Document:

exv4w1

 

Exhibit 4.1

 

 

Indenture

among

Telefónica Emisiones, S.A.U.,

as Issuer,

Telefónica, S.A.,

as Guarantor

and

JPMorgan Chase Bank, N.A.,

as Trustee

, 2006

 

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE 1

	Definitions and Other Provisions of General Application

	 
	 	 	 	 	 	 
	SECTION 1.1.
	 	Definitions	 	 	2	 
	SECTION 1.2.
	 	Compliance Certificates and Opinions	 	 	19	 
	SECTION 1.3.
	 	Form of Documents Delivered to Trustee	 	 	20	 
	SECTION 1.4.
	 	Acts of Holders of Securities; Record Dates	 	 	22	 
	SECTION 1.5.
	 	Notices, Etc., to Trustee, Issuer and Guarantor	 	 	27	 
	SECTION 1.6.
	 	Notice to Holders; Waiver	 	 	28	 
	SECTION 1.7.
	 	Language of Notices, Etc.	 	 	29	 
	SECTION 1.8.
	 	Conflict with Trust Indenture Act	 	 	30	 
	SECTION 1.9.
	 	Effect of Headings and Table of Contents	 	 	30	 
	SECTION 1.10.
	 	Successors and Assigns	 	 	30	 
	SECTION 1.11.
	 	Separability Clause	 	 	30	 
	SECTION 1.12.
	 	Benefits of Indenture	 	 	31	 
	SECTION 1.13.
	 	Governing Law	 	 	31	 
	SECTION 1.14.
	 	Saturday, Sundays and Legal Holidays	 	 	31	 
	SECTION 1.15.
	 	Submission to Jurisdiction; Appointment of Agent for Service	 	 	32	 
	SECTION 1.16.
	 	Waiver of Jury Trial	 	 	34	 
	SECTION 1.17.
	 	Execution in Counterparts	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE 2

	The Securities

	 
	 	 	 	 	 	 
	SECTION 2.1.
	 	Forms of Security Certificates;
Amount Unlimited; Status of the Securities; Issuable in Series; Denominations	 	 	35	 
	SECTION 2.2.
	 	Form of Trustee’s Certificate of Authentication	 	 	44	 
	SECTION 2.3.
	 	Execution, Authentication, Delivery and Dating	 	 	45	 
	SECTION 2.4.
	 	Temporary Security Certificates	 	 	49	 
	SECTION 2.5.
	 	Exchange and Transfer	 	 	51	 
	SECTION 2.6.
	 	Registration, Registration of Transfer and Exchange	 	 	61	 
	SECTION 2.7.
	 	Mutilated, Destroyed, Lost and Stolen Security Certificates	 	 	64	 
	SECTION 2.8.
	 	Payment of Interest: Interest Rights Preserved	 	 	66	 
	SECTION 2.9.
	 	Persons Deemed Owners	 	 	70	 
	SECTION 2.10.
	 	Cancellation	 	 	70	 
	SECTION 2.11.
	 	Purchase of Securities	 	 	71	 
	SECTION 2.12.
	 	CUSIP Numbers	 	 	71	 
	 
	 	 	 	 	 	 
	ARTICLE 3

	The Guarantees

	 
	 	 	 	 	 	 
	SECTION 3.1.
	 	The Guarantees	 	 	72	 
	 
	 	 	 	 	 	 
	ARTICLE 4

	Satisfaction and Discharge

	 
	 	 	 	 	 	 
	SECTION 4.1.
	 	Satisfaction and Discharge of Indenture	 	 	74	 

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	 	 	 	 	Page
	SECTION 4.2.
	 	Application of Trust Money	 	 	77	 
	SECTION 4.3.
	 	Defeasance and Discharge of Securities of any Series	 	 	77	 
	 
	 	 	 	 	 	 
	ARTICLE 5

	Remedies

	 
	 	 	 	 	 	 
	SECTION 5.1.
	 	Events of Default	 	 	81	 
	SECTION 5.2.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	83	 
	SECTION 5.3.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	85	 
	SECTION 5.4.
	 	Trustee May File Proof of Claim	 	 	86	 
	SECTION 5.5.
	 	Trustee May Enforce Claims Without Possession of Securities	 	 	87	 
	SECTION 5.6.
	 	Application of Money Collected	 	 	88	 
	SECTION 5.7.
	 	Limitation on Suits	 	 	89	 
	SECTION 5.8.
	 	Unconditional Right of Holders
to Receive Principal, Premium, Interest and Additional Amounts	 	 	90	 
	SECTION 5.9.
	 	Restoration of Rights and Remedies	 	 	91	 
	SECTION 5.10.
	 	Rights and Remedies Cumulative	 	 	91	 
	SECTION 5.11.
	 	Delay or Omission Not Waiver	 	 	92	 
	SECTION 5.12.
	 	Control by Holders	 	 	92	 
	SECTION 5.13.
	 	Waiver of Past Defaults	 	 	93	 
	SECTION 5.14.
	 	Undertaking for Costs	 	 	94	 
	SECTION 5.15.
	 	Waiver of Stay or Extension Laws	 	 	95	 
	 
	 	 	 	 	 	 
	ARTICLE 6

	The Trustee

	 
	 	 	 	 	 	 
	SECTION 6.1.
	 	Certain Duties and Responsibilities	 	 	95	 
	SECTION 6.2.
	 	Notice of Defaults	 	 	98	 
	SECTION 6.3.
	 	Certain Rights of Trustee	 	 	99	 
	SECTION 6.4.
	 	Not Responsible for Recitals or Issuance of Securities	 	 	102	 
	SECTION 6.5.
	 	May Hold Securities	 	 	102	 
	SECTION 6.6.
	 	Money Held in Trust	 	 	103	 
	SECTION 6.7.
	 	Compensation and Reimbursement	 	 	103	 
	SECTION 6.8.
	 	Conflicting Interests	 	 	105	 
	SECTION 6.9.
	 	Corporate Trustee Required; Eligibility	 	 	105	 
	SECTION 6.10.
	 	Resignation and Removal; Appointment of Successor	 	 	106	 
	SECTION 6.11.
	 	Acceptance of Appointment by Successor	 	 	110	 
	SECTION 6.12.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	113	 
	SECTION 6.13.
	 	Preferential Collection of Claims Against Issuer or Guarantor	 	 	113	 
	SECTION 6.14.
	 	Appointment of Authenticating Agent	 	 	114	 
	SECTION 6.15.
	 	Trustee’s Application for Instructions from the Issuer	 	 	119	 
	SECTION 6.16.
	 	Appointment of Co-Trustee	 	 	119	 
	 
	 	 	 	 	 	 
	ARTICLE 7

	Holders’ Lists and Reports by Trustee, Issuer and Guarantor

	 
	 	 	 	 	 	 
	SECTION 7.1.
	 	Issuer and Guarantor to Furnish Trustee Names and Addresses of Holders	 	 	122	 
	SECTION 7.2.
	 	Preservation of Information; Communications to Holders	 	 	123	 

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	 	 	 	 	Page
	SECTION 7.3.
	 	Reports by Trustee	 	 	124	 
	SECTION 7.4.
	 	Reports by Issuer and Guarantor	 	 	125	 
	SECTION 7.5.
	 	Calculation of Original Issue Discount	 	 	126	 
	 
	 	 	 	 	 	 
	ARTICLE 8

	Consolidation, Merger, Conveyance, Transfer or Lease; Assumption

	 
	 	 	 	 	 	 
	SECTION 8.1.
	 	Merger, Consolidation, Etc., Only on Certain Terms	 	 	126	 
	SECTION 8.2.
	 	Successor Substituted	 	 	129	 
	SECTION 8.3.
	 	Assumption by Guarantor or Subsidiary of Issuer’s Obligations	 	 	130	 
	 
	 	 	 	 	 	 
	ARTICLE 9

	Supplemental Indentures

	 
	 	 	 	 	 	 
	SECTION 9.1.
	 	Supplemental Indentures Without Consent of Holders	 	 	132	 
	SECTION 9.2.
	 	Supplemental Indentures with Consent of Holders	 	 	132	 
	SECTION 9.3.
	 	Execution of Supplemental Indentures	 	 	132	 
	SECTION 9.4.
	 	Effect of Supplemental Indentures	 	 	132	 
	SECTION 9.5.
	 	Conformity with Trust Indenture Act	 	 	132	 
	SECTION 9.6.
	 	Reference in Securities to Supplemental Indentures	 	 	132	 
	 
	 	 	 	 	 	 
	ARTICLE 10

	Covenants

	 
	 	 	 	 	 	 
	SECTION 10.1.
	 	Payment of Principal, Premium, Interest and Additional Amounts	 	 	132	 
	SECTION 10.2.
	 	Maintenance of Office or Agency	 	 	132	 
	SECTION 10.3.
	 	Money for Securities Payments to Be Held in Trust	 	 	132	 
	SECTION 10.4.
	 	Additional Amounts	 	 	132	 
	SECTION 10.5.
	 	Statement by Officers as to Default	 	 	132	 
	SECTION 10.6.
	 	Existence	 	 	132	 
	SECTION 10.7.
	 	Limitation on Liens; Notarization	 	 	132	 
	SECTION 10.8.
	 	Covenant Defeasance of Securities of Any Series	 	 	132	 
	 
	 	 	 	 	 	 
	ARTICLE 11

	Redemption of Securities

	 
	 	 	 	 	 	 
	SECTION 11.1.
	 	Applicability of Article	 	 	132	 
	SECTION 11.2.
	 	Election to Redeem: Notice to Trustee	 	 	132	 
	SECTION 11.3.
	 	Selection by Trustee of Securities to Be Redeemed	 	 	132	 
	SECTION 11.4.
	 	Notice of Redemption	 	 	132	 
	SECTION 11.5.
	 	Deposit of Redemption Price	 	 	132	 
	SECTION 11.6.
	 	Securities Payable on Redemption Date	 	 	132	 
	SECTION 11.7.
	 	Securities Redeemed in Part	 	 	132	 
	SECTION 11.8.
	 	Early Redemption for Taxation Reasons	 	 	132	 
	 
	 	 	 	 	 	 
	ARTICLE 12

	Sinking Funds

	 
	 	 	 	 	 	 
	SECTION 12.1.
	 	Sinking Funds	 	 	132	 

iii 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	EXHIBIT A
	 	Form of Security Certificate	 	 	A-1	 
	EXHIBIT B
	 	Form of Guarantee	 	 	B-1	 

iv 

 

     This Indenture, dated as of      , 2006, among Telefónica Emisiones,
S.A.U., a sociedad anónima incorporated under the laws of the Kingdom of Spain (the “Issuer”),
Telefónica, S.A., a sociedad anónima incorporated under the laws of the Kingdom of Spain (the
“Guarantor”), and JPMorgan Chase Bank, N.A., a national banking association organized and existing
under the laws of the United States of America, as trustee (the “Trustee”);

Witnesseth:

     Whereas, the Issuer desires to provide for the issuance from time to time of its
unsecured debentures, notes or other evidences of indebtedness (herein called the “Securities”), to
be issued in one or more series as set forth in this Indenture;

     Whereas, the Guarantor desires to provide for the execution and delivery of the
Guarantees (as defined below) by it with respect to the Securities as set forth in this Indenture;
and

     Whereas, all things necessary to make this Indenture a valid agreement of the Issuer
and the Guarantor, in accordance with its terms, have been done;

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

ARTICLE 1

Definitions and Other Provisions of General Application

     SECTION 1.1. Definitions. For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

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

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

(c) 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”, or “GAAP”, with
respect to any computation required or permitted hereunder shall mean (i) in the case of
the Issuer’s and the Guarantor’s unconsolidated financial
statements, the accounting principles generally accepted in the Kingdom of Spain and (ii)
in the case of the Guarantor’s consolidated financial
statements, International Financial Reporting Standards as adopted by the European Union, in each case as in effect at
the date of
such computation and as applied by the Issuer or the Guarantor, as the case may be;

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

(e) 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 1.4.

     “Additional Amounts” means additional amounts payable pursuant to Section 10.4.

     “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.

     “Agent” means any Registrar or Paying Agent.

     “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
interests in any Security represented by a Global Certificate, the rules and procedures of the
Depositary and any other applicable clearing agency that apply to such transfer or exchange.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 6.14 to
act on behalf of the Trustee to authenticate Securities of one or more series.

     “Authentication Order” has the meaning specified in Section 2.3.

     “Beneficial Owner” means an owner of a beneficial interest in any Security of any series.

     “Board of Directors”, when used with reference to the Issuer or the Guarantor, means any
Director of the Issuer (Administrador Solidario) or the Consejo de Administración of the Guarantor,
as the case may be, or any committee thereof duly authorized to act for such body hereunder.

     “Board Resolution”, when used with reference to the Issuer, means a copy of a resolution
certified by any Director (Administrador Solidario) or, with reference to the Guarantor, means a
copy of a resolution certified by any member of the Board of Directors or the secretary or the
assistant secretary of the Guarantor, or, in each case, any

2

 

person duly appointed by a Director
(Administrador Solidario) or the Board of Directors, as the case may be, to have been duly adopted
by a Director (Administrador Solidario) or the Board of Directors, as the case may be, and to be in
full force and effect on the date of such certification, and in each case delivered to the Trustee.

     “Business Day”, with respect to the Securities of any series, means, except as otherwise
provided for the Securities of such series pursuant to Section 2.1, a day other than a Saturday, a
Sunday or any other day on which banking institutions in New York, New York, London, England or the
city of Madrid, Spain are authorized or required by law or executive order to close.

     “Certificated Security” means any Security that is not represented by a Global Certificate.

     “Code”
means the Internal Revenue Code of 1986, as amended.

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

     “Consolidated
Net Tangible Assets of the Guarantor” means, in accordance
with generally accepted accounting principles, the total amount of assets of the
Guarantor and its consolidated Subsidiaries, including investments in unconsolidated Subsidiaries,
after deduction of (i) goodwill, (ii) intangible assets, and(iii) amounts due from stockholders for
uncalled capital. Solely for purposes of this definition, “Subsidiary” means any company in
respect of which the Guarantor owns, directly or indirectly, more than half of the voting rights of
the shares of such company, or when the Guarantor owns half or less of the voting power but
controls such company, i.e. has the power to govern the financial and operating policies of such
company so as to obtain benefits from its activities.

     “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof is located at 4 New
York Plaza, 15th Floor, New York, New York 10004, Attention: Worldwide Securities
Services, or such other address as the Trustee may designate from time to time by notice to the
Holders, the Issuer and the Guarantor, or the principal corporate trust office of any successor
Trustee (or such other address as a successor Trustee may designate from time to time by notice to
the Holders, the Issuer and the Guarantor).

     “Covenant Defeasance” has the meaning specified in Section 10.8.

     “Defaulted Interest” has the meaning specified in Section 2.8.

     “Defeasance” has the meaning specified in Section 4.3.

     “Definitive Certificate” means a certificate representing one or more Certificated Securities.

3

 

     “Depositary” means, with respect to Securities of any series represented by one or more Global
Certificates, a clearing agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 2.1.

     “DTC” means The Depository Trust Company or its nominee.

     “Encumbrance” means any mortgage, pledge, security interest or lien.

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

     “Exchange Act” means the United States 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 1.4(e).

     “Global Certificate” means, with respect to any series of Securities, a single certificate
deposited with, and registered in the name of, the Depositary, or its agent or nominee,
representing the entire issue of Securities of such series, or if the rules of the Depositary or
any other clearing agency, or the applicable securities laws, rules or regulations of any
jurisdiction limit the maximum principal amount of the Securities of such series represented by any
Global Certificate, each of the minimum number of Global Certificates so deposited and registered
that are required to comply with such laws, rules and regulations while representing, in the
aggregate, the entire issue of Securities of such series.

     “Global Certificate Legend” means the legend set forth in Section 2.5(l), which is required to
be placed on all Global Certificates executed, delivered and authenticated under this Indenture.

     “Guarantee” means, with respect to any series of Securities, any guarantee of the Guarantor
endorsed on Securities of such series authenticated and delivered pursuant to this Indenture, which
shall be substantially in the form set forth on Exhibit B hereto.

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

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

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, 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. With respect to a
particular series of Securities the

4

 

term “Indenture” shall also include the terms of such series of
Securities, established as contemplated by Section 2.1.

     “Interest”, when used with respect to an Original Issue Discount Security, which by its terms
pays interest only upon Maturity, means interest payable upon Maturity. All references in this
Indenture to “interest” payable or to be paid in respect of any series of Securities, except as
otherwise expressly provided or where the context otherwise requires, shall be deemed to include
any accrued and unpaid premium and any Additional Amounts payable in respect of such series of
Securities.

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

     “Issuer” means the Person named as “Issuer” in the first paragraph of this Indenture until a
successor Person shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter “Issuer” shall mean such successor Person. The term “Issuer” shall also mean any
new issuer of Securities under this Indenture as contemplated by Section 9.1(a).

     “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.

     “OECD” has the meaning assigned to it in Section 8.1(a).

     “Officer’s Certificate” when used with reference to the Issuer, means a certificate signed by
a Director (Administrador Solidario) of the Issuer or, with reference to the Guarantor, means a
certificate signed by any member of the Board of Directors or the secretary or, in each case, any
person duly appointed in a Board Resolution of the Issuer or the Guarantor, as the case may be, and
in each case delivered to the Trustee. Any Person signing an Officer’s Certificate given pursuant
to Section 10.5 shall be the principal executive officer of the Issuer or the principal executive,
financial or accounting officer of the Guarantor, as the case may be.

     “Opinion of Counsel” means a written opinion of counsel reasonably acceptable to the Trustee,
who may be counsel for the Issuer or the Guarantor, or other counsel.

     “Order” means (i) with respect to the Issuer, a written request or order signed in the name of
the Issuer by a Director (Administrador Solidario) of the Issuer and (ii) with respect to the
Guarantor, a written request or order signed in the name of the Guarantor by any director or the
secretary of the Guarantor or, in each case, any person duly appointed in a Board Resolution of the
Issuer or the Guarantor, as the case may be, and in each case delivered to the Trustee.

5

 

     “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 5.2.

     “Outstanding”, when used with respect to the Securities of a series, means, as of the date of
determination, all Securities of such series represented by a Global Certificate or Definitive
Certificate theretofore authenticated and delivered under this Indenture, except:

(a) Securities of such series theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;

(b) Securities of such series for whose payment or redemption money in the necessary amount
to pay all principal, premium, if any, and interest thereon has been theretofore deposited
with the Trustee or any Paying Agent (other than the Issuer) in trust or set aside and
segregated in trust by the Issuer (if the Issuer 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;

(c) Securities of such series as to which Defeasance has been effected pursuant to Section
4.3; and

(d) Securities of such series which have been paid pursuant to Section 2.8 or Securities of
such series represented by a Global Certificate or Definitive Certificate in exchange for
or in lieu of which one or more other Global Certificates or Definitive Certificates 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 protected purchaser is whose hands such Securities are
valid obligations of the Issuer;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities of a series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (i) the principal amount of an
Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of the
principal thereof that would be due and payable as of the date of such determination upon
acceleration of the Maturity thereof pursuant to Section 5.2, (ii) the principal amount of a
Security denominated in one or more foreign currencies or currency units shall be the U.S. dollar
equivalent, determined in the manner provided as contemplated by Section 2.1 on the date of
original issuance of such Security, of the principal amount (or, in the case of an Original Issue
Discount Security, the U.S. dollar equivalent on the date of original issuance of such Security of
the amount determined as provided in (i) above) of such Security, (iii) if the principal amount
payable at Stated Maturity of any Security is not determinable upon original issuance, the
principal amount

6

 

of such Security that shall be deemed to be Outstanding shall be the amount as
specified or determined as contemplated by Section 2.1, and (iv) Securities owned by the Issuer,
the Guarantor or any other obligor upon the Securities or any Affiliate of the Issuer, the
Guarantor or of such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities so owned
which have been pledged in good turn 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 Issuer, the Guarantor or any other obligor upon the Securities or any
Affiliate of the Issuer, the Guarantor or of such other obligor.

     “Participant” means a Person who has an account with the Depositary.

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

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

     “Place of Payment”, with respect to the Securities of a series, means the place or places
where the principal of, any premium and interest on, and any Additional Amounts in respect of, the
Securities of such series are payable as contemplated by Section 2.1.

     “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 Securities represented by a Security Certificate authenticated and
delivered under Section 2.7 in exchange for or in lieu of a mutilated, destroyed, lost or stolen
Security Certificate shall be deemed to evidence the same debt as Securities represented by the
mutilated, destroyed, lost or stolen Security Certificate.

     “Redemption Date”, when used with respect to any Security of a series to be redeemed, means
the date fixed for such redemption pursuant to Section 2.1.

     “Redemption Price”, when used with respect to any Security of a series to be redeemed, means
the price at which such Security is to be redeemed fixed pursuant to Section 2.1.

     “Register” and “Registrar” have the respective meanings specified in Section 2.6.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of a series means the date specified for that purpose as contemplated by Section 2.1.

7

 

     “Relevant Indebtedness” means any obligation for the payment of borrowed money which is in the
form of, or represented or evidenced by, a certificate of indebtedness or in the form of, or
represented or evidenced by, bonds, notes or other securities which, in any of the above cases, is
or are, or is or are capable of being, quoted, listed, dealt in or traded on a stock exchange or
other recognized securities market. For the avoidance of doubt, any “obligation for the payment of
borrowed money” as used in this definition of Relevant Indebtedness does not include obligations of
the Issuer or the Guarantor which, pursuant to the requirements of law and accounting principles
generally accepted in the Kingdom of Spain need not, and are not, reflected in the balance sheet of
the Issuer or the Guarantor, as the case may be.

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

     “Securities” has the meaning assigned to it in the preamble to this Indenture.

     “Security Certificate” means each Global Certificate and each Definitive Certificate.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 2.8.

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

     “Subsidiary” means, in relation to any Person, any other Person (whether or not now existing)
which is controlled directly or indirectly, or more than 50% of whose issued equity share capital
(or equivalent) is then held or beneficially owned by, the first Person and/or any one or more of
the first Person’s Subsidiaries, and “control” means the power to appoint the majority of the
members of the governing body or management of, or otherwise to control the affairs and policies
of, that Person.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture
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 a series shall mean the Trustee with respect to Securities of such series.

8

 

     “Trust Indenture Act” means the United States Trust Indenture Act of 1939 as in force at the
date as of which this instrument was executed (except as provided in Section 9.5); 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.

     “United States” means the United States of America (including the states and the District of
Columbia) and its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands).

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

     SECTION 1.2. Compliance Certificates and Opinions.

(a) Upon any application or request by the Issuer or the Guarantor to the Trustee to take
any action under any provision of this Indenture, the Issuer or Guarantor, as the case may
be, 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 the
Issuer or the Guarantor, 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.

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

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

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

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

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

     SECTION 1.3. Form of Documents Delivered to Trustee.

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

(b) Any certificate or opinion of an officer of the Issuer or the Guarantor 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 Issuer or
the Guarantor stating that the information with respect to such factual matters is in the
possession of the Issuer or the Guarantor, 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.

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

     SECTION 1.4. Acts of Holders of Securities; Meetings; Record Dates.

(a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders of Securities of any series may
be embodied in and evidenced by one or more instruments of substantially similar tenor
signed by such Holders in person or by an agent duly appointed in writing 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
Issuer and the Guarantor. Such instrument or instruments (and the action embodied therein
and

10

 

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 6.1) conclusive in favor of the Trustee and the Issuer and the
Guarantor, if made in the manner provided in this Section.

(b) The fact and date of the execution by any Person of any such instrument or writing may
be proved by the affidavit of a witness of such execution or by a certificate of a notary
public or other officer authorized by law to take acknowledgments of deeds, certifying that
the individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than 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.

(c) The Issuer and the Guarantor may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of a 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 Issuer and the Guarantor 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 (as defined below) 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 Issuer or the Guarantor 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 Issuer and the Guarantor, at
their 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 1.6.

11

 

(d) 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 declaration of acceleration referred to in Section 5.2; (ii) any request to institute
proceedings referred to in Section 5.7(a); or (iii) any direction referred to in Section
5.12, 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 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 expense of the Issuer and the Guarantor,
shall cause notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Issuer and the Guarantor in writing and to each Holder
of Securities of the relevant series in the manner set forth in Section 1.6.

(e) With respect to any record date set pursuant to this Section with respect to the
Securities of a series, the party hereto which sets such record date may designate any day
as the “Expiration Date” and from time to time may change the Expiration Date to any
earlier or later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the other party or parties hereto in writing, and
to each Holder of Securities of the relevant series in the manner set form in Section 1.6,
on or prior to the first Business Day following the existing Expiration Date.
Notwithstanding the foregoing, no Expiration Date shall be designated later than the 180th
day after the applicable record date and, if an Expiration Date is not designated, with
respect to any record date set pursuant to this Section, the party or parties hereto which
set such record date shall be deemed to have designated the 180th day after such record
date as the Expiration Date with respect thereto.

(f) 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.

(g) The ownership of Securities of a series shall be proved by the applicable Register.

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(h) 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, the Issuer or the Guarantor in reliance thereon, whether or not notation of
such action is made upon such Security.

     SECTION 1.5. Notices, Etc., to Trustee, Issuer and Guarantor. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other document provided for
or permitted, by this Indenture to be made upon, given or furnished to, or filed with,

(a) the Trustee by any Holder or by the Issuer or the Guarantor shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing (or sent by facsimile
and confirmed in writing) to or with the Trustee at its Corporate Trust Office, Attention:
International and Project Finance Team; or

(b) the Issuer or the Guarantor by the Trustee or by any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in writing and
mailed (or sent by facsimile and confirmed in writing),
in the case of the Issuer, international air mail postage prepaid and addressed to its
principal office specified in the first paragraph of this instrument to the attention of
its secretary, or at any other address previously furnished in writing to the Trustee by
the Issuer and, in the case of the Guarantor, international air mail postage prepaid and
addressed to its principal office specified in the first paragraph of this instrument to
the attention of its secretary, or at any other address previously furnished in writing to
the Trustee by the Guarantor.

     SECTION 1.6. Notice to Holders; Waiver.

(a) Notices to Holders will be deemed to be validly given if mailed to them at their
respective addresses as recorded in the Register and will be deemed to have been validly
given on the seventh day after the date of such mailing.

(b) 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.

(c) 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.

(d) 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

13

 

after the event,
and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall
be filed with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

     SECTION 1.7. Language of Notices, Etc. Any request, demand, authorization, direction, notice,
consent or waiver required or permitted under this Indenture shall be in the English language,
except that any published notice may be in an official language of the country of publication.

     SECTION 1.8. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or
conflicts with a provision of the Trust Indenture Act that is required under such Act to be a part
of and govern this Indenture, the provision of the Trust Indenture Act shall control. If any
provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that may
be so modified or excluded, the provision of the Trust Indenture Act shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be.

     SECTION 1.9. 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 1.10. Successors and Assigns. All covenants and agreements in this Indenture by the
Issuer or the Guarantor shall bind their respective successors and assigns, whether so expressed or
not.

     SECTION 1.11. Separability Clause. In case any provision in this Indenture or in the
Securities or the Guarantees shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

     SECTION 1.12. Benefits of Indenture. Nothing in this Indenture, the Securities or the
Guarantees, express or implied, shall give to any Person, other than the parties hereto and their
successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim
under this Indenture.

     SECTION 1.13. Governing Law. Pursuant to Section 5-1401 of the General Obligations Law of the
State of New York, this Indenture, the Securities and the Guarantees shall be governed by, and
construed in accordance with, the laws of the State of New York.

     SECTION 1.14. Saturdays, Sundays and Legal Holidays. Except as otherwise provided pursuant to
Section 2.1, in any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of any Security which
specifically states that such

14

 

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 or Redemption Date, or at the Stated Maturity.

     SECTION 1.15. Submission to Jurisdiction; Appointment of Agent for Service.

(a) The Issuer and the Guarantor irrevocably submit to the exclusive jurisdiction of any
federal or state court in the Borough of Manhattan, the City of New York, and any appellate
court from any such court thereof, with respect to any legal suit, action or proceeding
based on or arising under the Securities or this Indenture and agree that all claims in
respect of such suit or proceeding shall be determined in any such court. The Issuer and
the Guarantor irrevocably waive to the fullest extent permitted by law, any objection to
any such suit, including actions, suits or proceedings relating to the securities laws of
the United States of America or any state thereof, in such courts whether on the grounds of
venue,
residence or domicile or the defense of an inconvenient forum or objections to personal
jurisdiction with respect to the maintenance of such legal suit, action or proceeding. The
Issuer and the Guarantor agree that the final judgment in any such suit, action or
proceeding brought in such court shall be conclusive and binding upon the Issuer or the
Guarantor, as applicable, and may be enforced in any court in the jurisdiction of which the
Issuer or the Guarantor, as applicable, is subject by a suit upon such judgment. To the
extent permitted by law, the Issuer and the Guarantor hereby waive any objections to the
enforcement by any competent court in Spain of any judgment validly obtained in any such
court in New York on the basis of any such legal suit, action or proceeding.

(b) To the extent either the Issuer or the Guarantor has or hereafter may acquire any
immunity from jurisdiction of any court or from any legal process (whether through service
of notice, attachment prior to judgment, attachment in aid of execution or otherwise) with
respect to itself or its property, such party hereby irrevocably waives such immunity in
respect of its respective obligations under the Indenture and the Securities of each series
to the fullest extent permitted by law.

(c) By the execution and delivery of this Indenture, each of the Issuer and the Guarantor
hereby appoints CT Corporation System as its agent upon which process may be served in any
legal action or proceeding which may be instituted in any federal or state court in the
Borough of Manhattan, the City of New York arising out of or relating to the Securities,
the Guarantees or this Indenture, but for that purpose only. Service of process upon such
agent at the office of CT Corporation System at 111 Eighth Avenue #13, New York, New York
10011, and written notice of said service to the Issuer or the Guarantor by the Person
servicing the same addressed as provided by Section 1.5, shall be deemed in every respect
effective service of process upon the Issuer or the Guarantor, respectively,

15

 

in any such
legal action or proceeding. Such appointment shall be irrevocable so long as the Holders
of Securities shall have any rights pursuant to the terms thereof or of this Indenture
until the appointment of a successor by the Issuer or the Guarantor with the consent of the
Trustee and such successor’s acceptance of such appointment. Each of the Issuer and the
Guarantor further agrees to take any and all action, including the execution and filing of
any and all such documents and instruments, as may be necessary to continue such
designation and appointment of such agent or successor.

     SECTION 1.16. Waiver of Jury Trial. EACH OF THE ISSUER, THE GUARANTOR AND THE TRUSTEE HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SECURITIES, ANY
GUARANTEE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 1.17. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

ARTICLE 2

The Securities

     SECTION 2.1. Forms of Security Certificates; Amount Unlimited; Status of the Securities;
Issuable in Series; Denominations.

(a) Security Certificates representing the Securities of each series shall be substantially
in the form set forth in Exhibit A or in such other form as shall be established by or
pursuant to a Board Resolution of the Issuer or in one or more supplemental indentures
hereto, in each case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by applicable law or 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 applicable law or the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be determined
by the officers executing such Security Certificates, as evidenced by their execution
thereof. If the form of Security Certificates representing the Securities of any series is
established by action taken pursuant to a Board Resolution of the Issuer, a copy of an
appropriate record of such action shall be certified by any Director (Administrador
Solidario) of the Issuer delivered to the Trustee at or prior to the delivery of the
Authentication Order contemplated by Section 2.3.

(b) The aggregate principal amount of Securities represented by Security Certificates which
may be authenticated and delivered under this Indenture is unlimited subject to appropriate
authorization of any issuance of Securities pursuant to one or more Board Resolutions.

16

 

(c) The Securities of a series will constitute direct, unconditional, unsubordinated and
unsecured obligations of the Issuer and will rank pari passu without any preference among
themselves and (subject to any applicable statutory exceptions) the payment obligations of
the Issuer under the Securities of such series will rank at least pari passu with all other
unsecured and unsubordinated indebtedness, present and future, of the Issuer, except as the
obligations of the Issuer may be limited by Spanish bankruptcy, insolvency, reorganization
or other laws relating to or affecting the enforcement of creditors’ rights generally in
the Kingdom of Spain.

(d) The Securities may be issued in one or more series. There shall be established in or
pursuant to a Board Resolution of the Issuer or pursuant to other appropriate corporate
authorization, and, subject to Section 2.3, 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:

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

(ii) 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
2.4, 2.5, 2.7, 9.6 or 11.7 and except for any Securities which, pursuant to Section
2.3, are deemed never to have been authenticated and delivered hereunder);

(iii) any stock exchange on which the Securities of the series will be listed;

(iv) 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;

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

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

17

 

(vii) the place or places where, subject to the provisions of Section 10.2, the
principal of, and any premium and interest on, Securities of the series shall be
payable, Security Certificates representing the Securities of the series may be
surrendered for exchange or conversion of the Securities represented thereby and
notices and demands to or upon the Issuer or the Guarantor in respect of the
Securities of the series and this Indenture may be served;

(viii) other than with respect to any redemption of Securities of such series
pursuant to Section 11.8, the period or periods within which, the price or prices
at which and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Issuer or the Guarantor
(including the period following the date
referred to in Section 11.8) and, if other than by a Board Resolution, the manner
in which any election by the Issuer or the Guarantor to redeem the Securities shall
be evidenced;

(ix) other than with respect to any redemption of Securities pursuant to Section
11.8, the obligation, if any, of the Issuer to redeem or purchase any Securities of
the series pursuant to any sinking fund or analogous provisions or at the option of
a Holder thereof and the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

(x) the denominations in which any Securities of the series shall be issuable;

(xi) the currency, currencies, composite currency, composite currencies or currency
units in which payment of the principal of, and any premium and interest on, any
Securities of the series shall be payable if other than the currency of the United
States of America and the manner of determining the equivalent thereof in the
currency of the United States of America for purposes of the definition of
“Outstanding” in Section 1.1;

(xii) 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, the manner in which
such amounts shall be determined;

(xiii) if the principal of, or any premium or interest on, any Securities of the
series is to be payable, at the election of the Issuer, the Guarantor or a Holder
thereof, in one or more currencies, currency units, composite currency or composite
currency units other than that or those in which the Securities of such series are
stated to be payable, the currency, currencies or currency units in which the
principal of, and any premium and interest

18

 

on, Securities of such series as to
which such election is made shall be payable, and the periods within which and the
terms and conditions upon which such election is to be made and the amount so
payable (or the manner in which such amount shall be determined);

(xiv) if other than the principal amount thereof, the portion of the principal
amount of Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 5.2;

(xv) whether Section 4.3 and Section 10.8 will be applicable to the Securities of
the series;

(xvi) whether Additional Amounts will not be payable by the Issuer or the Guarantor
in respect of the Securities of such series;

(xvii) if the principal amount payable at the Stated Maturity of any Securities of
the series is not determinable upon original issuance thereof, the amount which
shall be deemed to be the principal amount of such Securities for any other purpose
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 (or, in any such case, the manner in which such
principal amount shall be determined);

(xviii) if applicable, that any Securities of the series shall be represented by
one or more Global Certificates and, in such case, the respective Depositaries for
such Global Certificates, the form of any legend or legends which shall be borne by
any such Global Certificate in addition to or in lieu of that set forth in Section
2.5(l) and, if different from those set forth in Section 2.5(b), any circumstances
in which Securities issued upon any exchange may be registered in the name or names
of Persons other than the Depositary for such Global Certificate or a nominee
thereof;

(xix) 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 5.2;

(xx) any addition to or change in the covenants set forth in Article 10 which
applies to Securities of the series; and

(xxi) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 9.1(e)).

(e) All Securities of any one series shall be substantially identical except as otherwise
expressly provided herein, and except as may otherwise be provided in

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or pursuant to the
Board Resolution for such series of Securities and (subject to Section 2.3) set forth, or
determined in the manner provided, in the applicable Officer’s Certificate or in any
applicable indenture supplemental hereto.

(f) Unless otherwise provided pursuant to Section 2.1 for a series of Securities, the Issuer may from
time to time, without the consent of the Holders of Securities of such series, create and issue
further securities having the same terms and conditions as the previously issued Securities of such
series in all respects (or in all respects except for the issue date, the first payment of interest
thereon and/or issue price), so that such further issue shall be consolidated and form a single
series with the outstanding Securities of such series; provided, however, that, for U.S. federal
income tax purposes, any such further issuance will only be made if either such additional
securities are issued with no more than de minimis original issue discount or such further issuance
is a “qualified reopening” as such term is defined under Treasury Regulation Section 1.1275-2(k)(3)
promulgated under the Code.

(g) If any of the terms of the Securities of a series or the Guarantees in respect thereof
are established by action taken pursuant to a Board Resolution of the
Issuer or the Guarantor, a copy of an appropriate record of such action shall be certified
by any director, the secretary or any person appointed by a Director (Administrador
Solidario) of the Issuer or the Board of Directors of the Guarantor, as the case may be,
each delivered to the Trustee at or prior to the delivery of the Officer’s Certificate
setting forth the terms of the series or the guarantees thereof.

     SECTION 2.2. Form of Trustee’s Certificate of Authentication. The Trustee’s certificates of
authentication shall be substantially in the following form:

Certificate of Authentication

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

     Dated:

	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.,

as Trustee	 	 
	 
	 	 	 	 
	 

	 	manually	 	 
	 
	 	By: 	 	 
	 

	 	 

                     Authorized Officer
	 	 

     SECTION 2.3. Execution, Authentication, Delivery and Dating.

(a) Security Certificates representing the Securities of each series shall be executed
manually or by facsimile, imprint or other reproduction on behalf of the Issuer by an
authorized representative of the Issuer who shall be a Director (Administrador Solidario)
of the Issuer and shall have endorsed thereon a Guarantee by the Guarantor. Each Guarantee
shall be executed on behalf of the Guarantor by an authorized representative of the
Guarantor. The signature of any such authorized representative of the Guarantor may be
manual or facsimile.

(b) Security Certificates or Guarantees bearing the manual or facsimile signatures of
individuals who were at the time the authorized representatives of

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the Issuer or the
Guarantor, as the case may be, shall bind the Issuer or the Guarantor, as the case may be,
notwithstanding that such individuals or any of them have ceased to hold such offices prior
to the authentication and delivery of such Security Certificates or Guarantees.

(c) At any time and from time to time after the execution and delivery of this Indenture,
the Issuer may deliver each Security Certificate representing the Securities of any series
executed by the Issuer and if applicable, having endorsed
thereon a Guarantee of the Guarantor to the Trustee for authentication, together with an
Order for the authentication and delivery of such Security Certificates (the
“Authentication Order”), and the Trustee in accordance with the Authentication Order shall
authenticate and deliver such Security Certificates having such Guarantees endorsed
thereon.

(d) If the forms or terms of the Securities of a series and the applicable Guarantee have
been established in or pursuant to one or more Board Resolutions as permitted by Article 3
and Section 2.1, in authenticating each Security Certificate representing the Securities of
such series, and accepting the additional responsibilities under this Indenture in relation
to the Securities of such series and the applicable Guarantee, the Trustee shall receive,
and (subject to Section 6.1) shall be fully protected in relying upon, an Opinion of
Counsel and Officer’s Certificate stating:

(i) that such forms or terms have been established in conformity with the
provisions of this Indenture; and

(ii) that such Securities and the applicable Guarantee, when each Security
Certificate representing such Securities is authenticated and delivered by the
Trustee and such Securities are issued by the Issuer and the Guarantee is executed
and delivered by the Guarantor in the manner and subject to any conditions
specified in such Opinion of Counsel, such Securities and the applicable Guarantee
will constitute valid and legally binding obligations of the Issuer or the
Guarantor, as applicable, enforceable in accordance with their terms, subject to
such exceptions as such counsel shall specify.

(e) The Trustee shall have the right to decline to authenticate and deliver any Security
Certificate under this Section 2.3 if the Trustee, being advised in writing by counsel,
determines that such action may not lawfully be taken or if the Trustee in good faith shall
determine that such action would expose the Trustee to personal liability based upon the
advice of counsel.

(f) The Trustee shall not be required to authenticate any Security Certificate if the issue
of the Securities represented by such Security Certificate pursuant to this Indenture will
affect the Trustee’s own rights, duties or immunities under such

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Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

(g) Notwithstanding
the provisions of Section 2.1 and of paragraph (f) above, 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 2.1
or the Opinion of Counsel and Officer’s Certificate required pursuant
to paragraph (d) above at or prior to the time of authentication of each Security
Certificate representing the Securities of such series so long as such Opinion of Counsel
and Officer’s Certificate (with appropriate modifications) are delivered at or prior to the
authentication of each applicable Security Certificate upon original issuance of the first
Security of such series to be issued and reasonably contemplate the subsequent issuance of
such Securities of such series.

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

(i) No Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on the Security Certificate representing
such Security a certificate of authentication substantially in the form provided in Section
2.2 executed by the Trustee by manual signature, and such certificate of authentication
upon any Security Certificate shall be conclusive evidence, and the only evidence, that
such Security Certificate has been duly authenticated and delivered hereunder.
Notwithstanding the foregoing, if any Security Certificate shall have been authenticated
and delivered hereunder but the Securities represented by such Security Certificate shall
have never been issued and sold by the Issuer, and the Issuer shall deliver such Security
Certificate to the Trustee for cancellation as provided in Section 2.10, for all purposes
of this Indenture such Security Certificate shall be deemed never to have been
authenticated and delivered hereunder and the Securities represented by such Security
Certificate shall never be entitled to the benefits of this Indenture.

(j) The delivery of any Security Certificate by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Guarantee endorsed thereon on
behalf of the Guarantor, if applicable.

     SECTION 2.4. Temporary Security Certificates.

(a) Pending the preparation of definitive Security Certificates representing the Securities
of any series, the Issuer may execute, and upon Order the Trustee shall authenticate and
deliver, temporary Security Certificates which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities and, if applicable, having endorsed thereon Guarantees
or the Guarantor substantially of the tenor of definitive Guarantees in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and other
variations

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as the officers executing such Securities may determine, as evidenced by their
execution of such Securities. The temporary Securities may be in global form.

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

     SECTION 2.5. Exchange and Transfer.

(a) Except as set forth below, Securities of any series represented by a Global Certificate
may be transferred, in whole and not in part, only: (i) by the Depositary to a nominee of
the Depositary, (ii) by a nominee of the Depositary to the Depositary or to another nominee
of the Depositary, or (iii) by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary.

(b) Beneficial interests in Securities represented by a Global Certificate will be
exchangeable for Certificated Securities of such series only if: (i) the Depositary
notifies the Issuer that it is unwilling or unable to continue to act as Depositary or that
it is no longer a clearing agency registered under the Exchange Act and, in either case, a
successor Depositary is not appointed by the Issuer within 120 days after the date of such
notice from the Depositary, (ii) the Issuer notifies the Trustee in writing that it has
reasonably elected to cause the issuance of Certificated Securities of such series or (iii)
there shall have occurred and be continuing an Event of Default with respect to the
Securities of such series and the Securities of such series will be accelerated in
accordance with their terms and the terms of the Indenture.

(c) Upon the occurrence of any of the events specified in (b)(i), (b)(ii) or (b)(iii)
above, Certificated Securities of such series shall be (i) delivered by the Trustee in
exchange for beneficial interest in Securities of such series represented

23

 

by Global
Certificates executed by the Issuer and, if applicable, endorsed by with a Guarantee by the
Guarantor endorsed on each applicable Definitive Certificate and (ii) registered in such names, and issued in such authorized denominations,
as shall be requested by or on behalf of the Depositary in accordance with its customary
procedures.

(d) In connection with all transfers and exchanges of beneficial interests in Securities of
any series represented by Global Certificates that are not subject to Section 2.5(h) below,
in addition to the requirements of any other applicable paragraphs of this Section 2.5, the
transferor of, or the Person exchanging, such beneficial interest must deliver to the
Registrar, the Trustee and the applicable Paying Agent either: (i) in cases of exchanges or
transfers of beneficial interests in Securities of any series represented by a Global
Certificate for beneficial interests in Securities of such series represented by any other
Global Certificate, (1) a written order from a Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to (x) credit or cause
to be credited a beneficial interest in Securities of such series represented by the Global
Certificate into which such beneficial interest is being exchanged or transferred, in an
amount equal to the beneficial interest to be transferred or exchanged and (y) debit or
cause to be debited, a beneficial interest in the Securities of such series represented by
the Global Certificate from which such beneficial interest is being exchanged or
transferred, in an amount equal to the beneficial interest being transferred; and (2)
instructions given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase and the Participant
account to be debited with such decrease, as applicable; or (ii) in cases of exchanges or
transfers of beneficial interests in Securities of a series represented by a Global
Certificate for Certificated Securities of such series, (1) a written order from a
Participant given to the Depositary in accordance with the Applicable Procedures directing
the Depositary to cause to be issued one or more Certificated Securities of such series in
an amount equal to the beneficial interest to be transferred or exchanged and (2)
instructions given by the Depositary to the Registrar containing information regarding the
Person in whose name such Certificated Security or Certificated Securities shall be
registered to effect the transfer or exchange referred to in (ii)(1) above.

(e) Upon satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Securities of a series represented by one or more Global Certificates
contained in this Indenture or under applicable laws, the Registrar shall register, if
applicable, the transfer or exchange, the Trustee shall cancel each applicable Certificated
Security of such series and adjust, or shall cause to be adjusted, the principal amount of
the Securities of such series represented by each relevant Global Certificate pursuant to
Section 2.5(n) hereof and the applicable Paying Agent shall cause each relevant Participant
account to be credited or debited, as the case may be, with the applicable amount.

24

 

(f) In connection with all transfers or exchanges of Certificated Securities of any series
for beneficial interests in Securities represented by a Global Certificate, in addition to
the requirements of any other applicable paragraphs of this Section 2.5, the transferor of,
or the Person exchanging Certificated Securities of such
series, must (i) deliver or present to the Registrar the Definitive Certificate
representing such Certificated Security for purposes of registration of exchange or
transfer and cancellation duly endorsed or accompanied by a written instruction of transfer
in a form satisfactory to the Registrar, and duly executed by the applicable Holder or by
his or her attorney, duly authorized in writing; and (ii) deliver to the Registrar, the
Trustee and the applicable Paying Agent (1) a request that such Certificated Securities be
exchanged for a beneficial interest in one or more Securities of such series represented by
a Global Certificate, and (2) information specifying the Participant account to be credited
with the amount equal to the principal amount of the Certificated Security surrendered for
cancellation and registration of transfer or exchange.

(g) Upon satisfaction of all of the requirements for transfer or exchange of Certificated
Securities of a series for beneficial interests in Securities of such series represented by
one or more Global Certificates contained in this Indenture or under applicable laws, the
Registrar shall register the exchange and transfer of the applicable Securities, the
Trustee shall cancel each applicable Certificated Security of such series and adjust, or
cause to be adjusted, the principal amount of Securities of such series represented by each
applicable Global Certificate and the applicable Paying Agent shall cause each applicable
Participant account to be credited with an amount equal to the principal amount of the
Certificated Security so exchanged or transferred.

(h) The transfer and exchange of beneficial interests in Securities a series represented by
a Global Certificate shall be effected through the Depositary, in accordance with the
provisions of this Indenture and the Applicable Procedures. Beneficial interests in any
Securities of a series represented by a Global Certificate may be transferred to Persons
who take delivery thereof in the form of a beneficial interest in Securities of such series
represented by a Global Certificate. No written orders or instructions shall be required
to be delivered to the Registrar to effect the transfers described in this Section 2.5(h).

(i) In limited circumstances specified in Section 2.5(b), any holder of a beneficial
interest in any Securities of a series represented by a Global Certificate may exchange
such beneficial interest for one or more Certificated Securities of such series or transfer
such beneficial interest to a Person who takes delivery thereof in the form of one or more
Certificated Securities of such series, if such exchange or transfer complies with the
provisions of Section 2.5(b).

(j) A Holder of a Certificated Security of a series may exchange such Certificated Security
for a beneficial interest in any Securities of such series represented by a Global
Certificate or transfer such Certificated Security to a

25

 

Person who takes delivery thereof
in the form of a beneficial interest in any Securities of such series represented by a
Global Certificate at any time if such
exchange or transfer complies with the provisions of Section 2.5(f). If any such exchange
or transfer from a Certificated Security of a series to a beneficial interest in any
Securities of such series represented by a Global Certificate is effected at a time when
the applicable Global Certificate has not yet been executed, authenticated and delivered,
the Issuer shall execute, if applicable, the Guarantor shall endorse a Guarantee on, and,
upon receipt of an Authentication Order in accordance with Section 2.2 hereof, the Trustee
shall authenticate and deliver one or more Global Certificates representing Securities of
the applicable Series in an aggregate principal amount equal to the principal amount of
Certificated Securities of such series so exchanged or transferred.

(k) Upon request by a Holder of any Certificated Securities of a series and such Holder’s
compliance with the provisions of this Section 2.5(k), the Registrar shall register the
transfer or exchange of such Certificated Securities for other Certificated Securities of
such series. Prior to such registration of transfer or exchange, the requesting Holder
shall present or surrender to the Registrar the applicable Certificated Securities duly
endorsed or accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by his or her attorney, duly authorized in
writing.

(l) Unless otherwise specified pursuant to Section 2.1, each Global Certificate
representing Securities of a series shall bear a legend in substantially the following
form:

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR DEFINITIVE
CERTIFICATES, THIS GLOBAL CERTIFICATE MAY BE TRANSFERRED, IN WHOLE AND NOT
IN PART, ONLY: (I) BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, (II)
BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR TO ANOTHER NOMINEE OF
THE DEPOSITARY, OR (III) BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY, AND
TRANSFERS OF THE SECURITIES REPRESENTED BY THIS GLOBAL CERTIFICATE AND ANY
BENEFICIAL INTERESTS IN ANY SECURITIES REPRESENTED BY THIS GLOBAL
CERTIFICATE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO BELOW.

(m) Unless otherwise specified pursuant to Section 2.1, each Global Certificate
representing Securities of a series deposited with DTC will bear a legend in substantially
the following form:

26

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

(n) At such time as all beneficial interests in the Securities of a series represented by a
Global Certificate have been exchanged for Certificated Securities of such series or the
Securities of a series represented by a particular Global Certificate have been redeemed,
repurchased or cancelled, in whole and not in part, each such Global Certificate
representing Securities of such series shall be returned to or retained and cancelled by
the Trustee in accordance with Section 2.10 hereof. At any time prior to the cancellation
referred to above, if any beneficial interest in Securities of a series represented by a
Global Certificate is exchanged for or transferred to a Person who shall take delivery
thereof in the form of a beneficial interest in another Security of such series represented
by a Global Certificate or for Certificated Securities of such series, the principal amount
of Securities of such series represented by such Security represented by a Global
Certificate from which such beneficial interest is being transferred shall be reduced
accordingly and an endorsement shall be made on such Global Certificate by the Trustee or
by the Depositary at the direction of the Trustee to reflect such reduction; and if the
beneficial interest is being exchanged for or transferred to a Person who shall take
delivery thereof in the form of a beneficial interest in a Security of such series
represented by another Global Certificate, the principal amount of Securities of such
series represented by such other Global Certificate shall be increased accordingly and an
endorsement shall be made on such Global Certificate by the Trustee or by the Depositary at
the direction of the Trustee to reflect such increase. At any time prior to the
cancellation referred to above, if any Certificated Security of a series is exchanged for
or transferred to a Person who shall take delivery thereof in the form of a beneficial
interest in Securities of such series represented by a Global Certificate, the principal
amount of Securities of such series represented by such Global Certificate shall be
increased accordingly and an endorsement shall be made on such Global Certificate by the
Trustee or by the Depositary at the direction of the Trustee to reflect such increase.

27

 

     SECTION 2.6. Registration, Registration of Transfer and Exchange.

(a) With respect to each series of Securities, the Issuer shall cause to be kept at the
Corporate Trust Office of the Trustee a register (a “Register”) in which, subject to such
reasonable regulations as it may prescribe, the Issuer shall provide for the registration
of Securities of such series and of transfers of Securities of such series. The Trustee is
hereby appointed “Registrar” for the purpose of registering Securities of each series and
transfers of Securities of each series as herein provided.

(b) To permit registrations of transfers and exchanges of Securities of each series, the
Issuer shall execute, if applicable, the Guarantor shall endorse a Guarantee on and the
Trustee shall authenticate and deliver Security Certificates representing Securities of
such series upon the Issuer’s Order or at the Registrar’s request.

(c) No service charge shall be made to a holder of a beneficial interest in Securities of
any series represented by a Global Certificate or to a Holder of Certificated Securities of
any series for any registration of transfer or exchange, but the Issuer or the Trustee may
require payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchange or transfer pursuant to Sections 2.4, 9.4 and
11.7).

(d) The Registrar shall not be required to register the transfer of or exchange any
Security selected for redemption in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

(e) Securities represented by any Security Certificate executed, authenticated and
delivered upon any registration of transfer or exchange of any Securities shall be valid
and legally binding obligations of the Issuer, evidencing the same debt, and entitled to
the same benefits under this Indenture as the other Securities duly issued hereunder.

(f) All certifications, certificates and Opinions of Counsel required to be submitted to
the Registrar pursuant to Section 2.5 to effect a registration of transfer or exchange may
be submitted by facsimile with the original to follow by first class mail.

(g) The Issuer shall not be required (i) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days
before the day of the mailing of a notice of redemption of Securities of that series
selected for redemption under Section 11.3 and ending at the close of business on the day
of such mailing or (ii) to register the transfer of or
exchange any Security so selected for redemption, in whole or in part, except the
unredeemed portion of any Security being redeemed in part.

28

 

     SECTION 2.7. Mutilated, Destroyed, Lost and Stolen Security Certificates.

(a) If any mutilated Security Certificate is surrendered to the Trustee, the Issuer shall
execute and the Trustee shall authenticate and deliver in exchange therefor a new Security
Certificate representing Securities of the same series and of like tenor and principal
amount having endorsed thereon a Guarantee and bearing a number not contemporaneously
outstanding.

(b) If there shall be delivered to the Issuer, the Guarantor and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security Certificate 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 Issuer, the
Guarantor or the Trustee that Securities of such series represented by such Security
Certificate have been acquired by a protected purchaser, the Issuer shall execute, if
applicable, the Guarantor shall endorse a Guarantee on and the Trustee shall authenticate
and deliver, in lieu of any such destroyed, lost or stolen Security Certificate, a new
Security Certificate representing Securities of the same series and of like tenor and
principal amount bearing a number not contemporaneously outstanding.

(c) In case any such Securities of a series represented by a mutilated, destroyed, lost or
stolen Security Certificate have become or are about to become due and payable, the Issuer
in its discretion may, instead of issuing a new Security Certificate, pay such Securities.

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

(e) Every new Security Certificate representing Securities of any series issued pursuant to
this Section in lieu of any destroyed, lost or stolen Security Certificate representing
Securities shall constitute an original additional contractual obligation of the Issuer and
the Guarantor, whether or not the destroyed, lost or stolen Security Certificate
representing Securities 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.

(f) 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 Security Certificates.

29

 

     SECTION 2.8. Payment of Interest: Interest Rights Preserved.

(a) Under current Spanish law and regulations, the Issuer and the Guarantor (and any Paying
Agent acting on their behalf) are required to provide certain information relating to
Beneficial Owners to the Spanish tax authorities. The Issuer and the Guarantor, and any
Paying Agent, as the case may be, will withhold Spanish withholding tax from any interest
payment or premium , if any, paid in respect of any principal amount of the Securities as
to which the required Beneficial Owner information has not been provided.

(b) Procedures for the collection of Beneficial Owner information (if any such procedures
are required pursuant to Spanish law and regulations) will be defined in a Tax
Certification Agency Agreement, which shall be delivered to the Trustee, any Paying Agent
and any Depositary for the Securities upon the delivery of such Securities. Such Tax
Certification Agency Agreement may be amended at any time pursuant to its terms.

(c) Except as otherwise provided or as contemplated by (a) and (b) of this Section, and by
Section 2.1, with respect to any series of Securities, interest or premium , if any, on any
Security which is payable, and is punctually paid or duly provided for, on any Interest
Payment Date (or any Redemption 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 and, in the case of premium , if any, the date on
which such premium may become payable.

(d) Any interest on any Security of any series which is payable other than at Maturity, 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 applicable Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Issuer, at its election in each case in conformance with the
requirements of current Spanish law and regulations, as provided in paragraph (i) or (ii)
below:

(i) The Issuer 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 Issuer 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 Issuer 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 on or 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

30

 

such
Defaulted Interest as in this Subsection 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 Issuer of such Special
Record Date and, in the name and at the expense of the Issuer, 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 the Issuer in the
manner set forth in Section 1.6, 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 Subsection
(ii).

(ii) The Issuer 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 Issuer to the
Trustee of the proposed payment pursuant to this Subsection, such manner of payment
shall be deemed practicable by the Trustee.

(e) Subject to the foregoing provisions of this Section and Section 2.5, each Security of
any series delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Security.

     SECTION 2.9. Persons Deemed Owners. Prior to due presentment of a Security Certificate for
registration of transfer of a Security represented thereby, the Issuer, the Guarantor, the Trustee
and any agent of the Issuer, the Guarantor 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 2.8) any interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither the Issuer, the
Guarantor, the Trustee nor any agent of the Issuer, the Guarantor or the Trustee shall be affected
by notice to the contrary.

     SECTION 2.10. Cancellation. All Security Certificates surrendered for payment, redemption,
registration of transfer of any Securities represented thereby or exchange or for credit against
any sinking fund payment shall, if the applicable Security Certificate is surrendered to any Person
other than the Trustee, be delivered to the Trustee and the Securities represented thereby shall be
promptly cancelled by it. The Issuer or the

31

 

Guarantor may at any time deliver to the Trustee one
or more Security Certificates previously authenticated and delivered hereunder for cancellation of
any Securities represented thereby which the Issuer or the Guarantor may have acquired in any
manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) one or more Security Certificates previously authenticated and delivered hereunder for
cancellation of any Securities represented thereby which the Issuer has not issued and sold, and
all Securities represented by any Security Certificate so delivered shall be promptly cancelled by
the Trustee. No Security Certificate shall be authenticated in lieu of or in exchange for any
Security Certificate representing Securities cancelled as provided in this Section, except as
expressly permitted by this Indenture. All Security Certificates representing cancelled Securities
held by the Trustee shall be disposed of in its customary manner or shall otherwise be returned to
the Issuer if directed by an Order.

     SECTION 2.11. Purchase of Securities. The Issuer, the Guarantor or any of the Guarantor’s
other Subsidiaries may at any time purchase Securities of any series in the open market or
otherwise at any price. If purchases are made by tender, tenders must be available to all Holders
of Securities of the applicable series alike.

     SECTION 2.12. CUSIP and ISIN Numbers. The Issuer in issuing the Securities may use “CUSIP”
and “ISIN” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” and “ISIN”
numbers in notices, including notices of redemption as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness of such numbers either
as printed on the Security Certificates representing the Securities of the applicable series or as
contained in any notice and that reliance may be placed only on the other identification numbers
printed on the Security Certificates representing the Securities of the applicable series, and any
such redemption shall not be affected by any defect in or omission of such numbers. The Issuer
shall promptly notify the Trustee in writing of any change in the “CUSIP” and “ISIN” numbers.

ARTICLE 3

The Guarantees

     SECTION 3.1. The Guarantees.

(a) The Guarantor will unconditionally and irrevocably guarantee the due payment of all
sums expressed to be payable by the Issuer under the Securities of each series on an
unsubordinated and unconditional basis.

(b) A Guarantee to be endorsed on each Security Certificate representing the Securities of
a series shall be substantially in the form of Exhibit B hereto.

(c) Amounts to be paid by the Guarantor under the Guarantees shall be paid without
deduction or withholding for any present or future taxes or duties imposed by the Kingdom
of Spain or any political subdivision thereof, unless the withholding or deduction of such
taxes or duties is required by law or regulation

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or by the official interpretation thereof.
In that event, the Guarantor will pay such Additional Amounts as may be necessary in order
that each net payment on the Securities of the applicable series after such deduction or
withholding will not be less than the amount provided for in the certificate representing
such Securities to be then due and payable, subject to the exceptions described under
Section 10.4.

(d) The obligations of the Guarantor under a Guarantee are unaffected by any invalidity,
irregularity or unenforceability of the Securities of the applicable series or this
Indenture, any failure to enforce the provisions of such Securities or this Indenture, or
any waivers, modification or indulgence granted to the Issuer in respect thereof by the
Holders of such series of Securities or the Trustee, or any other circumstance which may
otherwise constitute a legal or equitable discharge of a surety or the Guarantor.

(e) The obligations of the Guarantor in respect of the Securities of a series will
constitute direct, unconditional, unsubordinated and unsecured obligations of the Guarantor
and will rank pari passu without any preference among such obligations of the Guarantor in
respect of the Securities of such series and at least pari passu with all other
unsubordinated and unsecured indebtedness and monetary obligations involving or otherwise
related to borrowed money of the Guarantor, present and future; provided that the
obligations of the Guarantor in respect of the Securities of each series will be
effectively subordinated to those obligations that are preferred under Law 22/2003 (Ley
Concursal) dated July 9, 2003 regulating insolvency proceedings in Spain.

ARTICLE 4 

Satisfaction and Discharge

     SECTION 4.1. Satisfaction and Discharge of Indenture.

(a) This Indenture shall upon Order of the Issuer cease to be of further effect (except as
to any surviving rights of registration of transfer or exchange of Securities herein
expressly provided for, and any right to receive Additional Amounts) with respect to a
series of Securities, and the Trustee, at the expense of the Issuer, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture with respect of such
series of Securities, when:

(i) either

(1) all Securities of such series theretofore authenticated and delivered
(other than (A) Securities represented by Security Certificates which have
been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 2.7, and (B) Securities for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Issuer or the Guarantor and thereafter repaid to the Issuer or the
Guarantor,

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as the case may be, or discharged from such trust, as provided
in Section 10.3) have been delivered to the Trustee for cancellation; or

(2) all such Securities of such series not theretofore delivered to the
Trustee for cancellation:

(A) have become due and payable; or

(B) will become due and payable at their Stated Maturity within
one year; or

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

and the Issuer or the Guarantor, in the case of clause (2) (A), (B) or (C)
above, has deposited or caused to be deposited with the Trustee as trust
funds in trust for this purpose money in an amount sufficient to pay and
discharge the entire indebtedness on such Securities of such series 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;

(ii) the Issuer or the Guarantor has paid or caused to be paid all other sums
payable hereunder by the Issuer; and

(iii) the Issuer 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 their satisfaction and discharge of this Indenture have been complied
with.

(b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of
the Issuer and the Guarantor to the Trustee under Section 6.7, the obligations of the
Issuer to any Authenticating Agent under Section 6.14 and, if
money shall have been deposited with the Trustee pursuant to Section 4.3 below or
Subsection (i)(B) above, the obligations of the Trustee under Section 4.2 and Section
10.3(e) shall survive such satisfaction and discharge.

     SECTION 4.2. Application of Trust Money. Subject to provisions of Section 10.3(e), all money
deposited with the Trustee pursuant to Section 4.1, Section 4.3 or Section 10.9 shall be held in
trust (without liability for interest or investment) and applied by it, in accordance with the
provisions of the applicable series of Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the

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Issuer or the Guarantor 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 or received by the Trustee.

     SECTION 4.3. Defeasance and Discharge of Securities of any Series. Except as otherwise
provided as contemplated by Section 2.1 with respect to a series of Securities, the Issuer and the
Guarantor shall be deemed to have paid and discharged the entire indebtedness on all the
Outstanding Securities of any series and the provisions of this Indenture as it relates to such
Outstanding Securities shall no longer be in effect (“Defeasance”), and the Trustee, at the expense
of the Issuer, shall, upon the Order of the Issuer or the Guarantor, execute proper instruments
acknowledging the same, when:

(a) the Issuer or the Guarantor has deposited or caused to be deposited with the Trustee
(or another trustee satisfying the requirements of Section 6.9), irrevocably (irrespective
of whether the conditions in paragraphs (b), (c), (d), (e), (f) and (g) below have been
satisfied, but subject to the provisions of Section 4.2 and Section 10.3(e)), as trust
funds in trust, specifically pledged as security for, and dedicated solely to, the benefit
of the Holders of the Securities of that series with reference to this Section 4.3, in the
case of a series of Securities denominated in United States dollars, United States money or
U.S. Government Obligations, and in the case of a series of Securities denominated in a
currency other than U.S. dollars, funds in such currency, in each case in an amount which,
through the payment of interest and principal in respect thereof in accordance with their
terms, in an amount which will provide not later than the opening of business on the due
date of any payment referred to in subparagraph (i), (ii) or (iii) of this paragraph (a),
in the case of a series of Securities denominated in United States dollars, United States
money or U.S. Government Obligations, and in the case of a series of Securities
demonstrated in a currency other than U.S. dollars, funds in such currency, in an amount
sufficient, in the opinion of an internationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay
and discharge (i) the principal of (and premium, if any), (ii) interest on and (iii)
Additional Amounts, if any, on such Outstanding Securities on the day on which such
payments are due and payable in accordance with the terms of this Indenture and of such
Securities; and

(b) no Event of Default with respect to the Securities of that series has occurred and is
continuing on the date of such deposit and no Event of Default under Section 5.1(e),
Section 5.1(f) or Section 5.1(h) is in occurrence and continues on a date which is six
months after the date of such deposit; and

(c) the Issuer or the Guarantor has delivered to the Trustee an Opinion of Counsel of
recognized standing with respect to U.S. federal income tax matters to the effect that
Holders of the Securities of that series will not recognize income, gain or loss for United
States federal income tax purposes as a result of such deposit, Defeasance and discharge
and will be subject to United States federal income tax on the same amount and in the same
manner and at the same times, as

35

 

would have been the case if such deposit, Defeasance and discharge had not occurred; and:

(d) such Defeasance shall not cause the Trustee to have a conflicting interest within the
meaning of the Trust Indenture Act (assuming all Securities of that series are in default
within the meaning of the Trust Indenture Act); and

(e) such Defeasance shall not result in the trust arising from such deposit constituting an
investment company within the meaning of the Investment Company Act; and

(f) if the Securities of that series are then listed on any securities exchange, the Issuer
or the Guarantor has delivered to the Trustee an Opinion of Counsel to the effect that such
deposit, Defeasance and discharge will not cause such Securities of that series to be
delisted from such exchange; and

(g) the Issuer or the Guarantor has delivered to the Trustee an Officer’s Certificate and
an Opinion of Counsel, each stating that all conditions precedent provided for relating to
the Defeasance and discharge of the entire indebtedness on all Outstanding Securities of
that series as contemplated by this Section have been complied with;

provided, however, that a Defeasance described in this Section 4.3 shall not impair or affect (1)
the rights of Holders of Securities of that series to receive, from the trust funds described in
paragraph (a) above, payment of the principal of (and premium, if any) and any installment of
principal of (and premium, if any), interest on or Additional Amounts, if any, on such Securities
on the Stated Maturity of such principal or installment of principal of (and premium, if any) or
interest, or any mandatory sinking fund payments or analogous payments applicable to the Securities
of that series on the day on which such payments are due and payable in accordance with the terms
of this Indenture and of such Securities, (2) the Issuer’s and the Guarantor’s obligations with
respect to such Securities and Guarantees, respectively, under Sections 2.4, 2,5, 2.6, 2.7, 10.2
and 10.3, (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (4)
the provisions of Section 4.2 and this Section 4.3.

ARTICLE 5

Remedies

     SECTION 5.1. Events of Default. “Event of Default”, wherever used herein with respect to
Securities of any series of the Issuer, means any one of the following events which occurs and is
continuing:

(a) the Issuer fails to pay, and the Guarantor fails to honor the Guarantee with respect to
payments of, principal of, interest due on or any Additional Amounts in respect of the
Securities of that series for a period of 21 days from the Stated Maturity of such
principal or interest payment;

36

 

(b) the Issuer fails to perform any other obligation arising from the Securities of that
series or the Guarantor fails to perform any other obligation arising under the Guarantee
of the Securities of such series and in each case, such failure continues for more than 60
days (90 days if the failure to perform relates to an obligation of the Issuer or the
Guarantor arising under Article 8 hereof) after there has been
given, by any Holder a
written notice to the Issuer specifying such failure and requiring it to be remedied, and
stating that such notice is a “Notice of Default” hereunder;

(c) the Issuer or the Guarantor fails (taking into account any applicable grace periods) to
fulfill any payment obligation in excess of  €100,000,000 or its equivalent in any other
currency under any Relevant Indebtedness or under any guarantees or suretyships provided
for under any Relevant Indebtedness of others, and this failure remains uncured for 30
days;

(d) the holders of any other Relevant Indebtedness of the Issuer or the Guarantor
accelerate any payment obligation in excess of  €100,000,000 or its equivalent in any other
currency as a result of the Issuer or the Guarantor entering into a transaction described
and in accordance with the conditions set forth under Article 8 hereof, which transaction
constitutes an event of default in respect of such other Relevant Indebtedness;

(e) the Issuer or the Guarantor announces its inability to meet its financial obligations;

(f) [a court commences insolvency proceedings (concurso) against the Issuer or the
Guarantor and any such proceeding is not discharged or dismissed within 60 days;]

(g) the Issuer or the Guarantor goes into liquidation unless it is done as a result of the
Issuer or the Guarantor entering into a transaction described and in accordance with the
conditions set forth under Article 8 hereof;

(h) [the Issuer or the Guarantor makes a filing seeking relief under any applicable
bankruptcy or insolvency (concurso) laws;] or

(i) the Guarantee ceases to be valid or legally binding for any reason.

SECTION 5.2. Acceleration of Maturity; Rescission and Annulment.

(a) If any Event of Default shall occur in relation to the Securities of a series (taking
into account any applicable grace period), the Trustee or the Holders of not less than
25% in principal amount of the Outstanding Securities of such series may, by written notice
to the Issuer, at the Corporate Trust Office (and to the Trustee if
given by the Holders), declare that the Securities of such series,
including principal, any premium

37

 

thereon and all interest then accrued and unpaid on the Securities of such series, as the
case may be, shall be immediately due and payable, whereupon the same shall, to the extent permitted by applicable law, become
immediately due and payable, at their principal amount together with all interest, if any,
accrued and unpaid thereon and premium, if any, payable in respect thereof without
presentment, demand, protest or other notice of any kind, all of which the Issuer or the
Guarantor, as the case may be, will expressly waive, unless, prior thereto, all Events of
Default in respect of such Securities of such series shall have been cured.

(b) Such declarations of acceleration may be rescinded and past defaults may be waived,
except defaults in payment of principal of, interest on or premium, if any, by Holders of a
majority of the outstanding principal amount on the Securities of such series pursuant to
the procedures and under the conditions described in Section 9.2 of this Indenture;
provided, however, that the amounts due to the Trustee under Section 6.7 hereof have been
paid.

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

(a) The Issuer covenants that if default is made in the payment of any principal of,
interest or Additional Amounts on, any Security of any series and such default continues
for a period of 21 days, the Issuer will upon demand of the Trustee, pay to it, for the
benefit of the Holders of the Securities of such series, the whole amount then due and
payable on all Securities of such series for principal and any premium and interest and, to
the extent that payment of such interest shall be legally enforceable, interest on any
overdue principal and premium and on any overdue interest, at the rate or rates prescribed
therefor in each Security Certificate representing the Securities of such series, and, in
addition thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents counsel, and all amounts due the Trustee under Section
6.7.

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

SECTION 5.4. Trustee May File Proof of Claim.

(a) In case of any judicial proceeding relative to the Issuer, the Guarantor or any other
obligor upon the Securities of a series or the property of the Issuer, the Guarantor or of
such other creditors, the Trustee shall be entitled and empowered, by intervention in such
proceeding or otherwise, to take any and all actions

38

 

authorized under the Trust Indenture Act in order to have claims of the Holders of
Securities of such series 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 of the Securities of such series 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 of Securities of such series, to pay to the
Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel and any other amounts due the Trustee under
Section 6.7.

     (b) No provision of this Indenture shall be deemed to authorize the Trustee to authorize,
consent to or accept or adopt on behalf of any Holder of the Securities of a series, any
plan of reorganization, arrangement, adjustment or composition affecting such Securities or
the rights of any Holder thereof or to authorize the Trustee to vote in respect of the
claim of any such Holder in any such proceeding; provided, however, that, to the extent
permitted under the applicable law, the Trustee may, on behalf of the such 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 5.5. 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 Security Certificates representing any of the
Securities of a series or the production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for
the ratable benefit of the Holders of Securities in respect of which such judgment has been
recovered.

     SECTION 5.6. 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 each Securities Certificate representing the applicable Securities and the
notation thereon of the payment if the Securities represented thereby are only partially paid and
upon surrender thereof if fully paid:

     First: To the payment of all amounts due the Trustee under Section 6.7;

     Second: To the payment of the amounts then due and unpaid for principal of, and any premium
and interest on, and any Additional Amount on the Securities in respect of which or for the benefit
of which such money has been collected, ratably, without

39

 

preference or priority of any kind, according to the amounts due and payable on such
Securities for principal and any premium, interest and Additional Amount, respectively (subject to
Section 2.8); and

     Third: To the payment of the balance, if any, to the Issuer.

     SECTION 5.7. 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, the
applicable Guarantee, the Securities of such series or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless:

(a) the Holder initiating the proceeding shall have given the Trustee written notice that
an Event of Default has occurred and remains uncured with respect to the Securities of such
series;

(b)
the Holders of not less than 25% in aggregate principal amount of the Outstanding Securities of such 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;

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

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

(e) 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 5.8. Unconditional Right of Holders to Receive Principal, Premium, Interest and
Additional Amounts. Notwithstanding any other provision in this Indenture, the Holder of any
Security of any series shall have the right, which is absolute and unconditional, to receive
payment of the principal of, any premium on interest on and any Additional Amounts on such Security on the respective
Stated Maturity or Maturities expressed in each Security Certificate representing such Securities
(or, in the case of redemption, on

40

 

the Redemption Date) and to institute suit for the enforcement of any such payment, and such
rights shall not be impaired without the consent of such Holder.

     SECTION 5.9. 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
Issuer, the Guarantor, 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 5.10. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Security Certificates in Section
2.7(f), no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of
Securities of any series is intended to be exclusive of any other right or remedy, and every right
and remedy shall, to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

     SECTION 5.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of Securities of any series 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 such Holders may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by such Holders, as the case may be.

     SECTION 5.12. 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

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

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

(c) the Trustee need not follow any such direction if doing so would in its reasonable
discretion either involve it in personal liability or be unduly prejudicial to Holders not
joining in such direction;

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provided, further, that the Trustee shall have no obligation to make any determination with respect
to any such conflict, personal liability or undue prejudice.

     SECTION 5.13. Waiver of Past Defaults.

(a) 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 of Securities of the Issuer
and its consequences, except a default:

(i) in the payment of the principal of, or any premium or interest on or Additional
Amounts on, any Security of such series; or

(ii) in respect of a covenant or provision hereof which under Article 9 cannot be
modified or amended without the consent of the Holder of each Outstanding Security
of such series affected;

provided, however, that all amounts due to the Trustee under Section 6.7 hereof have been
paid.

(b) 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 5.14. 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 reasonable costs (including legal fees and expenses) 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
Issuer or the Guarantor, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the
Outstanding Securities of any series of the Issuer, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of, or any premium or interest on, or Additional
Amounts on any Security of such series on or after the Stated Maturity or Maturities expressed in
the Security Certificate representing such Security (or, in the case of redemption, on or after the
Redemption Date).

     SECTION 5.15. Waiver of Stay or Extension Laws. Each of the Issuer and the Guarantor
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 each of

42

 

the Issuer and the Guarantor (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 6

The Trustee

     SECTION 6.1. Certain Duties and Responsibilities.

(a) Except during the continuance of an Event of Default:

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

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

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

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

(i) this paragraph (c) shall not be construed to limit the effect of paragraph (a)
of this Section;

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

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

(iv) 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 and 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.

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

     SECTION 6.2. 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 5.1(b) with respect to such Securities, no such
notice to such Holders shall be given until the applicable grace period has expired. For the
purpose of this Section, the term “Default” means, with respect to the Securities of any series,
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; provided, however, that except in the case of a default in
the payment of principal of, premium, if any, interest or Additional Amounts, if any on any
Security of such series, the Trustee shall be protected in withholding such notice if, and so long
as, a trust committee of Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders.

     SECTION 6.3. Certain Rights of Trustee.

     Subject to the provisions of Section 6.1:

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

44

 

(b) any request or direction of the Issuer or the Guarantor mentioned herein shall be
sufficiently evidenced by an Order and any resolution of the Board of Directors of the
Issuer or the Guarantor may be sufficiently evidenced by a Board Resolution;

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

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

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

(f) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Issuer or the Guarantor with reasonable
prior notice, personally or by agent or attorney at the reasonable expense of the Issuer or
the Guarantor and shall incur no liability of any kind by reason of such inquiry or
investigation, provided that the Trustee shall not be entitled to such information which
the Issuer or the Guarantor is prevented from disclosing as a matter of law or contract;

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

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

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(i) the Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the applicable series of
Securities and this Indenture; and

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

     SECTION 6.4. Not Responsible for Recitals or Issuance of Securities. The recitals contained
herein and in any Security Certificate, except the Trustee’s certificates of authentication, shall
be taken as the statements of the Issuer or the Guarantor, 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 of any
series. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Issuer of Securities of any series or the proceeds thereof.

     SECTION 6.5. May Hold Securities. The Trustee, any Authenticating Agent, any Paying Agent,
any Registrar or any other agent of the Issuer or the Guarantor, in its individual or any other
capacity, may become the owner or pledgee of Securities of any series and, subject to Sections 6.8
and 6.13, may otherwise deal with the Issuer and the Guarantor with the same rights it would have
if it were not Trustee, Authenticating Agent, Paying Agent, Registrar or such other agent.

     SECTION 6.6. 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 or investment of any money received by it hereunder except as otherwise
agreed with and for the exclusive benefit of the Issuer or the Guarantor, as the case may be.

     SECTION 6.7. Compensation and Reimbursement.

(a) Each of the Issuer and the Guarantor jointly and severally agrees:

(i) to pay to the Trustee from time to time such compensation as shall be agreed
upon in writing from time to time for all services rendered by it hereunder;

(ii) 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
reasonable compensation and the expenses and disbursements of its agents and
counsel), except to the extent that any such

46

 

expense, disbursement or advance shall have been caused by its negligence or
willful misconduct; and

(iii) to fully indemnify the Trustee and any predecessor Trustee and their agents
for, and to hold it harmless against, any and all loss, liability, damages, claims
or expense arising out of or in connection with the acceptance or administration of
the trust or trusts hereunder and the performance of its duties hereunder,
including the costs and expenses of defending itself against any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent that any such loss, liability or expense may be
attributable to its negligence or willful misconduct.

(b) The Trustee shall have a lien prior to the Holders of Securities of any series to
payment of amounts due it under this Section 6.7 from funds held by the Trustee hereunder.
“Trustee” for purposes hereof includes any predecessor Trustee, but the negligence or bad
faith of any Trustee shall not affect the rights of any other Trustee hereunder.

(c) When the Trustee incurs expenses or renders services in connection with an Event of
Default, the expenses (including the reasonable charges and expenses of its counsel) and
the compensation for the services are intended to constitute expenses of administration
under any applicable bankruptcy, insolvency or other similar law.

(d) The provisions of this Section shall survive the resignation or removal of the Trustee
or the termination of this Indenture.

     SECTION 6.8. 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. For this purpose the Trustee shall not be deemed to
have a conflicting interest by reason of being Trustee for the Securities of any series and Trustee
for the Securities of any other series.

     SECTION 6.9. Corporate Trustee Required; Eligibility. There shall at all times be a Trustee
hereunder with respect to the Securities of each series which 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 U.S.$50,000,000 and its Corporate Trust Office in the Borough of Manhattan, The City of New
York, New York. If such Person 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 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

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Section, it shall resign immediately in the manner and with the effect hereinafter specified
in this Article.

     SECTION 6.10. Resignation and Removal; Appointment of Successor.

(a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 6.11.

(b) The Trustee may resign at any time with respect to the Securities of one or more series
by giving written notice thereof to the Issuer. If the instrument of acceptance by a
successor Trustee required by Section 6.11 shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning Trustee may
petition at the reasonable expense of the Issuer or the Guarantor any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of
such series.

(c) The Trustee may be removed at any time with respect to the Securities of any series by
Act of the Holders of a majority in principal amount of the Outstanding Securities of such
series, delivered to the Trustee and to the Issuer and the Guarantor. If the instrument of
acceptance by a successor Trustee required by Section 6.11 shall not have been delivered to
the Trustee within 30 days after its removal, the removed Trustee may petition at the
reasonable expense of the Issuer or the Guarantor any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such series.

(d) If at any time:

(i) the Trustee shall fail to comply with Section 6.8 with respect to the
Securities of any series after written request therefor by the Issuer or the
Guarantor or by any Holder who has been a bona fide Holder of a Security of such
series for at least six months;

(ii) the Trustee shall cease to be eligible under Section 6.9 and shall fail to
resign after written request therefor by the Issuer or the Guarantor or by any
Holder of a Security of any series; or

(iii) the Trustee with respect to the Securities of any series shall become
incapable of acting or shall be adjudged 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, (1) the Issuer by a Board Resolution may remove the Trustee with
respect to the applicable or (if required) all, series of Securities, or (2) subject to
Section 5.14, any Holder who has been a bona fide Holder of the

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applicable series of Securities 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 and the appointment of a successor Trustee or Trustees with respect to such
series of Securities.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one
or more series, the Issuer, 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 shall comply with the applicable requirements of
Section 6.11. 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 the
applicable 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 Issuer and the
Guarantor 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 6.11, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Issuer. If no
successor Trustee with respect to the Securities of the applicable series shall have been
so appointed by the Issuer or the Holders of Securities of such series and accepted
appointment in the manner required by Section 6.11, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such series.

     (f) The Issuer shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of the applicable 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 1.6. Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address of its
Corporate Trust Office.

     SECTION 6.11. Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and
deliver to each of the Issuer, the Guarantor 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, upon the request of the Issuer, the Guarantor or the successor
Trustee, such retiring Trustee shall, upon payment of its charges upon the terms of this
Indenture, execute and deliver

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an instrument transferring to such successor Trustee all the rights, powers and trusts of
the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the
Securities of one or more (but not all) series of the Issuer, the Issuer, the Guarantor,
the retiring Trustee and each successor Trustee with respect to the Securities of one or
more series of the Issuer shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (i) 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, (ii) 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 (iii) 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 Issuer
and the Guarantor 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.

     (c) Upon request of any such successor Trustee, the Issuer and the Guarantor 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 paragraphs (a) and (b)
of this Section, as the case may be.

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

     SECTION 6.12. Merger, Conversion, Consolidation or Succession to Business. Any Person into
which the Trustee may be merged or converted or with which it may be

50

 

consolidated, or any Person resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any Person succeeding to all or substantially all the corporate
trust business of the Trustee, shall be the successor of the Trustee hereunder; provided such
Person 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
Security Certificate representing any Securities of a series 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 Security Certificate so
authenticated with the same effect as if such successor Trustee had itself authenticated such
Security Certificate.

     SECTION 6.13. Preferential Collection of Claims Against Issuer or Guarantor. If and when the
Trustee shall be or become a creditor of the Issuer or the Guarantor (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of Section 311 of the Trust Indenture
Act, but only to the extent therein specified, regarding the collection of claims against the
Issuer or the Guarantor (or any such other obligor). For purposes of Section 311(b)(4) and (6) of
the Trust Indenture Act:

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

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

SECTION 6.14. Appointment of Authenticating Agent.

(a) 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 each Security Certificate representing Securities of such series issued upon
original issue and upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 2.7, and each Securities represented by a Security Certificate so
authenticated shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if such Security Certificate was authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the authentication and
delivery of Security

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Certificates 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 Issuer
and shall at all times be a Person 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 Agents, having a combined capital and surplus of not
less than U.S.$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.

(b) Any Person into which an Authenticating Agent may be merged or converted or with which
it may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any Person succeeding
to 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.

(c) An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Issuer. 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 Issuer. 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 Issuer and shall give notice of such appointment in the
manner provided in Section 1.6 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.

(d) If an appointment with respect to one or more series of Securities is made pursuant to
this Section, each Security Certificate representing the Securities of each such series may
have endorsed thereon, in addition to the Trustee’s

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certificate of authentication, an alternative certificate of authentication in the
following form:

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	JPMorgan Chase Bank, N.A.,

As Trustee
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	manually 
By:
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	As Authenticating Agent
	 
	 	 	 	 	 	 	 	 
	
	Date: 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

     If all of the Securities of a series may not be originally issued at one time, and if the
Trustee does not have an office capable of authenticating each applicable Security Certificate upon
original issuance located in a Place of Payment where the Issuer wishes to have each Security
Certificate representing the Securities of such series authenticated upon original issuance, the
Trustee, if so requested by the Issuer in writing (which writing need not comply with Section 1.2
and need not be accompanied by an Opinion of Counsel), shall appoint in accordance with this
Section an Authenticating Agent having an office in a Place of Payment designated by such Issuer
with respect of such series of Securities. The Issuer agrees to pay each Authenticating Agent from
time to time reasonable compensation for its services and reimbursement for its reasonable expenses
relating thereto.

     SECTION 6.15. Trustee’s Application for Instructions from the Issuer. Any application by the
Trustee for written instructions from the Issuer or the Guarantor may, at the option of the
Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under this
Indenture and the date on and/or after which such action shall be taken or such omission shall be
effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee in
accordance with a proposal included in such application on or after the date specified in such
application (which date shall not be less than three Business Days after the date any officer of
the Issuer or the Guarantor actually receives such application, unless any such officer shall have
consented in writing to any earlier date) unless prior to taking any such action (or the effective
date in the case of an Omission), the Trustee shall have received written instructions in response
to such application specifying the action to be taken or omitted.

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     SECTION 6.16. Appointment of Co-Trustee.

(a) For the purpose of meeting any legal requirement of any jurisdiction in which the
Issuer may at the time be located in connection with the enforcement of any right or the
taking of any action on behalf of the Holders of any Securities of a series issued
hereunder, the Trustee shall have the power and may execute and
deliver all instruments necessary to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, hereunder in respect of such series
of Securities and to vest in such Person or Persons, in such capacity and for the benefit
of the Holders of Securities of such series, such title hereunder, or any part hereof, and
subject to the other provisions of this Section, such powers, duties, obligations, rights
and trusts as the Trustee may consider necessary or desirable. Each co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a successor trustee
under Section 6.9. The Trustee shall promptly notify the Holders of each applicable series
of Securities and the Issuer of the appointment of a co-trustee or separate trustee under
this Section.

(b) Every separate trustee and co-trustee shall, to the extent permitted by law, be
appointed and act subject to the following provisions and conditions:

(i) all rights, powers, duties and obligations conferred or imposed upon the
Trustee shall be conferred or imposed upon and exercised or performed by the
Trustee and such separate trustee or co-trustee jointly (it being understood that
such separate trustee or co-trustee is not authorized to act separately without the
Trustee joining in such act), except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed the Trustee
shall be incompetent or unqualified to perform such act or acts, in which event
such rights, powers, duties and obligations shall be exercised and performed singly
by such separate trustee or co-trustee, but solely at the direction of the Trustee;

(ii) no trustee hereunder shall be personally liable by reason of any act or
omission of any other trustee hereunder; and

(iii) the Trustee may at any time accept the resignation of or remove any separate
trustee or co-trustee.

(c) Any notice, request or other writing given to the Trustee shall be deemed to have been
given to each of the then separate trustees and co-trustees, as effectively as if given to
each of them. Every instrument appointing any separate trustee or co-trustee shall refer
to this Indenture and the conditions of this Article 6. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates
or property specified in its instrument of appointment, either jointly with the Trustee or
separately, as may be provided therein, subject to all the provisions of this Indenture,
specifically including every

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provision of this Indenture relating to the conduct of,
affecting the liability of, or affording protection or rights (including the rights to
compensation, reimbursement and indemnification hereunder) to, the Trustee. Every such
instrument shall be filed with the Trustee.

(d) Any separate trustee or co-trustee may at any time constitute the Trustee its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Indenture on its behalf and in its name for the
purpose of enforcing any rights or taking any other action on behalf of the Holders of any
series of Securities issued hereunder.

ARTICLE 7

Holders’ Lists and Reports by Trustee, Issuer and Guarantor

     SECTION 7.1. Issuer and Guarantor to Furnish Trustee Names and Addresses of Holders. Each of
the Issuer and the Guarantor will furnish or cause to be furnished to the Trustee:

(a) semi-annually,
not later than 15 days after each             and
in each year, a list, in such form as the Trustee may reasonably require,
containing all the information in the possession or control of the Issuer or the Guarantor,
or any of the Issuer’s Paying Agents other than the Trustee, as to the names and addresses
of the Holders of Securities of each series as of such            and            ; and

(b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Issuer or the Guarantor 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
Registrar for the Securities of such series.

     SECTION 7.2. Preservation of Information; Communications to Holders.

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

(b) The rights of the Holders of the Securities of such series to communicate with other
Holders of the Securities of such series with respect to their rights under this Indenture
or under the Securities of such series, and

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the corresponding rights and
privileges of the Trustee, shall be as provided by the Trust Indenture Act.

(c) Every Holder of Securities, by receiving and holding the same, agrees with the Issuer,
the Guarantor and the Trustee that none of the Issuer, the
Guarantor 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 7.3. Reports by Trustee.

(a) On or about each      , beginning      , the Trustee
shall transmit to Holders such reports, if any, dated as of the preceding
        , concerning the Trustee and its actions under this Indenture as may be required
pursuant to Section 313(a) of the Trust Indenture Act in the manner provided pursuant to
Section 313(c) thereof. The Trustee shall also transmit to Holders such reports, if any,
as may be required pursuant to Section 313(b) of the Trust Indenture Act at the times and
in the manner provided pursuant thereto and to Section 313(c) thereof.

(b) A copy of each such report shall, at the time of such transmission to Holders, be filed
by the Trustee with each stock exchange upon which any Securities are listed, with the
Commission and with the Issuer. The Issuer will notify the Trustee reasonably promptly
when the Securities of any series are listed on any stock exchange or delisted therefrom.

     SECTION 7.4. Reports by Issuer and Guarantor.

(a) Each of the Issuer and the Guarantor shall file with the Trustee and the Commission,
and transmit to Holders, such information, documents and other reports, including financial
information and statements and such summaries thereof, as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant to such Act; provided
that any such information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within
15 days after the same is so required to be filed with the Commission.

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

     SECTION 7.5. Calculation of Original Issue Discount. The Issuer shall file with the Trustee
promptly at the end of each calendar year (i) a written notice specifying

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the amount of original
issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of
the end of such year and (ii) such other specific information relating to such original issue
discount as may then be relevant under the Code and the Treasury regulations promulgated thereunder.

ARTICLE 8

Consolidation, Merger, Conveyance, Transfer or Lease; Assumption

     SECTION 8.1. Merger, Consolidation, Etc., Only on Certain Terms. Neither the Issuer nor the
Guarantor shall consolidate with or merge (which term shall include for the avoidance of doubt a
scheme of arrangement) into any other Person or convey, transfer or lease all or substantially all
of its assets to any Person, and neither the Issuer nor the Guarantor shall permit any Person to
consolidate with or merge into the Issuer or the Guarantor, convey, transfer or lease all or
substantially all of its assets to the Issuer or the Guarantor, unless:

(a) in the case the Issuer or the Guarantor shall consolidate with or merge into another
Person or convey, transfer or lease all or substantially all of its assets to any Person,
the Person formed by such consolidation or into which the Issuer or the Guarantor is merged
or the Person which acquires by conveyance or transfer, or which leases, all or
substantially all of the assets of the Issuer or the Guarantor shall be a corporation,
partnership or trust, shall be organized and validly existing, under the laws of the
Kingdom of Spain or a member of the European Union or an Organization for Economic
Cooperation and Development (“OECD”) country and shall expressly assume, by a supplemental
indenture that complies with the Trust Indenture Act executed and delivered to the Trustee
in form and substance reasonably satisfactory to the Trustee, the due and punctual payment
of the principal of and any premium and interest (including all Additional Amounts and any
additional sums payable pursuant to (b) below) (i) in the case of the Issuer, on all the
Securities of each series and (ii) in the case of the Guarantor, under the Guarantees, and
the performance or observance of every covenant of this Indenture relating thereto on the
part of the Issuer to be performed or observed and, in the case of the Guarantor, the due
and punctual payment of the principal of and any premium and interest (including all
Additional Amounts and any additional sums payable pursuant to paragraph (b) below) on all
the Securities of each series and the performance or observance of every covenant of this
Indenture and the Guarantees relating thereto on the part of the Guarantor to be performed
or observed;

(b) if the Person formed by such consolidation or into which the Issuer or the Guarantor is
merged or to whom the Issuer or the Guarantor has conveyed, transferred or leased its
properties or assets is a Person organized and validly existing under the laws of a
jurisdiction other than the Kingdom of Spain such Person agrees to indemnify the Holder of
each Security of each series against (i) any tax, assessment or governmental charge imposed
on any such Holder or

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required to be withheld or deducted from any payment to such Holder
as a consequence of such consolidation, merger, conveyance, transfer or lease; and (ii) any
costs or expenses of the act of such consolidation, merger, conveyance, transfer or lease;

(c) immediately prior to the consummation of such transaction, no Event of Default with
respect to a series of Securities shall have occurred;

(d) the consummation of such transaction must not cause an Event of Default under the
Securities of any series or the Guarantees which the Issuer or the Guarantor, as the case
may be, does not reasonably believe can be cured within 90 days from the date of such
transaction; and

(e) the Issuer or the Guarantor 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 indenture, complies with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

     SECTION 8.2. Successor Substituted. Upon any consolidation of the Issuer or the Guarantor
with, or merger of the Issuer or the Guarantor into, any other Person or any conveyance, transfer
or lease all or substantially all of the assets of the Issuer or the Guarantor in accordance with
Section 8.1, the successor Person formed by such consolidation or into which the Issuer or the
Guarantor is merged or to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Issuer or the Guarantor, as the
case may be, under this Indenture with the same effect as if such successor Person had been named
as the Issuer or the Guarantor herein, as the case may be, 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 of each series or Guarantees, as the case may be.

     SECTION 8.3. Assumption by Guarantor or Subsidiary of Issuer’s Obligations.

(a) The Guarantor or any Subsidiary of the Guarantor may assume the obligations of the
Issuer (or any Person which shall have previously assumed the obligations of the Issuer)
for the due and punctual payment of the principal of (and premium, if any), interest on and
any other payments with respect to the Securities of each series, and for the performance
of every covenant of this Indenture and the Securities of each series on the part of the
Issuer to be performed or observed, provided that;

(i) the Guarantor or such Subsidiary, as the case may be, shall expressly assume
such obligations by an indenture supplemental hereto, in form reasonably
satisfactory to the Trustee, executed and delivered to the Trustee and if such
Subsidiary assumes such obligations, the Guarantor

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shall, by such supplemental
indenture, confirm that each of its Guarantees shall apply to such Subsidiary’s
obligations under the applicable series of Securities and this Indenture, as
modified by such supplemental indenture;

(ii) the Guarantor or such Subsidiary, as the case may be, shall agree in such
supplemental indenture that the provisions in Section 10.4 shall apply mutatis
mutandis to any withholding or deduction for or on account of any present or future
taxes, assessments or governmental charges of whatever nature of any jurisdiction
in which the Guarantor or such Subsidiary (or any successor Person to the Guarantor
of such Subsidiary) is organized, or any political subdivision or taxing authority
thereof or therein;

(iii) immediately after giving effect to such transaction, no Event of Default with
respect to a series of Securities shall have occurred and be continuing; and

(iv) the Guarantor or such Subsidiary, as the case may be, shall have delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
such assumption and such supplemental indenture comply with this Article and that
all conditions precedent herein provided for relating to such transaction have been
complied with.

(b) Upon any such assumption, the Guarantor or such Subsidiary shall succeed to, and be
substituted for, and may exercise every right and power of, the Issuer under this Indenture
with the same effect as if the Guarantor or such Subsidiary had been named as an “Issuer”
herein, and the Person named as an “Issuer” in the first paragraph of this instrument or
any successor Person which shall theretofore have become such in the manner prescribed in
this Article shall be released from its liability as obligor upon the Securities of such
series.

ARTICLE 9

Supplemental Indentures

     SECTION 9.1. Supplemental Indentures Without Consent of Holders. Without the consent of the
Holders of a series of Securities, the Issuer, the Guarantor 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, to:

(a) secure the Securities of such series;

(b) evidence the succession of another person to the Issuer or the Guarantor and the
assumption by any such successor of the covenants and agreements of the Issuer or the
Guarantor herein and in the Securities of such series;

(c) evidence or provide for the acceptance of appointment hereunder by a successor trustee
with respect to the Securities of such series;

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(d) change the terms of the Securities of such series to correct a manifest error (for the
avoidance of doubt, no other modification may be made to the terms of the Securities of
such series);

(e) change this Indenture in any manner which shall not affect the terms of the Securities
of such series or the interests of the Holders of such series of Securities; or

(f) to establish the form or terms of Securities of any series as permitted by Section 2.1.

     SECTION 9.2. Supplemental Indentures with Consent of Holders.

(a) 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 Issuer, the Guarantor and the Trustee, the Issuer, when
authorized by a Board Resolution or other appropriate corporate authorization, the
Guarantor, when authorized by a Board Resolution or other appropriate corporate
authorization, and the Trustee may enter into one or more indentures supplemental hereto
for the purpose of adding provisions to, or changing in any manner or eliminating any of
the provisions of, this Indenture or waiving any past defaults with respect to the
Securities of such series or this Indenture, or modifying the rights of the Holders of such
series of Securities; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby:

(i) change the Stated Maturity of the principal or of any installment of the
principal of or interest, if any, on any Security of such series;

(ii) reduce the principal amount of any Security of such series;

(iii) reduce the rate or extend the time of payment of interest on any Security of
such series;

(iv) reduce the amount payable on redemption of any Security of such series;

(v) change the obligations of the Issuer or the Guarantor to pay Additional Amounts
on any Security of such series;

(vi) waive a default in the payment of principal of, or interest on, any Security
of such series;

(vii) change the currency in which the principal, premium, or interest on any
Security of such series is payable;

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(viii) impair the right of any holder to take legal action to enforce the payment
on the Securities of such series or the Guarantees relating to such series when
due; or

(ix) reduce the quorum requirements or the percentage of Securities of such series
the consent of whose Holders is required for modification of this Indenture.

(b) It shall not be necessary under this Section 9.2 for Holders to approve the particular
form of any proposed supplemental indenture.

(c) 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.

     SECTION 9.3. Execution of Supplemental Indentures.

(a) The Trustee shall execute any supplemental indenture authorized pursuant to this
Section 9.3; provided that the Trustee may, but shall not be obligated to, execute any
supplemental indenture which affects the Trustee’s own rights, duties or immunities under
this Indenture. The Trustee shall be entitled to receive, and shall be fully protected in
relying upon, an opinion of counsel stating that the execution of any supplemental
indenture authorized pursuant to this Section 9.3 is authorized or permitted by this
Indenture.

(b) Upon the execution of a supplemental indenture pursuant to this Section 9.3, this
Indenture shall be modified in accordance therewith, and such supplemental indenture shall
form a part of this Indenture for all purposes; and each holder of Securities of the series
so amended or supplemented theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

     SECTION 9.4. 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 of each applicable series represented by a Security Certificate theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby, except as otherwise
expressed therein.

     SECTION 9.5. Conformity with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act as in effect
at the time of the execution thereof.

     SECTION 9.6. Reference in Security Certificates to Supplemental Indentures. Each Security
Certificate representing the Securities of any series authenticated and

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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 Issuer and the Guarantor
shall so determine, one or more new Security Certificates representing Securities of any
series so modified as to conform, in the opinion of the Trustee and the Issuer and the Guarantor,
to any such supplemental indenture may be prepared and executed by the Issuer, the Guarantees of
the Guarantor may be endorsed thereon and each such Security Certificate may be authenticated and
delivered by the Trustee in exchange for each Security Certificate then representing the
Outstanding Securities of such series.

ARTICLE 10

Covenants

     SECTION 10.1. Payment of Principal, Premium, Interest and Additional Amounts. The Issuer
covenants and agrees for the benefit of each series of Securities that it will duly and punctually
pay the principal of, and any premium, interest and Additional Amounts on, the Securities of that
series in accordance with the terms of the Securities of that series and this Indenture.

     SECTION 10.2. Maintenance of Office or Agency.

(a) The Issuer or the Guarantor will maintain in each Place of Payment for any series of
Securities an office or agency where such Security Certificate representing the 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 Issuer in respect of the Securities of that series and this Indenture may be
served.

(b) Each of the Issuer and the Guarantor will give prompt written notice to the Trustee of
the location, and any change in the location, of any such office or agency. If at any time
the Issuer or the Guarantor 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 Issuer and the Guarantor hereby appoint the same as its agent to receive all such
presentations, surrenders, notices and demands.

(c) The Issuer 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 Issuer of its obligation
to maintain an office or agency in place of payment for Securities of any series for such
purposes. The Issuer 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 upon receiving notice of any such change.

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     SECTION 10.3. Money for Securities Payments to Be Held in Trust.

(a) If the Issuer or the Guarantor 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, in a jurisdiction other than the Kingdom of Spain, 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.

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

(c) The Issuer 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 (i) comply with the provisions of the Trust Indenture Act applicable to it as a
Paying Agent and (ii) during the continuance of any default by the Issuer (or any other
obligor upon the Securities of that series) in the making of any payment in respect of the
Securities of that series, and 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.

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

(e) Any money deposited, with the Trustee or any Paying Agent, or then held by the Issuer
or the Guarantor, 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 Issuer automatically,
or (if then held by the Issuer or the Guarantor) shall be discharged from such trust; and
the Holder of such Security shall thereafter, as an general creditor, look only to the
Issuer or the Guarantor for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Issuer or the
Guarantor as trustee

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thereof, shall thereupon cease. Unless otherwise provided by applicable law, the right to
receive payment of principal of any Security (whether at Maturity or otherwise) or interest
there will become void at the end of three years after the due date thereof.

     SECTION 10.4. Additional Amounts.

(a) All amounts payable (whether in respect of principal, redemption amount, interest or
otherwise) in respect of the Securities of a series and the related Guarantee by the Issuer
or the Guarantor will be made free and clear of and without withholding or deduction for or
on account of any present or future taxes, duties, assessments or governmental charges of
whatever nature imposed or levied by or on behalf of the Kingdom of Spain or any political
subdivision thereof or any authority or agency therein or thereof having power to tax,
unless the withholding or deduction of such taxes, duties, assessments or governmental
charges is required by law. In the event that such withholding or deduction is required by
law, unless otherwise specified in any Board Resolution or other appropriate corporate
authorization of the Issuer or the Guarantor establishing the terms of Securities of a
series or the Guarantees relating thereto in accordance with Section 2.1, the Issuer or the
Guarantor shall pay such Additional Amounts as will result in receipt by the Holders of
such series of Securities of such amounts as would have been received by them had no such
withholding or deduction been required; provided, however, that the Issuer and the
Guarantor will not be required to pay any Additional Amounts in respect of any Security of
a series:

(i) to a Holder of such Security who is liable for such taxes, duties, assessments
or governmental charges in respect of such Security by reason of it (or the
Beneficial Owner for whose benefit it holds such Security) having some connection
with the Kingdom of Spain other than the mere holding of such Security (or such
beneficial interest);

(ii) to a Holder of such Securities in respect of whom the Issuer or the Guarantor
does not receive such information (which may include a tax residence certificate)
concerning such Holder’s identity and tax residence (or the identity and tax
residence of the Beneficial Owner for whose benefit it holds such Security) as it
may require in order to comply with Law 13/1985 of May 25 (as amended by Law
19/2003 of July 4 and Law 23/2005 of November 18) and any implementing legislation
or regulation;

(iii) presented for payment (where presentation is required) more than 30 days
after the Relevant Date (as defined below), except to the extent that the relevant
Holder would have been entitled to such Additional Amounts on presenting the same
for payment on the expiry of such period of 30 days;

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(iv) where the withholding or deduction is imposed on a payment to or for the
benefit of an individual and is required to be made pursuant to European Council
Directive 2003/48/EC or any other Directive implementing the conclusions of the
ECOFIN Council meeting of November 26-27, 2000 or any law implementing or complying
with, or introduced in order to conform to, such Directives;

(v) presented for payment (where presentation is required) by or on behalf of a
Holder (or Beneficial Owner) who would have been able to avoid such withholding or
deduction by presenting the relevant Security to another paying agent in a Member
State of the European Union;

(vi) to or for the benefit of individuals resident for tax purposes in the Kingdom
of Spain or individuals or any other legal entities resident in, or obtaining
income through, a tax haven territory (as defined in Royal Decree 1080/1991 of
July 5); or

(vii) to or for the benefit of a Spanish-resident legal entity subject to Spanish
Corporate Income Tax if the Spanish tax authorities determine that the Securities
of such series do not comply with exemption requirements specified in the Reply to
a Consultation of the Directorate General for Taxation (Dirección General de
Tributos) dated July 27, 2004 or otherwise and require a withholding to be made;

provided further that Additional Amounts in respect of the Securities of a series will also
not be paid with respect to any payment to a Holder of any Securities of such series who is
a fiduciary, a partnership, a limited liability company or other than the sole Beneficial
Owner of that payment, to the extent that payment would be required by the laws of the
Kingdom of Spain (or any political subdivision thereof or any authority or agency therein
or thereof having power to tax) to be included in the income, for tax purposes, of a
beneficiary or settlor with respect to the fiduciary, a member of that partnership, an
interest holder in that limited liability company or a Beneficial Owner who would not have
been entitled to the Additional Amounts had it been the Holder.

     For the purposes of Section 10.4(a)(iii) above, the “Relevant Date” means, in respect of any
payment, the date on which such payment first becomes due and payable, but if the full amount of
the moneys payable has not been received by the Paying Agent on or prior to such due date, it means
the first date on which the full amount of such moneys having been so received and being available
for payment to Holders, notice to that effect shall have been duly given to the Holders in
accordance with this Indenture.

(b) The foregoing provisions shall apply mutatis mutandis to any withholding or deduction
for or on account of any present or future taxes, assessments or governmental charges of
whatever nature of any jurisdiction in which any successor Person to the Issuer or the
Guarantor, as the case may be, is organized,

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or any political subdivision or taxing authority thereof or therein, subject to exceptions
equivalent to those set forth in Section 10.4(a) above.

(c) Subject to the foregoing provisions, whenever in this Indenture there is mentioned, in
any context, the payment of the principal of or any premium or interest on, or in respect
of, any Security of any series or the net proceeds received on the sale or exchange of any
Security of any series, such mention shall be deemed to include mention of the payment of
Additional Amounts provided for in this Section to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to the
provisions of this Section and express mention of the payment of additional amounts (if
applicable) in any provisions hereof shall not be construed as excluding additional amounts
in those provisions hereof where such express mention is not made.

     SECTION 10.5. Statement by Officers as to Default.

(a) For so long as any Securities of any series are Outstanding, each of the Guarantor and
the Issuer will deliver to the Trustee, within 120 days after the end of each fiscal year
of the Guarantor ending after the date hereof, an Officer’s Certificate, stating whether or
not to the knowledge of the signer or signers thereof the Issuer or the Guarantor, as the
case may be, is in compliance with all conditions and covenants under this Indenture
(without regard to any period of grace or requirement of notice provided hereunder) and, if
the Issuer or the Guarantor shall not be in compliance specifying all instances of
noncompliance and the nature and status thereof of which they may have knowledge.

(b) Each of the Issuer and the Guarantor shall deliver to the Trustee, as soon as possible,
and in any event within ten days after the Issuer or the Guarantor becomes aware of the
occurrence of any Event of Default, an Officers’ Certificate setting forth the details of
such Event of Default or default and the action which the Issuer proposes to take with
respect thereto.

     SECTION 10.6. Existence. Subject to Article 8, the Issuer and the Guarantor each will do or
cause to be done all things necessary to preserve and keep in full force and effect its existence,
rights (charter and statutory) and franchises; provided, however, that neither the Issuer nor the
Guarantor shall be required to preserve any such right or franchise if its respective Board of
Directors shall determine that the preservation thereof is no longer desirable in the conduct of
the business of the Issuer or the Guarantor, as the case may be, and that the loss thereof is not
disadvantageous in any material respect to the Holders of any series of Securities.

     SECTION 10.7. Limitation on Liens. So long as any of the Securities of a series remains
Outstanding, neither the Issuer nor the Guarantor will create or will have outstanding any
Encumbrance upon the whole or any part of its present or future assets, in order to secure any
Relevant Indebtedness issued or guaranteed by the Issuer, the Guarantor or by any other Person
unless such Securities of a series are equally and

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ratably secured therewith, for as long as such Relevant Indebtedness shall be so secured;
provided, however, that the foregoing restriction shall not apply to any Encumbrance securing
Relevant Indebtedness issued or guaranteed by the Guarantor, the Issuer or any other Person if the
Relevant Indebtedness so secured (a) was originally offered, distributed or sold primarily to the
residents of the Kingdom of Spain; (b) by its terms matures within one year of its date of issue,
or (c) if such Encumbrance affects assets of an entity which, when such Encumbrance was created,
was unrelated to the Guarantor or the Issuer and which was subsequently acquired by the Guarantor
or the Issuer; and provided, further, that nothing in this Section shall limit the ability of the
Issuer or the Guarantor, as the case may be, to grant or permit to subsist Encumbrances over any or
all of their respective present or future assets to secure Relevant Indebtedness issued or
guaranteed by the Issuer, the Guarantor or any other Person, to the extent that the aggregate
principal amounts so secured do not exceed 5% of the Consolidated Net Tangible Assets of the
Guarantor, as reflected in the most recent balance sheet (prepared in accordance with such
accounting principles as are generally accepted in the Kingdom of Spain at the date of such
computation and as applied by the Guarantor) prior to the time such Relevant Indebtedness was
issued or guaranteed.

     SECTION 10.8. Covenant Defeasance of Securities of Any Series.

(a) Except as otherwise provided as contemplated by Section 2.1 with respect to any series
of Securities, the Issuer and the Guarantor may by Board Resolution elect to be released
from their respective obligations under any specified provisions of this Indenture
applicable to any series of Securities Outstanding, and the provisions so specified in such
Board Resolution, as they relate to Outstanding Securities of such series, shall no longer
be in effect (“Covenant Defeasance”), and the Trustee, at the expense of the Issuer, shall,
upon the Order of the Issuer or the Guarantor, execute proper instruments acknowledging the
same, when:

(i) the Issuer or the Guarantor has deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 6.9),
irrevocably (irrespective of whether the conditions in subparagraphs (ii), (iii),
(iv), (v), (vi), (vii) and (viii) below have been satisfied, but subject to the
provisions of Section 4.2 and Section 10.3(e)), as trust funds in trust,
specifically pledged as security for, and dedicated solely to, the benefit of the
Holders of the Securities of that series with reference to this Section 10.8, in
the case of a series of Securities denominated in United States dollars, United
States money or U.S. Government Obligations, and in the case of a series of
Securities denominated in a currency other than U.S. dollars, funds in such
currency, in each case in an amount which, through the payment of interest and
principal in respect thereof in accordance with their terms, in an amount which
will provide not later than the opening of business on the due date of any payment
referred to in clause (1), (2) or (3) of this subparagraph (i), in the case of a
Series of Securities denominated in United States dollars, United States money or
U.S. Government Obligations, and in the case of a series of Securities

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denominated in a currency other than U.S. dollars, funds in such currency, in an
amount sufficient, in the opinion of an internationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge (1) the principal of (and premium,
if any), (2) interest on and (3) Additional Amounts, if any, on such Outstanding
Securities on the day on which such payments are due and payable in accordance with
the terms of this Indenture and of such Securities; and

(ii) such deposit does not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which the
Issuer or the Guarantor is a party or by which either is bound; and

(iii) no Event of Default with respect to the Securities of that series has
occurred and is continuing on the date of such deposit and no Event of Default
under Section 5.1(e), Section 5.1(f) or Section 5.1(h) is in occurrence and
continues on a date which is six months after the date of such deposit; and

(iv) the Issuer or the Guarantor has delivered to the Trustee an Opinion of Counsel
of recognized standing with respect to U.S. federal income tax matters to the
effect that the Holders of the Securities of that series will not recognize income,
gain or loss for United States federal income tax purposes as a result of such
deposit and Covenant Defeasance and will be subject to United States federal income
tax on the same amount and in the same manner and at the same times, as would have
been the case if such deposit and Covenant Defeasance had not occurred; and

(v) such 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 the Trust Indenture Act); and

(vi) such Covenant Defeasance shall not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment
Company Act; and

(vii) if the Securities of that series are then listed on any securities exchange,
the Issuer or the Guarantor has delivered to the Trustee an Opinion
of Counsel of recognized standing to
the effect that such deposit and Covenant Defeasance will not cause such Securities
to be delisted from such exchange; and

(viii) the Issuer or the Guarantor has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel of recognized standing, each stating that all

68

 

conditions precedent provided for relating to the Covenant Defeasance of the
specified provisions of this Indenture as they relate to the Outstanding Securities
of such series have been complied with as contemplated by this Section.

(b) From and after the date when the foregoing conditions have been met, the Issuer or the
Guarantor, as the case may be, may omit to comply with, and shall have no liability in
respect of, any term, covenant, condition or limitation set forth in any of the specified
provisions of this Indenture with respect to which the Covenant Defeasance has taken place
as contemplated herein, but the remainder of this Indenture and the Securities of any other
series will be unaffected thereby.

ARTICLE 11

Redemption of Securities

     SECTION 11.1. 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 2.1 for Securities of any series) in accordance with this
Article.

     SECTION 11.2. Election to Redeem: Notice to Trustee. The election of the Issuer to redeem any
Securities of any series shall be evidenced by a Board Resolution. In case of any redemption at
the election of the Issuer of all or less than all the Securities of any series (including any such
redemption affecting only a single Security), the Issuer shall, at least 60 days prior to the
Redemption Date fixed by the Issuer (unless a shorter notice shall be reasonably 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 Issuer
shall furnish the Trustee with an Officer’s Certificate evidencing compliance with such
restriction.

     SECTION 11.3. Selection by Trustee of Securities to Be Redeemed.

(a) If less than all the Securities of any series are to be redeemed (unless all of the
Securities of such series and of a specified tenor are 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 Securities 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 of the Securities of such series and of a specified

69

 

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

(b) The provisions of the preceding paragraph shall not apply with respect to any
redemption affecting only a single Security of a series, 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 such Security shall be in an authorized denomination
(which shall not be less than the minimum authorized denomination) for such Security.

(c) For all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities of a series 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 of such series which has been or is to be redeemed.

     SECTION 11.4. Notice of Redemption.

(a) 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 of the applicable series to be redeemed at his or her address appearing in the
Register; provided, however, that with respect to a redemption pursuant to Section 11.8
hereof, the relevant notice periods shall be not less than 30 days nor more than 75 days
prior to the Redemption Date. All notices of redemption shall state:

(i) the Redemption Date;

(ii) the Redemption Price, plus accrued interest, if any;

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

(iv) that on the Redemption Date the Redemption Price, plus accrued interest, if
any, net of any withholding required by Spanish law and regulations will become due
and payable upon each such Security to be

70

 

redeemed and, if applicable, that interest thereon will cease to accrue on and
after said date;

(v) the place or places where each such Security is to be surrendered for payment
of the Redemption Price, plus accrued interest, if any;

(vi) that the redemption is for a sinking fund, if such is the case; and

(vii) the CUSIP and ISIN number or numbers, if any, with respect to such
Securities.

(b) Notice of redemption of a series of Securities to be redeemed at the election of the
Issuer shall be given by the Issuer or, at the Issuer’s request, by the Trustee in the name
and at the expense of the Issuer and shall be irrevocable.

     SECTION
11.5. Deposit of Redemption Price. On or prior to any Redemption Date, the Issuer shall deposit with the Trustee or with a Paying Agent
(or, if the Issuer or the Guarantor is acting as its own Paying Agent, segregate and hold an trust
as provided in Section 10.3) 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 (subject to
the information collection and withholding obligations of Spanish law and regulations), all the
Securities of the series which are to be redeemed on that date.

     SECTION 11.6. Securities Payable on Redemption Date.

(a) Notice of redemption having been given as aforesaid, the Securities of any series 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 Issuer shall default in the
payment of the Redemption Price 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 Issuer at the Redemption Price, together with
accrued interest to the Redemption Date; provided, however, that unless otherwise specified
as contemplated by Section 2.1, installments of interest on Securities of a series whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of
such Securities, or one or more Predecessor Security, registered as such at the close of
business on the relevant Record Dates according to their terms and the provisions of
Section 2.8.

(b) If any Security of any series 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 11.7. Securities Redeemed in Part. Any Security of a series which is to be redeemed
only in part shall be surrendered at a Place of Payment therefor (with, if

71

 

the Issuer or the Trustee so requires, due endorsement by, or a written instrument of transfer
in form satisfactory to the Issuer and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Issuer 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
principal of the Security so surrendered.

     SECTION 11.8. Early Redemption for Taxation Reasons.

(a) If, in relation to the Securities of a series, (i) as a result of any change in the
laws or regulations of the Kingdom of Spain or any political subdivision thereof or any
authority or agency therein or thereof having power to tax, or in the interpretation or
administration of any such laws or regulations which becomes effective on or after the date
of issuance of the Securities, (x) the Issuer or the Guarantor, as the case may be, is or
would be required to pay any Additional Amounts (y) the Guarantor is or would be required
to deduct or withhold tax on any payment to the Issuer to enable the Issuer to make any
payment of principal, premium, if any, or interest on the Securities provided that such
payment cannot with reasonable effort by the Guarantor be structured to avoid such
deduction or withholding and (ii) such circumstances are evidenced by the delivery by the
Issuer or the Guarantor, as the case may be, to the Trustee of a certificate signed by an
authorized officer or director of the Issuer or the Guarantor, as the case may be, stating
that such circumstances prevail and describing the facts leading to such circumstances,
together with an opinion of independent legal advisers of recognized standing to the effect
that such circumstances prevail, the Issuer or the Guarantor, as the case may be, may, at
its option and upon proper notice as provided in this Indenture, redeem all of the
Outstanding Securities at a Redemption Price equal to their principal amount, together with
accrued and unpaid interest, if any, thereon to but excluding the Redemption Date (or such
other Redemption Price as specified in the terms of the Securities of the applicable
series). No such notice of redemption may be given earlier than 150 days prior to the date
on which the Issuer or the Guarantor would be obligated to pay such Additional Amounts were
a payment in respect of the Securities then due.

(b) In
addition, if so specified pursuant to Section 2.1 in respect of
any series of Securities, if such series of Securities is not listed on an organized market in an
OECD country no later than the number of days specified pursuant to
Section 2.1 to the initial Interest Payment Date on such series of
Securities, the Issuer or the Guarantor, as the case may be, may, at its option and having
given no less than 15 days’ notice (ending on a day which is no later than a Business Day
immediately preceding such Interest Payment Date) to the Holders of such series of
Securities and upon proper notice as provided in this Indenture, (which notice shall be
irrevocable), redeem all of the outstanding Securities of such series at their principal
amount, together with accrued interest, if any, thereon to but not including the Redemption
Date; provided that

72

 

from
and including the issue date of the Securities of such series to and
including such Interest Payment Date, the Issuer will use its reasonable
effort to obtain or maintain such listing, as applicable.

(c) In the case of any successor Person to the Issuer or the Guarantor, the foregoing
provision shall apply mutatis mutandis with respect to any jurisdiction in which such
successor Person to the Issuer or the Guarantor, as the case may be, is organized, or any
political subdivision or taxing authority thereof or therein, except that the change of
laws or regulations or interpretations or the administration thereof referred to in Section
11.8(a) above (other than if the relevant jurisdiction is Spain in which case the relevant
date remains the date of issuance) must occur on or after the date the successor Person
assumes the obligations of the Issuer or Guarantor, as the case may be.

ARTICLE 12

Sinking Funds

     SECTION 12.1. Sinking Funds. Unless otherwise provided in a supplemental indenture for the
applicable series of Securities as contemplated by or pursuant to Section 2.1, no series of
Securities will be subject to, or credited to the benefit, of any sinking fund.

73

 

     In witness whereof, each of the parties hereto has caused this Indenture to be duly
executed on its behalf as of the date first above written.

	 	 	 	 	 
	 	 	Telefónica Emisiones, S.A.U.,

as Issuer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Telefónica, S.A.,

as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A.,

as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

Exhibit A

Form of Security Certificate

Telefónica Emisiones, S.A.U.

[          %] [Floating Rate] Guaranteed [Notes] due

Payment of Principal [Premium, if any,] and

Interest Fully and Unconditionally Guaranteed by

Telefónica, S.A.

	 	 	 	 	 
	No.

	 	 	 	CUSIP No.
	 

	 	 	 	ISIN No.

     [If Global Certificate, insert- UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
DEFINITIVE CERTIFICATES, THIS GLOBAL CERTIFICATE MAY BE TRANSFERRED, IN WHOLE AND NOT IN PART,
ONLY: (I) BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, (II) BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY, OR (III) BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY, AND TRANSFERS OF THE
SECURITIES REPRESENTED BY THIS GLOBAL CERTIFICATE AND ANY BENEFICIAL INTERESTS IN ANY SECURITIES
REPRESENTED BY THIS GLOBAL CERTIFICATE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO BELOW.]

     [If Global Certificate deposited with DTC, insert- UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

A-1

 

     Telefónica Emisiones, S.A.U., a sociedad anónima incorporated under the laws of the
Kingdom of Spain (herein called the “Issuer”, which term includes any successor Person under the
Indenture referred to hereinafter), for value received, hereby promises to
        , or registered assigns, the principal sum of            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, [             
in arrears on      ,        ,
and            in each year], commencing      , [If
fixed rate securities, insert- at the rate of      % per annum] [If floating rate
securities, insert- formula for determining the interest rate] until the principal hereof is paid
or made available for payment [if applicable, insert - 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 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
Payment Date, which shall be immediately 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 the 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 date such amounts are due
until they are paid or made available for payment. Interest on any overdue principal shall be
payable on demand. Any such interest on any overdue principal or premium which is not so paid on
demand shall bear interest at the rate of      %

A-2

 

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 overdue interest shall be payable on demand.]

[If the issuance is denominated in a currency different from Euro, insert- For informational
purposes only, without any substantive effect whatsoever and solely in order to comply with Article
291, letter d) of the Spanish Corporations Law (Ley de Sociedades Anónimas), approved by Royal
Decree (Real Decreto Legislativo) 1564/1989, of December 22, as amended, it is hereby noted that,
as of the issue date of the Securities represented hereby the principal amount of this series of
Securities is equivalent to €      , based on the Noon Buying Rate for      of $       per €1.00. Amounts
due under the Securities shall not under any circumstances whatsoever be payable in any currency
other than       or such coin or currency of       as at the time of payment shall be legal tender for the
payment of public and private debts.]

     [             shall act as Paying Agent with respect to the Securities of this
series.]

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

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof, directly or through an Authenticating Agent, by manual signature of an
authorized signatory, the Securities represented by this Security Certificate shall not be entitled
to any benefit under the Indenture or be valid or obligatory for any purpose.

     [The public deed of issuance (escritura de emisión) related to the Securities represented
hereby was executed on            before            with the number            of the files.]

A-3

 

     In witness whereof, the Issuer has caused this instrument to be duly executed
manually [or in facsimile].

	 	 	 	 	 
	Dated:	 	Telefónica Emisiones, S.A.U.
	 
	 	 	 	 
	 

	 	By:	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	Name: 	 	 
	 

	 	Title: Director (Administrador Solidario)	 	

Certificate of Authentication

     This is one of the Security Certificates representing the Securities of the series designated
thereon referred to in the within-mentioned Indenture.

     Dated:

	 	 	 	 	 
	 

	 	 	 	JPMorgan Chase Bank, N.A.,

as Trustee
	 
	 	 	 	 
	 

	 	 	 	By:
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Officer

     This Security Certificate is unconditionally and irrevocably guaranteed by Telefonica, S.A. on
the terms set forth in the within-mentioned Guarantee pursuant to the Indenture.

	 	 	 	 	 
	Dated:	 	Telefónica, S.A.
	 

	 	By:	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	Name: 	 	 
	 

	 	Title: Director (Administrador Solidario)	 	 

A-4

 

Form of Reverse of Security

     This Security Certificate is one of the Security Certificates representing a duly authorized
issue of securities of the Issuer (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 Issuer, Telefónica,
S.A., a sociedad anónima incorporated under the laws of the Kingdom of Spain (herein called the
“Guarantor”, which term includes any successor Person under the Indenture referred to herein), and
JPMorgan Chase Bank, N.A., as Trustee (herein called the “Trustee”, which term includes any other
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
Issuer, the Guarantor, the Trustee and the Holders of the Securities and of the terms upon which
each Security Certificate representing the Securities is, and is to be, authenticated and
delivered. This Security Certificate represents the Securities of the series designated on the
face hereof [, limited in aggregate principal amount to [insert currency and amount]].

     [If further issues are contemplated, insert- The Issuer may from time to time, without the
consent of the Holders of Securities of this series, create and issue further securities having the same terms and conditions as
the previously issued Securities of this series in all respects (or in all respects except for the issue date, the first payment of
interest thereon and/or issue price), so that such further issue shall be consolidated and form a
single series with the outstanding Securities of this series; provided, however, that, for U.S. federal income tax purposes, any such
further issuance will only be made if either such additional securities are issued with no more
than de minimis original issue discount or any such further issuance is a “qualified reopening” as
such term is defined under Treasury Regulation Section 1.1275-2(k)(3) promulgated under the
Internal Revenue Code of 1986, as amended.
]

     [If applicable insert- The Securities of this series are subject to redemption upon not less
than 30 and not more than 60 days’ notice by mail, at any time, as a whole or in part, at the
election of the Issuer or the Guarantor at a Redemption Price which
is equal to [Specify provisions for determining the Redemption Price].

A-5

 

     [If applicable, insert- The Securities of this series are subject to redemption upon not less
than 30 and not more than 60 days’ notice by mail, [If applicable, insert- (l) on             
in any year commencing with this year            and ending with the year             
through operation of the sinking fund for this series at a Redemption
Price equal to [Insert
formula for determining amount] (with the amount in excess of 100% of the principal amount being
additional interest), and (2)] at any time [If applicable, insert - on or after             ],
as a whole or in part, at the election of the Issuer, 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,

	 	 	 	 	 	 	 
	Year
	 	Redemption Price
	 	Year
	 	Redemption 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.]

     [If applicable, insert - The Securities of this series are subject to redemption upon not less
than 30 and not more than 60 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 Issuer, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal amount, with the amount in
excess of 100%. of the principal amount being additional

A-6

 

interest) 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 Issuer 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 Issuer
(calculated in accordance with generally accepted financial practice) of less than
            % per annum.]

     [If
applicable, insert - The sinking fund for this series of
Securities provides for the redemption on
            in each year beginning with the year            and ending with the year             
of [If applicable, insert - not less than [insert currency and amounts] (“mandatory
sinking fund”) and not more than [Insert currency and amount] aggregate principal amount of
Securities of this series. Securities of this series acquired or redeemed by the Issuer 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 applicable, insert – The Securities may be redeemed upon not less than 30 nor more than 75
days’ notice given as provided in the Indenture, if (i) as a result of any change in the laws or
regulations of the Kingdom of Spain or any political subdivision thereof or any authority or agency
therein or thereof having power to tax, or in the interpretation or administration of any such laws
or regulations which becomes effective on or after the date of issuance of the Securities, (x) the
Issuer or the Guarantor, as the case may be, is or would be required to pay any Additional Amounts
(y) the Guarantor is or would be required to deduct or withhold tax on any payment to the Issuer to
enable the Issuer to make any payment of principal, premium, if any, or interest on the Securities
and

A-7

 

such payment cannot with reasonable effort by the Guarantor be structured to avoid such
deduction or withholding and (ii) such circumstances are evidenced by the delivery by the Issuer or
the Guarantor, as the case may be, to the Trustee of a certificate signed by an authorized officer
or director of the Issuer or the Guarantor, as the case may be, stating that such circumstances
prevail and describing the facts leading to such circumstances, together with an opinion of
independent legal advisers of recognized standing to the effect that such circumstances prevail, at
a Redemption Price equal to [their principal amount, together with accrued interest, if any,
thereon to but excluding the Redemption Date] [insert other formula for determining Redemption
Price].]

     [If applicable, insert – If this series of Securities is not listed on an organized market in an OECD country no later than
     days prior to the initial Interest Payment Date on this series of Securities, the Issuer or the
Guarantor, as the case may be, may, at its option and having given no less than 15 days’ notice
(ending on a day which is no later than a Business Day immediately preceding such Interest Payment
Date) to the Holders of this series of Securities and upon proper notice as provided in the
Indenture, (which notice shall be irrevocable), redeem all of the outstanding Securities of this
series at their principal amount, together with accrued interest, if any, thereon to but not
including the Redemption Date; provided that from and including the issue date of the Securities of
this series to and including such Interest Payment Date, the Issuer will use its reasonable effort
to obtain or maintain such listing, as applicable.]

     [If applicable, insert - The Redemption Price of the Securities shall be equal to the
applicable percentage of the principal amount at Stated Maturity set forth below:

	 	 	 
	If Redemption During the 12-Month

Period Commencing
	 	Redemption Price
	 
	 	 
	 	 	 
	 
	 	 

together with, in each case (except if the Redemption Date shall be a             ), an
amount equal to the applicable Redemption Price multiplied by a fraction the numerator of which is
the number of days from but not including the preceding            to and including the
Redemption Date multiplied by the difference between the Redemption Price applicable during the 12
months beginning on the            following the Redemption Date (or, in the case of a
Redemption Date after      , 100%) and the Redemption Price applicable on the
Redemption Date and the denominator of which is the total number of days from but not including the
            preceding the Redemption Date to and including the next succeeding
        . The Issuer will also pay to each eligible Holder, or make available for payment to each
such Holder, on the Redemption Date any additional interest (as set forth [on the face hereof or]
in the Guarantee endorsed hereon) resulting from the payment of such Redemption Price.]

A-8

 

     [If applicable, insert - The Redemption Price of the Securities either in the event of certain
changes in the tax treatment or in an event of default would include, in addition to the rate
amount of the Security, an amount equal to the Original Issue Discount accrued since the issue
date. Original Issue Discount (the difference between the Issue Price and the Principal Amount at
Maturity of the Security), in the period during which a Security remains outstanding, shall accrue
at      % per annum, on a semi-annual bond equivalent basis using a 360-day year
composed of twelve 30-day months, commencing on the issue date of this Security.]

     [If applicable, insert - Notice of redemption will be given by mail to Holders of Securities,
not less than 30 nor more than 60 days prior to the date fixed for redemption, all as provided in
the Indenture.]

     [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.]

     [If applicable, insert - The Indenture contains provisions for defeasance at any time of the
entire indebtedness on this Security upon compliance by the Issuer or the Guarantor with certain
conditions set forth thereon, which provisions apply to this Security.]

     [If applicable, insert - Subject to and upon compliance with the provisions of the Indenture,
the Holder of this Security is entitled, at his option, at any time after      , to
convert this Security into [describe Securities and conversion mechanics including, as applicable,
the limitations(s), if any, necessitated by Spanish law and regulations governing the collection of
Beneficial Owner Information and related withholding].]

     [If applicable, insert - In the event of conversion of this Security in part only a new
Security or Securities of this series and of like tenor for the unconverted portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof but subject to the
constraints, if any, of Spanish law and regulations governing the collection of Beneficial Owner
Information and related withholding.]

     [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, 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

A-9

 

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
Issuer’s obligations in respect of the payment of the principal of and if any, on the Securities of
this series shall terminate.]

     [All amounts payable (whether in respect of principal, redemption amount, interest or
otherwise) in respect of the Securities of this series and the related Guarantee by the Issuer or
the Guarantor will be made free and clear of and without withholding or deduction for or on account
of any present or future taxes, duties, assessments or governmental charges of whatever nature
imposed or levied by or on behalf of the Kingdom of Spain or any political subdivision thereof or
any authority or agency therein or thereof having power to tax, unless the withholding or deduction
of such taxes, duties, assessments or governmental charges is required by law. In the event that
such withholding or deduction is required by law, the Issuer or the Guarantor shall pay such
Additional Amounts as will result in receipt by the Holders of such series of Securities of such
amounts as would have been received by them had no such withholding or deduction been required;
provided, however, that the Issuer and the Guarantor will not be required to pay any Additional
Amounts in respect of any Security of this series:

	 	(1)	 	to a Holder of such Security who is liable for such taxes, duties, assessments or
governmental charges in respect of such Security by reason of it (or the Beneficial Owner
for whose benefit it holds such Security) having some connection with the Kingdom of Spain
other than the mere holding of such Security (or such beneficial interest);
	 
	 	(2)	 	to a Holder of such Securities in respect of whom the Issuer or the Guarantor does
not receive such information (which may include a tax residence certificate) concerning
such Holder’s identity and tax residence (or the identity and tax residence of the
Beneficial Owner for whose benefit it holds such Security) as it may require in order to
comply Law 13/1985 of May 25 (as amended by Law 19/2003 of July 4 and Law 23/2005 of
November 18) and any implementing legislation or regulation;
	 
	 	(3)	 	presented for payment (where presentation is required) more than 30 days after the
Relevant Date (as defined below), except to the extent that the relevant Holder would have
been entitled to such Additional Amounts on presenting the same for payment on the expiry
of such period of 30 days;
	 
	 	(4)	 	where the withholding or deduction is imposed on a payment to or for the benefit of
an individual and is required to be made pursuant to European Council Directive 2003/48/EC
or any other Directive implementing the conclusions of the ECOFIN Council meeting of
November 26-27, 2000 or

A-10

 

	 	 	 	any law implementing or complying with, or introduced in order to conform to, such
Directives;
	 
	 	(5)	 	presented for payment (where presentation is required) by or on behalf of a Holder
(or Beneficial Owner) who would have been able to avoid such withholding or deduction by
presenting the relevant Security to another paying agent in a Member State of the European
Union;
	 
	 	(6)	 	to or for the benefit of individuals resident for tax purposes in the Kingdom of
Spain or individuals or any other legal entities resident in, or obtaining income through,
a tax haven territory (as defined in Royal Decree 1080/1991 of July 5); or
	 
	 	(7)	 	to or for the benefit of a Spanish-resident legal entity subject to Spanish Corporate
Income Tax if the Spanish tax authorities determine that the Securities of such series do
not comply with exemption requirements specified in the Reply to a Consultation of the
Directorate General for Taxation (Dirección General de Tributos) dated July 27, 2004 or
otherwise and require a withholding to be made;

provided further that Additional Amounts in respect of the Securities of this series will also not
be paid with respect to any payment to a Holder of any Securities of such series who is a
fiduciary, a partnership, a limited liability company or other than the sole Beneficial Owner of
that payment, to the extent that payment would be required by the laws of the Kingdom of Spain (or
any political subdivision thereof or any authority or agency therein or thereof having power to
tax) to be included in the income, for tax purposes, of a beneficiary or settlor with respect to
the fiduciary, a member of that partnership, an interest holder in that limited liability company
or a Beneficial Owner who would not have been entitled to the Additional Amounts had it been the
Holder.

     “Relevant Date” means, in respect of any payment, the date on which such payment first becomes
due and payable, but if the full amount of the moneys payable has not been received by the Paying
Agent on or prior to such due date, it means the first date on which the full amount of such moneys
having been so received and being available for payment to Holders, notice to that effect shall
have been duly given to the Holders in accordance with the Indenture.

     The foregoing provisions shall apply mutatis mutandis to any withholding or deduction for or
on account of any present or future taxes, assessments or governmental charges of whatever nature
of any jurisdiction in which any successor Person to the Issuer or the Guarantor, as the case may
be, is organized, or any political subdivision or taxing authority thereof or therein.]

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer

A-11

 

and the Guarantor and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Issuer, the Guarantor 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 Issuer or the
Guarantor 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 wherefore or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Security.

     As set forth in, and subject to, the provisions of the Indenture, if any Event of Default
shall occur in relation to the Securities of this series (taking into account any applicable grace
period), the Trustee or the Holders of not less than 25% in principal amount of the Outstanding
Securities of such series may, by written notice to the Issuer, at the Corporate Trust Office,
declare that the Securities of such series including principal, any premium thereon and all
interest then accrued and unpaid on the Securities of such series, as the case may be, shall be
immediately due and payable, whereupon the same shall become immediately due and payable, at their
principal amount together with all interest , if any, accrued and unpaid thereon and premium , if
any, payable in respect thereof without presentment, demand, protest or other notice of any kind,
all of which the Issuer or the Guarantor, as the case may be, will expressly waive, unless, prior
thereto, all Events of Default in respect of such Securities of such series shall have been cured.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and any premium and interest and, to the extent that payment of such interest shall be
legally enforceable, interest on any overdue principal or premium on any overdue interest, on this
Security at the rate or rates herein prescribed.

     [If Global Certificate, insert- Except as set forth in the Indenture, this Security may be
transferred, in whole and not in part, only: (i) by the Depositary to a nominee of the Depositary,
(ii) by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or
(iii) by the Depositary or any such nominee to a successor Depositary or a nominee of such
successor Depositary. Beneficial interests in a Security represented by a Global Certificate will
be exchangeable for Certificated Securities of such series only if: (a) the

A-12

 

Depositary notifies the Issuer that it is unwilling or unable to continue to act as Depositary
or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a
successor Depositary is not appointed by the Issuer within 120 days after the date of such notice
from the Depositary, (b) the Issuer notifies the Trustee in writing that it has reasonably elected
to cause the issuance of Certificated Securities of such series or (c) there shall have occurred
and be continuing an Event of Default with respect to the Securities of this series and the
Securities of this series will be accelerated in accordance with their terms and the terms of the
Indenture. Upon the occurrence of any of the events specified in (a), (b) or (c) above,
Certificated Securities of such series shall be (x) delivered by the Trustee in exchange for
beneficial interest in Securities of this series represented by Global Certificates and (y)
registered in such names, and issued in such authorized denominations, as shall be requested by or
on behalf of the Depositary in accordance with its customary procedures.]

     As provided in the Indenture, the Issuer shall cause to be kept at the Corporate Trust Office
of the Trustee a Register in which, subject to such reasonable regulations as it may prescribe, the
Issuer shall provide for the registration of Securities of this series and of transfers of
Securities of such series.

     [No service charge shall be made for any such registration of transfer or exchange, but the
Issuer or the Trustee may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith other than as set forth in the Indenture.]

     Prior to due presentment of this Security Certificate for registration of transfer of a
Security represented thereby, the Issuer, the Guarantor, the Trustee and any agent of the Issuer,
the Guarantor 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 2.8 of the Indenture) any interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Issuer, the Guarantor, the
Trustee nor any agent of the Issuer, the Guarantor or the Trustee shall be affected by notice to
the contrary.

     Pursuant to Section 5-1401 of the General Obligations Law of the State of New York, the
Indenture, the Securities and the Guarantees shall be governed by, and construed in accordance
with, the laws of the State of New York.

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

A-13

 

Exhibit B

Form of Guarantee

     For value received, Telefónica, S.A., a sociedad anónima organized under the laws of the
Kingdom of Spain, having its registered office at Gran Via 28, 28013 Madrid, Spain (herein called
the “Guarantor” which term includes any successor Person under the Indenture referred to in the
Security Certificate representing the Securities of any series upon which this Guarantee is
endorsed), hereby unconditionally and irrevocably guarantees to the Holders of the Securities of
any series represented by each Security Certificate upon which this Guarantee is endorsed and to
the Trustee, in its individual and trust capacities, and on behalf of each such Holder, the due and
punctual payment of the principal of, premium, if any, and interest and all other amounts due under
the Indenture and on such Securities of any such series and [If applicable, insert - the due and
punctual payment of the sinking fund or analogous payments referred to therein, if any,] when and
as the same shall become due and payable, whether at the Stated Maturity, by declaration of
acceleration, call for redemption or otherwise, on an unsubordinated and unconditional basis
according to the terms thereof and of the Indenture referred to therein. In case of the failure of
Telefónica Emisiones, S.A.U. (the “Issuer”, which term includes any successor Person under such
Indenture), punctually to make any such payment of principal,
premium, if any, and interest and all other amounts due under the
Indenture and on such Securities of any such series and [If applicable,
insert - and any sinking fund or analogous payment,] the Guarantor hereby agrees to
cause any such payment to be made punctually when and as the same shall become due and payable,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise,
and as if such payment were made by the Issuer.

     [If not applicable delete - The Guarantor hereby further agrees that any amounts to be payable
by the Guarantor under this Guarantee (whether in respect of principal, redemption amount, interest
or otherwise) will be made free and clear of and without withholding or deduction for or on account
of any present or future taxes, duties, assessments or governmental charges of whatever nature
imposed or levied by or on behalf of the Kingdom of Spain or any political subdivision thereof or
any authority or agency therein or thereof having power to tax shall at any time, unless the
withholding or deduction of such taxes, duties, assessments or governmental charges is required by
law. Subject to the exceptions set forth in Section 10.4 of the Indenture, in the event that such
withholding or deduction is required by law, the Guarantor shall pay such Additional Amounts as
will result in receipt by Holders of the Securities of any such series of such amounts as would have
been received by them had no such withholding or deduction been required.]

     The Guarantor hereby agrees that its obligations hereunder shall be as if it were principal
debtor and not merely surety, and shall be absolute, full and unconditional, irrespective of, and
shall be unaffected by, any invalidity,

B-1

 

irregularity
or unenforceability of such Securities of any such series or the Indenture, any
failure to enforce the provisions of such Securities of any such series or the Indenture, or any
waivers, modification or indulgence granted to the Issuer in respect thereof by the Holders of such
Securities of any such series or the Trustee or any other circumstance which may otherwise constitute a
legal or equitable discharge of a surety or guarantor; provided, however, that, notwithstanding the
foregoing, no such waiver, modification or indulgence shall, without the consent of the Guarantor,
increase the principal amount of such Securities of any such series, or increase the interest rate
thereon, or increase any premium payable upon redemption thereof, or change the currency of payment
thereon, or change the provisions relating to payments of Additional Amounts thereon, or alter the
Stated Maturity thereof or increase the principal amount of any Original Issue Discount Security
that would be due and payable upon a declaration of acceleration of the maturity thereof pursuant
to Section 5.2 of the Indenture. The Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of merger or bankruptcy of the Issuer, the
benefits of orden, division and excusion under Spanish law, any right to require a proceeding first
against the Issuer, protest or notice with respect to such Security or the indebtedness evidenced
thereby [If applicable, insert - or with respect to any sinking fund or analogous payment required
under such Securities of any such series] and all demands whatsoever, and covenants that this Guarantee
will not be discharged except by payment in full of the principal of, premium, if any, and interest
(including Additional Amounts, if any) on such Securities of any such series and the Guarantor shall
have fully performed all its obligations in accordance with the provisions of the Securities of
any such series, this Guarantee and the Indenture; after such time, this Guarantee shall not be valid
or obligatory for any purpose.

     The Guarantor shall be subrogated to all rights of the Holders of such Securities of any such
series and the Trustee against the Issuer in respect of any amounts paid to such Holders by the
Guarantor pursuant to the provisions of this Guarantee; provided, however, that the Guarantor shall
not be entitled to enforce, or to receive any payments arising out of or based upon such right of
subrogation until the principal of, premium, if any, and interest (including Additional Amounts, if
any) on all Securities of any such series issued under the Indenture shall have been paid in full.

     No reference herein to the Indenture and no provision of this Guarantee or of the Indenture
shall alter or impair the guarantee of the Guarantor, which is absolute and unconditional, of the
due and punctual payment of the principal of, premium on, if any, [If applicable, insert - and
interest (including Additional

B-2

 

Amounts, if any) on, and any sinking fund or analogous payments with respect to,] the
Securities of any such series represented by each Security Certificate upon which this Guarantee is
endorsed.

     The obligations of the Guarantor under this Guarantee shall, without any further act or thing
being required to be done or to occur, extend to the obligations of any successor Person who is not
the Guarantor arising in respect of the Securities of any such series by virtue of a substitution
pursuant to the Indenture.

     The obligations of the Guarantor in respect of the Securities of any such series will constitute
direct, unconditional, unsubordinated and unsecured obligations of the Guarantor and will rank pari
passu without any preference among such obligations of the Guarantor in respect of the Securities
of any such series and at least pari passu with all other unsubordinated and unsecured indebtedness and
monetary obligations involving or otherwise related to borrowed money of the Guarantor, present and
future; provided that the obligations of the Guarantor in respect of the Securities of any such series
will be effectively subordinated to those obligations that are preferred under Law 22/2003 (Ley
Concursal) dated July 9, 2003 regulating insolvency proceedings in the Kingdom of Spain.

     This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication with respect to each Security Certificate representing the Securities of any such series
on which this Guarantee has been endorsed shall have been manually executed by or on behalf of the
Trustee under the Indenture.

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

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

B-3

 

     Executed and dated as of the date hereof:

	 	 	 	 	 
	 	 	Telefónica, S.A.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	Date:
	 	 	 	 

B-4exv4w1

 

Exhibit 4.1

EARLE M. JORGENSEN

RETIREMENT SAVINGS PLAN

(As Amended and Restated

Effective as of August 1, 2005)

 

 

EARLE M. JORGENSEN RETIREMENT SAVINGS PLAN

History

     This plan, originally adopted effective as of May 3, 1990, as the Earle M. Jorgensen Company
Employee Stock Ownership Plan (the “Plan”), was amended and restated effective as of April
1, 1999 to be a stock bonus plan under Section 401(a) of the Code, and an eligible individual
account plan under Section 407(d)(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”).

     The Kilsby-Roberts Employee Stock Ownership Plan was consolidated with and into the Plan in
1990.

     Effective January 1, 1991, certain assets from the plan adopted as of the first day of
January, 1984 by the Company as the Earle M. Jorgensen Company Employee Stock Ownership and Capital
Accumulation Plan were transferred to this Plan. The Earle M. Jorgensen Employee Stock Ownership
and Capital Accumulation Plan was then renamed the Earle M. Jorgensen Company Employee Capital
Accumulation Plan (the “ECAP”).

     Effective April 1, 2004 the Plan was renamed the Earle M. Jorgensen Stock Bonus Plan.

     Effective August 1, 2005 (the “Effective Date”), (1) the Plan is amended and restated into
this document, (2) the Plan is renamed the Earle M. Jorgensen Retirement Savings Plan, and (3) the
ECAP is merged into the Plan.

     The Company maintains, as of the Effective Date, the Plan for the benefit of eligible
employees of the Company and its participating affiliates. The Plan is intended to constitute a
qualified stock bonus plan, as described in Section 401(a) of the Code, which includes a qualified
cash or deferred arrangement, as described in Section 401(k) of the Code.

     The benefits, rights and features of an individual who participated in this Plan or the ECAP
before the close of business on the Effective Date, but who does not have an account balance under
the Plan at that time, will be determined under the applicable instruments in effect for this Plan
or the ECAP, whichever is applicable, on the earlier of: (1) the day on which such individual’s
account was reduced to zero; or (2) the day on which such individual’s employment terminated. The
terms of this Plan apply to any accounts created for such individual hereunder on or after the
Effective Date.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	1.1 Accounting Period
	 	 	1	 
	1.2 Accounts
	 	 	1	 
	1.3 Active Participant
	 	 	2	 
	1.4 Additional Employer Contributions
	 	 	2	 
	1.5 Administrative Services Agreement
	 	 	2	 
	1.6 Administrative Committee
	 	 	2	 
	1.7 Allocation Date
	 	 	3	 
	1.8 Alternate Payee
	 	 	3	 
	1.9 Appendix
	 	 	3	 
	1.10 Authority or Discretion
	 	 	3	 
	1.11 Authorized Absence
	 	 	3	 
	1.12 Beneficiary
	 	 	3	 
	1.13 Board of Directors
	 	 	3	 
	1.14 Break in Service
	 	 	3	 
	1.15 Business Day
	 	 	4	 
	1.16 Claims Administrator
	 	 	4	 
	1.17 Code
	 	 	4	 
	1.18 Commonly Controlled Entity
	 	 	4	 
	1.19 Company
	 	 	4	 
	1.20 Company Stock
	 	 	4	 
	1.21 Compensation
	 	 	4	 
	1.22 Continuous Service
	 	 	5	 
	1.23 Contribution
	 	 	5	 
	1.24 Contribution Dollar Limit
	 	 	5	 
	1.25 Contribution Election or Election
	 	 	5	 
	1.26 Contribution Percentage
	 	 	5	 
	1.27 Credited Service
	 	 	6	 
	1.28 Designated Officer
	 	 	6	 
	1.29 Direct Rollover
	 	 	6	 
	1.30 Disability or Disabled
	 	 	7	 
	1.31 Distributee
	 	 	7	 
	1.32 Effective Date
	 	 	7	 
	1.33 Eligible Employee
	 	 	7	 
	1.34 Eligible Retirement Plan
	 	 	8	 
	1.35 Eligible Rollover Distribution
	 	 	8	 
	1.36 EMJ Stock Fund
	 	 	8	 
	1.37 Employee
	 	 	8	 
	1.38 Employer
	 	 	8	 
	1.39 Employment Date
	 	 	9	 
	1.40 ERISA
	 	 	9	 
	1.41 Exchange Election
	 	 	9	 
	1.42 Fair Market Value
	 	 	9	 

i

 

	 	 	 	 	 
	 	 	Page	 
	1.43 Forfeiture
	 	 	10	 
	1.44 Full Time Employee
	 	 	10	 
	1.45 HCE
	 	 	10	 
	1.46 Hour of Service
	 	 	10	 
	1.47 Inactive Participant
	 	 	10	 
	1.48 Investment Committee
	 	 	11	 
	1.49 Investment Election
	 	 	11	 
	1.50 Investment Fund
	 	 	11	 
	1.51 Kilsby ESOP
	 	 	11	 
	1.52 Maternity/Paternity Absence
	 	 	11	 
	1.53 Member
	 	 	11	 
	1.54 Named Fiduciary
	 	 	11	 
	1.55 NHCE
	 	 	11	 
	1.56 Normal Retirement Date
	 	 	11	 
	1.57 Participant
	 	 	11	 
	1.58 Payment Date
	 	 	12	 
	1.59 Period of Severance
	 	 	12	 
	1.60 Plan
	 	 	12	 
	1.61 Plan Year
	 	 	12	 
	1.62 Predecessor Company
	 	 	12	 
	1.63 QDRO
	 	 	12	 
	1.64 Recordkeeper
	 	 	12	 
	1.65 Reemployment Date
	 	 	12	 
	1.66 Republic ESOP
	 	 	12	 
	1.67 Settlement Date
	 	 	13	 
	1.68 Spousal Consent
	 	 	13	 
	1.69 Spouse
	 	 	13	 
	1.70 Sweep Time
	 	 	13	 
	1.71 Termination of Employment
	 	 	13	 
	1.72 Trade Date
	 	 	13	 
	1.73 Trust
	 	 	13	 
	1.74 Trust Agreement
	 	 	13	 
	1.75 Trust Fund
	 	 	14	 
	1.76 Trustee
	 	 	14	 
	1.77 Vice President
	 	 	14	 
	1.78 Year of Eligibility Service
	 	 	14	 
	 
	 	 	 	 
	ARTICLE II PARTICIPATION
	 	 	15	 
	2.1 Eligibility
	 	 	15	 
	2.2 Impact of Change of Employment Status on Eligibility
	 	 	15	 
	2.3 Duration
	 	 	15	 
	2.4 Electronic Media
	 	 	15	 
	 
	 	 	 	 
	ARTICLE III CONTRIBUTIONS
	 	 	17	 
	3.1 Before-Tax Contributions
	 	 	17	 
	3.2 Rollover Contributions
	 	 	17	 
	3.3 Employer Contributions
	 	 	18	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	3.4 Employer Contribution on Return from Qualified Military Leave
	 	 	19	 
	3.5 Catch-Up Contributions
	 	 	19	 
	 
	 	 	 	 
	ARTICLE IV LIMITATION ON CONTRIBUTIONS
	 	 	21	 
	4.1 Limit on Before-Tax Contributions
	 	 	21	 
	4.2 Actual Deferral Percentage Test
	 	 	21	 
	4.3 Maximum Contributions
	 	 	22	 
	4.4 Imposition of Limitations
	 	 	23	 
	4.5 Return of Excess Annual Additions, Deferrals and Contributions
	 	 	23	 
	4.6 Incorporation by Reference
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V ACCOUNTING FOR PARTICIPANTS’ ACCOUNTS AND FOR INVESTMENT OPTIONS
	 	 	26	 
	5.1 Individual Participant Accounting
	 	 	26	 
	5.2 Accounting for Investment Funds
	 	 	27	 
	5.3 Accounts for Beneficiaries and Alternate Payees
	 	 	27	 
	5.4 Transition Rules
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VI INVESTMENT OPTIONS AND ELECTIONS
	 	 	29	 
	6.1 Investment of Contributions
	 	 	29	 
	6.2 Investment of Accounts
	 	 	29	 
	6.3 Investment Funds
	 	 	30	 
	6.4 Transition Rules
	 	 	30	 
	6.5 Restricted Investment Funds
	 	 	31	 
	6.6 Risk of Loss
	 	 	33	 
	6.7 Interests in the Investment Funds
	 	 	33	 
	6.8 Sole Source of Benefits
	 	 	33	 
	6.9 Alternate Payees and Beneficiaries
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VII VESTING AND FORFEITURES
	 	 	34	 
	7.1 Full Vesting in Employer Contribution Account
	 	 	34	 
	7.2 Vesting
	 	 	34	 
	7.3 Vesting in Before-Tax, After-Tax and Rollover Accounts
	 	 	35	 
	7.4 Forfeitures
	 	 	35	 
	7.5 Application of Forfeitures
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VIII PARTICIPANT LOANS
	 	 	36	 
	8.1 Participant Loans Permitted
	 	 	36	 
	8.2 Loan Funding Limits
	 	 	36	 
	8.3 Maximum Number of Loans
	 	 	36	 
	8.4 Source of Loan Funding
	 	 	37	 
	8.5 Interest Rate
	 	 	37	 
	8.6 Repayment
	 	 	37	 
	8.7 Reinvestment of Repayments
	 	 	37	 
	8.8 Loan Application, Note and Security
	 	 	37	 
	8.9 Default
	 	 	37	 
	8.10 Foreclosure
	 	 	38	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	8.11 Spousal Consent
	 	 	39	 
	8.12 Special Rules Concerning Loan Repayments While on Qualified Military Leave
	 	 	39	 
	 
	 	 	 	 
	ARTICLE IX WITHDRAWALS
	 	 	40	 
	9.1 Withdrawals from After-Tax Account
	 	 	40	 
	9.2 Withdrawals from Rollover Account
	 	 	40	 
	9.3 Withdrawals from Before-Tax Account for Hardship
	 	 	40	 
	9.4 Withdrawals On or After Age 591/2
	 	 	41	 
	9.5 Total Withdrawals
	 	 	41	 
	9.6 Withdrawal Processing Rules
	 	 	41	 
	9.7 Alternate Payees and Beneficiaries
	 	 	42	 
	 
	 	 	 	 
	ARTICLE X ADDITIONAL PROVISIONS FOR AN INACTIVE PARTICIPANT
	 	 	43	 
	10.1 Request for Withdrawal of Benefits
	 	 	43	 
	10.2 Deadline for Withdrawal
	 	 	43	 
	10.3 Payment Form and Medium
	 	 	44	 
	10.4 Small Amounts Paid Immediately
	 	 	44	 
	10.5 Continued Payment of Amounts in Payment Status on Effective Date
	 	 	44	 
	10.6 Direct Rollover
	 	 	44	 
	10.7 Delay
	 	 	44	 
	10.8 Alternate Payees and Beneficiaries
	 	 	45	 
	 
	 	 	 	 
	ARTICLE XI DISTRIBUTION OF ACCRUED BENEFITS ON DEATH
	 	 	46	 
	11.1 Payment to Beneficiary
	 	 	46	 
	11.2 Beneficiary Designation
	 	 	46	 
	11.3 Direct Rollover
	 	 	47	 
	11.4 Alternate Payees and Beneficiaries
	 	 	47	 
	 
	 	 	 	 
	ARTICLE XII MINIMUM DISTRIBUTION REQUIREMENTS
	 	 	48	 
	12.1 General Rules
	 	 	48	 
	12.2 Time and Manner of Distribution
	 	 	48	 
	12.3 Required Minimum Distributions During Participant’s Lifetime
	 	 	49	 
	12.4 Required Minimum Distributions After Participant’s Death
	 	 	50	 
	12.5 Definitions
	 	 	51	 
	 
	 	 	 	 
	ARTICLE XIII PLAN ADMINISTRATION AND COMPANY ACTIONS
	 	 	52	 
	13.1 General
	 	 	52	 
	13.2 Claims Procedure
	 	 	58	 
	13.3 Notices to Participants, Etc
	 	 	61	 
	13.4 Notices to Claims Administrator
	 	 	62	 
	13.5 Committees
	 	 	62	 
	13.6 Company Action
	 	 	62	 
	 
	 	 	 	 
	ARTICLE XIV ADOPTION AND WITHDRAWAL FROM PLAN
	 	 	63	 
	14.1 Adoption by Other Employers.
	 	 	63	 

iv

 

	 	 	 	 	 
	 	 	Page	 
	14.2 Withdrawal from the Plan
	 	 	63	 
	14.3 Employee Transfers Within Participating Group
	 	 	64	 
	14.4 Designation of Agent
	 	 	64	 
	 
	 	 	 	 
	ARTICLE XV AMENDMENT, TERMINATION AND MERGER
	 	 	65	 
	15.1 Amendments
	 	 	65	 
	15.2 Plan Termination
	 	 	66	 
	15.3 Plan Merger and Spinoff
	 	 	66	 
	15.4 Design Decisions
	 	 	67	 
	 
	 	 	 	 
	ARTICLE XVI SPECIAL TOP-HEAVY RULES
	 	 	68	 
	16.1 Application of Article XVI
	 	 	68	 
	16.2 Definitions Concerning Top-Heavy Status
	 	 	68	 
	16.3 Calculation of Top-Heavy Ratio
	 	 	69	 
	16.4 Effect of Top-Heavy Status
	 	 	69	 
	16.5 Effect of Discontinuance of Top-Heavy Status
	 	 	70	 
	16.6 Intent of Article XVI
	 	 	70	 
	 
	 	 	 	 
	ARTICLE XVII MISCELLANEOUS PROVISIONS
	 	 	71	 
	17.1 Assignment and Alienation
	 	 	71	 
	17.2 Protected Benefits
	 	 	71	 
	17.3 Plan Does Not Affect Employment Rights
	 	 	71	 
	17.4 Deduction of Taxes from Amounts Payable
	 	 	71	 
	17.5 Facility of Payment
	 	 	71	 
	17.6 Source of Benefits
	 	 	72	 
	17.7 Reduction for Overpayment
	 	 	72	 
	17.8 Company Merger
	 	 	72	 
	17.9 Employees’ Trust
	 	 	72	 
	17.10 Construction
	 	 	72	 
	17.11 Invalidity of Certain Provisions
	 	 	73	 
	17.12 Headings
	 	 	73	 
	17.13 Governing Law
	 	 	73	 
	17.14 Notice and Information Requirements
	 	 	73	 
	17.15 Reliance on Information Provided to Plan
	 	 	73	 
	17.16 Recognition of Power of Attorney
	 	 	73	 
	 
	 	 	 	 
	APPENDIX 1.50 – Investment Funds
	 	 	 	 
	 
	 	 	 	 
	APPENDIX 3.3 – Additional Employer Contributions for Plan Years Ending in 2005 and 2006
	 	 	 	 

v

 

ARTICLE I

DEFINITIONS

     The following sections of this Article I provide basic definitions of terms used throughout
the Plan, and whenever used herein in a capitalized form, except as otherwise expressly provided,
the terms will be deemed to have the following meanings:

     1.1 “Accounting Period” means a period, not to exceed 1 year in duration, designated
by the Administrative Committee with respect to each Investment Fund.

     1.2 “Accounts” means the record of a Participant’s interest in the Plan’s assets
represented by his:

          (a) “After-Tax Account” which is composed of the amount held in the “Employee
After-Tax Account” in the ECAP or this Plan immediately prior to the Effective Date (which is
attributable to allocation of after-tax contributions prior to 1987), plus all income and gains
credited to, and minus all losses, expenses and withdrawals charged to, such Account.

          (b) “Before-Tax Account” which is composed of the amount held in the “Employee 401(k)
Account” in the ECAP immediately prior to the Effective Date, Before-Tax Contributions allocated to
the Participant on and after the Effective Date under the Plan, plus all income and gains credited
to, and minus all losses, expenses and withdrawals charged to, such Account.

          (c) “Company Stock Account” which is composed of the amount held in the Company Stock
Account of this Plan immediately prior to the Effective Date which contains the former balances in
his “Company Stock Accounts” under the Kilsby ESOP or the “Stock Balance” in his ESOP Account under
the ECAP, Additional Employer Contributions allocated to the Participant, plus income and gains
credited to, and minus all losses, expenses and withdrawals charged to, such Account.

          (d) “Employer Contribution Account” which is composed of Employer Contributions,
excluding Additional Employer Contributions, allocated to the Participant on and after the
Effective Date under the Plan, plus income and gains credited to, and minus all losses, expenses
and withdrawals charged to, such Account.

          (e) “Match Account” which is the amount held in the “Matching Account” of the Plan
immediately prior to the Effective Date (which is attributable to match contributions prior to
1987), plus all income and gains credited to, and minus all losses, expenses and withdrawals
charged to, such Account.

          (f) “Other Investments Account” which is composed of the Other Investments Account of
this Plan immediately prior to the Effective Date (which contains former balances of his Other
Investment Accounts under the Kilsby ESOP or the “Cash Balance in his ESOP Account” in the ECAP), plus all income and gains credited to, and minus all losses, expenses
and withdrawals charged to, such Account.

1

 

          (g) “PAYSOP Account” means the amount held in the “PAYSOP Account” of this Plan
immediately prior to the Effective Date (which reflects a Participant’s interest under the Plan
attributable to his “PAYSOP Account” under the Kilsby ESOP or under the ECAP), plus all income and
gains credited to, and minus all losses, expenses and withdrawals charged to, such Account. There
are two types of PAYSOP Account, one for contributions allocated prior to 1987 and one for
contributions allocated after 1986 and prior to the Effective Date.

          (h) “Prior Stock Bonus Account” means both the Company Stock Account and the Other
Investments Account.

          (i) “Rollover Account” which is composed of the amount held in the “Rollover Accounts”
in the ECAP immediately prior to the Effective Date, the amount held in the “Rollover Account” of
this Plan immediately prior to the Effective Date, Rollover Contributions made by or allocated to
the Participant on and after the Effective Date under the Plan, plus all income and gains credited
to, and minus all losses, expenses and withdrawals charged to, such Account. On and after the
Effective Date, there are two additional types of Rollover Accounts to which Rollover Contributions
are allocated on and after the Effective Date: an After-Tax Rollover Account for Rollover
Contributions of amounts which are not includible in gross income, as described in Section
402(c)(2)(A) of the Code, and a Before-Tax Rollover Account for all other Rollover Contributions.

With respect to an Alternate Payee or Beneficiary, references to Accounts will be deemed to be
references to all or that portion of a Participant’s After-Tax Account, Before-Tax Account,
Employer Contribution Account, Match Account, PAYSOP Account, Prior Stock Bonus Account or Rollover
Account which, under the terms of the Plan, has been allocated to an Account maintained for such
Alternate Payee or Beneficiary, plus all income and gains credited to, and minus all losses,
expenses and withdrawals charged to, such Account. References herein to Accounts will also be
deemed to include each of a Participant’s Accounts and references herein to an Account will be
deemed to include any or each of the Participant’s Accounts.

     1.3 “Active Participant” means a Participant who is an Employee.

     1.4 “Additional Employer Contributions” means Employer Contributions made for Plan
Years ending March 31, 2005, and March 31, 2006, as set forth in Appendix 3.3.

     1.5 “Administrative Services Agreement” means an agreement with the Recordkeeper to
provide administrative services to the Plan and will include the Administration Manual prepared by
the Recordkeeper, or if no such agreement, rules established by the Administrative Committee.

     1.6 “Administrative Committee” means the Vice President plus those other members
added, if any, to, and still serving on, the Administrative Committee, or if a Named Fiduciary has been identified with respect to the Authority or Discretion involved in the administration of this
Plan under consideration, then reference to the Administrative Committee in that context refers to
such Named Fiduciary. References in this Plan to the Administrative Committee will be deemed to be a reference to
any person (other than a Fiduciary) to whom ministerial

2

 

responsibilities involved in the provisions
of this Plan have been delegated by the Administrative Committee, including under an Administrative
Services Agreement.

     1.7 “Allocation Date” means March 31st of each year (the last day of each
Plan Year).

     1.8 “Alternate Payee” means an individual who is entitled to all or a portion of a
Participant’s Account pursuant to a QDRO.

     1.9 “Appendix” means a written supplement attached to this Plan and made a part
hereof.

     1.10 “Authority or Discretion” means(a) the authority, control or discretion with
respect to the Plan or Trust which is identified or allocated to a Named Fiduciary under the terms
of the Plan or Trust or a procedure in the Plan, or (b) the exercise of such authority, control or
discretion by a Named Fiduciary.

     1.11 “Authorized Absence” means a leave of absence (without pay) granted to an
Employee by the Employer, in accordance with rules uniformly applied to all Employees, for reasons
of health or public service or for other reasons determined by the Employer to be in its best
interests, including unpaid leave under the Family and Medical Leave Act of 1993.

     1.12 “Beneficiary” means an individual entitled to receive any benefits payable on the
death of a Participant in accordance with the Plan.

     1.13 “Board of Directors” means the board of directors of the Company as constituted
from time to time.

     1.14 “Break in Service” means:

           (a) with respect to Years of Eligibility Service, the first anniversary (or the second
anniversary if absence from employment was due to a Maternity/Paternity Absence) of the date of the
Participant’s Termination of Employment; and

           (b) with respect to Credited Service, a Plan Year in which an Employee is not credited with
more than 500 Hours of Service. More than one such consecutive Plan Year is referred to herein as
“Breaks in Service.” For purposes of determining whether a Break in Service has occurred, if an
Employee begins a Maternity/Paternity Absence, or any unpaid leave covered under the Family and
Medical Leave Act of 1993, the computation of his Hours of Service shall include the Hours of
Service that would have been credited if he had not been so absent. An Employee shall be credited
for such Hours of Service (up to a maximum of 501
Hours of Service) in the Plan Year in which such
absence begins (if such crediting will prevent him from incurring a Break in Service in such Plan
Year) or in the next following Plan Year.

     1.15 “Business Day” means any day on which the New York Stock Exchange and the Trustee
are open for business.

3

 

     1.16 “Claims Administrator” means the Administrative Committee unless and to the
extent allocated or delegated hereunder to a Named Fiduciary.

     1.17 “Code” means the Internal Revenue Code of 1986, as amended. References to any
specific Section will include any valid regulation promulgated thereunder, and any statutory
provision amending, supplementing or superseding such Section.

     1.18 “Commonly Controlled Entity” means: (a) an Employer and any corporation, trade or
business, but only for so long as it and the Employer are members of a controlled group of
corporations as defined in Section 414(b) of the Code or under common control as defined in Section
414(c) of the Code; provided, however, that solely for purposes of the limitations of Section 415
of the Code, the standard of control under Sections 414(b) and 414(c) of the Code will be deemed to
be “more than 50%” rather than “at least 80%”; (b) an Employer and an organization, but only for so
long as it and the Employer are members of an affiliated service group as defined in Section 414(m)
of the Code; (c) an Employer and an organization, but only for so long as the employees of it and
the Employer are required to be aggregated under Section 414(o) of the Code; or (d) any other
organization designated as such by a Designated Officer. An entity will not be considered a
Commonly Controlled Entity before it becomes a Commonly Controlled Entity pursuant to the preceding
sentence.

     1.19 “Company” means Earle M. Jorgensen Company, a Delaware corporation, or any
successor corporation by merger, consolidation, purchase or otherwise, which elects to adopt the
Plan.

     1.20 “Company Stock” means common shares of the Company.

     1.21 “Compensation” means all “compensation” paid by the Company or a Commonly
Controlled Entity to an Employee during the Plan Year within the meaning of Treas. Reg.
§1.415-2(d)(1), (2) and (3) and including any amounts contributed to a plan qualifying under
Section 401(k) of the Code as salary reduction contributions or to a cafeteria plan under Section
125 of the Code or paid as a qualified transportation fringe under Section 132(f)(4) of the Code;
provided, however, that for purposes of Article III and Appendix 3.3, “Compensation” as defined
herein will only include such amount paid to an Employee for a period of time during which the
Employee is an Eligible Employee and will not include deferred compensation either in the Plan Year
of deferral or in the Plan Year of payment.

     Notwithstanding the foregoing, the maximum amount of an Employee’s Compensation which shall be
taken into account under the Plan for any Plan Year (“Maximum Compensation Limitation”) shall be
$210,000 for Plan Years beginning on or after January 1, 2005, such limitation adjusted at the same
time and in the same manner as under Sections 401(a)(17) and 415(d) of the Code. For any Plan Year
of fewer than twelve months, the Maximum Compensation Limitation shall, if required by Treasury
Regulations, be reduced to the amount obtained by multiplying such limitation by a fraction having
a numerator equal to the number of months in the Plan Year and a denominator equal to twelve.

4

 

     1.22 “Continuous Service” means the sum of the years (and fractions of years) measured
from an Employee’s Employment Date or Reemployment Date after a Break in Service to his or her date
of Termination of Employment first to occur after his or her Employment Date or Reemployment Date
after a Break in Service; provided, that if an Employee has a Period of Severance of less than
twelve (12) consecutive months after a Termination of Employment, such Termination of Employment
shall be disregarded and such Employee’s Continuous Service shall include such period when he or
she is not employed by a Commonly Controlled Entity.

     1.23 “Contribution” means an amount contributed to the Plan on behalf of a
Participant, in one or more of the following types:

           (a) “Before-Tax” which means an amount contributed by the Employer on a before-tax
basis under Section 402(g) or 414(v) of the Code in conjunction with a Contribution Election.

           (b) “Employer” which means contributions made by an Employer for a Plan Year,
including Additional Employer Contributions.

           (c) “Rollover” which means an amount contributed by or on behalf of a Participant that
constitutes all or part of an “eligible rollover distribution” within the meaning of Section
402(f)(2)(A) of the Code, and which satisfies the requirements of Section 402(c)(2) of the Code, to
the extent applicable.

     1.24 “Contribution Dollar Limit” means the annual limit imposed on each Participant
pursuant to Section 402(g) of the Code (as indexed pursuant to Section 402(g)(4) of the Code,
provided that no such adjustment will be taken into account hereunder before the Plan Year in which
it becomes effective), determined without regard to catch-up contributions under Section 414(v) of
the Code.

     1.25 “Contribution Election” or “Election” means the election made by an
Active Participant who is an Eligible Employee to reduce the Compensation to be paid to him by an
amount equal to the product of his Contribution Percentage and such Compensation subject to the
Contribution Election.

     1.26 “Contribution Percentage” means the percentage of an Eligible Employee’s
Compensation which is to be contributed to the Plan by his Employer as a Before-Tax Contribution.

     1.27 “Credited Service” means the number of Plan Years in which an Employee is
credited with at least 1000 Hours of Service. For a Participant in this Plan prior to the
Effective Date, the Participant’s Credited Service as of the Effective Date will be equal to his
Credited Service recognized under this Plan immediately prior to April 1, 2005 plus Credited
Service for Plan Years commencing on or after April 1, 2005. All determinations of Credited
Service shall be made in accordance with the regulations prescribed by the U.S. Department of
Labor. Credited Service will also include:

5

 

           (a) To the extent determined by a resolution of a Designated Officer, a Participant’s Credited
Service will include his service as an employee of a Predecessor Company if the Participant was an employee of the Predecessor Company when it became a Commonly
Controlled Entity.

           (b) Employment with a Commonly Controlled Entity before the Effective Date will be disregarded
in determining an Employee’s Credited Service if such employment would have been disregarded under
the rules of the Plan with regards to breaks in service as such rules were in effect under the Plan
from time to time before the Effective Date.

           (c) Credited Service as a “leased employee” within the meaning of Section 414(n) or (o) of the
Code will be credited for any period during which Section 414 of the Code requires the person to
earn Credited Service as a “leased employee.”

           Notwithstanding the above, if a Participant incurs a Termination of Employment or a withdrawal
under Section 9.4, the following Credited Service will be disregarded:

           (d) Any Participant with a nonforfeitable percentage interest in any of his Accounts will,
upon his Reemployment Date, have all of his Credited Service recognized under the Plan regardless
of the number of consecutive Breaks in Service.

           (e) Any Inactive Participant who does not have a nonforfeitable percentage interest in any of
his Accounts will, upon his Reemployment Date, after he has incurred a Break in Service for 5 or
more consecutive Plan Years, have all of his Credited Service earned prior to such Breaks in
Service disregarded for all purposes.

           (f) Years of Credited Service earned after 5 or more consecutive Breaks in Service will not be
recognized for purposes of determining the nonforfeitable percentage of the Employee Contribution
Account or Prior Stock Bonus Account which accrued prior to such Breaks in Service.

     1.28 “Designated Officer” means the Vice President and any other officer of the
Company to whom (but only to the extent specifically provided) authority to act on behalf of the
Company has been granted by the Board of Directors or one of its committees.

     1.29 “Direct Rollover” means a payment by the Plan to an Eligible Retirement Plan
specified by a Distributee.

     1.30 “Disability” or “Disabled” means the total and permanent disability of an
Employee, determined by a licensed physician approved by the Administrative Committee.

     1.31 “Distributee” means a Participant, or a Participant’s surviving Spouse; or, and
only with regard to the interest of an Alternate Payee, a Participant’s Spouse or former Spouse who
is the Alternate Payee.

     1.32 “Effective Date” means August 1, 2005, the date upon which the provisions of this
amended and restated document take effect.

6

 

     1.33 “Eligible Employee” means an Employee of an Employer whose Compensation is paid
in U.S. currency, except that an Eligible Employee does not include:

           (a) an Employee who is represented by a union unless the union and the Employer have entered
into a collective bargaining or other agreement that provides that the Employee may participate in
the Plan, and in such case the Employee will be considered an Eligible Employee only with respect
to that portion of the Plan for which such bargaining or other agreement specifically provides a
right to participate;

           (b) an Employee who is a “nonresident alien” (within the meaning of Section 7701(b)(1)(B) of
the Code) and who receives no “earned income” (within the meaning of Section 911(d)(2) of the Code)
from the Employer that constitutes income from sources within the United States (within the meaning
of Section 861(a)(3) of the Code);

           (c) an individual employed pursuant to an agreement providing that the individual is not
eligible to participate in the Plan;

           (d) an individual who is not contemporaneously classified as an Employee for purposes of the
Employer’s payroll system. In the event any such individual is reclassified as an Employee for any
purpose, including, without limitation, as a common law or statutory employee, by any action of any
third party, including, without limitation, any government agency, or as a result of any private
lawsuit, action, or administrative proceeding, such individual will, notwithstanding such
reclassification, remain ineligible for participation hereunder and will not be considered an
Eligible Employee. In addition to and not in derogation of the foregoing, the exclusive means for
an individual who is not contemporaneously classified as an Employee of the Employer on the
Employer’s payroll system to become eligible to participate in this Plan is through an amendment to
this Plan which specifically renders such individual eligible for participation hereunder;

           (e) an Employee whose basic compensation for services on behalf of an Employer is not paid
directly by an Employer; or

           (f) an Employee covered by a classification which is scheduled in an Appendix.

     1.34 “Eligible Retirement Plan” means an individual retirement account described in
Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the
Code, an annuity plan described in Section 403(a) of the Code, an eligible deferred compensation
plan described in Section 457(b) of the Code which is maintained by an eligible employer described
in Section 457(e)(1)(A) of the Code (but only if such employer agrees to separately account for
amounts transferred into such plan from the Plan), an annuity contract described in Section 403(b)
of the Code, or a qualified trust described in Section 401(a) of the Code which accepts a
Distributee’s Eligible Rollover Distribution. This definition of ‘Eligible Retirement Plan’ will
also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former Spouse who
is the Alternate Payee under a QDRO.

7

 

     1.35 “Eligible Rollover Distribution” means any distribution of all or any portion of
the balance to the credit of a Distributee, except that an Eligible Rollover Distribution does not
include any distribution that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the Distributee or the joint
lives (or joint life expectancies) of the Distributee and the Distributee’s designated Beneficiary,
or for a specified period of 10 years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of
the Code; or any ‘hardship withdrawal’, whether described in Section 401(k)(2)(B) of the Code and
the regulations promulgated thereunder or otherwise. The portion of a distribution which consists
of after-tax contributions which are not includible in gross income may be transferred only in a
trustee-to-trustee transfer and may be transferred only to an individual retirement account or
annuity described in Section 408(a) or (b) of the Code, or to a qualified defined contribution plan
described in Section 401(a) or 403(a) of the Code that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which is not so includible.

     1.36 “EMJ Stock Fund” means the Investment Fund invested primarily in Company Stock.

     1.37 “Employee” means any person who either: (a) renders services as a common law
employee to a Commonly Controlled Entity and is on the payroll of such Commonly Controlled Entity;
or (b) is on an Authorized Absence. Notwithstanding the foregoing, the term “Employee” does not
include any individual retained by a Commonly Controlled Entity directly or through an agency or
other party to perform services for a Commonly Controlled Entity (for either a definite or
indefinite duration) in the capacity of a fee-for-service worker or independent contractor or any
similar capacity including, without limitation, any such individual employed by temporary help
firms, technical help firms, staffing firms, employee leasing firms, professional employer
organizations or other staffing firms, whether or not deemed to be “common law” employees or
“leased employees” within the meaning of Section 414(n) of the Code.

     1.38 “Employer” means the Company and any Commonly Controlled Entity that adopts the
Plan in accordance with Article XV; provided, that an entity will cease to be an Employer when it ceases to be a Commonly Controlled Entity or it withdraws from the Plan.

     1.39 “Employment Date” means the day an Employee first earns an Hour of Service.

     1.40 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
Reference to any specific Section includes any valid regulation promulgated thereunder, and any
statutory provision amending, supplementing or superseding such Section.

     1.41 “Exchange Election” means an election by a Participant to change the investment
of all or some specified portion of such Participant’s Accounts. Rules applicable to Exchange
Elections may be established by the Administrative Committee. Such rules may, among other things,
limit the Investment Funds that may be elected by the Participant and establish the time and manner
in which such an election may be made.

8

 

     1.42 “Fair Market Value” means on each Business Day:

           (a) for an Investment Fund utilizing share accounting for shares readily tradable on an
established securities market:

               (1) if the shares are listed or admitted to trade on a national securities exchange, the
closing price of a share on the Composite Tape, as published in the Western Edition of The Wall
Street Journal, of the principal national securities exchange on which such stock is so listed or
admitted to trade, on such date, or, if there is no trading of the shares of such security on such
date, then the closing price of a share as quoted on such Composite Tape on the next preceding date
on which there was trading in the shares;

               (2) if the shares are not listed or admitted to trade on a national securities exchange, the
closing price for a share on such date, as furnished by the National Association of Securities
Dealers, Inc. (“NASD”) through the NASDAQ National Market Reporting System or a similar
organization if the NASD is no longer reporting such information; or

               (3) if the shares are not listed or admitted to trade on a national securities exchange and is
not reported on the NASDAQ National Market Reporting System, the mean between the bid and asked
price for a Share on such date, as furnished by the NASD or a similar organization.

           (b) for an Investment Fund utilizing unit accounting or for shares not readily tradable, the
value of a unit as determined in good faith by the Investment Committee and regulations under ERISA.

     1.43 “Forfeiture” means the forfeitable percentage of a Participant’s forfeitable
Accounts which is forfeited under the terms of the Plan.

     1.44 “Full Time Employee” means an Employee who is scheduled to work at least
thirty-two (32) hours per week.

     1.45 “HCE” means an Eligible Employee who is a “highly compensated employee” within
the meaning of Section 414(q) of the Code (determined as if the election described in Section
414(q)(1)(B)(ii) of the Code has been made), the provisions of which are incorporated herein by
reference.

     1.46 “Hour of Service” means, for purposes of determining the Hours of Service to be
credited to an Employee under the Plan, the following rules:

           (a) Hours of Service shall include each hour for which an Employee is paid (or entitled to
payment) for the performance of duties; each hour of Service for which an Employee is paid (or
entitled to payment) for a period during which no duties are performed due to vacation, holiday,
illness, incapacity (including disability), layoff, jury duty, military duty or paid leave of
absence; and each additional hour of Service for which back pay is either awarded or agreed to
(irrespective of mitigation of damages); provided, however, that not more than 501

9

 

Hours of Service
shall be credited for a single continuous period during which an Employee does not perform any
duties.

           (b) The crediting of Hours of Service shall be determined in accordance with the rules set
forth in paragraphs (b) and (c) of Section 2530.200b-2 of the regulations prescribed by the
Department of Labor, which rules shall be consistently applied with respect to all Employees within
the same job classification.

           (c) Hours of Service shall not be credited to an Employee for a period during which no duties
are performed if payment is made or due under a plan maintained solely for the purpose of complying
with applicable worker’s compensation, unemployment compensation or disability insurance laws, and
Hours of Service shall not be credited on account of any payment made or due an Employee solely in
reimbursement of medical or medically-related expenses.

           (d) An Employee compensated on an hourly basis shall be credited for each Hour of Service as
described above. Unless the Employer maintains records of actual Hours of Service, a salaried
Employee who completes at least one Hour of Service during a semi-monthly pay period shall be
credited with 95 Hours for each such period.

     The crediting of an Hour of Service will be made in accordance with Department of Labor
Regulation §2530.200b-2 and 3.

     1.47 “Inactive Participant” means a Participant who is not an Active Participant.

     1.48 “Investment Committee” means the Vice President plus those other members, if any, added to, and still serving on, the Investment Committee, or if a Named Fiduciary has been identified with respect to the Authority or Discretion involved in the investment of, or control over, the Plan’s assets under consideration, the references to the Investment Committee in that context refers to such Named Fiduciary. References in this Plan to the Investment Committee will be deemed to be a reference to any person (other than a Fiduciary) to whom ministerial responsibilities involved in the provisions of this Plan have been delegated by the Investment Committee, including under an Administrative Services Agreement.

     1.49 “Investment Election” means an election by which a Participant directs the investment of his Contributions or amounts allocated to his Accounts. Rules applicable to Investment Elections may be established by the Administrative Committee. Such rules may, among other things, limit the Investment Funds that may be elected by the Participant and establish the time and manner in which such an election may be made.

     1.50 “Investment Fund” means each of the Investment Funds available under the Plan as listed in Appendix 1.50.

     1.51 “Kilsby ESOP” means the Kilsby-Roberts Employee Stock Ownership Plan, a combination of a stock bonus plan and a money purchase pension plan (each of which is qualified under Section 401(a) of the Code) that constitutes an employee stock ownership plan under Section 4975(e)(7) of the Code and that includes a tax credit employee stock ownership plan under Section 409 of the Code.

10

 

     1.52 “Maternity/Paternity Absence” means an Employee’s absence (a) by reason of the (i) pregnancy of the Employee, (ii) birth of a child of the Employee or (iii) placement of a child with the individual in connection with the adoption of such child by such Employee, or (b) for purposes of caring for a child described in clause (a) for a period beginning immediately following such birth or placement.

     1.53 “Member” means a Participant, Alternate Payee or Beneficiary.

     1.54 “Named Fiduciary” means a named fiduciary within the meaning of the ERISA,
including without limitation, Sections 402, 403 or 405 of ERISA.

     1.55 “NHCE” means an Eligible Employee who is not an HCE.

     1.56 “Normal Retirement Date” means the date on which a Participant attains age 65.

     1.57 “Participant” means an Active Participant or an Inactive Participant, who is
participating in the Plan after completing the Plan’s requirements for participation, but only for
so long as such individual is considered a Participant in accordance with the terms of the Plan.

     1.58 “Payment Date” means the date on or after the Settlement Date on which a
withdrawal from an individual’s Account is made (or commenced), in whole or in part, which date
will be at least the minimum number of days required by law, if any, after the date the individual
has received such notice as is required by law, if any, before a withdrawal can be made (or
commenced to be made) as determined by the Administrative Committee.

     1.59 “Period of Severance” means the period of time measured from the later of (a) an
Employee’s Termination of Employment, and (b) the conclusion of a Maternity/Paternity Absence of no
longer than twelve (12) consecutive months, to the date thereafter he or she first earns an Hour of
Service.

     1.60 “Plan” means the Earle M. Jorgensen Retirement Savings Plan, as set forth herein
and as hereafter may be amended.

     1.61 “Plan Year” means the 12-month period ending on each Allocation Date, which
period shall also be the “limitation year” for purposes of Section 415 of the Code.

     1.62 “Predecessor Company” means an entity or predecessor thereof, prior, in either
case, to its becoming a Commonly Controlled Entity, or to its assets being acquired by a Commonly
Controlled Entity, as determined by the Company.

     1.63 “QDRO” means a domestic relations order which the Administrative Committee has
determined to be a qualified domestic relations order within the meaning of Section 414(p) of the
Code.

     1.64 “Recordkeeper” means the service provider who is a party to the Administrative
Services Agreement, or if none, the Administrative Committee.

11

 

     1.65 “Reemployment Date” means the first date on which an Employee completes an Hour
of Service by performing services as an Employee after a Break in Service.

     1.66 “Republic ESOP” means the Republic Supply Employee Stock Ownership Plan, a
combination of a stock bonus plan and a money purchase pension plan (each of which was qualified
under Section 401(a) of the Code) that constituted an employee stock ownership plan under Section
4975(e)(7) of the Code, that included a tax credit employee stock ownership plan under Section 409
of the Code and that was merged into the Kilsby ESOP effective as of December 1, 1989.

     1.67 “Settlement Date” means the Business Day as of which an Investment Election or
Exchange Election for a corresponding Trade Date or some other financial transaction involving the
Plan’s assets is posted to the Participant’s Account based on a transaction price or a closing
price as set forth in the Administrative Services Agreement.

     1.68 “Spousal Consent” means the irrevocable written consent given by a Spouse to a
Participant’s election (or waiver) of a specified form of benefit or Beneficiary designation. The
Spouse’s consent must acknowledge the effect on the Spouse of the Participant’s election, waiver or
designation and be duly witnessed by a Plan representative or notary public. Spousal Consent will
be valid only with respect to the Spouse who signs the Spousal Consent and only for the particular
choice made by the Participant which requires Spousal Consent. A Participant may revoke (without
Spousal Consent) a prior election, waiver or designation that required Spousal Consent at any time
before the Sweep Time associated with the Settlement Date upon which payments will begin. Spousal
Consent will not be necessary to the extent that there is a determination by the Administrative
Committee that there is no Spouse, the Spouse cannot be located or such other circumstances as may
be established by applicable law.

     1.69 “Spouse” means a person who, as of the relevant time, is married to the
Participant under the laws of the State of the Participant’s residence as evidenced by a valid
marriage certificate or other proof acceptable to the Administrative Committee.

     1.70 “Sweep Time” means the cutoff time set forth in the Administrative Services
Agreement to receive notification of an Investment Election or Exchange Election in order to
process the transaction with respect to a Trade Date or to receive a funding request for a Payment
Date.

     1.71 “Termination of Employment” means an individual ceases to be an Employee.

     1.72 “Trade Date” means the Business Day as of which an Investment Election or
Exchange Election, or some other financial transaction involving the Plan’s assets, is initiated
and confirmed, as described in the Administrative Services Agreement.

     1.73 “Trust” means the legal entity resulting from the Trust Agreement, in which some
or all of the assets of this Plan will be received, held, invested and distributed to or for the
benefit of Participants and Beneficiaries.

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     1.74 “Trust Agreement” means the agreement between the Company and the Trustee
establishing the Trust, and any amendments thereto.

     1.75 “Trust Fund” means any property, real or personal, received by and held by the
Trustee, plus all income and gains and minus all losses, expenses, withdrawals and distributions
chargeable thereto.

     1.76 “Trustee” means any corporation, individual or individuals designated in the
Trust Agreement accepting the appointment as Trustee to execute the duties of the Trustee as set
forth in the Trust Agreement.

     1.77 “Vice President” means the Corporate Executive Vice President of the Company or,
upon the resignation or removal of such Executive Vice President, any successor officer to the
Executive Vice President who performs substantially similar duties with respect to administration
of employee benefits (whether assigned a different title by the Company or not).

     1.78 “Year of Eligibility Service” means, on or after the Effective Date, the
Employee’s period of Continuous Service; provided however, if the Employee’s most recent Employment
Date or Reemployment Date occurred prior to the Effective Date, a Year of Eligibility Service will
be determined under the terms of the ECAP immediately prior to the Effective Date if it is more
favorable to the Employee.

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ARTICLE II

PARTICIPATION

     2.1 Eligibility.

          (a) Participant on Effective Date. Each person who was a Participant with an Account
in the Plan or ECAP immediately before the Effective Date will continue as a Participant as of the
Effective Date.

          (b) Other Eligible Employee. Each other Eligible Employee who is a Full Time Employee
shall become a Participant on his Employment Date or Reemployment Date as an Eligible Employee, and
each other Eligible Employee who is not a Full Time Employee shall become a Participant in the Plan
on the first day following his completion of one (1) Year of Eligibility Service if he is an
Eligible Employee on that date, or if not an Eligible Employee on such date, the date such person
becomes an Eligible Employee; provided however, if such person is represented in collective
bargaining, he will be a Participant only with respect to that portion of this Plan for which he is
an Eligible Employee.

     2.2 Impact of Change of Employment Status on Eligibility. An Employee who is not an
Eligible Employee will be eligible to become a Participant on the date he becomes an Eligible
Employee. If the status of a Participant changes from Eligible Employee to Employee, such
Participant will cease to be eligible to make, or to have, Contributions made on his behalf to the
Plan, until such time as such Participant is employed by an Employer as an Eligible Employee.

     2.3 Duration. A person will cease to be a Participant on the date that his entire
nonforfeitable Accounts have been withdrawn, or upon his death, whichever occurs first.

     2.4 Electronic Media.

          (a) The Administrative Committee may require or permit Participant (or Beneficiary, as the
context may require) elections and/or consents under this Plan to be made by means of such
electronic media as the Administrative Committee may prescribe.

          (b) A Participant’s consent to distribution, request for a withdrawal or loan, or other form
of election permitted by electronic media under this Plan or by the Administrative Committee,
together with the cashing of any check subsequently issued by this Plan (whether or not endorsed),
shall constitute written consent for purposes of this Plan (including, without limitation,
agreement to the terms of the loan and the related promissory note), the Code (including, without
limitation, Section 411(a)(11), and ERISA (including, without limitation, Section 203(e)).

14

 

          (c) Reasonable efforts will be used to process electronic media consents and elections made
under this Plan. Notwithstanding the preceding sentence or anything else in this Plan to the
contrary, neither the Company, the Administrative Committee, the Trustee nor any other person
guarantees that any consent or election will be so processed. The Administrative Committee may
adopt new or alternative rules for electronic media consents and elections as it deems appropriate
in its sole and complete discretion (including, without limitation, eliminating any electronic
media system and re-implementing a requirement of written forms, establishing the effective date
and the notice date for any type of consent or election and limiting the number of any particular
elections that may be made by a Participant during any specified period). In order to be
effective, each consent and/or election must be made on such other rules as the Administrative
Committee may prescribe.

15

 

ARTICLE III

CONTRIBUTIONS

     3.1 Before-Tax Contributions.

          (a) Any Participant who is an Eligible Employee may elect to have Before-Tax Contributions
made to the Plan by his Employer in an integral percentage of his Compensation of not less than 1
percent nor more than 50 percent. The Compensation of such Participant will be reduced by the
percentage elected under the Contribution Election in effect for such Participant; provided,
however, that no Before-Tax Contributions made with respect to a year on behalf of a Participant
may exceed the limitations set forth in Article IV. With respect to each applicable payroll
period, the Employer will contribute as soon as reasonably possible, an amount to the Trust equal
to the Participant’s Before-Tax Contributions for such payroll period and the Administrative
Committee will cause such amount to be allocated and posted to the Participant’s Before-Tax
Account.

          (b) A Participant’s election to make Before-Tax Contributions will continue in effect (with
automatic adjustment for any change in his Compensation) until changed or terminated pursuant to
procedures established by the Administrative Committee, suspended under the terms of this Plan, or
until the Participant ceases to be paid as an Eligible Employee.

          (c) In the event of a mistake by either the Employer or the Administrative Committee regarding
the amount of a Participant’s Before-Tax Contributions during a Plan Year, the Employer may permit,
in its sole discretion, contributions in excess of the 50 percent limit set forth in this Section
3.1 to be made for 1 or more payroll periods during such Plan Year, but only to the extent required
for such contributions for the Plan Year to equal what they would have been in the absence of the
mistake.

          (d) A Participant’s election to make Before-Tax Contributions may be limited pursuant to
procedures established by the Administrative Committee for purposes of complying with any tax,
deferral or other withholding obligations or elections with respect to such Participant’s
Compensation.

     3.2 Rollover Contributions.

          (a) Any Active Participant who is an Eligible Employee may elect to make a Rollover
Contribution to the Plan by delivering, or causing to be delivered, to the Plan the assets in cash
which constitute such Rollover Contribution, provided that such Rollover Contribution meets such
conditions as the Administrative Committee may establish. The Trustee will allocate and post to
the Rollover Account of such Participant the amount of such Rollover Contribution. No Rollover
Contribution by an Eligible Employee will be deemed to be a contribution of such Eligible Employee
for purposes of Article IV.

          (b) If it is later determined that an amount transferred pursuant to subsection (a), above,
did not in fact qualify as a Rollover Contribution, the balance allocated to the Employee’s
Rollover Account will immediately be: (i) segregated from all other Plan assets; (ii)

16

 

treated as a
non-qualified trust established by and for the benefit of the Employee; and (iii) distributed to
the Employee, as adjusted for earnings and losses. Any such nonqualifying rollover will be deemed
never to have been a part of the Plan.

          (c) A Participant who is entitled to receive a lump sum distribution from a qualified plan
described in Section 401(a) of the Code maintained by an Employer as the result of Termination of
Employment from a Commonly Controlled Entity may elect to have such lump sum distribution deposited
into his Rollover Account under the Plan. Such Rollover Contribution must be made in accordance
with procedures that may be specified by the Administrative Committee.

     3.3 Employer Contributions.

          (a) Amount of Employer Contribution. Subject to subsection (c) hereof, Employer
Contributions shall be paid to the Trustee for each Plan Year in such amounts (or under such
formula) as may be determined by the Board of Directors. Additional Employer Contributions shall
be made for Plan Years ending March 31, 2005 and March 31, 2006 as set forth in Appendix 3.3.

          (b) Payment of Employer Contributions. Employer Contributions for each Plan Year
shall be paid to the Trustee not later than the due date (including extensions) for filing the
Company’s Federal income tax return for that Plan Year. Employer Contributions will be paid in
cash or Company Stock, as determined by the Company; provided however, Additional Employer
Contributions will be made only in shares of Company Stock. For purposes of Article IV, the amount
of any Employer Contributions or Additional Employer Contributions that are paid in the form of
shares of Company Stock will be based upon the Fair Market Value of the shares as of the date such
shares are issued to the Trust.

          (c) Additional Provisions. Employer Contributions will not be made for any Plan Year
in amounts which cannot be allocated to Participant’s Accounts by reason of the allocation
limitations described in Article IV or in amounts which are not deductible under Section 404(a) of
the Code. Any Employer Contributions which are not deductible under Section 404(a) of the Code
shall be returned to the Employer by the Trustee (upon the direction of the Company) within one
year after the deduction is disallowed or after it is determined that the deduction is not
available. In the event that Employer Contributions are paid to the Trust by reason of a mistake of
fact, such Employer Contributions will be returned to the Employer by the Trustee (upon the
direction of the Company) within one year after the payment to the Trust.

          (d) Employer Contributions and Forfeitures. Employer Contributions (excluding
Additional Employer Contributions) and Forfeitures available for each Plan Year will be allocated
as of the Allocation Date among the Accounts of Participants so entitled under this Section 3.3 in
the ratio that the Compensation of each such Participant bears to the total Compensation of all
such Participants, subject to the allocation limitations described in Article IV. A Participant is
entitled to share in the allocation of Employer Contributions (excluding Additional Employer
Contributions) and Forfeitures for each Plan Year if in such Plan Year he is credited with at least
1000 Hours of Service and if in such Plan Year he is an

17

 

Eligible Employee on the Allocation Date.
A Participant who ceases to be an Eligible Employee is entitled to share in the allocation of
Employer Contributions (excluding Additional Employer Contributions) and available Forfeitures for
the Plan Year in which he ceases to be an Eligible Employee if he is an Employee on the Allocation
Date, but his Compensation shall include only amounts paid to him while he was an Eligible
Employee. An Employee who becomes an Eligible Employee shall become a Participant on the date he
becomes an Eligible Employee, and his Compensation shall include only amounts paid to him while he
is an Eligible Employee. A Participant who is an Eligible Employee during a Plan Year is also
entitled to share in the allocation of Employer Contributions (excluding Additional Employer Contributions) and
Forfeitures for that Plan Year if in such Plan Year he occurs his Termination of Employment, on or
over the age of 65, or for reasons of his Disability or death.

          (e) Additional Employer Contributions. Additional Employer Contributions described in
Appendix 3.3 for each Plan Year will be allocated as of the Allocation Date among the Accounts of
“Applicable Participants” so entitled under Appendix 3.3 in accordance with Appendix 3.3.

     3.4 Employer Contribution on Return from Qualified Military Leave. If an Employee: (i)
was absent from employment for qualified military service with the armed forces of the United
States on or after January 1, 2001, (ii) returns to employment with the Employer within the period
required by the Uniformed Services Employment and Reemployment Act of 1994, or any successor
statute, and (iii) was a Participant in the Plan at the commencement of the qualified military
leave, then following his return to employment with the Employer, the Employer will contribute to
the Trust an amount determined under this Section 3.4 as a contribution to the Participant’s
Employer Contribution Account as soon as administratively practicable following the Employee’s
return from qualified military leave. The amount of the contribution will equal the maximum
Employer Contribution the Employee would have been entitled to under the Plan had the Employee not
been on qualified military leave, reduced by the Employer Contribution actually made on behalf of
the Employee during the leave period; provided, however, that no contribution made with respect to
a year on behalf of a Participant may exceed the limitations under Section 415 of the Code
applicable to the year to which the missed Employer Contribution relates. The missed compensation
to be considered for purposes of calculating the contribution under this Section 3.4 will be the
Employee’s compensation as that term is defined under Section 414(u)(7) of the Code, reduced by
Compensation actually paid to the Employee during the leave period. The contribution under this
Section 3.4 will be in satisfaction of any amount otherwise required to be contributed by the
Employer pursuant to Section 414(u) of the Code or Section 3.3 of the Plan.

     3.5 Catch-Up Contributions. Notwithstanding anything in this Plan to the contrary, a
Participant who attains age 50 before the close of the relevant Plan Year will be eligible to make
additional Before-Tax Contributions as catch-up contributions in accordance with, and subject to
the limitations of, Section 414(v) of the Code, the provisions of which are hereby incorporated
herein by reference. Such catch-up contributions will not be taken into account for purposes of
the provisions of the Plan implementing the required limitations of Sections 402(g) and 415 of the
Code, and will not be subject to the requirements of Section 4.5. The Plan will not be treated

18

 

as failing to satisfy the provisions of the Plan implementing the requirements of Section 401(k)(3),
410(b) or 416 of the Code by reason of the making of such catch-up contributions.

19

 

ARTICLE IV

LIMITATION
ON CONTRIBUTIONS

     4.1 Limit on Before-Tax Contributions. The aggregate elective deferrals (as defined
in Section 402(g)(3) of the Code) made on behalf of each Participant under the Plan for any Plan
Year will not exceed:

          (a) the Contribution Dollar Limit, reduced by:

          (b) the sum of any of the following amounts that were contributed on behalf of the Participant
for the Plan Year under a plan, contract, or arrangement other than this Plan:

               (1) any employer contribution under a qualified cash or deferred arrangement (as defined in
Section 401(k) of the Code) to the extent not includable in the Participant’s gross income for the
taxable year under Section 402(e)(3) of the Code (determined without regard to Section 402(g) of
the Code);

               (2) any employer contribution to the extent not includable in the Participant’s gross income
for the taxable year under Section 402(h)(1)(B) of the Code (determined without regard to Section
402(g) of the Code);

               (3) any employer contribution to purchase an annuity contract under Section 403(b) of the Code
under a salary reduction agreement (within the meaning of Section 3121(a)(5)(D) of the Code); and

               (4) any elective employer contribution under Section 408(p)(2)(A)(i) of the Code;

provided that no contribution described in this subsection (b) will be taken into account for the
purpose of reducing the dollar limit in subsection (a), above, if the plan, contract, or
arrangement is not maintained by a Commonly Controlled Entity unless the Participant has filed a
notice with the Administrative Committee not later than March 15 of the next Plan Year regarding
such contribution.

     4.2 Actual Deferral Percentage Test.

          (a) The Plan will satisfy the actual deferral percentage test set forth in Section 401(k)(3)
of the Code and Treasury Regulation §1.401(k)-1(b), the provisions of which (and any subsequent
Internal Revenue Service guidance issued thereunder) are incorporated herein by reference
(including, at the election of the Employer, the making of qualified nonelective contributions, as
defined in Section 401(m)(4)(C) of the Code, to be treated as Before-Tax Contributions hereunder),
each as modified by subsection (b), below. In accordance with Section 401(k)(3) of the Code and
Treasury Regulation §1.401(k)-1(b), as modified by subsection (b), below, the actual deferral
percentage for HCEs for any Plan Year will not exceed the greater of:

20

 

               (1) the actual deferral percentage for NHCEs for the current Plan Year multiplied by 1.25, or

               (2) the lesser of (i) the actual deferral percentage for NHCEs for the current Plan Year
multiplied by 2 and (ii) the actual deferral percentage for NHCEs for the current Plan Year plus
2%.

          (b) In performing the actual deferral percentage test described in subsection (a), above, the
following special rules will apply:

               (1) the deferral percentages of Participants who are covered by an agreement that the
Secretary of Labor finds to be a collective bargaining agreement between employee representatives
and an Employer will be disaggregated from the deferral percentages of other Participants and the
provisions of this Section 4.2 will be applied separately with respect to each group.

               (2) Employees who have not become eligible to become Participants will be disregarded in
applying this Section 4.2.

               (3) The Administrative Committee may permissively aggregate the Plan with other plans to the
extent permitted under Treasury Regulation §1.401(k)-1.

     4.3 Maximum Contributions.

          (a) In addition to any other limitation set forth in the Plan and notwithstanding any other
provision of the Plan, in no event will the annual additions allocated to a Participant’s Account
under the Plan, together with the aggregate annual additions allocated to the Participant’s
Accounts under all other defined contribution plans required to be aggregated with the Plan under
the provisions of Section 415 of the Code, exceed the maximum amount permitted under Section 415 of
the Code, the provisions of which are incorporated herein by reference.

          (b) If the limitations imposed by this Section 4.3 apply to a Participant who is entitled to
annual additions under one or more tax-qualified plans with which the Plan is aggregated for
purposes of Section 415 of the Code, the annual additions under the Plan and such other plan or
plans will be reduced in the following order, to the extent necessary to prevent the Participant’s
benefits and/or annual additions from exceeding the limitations imposed by this Section 4.3:

               (1) All other defined contribution plans in which the Participant participated and with which
the Plan is aggregated for purposes of Section 415 of the Code, in an order based on the reverse chronology of the annual additions to the plans, beginning with the last annual addition and ending
with the first annual addition; and

               (2) the Plan.

21

 

     4.4 Imposition of Limitations. Notwithstanding anything contained in the Plan to the
contrary (except Section 3.5), the Administrative Committee may, in his sole discretion, limit the
amount of a Contributions to be allocated to a Participant during a Plan Year to the extent that
the Administrative Committee determines that the imposition of such a limit is necessary or
appropriate to ensure that the Plan will satisfy the requirements of this Article. Any such
limitation may be imposed on a Participant at any time and without advance notice to the
Participant, and regardless of whether
the Participant is covered by a collective bargaining agreement between employee
representatives and an Employer. The Administrative Committee can impose limitations beyond those
that are absolutely necessary to satisfy the requirements of this Article and may, in his sole
discretion, impose more restrictive limitations that are designed to enable the Plan to satisfy
those requirements by a reasonable margin. Notwithstanding anything contained in the Plan to the
contrary, in the event that the Contributions to be allocated to a Participant for a particular
payroll period would cause the limitations of Section 4.3 to be exceeded with respect to a
Participant, the Contributions which otherwise would be made with respect to such Participant for
such period will be first reduced or eliminated so that the limitations of Section 4.3 are not
exceeded.

     4.5 Return of Excess Annual Additions, Deferrals and Contributions.

          (a) If a Participant’s Contributions or deemed Contributions to his After-Tax Account cause
the annual additions allocated to a Participant’s Account to exceed the limit imposed by Section
4.3, such excess contributions (plus or minus any gains or losses thereon) will be returned to the
Participant in the following order: (i) Employer Contributions (other than Additional Employer
Contributions); (ii) Before-Tax Contributions; and (iii) Additional Employer Contributions.
Contributions returned pursuant to this subsection (a) will be disregarded in applying the limits
imposed by Sections 4.1 through 4.3.

          (b) After any excess annual additions (plus or minus any gains or losses thereon) with respect
to a Calendar Year have been distributed as provided in subsection (a), above, if a Participant’s
aggregate elective deferrals (as defined in Section 402(g)(3) of the Code) with respect to a
Calendar Year exceed the Contribution Dollar Limit, the following rules will apply to such excess
(the Participant’s “excess deferrals”):

               (1) Not later than the first January 31 following the close of the Calendar Year, the
Participant may allocate to the Plan all or any portion of the Participant’s excess deferrals for
the Calendar Year (provided that the amount of the excess deferrals allocated to the Plan will not
exceed the amount of the Participant’s Before-Tax Contributions to the Plan for the Calendar Year
that have not been withdrawn or distributed) and will notify the Administrative Committee of any
amount allocated to the Plan.

               (2) If excess deferrals have been made to this Plan, or any other plan maintained by a
Commonly Controlled Entity, on behalf of a Participant for a Calendar Year, the Participant will be
deemed to have allocated such excess deferrals to the Plan pursuant to subsection (b)(1), above,
and the Plan will distribute such excess deferrals pursuant to subsection (b)(3), below.

22

 

               (3) As soon as practicable, but in no event later than the first April 15th following the
close of the Calendar Year, the Plan will distribute to the Participant the amount allocated or
deemed allocated to the Plan under subsection (b)(1) or (b)(2), above (plus or minus any gains or
losses thereon). The distribution described in this subsection (b)(3) will be made notwithstanding
any other provision of the Plan.

          (c) After any excess annual additions (plus or minus any gains or losses thereon) with respect
to a Plan Year have been distributed as provided in subsection (a), above, after any excess
deferrals (plus or minus any gains or losses thereon) with respect to a Calendar

Year have been distributed as provided in subsection (b), above, and after any action pursuant
to Section 4.4 with respect to the Plan Year has been taken, if the actual deferral percentage for
the Plan Year of HCEs exceeds the limit imposed by Section 4.2, the following rules apply:

               (1) (A) The amount of the excess contributions (determined in accordance with Section
401(k)(8)(B) of the Code and subparagraph (3), below), plus or minus any gains or losses thereon
(including, in the discretion of the Administrative Committee, gains or losses attributable to the
“gap period” within the meaning of Treasury Regulation §1.401(k)-1(f)(4)), will be distributed to
HCEs, beginning with the HCE with the highest dollar amount of Before-Tax Contributions for the
Plan Year in an amount required to cause that HCE’s Before-Tax Contributions to equal the dollar
amount of the Before-Tax Contributions of the HCE with the next highest dollar amount of Before-Tax
Contributions (or in such lesser amount that is equal to the total amount of excess contributions).
The process described in the preceding sentence will continue until the reduction equals the total
excess contributions made to the Plan.

                    (B) The distribution described in subparagraph (A), above, will be made as soon as
practicable, but in no event later than the close of the Plan Year following the close of the Plan
Year with respect to which the excess contributions were made.

                    (C) The gains or losses on excess contributions will be determined by multiplying the total
annual earnings (positive or negative) for the Plan Year in the Participant’s Before-Tax Account by
the following fraction:

                         (i) The numerator of the fraction will be the amount of the excess contributions.

                         (ii) The denominator of the fraction will be the Fair Market Value of the Participant’s
Before-Tax Account as of the last day of the Plan Year (or at the end of the gap period, if elected
by the Company), reduced by any positive earnings (or increased by any negative earnings) credited
to the Participant’s Before-Tax Account for the Plan Year (and for the gap period, if elected by
the Company).

Notwithstanding the preceding provisions of this subparagraph (C), in the discretion of the
Administrative Committee, the gains and losses on excess contributions will be determined in
accordance with any method permitted under the Code and the applicable Treasury Regulations.

               (2) In accordance with Treasury Regulations, the Administrative Committee may elect, in his
sole discretion, to treat as a Contribution to a Participant’s After-

23

 

Tax Account the amount of the
excess contributions attributable to a Participant who is an HCE, except to the extent that such a
Contribution to a Participant’s After-Tax Account would cause the Plan to exceed (or to continue to
exceed) the limit imposed by Section 4.3.

               (3) The excess contributions to the Plan will be determined in accordance with Section
401(k)(8)(B) of the Code by performing the hypothetical calculation described in this subparagraph
(3). The actual deferral percentage of the HCE with the highest individual actual deferral
percentage will be reduced to the extent necessary to cause his actual deferral percentage to equal
the actual deferral percentage of the HCE with the second highest individual actual deferral
percentage (or, if it would result in a lesser reduction, to the extent necessary to cause the Plan
to satisfy the actual deferral percentage test under Section 4.2). The excess contribution to the
Plan is the amount by which the Before-Tax Contributions of the HCE
with the highest individual actual deferral percentage would have been reduced after the
hypothetical reduction in actual deferral percentage described in the preceding sentence. This
process will continue until no excess contributions remain.

The distribution described in subparagraph (1), above, will be made notwithstanding any other
provision of the Plan. The amount distributed pursuant to subparagraph (1), above, or
recharacterized pursuant to subparagraph (2), above, for a Plan Year with respect to a Participant
will be reduced by any excess deferral previously distributed from the Plan to such Participant for
the Participant’s taxable year ending with or within such Plan Year.

     4.6 Incorporation by Reference. Each incorporation by reference in this Article IV of
the provisions of Sections 401(k)(3) and 415, and the specific underlying regulations thereunder,
includes this incorporation by reference to any subsequent Internal Revenue Service guidance issued
thereunder.

24

 

ARTICLE V

ACCOUNTING FOR PARTICIPANTS’

ACCOUNTS AND FOR INVESTMENT OPTIONS

     5.1 Individual Participant Accounting.

          (a) Account Maintenance. The Administrative Committee will cause the Accounts for
each Participant to reflect transactions involving Contributions and other allocations thereto,
loans, earnings, losses, withdrawals, distributions and expenses to be allocated and posted to the
Accounts in accordance with the terms of this Plan. Financial transactions during or with respect
to an Accounting Period will be accounted for at the individual Account level by allocating and
posting each transaction to the Account as of a Settlement Date. At any point in time, the Fair
Market Value of all of a Participant’s Accounts will be equal to the sum of the aggregate of the
following amounts determined under (1), (2) and (3) with regard to each Investment Fund:

               (1) the (A) Fair Market Value of the portion of his Accounts invested in each Investment Fund
under 5.2(a) multiplied by (B) the number of full and fractional units for each such Investment
Fund posted to his Accounts;

               (2) the (A) Fair Market Value for the shares for the portion of his Accounts invested in each
Investment Fund under 5.2(b) multiplied by (B) the number of full and fractional shares for each
such Investment Fund posted to his Accounts; and

               (3) the Fair Market Value of any other assets of the Trust Fund (exclusive of assets described
in (1) and (2)) in which a portion of his Accounts is invested or held.

          (b) Deadline for Investment Directions. For any Investment Election or Exchange
Election to be processed as of a Trade Date, the Recordkeeper must receive the Investment Election
or Exchange Election by the Sweep Time and such instructions will apply only to amounts held in and
posted to the Accounts as of the Trade Date.

          (c) Suspension of Transactions. Whenever the Administrative Committee considers such
action to be in the best interest of the Participants, the Administrative Committee in its
discretion may suspend and change from time to time the Trade Date or Settlement Date or reset the
Sweep Time.

          (d) How Fees and Expenses are Charged to Accounts. Account maintenance fees will be
charged pro rata to each Account based on the ratio of the Fair Market Value of such Account to the
aggregate Fair Market Value of all Accounts (to the extent such fees are not paid by the Employer),
provided that no fee will reduce an Account balance below zero. Transaction type fees (such as
loan set-up fees, etc.) will be charged to the Accounts involved in the transaction as determined
pursuant to procedures adopted by the Administrative Committee. Fees and expenses incurred for the
management and maintenance of Investment Funds will be

25

 

charged at the Investment Fund level and
reflected in the net gain or loss of each Investment Fund to the extent not paid by the Employer.

          (e) Error Correction. The Administrative Committee may correct any errors or
omissions in the administration of the Plan by crediting or charging any Account with the amount
that would have been allocated, credited or charged to the Account had no error or omission been
made. Funds necessary for any such crediting will be provided through payment made by the
Administrative Committee, or, if the Administrative Committee was not responsible for such error or
omission, through payment by the Employer.

     5.2 Accounting for Investment Funds.

          (a) Unit Accounting. The investments in each Investment Fund designated by the
Administrative Committee as subject to unit accounting will be maintained in full and fractional
units.

          (b) Share Accounting. The investments in each Investment Fund designated by the
Administrative Committee as subject to share accounting will be maintained in full and fractional
shares.

     5.3 Accounts for Beneficiaries and Alternate Payees. A separate Account will be
established for any Beneficiary entitled to any portion of a deceased Participant’s Account, and
for an Alternate Payee as of the date and in accordance with the directions specified in the QDRO.
Such Account will be valued and accounted for in the same manner as any other Account.
Beneficiaries and Alternate Payees will be treated as Participants to the extent provided as
follows:

          (a) Exchange Election. A Beneficiary or an Alternate Payee may direct or exchange the
investment of such Account in the same manner as a Participant.

          (b) Withdrawals and Forms of Payment. Payment to a Beneficiary may be made as
provided herein. An Alternate Payee will receive payment of the amount specified in the QDRO as
soon as administratively possible, regardless of whether the Participant is an Employee or has
attained his “earliest retirement age” (as defined in Section 414(p) of the Code), unless the QDRO
specifically provides that payment be delayed, including at the election of the Alternate Payee.
Payment may be made in the same forms as are available to the Participant with respect to whom the
QDRO has been obtained, to the extent provided in the QDRO. Unless the QDRO provides otherwise,
such distribution will be made pro rata from each of the Participant’s Accounts.

          (c) Participant Loans. A Beneficiary or an Alternate Payee will not be entitled to
borrow from his Account. If a QDRO specifies that the Alternate Payee is entitled to any portion
of the Account of a Participant who has an outstanding loan balance, all outstanding loans will
continue to be held in the Participant’s Account and will not be divided between the Participant’s
and Alternate Payee’s Accounts.

26

 

          (d) Beneficiary. A Beneficiary or an Alternate Payee (to the extent provided for in
the QDRO) may designate a Beneficiary in the same manner as a Participant.

     5.4 Transition Rules. The Administrative Committee may adopt such procedures,
including imposing “transition” periods, as are necessary
to accommodate any plan mergers, Investment Fund or accounting changes or events, or similar
events as it determines are necessary for the proper administration of the Plan.

27

 

ARTICLE VI

INVESTMENT
OPTIONS AND ELECTIONS

     6.1 Investment of Contributions.

          (a) Investment Elections. Each Participant may direct the Recordkeeper, by submission
to the Recordkeeper of an Investment Election, to invest Contributions (and loan repayments) posted
to his Accounts and other amounts allocated and posted to the Participant’s Account in one or more
Investment Funds; provided, however, that Investment Elections may only be accepted for Rollover
Contributions to the extent allowed by the Recordkeeper. Notwithstanding the above, Employer
Contributions made in the form of Company Stock or Additional Employer Contributions will be
invested directly in the EMJ Stock Fund. In the absence of an Investment Election, and subject to
such rules as the Administrative Committee may make, any other Contributions (and loan repayments)
will be invested in the applicable Default Fund set forth in Appendix 1.50.

          (b) Effective Date of Investment Election; Change of Investment Election. A
Participant’s Investment Election will be effective with respect to an Investment Fund as soon as
administratively possible after the date the Recordkeeper receives the Participant’s new Investment
Election pursuant to procedures specified by the Administrative Services Agreement. A
Participant’s Investment Election will continue in effect, notwithstanding any change in his
Compensation or his Contribution Percentage, until the earliest of: (1) the effective date of a new
Investment Election; or (2) the date he ceases to be a Participant.

     6.2 Investment of Accounts.

          (a) Exchange Election. Subject to Section 6.5, notwithstanding a Participant’s
Investment Election, a Participant may direct the Recordkeeper, by submission of an Exchange
Election to the Recordkeeper, to change the investment of his Accounts between 2 or more Investment
Funds, on a pro rata basis with respect to each of the Participant’s Accounts (exclusive of the
Participant’s loans).

          (b) Effective Date of Exchange Election. An Exchange Election to change a
Participant’s investment of his Accounts in one Investment Fund to another Investment Fund will be
effective with respect to such Investment Funds as soon as administratively possible after the date
the Recordkeeper receives the Participant’s new Investment Election pursuant to procedures
specified by the Administrative Services Agreement. Notwithstanding the foregoing, an Exchange
Election made with respect to the balance of Accounts of a Participant who dies on or after the
Effective Date will not be valid if it is made after such time that is established by the
Administrative Services Agreement following the date the Recordkeeper is notified of such
Participant’s death.

          (c) Delayed Effective Date. Notwithstanding any provision of this Section 6.2 to the
contrary, if the sell portion of an Exchange Election can not be processed due to a problem in the
market, a liquidity shortage in an Investment Fund or disruption of other sell or

28

 

buy orders in
another Investment Fund, the buy portion of the Exchange Election will not be processed on a Trade
Date until the Settlement Date for the sell transaction.

     6.3 Investment Funds. The Plan’s Investment Funds are indicated in Appendix 1.50. In
addition, a Designated Officer may, by amending the Plan, from time to time:

          (a) limit or freeze investments in, or transfers from, an Investment Fund;

          (b) liquidate, consolidate or otherwise reorganize an existing Investment Fund; or

          (c) add new Investment Funds to, or delete Investment Funds from, Appendix 1.50.

     6.4 Transition Rules. Effective as of the date designated by the Designated Officer
on which any Investment Fund is addressed under Section 6.3, each Participant will have the
opportunity to make new Investment Elections and Exchange Elections to the Recordkeeper. The
Administrative Committee may take such action as the Administrative Committee deems appropriate,
including, but not limited to:

          (a) using any reasonable accounting methods in performing his duties during the period of
transition;

          (b) designating into which Investment Fund a Participant’s Accounts or Contributions will be
invested;

          (c) establishing the method for allocating net investment gains or losses and the extent, if
any, to which amounts received by and distributions paid from the Trust during this period share in
such allocation;

          (d) investing all or a portion of the Trust’s assets in a short-term, interest-bearing
Investment Fund during such transition period;

          (e) delaying any Trade Date or Settlement Date during a designated transition period or
changing any Sweep Time during such transition period; or

          (f) designating how and to what extent a Participant’s Investment Election or Exchange
Election will apply to Investment Funds.

     6.5 Restricted Investment Funds.

          (a) General. Notwithstanding anything contained herein to the contrary: (a) purchases
and sales in the EMJ Stock Fund will be restricted for Participants subject to applicable
statutory, stock exchange or Company trading restrictions; and (b) amounts invested hereunder will
be subject to such restrictions as may be imposed by (i) the issuer of securities to an Investment
Fund, or (ii) the investment manager or advisor of such Investment Fund. In addition, the
Administrative Committee reserves the right to take any and all actions he

29

 

determines to be
appropriate to minimize plan disruptions, and to protect the interest of all Plan Participants,
including disruptions caused by excessive Participant trading or for any other reason. Such
actions may include establishing redemption fees (and the terms and conditions thereof) or
establishing rules which may operate to limit or restrict Participant rights under the Plan to
effectuate transactions. The Administrative Committee may implement such actions without prior
notice to Plan Participants.

          (b) Limitation After Initial Public Offering. In addition to any diversification
right set forth in Section 6.5(c), on or after the closing of the Company’s initial public offering
on April 20, 2005 (the “IPO Closing Date”), subject to any applicable restrictions imposed by any
agreement entered into by all principal Company shareholders, including the Trust, and the
underwriter or underwriters managing the Initial Public Offering, or by any agreement entered into
between any Participant and the Company, such Participant may only make an Exchange Election to
diversify into other Investment Funds a number of shares of Company Stock held in the EMJ Stock
Fund in which the Participant’s Account is invested not exceeding the difference of (x) the number
of shares of Company Stock allocated to the Participant’s After-Tax Account, Match Account, Company
Stock Account, PAYSOP Account and Rollover Account as of the IPO Closing Date plus the number of
shares of Company Stock allocated to the Participant’s Accounts at any time thereafter, including
Additional Employer Contributions (but excluding any such shares acquired by virtue of the
Participant’s Exchange Election or Investment Election on and after the Effective Date to transfer
a portion of his Accounts into the EMJ Stock Fund), multiplied (y) by (i) 25% on or after the date
6 months after the IPO Closing Date but before the date 12 months after the IPO Closing Date, (ii)
50% on or after the date 12 months after the IPO Closing Date but before the date 18 months after
the IPO Closing Date, (iii) 75% on or after the date 18 months after the IPO Closing Date but
before the date 24 months after the IPO Closing Date, and (iv) 100% on or after the date 24 months
after the IPO Closing Date less (z) the number of shares of Company Stock, if any, previously
transferred by the Participant under any provision of this Section 6.5(b) and Section 6.5(c) at any
time on or after the IPO Closing Date. In addition, subject to any applicable restrictions imposed
by any agreement entered into by all principal Company shareholders, including the Trust, and the
underwriter or underwriters managing the Company’s initial public offering, or by any agreement
entered into between any Participant and the Company, Participants may elect to make Exchange
Elections to transfer out of the EMJ Stock Fund any shares acquired by virtue of the Participant’s
prior Exchange Election to transfer, or prior Investment Election to invest, a portion of his
Accounts into the EMJ Stock Fund.

          (c) Diversification Rights.

               (1) Diversification. A Participant who has attained age 55 and completed at least ten
years of participation in the Plan (including any years of participation in the Kilsby ESOP, the
Republic ESOP or the ECAP) shall be notified of his right to elect to
“diversify” a portion of the balances in his Employer Contribution Account composed of his
“Company Stock Account,” “PAYSOP Account,” “Rollover Account” and “Matching Account,” attributable
to shares of Company Stock acquired by the Trust (including the Trusts under the Kilsby ESOP, the
Republic ESOP or the ECAP) after December 31, 1986 and prior to April 1, 1999 (“Post-1986
Shares”), as provided in Section 401(a)(28)(B) of the Code. An election to

30

 

“diversify” must be made on the prescribed form
and filed with the Administrative Committee within the 90-day period immediately following the
Allocation Date of a Plan Year in the Election Period. For purposes of this Section 6.5(c), the
“Election Period” means the period of six consecutive Plan Years beginning with the Plan
Year in which the Participant first becomes eligible to make an election.

               (2) Amount of Diversification. For each of the first five Plan Years in the Election
Period, the Participant may elect to “diversify” an amount which does not exceed 25% of the number
of Post-1986 Shares allocated to his Employer Contribution Account composed of his Company Stock
Account, and his PAYSOP Account and Matching Account, since the inception of the Plan, the Kilsby
ESOP, the Republic ESOP or the ECAP, less all shares with respect to which amounts have previously
been “diversified” under this Section 6.5(c). In the case of the sixth Plan Year in the Election
Period, the Participant may elect to “diversify” an amount which does not exceed 50% of the number
of Post-1986 Shares allocated to his Employer Contribution Account composed of his Company Stock
Account, and his PAYSOP Account and Matching Account, since the inception of the Plan, the Kilsby
ESOP, the Republic ESOP or the ECAP, less all shares with respect to which amounts have previously
been “diversified” under this Section 6.5(c). No “diversification” election shall be permitted if
the balance of Post-1986 Shares in a Participant’s Employer Contribution Account composed of his
Company Stock Account, and his PAYSOP Account and Matching Account as of the Allocation Date of the
first Plan Year in the Election Period has a Fair Market Value of $500 or less, unless and until
the balance of Post-1986 Shares in his Employer Contribution Account composed of his Company Stock
Account, and his PAYSOP Account and Matching Account as of a subsequent Allocation Date in the
Election Period exceeds $500.

               (3) “Diversification Extension.” Notwithstanding anything contained in the Plan to
the contrary, a Participant who was previously eligible to elect to diversify Post-1986 Shares
under part (1) of this part (c) and who did not elect to so diversify the entire amount eligible
for diversification during the six year diversification period applicable to such Participant (and
who is now ineligible to make any election under part (1) of this part (c)) or who has had
additional shares contributed to his Account after the diversification period under part (1) of
this part (c), shall be permitted to elect to diversify up to 50% of the number of Post-1986 Shares
allocated to his Company Stock Account, PAYSOP Account and Matching Account since the inception of
the Plan, the Kilsby ESOP, the Republic ESOP or the ECAP less all shares with respect to which
amounts have previously been diversified under part (a) of this part (c). An election to
“diversify” must be made on the prescribed form and filed with the Administrative Committee within
the 90-day period immediately following the Allocation Date of a Plan Year.

               (4) “Diversification” will be effected (a) by a distribution of Company Stock with
respect to the portion of their Accounts invested in the EMJ Stock Fund which are
comprised of the Company Stock Accounts, PAYSOP Accounts and Matching Accounts, and (b) by
changing the investment of such Accounts in accordance with the provisions of Section 6.2 dealing
with an Exchange Election, with respect to which a “diversification” election is made.

31

 

               (5) Excluded Shares. Notwithstanding anything contained in the Plan to the contrary,
the number of shares that can be diversified under this Section (c)(2) or (c)(3) at any time on or
after the end of the 24-month period described in Section 6.5(b) (the ‘freeze date’) shall be
calculated by ignoring any shares allocated to the Participant’s Account after the freeze date.

     6.6 Risk of Loss. Neither the Plan nor the Company guarantees that the Fair Market
Value of the Investment Funds, or of any particular Investment Fund, will be equal to or greater
than the amounts invested therein. Neither the Plan nor the Company guarantees that the Fair
Market Value of the Accounts will be equal to or greater than the Contributions allocated thereto.
Except as required pursuant to ERISA, each Participant will have sole responsibility for the
investment of his Accounts and for transfers among the available Investment Funds, and no
fiduciary, or other person will have any liability for any loss or diminution in Fair Market Value
resulting from any Participants’ exercise of, or failure to exercise, such investment
responsibility. Each Member assumes all risk of any decrease in the Fair Market Value of the
Investment Funds and the Accounts. The Plan is intended to constitute a plan described in Section
404(c) of ERISA.

     6.7 Interests in the Investment Funds. No Member will have any claim, right, title,
or interest in or to any specific assets of any Investment Fund until distribution of such assets
is made to such Member. No Member will have any claim, right, title, or interest in or to the
Investment Fund, except as and to the extent expressly provided herein.

     6.8 Sole Source of Benefits. Members may only seek payment of benefits under the Plan
from the Trust, and except as otherwise required by law, the Employer assumes no responsibility or
liability therefor.

     6.9 Alternate Payees and Beneficiaries. See Section 5.3 for the treatment of
Alternate Payees and Beneficiaries as Participants for purposes of this Article VI.

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ARTICLE VII

VESTING AND FORFEITURES

     7.1 Full Vesting in Employer Contribution Account. An Active Participant will have a
100 percent nonforfeitable interest in his Employer Contribution Account and his Prior Stock Bonus
Account if:

          (a) he is credited with at least 5 years of Credited Service;

          (b) he attains age 65;

          (c) he becomes Disabled;

          (d) he dies; or

          (e) was an employee of an employer under the Kilsby ESOP or an employee of Earle M. Jorgensen
Company on May 2, 1990.

     7.2 Vesting.

          (a) General. Subject to subparagraph (b) of this Section 7.2, a Participant with an
Employer Contribution Account or Prior Stock Bonus Account who does not have a 100 percent
nonforfeitable interest in such Accounts in accordance with Section 7.1 above, will have a
nonforfeitable interest in a portion of such Accounts as determined in accordance with the
following schedule:

	 	 	 	 	 
	 	 	Nonforfeitable
	Credited Service	 	Percentage
	Less than One Year
	 	 	0	%
	One Year
	 	 	20	%
	Two Years
	 	 	40	%
	Three Years
	 	 	60	%
	Four Years
	 	 	80	%
	Five Years or More
	 	 	100	%

          (b) Vesting After Breaks in Service. If a Participant who does not have a
nonforfeitable percentage of 100% in his Employer Contribution Account or Prior Stock Bonus Account
receives a withdrawal or distribution from his Employer Contribution Account or Prior Stock Bonus
Account and the portion of the forfeitable Accounts have not yet been forfeited under Section 7.4
as of the determination date, until his nonforfeitable percentage becomes 100% vested, his
nonforfeitable portion of his Employer Contribution Account or Prior Stock Bonus Account as of a
determination date will be an amount (“X”) determined by the formula: X = P (AB + D) — D. For
purposes of applying the formula: P is the vested percentage at the

33

 

relevant time; AB is the
account balance at the determination date; and D is the amount of the withdrawal or distribution.

     7.3 Vesting in Before-Tax, After-Tax and Rollover Accounts. A Participant always has
a 100 percent nonforfeitable interest in his Before-Tax, After-Tax, Match Account, PAYSOP Account
and Rollover Accounts.

     7.4 Forfeitures. The forfeitable portion of his Employer Contribution Account or
Prior Stock Bonus Account of an Inactive Participant will be forfeited upon the occurrence of 5 or
more consecutive Breaks in Service.

     7.5 Application of Forfeitures. Forfeitures may be applied to reduce the Employer’s
obligation to pay Plan expenses and then any amounts remaining will be allocated pursuant to
Section 3.3.

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ARTICLE VIII

PARTICIPANT LOANS

     8.1 Participant Loans Permitted. An Active Participant will be eligible for a loan
with respect to all of his Accounts pursuant to this Article VIII only to the extent: (a) the
Participant will not be in default on the loan under Section 8.9 immediately after the loan is
made; and (b) in the case of a Participant who has previously defaulted on a loan (other than a
Participant whose outstanding loan balance was repaid in full in accordance with Section 8.10(c) or
who received the defaulted loan in an actual (not deemed) distribution), the defaulted loan (plus
interest accrued from the date of the default) has been repaid in full. All loan limits are
determined as of the Settlement Date as of which the loan is funded.

     8.2 Loan Funding Limits. The loan amount must be within the following limits:

          (a) Plan Maximum Limit. Subject to the legal limit described in (b) below, the
maximum a Participant may borrow, including the outstanding balance of existing Plan loans, is 50
percent of his following Accounts in which the Participant has a 100% nonforfeitable percentage;
disregarding any amount subject to a QDRO:

	 	 	 
	 

	 	Before-Tax Account
	 

	 	Before-Tax Rollover Account
	 

	 	Employer Contribution Account
	 

	 	After-Tax Rollover Account
	 

	 	Post-86 Stock Bonus Account
	 

	 	Post-86 Money Purchase Account

Notwithstanding the amount determined in the preceding sentence, in no event may the Participant
borrow more from such Accounts than the Fair Market Value of such Accounts minus the Fair Market
Value of such Accounts invested in the EMJ Stock Fund.

          (b) Legal Maximum Limit. The maximum a Participant may borrow, including the
outstanding balance of existing loans, is based upon the Fair Market Value of his nonforfeitable
interest in this Plan and all other qualified plans maintained by a Commonly Controlled Entity (the
“Vested Interest”). The maximum amount is equal to 50 percent of his Vested Interest, not
to exceed $50,000. However, the $50,000 amount is reduced by the Participant’s highest outstanding
balance of all loans from any Commonly Controlled Entity’s qualified plans during the 12-month
period ending on the day before the Trade Date on which the loan is requested.

          (c) Loan Minimum Limit. The minimum amount a Participant can borrow with respect to
each loan at any time is $1,000.

     8.3 Maximum Number of Loans. A Participant may have only one loan outstanding from
the Plan at any time.

35

 

     8.4 Source of Loan Funding. A loan to a Participant will be made solely from the
assets of his own Accounts. The available assets will be determined first by Contribution Account. The hierarchy for loan funding by type of
Contribution Account will be the order listed in Section 8.2(a). Within each Account used for
funding, amounts will be taken by Investment Fund in direct proportion to the Fair Market Value of
the Participant’s interest in each Investment Fund as of the Trade Date on which the loan is
requested, unless the Participant elects otherwise.

     8.5 Interest Rate. The interest rate charged on Participant loans will be fixed
throughout the term of the loan and will equal one plus the prime rate, as published in the Western
Edition of The Wall Street Journal, in effect on the last Business Day of the calendar quarter
immediately preceding the calendar quarter in which the loan request is received by the
Administrative Committee.

     8.6 Repayment. Substantially level amortization will be required of each loan with
payments made at least monthly. Loans may be prepaid in full at any time. The loan repayment
period will be as mutually agreed upon by the Participant and the Administrative Committee, not to
exceed five years or fifteen years if the loan is used by the Participant to acquire the
Participant’s principal residence.

     8.7 Reinvestment of Repayments. Loan payments will be invested in Investment Funds
based upon the Participant’s current Investment Election for that Account except that the current
Investment Election in effect for Before-Tax Contributions will also be applied for amounts posted
to the Participant’s Rollover Account.

     8.8 Loan Application, Note and Security. A Participant must apply to the Recordkeeper
for any loan in accordance with the procedures established by the Administrative Services
Agreement. The Recordkeeper will administer Participant loans and will specify the time frame for
approving loan applications. All loans will be evidenced by a promissory note and security
agreement and secured only by up to 50 percent of a Participant’s nonforfeitable Account balance
determined immediately after the origination of the loan. The Plan will have a lien on such
portion of a Participant’s Account to the extent of any outstanding loan balance. Each such note
will constitute an asset of each of the Accounts from which the source of the loan originated.
Likewise, each security agreement will represent a liability of each of the Accounts, but only to
the extent that the note constitutes an asset of such Account.

     8.9 Default.

          (a) A Participant will default on a loan if any of the following events occurs:

               (1) the Participant’s death;

               (2) the Participant’s failure to make the equivalent of one month’s payment of principal and
interest on the loan;

36

 

               (3) the Participant misses more than one month’s repayment but the loan’s term cannot be
extended to recover these repayments without extending its term beyond 5 years;

               (4) the Participant’s failure to perform or observe any covenant, duty, or agreement under the
promissory note evidencing the loan;

               (5) receipt by the Plan of an opinion of counsel to the effect that (A) the Plan will, or
could, lose its status as a tax-qualified Plan unless the loan is repaid or (B) the loan violates,
or might violate, any provision of ERISA;

               (6) any portion of the Participant’s Account that secures the loan becomes payable to the
Participant, his surviving Spouse or Beneficiary, an Alternate Payee, or any other person; or

               (7) the termination of the Plan.

     8.10 Foreclosure.

          (a) If a default on a loan occurs, the Participant, the Participant’s estate, or any other
person will have 90 days from the date of the default to pay the entire outstanding balance of the
loan to the Plan. Upon the death of the Participant, payment may only be made by certified check
or such other means acceptable to the Administrative Committee.

          (b) If full repayment does not happen under Section 8.10(a), the Participant’s nonforfeitable
interest in his Account securing the loan will be applied immediately, to the extent lawful, when
and to the extent the Participant’s Account is then available for withdrawal in accordance with the
applicable provisions of the Plan, to pay the entire outstanding balance of the loan (together with
accrued and unpaid interest).

          (c) Notwithstanding the foregoing, no portion of the Participant’s Before-Tax Account, or
other Accounts which are not available to be withdrawn, will be withdrawn or applied to pay an
outstanding loan before the date on which it is otherwise withdrawable under the Plan. In the
event of a default and failure to repay under Section 8.10(a), the Administrative Committee will
direct the Trustee to report the unpaid balance of the loan (less amounts withdrawn under Section
8.10(b)) as a taxable distribution. To the extent that the Participant’s nonforfeitable interest
in his Account securing the loan has not been applied under Section 8.10(b) to pay the entire
outstanding balance of the loan (together with accrued and unpaid interest), (i) the loan may be
repaid, (ii) the loan will be considered outstanding for purposes of Section 8.3 and (iii) any
repayment will be allocated and posted to the Participant’s After-Tax Account (other than for
purposes of Article IV).

          (d) Any failure by the Administrative Committee to enforce the Plan’s rights with respect to a
default on a loan will not constitute a waiver of such rights either with respect to that default
or any other default.

     8.11 Spousal Consent. Spousal Consent will not be required for any loan.

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     8.12 Special Rules Concerning Loan Repayments While on Qualified Military Leave.
Notwithstanding anything contained herein to the contrary, if an Employee fails to make one or more
loan repayments while he is on a qualified military leave of absence (as defined in accordance with
Section 414(u)(5) of the Code), no loan will be deemed to be in
default solely as a result of such failure. As of the end of the qualified military leave of
absence, the term of any outstanding loan will be extended by the period of the qualified military
leave of absence and the outstanding loan balance will be reamortized to reflect interest accrued
during such period. If such an extension would, after reamortizing such loan to reflect loan
repayments made and interest accrued during such qualified military leave of absence, result in
smaller monthly loan repayments than under the terms of the original loan, then the loan term will
be extended but only for such time to ensure that monthly loan repayments following the qualified
military leave of absence are at least equal to monthly loan repayments under the terms of the
original loan.

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ARTICLE IX

WITHDRAWALS

     9.1 Withdrawals from After-Tax Account. By applying to the Recordkeeper in the form
and manner prescribed by the Administrative Services Agreement, an Active Participant may elect to
withdraw any amounts contributed to his After-Tax Account up to the entire Fair Market Value of his
After-Tax Account. The withdrawal will be taken first from any amounts contributed to his
After-Tax Account made prior to 1987. When pre-1987 contribution amounts are exhausted, such
withdrawal will be taken from the balance of the After-Tax Account with a portion of each
withdrawal representing a return of amounts contributed to his After-Tax Account in an amount equal
to the product of (a) the total withdrawal multiplied by (b) a fraction, the numerator of which is
the Participant’s total contributions remaining in the After-Tax Account, and Rollover
Contributions allocated to the After-Tax Rollover Account, prior to the withdrawal and the
denominator of which is the Fair Market Value of the balance of the After-Tax Account and After-Tax
Rollover Account.

     9.2 Withdrawals from Rollover Account. By applying to the Recordkeeper in the form
and manner prescribed by the Administrative Services Agreement, an Active Participant may elect to
withdraw any portion, up to the entire Fair Market Value of his Rollover Account. The withdrawal
will be taken pursuant to the rules set forth in Section 9.1.

     9.3 Withdrawals from Before-Tax Account for Hardship.

          (a) Subject to the provisions of this Section 9.3, an Active Participant may apply to the
Recordkeeper in the form and manner prescribed by the Administrative Services Agreement, for a
withdrawal from his Before-Tax Account excluding any earnings posted to his Before-Tax Account
after December 31, 1988; provided that he has first withdrawn the total Fair Market Value of his
After-Tax Account and the total Fair Market Value of his Rollover Account.

          (b) A withdrawal under this Section 9.3 will be permitted only if the Administrative Committee
determines that such withdrawal is (1) on account of a Participant’s “Deemed Financial
Need” and (2) “Deemed Necessary” to satisfy the financial need.

          A “Deemed Financial Need” will be limited to financial commitments relating to:

               (1) costs directly related to the purchase or construction (excluding mortgage payments or
balloon payments) of a Participant’s principal residence;

               (2) the payment of expenses for medical care described in Section 213(d) of the Code
previously incurred by the Participant, the Participant’s Spouse, or any dependents of the
Participant (as defined in Section 152 of the Code) or necessary for those persons to obtain
medical care described in Section 213(d) of the Code;

               (3) payment of tuition and related educational fees and room and board expenses for the next
12 months of post-secondary education for the Participant, his Spouse, children or dependents (as
defined in Section 152 of the Code);

39

 

               (4) necessary payments to prevent the eviction of the Participant from his principal residence
or the foreclosure on the mortgage of the Participant’s principal residence; or

               (5) the payment of funeral or burial expenses for the Participant’s Spouse or any dependents
of the Participant (as defined in Section 152 of the Code).

          A withdrawal is “Deemed Necessary” to satisfy the financial need only if all of these
conditions are met:

               (1) the withdrawal may not exceed the dollar amount needed to satisfy the Participant’s
documented financial hardship, plus an amount necessary to pay federal, state, or local income
taxes or penalties reasonably anticipated to result from such withdrawal;

               (2) the Participant must have obtained all distributions, other than financial hardship
distributions, and all nontaxable loans under all plans maintained by any Commonly Controlled
Entity; and

               (3) the Participant will be suspended from making Before-Tax Contributions (or similar
contributions under any other qualified or nonqualified plan of deferred compensation maintained by
a Commonly Controlled Entity) for at least 6 months from the date the withdrawal is received.

     9.4 Withdrawals On or After Age 591/2. By applying to the Recordkeeper in the form and
manner prescribed by the Administrative Services Agreement, an Active Participant who has attained
the age of 591/2, may elect to withdraw any portion, up to the entire nonforfeitable, Fair Market
Value of his Accounts.

     9.5 Total Withdrawals. By applying to the Recordkeeper in the form and manner
prescribed by the Administrative Services Agreement, an Inactive Participant may make a total
withdrawal from all Accounts of the entire nonforfeitable portion of those Accounts.

     9.6 Withdrawal Processing Rules.

          (a) Minimum Amount. Except for Section 9.5, there is no minimum amount for any type
of withdrawal.

          (b) Permitted Frequency. There is no maximum number of withdrawals permitted in any
Plan Year.

          (c) Application by Participant. A Participant must submit a withdrawal request to the
Recordkeeper in accordance with procedures established by the Administrative Services Agreement.

          (d) Approval by Administrative Committee. The Recordkeeper is responsible for
determining that a withdrawal request conforms to the requirements described in this Section 9.6.

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          (e) Time of Processing. Except as otherwise provided herein, the Recordkeeper will
process all withdrawal requests which it receives by the Sweep Time that relates to the Payment
Date, based on the Fair Market Value of the fund available on the Settlement Date. The
Recordkeeper will then make payment to the Participant as soon thereafter as is administratively
possible.

          (f) Medium and Form of Payment. The medium of payment for withdrawals is all cash;
provided however, a withdrawal may be paid, as directed by the Participant, all in kind to the
extent the withdrawal is funded from the EMJ Stock Fund. The form of payment for all withdrawals
will be a single installment.

          (g) Investment Fund Sources. Within each Account used for funding a withdrawal,
amounts will be taken by Investment Fund in direct proportion to the Fair Market Value of the
Participant’s interest in each Investment Fund (which excludes the Participant’s loans) as of the
Settlement Date on which the withdrawal is funded.

          (h) Direct Rollover. With respect to any cash payment hereunder which constitutes an
Eligible Rollover Distribution, a Distributee may direct the Recordkeeper to have such payment paid
to an Eligible Retirement Plan.

          (i) Outstanding Loan. Notwithstanding any other provision of this Article IX, the
portion of a Participant’s Account that secures a loan to such Participant under Article VIII may
not be taken as a withdrawal.

          (j) Spousal Consent. Spousal Consent will not be required for any withdrawal.

          (k) Required Withdrawals. Notwithstanding any provision of the Plan to the contrary,
the Payment Date of the Accounts of an Active Participant will be paid in accordance with the
provisions of Article X of the Plan.

     9.7 Alternate Payees and Beneficiaries. See Section 5.3 for the application of the
provisions of this Article IX to Alternate Payees and Beneficiaries. In the event of a
Participant’s death, see Article XII for the rules regarding the timing and form of distributions
following such Participant’s death.

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ARTICLE X

ADDITIONAL PROVISIONS

FOR AN INACTIVE PARTICIPANT

     10.1 Request for Withdrawal of Benefits.

          (a) Request for Withdrawal. Subject to the other requirements of this Article, an
Inactive Participant may elect to have all of his nonforfeitable balance of his Accounts paid to
him beginning upon any Payment Date following his Termination of Employment (and prior to a
Reemployment Date) in a form of payment allowed hereunder.

          (b) Failure to Request Withdrawal. If an Inactive Participant fails to submit a
withdrawal request to the Recordkeeper in accordance with procedures established by the
Administrative Services Agreement by the Required Beginning Date described in Article XII, each
minimum payment required by Article XII will be valued as of the Valuation Date which immediately
precedes such latest date of withdrawal (the “Default Valuation Date”) and such withdrawal will be
issued to his last known address. If the payment is returned to the Trust, each minimum payment
required by Article XII determined on the Default Valuation Date will be treated as a forfeiture.
If the Participant subsequently files a claim, the amount forfeited (unadjusted for gains and
losses) will be reinstated to his Accounts and distributed as soon as administratively possible,
and such payment will be accounted for by charging it against the Forfeitures or, to the extent the
Forfeitures are insufficient, by a contribution from the Employer of the affected Inactive
Participant.

     10.2 Deadline for Withdrawal.

          (a) Required Commencement at Retirement. Except as provided in Section 10.2(b), a
Participant must make a request for payment to the Recordkeeper before payment must commence under
this Section 10.2(a). In addition to any other Plan requirements and unless the Inactive
Participant elects otherwise, or cannot be located, but subject to the preceding sentence, the
Payment Date of an Inactive Participant’s nonforfeitable balance of his Accounts will be not later
than 60 days after the latest of the close of the Plan Year in which: (i) the Participant attains
the earlier of age 65 or his Normal Retirement Date; (ii) occurs the tenth anniversary of the Plan
Year in which the Inactive Participant commenced participation in the Plan; or (iii) the
Participant had a Termination of Employment. However, if the amount of the payment or the location
of the Inactive Participant (after a reasonable search) cannot be ascertained by that deadline,
payment will be made no later than 60 days after the earliest date on which such amount or location
is ascertained.

          (b) Minimum Required Distributions. In any case, the Payment Date of the balance of
his Accounts of a Participant (i) who is not an Employee, or (ii) who is an Employee and who is a
5-percent owner (as defined in Section 416 of the Code), will not be later than April 1 following
the calendar year in which the Participant attains age 70-1/2 (with required distributions to be
made by each December 31 thereafter).

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     10.3 Payment Form and Medium.

          (a) Form. An Inactive Participant’s nonforfeitable Accrued Benefit may be paid in the
form of a single sum. Within each Account used for funding a withdrawal, amounts will be taken by
Investment Fund in direct proportion to the Fair Market Value of the Participant’s interest in each
Investment Fund at the Settlement Date for which the distribution is funded, unless the Participant
elects a withdrawal from specific Investment Fund(s).

          (b) Medium. Payments will be made in cash; alternatively, to the extent the
withdrawal is funded from the EMJ Stock Fund, the Inactive Participant can elect to receive payment
in whole shares of Company Stock or a combination of whole shares and cash.

     10.4 Small Amounts Paid Immediately.

          (a) If the Fair Market Value of an Inactive Participant’s nonforfeitable Accounts is $1,000 or
less at any time, including after withdrawals, the Inactive Participant’s balance of his Accounts
will be paid by the Recordkeeper as a single sum as soon as administratively possible, pursuant to
such procedures as may be established by the Administrative Services Agreement.

          (b) Except as otherwise provided in Section 10.2, a Participant’s Accounts will be distributed
following his Termination of Employment, but only at the time and in the manner described in this
Article X. If the Fair Market Value of a Participant’s Accounts exceeds $1,000, no portion of his
Accounts may be distributed to him without his written consent; see Subsection 10.2 if consent is
not provided.

     10.5 Continued Payment of Amounts in Payment Status on Effective Date. Any person who
became an Inactive Participant on the Effective Date only because he has Accounts and who had
commenced to receive payments prior to the Effective Date will continue to receive such payments in
the same form and payment schedule under this Plan.

     10.6 Direct Rollover. With respect to any cash payment hereunder which constitutes an
Eligible Rollover Distribution, a Distributee may direct the Administrative Committee to have such
payment paid to an Eligible Retirement Plan.

     10.7 Delay. Notwithstanding any other provision of the Plan, a payment will not be
considered to be made after the applicable Payment Date merely because actual payment is reasonably
delayed for the calculation and/or distribution of the benefit amount, or to ascertain the location
of the payee, if all payments due are actually made.

     10.8 Alternate Payees and Beneficiaries. See Section 5.3 for the application of the
provisions of this Article X to Alternate Payees and Beneficiaries. In the event of a
Participant’s death, see Article XII for the rules regarding the timing and form of distributions
following such Participant’s death.

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ARTICLE XI

DISTRIBUTION OF ACCRUED BENEFITS ON DEATH

     11.1 Payment to Beneficiary. In the case of a Participant’s death, distribution of
the Participant’s nonforfeitable Accounts will be made to the Beneficiaries as soon as reasonably
possible in accordance with procedures established by the Administrative Services Agreement.

     11.2 Beneficiary Designation.

          (a) Prior Designation. On and after the Effective Date and until October 1, 2005, the
Participant’s Beneficiary designation under this Plan in effect immediately prior to the Effective
Date will remain effective for the Employer’s Contribution Account and for all other Accounts which
existed under this Plan prior to the Effective Date. On and after the Effective Date and until
October 1, 2005, the Participant’s Beneficiary designation under the ECAP in effect immediately
prior to the Effective Date will remain in effect for all Accounts under the ECAP prior to the
Effective Date. On and after October 1, 2005, only a Beneficiary designation received by the
Recordkeeper will be effective.

          (b) Manner of Designation. Each Participant may designate the Beneficiary who is to
receive the Participant’s remaining Plan interest at his death. The Participant may change his
designation of Beneficiary by filing a new designation with the Administrative Committee.
Notwithstanding any designation to the contrary, the Participant’s Beneficiary will be the
Participant’s surviving Spouse, unless such designation includes Spousal Consent. In the absence
of Spousal Consent, a Participant will be deemed to have designated his surviving Spouse as his
Beneficiary unless and to the extent that such designation is inconsistent with a QDRO. If the
Participant dies leaving no Spouse and either (1) the Participant failed to file a valid
Beneficiary designation, or (2) all persons designated as Beneficiary have predeceased the
Participant, the Administrative Committee will have the Trustee distribute such Participant’s
balance of his Accounts in a single sum to his estate by December 31 of the year in which the fifth
anniversary of the Participant’s death occurs.

          (c) Revocation. Subject to the provisions of this Section, a Participant may
designate a Beneficiary under the Plan at any time by making the designation to the Recordkeeper in
the form and manner and at the time determined by the Administrative Services Agreement. No such
designation will be effective until and unless it is received by the Recordkeeper.

          (d) Spouse as Beneficiary. Subject to the provisions of this Section, a Participant
may revoke a prior designation of a Beneficiary at any time by making the revocation in the form
and manner and at the time determined by the Administrative Services Agreement. No such revocation
will be effective until and unless it is received by the Recordkeeper.

          (e) QDRO. Subject to the provisions of this Section, if a Participant designates his
Spouse as his Beneficiary, except to the extent required by applicable law, that designation will
not be revoked or otherwise altered or affected by any:

44

 

               (1) change in the marital status of the Participant and such Spouse,

               (2) agreement between the Participant and such Spouse.

          (f) Death. If a Participant designates his Spouse as his Beneficiary, and the
Administrative Committee receives a QDRO with respect to the marriage, separation or divorce of the
Participant and such Spouse, such Spouse will cease to be the Participant’s Beneficiary unless and
until the Participant again designates his Spouse as his Beneficiary in accordance with the
provisions of this Section, except to the extent otherwise provided in the QDRO.

          (g) A Participant’s Beneficiary may not be changed following the Participant’s death,
including, but not limited to, by a disclaimer otherwise valid under applicable law.

     11.3 Direct Rollover. With respect to any cash payment hereunder which constitutes an
Eligible Rollover Distribution, a Distributee may direct the Recordkeeper to have such payment paid
to an Eligible Retirement Plan.

     11.4 Alternate Payees and Beneficiaries. See Section 5.3 for the application of the
provisions of this Article XI to Alternate Payees and Beneficiaries. Notwithstanding anything
herein to the contrary, the death of a Beneficiary will not extend the time period described in
Section 11.1 with respect to the Beneficiary of such Beneficiary, if any.

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ARTICLE XII

MINIMUM DISTRIBUTION REQUIREMENTS

     12.1 General Rules.

          (a) Precedence. The requirements of this Article XII will take precedence over any
inconsistent provisions of the Plan.

          (b) Requirements of Treasury Regulations Incorporated. All distributions required
under this Article XII will be determined and made in accordance with the Treasury regulations
under Section 401(a)(9) of the Code.

          (c) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
Section 12.5, distributions may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the
provisions of the plan that relate to Section 242(b)(2) of TEFRA.

     12.2 Time and Manner of Distribution.

          (a) Required Beginning Date. The Participant’s entire interest will be distributed, or
begin to be distributed, to the Participant no later than the Participant’s required beginning
date.

          (b) Death of Participant Before Distributions Begin. If the Participant dies before
distributions begin, the Participant’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

               (1) If the Participant’s surviving Spouse is the Participant’s sole designated Beneficiary,
then distributions to the surviving Spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died, or by December 31 of the
calendar year in which the Participant would have attained age 70 1/2, if later.

               (2) If the Participant’s surviving Spouse is not the Participant’s sole designated
Beneficiary, the Participant’s entire interest will be distributed to the designated Beneficiary by
December 31 of the calendar year containing the fifth anniversary of the Participant’s death. If
the Participant’s surviving Spouse is the Participant’s sole designated Beneficiary and the
surviving Spouse dies after the Participant but before distributions to either the Participant or
the surviving Spouse begin, this provision will apply as if the surviving Spouse were the
Participant.

               (3) If there is no designated Beneficiary as of September 30 of the year following the year of
the Participant’s death, the Participant’s entire interest will be distributed by December 31 of
the calendar year containing the fifth anniversary of the Participant’s death.

46

 

               (4) If the Participant’s surviving Spouse is the Participant’s sole designated Beneficiary and
the surviving Spouse dies after the Participant but before
distributions to the surviving Spouse begin, this Section 12.2(b), other than Section
12.2(b)(1), will apply as if the surviving Spouse were the Participant.

     For purposes of this Section 12.2(b) and Section 12.4 below, unless Section 12.2(b)(4)
applies, distributions are considered to begin on the Participant’s required beginning date. If
Section 12.2(b)(4) applies, distributions are considered to begin on the date distributions are
required to begin to the surviving Spouse under Section 12.2(b)(1). If distributions under an
annuity purchased from an insurance company irrevocably commence to the Participant before the
Participant’s required beginning date, or to the Participant’s surviving Spouse before the date
distributions are required to begin to the surviving Spouse under Section 12.2(b)(1), the date
distributions are considered to begin is the date distributions actually commence.

          (c) Forms of Distribution. Unless the Participant’s interest is distributed in the
form of an annuity purchased from an insurance company or in a single sum on or before the required
beginning date, as of the first distribution calendar year distributions will be made in accordance
with Sections 12.3 and 12.4. If the Participant’s interest is distributed in the form of an
annuity purchased from an insurance company, distributions thereunder will be made in accordance
with the requirements of Section 401(a)(9) of the Code and the Treasury regulations.

     12.3 Required Minimum Distributions During Participant’s Lifetime.

          (a) Amount of Required Minimum Distribution For Each Distribution Calendar Year.
During the Participant’s lifetime, the minimum amount that will be distributed for each
distribution calendar year is the lesser of:

               (1) the quotient obtained by dividing the Participant’s account balance by the distribution
period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury
regulations, using the Participant’s age as of the Participant’s birthday in the distribution
calendar year; or

               (2) if the Participant’s sole designated Beneficiary for the distribution calendar year is the
Participant’s Spouse, the quotient obtained by dividing the Participant’s account balance by the
number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury
regulations, using the Participant’s and Spouse’s attained ages as of the Participant’s and
Spouse’s birthdays in the distribution calendar year.

          (b) Lifetime Required Minimum Distributions Continue Through Year of Participant’s
Death. Required minimum distributions will be determined under this Section 12.3 beginning with
the first distribution calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

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     12.4 Required Minimum Distributions After Participant’s Death.

          (a) Death On or After Date Distributions Begin.

               (1) Participant Survived by Designated Beneficiary. If the Participant dies on or
after the date distributions begin and there is a designated Beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s account balance by
the longer of the remaining life expectancy of the Participant or the remaining life expectancy of
the Participant’s designated Beneficiary, determined as follows:

                    (A) The Participant’s remaining life expectancy is calculated using the age of the Participant
in the year of death, reduced by one for each subsequent year.

                    (B) If the Participant’s surviving Spouse is the Participant’s sole designated Beneficiary,
the remaining life expectancy of the surviving Spouse is calculated for each distribution calendar
year after the year of the Participant’s death using the surviving Spouse’s age as of the Spouse’s
birthday in that year. For distribution calendar years after the year of the surviving Spouse’s
death, the remaining life expectancy of the surviving Spouse is calculated using the age of the
surviving Spouse as of the Spouse’s birthday in the calendar year of the Spouse’s death, reduced by
one for each subsequent calendar year.

                    (C) If the Participant’s surviving Spouse is not the Participant’s sole designated
Beneficiary, the designated Beneficiary’s remaining life expectancy is calculated using the age of
the Beneficiary in the year following the year of the Participant’s death, reduced by one for each
subsequent year.

               (2) No Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is no designated Beneficiary as of September 30 of the year after the
year of the Participant’s death, the minimum amount that will be distributed for each distribution
calendar year after the year of the Participant’s death is the quotient obtained by dividing the
Participant’s account balance by the Participant’s remaining life expectancy calculated using the
age of the Participant in the year of death, reduced by one for each subsequent year.

          (b) Death Before Date Distributions Begin.

               (1) Participant Survived by Designated Beneficiary. To the extent Section 12.2(b)(2)
does not contain the ‘five-year rule,’ if the Participant dies before the date distributions begin
and there is a designated Beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the quotient obtained by
dividing the Participant’s account balance by the remaining life expectancy of the Participant’s
designated Beneficiary, determined as provided in Section 12.4(a).

               (2) No Designated Beneficiary. If the Participant dies before the date distributions
begin and there is no designated Beneficiary as of September 30 of the year following the year of
the Participant’s death, distribution of the Participant’s entire interest will

48

 

be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

               (3) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
Begin. If the Participant dies before the date distributions begin, the Participant’s
surviving Spouse is the Participant’s sole designated Beneficiary, and the surviving Spouse dies
before distributions are required to begin to the surviving Spouse under Section 12.2(b)(1), this
Section 12.4(b) will apply as if the surviving Spouse were the Participant.

     12.5 Definitions.

          (a) Designated Beneficiary. The individual who is designated as the Beneficiary under
Section 11.2 and is the designated Beneficiary under Section 401(a)(9) of the Code and Section
1.401(a)(9)-1, Q&A-4, of the Treasury Regulations.

          (b) Distribution Calendar Year. A calendar year for which a minimum distribution is
required. For distributions beginning before the Participant’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year which contains the
Participant’s required beginning date. For distributions beginning after the Participant’s death,
the first distribution calendar year is the calendar year in which distributions are required to
begin under Section 12.2(b). The required minimum distribution for the Participant’s first
distribution calendar year will be made on or before the Participant’s required beginning date.
The required minimum distribution for other distribution calendar years, including the required
minimum distribution for the distribution calendar year in which the Participant’s required
beginning date occurs, will be made on or before December 31 of that distribution calendar year.

          (c) Life Expectancy. Life expectancy as computed by use of the Single Life Table in
Section 1.401(a)(9)-9 of the Treasury Regulations.

          (d) Participant’s Account Balance. The account balance as of the last valuation date
in the calendar year immediately preceding the distribution calendar year (valuation calendar year)
increased by the amount of any Contributions made and allocated or forfeitures allocated to the
Account balance as of dates in the valuation calendar year after the valuation date and decreased
by distributions made in the valuation calendar year after the valuation date. The Account balance
for the valuation calendar year includes any amounts rolled over or transferred to the Plan either
in the valuation calendar year or in the distribution calendar year if distributed or transferred
in the valuation calendar year.

          (e) Required Beginning Date. The date specified in Section 10.2 of this Plan.

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ARTICLE XIII

PLAN ADMINISTRATION AND COMPANY ACTIONS

     13.1 General.

          (a) Establishment of Authority. The Company, through the authority vested in its
Board, hereby establishes:

               (1) the Administrative Committee and enables the Administrative Committee to have the
Authority or Discretion to act, to the extent provided in the Plan or Trust, on behalf of the Plan
or Trust, but not on behalf of the Company; and

               (2) the Investment Committee and enables the Investment Committee to have the Authority or
Discretion to act, to the extent provided in the Plan or Trust, on behalf of the Plan or Trust, but
not on behalf of the Company.

          (b) Designated Officer Acting as the Company. The Designated Officer acting as the
Company has all powers necessary, incidental or desirable to act as an Employer and all powers
necessary, incidental or desirable to carrying out the duties and rights assigned by the Plan or
Trust to the Designated Officer acting as the Company. This grant of power is nonexclusive and, by
way of illustration and not limitation, these powers will include the power to:

               (1) amend the Plan in any manner which, in the reasonable opinion of the Designated Officer
acting as the Company, does not have a material effect on cost to the Employer(s) of, or benefits
in the aggregate under, the Plan;

               (2) identify any person or entity as a Named Fiduciary, and allocate to them their duties and
responsibilities, in the manner provided herein;

               (3) determine what expenses, if any, related to the operation and administration of the Plan
or Trust and the investment of Plan or Trust assets, will be paid from Employer assets, subject to
applicable law;

               (4) establish such policies and make such delegations or designations as may be necessary or
incidental to the Designated Officer’s authority and control over the Plan or Trust acting as the
Company;

               (5) retain, monitor and terminate such service providers and advisors as it considers
appropriate to perform Employer activities with respect to the Plan or Trust and to delegate any of
its duties, as appropriate, to such service providers and advisors; to determine appropriate fees
for such service providers and advisors; and to ensure that appropriate contracts (under terms
acceptable to the Designated Officer acting as the Company) are signed and in place with such
service providers and advisors;

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               (6) consult with legal counsel, independent consulting or evaluation firms, accountants,
actuaries, or other advisors, as necessary, to perform its functions;

               (7) adopt, amend or terminate, in part or completely, a Trust document;

               (8) determine the funding policy for the Plan, including the level of contributions to be paid
by Members and whether benefits are self-funded or insured;

               (9) add a corporation or business entity as an Employer and remove such corporation or entity
as an Employer, on such terms and in such manner as the Designated Officer acting as the Company in
its discretion will determine; and

               (10) take any other actions it deems necessary, incidental or desirable to the performance of
the duties of the Designated Officer acting as the Company, including the power to delegate that
power to any persons.

          (c) Administrative Committee Acting as a Named Fiduciary.

               (1) The Administrative Committee acting as a Named Fiduciary and, subject to subparagraph (2)
hereof, has all the Authority or Discretion of a Named Fiduciary. This grant of Authority or
Discretion is exclusive, subject to the power of the Administrative Committee to allocate or
delegate such Authority or Discretion pursuant to the procedures in the Plan, and includes, but is
not limited to, Authority or Discretion to:

                    (A) to the extent provided in an Administrative Services Agreement, but only if it has been
specifically designated in such agreement as being the responsibility of the Administrative
Committee;

                    (B) construe and apply the provisions of the Plan or Trust, including a determination of who
is eligible to be a Member or is otherwise eligible for coverage under the Plan, subject only to
the terms and conditions of the Plan;

                    (C) appoint and compensate such specialists (including attorneys, actuaries, consultants and
accountants) to aid it in the administration of the Plan or Trust, and arrange for such other
services, as the Administrative Committee acting as a Named Fiduciary considers necessary,
appropriate or desirable in carrying out the provisions of the Plan or Trust;

                    (D) appoint and compensate an independent outside accountant to conduct such audits of the
financial statements of the Plan or Trust as the Administrative Committee acting as a Named
Fiduciary considers necessary, appropriate or desirable;

                    (E) execute on behalf of the Plan or Trust, Administrative Services Agreements or other
contracts which are legally enforceable and binding on the Plan or Trust, subject to ERISA;

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                    (F) formulate, adopt, issue and apply procedures and rules and change, alter or amend such
procedures and rules in accordance with law and as may be consistent with the terms of the Plan or
Trust;

                    (G) be a final appeals Fiduciary under ERISA Section 503, to make a final determination with
respect to any claim for a benefit;

                    (H) settle or compromise any litigation against the Plan or Trust or against a Fiduciary with
respect to which the Plan or Trust has an indemnity obligation; and

                    (I) take any other actions necessary, incidental or desirable to the performance of the
Authority or Discretion of the Administrative Committee.

               (2) The Administrative Committee will not be a Named Fiduciary whenever it acts as the Company
and, notwithstanding any other term or provision of the Plan, Trust or any Administrative Services
Agreement, the Administrative Committee will cease to be a Named Fiduciary with respect to any
specified portion of the Authority or Discretion, to the extent such Authority or Discretion has
been identified or allocated to another Named Fiduciary pursuant to the procedure in the Plan or
Trust.

          (d) Investment Committee Acting as a Named Fiduciary.

               (1) The Investment Committee acting as a Named Fiduciary, subject to subparagraph (2) hereof,
has all the Authority or Discretion of a Named Fiduciary as set forth in the Trust.

               (2) The Investment Committee will not be a Named Fiduciary whenever it acts as the Plan
Sponsor and, notwithstanding any other term or provision of the Plan, Trust or any Administrative
Services Agreement, the Investment Committee will cease to be a Named Fiduciary with respect to any
specified portion of Authority or Discretion, to the extent such Authority or Discretion has been
identified or allocated to another Named Fiduciary pursuant to the procedure in the Plan or Trust.

          (e) Procedures for Identification of a Named Fiduciary.

               (1) Procedure for Identification. Subject to Subsection 13.1(e)(2) below, the
Designated Officer acting as the Company may from time to time identify a person to be a Named
Fiduciary by (i) amending the Plan or Trust to specify in the Plan or Trust document (A) the name
or position of the person identified and (B) the Authority or Discretion with respect to which the
person will be a Named Fiduciary; or (ii) referencing an Administrative Services Agreement as a
means for specifying the Authority or Discretion with respect to which such person will be a Named
Fiduciary, in which case the Designated Officer acting as the Company may make such identification
under this clause (ii) by use of an Exhibit to the Plan or such other method of taking action as
the Designated Officer acting as the Company may select.

                    No person who is identified as a Named Fiduciary hereunder must consent to such designation or
identification nor will it be necessary for the Designated Officer

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acting as the Company to seek
such person’s or entity’s acquiescence. The Authority or Discretion which a Named Fiduciary
identified hereunder may have, will be several and not joint with the Administrative Committee,
Investment Committee or any other Named Fiduciary and the identification of such Named Fiduciary
will result in the Administrative Committee, Investment Committee or other Named Fiduciary no
longer being a Named Fiduciary with respect to, nor having any longer, such Authority or
Discretion. On and after the identification of a person as a Named Fiduciary, neither the
Administrative Committee, Investment Committee nor any Named Fiduciary with respect to the Plan or
Trust, will have any liability for the acts (or failure to act) of any such identified Named
Fiduciary except to the extent of its co-Fiduciary duty under ERISA.

               (2) No Identification of Employer. Notwithstanding the procedure set forth in (1)
above, the Designated Officer may not identify the Trustee, an Employer or its board of directors
as a Named Fiduciary. Nor may the Designated Officer identify any officer of an Employer or an
Employee as a Named Fiduciary, except by making them a member of the Administrative Committee or
Investment Committee.

          (f) Compensation. The members of the Administrative Committee and Investment
Committee, acting as a Named Fiduciary, will serve without compensation for their services as such.

          (g) Allocations and Delegations of Authority or Discretion.

               (1) Delegations. Subject to Subsection 13.1(g)(4), each Named Fiduciary may (i)
delegate Authority or Discretion, other than trustee responsibilities as described in Section
405(c)(3) of ERISA unless the delegation is to an investment manager as defined in ERISA Section
3(38), to persons it designates, and (ii) make a change of delegated responsibilities. Each such
delegation will either (i) if it relates to an individual employed by an Employer, specify the
delegated person by name or by office and describe the Authority or Discretion delegated to such
individual, or (ii) use an Administrative Services Agreement with such person as a means for
specifying the Authority or Discretion delegated to such person. The Administrative Committee or
Investment Committee acting as a Named Fiduciary may make such delegations by use of an Exhibit to
the Plan or such other method of taking such action which the Administrative Committee or
Investment Committee acting as a Named Fiduciary may select. Any Named Fiduciary, other than the
Administrative Committee or Investment Committee acting as a Named Fiduciary, may make such
delegations only (i) in writing and (ii) after giving prior written notice of such delegation to
the Administrative Committee or Investment Committee acting as a Named Fiduciary. No person, other
than an investment manager (as defined in Section 3(38) of ERISA), to whom Authority or Discretion
has been properly delegated must consent to being a Fiduciary nor will it be necessary for the
delegating Named Fiduciary to seek such person’s acquiescence; however, where such person has not
signed a contract, the person must be given notification of the services to be performed and agree
to perform, or perform, such services. A permissible delegation of Authority or Discretion which
is not implemented in the manner set forth herein will not be void; however, whether the delegating
Named Fiduciary will have joint liability for acts of such person will be determined by applicable
law.

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               (2) Allocations. Subject to Section 13.1(g)(4), the Designated Officer acting as the
Company may allocate Authority or Discretion, other than trustee responsibilities described in
Section 405(c)(3) of ERISA, to a Named Fiduciary when it identifies such Named Fiduciary in the
manner described in Section 13.1(e). The Administrative Committee or Investment Committee acting
as a Named Fiduciary may allocate or reallocate Authority or Discretion, other than trustee
responsibilities described in Section 405(c)(3) of ERISA, among Named Fiduciaries. Each such
allocation will either (i) if it relates to an individual employed by an Employer, specify the
allocated person by name or by office and describe the Authority or Discretion allocated to such
individual, or (ii) use an Administrative Services Agreement with such person as a means for
specifying the Authority or Discretion allocated to such person. The Administrative Committee or
Investment Committee acting as a Named Fiduciary may make such allocations by use of an Exhibit to
the Plan or such other method of taking such action which the Administrative Committee or
Investment Committee acting as a Named Fiduciary may select. No person to whom Authority or
Discretion has been properly allocated must consent to
being a Fiduciary nor will it be necessary for the allocating Named Fiduciary to seek such
person’s acquiescence; however, where such person has not signed a contract, the person must be
given notification of the services to be performed and agree to perform, or perform, such services.
A permissible allocation of Authority or Discretion which is not implemented in the manner set
forth herein will not be void; however, whether the allocating Named Fiduciary will have joint
liability for acts of such person will be determined by applicable law.

               (3) Limit on Liability. The allocation and delegation of Authority or Discretion
pursuant to the terms of this Plan are intended to limit the liability of the (i) Administrative
Committee or Investment Committee acting as a Named Fiduciary, and (ii) each other Named Fiduciary,
as appropriate, in accordance with the provisions of Section 405(c) of ERISA.

               (4) No Delegation or Allocation to Employer. Notwithstanding the procedures set forth
in (1) or (2) above, a Named Fiduciary may not delegate or allocate Authority or Discretion to the
Company, an Employer, or their respective boards of directors. Nor may the Administrative
Committee or Investment Committee allocate Authority or Discretion to an officer of an Employer or
an Employee, unless it is an allocation among the members of the Administrative Committee or
Investment Committee.

          (h) Committee Bonding. The Administrative Committee or Investment Committee acting as
a Named Fiduciary will serve without bond (except as otherwise required by federal law).

          (i) Information to be Supplied by Employer. Each Employer will supply to the
Administrative Committee acting as a Named Fiduciary, within a reasonable time of its request, the
names of all Employees, their ages, their dates of hire, the names of all Employees who incur a
termination of employment during any Plan Year and the dates of such terminations, and such other
information in the Employer’s possession as the Administrative Committee acting as a Named
Fiduciary will from time to time request. The Administrative Committee acting as a Named Fiduciary
may rely conclusively on the information supplied to it by an Employer.

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          (j) Misrepresentations. The Administrative Committee acting as a Named Fiduciary may,
but will not be required to, rely upon any certificate, statement or other representation made to
it by another Named Fiduciary or by an Employee, a Member, or another individual, or personal
representative of any thereof with respect to any fact. Any such certificate, statement or other
representation will be conclusively binding upon such other Named Fiduciary, Employee, Member, or
other individual or personal representative, and on any heir or assignee of any thereof (but not
upon the Administrative Committee), and any such person will thereafter be estopped from disputing
the truth of any such certificate, statement or other representation.

          (k) Records. The regularly kept records of any Named Fiduciary, Trustee, Recordkeeper
or Employer may be relied upon conclusively by the Administrative Committee acting as a Named
Fiduciary.

          (l) Plan Expenses. All expenses of the Plan or Trust which have been approved by the
Administrative Committee or Investment Committee acting as a Named Fiduciary will be paid by the
Trust except to the extent paid by the Employer; and if paid by the Employer, such Employer may, if
authorized by the Designated Officer acting as the Company,
seek reimbursement of such expenses from the Trust and the Trust will reimburse the Employer.
If borne by the Employer(s), expenses of administering the Plan or Trust will be borne by the
Employer(s) in such proportion as the Designated Officer, acting as the Company, will determine.

          (m) Fiduciary Capacity. Any person or group of persons may serve in more than one
Fiduciary capacity with respect to the Plan or Trust. In addition, any person or group of persons
may serve both as a Fiduciary and as a Plan Sponsor, however, they must act as either a Fiduciary
or a Plan Sponsor, but not both, with respect to any matter.

          (n) Employer’s Agent. The Designated Officer acting as the Company will act as agent
for each Employer.

          (o) Notices to Members, Etc. Any notice, report or statement given, made, delivered
or transmitted to a Member or any other person entitled to or claiming benefits under the Plan will
be deemed to have been duly given, made or transmitted when sent via messenger, delivery service,
facsimile or mailed by first class mail with postage prepaid and addressed to the Member or such
person at the address last appearing on the records of the Named Fiduciary. A Member or such other
person may record any change of his address from time to time by written notice filed with the
Named Fiduciary.

          (p) Plan Administrator. The term “Plan Administrator” will have the meaning assigned
to that term by ERISA Section 3(16)(A). The Plan Administrator is the Administrative Committee
acting as a Named Fiduciary.

          (q) Named Fiduciary Decisions Final. The decision of a Named Fiduciary in matters
within its jurisdiction will be final, binding, and conclusive upon
each Employer and the

55

 

 Trustee
and upon each Employee, Member, and every other person or party interested or concerned.

          (r) Agency. Each Fiduciary will perform (or fail to perform) its Authority or
Discretion with respect to the Plan or Trust as an independent contractor and not as an agent of
the Plan, any Employer, the Trust, the Administrative Committee or the Investment Committee. No
agency is intended to be created nor is the Administrative Committee or Investment Committee
empowered to create an agency relationship with a Fiduciary acting as a Fiduciary. Except as
provided in this Subsection 14.1(r), the Plan, Trust, the Administrative Committee, the Investment
Committee, or another Fiduciary may act through agents.

     13.2 Claims Procedure.

          (a) Definitions. For purposes of this Section 13.2, the following words or phrases in
quotes when capitalized will have the meaning set forth below:

               (1) ‘Adverse Benefit Determination’ means a denial, reduction or the termination of, or a
failure to provide or make payment (in whole or in part) with respect to a Claim for a benefit,
including any such denial, reduction, termination, or failure to provide or make payment that is
based on a determination of a Participant’s or Beneficiary’s eligibility to participate in the
Plan.

               (2) ‘Claim’ means a request for a benefit or eligibility to participate in the Plan, made by a
Claimant in accordance with the Plan’s procedures for filing Claims, as described in this Section
13.2. For this purpose, an inquiry or request for reconsideration made under the Plan’s
established administrative procedures will not constitute a Claim.

               (3) ‘Claimant’ is defined in Section 13.2(b)(2).

               (4) ‘Notice’ or ‘Notification’ means the delivery or furnishing of information to an
individual in a manner that satisfies applicable Department of Labor regulations with respect to
material required to be furnished or made available to an individual.

               (5) ‘Relevant Documents’ include documents, records or other information with respect to a
Claim that:

                    (A) were relied upon by the Claims Administrator in making the benefit determination;

                    (B) were submitted to, considered by or generated for, the Claims Administrator in the course
of making the benefit determination, without regard to whether such documents, records or other
information were relied upon by the Claims Administrator in making the benefit determination;

                    (C) demonstrate compliance with administrative processes and safeguards required in making the
benefit determination; or

56

 

                    (D) constitute a statement of policy or guidance with respect to the Plan concerning the
denied benefit for the Participant’s circumstances, without regard to whether such advice was
relied upon by the Claims Administrator in making the benefit determination.

          (b) Procedure for Filing a Claim. In order for a communication from a Claimant to
constitute a valid Claim, it must satisfy the following paragraphs (1) and (2) of this paragraph
(b).

               (1) Any Claim submitted by a Claimant must be in writing on the appropriate Claim form (or in
such other manner acceptable to the Claims Administrator) and delivered, along with any supporting
comments, documents, records and other information, to the Claims Administrator in person, or by
mail postage paid, to the address for the Claims Administrator provided in the Summary Plan
Description.

               (2) Claims and appeals of denied Claims may be pursued by a Participant or an authorized
representative of the Participant (each of whom will be referred to in this section as a
‘Claimant’). However, the Claims Administrator may establish reasonable procedures for determining
whether an individual has been authorized to act on behalf of a Participant.

          (c) Initial Claim Review. The initial Claim review will be conducted by the Claims
Administrator, with or without the presence of the Claimant, as determined by the Claims
Administrator in its discretion. The Claims Administrator will consider the applicable terms and
provisions of the Plan and amendments to the Plan, information and evidence that is presented by
the Claimant and any other information it deems relevant. In reviewing the Claim, the Claims
Administrator will also consider and be consistent with prior determinations of Claims from
other Claimants who were similarly situated and which have been processed through the Plan’s claims
and appeals procedures within the past 24 months.

          (d) Initial Benefit Determination.

               (1) The Claims Administrator will notify the Claimant of the Claims Administrator’s
determination within a reasonable period of time, but in any event (except as described in
paragraph (2) below) within 90 days after receipt of the Claim by the Claims Administrator.

               (2) The Claims Administrator may extend the period for making the benefit determination by 90
days if it determines that such an extension is necessary due to matters beyond the control of the
Plan and if it notifies the Claimant, prior to the expiration of the initial 90 day period, of
circumstances requiring the extension of time and the date by which the Claims Administrator
expects to render a decision.

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          (e) Manner and Content of Notification of Adverse Benefit Determination.

               (1) The Claims Administrator will provide a Claimant with written or electronic Notice of any
Adverse Benefit Determination, in accordance with applicable Department of Labor regulations.

               (2) The Notification will set forth in a manner calculated to be understood by the Claimant:

                    (A) The specific reason or reasons for the Adverse Benefit Determination;

                    (B) Reference to the specific provision(s) of the Plan on which the determination is based;

                    (C) Description of any additional material or information necessary for the Claimant to
perfect the Claim and an explanation of why such material or information is necessary;

                    (D) A description of the Plan’s review procedures and the time limits applicable to such
procedures, including a statement of the Claimant’s right to bring a civil action under Section
502(a) of ERISA following an Adverse Benefit Determination on review.

          (f) Procedure for Filing a Review of an Adverse Benefit Determination.

               (1) Any appeal of an Adverse Benefit Determination by a Claimant must be brought to the Claims
Administrator within 60 days after receipt of the Notice of the Adverse Benefit Determination.
Failure to appeal within such 60-day period will be deemed to be a failure to exhaust all
administrative remedies under the Plan. The appeal must be in writing utilizing the appropriate
form provided by the Claims Administrator (or in such other manner acceptable to the Claims
Administrator); provided, however, that if the Claims Administrator does not provide the
appropriate form, no particular form is required to be utilized by the Participant. The appeal must
be filed with the Claims Administrator at the address listed in the Summary Plan Description.

               (2) A Claimant will have the opportunity to submit written comments, documents, records and
other information relating to the Claim.

          (g) Review Procedures for Adverse Benefit Determinations.

               (1) The Claims Administrator will provide a review that takes into account all comments,
documents, records and other information submitted by the Claimant without regard to whether such
information was submitted or considered in the initial benefit determination.

               (2) The Claimant will be provided, upon request and free of charge, reasonable access to and
copies of all Relevant Documents.

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               (3) The review procedure may not require more than two levels of appeals of an Adverse Benefit
Determination.

          (h) Timing and Notification of Benefit Determination on Review. The Claims
Administrator will notify the Claimant within a reasonable period of time, but in any event within
60 days after the Claimant’s request for review, unless the Claims Administrator determines that
special circumstances require an extension of time for processing the review of the Adverse Benefit
Determination. If the Claims Administrator determines that an extension is required, written Notice
will be furnished to the Claimant prior to the end of the initial 60-day period indicating the
special circumstances requiring an extension of time and the date by which the Claims Administrator
expects to render the determination on review, which in any event will be within 60 days from the
end of the initial 60-day period. If such an extension is necessary due to a failure of the
Claimant to submit the information necessary to decide the Claim, the period in which the Claims
Administrator is required to make a decision will be tolled from the date on which the notification
is sent to the Claimant until the Claimant adequately responds to the request for additional
information.

          (i) Manner and Content of Notification of Benefit Determination on Review.

               (1) The Claims Administrator will provide a written or electronic Notice of the Plan’s benefit
determination on review, in accordance with applicable Department of Labor regulations.

               (2) The Notification will set forth:

                    (A) The specific reason or reasons for the Adverse Benefit Determination;

                    (B) Reference to the specific provision(s) of the Plan on which the determination is based;

                    (C) A statement that the Claimant is entitled to receive, upon request and free of charge,
reasonable access to and copies of all Relevant Documents; and

                    (D) A statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA
following an Adverse Benefit Determination on review.

          (j) Statute of Limitations. No cause of action may be brought by a Claimant who has
received an Adverse Benefit Determination later than two years following the date of such Adverse
Benefit Determination.

     13.3 Notices to Participants, Etc. Any notice, report or statement given, made,
delivered or transmitted to a Participant or any other person entitled to or claiming benefits
under the Plan will be deemed to have been duly given, made or transmitted when sent via messenger,
delivery service, facsimile or mailed by first class mail with postage prepaid and addressed to the
Participant or such person at the address last appearing on the records of the Administrative
Committee or the Named Fiduciary, whichever is applicable. A Participant or other person may

59

 

record any change of his address from time to time by following the procedures established by the
Administrative Committee.

     13.4 Notices to Claims Administrator. Any written direction, notice or other
communication from Participants or any other person entitled to or claiming benefits under the Plan
to the Claims Administrator will be deemed to have been duly given, made or transmitted either when
delivered to such location as will be specified upon the forms prescribed by the Claims
Administrator for the giving of such direction, notice or other communication or when otherwise
received by the Claims Administrator.

13.5 Committees

          (a) Composition of Administrative Committee and Investment Committee. The
Administrative Committee and Investment Committee will consist, at a minimum, of the Vice
President. The Vice President may add additional members pursuant to procedures established in its
by-laws.

          (b) By-Laws. The Administrative Committee and Investment Committee may always act by
unanimous consent and will adopt by-laws to govern its activities and may amend such by-laws from
time to time.

     13.6 Company Action. Any action to be taken under this Plan by the Company may be
taken by a Designated Officer acting as the Company (subject to the limitations of the Plan,
including without limitation, Section 13.1), or any officer designated by the board of directors of
the Company for this purpose (including any successor to any of the foregoing officers who performs
substantially similar duties but who is assigned a different title by the Company), each of which
is authorized to take action on behalf of the Company hereunder.

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ARTICLE XIV

ADOPTION AND WITHDRAWAL FROM PLAN

     14.1 Adoption by Other Employers.

          (a) With the consent of a Designated Officer, any Commonly Controlled Entity may adopt this
Plan and participate herein (for purposes of this Article XIV, a “Participating Employer”),
effective as of the date specified in such adoption, by filing with the Designated Officer a
certified copy of a resolution of its board of directors or other governing authority to that
effect, and such other instruments as the Designated Officer may require, and, if the resolution
involves a change in the Trust Agreement, the Designated Officer’s filing with the Trustee a copy
of such resolution, together with a certified copy of the consent of the Designated Officer
approving such adoption as a proposed amendment to the Trust Agreement.

          (b) The adoption resolution may contain such specific changes and variations in the terms of
the Plan or Trust Agreement that apply to such Participating Employer and its Employees as may be
acceptable to the Designated Officer and if the resolution involves a change in the Trust
Agreement, the Trustee. However, the sole, exclusive right to amend the Plan or the Trust
Agreement on behalf of the Company and Participating Employers in any other respect is reserved in
accordance with Section 13.1, and any such amendment will be binding upon the Participating
Employer; provided that no amendment without the consent of a Participating Employer may alter
specific changes and variations in the Plan or Trust Agreement terms adopted by the Participating
Employer in its adoption resolution. The adoption resolution will become, as to such Participating
Employer and its Employees, a part of this Plan and, to the extent that the adoption resolution is
filed with the Trustee and approved by the Trustee, the Trust Agreement. It will not be necessary
for the Participating Employer to sign or execute the Plan, the Trust Agreement, or any amendment
thereof. The coverage date of the Plan for any Participating Employer will be the date stated in
the adoption resolution, and from and after such effective date, such Participating Employer will
assume all the rights, obligations and liabilities of an individual Employer entity under the Plan
and the Trust Agreement. The administrative powers and control of the Company and any Designated
Officer, as provided in the Plan and the Trust Agreement, including the exclusive right to amend
the Plan and the Trust Agreement on behalf of the Company and Participating Employers, and the
administrative powers of the Company to appoint and remove the Trustee, and its successors, will
not be diminished by reason of the participation of any Participating Employer in the Plan.

     14.2 Withdrawal from the Plan. With the consent of a Designated Officer, a
Participating Employer may discontinue or revoke its participation in the Plan on at least 90 days’
notice by filing a properly executed document with the Designated Officer. Notwithstanding the
foregoing, a Participating Employer will be deemed to have terminated its participation in the Plan
when it ceases to be a Commonly Controlled Entity.

     14.3 Employee Transfers Within Participating Group. It is anticipated that an
Employee may be transferred between Participating Employers. No such transfer will be deemed
Termination of Employment.

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     14.4 Designation of Agent. Each Participating Employer will be deemed a part of the
Company; provided that, with respect to its relations with the Trustee and the Administrative
Committee in connection with the Plan, each Participating Employer will be deemed to have
irrevocably designated the Company and each Designated Officer as its agent.

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ARTICLE XV

AMENDMENT, TERMINATION AND MERGER

     15.1 Amendments.

          (a) Power to Amend. The Company may at any time and from time to time amend, suspend
or modify the Plan, in whole or in part, by written instrument duly adopted by: (i) the Board of
Directors; or (ii) any Designated Officer, if the Board of Directors has delegated to such
Designated Officer the authority to execute such amendments. Any such amendment, suspension or
modification will become effective on such date as the Board of Directors or such Designated
Officer, as the case may be, will determine, and may apply retroactively or prospectively to
Members at the time thereof, as well as to future Members; provided, however, that no amendment
will:

               (1) increase the duties or liabilities of the Trustee or the Administrative Committee without
its written consent;

               (2) have the effect of vesting in any Employer any interest in any funds, securities or other
property, subject to the terms of this Plan and the Trust Agreement;

               (3) authorize or permit at any time any part of the corpus or income of the Plan’s assets to
be used or diverted to purposes other than for the exclusive benefit of Members;

               (4) except to the extent permissible under ERISA and the Code, make it possible for any
portion of the Trust assets to revert to an Employer to be used for, or diverted to, any purpose
other than for the exclusive benefit of Members entitled to Plan benefits and to defray reasonable
expenses of administering the Plan;

               (5) permit an Employee to be paid the balance of his Before-Tax Account unless the payment
would otherwise be permitted under Section 401(k) of the Code; and

               (6) have any retroactive effect as to deprive any such person of any benefit already accrued,
except that no amendment made in order to conform the Plan as a plan described in Section 401(a) of
the Code of which amendments are permitted by the Code or are required or permitted by any other
statute relating to employees’ trusts, or any official regulations or ruling issued pursuant
thereto, will be considered prejudicial to the rights of any such person.

          (b) Restriction on Amendment. No amendment to the Plan will deprive a Participant of
his nonforfeitable rights to benefits accrued to the date of the amendment. In addition to the
foregoing, the Plan will not be amended so as to eliminate an optional form of payment of the
balance of a Participant’s Accounts attributable to employment prior to the date of the amendment,
except to the extent permissible under ERISA and the Code. The foregoing limitations do not apply
to benefit accruals occurring after the date of the amendment.

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          (c) Authority of Designated Officer. The Designated Officer, acting on behalf of the
Company, may amend, modify, change or revise the Plan or any Appendix, in whole or in part, or with
respect to all persons or a designated group of persons unless the Board of Directors has
specifically granted authority outside of this Plan to another Designated Officer to act under this
Article XV, and then only to the extent so granted; provided however (1) no such action may be
taken if it could not have been adopted under this Section by the Board of Directors; and (2) no
such action may amend Articles XIII and XV.

     15.2 Plan Termination. It is the expectation of the Company that it will continue the
Plan and the payment of Contributions hereunder indefinitely, but the continuation of the Plan and
the payment of Contributions hereunder is not assumed as a contractual obligation of the Company or
any other Employer. The Company reserves the right, at any time, to terminate the Plan, or to
reduce, suspend or discontinue its or any other Employer’s Contributions hereunder, provided,
however, that the Contributions for any Plan Year accrued or determined prior to the end of such
year will not after the end of such year be retroactively reduced, suspended or discontinued except
as may be permitted by law. Upon termination of the Plan or complete discontinuance of
Contributions hereunder (other than for the reason that the Employer has had no net profits or
accumulated net profits), each Participant’s balance of his Accounts will be 100% nonforfeitable.
Upon termination of the Plan or a complete discontinuance of Contributions, unclaimed amounts will
be applied as forfeitures and any unallocated amounts will be allocated to Participants who are
Eligible Employees as of the date of such termination or discontinuance on the basis of
Compensation for the Plan Year (or short Plan Year). Upon a partial termination of the Plan, to
the extent required by law or in the sole discretion of the Plan Administrator, the balance of his
Accounts of each affected Participant will be 100% nonforfeitable. In the event of termination of
the Plan, the Administrative Committee will direct the Trustee to distribute to each Participant
the entire amount of the balance of his Accounts as soon as administratively possible, but not
earlier than would be permitted in order to retain the Plan’s qualified status under Sections
401(a), (k) and (m) of the Code, as if all Participants who are Employees had incurred a
Termination of Employment on the Plan’s termination date. Should a Participant or a Beneficiary
not elect immediate payment of the nonforfeitable balance of his Accounts in excess of $5,000, the
Administrative Committee will direct the Trustee to continue the Plan and Trust Agreement for the
sole purpose of paying to such Participant the balance of his Accounts or death benefit,
respectively, unless in the opinion of the Administrative Committee, to make immediate single sum
payments to such Participant or Beneficiary would not adversely affect the tax qualified status of
the Plan upon termination and would not impose additional liability upon any Employer or the
Trustee.

     15.3 Plan Merger and Spinoff. The Plan will not merge or consolidate with, or
transfer any assets or liabilities to any other plan, unless each person entitled to benefits would
receive a benefit immediately after the merger, consolidation or transfer (if the Plan were then
terminated) which is equal to or greater than the benefit he would have been entitled to
immediately before the merger, consolidation or transfer (if the Plan were then terminated). The
Designated Officer will amend or take such other action as is necessary to amend the Plan in order
to satisfy the requirements applicable to any merger, consolidation or transfer of assets and
liabilities.

64

 

     15.4 Design Decisions. Decisions regarding the design of the Plan (including any
decision to amend or terminate, or to not amend or
terminate the Plan) will be made in a settlor capacity and will not be governed by the
fiduciary responsibility provisions of ERISA.

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ARTICLE XVI

SPECIAL TOP-HEAVY RULES

     16.1 Application of Article XVI. This Article XVI will apply only if the Plan is
Top-Heavy, as defined below. If, as of any Top-Heavy Determination Date, as defined below, the
Plan is Top-Heavy, the provisions of Section 16.4 will take effect as of the first day of the Plan
Year next following the Top-Heavy Determination Date and will continue to be in effect until the
first day of any subsequent Plan Year following a Top-Heavy Determination Date as of which it is
determined that the Plan is no longer Top-Heavy.

     16.2 Definitions Concerning Top-Heavy Status. In addition to the definitions set
forth in Article I, the following definitions will apply for purposes of this Article XVI, and will
be interpreted in accordance with the provisions of Section 416 of the Code:

          (a) Aggregation Group — a group of Company Plans consisting of each Company Plan in
the Required Aggregation Group and each other Company Plan selected by the Company for inclusion in
the Aggregation Group that would not, by its inclusion, prevent the group of Company Plans included
in the Aggregation Group from continuing to meet the requirements of Section 401(a)(4) and 410 of
the Code.

          (b) Annual Compensation — compensation for a calendar year within the meaning of
Treasury Regulation §1.415-2(d)(11)(ii) to the extent that such compensation does not exceed the
annual compensation limit in effect for the calendar year under Section 401(a)(17) of the Code.

          (c) Company Plan — any plan of any Commonly Controlled Entity that is, or that has
been determined by the Internal Revenue Service to be, qualified under Section 401(a) or 403(a) of
the Code.

          (d) Key Employee — any employee of any Commonly Controlled Entity who satisfies the
criteria set forth in Section 416(i)(1) of the Code.

          (e) Required Aggregation Group — one or more Company Plans comprising each Company
Plan in which a Key Employee is a participant and each Company Plan that enables any Company Plan
in which a Key Employee is a participant to meet the requirements of Section 401 (a)(4) or 410 of
the Code.

          (f) Top-Heavy — the Plan is included in an Aggregation Group under which, as of the
Top-Heavy Determination Date, the sum of the actuarial present value of the cumulative balance of
the Accounts for Key Employees under all defined benefit plans in the Aggregation Group and the
aggregate of the Accounts of Key Employees under all defined contribution plans in the Aggregation
Group exceeds 60 percent of the analogous sum determined for all employees. The determination of
whether the Plan is Top-Heavy will be made in accordance with Section 416(g)(2)(B) of the Code.

66

 

          (g) Top-Heavy Determination Date — the December 31 immediately preceding the Plan Year
for which the determination is made.

          (h) Top-Heavy Ratio — the percentage calculated in accordance with subparagraph (f),
above, and Section 416(g)(2) of the Code.

          (i) Top-Heavy Year — a Plan Year for which the Plan is Top-Heavy.

     16.3 Calculation of Top-Heavy Ratio. The Top-Heavy Ratio with respect to any Plan
Year will be determined in accordance with the following rules:

          (a) Determination of Accounts: The balance of the Accounts of any current Participant
will be calculated, as of the most recent valuation date that is within a 12-month period ending on
the Top-Heavy Determination Date, as if the Participant had voluntarily terminated employment as of
such valuation date. Such valuation date will be the same valuation date used for computing plan
costs for purposes of the minimum funding provisions of Section 412 of the Code. Unless, as of the
valuation date, the Plan provides for a nonproportional subsidy, the actuarial present value of the
balance of the Accounts will reflect a retirement income commencing at age 65 (or attained age, if
later). If, as of the valuation date, the Plan provides for a nonproportional subsidy, the benefit
will be assumed to commence at the age at which the benefit is most valuable. The present values
of the balance of the Accounts and the amounts of account balances of an employee as of the
Top-Heavy Determination Date will be increased by the distributions made with respect to the
employee under the Plan and any plan aggregated with the plan under Section 416(g)(2) of the Code
during the 1-year period ending on the Top-Heavy Determination Date. The preceding sentence will
also apply to distributions under a terminated plan which, had it not been terminated, would have
been aggregated with the plan under Section 416(g)(2)(A)(i) of the Code. In the case of a
distribution made for a reason other than Termination of Employment, death, or disability, this
provision will be applied by substituting ‘5-year period’ for ‘1-year period’. The balance of the
Accounts of any individual who has not performed services for the employer during the 1-year period
ending on the determination date will not be taken into account.

          (b) Aggregation. The Plan will be aggregated with all Company Plans included in the
Aggregation Group.

     16.4 Effect of Top-Heavy Status.

          (a) Minimum Contribution. Notwithstanding Article III, as of the last day of each
Top-Heavy Year, the Employer will make, for each Participant, (i) the contributions it otherwise
would have made under the Plan for such Top-Heavy Year, or if greater, (ii) contributions for such
Top-Heavy Year that, when added to the contributions made by the Employer for such Participant (and
any forfeitures allocated to his Accounts) for such Top-Heavy Year under all other defined
contribution plans of any Commonly Controlled Entity, aggregate three percent of his Annual
Compensation; provided that the Plan will meet the requirements of this subsection (a) without
taking into account Before-Tax Contributions or other employer contributions attributable to a
salary reduction or similar arrangement. Employer

67

 

matching contributions will be taken into
account for purposes of satisfying the minimum contribution requirements of section 416(c)(2) of
the Code and the Plan. The preceding sentence
will apply with respect to matching contributions under the Plan or, if the Plan provides that
the minimum contribution requirement will be met in another plan, such other plan. Employer
matching contributions that are used to satisfy the minimum contribution requirements will be
treated as matching contributions for purposes of the actual contribution percentage test and other
requirements of Section 401(m) of the Code.

          (b) Inapplicability to Union Employees. The preceding provisions of this Section 16.4
will not apply with respect to any employee included in a unit of employees covered by an agreement
that the Secretary of Labor finds to be a collective bargaining agreement between employee
representatives and the Employer, if there is evidence that retirement benefits were the subject of
good faith bargaining between such employee representatives and the Employer.

     16.5 Effect of Discontinuance of Top-Heavy Status. If, for any Plan Year after a
Top-Heavy Year, the Plan is no longer Top-Heavy, the provisions of Section 16.4 will not apply with
respect to such Plan Year.

     16.6 Intent of Article XVI. This Article XVI is intended to satisfy the requirements
imposed by Section 416 of the Code and will be construed in a manner that will effectuate this
intent. This Article XVI will not be construed in a manner that would impose requirements on the
Plan that are more stringent than those imposed by Section 416 of the Code.

68

 

ARTICLE XVII

MISCELLANEOUS
PROVISIONS

     17.1
Assignment and Alienation. As provided by Section 401(a)(13) of the Code and to the extent not otherwise required by law, no benefit provided by the Plan may be anticipated, assigned or alienated, except:

          (a) to create, assign or recognize a right to any benefit with respect to a Participant pursuant to a QDRO,

          (b) to use a Participant’s nonforfeitable balance of his Accounts as security for a loan from the Plan which is permitted pursuant to Section 4975 of the Code, or

          (c) to allow the enforcement of a federal tax levy made pursuant to Section 6331 of the Code, or the collection by the United States on a judgment resulting from an unpaid tax assessment.

     17.2
Protected Benefits.
All benefits which are protected by the terms of Section 411(d)(6) of the Code and Section 204(g) of ERISA, which cannot be eliminated without adversely affecting the qualified status of the Plan on and after the Effective Date, will be provided under this Plan to Participants for whom such benefits are protected. The Administrative Committee will cause such benefits to be determined and the terms and provisions of any relevant plan setting forth such protected benefits are incorporated herein by reference and made a part hereof, but only to the extent such terms and provisions are so protected. Otherwise, they will operate within the terms and provisions of this Plan, as determined by the Administrative Committee.

     17.3
Plan Does Not Affect Employment Rights. The Plan does not provide any employment rights to any Employee. The Employer expressly reserves the right to discharge an Employee at any time, with or without cause, without regard to the effect such discharge would have upon the Employee’s interest in the Plan.

     17.4
Deduction of Taxes from Amounts Payable.
 The Trustee will deduct from the amount to be distributed such amount as the Administrative Committee, in his sole discretion, deems proper to protect the Trustee and the Plan’s assets held under the Trust Agreement against liability for the payment of death, succession, inheritance, income, or other taxes, and out of money so deducted, the Trustee may discharge, as directed by the Administrative Committee, any such liability and pay the amount remaining to the Participant, the Beneficiary or the deceased Participant’s estate, as the case may be.

     17.5
Facility of Payment.
If a Member is declared an incompetent or is a minor and a conservator, guardian, or other person legally charged with his care has been appointed, any benefits to which such Member is entitled will be payable to such conservator, guardian, or other person legally charged with his care. The decision of the Administrative Committee in such matters will be final, binding, and conclusive upon the Employer and the Trustee and upon each Member, and every other person or party interested or concerned. An Employer, the Trustee and

69

 

the Administrative Committee will not be under any duty to see to the proper application of such payments.

     17.6
Source of Benefits. All benefits payable under the Plan will be paid or provided for solely from the Plan’s assets held under the Trust Agreement and the Employers assume no liability or responsibility therefor.

     17.7
Reduction for Overpayment.
The Administrative Committee will, whenever it determines that a person has received benefit payments under this Plan in excess of the amount to which the person is entitled under the terms of the Plan, make a reasonable attempt to collect such overpayment from the person. The amount of any overpayment may be set off against further amounts payable to or on account of the person who received the overpayment.

     17.8
Company Merger. In the event any successor corporation to the Company, by merger, consolidation, purchase or otherwise, will elect to adopt the Plan, such successor corporation will be substituted hereunder for the Company upon filing in writing with the Trustee its election so to do.

     17.9
Employees’ Trust.
The Plan and Trust Agreement are created for the exclusive purpose of providing benefits to the Members of the Plan and defraying reasonable expenses of administering the Plan. The Plan and Trust Agreement will be interpreted and operated in a manner consistent with their being, respectively, a Plan described in Sections 401(a) and 401(k) of the Code and Trust Agreements exempt under Section 501(a) of the Code. The Designated Officer and the Administrative Committee are authorized to the fullest extent allowed by law, to take whatever action may be required to correct any such interpretational or operational violation which would result in the Plan not being a plan described in Sections 401(a) and 401(k) of the Code and Trust Agreements exempt under Section 501(a) of the Code. At no time will the assets of the Plan be diverted from the above purpose.

     17.10
Construction.
Unless the contrary is plainly required by the context, wherever any words are used herein in the masculine gender, they will be construed as though they were also used in the feminine gender, and vice versa; wherever any words are used herein in the singular form, they will be construed as though they were also used in the plural form, and vice versa; and wherever the words “herein,” “hereof,” “hereunder,” and words of similar import are used, they will be construed to refer to the Plan in its entirety and not only to the portion of the Plan in which they appear. Any election, direction, notice or designation (or similar action) to be made by a Member hereunder will be made in such manner as is provided for by, and acceptable to, the Administrative Committee. No such election, direction, notice or designation (or similar action) will be deemed to have been given to the Administrative Committee unless it is properly completed and delivered to the Administrative Committee in accordance with the procedures established by such Administrative Committee for such purpose, and will take effect at such time as is established by the Administrative Committee, which in any event will not be earlier than is administratively possible.

     17.11
Invalidity of Certain Provisions. If any provision of this Plan will be held invalid or unenforceable, such invalidity or unenforceability will not affect any other provisions hereof

70

 

and the Plan will be construed and enforced as if such provisions, to the extent invalid or
unenforceable, had not been included.

     17.12 Headings. The headings or articles are included solely for convenience of
reference, and if there is any conflict between such headings and the text of this Plan, the text
will control.

     17.13 Governing Law. The Plan will be construed, administered and regulated in
accordance with the provisions of ERISA and, to the extent not preempted thereby, in accordance
with the laws of the State of Illinois, determined without regard to its choice of law rules.

     17.14 Notice and Information Requirements. Except as otherwise provided in this Plan
or in the Trust Agreement, the Employer will have no duty or obligation to affirmatively disclose
to any Member, nor will any Member have any right to be advised of, any material information
regarding the Employer, at any time prior to, upon or in connection with the Employer’s purchase,
or any other distribution or transfer (or decision to defer any such distribution) of any Company
Stock or any other stock held under the Plan.

     17.15 Reliance on Information Provided to Plan. Notwithstanding anything contained
herein to the contrary, if an individual is provided a statement in confirmation of any election or
information provided to the Plan by such individual hereunder, the election or information
reflected on such confirmation statement will be deemed to be accurate and may be conclusively
relied upon for all purposes hereunder unless the individual timely demonstrates to the
Administrative Committee, in the form and manner established by the Administrative Committee, that
the election or information reflected on the confirmation statement is not what the individual had
originally delivered to the Administrative Committee.

     17.16 Recognition of Power of Attorney. Notwithstanding anything in this Plan to the
contrary, the Administrative Committee may, in his discretion, refuse to recognize any agent of a
Participant who seeks to act on behalf of such Participant pursuant to a power of attorney unless
and to the extent the power of attorney conforms with guidelines adopted by the Administrative
Committee from time to time.

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     Executed this                     day of                                         , 2005.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	EARLE M. JORGENSEN COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

72

 

APPENDIX 1.50

Investment Funds

TRP Retirement Income Fund

TRP Retirement 2005 Fund

TRP Retirement 2010 Fund

TRP Retirement 2015 Fund

TRP Retirement 2020 Fund

TRP Retirement 2025 Fund

TRP Retirement 2030 Fund

TRP Retirement 2035 Fund

TRP Retirement 2040 Fund

TRP Retirement 2045 Fund

TRP Prime Reserve Fund

TRP Spectrum Income Fund

TRP GNMA Fund

TRP Balanced Fund

TRP Mid-Cap Growth Fund

TRP Equity Income Fund

TRP New Horizons Fund

TRP International Stock Fund

TRP Equity Index 500 Fund

TRP Blue Chip Growth Fund

TRP Science & Technology Fund

EMJ Stock Fund

Default Funds

Based on the year in which the Participant was born, the following applicable Investment Fund will
be the default Investment Election or Conversion Election for such participant:

	 	 	 
	In 1937 or before

	 	TRP Retirement Income Fund
	Between 1938 and 1942

	 	TRP Retirement 2005 Fund
	Between 1943 and 1947

	 	TRP Retirement 2010 Fund
	Between 1948 and 1952

	 	TRP Retirement 2015 Fund
	Between 1953 and 1957

	 	TRP Retirement 2020 Fund
	Between 1958 and 1962

	 	TRP Retirement 2025 Fund
	Between 1963 and 1967

	 	TRP Retirement 2030 Fund
	Between 1968 and 1972

	 	TRP Retirement 2035 Fund
	Between 1973 and 1977

	 	TRP Retirement 2040 Fund
	In 1978 or after

	 	TRP Retirement 2045 Fund

Appendix 1.50 — Page 1

 

 

APPENDIX 3.3

Additional Employer Contributions for Plan Years Ending in 2005 and 2006

     (a) Additional Employer Contributions. In addition to the Employer
Contributions permitted under the discretionary basis pursuant to Section 3.3(a), Additional
Employer Contributions shall be made for Plan Years ending March 31, 2005 and March 31, 2006
as set forth in this Appendix 3.3. Said Additional Employer Contributions will be made in shares of Company Stock no later than the date specified in Section 3.3(b). For the Plan
Years ending March 31, 2005 and 2006, the Company will specify which portion of the Employer
Contribution is made pursuant to Section 3.3 (to be allocated under Section 3.3(d)) or is an
Additional Employer Contribution made and allocated under this Appendix 3.3. Except for
purposes of Sections 3.3(a) and (d) and this Appendix 3.3, Additional Employer Contributions
will be considered Employer Contributions.

     (b) Overview. The Additional Employer Contributions are part of a program (the
“Program”) intended to provide certain eligible persons with either allocations
under the Plan, or direct cash payments outside the Plan, and/or Supplemental Employee Stock
Bonus Plan (the “Supplemental SBP”) credits. The benefit for any eligible person is
an amount based on 108.17% of the total number of shares of Company Stock that remain
allocated to his Company Stock Account on the Relevant Date, as those capitalized terms are
defined below. Notwithstanding the above, the Additional Employer Contributions will only be
allocated to Applicable Participants, as defined below.

     For purposes of this Appendix 3.3, the following terms shall be defined as follows:

“Applicable Participant” shall mean each Participant who meets all of the
following conditions: (i) as of the Relevant Date, his or her Company Stock Accounts
includes Company Stock, (ii) he or she has not, on or before the Relevant Date, both
terminated employment from the Company and Employer, and filed a written notice with
the Company to put the Company Stock back to the Company in accordance with the
terms of this Plan prior to the Effective Date, and (iii) he or she earned Statutory
Compensation during the period from April 1, 2004 until the Relevant Date,
inclusive, whether or not employed by the Employer on the Relevant Date.
Notwithstanding Sections 2.1 and 2.2, an Applicable Participant shall be entitled to
an allocation of Additional Employer Contributions to the extent set forth in this
Appendix 3.3.

“Relevant Date” shall mean the date on which amended Consent Order and
Release by and between United States Department of Labor, the Company, the Plan and
certain other parties is entered by the court.

Appendix 3.3 — Page 1

 

 

“Total Allocation” shall mean, for an Applicable Participant, the product of
108.17% and the total number of shares of Company Stock allocated to his Company
Stock Account on the Relevant Date (expressed as a number of shares).

     If it were not for applicable tax limitations, the Company and/or Employer would contribute to
the Plan shares of Company Stock so that each Applicable Participant would receive allocations
under the Plan of a number of shares equal to the Total Allocation. However, due to tax
limitations, the full amount of such contributions and allocations are not permitted for some of
the Applicable Participants. Accordingly, part of the contribution will be made for the Plan Year
ending March 31, 2005 and part will be contributed for the Plan Year ending March 31, 2006. To the
extent applicable tax limitations do not permit an Applicable Participant to receive an aggregate
allocation of the Additional Employer Contributions for those two Plan Years equal to the Total
Allocation, the Applicable Participant will receive, outside of the Plan, either direct cash
payments from the Company (or Employer) pursuant to a Former Employees Cash Bonus Plan or phantom
stock units under the Supplemental SBP.

     Notwithstanding the foregoing description, the actual amount of Additional Employer
Contributions to be made and allocated under this Plan are set forth in the following subsections
of this Appendix 3.3.

     (c) The number of shares of Company Stock contributed as an Additional Employer
Contribution for the Plan Year ending March 31, 2005 for an Applicable Participant
(“2005 Allocation”) shall be calculated and allocated as follows. A separate
calculation shall be performed for each Applicable Participant.

     (1) Subject to this subsection (c), the Total Allocation for the Applicable
Participant shall be tentatively allocated to that Applicable Participant for the
Plan Year. As soon as practicable after March 31, 2005, the Company shall determine
whether a contribution of the Total Allocation for the Applicable Participant would
violate Article IV of this Plan, taking into account all other contributions to the
Plan and the ECAP for the Plan Year. For this purpose, the Total Allocation shall
be valued at the Fair Market Value as of the date the Additional Employer
Contribution is issued to the Trust. Notwithstanding Article IV, to the extent that
the limit under Article IV is exceeded for any particular Applicable Participant,
the tentative allocation for that Applicable Participant shall be reduced to the
extent needed to comply with Article IV.

     (2) The Company shall then determine whether the remaining tentative
allocations under paragraph (1), together with any other Employer Contributions made
for the Plan Year, would violate Section 401(a)(4) of the Code and the regulations
thereunder (“Section 401(a)(4)”). For this purpose, the Company shall
perform a general nondiscrimination test under Section 401(a)(4); the test shall be
performed in accordance with Appendix A of this Appendix 3.3. The remaining
tentative allocation for each Applicable Participant who is an HCE shall be reduced
as necessary to comply with Section 401(a)(4).

Appendix 3.3 — Page 2

 

 

     (3) For any particular Applicable Participant, the Company shall contribute, as
an Additional Employer Contribution for the Plan Year ending March 31, 2005, that
number of shares of Company Stock equal to the tentative allocation for that
Applicable Participant, as reduced in accordance with paragraphs (1) and (2) above
(“2005 Allocation”). Said shares shall be allocated to the Company Stock
Account of that Applicable Participant.

     (4) The excess of the Total Allocation over the 2005 Allocation for an
Applicable Participant, if any, is called the “Remaining Allocation” for the
Applicable Participant.

     (d) Any Applicable Participant who is not an Employee on April 1, 2005, shall not be
entitled to any Additional Employer Contribution for any Plan Year ending after March 31,
2005, or any credits under the Supplemental SBP. Instead, such Applicable Participant shall
receive cash payments (pursuant to the Former Employees Cash Bonus Plan, and not this Plan)
to reflect the Remaining Allocation, if any, in an amount set forth in said Bonus Plan.

     (e) The number of shares of Company Stock contributed as an Additional Employer
Contribution for the Plan Year ending March 31, 2006 for an Applicable Participant
(“2006 Allocation”) shall be calculated and allocated as follows. A separate
calculation shall be performed for each Applicable Participant.

     (1) Subject to this subsection (e), the Remaining Allocation for the Applicable
Participant shall be tentatively allocated to that Applicable Participant for the
Plan Year. No contribution or allocation shall be made for Applicable Participants
paid pursuant to subsection (d) above.

     (2) As soon as practicable after March 31, 2006, the Company shall apply the
limits of Article IV and Appendix A of this Appendix 3.3 for said Plan Year in
accordance with subsections (c)(1) and (2) above. Notwithstanding Article IV, to the
extent that the limit under Article IV is exceeded for any particular Applicable
Participant, the tentative allocation for that Applicable Participant shall be
reduced to the extent needed to comply with Article IV. To the extent necessary, the
remaining tentative allocation for that Plan Year of each Applicable Participant who
is an HCE shall be further reduced as necessary to comply with Section 401(a)(4).

     (3) For any particular Applicable Participant (other than those paid pursuant
to subsection (d) above), the Company shall contribute, as an Additional Employer
Contribution for the Plan Year ending March 31, 2006, that number of shares of
Company Stock equal to the tentative allocation for that Applicable Participant, as
reduced in accordance with paragraph (2) above (“2006 Allocation”). Said
shares shall be allocated to the Company Stock Account of that Applicable
Participant.

Appendix 3.3 — Page 3

 

 

     (f) The sum of the reductions under paragraph (e)(2) above for an Applicable
Participant (other than those paid pursuant to subsection (d) above), if any, shall be
referred to as the “Supplemental SBP Allocation” (expressed as a number of units).
Each such Applicable Participant’s Supplemental SBP Allocation, if any, shall be credited in
accordance with the terms of the Supplemental SBP and shall not be contributed or allocated
under this Plan.

APPENDIX A

NONDISCRIMINATION LIMITS

     This Appendix A describes how the requirements of Appendix 3.3(c)(3) of the Plan are applied
with respect to Section 401 of the Code. To implement Appendix 3.3(c)(3), all of the allocations in
the Plan are first performed on a hypothetical basis; no actual allocations are made until it is
determined that the allocations comply with Section 401(a)(4) as described below.

     In order to determine whether the allocations under the Plan comply with Section 401(a)(4),
the Plan will apply the rules set forth in Treasury Regulation Section 1.401(a)(4)-(2)(c) (the
general test for nondiscrimination in amounts of contributions). Accordingly, the following steps
will be taken.

Step 1

     Calculate an Allocation Rate for each Participant. It is equal to all allocations (based on
the Fair Market Value, on the date of the contributions, of the Company Stock contributed for the
Plan Year in question) for a Participant attributable to all Contributions (including Additional
Employer Contributions but excluding After-Tax and Rollover Contributions), and allocations of
Forfeitures divided by the Participant’s Statutory Compensation for the Plan Year. For this
purpose, Social Security shall be imputed.

Step 2

     Group all Participants into Rate Groups, with each Rate Group corresponding to a given HCE.

Step 3

     For each Rate Group, determine the ratio of Participants who are NHCEs within the Rate Group
compared to all NHCEs (excluding those hired since the last Entry Date of the year) divided by the
ratio of Participants who are HCEs within the Rate Group compared to all HCEs. If said ratio equals
or exceeds 70% for every Rate Group, the Plan shall comply with Section 401(a)(4).

Step 4

     In the event one or more Rate Groups fail to meet the requirements of Step 3, the ratios for
each Rate Group calculated pursuant to Step 3 shall be compared with the Safe Harbor Mid

Appendix 3.3 — Page 4

 

 

Point Percentage. If the ratio so determined for any Rate Group is less than the Safe Harbor
Mid Point Percentage, the allocations do not meet Section 401(a)(4) of the Code and the allocations
shall be reduced pursuant to Step 6. Otherwise, proceed to Step 5.

Step 5

     In the event every Rate Group’s ratio calculated pursuant to Step 4 is equal to or greater
than the Safe Harbor Mid Point Percentage, determine the average Allocation Rate for all NHCEs and
the average shall mean Allocation Rate for all HCEs. Include in this calculation benefits from all
tax qualified retirement plans sponsored by the Employer, normalizing any defined benefit plan
benefits. If the ratio of the average Allocation Rate for NHCEs compared to the average Allocation
Rate for HCEs equals or exceeds 70%, the allocations under this Plan comply with Code Section
401(a)(4). If the ratios are less than 70%, the allocations do not comply with Code Section 401(a)
and must be reduced pursuant to Step 6.

Step 6

     If any Rate Group (or the average Allocation Rate under Step 5) fails to meet the foregoing
rules, then the amount tentatively contributed and allocated to the HCE(s) for that Plan Year shall
be reduced so as to comply with Section 401(a)(4) of the Code. Said reductions shall generally be
made by reducing the highest paid Participant(s) in the Rate Group such amount as is necessary to
move him or her to the next highest Rate Group. However, if it is necessary to reduce the next
highest Rate Group as well, Participants in such next highest Rate Group whose allocations have not
already been adjusted pursuant to this Step 6 for the Plan Year shall be adjusted before
Participants whose allocations have previously been adjusted for the Plan Year (and persons whose
allocations have only been adjusted once shall be adjusted before those whose allocations have been
adjusted twice, etc.)

     For purposes of this Appendix A, the following definitions shall apply:

     (i) “Rate Group” means a group of Participants consisting of an HCE and all other
Participants with Allocation Rates equal to or greater than the Allocation Rate of the HCE. A Rate
Group shall be established for each Participant who is an HCE.

     (ii) “NHCE Concentration Percentage” means the percentage of all Employees who meet
age and service requirements of this Plan who are NHCEs.

     (iii) “Safe Harbor Mid Point Percentage” shall be the rate determined pursuant to
Table I attached hereto.

Appendix 3.3 — Page 5

 

 

TABLE I

IRS NONDISCRIMINATORY CLASSIFICATION PERCENTAGES

	 	 	 	 	 
	NHCE	 	Safe Harbor
	Concentration Percentage	 	Mid Point Percentage
	60 or below
	 	 	45.00	%
	61
	 	 	44.25	%
	62
	 	 	43.50	%
	63
	 	 	42.75	%
	64
	 	 	42.00	%
	65
	 	 	41.25	%
	66
	 	 	40.50	%
	67
	 	 	39.75	%
	68
	 	 	39.00	%
	69
	 	 	38.25	%
	70
	 	 	37.50	%
	71
	 	 	36.75	%
	72
	 	 	36.00	%
	73
	 	 	35.25	%
	74
	 	 	34.50	%
	75
	 	 	33.75	%
	76
	 	 	33.00	%
	77
	 	 	32.25	%
	78
	 	 	31.50	%
	79
	 	 	30.75	%
	80
	 	 	30.00	%
	81
	 	 	29.25	%
	82
	 	 	28.50	%
	83
	 	 	27.75	%
	84
	 	 	27.00	%
	85
	 	 	26.25	%
	86
	 	 	25.50	%
	87
	 	 	24.87	%
	88
	 	 	24.50	%
	89
	 	 	24.12	%
	90
	 	 	23.75	%
	91
	 	 	23.37	%
	92
	 	 	23.00	%
	93
	 	 	22.62	%
	94
	 	 	22.25	%
	95
	 	 	21.87	%
	96
	 	 	21.50	%
	97
	 	 	21.12	%
	98
	 	 	20.75	%
	99
	 	 	20.37	%”

Appendix 3.3 — Page 6

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