of this series may
     be declared immediately due and payable in the manner and with the effect
     provided in the Indenture.

            
     The Indenture permits, with certain exceptions as therein provided, the
     amendment thereof and the modification of the rights and obligations of the
     Company and the rights of the Holders of the Securities of each series to
     be affected under the Indenture at any time by the Company and the Trustee
     with the consent of the Holders of not less than a majority in principal
     amount of the Securities at the time Outstanding of all series to be
     affected (acting as one class).  The Indenture also provides that,
     regarding the Securities of any series, the Holders of not less than a
     Majority in principal amount of the Securities at the time outstanding of
     such series may waive certain past defaults and their consequences on
     behalf of the Holders of all Securities of such series.  Any such
     consent or waiver by the Holder of this Security shall be conclusive and
     binding upon such Holder and upon all future Holders of this Security and
     of any Security issued upon the registration of transfer hereof or in
     exchange hereof or in lieu hereof, whether or not notation of such consent
     or waiver is made upon this Security.

            
     As provided in the Indenture, the Company shall be discharged from its
     obligations with respect to the Securities of any series when (1) with
     respect to all Outstanding Securities of such series, the Company has
     irrevocably deposited or caused to be deposited with the Trustee as a trust
     fund specifically pledged as security for, and dedicated solely to, the
     benefit of the Holders of the Securities of such series (i) money in
     an amount as will, or (ii) U.S. Government Obligations as will,
     together with the predetermined and certain income to accrue thereon
     without consideration of any reinvestment thereof, or (iii) a
     combination of (i) and (ii) as will (in a written opinion with respect to
     (ii) or (iii) of independent public accountants delivered to the Trustee),
     be sufficient to pay and discharge the entire indebtedness on all
     Outstanding Securities of such series for principal (and premium, if any)
     and interest, if any, to the Stated Maturity; and (2) the Company has
     paid or caused to be paid all other sums payable with respect to the
     Outstanding Securities of such series; and (3) the Company has
     delivered to the Trustee an Officers' Certificate and an Opinion of Counsel
     stating that all such conditions precedent have been complied with; and
     (4) the Company has delivered to the Trustee (i) a ruling
     directed to the Company and the Trustee from the United States Internal
     Revenue Service to the effect that Holders of the Securities of such series
     will not recognize income, gain or loss for Federal income tax purposes as
     a result thereof and will be subject to Federal income tax as if such
     option had not been exercised or (ii) an opinion of Counsel to the
     same effect and based upon a change in law.

     4

     

      

            
     No reference herein to the Indenture and no provisions of this Security or
     of the Indenture shall alter or impair the obligation of the Company, which
     is absolute and unconditional, to pay the principal of (and premium, if
     any) and interest, if any, on this Security at the times, place and rate,
     and in the coin or currency, herein and in the Indenture provided; subject,
     however, to the provisions for the discharge of the Company from its
     obligations under the Securities upon satisfaction of the conditions set
     forth in the preceding paragraph or in the Indenture.

            
     As provided in the Indenture, upon any consolidation or merger or any
     conveyance, transfer or lease of the properties and assets of the Company
     substantially as an entirety in accordance with the provisions of the
     Indenture, the successor corporation formed by such consolidation or into
     which the predecessor corporation is merged or to which such conveyance,
     transfer or lease is made shall be substituted for the predecessor
     corporation with the same effect as if such successor corporation had been
     named as the Company.  Thereafter the predecessor corporation shall be
     relieved of the performance and observance of all obligations and covenants
     of the Indenture and the Securities, including but not limited to the
     obligation to make payment of the principal of (and premium, if any, on)
     and interest, if any, on all the Securities then Outstanding, and, in the
     event of any such conveyance, transfer or lease, may be liquidated and
     dissolved.

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

            
     The Securities of this series are issuable only in registered form without
     coupons in denominations of $1,000 and any larger amount that is an
     integral multiple of $1,000.  As provided in the Indenture and subject
     to certain limitations therein set forth, Securities of this series are
     exchangeable for a like aggregate principal amount and tenor of Securities
     of this series of a different authorized denomination, upon surrender of
     the Securities to be exchanged at any such office or agency as described
     above.

     5

     

      

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

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

            
     As provided in the Indenture, no recourse shall be had for the payment of
     the principal of (or premium, if any, on) or the interest, if any, on this
     Security, or any part hereof, or for any claim based hereon or otherwise in
     respect hereof, or of the indebtedness represented hereby, or upon any
     obligation, covenant or agreement of the Company in the Indenture, against
     any incorporator, direct or indirect stockholder, officer or director, as
     such, past, present or future, of the Company or of any successor
     corporation (either directly or through the Company or any such successor
     corporation), whether by virtue of any constitutional provision, statute or
     rule of law, or by the enforcement of any assessment or penalty or
     otherwise, all liability, if any, of that character against every such
     incorporator, stockholder, officer and director being by the acceptance
     hereof, and as a condition of and as part of the consideration for the
     issue hereof, expressly waived and released.

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

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

            
     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.

     6

     

     
                 
          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
          executed and attested.
           

          
               	
                              WASHINGTON
                              MUTUAL, INC.

                               

                         
	
	
	
                              By: 
                                                                                  

                         
	
                              Name: 
                              Thomas W. Casey

                         
	
                              Title: 
                              Chief Financial Officer

                         

          

          Attest:

          By:                                                      

          Name: 

          Title: 

          TRUSTEE'S
          CERTIFICATE OF AUTHENTICATION

                 
          This is one of the Securities of the series designated and issued
          under the within mentioned Indenture.

                 
          Dated:  November 3, 2003

          
               	
                              THE BANK
                              OF NEW YORK, as Trustee

                               

                         
	
	
	
                              By:                                                      

                         
	
                                         
                              Authorized Signatory

                         
	

          

           

          7

          

           
          ABBREVIATIONS

          The following abbreviations,
          when used in the inscription on this Security, shall be construed as
          though they were written out in full according to applicable laws or
          regulations.

          	
                         TEN COM
                         -    as tenants in common

                         TEN ENT -      as tenants by
                         the entireties with right of survivorship and

                                                 
                         not as tenants in common

                         JT TEN
                         -         as
                         joint tenants with right of survivorship and not as

                                                 
                         tenants in common

                    	
                         UNIF GIFT MIN
                         ACT

                         ________________
                         Custodian

                         (Cust)

                         ------------------------------------

                         (Minor)

                         Under Uniform
                         Gifts to Minor Act

                         ------------------------------------

                         (State)

          Additional
          abbreviations may also be used though not in the above list.

          -----------------

           

          8

          

           
          
               
               	
                              FOR VALUE
                              RECEIVED, the undersigned hereby sells, assigns
                              and transfers to

                               

                         
	
                              INSERT
                              SOCIAL SECURITY OR

                         
	
                              OTHER
                              IDENTIFYING NUMBER OF ASSIGNEE

                         
	
                                                                                                                                                            

                    
	
                                                                                                                                                            

                    
	
                                                                                                                                                            

                    

               	
	
                         PLEASE
                         PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

                    
	
                                                                                                                                                            

                    
	
                                                                                                                                                            

                    

               	
                         the within
                         Security of Washington Mutual, Inc., and irrevocably
                         constitutes and appoints                                                                                                        
                           to transfer said Security

                         on the books of the within named Company, with full
                         power of substitution in the premises.

                    

               
          

           

          
               
               	
                              Dated:
                              ___________

                              

                               

                         	
                                                                             
                                         

                                                                             
                                         

                              The
                              signature to this assignment must correspond with
                              the name as written upon the face of the Security
                              in every particular without alteration or
                              enlargement, or any change whatsoever.

                              

                              Signatures must be guaranteed by an "eligible
                              guarantor institution" meeting the
                              requirements of the Security Registrar, which
                              requirements include membership or participation
                              in the Security Transfer Agent Medallion Program
                              ("STAMP") or such other "signature
                              guarantee program" as may be determined by
                              the Security Registrar in addition to, or in
                              substitution for, STAMP, all in accordance with
                              the Securities Exchange Act of 1934, as amended.

                         

               
          

          9

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