Document:

ex4-12.htm

    
      
        

      

    

    Exhibit
4.12

     

    JAMES
RIVER COAL COMPANY

     

    SUBORDINATED
DEBT INDENTURE

     

    DATED
AS OF _______________, 201__

     

    _________________________,
TRUSTEE

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE
OF CONTENTS

    
      	 
      	 
      	 
      	 
      	 
      
	
              ARTICLE I DEFINITIONS AND INCORPORATION BY
      REFERENCE

            	 
      	
              1

            
	
              SECTION 1.1

            	 
      	
              Definitions

            	 
      	
              1

            
	
              SECTION 1.2

            	 
      	
              Other Definitions

            	 
      	
              4

            
	
              SECTION 1.3

            	 
      	
              Incorporation by Reference of Trust Indenture
      Act

            	 
      	
              5

            
	
              SECTION 1.4

            	 
      	
              Rules Of Construction

            	 
      	
              5

            
	
              ARTICLE II THE SECURITIES

            	 
      	
              6

            
	
              SECTION 2.1

            	 
      	
              Issuable In Series

            	 
      	
              6

            
	
              SECTION 2.2

            	 
      	
              Establishment Of Terms Of Series Of
      Securities

            	 
      	
              6

            
	
              SECTION 2.3

            	 
      	
              Execution and Authentication

            	 
      	
              7

            
	
              SECTION 2.4

            	 
      	
              Registrar and Paying Agent

            	 
      	
              8

            
	
              SECTION 2.5

            	 
      	
              Paying Agent to Hold Money in
    Trust

            	 
      	
              9

            
	
              SECTION 2.6

            	 
      	
              Securityholder Lists

            	 
      	
              9

            
	
              SECTION 2.7

            	 
      	
              Transfer and Exchange

            	 
      	
              9

            
	
              SECTION 2.8

            	 	
              Mutilated, Destroyed, Lost and Stolen
      Securities

            	 
      	
              9

            
	
              SECTION 2.9

            	 
      	
              Outstanding Securities

            	 
      	
              10

            
	
              SECTION 2.10

            	 
      	
              Treasury Securities

            	 
      	
              10

            
	
              SECTION 2.11

            	 
      	
              Temporary Securities

            	 
      	
              10

            
	
              SECTION 2.12

            	 
      	
              Cancellation

            	 
      	
              11

            
	
              SECTION 2.13

            	 
      	
              Defaulted Interest

            	 
      	
              11

            
	
              SECTION 2.14

            	 
      	
              Global Securities

            	 
      	
              11

            
	
              SECTION 2.15

            	 
      	
              CUSIP Numbers

            	 
      	
              12

            
	
              ARTICLE III REDEMPTION

            	 
      	
              12

            
	
              SECTION 3.1

            	 
      	
              Notice To Trustee

            	 
      	
              12

            
	
              SECTION 3.2

            	 
      	
              Selection of Securities to be
      Redeemed

            	 
      	
              12

            
	
              SECTION 3.3

            	 	
              Notice of Redemption

            	 
      	
              12

            
	
              SECTION 3.4

            	 	
              Effect of Notice of Redemption

            	 
      	
              13

            
	
              SECTION 3.5

            	 	
              Deposit of Redemption Price

            	 
      	
              13

            
	
              SECTION 3.6

            	 	
              Securities Redeemed in Part

            	 
      	
              13

            
	
              ARTICLE IV COVENANTS

            	 
      	
              14

            
	
              SECTION 4.1

            	 	
              Payment of Principal and
Interest

            	 
      	
              14

            
	
              SECTION 4.2

            	 	
              SEC Reports

            	 
      	
              14

            
	
              SECTION 4.3

            	 	
              Compliance Certificate

            	 
      	
              14

            
	
              SECTION 4.4

            	 	
              Stay, Extension and Usury Laws

            	 
      	
              14

            
	
              SECTION 4.5

            	 	
              Corporate Existence

            	 
      	
              14

            
	
              SECTION 4.6

            	 	
              Taxes

            	 
      	
              15

            
	
              ARTICLE V SUCCESSORS

            	 
      	
              15

            
	
              SECTION 5.1

            	 	
              When Company May Merge, Etc.

            	 
      	
              15

            
	
              SECTION 5.2

            	 	
              Successor Corporation
Substituted

            	 
      	
              15

            
	
              ARTICLE VI DEFAULTS AND REMEDIES

            	 
      	
              15

            
	
              SECTION 6.1

            	 	
              Events of Default

            	 
      	
              15

            
	
              SECTION 6.2

            	 
      	
              Acceleration of Maturity; Rescission and
      Annulment

            	 
      	
              16

            
	
              SECTION 6.3

            	 
      	
              Collection Of Indebtedness And Suits For Enforcement
      By Trustee

            	 
      	
              17

            
	
              SECTION 6.4

            	 
      	
              Trustee May File Proofs Of Claim

            	 
      	
              17

            
	
              SECTION 6.5

            	 
      	
              Trustee May Enforce Claims Without Possession Of
      Securities

            	 
      	
              18

            
	
              SECTION 6.6

            	 
      	
              Application of Money Collected

            	 
      	
              18

            
	
              SECTION 6.7

            	 
      	
              Limitation On Suits

            	 
      	
              18

            
	
              SECTION 6.8

            	 
      	
              Unconditional Right of Holders to Receive Principal
      and Interest

            	 
      	
              19

            
	
              SECTION 6.9

            	 
      	
              Restoration of Rights and
    Remedies

            	 
      	
              19

            
	
              SECTION 6.10

            	 
      	
              Rights and Remedies Cumulative

            	 
      	
              19

            
	
              SECTION 6.11

            	 
      	
              Delay or Omission Not Waiver

            	 
      	
              19

            
	
              SECTION 6.12

            	 
      	
              Control by Holders

            	 
      	
              20

            
	
              SECTION 6.13

            	 
      	
              Waiver Of Past Defaults

            	 
      	
              20

            
	
              SECTION 6.14

            	 
      	
              Undertaking For Costs

            	 
      	
              20

            
	
              ARTICLE VII TRUSTEE

            	 
      	
              20

            

    

    

    
      
        
           

        

        
          i

          
            

          

        

        
           

        

      

    

    

      
        	
                SECTION 7.1

              	 
      	
                Duties of Trustee

              	 
      	
                20

              
	
                SECTION 7.2

              	 
      	
                Rights of Trustee

              	 
      	
                22

              
	
                SECTION 7.3

              	 
      	
                Individual Rights of Trustee

              	 
      	
                22

              
	
                SECTION 7.4

              	 
      	
                Trustee’s Disclaimer

              	 
      	
                23

              
	
                SECTION 7.5

              	 
      	
                Notice Of Defaults

              	 
      	
                23

              
	
                SECTION 7.6

              	 
      	
                Reports by Trustee to Holders

              	 
      	
                23

              
	
                SECTION 7.7

              	 
      	
                Compensation and Indemnity

              	 
      	
                23

              
	
                SECTION 7.8

              	 
      	
                Replacement of Trustee

              	 
      	
                24

              
	
                SECTION 7.9

              	 
      	
                Successor Trustee by Merger,
Etc.

              	 
      	
                24

              
	
                SECTION 7.10

              	 
      	
                Eligibility; Disqualification

              	 
      	
                25

              
	
                SECTION 7.11

              	 
      	
                Referential Collection of Claims Against
      Company

              	 
      	
                25

              
	
                ARTICLE VIII SATISFACTION AND DISCHARGE;
      DEFEASANCE

              	 
      	
                25

              
	
                SECTION 8.1

              	 
      	
                Satisfaction and Discharge of Subordinated Debt
      Indenture

              	 
      	
                25

              
	
                SECTION 8.2

              	 
      	
                Application of Trust Funds;
      Indemnification

              	 
      	
                26

              
	
                SECTION 8.3

              	 
      	
                Legal Defeasance of Securities of any
      Series

              	 
      	
                26

              
	
                SECTION 8.4

              	 
      	
                Covenant Defeasance

              	 
      	
                27

              
	
                SECTION 8.5

              	 
      	
                Repayment to Company

              	 
      	
                28

              
	
                ARTICLE IX AMENDMENTS AND
WAIVERS

              	 
      	
                28

              
	
                SECTION 9.1

              	 
      	
                Without Consent of Holders

              	 
      	
                28

              
	
                SECTION 9.2

              	 
      	
                With Consent of Holders

              	 
      	
                29

              
	
                SECTION 9.3

              	 
      	
                Limitations

              	 
      	
                29

              
	
                SECTION 9.4

              	 
      	
                Compliance With Trust Indenture
    Act.

              	 
      	
                30

              
	
                SECTION 9.5

              	 
      	
                Revocation and Effect of
Consents

              	 
      	
                30

              
	
                SECTION 9.6

              	 
      	
                Notation on or Exchange of
      Securities

              	 
      	
                30

              
	
                SECTION 9.7

              	 
      	
                Trustee Protected

              	 
      	
                30

              
	
                ARTICLE X MISCELLANEOUS

              	 
      	
                30

              
	
                SECTION 10.1

              	 
      	
                Trust Indenture Act Controls

              	 
      	
                30

              
	
                SECTION 10.2

              	 
      	
                Notices

              	 
      	
                31

              
	
                SECTION 10.3

              	 
      	
                Communication by Holders with Other
      Holders

              	 
      	
                31

              
	
                SECTION 10.4

              	 
      	
                Certificate and Opinion as to Conditions
      Precedent

              	 
      	
                31

              
	
                SECTION 10.5

              	 
      	
                Statements Required in Certificate or
      Opinion

              	 
      	
                32

              
	
                SECTION 10.6

              	 
      	
                Rules by Trustee and Agents

              	 
      	
                32

              
	
                SECTION 10.7

              	 
      	
                Legal Holidays

              	 
      	
                32

              
	
                SECTION 10.8

              	 
      	
                No Recourse Against Others

              	 
      	
                32

              
	
                SECTION 10.9

              	 
      	
                Counterparts

              	 
      	
                32

              
	
                SECTION 10.10

              	 
      	
                Governing Laws

              	 
      	
                32

              
	
                SECTION 10.11

              	 
      	
                No Adverse Interpretation of Other
      Agreements

              	 
      	
                33

              
	
                SECTION 10.12

              	 
      	
                Successors

              	 
      	
                33

              
	
                SECTION 10.13

              	 
      	
                Severability

              	 
      	
                33

              
	
                SECTION 10.14

              	 
      	
                Table of Contents, Headings,
Etc.

              	 
      	
                33

              
	
                ARTICLE XI SINKING FUNDS

              	 
      	
                33

              
	
                SECTION 11.1

              	 
      	
                Applicability of Article

              	 
      	
                33

              
	
                SECTION 11.2

              	 
      	
                Satisfaction Of Sinking Fund Payments With
      Securities

              	 
      	
                33

              
	
                SECTION 11.3

              	 
      	
                Redemption Of Securities For Sinking
      Fund

              	 
      	
                34

              
	
                ARTICLE XII SUBORDINATION OF
      SECURITIES

              	 
      	
                34

              
	
                SECTION 12.1

              	 
      	
                Agreement of Subordination

              	 
      	
                34

              
	
                SECTION 12.2

              	 
      	
                Payments to Holders

              	 
      	
                34

              
	
                SECTION 12.3

              	 
      	
                Subrogation of Securities

              	 
      	
                36

              
	
                SECTION 12.4

              	 
      	
                Authorization to Effect
      Subordination

              	 
      	
                37

              
	
                SECTION 12.5

              	 
      	
                Notice to Trustee

              	 
      	
                37

              
	
                SECTION 12.6

              	 
      	
                Trustee’s Relation to Senior
      Indebtedness

              	 
      	
                38

              
	
                SECTION 12.7

              	 
      	
                No Impairment of Subordination

              	 
      	
                38

              
	
                SECTION 12.8

              	 
      	
                Article Applicable to Paying
    Agents

              	 
      	
                38

              
	
                SECTION 12.9

              	 
      	
                Senior Indebtedness Entitled to
    Rely

              	 
      	
                38

              

      

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

    

     

    CROSS
REFERENCE TABLE

     

    
      	Trust
      Indenture Act Section	
              Subordinated Debt Indenture
      Section

            

       

      
        	
                Section 310

              	
                (a)(1)

              	
                7.10

              
	 
      	
                (a)(2)

              	
                7.10

              
	 
      	
                (a)(3)

              	
                N/A

              
	 
      	
                (a)(4)

              	
                N/A

              
	 
      	
                (a)(5)

              	
                7.10

              
	 
      	
                (b)

              	
                7.10

              
	
                Section 311

              	
                (a)

              	
                7.11

              
	 
      	
                (b)

              	
                7.11

              
	 
      	
                (c)

              	
                N/A

              
	
                Section 312

              	
                (a)

              	
                2.6

              
	 
      	
                (b)

              	
                10.3

              
	 
      	
                (c)

              	
                10.3

              
	
                Section 313

              	
                (a)

              	
                7.6

              
	 
      	
                (b)(1)

              	
                7.6

              
	 
      	
                (b)(2)

              	
                7.6

              
	 
      	
                (c)(1)

              	
                7.6

              
	 
      	
                (d)

              	
                7.6

              
	
                Section 314

              	
                (a)

              	
                4.2,
      10.5

              
	 
      	
                (b)

              	
                N/A

              
	 
      	
                (c)(1)

              	
                10.4

              
	 
      	
                (c)(2)

              	
                10.4

              
	 
      	
                (c)(3)

              	
                N/A

              
	 
      	
                (d)

              	
                N/A

              
	 
      	
                (e)

              	
                10.5

              
	 
      	
                (f)

              	
                N/A

              
	
                Section 315

              	
                (a)

              	
                7.1

              
	 
      	
                (b)

              	
                7.5

              
	 
      	
                (c)

              	
                7.1

              
	 
      	
                (d)

              	
                7.1

              
	 
      	
                (e)

              	
                6.14

              
	
                Section 316

              	
                (a)

              	
                2.10

              
	 
      	
                (a)(1)(A)

              	
                6.12

              
	 
      	
                (a)(1)(B)

              	
                6.13

              
	 
      	
                (b)

              	
                6.8

              
	
                Section 317

              	
                (a)(1)

              	
                6.3

              
	 
      	
                (a)(2)

              	
                6.4

              
	 
      	
                (b)

              	
                2.5

              
	
                Section 318

              	
                (a)

              	
                10.1

              

      

    

    

    *           This
Cross Reference Table shall not, for any purpose, be deemed to be part of the
Subordinated Debt Indenture.

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    SUBORDINATED
DEBT INDENTURE, dated as of _______________, 201__ between JAMES RIVER COAL
COMPANY, a Virginia corporation (“Company”), and
____________________, as trustee (“Trustee”).

     

    Each
party agrees as follows for the benefit of the other party and for the equal and
ratable benefit of the Holders of the Securities issued under this Subordinated
Debt Indenture:

     

    ARTICLE
I

     

    DEFINITIONS AND INCORPORATION BY REFERENCE

     

    SECTION 1.1Definitions.

     

    “Additional Amounts”
means any additional amounts which are required hereby or by any Security, under
circumstances specified herein or therein, to be paid by the Company in respect
of certain taxes imposed on Holders specified herein or therein and which are
owing to such Holders.

     

    “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” (including,
with correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to any person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities
or by agreement or otherwise.

     

    “Agent” means any
Registrar, Paying Agent or Service Agent.

     

    “Authorized Newspaper”
means a newspaper in an official language of the country of publication
customarily published at least once a day for at least five days in each
calendar week and of general circulation in the place in connection with which
the term is used.  If it shall be impractical in the opinion of the
Trustee to make any publication of any notice required hereby in an Authorized
Newspaper, any publication or other notice in lieu thereof that is made or given
by the Trustee shall constitute a sufficient publication of such
notice.

     

    “Bearer Security”
means any Security, including any interest coupon appertaining thereto, that
does not provide for the identification of the Holder thereof.

     

    “Board of Directors”
means the Board of Directors of the Company or any duly authorized committee
thereof.

     

    “Board Resolution”
means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been adopted by the Board of Directors or
pursuant to authorization by the Board of Directors and to be in full force and
effect on the date of the certificate and delivered to the Trustee.

     

    “Business Day” means,
unless otherwise provided by Board Resolution, Officers’ Certificate or
supplemental indenture hereto for a particular Series, any day except a
Saturday, Sunday or a legal holiday in the City of New York on which banking
institutions are authorized or required by law, regulation or executive order to
close.

     

    “Capital Stock” means
any and all shares, interests, participations, rights or other equivalents
(however designated) of corporate stock.

     

    “Company” means the
party named as such above until a successor replaces it and thereafter means the
successor.

     

    “Company Order” means
a written order signed in the name of the Company by two Officers, one of whom
must be the Company’s principal executive officer, principal financial officer
or principal accounting officer.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

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

     

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

     

    “Default” means any
event which is, or after notice or passage of time or both would be, an Event of
Default.

     

    “Depository” means,
with respect to the Securities of any Series issuable or issued in whole or in
part in the form of one or more Global Securities, the person designated as
Depository for such Series by the Company, which Depository shall be a clearing
agency registered under the Exchange Act; and if at any time there is more than
one such person, “Depository” as used with respect to the Securities of any
Series shall mean the Depository with respect to the Securities of such
Series.

     

    “Designated Senior
Indebtedness” means any of our senior indebtedness that expressly
provides that it is “designated senior indebtedness” for purposes of this
Subordinated Debt Indenture (provided that the instrument, agreement or other
document creating or evidencing such Senior Indebtedness may place limitations
and conditions on the right of such Senior Indebtedness to exercise the rights
of Designated Senior Indebtedness).

     

    “Discount Security”
means any Security that provides for an amount less than the stated principal
amount thereof to be due and payable upon declaration of acceleration of the
maturity thereof pursuant to Section 6.2.

     

    “Dollars” and “$” means the currency
of The United States of America.

     

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

     

    “GAAP” means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in
effect as of the date of determination.

     

    “Global Security” or
“Global
Securities” means a Security or Securities, as the case may be, in the
form established pursuant to Section 2.2
evidencing all or part of a Series of Securities, issued to the Depository for
such Series or its nominee, and registered in the name of such Depository or
nominee.

     

    “Holder” or “Securityholder” means
a person in whose name a Security is registered or the holder of a Bearer
Security.

     

    “indebtedness” means,
with respect to any person, and without duplication, (a) all indebtedness,
obligations and other liabilities (contingent or otherwise) of such person for
borrowed money (including obligations of the Company in respect of overdrafts,
foreign exchange contracts, currency exchange agreements, interest rate
protection agreements, and any loans or advances from banks, whether or not
evidenced by notes or similar instruments) or evidenced by bonds, debentures,
notes or similar instruments (whether or not the recourse of the lender is to
the whole of the assets of such person or to only a portion thereof) (other than
any account payable or other accrued current liability or obligation incurred in
the ordinary course of business in connection with the obtaining of materials or
services), (b) all reimbursement obligations and other liabilities
(contingent or otherwise) of such person with respect to letters of credit, bank
guarantees or bankers’ acceptances, (c) all obligations and liabilities
(contingent or otherwise) in respect of leases of such person required, in
conformity with generally accepted accounting principles, to be accounted for as
capitalized lease obligations on the balance sheet of such person and all
obligations and other liabilities (contingent or otherwise) under any lease or
related document (including a purchase agreement) in connection with the lease
of real property which provides that such person is contractually
obligated to purchase or cause a third party to purchase the leased property and
thereby guarantee a minimum residual value of the leased property to the lessor
and the obligations of such person under such lease or related document to
purchase or to cause a third party to purchase such leased property,
(d) all obligations of such person (contingent or otherwise) with respect
to an interest rate or other swap, cap or collar agreement or other similar
instrument or agreement or foreign currency hedge, exchange, purchase or similar
instrument or agreement, (e) all direct or indirect guaranties or similar
agreements by such person in respect of, and obligations or liabilities
(contingent or otherwise) of such person to purchase or otherwise acquire or
otherwise assure a creditor against loss in respect of indebtedness, obligations
or liabilities of another person of the kind described in clauses
(a) through (d), (f) any indebtedness or other obligations described
in clauses (a) through (e) secured by any mortgage, pledge, lien or
other encumbrance existing on property which is owned or held by such person,
regardless of whether the indebtedness or other obligation secured thereby shall
have been assumed by such person and (g) any and all refinancings,
replacements, deferrals, renewals, extensions and refundings of, or amendments,
modifications or supplements to, any indebtedness, obligation or liability of
the kind described in clauses (a) through (f).

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “interest” with
respect to any Discount Security which by its terms bears interest only after
Maturity, means interest payable after Maturity.

     

    “Maturity,” when used
with respect to any Security or installment of principal thereof, means the date
on which the principal of such Security or such 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.

     

    “Officer” means the
Chief Executive Officer, the President, any Vice President, the Treasurer, the
Secretary, any Assistant Treasurer or any Assistant Secretary of the
Company.

     

    “Officers’
Certificate” means a certificate signed by two Officers, one of whom must
be the Company’s principal executive officer, principal financial officer or
principal accounting officer.

     

    “Opinion of Counsel”
means a written opinion of legal counsel who is acceptable to the
Trustee.  The counsel may be an employee of or counsel to the
Company.

     

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

     

    “principal” of a
Security means the principal of the Security plus, when appropriate, the
premium, if any, on, and any Additional Amounts in respect of, the
Security.

     

    “Representative” means
the (a) indenture trustee or other trustee, agent or representative for any
Senior Indebtedness or (b) with respect to any Senior Indebtedness that
does not have any such trustee, agent or other representative, (i) in the
case of such Senior Indebtedness issued pursuant to an agreement providing for
voting arrangements as among the holders or owners of such Senior Indebtedness,
any holder or owner of such Senior Indebtedness acting with the consent of the
required persons necessary to bind such holders or owners of such Senior
Indebtedness and (ii) in the case of all other such Senior Indebtedness,
the holder or owner of such Senior Indebtedness.

     

    “Responsible Officer”
means any officer of the Trustee in its Corporate Trust Office and also means,
with respect to a particular corporate trust matter, any other officer to whom
any corporate trust matter is referred because of his or her knowledge of and
familiarity with a particular subject.

     

    “SEC” means the
Securities and Exchange Commission.

     

    “Securities” means the
debentures, notes or other debt instruments of the Company of any Series
authenticated and delivered under this Subordinated Debt Indenture.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Senior Indebtedness”
means the principal, premium, if any, and interest, including any interest
accruing after bankruptcy, and rent or termination payment on or other amounts
due on our current or future Indebtedness, whether created, incurred, assumed,
guaranteed or in effect guaranteed by us, including any deferrals, renewals,
extensions, refundings, amendments, modifications or supplements to the
above.  However, Senior Indebtedness does not include:  (i)
Indebtedness that expressly provides that it shall not be senior in right of
payment to the Securities or expressly provides that it is on the same basis or
junior to the Securities; (ii) our indebtedness to any of our
majority-owned subsidiaries; and (iii) the Securities.

     

    “Series” or “Series of Securities”
means each series of debentures, notes or other debt instruments of the Company
created pursuant to Sections 2.1 and
2.2 hereof.

     

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

     

    “Subordinated Debt
Indenture” means this Subordinated Debt Indenture as amended or
supplemented, from time to time and shall include the form and terms of
particular Series of Securities established as contemplated
hereunder.

     

    “Subsidiary” of any
specified person means any corporation, association or other business entity of
which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such person or one or more of the other
Subsidiaries of that person or a combination thereof.

     

    “TIA” means the Trust
Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the
date of this Subordinated Debt Indenture; provided, however, that in the event
the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the
extent required by any such amendment, the Trust Indenture Act as so
amended.

     

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

     

    “U.S. Government
Obligations” means securities which are (i) direct obligations of
The United States of America for the payment of which its full faith and credit
is pledged or (ii) obligations of a person controlled or supervised by and
acting as an agency or instrumentality of The United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by The United States of America, and which in the case of
(i) and (ii) 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 evidenced by such depository receipt.

     

    SECTION 1.2Other Definitions.

    
      
        	 
      	 
      
	
                Term

              	
                Defined
      in Section

              
	
                Bankruptcy
      Law

              	
                6.1

              
	
                Custodian

              	
                6.1

              
	
                Event
      of Default

              	
                6.1

              
	
                Legal
      Holiday

              	
                10.7

              
	
                mandatory
      sinking fund payment

              	
                11.1

              
	
                optional
      sinking fund payment

              	
                11.1

              
	
                Paying
      Agent

              	
                2.4

              
	
                Payment
      Blockage Notice

              	
                12.2

              
	
                Registrar

              	
                2.4

              
	
                Service
      Agent

              	
                2.4

              
	
                successor
      person

              	
                5.1

              

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

     

    SECTION 1.3Incorporation by Reference of Trust Indenture
Act.

     

    Whenever
this Subordinated Debt Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Subordinated Debt
Indenture.  The following TIA terms used in this Subordinated Debt
Indenture have the following meanings:

     

    “Commission” means the
SEC.

     

    “indenture securities”
means the Securities.

     

    “indenture security
holder” means a Securityholder.

     

    “indenture to be
qualified” means this Subordinated Debt Indenture.

     

    “indenture trustee” or
“institutional
trustee” means the Trustee.

     

    “obligor” on the
indenture securities means the Company and any successor obligor upon the
Securities.

     

    All other
terms used in this Subordinated Debt Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
and not otherwise defined herein are used herein as so defined.

     

    SECTION 1.4Rules Of Construction.

     

    Unless
the context otherwise requires:

     

    
      	
               
      

            	
              (a)

            	
              a
      term has the meaning assigned to
it;

            

    

     

    
      	
               
      

            	
              (b)

            	
              an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting
  principles;

            

    

     

    
      	
               
      

            	
              (c)

            	
              references
      to “generally accepted accounting principles” and “GAAP” shall mean
      generally accepted accounting principles in effect as of the time when and
      for the period as to which such accounting principles are to be
      applied;

            

    

     

    
      	
               
      

            	
              (d)

            	
              “or”
      is not exclusive;

            

    

     

    
      	
               
      

            	
              (e)

            	
              words
      in the singular include the plural, and in the plural include the
      singular; and

            

    

     

    
      	
               
      

            	
              (f)

            	
              provisions
      apply to successive events and
transactions.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    ARTICLE II

     

    THE
SECURITIES

     

    SECTION 2.1Issuable In Series.

     

    The
aggregate principal amount of Securities that may be authenticated and delivered
under this Subordinated Debt Indenture is unlimited.  The Securities
may be issued in one or more Series.  All Securities of a Series shall
be identical except as may be set forth or determined in the manner provided in
a Board Resolution, supplemental indenture or Officers’ Certificate detailing
the adoption of the terms thereof pursuant to authority granted under a Board
Resolution.  In the case of Securities of a Series to be issued from
time to time, the Board Resolution, Officers’ Certificate or supplemental
indenture detailing the adoption of the terms thereof pursuant to authority
granted under a Board Resolution may provide for the method by which specified
terms (such as interest rate, maturity date, record date or date from which
interest shall accrue) are to be determined.  Securities may differ
between Series in respect of any matters, provided that all Series of Securities
shall be equally and ratably entitled to the benefits of this Subordinated Debt
Indenture, but all Securities issued hereunder shall be subordinate and junior
in right of payment, to the extent and in the manner set forth in Article XII, to
all Senior Indebtedness of the Company.

     

    SECTION 2.2Establishment Of Terms Of Series Of
Securities.

     

    At or
prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Subsection 2.2.1 and
either as to such Securities within the Series or as to the Series generally in
the case of Subsections 2.2.2 through
2.2.21) by or pursuant to a Board Resolution, and set forth or determined
in the manner provided in a Board Resolution, supplemental indenture or an
Officers’ Certificate:

     

    2.2.1           the
title of the Series (which shall distinguish the Securities of that particular
Series from the Securities of any other Series);

     

    2.2.2           the
price or prices (expressed as a percentage of the principal amount thereof) at
which the Securities of the Series will be issued;

     

    2.2.3           any
limit upon the aggregate principal amount of the Securities of the Series which
may be authenticated and delivered under this Subordinated Debt 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 2.7,
2.8, 2.11, 3.6 or 9.6);

     

    2.2.4           the
date or dates on which the principal of the Securities of the Series is
payable;

     

    2.2.5           the
rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any
commodity, commodity index, stock exchange index or financial index) at which
the Securities of the Series shall bear interest, if any, the date or dates from
which such interest, if any, shall accrue, the date or dates on which such
interest, if any, shall commence and be payable and any regular record date for
the interest payable on any interest payment date;

     

    2.2.6           the
place or places where the principal of and interest, if any, on the Securities
of the Series shall be payable, where the Securities of such Series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities of such Series and
this Subordinated Debt Indenture may be served, and the method of such payment,
if by wire transfer, mail or other means;

     

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

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    2.2.8          
  the obligation, if any, of the Company to redeem or purchase the
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;

     

    2.2.9         
   the dates, if any, on which and the price or prices at which
the Securities of the Series will be repurchased by the Company at the option of
the Holders thereof and other detailed terms and provisions of such repurchase
obligations;

     

    2.2.10           if
other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be
issuable;

     

    2.2.11           the
forms of the Securities of the Series in bearer or fully registered form (and,
if in fully registered form, whether the Securities will be issuable as Global
Securities);

     

    2.2.12           if
other than the principal amount thereof, the portion of the principal amount of
the Securities of the Series that shall be payable upon declaration of
acceleration of the maturity thereof pursuant to Section 6.2;

     

    2.2.13           the
provisions, if any, relating to any security provided for the Securities of the
Series;

     

    2.2.14           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 6.2;

     

    2.2.15           any
addition to or change in the covenants set forth in Articles IV or V
which applies to Securities of the Series;

     

    2.2.16           any
other terms of the Securities of the Series (which may modify or delete any
provision of this Subordinated Debt Indenture insofar as it applies to such
Series); and

     

    2.2.17           any
depositories, interest rate calculation agents, exchange rate calculation agents
or other agents with respect to Securities of such Series if other than those
appointed herein.

     

    All
Securities of any one Series need not be issued at the same time and may be
issued from time to time, consistent with the terms of this Subordinated Debt
Indenture, if so provided by or pursuant to the Board Resolution, supplemental
indenture hereto or Officers’ Certificate referred to above, and the authorized
principal amount of any Series may not be increased to provide for issuances of
additional Securities of such Series, unless otherwise provided in such Board
Resolution, supplemental indenture or Officers’ Certificate.

     

    SECTION 2.3Execution and Authentication.

     

    Two
Officers shall sign the Securities for the Company by manual or facsimile
signature.

     

    If an
Officer whose signature is on a Security no longer holds that office at the time
the Security is authenticated, the Security shall nevertheless be
valid.

     

    A
Security shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.  The signature shall be conclusive
evidence that the Security has been authenticated under this Subordinated Debt
Indenture.

     

    The
Trustee shall at any time, and from time to time, authenticate Securities for
original issue in the principal amount provided in the Board Resolution,
supplemental indenture hereto or Officers’ Certificate, upon receipt by the
Trustee of a Company Order.  Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly confirmed in writing.  Each Security shall be dated the date
of its authentication unless otherwise provided by a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    The
aggregate principal amount of Securities of any Series outstanding at any time
may not exceed any limit upon the maximum principal amount for such Series set
forth in the Board Resolution, supplemental indenture hereto or Officers’
Certificate delivered pursuant to Section 2.2,
except as provided in Section 2.8.

     

    Prior to
the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.2)
shall be fully protected in relying on:  (a) the Board
Resolution, supplemental indenture hereto or Officers’ Certificate establishing
the form of the Securities of that Series or of Securities within that Series
and the terms of the Securities of that Series or of Securities within that
Series, (b) an Officers’ Certificate complying with Section 10.4,
and (c) an Opinion of Counsel complying with Section 10.4.

     

    The
Trustee shall have the right to decline to authenticate and deliver any
Securities of such Series: (a) if the Trustee, being advised by counsel,
determines that such action may not be taken lawfully; or (b) if the
Trustee in good faith by its board of directors or trustees, executive committee
or a trust committee of directors and/or Vice Presidents shall determine that
such action would expose the Trustee to personal liability to Holders of any
then outstanding Series of Securities.

     

    The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Securities.  An authenticating agent may authenticate
Securities whenever the Trustee may do so.  Each reference in this
Subordinated Debt Indenture to authentication by the Trustee includes
authentication by such agent.  An authenticating agent has the same
rights as an Agent to deal with the Company or an Affiliate of the
Company.

     

    SECTION 2.4Registrar and Paying Agent.

     

    The
Company shall maintain, with respect to each Series of Securities, at the place
or places specified with respect to such Series pursuant to Section 2.2, an
office or agency where Securities of such Series may be presented or surrendered
for payment (“Paying
Agent”), where Securities of such Series may be surrendered for
registration of transfer or exchange (“Registrar”) and where
notices and demands to or upon the Company in respect of the Securities of such
Series and this Subordinated Debt Indenture may be served (“Service
Agent”).  The Registrar shall keep a register with respect to
each Series of Securities and to their transfer and exchange.  The
Company will give prompt written notice to the Trustee of the name and address,
and any change in the name or address, of each Registrar, Paying Agent or
Service Agent.  If at any time the Company shall fail to maintain any
such required Registrar, Paying Agent or Service Agent or shall fail to furnish
the Trustee with the name and address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands.

     

    The
Company may also from time to time designate one or more co-registrars,
additional paying agents or additional service agents and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligations to
maintain a Registrar, Paying Agent and Service Agent in each place so specified
pursuant to Section 2.2 for
Securities of any Series for such purposes.  The Company will give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the name or address of any such co-registrar, additional paying
agent or additional service agent.  The term “Registrar” includes any
co-registrar; the term “Paying Agent” includes any additional paying agent; and
the term “Service Agent” includes any additional service agent.

     

    The
Company hereby appoints the Trustee as the initial Registrar, Paying Agent and
Service Agent for each Series unless another Registrar, Paying Agent or Service
Agent, as the case may be, is appointed prior to the time Securities of that
Series are first issued.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    SECTION 2.5Paying Agent to Hold Money in
Trust.

     

    The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust, for the benefit of
Securityholders of any Series of Securities, or the Trustee, all money held by
the Paying Agent for the payment of principal of or interest on the Series of
Securities, and will notify the Trustee of any default by the Company in making
any such payment.  While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the
Trustee.  The Company at any time may require a Paying Agent to pay
all money held by it to the Trustee.  Upon payment over to the
Trustee, the Paying Agent (if other than the Company or a Subsidiary of the
Company) shall have no further liability for the money.  If the
Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of Securityholders of any
Series of Securities all money held by it as Paying Agent.

     

    SECTION 2.6Securityholder Lists.

     

    The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Securityholders
of each Series of Securities and shall otherwise comply with TIA
Section 312(a).  If the Trustee is not the Registrar, the Company
shall furnish to the Trustee at least ten days before each interest payment date
and at such other times as the Trustee may request in writing a list, in such
form and as of such date as the Trustee may reasonably require, of the names and
addresses of Securityholders of each Series of Securities.

     

    SECTION 2.7Transfer and Exchange.

     

    Where
Securities of a Series are presented to the Registrar or a co-registrar with a
request to register a transfer or to exchange them for an equal principal amount
of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are
met.  To permit registrations of transfers and exchanges, the Trustee
shall authenticate Securities at the Registrar’s request.  No service
charge shall be made for any registration of transfer or exchange (except as
otherwise expressly permitted herein), but the Company 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 tax or similar
governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or
9.6).

     

    Neither
the Company nor the Registrar shall be required (a) to issue, register the
transfer of, or exchange Securities of any Series for the period beginning at
the opening of business fifteen days immediately preceding the mailing of a
notice of redemption of Securities of that Series selected for redemption and
ending at the close of business on the day of such mailing, or (b) to
register the transfer of or exchange Securities of any Series selected, called
or being called for redemption as a whole or the portion being redeemed of any
such Securities selected, called or being called for redemption in
part.

     

    SECTION 2.8Mutilated, Destroyed, Lost and Stolen
Securities.

     

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

     

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

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

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

     

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

     

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

     

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

     

    SECTION 2.9Outstanding Securities.

     

    The
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not
outstanding.

     

    If a
Security is replaced pursuant to Section 2.8, it
ceases to be outstanding until the Trustee receives proof satisfactory to it
that the replaced Security is held by a bona fide purchaser.

     

    If the
Paying Agent (other than the Company, a Subsidiary of the Company or an
Affiliate of the Company) holds on the Maturity of Securities of a Series money
sufficient to pay such Securities payable on that date, then on and after that
date such Securities of the Series cease to be outstanding and interest on them
ceases to accrue.

     

    A
Security does not cease to be outstanding because the Company or an Affiliate of
the Company holds the Security.

     

    In
determining whether the Holders of the requisite principal amount of outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, the principal amount of a Discount Security that
shall be deemed to be outstanding for such purposes shall be the amount of the
principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof
pursuant to Section 6.2.

     

    SECTION 2.10Treasury Securities.

     

    In
determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization, direction,
notice, consent or waiver, Securities of a Series owned by the Company shall be
disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such request, demand, authorization,
direction, notice, consent or waiver, only Securities of a Series that the
Trustee knows are so owned shall be so disregarded.

     

    SECTION 2.11Temporary Securities.

     

    Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Securities upon a Company
Order.  Temporary Securities shall be substantially in the form of
definitive Securities but may have variations that the Company considers
appropriate for temporary Securities.  Without unreasonable delay, the
Company shall prepare and the Trustee upon request shall authenticate definitive
Securities of the same Series and date of maturity in exchange for temporary
Securities.  Until so exchanged, temporary securities shall have the
same rights under this Subordinated Debt Indenture as the definitive
Securities.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    SECTION 2.12Cancellation.

     

    The
Company at any time may deliver Securities to the Trustee for
cancellation.  The Registrar and the Paying Agent shall forward to the
Trustee any Securities surrendered to them for registration of transfer,
exchange or payment.  The Trustee shall cancel all Securities
surrendered for transfer, exchange, payment, replacement or cancellation and
deliver such canceled Securities to the Company, unless the Company otherwise
directs; provided that the Trustee shall not be required to destroy
Securities.  The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for
cancellation.

     

    SECTION 2.13Defaulted Interest.

     

    If the
Company defaults in a payment of interest on a Series of Securities, it shall
pay the defaulted interest, plus, to the extent permitted by law, any interest
payable on the defaulted interest, to the persons who are Securityholders of the
Series on a subsequent special record date.  The Company shall fix the
record date and payment date.  At least 10 days before the record
date, the Company shall mail to the Trustee and to each Securityholder of the
Series a notice that states the record date, the payment date and the amount of
interest to be paid.  The Company may pay defaulted interest in any
other lawful manner.

     

    SECTION 2.14Global Securities.

     

    2.14.1           Terms Of
Securities.  A Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate shall establish whether the Securities of a
Series shall be issued in whole or in part in the form of one or more Global
Securities and the Depository for such Global Security or
Securities.

     

    2.14.2           Transfer And
Exchange.  Notwithstanding any provisions to the contrary
contained in Section 2.7 of
this Subordinated Debt Indenture and in addition thereto, any Global Security
shall be exchangeable pursuant to Section 2.7 of
this Subordinated Debt Indenture for Securities registered in the names of
Holders other than the Depository for such Security or its nominee only if
(i) such Depository notifies the Company that it is unwilling or unable to
continue as Depository for such Global Security or if at any time such
Depository ceases to be a clearing agency registered under the Exchange Act,
and, in either case, the Company fails to appoint a successor Depository
registered as a clearing agency under the Exchange Act within 90 days of
such event, (ii) the Company executes and delivers to the Trustee an
Officers’ Certificate to the effect that such Global Security shall be so
exchangeable or (iii) an Event of Default with respect to the Securities
represented by such Global Security shall have happened and be
continuing.  Any Global Security that is exchangeable pursuant to the
preceding sentence shall be exchangeable for Securities registered in such names
as the Depository shall direct in writing in an aggregate principal amount equal
to the principal amount of the Global Security with like tenor and
terms.

     

    Except as
provided in this Section 2.14.2,
a Global Security may not be transferred except as a whole by the Depository
with respect to such Global Security to a nominee of such Depository, by a
nominee of such Depository to such Depository or another nominee of such
Depository or by the Depository or any such nominee to a successor Depository or
a nominee of such a successor Depository.

     

    2.14.3           Legend.  Any
Global Security issued hereunder shall bear a legend in substantially the
following form:

     

    “This
Security is a Global Security within the meaning of the Subordinated Debt
Indenture hereinafter referred to and is registered in the name of the
Depository or a nominee of the Depository.  This Security is
exchangeable for Securities registered in the name of a person other than the
Depository or its nominee only in the limited circumstances described in the
Subordinated Debt Indenture, and may not be transferred except as a whole by the
Depository to a nominee of the Depository, by a nominee of the Depository to the
Depository or another nominee of the Depository or by the Depository or any such
nominee to a successor Depository or a nominee of such a successor
Depository.”

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    2.14.4           Acts Of
Holders.  The Depository, as a Holder, may appoint agents and
otherwise authorize participants to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action which a Holder
is entitled to give or take under this Subordinated Debt Indenture.

     

    2.14.5           Payments.  Notwithstanding
the other provisions of this Subordinated Debt Indenture, unless otherwise
specified as contemplated by Section 2.2,
payment of the principal of and interest, if any, on any Global Security shall
be made to the Holder thereof.

     

    2.14.6           Consents, Declaration And
Directions.  Except as provided in Section 2.14.5, the
Company, the Trustee and any Agent shall treat a person as the Holder of such
principal amount of outstanding Securities of such Series represented by a
Global Security as shall be specified in a written statement of the Depository
with respect to such Global Security, for purposes of obtaining any consents,
declarations, waivers or directions required to be given by the Holders pursuant
to this Subordinated Debt Indenture.

     

    SECTION 2.15CUSIP Numbers.

     

    The
Company in issuing the Securities may use “CUSIP” numbers (if then generally in
use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption
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 Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other elements of identification printed on
the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers.

     

    ARTICLE III

     

    REDEMPTION

     

    SECTION 3.1Notice To Trustee.

     

    The
Company may, with respect to any Series of Securities, reserve the right to
redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at
such time and on such terms as provided for in such Securities.  If a
Series of Securities is redeemable and the Company wants or is obligated to
redeem prior to the Stated Maturity thereof all or part of the Series of
Securities pursuant to the terms of such Securities, it shall notify the Trustee
of the redemption date and the principal amount of Series of Securities to be
redeemed.  The Company shall give the notice at least 45 days
before the redemption date (or such shorter notice as may be acceptable to the
Trustee).

     

    SECTION 3.2Selection of Securities to be
Redeemed.

     

    Unless
otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, if less than all the
Securities of a Series are to be redeemed, the Trustee shall select the
Securities of the Series to be redeemed in any manner that the Trustee deems
fair and appropriate.  The Trustee shall make the selection from
Securities of the Series outstanding not previously called for
redemption.  The Trustee may select for redemption portions of the
principal of Securities of the Series that have denominations larger than
$1,000.  Securities of the Series and portions of them it selects
shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to
Securities of any Series issuable in other denominations pursuant to Section 2.2.10,
the minimum principal denomination for each Series and integral multiples
thereof.  Provisions of this Subordinated Debt Indenture that apply to
Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.

     

    SECTION 3.3Notice of Redemption.

     

    Unless
otherwise indicated for a particular Series by Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, at least 30 days but not more
than 60 days before a redemption date, the Company shall mail a notice of
redemption by first-class mail to each Holder whose Securities are to be
redeemed and, if any Bearer Securities are outstanding, publish on one occasion
a notice in an Authorized Newspaper.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    The
notice shall identify the Securities of the Series to be redeemed and shall
state:

     

    
      	
               
      

            	
              (a)

            	
              the
      redemption date;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      redemption price;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      name and address of the Paying
Agent;

            

    

     

    
      	
               
      

            	
              (d)

            	
              that
      Securities of the Series called for redemption must be surrendered to the
      Paying Agent to collect the redemption
price;

            

    

     

    
      	
               
      

            	
              (e)

            	
              that
      interest on Securities of the Series called for redemption ceases to
      accrue on and after the redemption
date;

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      CUSIP number, if any; and

            

    

     

    
      	
               
      

            	
              (g)

            	
              any
      other information as may be required by the terms of the particular Series
      or the Securities of a Series being
redeemed.

            

    

     

    At the
Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at its expense.

     

    SECTION 3.4Effect of Notice of
Redemption.

     

    Once
notice of redemption is mailed or published as provided in Section 3.3,
Securities of a Series called for redemption become due and payable on the
redemption date and at the redemption price.  A notice of redemption
may not be conditional.  Upon surrender to the Paying Agent, such
Securities shall be paid at the redemption price plus accrued interest to the
redemption date, provided that installments of interest whose Stated Maturity is
on or prior to the redemption date shall be payable to the Holders of such
Securities (or one or more predecessor Securities) registered at the close of
business on the relevant record date therefor according to their terms and the
terms of this Subordinated Debt Indenture.

     

    SECTION 3.5Deposit of Redemption Price.

     

    On or
before the redemption date, the Company shall deposit with the Paying Agent
money sufficient to pay the redemption price of and accrued interest, if any, on
all Securities to be redeemed on that date.

     

    SECTION 3.6Securities Redeemed in Part.

     

    Upon
surrender of a Security that is redeemed in part, the Trustee shall authenticate
for the Holder a new Security of the same Series and the same maturity equal in
principal amount to the unredeemed portion of the Security
surrendered.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    ARTICLE IV

     

    COVENANTS

     

    SECTION 4.1Payment of Principal and
Interest.

     

    The
Company covenants and agrees for the benefit of the Holders of each Series of
Securities that it will duly and punctually pay the principal of and interest,
if any, on the Securities of that Series in accordance with the terms of such
Securities and this Subordinated Debt Indenture.

     

    SECTION 4.2SEC
Reports.

     

    The
Company shall deliver to the Trustee within 15 days after it files them
with the SEC copies of the annual reports and of the information, documents, and
other reports (or copies of such portions of any of the foregoing as the SEC may
by rules and regulations prescribe) which the Company is required to file with
the SEC pursuant to Section 13 or 15(d) of the Exchange Act.  The
Company also shall comply with the other provisions of TIA
Section 314(a).  Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on an Officers’
Certificate).

     

    SECTION 4.3Compliance Certificate.

     

    The
Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, an Officers’ Certificate stating that a review of
the activities of the Company and its Subsidiaries during the preceding fiscal
year has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Subordinated Debt Indenture, and further stating, as to
each such Officer signing such certificate, that to the best of his/her
knowledge the Company has kept, observed, performed and fulfilled each and every
covenant contained in this Subordinated Debt Indenture and is not in default in
the performance or observance of any of the terms, provisions and conditions
hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which he may have knowledge).

     

    The
Company will, so long as any of the Securities are outstanding, deliver to the
Trustee, forthwith upon becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect
thereto.

     

    SECTION 4.4Stay, Extension and Usury
Laws.

     

    The
Company covenants (to the extent that it may lawfully do so) that it will not at
any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Subordinated Debt Indenture or the Securities and the
Company (to the extent it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not, by resort
to any such law, 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 has been enacted.

     

    SECTION 4.5Corporate Existence.

     

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

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    SECTION 4.6Taxes.

     

    The
Company shall pay prior to delinquency all taxes, assessments and governmental
levies, except as contested in good faith and by appropriate
proceedings.

     

    ARTICLE V

     

    SUCCESSORS

     

    SECTION 5.1When Company May Merge, Etc.

     

    The
Company shall not consolidate with or merge with or into, or convey, transfer or
lease all or substantially all of its properties and assets to, any person (a
“successor
person”) unless:

     

    
      	
               
      

            	
              (a)

            	
              the
      Company is the surviving corporation or the successor person (if other
      than the Company) is a corporation organized and validly existing under
      the laws of any U.S. domestic jurisdiction and expressly assumes the
      Company’s obligations on the Securities and under this Subordinated Debt
      Indenture; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              immediately
      after giving effect to the transaction, no Default or Event of Default,
      shall have occurred and be
continuing.

            

    

     

    The
Company shall deliver to the Trustee prior to the consummation of the proposed
transaction an Officers’ Certificate to the foregoing effect and an Opinion of
Counsel stating that the proposed transaction and any supplemental indenture
comply with this Subordinated Debt Indenture.

     

    SECTION 5.2Successor Corporation
Substituted.

     

    Upon any
consolidation or merger, or any sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Company in accordance with Section 5.1, the
successor corporation formed by such consolidation or into or with which the
Company is merged or to which such sale, lease, conveyance or other disposition
is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Subordinated Debt Indenture with the same
effect as if such successor person has been named as the Company herein;
provided, however, that the predecessor Company in the case of a sale,
conveyance or other disposition (other than a lease) shall be released from all
obligations and covenants under this Subordinated Debt Indenture and the
Securities.

     

    ARTICLE VI

     

    DEFAULTS
AND REMEDIES

     

    SECTION 6.1Events of Default.

     

    “Event of Default,”
wherever used herein with respect to Securities of any Series, means any one of
the following events, unless in the establishing Board Resolution, supplemental
indenture or Officers’ Certificate, it is provided that such Series shall not
have the benefit of said Event of Default:

     

    
      	
               
      

            	
              (a)

            	
              default
      in the payment of any interest on any Security of that Series when it
      becomes due and payable, and continuance of such default for a period of
      30 days (unless the entire amount of such payment is deposited by the
      Company with the Trustee or with a Paying Agent prior to the expiration of
      such period of 30 days); or

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              default
      in the payment of principal of any Security of that Series at its
      Maturity; or

            

    

     

    
      	
               
      

            	
              (c)

            	
              default
      in the deposit of any sinking fund payment, when and as due in respect of
      any Security of that Series; or

            

    

     

    
      	
               
      

            	
              (d)

            	
              default
      in the performance or breach of any covenant or warranty of the Company in
      this Subordinated Debt Indenture (other than a covenant or warranty for
      which the consequences of nonperformance or breach are addressed elsewhere
      in this Section 6.1
      and other than a covenant or warranty that has been included in this
      Subordinated Debt Indenture solely for the benefit of Series of Securities
      other than that Series), which default continues uncured for a period of
      60 days after there has been given, by registered or certified mail,
      to the Company by the Trustee or to the Company and the Trustee by the
      Holders of not less than a majority in principal amount of the outstanding
      Securities of that Series a written notice specifying such default or
      breach and requiring it to be remedied and stating that such notice is a
      “Notice of Default” hereunder; or

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Company pursuant to or within the meaning of any Bankruptcy
      Law:

            

    

     

    
      	
               
      

            	
              (i)

            	
              commences
      a voluntary case,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              consents
      to the entry of an order for relief against it in an involuntary
      case,

            

    

     

    
      	
               
      

            	
              (iii)

            	
              consents
      to the appointment of a Custodian of it or for all or substantially all of
      its property,

            

    

     

    
      	
               
      

            	
              (iv)

            	
              makes
      a general assignment for the benefit of its creditors,
  or

            

    

     

    
      	
               
      

            	
              (v)

            	
              generally
      is unable to pay its debts as the same become due;
  or

            

    

     

    
      	
               
      

            	
              (f)

            	
              a
      court of competent jurisdiction enters an order or decree under any
      Bankruptcy Law that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              is
      for relief against the Company in an involuntary
  case,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              appoints
      a Custodian of the Company or for all or substantially all of its
      property, or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              orders
      the liquidation of the Company, and the order or decree remains unstayed
      and in effect for 60 days; or

            

    

     

    
      	
               
      

            	
              (g)

            	
              any
      other Event of Default provided with respect to Securities of that Series,
      which is specified in a Board Resolution, a supplemental indenture hereto
      or an Officers’ Certificate, in accordance with Section 2.2.18.

            

    

     

    The term
“Bankruptcy
Law” means title 11, U.S. Code or any similar Federal or State law for
the relief of debtors.  The term “Custodian” means any
receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
Law.

     

    SECTION 6.2Acceleration of Maturity; Rescission and
Annulment.

     

    If an
Event of Default with respect to Securities of any Series at the time
outstanding occurs and is continuing (other than an Event of Default referred to
in Section 6.1(e)
or (f)), then in every such case the Trustee or the Holders of not less
than a majority in principal amount of the outstanding Securities of that Series
may declare the principal amount (or, if any Securities of that Series are
Discount Securities, such portion of the principal amount as may be specified in
the terms of such Securities) of and accrued and unpaid interest, if any, on all
of the Securities of that Series to be due and payable immediately, by a notice
in writing to the Company (and to the Trustee if given by Holders), and upon any
such declaration such principal amount (or specified amount) and accrued and
unpaid interest, if any, shall become immediately due and payable.  If
an Event of Default specified in Section 6.1(e) or
(f) shall occur, the principal amount (or specified amount) of and
accrued and unpaid interest, if any, on all outstanding Securities shall ipso
facto become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Holder.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    At any
time after such a declaration of acceleration with respect to any Series has
been made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the Holders of
a majority in principal amount of the outstanding Securities of that Series, by
written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if all Events of Default with respect to
Securities of that Series, other than the non-payment of the principal and
interest, if any, of Securities of that Series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 6.13.

     

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

     

    SECTION 6.3Collection Of Indebtedness And Suits For
Enforcement By Trustee.

     

    The
Company covenants that if:

     

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              default
      is made in the payment of principal of any Security at the Maturity
      thereof, or

            

    

     

    
      	
               
      

            	
              (c)

            	
              default
      is made in the deposit of any sinking fund payment when and as due by the
      terms of a Security,

            

    

     

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

     

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

     

    If an
Event of Default with respect to any 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 Subordinated Debt Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper
remedy.

     

    SECTION 6.4Trustee May File Proofs Of
Claim.

     

    In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or
the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Securities shall then be
due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise, (a) to file and
prove a claim for the whole amount of principal and interest owing and unpaid in
respect of the Securities and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel) and of the Holders allowed in such judicial
proceeding, and (b) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.7.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

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

     

    SECTION 6.5Trustee May Enforce Claims Without Possession
Of Securities.

     

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

     

    SECTION 6.6Application 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 interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

     

    First:  To
the payment of all amounts due the Trustee under Section 7.7;
and

     

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

     

    Third:  To
the Company.

     

    SECTION 6.7Limitation 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 Subordinated Debt Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

     

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Holders of at least a majority in principal amount of the outstanding
      Securities of that Series shall have made written request to the Trustee
      to institute proceedings in respect of such Event of Default in its own
      name as Trustee hereunder;

            

    

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    
      	
               
      

            	
              (d)

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

            

    

     

    
      	
               
      

            	
              (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
Subordinated Debt 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 Subordinated
Debt Indenture, except in the manner herein provided and for the equal and
ratable benefit of all such Holders.

     

    SECTION 6.8Unconditional Right of Holders to Receive
Principal and Interest.

     

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

     

    SECTION 6.9Restoration of Rights and
Remedies.

     

    If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Subordinated Debt Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally 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 6.10Rights and Remedies
Cumulative.

     

    Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in Section 2.8, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not, to the
extent permitted by law, prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     

    SECTION 6.11Delay or Omission Not Waiver.

     

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

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    SECTION 6.12Control 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
      Subordinated Debt Indenture,

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Trustee may take any other action deemed proper by the Trustee which is
      not inconsistent with such direction,
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              subject
      to the provisions of Section 6.1,
      the Trustee shall have the right to decline to follow any such direction
      if the Trustee in good faith shall, by a Responsible Officer of the
      Trustee, determine that the proceeding so directed would involve the
      Trustee in personal liability.

            

    

     

    SECTION 6.13Waiver Of Past Defaults.

     

    The
Holders of not less than a majority in principal amount of the outstanding
Securities of any Series may on behalf of the Holders of all the Securities of
such Series waive any past Default hereunder with respect to such Series and its
consequences, except a Default (i) in the payment of the principal of or
interest on any Security of such Series (provided, however, that the Holders of
a majority in principal amount of the outstanding Securities of any Series may
rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration) or (ii) in respect of a
covenant or provision hereof which cannot be modified or amended without the
consent of the Holder of each outstanding Security of such Series
affected.  Upon any such waiver, such Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Subordinated Debt Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

     

    SECTION 6.14Undertaking For Costs.

     

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

     

    ARTICLE VII

     

    TRUSTEE

     

    SECTION 7.1Duties of Trustee.

     

    
      	
               
      

            	
              (a)

            	
              If
      an Event of Default has occurred and is continuing, the Trustee shall
      exercise the rights and powers vested in it by this Subordinated Debt
      Indenture and use the same degree of care and skill in their exercise as a
      prudent man would exercise or use under the circumstances in the conduct
      of his own affairs.

            

    

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              Except
      during the continuance of an Event of
Default:

            

    

     

    
      	
               
      

            	
              (i)

            	
              The
      Trustee need perform only those duties that are specifically set forth in
      this Subordinated Debt Indenture and no
others.

            

    

     

    
      	
               
      

            	
              (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 Officers’ Certificates or Opinions of Counsel
      furnished to the Trustee and conforming to the requirements of this
      Subordinated Debt Indenture; however, in the case of any such Officers’
      Certificates or Opinions of Counsel which by any provisions hereof are
      specifically required to be furnished to the Trustee, the Trustee shall
      examine such Officers’ Certificates and Opinions of Counsel to determine
      whether or not they conform to the requirements of this Subordinated Debt
      Indenture.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Trustee may not be relieved from liability for its own negligent action,
      its own negligent failure to act or its own willful misconduct, except
      that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              This
      paragraph does not limit the effect of paragraph (b) 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 is proved that the Trustee was
      negligent in ascertaining the pertinent
facts.

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
               
      

            	
              (d)

            	
              Every
      provision of this Subordinated Debt Indenture that in any way relates to
      the Trustee is subject to paragraph (a), (b) and (c) of this
      Section.

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      Trustee may refuse to perform any duty or exercise any right or power at
      the request or direction of any Holder unless it receives indemnity
      satisfactory to it against any loss, liability or
  expense.

            

    

     

    
      	
               
      

            	
              (f)

            	
              The
      Trustee shall not be liable for interest on any money received by it
      except as the Trustee may agree in writing with the
      Company.  Money held in trust by the Trustee need not be
      segregated from other funds except to the extent required by
      law.

            

    

     

    
      	
               
      

            	
              (g)

            	
              No
      provision of this Subordinated Debt Indenture shall require the Trustee to
      risk its own funds or otherwise incur any financial liability in the
      performance of any of its duties, or in the exercise of any of its rights
      or powers, if it shall have reasonable grounds for believing that
      repayment of such funds or adequate indemnity against such risk is not
      reasonably assured to it

            

    

     

    
      	
               
      

            	
              (h)

            	
              The
      Paying Agent, the Registrar and any authenticating agent shall be entitled
      to the protections, immunities and standard of care as are set forth in
      paragraphs (a), (b) and (c) of this Section with respect to the
      Trustee.

            

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    SECTION 7.2Rights of Trustee.

     

    
      	
               
      

            	
              (a)

            	
              The
      Trustee may rely on and shall be protected in acting or refraining from
      acting upon any document believed by it to be genuine and to have been
      signed or presented by the proper person.  The Trustee need not
      investigate any fact or matter stated in the
  document.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Before
      the Trustee acts or refrains from acting, it may require an Officers’
      Certificate.  The Trustee shall not be liable for any action it
      takes or omits to take in good faith in reliance on such Officers’
      Certificate.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Trustee may act through agents and shall not be responsible for the
      misconduct or negligence of any agent appointed with due
      care.  No Depository shall be deemed an agent of the Trustee and
      the Trustee shall not be responsible for any act or omission by any
      Depository.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      Trustee shall not be liable for any action it takes or omits to take in
      good faith which it believes to be authorized or within its rights or
      powers, provided that the Trustee’s conduct does not constitute negligence
      or bad faith.

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      Trustee may consult with counsel and the advice of such counsel or any
      Opinion of Counsel shall be full and complete authorization and protection
      in respect of any action taken, suffered or omitted by it hereunder
      without negligence and in good faith and in reliance
    thereon.

            

    

     

    
      	
               
      

            	
              (f)

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

            

    

     

    
      	
               
      

            	
              (g)

            	
              The
      Trustee may consult with counsel of its selection and the advice of such
      counsel or any Opinion of Counsel shall be full and complete authorization
      and protection in respect of any action taken, suffered or omitted by it
      hereunder without negligence and in good faith and in reliance
      thereon.

            

    

     

    
      	
               
      

            	
              (h)

            	
              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.

            

    

     

    
      	
               
      

            	
              (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 Securities generally or the
      Securities of a particular Series and this Subordinated Debt
      Indenture.

            

    

     

    SECTION 7.3Individual Rights of Trustee.

     

    The
Trustee in its individual or any other capacity may become the owner or pledgee
of Securities and may otherwise deal with the Company or an Affiliate of the
Company with the same rights it would have if it were not
Trustee.  Any Agent may do the same with like rights.  The
Trustee is also subject to Sections 7.10 and
7.11.

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    SECTION 7.4Trustee’s Disclaimer.

     

    The
Trustee makes no representation as to the validity or adequacy of this
Subordinated Debt Indenture or the Securities, it shall not be accountable for
the Company’s use of the proceeds from the Securities, and it shall not be
responsible for any statement in the Securities other than its
authentication.

     

    SECTION 7.5Notice Of Defaults.

     

    If a
Default or Event of Default occurs and is continuing with respect to the
Securities of any Series and if it is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Securityholder of the Securities of that
Series and, if any Bearer Securities are outstanding, publish on one occasion in
an Authorized Newspaper, notice of a Default or Event of Default within
90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such Default or Event of Default.  Except in
the case of a Default or Event of Default in payment of principal of or interest
on any Security of any Series, the Trustee may withhold the notice if and so
long as its corporate trust committee or a committee of its Responsible Officers
in good faith determines that withholding the notice is in the interests of
Securityholders of that Series.

     

    SECTION 7.6Reports by Trustee to Holders.

     

    Within
60 days after May 15 in each year, the Trustee shall transmit by mail
to all Securityholders, as their names and addresses appear on the register kept
by the Registrar and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in accordance
with, and to the extent required under, TIA Section 313.

     

    A copy of
each report at the time of its mailing to Securityholders of any Series shall be
filed with the SEC and each stock exchange on which the Securities of that
Series are listed.  The Company shall promptly notify the Trustee when
Securities of any Series are listed on any stock exchange.

     

    SECTION 7.7Compensation and Indemnity.

     

    The
Company shall pay to the Trustee from time to time compensation for its services
as the Company and the Trustee shall from time to time agree upon in
writing.  The Trustee’s compensation shall not be limited by any law
on compensation of a trustee of an express trust.  The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred by it.  Such expenses shall include the reasonable
compensation and expenses of the Trustee’s agents and counsel.

     

    The
Company shall indemnify each of the Trustee and any predecessor Trustee
(including the cost of defending itself) against any loss, liability or expense,
including taxes (other than taxes based upon, measured by or determined by the
income of the Trustee) incurred by it except as set forth in the next paragraph
in the performance of its duties under this Subordinated Debt Indenture as
Trustee or Agent.  The Trustee shall notify the Company promptly of
any claim for which it may seek indemnity.  The Company shall defend
the claim and the Trustee shall cooperate in the defense.  The Trustee
may have one separate counsel and the Company shall pay the reasonable fees and
expenses of such counsel.  The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably
withheld.  This indemnification shall apply to officers, directors,
employees, shareholders and agents of the Trustee.

     

    The
Company need not reimburse any expense or indemnify against any loss or
liability incurred by the Trustee or by any officer, director, employee,
shareholder or agent of the Trustee through negligence or bad
faith.

     

    To secure
the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series on all money or property held or collected
by the Trustee, except that held in trust to pay principal of and interest on
particular Securities of that Series.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.1(e)
or (f) occurs, the expenses and the compensation for the services
are intended to constitute expenses of administration under any Bankruptcy
Law.

     

    The
provisions of this Section shall survive the termination of this Subordinated
Debt Indenture.

     

    SECTION 7.8Replacement of Trustee.

     

    A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

     

    The
Trustee may resign with respect to the Securities of one or more Series by so
notifying the Company at least 30 days prior to the date of the proposed
resignation.  The Holders of a majority in principal amount of the
Securities of any Series may remove the Trustee with respect to that Series by
so notifying the Trustee and the Company.  The Company may remove the
Trustee with respect to Securities of one or more Series if:

     

    
      	
               
      

            	
              (a)

            	
              the
      Trustee fails to comply with Section 7.10;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Trustee is adjudged a bankrupt or an insolvent or an order for relief is
      entered with respect to the Trustee under any Bankruptcy
    Law;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      Custodian or public officer takes charge of the Trustee or its property;
      or

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Trustee becomes incapable of
acting.

            

    

     

    If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company shall promptly appoint a successor
Trustee.  Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the then outstanding Securities
may appoint a successor Trustee to replace the successor Trustee appointed by
the Company.

     

    If a
successor Trustee with respect to the Securities of any one or more Series does
not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of at least a majority
in principal amount of the Securities of the applicable Series may petition any
court of competent jurisdiction for the appointment of a successor
Trustee.

     

    A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company.  Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee subject to the lien provided for in Section 7.7, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
with respect to each Series of Securities for which it is acting as Trustee
under this Subordinated Debt Indenture.  A successor Trustee shall
mail a notice of its succession to each Securityholder of each such Series and,
if any Bearer Securities are outstanding, publish such notice on one occasion in
an Authorized Newspaper.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.8, the
Company’s obligations under Section 7.7
hereof shall continue for the benefit of the retiring Trustee with respect to
expenses and liabilities incurred by it prior to such replacement.

     

    SECTION 7.9Successor Trustee by Merger,
Etc.

     

    If the
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor
Trustee.

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    SECTION 7.10Eligibility; Disqualification.

     

    This
Subordinated Debt Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5).  The
Trustee shall always have a combined capital and surplus of at least $25,000,000
as set forth in its most recent published annual report of
condition.  The Trustee shall comply with TIA Section
310(b).

     

    SECTION 7.11Referential Collection of Claims Against
Company.

     

    The
Trustee is subject to TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b).  A Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

     

    ARTICLE VIII

     

    SATISFACTION
AND DISCHARGE; DEFEASANCE

     

    SECTION 8.1Satisfaction and Discharge of Subordinated Debt
Indenture.

     

    This
Subordinated Debt Indenture shall upon Company Order cease to be of further
effect (except as hereinafter provided in this Section 8.1),
and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Subordinated Debt Indenture,
when

     

    
      	
               
      

            	
              (a)

            	
              either:

            

    

     

    
      	
               
      

            	
              (i)

            	
              all
      Securities theretofore authenticated and delivered (other than Securities
      that have been destroyed, lost or stolen and that have been replaced or
      paid) have been delivered to the Trustee for cancellation;
    or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              all
      such Securities not theretofore delivered to the Trustee for cancellation
      (1) have become due and payable, or (2) will become due and payable
      at their Stated Maturity within one year, or (3) are to be called for
      redemption within one year under arrangements satisfactory to the Trustee
      for the giving of notice of redemption by the Trustee in the name, and at
      the expense, of the Company; and the Company has irrevocably deposited or
      caused to be deposited with the Trustee as trust funds in trust an amount
      sufficient for the purpose of paying and discharging the entire
      indebtedness on such Securities not theretofore delivered to the Trustee
      for cancellation, for principal and interest to the date of such deposit
      (in the case of Securities which have become due and payable on or prior
      to the date of such deposit) or to the Stated Maturity or redemption date,
      as the case may be;

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    Notwithstanding
the satisfaction and discharge of this Subordinated Debt Indenture, the
obligations of the Company to the Trustee under Section 7.7,
and, if money shall have been deposited with the Trustee pursuant to clause
(a) of this Section, the provisions of Sections 2.4, 2.7, 2.8,
8.1, 8.2 and 8.5 shall survive.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    SECTION 8.2Application of Trust Funds;
Indemnification.

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to the provisions of Section 8.5,
      all money deposited with the Trustee pursuant to Section 8.1,
      all money and U.S. Government Obligations or Foreign Government
      Obligations deposited with the Trustee pursuant to Section 8.3 or
      8.4 and all money received by the Trustee in respect of U.S.
      Government Obligations or Foreign Government Obligations deposited with
      the Trustee pursuant to Section 8.3 or
      8.4, shall be held in trust and applied by it, in accordance with
      the provisions of the Securities and this Subordinated Debt Indenture, to
      the payment, either directly or through any Paying Agent (other than the
      Company acting as its own Paying Agent) as the Trustee may determine, to
      the persons entitled thereto, of the principal and interest for whose
      payment such money has been deposited with or received by the Trustee or
      to make mandatory sinking fund payments or analogous payments as
      contemplated by Sections 8.3 or
      8.4.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Company shall pay and shall indemnify the Trustee against any tax, fee or
      other charge imposed on or assessed against U.S. Government Obligations or
      Foreign Government Obligations deposited pursuant to Sections 8.3 or
      8.4 or the interest and principal received in respect of such
      obligations other than any payable by or on behalf of
    Holders.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Trustee shall deliver or pay to the Company from time to time upon Company
      Request any U.S. Government Obligations or Foreign Government Obligations
      or money held by it as provided in Sections 8.3 or
      8.4 which, in the opinion of a nationally recognized firm of
      independent certified public accountants expressed in a written
      certification thereof delivered to the Trustee, are then in excess of the
      amount thereof which then would have been required to be deposited for the
      purpose for which such U.S. Government Obligations or Foreign Government
      Obligations or money were deposited or received.  This provision
      shall not authorize the sale by the Trustee of any U.S. Government
      Obligations or Foreign Government Obligations held under this Subordinated
      Debt Indenture.

            

    

     

    SECTION 8.3Legal Defeasance of Securities of any
Series.

     

    Unless
this Section 8.3 is
otherwise specified, pursuant to Section 2.2.20, to be
inapplicable to Securities of any Series, the Company shall be deemed to have
paid and discharged the entire indebtedness on all the outstanding Securities of
any Series on the 91st day after the date of the deposit referred to in
subparagraph (d) hereof, and the provisions of this Subordinated Debt
Indenture, as it relates to such outstanding Securities of such Series, shall no
longer be in effect (and the Trustee, at the expense of the Company, shall, at
Company Request, execute proper instruments acknowledging the same), except as
to:

     

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      provisions of Sections 2.4,
      2.7, 2.8, 8.2, 8.3, and 8.5;
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      rights, powers, trust and immunities of the Trustee hereunder; provided
      that, the following conditions shall have been
  satisfied:

            

    

     

    
      
        	
                 
      

              	
                (d)

              	
                the
      Company shall have deposited or caused to be irrevocably deposited (except
      as provided in Section 8.2(c))
      with the Trustee as trust funds in trust for the purpose of making the
      following payments, specifically pledged as security for and dedicated
      solely to the benefit of the Holders of such Securities, cash in Dollars
      and/or U.S. Government Obligations, which through the payment of interest
      and principal in respect thereof in accordance with their terms, will
      provide (and without reinvestment and assuming no tax liability will be
      imposed on such Trustee), not later than one day before the due date of
      any payment of money, an amount in cash, sufficient, in the opinion of a
      nationally recognized firm of independent public accountants expressed in
      a written certification thereof delivered to the Trustee, to pay and
      discharge each installment of principal of and interest, if any, on and
      any mandatory sinking fund payments in respect of all the Securities of
      such Series on the dates such installments of interest or principal and
      such sinking fund payments are due;

              

      

       

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

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

            

    

     

    
      	
               
      

            	
              (f)

            	
              no
      Default or Event of Default with respect to the Securities of such Series
      shall have occurred and be continuing on the date of such deposit or
      during the period ending on the 91st day after such
  date;

            

    

     

    
      	
               
      

            	
              (g)

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

            

    

     

    
      	
               
      

            	
              (h)

            	
              the
      Company shall have delivered to the Trustee an Officers’ Certificate
      stating that the deposit was not made by the Company with the intent of
      preferring the Holders of the Securities of such Series over any other
      creditors of the Company or with the intent of defeating, hindering,
      delaying or defrauding any other creditors of the Company;
    and

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    SECTION 8.4Covenant Defeasance.

     

    Unless
this Section 8.4 is
otherwise specified pursuant to Section 2.2.20
to be inapplicable to Securities of any Series, on and after the 91st day after
the date of the deposit referred to in subparagraph (a) hereof, the Company
may omit to comply with respect to the Securities of any Series with any term,
provision or condition set forth under Sections 4.2, 4.3, 4.4,
4.6, and 5.1 as well as any additional covenants specified in a
supplemental indenture for such Series of Securities or a Board Resolution or an
Officers’ Certificate delivered pursuant to Section 2.2.20
(and the failure to comply with any such covenants shall not constitute a
Default or Event of Default with respect to such Series under Section 6.1)
and the occurrence of any event specified in a supplemental indenture for such
Series of Securities or a Board Resolution or an Officers’ Certificate delivered
pursuant to Section 2.2.18
and designated as an Event of Default shall not constitute a Default or Event of
Default hereunder, with respect to the Securities of such Series, provided that
the following conditions shall have been satisfied:

     

    
      	
               
      

            	
              (a)

            	
              With
      reference to this Section 8.4,
      the Company has deposited or caused to be irrevocably deposited (except as
      provided in Section 8.2(c))
      with the Trustee as trust funds in trust for the purpose of making the
      following payments specifically pledged as security for, and dedicated
      solely to, the benefit of the Holders of such Securities, cash in Dollars
      and/or U.S. Government Obligations, which through the payment of interest
      and principal in respect thereof in accordance with their terms, will
      provide (and without reinvestment and assuming no tax liability will be
      imposed on such Trustee), not later than one day before the due date of
      any payment of money, an amount in cash, sufficient, in the opinion of a
      nationally recognized firm of independent certified public accountants
      expressed in a written certification thereof delivered to the Trustee, to
      pay and discharge each installment of principal of and interest, if any,
      on and any mandatory sinking fund payments in respect of the Securities of
      such Series on the dates such installments of interest or principal and
      such sinking fund payments are due;

            

    

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

            	
              No
      Default or Event of Default with respect to the Securities of such Series
      shall have occurred and be continuing on the date of such deposit or
      during the period ending on the 91st day after such
  date;

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      Company shall have delivered to the Trustee an Opinion of Counsel to the
      effect that Holders of the Securities of such Series will not recognize
      income, gain or loss for federal income tax purposes as a result of such
      deposit and covenant defeasance and will be subject to federal income tax
      on the same amounts, 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

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      Company shall have delivered to the Trustee an Officers’ Certificate and
      an Opinion of Counsel, each stating that all conditions precedent herein
      provided for relating to the covenant defeasance contemplated by this
      Section have been complied with.

            

    

     

    SECTION 8.5Repayment to Company.

     

    The
Trustee and the Paying Agent shall pay to the Company upon request any money
held by them for the payment of principal and interest that remains unclaimed
for two years.  After that, Securityholders entitled to the money must
look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person.

     

    ARTICLE IX

     

    AMENDMENTS
AND WAIVERS

     

    SECTION 9.1Without Consent of Holders.

     

    The
Company and the Trustee may amend or supplement this Subordinated Debt Indenture
or the Securities of one or more Series without the consent of any
Securityholder:

     

    
      	
               
      

            	
              (a)

            	
              to
      cure any ambiguity, defect or
inconsistency;

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      comply with Article V;

            

    

     

    
      	
               
      

            	
              (c)

            	
              to
      provide for uncertificated Securities in addition to or in place of
      certificated Securities;

            

    

     

    
      	
               
      

            	
              (d)

            	
              to
      make any change that does not adversely affect the rights of any
      Securityholder;

            

    

     

    
      	
               
      

            	
              (e)

            	
              to
      provide for the issuance of and establish the form and terms and
      conditions of Securities of any Series as permitted by this Subordinated
      Debt Indenture;

            

    

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (f)

            	
              to
      evidence and provide for the acceptance of appointment hereunder by a
      successor Trustee with respect to the Securities of one or more Series and
      to add to or change any of the provisions of this Subordinated Debt
      Indenture as shall be necessary to provide for or facilitate the
      administration of the trusts hereunder by more than one Trustee;
      or

            

    

     

    
      	
               
      

            	
              (g)

            	
              to
      comply with requirements of the SEC in order to effect or maintain the
      qualification of this Subordinated Debt Indenture under the
      TIA.

            

    

     

    SECTION 9.2With Consent of Holders.

     

    The
Company and the Trustee may enter into a supplemental indenture with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities of each Series affected by such supplemental indenture
(including consents obtained in connection with a tender offer or exchange offer
for the Securities of such Series), for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this
Subordinated Debt Indenture or of any supplemental indenture or of modifying in
any manner the rights of the Securityholders of each such
Series.  Except as provided in Section 6.13,
the Holders of at least a majority in principal amount of the outstanding
Securities of any Series by notice to the Trustee (including consents obtained
in connection with a tender offer or exchange offer for the Securities of such
Series) may waive compliance by the Company with any provision of this
Subordinated Debt Indenture or the Securities with respect to such
Series.

     

    It shall
not be necessary for the consent of the Holders of Securities under this Section 9.2 to
approve the particular form of any proposed supplemental indenture or waiver,
but it shall be sufficient if such consent approves the substance
thereof.  After a supplemental indenture or waiver under this section
becomes effective, the Company shall mail to the Holders of Securities affected
thereby and, if any Bearer Securities affected thereby are outstanding, publish
on one occasion in an Authorized Newspaper, a notice briefly describing the
supplemental indenture or waiver.  Any failure by the Company to mail
or publish such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture or
waiver.

     

    SECTION 9.3Limitations.

     

    Without
the consent of each Securityholder affected, an amendment or waiver may
not:

     

    
      	
               
      

            	
              (a)

            	
              reduce
      the amount of Securities whose Holders must consent to an amendment,
      supplement or waiver;

            

    

     

    
      	
               
      

            	
              (b)

            	
              reduce
      the rate of or extend the time for payment of interest (including default
      interest) on any Security;

            

    

     

    
      	
               
      

            	
              (c)

            	
              reduce
      the principal or change the Stated Maturity of any Security or reduce the
      amount of, or postpone the date fixed for, the payment of any sinking fund
      or analogous obligation;

            

    

     

    
      	
               
      

            	
              (d)

            	
              reduce
      the principal amount of Discount Securities payable upon acceleration of
      the maturity thereof;

            

    

     

    
      	
               
      

            	
              (e)

            	
              waive
      a Default or Event of Default in the payment of the principal of or
      interest, if any, on any Security (except a rescission of acceleration of
      the Securities of any Series by the Holders of at least a majority in
      principal amount of the outstanding Securities of such Series and a waiver
      of the payment default that resulted from such
      acceleration); 

            

    

     

    
      	
               
      

            	
              (f)

            	
              make
      the principal of or interest, if any, on any Security payable in any
      currency other than that stated in the
Security;

            

    

     

    
      	
               
      

            	
              (g)

            	
              adversely
      affect the right to convert any
Security;

            

    

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (h)

            	
              make
      any change in Sections 6.8,
      6.13, or 9.3 (this sentence);
or

            

    

     

    
      	
               
      

            	
              (i)

            	
              waive
      a redemption payment with respect to any
  Security.

            

    

     

    SECTION 9.4Compliance With Trust Indenture
Act.

     

    Every
amendment to this Subordinated Debt Indenture or the Securities of one or more
Series shall be set forth in a supplemental indenture hereto that complies with
the TIA as then in effect.

     

    SECTION 9.5Revocation and Effect of
Consents.

     

    Until an
amendment is set forth in a supplemental indenture or a waiver becomes
effective, a consent to it by a Holder of a Security is a continuing consent by
the Holder and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security, even if
notation of the consent is not made on any Security.  However, any
such Holder or subsequent Holder may revoke the consent as to his Security or
portion of a Security if the Trustee receives the notice of revocation before
the date of the supplemental indenture or the date the waiver becomes
effective.

     

    Any
amendment or waiver once effective shall bind every Securityholder of each
Series affected by such amendment or waiver unless it is of the type described
in any of clauses (a) through (h) of Section 9.3.  In
that case, the amendment or waiver shall bind each Holder of a Security who has
consented to it and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s
Security.

     

    SECTION 9.6Notation on or Exchange of
Securities.

     

    The
Trustee may place an appropriate notation about an amendment or waiver on any
Security of any Series thereafter authenticated.  The Company in
exchange for Securities of that Series may issue and the Trustee shall
authenticate upon request new Securities of that Series that reflect the
amendment or waiver.

     

    SECTION 9.7Trustee Protected.

     

    In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Subordinated Debt Indenture, the Trustee shall be entitled to
receive, and (subject to Section 7.1)
shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Subordinated Debt Indenture.  The Trustee shall sign all supplemental
indentures, except that the Trustee need not sign any supplemental indenture
that adversely affects its rights.

     

    ARTICLE X

     

    MISCELLANEOUS

     

    SECTION 10.1Trust Indenture Act Controls.

     

    If any
provision of this Subordinated Debt Indenture limits, qualifies, or conflicts
with another provision which is required or deemed to be included in this
Subordinated Debt Indenture by the TIA, such required or deemed provision shall
control.

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    SECTION 10.2Notices.

     

    Any
notice or communication by the Company or the Trustee to the other, or by a
Holder to the Company or the Trustee, is duly given if in writing and delivered
in person or mailed by first-class mail:

     

    if to the
Company:

     

    James
River Coal Company

    901 E.
Byrd Street, Suite 1600

    Richmond,
Virginia 23219

    Attention:  Peter
T. Socha

    Telephone:  (804)
780-3000

    Facsimile:  (804)
_______________

    

    if to the
Trustee:

    _______________________________

    _______________________________

    _______________________________

    _______________________________

     

    Attention:

    Telephone:  (_____)
_______________

    Facsimile:  (_____)
_______________

    

    The
Company or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.

     

    Any
notice or communication to a Securityholder shall be mailed by first-class mail
to his address shown on the register kept by the Registrar and, if any Bearer
Securities are outstanding, published in an Authorized
Newspaper.  Failure to mail a notice or communication to a
Securityholder of any Series or any defect in it shall not affect its
sufficiency with respect to other Securityholders of that or any other
Series.

     

    If a
notice or communication is mailed or published in the manner provided above,
within the time prescribed, it is duly given, whether or not the Securityholder
receives it.

     

    If the
Company mails a notice or communication to Securityholders, it shall mail a copy
to the Trustee and each Agent at the same time.

     

    SECTION 10.3Communication by Holders with Other
Holders.

     

    Securityholders
of any Series may communicate pursuant to TIA Section 312(b) with other
Securityholders of that Series or any other Series with respect to their rights
under this Subordinated Debt Indenture or the Securities of that Series or all
Series.  The Company, the Trustee, the Registrar and anyone else shall
have the protection of TIA Section 312(c).

     

    SECTION 10.4Certificate and Opinion as to Conditions
Precedent.

     

    Upon any
request or application by the Company to the Trustee to take any action under
this Subordinated Debt Indenture, the Company shall furnish to the
Trustee:

     

    
      	
               
      

            	
              (a)

            	
              an
      Officers’ Certificate stating that, in the opinion of the signers, all
      conditions precedent, if any, provided for in this Subordinated Debt
      Indenture relating to the proposed action have been complied with;
      and

            

    

     

    
      	
               
      

            	
              (b)

            	
              an
      Opinion of Counsel stating that, in the opinion of such counsel, all such
      conditions precedent have been complied
with.

            

    

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

     

    SECTION 10.5Statements Required in Certificate or
Opinion.

     

    Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Subordinated Debt Indenture (other than a certificate
provided pursuant to TIA Section 314(a)(4)) shall comply with the
provisions of TIA Section 314(e) and shall include:

     

    
      	
               
      

            	
              (a)

            	
              a
      statement that the person making such certificate or opinion has read such
      covenant or condition;

            

    

     

    
      	
               
      

            	
              (b)

            	
              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;

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      statement as to whether or not, in the opinion of such person, such
      condition or covenant has been complied
with.

            

    

     

    SECTION 10.6Rules by Trustee and Agents.

     

    The
Trustee may make reasonable rules for action by or a meeting of Securityholders
of one or more Series.  Any Agent may make reasonable rules and set
reasonable requirements for its functions.

     

    SECTION 10.7Legal Holidays.

     

    Unless
otherwise provided by Board Resolution, Officers’ Certificate or supplemental
indenture hereto for a particular Series, a “Legal Holiday” is any
day that is not a Business Day.  If a payment date is a Legal Holiday
at a place of payment, payment may be made at that place on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.

     

    SECTION 10.8No
Recourse Against Others.

     

    A
director, officer, employee or stockholder, as such, of the Company shall not
have any liability for any obligations of the Company under the Securities or
this Subordinated Debt Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation.  Each Securityholder by
accepting a Security waives and releases all such liability.  The
waiver and release are part of the consideration for the issue of the
Securities.

     

    SECTION 10.9Counterparts.

     

    This
Subordinated Debt Indenture may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

     

    SECTION 10.10   Governing
Laws.

     

    THIS
SUBORDINATED DEBT INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH
STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

    SECTION 10.11No Adverse Interpretation of Other
Agreements.

     

    This
Subordinated Debt Indenture may not be used to interpret another indenture, loan
or debt agreement of the Company or a Subsidiary of the Company.  Any
such indenture, loan or debt agreement may not be used to interpret this
Subordinated Debt Indenture.

     

    SECTION 10.12Successors.

     

    All
agreements of the Company in this Subordinated Debt Indenture and the Securities
shall bind its successor.  All agreements of the Trustee in this
Subordinated Debt Indenture shall bind its successor.

     

    SECTION 10.13Severability.

     

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

     

    SECTION 10.14Table of Contents, Headings,
Etc.

     

    The Table
of Contents, Cross-Reference Table, and headings of the Articles and Sections of
this Subordinated Debt Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or
restrict any of the terms or provisions hereof.

     

    ARTICLE XI

     

    SINKING
FUNDS

     

    SECTION 11.1Applicability of Article.

     

    The
provisions of this Article shall be applicable to any sinking fund for the
retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this
Subordinated Debt Indenture.

     

    The
minimum amount of any sinking fund payment provided for by the terms of the
Securities of any Series is herein referred to as a “mandatory sinking fund
payment” and any other amount provided for by the terms of Securities of
such Series is herein referred to as an “optional sinking fund
payment.”  If provided for by the terms of Securities of any
Series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 11.2.  Each
sinking fund payment shall be applied to the redemption of Securities of any
Series as provided for by the terms of the Securities of such
Series.

     

    SECTION 11.2Satisfaction Of Sinking Fund Payments With
Securities.

     

    The
Company may, in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of any Series to be made pursuant to the terms of such
Securities (1) deliver outstanding Securities of such Series to which such
sinking fund payment is applicable (other than any of such Securities previously
called for mandatory sinking fund redemption) and (2) apply as credit Securities
of such Series to which such sinking fund payment is applicable and which have
been repurchased by the Company or redeemed either at the election of the
Company pursuant to the terms of such Series of Securities (except pursuant to
any mandatory sinking fund) or through the application of permitted optional
sinking fund payments or other optional redemptions pursuant to the terms of
such Securities, provided that such Securities have not been previously so
credited.  Such Securities shall be received by the Trustee, together
with an Officers’ Certificate with respect thereto, not later than 15 days prior
to the date on which the Trustee begins the process of selecting Securities for
redemption, and shall be credited for such purpose by the Trustee at the price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced
accordingly.  If as a result of the delivery or credit of Securities
in lieu of cash payments pursuant to this Section 11.2,
the principal amount of Securities of such Series to be redeemed in order to
exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need
not call Securities of such Series for redemption, except upon receipt of a
Company Order that such action be taken, and such cash payment shall be held by
the Trustee or a Paying Agent and applied to the next succeeding sinking fund
payment, provided, however, that the Trustee or such Paying Agent shall from
time to time upon receipt of a Company Order pay over and deliver to the Company
any cash payment so being held by the Trustee or such Paying Agent upon delivery
by the Company to the Trustee of Securities of that Series purchased by the
Company having an unpaid principal amount equal to the cash payment required to
be released to the Company.

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

    SECTION 11.3Redemption Of Securities For Sinking
Fund.

     

    Not less
than 45 days (unless otherwise indicated in the Board Resolution,
supplemental indenture or Officers’ Certificate in respect of a particular
Series of Securities) prior to each sinking fund payment date for any Series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate
specifying the amount of the next ensuing mandatory sinking fund payment for
that Series pursuant to the terms of that Series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting of Securities of that
Series pursuant to Section 11.2,
and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and the Company shall thereupon be obligated to
pay the amount therein specified.  Not less than 30 days (unless
otherwise indicated in the Board Resolution, Officers’ Certificate or
supplemental indenture in respect of a particular Series of Securities) before
each such sinking fund payment date the Trustee shall select the Securities to
be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and
cause notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 3.3.  Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.4, 3.5 and
3.6.

     

    ARTICLE XII

     

    SUBORDINATION
OF SECURITIES

     

    SECTION 12.1Agreement of Subordination.

     

    The
Company covenants and agrees, and each Holder of Securities issued hereunder by
his acceptance thereof likewise covenants and agrees, that all Securities shall
be issued subject to the provisions of this Article XII; and
each person holding any Security, whether upon original issue or upon transfer,
assignment or exchange thereof, accepts and agrees to be bound by such
provisions.

     

    The
payment of the principal of and interest on all Securities (including, but not
limited to, the redemption price with respect to the Securities called for
redemption in accordance with Article III as
provided in this Subordinated Debt Indenture) issued hereunder shall, to the
extent and in the manner hereinafter set forth, be subordinated and subject in
right of payment to the prior payment in full of all Senior Indebtedness,
whether outstanding at the date of this Subordinated Debt Indenture or
thereafter incurred.

     

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

     

    SECTION 12.2Payments to Holders.

     

    No
payment shall be made with respect to the principal of or interest on the
Securities (including, but not limited to, the redemption price with respect to
the Securities to be called for redemption in accordance with Article III as
provided in this Subordinated Debt Indenture), except payments and distributions
made by the Trustee as permitted by the first or second paragraph of Section 12.5,
if:

     

    
      	
               
      

            	
              (i)

            	
              a
      default in the payment of principal, premium, interest, rent or other
      obligations due on any Senior Indebtedness occurs and is continuing (or,
      in the case of Senior Indebtedness for which there is a period of grace,
      in the event of such a default that continues beyond the period of grace,
      if any, specified in the instrument or lease evidencing such Senior
      Indebtedness), unless and until such default shall have been cured or
      waived or shall have ceased to exist;
or

            

    

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      default, other than a payment default, on a Designated Senior Indebtedness
      occurs and is continuing that then permits holders of such Designated
      Senior Indebtedness to accelerate its maturity and the Trustee receives a
      notice of the default (a “Payment Blockage
      Notice”) from a Representative or the
  Company.

            

    

     

    If the
Trustee receives any Payment Blockage Notice pursuant to clause (ii) above,
no subsequent Payment Blockage Notice shall be effective for purposes of this
Section unless and until (A) at least 365 days shall have elapsed
since the initial effectiveness of the immediately prior Payment Blockage
Notice, and (B) all scheduled payments of principal  and interest
on the Securities that have come due have been paid in full in
cash.  No nonpayment default that existed or was continuing on the
date of delivery of any Payment Blockage Notice to the Trustee shall be, or be
made, the basis for a subsequent Payment Blockage Notice.

     

    The
Company may and shall resume payments on and distributions in respect of the
Securities upon the earlier of:

     

    
      	
               
      

            	
              (1)

            	
              the
      date upon which the default is cured or waived or ceases to exist,
      or

            

    

     

    
      	
               
      

            	
              (2)

            	
              in
      the case of a default referred to in clause (ii) above, 179 days
      pass after notice is received if the maturity of such Designated Senior
      Indebtedness has not been accelerated, unless this Article XII
      otherwise prohibits the payment or distribution at the time of such
      payment or distribution.

            

    

     

    Upon any
payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any
dissolution or winding-up or liquidation or reorganization of the Company,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership or
other proceedings, all amounts due or to become due upon all Senior Indebtedness
shall first be paid in full in cash or other payment satisfactory to the holders
of such Senior Indebtedness, or payment thereof in accordance with its terms
provided for in cash or other payment satisfactory to the holders of such Senior
Indebtedness, before any payment is made on account of the principal of or
interest on the Securities (except payments made pursuant to Article VI from
monies deposited with the Trustee pursuant thereto prior to commencement of
proceedings for such dissolution, winding-up, liquidation or reorganization);
and upon any such dissolution or winding-up or liquidation or reorganization of
the Company or bankruptcy, insolvency, receivership or other proceeding, any
payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which the Holders of the
Securities or the Trustee would be entitled, except for the provision of this
Article XII,
shall (except as aforesaid) be paid by the Company or by any receiver, trustee
in bankruptcy, liquidating trustee, agent or other person making such payment or
distribution, or by the Holders of the Securities or by the Trustee under this
Subordinated Debt Indenture if received by them or it, directly to the holders
of Senior Indebtedness (pro rata to such holders on the basis of the respective
amounts of Senior Indebtedness held by such holders, or as otherwise required by
law or a court order) or their representative or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments
evidencing any Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay all Senior Indebtedness in
full, in cash or other payment satisfactory to the holders of such Senior
Indebtedness, after giving effect to any concurrent payment or distribution to
or for the holders of Senior Indebtedness, before any payment or distribution or
provision therefor is made to the Holders of the Securities or to the
Trustee.

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

     

    For
purposes of this Article XII, the
words, “cash, property
or securities” shall not be deemed to include shares of stock of the
Company as reorganized or readjusted, or securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article XII with
respect to the Securities to the payment of all Senior Indebtedness which may at
the time be outstanding; provided that (i) the Senior Indebtedness is
assumed by the new corporation, if any, resulting from any reorganization or
readjustment, and (ii) the rights of the holders of Senior Indebtedness
(other than leases which are not assumed by the Company or the new corporation,
as the case may be) are not, without the consent of such holders, altered by
such reorganization or readjustment.  The consolidation of the Company
with, or the merger of the Company into, another corporation or the liquidation
or dissolution of the Company following the conveyance or transfer of its
property as an entirety, or substantially as an entirety, to another corporation
upon the terms and conditions provided for in Article V shall
not be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section 12.2 if
such other corporation shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article V.

     

    In the
event of the acceleration of the Securities because of an Event of Default, no
payment or distribution shall be made to the Trustee or any Holder of Securities
in respect of the principal of or interest on the Securities (including, but not
limited to, the redemption price with respect to the Securities called for
redemption in accordance with Article III as
provided in this Subordinated Debt Indenture), except payments and distributions
made by the Trustee as permitted by the first or second paragraph of Section 12.5,
until all Senior Indebtedness has been paid in full in cash or other payment
satisfactory to the holders of Senior Indebtedness or such acceleration is
rescinded in accordance with the terms of this Subordinated Debt
Indenture.  If payment of the Securities is accelerated because of an
Event of Default, the Company shall promptly notify holders of Senior
Indebtedness of the acceleration at the address set forth in the notice from the
Agent (or successor agent) to the Trustee as being the address to which the
Trustee should send its notice pursuant to this Section 12.2,
unless there are no payment obligations of the Company thereunder and all
obligations thereunder to extend credit have been terminated or
expired.

     

    In the
event that, notwithstanding the foregoing provisions, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities (including, without limitation, by way of setoff or
otherwise), prohibited by the foregoing, shall be received by the Trustee or the
Holders of the Securities before all Senior Indebtedness is paid in full in cash
or other payment satisfactory to the holders of such Senior Indebtedness, or
provision is made for such payment thereof in accordance with its terms in cash
or other payment satisfactory to the holders of such Senior Indebtedness, such
payment or distribution shall be held in trust for the benefit of and shall be
paid over or delivered to the holders of Senior Indebtedness or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any Senior Indebtedness
may have been issued, as their respective interests may appear, as calculated by
the Company, for application to the payment of all Senior Indebtedness remaining
unpaid to the extent necessary to pay all Senior Indebtedness in full in cash or
other payment satisfactory to the holders of such Senior Indebtedness, after
giving effect to any concurrent payment or distribution to or for the holders of
such Senior Indebtedness.

     

    Nothing
in this Section 12.2
shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.7.  This
Section 12.2
shall be subject to the further provisions of Section 12.5.

     

    SECTION 12.3Subrogation of Securities.

     

    Subject
to the payment in full of all Senior Indebtedness, the rights of the Holders of
the Securities shall be subrogated to the extent of the payments or
distributions made to the holders of such Senior Indebtedness pursuant to the
provisions of this Article XII
(equally and ratably with the holders of all indebtedness of the Company which
by its express terms is subordinated to other indebtedness of the Company to
substantially the same extent as the Securities are subordinated and is entitled
to like rights of subrogation) to the rights of the holders of Senior
Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to the Senior Indebtedness until the
principal and interest on the Securities shall be paid in full; and, for the
purposes of such subrogation, no payments or distributions to the holders of the
Senior Indebtedness of any cash, property or securities to which the Holders of
the Securities or the Trustee would be entitled except for the provisions of
this Article XII, and
no payment over pursuant to the provisions of this Article XII, to
or for the benefit of the holders of Senior Indebtedness by Holders of the
Securities or the Trustee, shall, as between the Company, its creditors other
than holders of Senior Indebtedness, and the Holders of the Securities, be
deemed to be a payment by the Company to or on account of the Senior
Indebtedness; and no payments or distributions of cash, property or securities
to or for the benefit of the Holders of the Securities pursuant to the
subrogation provisions of this Article XII,
which would otherwise have been paid to the holders of Senior Indebtedness shall
be deemed to be a payment by the Company to or for the account of the
Securities.  It is understood that the provisions of this Article XII are and
are intended solely for the purposes of defining the relative rights of the
Holders of the Securities, on the one hand, and the holders of the Senior
Indebtedness, on the other hand.

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

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

     

    Upon any
payment or distribution of assets of the Company referred to in this Article XII, the
Trustee, subject to the provisions of Section 7.1, and
the Holders of the Securities shall be entitled to rely upon any order or decree
made by any court of competent jurisdiction in which such bankruptcy,
dissolution, winding-up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver, trustee in bankruptcy, liquidating trustee,
agent or other person making such payment or distribution, delivered to the
Trustee or to the Holders of the Securities, for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior
Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon and all other facts pertinent thereto or to this Article
XII.

     

    SECTION 12.4Authorization to Effect
Subordination.

     

    Each
Holder of a Security by the holder’s acceptance thereof authorizes and directs
the Trustee on the holder’s behalf to take such action as may be necessary or
appropriate to effectuate the subordination as provided in this Article XII and
appoints the Trustee to act as the holder’s attorney-in-fact for any and all
such purposes.  If the Trustee does not file a proper proof of claim
or proof of debt in the form required in any proceeding referred to in Section 6.3
hereof at least 30 days before the expiration of the time to file such
claim, the holders of any Senior Indebtedness or their representatives are
hereby authorized to file an appropriate claim for and on behalf of the Holders
of the Securities.

     

    SECTION 12.5Notice to Trustee.

     

    The
Company shall give prompt written notice in the form of an Officers’ Certificate
to a Responsible Officer of the Trustee and to any paying agent of any fact
known to the Company which would prohibit the making of any payment of monies to
or by the Trustee or any paying agent in respect of the Securities pursuant to
the provisions of this Article XII.  Notwithstanding
the provisions of this Article XII or
any other provision of this Subordinated Debt Indenture, the Trustee shall not
be charged with knowledge of the existence of any facts which would prohibit the
making of any payment of monies to or by the Trustee in respect of the
Securities pursuant to the provisions of this Article XII,
unless and until a Responsible Officer of the Trustee shall have received
written notice thereof at the Corporate Trust Office from the Company (in the
form of an Officers’ Certificate) or a Representative or a holder or holders of
Senior Indebtedness or from any trustee thereof; and before the receipt of any
such written notice, the Trustee, subject to the provisions of Section 7.1,
shall be entitled in all respects to assume that no such facts exist; provided
that if on a date not fewer than two Business Days prior to the date upon which
by the terms hereof any such monies may become payable for any purpose
(including, without limitation, the payment of the principal of or interest on
any Security) the Trustee shall not have received, with respect to such monies,
the notice provided for in this Section 12.5,
then, anything herein contained to the contrary notwithstanding, the Trustee
shall have full power and authority to receive such monies and to apply the same
to the purpose for which they were received, and shall not be affected by any
notice to the contrary which may be received by it on or after such prior
date.

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

     

    Notwithstanding
anything in this Article XII to
the contrary, nothing shall prevent any payment by the Trustee to the Holders of
monies deposited with it pursuant to Section 8.1, and
any such payment shall not be subject to the provisions of Section 12.1 or
12.2.

     

    The
Trustee, subject to the provisions of Section 7.1,
shall be entitled to rely on the delivery to it of a written notice by a
Representative or a person representing himself to be a holder of Senior
Indebtedness (or a trustee on behalf of such holder) to establish that such
notice has been given by a Representative or a holder of Senior Indebtedness or
a trustee on behalf of any such holder or holders.  In the event that
the Trustee determines in good faith that further evidence is required with
respect to the right of any person as a holder of Senior Indebtedness to
participate in any payment or distribution pursuant to this Article XII, the
Trustee may request such person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness held by such
person, the extent to which such person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
person under this Article XII, and
if such evidence is not furnished the Trustee may defer any payment to such
person pending judicial determination as to the right of such person to receive
such payment.

     

    SECTION 12.6Trustee’s Relation to Senior
Indebtedness.

     

    The
Trustee in its individual capacity shall be entitled to all the rights set forth
in this Article XII in
respect of any Senior Indebtedness at any time held by it, to the same extent as
any other holder of Senior Indebtedness, and nothing in Section 7.11 or
elsewhere in this Subordinated Debt Indenture shall deprive the Trustee of any
of its rights as such holder.

     

    With
respect to the holders of Senior Indebtedness, the Trustee undertakes to perform
or to observe only such of its covenants and obligations as are specifically set
forth in this Article XII, and
no implied covenants or obligations with respect to the holders of Senior
Indebtedness shall be read into this Subordinated Debt Indenture against the
Trustee.  The Trustee shall not be deemed to owe any fiduciary duty to
the holders of Senior Indebtedness and, subject to the provisions of Section 7.1, the
Trustee shall not be liable to any holder of Senior Indebtedness if it shall pay
over or deliver to Holders of Securities, the Company or any other person money
or assets to which any holder of Senior Indebtedness shall be entitled by virtue
of this Article XII or
otherwise.

     

    SECTION 12.7No
Impairment of Subordination.

     

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

     

    SECTION 12.8Article Applicable to Paying
Agents.

     

    If at any
time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article
shall (unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article in addition to or in
place of the Trustee; provided, however, that the first paragraph of Section 12.5
shall not apply to the Company or any Affiliate of the Company if it or such
Affiliate acts as Paying Agent.

     

    SECTION 12.9Senior Indebtedness Entitled to
Rely.

     

    The
holders of Senior Indebtedness (including, without limitation, Designated Senior
Indebtedness) shall have the right to rely upon this Article XII, and no
amendment or modification of the provisions contained herein shall diminish the
rights of such holders unless such holders shall have agreed in writing
thereto.

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

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

     

    
      
        
          	 
      	JAMES RIVER COAL
      COMPANY	 
      
	 	 	 
	 
      	
                  By: 
      

                	 
      	 
      
	 
      	 
      	
                  Name: 
      

                	 
      	 
      
	 
      	 
      	
                  Its:

                	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  Attest:

                	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  [TRUSTEE]

                
	 
      	 
      
	 
      	
                  By:

                	 
      	 
      
	 
      	 
      	
                  Name:

                	 
      	 
      
	 
      	 
      	
                  Its: 
      

                	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  Attest:

                	 
      	 
      

        

      

       

    

     

    39ex10-22.htm

    
      

    

    Exhibit
10.22

     

    
      INCENTIVE COMPENSATION
PLAN

      (Amended
June 2008)

      (Reviewed
8/09)

      

      The
Compensation philosophy of CharterBank’s Board of Directors is to pay a fair
base salary which meets the market from a competitive standpoint and to offer
at-risk incentive opportunities where employees can earn additional compensation
by attaining pre-determined goals on several levels, i.e., individual,
departmental and company-wide.  Base salary at CharterBank is governed
by the Salary Administration Plan.  The purpose of this document is to
detail the workings of the Incentive Compensation Plan.

      

      The
Incentive Compensation Plan provides for an incentive, based on performance as
measured by goal attainment from the Scorecard model, to be paid to employees
who are not paid on a commission basis.

      

      GOALS OF INCENTIVE
COMPENSATION PLAN

      

      The goals for the plan
are:

      

      
        	
                 
      

              	
                ●

              	
                To
      maximize long-term shareholder value by reinforcing achievement of key
      operating goal(s) as defined in business plan and commitment to
      achievement of long-term
objectives.

              

      

      

      
        	
                 
      

              	
                ●

              	
                Foster
      teamwork and cooperation, yet reinforce importance of individual
      performance.

              

      

      

      
        	
                 
      

              	
                ●

              	
                Reward
      measurable, demonstrated results and require a minimum level of
      performance before paying
incentives.

              

      

      

      General Definitions within
the Plan

      

      Full-time employees –
As defined in the current employee manual (usually those eligible for benefits
with work week averages of 38 1⁄2 hours).

      

      Part-time employees –
Employees who work less than full-time hours.  Part-time employees
participate in only the individual portion of the incentive plan. (See
Performance Measures and Weighting).

      

      Temporary employees –
Employees with a work classification equal to temporary (contract employees,
consultants, etc.).  Temporary employees are not eligible to
participate in the incentive plan.

      

      Retail Banking
Employees -  Effective June 2007, employees serving in the
Teller, Teller Operations Manager, or Personal Banker jobs will no longer
participate in this Plan.  This group of employees will have
individual opportunity via our marketing sales & referral plan.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ELIGIBILITY FOR INCENTIVE
COMPENSATION PLAN

      

      Full-time
employees are eligible to participate in all components of the incentive
compensation plan.  Incentives for full-time employees who have been
employed with CharterBank less than a full year will be handled as
follows:

      

      
        	
                 
      

              	
                (a)

              	
                Employees
      will become eligible to participate in the incentive plan based on their
      date of hire.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                If
      the employee starts work before the fiscal year is half over (before April
      1), they will participate in the incentive plan but their award will be
      prorated based on the amount of time they have been
    employed.

              

      

      

      
        	
                 
      

              	
                (c)

              	
                If
      the employee starts work after the year is half over (after April 1), they
      will not be eligible to participate in the Plan until the next fiscal
      year.

              

      

      

      
        	
                 
      

              	
                (d)

              	
                Part-time
      employees who work less than full-time hours participate in only the
      individual portion of the incentive plan (see performance measures and
      weighting).  Part-time employee participation, as outlined
      above, is also based on date of hire.  If a part-time employee
      is hired before the fiscal year is half over (before April 1), they will
      participate in the individual portion of the incentive plan.  If
      the employee is hired after the fiscal year is half over (after April 1),
      they are not eligible for participation until the next fiscal
      year.

              

      

      

      TARGET LEVELS OF INCENTIVE
COMPENSATION

      

      Target levels for incentive
compensation are based on a percentage of salary midpoint.  The target
levels will be set by CharterBank’s Board of Directors or the Personnel and
Compensation Committee thereof.  In so doing, the regulatory guidance
set forth in RB 27 will be considered.  Periodically, the P&C or
Board of Directors will review target award levels and provide a schedule that
sets forth annual and deferred opportunities for various individual employees
and groups within the company.

      

      INCENTIVE PLAN
ACTIVATORS

      

      Activators for incentive payments are
outlined in the corporate scorecard spreadsheet.  Since activators may
change as a result of strategic initiatives, there will be Board discretion as
to their definition.

      

      POSSIBLE AWARD
OPPORTUNITIES

      

      Award opportunities are summarized
within the corporate scorecard spreadsheet and approved annually by the Board of
Directors or Personnel & Compensation Committee.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      PERFORMANCE MEASURES AND
WEIGHTING

      

      The attainment levels determined by the
corporate scorecard spreadsheet will be used in the following proportions to
determine payments under the incentive compensation plan:

      

      Retail Banking
Division:

       

      
        	 	Regional
    goals	50% weight (paid
    annually)
	 	Individual
      goals	50% weight (paid
    annually)

      

       

      Support
Departments:

       

      
         

        
          	 	Company-wide
      goals	70% weight (paid
    annually)
	 	Departmental
      goals 	15% weight (paid
    annually)
	 	Individual
      goals	15% weight (paid
    annually)

        

      

      

      Company-wide
goals are determined by senior management and are aligned with profit-oriented
strategies.  Departmental and individual goals should align with
company-wide, or corporate goals.

      

      TIMING OF AWARD
PAYMENTS

      

      
        	
                 
      

              	
                ·

              	
                Award
      of individual incentives will take place annually after the finalization
      of business plan results.

              

      

      
        	
                 
      

              	
                ·

              	
                Company-wide
      and departmental incentives will be awarded annually after the close of
      the fiscal year.

              

      

      
        	
                 
      

              	
                ·

              	
                The
      annual portion of the award will be paid around November 15th.

              

      

      

      SPECIAL
CONSIDERATIONS

      

      
        	
                 
      

              	
                ·

              	
                An
      employee who leaves or is terminated prior to the award payment will
      forfeit all accrued and deferred
incentives.

              

      

      
        	
                 
      

              	
                ·

              	
                An
      employee who is promoted during a plan year will receive an award based on
      his salary midpoint at the beginning of the plan
  year.

              

      

      
        	
                 
      

              	
                ·

              	
                In
      case of normal or early retirement, any remaining deferred amounts will be
      paid out within 90 days.  For an employee to be eligible for
      payment under this scenario, one of the following must
    apply:

              

      

      

      
        	
                 
      

              	
                o

              	
                More
      than 5 years of employment and age 55 or
older.

              

      

      

      
        	
                 
      

              	
                o

              	
                Permanent
      disability of employee

              

      

      

      
        	
                 
      

              	
                o

              	
                Retirement
      is defined as permanent retirement (meaning no commitment to continued
      employment, either with CharterBank or other
      employers).  CharterBank reserves the right to make a
      determination as to whether or not a retirement is a bona fide retirement,
      thus constituting payment under our incentive
  plan.

              

      

      

      In the
event of death of the employee, payment will be rendered within 90 days to the
administrator of the employee’s estate.

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