Document:

EX-4.1

 

Exhibit 4.1

      

PEABODY ENERGY CORPORATION

Issuer

and

U.S. BANK NATIONAL ASSOCIATION

Trustee

 

SUBORDINATED

INDENTURE

 

Dated as of December 20, 2006

      

 

 

PEABODY ENERGY CORPORATION

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of December 20, 2006

	 	 	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	§310
	 	(a)(1)	 	6.09
	 
	 	(a)(2)	 	6.09
	 
	 	(a)(3)	 	Not Applicable
	 
	 	(a)(4)	 	Not Applicable
	 
	 	(b)	 	6.08
	 
	 	 	 	6.10
	§311
	 	(a)	 	6.13(a)
	 
	 	(b)	 	6.13(b)
	§312
	 	(a)	 	7.01
	 
	 	 	 	7.02(a)
	 
	 	(b)	 	7.02(b)
	 
	 	(c)	 	7.02(c)
	§313
	 	(a)	 	7.03(a)
	 
	 	(b)	 	7.03(b)
	 
	 	(c)	 	7.03(a)
	 
	 	 	 	7.03(b)
	 
	 	(d)	 	7.03(c)
	§314
	 	(a)	 	7.04
	 
	 	(c)(1)	 	1.02
	 
	 	(c)(2)	 	1.02
	 
	 	(c)(3)	 	Not Applicable
	 
	 	(d)	 	Not Applicable
	 
	 	(e)	 	1.02
	§315
	 	(a)	 	6.01(a)
	 
	 	(b)	 	6.02
	 
	 	(c)	 	6.01(b)
	 
	 	(d)	 	6.01(c)
	 
	 	(d)(1)	 	6.01(c)
	 
	 	(d)(2)	 	6.01(c)(2)
	 
	 	(d)(3)	 	6.01(c)(3)
	 
	 	(e)	 	5.09
	§316
	 	(a)	 	5.08
	 
	 	(a)(1)(A)	 	5.08
	 
	 	(a)(1)(B)	 	5.02
	 
	 	 	 	5.08
	 
	 	(a)(2)	 	Not Applicable
	 
	 	(b)	 	5.05
	§317
	 	(a)(1)	 	5.03
	 
	 	(a)(2)	 	5.03
	 
	 	(b)	 	10.03
	§318
	 	(a)	 	1.07

 

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

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	“Act”
	 	 	2	 
	“Affiliate”
	 	 	2	 
	“Authenticating Agent”
	 	 	2	 
	“Blockage Notice”
	 	 	2	 
	“Board of Directors”
	 	 	2	 
	“Board Resolution”
	 	 	2	 
	“Business Day”
	 	 	2	 
	“Capital Stock”
	 	 	2	 
	“Commission”
	 	 	2	 
	“Company”
	 	 	2	 
	“Company Request” and “Company Order”
	 	 	2	 
	“Corporate Trust Office”
	 	 	3	 
	“Covenant Defeasance Option”
	 	 	3	 
	“Default”
	 	 	3	 
	“Defaulted Interest”
	 	 	3	 
	“Designated Senior Indebtedness”
	 	 	3	 
	“Discharged”
	 	 	3	 
	“Eligible Guarantors”
	 	 	3	 
	“Equity Interests”
	 	 	3	 
	“Event of Default”
	 	 	3	 
	“Exchange Act”
	 	 	3	 
	“Global Security”
	 	 	3	 
	“Guarantee”
	 	 	3	 
	“Guarantee Blockage Notice”
	 	 	3	 
	“Guarantee Payment Blockage Period”
	 	 	3	 
	“Guarantor Payment Default”
	 	 	3	 
	“Guarantor”
	 	 	4	 
	“Hedging Obligations”
	 	 	4	 
	“Holder”
	 	 	4	 
	“Indenture”
	 	 	4	 
	“interest”
	 	 	4	 
	“Interest Payment Date”
	 	 	4	 
	“Legal Defeasance Option”
	 	 	4	 
	“Maturity”
	 	 	4	 
	“Non-Guarantor Payment Default”
	 	 	4	 
	“Non-Payment Default”
	 	 	4	 
	“Officer”
	 	 	4	 
	“Officers’ Certificate”
	 	 	4	 
	“Opinion of Counsel”
	 	 	5	 

i

 

	 	 	 	 	 
	 	 	Page
	“Original Issue Discount Security”
	 	 	5	 
	“Outstanding”
	 	 	5	 
	“pay its Guarantee”
	 	 	6	 
	“pay the Securities”
	 	 	6	 
	“Paying Agent”
	 	 	6	 
	“Payment Blockage Period”
	 	 	6	 
	“Payment Default”
	 	 	6	 
	“Person”
	 	 	6	 
	“Permitted Junior Securities”
	 	 	6	 
	“Redemption Date”
	 	 	6	 
	“Redemption Price”
	 	 	6	 
	“Responsible Officer”
	 	 	7	 
	“Representative”
	 	 	7	 
	“Securities”
	 	 	7	 
	“Security Register” and “Security Registrar”
	 	 	7	 
	“Senior Credit Facilities”
	 	 	7	 
	“Senior Indebtedness”
	 	 	7	 
	“Senior Notes”
	 	 	8	 
	“Senior Subordinated Indebtedness”
	 	 	8	 
	“Significant Subsidiary”
	 	 	8	 
	“Special Record Date”
	 	 	9	 
	“Stated Maturity”
	 	 	9	 
	“Subordinated Indebtedness”
	 	 	9	 
	“Subsidiary”
	 	 	9	 
	“Trustee”
	 	 	9	 
	“Trust Indenture Act”
	 	 	9	 
	“United States”
	 	 	9	 
	“U.S. Depositary”
	 	 	9	 
	“U.S. Government Obligations”
	 	 	9	 
	“Voting Stock”
	 	 	10	 
	“Yield to Maturity”
	 	 	10	 
	SECTION 1.02. Acts of Holders
	 	 	10	 
	 
	 	 	 	 
	ARTICLE TWO SECURITY FORMS
	 	 	11	 
	 
	 	 	 	 
	SECTION 2.01. Forms Generally
	 	 	11	 
	SECTION 2.02. Form of Trustee’s Certificate of Authentication
	 	 	11	 
	SECTION 2.03. Securities in Global Form
	 	 	11	 
	 
	 	 	 	 
	ARTICLE THREE THE SECURITIES
	 	 	12	 
	 
	 	 	 	 
	SECTION 3.01. Amount Unlimited; Issuable in Series
	 	 	12	 
	SECTION 3.02. Denominations
	 	 	14	 
	SECTION 3.03. Authentication and Dating
	 	 	14	 

ii

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.04. Execution of Securities
	 	 	15	 
	SECTION 3.05. Exchange and Registration of Transfer of Securities
	 	 	15	 
	SECTION 3.06. Mutilated, Destroyed, Lost or Stolen Securities
	 	 	16	 
	SECTION 3.07. Temporary Securities
	 	 	16	 
	SECTION 3.08. Payment of Interest; Interest Rights Preserved
	 	 	18	 
	SECTION 3.09. Persons Deemed Owners
	 	 	20	 
	SECTION 3.10. Cancellation
	 	 	20	 
	SECTION 3.11. Computation of Interest
	 	 	20	 
	SECTION 3.12. CUSIP Numbers
	 	 	20	 
	 
	 	 	 	 
	ARTICLE FOUR SATISFACTION AND DISCHARGE
	 	 	20	 
	 
	 	 	 	 
	SECTION 4.01. Satisfaction and Discharge of Indenture
	 	 	20	 
	SECTION 4.02. Application of Trust Money
	 	 	21	 
	 
	 	 	 	 
	ARTICLE FIVE REMEDIES
	 	 	22	 
	 
	 	 	 	 
	SECTION 5.01. Events of Default
	 	 	22	 
	SECTION 5.02. Acceleration of Maturity; Rescission and Annulment
	 	 	23	 
	SECTION 5.03. Payment of Securities on Default; Suit Therefor
	 	 	24	 
	SECTION 5.04. Application of Moneys Collected by Trustee
	 	 	26	 
	SECTION 5.05. Proceedings by Holders
	 	 	27	 
	SECTION 5.06. Proceedings by Trustee
	 	 	27	 
	SECTION 5.07. Remedies Cumulative and Continuing
	 	 	27	 
	SECTION 5.08. Direction of Proceedings and Waiver of Defaults by Majority of Holders
	 	 	28	 
	SECTION 5.09. Undertaking to Pay Costs
	 	 	28	 
	 
	 	 	 	 
	ARTICLE SIX THE TRUSTEE
	 	 	29	 
	 
	 	 	 	 
	SECTION 6.01. Certain Duties and Responsibilities
	 	 	29	 
	SECTION 6.02. Notice of Defaults
	 	 	30	 
	SECTION 6.03. Certain Rights of Trustee
	 	 	30	 
	SECTION 6.04. Not Responsible for Recitals or Issuance of Securities
	 	 	31	 
	SECTION 6.05. May Hold Securities
	 	 	32	 
	SECTION 6.06. Money Held in Trust
	 	 	32	 
	SECTION 6.07. Compensation and Reimbursement
	 	 	32	 
	SECTION 6.08. Disqualification; Conflicting Interests
	 	 	33	 
	SECTION 6.09. Corporate Trustee Required; Eligibility
	 	 	33	 
	SECTION 6.10. Resignation and Removal; Appointment of Successor
	 	 	34	 
	SECTION 6.11. Acceptance of Appointment by Successor
	 	 	35	 
	SECTION 6.12. Merger, Conversion, Consolidation or Succession to Business
	 	 	36	 
	SECTION 6.13. Preferential Collection of Claims Against Company
	 	 	36	 
	SECTION 6.14. Appointment of Authenticating Agent
	 	 	40	 

iii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE SEVEN HOLDER’S LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	41	 
	 
	 	 	 	 
	SECTION 7.01. Company to Furnish Trustee Names and Addresses of Holders
	 	 	41	 
	SECTION 7.02. Preservation of Information; Communications to Holders
	 	 	42	 
	SECTION 7.03. Reports by Trustee
	 	 	43	 
	SECTION 7.04. Reports by Company
	 	 	44	 
	 
	 	 	 	 
	ARTICLE EIGHT CONSOLIDATION, MERGER, SALE, CONVEYANCE OR LEASE
	 	 	45	 
	 
	 	 	 	 
	SECTION
8.01. Consolidations and Mergers of Company and Conveyances Permitted Subject to Certain Conditions
	 	 	45	 
	SECTION 8.02. Rights and Duties of Successor Corporation
	 	 	45	 
	SECTION 8.03. Officers’ Certificate and Opinion of Counsel
	 	 	46	 
	 
	 	 	 	 
	ARTICLE NINE SUPPLEMENTAL INDENTURES
	 	 	46	 
	 
	 	 	 	 
	SECTION 9.01. Supplemental Indentures without Consent of Holders
	 	 	46	 
	SECTION 9.02. Supplemental Indentures with Consent of Holders
	 	 	48	 
	SECTION 9.03. Compliance with Trust Indenture Act; Effect of Supplemental Indentures
	 	 	49	 
	SECTION 9.04. Notation on Securities
	 	 	49	 
	SECTION 9.05. Evidence of Compliance of Supplemental Indenture to be Furnished Trustee
	 	 	49	 
	 
	 	 	 	 
	ARTICLE TEN COVENANTS
	 	 	50	 
	 
	 	 	 	 
	SECTION 10.01. Payment of Principal and Interest
	 	 	50	 
	SECTION 10.02. Maintenance of Office or Agency
	 	 	50	 
	SECTION 10.03. Money for Security Payments to be Held in Trust
	 	 	50	 
	SECTION 10.04. Payment of Taxes and Other Claims
	 	 	51	 
	SECTION 10.05. Maintenance of Properties
	 	 	52	 
	SECTION 10.06. Statement as to Default
	 	 	52	 
	SECTION 10.07. Corporate Existence
	 	 	52	 
	SECTION 10.08. Waiver of Certain Covenants
	 	 	52	 
	SECTION 10.09. Calculation of Original Issue Discount
	 	 	53	 
	SECTION 10.10. Reports.
	 	 	53	 
	 
	 	 	 	 
	ARTICLE ELEVEN REDEMPTION OF SECURITIES
	 	 	53	 
	 
	 	 	 	 
	SECTION 11.01. Applicability of Article
	 	 	53	 
	SECTION 11.02. Notice of Redemption; Selection of Securities
	 	 	53	 
	SECTION 11.03. Payment of Securities Called for Redemption
	 	 	54	 

iv

 

	 	 	 	 	 
	 	 	Page
	ARTICLE TWELVE SINKING FUNDS
	 	 	55	 
	 
	 	 	 	 
	SECTION 12.01. Applicability of Article
	 	 	55	 
	SECTION 12.02. Satisfaction of Mandatory Sinking Fund Payments with Securities
	 	 	55	 
	SECTION 12.03. Redemption of Securities for Sinking Fund
	 	 	55	 
	 
	 	 	 	 
	ARTICLE THIRTEEN DEFEASANCE
	 	 	56	 
	 
	 	 	 	 
	SECTION 13.01. Applicability of Article
	 	 	57	 
	SECTION 13.02. Defeasance Upon Deposit of Moneys or U.S. Government Obligations
	 	 	57	 
	SECTION 13.03. Deposited Moneys and U.S. Government Obligations to Be Held in Trust
	 	 	58	 
	SECTION 13.04. Repayment to Company
	 	 	58	 
	 
	 	 	 	 
	ARTICLE FOURTEEN SUBORDINATION
	 	 	59	 
	 
	 	 	 	 
	SECTION 14.01. Agreement to Subordinate
	 	 	59	 
	SECTION 14.02. Liquidation, Dissolution, Bankruptcy
	 	 	59	 
	SECTION 14.03. Default on Senior Indebtedness of the Company
	 	 	59	 
	SECTION 14.04. Acceleration of Payment of Securities
	 	 	61	 
	SECTION 14.05. When Distribution Must Be Paid Over
	 	 	61	 
	SECTION 14.06. Subrogation
	 	 	61	 
	SECTION 14.07. Relative Rights
	 	 	61	 
	SECTION 14.08. Subordination May Not Be Impaired by Company
	 	 	61	 
	SECTION 14.09. Rights of Trustee and Paying Agent
	 	 	62	 
	SECTION 14.10. Distribution or Notice to Representative
	 	 	62	 
	SECTION 14.11. Article Fourteen Not to Prevent Events of Default or Limit Right to Accelerate
	 	 	62	 
	SECTION 14.12. Trust Moneys Not Subordinated
	 	 	62	 
	SECTION 14.13. Trustee Entitled to Rely
	 	 	62	 
	SECTION 14.14. Trustee to Effectuate Subordination
	 	 	63	 
	SECTION 14.15. Trustee Not Fiduciary for Holders of Senior Indebtedness of the Company
	 	 	63	 
	SECTION 14.16. Reliance by Holders of Senior Indebtedness of the Company on Subordination Provisions
	 	 	63	 
	SECTION 14.17. Defeasance
	 	 	64	 
	 
	 	 	 	 
	ARTICLE FIFTEEN GUARANTEES
	 	 	64	 
	 
	 	 	 	 
	SECTION 15.01. Applicability of Article
	 	 	64	 
	SECTION 15.02. Guarantee
	 	 	64	 
	SECTION 15.03. Obligations of the Guarantor Unconditional
	 	 	65	 
	SECTION 15.04. Article Fifteen Not To Prevent Events of Default
	 	 	66	 
	SECTION 15.05. Execution and Delivery of Guarantee
	 	 	66	 

v

 

	 	 	 	 	 
	 	 	Page
	ARTICLE SIXTEEN SUBORDINATION OF GUARANTEES
	 	 	66	 
	 
	 	 	 	 
	SECTION 16.01. Agreement to Subordinate
	 	 	66	 
	SECTION 16.02. Liquidation, Dissolution, Bankruptcy
	 	 	67	 
	SECTION 16.03. Default on Senior Indebtedness of a Guarantor
	 	 	67	 
	SECTION 16.04. Demand for Payment
	 	 	68	 
	SECTION 16.05. When Distribution Must Be Paid Over
	 	 	69	 
	SECTION 16.06. Subrogation
	 	 	69	 
	SECTION 16.07. Relative Rights
	 	 	69	 
	SECTION 16.08. Subordination May Not Be Impaired by a Guarantor
	 	 	69	 
	SECTION 16.09. Rights of Trustee and Paying Agent
	 	 	69	 
	SECTION 16.10. Distribution or Notice to Representative
	 	 	70	 
	SECTION 16.11. Article Sixteen Not to Prevent Events of Default or Limit Right to Demand Payment
	 	 	70	 
	SECTION 16.12. Trust Moneys Not Subordinated
	 	 	70	 
	SECTION 16.13. Trustee Entitled to Rely
	 	 	70	 
	SECTION 16.14. Trustee to Effectuate Subordination
	 	 	71	 
	SECTION 16.15. Trustee Not Fiduciary for Holders of Senior Indebtedness of Guarantors
	 	 	71	 
	SECTION 16.16. Reliance by Holders of Senior Indebtedness of a Guarantor on Subordination Provisions
	 	 	71	 
	 
	 	 	 	 
	ARTICLE SEVENTEEN MISCELLANEOUS
	 	 	71	 
	 
	 	 	 	 
	SECTION 17.01. Form of Documents Delivered to Trustee
	 	 	71	 
	SECTION 17.02. Notices
	 	 	72	 
	SECTION 17.03. Notice to Holders; Waiver
	 	 	73	 
	SECTION 17.04. Trust Indenture Act Controls
	 	 	74	 
	SECTION 17.05. Certificate and Opinion as to Conditions Precedent
	 	 	74	 
	SECTION 17.06. Statements Required in Certificate or Opinion
	 	 	74	 
	SECTION 17.07. Table of Contents, Headings, etc.
	 	 	75	 
	SECTION 17.08. Successors and Assigns
	 	 	75	 
	SECTION 17.09. Separability Clause
	 	 	75	 
	SECTION 17.10. Benefits of Indenture
	 	 	75	 
	SECTION 17.11. Rules by Trustee and Agents
	 	 	75	 
	SECTION 17.12. No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	75	 
	SECTION 17.13. Governing Law
	 	 	75	 
	SECTION 17.14. Legal Holidays
	 	 	76	 
	SECTION 17.15. Indenture and Securities Solely Corporate Obligations
	 	 	76	 
	SECTION 17.16. No Security Interest Created
	 	 	76	 
	SECTION 17.17. Counterpart Originals
	 	 	76	 
	SECTION 17.18. No Adverse Interpretation of Other Agreements
	 	 	76	 

vi

 

	 	 	 	 	 
	 	 	Page	 
	Exhibit A Form of Subordinated Security
	 	 	 	 
	Exhibit B Form of Guarantee
	 	 	 	 

vii

 

     INDENTURE, dated as of December 20, 2006 between Peabody Energy Corporation, a Delaware
corporation (hereinafter called the “Company”), and U.S. Bank National Association, as Trustee (the
“Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness to be issued in one or more series (the “Securities”), as in this Indenture provided,
up to such principal amount or amounts as may from time to time be authorized in or pursuant to one
or more Board Resolutions; and

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE ONE   

Definitions and Other Provisions

of General Application

     SECTION 1.01. Definitions.

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

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

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

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

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

     Certain terms, used principally in Article Six, are defined in that Article.

 

 

2

     “Act” when used with respect to any Holder has the meaning specified in Section 1.02.

     “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
“controlling,” “controlled by” and “under common control with”) when used with respect to any
specified Person means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by agreement or otherwise; provided
that beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be
control.

     “Authenticating Agent” means any authenticating agent appointed by the Trustee pursuant to
Section 6.14.

     “Blockage Notice” has the meaning specified in Section 14.03.

     “Board of Directors” means the board of directors of the Company or any duly authorized
committee of that board or any director or directors and/or officer or officers of the Company to
whom that board or committee shall have duly delegated its authority.

     “Board Resolution” means (1) a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, or (2) a certificate signed by the director or
directors and/or officer or officers to whom the Board of Directors or any duly authorized
committee of that board shall have duly delegated its authority, in each case delivered to the
Trustee for the Securities of any series.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in The City of New York are authorized or required by law or
executive order to be closed.

     “Capital Stock”
means (i) in the case of a corporation, corporate stock, (ii) in the case of an association or
business entity, any and all shares, interests, participations, rights or other equivalents
(however designated) of corporate stock, (iii) in the case of a partnership or limited liability
company, partnership or membership interests (whether general or limited) and (iv) any other
interest or participation that confers on a Person the right to receive a share of the profits and
losses of, or distributions of assets of, the issuing Person.

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

     “Company” means Peabody Energy Corporation, and any and all successors thereto.

     “Company Request” and “Company Order” mean, respectively, a written request or order signed in
the name of the Company by the Chairman of the Board, the President or a Vice President (any
reference to a Vice President of the Company herein shall be deemed to include

 

3

any Vice President
of the Company whether or not designated by a number or a word or words added before or after the
title “Vice President”), and by the Chief Financial Officer, Treasurer, an Assistant Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.

     “Corporate Trust Office” of the Trustee means the corporate trust office of the Trustee at
which at any particular time its administration of this Indenture shall be principally
administered, which office as of the date hereof is located at Goodwin Square, 225 Asylum Street,
Hartford, Connecticut 06103, Attention: Corporate Trust Services.

     “Covenant Defeasance Option” has the meaning specified in Section 13.02.

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

     “Defaulted Interest” has the meaning specified in Section 3.08.

     “Designated Senior Indebtedness” means:

     (1) any indebtedness outstanding under the Senior Credit Facilities; and

     (2) any other Senior Indebtedness permitted under this Indenture, the principal amount
of which is $25 million or more and that has been designated by the Company as “Designated
Senior Indebtedness.”

     “Discharged” has the meaning specified in Section 13.02.

     “Eligible Guarantors” means the Company’s domestic Subsidiaries.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

     “Event of Default” has the meaning specified in Article Five.

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

     “Global Security” means a Security evidencing all or part of a series of Securities,
including, without limitation, any temporary or permanent Global Securities.

     “Guarantee” has the meaning specified in Section 15.02.

     “Guarantee Blockage Notice” has the meaning specified in Section 16.03.

     “Guarantee Payment Blockage Period” has the meaning specified in Section 16.03.

     “Guarantor Payment Default” has the meaning specified in Section 16.03.

 

4

     “Guarantor” has the meaning specified in Section 3.01.

     “Hedging Obligations” means, with respect to any Person, the obligations of such Person under
(i) currency exchange, interest rate or commodity swap agreements, currency exchange, interest rate
or commodity cap agreements and currency exchange, interest rate or commodity collar agreements and
(ii) other agreements or arrangements designed to protect such Person against fluctuations in
currency exchange, interest rates or commodity prices, in each case for the purpose of risk
management and not for speculation.

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

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, and shall include the form and terms of particular series of
Securities established as contemplated hereunder; provided, however, that if at any time more than
one Person is acting as Trustee under this instrument, “Indenture” shall mean with respect to any
one or more series of Securities for which such Person is Trustee, this instrument as originally
executed or as it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the
terms of particular series of Securities for which such person is Trustee established as
contemplated by Section 3.01, exclusive, however, of any provisions or terms which relate solely to
other series of Securities for which such Person is not Trustee, regardless of when such terms or
provisions were adopted, and exclusive of any provisions or terms adopted by means of one or more
indentures supplemental hereto executed and delivered after such Person had become such Trustee but
to which such Person, as such Trustee, was not a party.

     “interest” when used with respect to non-interest bearing Securities means interest payable
after Maturity.

     “Interest Payment Date” means the Stated Maturity of an installment of interest on the
Security (in the case of an interest-bearing Security).

     “Legal Defeasance Option” has the meaning specified in Section 13.02.

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

     “Non-Guarantor
Payment Default” has the meaning specified in
Section 16.03.

     “Non-Payment Default” has the meaning specified in Section 14.03.

     “Officer” of the Company means the Chairman of the Board, the Chief Executive Officer, the
President, the Chief Financial Officer, the Treasurer, the Controller, any Vice President or the
Secretary of the Company.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the President
or a Vice President, and by the Chief Financial Officer, the Treasurer, an Assistant

 

5

Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel who is reasonably acceptable to the
Trustee, who may (except as otherwise expressly provided in this Indenture) be counsel for the
Company. The counsel may be an employee of or counsel to the Company, any Subsidiary of the
Company or the Trustee.

     “Original Issue Discount Security” means any Security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
maturity thereof pursuant to Section 5.02.

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

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

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

     (iii) Securities in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to this Indenture;

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

     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 an Original Issue Discount Security that shall be deemed to be Outstanding for
such purpose 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 the acceleration of the maturity thereof pursuant
to Section 5.02.

 

6

     “pay
its Guarantee” has the meaning specified in
Section 16.03.

     “pay the Securities” has the meaning specified in Section 14.03.

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

     “Payment Blockage Period”
has the meaning specified in Section 14.03.

     “Payment Default” has the meaning specified in Section 14.03.

     “Person” means any individual, corporation, limited liability company, partnership, joint
venture, association, joint-stock company, trust, estate, unincorporated organization or government
or any agency or political subdivision thereof, and shall include any syndicate or group that would
be deemed to be a person under Section 13(d)(3) of the Exchange Act.

     “Permitted Junior Securities” means:

     (1) Equity Interests in the Company, any Guarantor or any direct or indirect parent of
the Company; or

     (2) unsecured debt securities that are subordinated to all Senior Indebtedness (and any
debt securities issued in exchange for Senior Indebtedness) to substantially the same extent
as, or to a greater extent than, the Securities and the related Guarantees are subordinated
to Senior Indebtedness under this Indenture;

provided that the term “Permitted Junior Securities” shall not include any securities distributed
pursuant to a plan of reorganization if the indebtedness under the Senior Credit Facilities is
treated as part of the same class as the Securities for purposes of such plan of reorganization;
provided further that to the extent that any Senior Indebtedness of the Company or the Guarantors
outstanding on the date of consummation of any such plan of reorganization is not paid in full in
cash on such date, the holders of any such Senior Indebtedness not so paid in full in cash shall
have consented to the terms of such plan of reorganization.

     “Redemption Date” when used with respect to any Security to be redeemed means the date fixed
for such redemption by or pursuant to the Board Resolution or supplemental indenture establishing
the series of Securities of which the Security to be redeemed is a member.

     “Redemption Price” when used with respect to any Security to be redeemed means the price at
which it is to be redeemed pursuant to the Board Resolution or supplemental indenture establishing
the series of Securities of which the Security to be redeemed is a member.

     “Regular Record Date”
for the interest payable on any Interest Payment Date (in the case of an interest-bearing
Security) means such date or dates as may be fixed for such purpose in the Board Resolution or
supplemental indenture establishing the series of Securities of which the Security is a member.

 

7

     “Responsible Officer” when used with respect to the Trustee means any officer in the Corporate
Trust Office of the Trustee and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of such officer’s knowledge of and
familiarity with the particular subject.

     “Representative” means any trustee, agent or representative (if any) for an issue of Senior
Indebtedness of the Company.

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture; provided,
however, that if at any time there is more than one Person acting as Trustee under this instrument,
“Securities” with respect to the Indenture as to which such Person is Trustee shall have the
meaning stated in the first recital of this instrument and shall more particularly mean Securities
authenticated and delivered under this instrument, exclusive, however of Securities of any series
as to which such Person is not Trustee.

     “Security Register” and “Security Registrar”, have the meanings specified in Section 3.05.

     “Senior Credit Facilities” means with respect to the Company, one or more debt facilities or
commercial paper facilities with banks or other institutional lenders providing for revolving
credit loans, term loans, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders against such receivables)
or letters of credit, in each case, as amended, restated, amended and restated, modified,
supplemented, renewed, refunded, replaced, refinanced, repaid or restructured in whole or in part
from time to time.

     “Senior Indebtedness” means:

     (1) all indebtedness of the Company or any Guarantor outstanding under the Senior
Credit Facilities or Senior Notes and related Guarantees (including interest accruing on or
after the filing of any petition in bankruptcy or similar proceeding or for
reorganization of the Company or any Guarantor (at the rate provided for in the
documentation with respect thereto, regardless of whether or not a claim for post filing
interest is allowed in such proceedings)), and any and all other fees, expense reimbursement
obligations, indemnification amounts, penalties, and other amounts (whether existing on the
date of issuance of the Securities or thereafter created or incurred) and all obligations of
the Company or any Guarantor to reimburse any bank or other Person in respect of amounts
paid under letters of credit, acceptances or other similar instruments;

     (2) all Hedging Obligations (and guarantees thereof) owing to a Lender (as defined in
the Senior Credit Facilities) or any Affiliate of such Lender (or any Person that was a
Lender or an Affiliate of such Lender at the time the applicable agreement giving rise to
such Hedging Obligation was entered into), provided that such Hedging Obligations are
permitted to be incurred under the terms of this Indenture;

 

8

     (3) any other indebtedness of the Company or Guarantor permitted to be incurred under
the terms of this Indenture, unless the instrument under which such indebtedness is incurred
expressly provides that it is on a parity with or subordinated in right of payment to the
Securities or any related Guarantee; and

     (4) all obligations with respect to the items listed in the preceding clauses (1), (2)
and (3);

provided, however, that Senior Indebtedness shall not include:

     (a) any obligation of such Person to the Company or any of its Subsidiaries;

     (b) any liability for federal, state, local or other taxes owed or owing by
such Person;

     (c) any accounts payable or other liability to trade creditors arising in the
ordinary course of business;

     (d) any indebtedness or other obligation of such Person which is subordinate or
junior in any respect to any other indebtedness or other obligation of such Person;
or

     (e) that portion of any indebtedness which at the time of incurrence is
incurred in violation of this Indenture or the indentures governing the Senior
Notes; provided, however that such indebtedness shall be deemed not to have been
incurred in violation of this Indenture for purposes of this clause if such
indebtedness consists of Designated Senior Indebtedness, and the holder(s) of such
indebtedness or their agent or representative (a) had no actual knowledge at the
time of incurrence that the incurrence of such indebtedness violated this Indenture
and (b) shall have received a certificate from an officer of the Company to the
effect that the incurrence of such indebtedness does not violate the provisions of
this Indenture.

     “Senior Notes” means the Company’s 6 7/8% Senior Notes due 2013 and 5 7/8% Senior Notes due
2016.

     “Senior Subordinated Indebtedness” means:

     (1) with respect to the Company, indebtedness which ranks equal in right of payment to
the Securities issued by the Company; and

     (2) with respect to any Guarantor, indebtedness which ranks equal in right of payment
to the Guarantee of such entity of Securities.

     “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article One, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as
such Regulation is in effect on the date of this Indenture.

 

9

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.08.

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

“Subordinated Indebtedness” means, with respect to the Notes,

     (1) any indebtedness of the Company which is by its terms subordinated in right of
payment to the Securities, and

     (2) any indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the Guarantee of such entity of the Securities.

     “Subsidiary” means, with respect to any Person, (i) any corporation, association or other
business entity of which more than 50% of the outstanding voting stock is owned, directly or
indirectly, by the Company or by one or more Subsidiaries, or by the Company and one or more
Subsidiaries and (ii) any partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are such Person or of one or more Subsidiaries of such Person (or any combination thereof).
For the purposes of this definition only, “voting stock” means stock which ordinarily has voting
power for the election of directors, whether at all times or only so long as no senior class of
stock has such voting power by reason of any contingency.

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

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended by the Trust Indenture
Reform Act of 1990, as in force and effect at the date as of which this instrument was executed,
except as provided in Section 9.03.

     “United States” means the United States excluding its territories and possessions.

     “U.S. Depositary” means a clearing agency registered under the Securities Exchange Act of
1934, as amended, or any successor thereto, which shall in either case be designated by the
Corporation pursuant to Section 3.01, until a successor U.S. Depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “U.S. Depositary” shall
mean or include each Person who is then a U.S. Depositary hereunder, and if at any time there is
more than one such Person, “U.S. Depositary” as used with respect to the Securities of any series
shall mean the U.S. Depositary with respect to the Securities of that series.

     “U.S. Government Obligations” has the meaning specified in Section 13.02.

 

10

     “Voting Stock” of a corporation means stock of the class or classes having general voting
power under ordinary circumstances to elect at least a majority of the board of directors, managers
or trustees of such corporation (irrespective of whether or not at the time stock of any other
class or classes shall have or might have voting power by reason of the happening of any
contingency).

     “Yield to Maturity”
means the yield to maturity, calculated at the time of issuance of a series of Securities or,
if applicable, at the most recent redetermination of interest on such series and calculated in
accordance with accepted financial practice.

     SECTION 1.02. Acts of Holders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee, and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 6.01) conclusive in favor of the Trustee and the Company and any agent of the Trustee or
the Company, if made in the manner provided in this Section.

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

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

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

 

11

ARTICLE TWO   

Security Forms

     SECTION 2.01. Forms Generally. The Securities of each series shall be in substantially in the form of Exhibit A hereto, in
each case with such appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be required to comply with
any law or with any rules made pursuant thereto or with any rules of any securities exchange or as
may, consistently herewith, be determined by the officers executing such Securities, as evidenced
by their execution of the Securities.

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

     SECTION 2.02. Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of
authentication on all Securities shall be in substantially the following form:

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

	 	 	 	 	 	 	 
	 

	 	 	 	U.S. Bank National Association,

     as Trustee	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 

     SECTION 2.03. Securities in Global Form. If any Security of a series is issuable in global
form, such Global Security may provide that it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and may also provide that the aggregate amount of
Outstanding Securities represented thereby may from time to time be reduced to reflect exchanges.
Any endorsement of a Global Security to reflect the amount, or any increase or decrease in the
amount, of Outstanding Securities represented thereby shall be made by the Trustee and in such
manner as shall be specified in such Global Security. Any instructions by the Company with respect
to a Global Security, after its initial issuance, shall be in writing but need not comply with
Sections 17.05 or 17.06.

     None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.

 

12

ARTICLE THREE   

The Securities

     SECTION 3.01. Amount Unlimited; Issuable in Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution or established in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series,

     (1) the title of the Securities of the series, including CUSIP Numbers (which shall
distinguish the Securities of the series from all other Securities);

     (2) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 3.05, 3.06, 3.07, 9.04 or 11.03);

     (3) the date or dates on which the principal and premium, if any, of the Securities of
the series is payable;

     (4) the rate or rates at which the Securities of the series shall bear interest, or the
method by which such rate or rates shall be determined, if any, the date or dates from which
such interest shall accrue, or the method by which such date or dates shall be determined,
the interest payment dates on which such interest shall be payable and the record dates for
the determination of Holders to whom interest is payable;

     (5) the place or places, if any, in addition to or instead of the Corporate Trust
Office of the Trustee, where the principal of (and premium, if any) and interest on
Securities of the series shall be payable; the extent to which, or the manner in which, any
interest payable on any Global Security on an Interest Payment Date will be paid, if other
than in the manner provided in Section 3.08; and the manner in which any principal of, or
premium, if any, on, any Global Security will be paid, if other than as set forth elsewhere
herein;

     (6) the price or prices at which, the period or periods within which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the
option of the Company, pursuant to any sinking fund or otherwise;

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

 

13

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

     (9) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the
maturity thereof pursuant to Section 5.02 or provable in bankruptcy pursuant to Section
5.03;

     (10) any Events of Default with respect to the Securities of a particular series, if
not set forth herein or if other than as set forth herein;

     (11) the extent to which the defeasance provisions of this Indenture do not apply to
the Securities of the series;

     (12) whether the Securities of the series shall be issued in whole or in part in the
form of one or more Global Securities and, in such case, the U.S. Depositary for such Global
Security or Securities; the manner in which and the circumstances under which Global
Securities representing Securities of the series may be exchanged for Securities in
definitive form, if other than, or in addition to, the manner and circumstances specified in
Section 3.07;

     (13) the ranking of the Securities of such series, if other than on a parity with all
other unsecured, unsubordinated indebtedness of the Company;

     (14) provisions, if any, with regard to the conversion or exchange of the Securities of
such series, at the option of the Holders thereof or the Company, as the case may be, for or
into new Securities of a different series or common stock or other securities of the
Company;

     (15) which, if any, of the Eligible Guarantors shall guarantee the Securities on the
terms set forth in Article Fifteen (each of the Eligible Guarantors that guarantee the Debt
Securities set forth in Article Fifteen, if any, a “Guarantor”);

     (16) the ranking of the obligations of each Guarantor under its respective Guarantee,
if other than on parity with all other unsecured, unsubordinated indebtedness of such
Guarantor;

     (17) any trustees, depositaries, authenticating or paying agents, transfer agents or
registrars or any other agents with respect to the Securities of such series; and

     (18) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture).

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to such resolution of the Board of Directors
or in any such indenture supplemental hereto.

 

14

     SECTION 3.02. Denominations. The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 3.01. In the absence of any such
specification with respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 and any integral multiple thereof.

     SECTION 3.03. Authentication and Dating. At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of any series executed
by the Company to the Trustee for authentication. Except as otherwise provided in this Article
Three, the Trustee shall thereupon authenticate and deliver said Securities to or upon a Company
Order, signed by two Officers of the Company by manual or facsimile signature. In authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall receive, and (subject to Section 6.01) shall be fully protected
in relying upon:

     (1) a copy of any Board Resolution relating thereto and, if applicable, an appropriate
record of any action taken pursuant to such resolution, in each case certified by the
Secretary or an Assistant secretary of the Company;

     (2) an executed supplemental indenture, if any;

     (3) an Officers’ Certificate; and

     (4) an Opinion of Counsel, which shall also state:

     (a) that the form of such Securities has been established by or pursuant to a
Board Resolution or by a supplemental indenture as permitted by Section 2.01 in
conformity with the provisions of this Indenture;

     (b) that the terms of such Securities have been established by or pursuant to a
Board Resolution or by a supplemental indenture as permitted by Section 3.01 in
conformity with the provisions of this Indenture;

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

     (d) that all laws and requirements in respect of the execution and delivery by
the Company of the Securities have been complied with and that authentication and
delivery of the Securities by the Trustee will not violate the terms of the
Indenture.

     The Trustee shall have the right to decline to authenticate and deliver any Securities under
this Section if the Trustee, being advised by counsel, determines that such action may not

 

15

lawfully be taken or if the Trustee in good faith shall determine that such action would
expose the Trustee to personal liability to existing Holders.

     Each Security shall be dated the date of its authentication.

     Reference is made to Section 15.05 concerning execution and delivery of the Guarantees.

     SECTION 3.04. Execution of Securities. The Securities shall be signed in the name and on
behalf of the Company by the manual or facsimile signatures of two Officers of the Company (which
may be printed, engraved or otherwise reproduced thereon, by facsimile or otherwise). Only such
Securities as shall bear thereon a certificate of authentication substantially in the form
hereinbefore recited, executed by the Trustee, shall be entitled to the benefits of this Indenture
or be valid or obligatory for any purpose. Such certificate by the Trustee upon any Security
executed by the Company shall be conclusive evidence that the Security so authenticated has been
duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this
Indenture.

     In case any Officer of the Company who shall have signed any of the Securities shall cease to
be such officer before the Securities so signed shall have been authenticated and delivered by the
Trustee, or disposed of by the Company, such Securities nevertheless may be authenticated and
delivered or disposed of as though the person who signed such Securities had not ceased to be such
officer of the Company; and any Security may be signed on behalf of the Company by such persons as,
at the actual date of the execution of such Security, shall be the proper officers of the Company,
although at the date of the execution of this Indenture any such person was not such an officer.

     Reference is made to Section 15.05 concerning execution and delivery of the Guarantees.

     SECTION 3.05. Exchange and Registration of Transfer of Securities. Securities of any series
may be exchanged for a like aggregate principal amount of Securities of the same series of other
authorized denominations. Securities to be exchanged shall be surrendered at the office or agency
to be maintained by the Company, as provided in Section 10.02. The Trustee is hereby appointed
“Security Registrar” for the purpose of the registration of Securities and of transfer of
Securities in the Security Register as herein provided. The Company shall cause to be kept at the
Corporate Trust Office of the Trustee a register for each series of Securities issued hereunder
(hereinafter collectively referred to as the “Security Register”) in which, subject to such
reasonable regulations at it may prescribe, the Company shall provide for the registration of
Securities and the transfer of Securities as in this Article Three provided. The Security Register
shall be in written form or in any other form capable of being converted into written form within a
reasonable time. Upon due presentment for registration of transfer of any Security of any series
at such office or agency, the Company shall execute and the Trustee shall register, authenticate
and deliver in the name of the transferee or transferees a new Security or Securities of the same
series for an equal aggregate principal amount.

     All Securities presented for registration of transfer or for exchange, redemption or payment
shall (if so required by the Company or the Security Registrar) be duly endorsed by, or be
accompanied by a written instrument or instruments of transfer in form satisfactory to the

 

16

Company
and the Security Registrar duly executed by, the registered Holder or his attorney duly authorized
in writing.

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

     The Company shall not be required to exchange or register the transfer of (a) any Securities
of any series for a period of 15 days preceding the first mailing or publication of notice of
redemption of Securities of such series to be redeemed, or (b) any Securities selected, called or
being called for redemption except, in the case of any Security to be redeemed in part, the portion
thereof not so to be redeemed.

     SECTION 3.06. Mutilated, Destroyed, Lost or Stolen Securities. In case any temporary or
definitive Security shall become mutilated or be destroyed, lost or stolen, the Company in the case
of a mutilated Security shall, and in the case of a lost, stolen or destroyed Security may in its
discretion, execute, and upon its request the Trustee shall authenticate and deliver, a new
Security of the same series bearing a number, letter or other distinguishing symbol not
contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu
of and in substitution for the Security so destroyed, lost or stolen, or if any such Security shall
have matured or shall be about to mature, instead of issuing a substituted Security, the Company
may pay or authorize the payment of the same without surrender thereof (except in the case of a
mutilated Security). In every case the applicant for a substituted Security shall furnish to the
Company and to the Trustee such security or indemnity as may be required by them to save each of
them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish
to the Company and to the Trustee evidence to their satisfaction of the destruction, loss or theft
of such Security and of the ownership thereof.

     The Trustee may authenticate any such substituted Security and deliver the same upon the
written request or authorization of any Officer of the Company. Upon the issuance of any
substituted Security, 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 connected
therewith and in addition a further sum not exceeding two dollars for each Security so issued in
substitution.

     Every substituted Security issued pursuant to the provisions of this Section 3.06 by virtue of
the fact that any Security is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security shall be found at
any time, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that series duly issued hereunder. All Securities shall be
held and owned upon the express condition that the foregoing provisions are exclusive with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities and shall preclude
(to the extent lawful) any and all other rights or remedies with respect to the replacement or
payment of negotiable instruments or other securities without their surrender.

     SECTION 3.07. Temporary Securities. Pending the preparation of definitive Securities of any
series the Company may execute and the Trustee shall authenticate and deliver temporary

 

17

Securities
(printed or lithographed). Temporary Securities shall be issuable in any authorized denomination
and substantially in the form of the definitive Securities but with such omissions, insertions and
variations as may be appropriate for temporary Securities, all as may be determined by the Company.
Every such temporary Security shall be executed by the Company and shall be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with the same effect, as
the definitive Securities. Without unreasonable delay the Company will execute and deliver to the
Trustee definitive Securities of such series and thereupon any or all temporary Securities of such
series may be surrendered in exchange therefore, at the Corporate Trust Office of the Trustee, and
the Trustee shall authenticate and deliver in exchange for such temporary Securities an equal
aggregate principal amount of definitive Securities. Such exchange shall be made by the Company at
its own expense and without any charge therefor except that in case of any such exchange involving
any registration of transfer the Company may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities authenticated and delivered hereunder.

     If the Company shall establish pursuant to Section 3.01 that the Securities of a series are to
be issued in whole or in part in the form of one or more Global Securities, then the Company shall
execute and the Trustee shall, in accordance with Section 3.03 and the Company Order with respect
to such series, authenticate and deliver one or more Global Securities in temporary or permanent
form that (i) shall represent and shall be denominated in an amount equal to the aggregate
principal amount of the Outstanding Securities of such series to be represented by one or more
Global Securities, (ii) shall be registered in the name of the U.S. Depositary for such Global
Security or Securities or the nominee of such depositary, and (iii) shall bear a legend
substantially to the following effect: “This Security may not be transferred except as a whole by
the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary, unless and until this Security is exchanged
in whole or in part for Securities in definitive form” and such other legend as may be required by
the U.S. Depositary.

     Notwithstanding any other provision of this Section or Section 3.05, unless and until it is
exchanged in whole or in part for Securities in definitive form, a Global Security representing all
or a portion of the Securities of a series may not be transferred except as a whole by the U.S.
Depositary for such series to a nominee of such depositary or by a nominee of such depositary to
such depositary or another nominee of such depositary or by such depositary or any such nominee to
a successor U.S. Depositary for such series or a nominee of such successor depositary.

     If at any time the U.S. Depositary for the Securities of a series notifies the Company that it
is unwilling or unable to continue as U.S. Depositary for the Securities of such series or if at
any time the U.S. Depositary for Securities of a series shall no longer be a clearing agency
registered and in good standing under the Securities Exchange Act of 1934, as amended, or other
applicable statute or regulation, the Company shall appoint a successor U.S. Depositary with
respect to the Securities of such series. If a successor U.S. Depositary for the Securities of such
series is not appointed by the Company within 90 days after the Company receives such notice or

 

18

becomes aware of such condition, the Company will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive form in an aggregate principal
amount equal to the principal amount of the Global Security or Securities representing such series
in exchange for such Global Security or Securities.

     The Company may at any time and in its sole discretion determine that the Securities of any
series issued in the form of one or more Global Securities shall no longer be represented by such
Global Security or Securities. In such event, the Company will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of definitive Securities of such
series, will authenticate and deliver, Securities of such series in definitive form and in an
aggregate principal amount equal to the principal amount of the Global Security or Securities
representing such series in exchange for such Global Security or Securities.

     If the Securities of any series shall have been issued in the form of one or more Global
Securities and if an Event of Default with respect to the Securities of such series shall have
occurred and be continuing, the Company will promptly execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of definitive Securities of such series, will
authenticate and deliver Securities of such series in definitive form and in an aggregate principal
amount equal to the principal amount of the Global Security or Securities representing such series
in exchange for such Global Security or Securities.

     If specified by the Company pursuant to Section 3.01 with respect to Securities of a series,
the U.S. Depositary for such series of Securities may surrender a Global Security for such series
of Securities in exchange in whole or in part for Securities of such series in definitive form on
such terms as are acceptable to the Company and such depositary. Thereupon, the Company shall
execute and the Trustee shall authenticate and deliver, without charge:

     (1) to each Person specified by the U.S. Depositary a new Registered Security or
Securities of the same series, of any authorized denomination as requested by such Person in
an aggregate principal amount equal to and in exchange for such Person’s beneficial interest
in the Global Security; and

     (2) to the U.S. Depositary a new Global Security in a denomination equal to the
difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of Securities delivered to Holders thereof.

     Upon the exchange of a Global Security in whole for Securities in definitive form, such Global
Security shall be cancelled by the Trustee. Securities so issued in exchange for a Global Security
shall be registered in such names and in such authorized denominations as the U.S.
Depositary for such Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to
the Persons in whose names such Securities are so registered.

     SECTION 3.08. Payment of Interest; Interest Rights Preserved. Interest on any Security which
is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall

 

19

be paid
to the Person in whose name that Security is registered at the close of business on the Regular
Record Date for such interest.

     Any interest on any Security which is payable, but is not punctually paid or duly provided
for, on any Interest Payment Date or within 30 days thereafter (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the registered Holder on the relevant Regular Record Date by
virtue of having been such Holder; and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed in the following manner.
The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed
to be paid on each Security and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder at his address as it appears in the Security Register not less than 10 days
prior to such Special Record Date. The Trustee may, in its discretion, in the name and at
the expense of the Company, cause a similar notice to be published at least once in a
newspaper, customarily published in the English language on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, but such publication shall
not be a condition precedent to the establishment of such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date therefor having
been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose
names the Securities are registered on such Special Record Date and shall no longer be
payable pursuant to the following clause (2).

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

     Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall

 

20

carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

     SECTION 3.09. Persons Deemed Owners. Prior to due presentment of a Security for registration
of transfer, the Company, the Trustee, the Authenticating Agent and any agent of the Company or the
Trustee may treat the Person in whose name the Security is registered as the owner of such Security
for the purpose of receiving payment of principal of, and (subject to Section 3.08) interest on,
such Security and for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee, the Authenticating Agent nor any agent of the Company or the
Trustee shall be affected by notice to the contrary.

     SECTION 3.10. Cancellation. All Securities surrendered for payment, redemption, registration
of transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to
the Trustee, and any such Securities and Securities surrendered directly to the Trustee for any
such purpose shall be promptly cancelled by it. The Company may at any time deliver to the Trustee
for cancellation any Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly
cancelled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted by this Indenture.
All cancelled Securities held by the Trustee shall be disposed of by the Trustee in its customary
manner.

     SECTION 3.11. Computation of Interest. Except as otherwise specified as contemplated by
Section 3.01 for Securities of any Series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

     SECTION 3.12. CUSIP Numbers. The Company in issuing the Securities may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption 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
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee of any
change in the “CUSIP” numbers.

ARTICLE FOUR   

Satisfaction and Discharge

     SECTION 4.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to be of
further effect (except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when:

     (1) either:

 

21

     (A) all Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 3.06 and (ii) Securities for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Company
and thereafter repaid to the Company or discharged from such trust, as provided in
Section 10.03) have been delivered to the Trustee for cancellation; or

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

     (i) have become due and payable, or

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

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

and the Company in the case of (i), (ii) or (iii) above, has deposited or caused to
be deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and premium,
if any) and interest to the date of such deposit (in the case of Securities that
have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 6.07 and the obligations of the Trustee to any Authenticating Agent under
Section 6.14 shall survive such satisfaction and discharge.

     SECTION 4.02. Application of Trust Money. All money deposited with the Trustee pursuant to
Section 4.01 shall be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest for whose payment such money
has been deposited with the Trustee; but such money need not be segregated from other funds except
to the extent required by law.

 

22

ARTICLE FIVE   

Remedies

     SECTION 5.01. Events of Default.

     “Events of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events and such other events as may be established with respect to the
Securities of that series as contemplated by Section 3.01 hereof (whatever the reasons for such
Event of Default and whether it shall be voluntary or involuntary or be effected by operation of
law pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

     (a) default in the payment of any installment of interest upon any Security of that
series as and when the same shall become due and payable, and continuance of such default
for a period of 30 days (whether or not prohibited by the subordination provisions of this
Indenture); or

     (b) default in the payment of any of the principal of and premium, if any, on any
Security of that series as and when the same shall become due and payable, either at
Maturity, upon redemption, by declaration, repayment or otherwise (whether or not prohibited
by the subordination provisions of this Indenture); or

     (c) default in the payment or satisfaction of any sinking fund installment as and when
the same shall become due and payable by the terms of a Security of that series; or

     (d) failure on the part of the Company or a Guarantor duly to observe or perform any
other of the covenants or agreements on the part of the Company or a Guarantor in this
Indenture (other than those set forth exclusively in the terms of any particular series of
Securities established as contemplated in this Indenture) continued for a period of 60 days
after the date on which written notice of such failure, requiring the
Company or a Guarantor to remedy the same, shall have been given to the Company or a
Guarantor by the Trustee, or to the Company or a Guarantor and the Trustee by the Holders of
at least 25 percent in aggregate principal amount of the Securities of such series at the
time Outstanding, and stating that such notice is a “Notice of Default” hereunder; or

     (e) the commencement by the Company or any Significant Subsidiary of the Company or any
group of Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary of a
voluntary case or proceeding under any applicable U.S. federal or state bankruptcy,
insolvency, reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by the Company or any Significant
Subsidiary of the Company or any group of Subsidiaries that, taken as a whole, would
constitute a Significant Subsidiary to the entry of a decree or order for relief in respect
of the Company or any Significant Subsidiary of the Company or any group of Subsidiaries
that, taken as a whole, would constitute a

 

23

Significant Subsidiary in an involuntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization
or other similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against the Company or any Significant Subsidiary of the Company or any group of
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary, or the
filing by the Company or any Significant Subsidiary of the Company or any group of
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary of a petition
or answer or consent seeking reorganization or relief under any applicable U.S. federal or
state law, or the consent by the Company or any Significant Subsidiary of the Company or any
group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary to
the filing of such petition or to the appointment of or the taking possession by a custodian
of the Company or any Significant Subsidiary of the Company or any group of Subsidiaries
that, taken as a whole, would constitute a Significant Subsidiary or of any substantial part
of their properties, or the making by the Company or any Significant Subsidiary of the
Company or any group of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary of an assignment for the benefit of creditors, or the admission by the Company or
any Significant Subsidiary of the Company or any group of Subsidiaries that, taken as a
whole, would constitute a Significant Subsidiary in writing of their inability to pay its
debts generally as they become due, or the taking of corporate action by the Company or any
Significant Subsidiary of the Company or any group of Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary expressly in furtherance of any such action; or

     (f) a Guarantee of a Security of that series (other than in accordance with the terms
of the Guarantee) shall be held in any judicial proceeding to be unenforceable or invalid.

     SECTION 5.02. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default described in Section 5.01 (other than in clause (e) with respect to the
Company) or established pursuant to Section 3.01 with respect to Securities of any series at the
time Outstanding occurs and is continuing, then and in each and every such case, unless the
principal of all the Securities of such series shall have already become due and payable, either
the Trustee or the Holders of not less than 25 percent in aggregate principal amount of the
Securities of such series then Outstanding hereunder, by notice in writing to the Company (and to
the Trustee if given by Holders), may declare the principal amount (or, if the Securities of that
series are Original Issue Discount Securities, such portion of the principal amount as may be
specified in the terms of that series) of all the Securities of such series plus accrued and unpaid
interest to be due and payable immediately, and upon any such declaration the same shall become and
shall be immediately due and payable, anything in this Indenture or in the Securities of such
series contained to the contrary notwithstanding, provided, however, that payment of principal of
(and premium, if any) and interest on the Securities of such series shall remain subordinated to
the extent provided in Article Fourteen. If an Event of Default described in clause (e) in respect
of the Company occurs and is continuing, then and in each and every such case, unless the principal
of all the Securities shall have already become due and payable, the principal amount of all the
Securities of each series then Outstanding hereunder (or, if any Securities are Original Issue
Discount Securities, such portion of the principal amount as may be

 

24

specified in the terms thereof)
plus any accrued and unpaid interest shall become immediately due and payable, provided, however,
that payment of principal of (and premium, if any) and interest on the Securities of such series
shall remain subordinated to the extent provided in Article Fourteen. The foregoing provisions
are, however, subject to the condition that if, at any time after the principal amount (or, if the
Securities of that series are Original Issue Discount Securities, such portion of the principal
amounts as may be specified in the terms of that series) of the Securities of any series (or of all
the Securities, as the case may be) shall have been declared or become due and payable, and before
any judgment or decree for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to
pay all matured installments of interest upon all the Securities of such series (or of all the
Securities, as the case may be) and the principal of and premium, if any, on any and all Securities
of such series (or of all the Securities, as the case may be) that shall have become due otherwise
than by acceleration (with interest on overdue installments of interest, to the extent that payment
of such interest is enforceable under applicable law, and on such principal and premium, if any, at
the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) borne
by the Securities of such series (or at the rates of interest or Yields to Maturity of all the
Securities, as the case may be), to the date of such payment or deposit) and the reasonable
expenses of the Trustee, and any and all defaults under this Indenture, other than the nonpayment
of principal of or premium, if any, or accrued interest on Securities of such series (or of all the
Securities, as the case may be) which shall have become due by acceleration, shall have been cured
or waived pursuant to Section 5.08, then and in every such case the Holders of a majority in
aggregate principal amount of the Securities of such series (or of all the Securities, as the case
may be) then Outstanding, by written notice to the Company and to the Trustee, may waive all
defaults with respect to that series (or with respect to all Securities, as the case may be) and
rescind and annul such declaration and its consequences; but no such waiver or rescission and
annulment shall extend to or shall affect any subsequent default, or shall impair any right
consequent thereon.

     In case the Trustee or any Holder shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned because of such rescission
or annulment or for any other reason or shall have been determined adversely to the Trustee or to
such Holder, then and in every such case the Company and the Trustee and the Holders shall be
restored respectively to their several positions and rights hereunder, and all rights, remedies and
powers of the Company and the Trustee and the Holders shall continue as though no such proceeding
had been taken.

     SECTION 5.03. Payment of Securities on Default; Suit Therefor.

     The Company covenants that (a) in case default shall be made in the payment of any installment
of interest upon any of the Securities of any series as and when the same shall become due and
payable, and such default shall have continued for a period of 30 days, or (b) in case default
shall be made in the payment of the principal of and premium, if any, on any of the Securities of
any series as and when the same shall become due and payable, whether at maturity of the Securities
of that series or upon redemption or by declaration, repayment or otherwise, then, upon demand of
the Trustee, the Company will pay to the Trustee, for the benefit of the Holders of the Securities
of that series, the whole amount that then shall have become due and payable on all such Securities
of that series for principal and premium, if any, or interest, or both,

 

25

as the case may be, with
interest upon the overdue principal and (to the extent that payment of such interest is enforceable
under applicable law) upon the overdue installments of interest at the rate or Yield to Maturity
(in the case of Original Issue Discount Securities) borne by the Securities of that series; and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of
collection, including reasonable compensation to the Trustee, its agents, attorneys and counsel,
and any expenses or liabilities incurred by the Trustee hereunder other than through its negligence
or bad faith.

     In case the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in
its own name and as trustee of an express trust, shall be entitled and empowered to institute any
actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and
may prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor upon such Securities and collect
in the manner provided by law out of the property of the Company or any other obligor upon such
Securities wherever situated the moneys adjudged or decreed to be payable.

     In case there shall be pending proceedings for the bankruptcy or for the reorganization of the
Company or any other obligor on the Securities of any series under any applicable bankruptcy,
insolvency or similar law, or in case a receiver or trustee shall have been appointed for the
property of the Company or such other obligor, or in the case of any other similar judicial
proceedings relative to the Company or other obligor upon the Securities of any series, or to the
creditors or property of the Company or such other obligor, the Trustee, irrespective of whether
the principal of the Securities of any series 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
pursuant to the provisions of this Section 5.03 shall be entitled and empowered, by intervention
in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of
principal (and premium, if any) and interest (or, if the Securities of that series are Original
Issue Discount Securities, such portion of the principal amount as may be specified in the terms of
that series) owing and unpaid in respect of the Securities of any series and, in case of any
judicial proceedings, to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and of the Holders allowed in
such judicial proceedings relative to the Company or any other obligor on the Securities of any
series, its or their creditors, or its or their property, and to collect and receive any moneys or
other property payable or deliverable on any such claims, and to distribute the same after the
deduction of its charges and expenses; and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized by each of the Holders 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 compensation and expenses, including counsel
fees and expenses incurred by it up to the date of such distribution. To the extent that such
payment of reasonable compensation, expenses and counsel fees and expenses out of the estate in any
such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on,
and shall be paid out of, any and all distributions, dividends, moneys, securities and other
property which the Holders of the Securities of any series may be entitled to receive in such
proceedings, whether in liquidation or under any plan of reorganization or arrangement or
otherwise.

 

26

     All rights of action and of asserting claims under this Indenture, or under any of the
Securities, may be enforced by the Trustee without the possession of any of the Securities, or the
production thereof on any trial or other proceeding relative thereto, and any such suit or
proceeding instituted by the Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment shall be for the ratable benefit of the Holders of all the
Securities in respect of which such action was taken.

     SECTION 5.04. Application of Moneys Collected by Trustee. Any moneys collected by the Trustee
under this Article Five shall be applied in the order following, at the date or dates fixed by the
Trustee for the distribution of such moneys, upon presentation of the several Securities in respect
of which moneys have been collected, and stamping thereon the payment, if only partially paid, and
upon surrender thereof if fully paid:

     First: To the payment of costs and expenses of collection and reasonable
compensation to the Trustee, its agents, attorneys and counsel, and of all other expenses
and liabilities incurred, and all advances made, by the Trustee except as a result of its
negligence or bad faith;

     Second: To holders of Senior Indebtedness of the Company and, if such money
or property has been collected from a Guarantor, to holders of Senior Indebtedness of such
Guarantor, in each case to the extent required by Article Fourteen and/or Article Sixteen
hereof, as applicable;

     Third:  In case the principal of the Outstanding Securities in respect of
which such moneys have been collected shall not have become due and be unpaid, to the
payment of interest on the Securities of that series, in the order of the maturity of
the installments of such interest, with interest (to the extent that such interest has been
collected by the Trustee) upon the overdue installments of interest at the rate or Yield to
Maturity (in the case of Original Issue Discount Securities) borne by the Securities of that
series, such payments to be made ratably to the persons entitled thereto;

     Fourth: In case the principal of the Outstanding Securities in respect of
which such moneys have been collected shall have become due, by declaration or otherwise, to
the payment of the whole amount then owing and unpaid upon the Securities of that series for
principal and premium, if any, and interest, with interest on the overdue principal and
premium, if any, and (to the extent that such interest has been collected by the Trustee)
upon overdue installments of interest at the rate or Yield to Maturity (in the case of
Original Issue Discount Securities) borne by the Securities of that series; and in case such
moneys shall be insufficient to pay in full the whole amounts so due and unpaid upon the
Securities of that series, then to the payment of such principal and premium, if any, and
interest without preference or priority of principal and premium, if any, over interest, or
of interest over principal and premium, if any, or of any installment of interest over any
other installment of interest, or of any Security of that series over any other Security of
that series, ratably to the aggregate of such principal and premium, if any, and accrued and
unpaid interest; and

 

27

     Fifth: Any surplus then remaining shall be paid to the Company, its
successors or assigns, or to whomsoever may be entitled to receive the same.

     SECTION 5.05. Proceedings by Holders. No Holder of any Security of any series shall have any
right by virtue of or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this Indenture or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless such Holder
previously shall have given to the Trustee written notice of default and of the continuance
thereof, as hereinbefore provided, and unless also the Holders of not less than 25 percent in
aggregate principal amount of the Securities of that series then Outstanding shall have made
written request upon the Trustee to institute such action, suit or proceeding in its own name as
Trustee hereunder and shall have offered to the Trustee such indemnity reasonably satisfactory to
the Trustee as it may require against the costs, expenses and liabilities to be incurred therein or
thereby, and the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit or proceeding and
during such 60-day period, no direction inconsistent with such written request has been given to
the Trustee by the Holders of a majority in aggregate principal amount of the Securities of that
series then Outstanding (or such amount as shall have acted at a meeting pursuant to the provisions
of this Indenture), it being understood and intended, and being expressly covenanted by the taker
and Holder of every Security with every other taker and Holder and the Trustee, that no one or more
Holders shall have any right in any manner whatever by virtue of or by availing of any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holder, or to obtain or seek
to obtain priority over or preference to any other such Holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and common benefit of
all such Holders.

     Notwithstanding any other provisions in this Indenture, however, the right of any Holder of
any Security to receive payment of the principal of and premium, if any, and interest on such
Security, on or after the respective due dates expressed in such Security, or to institute suit for
the enforcement of any such payment on or after such respective dates shall not be impaired or
affected without the written consent of such Holder.

     SECTION 5.06. Proceedings by Trustee. In case of an Event of Default hereunder the Trustee
may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by
such appropriate judicial proceedings as the Trustee shall deem necessary to protect and enforce
any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or
otherwise, whether for the specific enforcement of any covenant or agreement contained in this
Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by law.

     SECTION 5.07. Remedies Cumulative and Continuing. All powers and remedies given by this
Article Five to the Trustee or to the Holders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any thereof or of any other powers and remedies available to the
Trustee or the Holders, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture, and no delay or omission of
the Trustee or of any Holder to exercise any right or power accruing upon any default occurring and
continuing as aforesaid shall impair any such right or power, or shall

 

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be construed to be a waiver
of any such default or an acquiescence therein; and, subject to the provisions of Section 5.05,
every power and remedy given by this Article Five or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the
Holders.

     SECTION 5.08. Direction of Proceedings and Waiver of Defaults by Majority of Holders. The
Holders of a majority in aggregate principal amount of the Securities of any series at the time
Outstanding 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, however, that (subject to the provisions
of Section 6.01) the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, determines that the action or proceeding so directed may not
lawfully be taken or if the Trustee in good faith shall determine that the action or proceedings so
directed would involve the Trustee in personal liability. Subject to Section 5.02, the Holders of
a majority in aggregate principal amount of the Securities of that series at the time Outstanding
may on behalf of the Holders of all of the Securities of that series waive any past default or
Event of Default described in Section 5.01, or any other Event of Default for such series specified
in the terms thereof as contemplated by Section 3.01, and its consequences except a default in the
payment of interest, or premium, if any, on, or the principal of any of the Securities or a default
which, under Section 9.02, cannot be modified or amended without the consent of each Holder of each
Security affected by such waiver. Upon any such
waiver the Company, the Trustee and the Holders of the Securities of that series shall be
restored to their former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any right consequent
thereon. Whenever any default or Event of Default hereunder shall have been waived as permitted by
this Section 5.08, said default or Event of Default shall for all purposes of the Securities of
that series and this Indenture be deemed to have been cured and to be not continuing.

     SECTION 5.09. Undertaking to Pay Costs. All parties to this 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 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 and
expenses, against any party litigant in such suit, having due regard to the merits and good faith
of the claims or defenses made by such party litigant; but the provisions of this Section 5.09
shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder of the
Securities of any series or group of such Holders, holding in the aggregate more than ten percent
in principal amount of the Outstanding Securities of that series or to any suit instituted by any
Holder for the enforcement of the payment of the principal of or premium, if any, or interest on
any Security against the Company on or after the due date expressed in such Security.

 

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ARTICLE SIX   

The Trustee

     SECTION 6.01. Certain Duties and Responsibilities.

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

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

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

     (b) In case an Event of Default actually known to a Responsible Officer of the Trustee with
respect to the Securities of a series has occurred and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this Indenture with respect to such
series, 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.

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

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

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

     (3) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders pursuant to
Section 5.08 relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture; and

     (4) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers.

 

30

     (d) The Trustee shall not be obligated to pay interest on any money or other assets received
by it unless otherwise agreed with the Company. Assets held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

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

     SECTION 6.02. Notice of Defaults.

     Within 90 days after the occurrence of any default with respect to the Securities of any
series, the Trustee shall transmit by mail to all Holders of Securities of that Series, as their
names and addresses appear in the Security Register, notice of all defaults with respect to that
Series actually known to a Responsible Officer of the Trustee, unless such defaults shall have been
cured or waived before the giving of such notice; provided, however, that, except in the case of a
default in the payment of the principal of or premium, if any, or interest on any of the Securities
of such series or in the making of any sinking fund payment with respect to such series, the
Trustee shall be protected in withholding such notice if and so long as the board of directors, the
executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in
good faith determines that the withholding of such notice is in the
interests of the Holders. For the purpose of this Section, the term “default” means any event which is, or after notice
or lapse of time or both would become, an Event of Default.

     SECTION 6.03. Certain Rights of Trustee.

     Except as otherwise provided in Section 6.01:

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

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

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

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

 

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

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

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

     (h) the Trustee shall not be 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 pursuant to
Section 17.02, and such notice references the Securities and this Indenture; and

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

     (j) the Trustee may request that the Company deliver an Officers’ Certificate setting
forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by
any person authorized to sign an Officers’ Certificate, including any person specified as so
authorized in any such certificate previously delivered and not superseded.

     SECTION 6.04. Not Responsible for Recitals or Issuance of Securities.

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

 

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     SECTION 6.05. May Hold Securities.

     The Trustee, any Paying Agent, Security Registrar, Authenticating Agent or any other agent of
the Company or of the Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 6.08 and 6.13, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar,
Authenticating Agent or such other agent.

     SECTION 6.06. Money Held in Trust.

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

     SECTION 6.07. Compensation and Reimbursement.

     The Company agrees:

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

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as shall be determined by a court of competent jurisdiction
to have been caused by its own negligence or willful misconduct; and

     (3) to fully indemnify the Trustee, any predecessor Trustee and their agents for, and
to hold them harmless against, any and all loss, liability, claim, damage, taxes (other than
taxes based upon the income of the Trustee) or expense (including legal fees and expenses)
incurred without negligence or willful misconduct on their part, arising out of or in
connection with the acceptance or administration of this trust, including the costs and
expenses of defending themselves against any claim (whether asserted by the Company, or any
Holder or any other Person) or liability in connection with the exercise or performance of
any of their powers or duties hereunder.

     As security for the performance of the obligations of the Company under this Section the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of (or premium, if
any) or interest on Securities.

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 5.01(e), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services are intended to constitute

 

33

expenses of
administration under any applicable Federal or state bankruptcy, insolvency or other similar law.

     The provisions of this Section shall survive the termination of this Indenture and the
resignation or removal of the Trustee.

     SECTION 6.08. Disqualification; Conflicting Interests.

     The Trustee for the Securities shall be subject to the provisions of Section 310(b) of the
Trust Indenture Act during the period of time required thereby. Nothing herein shall prevent the
Trustee from filing with the Commission the application referred to in the penultimate paragraph
of Section 310(b) of the Trust Indenture Act. In determining whether the Trustee has a
conflicting interest as defined in Section 310(b) of the Trust Indenture Act with respect to the
Securities of any series, there shall be excluded Securities of any particular series of Securities
other than that series.

     SECTION 6.09. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be:

     (1) a corporation organized and doing business under the laws of the United States of
America, any state thereof, or the District of Columbia, authorized under such laws to
exercise corporate trust powers, and subject to supervision or examination by Federal or
State authority, or

     (2) a corporation or other Person organized and doing business under the laws of a
foreign government that is permitted to act as a Trustee pursuant to a rule, regulation, or
other order of the Commission, authorized under such laws to exercise corporate trust
powers, and subject to supervision or examination by authority of such foreign government or
a political subdivision thereof substantially equivalent to supervision or examination
applicable to United States institutional trustee,

having a combined capital and surplus of at least $50,000,000 and having a corporate trust office
in the Borough of Manhattan, the City of New York, or such other city as contemplated by Section
3.01 with respect to any series of Securities. If such corporation publishes reports of condition
at least annually, pursuant to law or to requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. Neither the Company nor any Person directly or indirectly
controlling, controlled by, or under the common control with the Company shall serve as Trustee for
the Securities. If at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with the effect hereunder
specified in this Article.

 

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     SECTION 6.10. Resignation and Removal; Appointment of Successor.

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

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

     (c) The Holders of a majority in aggregate principal amount of the Securities of one or more
series (each series voting as a class) or all series at the time Outstanding may at any time remove
the Trustee with respect to the applicable series or all series, as the case may be, and by written
notice of such action to the Company, the Trustee and the successor Trustee, nominate with respect
to the applicable series or all series, as the case may be, a successor Trustee, which shall be
deemed appointed as successor Trustee with respect to the applicable series unless within ten days
after such nomination the Company objects thereto, in which case the Trustee so removed or any
Holder of Securities of the applicable series who has been a bona fide holder of a Security or the
applicable series for at least six months may, subject to the provisions of Section 5.09 on behalf
of himself and all others similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to such series.

     (d) If at any time:

     (1) the Trustee shall fail to comply with Section 310(b) of the Trust Indenture Act
pursuant to Section 6.08 hereof after written request therefor by the Company or by any
Holder who has been a bona fide Holder of a Security for at least six months, unless the
Trustee’s duty to resign is stayed in accordance with the provisions of Section 310(b) of
the Trust Indenture Act, or

     (2) the Trustee shall cease to be eligible under Section 6.09 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

     (3) the Trustee shall become incapable of acting, or a decree or order for relief by a
court having jurisdiction in the premises shall have been entered in respect of the Trustee
in an involuntary case under the Federal bankruptcy laws, as now or hereafter constituted,
or any other applicable Federal or State, bankruptcy, insolvency or similar law; or a decree
or order by a court having jurisdiction in the premises for the appointment of a receiver or
custodian or liquidator or trustee or assignee in bankruptcy or insolvency of the Trustee or
of its property, or for the winding up of its affairs shall have been entered, or

     (4) the Trustee shall commence a voluntary case under the Federal bankruptcy laws, as
now or hereafter constituted, or any other applicable Federal or State bankruptcy,
insolvency or similar law, or shall consent to the appointment of a receiver or custodian

 

35

or
liquidator or trustee or assignee in bankruptcy or insolvency of it or of its property, or
shall make an assignment for the benefit of creditors, or shall fail generally to pay its
debts as they become due, or corporate action shall be taken by the Trustee in furtherance
of any such action,

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee, or (ii)
subject to Section 5.09, any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

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

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

     SECTION 6.11. Acceptance of Appointment by Successor.

     Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee,
and shall duly assign, transfer and deliver to such successor Trustee all property and money held
by such retiring Trustee hereunder, subject nevertheless to its lien, if any, provided for in
Section 6.07. Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts.

 

36

     In case of the appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the predecessor Trustee and each successor Trustee
with respect to the Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the predecessor Trustee with respect
to the Securities of any series as to which the predecessor Trustee is not retiring shall continue
to be vested in the predecessor Trustee, and shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration of
the trusts hereunder by more than one trustee, it being understood that nothing herein or in
such supplemental indenture shall constitute such trustees, co-trustees of the same trust and that
each trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such trustee.

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

     SECTION 6.12. Merger, Conversion, Consolidation or Succession to Business.

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

     SECTION 6.13. Preferential Collection of Claims Against Company.

     (a) Subject to Subsection (b) of this Section, if the Trustee shall be or shall become a
creditor, directly or indirectly, secured or unsecured, of the Company within three months prior to
a default, as defined in Subsection (c) of this Section, or subsequent to such a default, then,
unless and until such default shall be cured, the Trustee shall set apart and hold in a special
account for the benefit of the Trustee individually, the Holders of the Securities and the holders
of other indenture securities, as defined in Subsection (c) of this Section:

     (1) an amount equal to any and all reductions in the amount due and owing upon any
claim as such creditor in respect of principal or interest, effected after the beginning of
such three-month period and valid as against the Company and its other creditors, except any
such reduction resulting from the receipt or disposition of any property described in
paragraph (2) of this Subsection, or from the exercise of any right of set-off which the
Trustee could have exercised if a petition in bankruptcy had been filed by or against the
Company upon the date of such default; and

 

37

     (2) all property received by the Trustee in respect of any claim as such creditor,
either as security therefor, or in satisfaction or composition thereof, or otherwise, after
the beginning of such three-month period, or an amount equal to the proceeds of any such
property, if disposed of, subject, however, to the rights, if any, of the Company and its
other creditors in such property or such proceeds.

     Nothing herein contained, however, shall affect the right of the Trustee:

     (A) to retain for its own account (i) payments made on account of any such
claim by any Person (other than the Company) who is liable thereon, and (ii) the
proceeds of the bona fide sale of any such claim by the Trustee to a third Person,
and (iii) distributions made in cash, securities or other property in respect of
claims filed against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal bankruptcy laws, as now or hereafter
constituted, or any other Federal or State bankruptcy, insolvency or similar law;

     (B) to realize, for its own account, upon any property held by it as security
for any such claim, if such property was so held prior to the beginning of such
three-month period;

     (C) to realize, for its own account, but only to the extent of the claim
hereinafter or mentioned, upon any property held by it as security for any such
claim, if such claim was created after the beginning of such three-month period and
such property was received as security therefor simultaneously with the creation
thereof, and if the Trustee shall sustain the burden of proving that at the time
such property was so received the Trustee had no reasonable cause to believe that a
default as defined in Subsection (c) of this Section would occur within three
months; or

     (D) to receive payment on any claim referred to in paragraph (B) or (C),
against the release of any property held as security for such claim as provided in
paragraph (B) or (C), as the case may be, to the extent of the fair value of such
property.

     For the purposes of paragraphs (B), (C) and (D), property substituted after the beginning of
such three-month period for property held as security at the time of such substitution shall, to
the extent of the fair value of the property released, have the same status as the property
released, and, to the extent that any claim referred to in any of such paragraphs is created in
renewal of or in substitution for or for the purpose of repaying or refunding any pre-existing
claim of the Trustee as such creditor, such claim shall have the same status as such pre-existing
claim.

     If the Trustee shall be required to set aside and hold such a special account, the funds and
property held in such special account and the proceeds thereof shall be apportioned between the
Trustee, the Holders and the holders of other indenture securities in such manner that the Trustee,
the Holders and the holders of other indenture securities realize, as a result of payments from
such special account and payments of dividends on claims filed against the Company in bankruptcy or
receivership or in proceedings for reorganization pursuant to the Federal

 

38

bankruptcy laws, as now
or hereafter constituted, or any other applicable Federal or State bankruptcy, insolvency or
similar law, the same percentage of their respective claims, figured before crediting to the claim
of the Trustee anything on account of the receipt by it from the Company of the funds and property
in such special account and before crediting to the respective claims of the Trustee and the
Holders and the holders of other indenture securities dividends on claims filed against the Company
in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal bankruptcy laws, as now or hereafter constituted, or
any other applicable Federal or State bankruptcy, insolvency or similar law, but after crediting
thereon receipts on account of the indebtedness represented by their respective claims from all
sources other than from such dividends and from funds and property so held in such special account.
As used in this paragraph, with respect to any claim, the term “dividends” shall include any
distribution with respect to such claim, in bankruptcy or receivership or proceedings for
reorganization pursuant to the Federal bankruptcy laws, as now or hereafter constituted, or any
other applicable Federal or State bankruptcy, insolvency or similar law, whether such distribution
is made in cash, securities, or other property, but shall not include any such distribution with
respect to the secured portion, if any, of such claim. The court in which such bankruptcy,
receivership or proceedings for reorganization is pending shall have jurisdiction (i) to apportion
between the Trustee and the Holders and the holders of other indenture securities, in accordance
with the provisions of this paragraph, the funds and property held in such special account and
proceeds thereof, or (ii) in lieu of such apportionment, in whole or in part, to give to the
provisions of this paragraph due consideration in determining the fairness of the distributions to
be made to the Trustee and the Holders and the holders of other indenture securities with respect
to their respective claims, in which event it shall not be necessary to liquidate or to appraise
the value of any securities or other property held in such special account or as security for any
such claim, or to make a specific allocation of such distributions as between the secured and
unsecured portions of such claims, or otherwise to apply the provision of this paragraph as a
mathematical formula.

     Any Trustee which has resigned or been removed after the beginning of such three-month period
shall be subject to the provisions of this Subsection as though such resignation or removal had not
occurred. If any Trustee has resigned or been removed prior to the beginning of such three-month
period, it shall be subject to the provisions of this Subsection if and only if the following
conditions exist:

     (i) the receipt of property or reduction of claim, which would have
given rise to the obligation to account, if such Trustee had continued as
Trustee, occurred after the beginning of such three-months period; and

     (ii) such receipt of property or reduction of claim occurred within
three months after such resignation or removal.

     (b) There shall be excluded from the operation of Subsection (a) of this Section a creditor
relationship arising from:

     (1) the ownership or acquisition of securities issued under any indenture, or any
securities or securities having a maturity of one year or more at the time of acquisition by
the Trustee;

 

39

     (2) advances authorized by a receivership or bankruptcy court of competent
jurisdiction, or by this Indenture, for the purpose of preserving any property that shall at
any time be subject to the lien of this Indenture or of discharging tax liens or other prior
liens or encumbrances thereon, if notice of such advances and of the circumstances
surrounding the making thereof is given to the Holders at the time and in the manner
provided in this Indenture;

     (3) disbursements made in the ordinary course of business in the capacity of trustee
under an indenture, transfer agent, registrar, custodian, paying agent, fiscal agent or
depositary, or other similar capacity;

     (4) an indebtedness created as a result of services rendered or premises rented; or an
indebtedness created as a result of goods or securities sold in a cash transaction as
defined in Subsection (c) of this Section;

     (5) the ownership of stock or of other securities of a corporation organized under the
provisions of Section 25(a) of the Federal Reserve Act, as amended, which is directly or
indirectly a creditor of the Company or an obligor under the Securities; or

     (6) the acquisition, ownership, acceptance or negotiation of any drafts, bills of
exchange, acceptances or obligations that fall within the classification of self-liquidating
paper as defined in Subsection (c) of this Section.

     (c) For the purpose of this Section only:

     (1) The term “default” means any failure to make payment in full of the principal of or
interest on any of the Securities or upon the other indenture securities when and as such
principal or interest becomes due and payable.

     (2) The term “other indenture securities” means securities upon which the Company is an
obligor outstanding under any other indenture (i) under which the Trustee is also trustee,
(ii) which contains provisions substantially similar to the provisions of this Section, and
(iii) under which a default exists at the time of the apportionment of the funds and
property held in such special account.

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

     (4) The term “self-liquidating paper” means any draft, bill of exchange, acceptance or
obligation which is made, drawn, negotiated or incurred by the Company for the purpose of
financing the purchase, processing, manufacturing, shipment, storage or sale of goods, wares
or merchandise and which is secured by documents evidencing title to, possession of, or a
lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the
sale of the goods, wares or merchandise previously constituting the security, provided the
security is received by the Trustee simultaneously

 

40

with the creation of the creditor
relationship with the Company arising from the making, drawing, negotiating or incurring of
the draft, bill of exchange, acceptance or obligation.

     (5) The term “Company” means any obligor upon the Securities.

     SECTION 6.14. Appointment of Authenticating Agent.

     At any time when any of the Securities remain Outstanding the Trustee may appoint an
Authenticating Agent or Agents which shall be authorized to act on behalf of the Trustee to
authenticate Securities issued upon exchange, transfer or partial redemption thereof or pursuant to
Section 3.06, and Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery of Securities by
the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times be a bank or trust
company or corporation organized and doing business and in good standing under the laws of the
United States of America, or of any State, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $1,500,000 and subject to supervision
or examination by Federal or State authorities. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section, the combined capital and surplus of
such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. In case at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in this Section.

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

     An Authenticating Agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice of termination to such Authenticating Agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company
and shall mail notice of such appointment to all Holders, as their names and addresses appear on
the Security Register. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating

 

41

Agent herein. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     If an appointment is made pursuant to this Section, the Securities shall have endorsed
thereon, in addition to the Trustee’s Certificate, an alternate Trustee’s Certificate in the
following form:

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

	 	 	 	 	 	 	 
	 

	 	 	 	U.S. Bank National Association,

as Trustee	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Authenticating Agent
	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 

ARTICLE SEVEN   

Holder’s Lists and Reports by Trustee and Company

     SECTION 7.01. Company to Furnish Trustee Names and Addresses of Holders.

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

     (a) semi-annually (and not more than 15 days after each Regular Record Date of each
series of Securities having such a Regular Record Date), a list, in such form as the Trustee
may reasonable require, of the names and addresses of the Holders as of such Regular Record
Date, and

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

excluding from any such list names and addresses received by the Trustee in the capacity of
Security Registrar if the Trustee is then acting in such capacity.

 

42

     SECTION 7.02. Preservation of Information; Communications to Holders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 7.01 and the names and addresses of Holders received by the Trustee in the capacity of
Security Registrar if the Trustee is then acting in such capacity. The Trustee may destroy any
list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.

     (b) If three or more Holders (hereinafter referred to as “applicants”) apply in writing to the
Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned a Security
for a period of at least six months preceding the date of such application, and such application
states that the applicants desire to communicate with other Holders with respect to their rights
under this Indenture or under the Securities and is accompanied by a copy of the form of proxy or
other communication which such applicants propose to transmit, then the Trustee shall, within five
business days after the receipt of such application, at its election, either:

     (i) afford such applicants access to the information preserved at the
time by the Trustee in accordance with Section 7.02(a), or

     (ii) inform such applicants as to the approximate number of Holders
whose names and addresses appear in the information preserved at the time by
the Trustee in accordance with Section 7.02(a), and as to the approximate
cost of mailing to such Holders the form of proxy or other communication, if
any, specified in such application.

     If the Trustee shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder whose name and
address appears in the information preserved at the time by the Trustee in accordance with Section
7.02(a), a copy of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be mailed and of
payment, or provision for the payment, of the reasonable expenses of mailing, unless within five
days after such tender, the Trustee shall mail to such applicants and file with the Commission,
together with a copy of the material to be mailed, a written statement to the effect that, in the
opinion of the Trustee, such mailing would be contrary to the best interests of the Holders or
would be in violation of applicable law. Such written statement shall specify the basis of such
opinion. If the Commission, after opportunity for a hearing upon the objections specified in the
written statement so filed, shall enter an order refusing to sustain any of such objections or if,
after the entry of an order sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for hearing, that all the objections so sustained have been met and
shall enter an order so declaring, the Trustee shall mail copies of such material to all such
Holders with reasonable promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such applicants respecting
their application.

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any Authenticating Agent nor any Paying
Agent nor any Security Registrar shall be held accountable by reason of

 

43

the disclosure of any such
information as to the names and addresses of the Holders in accordance with Section 7.02(b),
regardless of the source from which such information was derived, and that the Trustee shall not be
held accountable by reason of mailing any material pursuant to a request made under Section
7.02(b).

SECTION 7.03. Reports by Trustee.

     (a) Within 60 days after March 15 of each year commencing with the year 20___, the Trustee
shall transmit by mail to all Holders, as their names and addresses appear in the Security
Register, a brief report dated as of March 15 with respect to any of the following events which may
have occurred within the prior 12 months (but if no such event has occurred within such period no
report need be transmitted):

     (1) any change to its eligibility under Section 6.09 and its qualifications under
Section 6.08;

     (2) the creation of any material change to a relationship specified in Section
310(b)(1) through Section 310(b)(10) of the Trust Indenture Act;

     (3) the character and amount of any advances (and if the Trustee elects so to state the
circumstances surrounding the making thereof) made by the Trustee (as such) that remain
unpaid on the date of such report, and for the reimbursement of which it claims or may claim
a lien or charge, prior to that of the Securities, on any property or funds held or
collected by it as Trustee, except that the Trustee shall not be required (but may elect) to
report such advances if such advances so remaining unpaid aggregate not more than 1/2 of 1%
of the principal amount of the Outstanding Securities on the date of such report;

     (4) any change to the amount, interest rate and maturity date of all other indebtedness
owing by the Company (or by any other obligor on the Securities) to the Trustee in its
individual capacity, on the date of such report, with a brief description of any property
held as collateral security therefor, except an indebtedness based upon a creditor
relationship arising in any manner described in Section 6.13(b)(2), (3), (4) or (6);

     (5) any change to the property and funds, if any, physically in the possession of the
Trustee as such on the date of such report;

     (6) any additional issue of Securities which the Trustee has not previously reported;
and

     (7) any action taken by the Trustee in the performance of its duties hereunder that it
has not previously reported and that in its opinion materially affects the Securities,
except action in respect of a default, notice of which has been or is to be withheld by
the Trustee in accordance with Section 6.02.

     (b) The Trustee shall transmit by mail to all Holders, as their names and addresses appear in
the Security Register, a brief report with respect to the character and amount of any advances (and
if the Trustee elects so to state, the circumstances surrounding the making thereof)

 

44

made by the
Trustee (as such) since the date of the last report transmitted pursuant to Subsection (a) of this
Section (or if no such report has yet been so transmitted, since the date of execution of this
instrument) for the reimbursement of which it claims or may claim a lien or charge, prior to that
of the Securities, on property or funds held or collected by it as Trustee, and which it has not
previously reported pursuant to this Subsection, except that the Trustee shall not be required (but
may elect) to report such advances if such advances remaining unpaid at any time aggregate 10% or
less of the principal amount of the Outstanding Securities at such time, such report to be
transmitted within 90 days after such time.

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

     SECTION 7.04. Reports by Company.

     The Company will:

     (1) file with the Trustee, within 15 days after the Company files them with the
Commission, copies of the annual reports and of the information, documents and other reports
(or copies of such portions of any of the foregoing as the Commission may from time to time
by rules and regulations prescribe) which the Company may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934;
provided, however, that the Company shall not be required to deliver to the Trustee any
materials for which the Company has sought and obtained confidential treatment from the
Commission; or, if the Company is not required to file information, documents or reports
pursuant to either of said Sections, then it will file with the Trustee and the Commission,
in accordance with rules and regulations prescribed from time to time by the Commission,
such of the supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Securities Exchange Act of 1934 in respect of a
security listed and registered on a National Securities Exchange as may be prescribed from
time to time in such rules and regulations;

     (2) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

     (3) transmit by mail to all Holders, as their names and addresses appear in the
Security Registrar, within 30 days after the filing thereof with the Trustee, such summaries
of any information, documents and reports required to be filed by the Company pursuant to
paragraphs (1) and (2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.

 

 

45

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

ARTICLE EIGHT   

Consolidation, Merger, Sale, Conveyance or Lease

     SECTION 8.01. Consolidations and Mergers of Company and Conveyances Permitted Subject to
Certain Conditions.

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

     (1) in the event that the Company shall consolidate with or merge into another Person
or convey, transfer or lease its properties and assets substantially as an entirety to any
Person, the Person formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance or transfer, or which leases, the properties and assets
of the Company substantially as an entirety shall be a corporation organized and validly
existing under the laws of the United States of America, any State thereof or the District
of Columbia and, if the entity surviving such transaction or transferee entity is not the
Company, then such surviving or transferee entity shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the
Trustee, the due and punctual payment of the principal of and premium, if any, and interest,
if any, on all the Securities and the performance of every covenant of this Indenture on the
part of the Company to be performed or observed;

     (2) at the time of consummation of such transaction, no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default, shall have
happened and be continuing; and

     (3) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or
lease and, if a supplemental indenture is required in connection with such transaction,
such supplemental indenture, comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

     SECTION 8.02. Rights and Duties of Successor Corporation.

     Upon any consolidation or merger by the Company with or into any other corporation or any
conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety to any Person, in accordance with Section 8.01, the successor corporation formed by

 

46

such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor corporation had been named
as the Company herein, and thereafter, except in the case of a lease to another Person, the
predecessor corporation shall be relieved of all obligations and covenants under this Indenture and
the Securities.

     Such successor corporation thereupon may cause to be signed, and may issue either in its own
name or in the name of the Company, any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the
order of such successor corporation, instead of the Company, and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall
deliver any Securities which previously shall have been signed and delivered by the officers of the
Company to the Trustee for authentication, and any Securities which such successor corporation
thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the
Securities so issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the execution hereof.

     In case of any such consolidation, merger, sale or conveyance such changes in phraseology and
form (but not in substance) may be made in the Securities thereafter to be issued as may be
appropriate.

     SECTION 8.03. Officers’ Certificate and Opinion of Counsel.

     The Trustee, subject to the provisions of Section 6.01, shall be provided with an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation, merger,
sale or conveyance, and any such assumption, complies with the provisions of this Article Eight.

ARTICLE NINE   

Supplemental Indentures

     SECTION 9.01. Supplemental Indentures without Consent of Holders. The Company, when authorized by a Board Resolution, Guarantors, if any, when authorized by
a Board Resolution, Guarantors, if any, when authorized by a Board Resolution, and the Trustee may
from time to time and at any time enter into an indenture or indentures supplemental hereto for one
or more of the following purposes:

     (a) to evidence the succession of another corporation to the Company, or successive
successions, and the assumption by the successor corporation of the covenants, agreements
and obligations of the Company hereunder and the Securities or the Guarantees, if any; or

     (b) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the
Securities any property or assets which the Company may desire; or

 

47

     (c) to add to the covenants of the Company such further covenants, restrictions or
conditions for the protection of the Holders of all or any series of Securities (and if such
covenants are to be for the benefit of less than all series of Securities stating that such
covenants are expressly being included solely for the benefit of such series) as the Board
of Directors of the Company and the Trustee shall consider to be for the protection of the
Holders of such Securities, and to make the occurrence, or the occurrence and continuance,
of a default in any of such additional covenants, restrictions or conditions a default or an
Event of Default permitting the enforcement of all or any of the several remedies provided
in this Indenture as herein set forth; provided, however, that in respect of any such
additional covenant, restriction or condition such supplemental indenture may provide for a
particular period of grace after default (which period may be shorter or longer than that
allowed in the case of other defaults) or may provide for an immediate enforcement upon such
default or may limit the remedies available to the Trustee upon such default; or

     (d) to provide for the issuance under this Indenture of Securities in coupon form
(including Securities registrable as to principal only) and to provide for exchangeability
of such Securities with the Securities issued hereunder in fully registered form and to make
all appropriate changes for such purpose; or

     (e) to establish the form or terms of Securities or the Guarantees, if any, of any
series as permitted by Sections 2.01 and 3.01; or

     (f) to cure any ambiguity or to correct or supplement any provision contained herein or
in any supplemental indenture that may be defective or inconsistent with any other provision
contained herein or in any supplemental indenture, or to make such other provisions in
regard to matters or questions arising under this Indenture that shall not adversely affect
the interests of any Holder in any material respect; or

     (g) to evidence and provide for the acceptance of appointment hereunder by a successor
trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one trustee, pursuant to the
requirements of Section 6.11; or

     (h) to surrender any right or power herein conferred upon the Company;

     (i) to comply with the requirements of the Commission in order to maintain the
qualification of this Indenture under the Trust Indenture Act; or

     (j) to add or modify any other provisions with respect to matters or questions arising
under this Indenture which the Company and the Trustee may deem necessary or desirable;
provided, however, that such action pursuant to this clause (j) does not, in the good faith
opinion of the Board of Directors of the Company (as evidenced by a Board Resolution) and
the Trustee, adversely affect the interests of any Holder of Securities in any material
respect; or

 

48

     (k) to modify the covenants or Events of Default solely in respect of, or add new
covenants or Events of Default that apply solely to, Securities not Outstanding on the date
of such supplemental indenture; or

     (l) to provide for Guarantees of the Securities of any series and/or to specify the
ranking of the obligations of each Guarantor under its respective Guarantee.

     The Trustee is hereby authorized to join with the Company and the Guarantors, if any, in the
execution of any such supplemental indenture, to make any further appropriate agreements and
stipulations which may be therein contained and to accept the conveyance, transfer, assignment,
mortgage or pledge of any property thereunder, but the Trustee shall not be obligated to, but may
in its discretion, enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section 9.01 may be executed
by the Company, the Guarantors, if any, and the Trustee without the consent of the Holders of any
of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

     SECTION 9.02. Supplemental Indentures with Consent of Holders. With the consent (evidenced as
provided in Section 1.02) of the Holders of not less than a majority in aggregate principal amount
of the Outstanding Securities of each series affected by such supplemental indenture (each series
voting separately as a class), the Company, when authorized by a Board Resolution, the Guarantors,
if any, when authorized by a Board Resolution, and the Trustee may from time to time and at any
time enter into an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner or eliminating any of the provisions of
this Indenture or of any supplemental indenture or of modifying in any manner the rights of the
Holders of the Securities of each such series; provided, however, that no such supplemental
indenture shall (i) change the Stated Maturity of any Security, or reduce the rate or change the
time of payment of interest thereon, or reduce the principal amount thereof or any premium thereon,
or make the principal thereof or interest or premium thereon payable in any coin or currency other
than that provided in the Securities or reduce the amount of the principal of an Original Issue
Discount Security that would be due and payable upon an acceleration of the Maturity thereof
pursuant to Section 5.02 or the amount thereof provable in bankruptcy pursuant to Section 5.03 or impair the right to
institute suit for enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date), or adversely affect the right of
repayment, if any, at the option of the Holder without the consent of the Holder of each Security
so affected, (ii) reduce the aforesaid percentage of Securities, the Holders of which are required
to consent to any such supplemental indenture, or the Holders of which are required for any waiver
(of compliance with certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, (iii) modify the obligation of the Company to
maintain an office or agency pursuant to Section 10.02, (iv) release any Guarantor from its
obligations under its Guarantee (other than in accordance with the terms thereof) or (v) make any
change in the subordination provisions hereof that would adversely affect the Holders without the
consent of the Holder of each Security so affected. A supplemental indenture which changes or
eliminates

 

49

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

     Upon the request of the Company, accompanied by a Board Resolution authorizing the execution
of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent
of Holders as aforesaid, the Trustee shall join with the Company and the Guarantors, if any, in the
execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may
in its discretion, but shall not be obligated to, enter into such supplemental indenture. 

     It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such
consent shall approve the substance thereof.

     SECTION 9.03. Compliance with Trust Indenture Act; Effect of Supplemental Indentures. Any
supplemental indenture executed pursuant to the provisions of this Article Nine shall comply with
the Trust Indenture Act of 1939, as then in effect. Upon the execution of any supplemental
indenture pursuant to the provisions of this Article Nine, this Indenture shall be deemed to be
modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the Company, and the
Holders shall thereafter be determined, exercised and enforced hereunder subject in all respects to
such modifications and amendments and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any
and all purposes.

     SECTION 9.04. Notation on Securities. Securities authenticated and delivered after the
execution of any supplemental indenture pursuant to the provisions of this Article Nine may bear a
notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company or
the Trustee shall so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any modification of this Indenture contained
in any such supplemental indenture may be prepared and executed by the Company, authenticated by
the Trustee and delivered in exchange for the Securities of such series then Outstanding.

     SECTION 9.05. Evidence of Compliance of Supplemental Indenture to be Furnished Trustee.

     The Trustee, subject to the provisions of Section 6.01, shall be provided with an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant hereto complies with the requirements of this Article Nine.

 

50

ARTICLE TEN   

Covenants

     SECTION 10.01. Payment of Principal and Interest.

     The Company will duly and punctually pay or cause to be paid the principal of, premium, if
any, and interest, if any, on the Securities in accordance with the terms of the Securities and
this Indenture.

     SECTION 10.02. Maintenance of Office or Agency.

     The Company shall maintain an office or agency where Securities may be presented or
surrendered for payment and an office or agency where Securities may be surrendered for transfer or
exchange and where notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Corporate Trust Office of the Trustee shall be such office of the
Company, and the Trustee shall be the agent of the Company for all of the foregoing purposes,
unless the Company shall designate and maintain some other office or agency for such purposes and
give the Trustee written notice of the location thereof. The Company will give prompt written
notice to the Trustee of any change in the location of any such office or agency. If at any time
the Company shall fail to maintain any such required office or agency, the Corporate Trust Office
of the Trustee shall be conclusively deemed to be the agency of the Company for all such purposes.

     SECTION 10.03. Money for Security Payments to be Held in Trust.

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

     Whenever the Company shall have one or more Paying Agents it will, prior to 10:00 am on each
due date of the principal of or interest on, any Securities, deposit with a Paying Agent a sum
sufficient to pay the principal or premium, if any, or interest, so becoming due, such sum to be
held in trust for the benefit of the Persons entitled to such principal or premium, if any, or
interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

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

     (1) hold all sums held by it for the payment of the principal of or premium, if any, or
interest on Securities in trust for the benefit of the Persons entitled thereto until such
sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

51

     (2) give the Trustee notice of any default by the Company (or any other obligor upon
the Securities) in the making of any payment of principal or premium, if any, or interest;
and

     (3) at any time during the continuance of any such default, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

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

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or premium, if any, or interest on any Security and
remaining unclaimed for two years after such principal or premium, if any or interest has become
due and payable shall be paid to the Company on Company Request, or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Security shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation in the Borough of
Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed less than 30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Company.

     SECTION 10.04. Payment of Taxes and Other Claims.

     The Company will, and will cause any Significant Subsidiary to, promptly pay and discharge or
cause to be paid and discharged all material taxes, assessments and governmental charges or levies
lawfully imposed upon it or upon its income or profits or upon any of its property, real or
personal, or upon any part thereof, as well as all material claims for labor, materials and
supplies which, if unpaid, might by law become a lien or charge upon its property; provided,
however, that neither the Company nor any Significant Subsidiary shall be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge, levy, or claim if the
amount, applicability or validity thereof shall currently be contested in good faith by appropriate
proceedings and if the Company or such Significant Subsidiary, as the case may be, shall have set
aside on its books reserves deemed by it adequate with respect thereto.

 

52

     SECTION 10.05. Maintenance of Properties.

     The Company will maintain and keep its properties and every part thereof in such repair,
working order and condition, and make or cause to be made all such needful and proper repairs,
renewals and replacements thereto, as in the judgment of the Company are necessary in the interests
of the Company; provided, however, that nothing contained in this Section shall prevent the Company
from selling, abandoning or otherwise disposing of any of its properties or discontinuing a part of
its business from time to time if, in the judgment of the Company, such sale, abandonment,
disposition or discontinuance is advisable and does not materially adversely affect the interests
or business of the Company.

     SECTION 10.06. Statement as to Default.

     The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company (which as of the date hereof is December 31), an Officers’ Certificate stating that in
the course of the performance by the signers of their duties as Officers of the Company, they would
normally have knowledge of any failure by the Company to comply with all conditions, or any Default
by the Company with respect to any covenants, under this Indenture, and further stating whether or
not they have knowledge of any such failure or Default and, if so, specifying each such failure or
Default and the nature thereof. In the event an Officer of the Company comes to have actual
knowledge of a Default, regardless of the date, the
Company shall deliver an Officers’ Certificate to the Trustee specifying such Default and the
nature and status thereof.

     SECTION 10.07. Corporate Existence.

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

     SECTION 10.08. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any covenant or condition set
forth in Section 10.04, 10.05 and 10.07 or any covenant added for the benefit of any series of
Securities as contemplated by Section 3.01, if before or after the time for such compliance the
Holders of at least a majority in principal amount of the Securities of such series at the time
Outstanding shall, by Act of such Holders, waive such compliance in such instance, but no such
waiver shall extend to or affect such covenant or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such covenant or condition shall remain in full force and
effect.

 

53

     SECTION 10.09. Calculation of Original Issue Discount.

     The Company shall file with the Trustee promptly at the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including daily rates and accrual
periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific
information relating to such original issue discount as may then be relevant under the Internal
Revenue Code of 1986, as amended from time to time.

     SECTION 10.10. Reports.

     (a) The Company shall deliver to the Trustee within 15 days after it files them with the
Commission copies of the annual reports and of the information, documents, and other reports (or
copies of such portions of any of the foregoing as the Commission may by rules and regulations
prescribe) which the Company is required to file with the Commission pursuant to Section 13 or
15(d) of the Exchange Act; provided, however, the Company shall not be required to deliver to the
Trustee any materials for which the Company has sought and received confidential treatment by the
Commission. The Company also shall comply with the other provisions of Section 314(a) of the Trust
Indenture Act.

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

     (c) If at any time the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
the request of a Holder of a Security, the Company will promptly furnish or cause to be furnished
to such Holder or to a prospective purchaser of such Security designated by such Holder, as the
case may be, the information, if any, required to be delivered by it pursuant to Rule 144A(d)(4)
under the Securities Act of 1933, as amended, to permit compliance with Rule 144A in connection
with the resale of such Security.

ARTICLE ELEVEN   

Redemption of Securities

     SECTION 11.01. Applicability of Article. The provisions of this Article shall be applicable
to the Securities of any series which are redeemable before their maturity except as otherwise
specified as contemplated by Section 3.01 for Securities of such series.

     SECTION 11.02. Notice of Redemption; Selection of Securities. In case the Company shall
desire to exercise the right to redeem all, or, as the case may be, any part of the Securities of
any series in accordance with their terms, it shall fix a date for redemption and shall mail or
cause to be mailed a notice of such redemption at least 30 and not more than 60 days prior to the
date fixed for redemption to the Holders of Securities of such series so to be redeemed as a whole
or in part at their last addresses as the same appear on the Security Register. Such mailing shall
be by first class mail. The notice if mailed in the manner herein provided shall be conclusively
presumed to have been duly given, whether or not the Holder receives such notice.

 

54

In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Security of a
series designated for redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Security of such series.

     Each such notice of redemption shall include CUSIP numbers and specify the date fixed for
redemption, the redemption price at which Securities of such series are to be redeemed, the place
or places of payment, that payment will be made upon presentation and surrender of such Securities,
that any interest accrued to the date fixed for redemption will be paid as specified in said
notice, and that on and after said date any interest thereon or on the portions thereof to be
redeemed will cease to accrue. If less than all the Securities of a series are to be redeemed the
notice of redemption shall specify the numbers of the Securities of that series to be redeemed. In
case any Security of a series is to be redeemed in part only, the notice of redemption shall state
the portion of the principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Security, a new Security or Securities of
that series in principal amount equal to the unredeemed portion thereof will be issued.

     Prior to 10:00 am on the redemption date specified in the notice of redemption given as
provided in this Section 11.02, the Company will deposit with the Trustee or with one or more
paying agents an amount of money sufficient to redeem on the redemption date all the Securities or
portions thereof so called for redemption at the appropriate redemption price, together with
accrued interest to the date fixed for redemption.

     If all or less than all the Securities of a series are to be redeemed, the Company will give
the Trustee notice not less than 60 days prior to the redemption date as to the aggregate principal
amount of Securities to be redeemed and the Trustee shall select, in such manner as in its sole
discretion it shall deem appropriate, the Securities of that series or portions thereof (in
multiples of $1,000, except as otherwise set forth in the applicable form of Security) to be
redeemed.

     SECTION 11.03. Payment of Securities Called for Redemption. If notice of redemption has been
given as provided in Section 11.02 or Section 12.03, the Securities or portions of Securities of
the series with respect to which such notice has been given shall become due and payable on the
date and at the place or places stated in such notice at the applicable redemption price, together
with any interest accrued to the date fixed for redemption, and on and after said date (unless the
Company shall default in the payment of such Securities at the applicable redemption price,
together with any interest accrued to said date) any interest on the Securities or portions of
Securities of any series so called for redemption shall cease to accrue. On presentation and
surrender of such Securities at a place of payment in said notice specified, the said Securities or
the specified portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with any interest accrued thereon to the date fixed for redemption.

     Upon presentation of any Security redeemed in part only, the Company shall execute and the
Trustee shall authenticate and deliver to the Holder thereof, at the expense of the Company, a new
Security or Securities of such series, of authorized denominations, in principal amount equal to
the unredeemed portion of the Security so presented.

 

55

ARTICLE TWELVE   

Sinking Funds

     SECTION 12.01. Applicability of Article. The provisions of this Article shall be applicable
to any sinking fund for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 3.01 for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment”.

     SECTION 12.02. Satisfaction of Mandatory Sinking Fund Payments with Securities. In lieu of
making all or any part of any mandatory sinking fund payment with respect to any Securities of a
series in cash, the Company may at its option (a) deliver to the Trustee Securities of that series
theretofore purchased or otherwise acquired by the Company, or (b) receive credit for the principal
amount of Securities of that series which have been previously delivered by the Trustee to the
Company which have been redeemed either at the election of the Company pursuant to the terms of
such Securities or through the application of permitted optional sinking fund payments pursuant to
the terms of such Securities; provided that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee at the Redemption
Price specified in such Securities for redemption through operation of the sinking fund and the
amount of such mandatory sinking fund payment shall be reduced accordingly.

     SECTION 12.03. Redemption of Securities for Sinking Fund. Not less than 60 days prior to each
sinking fund payment date for any series of Securities, the Company will deliver to the Trustee a
certificate signed by the Treasurer or any Assistant Treasurer of the Company specifying the amount
of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the
portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering or crediting Securities of that series pursuant to
Section 12.02 (which Securities will, if not previously delivered, accompany such certificate) and
whether the Company intends to exercise its right to make a permitted optional sinking fund
payment with respect to such series. Such certificate shall also state that no Event of Default
has occurred and is continuing with respect to such series. Such certificate shall be irrevocable
and upon its delivery the Company shall be obligated to make the cash payment or payments therein
referred to, if any, on or before the next succeeding sinking fund payment date. In the case of
the failure of the Company to deliver such certificate (or to deliver the Securities specified in
this paragraph), the sinking fund payment due on the next succeeding sinking fund payment date for
that series shall be paid entirely in cash and shall be sufficient to redeem the principal amount
of such Securities subject to a mandatory sinking fund payment without the option to deliver or
credit Securities as provided in Section 12.02 and without the right to make any optional sinking
fund payment, if any, with respect to such series.

     Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused
balance of any preceding sinking fund payments made in cash which shall equal or

 

56

exceed $100,000 (or a lesser sum if the Company shall so request) with respect to the Securities of any particular
series shall be applied by the Trustee on the sinking fund payment date on which such payment is
made (or, if such payment is made before a sinking fund payment date, on the sinking fund payment
date following the date of such payment) to the redemption of such Securities at the Redemption
Price specified in such Securities for operation of the sinking fund together with accrued interest
to the date fixed for redemption. Any sinking fund moneys not so applied or allocated by the
Trustee to the redemption of Securities shall be added to the next cash sinking fund payment
received by the Trustee for such series and, together with such payment, shall be applied in
accordance with the provisions of this Section 12.03. Any and all sinking fund moneys with respect
to the Securities of any particular series held by the Trustee on the last
sinking fund payment date with respect to Securities of such series and not held for the
payment or redemption of particular Securities shall be applied by the Trustee, together with other
moneys, if necessary, to be deposited sufficient for the purpose, to the payment of the principal
of the Securities of that series at maturity.

     The Trustee shall select the Securities to be redeemed upon such sinking fund payment date in
the manner specified in the last paragraph of Section 11.02 and the Company shall cause notice of
the redemption thereof to be given in the manner provided in Section 11.02 except that the notice
of redemption shall also state that the Securities are being redeemed by operation of the sinking
fund. Such notice having been duly given, the redemption of such Securities shall be made upon the
terms and in the manner stated in Section 11.03.

     Prior to 10:00 am on each sinking fund payment date, the Company shall pay to the Trustee in
cash a sum equal to any interest accrued to the date fixed for redemption of Securities or portions
thereof to be redeemed on such sinking fund payment date pursuant to this Section.

     The Trustee shall not redeem any Securities of a series with sinking fund moneys or mail any
notice of redemption of such Securities by operation of the sinking fund for such series during the
continuance of a default in payment of interest on such Securities or of any Event of Default
(other than an Event of Default occurring as a consequence of this paragraph) with respect to such
Securities, except that if the notice of redemption of any such Securities shall theretofore have
been mailed in accordance with the provisions hereof, the Trustee shall redeem such Securities if
cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance
with the terms of this Article. Except as aforesaid, any moneys in the sinking fund for such
series at the time when any such default or Event of Default shall occur and any moneys thereafter
paid into such sinking fund shall, during the continuance of such default or Event of Default, be
held as security for the payment of such Securities; provided, however, that in case such Event of
Default or default shall have cured or waived as provided herein, such moneys shall thereafter be
applied on the next sinking fund payment date for such Securities on which such moneys may be
applied pursuant to the provisions of this Section.

ARTICLE THIRTEEN   

Defeasance

 

57

     SECTION 13.01. Applicability of Article. The provisions of this Article shall be applicable
to Securities of a series except as otherwise specified pursuant to Section 3.01 for Securities of
such series.

     SECTION 13.02. Defeasance Upon Deposit of Moneys or U.S. Government Obligations. At the
Company’s option, either (a) the Company shall be deemed to have been Discharged (as defined below)
from its obligations with respect to Securities of any series (“Legal Defeasance Option”) or (b)
the Company shall cease to be under any obligation to comply with any term, provision or condition
set forth in Sections 8.01, 10.04 and 10.05 with respect to Securities of any series (and, if so
specified pursuant to Section 3.01, any other
obligation of the Company or restrictive covenant added for the benefit of such series
pursuant to Section 3.01) (“Covenant Defeasance Option”) at any time after the applicable
conditions set forth below have been satisfied:

     (1) the Company shall have deposited or caused to be deposited irrevocably with the
Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of the Securities of such series (i) money in an amount, or
(ii) U.S. Government Obligations (as defined below) which through the payment of interest
and principal in respect thereof in accordance with their terms will provide, not later than
one day before the due date of any payment, money in an amount, or (iii) a combination of
(i) and (ii), sufficient, in the opinion (with respect to (i) and (ii)) 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
(including any mandatory sinking fund payments) of and premium, if any, and interest on, the
Outstanding Securities of such series on the dates such installments of interest or
principal and premium are due;

     (2) such deposit shall not cause the Trustee with respect to the Securities of that
series to have a conflicting interest as defined in Section 6.08 and for purposes of the
Trust Indenture Act with respect to the Securities of any series;

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

     (4) no Event of Default or event (including such deposit) which, with notice or lapse
of time or both, would become an Event of Default with respect to the Securities of such
series shall have occurred and be continuing on the date of such deposit and, with respect
to the legal defeasance option only, no Event of Default under Section 5.01(e) or event
which with the giving of notice or lapse of time, or both, would become an Event of Default
under Section 5.01(e) or Section 5.01(f) shall have occurred and be continuing on the 91st
day after such date; and

     (5) the Company shall have delivered to the Trustee an Opinion of Counsel or a ruling
from the Internal Revenue Service to the effect 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 or Discharge.

 

58

     Notwithstanding the foregoing, if the Company exercises its covenant defeasance option and an
Event of Default under Section 5.01(e) or event which with the giving of notice or lapse of time,
or both, would become an Event of Default under Section 5.01(e) shall have occurred and be
continuing on the 91st day after the date of such deposit, the obligations of the Company referred
to under the definition of covenant defeasance option with respect to such Securities shall be
reinstated.

     “Discharged” means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by, and obligations under, the Securities of such series and to
have satisfied all the obligations under this Indenture relating to the Securities of such
series (and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), except (A) the rights of Holders of Securities of such series to receive,
from the trust fund described in clause (1) above, payment of the principal of (and premium, if
any) and interest on such Securities when such payments are due, (B) the Company’s obligations with
respect to the Securities of such series under Sections 3.05, 3.06, 3.07, 10.02 and 13.03 and to
the Trustee under Section 6.07 and (C) the rights, powers, trusts, duties and immunities of the
Trustee hereunder.

     “U.S. Government Obligations” means securities that are (i) direct obligations of the United
States for the payment of which its full faith and credit is pledged, or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of the United States
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the
United States, which, in either case under clauses (i) or (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 or the specific payment of interest on or principal of the U.S. Government Obligation
evidenced by such depository receipt.

     SECTION 13.03. Deposited Moneys and U.S. Government Obligations to Be Held in Trust. All
moneys and U.S. Government Obligations deposited with the Trustee pursuant to Section 13.02 in
respect of Securities of a series shall be held in trust and applied by it, in accordance with the
provisions of such Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Holders of such Securities, of all sums due and to become due thereon for principal (and
premium, if any) and interest, if any, but such money need not be segregated from other funds
except to the extent required by law.

     SECTION 13.04. Repayment to Company.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium or interest on any Security and remaining
unclaimed for two years after such principal and premium, if any, or interest has become due and
payable shall be paid to the Company on its request or (if then held by the

 

59

Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
creditor, look only to the Company for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof,
shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company
cause to be published once, in The New York Times and The Wall Street Journal
(national edition), notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such notification or publication,
any unclaimed balance of such money then remaining will be repaid to the Company.

ARTICLE
FOURTEEN   

SUBORDINATION

     SECTION 14.01. Agreement to Subordinate. The Company agrees, and each Holder by accepting a
Security agrees, that the payment of all obligations owing in respect of the Securities is
subordinated in right of payment, to the extent and in the manner provided in this Article
Fourteen, to the prior payment in full of all existing and future Senior Indebtedness of the
Company and that the subordination is for the benefit of and enforceable by the holders of such
Senior Indebtedness. The Securities shall in all respects rank pari passu in right of payment with
all existing and future Senior Subordinated Indebtedness of the Company, and will be senior in
right of payment to all existing and future Subordinated Indebtedness of the Company; and only
indebtedness of the Company that is Senior Indebtedness shall rank senior to the Securities in
accordance with the provisions set forth herein. All provisions of this Article Fourteen shall be
subject to Section 14.12.

     SECTION 14.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the
assets of the Company to creditors upon a total or partial liquidation or a total or partial
dissolution of the Company or in a reorganization of or similar proceeding relating to the Company
or its property:

     (a) the holders of Senior Indebtedness of the Company shall be entitled to receive payment in
full in cash of such Senior Indebtedness before Holders shall be entitled to receive any payment;
and

     (b) until the Senior Indebtedness of the Company is paid in full in cash, any payment or
distribution to which Holders would be entitled but for the subordination provisions of this
Indenture shall be made to holders of such Senior Indebtedness as their interests may appear,
except that Holders may receive Permitted Junior Securities.

     SECTION 14.03. Default on Senior Indebtedness of the Company. The Company shall not pay
principal of, premium, if any, or interest on the Securities (or pay any other obligations relating
to the Securities, including additional interest, fees, costs, expenses, indemnities and rescission
or damage claims) or make any deposit pursuant to Article Four or Article Thirteen hereof and may
not purchase, redeem or otherwise retire any Securities (collectively, “pay the Securities”)
(except in the form of Permitted Junior Securities) if either of the following occurs (a “Payment
Default”):

 

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     (a) any obligation on any Designated Senior Indebtedness of the Company is not paid in full in
cash when due (after giving effect to any applicable grace period); or

     (b) any other default on Designated Senior Indebtedness of the Company occurs and the maturity
of such Designated Senior Indebtedness is accelerated in accordance with its terms;

unless, in either case, the Payment Default has been cured or waived and any such acceleration has
been rescinded or such Designated Senior Indebtedness has been paid in full in cash; provided,
however, that the Company shall be entitled to pay the Securities without regard to the foregoing
if the Company and the Trustee receive written notice approving such payment from the
Representatives of all Designated Senior Indebtedness with respect to which the Payment Default has
occurred and is continuing.

During the continuance of any default (other than a Payment Default) (a “Non-Payment Default”) with
respect to any Designated Senior Indebtedness of the Company pursuant to which the maturity thereof
may be accelerated without further notice (except such notice as may be required to effect such
acceleration) or the expiration of any applicable grace periods, the Company shall not pay the
Securities (except in the form of Permitted Junior Securities) for a period (a “Payment Blockage
Period”) commencing upon the receipt by the Trustee (with a copy to the Company) of written notice
(a “Blockage Notice”) of such Non-Payment Default from the Representative of such Designated Senior
Indebtedness specifying an election to effect a Payment Blockage Period and ending 179 days
thereafter. So long as there shall remain outstanding any Senior Indebtedness under the Senior
Credit Facilities, a Blockage Notice may be given only by the administrative agent thereunder
unless otherwise agreed to in writing by the requisite lenders named therein. The Payment Blockage
Period shall end earlier if such Payment Blockage Period is terminated (i) by written notice to the
Trustee and the Company from the Person or Persons who gave such Blockage Notice; (ii) because the
default giving rise to such Blockage Notice is cured, waived or otherwise no longer continuing; or
(iii) because such Designated Senior Indebtedness has been discharged or repaid in full in cash.

     Notwithstanding the provisions described in the immediately preceding two sentences (but
subject to the provisions contained in the first sentence of this Section 14.03 and Section 14.02
hereof), unless the holders of such Designated Senior Indebtedness or the Representative of such
Designated Senior Indebtedness shall have accelerated the maturity of such Designated Senior
Indebtedness or a Payment Default has occurred and is continuing, the Company shall be entitled to
resume paying the Securities after the end of such Payment Blockage Period. The Securities shall
not be subject to more than one Payment Blockage Period in any consecutive 360-day period
irrespective of the number of defaults with respect to Designated Senior Indebtedness of the
Company during such period; provided that if any Blockage Notice is delivered to the Trustee by or
on behalf of the holders of Designated Senior Indebtedness of the Company (other than the holders
of indebtedness under the Senior Credit Facilities), a Representative of holders of indebtedness
under the Senior Credit Facilities may give another Blockage Notice within such period. However,
in no event shall the total number of days during which any Payment Blockage Period or Periods on
the Securities is in effect exceed 179 days in the aggregate during any consecutive 360-day period,
and there must be at least 181 days during any consecutive 360-day period during which no Payment
Blockage Period is in effect. Notwithstanding the foregoing, however, no default that existed or
was continuing on the date of

 

61

delivery of any Blockage Notice to the Trustee shall be, or be made,
the basis for a subsequent Blockage Notice unless such default shall have been waived for a period
of not less than 90 days (it being acknowledged that any subsequent action, or any breach of any
financial covenants during the period after the date of delivery of a Blockage Notice, that, in either case, would
give rise to a Non-Payment Default pursuant to any provisions under which a Non-Payment Default
previously existed or was continuing shall constitute a new Non-Payment Default for this purpose).

     SECTION 14.04. Acceleration of Payment of Securities. If payment of the Securities is
accelerated because of an Event of Default, the Company shall promptly notify the holders of the
Designated Senior Indebtedness of the Company or the Representative of such Designated Senior
Indebtedness of the acceleration; provided that any failure to give such notice shall have no
effect whatsoever on the provisions of this Article Fourteen. If any Designated Senior
Indebtedness of the Company is outstanding, the Company may not pay the Securities until five
Business Days after the Representatives of all the holders of such Designated Senior Indebtedness
receive notice of such acceleration and, thereafter, may pay the Securities only if this Indenture
otherwise permits payment at that time.

     SECTION 14.05. When Distribution Must Be Paid Over. If a distribution is made to Holders
that, due to the subordination provisions, should not have been made to them, such Holders are
required to hold it in trust for the holders of Senior Indebtedness of the Company and pay it over
to them as their interests may appear.

     SECTION 14.06. Subrogation. After all Senior Indebtedness of the Company is paid in full and
until the Securities are paid in full, Holders shall be subrogated to the rights of holders of such
Senior Indebtedness to receive distributions applicable to such Senior Indebtedness. A
distribution made under this Article Fourteen to holders of such Senior Indebtedness which
otherwise would have been made to Holders is not, as between the Company and Holders, a payment by
the Company on such Senior Indebtedness.

     SECTION 14.07. Relative Rights. This Article Fourteen defines the relative rights of Holders
and holders of Senior Indebtedness of the Company. Nothing in this Indenture shall:

     (a) impair, as between the Company and Holders, the obligation of the Company, which is
absolute and unconditional, to pay principal of and interest on the Securities in accordance
with their terms;

     (b) prevent the Trustee or any Holder from exercising its available remedies upon a
Default, subject to the rights of holders of Senior Indebtedness of the Company to receive
payments or distributions otherwise payable to Holders and such other rights of such holders
of Senior Indebtedness as set forth herein; or

     (c) affect the relative rights of Holders and creditors of the Company other than their
rights in relation to holders of Senior Indebtedness.

     SECTION 14.08. Subordination May Not Be Impaired by Company. No right of any holder of Senior
Indebtedness of the Company to enforce the subordination of the indebtedness

 

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evidenced by the
Securities shall be impaired by any act or failure to act by the Company or by their failure to
comply with this Indenture.

     SECTION 14.09. Rights of Trustee and Paying Agent. Notwithstanding Section 14.03 hereof, the
Trustee or any Paying Agent may continue to make payments on the Securities and shall not be
charged with knowledge of the existence of facts that would prohibit the making of any payments
unless, not less than two Business Days prior to the date of such payment, a Responsible Officer of
the Trustee receives notice satisfactory to him that payments may not be made under this Article
Fourteen. The Company, the Security Registrar, the Paying Agent, a Representative or a holder of
Senior Indebtedness of the Company shall be entitled to give the notice; provided, however, that,
if an issue of Senior Indebtedness of the Company has a Representative, only the Representative
shall be entitled to give the notice.

     The Trustee in its individual or any other capacity shall be entitled to hold Senior
Indebtedness of the Company with the same rights it would have if it were not Trustee. The
Security Registrar and the Paying Agent shall be entitled to do the same with like rights. The
Trustee shall be entitled to all the rights set forth in this Article Fourteen with respect to any
Senior Indebtedness of the Company which may at any time be held by it, to the same extent as any
other holder of such Senior Indebtedness; and nothing in Article Six shall deprive the Trustee of
any of its rights as such holder. Nothing in this Article Fourteen shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 6.07 hereof or any other Section of this
Indenture.

     SECTION 14.10. Distribution or Notice to Representative. Whenever a distribution is to be
made or a notice given to holders of Senior Indebtedness of the Company, the distribution may be
made and the notice given to their Representative (if any).

     SECTION 14.11. Article Fourteen Not to Prevent Events of Default or Limit Right to Accelerate.
The failure to make a payment pursuant to the Securities by reason of any provision in this
Article Fourteen shall not be construed as preventing the occurrence of a Default. Nothing in this
Article Fourteen shall have any effect on the right of the Holders or the Trustee to accelerate the
maturity of the Securities.

     SECTION 14.12. Trust Moneys Not Subordinated. Notwithstanding anything contained herein to
the contrary, payments from money or the proceeds of U.S. Government Obligations held in trust by
the Trustee for the payment of principal of and interest on the Securities pursuant to Article Four
or Article Thirteen hereof shall not be subordinated to the prior payment of any Senior
Indebtedness of the Company or
subject to the restrictions set forth in this Article Fourteen, and none of the Holders shall
be obligated to pay over any such amount to the Company or any holder of Senior Indebtedness of the
Company or any other creditor of the Company, provided that the subordination provisions of this
Article Fourteen were not violated at the time the applicable amounts were deposited in trust
pursuant to Article Four or Article Thirteen hereof, as the case may be.

     SECTION 14.13. Trustee Entitled to Rely. Upon any payment or distribution pursuant to this
Article Fourteen, the Trustee and the Holders shall be entitled to rely (a) upon any order or
decree of a court of competent jurisdiction in which any proceedings of the nature referred to in

 

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Section 14.02 hereof are pending, (b) upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to the Holders or (c) upon the
Representatives of Senior Indebtedness of the Company for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of such Senior Indebtedness
and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article Fourteen. In
the event that the Trustee determines, in good faith, that evidence is required with respect to the
right of any Person as a holder of Senior Indebtedness of the Company to participate in any payment
or distribution pursuant to this Article Fourteen, the Trustee shall be entitled to request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of such
Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and other facts pertinent to the rights of such Person under this
Article Fourteen, and, if such evidence is not furnished, the Trustee shall be entitled to defer
any payment to such Person pending judicial determination as to the right of such Person to receive
such payment. The provisions of Section 6.01 and Section 6.03 hereof shall be applicable to all
actions or omissions of actions by the Trustee pursuant to this Article Fourteen.

     SECTION 14.14. Trustee to Effectuate Subordination. A Holder by its acceptance of a Security
agrees to be bound by this Article Fourteen and authorizes and expressly directs the Trustee, on
his behalf, to take such action as may be necessary or appropriate to effectuate the subordination
between the Holders and the holders of Senior Indebtedness of the Company as provided in this
Article Fourteen and appoints the Trustee as attorney-in-fact for any and all such purposes.

     SECTION 14.15. Trustee Not Fiduciary for Holders of Senior Indebtedness of the Company. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the
Company and shall not be liable to any such holders if it shall mistakenly pay over or distribute
to Holders or the Company or any other Person, money or assets to which any holders of Senior
Indebtedness of the Company shall be entitled by virtue of this Article Fourteen or otherwise.

     SECTION 14.16. Reliance by Holders of Senior Indebtedness of the Company on Subordination
Provisions. Each Holder by accepting a Security acknowledges and agrees that the foregoing
subordination provisions are, and are intended to be, an inducement and a consideration to each
holder of any Senior Indebtedness of the Company, whether such Senior Indebtedness was created or
acquired before or after the issuance of the Securities, to acquire and continue to hold, or to
continue to hold, such Senior Indebtedness and such holder of such Senior Indebtedness shall be
deemed conclusively to have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Indebtedness.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness of the Company may, at any time and from time to time, without the consent of or
notice to the Trustee or the Holders, without incurring responsibility to the Trustee or the
Holders and without impairing or releasing the subordination provided in this Article Fourteen or
the obligations hereunder of the Holders to the holders of the Senior Indebtedness of the Company,
do any one or more of the following: (a) change the manner, place or terms of

 

64

payment or extend the time of payment of, or renew or alter, Senior Indebtedness of the Company, or otherwise amend
or supplement in any manner Senior Indebtedness of the Company, or any instrument evidencing the
same or any agreement under which Senior Indebtedness of the Company is outstanding; (b) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Indebtedness of the Company; (c) release any Person liable in any manner for the payment or
collection of Senior Indebtedness of the Company; and (d) exercise or refrain from exercising any
rights against the Company and any other Person.

     SECTION 14.17. Defeasance. The terms of this Article Fourteen shall not apply to payments
from money or the proceeds of U.S. Government Obligations held in trust by the Trustee for the
payment of principal of and interest on the Securities pursuant to Sections 13.02 and 13.03.

ARTICLE
FIFTEEN   

Guarantees

     SECTION 15.01. Applicability of Article. The provisions of this Article shall be applicable
to each of the Guarantors for the Guarantee of Securities of a series.

     SECTION 15.02. Guarantee. Each Guarantor of a particular series of Securities hereby
unconditionally guarantees (each such guarantee to be referred to herein as a “Guarantee”), jointly
and severally with each other Guarantor of the Securities of that series, if any, to each Holder of
such Securities authenticated and delivered by the Trustee and to the Trustee and its successors
and assigns, irrespective of the validity and enforceability of this Indenture, such Securities or
the obligations of the Company hereunder or thereunder, (i) the due and punctual payment of the
principal of and any premium or interest on such Securities, whether at maturity or on an interest
payment date, by acceleration, pursuant to an offer to purchase such Securities or otherwise, and
interest on the overdue principal of and interest, if any, on such Securities, if lawful, and all
other obligations of the Company to the Holders of such Securities or the Trustee hereunder or
thereunder shall be promptly paid in full, all in accordance with the terms hereof and thereof
including all amounts payable to the Trustee under Section 6.07 hereof, and (ii) in case of any
extension of time of payment or renewal of any such Securities or any of such other obligations,
the same shall be promptly paid in full when due or to be performed in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration or otherwise.

     If the Company fails to make any payment when due of any amount so guaranteed for whatever
reason, the Guarantor of the Securities of that series shall be obligated, jointly and severally
with each other Guarantor, if any, to pay the same immediately. Each Guarantor hereby agrees that
its obligations hereunder shall be continuing, absolute and unconditional, irrespective of, and
shall be unaffected by, the validity, regularity or enforceability of the Securities, this
Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of
the Securities or the Trustee with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of such Guarantor. Each Guarantor
hereby waives diligence, presentment, demand of payment, demand

 

65

of performance, filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, the benefit of discussion, protest, notice and all demand
whatsoever and covenants that its Guarantee shall not be discharged except by complete performance
of the obligations contained in the Securities guaranteed by such Guarantee, in this Indenture and
in this Article Fifteen. If any Holder of Securities of a series guaranteed hereby or the Trustee
is required by any court or otherwise to return to the Company or any Guarantor of such Securities,
or any custodian, trustee, liquidator or other similar official acting in relation to the Company
or any Guarantor, any amount paid by the Company or any Guarantor of such Securities to the Trustee
or such Holder, this Article Fifteen, to the extent theretofore discharged with respect to any
Guarantee of such Securities, shall be reinstated in full force and effect. Each Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the Holders of Securities
of a series guaranteed hereby by such Guarantor in respect of any obligations guaranteed hereby by
such Guarantee until payment in full of all such obligations. Each Guarantor further agrees that,
as between such Guarantor, on the one hand, and the Holders of Securities of a series guaranteed
hereby by such Guarantor and the Trustee on the other hand, (i) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article Five hereof for the purposes of such
Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration
in respect of the obligations guaranteed hereby and (ii) in the event of any acceleration of such
obligations as provided in Article Five hereof such obligations (whether or not due and payable)
shall forthwith become due and payable by such Guarantor, jointly and severally with any other
Guarantor of such Securities, for the purpose of this Article Fifteen. In addition, without
limiting the foregoing, upon the effectiveness of an acceleration under Article Five, the Trustee
may make a demand for payment on the Securities under any Guarantee provided hereunder and not
discharged.

     With respect to each Guarantee by a Guarantor, such Guarantor shall be subrogated to all
rights of the Holder of any Securities guaranteed hereby by such Guarantee against the Company in
respect of any amounts paid to such Holder by such Guarantor pursuant to the provisions of such
Guarantee; provided that the Guarantor shall not be entitled to enforce, or to receive any
payments arising out of or based upon, such right of subrogation until the principal of and
interest on all such Securities shall have been paid in full.

     The Guarantee set forth in this Section 15.02 shall not be valid or become obligatory for any
purpose with respect to a Security until the certificate of authentication on such Security shall
have been signed by the Trustee or any duly appointed agent.

     The Guarantees provided in this Section 15.02 shall not be valid or become obligatory for any
purpose with respect to a Security until the certificate of authentication on such Security shall
have been signed by the Trustee or any duly appointed agent.

     SECTION 15.03. Obligations of the Guarantor Unconditional. Nothing contained in this Article
Fifteen or elsewhere in this Indenture or in any Security is intended to or shall impair, as
between a Guarantor and the Holders of the Securities guaranteed by such Guarantor’s Guarantee, the
obligations of such Guarantor, which are absolute and unconditional, to pay to such Holders the
principal of and interest on the as and when the same shall become due and payable in accordance
with the provisions of this Guarantee or is intended to or shall affect the

 

66

relative rights of such
Holders and creditors of such Guarantor, nor shall anything herein or therein prevent the Trustee
or such Holder from exercising all remedies otherwise permitted by applicable law upon Default
under this Indenture in respect of cash, property or securities of such Guarantor received upon the
exercise of any such remedy;

     Upon any distribution of assets of a Guarantor referred to in this Article Fifteen, the
Trustee, subject to the provisions of Sections 6.01 and 6.02, and the Holders of the Securities
guaranteed hereby by such Guarantor shall be entitled to rely upon any order or decree made by any
court of competent jurisdiction in which such dissolution, winding up, liquidation or
reorganization proceedings are pending, or a certificate of the liquidating trustee or agent or
other person making any distribution to the Trustee or to such Holders, for the purpose of
ascertaining the persons entitled to participate in such distribution, the holders of other
indebtedness of such Guarantor, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article Fifteen.

     SECTION 15.04. Article Fifteen Not To Prevent Events of Default. The failure to make a
payment on account of principal or interest on the Securities of any series by reason of any
provision in this Article Fifteen shall not be construed as preventing the occurrence of an Event
of Default under Section 5.01.

     SECTION 15.05. Execution and Delivery of Guarantee. To evidence a Guarantee set forth in this
Article Fifteen, the Guarantor hereby agrees that the Guarantee Notation, substantially in the form
of Exhibit B hereto, shall be endorsed on each Security authenticated and delivered by the Trustee
that is guaranteed by such Guarantee and that this Indenture shall be executed on behalf of such
Guarantor by its Chairman of the Board, its President or one of its Vice Presidents under a
facsimile of its seal reproduced thereon.

     Each Guarantor hereby agrees that its Guarantee shall remain in full force and effect
notwithstanding any failure to endorse the Guarantee Notation on each such Security.

     If an officer whose signature is on this Indenture or on the Securities guaranteed hereby no
longer holds that office at the time the Trustee authenticates the Security on which a notation of
the Guarantee is endorsed, such Guarantee shall be valid nevertheless.

     The delivery of any Security by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of each Guarantee thereof.

ARTICLE
SIXTEEN   

Subordination of Guarantees

     SECTION 16.01. Agreement to Subordinate. Each Guarantor agrees, and each Holder by accepting
a Security agrees, that the obligations of such Guarantor under its Guarantee are subordinated in
right of payment, to the extent and in the manner provided in this Article Sixteen, to the prior
payment in full of all existing and future Senior Indebtedness of such Guarantor and that the
subordination is for the benefit of and enforceable by the holders of such Senior Indebtedness. A
Guarantor’s obligations under its Guarantee shall in all respects rank pari passu in right of
payment with all existing and future Senior Subordinated Indebtedness of such Guarantor, and will
be senior in right of payment to all existing and future Subordinated

 

67

Indebtedness of such Guarantor; and only indebtedness of such Guarantor that is Senior Indebtedness shall rank senior to
the obligations of such Guarantor under its Guarantee in accordance with the provisions set forth
herein. All provisions of this Article Sixteen shall be subject to Section 16.12.

     SECTION 16.02. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the
assets of a Guarantor to creditors upon a total or partial liquidation or a total or partial
dissolution of such Guarantor or in a reorganization of or similar proceeding relating to such
Guarantor or its property:

     (a) the holders of Senior Indebtedness of such Guarantor shall be entitled to receive
payment in full in cash of such Senior Indebtedness before Holders shall be entitled to
receive any payment; and

     (b) until the Senior Indebtedness of such Guarantor is paid in full in cash, any
payment or distribution to which Holders would be entitled but for the subordination
provisions of this Indenture shall be made to holders of such Senior Indebtedness as their
interests may appear, except that Holders may receive Permitted Junior Securities.

     SECTION 16.03. Default on Senior Indebtedness of a Guarantor. A Guarantor shall not make any
payment pursuant to its Guarantee (or pay any other obligations relating to its Guarantee,
including additional interest, fees, costs, expenses, indemnities and rescission or damage claims)
and may not purchase, redeem or otherwise retire
any Securities (collectively, “pay its Guarantee”) (except in the form of Permitted Junior
Securities) if either of the following occurs (a “Guarantor Payment Default”):

     (a) any obligation on any Designated Senior Indebtedness of such Guarantor is not paid
in full in cash when due (after giving effect to any applicable grace period); or

     (b) any other default on Designated Senior Indebtedness of such Guarantor occurs and
the maturity of such Designated Senior Indebtedness is accelerated in accordance with its
terms;

unless, in either case, the Guarantor Payment Default has been cured or waived and any such
acceleration has been rescinded or such Designated Senior Indebtedness has been paid in full in
cash; provided, however, that such Guarantor shall be entitled to pay its Guarantee without regard
to the foregoing if such Guarantor and the Trustee receive written notice approving such payment
from the Representatives of all Designated Senior Indebtedness with respect to which the Guarantor
Payment Default has occurred and is continuing.

     During the continuance of any default (other than a Guarantor Payment Default) (a
“Non-Guarantor Payment Default”) with respect to any Designated Senior Indebtedness of a Guarantor
pursuant to which the maturity thereof may be accelerated without further notice (except such
notice as may be required to effect such acceleration) or the expiration of any applicable grace
periods, such Guarantor shall not pay its Guarantee (except in the form of Permitted Junior
Securities) for a period (a “Guarantee Payment Blockage Period”) commencing upon the receipt by the
Trustee (with a copy to such Guarantor and the Company) of written notice (a “Guarantee Blockage
Notice”) of such Non-Guarantor Payment Default from the Representative of such

 

68

Designated Senior Indebtedness specifying an election to effect a Guarantee Payment Blockage Period and ending 179
days thereafter. So long as there shall remain outstanding any Senior Indebtedness under the
Senior Credit Facilities, a Guarantee Blockage Notice may be given only by the administrative agent
thereunder unless otherwise agreed to in writing by the requisite lenders named therein. The
Guarantee Payment Blockage Period shall end earlier if such Guarantee Payment Blockage Period is
terminated (i) by written notice to the Trustee, the relevant Guarantor and the Company from the
Person or Persons who gave such Guarantee Blockage Notice; (ii) because the default giving rise to
such Guarantee Blockage Notice is cured, waived or otherwise no longer continuing; or (iii) because
such Designated Senior Indebtedness has been discharged or repaid in full in cash. Notwithstanding
the provisions described in the immediately preceding two sentences (but subject to the provisions
contained in the first sentence of this Section 16.03 and Section 16.02 hereof), unless the holders
of such Designated Senior Indebtedness or the Representative of such Designated Senior Indebtedness
shall have accelerated the maturity of such Designated Senior Indebtedness or a Guarantor Payment
Default has occurred and is continuing, the relevant Guarantor shall be entitled to resume paying
its Guarantee after the end of such Guarantee Payment Blockage Period. Each Guarantee shall not be
subject to more than one Guarantee Payment Blockage Period in any consecutive 360-day period
irrespective of the number of defaults with respect to Designated Senior Indebtedness of the
relevant Guarantor during such period; provided that if any Guarantee Blockage Notice is delivered
to the Trustee by or on behalf of the holders of Designated Senior Indebtedness of such Guarantor
(other than the holders of indebtedness under the Senior Credit Facilities), a Representative of holders of
indebtedness under the Senior Credit Facilities may give another Guarantee Blockage Notice within
such period. However, in no event shall the total number of days during which any Guarantee
Payment Blockage Period or Periods on a Guarantee is in effect exceed 179 days in the aggregate
during any consecutive 360-day period, and there must be at least 181 days during any consecutive
360-day period during which no Guarantee Payment Blockage Period is in effect. Notwithstanding the
foregoing, however, no default that existed or was continuing on the date of delivery of any
Guarantee Blockage Notice to the Trustee shall be, or be made, the basis for a subsequent Guarantee
Blockage Notice unless such default shall have been waived for a period of not less than 90 days
(it being acknowledged that any subsequent action, or any breach of any financial covenants during
the period after the date of delivery of a Guarantee Blockage Notice, that, in either case, would
give rise to a Non-Guarantor Payment Default pursuant to any provisions under which a Non-Guarantor
Payment Default previously existed or was continuing shall constitute a new Non-Guarantor Payment
Default for this purpose).

     SECTION 16.04. Demand for Payment. If payment of the Securities is accelerated because of an
Event of Default and a demand for payment is made on a Guarantor pursuant to Article Fifteen
hereof, the Company or such Guarantor shall promptly notify the holders of the Designated Senior
Indebtedness of such Guarantor or the Representative of such Designated Senior Indebtedness of such
demand; provided that any failure to give such notice shall have no effect whatsoever on the
provisions of this Article Sixteen. If any Designated Senior Indebtedness of a Guarantor is
outstanding, such Guarantor may not pay its Guarantee until five Business Days after the
Representatives with respect to such Designated Senior Indebtedness receive notice of such
acceleration and, thereafter, may pay its Guarantee only if this Indenture otherwise permits
payment at that time.

 

69

     SECTION 16.05. When Distribution Must Be Paid Over. If a distribution is made to Holders
that, due to the subordination provisions, should not have been made to them, such Holders are
required to hold it in trust for the holders of Senior Indebtedness of the relevant Guarantor and
pay it over to them as their interests may appear.

     SECTION 16.06. Subrogation. After all Senior Indebtedness of a Guarantor is paid in full and
until the Securities are paid in full, Holders shall be subrogated to the rights of holders of such
Senior Indebtedness to receive distributions applicable to such Senior Indebtedness. A
distribution made under this Article Sixteen to holders of such Senior Indebtedness which otherwise
would have been made to Holders is not, as between the relevant Guarantor and Holders, a payment by
such Guarantor on such Senior Indebtedness.

     SECTION 16.07. Relative Rights. This Article Sixteen defines the relative rights of Holders
and holders of Senior Indebtedness of a Guarantor. Nothing in this Indenture shall:

     (a) impair, as between such Guarantor and Holders, the obligation of such Guarantor,
which is absolute and unconditional, to make payments under its Guarantee in accordance with
its terms;

     (b) prevent the Trustee or any Holder from exercising its available remedies upon a
default by such Guarantor under its obligations with respect to its Guarantee, subject to
the rights of holders of Senior Indebtedness of such Guarantor to receive payments or
distributions otherwise payable to Holders and such other rights of such holders of Senior
Indebtedness as set forth herein; or

     (c) affect the relative rights of Holders and creditors of such Guarantor other than
their rights in relation to holders of Senior Indebtedness.

     SECTION 16.08. Subordination May Not Be Impaired by a Guarantor. No right of any holder of
Senior Indebtedness of a Guarantor to enforce the subordination of the obligations of such
Guarantor under its Guarantee shall be impaired by any act or failure to act by such Guarantor or
by its failure to comply with this Indenture.

     SECTION 16.09. Rights of Trustee and Paying Agent. Notwithstanding Section 16.03 hereof, the
Trustee or any Paying Agent may continue to make payments on the Securities and shall not be
charged with knowledge of the existence of facts that would prohibit the making of any payments
unless, not less than two Business Days prior to the date of such payment, a Responsible Officer of
the Trustee receives notice satisfactory to him that payments may not be made under this Article
Sixteen. A Guarantor, the Security Registrar, the Paying Agent, a Representative or a holder of
Senior Indebtedness of such Guarantor shall be entitled to give the notice; provided, however,
that, if an issue of Senior Indebtedness of such Guarantor has a Representative, only the
Representative shall be entitled to give the notice.

     The Trustee in its individual or any other capacity shall be entitled to hold Senior
Indebtedness of a Guarantor with the same rights it would have if it were not Trustee. The
Security Registrar and the Paying Agent shall be entitled to do the same with like rights. The
Trustee shall be entitled to all the rights set forth in this Article Sixteen with respect to any
Senior Indebtedness of a Guarantor which may at any time be held by it, to the same extent as

 

70

any other holder of such Senior Indebtedness; and nothing in Article Six shall deprive the Trustee of
any of its rights as such holder. Nothing in this Article Sixteen shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 6.07 hereof or any other Section of this
Indenture.

     SECTION 16.10. Distribution or Notice to Representative. Whenever a distribution is to be
made or a notice given to holders of Senior Indebtedness of a Guarantor, the distribution may be
made and the notice given to their Representative (if any).

     SECTION 16.11. Article Sixteen Not to Prevent Events of Default or Limit Right to Demand
Payment. The failure of a Guarantor to make a payment pursuant its Guarantee by reason of any
provision in this Article Sixteen shall not be construed as preventing the occurrence of a default
by such Guarantor under its Guarantee. Nothing in this Article Sixteen shall have any effect on
the right of the Holders or the Trustee to make a demand for payment on a Guarantor pursuant to
Article Sixteen hereof.

     SECTION 16.12. Trust Moneys Not Subordinated. Notwithstanding anything contained herein to
the contrary, payments from money or the proceeds of U.S. Government Obligations held in trust by
the Trustee for the payment of principal of and interest on the Securities pursuant to Article Four
or Article Thirteen hereof shall not be subordinated to the prior payment of any Senior
Indebtedness of any Guarantor or subject to the restrictions set forth in this Article Sixeen, and
none of the Holders shall be obligated to pay over any such amount to such Guarantor or any holder
of Senior Indebtedness of such Guarantor or any other creditor of such Guarantor, provided that the
subordination provisions of this Article Sixteen were not violated at the time the applicable
amounts were deposited in trust pursuant to Article Four or Article Thirteen hereof, as the case
may be.

     SECTION 16.13. Trustee Entitled to Rely. Upon any payment or distribution pursuant to this
Article Sixteen, the Trustee and the Holders shall be entitled to rely (a) upon any order or decree
of a court of competent jurisdiction in which any proceedings of the nature referred to in Section
16.02 hereof are pending, (b) upon a certificate of the liquidating trustee or agent or other
Person making such payment or distribution to the Trustee or to the Holders or (c) upon the
Representatives of Senior Indebtedness of a Guarantor for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of such Senior Indebtedness
and other indebtedness of such Guarantor, the amount thereof or payable thereon, the amount or
amounts paid or distributed thereon and all other facts pertinent thereto or to this Article
Sixteen. In the event that the Trustee determines, in good faith, that evidence is required with
respect to the right of any Person as a holder of Senior Indebtedness of a Guarantor to participate
in any payment or distribution pursuant to this Article Sixteen, the Trustee shall be entitled to
request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and other facts pertinent to the rights of such
Person under this Article Sixteen, and, if such evidence is not furnished, the Trustee shall be
entitled to defer any payment to such Person pending judicial determination as to the right of such
Person to receive such payment. The provisions of Section 6.01 and Section 6.03 hereof shall be
applicable to all actions or omissions of actions by the Trustee pursuant to this Article Sixteen.

 

71

     SECTION 16.14. Trustee to Effectuate Subordination. A Holder by its acceptance of a Security
agrees to be bound by this Article Sixteen and authorizes and expressly directs the Trustee, on his
behalf, to take such action as may be
necessary or appropriate to effectuate the subordination between the Holders and the holders
of Senior Indebtedness of a Guarantor as provided in this Article Sixteen and appoints the Trustee
as attorney-in-fact for any and all such purposes.

     SECTION 16.15. Trustee Not Fiduciary for Holders of Senior Indebtedness of Guarantors. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of a
Guarantor and shall not be liable to any such holders if it shall mistakenly pay over or distribute
to Holders or such Guarantor or any other Person, money or assets to which any holders of Senior
Indebtedness of such Guarantor shall be entitled by virtue of this Article Sixteen or otherwise.

     SECTION 16.16. Reliance by Holders of Senior Indebtedness of a Guarantor on Subordination
Provisions. Each Holder by accepting a Security acknowledges and agrees that the foregoing
subordination provisions are, and are intended to be, an inducement and a consideration to each
holder of any Senior Indebtedness of a Guarantor, whether such Senior Indebtedness was created or
acquired before or after the issuance of the Securities, to acquire and continue to hold, or to
continue to hold, such Senior Indebtedness and such holder of such Senior Indebtedness shall be
deemed conclusively to have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Indebtedness.

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

ARTICLE SEVENTEEN   

Miscellaneous

     SECTION 17.01. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only

 

72

one document, but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

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

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

     SECTION 17.02. Notices.

     Any notice or communication by the Company, any Guarantor or the Trustee to the others is duly
given if in writing and delivered in Person or mailed by first class mail (registered or certified,
return receipt requested), telex, telecopier or overnight air courier guaranteeing next day
delivery, to the others’ address.

If to the Company and/or any Subsidiary Guarantor:

Peabody Energy Corporation

701 Market Street

St. Louis, Missouri 63101-1826

Telecopier No.: (314) 342-3419

Attention: Chief Legal Officer

With a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017-3954

Telecopier No. (212) 455-2502

Attention: Risë B. Norman, Esq.

If to the Trustee:

U.S. Bank National Association

Goodwin Square

225 Asylum Street, 23rd Floor

EX-CT-SS

 

73

Hartford, Connecticut 06103

Telecopier No.: (860) 241-6881

     The Company, any Subsidiary Guarantor or the Trustee, by notice to the others may designate
additional or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery; provided, however, that any notice of
communication to the Trustee shall not be deemed to be received by it until actually received by it
at the Corporate Trust Office of the Trustee.

     Any notice or communication to a Holder shall be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Security Registrar. Any notice or communication
shall also be so mailed to any Person described in TIA § 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders.

     If a notice or communication addressed to a party other than the Trustee is mailed in the
manner provided above within the time prescribed, it is duly given, whether or not the addressee
receives it.

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

     SECTION 17.03. Notice to Holders; Waiver.

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

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

 

74

     SECTION 17.04. Trust Indenture Act Controls.

     If any provision hereof limits, qualifies or conflicts with the duties imposed by any of
Section 310 through 317, inclusive, of the Trust Indenture Act through the operation of Section
318(c) thereof, such imposed duties shall control.

     SECTION 17.05. Certificate and Opinion as to Conditions Precedent.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall, upon the request of the Trustee, furnish to the
Trustee:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 17.06 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for
in this Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which shall include the statements set forth in Section 17.06 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants, if any, have been
satisfied, except that in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or opinion
need be furnished.

     SECTION 17.06. Statements Required in Certificate or Opinion.

     Each certificate (other than certificates provided pursuant to Section 10.06) or opinion with
respect to compliance with a condition or covenant provided for in this Indenture shall include:

     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

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

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

     (4) a statement as to whether, in the opinion of such Person, such condition or
covenant has been satisfied.

 

 

75

     SECTION 17.07. Table of Contents, Headings, etc.

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

     SECTION 17.08. Successors and Assigns.

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

     SECTION 17.09. Separability Clause.

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, then, to the extent permitted by applicable law, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

     SECTION 17.10. Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person
(other than the parties hereto, any Security Registrar, any Paying Agent, any Authenticating Agent,
and their successors hereunder, and the Holders of Securities) any benefit or any legal or
equitable right, remedy or claim under this Indenture.

     SECTION 17.11. Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Security
Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its
functions.

     SECTION 17.12. No Personal Liability of Directors, Officers, Employees and Stockholders.

     No past, present or future director, officer, employee, incorporator or stockholder of the
Company or any Guarantor or Person controlling such Persons, as such, shall have any liability for
any obligations of the Company or of the Guarantors or any Person controlling such Person under the
Securities, this Indenture, the Guarantees or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of the Securities by accepting a Security
waives and releases all such liability. The waiver and release are part of the consideration for
issuance of the Securities. Such waiver may not be effective to waive liabilities under the
federal securities laws and it is the view of the Commission that such a waiver is against public
policy.

     SECTION 17.13. Governing Law.

 

76

     THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE
SECURITIES AND THE GUARANTEES.

     SECTION 17.14. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day, then (notwithstanding any other provision of this Indenture
or the Security) payment of interest or principal need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on the Interest Payment
Date or Redemption Date, or at the Stated Maturity, and no interest shall accrue for the period
from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be.

     SECTION 17.15. Indenture and Securities Solely Corporate Obligations.

     No recourse for the payment of principal of or interest on any Security or for any claim based
on any Security or this Indenture shall be had against any director or officer or stockholder,
past, present or future, of the Company or any other obligor with respect to the Securities. Any
such claim against any such Person is expressly waived as a condition of, and as consideration for,
the execution and delivery of this Indenture and the issue of the Securities.

     SECTION 17.16. No Security Interest Created.

     Nothing in this Indenture or in the Securities, expressed or implied, shall be construed to
constitute a security interest under the Uniform Commercial Code or similar legislation, as now or
hereafter enacted and in effect, in any jurisdiction where property of the Company or its
Subsidiaries is located.

     SECTION 17.17. Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

     SECTION 17.18. No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other Indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such Indenture, loan or debt agreement may
not be used to interpret this Indenture.

* * * * * *

 

77

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

     In Witness Whereof, the parties hereto have caused this Indenture to be duly
executed, all as of the day and year first above written.

	 	 	 	 	 
	 	PEABODY ENERGY CORPORATION

 	 
	 	By:  	/s/ Richard A. Navarre
 	 
	 	 	Name         Richard A. Navarre 	 
	 	 	Title         Chief Financial Officer and Executive

                   Vice President of Corporate

                Development 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                            /s/ Walter L. Hawkins, Jr.
 	 
	 	 	Name         Walter L. Hawkins, Jr. 	 
	 	 	Title         Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Philip G. Kane, Jr.
 	 
	 	 	Name         Philip G. Kane, Jr. 	 
	 	 	Title         Vice President 	 
	 

 

 

EXHIBIT A

(Face of Note)

___% Senior Subordinated Notes due 20___

	 	 	 	 	 
	 

	 	CUSIP                                         

	 

	 	ISIN                                         

	 
	 	 	 	 
	No.

	 	 	$	 

PEABODY ENERGY CORPORATION

promises to pay to CEDE & CO., INC. or registered assigns, the principal sum of                                         Dollars ($) on                                         , 20___.

Interest Payment Dates:                                          and  
                
               
        .

Record Dates:                                          and  
                
               
        .

Dated:                                         , 20___.

 

A-2 

     IN WITNESS WHEREOF, the Company has caused this instrument to be signed manually or by facsimile by
its duly authorized officer.

	 	 	 	 	 
	 	PEABODY ENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title 	 
	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	This is one of the [Global]
Securities referred to in the
within-mentioned 
Indenture:	 	 	 	 
	 
	 	 	 	 	 	 
	U.S. Bank National Association

as Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Authorized Signatory	 	 	 	 
	 
	 	 	 	 	 	 
	Dated

	 	 	, 	20___	 	 
	 

	 	 
 	 	 	 	 

 

A-3 

(Back of Note)

___% Senior Subordinated Notes due 20___

[Insert the Global Note Legend, if applicable, pursuant to the terms of the Indenture.]

Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     1. Interest. Peabody Energy Corporation, a Delaware corporation (the “Company”), promises to
pay interest on the principal amount of this Security at ___% per annum from                                         , 20___until
maturity. The Company will pay interest semi-annually on                                          and                                
          of each year, or
if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”). Interest on the Securities will accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from                                         , 20___; provided that if there is no
existing Default in the payment of interest, and if this Security is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest
Payment Date shall be                                         , 20___. The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from
time to time on demand at a rate that is 1% per annum in excess of the rate then in effect; it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace periods) from time to time
on demand at the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

     2. Method of Payment. The Company will pay interest on the Securities (except defaulted
interest) to the Persons who are registered Holders of Securities at the close of business on the
                                         or                                         
 next preceding the Interest Payment Date (except as provided in Section
3.08 of the Base Indenture (as defined below) with respect to defaulted interest), even if such
Securities are canceled after such record date and on or before such Interest Payment Date. The
Securities will be payable as to principal, premium, if any, and interest at the office or agency
of the Company maintained for such purpose within or without the City and State of New York, or, at
the option of the Company, payment of interest may be made by check mailed to the Holders at their
addresses set forth in the register of Holders, and provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and interest, premium on
all Global Securities and all other Securities the Holders of which shall have provided wire
transfer instructions to the Company or the Paying Agent. Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts.

     3. Paying
Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under
the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

 

A-4 

     4. Indenture. The Company issued the Securities under the ___Supplemental Indenture dated
as of                                         , 20___to a Base Indenture dated as of                              
           ,
20___(the “Base Indenture” and,
collectively, the “Indenture”) between the Company and the Trustee. The terms of the Securities
include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Securities are subject
to all such terms, and Holders are referred to the Indenture and such Act for a statement of such
terms. To the extent any provision of this Security conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The Securities are
obligations of the Company.

     5. The principal on the Securities shall be due and payable on                                         , 20___.

     6. [Optional Redemption.] [Insert applicable language, if any.]

     7. [Mandatory Redemption.] The Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the Securities.

     8. [Repurchase at Option of Holder.] [Insert applicable language, if any.]

     9. Notice of Redemption. If applicable, notice of redemption will be mailed at least 30 days
but not more than 60 days before the redemption date to each Holder whose Securities are to be
redeemed at its registered address. Securities in denominations larger than $1,000 may be redeemed
in part but only in whole multiples of $1,000, unless all of the Securities held by a Holder are to
be redeemed. On and after the redemption date interest ceases to accrue on Securities or portions
thereof called for redemption.

     10. Denominations, Transfer, Exchange. The Securities are in registered form without coupons
in denominations of $1,000 and integral multiples of $1,000. The transfer of Securities may be
registered and Securities may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture.

     11. Subordination. The Securities and the Guarantees are subordinated to Senior Indebtedness
of the Company and the Guarantors on the terms and subject to the conditions set forth in the
Indenture. To the extent provided in the Indenture, Senior Indebtedness must be paid before the
Securities and Guarantees may be paid. The Company agrees, and each Holder by accepting a Security
agrees, to the subordination provisions contained in the Indenture and authorizes the Trustee to
give it effect and appoints the Trustee as attorney-in-fact for such purpose.

     12. Persons Deemed Owners. The registered Holder of a Security may be treated as its owner for
all purposes.

     13. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture, the
Guarantees or the Securities may be amended or supplemented with the consent of the Holders of at
least a majority in principal amount of the then outstanding Securities, voting as a single class,
and any existing default or compliance with any provision of the Indenture, the

 

A-5 

Guarantees or the Securities may be waived with the consent of the Holders of a majority in
principal amount of the then outstanding Securities, voting as a single class. Without the consent
of any Holder of a Security, the Indenture, the Guarantees or the Securities may be amended or
supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated
Securities in addition to or in place of certificated Securities, to provide for the assumption of
the Company’s or Guarantor’s obligations to Holders of the Securities in case of a merger or
consolidation, to make any change that would provide any additional rights or benefits to the
Holders of the Securities or that does not adversely affect the legal rights under the Indenture of
any such Holder, to comply with the requirements of the Commission in order to effect or maintain
the qualification of the Indenture under the Trust Indenture Act, to provide for the issuance of
additional Securities in accordance with the limitations set forth in the Indenture, or to allow
any Guarantor to execute a supplemental indenture to the Indenture and/or a Guarantee with respect
to the Securities.

     14. Defaults and Remedies. An “Event of Default” occurs if: (i) the Company defaults in the
payment when due of interest on, with respect to, the Securities and such default continues for a
period of 30 days (whether or not prohibited by the subordination provisions of the Indenture);
(ii) the Company defaults in the payment when due of principal of or premium, if any, on the
Securities when the same becomes due and payable at maturity, upon redemption (including in
connection with an offer to purchase) or otherwise (whether or not prohibited by the subordination
provisions of the Indenture); (iii) the Company fails to observe or perform any other covenant,
representation, warranty or other agreement in the Indenture or the Securities for 60 days after
written notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Securities then outstanding voting as a single class; (iv) certain events of
bankruptcy or insolvency occur with respect to the Company or any of its Significant Subsidiaries;
or (v) except as permitted by the Indenture, any Guarantee is held in any judicial proceeding to be
unenforceable or invalid or shall cease for any reason to be in full force and effect or any
Guarantor, or any Person acting on behalf of any Guarantor, shall deny or disaffirm its obligations
under such Guarantor’s Guarantee. [Insert additional Events of Default, if any.]

     If any Event of Default (other than an Event of Default specified in Section 5.01(e) of the
Base Indenture with respect to the Company [insert additional carveouts, if any]) occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding
Securities may declare all the Securities to be due and payable immediately. Upon any such
declaration, the Securities shall become due and payable immediately. Notwithstanding the
foregoing, if an Event of Default specified in clause (e) of Section 5.01 of the Base Indenture
[insert additional provisions, if any] occurs with respect to the Company, all outstanding
Securities shall be due and payable without further action or notice. The Holders of a majority in
aggregate principal amount of the then outstanding Securities by written notice to the Trustee may
on behalf of all of the Holders rescind an acceleration and its consequences if the rescission
would not conflict with any judgment or decree and if all existing Events of Default (except
nonpayment of principal, interest or premium that has become due solely because of the
acceleration) have been cured or waived.

     15. Trustee Dealings with Company. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its

 

A-6 

Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

     16. No Recourse Against Others. A director, officer, employee, incorporator or stockholder, of
the Company, as such, shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for the issuance of the Securities.

     17. Authentication. This Security shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     18. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint
tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
(= Uniform Gifts to Minors Act).

     19. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Securities and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Securities or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

Peabody Energy Corporation

701 Market Street

St. Louis, Missouri 63101-1826

Attention: Chief Legal Officer

 

A-7 

Assignment Form

To assign this Security, fill in the form below:

(I) or (we) assign and transfer this Security to

 

(Insert assignee’s soc. sec. or other tax I.D. no.)

 

 

 

(Print or type assignee’s name, address and zip code)

and
irrevocably appoint ______ as agent to transfer this Security on the books of the
Company. The agent may substitute another to act for him.

 

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Sign exactly as your name appears on the face of
this Security)
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature Guarantee:	 	 
	 

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

 

A-8 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY

     The following exchanges of a part of this Global Security for an interest in another Global
Security [or for a Definitive Note], or exchanges of a part of another Global Security [or
Definitive Note] for an interest in this Global Security, have been made:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	 	 	 
	 	 	Amount of decrease	 	Amount of increase	 	this Global Security	 	Signature of
	 	 	in Principal amount	 	in Principal Amount	 	following such	 	authorized signatory
	 	 	of this Global	 	of this Global	 	decrease (or	 	of Trustee [or Note
	Date of Exchange	 	Security	 	Security	 	increase)	 	Custodian]

 

 

EXHIBIT B

[FORM OF NOTATION OF SECURITY

RELATING TO GUARANTEE]

GUARANTEE

     [Name of Guarantor] (hereinafter referred to as the “Guarantor”, which term includes any
successor person under the Indenture (the “Indenture”) referred to in the Security upon which this
notation is endorsed) (the “Endorsed Security”), has unconditionally guaranteed (i) the due and
punctual payment of the principal of, premium, if any, and interest on the Endorsed Security and
all other Securities of the same series as the Endorsed Security (the “Guaranteed Securities”),
whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on the
overdue principal of, premium, if any, and interest, if any, on the Guaranteed Securities, to the
extent lawful, and the due and punctual performance of all other obligations of the Company to the
Holders of Guaranteed Securities or the Trustee all in accordance with the terms set forth in
Article Fifteen of the Indenture and (ii) in case of any extension of time of payment or renewal of
any Guaranteed Securities or any of such other obligations, that the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise. Capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Indenture.

     The obligations of the Guarantor to the Holders of Guaranteed Securities and to the Trustee
pursuant to the Guarantee evidenced hereby and the Indenture are expressly set forth in Article
Fifteen of the Indenture and reference is hereby made to such Indenture for the terms of such
Guarantee.

     No stockholder, officer, director or incorporator, as such, past, present or future, of the
Guarantor shall have any personal liability under the Guarantee evidenced hereby by reason of his
or its status as such stockholder, officer, director or incorporator.

     The Guarantee evidenced hereby shall not be valid or obligatory for any purpose until the
certificate of authentication of the Guaranteed Securities shall have been executed by the Trustee
under the Indenture by the manual signature of one of its authorized officers.

	 	 	 	 	 	 	 
	 	 	Guarantor	 	 
	 
	 	 	 	 	 	 
	 	 	[SEAL]	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	By:EX-4.2

 

Exhibit 4.2

EXECUTION COPY

FIRST SUPPLEMENTAL INDENTURE

BETWEEN

PEABODY ENERGY CORPORATION

AND

U.S. BANK NATIONAL ASSOCIATION

 

DATED AS OF DECEMBER 20, 2006

 

4.75% CONVERTIBLE JUNIOR

SUBORDINATED DEBENTURES DUE 2066

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE I	 	 	 	 
	 
	 	DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Definition of Terms	 	 	1	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE II	 	 	 	 
	 
	 	TERMS OF THE DEBENTURES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Designation and Principal Amount	 	 	16	 
	Section 2.2
	 	Issue Date; Maturity	 	 	16	 
	Section 2.3
	 	Place of Payment and Surrender for Registration of Transfer	 	 	16	 
	Section 2.4
	 	Registered Securities; Form; Denominations; Depositary	 	 	17	 
	Section 2.5
	 	Interest	 	 	17	 
	Section 2.6
	 	Optional Deferral of Interest	 	 	18	 
	Section 2.7
	 	Mandatory Deferral of Interest	 	 	19	 
	Section 2.8
	 	Deferral of Interest in General	 	 	21	 
	Section 2.9
	 	Right to Optional Redemption by the Company	 	 	21	 
	Section 2.10
	 	Scheduled Maturity	 	 	22	 
	Section 2.11
	 	Events of Default	 	 	25	 
	Section 2.12
	 	Covenant Breaches	 	 	26	 
	Section 2.13
	 	Designation of Depositary	 	 	28	 
	Section 2.14
	 	Definitive Form of Debentures	 	 	28	 
	Section 2.15
	 	Conversion Rights	 	 	28	 
	Section 2.16
	 	Exercise of Conversion Right; No Adjustment for Interest or Dividends	 	 	31	 
	Section 2.17
	 	Cash Payments in Lieu of Fractional Shares	 	 	32	 
	Section 2.18
	 	Conversion Rate	 	 	33	 
	Section 2.19
	 	Effect of Reclassification, Consolidation, Merger or Sale	 	 	40	 
	Section 2.20
	 	Taxes on Shares Issued	 	 	42	 
	Section 2.21
	 	Reservation of Shares, Shares to be Fully Paid; Compliance with Governmental	 	 	 	 
	 
	 	Requirements; Listing of Common Stock	 	 	42	 
	Section 2.22
	 	Conversion-Related Notices by the Company	 	 	43	 
	Section 2.23
	 	Settlement Upon Conversion	 	 	44	 
	Section 2.24
	 	Change-of-Control Make-Whole	 	 	45	 

i

 

Table
of Contents
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 2.25
	 	Modification of Indenture	 	 	47	 
	Section 2.26
	 	Modification or Amendment of Certificate of Designations	 	 	49	 
	Section 2.27
	 	Sinking Fund	 	 	49	 
	Section 2.28
	 	Tax Treatment	 	 	49	 
	Section 2.29
	 	Defeasance	 	 	49	 
	Section 2.30
	 	Execution	 	 	49	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE III	 	 	 	 
	 
	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1
	 	Limitation on Payments	 	 	50	 
	Section 3.2
	 	Warrant and Preferred Stock Settlement Mechanism	 	 	51	 
	Section 3.3
	 	Obligation to Sell Qualifying Capital Securities	 	 	54	 
	Section 3.4
	 	Covenant Against Amending Capital Replacement Covenant	 	 	54	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IV	 	 	 	 
	 
	 	SUBORDINATION	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Senior Indebtedness	 	 	55	 
	Section 4.2
	 	Subordination	 	 	55	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE V	 	 	 	 
	 
	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Ratification of Indenture	 	 	56	 
	Section 5.2
	 	Governing Law	 	 	57	 
	Section 5.3
	 	Severability	 	 	57	 
	Section 5.4
	 	Counterparts	 	 	57	 
	Exhibit A
	 	Perpetual Preferred Stock Certificate of Designations	 	 	A-1	 
	Exhibit B
	 	Form of Debenture	 	 	B-1	 

 ii

 

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of December 20, 2006 (this “First Supplemental
Indenture”), between PEABODY ENERGY CORPORATION, a Delaware corporation (the “Company”) and U.S.
BANK NATIONAL ASSOCIATION, as Trustee (the “Trustee”), supplementing the Subordinated Indenture,
dated as of December 20, 2006, between the Company and the Trustee (the “Base Indenture,” together
with this First Supplemental Indenture, the “Indenture”).

     WHEREAS, the Company executed and delivered the Base Indenture to provide for the issuance
from time to time of its unsecured debentures, notes or other evidences of indebtedness
(hereinafter generally called the “Securities,” and individually, a “Security”) to be issued in one
or more series as may be determined by the Company under the Base Indenture from time to time, in
an unlimited aggregate principal amount which may be authenticated and delivered as provided in the
Base Indenture;

     WHEREAS, pursuant to the terms of this First Supplemental Indenture, the Company desires to
provide for the establishment of a new series of Securities to be known as the “4.75% Convertible
Junior Subordinated Debentures due 2066” (the “Debentures”), the form and substance of such
Debentures and the terms, provisions and conditions thereof to be as set forth in the Indenture;

     WHEREAS, the Company has requested that the Trustee execute and deliver this First
Supplemental Indenture; and

     WHEREAS all requirements necessary to make this First Supplemental Indenture a valid
instrument in accordance with its terms (and to make the Debentures, when duly executed by the
Company and duly authenticated and delivered by the Trustee, the valid and enforceable obligations
of the Company) have been performed, and the execution and delivery of this First Supplemental
Indenture have been duly authorized in all respects.

     NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

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

ARTICLE I

DEFINITIONS

     Section 1.1 Definition of Terms.

     Unless the context otherwise requires:

     (a) a term not defined herein that is defined in the Base Indenture has the same meaning when
used herein as is given thereto in the Base Indenture;

     (b) a term defined anywhere in this First Supplemental Indenture has the same meaning
throughout;

 

 

     (c) definitions made herein in the singular also apply to the term defined as used in the
plural and vice versa;

     (d) unless otherwise specified, any reference to a Section or Article is to a Section or
Article of this First Supplemental Indenture;

     (e) headings are for convenience of reference only and do not affect interpretation; and

     (f) the following terms have the following meanings:

     “Accounts Receivable Securitization Program” means the accounts receivable securitization
program pursuant to the Amended and Restated Receivables Purchase Agreement, dated as of September
30, 2005, by and among the Company and the Seller and the Sub-Servicers named therein, Market
Street Funding Corporation, as Issuer, and PNC Bank, National Association, as Administrator, as
modified, amended, renewed, refunded, replaced, restructured, repaid or refinanced from time to
time (whether with the original issuer, administrator or other agents, arrangers and counterparties
or otherwise).

     “Additional Shares” has the meaning set forth in Section 2.24.

     “Adjusted Debt” at the end of any fiscal quarter means (i) long-term debt and short-term debt,
including any junior subordinated debt, but excluding any Preferred Stock, as reported on the
Company’s balance sheet prepared in accordance with GAAP, or the notes thereto, as of the final day
of such fiscal quarter, plus (ii) seven times Annual Rent Expense, plus (iii) the amount sold under
the Company’s Accounts Receivable Securitization Program during such fiscal quarter.

     “Adjusted EBITDA” means, for any fiscal quarter, (i) quarterly net income or net loss, plus
(ii) quarterly tax expense, plus (iii) Adjusted Interest, plus (iv) quarterly depreciation and
amortization, each as reported in the Company’s income statement prepared in accordance with GAAP,
or the notes thereto, for such fiscal quarter.

     “Adjusted Interest” means, for any fiscal quarter, (i) quarterly debt interest expense plus
(ii) the quarterly cost of sale associated with sales of accounts receivable under the Accounts
Receivable Securitization Program during that fiscal quarter and (iii) quarterly debt
extinguishment expense if not otherwise included in quarterly debt interest expense, each as
reported in the Company’s income statement prepared in accordance with GAAP, or the notes thereto,
for such fiscal quarter. For the avoidance of doubt, Adjusted Interest shall include the amount of
any accrued and unpaid Deferred Interest, whether optionally or mandatorily deferred.

     “Alternative Payment Mechanism” means, with respect to any securities, that such securities or
related transaction agreements include (1) a Limitation on Distributions in Bankruptcy Provision
and (2) a provision to the effect that, upon the occurrence of certain events specified in such
securities or related transaction agreements, the Company:

     (a) shall (i) sell, or use its commercially reasonable efforts to sell, its Common
Stock, rights to purchase Common Stock and/or Qualifying Preferred Stock, unless a

2

 

Market Disruption Event has occurred and is continuing, in an amount such that the net
proceeds of such sale are equal to at least the amount of accumulated and unpaid deferred
Distributions on such securities (including any compounded amounts thereon) and (ii) apply
the proceeds to pay such deferred Distributions; and

     (b) shall not, beginning on the occurrence of any of such specified events and so long
as such failure continues until, but excluding, the End Date, pay any accumulated and unpaid
deferred Distributions on such securities to the extent such Distributions exceed the net
proceeds of such sale;

provided that the aggregate net proceeds from the issuance or sale of Qualifying Preferred Stock
that may be used to pay deferred Distributions shall not exceed 25% of the initial aggregate
liquidation preference or principal amount of the Qualifying Capital Securities; and, provided,
further that the number of shares of any Common Stock that may be issued or sold, together with the
number of shares of Common Stock underlying any rights to purchase Common Stock that may be issued
or sold, to pay deferred Distributions attributable to the first five years of any deferral period
(including compounded amounts thereon), may be limited to an amount equal to 2% of the number of
shares of Common Stock outstanding contemporaneously with the date of such issuance or sale.

     “Annual Rent Expense” means the Company’s annual rent expense for its most recently completed
fiscal year, as reported in the Company’s income statement prepared in accordance with GAAP, or the
notes thereto, for such fiscal year.

     “APM Eligible Proceeds” means, with respect to any Interest Payment Date, the net proceeds
(after underwriters’ or placement agents’ fees, commissions or discounts and other expenses
relating to the issuance or sale) the Company has received during the six-month period prior to the
APM Notice Date relating to such Interest Payment Date from the issuance or sale of Qualifying
Warrants or Qualifying Preferred Stock to Persons that are not Subsidiaries.

     “APM Notice Date” means a date no more than 15 and no less than 10 Business Days in advance of
any Interest Payment Date on which the Company delivers an Officers’ Certificate to the Trustee
pursuant to Section 3.2(l) hereof, or, in the event that the Company does not deliver an Officers’
Certificate to the Trustee on or prior to the tenth Business Day immediately preceding any Interest
Payment Date, the tenth Business Day immediately preceding such Interest Payment Date.

     “Available for Issuance” has the meaning set forth in Section 3.2(f).

     “Base Indenture” has the meaning set forth in the Recitals.

     “Binding Capital Replacement Covenant” means, with respect to any securities, a capital
replacement covenant substantially similar to the Capital Replacement Covenant, but with immediate
effect rather than applying only from a date subsequent to the issuance of such securities.

     “Board of Directors” has the meaning set forth in Section 1.01 of the Base Indenture.

3

 

     “Business Day” means any day which is not a Saturday, a Sunday or a legal holiday or a day on
which banking institutions or trust companies located in New York City are authorized or obligated
by law to close.

     “Capital Replacement Covenant” means the Capital Replacement Covenant, dated as of the date
hereof, of the Company, as it may be amended, modified or supplemented in accordance with its
terms.

     “Capital Replacement Intention Disclosure” means, with respect to any securities, that the
Company has publicly stated its intention, either in the prospectus or other offering document
under which such securities were initially offered for sale or in filings with the Commission made
by the Company under the Exchange Act prior to or contemporaneously with the issuance of such
securities, that the Company shall repay, redeem or repurchase such securities only if it has
received an amount of net proceeds at least equal to the applicable payment, redemption or
repurchase price of such securities from the issuance of securities that are as, or more,
equity-like than such securities, within six months prior to the applicable payment, redemption or
repurchase date.

     “Change of Control” means the occurrence of any of the following:

     (a) the sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Subsidiaries, taken as a whole, to
any “person” (as such term is used in Section 13(d)(3) of the Exchange Act);

     (b) the adoption of a plan relating to the Company’s liquidation or dissolution;

     (c) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above) becomes the
“beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange
Act), directly or indirectly, of more than 50% of the Company’s voting stock (measured by
voting power rather than number of shares), excluding any transaction in which the voting
stock that comes to be beneficially owned by such person as a result of the transaction is
voting stock newly issued in connection with, or for the purpose of, the transaction; or

     (d) the first day on which a majority of the Company’s Board of Directors are not
Continuing Directors.

     “Closing Sale Price” of any share of Common Stock or any other security on any
Trading Day means the closing sale price of such Common Stock or other security (or, if no closing
sale price is reported, the average of the closing bid and closing ask prices or, if more than one
in either case, the average of the average closing bid and the average closing ask prices) on such
date as reported in composite transactions for the NYSE or on the principal United States
securities exchange or interdealer quotation system as is used for purposes of measuring Trading
Days pursuant to the definition of “Trading Day” set forth in this Section 1.1.

4

 

     If during a period applicable for calculating Closing Sale Price, a distribution, subdivision,
combination or other transaction or event occurs that requires an adjustment to the Conversion Rate
pursuant to Section 2.18 of the First Supplemental Indenture and the relevant Ex-Dividend Date is
not the second Trading Day immediately prior to the related Record Date or date fixed for the
determination of the shareholders entitled to receive a distribution, Closing Sale Price shall be
calculated for such period in a manner determined by the Company to appropriately reflect the
impact of such distribution, subdivision or combination on the price of the Common Stock during
such period.

     “Common Stock” means common stock of the Company. Subject to the provisions of Section 2.18,
however, shares issuable on conversion of Debentures shall include only shares of the class
designated as common stock of the Company at the date of this First Supplemental Indenture (namely,
the Common Stock, par value $.01) or shares of any class or classes resulting from any
reclassification or reclassifications thereof; provided that if at any time there shall be more
than one such resulting class, the shares of each such class then so issuable on conversion shall
be substantially in the proportion which the total number of shares of such class resulting from
all such reclassifications bears to the total number of shares of all such classes resulting from
all such reclassifications.

     “Company” has the meaning set forth in the Recitals.

     “Compounded Interest” means additional interest on any accrued and unpaid interest to the
extent permitted by applicable law, at the Debenture Interest Rate compounded semi-annually.

     “Continuing Director” means, as of any date of determination, any member of the Company’s
Board of Directors who (i) was a member of such Board of Directors on the Issue Date or (ii) was
nominated for election or elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board of Directors at the time of such nomination or
election.

     “Controlled Subsidiary” means any corporation in which the Company owns, directly or
indirectly, more than 50% of the voting stock.

     “Conversion Date” has the meaning set forth in Section 2.16.

     “Conversion Price” means, on any day, $1,000 divided by the Conversion Rate in effect on that
day.

     “Conversion Rate” has the meaning set forth in Section 2.18.

     “Conversion Reference Period” means:

     (i) for Debentures that are converted (1) in accordance with Section 2.15(a)(ii) or (2)
during the period beginning on the 20th Trading Day prior to December 15, 2041, the 20
consecutive Trading Days beginning on the third Trading Day following (x) the Redemption
Date or (y) December 15, 2041, as the case may be; and

5

 

     (ii) in all other instances, the 20 consecutive Trading Days beginning on the third
Trading Day following the Conversion Date.

     “Conversion Value” means the average of the products for each of the days in the Conversion
Reference Period of:

     (i) the Conversion Rate in effect for such day, taking into account Additional Shares,
if any, under the circumstances described in Section 2.24; multiplied by

     (ii) the Volume-Weighted Average Price per share of the Company’s Common Stock for such
day.

     “Corporate Trust Office” of the Trustee means for purposes of surrender for registration of
transfer, exchange or conversion of Debentures, the office of the Trustee located at 100 Wall
Street, Suite 1600, New York, New York 10005, and for all other purposes, the office of the Trustee
at 225 Asylum Street, 23rd Floor, Hartford, Connecticut 06103.

     “Covenant Breach” means a default in the performance, or breach, of any covenant or warranty
of the Company in this Indenture (other than an Event of Default as defined in Section 2.11(a)
hereof or a covenant or warranty that has been included solely for the benefit of Securities of
another series), and a continuance of such default or breach for a period of 90 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 a majority in principal amount of the Outstanding Debentures, a
written notice specifying such default or breach and requiring it to be remedied and stating that
such notice is a “Notice of Default.”

     “Current Market Price” of the Company’s Common Stock means, for any day, the average of the
Closing Sale Price per share of the Company’s Common Stock for each of the five consecutive Trading
Days ending on the earlier of the day in question and the day before the Ex-Dividend Date with
respect to the issuance or distribution requiring such computation.

     “Custodian” means the Trustee, as custodian with respect to the Debentures in global form, or
any successor entity thereto.

     “Daily Share Amount” means, for a given Trading Day, the amount obtained by (a) multiplying
the Volume-Weighted Average Price for such day by the Conversion Rate applicable on such day, (b)
subtracting 1,000 from the resulting product and (c) dividing the resulting difference by 20 times
the Volume-Weighted Average Price for such day; provided, however, that the Daily Share Amount
shall in no case be less than zero.

     “Debenture Interest Rate” has the meaning set forth in Section 2.5(a).

     “Debentures” has the meaning set forth in the Recitals.

     “Debt Exchangeable for Equity” means any security or combination of securities that:

     (a) gives the holder a beneficial interest in (i) the Most Junior Subordinated Debt
Securities of the Company that are Non-Cash Cumulative and (ii) a stock purchase

6

 

contract that shall result in the holder of the security acquiring a beneficial
interest in Qualifying Preferred Stock;

     (b) includes a remarketing feature pursuant to which the Most Junior Subordinated Debt
Securities of the Company are remarketed to new investors within five years from the date of
issuance of the security (or combination of securities) or earlier in the event of an early
settlement event based on one or more financial tests or other express terms set forth in
the terms of such securities or related transaction agreements;

     (c) provides for the proceeds raised in the remarketing to be used to satisfy the
holder’s payment obligations (if not otherwise fulfilled) in respect of the required
purchase of Qualifying Preferred Stock under the stock purchase contract interest referenced
above;

     (d) includes a Binding Capital Replacement Covenant; provided that such Binding Capital
Replacement Covenant shall apply to such security (or combination of securities) and to any
such Qualifying Preferred Stock and shall not include Debt Exchangeable for Equity in the
definition of “qualifying capital securities” (as defined in such Binding Capital
Replacement Covenant); and

     (e) includes a provision defining a failed remarketing and specifying that the
consequences of a failed remarketing will be that such Qualifying Preferred Stock will be
acquired in exchange for the Most Junior Subordinated Debt Securities.

     “Deferred Interest” means Mandatorily Deferred Interest or Optionally Deferred Interest, as
the context may require.

     “Depositary” means the U.S. Depositary (as defined in the Base Indenture) with respect to the
Debentures.

     “Distributions” means, as to any security or combination of securities, dividends, interest
payments or other income distributions to the holders thereof that are not Subsidiaries of the
Company.

     “Dividend Threshold Amount” means $0.06 per quarter, appropriately adjusted from time to time
to take into account the occurrence, on or before the date of determination, of any event that
would require an adjustment pursuant to Section 2.18 and to account for any change in the frequency
of payment of the Company’s regular dividend. Whenever the Conversion Rate is adjusted, the
Dividend Threshold Amount shall be adjusted by multiplying such Dividend Threshold Amount by a
fraction, the numerator of which is the Conversion Rate prior to adjustment and the denominator of
which is the Conversion Rate following such adjustment.

     “DTC” means The Depository Trust Company, a New York corporation, and its successors.

     “Effective Date” has the meaning specified in Section 2.24(b).

7

 

     “End Date” means, with respect to any securities, the earliest to occur of:

     (a) the Company’s failure to pay Distributions (including, without limitation, all
deferred and accumulated amounts) in full for 10 years;

     (b) any liquidation, dissolution, winding up, reorganization, insolvency, receivership
or proceeding under any bankruptcy law with respect to the Company;

     (c) an event of default and acceleration with respect to such securities; and

     (d) the final maturity of such securities.

     “Event of Default” has the meaning set forth in Section 2.11(a).

     “Exchange Property” has the meaning set forth in Section 2.19(b).

     “Exchange Property Value” has the meaning set forth in Section 2.19(c).

     “Ex-Dividend Date” means the first date on which the Company’s Common Stock trades on the
applicable exchange or in the applicable market, ““regular way”,” without the right to receive a
relevant issuance or distribution.

     “Ex-Dividend Time” has the meaning set forth in Section 2.15(a).

     “Extension Period” means an Optional Extension Period or a Mandatory Extension Period or a
combination thereof.

     “Fair Market Value” means the amount which a willing buyer would pay a willing seller in an
arm’s-length transaction, as conclusively determined in good faith by the Board of Directors.

     “Final Maturity Date” has the meaning set forth in Section 2.2.

     “First Supplemental Indenture” has the meaning set forth in the Recitals.

     “Foregone Interest” has the meaning set forth in Section 2.7(e).

     “GAAP” means, at any date or for any period, U.S. generally accepted accounting principles, as
in effect on such date or for such period, except as provided in Section 2.7(c).

     “Global Debenture” has the meaning set forth in Section 2.4(a).

     “Indenture” has the meaning set forth in the Recitals.

     “Interest Coverage Ratio” means, for any fiscal quarter, the sum of (a) four times the
Company’s Adjusted EBITDA for such fiscal quarter and (b) one-third of the Company’s Annual Rent
Expense, divided by the sum of (x) four times the Company’s Adjusted Interest for such fiscal
quarter and (y) one-third of the Company’s Annual Rent Expense.

8

 

     “Interest Payment Date” has the meaning set forth in Section 2.5(a).

     “Interest Payment Period” means any semi-annual period during which interest accrues pursuant
to this Indenture.

     “Issue Date” means December 20, 2006.

     “Leverage Ratio” means, for any fiscal quarter, the Company’s Adjusted Debt at the end of such
fiscal quarter divided by the sum of (a) four times the Company’s Adjusted EBITDA for such fiscal
quarter and (b) the Company’s Annual Rent Expense.

     “Limitation on Distributions in Bankruptcy Provision” means, with respect to any securities,
provisions in the terms thereof or of the related transaction agreements that, upon any
liquidation, dissolution, winding up or reorganization, or in connection with any insolvency,
receivership or proceeding under any bankruptcy law with respect to the Company, limit the claim of
the holders of such securities (other than Non-Cumulative preferred stock) for Distributions (or in
the case of securities containing a Mandatory Trigger Provision, Distributions that accumulate
during a period in which the Company fails to satisfy one or more financial tests set forth in the
terms of such securities or related transaction agreements) to:

     (a) in the case of securities not permitting the issuance and sale of Qualifying
Preferred Stock pursuant to an Alternative Payment Mechanism, 25% of the principal amount of
such securities then outstanding; or

     (b) in all other cases, two years of accumulated and unpaid Distributions (including
any compounded amounts thereon).

     “Mandatorily Deferred Interest” means all interest deferred pursuant to Section 2.7, as then
accrued and unpaid, together with Compounded Interest thereon.

     “Mandatory Extension Period” has the meaning set forth in Section 2.7(a).

     “Mandatory Trigger Event” has the meaning set forth in Section 2.7(b).

     “Mandatory Trigger Provision” means, with respect to any securities, provisions in the terms
thereof or of the related transaction agreements that:

     (a) (i) include an Alternative Payment Mechanism that becomes effective within two
years of a failure to satisfy one or more financial tests set forth in the terms of such
securities or related transaction agreements or (ii) in the case of Non-Cumulative Preferred
Stock, include provisions that, beginning on the occurrence of the failure to satisfy any of
such financial tests and so long as such failure continues until, but excluding, the End
Date, prohibit the issuer of such securities from paying any deferred Distributions in an
amount exceeding the net proceeds of the sale of Common Stock, rights to purchase Common
Stock or Qualifying Preferred Stock; and

     (b) in the case of securities other than Non-Cumulative Preferred Stock, prohibit the
Company from repurchasing any of its Common Stock prior to the date six

9

 

months after the issuer applies the net proceeds of the sales described in clause (a)
to pay such unpaid deferred Distributions in full.

No remedy other than Permitted Remedies shall arise by the terms of such securities or related
transaction agreements in favor of the holders of such securities as a result of the issuer’s
failure to pay Distributions because of the Mandatory Trigger Provision or as a result of the
issuer’s exercise of its right under an Optional Deferral Provision until Distributions have been
deferred for one or more distribution periods for at least 10 years.

     “Market Disruption Event” means the occurrence or existence of any of the following events or
sets of circumstances:

     (i) the Company may not issue Relevant Securities without obtaining the consent
or approval of a regulatory body (including, without limitation, any securities
exchange) or governmental authority, and the Company has used commercially
reasonable efforts to obtain such consent or approval but such consent or approval
has not been obtained;

     (ii) the Company does not have sufficient Common Stock Available for Issuance
in respect of Qualifying Warrants or sufficient Qualifying Preferred Stock Available
for Issuance to raise sufficient proceeds to pay the interest payments on the
Convertible Debentures and accumulated dividends on the Perpetual Preferred Stock
and the Company has used commercially reasonable efforts to obtain the consent or
approval of its stockholders to increase the amount of its authorized Common Stock
or Qualifying Preferred Stock but such consent or approval has not been obtained;
provided that the Market Disruption Event described in this clause (ii) shall not
relieve the Company of its obligation to issue the number of shares of Qualifying
Preferred Stock that are Available for Issuance or Qualifying Warrants in respect of
which the Company has Common Stock Available for Issuance, and to apply the proceeds
thereof in partial payment of Deferred Interest as provided in Section 3.2(i);

     (iii) trading in securities generally or Common Stock or Preferred Stock on the
principal exchange on which the Common Stock or Preferred Stock is then listed and
traded (as of the date hereof, in the case of the Common Stock, the NYSE) has been
suspended or the settlement of such trading generally has been materially disrupted;

     (iv) (a) (1) the United States has become engaged in hostilities, (2) there has
been an escalation in hostilities involving the United States or (3) there has been
a declaration of a national emergency or war by the United States or (b) there has
occurred any material adverse change in (1) domestic or international economic,
political or financial conditions (including from terrorist activities) or (2) the
effect of international conditions on the financial markets in the United States
that, in any of the circumstances described in clauses (a) or (b) of this clause,
materially disrupts trading in securities generally on the NYSE or any other
national securities exchange on which the Common Stock or Preferred

10

 

Stock is then listed or traded or trading in, or the issuance and sale of,
Qualifying Warrants and Qualifying Preferred Stock;

     (v) a material disruption has occurred or a banking moratorium has been
declared in commercial banking or securities settlement or clearance services;

     (vi) minimum or maximum prices have been fixed, or maximum ranges for prices of
securities are required on the NYSE or by the Commission or another governmental
authority which, in either case, materially disrupts or otherwise has a material
adverse effect on trading in, or the issuance and sale of, Relevant Securities; or

     (vii) an event occurs and is continuing as a result of which the offering
document for the offer and sale of Qualifying Warrants or Qualifying Preferred Stock
would, in the Company’s judgment, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading and either (1) the disclosure of that event at
such time, in the Company’s judgment, would have a material adverse effect on the
Company’s business or (2) the disclosure relates to a previously undisclosed
proposed or pending material development or business transaction, the disclosure of
which would impede the Company’s ability to consummate such transaction, provided
that no single suspension period contemplated by this clause (vii) shall exceed 90
consecutive days and multiple suspension periods contemplated by this subsection may
not exceed an aggregate of 180 days in any 12-month period.

     “Most Junior Subordinated Debt Securities” mean debt securities that rank upon a liquidation,
dissolution or winding-up of the Company junior to all of the Company’s other long-term
indebtedness for money borrowed (other than the Company’s long-term indebtedness for money borrowed
from time to time outstanding that by its terms ranks pari passu with such securities) and pari
passu with the claims of the Company’s trade creditors.

     “Net Share Amount” has the meaning set forth in Section 2.23(a)

     “Net Shares” has the meaning set forth in Section 2.23(a).

     “Non-Cash Cumulative” means, with respect to any securities, that the securities include:

     (a) an Optional Deferral Provision; and

     (b) an Alternative Payment Mechanism that becomes effective after the issuer of such
securities has deferred Distributions on such securities for up to five years.

     “Non-Cumulative” means, with respect to any securities, that either (a) the issuer thereof may
elect not to make any number of periodic distributions or interest payments without any remedy
arising under the terms of the securities or related agreements in favor of the holders,

11

 

other than Permitted Remedies or (b) except for purposes of the definition of “Qualifying
Preferred Stock,” such securities are Non-Cash Cumulative.

     “Non-Stock Change of Control” means any Change of Control described by clause (a) or (c) under
the definition of “Change of Control,” other than a transaction in which at least 90% of the
consideration, excluding cash payments for fractional shares and cash payments pursuant to
dissenters’ appraisal rights, for the Company’s Common Stock consists of common stock traded on a
U.S. national securities exchange or interdealer quotation system (or which will be so traded or
quoted when issued or exchanged in connection with such Change of Control).

     “NYSE” mean the New York Stock Exchange, Inc.

     “Optional Deferral Provision” means, with respect to any securities, a provision in the terms
thereof or of the related transaction agreements that permits the issuer of such securities to, in
its sole discretion, defer in whole or in part payment of Distributions on such securities for up
to 10 years, without any remedy other than Permitted Remedies.

     “Optional Extension Period” has the meaning set forth in Section 2.6(a).

     “Optionally Deferred Interest” means all interest deferred pursuant to Section 2.6, as then
accrued and unpaid, together with Compounded Interest thereon.

     “Outstanding” has the meaning set forth in Section 1.01 of the Base Indenture.

     “Parity Debt Securities” means debt securities that rank pari passu with the Debentures.

     “Parity Guarantees” means guarantees that rank pari passu with the Debentures.

     “Par Redemption Amount” means a cash redemption price of 100% of the principal amount of the
Debentures to be redeemed, plus accrued and unpaid interest, including any Compounded Interest, to,
but not including, the Redemption Date.

     “Permitted Remedies” means, with respect to any securities, one or more of the following
remedies:

     (a) rights in favor of the holders of such securities permitting such holders to elect
one or more directors of the Company (including any such rights required by the listing
requirements of any stock or securities exchange on which such securities may be listed or
traded);

     (b) complete or partial prohibitions on the Company paying Distributions on or
repurchasing Common Stock or other securities that rank pari passu with or junior as to
Distributions to such securities for so long as Distributions on such securities, including
unpaid Distributions, remain unpaid; and

     (c) provisions obliging the Company to cause, or use commercially reasonable efforts to
cause, such unpaid Distributions to be paid in full pursuant to an Alternative Payment
Mechanism.

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     “Perpetual Preferred Stock” means the Company’s Perpetual Preferred Stock issued pursuant to
the Perpetual Preferred Stock Certificate of Designations.

     “Perpetual Preferred Stock Certificate of Designations” means the Company’s Certificate of
Designations of Perpetual Preferred Stock, as adopted by the Pricing Committee of the Company’s
Board of Directors on December 19, 2006 and attached hereto as Exhibit A.

     “Preferred Stock” means preferred stock of the Company.

     “Preferred Stock Cap” has the meaning set forth in Section 3.2(a)

     “QCS Proceeds” means, with respect to any Repayment Date, the net proceeds (after
underwriters’ or placement agents’ fees, commissions or discounts and other expenses relating to
the issuance or sale) the Company has received during the six-month period prior to the related
Repayment Notice Date from the issuance or sale of Qualifying Capital Securities to Persons that
are not Subsidiaries.

     “Qualifying Capital Securities” means securities that, in the determination of the Company’s
Board of Directors reasonably construing the definitions and other terms of the Capital Replacement
Covenant, satisfy one of the following descriptions:

     (a) Debt Exchangeable for Equity; or

     (b) any Preferred Stock or Most Junior Subordinated Debt Securities issued by the
Company that meet one of the following criteria:

     (i) (A) have no maturity or a maturity of at least 60 years with Capital
Replacement Intention Disclosure and (B) have an Optional Deferral Provision;

     (ii) (A) have no maturity or a maturity of at least 60 years and (B) are
Non-Cumulative;

     (iii) (A) have a maturity of at least 40 years and are subject to a Binding
Capital Replacement Covenant and (B) have an Optional Deferral Provision;

     (iv) (A) have a maturity of at least 40 years with Capital Replacement
Intention Disclosure and (B) are Non-Cumulative;

     (v) (A) have a maturity of at least 40 years and (B) have a Mandatory Trigger
Provision and an Optional Deferral Provision; or

     (vii) (A) have a maturity of at least 25 years and are subject to a Binding
Capital Replacement Covenant and (B) are Non-Cumulative.

     Any of the foregoing Qualifying Capital Securities may be convertible or exchangeable at any
time in whole or in part at the option of the issuer or the holder thereof into one or more other
securities so long as such other securities also qualify as Qualifying Capital Securities.

13

 

     Notwithstanding the foregoing, any securities or combinations of securities, if issued by the
Company to any of its Subsidiaries without the contemporaneous issuance of a security or
combination of securities that otherwise would satisfy the definition of “Qualifying Capital
Securities” by the Subsidiary to a Person other than a Subsidiary of the Company, shall not qualify
as Qualifying Capital Securities.

     “Qualifying Preferred Stock” means perpetual Preferred Stock of the Company (or depositary
shares representing interests in such Preferred Stock) that (a) is Non-Cumulative without regard to
clause (b) of the definition thereof and (b) (i) is non-callable, (ii) is subject to a Binding
Capital Replacement Covenant or (iii) has Capital Replacement Intention Disclosure and includes
provisions that, beginning on the occurrence of the failure to satisfy one or more financial tests
set forth in the terms of such security or related transaction agreements and so long as such
failure continues until, but excluding, the End Date, prohibit the issuer of such security from
paying any deferred Distributions in an amount exceeding the net proceeds of the sale of Common
Stock, rights to purchase Common Stock or Qualifying Preferred Stock.

     “Qualifying Warrants” means warrants to purchase Common Stock (i) that have an exercise price
per share greater than the most recent Closing Sale Price of the Common Stock as of the date of
issuance thereof and (ii) that the Company is not entitled to redeem for cash and the holders of
which are not entitled to require the Company to repurchase for cash in any circumstances.

     “Record Date” means, with respect to any dividend, distribution or other transaction or event
in which the holders of Common Stock have the right to receive any cash, securities or other
property or in which the Common Stock (or other applicable security) is exchanged for or converted
into any combination of cash, securities or other property, the date fixed for determination of
stockholders entitled to receive such cash, securities or other property (whether such date is
fixed by the Board of Directors or by statute, contract or otherwise).

     “Redemption Date” has the meaning set forth in Section 1.01 of the Base Indenture.

     “Regular Record Date” has the meaning set forth in Section 2.5(d).

     “Relevant Securities” means Qualifying Warrants or Qualifying Preferred Stock in the case of
the Company’s obligation to pay interest by selling Qualifying Warrants or Qualifying Preferred
Stock as described in Section 3.2, or Qualifying Capital Securities as described in Section 2.10.

     “Repayment Date” means the Scheduled Maturity Date and each Interest Payment Date thereafter
and prior to conversion of the Debentures until the Company shall have repaid or redeemed all of
the Debentures or the Debentures shall have been converted.

     “Repayment Notice Date” means a date no more than 15 and no less than 10 Business Days in
advance of any Repayment Date on which the Company delivers an Officers’ Certificate to the Trustee
pursuant to Section 2.10(d) hereof, or, in the event that the Company does not deliver an Officers’
Certificate to the Trustee on or prior to the tenth Business Day immediately preceding any
Repayment Date, the tenth Business Day immediately preceding such Repayment Date.

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     “Scheduled Maturity Date” means December 15, 2041.

     “Securities” or “Security” has the meaning set forth in the Recitals.

     “Senior Indebtedness” has the meaning set forth in Section 4.1.

     “Stock Price” has the meaning set forth in Section 2.24(b).

     “Trading Day” in respect of the Common Stock or any other security means any day on which the
NYSE or, if such Common Stock or other security is not listed on the NYSE, the principal U.S. stock
exchange or interdealer quotation system on which such Common Stock or other security is listed,
admitted for trading or quoted, is open for trading or, if such Common Stock or other security is
not so listed, admitted for trading or quoted, any Business Day. If such Common Stock or other
security is so listed, admitted for trading or quoted, Trading Days only include those days that
have a scheduled closing time of 4:00 p.m. (New York City time) or the then standard closing time
for regular trading on the relevant exchange or interdealer quotation system and do not include any
day on which any suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the NYSE or otherwise) in such security or in any options, contracts
or future contracts relating thereto, occurs or exists for more than one half hour in the aggregate
if such suspension or limitation occurs or exists at any time before 1:00 p.m. (New York City time)
on such day.

     “Trading Price” means, on any date of determination, for each $1,000 principal amount of
Debentures, the average of the secondary market bid quotations per $1,000 principal amount of
Debentures obtained by the Trustee for $2,000,000 principal amount of the Debentures at
approximately 3:30 p.m., New York City time, on such determination date from three independent
nationally recognized securities dealers selected by the Company, provided that if three such bids
cannot reasonably be obtained by the Trustee, but two such bids are obtained, then the average of
the two bids shall be used, and if only one such bid can reasonably be obtained by the Trustee,
this one bid shall be used; and provided further that, if the Trustee cannot reasonably obtain at
least one bid for $2,000,000 principal amount of Debentures from a nationally recognized securities
dealer, then the Trading Price per $1,000 principal amount of Debentures shall be deemed to be less
than 98% of the product of the Closing Sale Price of the Common Stock on such determination date
and the Conversion Rate then in effect.

     “Trading Price Condition” has the meaning set forth in Section 2.15(a)(iii).

     “Trigger Determination Date” has the meaning set forth in Section 2.7(b).

     “Trigger Event” has the meaning set forth in Section 2.18(e).

     “Trustee” has the meaning set forth in the Recitals.

     “Volume-Weighted Average Price” per share of the Company’s Common Stock, on any Trading Day,
means the volume-weighted average price on the NYSE or, if the Company’s Common Stock is not listed
on the NYSE, on the principal U.S. stock exchange or interdealer quotation system on which the
Company’s Common Stock is then traded, from 9:30 a.m. to 4:00 p.m. (New York City time) on that
Trading Day as displayed by Bloomberg (under the

15

 

heading “Bloomberg VWAP” on Bloomberg page BTU <equity> AQR in respect of the period
from (9:30 a.m. to 4:00 p.m. (New York City time) on such Trading Day) (or if such volume-weighted
average price is not available, the market value of one share on such Trading Day as the Company’s
Board of Directors determines in good faith using a volume-weighted method).

     “Warrant and Preferred Stock Settlement Mechanism” has the meaning set forth in Section
3.2(a).

     “Warrant Cap” has the meaning set forth in Section 3.2(a).

ARTICLE II

TERMS OF THE DEBENTURES

     Pursuant to Section 3.01 of the Base Indenture, the Debentures are hereby established with the
following terms and other provisions:

     Section 2.1 Designation and Principal Amount.

     (a) There is hereby authorized a series of Securities designated the “4.75% Convertible Junior
Subordinated Debentures due 2066,” in the initial aggregate principal amount of $732,500,000.

     (b) The Company may, from time to time, subject to compliance with any other applicable
provisions of this Indenture but without the consent of the Holders of Debentures, create and issue
pursuant to this Indenture an unlimited principal amount of additional Debentures (in excess of any
amounts theretofore issued) having the same terms and conditions as those of the other Outstanding
Debentures, except that any such additional Debentures (i) may have a different issue date and
issue price from other Outstanding Debentures and (ii) may have a different date from which
interest shall accrue and amount of interest payable on the first Interest Payment Date after
issuance than other Outstanding Debentures. Such additional Debentures shall constitute part of
the same series of Debentures hereunder.

     Section 2.2 Issue Date; Maturity. The Debentures shall mature on December 15, 2066
(the “Final Maturity Date”), except in the case of (a) a prior redemption, (b) prior repayment
pursuant to Section 2.10, (c) prior conversion pursuant to Section 2.15 and Section 2.16 or (d) the
occurrence and continuation of an Event of Default as a result of which the Debentures are
accelerated prior to maturity.

     Section 2.3 Place of Payment and Surrender for Registration of Transfer. Payment of
principal of and interest on the Debentures shall be made, the transfer of Debentures will be
registrable and Debentures will be exchangeable for Debentures of other denominations of a like
aggregate principal amount at the office or agency of the Trustee maintained for such purpose,
initially the Corporate Trust Office. Payment of any principal and interest on Debentures issued
as Global Debentures shall be payable by the Company through the Paying Agent to the Depositary in
immediately available funds. At the Company’s option, interest on Debentures issued in physical
form may be payable (i) by a U.S. dollar check drawn on a bank in The City of New York mailed to
the address of the Person entitled thereto as such address shall appear in the

16

 

Security Register, or (ii) upon application to the Security Registrar not later than 10 days
before the Interest Payment Date by a Holder of Debentures having an aggregate principal amount in
excess of $2,000,000, by wire transfer in immediately available funds, which application shall
remain in effect until the Holder of Debentures notifies, in writing, the Security Registrar to the
contrary.

     Section 2.4 Registered Securities; Form; Denominations; Depositary.

     (a) The Debentures shall be issued in fully registered form as registered Securities and shall
be initially issued in the form of one or more permanent Global Debentures (the “Global
Debentures”), in the form of Exhibit B hereto. The Debentures shall not be issuable in bearer
form. The terms and provisions contained in the Global Debentures shall constitute, and are hereby
expressly made, a part of the Indenture, and the Company and the Trustee, by their execution and
delivery of the Indenture, expressly agree to such terms and provisions and to be bound thereby.

     (b) The Debentures shall be issued in denominations of $1,000 and whole multiples thereof.

     Section 2.5 Interest.

     (a) The Debentures will accrue interest at a rate per annum of 4.75% (the “Debenture Interest
Rate”) of the principal amount of $1,000 per Debenture, payable, subject to the provisions of
Section 2.6, Section 2.7 and Section 2.8, semi-annually in arrears on June 15 and December 15 of
each year (each, an “Interest Payment Date”), commencing on June 15, 2007.

     (i) The amount of interest payable for any Interest Payment Period will be
computed as follows:

     (1) for any full Interest Payment Period, on the basis of a 360-day year of 12
30-day months;

     (2) for any period shorter than a full Interest Payment Period, on the basis of
30-day months; and

     (3) for any period shorter than a 30-day month, on the basis of the actual
number of days elapsed in that period.

     (ii) In the event that any Interest Payment Date is not a Business Day, payment
of the interest payable on such Interest Payment Date shall be made on the next
succeeding day that is a Business Day without any interest or other payment in
respect of any such delay.

     (b) Interest will accrue and compound semi-annually at the Debenture Interest Rate from and
including the date of initial issuance or the last Interest Payment Date in respect of which
interest has been paid or duly provided for, as applicable, to but excluding the next succeeding
Interest Payment Date on which the interest is actually paid, Conversion Date or Redemption Date,
or the Final Maturity Date, as the case may be.

17

 

     (c) Interest not paid on any Interest Payment Date, including any interest deferred during any
Extension Period, will accrue and compound semi-annually at the Debenture Interest Rate, to the
extent permitted by applicable law. Subject to Section 2.5(a)(ii), such interest shall accrue and
compound to the date that it is actually paid.

     (d) For so long as the Debentures are held in book-entry-only form, interest shall be paid on
each Interest Payment Date to the Person in whose name a given Debenture is registered in the
Security Register at 5:00 p.m., New York City time, on the last Business Day prior to the Interest
Payment Date (each such date a “Regular Record Date”). In the event that the Debentures are no
longer held in book-entry-only form or are not represented by Global Securities, the Company may
select different Regular Record Dates, which must each be at least 15 Business Days before the
relevant Interest Payment Dates.

     Section 2.6 Optional Deferral of Interest.

     (a) Subject to Section 2.8 and Section 3.2, as long as no Event of Default has occurred and is
continuing, and as long as no Mandatory Trigger Event has occurred and no Mandatory Extension
Period caused thereby is continuing, the Company shall have the right at any time and from time to
time, to defer payments of interest on the Debentures by extending the Interest Payment Period on
the Debentures for a period not exceeding 10 years, in the aggregate, following the Interest
Payment Date on which interest was deferred (an “Optional Extension Period”). During an Optional
Extension Period, Deferred Interest on the Debentures shall not be due and payable, except to the
extent of APM Eligible Proceeds available pursuant to Section 2.10(e), if applicable, but will
continue to accrue and compound semi-annually, to the extent permitted by applicable law, at the
Debenture Interest Rate.

     (b) If a Mandatory Trigger Event occurs on or after commencement of an Optional Extension
Period, the Optional Extension Period shall be deemed suspended for so long as the Mandatory
Extension Period is continuing and the provisions of Section 2.7 shall apply. Upon the termination
of such Mandatory Extension Period, the Optional Extension Period will continue.

     (c) An Optional Extension Period shall terminate on such date as all accrued and unpaid
interest, together with Compounded Interest, if any, has been paid by the Company, provided that in
no event shall an Optional Extension Period (regardless of whether a Mandatory Extension Period
causes the extension of such Optional Extension Period) extend beyond the date which is 10 years
following the commencement of the Optional Extension Period, beyond the Redemption Date or beyond
the Final Maturity Date of the Debentures. Upon termination of an Optional Extension Period, the
Company may commence a new Optional Extension Period, subject to the other conditions in this
Section 2.6, there being no limit to the number of such new Optional Extension Periods the Company
may elect.

     (d) During an Optional Extension Period, the Company shall be subject to the covenants set
forth in Section 3.1.

     (e) The Company shall give written notice of its election to defer payments of interest on the
Debentures for an Optional Extension Period, which such notice shall be irrevocable, at

18

 

least 15 and not more than 60 days prior to the first Interest Payment Date during such
Optional Extension Period as follows:

     (i) by first class mail, postage prepaid, addressed to the Holders of
Debentures; or

     (ii) as to any Global Debenture registered in the name of DTC or its nominee,
by e-mail, fax, or any other manner as agreed to by the Company and the Holders of
any such Global Debenture.

     A copy of any such notice to Holders of Debentures or Global Debentures, if given by the
Company, shall be mailed or delivered to the Trustee at the same time.

     (f) The Company shall give written notice to the Holders of Debentures, with a copy to the
Trustee, of its election to terminate an Optional Extension Period at least 15 days but not more
than 60 days prior to the Interest Payment Date upon which the Optional Extension Period shall
terminate and all Deferred Interest shall be paid.

     Section 2.7 Mandatory Deferral of Interest.

     (a) Subject to Section 2.8 and Section 3.2, if and to the extent that a Mandatory Trigger
Event has occurred and is continuing as of any Trigger Determination Date, and regardless of the
election by the Company prior thereto to optionally defer interest payments pursuant to Section
2.6, the Company shall be required to defer payments of interest on the Debentures beginning on the
Interest Payment Date immediately following such Trigger Determination Date, thereby extending the
Interest Payment Period on the Debentures until (but not including) the first subsequent Interest
Payment Date for which no Mandatory Trigger Event has occurred as of the Trigger Determination Date
applicable to such Interest Payment Date, but in any event for a period not extending beyond the
date which is 10 years following commencement of the applicable Extension Period (a “Mandatory
Extension Period”). During a Mandatory Extension Period, Deferred Interest on the Debentures shall
not be due and payable, except to the extent of APM Eligible Proceeds available pursuant to Section
2.10(e), but will continue to accrue and compound semi-annually, to the extent permitted by
applicable law, at the Debenture Interest Rate.

     (b) “Mandatory Trigger Event” with respect to each Interest Payment Date means a determination
by the Company that both of the following conditions exist as of the day that is the
30th day prior to such Interest Payment Date (or, in the event that such date is not a
Business Day, the immediately preceding Business Day) (a “Trigger Determination Date”):

     (i) The Leverage Ratio for each of the three most recently completed fiscal
quarters was equal to or greater than 6.0; and

     (ii) The Interest Coverage Ratio for each of the three most recently completed
fiscal quarters was less than or equal to 2.0.

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     The Mandatory Extension Period shall continue until either (or both) of the conditions in
clauses (i) and (ii) above no longer exists as of the Trigger Determination Date applicable to any
subsequent Interest Payment Date.

     For purposes of determining whether a Mandatory Trigger Event has occurred on any relevant
Trigger Determination Date, any accrued but unpaid Optionally Deferred Interest will be counted as
if it had been paid in cash.

     (c) If, because of a change in GAAP that, considered cumulatively with any other such changes,
results in a change in an accounting principle or a restatement, the Company’s Leverage Ratio or
Interest Coverage Ratio is higher or lower than it would have been absent such change, then, for
purposes of the calculations described in clauses (b)(i) and (ii) of this Section 2.7, commencing
with the fiscal quarter for which such change in GAAP becomes effective, such Leverage Ratio or
Interest Coverage Ratio, as applicable, shall be calculated on a pro forma basis as if such change
had not occurred.

     (d) During a Mandatory Extension Period, the Company shall be subject to the covenants set
forth in Section 3.1 and Section 3.2.

     (e) By acquiring a Debenture or an interest therein, each Holder or beneficial owner of a
Debenture, as the case may be, agrees that in the event of the Company’s bankruptcy, insolvency or
receivership, whether voluntary or not, prior to the Final Maturity Date or redemption, repayment
pursuant to Section 2.10 or conversion of the Debentures, any unpaid Mandatorily Deferred Interest,
or Compounded Interest on Mandatorily Deferred Interest, in excess of the amount of such interest
that is equal to two years of accrued and unpaid interest (including Compounded Interest on the two
earliest years of Mandatorily Deferred Interest) on the Debentures (the “Foregone Interest”) shall
not be due and payable and no such Holder or beneficial owner will have any claim for, and thus any
right to receive, such Foregone Interest; provided that such limitation shall not reduce the
amounts holders of Senior Indebtedness would have been entitled to receive in the absence thereof.

     (f) By not later than the 15th day prior to each Interest Payment Date for which the Interest
Payment Period is being extended by reason of a Mandatory Trigger Event, the Company shall give
notice of such Mandatory Extension Period as follows:

     (i) by first class mail, postage prepaid, addressed to the Holders of Debentures; or

     (ii) as to any Global Debenture registered in the name of DTC or its nominee, by
e-mail, fax, or any other manner as agreed to by the Company and the Holders of any Global
Debenture.

     Such notice shall state that a Mandatory Trigger Event has occurred and that interest payments
will be paid only in accordance with the Warrant and Preferred Stock Settlement Mechanism or will
be deferred and shall set forth:

     (i) the Leverage Ratio for each of the three most recently completed fiscal
quarters; and

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     (ii) the Interest Coverage Ratio for each of the three most recently completed
fiscal quarters.

     A copy of any such notice to Holders of Debentures, if given by the Company, shall be mailed
or delivered to the Trustee at the same time.

     (g) The Company shall give written notice to the Holders of Debentures, with a copy to the
Trustee, of termination of a Mandatory Extension Period at least 15 days but not more than 60 days
prior to the Interest Payment Date upon which the Mandatory Extension Period shall terminate and
all Deferred Interest shall be paid.

     Section 2.8 Deferral of Interest in General.

     (a) Any Deferred Interest will in all events be due and payable upon the Final Maturity Date,
subject, in the case of Foregone Interest, to Section 2.7(e).

     (b) At the termination of any Extension Period, the Company shall pay all Deferred Interest
then accrued and unpaid, together with Compounded Interest, on the Interest Payment Date on which
such Extension Period terminates. Unless otherwise terminated pursuant to Section 2.6(f) or
Section 2.7(g) hereof, an Extension Period will be deemed to terminate upon any redemption or upon
any acceleration of the Final Maturity Date.

     (c) In no event shall any Extension Period (i) exceed 10 consecutive years following the first
Interest Payment Date on which any interest payment was deferred pursuant to Section 2.6 or Section
2.7, (ii) unless Deferred Interest is satisfied using the Warrant and Preferred Stock Settlement
Mechanism, end on a date other than an Interest Payment Date, (iii) extend beyond the Redemption
Date, or (iv) extend beyond the Final Maturity Date. For purposes of determining compliance with
the foregoing limitation on any Extension Period, (x) only when all Deferred Interest has been paid
shall any Extension Period end; and (y) after the commencement of an Extension Period, the period
from the first Interest Payment Date for which interest is deferred pursuant to Section 2.6 or
Section 2.7 and ending on the date on which all Deferred Interest, including Compounded Interest,
is paid in full, shall be included for purposes of calculating the length of an Extension Period.

     Section 2.9 Right to Optional Redemption by the Company.

     (a) The Debentures will not be subject to redemption prior to December 20, 2011. Subject to
clauses (c) and (d) below, the Debentures are subject to redemption, at the option of the Company,
in whole or in part, (i) between December 20, 2011 and December 19, 2036, at any time at which the
Closing Sale Price of the Common Stock for at least 20 Trading Days in the 30 consecutive Trading
Day period ending on the date one Trading Day prior to the day the Company gives a notice of
redemption is greater than 130% of the Conversion Price applicable to the relevant Trading Day and
(ii) on or after December 20, 2036 at any time, in each case at a redemption price in cash equal to
the Par Redemption Amount.

     (b) Any such redemption shall be governed by Article 11 of the Base Indenture.

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     (c) The Company may not redeem any Debentures unless all accrued and unpaid interest on all
Outstanding Debentures, including Deferred Interest, if any, has been paid in full for all Interest
Payment Periods terminating on or prior to the Redemption Date.

     (d) If any Perpetual Preferred Stock is outstanding, the Company may not optionally redeem any
Debentures unless it first gives irrevocable notice of redemption, pursuant to Section 7 of the
Perpetual Preferred Stock Certificate of Designations, of the Perpetual Preferred Stock in whole
or, if the redemption of the Debentures is in part, in the same proportion as the redemption of the
Debentures. For the avoidance of doubt, this restriction does not apply to the Company’s
obligation to repay the Debentures at the Scheduled Maturity Date pursuant to Section 2.10 hereof.

     (e) Each notice that the Debentures are being redeemed pursuant to the Indenture, shall, in
addition to setting forth the information required pursuant to Section 11.02 of the Base Indenture,
state that the Debentures are being optionally redeemed pursuant to the Indenture and set forth the
facts permitting such redemption and, if less than all outstanding Debentures are to be redeemed,
to the extent that the Debentures are not all held in global form, shall identify the particular
Debentures to be redeemed.

     (f) Notwithstanding the provisions of Section 11.02 of the Base Indenture, if the Debentures
are held in book-entry form through DTC, the Company may give notice of redemption in any manner
permitted by DTC, with a copy to the Trustee.

     (g) Any notice of redemption, once given by the Company, shall be irrevocable.

     (h) If the Par Redemption Amount in respect of any Debentures called for redemption is not
paid on the Redemption Date, such amount shall, until paid, bear interest from the Redemption Date
at the Debenture Interest Rate compounded semiannually.

     Section 2.10 Scheduled Maturity.

     (a) On each Repayment Date, the principal amount of, and all accrued and unpaid interest on,
all then Outstanding Debentures shall be payable in full, provided that in the event the Company
has delivered an Officers’ Certificate to the Trustee pursuant to and in accordance with clause
(d) of this Section 2.10 in connection with such Repayment Date, (A) the amounts of principal and
interest in respect of the Debentures that the Company is obligated to pay on such Repayment
Date, if any, shall be the amounts set forth in the notice of repayment accompanying such
Officers’ Certificate and (B) such amounts of principal and interest in respect of the Debentures
shall be due and payable on such Repayment Date pursuant to this Section 2.10. In the event that
the Company does not deliver an Officers’ Certificate to the Trustee on or prior to the tenth
Business Day immediately preceding any Repayment Date, the entire principal of, and all accrued
and unpaid interest on, all Outstanding Debentures shall be due and payable on such Repayment
Date.

     (b) The principal of, and all accrued and unpaid interest on, all Outstanding Debentures shall
be due and payable on the Final Maturity Date.

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     (c) The obligation of the Company to repay the Debentures pursuant to this Section 2.10 on any
date prior to the Final Maturity Date shall be subject to (A) its obligations under Article
Fourteen of the Base Indenture as amended by this First Supplemental Indenture to the holders of
Senior Indebtedness and (B) its obligations under Section 2.7 with respect to the payment of
Mandatorily Deferred Interest.

     (d) The Company shall, if it has not raised sufficient QCS Proceeds in connection with any
Repayment Date to repay principal and interest on all then Outstanding Debentures in full, deliver
an Officers’ Certificate to the Trustee (who shall forward such certificate to each Holder of
Debentures as soon as practicable) no more than 15 and no less than 10 Business Days in advance of
such Repayment Date stating the amount of QCS Proceeds, if any, raised in connection with such
Repayment Date. Each Officers’ Certificate delivered pursuant to this clause (d), unless no
principal amount of Debentures is to be repaid on the applicable Repayment Date, shall be
accompanied by a notice of repayment pursuant to Section 2.10(h) setting forth the amounts of
interest and principal in respect of the Debentures that the Company will repay on such Repayment
Date, which amounts shall be equal to or greater than the amount of QCS Proceeds to be applied
thereto pursuant to clause (e) of this Section 2.10.

     (e) QCS Proceeds shall be applied by the Company first, to pay Mandatorily Deferred Interest
(to the extent that such QCS Proceeds are also APM Eligible Proceeds), second, to pay Optionally
Deferred Interest (provided that if such payment is to be made following the date that is five
years following the first Interest Payment Date as of which the Company commenced an Optional
Extension Period (as may be extended by any Mandatory Extension Period occurring within such
Optional Extension Period), only to the extent that such QCS Proceeds are also APM Eligible
Proceeds), third, to pay current interest to the extent not paid from other sources, and fourth, to
pay the principal of the Debentures, subject to a minimum principal amount of $5 million to be
repaid on any Repayment Date; provided that if the Company is obligated to sell Qualifying Capital
Securities and apply the net proceeds to payments of principal of or interest on any other
outstanding securities that rank pari passu with the Debentures, then on any date and for any
period the amount of APM Eligible Proceeds received by the Company from those sales and available
for such payments shall be applied to the Debentures and those other equal-ranking securities pro
rata in accordance with their respective outstanding principal amounts.

     (f) If less than all the Debentures are to be repaid on any Repayment Date, the particular
Debentures to be repaid shall be selected prior to such Repayment Date by the Trustee, from the
Outstanding Debentures not previously repaid or called for redemption, by lot or such other method
as the Trustee shall deem fair and appropriate and which may provide for the selection for
redemption of a portion of the principal amount of any Debentures, provided that the portion of the
principal amount of any Debentures not repaid shall be in an authorized denomination (which shall
not be less than the minimum authorized denomination of $1,000) for such Debentures.

     (g) The Trustee shall promptly notify the Company in writing of the Debentures selected for
partial repayment and the principal amount thereof to be repaid. For all purposes hereof, unless
the context otherwise requires, all provisions relating to the repayment of Debentures shall
relate, in the case of any Debentures repaid or to be repaid only in part, to the

23

 

portion of the principal amount of such Debentures which has been or is to be repaid. If the
Company shall so direct in writing, Debentures registered in the name of the Company, any Affiliate
or any Subsidiary thereof shall not be included in the Debentures selected for repayment.

     (h) Notice of repayment shall be given by the Company by first-class mail, postage prepaid,
mailed not earlier than the 15th Business Day, and not later than the tenth Business Day, prior to
the Repayment Date, to each Holder of Debentures to be repaid, at the address of such Holder as it
appears in the Securities Register, with a copy to the Trustee. Each notice of repayment shall
identify the Debentures to be repaid (including CUSIP number, if a CUSIP number has been assigned
to the Debentures) and shall state:

     (i) the Repayment Date;

     (ii) the payment amount and the manner of its calculation;

     (iii) that the Debentures are being paid pursuant to the Indenture;

     (iv) if less than all Outstanding Debentures are to be paid, the identification
(and, in the case of partial repayment, the respective principal amounts) of the
particular Debentures to be paid;

     (v) that on the Repayment Date, the principal amount of the Debentures to be
paid shall become due and payable upon each such Debenture or portion thereof, and
that interest thereon, if any, shall cease to accrue on and after said date; and

     (vi) the place or places where such Debentures are to be surrendered for
payment of the principal amount thereof.

Notice of repayment shall be given by the Company or, at the Company’s request, by the Trustee in
the name and at the expense of the Company and shall be irrevocable. The notice if mailed in the
manner herein provided shall be conclusively presumed to have been duly given, whether or not the
Holder receives such notice. In any case, a failure to give such notice by mail or any defect in
the notice to the Holder of any Debentures designated for repayment as a whole or in part shall not
affect the validity of the proceedings for the repayment of any other Debentures.

     (i) Prior to 10:00 a.m. New York City time on the Repayment Date specified in the notice of
repayment given as provided in Section 2.10(h), the Company shall deposit with the Trustee an
amount of money sufficient to pay the principal amount of, and any accrued interest (including
Deferred Interest and Compounded Interest) on, all the Debentures which are to be repaid on that
date.

     (j) If any notice of repayment has been given as provided in Section 2.10(h), the Debentures
or portion of the Debentures with respect to which such notice has been given shall become due and
payable on the date and at the place or places stated in such notice. On presentation and
surrender of such Debentures at a place of payment in said notice specified, the said securities or
the specified portions thereof shall be paid by the Company at their principal

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amount, together with accrued interest (including any Deferred Interest and Compounded
Interest) to the Repayment Date.

     (k) Upon presentation of any Debentures repaid in part only, the Company shall execute and the
Trustee shall authenticate and make available for delivery to the Holder thereof, at the expense of
the Company, new Debentures, of authorized denominations, in an aggregate principal amount equal to
the portion of the Debentures not repaid and so presented and having the same original issue date
and terms. If a Global Debenture is so surrendered, such new Debenture shall also be a new Global
Debenture. If any Global Debenture is repaid in part only, and the Depositary so permits, the
Trustee or a custodian at the direction of the Trustee shall make a notation on such Global
Debenture as to the reduction in the principal amount in lieu of new Debentures being authenticated
and delivered.

     (l) If any Debentures called for repayment shall not be so paid upon surrender thereof, the
principal of such Debentures shall, until paid, bear interest from the Repayment Date at the
Debenture Interest Rate.

     Section 2.11 Events of Default.

     (a) The Base Indenture is hereby amended and supplemented with respect to the Debentures as
follows: An “Event of Default” with respect to the Debentures shall mean (and the following shall
replace in their entirety the provisions of clauses (a) through (f) of Section 5.01 of the Base
Indenture with respect to the Debentures (except to the extent referred to below with respect to
clause (e)):

     (i) default for 30 calendar days in the payment of any interest on the
Debentures, including any Compounded Interest, when it becomes due and payable under
the Indenture; provided, however, that the deferral of interest during an Extension
Period satisfying Section 2.6 or Section 2.7, as applicable, and Section 2.8, as
applicable, hereof shall not constitute a default in the payment of interest;

     (ii) deferral of interest on the Debentures, due to a mandatory deferral or
optional deferral, or combination thereof, that continues for 10 consecutive years
after the date on which the Company began the deferral of interest without all
Deferred Interest, including any Compounded Interest, having been paid in full on or
prior to the day that is 30 days after the date that is 10 years after the
commencement of such deferral;

     (iii) default in the payment of the principal of the Debentures when due; or

     (iv) an Event of Default as set forth in clause (e) of Section 5.01 of the Base
Indenture.

     (b) Notwithstanding anything to the contrary contained in Article Five of the Base Indenture,
in the event of a default pursuant to Section 2.11(a)(iv) prior to the Final Maturity Date or
redemption, repayment pursuant to Section 2.10 or conversion of the Debentures no

25

 

Holder or beneficial owner of a Debenture, as the case may be, shall have any claim for, or
right to receive, any Foregone Interest and any Foregone Interest shall not be due and payable.

     (c) For the avoidance of doubt, (A) the use of sources of funding other than the Warrant and
Preferred Stock Settlement Mechanism to fund (i) interest payments during a Mandatory Extension
Period or (ii) payments of Optionally Deferred Interest following the date that is five years (as
may be extended by any Mandatory Extension Period occurring within an Optional Extension Period)
following the first Interest Payment Date as of which the Company commenced an Optional Extension
Period or (B) the failure of the Company to use its commercially reasonable efforts to sell
Qualifying Capital Securities pursuant to Section 3.3 or to apply QCS Proceeds pursuant to Section
2.10(e), shall, in neither case, be an Event of Default hereunder, but shall constitute a Covenant
Breach hereunder.

     Section 2.12 Covenant Breaches. The Base Indenture is hereby amended and supplemented
with respect to the Debentures as follows:

     (a) Section 5.05 is amended in its entirety as follows: “No Holder of a 4.75% Convertible
Junior Subordinated Debenture (a “Debenture”) shall have any right by virtue of or by availing of
any provision of this Indenture to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless (i) (A) such Holder previously shall have given to the
Trustee written notice of default and of the continuance thereof, as hereinbefore provided, with a
copy to the Company, or (B) the Trustee shall have previously given notice of such default to the
Company, (ii) the Holders of not less than 25% in aggregate principal amount of the Debentures then
Outstanding, or a majority in aggregate principal amount of the Debentures then Outstanding, in the
case of a Covenant Breach (as defined in the First Supplemental Indenture hereto, dated as of
December 20, 2006), shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such
indemnity reasonably satisfactory to the Trustee as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, (iii) the Trustee for 90 days after its receipt of
such notice, request and offer of indemnity, shall have neglected or refused to institute any such
action, suit or proceeding during such 90-day period, and (iv) during such 90-day period no
direction inconsistent with such written request shall have been given to the Trustee by the
Holders of a majority in aggregate principal amount of the Debentures then Outstanding (or such
amount as shall have acted at a meeting pursuant to the provisions of this Indenture), it being
understood and intended, and being expressly covenanted by the Holder of every Debenture with every
other Holder and the Trustee, that no one or more Holders shall have any right in any manner
whatever by virtue of or by availing of any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holder, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all such Holders.

     Notwithstanding any other provisions in this Indenture, however, the right of any Holder of
any Debenture to receive payment of the principal of, and interest on, such Debenture, on or after
the respective due dates expressed in such Debenture or to receive any consideration due to such
Holder upon any conversion of Debentures, or to institute suit for the enforcement of any

26

 

such payment on or after such respective dates or for the enforcement of the Company’s
obligation to deliver conversion consideration when due shall not be impaired or affected without
the written consent of such Holder.”

     (b) Section 5.06 is amended in its entirety as follows: “If an Event of Default with respect
to the Debentures occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of the Debentures by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.

     If a Covenant Breach with respect to the Debentures occurs and is continuing, the Trustee may
in its discretion proceed to protect and enforce its rights by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy. If a Covenant
Breach with respect to the Debentures occurs and is continuing, and then only if the Trustee is
directed by Holders of Debentures pursuant to and in accordance with Section 5.08 hereof and, if so
requested by the Trustee, an indemnity reasonably satisfactory to it is granted by the Holders, the
Trustee shall proceed to protect and enforce the rights of the Holders of the Debentures by such
appropriate judicial proceedings as such Holders shall so direct to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper remedy.”

     (c) Section 5.08 is amended in its entirety as follows: “The Holders of a majority in
aggregate principal amount of the Debentures at the time Outstanding 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 Debentures; provided,
however, that (subject to the provisions of Section 6.01) the Trustee shall have the right to
decline to follow any such direction if the Trustee, being advised by counsel, determines that the
action or proceeding so directed may not lawfully be taken or if the Trustee in good faith shall
determine that the action or proceeding so directed would involve the Trustee in personal
liability. Subject to Section 5.02, the Holders of a majority in aggregate principal amount of the
Debentures at the time Outstanding may on behalf of the Holders of all of the Debentures waive any
past Covenant Breach, default or Event of Default described in Section 5.01, or any other Event of
Default for such series specified in the terms thereof as contemplated by Section 3.01, and its
consequences except a default in the payment of interest on, or the principal of, any of the
Debentures or a default in respect of a provision of this Indenture that, under Section 9.02,
cannot be modified or amended without the consent of each Holder of each Debenture affected by such
modification or amendment. Upon any such waiver the Company, the Trustee and the Holders of the
Debentures shall be restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Covenant Breach, default or Event of Default or
impair any right consequent thereon. Whenever any Covenant Breach, default or Event of Default
hereunder shall have been waived as permitted by this Section 5.08, said Covenant Breach, default
or Event of Default shall for all purposes of the Debentures and this Indenture be deemed to have
been cured and to be not continuing.”

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     (d) The final sentence of Section 6.02 is amended in its entirety as follows: “For the purpose
of this Section, the term “default” means any event which is, or after notice or lapse of time or
both would become, a Covenant Breach or Event of Default.”

     (e) The parties hereto agree and acknowledge that in the case of any failure to deliver
consideration deliverable in respect of any conversion (other than a conversion upon notice of
redemption or in connection with a Non-Stock Change of Control), monetary damages would not be
adequate and hereby specify specific performance as the remedy for any such failure.

     Section 2.13 Designation of Depositary. Initially, the Depositary for the Debentures
will be DTC. The Global Debentures will be registered in the name of the Depositary or its
nominee, initially Cede & Co., and delivered by the Trustee to the Depositary or a custodian
appointed by the Depositary for crediting to the accounts of its participants.

     Section 2.14 Definitive Form of Debentures. The Debentures shall be issued in
definitive form only under the limited circumstances set forth in Section 3.07 of the Base
Indenture.

     Section 2.15 Conversion Rights.

     (a) Subject to and upon compliance with the provisions of this Indenture, on or prior to
December 15, 2041 (or, if that is not a Trading Day, the first Trading Day thereafter), the Holder
of any Debenture not previously redeemed shall have the right, at such Holder’s option, to convert
such Holder’s Debenture, or any portion thereof with an aggregate principal amount that is a
multiple of $1,000, into, as provided herein, cash, Perpetual Preferred Stock, Common Stock or a
combination thereof, at the Conversion Rate in effect on the Conversion Date, by surrender of the
Debenture so to be converted in whole or in part, together with any required funds, under the
circumstances and in the manner described in this Section 2.15 and Section 2.16; provided, however,
that at any time prior to the close of business on December 15, 2036, Holders may convert their
Debentures only during the periods and under the conditions specified in clauses (i) through (v)
below:

     (i) during any calendar quarter commencing after the Issue Date, and only
during such calendar quarter, if the Closing Sale Price per share of the Common
Stock for at least 20 Trading Days in the period of 30 consecutive Trading Days
ending on the last Trading Day of the preceding calendar quarter exceeds 140% of the
then applicable Conversion Price;

     (ii) at any time after the Company has issued a notice of redemption of the
Debentures pursuant to Article 11 of the Base Indenture and Section 2.9 hereof until
5:00 p.m., New York City Time, on the last Business Day preceding the Redemption
Date;

     (iii) during the 10 Trading Days immediately following any
five-consecutive-Trading-Day period in which the Trading Price per $1,000 principal
amount of the Debentures for each day of such five-consecutive-Trading-Day period is
determined, after a request to conduct such measurement, to be less than 98% of the
product of the Closing Sale Price per share of the Company’s

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Common Stock and the Conversion Rate in effect on each such Trading Day (the
“Trading Price Condition”);

     (iv) if a Change of Control occurs, at any time beginning on the Effective Date
of such Change of Control and until and including the date which is 35 calendar days
after such Effective Date; or

     (v) if (A) the Company distributes to all or substantially all holders of
Common Stock rights or warrants entitling them to subscribe for or purchase, for a
period expiring within 60 calendar days of the Record Date for the determination of
the shareholders entitled to receive such distribution, shares of Common Stock, at a
price per share less than the average of the Closing Sale Price per share of the
Common Stock for five consecutive Trading Days immediately preceding, but not
including, the date of first public announcement of such distribution, or (B) the
Company distributes to all or substantially all holders of Common Stock, cash, debt
securities (or other evidence of indebtedness) or other assets (excluding dividends
or distributions described in Sections 2.18(b) or (d) and the amount of cash
dividends not in excess of the Dividend Threshold Amount per share of Common Stock
per calendar quarter), which distribution, together with all other such
distributions within the preceding 12 months, has a per share Fair Market Value
exceeding 20% of the average of the Closing Sale Prices of the Company’s Common
Stock for the five consecutive Trading Days ending on the date immediately
preceding, but not including, the date of the first public announcement for such
distribution, then, in either case, the Holders shall have the right to convert
Debentures at any time on and after the date that the Company gives notice to the
Holders of such distribution, which shall be not less than 25 Trading Days prior to
the Ex-Dividend Time for such distribution, until the earlier of 5:00 p.m., New York
City time, on the Business Day immediately preceding, but not including, the
Ex-Dividend Time or the date the Company publicly announces that such distribution
will not take place; provided that a Holder of Debentures may not convert its
Debentures pursuant to this Section 2.15(a)(v) if the Holder will otherwise
participate in such distribution without conversion as a result of holding the
Debentures.

     Debentures and portions of Debentures that are to be redeemed pursuant to Section 2.9 shall
cease to be convertible by the Holder thereof at 5:00 p.m., New York City Time, on the Business Day
immediately preceding the Redemption Date unless the Company defaults in the payment of the
redemption price.

     The Trustee (or other conversion agent appointed by the Company) shall, upon the request of,
and on behalf of, the Company, determine whether the Debentures shall be convertible as a result of
the occurrence of an event specified in clause (iii) above and, if the Debentures shall be so
convertible, the Trustee (or other conversion agent appointed by the Company) shall promptly
deliver to the Company and the Trustee (if the Trustee is not the conversion agent) written notice
thereof.

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     The Company appoints the Trustee as the initial conversion agent. The Trustee may resign from
its appointment as conversion agent at any time and the Company shall then appoint a new conversion
agent. The Trustee (or other conversion agent appointed by the Company) shall have no obligation
to determine the Trading Price under Section 2.15(a)(iii) unless the Company has requested that the
Trustee (or other conversion agent appointed by the Company) make such a determination. The
Company shall have no obligation to make such request unless so requested in writing by a Holder
that provides the Company with reasonable evidence that the Trading Price per $1,000 principal
amount of Debentures would be less than 98% of the product of the Closing Sale Price per share of
the Company’s Common Stock and the Conversion Rate then in effect. If a Holder submits such a
request, the Company shall instruct the Trustee (or other conversion agent) to determine the
Trading Price of the Debentures beginning on the next Trading Day and on each successive Trading
Day until the Trading Price per $1,000 principal amount of Debentures is greater than or equal to
98% of the product of the Closing Sale Price per share of the Common Stock and the Conversion Rate
then in effect for five consecutive Trading Days. If, at any point after the Trading Price
Condition has been met, the Trading Price per $1,000 principal amount of Debentures is greater than
98% of the product of the Closing Sale Price per share of the Common Stock and the Conversion Rate
then in effect, the Company shall notify the Holders of Debentures.

     The right to convert Debentures will expire at 5:00 p.m., New York City time, on December 15,
2041 (or, if that is not a Trading Day, the first Trading Day thereafter).

     “Ex-Dividend Time” means, with respect to any distribution on shares of Common Stock, the
first date on which the shares of Common Stock trade “regular way” on the principal securities
exchange or market on which the shares of Common Stock are then traded without the right to receive
such issuance or distribution.

     (b) Whenever the Debentures shall become convertible pursuant to this Section 2.15, the
Company or, at the Company’s request, the Trustee in the name and at the expense of the Company,
shall notify the Holders of the event triggering such convertibility in the manner provided in
Section 17.02 and Section 17.03 of the Base Indenture, and the Company shall also publicly announce
such information and publish it on the Company’s Internet site or otherwise publicly disclose it.

     (c) A Holder of Debentures is not entitled to any rights of a holder of Common Stock or
Perpetual Preferred Stock until such Holder has converted his Debentures and received upon
conversion thereof shares of Common Stock or perpetual Preferred Stock.

     To the extent that the cash, Perpetual Preferred Stock or Common Stock received by a Holder of
Debentures upon the conversion of the Debentures is subject to U.S. withholding tax and such cash,
Perpetual Preferred Stock or Common Stock is not sufficient to comply with the Company’s U.S.
withholding obligations with respect to these amounts, the Company may, to the extent required by
law, recoup or set-off such liability against any payments subsequently made with respect to such
Perpetual Preferred Stock or Common Stock, including, but not limited to, any actual cash dividends
or distributions subsequently made with respect to such Perpetual Preferred Stock or Common Stock.

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     Section 2.16 Exercise of Conversion Right; No Adjustment for Interest or Dividends.

     (a) In order to exercise the conversion right with respect to any Debenture in certificated
form, the Company must receive at the office or agency of the Company maintained for that purpose
in The City of New York pursuant to Section 10.02 of the Base Indenture or, at the option of the
Holder of such Debenture, the Corporate Trust Office, such Debenture with the original or facsimile
of the form entitled “Conversion Notice” on the reverse thereof, duly completed and manually
signed, together with such Debenture duly endorsed for transfer, accompanied by the funds, if any,
required by this Section 2.16. Such notice shall also state the name or names (with address or
addresses) in which the certificate or certificates for any shares of Common Stock or Perpetual
Preferred Stock which shall be issuable on such conversion shall be issued, and shall be
accompanied by transfer or similar taxes, if required pursuant to Section 2.20.

     (b) In order to exercise the conversion right with respect to any interest in a Global
Debenture, the beneficial owner must arrange for its broker, dealer or other DTC participant to
complete, or cause to be completed, the appropriate instruction form for conversion pursuant to the
Depositary’s book-entry conversion program; deliver, or cause to be delivered, by book-entry
delivery an interest in such Global Debenture; furnish appropriate endorsements and transfer
documents if required by the Company or the Trustee or conversion agent; and pay the funds, if any,
required by this Section 2.16 and any transfer taxes if required pursuant to Section 2.20.

     (c) If the Company is required to issue shares of Common Stock or Perpetual Preferred Stock
upon settlement in accordance with Section 2.23, as promptly as practicable after satisfaction of
the requirements for conversion set forth herein and in no event later than three Business Days
after the final day of the related Conversion Reference Period, the Company shall issue and shall
deliver to such Holder at the office or agency maintained by the Company for such purpose pursuant
to Section 10.02 of the Base Indenture, (i) the number of full shares of Common Stock or Perpetual
Preferred Stock (if any) issuable upon the conversion of such Debenture or portion thereof as
determined by the Company in accordance with the provisions of Section 2.23; provided that in the
case of Debentures submitted for conversion in connection with a Non-Stock Change of Control
pursuant to Section 2.15(a)(iv) on or after the Record Date for receiving distributions in
connection with the Non-Stock Change of Control, or if earlier, the Effective Date, the Conversion
Value pursuant to Section 2.23 shall be determined based on the kind and amount of cash, securities
and other assets or property that a holder of a number of shares of Common Stock equal to the
Conversion Rate would have owned or been entitled to receive in such transaction; and provided,
further that if the determination date is the Record Date, the Holder shall receive the Conversion
Value on the Effective Date, and (ii) a check or cash in respect of any fractional interest in
respect of a share of Common Stock arising upon such conversion, calculated by the Company as
provided in Section 2.17. The date on which all requirements for conversion set forth herein are
satisfied being is herein referred to as the “Conversion Date.”

     (d) The Person in whose name any certificate or certificates for shares of Common Stock shall
be issuable upon such conversion shall be deemed to have become on the last Trading Day of the
Conversion Reference Period the holder of record of the shares represented thereby. All
anti-dilution adjustments to the Conversion Rate and determinations as to

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entitlement to interest thereon shall be carried out through that date in respect of the
Debentures converted and upon that date the Holder will no longer be a Holder of such Debentures.

     (e) If the last Trading Day of the Conversion Reference Period applicable to conversion of any
Debenture falls after a Regular Record Date but prior to the corresponding Interest Payment Date,
interest thereon shall be payable to the holder of record on such Regular Record Date. However,
any Debenture or portion thereof surrendered for conversion during the period from 5:00 p.m., New
York City time, on the Record Date for any Interest Payment Date to 5:00 p.m., New York City time,
on the Business Day preceding the applicable Interest Payment Date shall be accompanied by payment,
in immediately available funds or other funds acceptable to the Company, of an amount equal to the
interest payable by the Company on such Interest Payment Date on the principal amount being
converted; provided that no such payment need be made (1) if a Holder converts its Debentures in
connection with a redemption and the Company has specified a Redemption Date that would, if it were
the Conversion Date for any Debentures, result in the last Trading Day of the Conversion Reference
Period for those Debentures falling after a Record Date and on or prior to the corresponding
Interest Payment Date, (2) if a Holder converts its Debentures in connection with a Non-Stock
Change of Control and the final date upon which Debentures may be converted to qualify for receipt
of the related Additional Shares would, if it were the Conversion Date for any Debentures, result
in the last Trading Day of the Conversion Reference Period for those Debentures falling after a
Record Date and on or prior to the corresponding Interest Payment Date, (3) to the extent of any
overdue or deferred interest, including any Compounded Interest, if any overdue or deferred
interest exists at the time of conversion with respect to such Debenture or (4) if Holder converts
its Debentures following the last Record Date prior to December 15, 2041. Except as otherwise
provided herein, no payment or other adjustment shall be made for dividends on any shares issued
upon the conversion of such Debenture hereunder. Accrued interest, if any, to the date of
conversion not paid in cash is deemed to be paid in full with the Perpetual Preferred Stock, cash
or shares of Common Stock delivered upon conversion, rather than cancelled, extinguished or
forfeited. For purposes of this clause (e), all days that are, on any Conversion Date, scheduled
to be Trading Days shall constitute Trading Days without regard to whether, due to a market
disruption or otherwise, such days ultimately fail to meet the definition of “Trading Day” herein.

     Upon the conversion of an interest in a Global Debenture, the Trustee (or other conversion
agent appointed by the Company), or the Custodian at the direction of the Trustee (or other
conversion agent appointed by the Company), shall make a notation on such Global Debenture as to
the reduction in the principal amount represented thereby. The Company shall notify the Trustee in
writing of any conversions of Debentures effected through any conversion agent other than the
Trustee.

     In case any Debenture of a denomination greater than $1,000 shall be surrendered for partial
conversion, and subject to Section 3.03 of the Base Indenture, the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of the Debenture so surrendered, without
charge to the Holder, a new Debenture or Debentures in authorized denominations in an aggregate
principal amount equal to the unconverted portion of the surrendered Debenture.

     Section 2.17 Cash Payments in Lieu of Fractional Shares. No fractional shares of
Common Stock or scrip certificates representing fractional shares shall be issued upon

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conversion of Debentures. If more than one Debenture shall be surrendered for conversion at
one time by the same Holder, the number of full shares that shall be issuable upon conversion shall
be computed on the basis of the aggregate principal amount of the Debentures (or specified portions
thereof to the extent permitted hereby) so surrendered. If any fractional share of stock would be
issuable upon the conversion of any Debenture or Debentures, the Company shall make an adjustment
and payment therefor in cash to the Holder of Debentures at a price equal to the Closing Sale Price
on the last Trading Day immediately preceding the Conversion Date.

     Section 2.18 Conversion Rate.

     (a) The Conversion Rate (the “Conversion Rate”) for the Debentures is 16.1421 shares of Common
Stock per each $1,000 principal amount of the Debentures, subject to adjustment as provided in this
Section 2.18.

     (b) In case the Company shall hereafter pay a dividend or make a distribution to all or
substantially all holders of its outstanding Common Stock in shares of Common Stock, the Conversion
Rate shall be increased so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect at the opening of business on the date following the date fixed for the
determination of shareholders entitled to receive such dividend or other distribution by a
fraction,

     (i) the numerator of which shall be the sum of the number of shares of Common
Stock outstanding at the close of business on the date fixed for the determination
of shareholders entitled to receive such dividend or other distribution plus the
total number of shares of Common Stock constituting such dividend or other
distribution; and

     (ii) the denominator of which shall be the number of shares of Common Stock
outstanding at the close of business on the date fixed for such determination,

such increase to become effective immediately after the opening of business on the day following
the date fixed for such determination. For the purpose of this clause (b), the number of shares of
Common Stock at any time outstanding shall not include shares held in the treasury of the Company.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company. If any dividend or distribution of the type described in this clause
(b) is declared but not so paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate that would then be in effect if such dividend or distribution had not been
declared.

     (c) In case the Company shall issue to all or substantially all holders of its outstanding
shares of Common Stock rights or warrants entitling them (for a period expiring within 60 calendar
days after the date fixed for determination of shareholders entitled to receive such rights or
warrants) to subscribe for or purchase shares of Common Stock at a price per share less than the
average of the Closing Sale Prices of the Company’s Common Stock on the five consecutive Trading
Days immediately preceding the date of the first public announcement of such issuance of rights or
warrants, the Conversion Rate shall be increased so that the same shall

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equal the rate determined by multiplying the Conversion Rate in effect immediately prior to
the date fixed for determination of shareholders entitled to receive such rights or warrants by a
fraction,

     (i) the numerator of which shall be the number of shares of Common Stock
outstanding on the date fixed for determination of shareholders entitled to receive
such rights or warrants plus the total number of additional shares of Common Stock
offered for subscription or purchase, and

     (ii) the denominator of which shall be the sum of the number of shares of
Common Stock outstanding at the close of business on the date fixed for
determination of shareholders entitled to receive such rights or warrants plus the
number of shares that the aggregate offering price of the total number of shares so
offered would purchase at Current Market Price for the five consecutive Trading Days
immediately preceding the first public announcement of the issuance of such rights
or warrants.

     Such adjustment shall be successively made whenever any such rights or warrants are issued,
and shall become effective immediately after the opening of business on the day following the date
fixed for determination of shareholders entitled to receive such rights or warrants; provided that
no adjustment to the Conversion Rate shall be made if the Holder shall otherwise participate in
such distribution without conversion as a result of holding the Debentures. To the extent that
shares of Common Stock are not delivered after the expiration of such rights or warrants, the
Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of
only the number of shares of Common Stock actually delivered. In determining whether any rights or
warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than the
Current Market Price, and in determining the aggregate offering price of such shares of Common
Stock, there shall be taken into account any consideration received by the Company for such rights
or warrants and any amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Company’s Board of Directors.

     If the rights provided for in the Company’s stockholder rights agreement dated July 24, 2002
or in any future rights plan adopted by the Company have separated from the shares of Common Stock
in accordance with the provisions of the applicable stockholder rights agreement so that the
holders of the Debentures would not be entitled to receive any rights in respect of Common Stock
issuable upon conversion of the Debentures, if any, the Conversion Rate will be adjusted as
provided in Section 2.18(e).

     (d) In case outstanding shares of Common Stock shall be subdivided into a greater number of
shares of Common Stock or combined into a smaller number of shares of Common Stock, the Conversion
Rate in effect at the opening of business on the day following the day upon which such subdivision
or combination becomes effective shall be adjusted so that the same shall equal the rate determined
by multiplying the Conversion Rate in effect immediately prior to such subdivision or combination
by a fraction,

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     (i) the numerator of which shall be the number of shares of Common Stock
outstanding after, and solely as a result of, such subdivision or combination, and

     (ii) the denominator of which shall be the number of shares of Common Stock
outstanding prior to such subdivision or combination,

such increase or reduction, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or combination becomes
effective.

     (e) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of Common Stock shares of any class of capital stock of the Company, assets (including
shares of any Subsidiary or business unit of the Company), debt securities or rights to purchase
the Company’s securities (excluding any rights described in clause (c) above and any cash dividends
or other cash distributions), then, in each such case the Conversion Rate shall be increased by
multiplying the Conversion Rate in effect on the Record Date with respect to such distribution by a
fraction,

     (i) the numerator of which shall be the Current Market Price of the Company’s
Common Stock on such Record Date; and

     (ii) the denominator of which shall be the Current Market Price of the
Company’s Common Stock on such Record Date less the Fair Market Value (as determined
by the Company’s Board of Directors, whose determination shall be conclusive, and
described in a resolution of the Board of Directors) on the Record Date of the
portion of the distribution applicable to one share of Common Stock,

such adjustment to become effective immediately prior to the opening of business on the day
following such Record Date; provided that if the then Fair Market Value (as so determined) of the
portion of the distribution applicable to one share of Common Stock is equal to or greater than the
Current Market Price of one share of Common Stock on the Record Date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder shall have the right to receive
upon conversion the amount of assets such Holder would have received had such Holder converted each
Debenture prior to the Record Date. If such dividend or distribution is not so paid or made, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if
such dividend or distribution had not been declared. If the Board of Directors determines the Fair
Market Value of any distribution for purposes of this Section 2.18(e) by reference to the actual or
when-issued trading market for any securities, it must, in doing so, consider the prices in such
market over the same period used in computing the Current Market Price of one share of Common Stock
on the applicable Record Date.

     Notwithstanding the foregoing, if the dividend or distribution requiring an adjustment
pursuant to this clause (e) consists of capital stock of any class or series, or similar equity
interests, of a Subsidiary or other business unit of the Company, then the Conversion Rate shall be
increased by multiplying the Conversion Rate in effect on the Record Date with respect to such
distribution by a fraction,

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     (i) the numerator of which shall be (x) the average of the Closing Sale Prices of the
Company’s Common Stock for the 10 Trading Days commencing on and including the fifth Trading
Day after the Ex-Dividend Date for such distribution on the NYSE or the principal U.S. stock
exchange or interdealer quotation system on which the Company’s Common Stock then listed or
quoted, plus (y) the market value distributed per share of the Company’s Common Stock based
upon the average of the Closing Sale Prices of the security distributed for the 10 Trading
Days commencing on and including the fifth Trading Day after the Ex-Dividend Date for such
distribution on the NYSE or the principal U.S. stock exchange or interdealer quotation
system on which such security is then listed or quoted and

     (ii) the denominator of which shall be the average of the Closing Sale Prices of the
Company’s Common Stock for the 10 Trading Days commencing on and including the fifth Trading
Day after the Ex-Dividend Date for such distribution on the NYSE or the principal U.S. stock
exchange or interdealer quotation system on which Company’s Common Stock is then listed or
quoted.

     Rights or warrants distributed by the Company to all holders of Common Stock entitling the
holders thereof to subscribe for or purchase shares of the Company’s capital stock (either
initially or under certain circumstances), which rights or warrants, until the occurrence of a
specified event or events (a “Trigger Event”): (i) are deemed to be transferred with such shares of
Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of
Common Stock, shall be deemed not to have been distributed for purposes of this Section 2.18(e)
(and no adjustment to the Conversion Rate under this Section 2.18(e) shall be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to
have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate
shall be made under this Section 2.18(e). If any such right or warrant, including any such
existing rights or warrants distributed prior to the date of this Indenture, are subject to events,
upon the occurrence of which such rights or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the occurrence of any and
each such event shall be deemed to be the date of distribution and Record Date with respect to new
rights or warrants with such rights (and a termination or expiration of the existing rights or
warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 2.18(e) was made, (1) in the case of any such rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

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     No adjustment of the Conversion Rate shall be made pursuant to this Section 2.18(e) in respect
of rights or warrants distributed or deemed distributed on any Trigger Event to the extent that
such rights or warrants are actually distributed, or reserved by the Company for distribution to
Holders of the Debentures upon conversion by such Holders of Debentures to Common Stock, unless
such rights or warrants have become separated from the Common Stock in accordance with the
provisions of the relevant agreement such that the Holders would not thereafter be entitled to
receive such rights or warrants in respect of Common Stock issuable upon conversion of the
Debentures. In such circumstances an adjustment to the Conversion Rate shall be made with respect
to Debentures then outstanding pursuant to Section 2.18(e) (to the extent required thereby) upon
the separation of the rights or warrants from the Common Stock.

     For purposes of this Section 2.18(e) and Sections 2.18(b) and (c), any dividend or
distribution to which this Section 2.18(e) is applicable that also includes shares of Common Stock,
or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall be
deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets or
shares of capital stock other than such shares of Common Stock or rights or warrants (and any
Conversion Rate adjustment required by this Section 2.18(e) with respect to such dividend or
distribution shall then be made) immediately followed by (2) a dividend or distribution of such
shares of Common Stock or such rights or warrants (and any further Conversion Rate adjustment
required by Sections 2.18 (b) and (c) with respect to such dividend or distribution shall then be
made), except (A) the Record Date of such dividend or distribution shall be substituted as “the
date fixed for the determination of shareholders entitled to receive such dividend or other
distribution”, “the date fixed for the determination of shareholders entitled to receive such
rights or warrants” and “the date fixed for such determination” within the meaning of Sections
2.18(b) and (c) and (B) any shares of Common Stock included in such dividend or distribution shall
not be deemed “outstanding at the close of business on the date fixed for such determination”
within the meaning of Section 2.18(b).

     (f) In case the Company shall distribute to all or substantially all holders of its shares of
Common Stock, cash (excluding (x) any distributions described in Section 2.18(g) or (y) any
dividend or distribution in connection with the Company’s liquidation, dissolution or winding up),
then the Conversion Rate shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect on the Trading Day immediately prior to the Ex-Dividend
Date for such distribution on the NYSE or the principal U.S. stock exchange or interdealer
quotation system on which the Common Stock is then listed or quoted by a fraction,

     (i) the numerator of which shall be equal to the Current Market Price per share
of Common Stock on such date, less the Dividend Threshold Amount; and

     (ii) the denominator of which shall be equal to the Current Market Price per
share of Common Stock on such date, less the amount of the distribution per share of
Common Stock,

such adjustment to become effective immediately after the opening of business on the Ex-Dividend
Date for such distribution, provided that if the portion of the cash so distributed applicable to
one share of Common Stock is equal to or greater than the Current Market Price of

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one share of Common Stock on the Record Date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive upon conversion the
amount of cash such Holder would have received had such Holder converted each Debenture prior to
the Record Date. In the event that such distribution is not so made, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.

     (g) In case the Company or any of its Subsidiaries shall, at any time or from time to time,
while any of the Debentures are outstanding, distribute cash or other consideration in respect of a
tender offer or exchange offer made by the Company or any Subsidiary of the Company for all or any
portion of the Common Stock of the Company, where the sum (such sum, the “aggregate amount” for
purposes of this Section 2.18(g)) of the amount of such cash distributed and the Fair Market Value
(as determined in good faith by the Board of Directors, whose determination shall be conclusive and
set forth in a Board Resolution), as of the expiration date of the tender offer or exchange offer
(the last date on which shares of Common Stock can be tendered or exchanged), of such other
consideration distributed, each per share of Common Stock purchased or exchanged, pursuant to such
tender offer or exchange offer as of the expiration date of the tender offer or exchange offer
(such purchased or exchanged shares of Common Stock, the “purchased shares” for purposes of this
Section 2.18(g)) exceeds the Closing Sale Price per share of the Company’s Common Stock on the
Trading Day immediately following the expiration date of such tender offer or exchange offer, then,
and in each case, immediately after the close of business on such date, the Conversion Rate shall
be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the close of business on the Trading Day immediately following the
expiration date of such tender offer or exchange offer by a fraction,

     (i) the numerator of which is equal to the sum of (A) the aggregate amount and
(B) the product of (I) an amount equal to (1) the number of shares of Common Stock
outstanding as of the expiration date of the tender offer or exchange offer, less
(2) the purchased shares and (II) the Closing Sale Price per share of the Company’s
Common Stock on the first Trading Day immediately following the expiration date of
the tender offer or exchange offer; and

     (ii) the denominator of which shall be equal to the product of (A) the number
of shares of Common Stock outstanding as of the expiration date of the tender offer
or exchange offer (including all purchased shares) and (B) the Closing Sale Price
per share of the Company’s Common Stock on the first Trading Day immediately
following the expiration date of the tender offer or exchange offer.

     An adjustment, if any, to the Conversion Rate pursuant to this Section 2.18(g) shall become
effective immediately prior to the opening of business on the second Trading Day immediately
following the expiration date of the tender offer or exchange offer. In the event that the Company
or a Subsidiary is obligated to purchase shares of Common Stock pursuant to any such tender offer
or exchange offer, but the Company or such Subsidiary is permanently prevented by applicable law
from effecting any such purchases, or all such purchases are rescinded, then the Conversion Rate
shall again be adjusted to be the Conversion Rate which

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would then be in effect if such tender offer or exchange offer had not been made. Except as
set forth in the preceding sentence, if the application of this Section 2.18(g) to any tender offer
or exchange offer would result in a decrease in the Conversion Rate, no adjustment shall be made
for such tender offer or exchange offer under this Section 2.18(g).

     (h) The Company may make such increases in the Conversion Rate, in addition to those required
by Section 2.18(b)-(g) as the Board of Directors considers to be advisable to avoid or diminish any
income tax to holders of Common Stock or rights to purchase Common Stock resulting from any
dividend or distribution of stock (or rights to acquire stock) or from any event treated as such
for income tax purposes.

     To the extent permitted by applicable law, the Company from time to time may increase the
Conversion Rate by any amount for any period of time if the period is at least 20 Business Days,
the increase is irrevocable during the period and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company, which determination
shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence,
the Company shall mail to Holders of record of the Debentures, with a copy to the Trustee, a notice
of the increase, and such notice shall state the increased Conversion Rate and the period during
which it shall be in effect.

     (i) No adjustment in the Conversion Rate shall be required unless such adjustment would
require an increase or decrease of at least one percent (1%) in such rate; provided that any
adjustments that by reason of this Section 2.18(i) are not required to be made shall be carried
forward and the Company shall make such carry-forward adjustments, regardless of whether the
aggregate adjustment is less than 1%, within one year of the first such adjustment carry-forward,
upon any redemption, upon a Change of Control or on the Final Maturity Date. All calculations
under this Section 2.18 shall be made by the Company and shall be made to the nearest cent or to
the nearest one-ten thousandth (1/10,000) of a share, as the case may be. No adjustment need be
made for rights to purchase Common Stock pursuant to a Company plan for reinvestment of dividends
or interest or for any issuance of Common Stock or convertible or exchangeable securities or rights
to purchase Common Stock or convertible or exchangeable securities.

     (j) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any conversion agent other than the Trustee an Officers’ Certificate
setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have
received such Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any
adjustment of the Conversion Rate and may assume that the last Conversion Rate of which it has
knowledge is still in effect. Promptly after delivery of such certificate, the Company shall
prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which such adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Rate to the Holder of each Debenture at its last address appearing on
the Security Register, within 20 calendar days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of any such adjustment.

39

 

     (k) In any case in which this Section 2.18 provides that an adjustment shall become effective
immediately after (1) a Record Date for an event, (2) the date fixed for the determination of
shareholders entitled to receive a dividend or distribution pursuant to Section 2.18(b), (3) a date
fixed for the determination of shareholders entitled to receive rights or warrants pursuant to
Section 2.18(c), or (4) the expiration time for any tender or exchange offer pursuant to Section
2.18(g), (each, an “adjustment determination date” for purposes of this Section 2.18(k)), the
Company may elect to defer until the occurrence of the applicable “adjustment event” (as
hereinafter defined) (x) issuing to the Holder of any Debenture converted after such adjustment
determination date and before the occurrence of such adjustment event, the additional shares of
Common Stock or other securities issuable upon such conversion by reason of the adjustment required
by such adjustment event over and above the cash and, if applicable, Common Stock issuable upon
such conversion before giving effect to such adjustment and (y) paying to such Holder any amount in
cash in lieu of any fractional shares. For purposes of this Section 2.18(k), the term “adjustment
event” shall mean:

     (i) in any case referred to in clause (1) hereof, the occurrence of such event,

     (ii) in any case referred to in clause (2) hereof, the date any such dividend
or distribution is paid or made,

     (iii) in any case referred to in clause (3) hereof, the date of expiration of
such rights or warrants, and

     (iv) in any case referred to in clause (4) hereof, the date a sale or exchange
of Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable.

     (l) For purposes of this Section 2.18, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company shall not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.

     (m) No adjustment to the Conversion Rate shall be made pursuant to this Section 2.18 if the
Holders of the Debentures may participate in the transaction that would otherwise give rise to
adjustment pursuant to this Section 2.18.

     (n) In respect of the settlement of any conversion in accordance with Section 2.23, all
adjustments to the Conversion Rate pursuant to this Section 2.18 shall be made for each day in the
applicable Conversion Reference Period.

     Section 2.19 Effect of Reclassification, Consolidation, Merger or Sale.

     (a) In the event of:

     (i) any reclassification of the outstanding shares of Common Stock,

40

 

     (ii) any consolidation, merger, binding share exchange or combination of the
Company with another Person, or

     (iii) any sale or conveyance of all or substantially all of the properties and
assets of the Company to any other Person

as a result of which holders of Common Stock shall be entitled to receive capital stock, other
securities or other property or assets (including cash) with respect to or in exchange for such
Common Stock, then the Company or the successor or purchasing Person, as the case may be, shall
execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act
as in force at the date of execution of such supplemental indenture) providing for the conversion
and settlement of Debentures as set forth in this Indenture. Such supplemental indenture shall
provide for adjustments, which shall be as nearly equivalent as may be practicable to the
adjustments provided for in Section 2.18.

     (b) Notwithstanding the provisions of Section 2.23, the Conversion Value in respect of any
Debentures tendered for conversion on or after the 20th Trading Day immediately preceding the
effective date of any such transaction shall be calculated in accordance with the definition of
Conversion Value herein, except that for each of the Trading Days in the Conversion Reference
Period on or after the effective date for such transaction, the relevant daily value will equal the
daily value of the Exchange Property pertaining to such Debentures. For these purposes, “Exchange
Property” means the kind and amount of shares of capital stock, other securities or other property
or assets (including cash) receivable upon such reclassification, change, consolidation, merger,
binding share exchange, combination, sale or conveyance by a holder of Common Stock holding,
immediately prior to the transaction, a number of shares of Common Stock equal to the Conversion
Rate (plus Additional Shares, to the extent that the holder is entitled to Additional Shares in
accordance with Section 2.24 upon conversion) then in effect. Notwithstanding the foregoing, to
the extent holders of our Common Stock are permitted to elect the form of consideration to be
received in such transaction, the Exchange Property will be deemed for all purposes under this
Section 2.19 to be the weighted average of the types and amounts of consideration received by
holders of Common Stock that affirmatively make an election or, if a majority of holders that
affirmatively make an election choose a single option, the types and amounts received by those
majority electing holders.

     (c) For the purpose of determining the value of any Exchange Property (“Exchange Property
Value”):

     (i) Any shares of common stock of the successor or purchasing corporation or
any other corporation that are included in the Exchange Property shall be valued as
set forth in Section 2.23 as if such shares were “Common Stock” using the procedures
set forth in the definition of “Closing Sale Price” in Section 1.1; and

     (ii) Any other property (other than cash) included in the Exchange Property
shall be valued in good faith by the Board of Directors or by a NYSE member firm
selected by the Board of Directors.

41

 

     (d) The Company shall in all cases deliver conversion consideration to Holders of Debentures
converted as provided in Section 2.23, except that, in the case of any transaction described by
Section 2.19(a) the effective date of which is on or before the last day of the Conversion
Reference Period, instead of delivering any Net Shares otherwise deliverable under Section 2.23,
the Company shall deliver an amount of Exchange Property that a holder of Common Stock holding,
immediately prior to the transaction, a number of shares of Common Stock equal to the Net Shares
would receive as a result of the transaction. If the Exchange Property includes more than one kind
of property, the amount of Exchange Property of each kind to be delivered shall be in the
proportion that the Exchange Property Value of such kind of Exchange Property bears to the Exchange
Property Value of all the Exchange Property. If the foregoing calculations would require the
Company to deliver a fractional share or unit of Exchange Property to a holder of Debentures being
converted, the Company shall deliver cash in lieu of such fractional share or unit based on its
Exchange Property Value.

     (e) The Company shall cause notice of the execution of the supplemental indenture referred to
in Section 2.19(a) to be mailed to each holder of Debentures, at its address appearing on the
Security Register provided for in Section 3.05 of the Base Indenture, within 20 calendar days after
execution thereof. Failure to deliver such notice shall not affect the legality or validity of such
supplemental indenture.

     (f) The above provisions of this Section shall similarly apply to successive
reclassifications, consolidations, mergers, combinations, sales and conveyances.

     (g) If this Section 2.19 applies to any event or occurrence, Section 2.18 shall not apply.

     Section 2.20 Taxes on Shares Issued. The issue of stock certificates, if any, on
conversion of Debentures shall be made without charge to the converting Holder for any documentary,
stamp or similar issue or transfer tax in respect of the issue thereof. The Company shall not,
however, be required to pay any such tax which may be payable in respect of any transfer involved
in the issue and delivery of stock in any name other than that of the holder of any Debenture
converted, and the Company shall not be required to issue or deliver any such stock certificate
unless and until the Person or Persons requesting the issue thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the Company that such tax
has been paid.

     Section 2.21 Reservation of Shares, Shares to be Fully Paid; Compliance with Governmental
Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights,
out of its authorized but unissued shares or shares held in treasury, sufficient shares of Common
Stock to provide for the conversion of the Debentures as required by this Indenture from time to
time as such Debentures are presented for conversion.

     Before taking any action which would cause an adjustment increasing the Conversion Rate to an
amount that would cause the Conversion Price to be reduced below the then par value, if any, of the
shares of Common Stock issuable, if any, upon conversion of the Debentures, the Company will take
all corporate action which may, in the opinion of its counsel, be necessary in

42

 

order that the Company may validly and legally issue shares of such Common Stock at such
adjusted Conversion Rate.

     The Company covenants that all shares of Common Stock which may be issued upon conversion of
Debentures will upon issue be fully paid and non-assessable by the Company and free from all taxes,
liens and charges with respect to the issue thereof.

     The Company covenants that, if any shares of Common Stock to be provided for the purpose of
conversion of Debentures hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible, to the extent then permitted by
the rules and interpretations of the Commission (or any successor thereto), endeavor to secure such
registration or approval, as the case may be.

     The Company further covenants that, if at any time the Common Stock shall be listed on NYSE or
any other national securities exchange or automated quotation system, the Company will, if
permitted by the rules of such exchange or automated quotation system, list and keep listed, so
long as the Common Stock shall be so listed on such exchange or automated quotation system, all
Common Stock issuable upon conversion of the Debentures; provided that if the rules of such
exchange or automated quotation system permit the Company to defer the listing of such Common Stock
until the first conversion of the Debentures in accordance with the provisions of this Indenture,
the Company covenants to list such Common Stock issuable upon conversion of the Debentures in
accordance with the requirements of such exchange or automated quotation system at such time.

     Section 2.22 Conversion-Related Notices by the Company.

     (a) In case:

     (i) the Company shall declare a dividend (or any other distribution) on its
Common Stock that would require an adjustment in the Conversion Rate pursuant to
Section 2.18;

     (ii) the Company shall authorize the granting to the holders of all or
substantially all of its Common Stock of rights or warrants to subscribe for or
purchase any share of any class or any other rights or warrants;

     (iii) of any reclassification or reorganization of the Common Stock of the
Company (other than a subdivision or combination of its outstanding Common Stock, or
a change in par value, or from par value to no par value, or from no par value to
par value) or of any consolidation or merger to which the Company is a party and for
which approval of any stockholders of the Company is required, or of the sale or
transfer of all or substantially all of the assets of the Company; or

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

43

 

the Company shall cause to be filed with the Trustee and to be mailed to each Holder of Debentures
at its address appearing on the Security Register, as promptly as possible but in any event at
least 10 calendar days prior to the applicable date hereinafter specified, a notice stating (x) the
date on which a record is to be taken for the purpose of such dividend, distribution or rights or
warrants, or, if a record is not to be taken, the date as of which the holders of Common Stock of
record to be entitled to such dividend, distribution or rights are to be determined, or (y) the
date on which such reclassification, reorganization, dissolution, liquidation or winding up is
expected to become effective or occur, and the date as of which it is expected that holders of
Common Stock of record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, reorganization, dissolution, liquidation or
winding up. Failure to give such notice, or any defect therein, shall not affect the legality or
validity of such dividend, distribution, rights or warrants, reclassification, reorganization,
dissolution, liquidation or winding up.

     (b) The Company shall notify Holders and the Trustee as promptly as practicable following the
date the Company publicly announces any Change of Control transaction but, to the extent
practicable, in no event less than 25 Trading Days prior to the anticipated effective date of such
transaction.

     (c) The Company shall notify Holders at least 25 Trading Days prior to the Ex-Dividend Date
for any distribution described by Section 2.15(a)(v).

     Section 2.23 Settlement Upon Conversion.

     (a) If conversion occurs pursuant to Section 2.15(a)(ii) or in connection with a Non-Stock
Change of Control, with respect to each $1,000 principal amount of Debentures surrendered for
conversion, the Company shall deliver:

     (i) $1,000 in cash;

     (ii) a cash payment in the amount of any Deferred Interest, including
Compounded Interest, on such Debentures as of the last day of the Conversion
Reference Period;

     (iii) if the Conversion Value of the Debentures to be converted is greater than
$1,000, the number of whole shares of the Company’s Common Stock (the “Net Shares”)
represented by the sum of the Daily Share Amounts for each of the Trading Days in
the Conversion Reference Period (the “Net Share Amount”); and

     (iv) if Net Shares are deliverable, cash, in lieu of any fractional shares
represented by the Net Share Amount.

     (b) If conversion occurs other than pursuant to pursuant to Section 2.15(a)(ii) or in
connection with a Non-Stock Change of Control, with respect to each $1,000 principal amount of
Debentures surrendered for conversion, the Company shall deliver the following conversion
consideration:

44

 

     (i) shares of Perpetual Preferred Stock with a liquidation preference of
$1,000, having initial accumulated dividends equal to the amount of any Deferred
Interest, including Compounded Interest, on such Debentures as of the last day of
the Conversion Reference Period;

     (ii) if the Conversion Value of such Debentures is greater than $1,000, the Net
Shares; and

     (iii) if Net Shares are deliverable, cash, in lieu of any fractional shares
represented by the Net Share Amount.

     (c) If, upon a Change of Control other than a Non-Stock Change of Control, a Holder of
Debentures notifies the Company and the Trustee that it has elected to convert its Debentures and
simultaneously have such Perpetual Preferred Stock remarketed pursuant to Section 10 of the
Perpetual Preferred Stock Certificate of Designations, the Company shall not deliver Perpetual
Preferred Stock to the Holder in accordance with Section 2.23(b), but instead shall deliver such
Perpetual Preferred Stock to the remarketing agent appointed in accordance with the Perpetual
Preferred Stock Certificate of Designations. Such delivery shall be made by the Company in time to
enable the remarketing agent to settle any successful remarketing of such Perpetual Preferred
Stock, even if such delivery must occur prior to the otherwise applicable settlement date for the
conversion.

     Section 2.24 Change-of-Control Make-Whole.

     (a) If a Non-Stock Change of Control occurs, the Effective Date of which is on or prior to
December 20, 2036, and a Holder elects to convert Debentures in connection with such Non-Stock
Change of Control, the Company shall increase the applicable Conversion Rate for the Debentures
surrendered for conversion by a number of additional shares of the Company’s Common Stock (the
“Additional Shares”) determined as set forth in clause (e) below. A conversion of Debentures shall
be deemed to be “in connection with” a Non-Stock Change of Control if the notice of conversion of
the Debentures is received by the conversion agent from and including the Effective Date of the
Non-Stock Change of Control transaction up to and including the date that is 35 days after such
date.

     (b) The number of Additional Shares will be determined by reference to the table in clause (e)
below and is based on the date on which the Non-Stock Change of Control becomes effective (the
“Effective Date”) and the price paid per share of the Company’s Common Stock in the Non-Stock
Change of Control transaction (the “Stock Price”). If holders of the Common Stock receive only
cash in the Non-Stock Change of Control Transaction, the Stock Price will equal the cash amount
paid per share. In all other cases, the Stock Price will equal the average of the Closing Sale
Prices of the Common Stock over the five-Trading Day period ending on the Trading Day immediately
preceding the Effective Date.

     (c) The Stock Prices set forth in the first row of the table below shall be adjusted as of any
date on which the Conversion Rate of the Debentures is adjusted pursuant to Section 2.18 (but not
for any increase to the Conversion Rate for a Non-Stock Change of Control pursuant to this Section
2.24). The adjusted Stock Prices shall equal the prices per share applicable

45

 

immediately prior to such adjustment, multiplied by a fraction, (i) the numerator of which is
the Conversion Rate immediately prior to the adjustment giving rise to the Stock Price adjustment
and (ii) the denominator of which is the Conversion Rate as so adjusted.

     (d) The number of Additional Shares will be adjusted in the same manner and for the same
events as the Conversion Rate of the Debentures is adjusted pursuant to Section 2.18.

     (e) The following table sets forth the Stock Price and number of Additional Shares issuable
per $1,000 principal amount of Debentures:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective Date	 	$44.25	 	$50.00	 	$61.95	 	$70.00	 	$80.00	 	$90.00	 	$100.00	 	$150.00	 	$200.00	 	$250.00	 	$300.00
	December 20, 2006
	 	 	6.4567	 	 	 	5.3046	 	 	 	3.7514	 	 	 	3.0841	 	 	 	2.4995	 	 	 	2.0869	 	 	 	1.7842	 	 	 	1.0135	 	 	 	0.6903	 	 	 	0.5082	 	 	 	0.3898	 
	December 15, 2007
	 	 	6.4567	 	 	 	5.0169	 	 	 	3.4396	 	 	 	2.7747	 	 	 	2.2044	 	 	 	1.8121	 	 	 	1.5315	 	 	 	0.8524	 	 	 	0.5813	 	 	 	0.4298	 	 	 	0.3311	 
	December 15, 2008
	 	 	6.4567	 	 	 	4.6806	 	 	 	3.0657	 	 	 	2.4003	 	 	 	1.8461	 	 	 	1.4792	 	 	 	1.2272	 	 	 	0.6639	 	 	 	0.4544	 	 	 	0.3377	 	 	 	0.2613	 
	December 15, 2009
	 	 	6.4567	 	 	 	4.3532	 	 	 	2.6590	 	 	 	1.9771	 	 	 	1.4323	 	 	 	1.0938	 	 	 	0.8770	 	 	 	0.4565	 	 	 	0.3154	 	 	 	0.2358	 	 	 	0.1832	 
	December 15, 2010
	 	 	6.4567	 	 	 	4.1037	 	 	 	2.2414	 	 	 	1.4958	 	 	 	0.9368	 	 	 	0.6315	 	 	 	0.4667	 	 	 	0.2344	 	 	 	0.1649	 	 	 	0.1239	 	 	 	0.0966	 
	December 15, 2011
	 	 	6.4567	 	 	 	4.0340	 	 	 	1.9783	 	 	 	0.9928	 	 	 	0.0443	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2012
	 	 	6.4567	 	 	 	4.0195	 	 	 	1.9700	 	 	 	0.9883	 	 	 	0.0441	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2013
	 	 	6.4567	 	 	 	4.0074	 	 	 	1.9627	 	 	 	0.9843	 	 	 	0.0439	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2014
	 	 	6.4567	 	 	 	3.9967	 	 	 	1.9557	 	 	 	0.9803	 	 	 	0.0437	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2015
	 	 	6.4567	 	 	 	3.9896	 	 	 	1.9504	 	 	 	0.9772	 	 	 	0.0436	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2016
	 	 	6.4567	 	 	 	3.9853	 	 	 	1.9448	 	 	 	0.9730	 	 	 	0.0433	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2021
	 	 	6.4567	 	 	 	4.0519	 	 	 	1.9726	 	 	 	0.9859	 	 	 	0.0439	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2026
	 	 	6.4567	 	 	 	4.1903	 	 	 	2.0336	 	 	 	1.0147	 	 	 	0.0451	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2031
	 	 	6.4567	 	 	 	4.3221	 	 	 	2.0831	 	 	 	1.0360	 	 	 	0.0459	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 20, 2036
	 	 	6.4567	 	 	 	4.4722	 	 	 	2.1236	 	 	 	1.0508	 	 	 	0.0464	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

     (f) If the exact Stock Price and Effective Date are not set forth on the table above,
then:

     (i) If the Stock Price is between two Stock Prices in the table or the
Effective Date is between two Effective Dates in the table, the number of Additional
Shares will be determined by a straight-line interpolation between the number of
Additional Shares set forth for the higher and lower Stock Prices and the two dates,
as applicable, based on a 365-day year.

     (ii) If the Stock Price is more than $300, subject to adjustment, the number of
Additional Shares will be zero.

     (iii) If the Stock Price is less than $44.25, subject to adjustment, the number
of Additional Shares will be zero.

     (g) Notwithstanding the foregoing, in no event will the total number of shares of Common Stock
issuable upon conversion of a Debenture (after giving effect to any Additional

46

 

Shares issuable pursuant to this Section 2.24) exceed 22.5988 per $1,000 principal amount of
Debentures, subject to adjustment in the same manner and for the same events as the Conversion Rate
may be adjusted pursuant to Section 2.18.

     Section 2.25 Modification of Indenture. (a) Section 9.01 of the Base Indenture is
hereby amended in its entirety with respect to the Debentures as follows:

“Without the consent of any Holder, the Company, when authorized by a Board
Resolution, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto for one or more of the following
purposes: (a) to evidence the succession of another corporation to the Company, or
successive successions and the assumption by the successor corporation of the
covenants, agreements and obligations of the Company hereunder and the Debentures;
or (b) to convey, transfer, assign, mortgage or pledge to the Trustee as security
for the Debentures any property or assets which the Company may desire; or (c) to
add to the covenants of the Company such further covenants, restrictions or
conditions for the protection of the Holders of all or any series of Debentures (and
if such covenants are to be for the benefit of less than all series of Debentures
stating that such covenants are expressly being included solely for the benefit of
such series) as the Board of Directors of the Company and the Trustee shall consider
to be for the protection of the Holders of such Debentures, and to make the
occurrence, or the occurrence and continuance, of a default in any of such
additional covenants, restrictions or conditions a default or an Event of Default
permitting the enforcement of all or any of the several remedies provided in this
Indenture as herein set forth; provided, however, that in respect of any such
additional covenant, restriction or condition such supplemental indenture may
provide for a particular period of grace after default (which period may be shorter
or longer than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such default or may limit the remedies available to the
Trustee upon such default; or (d) to provide for the issuance under this Indenture
of Debentures in coupon form (including Debentures registrable as to principal only)
and to provide for exchangeability of such Debentures with the Debentures issued
hereunder in fully registered form and to make all appropriate changes for such
purpose; or (e) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture that may be defective or
inconsistent with any other provision contained herein or in any supplemental
indenture; or (f) to make such other provisions in regard to matters or questions
arising under this Indenture that shall not adversely affect the interests of any
Holder in any material respect; or (g) to evidence and provide for the acceptance of
appointment hereunder by a successor trustee with respect to the Debentures of one
or more series and to add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one trustee, pursuant to the requirements of Section 6.11; or
(h) to surrender any right or power herein conferred upon the Company; or (i) to
comply with the requirements of the Commission in order to maintain the
qualification of this Indenture under the Trust Indenture Act; or (j) to add or
modify any other provisions with respect to matters or questions arising

47

 

under this Indenture which the Company and the Trustee may deem necessary or
desirable; provided, however, that such action pursuant to this clause (j) does not,
in the good faith opinion of the Board of Directors of the Company (as evidenced by
a Board Resolution) and the Trustee, adversely affect the interests of any Holder of
Debentures in any material respect; or (k) to modify the covenants or Events of
Default solely in respect of, or add new covenants or Events of Default that apply
solely to, Debentures not Outstanding on the date of such supplemental indenture; or
(l) to provide for Guarantees of the Debentures of any series and/or to specify the
ranking of the obligations of each Guarantor under its respective Guarantee.

The Trustee is hereby authorized to join with the Company and the Guarantors, if
any, in the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations which may be therein contained and to accept
the conveyance, transfer, assignment, mortgage or pledge of any property thereunder,
but the Trustee shall not be obligated to, but may in its discretion, enter into any
such supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

Any supplemental indenture authorized by the provisions of this Section 9.01 may be
executed by the Company, the Guarantors, if any, and the Trustee, without the
consent of the Holders of any of the Debentures at the time Outstanding,
notwithstanding any of the provisions of Section 9.02.”

     Section 9.02 of the Base Indenture is hereby amended in its entirety with respect to the
Debentures as follows: “With the consent (evidenced as provided in Section 1.02) of the Holders of
not less than a majority in aggregate principal amount of the Outstanding Debentures, the Company,
when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter
into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner or eliminating any of the provisions of this
Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders
of the Debentures; provided, however, that, no such supplemental indenture shall, without the
consent of the Holder of each Debenture affected, (i) change the Scheduled Maturity Date or the
Final Maturity Date, (ii) change the date of any interest payment due upon the Debentures; (iii)
reduce the principal amount of, or the interest on, the Debentures; (iv) adversely affect the
rights of the Holders to convert the Debentures; (v) reduce the amount of or change the form of
consideration due to Holders of the Debentures upon their conversion thereof; (vi) change the
currency of payment of the Debentures to a currency other than U.S. dollars; (vii) impair the right
to institute suit for the enforcement of any payment on the Debentures or adversely affect the
right of payment, if any, at the option of the Holder; or (viii) reduce the percentage of holders
necessary to modify or amend the Indenture or to waive any past default.

     Upon the request of the Company, accompanied by a Board Resolution authorizing the execution
of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent
of Holders as aforesaid, the Trustee shall join with the Company in the execution

48

 

of such supplemental indenture unless such supplemental indenture affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such supplemental indenture.

     It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such
consent shall approve the substance thereof.”

     Section 2.26 Modification or Amendment of Certificate of Designations. So long as no
shares of Perpetual Preferred Stock are outstanding, unless a greater percentage shall then be
required by applicable law, the Company shall not, without the affirmative vote or written consent
of the Holders of at least 66-2/3% of the aggregate principal amount of the Outstanding Debentures:

     (i) authorize or issue any series or class of Senior Shares (as defined in the
Perpetual Preferred Stock Certificate of Designations) or any security convertible into or
exchangeable for Senior Shares;

     (ii) amend the Certificate of Incorporation of the Company in a manner that would alter
or change the powers, preferences or special rights of the shares of Perpetual Preferred
Stock so as to affect them adversely; or

     (iii) consummate a merger or consolidation of the Company with or into another
corporation or other entity, the sole purpose of which is to effect a change in the terms of
the Perpetual Preferred Stock.

Notwithstanding the foregoing provisions of this Section 2.26, the Company may, before any shares
of Perpetual Preferred Stock are outstanding, modify the terms of the Perpetual Preferred Stock
Certificate of Designations without the consent of any Holder of Debentures to (i) evidence the
succession of any person to the obligations of the Company; (ii) add to the covenants in the
Perpetual Preferred Stock Certificate of Designations for the benefit of holders of the Perpetual
Preferred Stock or to surrender any of the rights or powers of the Company with respect to the
Perpetual Preferred Stock; or (iii) cure any ambiguity or to correct or supplement any provision
contained in the Perpetual Preferred Stock Certificate of Designations that may be defective or
inconsistent with any other provision contained therein.

     Section 2.27 Sinking Fund. The provisions contained in Article 12 of the Base
Indenture shall not apply to the Debentures.

     Section 2.28 Tax Treatment. Except with respect to withholding on payments of
interest to non-U.S. Holders, the Company agrees, and by acquiring an interest in a Debenture each
beneficial owner of a Debenture agrees, to treat the Debentures as indebtedness for U.S. federal
income tax purposes.

     Section 2.29 Defeasance. Article 13 of the Base Indenture shall not apply to the
Debentures.

     Section 2.30 Execution. At least one Officer shall sign the Debentures for the
Company by manual or facsimile signature.

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ARTICLE III

COVENANTS

     Section 3.1 Limitation on Payments. During any Extension Period and until such time
as all accrued but unpaid interest, together with any Compounded Interest thereon, is paid in full,
the Company shall not (and shall not permit any Controlled Subsidiary to):

     (a) declare or pay any dividends on, make distributions regarding, or redeem, purchase,
acquire or make a liquidation payment with respect to, any shares of capital stock of the Company,
other than:

     (i) purchases of the Company’s capital stock in connection with employee or
agent benefit plans or under any dividend reinvestment plan;

     (ii) purchases or repurchases of shares of the Company’s capital stock pursuant
to a contractually binding requirement to buy stock existing prior to the
commencement of the Extension Period, including under a contractually binding stock
repurchase plan;

     (iii) in connection with the reclassification of any class or series of the
Company’s capital stock, or the exchange or conversion of one class or series of the
Company’s capital stock for or into another class or series of the Company’s capital
stock, in each case where the resulting capital stock ranks pari passu with or
junior to the capital stock so reclassified, exchanged or converted;

     (iv) the purchase of fractional interests in shares of the Company’s capital
stock in connection with the conversion or exchange provisions of that capital stock
or the security being converted or exchanged;

     (v) dividends or distributions in the form of the Company’s capital stock or
rights to acquire the Company’s capital stock, where the dividend stock or stock
underlying the dividend rights is the same class as the stock on which the dividend
is being paid or ranks pari passu with or junior to such stock;

     (vi) any declaration of a dividend in connection with the implementation of a
shareholders’ rights plan, or issuances of capital stock under any such plan in the
future, or redemptions or repurchases of any rights outstanding under a
shareholders’ rights plan;

     (vii) acquisitions of the Company’s capital stock previously issued in
connection with acquisitions of businesses made by the Company (which acquisitions
are made by the Company in connection with the satisfaction of indemnification
obligations of the sellers of such businesses);

     (viii) the payment of any dividend during an Optional or Mandatory Extension
Period within 60 days after the date of declaration thereof, if at the date

50

 

of declaration no Optional Extension Period was in effect and no Mandatory
Trigger Event has occurred; or

     (ix) the redemption, repurchase, retirement, defeasance or other acquisition of
any of the Company’s capital stock in exchange for, or out of the net cash proceeds
of the substantially concurrent sale, other than to a Controlled Subsidiary, of
other of the Company’s capital stock that ranks pari passu with or junior to the
subject capital stock.

     (b) make any payment of principal of, or interest or premium, if any, on, or pay, repurchase
or redeem any debt securities issued by the Company that rank pari passu with or junior to the
Debentures, other than (i) any payment, repurchase or redemption in respect of Parity Debt
Securities made ratably and in proportion to the respective amounts of (1) accrued and unpaid
amounts on such Parity Debt Securities, on the one hand, and (2) accrued and unpaid amounts on the
Debentures, on the other hand, or (ii) the exchange or conversion of one class or series of such
debt securities for or into another class or series of the Company’s Securities, in each case if
the resulting securities rank pari passu with or junior to the securities so exchanged or
converted; or

     (c) make any guarantee payments with respect to any guarantee by the Company of the debt
securities of any Subsidiary, if such guarantee ranks pari passu with or junior to the Debentures,
other than any payment in respect of Parity Guarantees made ratably and in proportion to the
respective amounts of (1) accrued and unpaid amounts on such Parity Guarantees, on the one hand,
and (2) accrued and unpaid amounts on the Debentures, on the other hand.

     Section 3.2 Warrant and Preferred Stock Settlement Mechanism.

     (a) Commencing at the date (i) on which a Mandatory Trigger Event occurs or (ii) that is five
years (as may be extended as provided in Section 2.6(b)) following the first Interest Payment Date
as of which the Company elected to commence an Optional Extension Period (the “APM Commencement
Date”), the Company shall issue and sell Qualifying Warrants and Qualifying Preferred Stock to
third parties that are not Subsidiaries of the Company (the “Warrant and Preferred Stock Settlement
Mechanism”) resulting in APM Eligible Proceeds at least equal to the amount of accrued but unpaid
interest, together with any Compounded Interest thereon, then due on the Debentures (including any
Deferred Interest), and shall apply such APM Eligible Proceeds to the payment of such accrued but
unpaid interest, provided that the Company shall not be required to sell Qualifying Warrants or
Qualifying Preferred Stock during the occurrence and continuation of a Market Disruption Event and
provided further that (x) the Company shall not be required to sell additional Qualifying Warrants
to the extent that the number of shares of the Company’s Common Stock underlying Qualifying
Warrants sold pursuant to this Section 3.2 or Section 11 of the Perpetual Preferred Stock
Certificate of Designations would exceed 84,000,000 shares in the aggregate (the “Warrant Cap”) and
(y) the Company shall not sell additional Qualifying Preferred Stock to the extent that the
aggregate liquidation preference assigned to all such Qualifying Preferred Stock sold pursuant to
this Section 3.2 or Section 11 of the Perpetual Preferred Stock Certificate of Designations would

51

 

exceed 25% of the aggregate principal amount of the Debentures at the time of their original
issuance (the “Preferred Stock Cap”).

     If the issued and outstanding shares of the Company’s Common Stock shall have been changed
into a different number of shares or a different class by reason of any stock split, reverse stock
split, stock dividend, reclassification, recapitalization, split-up, combination, exchange of
shares or other similar transaction, then the Warrant Cap shall be correspondingly adjusted.

     (b) The obligations described in Section 3.2(a) shall be excused due to the occurrence and
continuation of a Market Disruption Event in respect of any Interest Payment Date only if the
Company shall have provided to the Trustee no more than 15 and no less than 10 Business Days prior
to such Interest Payment Date an Officers’ Certificate stating that (i) a Market Disruption Event
was existing after the immediately preceding Interest Payment Date and (ii) either (A) the Market
Disruption Event continued for the entire period from the Business Day immediately following the
preceding Interest Payment Date to the Business Day immediately preceding the date on which such
Officers’ Certificate is provided or (B) the Market Disruption Event continued for only part of
such period but the Company was unable to raise sufficient APM Eligible Proceeds during the rest of
that period to pay all accrued and unpaid interest due on the Interest Payment Date with respect to
which such Officers’ Certificate is being delivered; and to the extent that the Company has raised
some but not all APM Eligible Proceeds necessary to pay all Deferred Interest (including Compounded
Interest thereon) on any Interest Payment Date pursuant to this Section 3.2(b) and subject to the
Warrant Cap and the Preferred Stock Cap, such APM Eligible Proceeds shall be applied in accordance
with Section 3.2(f).

     (c) Upon the occurrence and during the continuation of a Market Disruption Event, or to the
extent the Warrant Cap or the Preferred Stock Cap applies, the Company may continue to defer
payments of interest, but in no event to a date later than (i) 10 consecutive years after the first
date on which interest payments were deferred pursuant to Section 2.6 or Section 2.7, (ii) the
Final Maturity Date, or (iii) the date of an Event of Default.

     (d) Mandatorily Deferred Interest (or Optionally Deferred Interest that has been accrued for
five years (excluding the duration of any Mandatory Extension Period within the relevant Optional
Extension Period)) on the Debentures may only be satisfied using APM Eligible Proceeds until the
Final Maturity Date or the date that is 10 years after the date on which interest was first
deferred for purposes of the relevant Extension Period or on any date as of which an Event of
Default has occurred and is continuing, on which dates such interest obligation may be satisfied
with cash from any source and without regard to the Warrant and Preferred Stock Settlement
Mechanism.

     (e) The Company shall be required to use commercially reasonable efforts to seek shareholder
consent to increase the number of authorized shares of Preferred Stock or Common Stock, as the case
may be, if such consent is required to avoid a Market Disruption Event. Qualifying Preferred Stock
“Available for Issuance,” shall be determined at any time, by (i) deducting from the number of the
Company’s authorized and unissued shares of preferred stock the maximum number of such shares that
can be issued under existing reservations and commitments under which the Company is able to
determine such maximum number and (ii) allocating remaining authorized shares of preferred stock on
a pro rata basis, or such other

52

 

basis as the Company determines is appropriate, the remaining available shares to the Warrant
and Preferred Stock Settlement Mechanism and to any other similar commitment that is of an
indeterminate nature and under which the Company is then required to issue shares. Common Stock
“Available for Issuance” shall be determined at any time by subtracting from the number of the
Company’s authorized and unissued shares of Common Stock the number of those shares of Common Stock
that the Company is unable to issue due to their reservation for other purposes.

     (f) APM Eligible Proceeds shall be applied, first, to pay Mandatorily Deferred Interest,
second, to pay Optionally Deferred Interest and third, to pay current interest to the extent not
paid from other sources; provided that if the Company is obligated to sell Qualifying Warrants or
Qualifying Preferred Stock and apply the net proceeds to payments of principal of or interest on
any other securities that rank pari passu with the Debentures, then on any date and for any period
the amount of APM Eligible Proceeds received by the Company from those sales and available for such
payments shall be applied to the Debentures and those other equal-ranking securities pro rata in
accordance with their respective outstanding principal amounts. In the event that APM Eligible
Proceeds are not sufficient to satisfy the full amount of Deferred Interest, such APM Eligible
Proceeds shall be paid to the Holders of the Debentures on a pro rata basis.

     (g) The Company shall be permitted to modify the definition of “Available for Issuance” as
applied to the Qualifying Preferred Stock without the consent of Holders of the Debentures,
provided that (i) the Company has determined, in the Company’s reasonable discretion, that such
modification is not materially adverse to such Holders and (ii) the rating agencies then rating the
Debentures confirm the then current ratings of the Debentures.

     (h) If no Mandatory Extension Period is continuing and prior to a Trigger Determination Date
the Company determines that, based on its most recent publicly available financial statements, a
Mandatory Trigger Event will occur on such Trigger Determination Date, the Company shall commence
good faith efforts, reasonably promptly following such determination, to commence the sale of
Qualifying Warrants or Qualifying Preferred Stock, subject to the occurrence of a Market Disruption
Event (as well as the Warrant Cap and the Preferred Stock Cap, if applicable), to raise the funds
necessary to make the next interest payment on the Debentures.

     (i) Neither the Warrant Cap nor the Preferred Stock Cap shall relieve the Company of its
obligation to issue the number of Qualifying Warrants or Qualifying Preferred Stock that the
Company can issue without breach thereof and to apply the proceeds thereof in partial payment of
Deferred Interest.

     (j) If any Extension Period lasts longer than one year, the Company shall not repurchase any
Qualifying Warrants or any Qualifying Preferred Stock sold, at any time, pursuant to the Warrant
and Preferred Stock Settlement Mechanism, or any Common Stock, until the first anniversary of the
date on which all Deferred Interest and accumulated dividends on the Perpetual Preferred Stock have
been paid or cancelled.

53

 

     (k) The Company shall, if it will not be permitted to make any payment of interest that would
otherwise be due as a result of the failure to receive sufficient APM Eligible Proceeds, deliver an
Officers’ Certificate to the Trustee (who shall forward such certificate to each Holder of
Debentures as soon as practicable) no more than 15 and no less than 10 Business Days in advance of
such Interest Payment Date, stating the amount of APM Eligible Proceeds, if any, raised in
connection with such Interest Payment Date.

     Section 3.3 Obligation to Sell Qualifying Capital Securities.

     (a) So long as any Debentures remain Outstanding, the Company shall use “commercially
reasonable efforts” (as defined in clause (b) below), subject to a Market Disruption Event, to
raise sufficient QCS Proceeds during the six-month period ending on each Repayment Notice Date to
repay all then Outstanding Debentures in full.

     (b) For purposes of this Section 3.3, “commercially reasonable efforts” to sell Qualifying
Capital Securities means commercially reasonable efforts to complete the offer and sale of
Qualifying Capital Securities to Persons other than Subsidiaries in public offerings or private
placements. The Company shall not be considered to have made commercially reasonable efforts to
effect a sale of Qualifying Capital Securities if it determines not to pursue or complete such sale
due to pricing, coupon, dividend rate or dilution considerations.

     (c) The obligations described in Section 3.3(a) shall be excused due to the occurrence and
continuation of a Market Disruption Event in respect of any Repayment Date only if the Company
shall have provided to the Trustee no more than 15 and no less than 10 Business Days prior to such
Repayment Date an Officers’ Certificate stating that (i) a Market Disruption Event was existing
after the immediately preceding Interest Payment Date and (ii) either (A) the Market Disruption
Event continued for the entire six-month period ending on the Repayment Notice Date immediately
preceding the date on which such Officers’ Certificate is provided or (B) the Market Disruption
Event continued for only part of such period but the Company was unable to raise sufficient QCS
Proceeds during the rest of that period to repay all then Outstanding Debentures in full; and to
the extent that the Company has raised some but not all QCS Proceeds necessary to repay all then
Outstanding Debentures in full pursuant to this Section 3.3, such QCS Proceeds shall be applied in
accordance with Section 2.10(e).

     Section 3.4 Covenant Against Amending Capital Replacement Covenant. The Company shall
not modify or amend the Capital Replacement Covenant to impose additional restrictions on the type
or amount of Qualifying Capital Securities that the Company may include for purposes of determining
when repayment, redemption or repurchase of the Debentures is permitted under the Capital
Replacement Covenant, except with the consent (evidenced as provided in Section 1.02 of the Base
Indenture) of the Holders of not less than a majority in aggregate principal amount of the
Debentures. Except as aforesaid, the Company may modify or amend the Capital Replacement Covenant
without the consent of the Holders of the Debentures.

54

 

ARTICLE IV

SUBORDINATION

     Section 4.1 Senior Indebtedness. The definition of “Senior Indebtedness” in Section
1.01 of the Base Indenture is hereby amended in its entirety with respect to the Debentures as
follows:

     “Senior Indebtedness” means the principal of, premium, if any, and interest on:

     (a) all indebtedness of the Company, whether outstanding on the date of the issuance of the
Debentures or thereafter created, incurred or assumed, which is for money borrowed, or which is
evidenced by a note, bond, indenture or similar instrument;

     (b) all of the Company’s obligations under leases required or permitted to be capitalized
under GAAP;

     (c) all of the Company’s reimbursement obligations with respect to any letter of credit,
banker’s acceptance, security purchase facility or similar credit transactions;

     (d) all of the Company’s conditional sales agreements or agreements or obligations to pay
deferred purchase prices, other than in the ordinary course of business;

     (e) all obligations of the types referred to in clauses (a) through (d) above of another
Person, the payment of which the Company is responsible or liable for as obligor, guarantor or
otherwise; and

     (f) amendments, modifications, renewals, extensions, deferrals and refundings of any of the
above types of indebtedness.

     Senior Indebtedness shall continue to be Senior Indebtedness and to be entitled to the
benefits of the subordination provisions of the Indenture irrespective of any amendment,
modification or waiver of any term of the Senior Indebtedness, or any extension or renewal of the
Senior Indebtedness. Notwithstanding anything to the contrary in the foregoing, Senior
Indebtedness shall not include (i) trade accounts payable or indebtedness incurred for the purchase
of goods, materials or property, or for services obtained in the ordinary course of business or for
other liabilities arising in the ordinary course of business, (ii) any indebtedness which by its
terms is expressly made pari passu with or subordinated to the Debentures or (iii) obligations of
the Company owed to its Subsidiaries.”

     Section 4.2 Subordination. Article Fourteen of the Base Indenture is hereby amended
with respect to the Debentures as follows:

     (a) Section 14.01 of the Base Indenture is amended in its entirety as follows: “The Company
agrees, and each Holder by accepting a Debenture agrees, that the payment of all obligations owing
in respect of the Debentures is subordinated in right of payment, to the extent and in the manner
provided in this Article Fourteen, to the prior payment in full of all existing and future Senior
Indebtedness of the Company and that the subordination is for the benefit of

55

 

and enforceable by the holders of such Senior Indebtedness. All provisions of this Article
Fourteen shall be subject to Section 14.12.”

     (b) Section 14.03 of the Base Indenture is amended in its entirety as follows: “No payment on
account of principal or interest on the Debentures shall be made if, at the time of such payment or
immediately after giving effect thereto, (i) the Company defaults in the payment of any principal
of (or premium, if any) or interest on any Senior Indebtedness when the same becomes due and
payable, whether at maturity or at a date fixed for prepayment or declaration or otherwise or (ii)
an event of default occurs with respect to any Senior Indebtedness permitting the holders thereof
to accelerate the maturity thereof and written notice of such event of default (requesting that
payments on the Debentures cease) is given to the Company by the holders of Senior Indebtedness,
and such event of default shall not have been cured or waived or shall not have ceased to exist;
provided, however, that if the holders of the Senior Indebtedness to which the default relates have
not declared such Senior Indebtedness to be immediately due and payable within 180 days after the
occurrence of such default (or have declared such Senior Indebtedness to be immediately due and
payable and within such period have rescinded such declaration of acceleration), then the Company
shall resume making any and all required payments in respect of the Debentures (including any
missed payments), and provided further that this clause shall in no event prevent Holders from
receiving Permitted Junior Securities or limit the rights of Holders to convert their Debentures
into Perpetual Preferred Stock and Common Stock (but not cash).”

     (c) Section 14.04 of the Base Indenture is deleted.

     (d) Section 14.05 of the Base Indenture is amended in its entirety as follows: “In the event
that any payment or distribution of assets of the Company of any kind or character not permitted by
this Article 14, whether in cash, property or securities, shall be received by the Trustee or the
Holders of Debentures before all Senior Indebtedness is paid in full, or provision made for such
payment, in accordance with its terms, at a time when a responsible officer of the Trustee or such
Holder has actual knowledge that such payment should not have been made to it, such payment or
distribution shall be held in trust for the benefit of, and, upon written request, shall be paid
over or delivered to, the holders of such Senior Indebtedness or their agents or representatives,
or to the Trustee or trustees under any indenture pursuant to which any instruments evidencing any
of such Senior Indebtedness may have been issued, as their respective interests may appear, for
application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to
pay all such Senior Indebtedness in full in accordance with its terms, after giving effect to any
concurrent payment or distribution to the holders of such Senior Indebtedness.”

ARTICLE V

MISCELLANEOUS

     Section 5.1 Ratification of Indenture. The Base Indenture, as supplemented and
amended by this First Supplemental Indenture, is ratified and confirmed, and this First
Supplemental Indenture shall be deemed part of the Base Indenture with respect to the Debentures
(but not any other series of Securities issued pursuant to the Base Indenture) in the

56

 

manner and to the extent herein and therein provided. If any provision of this First
Supplemental Indenture is inconsistent with a provision of the Base Indenture, the terms of this
First Supplemental Indenture shall control with respect to the Debentures (but not any other series
of Securities issued pursuant to the Base Indenture).

     Section 5.2 Governing Law. This First Supplemental Indenture and the Debentures shall
be governed by, and construed in accordance with, the laws of the State of New York.

     Section 5.3 Severability. In case any one or more of the provisions contained in this
First Supplemental Indenture, the Base Indenture or the Debentures shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this First Supplemental Indenture, of the
Base Indenture or of the Debentures, but this First Supplemental Indenture, the Base Indenture and
the Debentures shall be construed as if such invalid or illegal or unenforceable provision had
never been contained herein or therein.

     Section 5.4 Counterparts. This First Supplemental Indenture may be executed in
counterparts each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.

57

 

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

	 	 	 	 	 
	 	PEABODY ENERGY CORPORATION

 	 
	 	By:  	/s/ Walter L. Hawkins, Jr.
 	 
	 	 	Name:  	Walter L. Hawkins, Jr. 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as trustee

 	 
	 	By:  	Philip G. Kane, Jr.
 	 
	 	 	Name:  	Philip G. Kane, Jr. 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

EXHIBIT A

CERTIFICATE OF DESIGNATIONS

OF

PERPETUAL PREFERRED STOCK

OF

PEABODY ENERGY CORPORATION

(pursuant to Section 151 of the Delaware General Corporation Law)

     PEABODY ENERGY CORPORATION, a corporation organized and existing under the General Corporation
Law of the State of Delaware (the “Company”), hereby certifies that the following resolutions of
the Pricing Committee of the Board of Directors of the Company were duly adopted on December 19,
2006, and authorized the creation and issue of up to 750,000 shares of multiple series of preferred
stock that are referred to collectively as the Perpetual Preferred Stock, par value $.01 per share,
and stated the designations, rights, preferences, privileges and qualifications, limitations and
restrictions of such shares of Perpetual Preferred Stock as follows:

     2. Designation.

     One series of Preferred Stock is hereby designated as the Series B-1 Perpetual Preferred
Stock, such series to consist of 742,001 shares, and 7,999 further series of Preferred Stock are
hereby designated as the Series B-2 through Series B-8,000 Perpetual Preferred Stock, each such
series to consist initially of one share (the Series B-1 Perpetual Preferred Stock through Series
B-8,000 Perpetual Preferred Stock, the “Perpetual Preferred Stock”). Shares of Perpetual Preferred
Stock shall be issuable upon conversion of the Company’s 4.75% Convertible Junior Subordinated
Debentures (the “Convertible Debentures”) at the option of the holders of the Convertible
Debentures in accordance with the First Supplemental Indenture, dated as of December 20, 2006,
between the Company and U.S. Bank National Association, as Trustee (the “First Supplemental
Indenture”). Shares of Perpetual Preferred Stock issued on the date of the first such conversion
shall be Series B-1 Perpetual Preferred Stock. Shares of Perpetual Preferred Stock issued on any
date thereafter shall be of the same series as the most recently issued shares of Perpetual
Preferred Stock unless such shares shall, upon issuance, have Accumulated Dividends (as hereinafter
defined) in an amount different than the amount of then Accumulated Dividends on such most recently
issued series, in which case the shares issued on such date shall be shares of the next sequential
series of Perpetual Preferred Stock.

     The number of authorized shares of any series of Perpetual Preferred Stock may be increased or
decreased (but not below the number that, together with the number of authorized shares of all
other series of the Perpetual Preferred Stock, would be below the sum of (x) the quotient of the
aggregate principal amount of the Convertible Debentures then issued and outstanding divided by
$1,000, plus (y) the number of shares of Perpetual Preferred Stock then outstanding) by further
resolution duly adopted by the Board of Directors. No such reduction shall affect the due
authorization of any issued and outstanding shares of Perpetual Preferred Stock. It is the
intention of the Company to file a certificate of increase to increase or a certificate of
elimination to reduce the authorized number of shares of the appropriate series of Perpetual
Preferred Stock, and to file a corresponding certificate of decrease to reduce or a

A- 1

 

certificate of increase to increase the authorized number of shares of the Series B-1
Perpetual Preferred Stock, if necessary, in connection with the conversion of any Convertible
Debenture into shares of any series of Perpetual Preferred Stock.

     The Perpetual Preferred Stock shall have a liquidation preference (the “Liquidation
Preference”) of U.S.$1,000 per share of Perpetual Preferred Stock.

     3. Definitions. As used herein, the following terms shall have the following
meanings:

     “Accounts Receivable Securitization Program” means the accounts receivable securitization
program pursuant to the Amended and Restated Receivables Purchase Agreement, dated as of September
30, 2005, by and among the Company and the Seller and the Sub-Servicers named therein, Market
Street Funding Corporation, as Issuer, and PNC Bank, National Association, as Administrator, as
modified, amended, renewed, refunded, replaced, restructured, repaid or refinanced from time to
time (whether with the original issuer, administrator or other agents, arrangers and counterparties
or otherwise), such purchase agreement and any other document referred to herein to be made
available to any stockholder of the Company upon request.

     “Accumulated Dividends” means, subject to Section 4(i), dividends provided for by Section 4(a)
hereof that have not been declared or that have been declared but have not been paid, plus
dividends described in Section 4(e).

     “Adjusted Debt” at the end of any fiscal quarter means (i) long-term debt and short-term debt,
including any junior subordinated debt, but excluding any Preferred Stock, as reported on the
Company’s balance sheet prepared in accordance with GAAP, or the notes thereto, as of the final day
of such fiscal quarter, plus (ii) seven times Annual Rent Expense, plus (iii) the amount sold under
the Company’s Accounts Receivable Securitization Program during such fiscal quarter, details of
each such calculation to be made available to any stockholder of the Company upon request.

     “Adjusted EBITDA” means, for any fiscal quarter, (i) quarterly net income or net loss, plus
(ii) quarterly tax expense, plus (iii) Adjusted Interest, plus (iv) quarterly depreciation and
amortization, each as reported in the Company’s income statement prepared in accordance with GAAP,
or the notes thereto, for such fiscal quarter.

     “Adjusted Interest” means, for any fiscal quarter, (i) quarterly debt interest expense plus
(ii) the quarterly cost of sale associated with sales of accounts receivable under the Accounts
Receivable Securitization Program during that fiscal quarter and (iii) quarterly debt
extinguishment expense if not otherwise included in quarterly debt interest expense, each as
reported in the Company’s income statement prepared in accordance with GAAP, or the notes thereto,
for such fiscal quarter. For the avoidance of doubt, Adjusted Interest shall include the amount of
any accrued and unpaid interest on the Convertible Debentures.

     “Agent Members” has the meaning assigned to such term in Section 13.

A- 2

 

     “Annual Rent Expense” means the Company’s annual rent expense for its most recently completed
fiscal year, as reported in the Company’s income statement prepared in accordance with GAAP, or the
notes thereto, for such fiscal year.

     “APM Eligible Proceeds” means, with respect to any Dividend Payment Date, the net proceeds
(after underwriters’ or placement agents’ fees, commissions or discounts and other expenses
relating to the issuance or sale) the Company has received during the six-month period prior to
such Dividend Payment Date from the issuance or sale of Qualifying Warrants or Qualifying Preferred
Stock to Persons that are not Subsidiaries, less any portion of such net proceeds that has been
used by the Company to pay deferred interest on the Convertible Debentures or previously been used
to pay Accumulated Dividends on the Perpetual Preferred Stock.

     “Appointing Preferred Shares” mean any other series or class of Parity Shares upon which
rights similar to the Appointing Rights have been conferred and are exercisable.

     “Appointing Rights” has the meaning assigned to such term in Section 5(d).

     “Available for Issuance” has the meaning set forth in Section 11(c).

     “Binding Capital Replacement Covenant” means, with respect to any securities, a capital
replacement covenant substantially similar to the capital replacement covenant applicable to the
Convertible Debentures, but with immediate effect rather than applying only from a date subsequent
to the issuance of such securities.

     “Board of Directors” means the Board of Directors of the Company or, to the extent permitted
by law, any duly authorized committee of that board or any director or directors and/or officer or
officers of the Company to whom that board or committee shall have duly delegated its authority.

     “Business Day” means any day that is not a Saturday, a Sunday or a legal holiday or a day on
which banking institutions or trust companies located in New York City are authorized or obligated
by law to close.

     “Capital Replacement Intention Disclosure” means, with respect to any securities, that the
Company has publicly stated its intention, either in the prospectus or other offering document
under which such securities were initially offered for sale or in filings with the Commission made
by the Company under the Exchange Act prior to or contemporaneously with the issuance of such
securities, that the Company shall pay, redeem or repurchase such securities only if it has
received an amount of net proceeds at least equal to the applicable payment, redemption or
repurchase price of such securities from the issuance of securities that are as, or more,
equity-like than such securities, within six months prior to the applicable payment, redemption or
repurchase date.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any preferred stock, but excluding any debt securities convertible
into such equity.

A- 3

 

     “Change of Control” means the occurrence of any of the following:

     (i) the sale, lease, transfer, conveyance or other disposition (other than by
way of merger or consolidation), in one or a series of related transactions, of all
or substantially all of the assets of the Company and its subsidiaries, taken as a
whole, to any “person” (as such term is used in Section 13(d)(3) of the Exchange
Act);

     (ii) the adoption of a plan relating to the Company’s liquidation or
dissolution;

     (iii) the consummation of any transaction (including, without limitation, any
merger or consolidation) the result of which is that any “person” (as defined above)
becomes the “beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5
under the Exchange Act), directly or indirectly, of more than 50% of the Company’s
voting stock (measured by voting power rather than number of shares), excluding any
transaction in which the voting stock that comes to be beneficially owned by such
person as a result of the transaction is voting stock newly issued in connection
with, or for the purpose of, the transaction; or

     (iv) the first day on which a majority of the members of the Company’s Board of
Directors are not Continuing Directors.

     “Closing Sale Price” means the closing sale price of the Company’s Common Stock on the NYSE or
on the principal U.S. stock exchange or interdealer quotation system as is used for purposes of
measuring Trading Days in accordance with the definition below (or if no closing sale price is
reported, the average of the closing bid and closing ask prices or, if more than one in either
case, the average of the closing bid and the closing ask prices).

     “Commission” means the U.S. Securities and Exchange Commission.

     “Common Stock” mean the common stock, par value $0.01 per share, of the Company, or any other
series or class of shares resulting from successive changes or reclassifications of such Common
Stock consisting solely of changes in par value, or from par value to no par value, or as a result
of a subdivision, combination, merger, consolidation or similar transaction in which the Company is
a constituent corporation.

     “Company” has the meaning set forth in the first paragraph hereof.

     “Continuing Directors” means, as of any date of determination, any member of the Company’s
Board of Directors who (i) was a member of such Board of Directors on December 20, 2006 or (ii) was
nominated for election or elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board of Directors at the time of such nomination or
election.

     “Convertible Debentures” has the meaning assigned to such term in Section 1 and “Convertible
Debenture” means a Convertible Debenture in the principal amount of $1,000.

A- 4

 

     “Depositary” means, with respect to Perpetual Preferred Stock issuable in whole or in part in
the form of one or more Global Perpetual Preferred Shares, a clearing agency registered under
Section 17A of the Exchange Act that is designated to act as depositary for such Perpetual
Preferred Stock, and initially shall be DTC.

     “Distribution” means, as to any security or combination of securities, dividends, interest
payments or other income distributions to the holders thereof that are not Subsidiaries of the
Company.

     “Dividend Payment Date” means June 15 and December 15 of each year, except that, in connection
with any remarketing, the Dividend Payment Dates may be reset such that dividends are payable on a
quarterly basis instead of a semiannual basis. In that event, Dividend Payment Date shall mean
March 15, June 15, September 15 and December 15 of each year.

     “Dividend Period” means the period from and including a Dividend Payment Date to, but
excluding, the next Dividend Payment Date, except that the initial Dividend Period for any shares
of Perpetual Preferred Stock shall commence on and include the Issue Date for such shares, and
shall end on and exclude the first Dividend Payment Date following such Issue Date.

     “Dividend Rate” means (i) prior to the Reset Effective Date, the Initial Rate and (ii) on and
after the Reset Effective Date, the Reset Rate.

     “Dividend Record Date” means, with respect to each Dividend Payment Date, 5:00 p.m. (New York
City time) on the day immediately preceding such Dividend Payment Date.

     “DTC” means The Depository Trust Company, a New York corporation, and its successors.

     “Effective Date” means the date on which a Change of Control becomes effective.

     “End Date” means, with respect to any securities, the earliest to occur of:

     (a) the Company’s failure to pay Distributions (including, without limitation, all
deferred and accumulated amounts) in full for 10 years;

     (b) any liquidation, dissolution, winding up, reorganization, insolvency, receivership
or proceeding under any bankruptcy law with respect to the Company;

     (c) an event of default and acceleration with respect to such securities; and

     (d) the final maturity of such securities.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

     “Final Failed Remarketing” has the meaning assigned to such term in Section 10(f).

A- 5

 

     “Final Remarketing Date” means the 21st Trading Day after the last day of the
Remarketing Election Period.

     “First Supplemental Indenture” has the meaning assigned to such term in Section 1.

     “Foregone Dividends” has the meaning assigned to such term in Section 4(i).

     “GAAP” means, at any date or for any period, U.S. generally accepted accounting principles, as
in effect on such date or for such period, except as provided in the definition of “Mandatory
Trigger Event” below.

     “Global Perpetual Preferred Shares” has the meaning assigned to such term in Section 13.

     “Holder” means the Person in whose name a share of Perpetual Preferred Stock is registered on
the Registrar’s books.

     “Initial Rate” means 3.0875% per annum.

     “Initial Remarketing Date” means the sixth Trading Day after the last day of the Remarketing
Election Period.

     “Interest Coverage Ratio” means, for any fiscal quarter, the sum of (a) four times the
Company’s Adjusted EBITDA for such fiscal quarter and (b) one-third of the Company’s Annual Rent
Expense, divided by the sum of (x) four times the Company’s Adjusted Interest for such fiscal
quarter and (y) one-third of the Company’s Annual Rent Expense.

     “Issue Date,” with respect to any shares of Perpetual Preferred Stock, means the date on which
such shares of Perpetual Preferred Stock are first issued following the conversion of Convertible
Debentures.

     “Junior Shares” means the Common Stock, the Company’s Series A Junior Participating Preferred
Stock and each other series or class of stock established after the date hereof, the terms of which
do not expressly provide that such series or class ranks senior to or on a parity with the
Perpetual Preferred Stock as to dividend rights or rights upon the liquidation, winding-up or
dissolution of the Company.

     “Leverage Ratio” means, for any fiscal quarter, the Company’s Adjusted Debt at the end of such
fiscal quarter divided by the sum of (a) four times the Company’s Adjusted EBITDA for such fiscal
quarter and (b) the Company’s Annual Rent Expense.

     “Liquidation Distribution” has the meaning assigned to such term in Section 6(a).

     “Liquidation Preference” has the meaning assigned to such term in Section 1.

     “London Banking Day” means a day on which commercial banks are open for business, including
dealings in United States dollars, in London.

A- 6

 

     “Mandatory Extension Period” has the meaning assigned to such term in Section 4(g).

     “Mandatory Redemption Date” means the third Business Day after the Company gives notice of its
election to terminate a Remarketing.

     “Mandatory Trigger Event” means a determination by the Company that both of the following
conditions exist as of the day that is the 30th day prior to any Dividend Payment Date
(or, in the event that such date is not a Business Day, the immediately preceding Business Day) (a
“Trigger Determination Date”):

     (i) The Leverage Ratio for each of the three most recently completed fiscal
quarters has been equal to or greater than 6.0; and

     (ii) The Interest Coverage Ratio for each of the three most recently completed
fiscal quarters has been less than or equal to 2.0.

     The Mandatory Trigger Event shall continue until either (or both) of the conditions in
paragraphs (i) and (ii) above no longer exists as of the Trigger Determination Date applicable to
any subsequent Dividend Payment Date.

     For purposes of determining whether a Mandatory Trigger Event has occurred on any relevant
Trigger Determination Date, any interest that has been optionally deferred on the Convertible
Debentures in accordance with the terms thereof shall be counted as if it had been paid in cash.

     If, because of a change in GAAP that, considered cumulatively with any other such changes,
results in a change in an accounting principle or a restatement, the Company’s Leverage Ratio or
Interest Coverage Ratio is higher or lower than it would have been absent such change, then, for
purposes of the calculations described in (i) and (ii) of this definition, commencing with the
fiscal quarter for which such change in GAAP becomes effective, such Leverage Ratio or Interest
Coverage Ratio, respectively, shall be calculated on a pro forma basis as if such change had not
occurred.

     “Market Disruption Event” means the occurrence or existence of any of the following events or
sets of circumstances:

     (iii) the Company may not issue Qualifying Warrants or Qualifying Preferred
Stock without obtaining the consent or approval of a regulatory body (including,
without limitation, any securities exchange) or governmental authority, and the
Company has used commercially reasonable efforts to obtain such consent or approval
but such consent or approval has not been obtained;

     (iv) the Company does not have sufficient Common Stock Available for Issuance
in respect of Qualifying Warrants or sufficient Qualifying Preferred Stock Available
for Issuance to raise sufficient proceeds to pay the interest payments on the
Convertible Debentures and Accumulated Dividends on the Perpetual Preferred Stock
and the Company has used commercially reasonable efforts to obtain the consent or
approval of its shareholders to increase the amount

A- 7

 

of its authorized Common Stock or Qualifying Preferred Stock but such consent
or approval has not been obtained; provided that the Market Disruption Event
described in this clause (ii) shall not relieve the Company of its obligation to
issue the number of shares of Qualifying Preferred Stock that are Available for
Issuance or Qualifying Warrants in respect of which the Company has Common Stock
Available for Issuance, and to apply the proceeds thereof in partial payment of
Accumulated Dividends as provided in Section 11(d);

     (v) trading in securities generally or Common Stock or Preferred Stock on the
principal exchange on which the Common Stock or Preferred Stock is then listed and
traded (as of the date hereof, the NYSE) has been suspended or the settlement of
such trading generally has been materially disrupted;

     (vi) (a) (1) the United States has become engaged in hostilities, (2) there has
been an escalation in hostilities involving the United States or (3) there has been
a declaration of a national emergency or war by the United States or (b) there has
occurred any material adverse change in (1) domestic or international economic,
political or financial conditions (including from terrorist activities) or (2) the
effect of international conditions on the financial markets in the United States
that, in any of the circumstances described in clauses (a) or (b) of this clause,
materially disrupts trading in securities generally on the NYSE or any other
national securities exchange on which the Common Stock or Preferred Stock is then
listed or traded or on trading in, or the issuance and sale of, Qualifying Warrants
and Qualifying Preferred Stock;

     (vii) a material disruption has occurred or a banking moratorium has been
declared in commercial banking or securities settlement or clearance services;

     (viii) minimum or maximum prices have been fixed, or maximum ranges for prices
of securities are required on the NYSE or by the Commission or other governmental
authority which, in either case, materially disrupts or otherwise has a material
adverse effect on trading in, or the issuance and sale of, Qualifying Warrants and
Qualifying Preferred Stock; or

     (ix) an event occurs and is continuing as a result of which the offering
document for the offer and sale of Qualifying Warrants or Qualifying Preferred Stock
would, in the Company’s judgment, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading and either (1) the disclosure of that event at
such time, in the Company’s judgment, would have a material adverse effect on the
Company’s business or (2) the disclosure relates to a previously undisclosed
proposed or pending material development or business transaction, the disclosure of
which would impede the Company’s ability to consummate such transaction, provided
that no single suspension period contemplated by this clause (vii) shall exceed 90
consecutive days and multiple

A- 8

 

suspension periods contemplated by this subsection may not exceed an aggregate
of 180 days in any 12-month period.

     “Moneyline Telerate Page 3750” means the display on Moneyline Telerate (or any successor
service) on such page (or any other page as may replace such page on such service) for the purpose
of displaying the London interbank rates of major banks for United States dollars.

     “Non-payment” means the time period beginning when full dividends on any shares of Perpetual
Preferred Stock shall have not been declared and paid for 20 consecutive Dividend Periods, or,
after any Successful Remarketing or any Final Failed Remarketing, any six Dividend Periods, whether
or not consecutive, and continuing until such date as all Accumulated Dividends on all Perpetual
Preferred Stock are paid in full or the shares of Perpetual Preferred Stock are no longer
outstanding.

     “NYSE” means the New York Stock Exchange, Inc.

     “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Financial Officer, the Chief Operating Officer, the Treasurer, any Assistant Treasurer, the
Controller, any Vice President, the Secretary or the Assistant Secretary of the Company.

     “Optional Redemption Date” means, in the case of any redemption pursuant to paragraph (b) or
paragraph (c) of Section 7, the date specified as the redemption date in the required notice of
redemption. In the case of a redemption of Perpetual Preferred Stock required under the First
Supplemental Indenture in order to effectuate a redemption of Convertible Debentures, the
aforementioned date specified as the redemption date in the required notice of redemption of the
Perpetual Preferred Stock must be the 30th Business Day after the date on which the
Company issues a written notice announcing the redemption of Convertible Debentures.

     “Parity Shares” means any series or class of the Company’s stock established after the date
hereof, the terms of which expressly provide that such series or class shall rank on a parity with
the Perpetual Preferred Stock as to dividend rights or rights upon the liquidation, winding-up or
dissolution of the Company.

     “Paying Agent” initially means American Stock Transfer and Trust Company. The Company may, in
its sole discretion, remove the Paying Agent with 10 calendar days prior notice to the Paying
Agent, provided that the Company shall appoint a successor Paying Agent who shall accept such
appointment prior to the effectiveness of such removal.

     “Perpetual Preferred Stock” has the meaning set forth in Section 1.

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

     “Preference Share Director” has the meaning assigned to such term in Section 5(d).

A- 9

 

     “Preferred Stock” means preferred stock of the Company.

     “Preferred Stock Cap” has the meaning assigned to such term in Section 11(a).

     “Qualifying Preferred Stock” means non-cumulative perpetual Preferred Stock (or depository
shares representing interests in such Preferred Stock) that (i) is not callable, (ii) is subject to
a Binding Capital Replacement Covenant or (iii) has Capital Replacement Intention Disclosure and
includes provisions that, beginning on the occurrence of the failure to satisfy one or more
financial tests set forth in the terms of such security or related transaction agreements and, so
long as such failure continues, until, but excluding, the End Date, prohibit the Company from
paying any deferred Distributions in an amount exceeding the net proceeds of the sale of Common
Stock, rights to purchase Common Stock or Qualifying Preferred Stock.

     “Qualifying Warrants” means warrants to purchase the Company’s Common Stock (i) that have an
exercise price per share greater than the most recent Closing Sale Price of the Common Stock as of
their date of issuance and (ii) that the Company is not entitled to redeem for cash and the holders
of which are not entitled to require the Company to repurchase for cash in any circumstances.

     “Redemption Date” means an Optional Redemption Date or a Mandatory Redemption Date.

     “Redemption Price” means U.S.$1,000 in cash per share of Perpetual Preferred Stock.

     “Register” means the stock ledger of issued shares of Perpetual Preferred Stock maintained by
the Registrar.

     “Registrar” initially means American Stock Transfer and Trust Company. The Company may, in
its sole discretion, remove the Registrar with 10 calendar days’ prior notice to the Registrar,
provided that the Company shall appoint a successor Registrar who shall accept such appointment
prior to the effectiveness of such removal.

     “Remarketing” has the meaning assigned to such term in Section 10(a).

     “Remarketing Agent” means the nationally recognized securities dealer selected by the Company
as the remarketing agent, including any successor remarketing agents selected by the Company.

     “Remarketing Agreement” means the agreement governing the Remarketing that shall be entered
into by the Company and the Remarketing Agent at or prior to the commencement of the Remarketing,
which agreement shall provide that the Remarketing Agent shall incur no liability to the Company or
to any Holder of the Perpetual Preferred Stock in its individual capacity or as Remarketing Agent
for any action or failure to act in connection with the Remarketing or otherwise, except as a
result of gross negligence or willful misconduct on its part, and pursuant to the terms of which
agreement the Company shall agree to indemnify the Remarketing Agent against certain liabilities,
including liabilities under the U.S. Securities Act of 1933, or to contribute to payments that the
Remarketing Agent may be required to make, arising out of or in connection with its duties under
the agreement. The Remarketing Agreement

A- 10

 

will provide that the Remarketing Agent may resign and be discharged from its duties and
obligations thereunder; provided, however, that no such resignation will become effective until the
Company has appointed at least one nationally recognized broker-dealer as successor Remarketing
Agent and such successor Remarketing Agent has entered into a remarketing agreement with the
Company. In such case, the Company shall use its commercially reasonable efforts to appoint a
successor Remarketing Agent and to enter into a remarketing agreement with such person or entity as
soon as reasonably practicable. Holders of Perpetual Preferred Stock will be third-party
beneficiaries of the Remarketing Agreement, to the extent a Final Failed Remarketing occurs as a
result of the Company’s failure to perform its obligations under the Remarketing Agreement.

     “Remarketing Date” means each of the Initial Remarketing Date, the Second Remarketing Date,
the Third Remarketing Date and the Final Remarketing Date.

     “Remarketing Election Period” means the period beginning at 9:00 a.m. (New York City time) on
the Business Day immediately following the Remarketing Notice Date and ending at 5:00 p.m. (New
York City time) on the tenth Business Day immediately following the Remarketing Notice Date;
provided, however, that such time period may be adjusted by the Company to facilitate compliance
with applicable law.

     “Remarketing Notice Date” means the earlier of (i) the fifth Business Day after December 15,
2046 and (ii) the fifth Business Day after the Effective Date of the first occurrence of a Change
of Control.

     “Remarketing Settlement Date” means the third Business Day immediately following the related
Remarketing Date.

     “Reset Effective Date” means the third Business Day immediately following a Successful
Remarketing or a Final Failed Remarketing, as the case may be.

     “Reset Rate” means:

     (i) in the case of a Successful Remarketing, (a) for each series of Perpetual Preferred
Stock, issued on or prior to the Reset Effective Date, the rate per annum (rounded to the
nearest one-thousandth (0.001) of one percent per annum) which the Remarketing Agent has
determined, in its reasonable judgment, is the lowest fixed annual rate enabling it to
remarket all of the Perpetual Preferred Stock of such series tendered for sale in the
Remarketing at a price equal to at least the sum of (x) 100% of the $1,000 Liquidation
Preference per share of Perpetual Preferred Stock tendered, (y) an amount equal to any
Accumulated Dividends, and (z) the remarketing agent fee provided for in the Remarketing
Agreement per share of Perpetual Preferred Stock; provided, however, that the Company may
determine to reset the Dividend Rate to a floating annual rate based on 3-Month LIBOR that
the Remarketing Agent determines, in its reasonable judgment, is the lowest such floating
rate that will enable it to so remarket the Perpetual Preferred Stock, so long as the
determination to use a floating rate is not, in the reasonable judgment of the Remarketing
Agent, likely to adversely affect the ability of the Remarketing Agent to remarket the
Perpetual Preferred Stock; and (b) for each series

A- 11

 

of Perpetual Preferred Stock, issued after the Reset Effective Date, a rate determined
by the Remarketing Agent to be the rate that would have resulted in a successful remarketing
of such series at the time of the Remarketing; and

     (ii) in the case of a Final Failed Remarketing, a floating rate per annum equal to
3-Month LIBOR plus 400 basis points;

provided, however, that the Reset Rate shall in no event be less than the Initial Rate or exceed
the maximum rate permitted by applicable law.

     “Second Remarketing Date” means the eleventh Trading Day after the last day of the Remarketing
Election Period.

     “Senior Shares” means each series or class of the Company’s stock established after the date
hereof, the terms of which expressly provide that such series or class shall rank senior to the
Perpetual Preferred Stock as to dividend rights or rights upon the liquidation, winding-up or
dissolution of the Company.

     “Subsidiary” means, with respect to any Person, (i) any corporation, association or other
business entity of which more than 50% of the outstanding voting stock is owned, directly or
indirectly, by the Company or by one or more Subsidiaries, or by the Company and one or more
Subsidiaries and (ii) any partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only general partners of which
are such Person or one or more Subsidiaries of such Person (or any combination thereof). For the
purposes of this definition only, “voting stock” means stock which ordinarily has voting power for
the election of directors, whether at all times or only so long as no senior series or class of
stock has such voting power by reason of any contingency.

     “Successful Remarketing” has the meaning assigned to such term in Section 10(e).

     “Third Remarketing Date” means the 16th Trading Day following the last day of the
Remarketing Election Period.

     “3-Month LIBOR” means, with respect to the second London Banking Day prior to the Reset
Effective Date:

     (i) the rate for 3-month deposits in United States dollars commencing on the Reset
Effective Date, as that rate appears on Moneyline Telerate Page 3750 as of 11:00 a.m.
(London time) on the determination date, unless fewer than two such offered rates so appear;

     (ii) if fewer than two offered rates appear, or no rate appears, as the case may be, on
the determination date on Moneyline Telerate Page 3750, the rate calculated by the
Remarketing Agent based on at least two offered quotations after requesting the principal
London offices of each of four major reference banks in the London interbank market to
provide the Remarketing Agent with its offered quotations for deposits in United States
dollars for the period of three months commencing on the Reset Effective Date, to prime
banks in the London interbank market at approximately 11:00 a.m. (London time) on that

A- 12

 

date and in a principal amount that is representative for a single transaction in
United States dollars in that market at that time;

     (iii) if fewer than two offered quotations referred to in clause (ii) are provided as
requested, the rate calculated by the Remarketing Agent as the arithmetic mean of the rates
quoted at approximately 11:00 a.m. (New York City time) on the determination date by three
major banks in New York City selected by the Remarketing Agent for loans in United States
dollars to leading European banks for a period of three months and in a principal amount
that is representative for a single transaction in United States dollars in that market at
that time; or

     (iv) if the banks so selected by the Remarketing Agent are not quoting as described in
clause (iii), 3-Month LIBOR as it has been most recently determined in accordance with these
provisions and, if 3-Month LIBOR has not been previously determined, the existing Dividend
Rate on the Perpetual Preferred Stock.

     “Trading Day” means any day on which the NYSE or, if the Company’s Common Stock is not listed
on the NYSE, the principal U.S. stock exchange or interdealer quotation system on which the
Company’s Common Stock is listed, admitted for trading or quoted, is open for trading or, if the
Company’s Common Stock is not so listed, admitted for trading or quoted, any Business Day. If the
Company’s Common Stock is so listed, admitted for trading or quoted, Trading Days only include
those days that have a scheduled closing time of 4:00 p.m. (New York City time) or the then
standard closing time for regular trading on the relevant exchange or interdealer quotation system
and do not include any day on which any suspension or limitation imposed on trading (by reason of
movements in price exceeding limits permitted by the NYSE or otherwise) in the Company’s Common
Stock or in any options, contracts or future contracts relating to the Company’s Common Stock,
occurs or exists for more than one half hour in the aggregate if such suspension or limitation
occurs or exists at any time before 1:00 p.m. (New York City time) on such day.

     “Transfer Agent” initially means American Stock Transfer and Trust Company. The Company may,
in its sole discretion, remove the Transfer Agent with 10 days prior notice to the Transfer Agent;
provided that the Company shall appoint a successor Transfer Agent who shall accept such
appointment prior to the effectiveness of such removal.

     “Trigger Determination Date” has the meaning given to such term in the definition of Mandatory
Trigger Event above.

     “Warrant and Preferred Stock Settlement Mechanism” has the meaning assigned to such term in
Section 11(a).

     “Warrant Cap” has the meaning assigned to such term in Section 11(a).

     4. Ranking. The Perpetual Preferred Stock shall, with respect to dividend rights or
rights upon the liquidation, winding-up or dissolution of the Company, rank (a) senior to all
Junior Shares, including, without limitation, Common Stock, (b) on a parity with all Parity Shares,
(c) junior to any Senior Shares and (d) junior to all of the Company’s existing and future debt
obligations.

A-13 

 

     5. Dividend Rights.

	 	(a)	 	The Holders of outstanding shares of Perpetual Preferred Stock shall be
entitled to receive dividends, when, as and if declared by the Board of Directors
out of funds legally available for that purpose under Delaware law, at the Dividend
Rate as applied to the Liquidation Preference. Dividends on shares of Perpetual
Preferred Stock shall accumulate from their Issue Date and, when, as and if
declared by the Board of Directors, shall be payable semi-annually or, in
connection with any Remarketing, quarterly, in cash on a cumulative basis on each
Dividend Payment Date out of funds legally available therefor. If any Dividend
Payment Date is not a Business Day, then dividends shall be payable on the first
Business Day following such Dividend Payment Date, without accrual to the actual
payment date.
	 
	 	(b)	 	Dividends shall be paid to the Holders of the Perpetual Preferred Stock
on the applicable Dividend Record Date. The Dividend Record Date shall apply
regardless of whether any particular Dividend Record Date is a Business Day.
	 
	 	(c)	 	Dividends payable on the Perpetual Preferred Stock on each Dividend
Payment Date shall be computed (1) for any full Dividend Period, on the basis of a
360-day year of twelve 30-day months and (2) for any period shorter than a full
Dividend Period, on the basis of 30-day months and, for periods less than a 30-day
month, on the basis of the actual number of days elapsed.
	 
	 	(d)	 	Dividends on the Perpetual Preferred Stock shall be cumulative.
	 
	 	(e)	 	Any Perpetual Preferred Stock issued upon any conversion of Convertible
Debentures in respect of which interest payments have been deferred shall, at the
time of its issuance, have Accumulated Dividends equal to the amount of such
deferred interest, including any compounded interest thereon.
	 
	 	(f)	 	So long as any shares of Perpetual Preferred Stock remain outstanding,
unless the full dividends for the most recently ended Dividend Period on all
outstanding Perpetual Preferred Stock and Parity Shares and the full dividends for
all prior Dividend Periods on all outstanding Perpetual Preferred Stock and all
cumulative Parity Shares have been declared and paid (or declared and a sum
sufficient for the payment thereof has been set aside for payment): (i) no dividend
whatsoever shall be declared or paid on the Junior Shares or Parity Shares; and
(ii) no Junior Shares or Parity Shares shall be purchased, redeemed or otherwise
acquired for consideration by the Company, directly or indirectly, in each case
other than as described in the following subparagraphs (1)-(9) :

(1) purchases of the Company’s Capital Stock in connection with employee or
agent benefit plans or under any dividend reinvestment plan;

(2) purchases or repurchases of the Company’s Capital Stock pursuant to any
contractually binding requirement to buy stock existing prior to the first
scheduled dividend declaration date upon which a dividend was not declared,
including under a contractually binding stock repurchase plan;

A-14 

 

(3) in connection with the reclassification of any series or class of the
Company’s Capital Stock, or the exchange or conversion of one series or class of
the Company’s Capital Stock for or into another series or class of the Company’s
Capital Stock, in each case if the resulting Capital Stock ranks equal or junior
to the Capital Stock so reclassified, exchanged or converted;

(4) the purchase of fractional interests in shares of the Company’s Capital
Stock in connection with the conversion or exchange provisions of that Capital
Stock or the security being converted or exchanged;

(5) dividends or distributions in the form of the Company’s Capital Stock or
rights to acquire the Company’s Capital Stock, to the extent that the dividend
stock or stock underlying the dividend rights is the same series or class as the
stock on which the dividend is being paid or ranks equal to or junior to such
stock;

(6) any declaration of a dividend in connection with the implementation of a
shareholders’ rights plan, or issuances of Capital Stock under any such plan in
the future, or redemptions or repurchases of any rights outstanding under a
shareholders’ rights plan;

(7) acquisitions of the Company’s Capital Stock previously issued in connection
with acquisitions of businesses made by the Company (which acquisitions are made
by the Company in connection with the satisfaction of indemnification
obligations of the sellers of such businesses);

(8) the payment of any dividend during a Mandatory Extension Period within 60
days after the date of declaration thereof, if at the date of declaration no
Accumulated Dividends existed and the Mandatory Trigger Event related to the
Mandatory Extension Period had not yet occurred; or

(9) dividends paid on Parity Shares to the extent that dividends are paid on a
proportionate or pro rata basis (based on accumulated dividends per share of the
Perpetual Preferred Stock and such Parity Shares) on the Perpetual Preferred
Stock and such Parity Shares.

	 	(g)	 	During any period in which a Mandatory Trigger Event exists (a
“Mandatory Extension Period”), the Company shall be prohibited from declaring
dividends on the Perpetual Preferred Stock other than those paid using funds
obtained through the Warrant and Preferred Stock Settlement Mechanism described in
Section 11 hereof.

     (h) While a Mandatory Trigger Event exists or at any time after the Company has failed to
declare and pay dividends on the Perpetual Preferred Stock for a period of five consecutive years,
and until the Mandatory Trigger Event ends or all Accumulated Dividends have been paid in full, as
the case may be, the Company shall be obligated to use the Warrant and Preferred Stock Settlement
Mechanism described in Section 11 hereof to raise funds to pay all Accumulated Dividends through
the most recent Dividend Payment Date and shall, subject to

A-15 

 

Section 11(e) hereof, declare dividends using APM Eligible Proceeds raised thereby, out of
funds legally available therefor.

     (i) Notwithstanding the foregoing provisions of this Section 4, in the event of the Company’s
bankruptcy, insolvency or receivership, whether voluntary or not, Holders of Perpetual Preferred
Stock shall have no claim to Accumulated Dividends that accumulated while a Mandatory Trigger Event
occurred and was continuing, to the extent the amount of such Accumulated Dividends exceeds two
years of dividends on the Perpetual Preferred Stock (“Foregone Dividends”), and the amount of
Accumulated Dividends on any outstanding series of Perpetual Preferred Stock shall be reduced by
the amount of the Foregone Dividends on such series.

     6. Voting Rights.

	 	(a)	 	The Perpetual Preferred Stock shall have no voting rights except as
provided in this Section 5 and as required by Delaware law from time to time.
	 
	 	(b)	 	So long as any shares of Perpetual Preferred Stock remain outstanding,
unless a greater percentage shall then be required by applicable law, the Company
shall not, without the affirmative vote or written consent of the Holders of at
least 66-2/3% of the aggregate Liquidation Preference of all series of the
Perpetual Preferred Stock then outstanding:

	 	(i)	 	authorize or issue any series or class of Senior Shares
(or any security convertible into or exchangeable for Senior Shares);
	 
	 	(ii)	 	amend the Certificate of Incorporation of the Company
in a manner that would alter or change the powers, preferences or special
rights of the shares of Perpetual Preferred Stock so as to affect them
adversely; or

     (iii) consummate a merger or consolidation of the Company with another corporation or
other entity, the sole purpose of which is to effect a change in the terms of the Perpetual
Preferred Stock.

For the avoidance of doubt, the Company may (i) create, authorize, increase the authorized amount
of, or issue any series or class of Parity Shares or Junior Shares, and (ii) increase or decrease
the number of authorized shares of any series of Perpetual Preferred Stock in accordance with
Section 1 hereof, in each case without the affirmative vote or written consent of the Holders of
the Perpetual Preferred Stock, and in taking such actions the Company shall not be deemed to have
materially adversely affected the specified rights, preferences or privileges of the Holders of the
Perpetual Preferred Stock.

	 	(c)	 	So long as any shares of Perpetual Preferred Stock remain outstanding,
noncompliance in any particular instance with any provision of this Certificate of
Designations may be waived, in each case with the affirmative vote or written
consent of the Holders of at least 66-2/3% of the aggregate Liquidation Preference
of all series of the Perpetual Preferred Stock then outstanding. In the event any
provision is so waived, no Holder of the Perpetual Preferred Stock shall have such
right.

A-16 

 

	 	(d)	 	Whenever a Non-payment shall occur, the Holders of the Perpetual
Preferred Stock then outstanding and all series of Appointing Preferred Shares then
outstanding, acting together as a single series or class, shall be entitled to the
appointment of a total of two additional members to the Board of Directors (each, a
“Preference Share Director”) (the “Appointing Rights”); provided that the
appointment of any such directors shall not cause the Company to violate the
corporate governance requirement of the NYSE as applied to United States issuers
(or any other securities exchange or automated quotation system on which securities
of the Company may be then listed) that listed companies must have a majority of
independent directors; and provided, further, that in no event shall the Holders of
the Perpetual Preferred Stock be entitled pursuant to this paragraph to appointment
rights in respect of more than two directors in the aggregate. In the event of a
Non-payment, the number of members of the Board of Directors shall automatically
increase by two. The Preference Share Directors shall be elected by the Holders of
at least a majority of the aggregate liquidation preference of the Perpetual
Preferred Stock and any Appointing Preferred Shares voting together as a single
class at a special meeting called at the written request of any Holder of Perpetual
Preferred Stock or Appointing Preferred Shares (the Company being required to call
such meeting within 35 days of the date of such request if the Non-payment
continues, failing which any Holder may call such meeting) by notice mailed to all
Holders of Perpetual Preferred Stock and Appointing Preferred Shares. Whether a
majority of our Perpetual Preferred Stock and any Appointing Preferred Shares have
been affirmatively voted in favor of an appointment shall be determined by
reference to the aggregate liquidation preference of the Perpetual Preferred Stock
and any Appointing Preferred Shares affirmatively voted at the meeting called to
exercise the Appointing Rights.

     The Board of Directors shall determine which class or classes, as applicable, of directors the
Preference Share Directors shall be a part of and shall allocate the Preference Share Directors to
the class or classes, as applicable, having the longest terms of office remaining at the time of
such appointment. Each Preference Share Director shall be entitled to one vote per director on any
matter.

     So long as a Non-payment shall continue, any vacancy in the office of a Preference Share
Director (other than prior to the initial appointment of Preference Share Directors after a
Non-payment) may be filled by the vacating Preference Share Director or, if no designation is made,
pursuant to an exercise of the Appointing Rights of the Holders of at least a majority of the
aggregate liquidation preference of the Perpetual Preferred Stock then outstanding and any other
Appointing Preferred Shares then outstanding, acting together as a single class.

     At the conclusion of any Non-payment, the Holders of the Perpetual Preferred Stock shall be
divested of the Appointing Rights (subject to revesting of the Appointing Rights in the event of
any future Non-payment) and, if and when the Appointing Rights of the Holders of the Perpetual
Preferred Stock shall have ceased, the term of the Preference Share Directors (notwithstanding the
class of directors such Preference Share Directors shall be a part of) shall terminate forthwith
and the number of directors constituting the Board of Directors shall automatically be reduced by
two.

A-17 

 

     7. Liquidation Rights.

	 	(a)	 	In the event of any liquidation, winding-up or dissolution of the
Company, whether voluntary or involuntary, the Holders of the Perpetual Preferred
Stock shall be entitled to receive and to be paid out of the assets of the Company
available for distribution to its stockholders, after satisfaction of all
indebtedness, after satisfaction of the liquidation preference of any Senior Shares
of the Company and before any payment or distribution shall be made on the Common
Stock or any other Junior Shares, the Liquidation Preference plus an amount equal
to Accumulated Dividends, if any, and undeclared dividends to the date fixed for
liquidation, winding-up or dissolution, less Foregone Dividends, if any
(collectively, the “Liquidation Distribution”).
	 
	 	(b)	 	After the payment to the Holders of the Perpetual Preferred Stock of
the Liquidation Distribution to which such Holders are entitled as provided for in
this Section 6, the Holders of Perpetual Preferred Stock as such shall have no
right or claim to any of the remaining assets of the Company.
	 
	 	(c)	 	If, upon any voluntary or involuntary liquidation, winding-up or
dissolution of the Company, the amounts payable with respect to the Perpetual
Preferred Stock and any Parity Shares are not paid in full upon such liquidation,
winding-up or dissolution, the Holders of the Perpetual Preferred Stock and of such
Parity Shares shall share equally and ratably in any such distribution of assets of
the Company in proportion to the full respective liquidation preferences and
accumulated dividends to which they are entitled upon such liquidation.
	 
	 	(d)	 	Neither the sale, assignment, transfer or lease of all or substantially
all the assets or business of the Company nor the merger or consolidation of the
Company into or with any other person shall be deemed to be a voluntary or
involuntary liquidation, winding-up or dissolution, voluntary or involuntary, for
the purposes of this Section 6.

     8. Redemption.

	 	(a)	 	The Company must redeem the Perpetual Preferred Stock, in whole but not
in part, at the Redemption Price, plus an amount equal to any Accumulated
Dividends, out of funds legally available for that purpose under Delaware law, if
the Company elects to terminate a Remarketing on any day prior to a Remarketing
Date. The Company must give a written notice of redemption pursuant to this
paragraph by first class mail, postage prepaid to the Holders of the Perpetual
Preferred Stock at their addresses set forth in the Register on the date that the
Company elects to terminate the Remarketing; provided however, that, in each case,
if the Perpetual Preferred Stock is held as Global Perpetual Preferred Shares
deposited with or on behalf of DTC, the Company may give such notice of redemption
in any manner permitted by DTC.
	 
	 	(b)	 	The Company may, at any time, redeem the Perpetual Preferred Stock, in
whole but not in part, at the Redemption Price, plus an amount equal to any
Accumulated Dividends, out of funds legally available for that purpose under
Delaware law. The Company must give a written notice of redemption pursuant

A-18 

 

	 	 	 	to this paragraph by first class mail, postage prepaid to the Holders of the
Perpetual Preferred Stock at their addresses set forth in the Register at least 30
days and not more than 60 days before the date fixed for redemption; provided
however, that, in each case, if the Perpetual Preferred Stock is held as Global
Perpetual Preferred Shares deposited with or on behalf of DTC, the Company may give
such notice of redemption in any manner permitted by DTC.
	 
	 	(c)	 	If the Convertible Debentures are then outstanding and are redeemable
in accordance with the terms thereof, the Company may, at any time, redeem the
Perpetual Preferred Stock, in part, at the Redemption Price, plus an amount equal
to any Accumulated Dividends, out of funds legally available for that purpose under
Delaware law, pro rata (as to the outstanding Perpetual Preferred Stock and as to
each series thereof), by lot or by other equitable method, if the Company
concurrently redeems the Convertible Debentures in the same proportion as the
Perpetual Preferred Stock. The Company must give a written notice of redemption
pursuant to this paragraph by first class mail, postage prepaid to the Holders of
the Perpetual Preferred Stock at their addresses set forth in the Register at least
30 days and not more than 60 days before the date fixed for redemption; provided
however, that, in each case, if the Perpetual Preferred Stock is held as Global
Perpetual Preferred Shares deposited with or on behalf of DTC, the Company may give
such notice of redemption in any manner permitted by DTC.
	 
	 	(d)	 	A notice of redemption shall state:

	 	(i)	 	the Redemption Date;
	 
	 	(ii)	 	the number of shares of Perpetual Preferred Stock to be
redeemed;
	 
	 	(iii)	 	the CUSIP, ISIN or similar number or numbers of the
Perpetual Preferred Stock to be redeemed;
	 
	 	(iv)	 	the Redemption Price and the amount of Accumulated
Dividends, if any; and
	 
	 	(v)	 	if certificated Perpetual Preferred Stock has been
issued, the place or places where Holders may surrender certificates
evidencing the Perpetual Preferred Stock for payment of the Redemption
Price plus an amount equal to Accumulated Dividends, if any.

Any notice made as provided in this paragraph shall be conclusively presumed to have been duly
given, whether or not a Holder receives such notice, but failure duly to give such notice, or any
defect in such notice or in the mailing of such notice, to any holder of Perpetual Preferred Stock
designated for redemption shall not affect the redemption of any other shares of Perpetual
Preferred Stock.

	 	(e)	 	On or prior to the Redemption Date, the Company shall deposit with the
Paying Agent an amount in immediately available funds sufficient to pay the
aggregate Redemption Price plus an amount equal to any Accumulated Dividends;
provided that if such payment is deposited on the Redemption Date, it must be
received by the Paying Agent by 10:00 a.m. (New York City time) on the Redemption
Date.

A-19 

 

	 	 	 	An amount equal to the Redemption Price and an amount equal to any Accumulated
Dividends shall be paid to the Holders promptly following the later of (i) the
Redemption Date and (ii) the time of book-entry transfer or surrender of the
certificate(s) evidencing such Perpetual Preferred Stock to the Paying Agent, as
applicable.
	 
	 	(f)	 	If notice of redemption has been duly given and the Paying Agent holds,
on or before the Redemption Date, immediately available funds sufficient to pay the
aggregate Redemption Price plus an amount equal to any Accumulated Dividends, then
as of the Redemption Date:

	 	(i)	 	dividends shall cease to be payable on such Perpetual
Preferred Stock;
	 
	 	(ii)	 	all such Perpetual Preferred Stock shall no longer be
deemed outstanding; and
	 
	 	(iii)	 	all rights with respect to such Perpetual Preferred
Stock shall cease and terminate, except only the right of the Holders to
receive an amount equal to the Redemption Price plus an amount equal to any
Accumulated Dividends out of funds legally available for that purpose.

	 	(g)	 	In connection with a Remarketing, the Company may determine optional
redemption provisions to become applicable to the Perpetual Preferred Stock
following the Remarketing; provided, however, that such provisions are not, in the
reasonable judgment of the Remarketing Agent, likely to adversely affect the
Remarketing. Following a Remarketing, the shares of Perpetual Preferred Stock
shall be redeemable at the option of the Company out of funds legally available
therefor upon such terms determined by the Board of Directors prior to the
Remarketing and set forth in the notice required by Section 10(c).

     9. Maturity.

The Perpetual Preferred Stock has no stated maturity.

     10. Remarketing Triggers and Notice.

	 	(a)	 	The Company shall give notice to the Holders of the Perpetual Preferred
Stock on the Remarketing Notice Date, which notice must state the circumstances
under which the notice is given pursuant to the definition of Remarketing Notice
Date herein, and that such Holders of Perpetual Preferred Stock may, during the
Remarketing Election Period, elect to tender such Perpetual Preferred Stock for
sale in a Remarketing, which shall be commenced on the date that is the Initial
Remarketing Date if the Company does not elect to redeem the Perpetual Preferred
Stock prior to such date.

     11. Remarketing.

	 	(a)	 	After December 15, 2046 or earlier upon the first occurrence of a
Change of Control at a time when shares of Perpetual Preferred Stock are
outstanding, the Holders shall be entitled to tender their Perpetual Preferred
Stock, in whole or in part, for sale in a remarketing as described below (a
“Remarketing”). Holders

A-20 

 

	 	 	 	that do not submit a notice of election during the Remarketing Election Period in
accordance with Section 10(b) may not participate in the Remarketing.

     If none of the Holders of Perpetual Preferred Stock elects to tender their Perpetual
Preferred Stock for sale in a Remarketing during the Remarketing Election Period, the Dividend
Rate shall not be reset, and shall continue to equal the Initial Rate.

	 	(b)	 	To tender for sale in a Remarketing Perpetual Preferred Stock held as a
beneficial interest in Global Perpetual Preferred Shares deposited with or on
behalf of DTC, a Holder must deliver, during the Remarketing Election Period, to
DTC, the appropriate instruction form to submit a notice of election to tender for
sale in a Remarketing to the Company. In the case of a Remarketing upon a Change
of Control, to tender for sale in such Remarketing Perpetual Preferred Stock that
is to be received upon settlement of a conversion of Convertible Debentures being
converted in connection with the Change of Control, the Holder must deliver, during
the Remarketing Election Period, to the Transfer Agent, a notice of election,
substantially in the form of Exhibit B attached hereto. Any notice of election
submitted shall be irrevocable and may not be conditioned upon the level at which
the Reset Rate is established in the Remarketing.
	 
	 	(c)	 	Promptly after 5:00 p.m. (New York City time) on the last day of the
Remarketing Election Period, the Company shall, based on the notices of election
received by it prior to such time, determine those shares of Perpetual Preferred
Stock that are eligible for Remarketing and immediately provide DTC (or any
successor clearing agency) and the Remarketing Agent with a notice of Remarketing,
setting forth:

	 	(i)	 	the total number of shares of Perpetual Preferred Stock
to be tendered for sale in the Remarketing;
	 
	 	(ii)	 	the Initial Remarketing Date;
	 
	 	(iii)	 	whether the Perpetual Preferred Stock will be
remarketed at a fixed or floating rate;
	 
	 	(iv)	 	any revised optional redemption provisions that will
apply to the Perpetual Preferred Stock effective as of the Remarketing
Settlement Date; and
	 
	 	(v)	 	the changes, if any, to the method of dividend payment
that will apply to the Perpetual Preferred Stock effective as of the
Remarketing Settlement Date.

	 	(d)	 	On the Initial Remarketing Date, the Remarketing Agent shall use its
commercially reasonable efforts to remarket each series of Perpetual Preferred
Stock (including any Perpetual Preferred Stock issued upon conversion of
Convertible Debentures for purposes of Remarketing in connection with a Change of
Control) at the lowest fixed rate per annum (unless the Company has determined to
remarket at a floating rate based on 3-Month LIBOR that the Remarketing Agent
determines, in its reasonable judgment, is the lowest such floating rate that will
enable it to so remarket the Perpetual Preferred Stock, provided that such
determination to remarket at a floating rate does not, in the reasonable judgment
of the Remarketing Agent, adversely affect the Remarketing) that enables it to
remarket all of the Perpetual Preferred Stock of

A-21 

 

	 	 	 	such series tendered for sale at a price, per share of Perpetual Preferred Stock,
equal to at least the sum of (x) 100% of the $1,000 Liquidation Preference per share
of Perpetual Preferred Stock tendered, (y) an amount equal to any Accumulated
Dividends, and (z) the remarketing agent fee provided for in the Remarketing
Agreement per share of Perpetual Preferred Stock. If the Remarketing Agent cannot
remarket all the Perpetual Preferred Stock tendered for sale on the Initial
Remarketing Date at such a price, then no Perpetual Preferred Stock shall be sold
and the Remarketing Agent shall use its commercially reasonable efforts to do so on
the Second Remarketing Date. If the Remarketing Agent cannot remarket all the
Perpetual Preferred Stock tendered for sale on the Second Remarketing Date at such a
price, then no Perpetual Preferred Stock shall be sold and the Remarketing Agent
shall use its commercially reasonable efforts to do so on the Third Remarketing
Date. If the Remarketing Agent cannot remarket all the Perpetual Preferred Stock
tendered for sale on the Third Remarketing Date at such a price, then no Perpetual
Preferred Stock shall be sold and the Remarketing Agent shall use its commercially
reasonable efforts to do so on the Final Remarketing Date. In no event shall the
Remarketing Agent remarket the Perpetual Preferred Stock tendered for sale at a
fixed rate per annum that is lower than the Initial Rate or exceeds the maximum rate
permitted by applicable law. If on the Final Remarketing Date the Remarketing Agent
cannot remarket all the Perpetual Preferred Stock tendered for sale at such a price,
then no Perpetual Preferred Stock shall be sold.
	 
	 	(e)	 	If, on or prior to 4:00 p.m. (New York city time) on a Remarketing
Date, as a result of efforts described in Section 10(d), the Remarketing Agent
determines that it is able to remarket all Perpetual Preferred Stock tendered for
sale, a successful Remarketing (a “Successful Remarketing”) shall have occurred.
	 
	 	(f)	 	If, as of 4:00 p.m. (New York City time) on the Final Remarketing Date,
the Remarketing Agent is unable to remarket all Perpetual Preferred Stock tendered
for sale, (i) a final failed Remarketing (the “Final Failed Remarketing”) shall be
deemed to have occurred, (ii) the Remarketing Agent shall determine the Reset Rate
in accordance with clause (ii) of the definition of that term herein (subject to
the last proviso in that definition); and (iii) the Remarketing Agent shall so
advise by telephone or e-mail DTC and the Company by approximately 4:30 p.m. (New
York City time) on the Final Remarketing Date.
	 
	 	(g)	 	By approximately 4:30 p.m. (New York City time) on a Remarketing Date,
the Remarketing Agent shall advise, by telephone or e-mail (i) each DTC participant
or record holder that is purchasing or selling Perpetual Preferred Stock in the
Remarketing and the Company of whether a Successful Remarketing has occurred and if
so, the Reset Rate determined in the Remarketing and the number of shares of
remarketed Perpetual Preferred Stock sold; (ii) each purchaser of remarketed
Perpetual Preferred Stock (or the DTC participant thereof) of the Reset Rate and
the number of shares of remarketed Perpetual Preferred Stock such purchaser is to
purchase; and (iii) each purchaser to give instructions to its DTC participant to
pay the purchase price on the Remarketing Settlement Date in same day funds

A-22 

 

	 	 	 	against delivery of the remarketed Perpetual Preferred Stock purchased through the
facilities of the DTC participant.

	 	(h)	 	The Company shall cause a notice of the Reset Rate to be communicated
to Holders through DTC and published on the Company’s corporate Internet site on
the third Business Day immediately following the Final Remarketing Date.
	 
	 	(i)	 	The Company must use its commercially reasonable efforts to effect a
Remarketing. If the Company does not effect a Remarketing, a Final Failed
Remarketing shall be deemed to have occurred. Notwithstanding the foregoing, the
Company may elect to terminate a Remarketing on any day prior to a Remarketing Date
by giving notice of such termination to DTC and the Remarketing Agent; provided,
however, that if the Company so elects to terminate a Remarketing, it must redeem
the Perpetual Preferred Stock pursuant to Section 7 hereof.
	 
	 	(j)	 	The right of each holder of Perpetual Preferred Stock or Convertible
Debentures convertible into Perpetual Preferred Stock to have Perpetual Preferred
Stock tendered for sale in a Remarketing shall be limited to the extent that:

	 	(i)	 	the Remarketing Agent conducts a Remarketing in
accordance with the provisions of this Section 10;
	 
	 	(ii)	 	the Remarketing Agent is able to find a purchaser or
purchasers for tendered Perpetual Preferred Stock at the Reset Rate; and
	 
	 	(iii)	 	such purchaser or purchasers deliver the purchase
price of the remarketed Perpetual Preferred Stock to the Remarketing Agent.

     The Remarketing Agent shall not be obligated to purchase, but shall not be prohibited from
purchasing, any of the Perpetual Preferred Stock that would otherwise remain unsold in the
Remarketing. Neither the Company nor the Remarketing Agent shall be obligated in any case to
provide funds to make payment for the Perpetual Preferred Stock tendered for sale.

	 	(k)	 	All Global Perpetual Preferred Shares tendered for sale in a
Remarketing shall be automatically delivered to the account of the Remarketing
Agent through the facilities of DTC against payment of the purchase price for such
Perpetual Preferred Stock on the Remarketing Settlement Date.
	 
	 	(l)	 	The Company may elect to effect a Remarketing settlement only if the
Perpetual Preferred Stock, at the time if effects a Remarketing settlement, is
issued solely in global, fully registered form to DTC. A Remarketing shall be
terminated and shall not be consummated if, after the Company has initiated a
remarketing but prior to the related Remarketing Settlement Date, the Perpetual
Preferred Stock is no longer issued solely in global, fully registered form to DTC,
in which case the Company must redeem the Perpetual Preferred Stock pursuant to
Section 7 hereof.
	 
	 	(m)	 	The Company shall be liable for, and shall pay, any and all costs and
expenses incurred in connection with the Remarketing.

A-23 

 

     12. Warrant and Preferred Stock Settlement Mechanism

	 	(a)	 	Commencing at the date (i) on which a Mandatory Trigger Event occurs or
(ii) that is five years following the last date on which the Company paid dividends
on the Perpetual Preferred Stock in accordance with Section 4 hereof, and
continuing until the Mandatory Trigger Event ends or all Accumulated Dividends have
been paid in full through the most recent Dividend Payment Date, as the case may
be, the Company shall issue and sell Qualifying Warrants and Qualifying Preferred
Stock to third parties that are not Subsidiaries of the Company (the “Warrant and
Preferred Stock Settlement Mechanism”) in amounts sufficient to result in APM
Eligible Proceeds at least equal to the amount of Accumulated Dividends through the
most recent Dividend Payment Date, and shall apply such APM Eligible Proceeds to
the payment of such Accumulated Dividends to the extent that the payment of
dividends is consistent with Delaware law; provided that the Company shall not be
required to sell Qualifying Warrants or Qualifying Preferred Stock during the
occurrence and continuation of a Market Disruption Event and, provided, further,
that (x) the Company shall not be required to sell additional Qualifying Warrants
to the extent that the number of shares of the Company’s Common Stock underlying
Qualifying Warrants sold pursuant to this Section 11 and pursuant to the First
Supplemental Indenture would exceed 84,000,000 shares (subject to adjustment as
provided in paragraph (b) below) in the aggregate (the “Warrant Cap”) and (y) the
Company shall not sell additional Qualifying Preferred Stock to the extent that the
aggregate liquidation preference assigned to all such Qualifying Preferred Stock
sold pursuant to this Section 11 and pursuant to the First Supplemental Indenture
would exceed 25% of the aggregate principal amount of the Convertible Debentures at
the time of their original issuance (the “Preferred Stock Cap”).
	 
	 	(b)	 	If the issued and outstanding shares of the Company’s Common Stock
shall have been changed into a different number of shares or a different class by
reason of any stock split, reverse stock split, stock dividend, reclassification,
recapitalization, split-up, combination, exchange of shares or other similar
transaction, then the Warrant Cap will be correspondingly adjusted.
	 
	 	(c)	 	Subject to the fiduciary duties of its directors, the Company shall be
required to use commercially reasonable efforts to seek shareholder consent to
increase the number of authorized shares of Preferred Stock or Common Stock, as the
case may be, if such consent is required to avoid a Market Disruption Event.
Qualifying Preferred Stock “Available for Issuance” shall be determined at any time
by (i) deducting from the number of the Company’s authorized and unissued shares of
Preferred Stock the maximum number of such shares that can be issued under existing
reservations and commitments under which the Company is able to determine such
maximum number and (ii) allocating remaining authorized shares of Preferred Stock
on a pro rata basis, or such other basis as the Company determines is appropriate,
to the Warrant and Preferred Stock Settlement Mechanism and to any other similar
reservation or commitment that is of an indeterminate nature and under which the
Company is then required to issue shares. Common Stock “Available for Issuance”
shall be determined at any time

A-24 

 

	 	 	 	by subtracting from the number of the Company’s authorized and unissued shares of
Common Stock the number of those shares of Common Stock that the Company is unable
to issue due to their reservation or commitment for other purposes.

	 	(d)	 	Neither the Warrant Cap nor the Preferred Stock Cap shall relieve the
Company of its obligation to issue the number of Qualifying Warrants or Qualifying
Preferred Stock that the Company can issue without breach thereof and to apply the
proceeds thereof in partial payment of Accumulated Dividends.
	 
	 	(e)	 	APM Eligible Proceeds shall be applied to the payment of Accumulated
Dividends only after all deferred interest on the Convertible Debentures, including
compounded interest thereon, is paid in full.

               (f) If the Company has outstanding Parity Shares under the terms of which the Company is
obligated to sell Qualifying Warrants or Qualifying Preferred Stock and apply the net proceeds
to payment of accumulated dividends thereon, then on any date and for any period the amount of
net proceeds received by us from such sales and available for payment of Accumulated Dividends
will be applied to the Perpetual Preferred Stock and such Parity Shares on a pro rata basis in
accordance with the amount of respective accumulated dividends thereon.

     13. Currency of Payments.

     Any cash payments with respect to the Perpetual Preferred Stock shall be paid in United States
dollars in immediately available funds.

     14. Form.

	 	(a)	 	The Perpetual Preferred Stock shall be issued initially in the form of
one or more fully registered global certificates (“Global Perpetual Preferred
Shares”), each as set forth on the form of Perpetual Preferred Stock certificate
attached hereto as Exhibit A, which is hereby incorporated in and expressly made a
part of this Certificate of Designations. Each Global Perpetual Preferred Share
certificate may have notations, legends or endorsements required by law, stock
exchange rules, agreements to which the Company is subject, if any, or usage
(provided that any such notation, legend or endorsement is in a form acceptable to
the Company). The Global Perpetual Preferred Shares shall be deposited on behalf
of the holders of the Perpetual Preferred Stock represented thereby with the
Registrar, as custodian for DTC (or with such other custodian as DTC may direct),
and registered in the name of Cede & Co., as nominee of DTC, duly executed by the
Company and countersigned by the Registrar as hereinafter provided. The aggregate
number of shares of Perpetual Preferred Stock represented by Global Perpetual
Preferred Shares may from time to time be increased or decreased by adjustments
made on the records of the Registrar and DTC or its nominee as hereinafter
provided.

     In the event Global Perpetual Preferred Shares are deposited with or on behalf of DTC, the
Company shall execute, and the Registrar shall countersign and deliver, initially one or more
Global Perpetual Preferred Shares certificates that (a) shall be registered in the name of Cede &

A-25 

 

Co. or another nominee of the Depositary and (b) shall be delivered by the Registrar to DTC
or, pursuant to DTC’s instructions, held by the Registrar as custodian for DTC. Members of, or
participants in, DTC (“Agent Members”) shall have no rights under this Certificate of Designations
with respect to any Global Perpetual Preferred Shares held on their behalf by DTC or by the
Registrar as the custodian of DTC or under such Global Perpetual Preferred Shares, and DTC may be
treated by the Company, the Registrar and any agent of the Company or the Registrar as the absolute
owner of such Global Perpetual Preferred Shares for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Registrar or any agent of the Company or
the Registrar from giving effect to any written certification, proxy or other authorization
furnished by DTC or impair, as between DTC and its Agent Members, the operation of customary
practices of DTC governing the exercise of the rights of a holder of a beneficial interest in any
Global Perpetual Preferred Shares.

	 	(b)	 	Owners of beneficial interests in Global Perpetual Preferred Shares
shall not be entitled to receive physical delivery of certificated Perpetual
Preferred Stock, unless:

	 	(i)	 	DTC is unwilling or unable to continue as Depositary
for the Global Perpetual Preferred Shares and the Company does not appoint
a qualified replacement for DTC within 90 calendar days;
	 
	 	(ii)	 	DTC ceases to be a “clearing agency” registered under
the Exchange Act; or
	 
	 	(iii)	 	the Company decides to discontinue the use of
book-entry transfer through DTC (or any successor Depositary).

In any such case, the Global Perpetual Preferred Shares shall be exchanged in whole for
certificated Perpetual Preferred Stock in registered form, with the same terms and of an equal
aggregate liquidation preference (unless the Company determines otherwise in accordance with
applicable law). Certificated Perpetual Preferred Stock shall be registered in the name or names
of the Person or Persons specified by DTC in a written instrument to the Registrar.

	 	(c)	 	An Officer shall sign the Perpetual Preferred Stock certificate for the
Company by manual or facsimile signature. If the Officer whose signature is on a
Perpetual Preferred Stock certificate no longer holds that office at the time the
Registrar countersigns the Perpetual Preferred Stock certificate, the Perpetual
Preferred Stock certificate shall be valid nevertheless.

     A Perpetual Preferred Stock certificate shall not be valid until an authorized signatory of
the Registrar signs the Perpetual Preferred Stock certificate by manual or facsimile signature.
The signature shall be conclusive evidence that the Perpetual Preferred Stock certificate has been
countersigned under this Certificate of Designations.

     15. Registration; Transfer.

	 	(a)	 	Notwithstanding any provision to the contrary herein, so long as any
Global Perpetual Preferred Shares remain outstanding and are held by or on behalf
of the Depositary, transfers of Global Perpetual Preferred Shares, in whole or in
part, or of any beneficial interest therein, shall only be made in accordance with
this Section 14.

A-26 

 

	 	(b)	 	Transfers of Global Perpetual Preferred Shares shall be limited to
transfers of such Global Perpetual Preferred Shares in whole, but not in part, to
nominees of the Depositary or to a successor of the Depositary or such successor’s
nominee.

     16. Calculations and Determinations in Respect of Perpetual Preferred Stock.

     The Company shall be responsible for making all calculations called for in respect of the
Perpetual Preferred Stock, including, but not limited to, the determination of the dividends
payable on the Perpetual Preferred Stock. Any calculations made in good faith and without manifest
error shall be final and binding on Holders. The Company or its agents shall be required to
deliver to the Paying Agent a schedule of its calculations and determinations and the Paying Agent
shall be entitled to rely upon the accuracy of such calculations without independent verification.
The Paying Agent shall forward such calculations and any determinations made under this Certificate
of Designations to any Holder upon the request of the Holder.

     17. Severability.

     In the event any provision of this Certificate of Designations shall be invalid, unenforceable
or illegal, then, to the fullest extent permitted by applicable law, the validity, enforceability
and legality of the remaining provisions shall not in any way be affected or impaired thereby, and
the unaffected terms shall be the terms of the Perpetual Preferred Stock.

     IN WITNESS WHEREOF, the Company has caused this Certificate of Designations to be signed and
attested by the undersigned this December 19, 2006.

	 	 	 	 	 	 	 
	 	 	PEABODY ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	Attestation:                                         

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

A-27 

 

EXHIBIT A

FORM OF

SERIES B PERPETUAL PREFERRED STOCK

FACE OF SECURITY

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

     TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE CERTIFICATE OF DESIGNATIONS REFERRED TO BELOW.

     IN CONNECTION WITH ANY TRANSFER, THE HOLDER SHALL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH REGISTRAR AND TRANSFER AGENT MAY REASONABLY REQUIRE
TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.]1

     The Shares of Series B-1 through B-8,000 Perpetual Preferred Stock are subject to certain
restrictions on transfer and ownership set forth in the Certificate of Designations, a copy of
which will be furnished by the Company without charge to each stockholder who so requests.

	 	 	 
	 

	 	Number of Shares of Series B
	Certificate Number

	 	Perpetual Preferred Stock
	[                     ]

	 	[                     ]

 

			
	1	 	This legend should be included only if the
share certificate evidences Global Perpetual Preferred Shares.

A-28 

 

CUSIP NO.:[ ]

Series B Perpetual Preferred Stock

(par value $0.01 per share)

(liquidation preference $1,000 per share)

of

PEABODY ENERGY CORPORATION

     PEABODY ENERGY CORPORATION, a Delaware corporation (the “Company”), hereby certifies that [                    ]2 (the “Holder”) is the registered owner of or such number as is indicated in the
records of the Registrar and the Depositary]3 fully paid and non-assessable shares of
Series B-1 through Series B-8,000 Perpetual Preferred Stock (par value $0.01 per share)
(liquidation preference $1,000 per share) (the “Perpetual Preferred Stock”) issued by the Company.
The Perpetual Preferred Stock is transferable on the books and records of the Registrar, in person
or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper
form for transfer. The powers, designations, rights, privileges, restrictions, preferences and
other terms and provisions of the Perpetual Preferred Stock represented hereby are issued and shall
in all respects be subject to the provisions of the Certificate of Designations dated December 19,
2006, as the same may be amended from time to time (the “Certificate of Designations”).
Capitalized terms used herein but not defined shall have the meaning given them in the Certificate
of Designations. The Company will provide a copy of the Certificate of Designations to a Holder
without charge upon written request to the Company at its principal place of business.

     Reference is hereby made to select provisions of the Perpetual Preferred Stock set forth on
the reverse hereof, and to the Certificate of Designations, which select provisions and the
Certificate of Designations shall for all purposes have the same effect as if set forth at this
place.

     Upon receipt of this certificate, the Holder is bound by the Certificate of Designations and is
entitled to the benefits thereunder. Unless the Registrar has properly countersigned, this
Perpetual Preferred Stock shall not be entitled to any benefit under the Certificate of
Designations or be valid or obligatory for any purpose.

 

			
	2	 	This phrase should be included only if the
share certificate evidences certificated Perpetual Preferred Stock.
	 
	3	 	This phrase should be included only if the
share certificate evidences Global Perpetual Preferred Shares.

A-29 

 

     IN WITNESS WHEREOF, the Company has executed this certificate this                     day of
                     ,                      .

	 	 	 	 	 	 	 
	 	 	PEABODY ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

A-30 

 

REGISTRAR’S COUNTERSIGNATURE

     These are shares of Perpetual Preferred Stock referred to in the within-mentioned Certificate
of Designations.

     Dated:

	 	 	 	 	 	 	 
	 	 	[ l ], as Registrar,	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

A-31 

 

REVERSE OF SECURITY

     Dividends on each share of Perpetual Preferred Stock shall be payable at a rate per annum set
forth on the face hereof or as provided in the Certificate of Designations out of funds legally
available therefor.

     The Perpetual Preferred Stock shall be mandatorily redeemed, in whole but not in part, in the
manner and in accordance with the terms set forth in the Certificate of Designations. The
Perpetual Preferred Stock shall be redeemable at the Company’s option, in whole or, in certain
circumstances, in part, in each case in the manner and accordance with the terms set forth in the
Certificate of Designations. The Perpetual Preferred Stock shall be subject to a Remarketing in
the manner and accordance with the terms set forth in the Certificate of Designations.

     The Company will furnish without charge to each holder who so requests the powers,
designations, preferences and relative, participating, optional or other special rights of each
series or class of share capital and the qualifications, limitations or restrictions of such
preferences and/or rights.

     All Perpetual Preferred Stock tendered for sale in a Remarketing shall be automatically
delivered to the account of the Remarketing Agent through the facilities of DTC against payment of
the purchase price for such Perpetual Preferred Stock on the Remarketing Settlement Date.

A-32 

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers the Perpetual Preferred Stock
evidenced hereby to:

 

 

 

(Insert assignee’s social security or tax identification number)

(Insert address and zip code of assignee) and irrevocably appoints:

 

 

 

agent to transfer the Perpetual Preferred Stock evidenced hereby on the books of the Transfer
Agent. The agent may substitute another to act for him or her.

Date:                                                            

Signature:                                                            

(Sign exactly as your name appears on the other side of this Perpetual Preferred Stock certificate)

Signature Guarantee:                                        

(Signature must be guaranteed by an “eligible guarantor institution” that is a bank, stockbroker,
savings and loan association or credit union meeting the requirements of the Transfer Agent, which
requirements include membership or participation in the Securities Transfer Agents Medallion
Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer
Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.)

A-33 

 

EXHIBIT B 

NOTICE OF ELECTION TO TENDER PERPETUAL PREFERRED STOCK

FOR SALE IN A REMARKETING

[ l ], as Transfer Agent

[ l ]

[ l ]

[ l ]

[ l ]

Attention: [ l ]

Telecopy: [ l ]

	 	 	 	 	 
	 

	 	Re:
	 	Series B Perpetual Preferred Stock, par value $0.01 per share,
of Peabody Energy Corporation, a Delaware corporation (the “Company”)

     The undersigned Holder hereby irrevocably notifies you in accordance with Section 10(b) of the
Certificate of Designations of the Perpetual Preferred Stock (the “Certificate of Designations”;
unless otherwise defined herein, terms defined in the Certificate of Designations are used herein
as defined therein), that (i) it is a Holder of the Company’s 4.75% Convertible Junior Subordinated
Debentures (the “Convertible Debentures”) that it has surrendered for conversion in connection with
a Change of Control and that pursuant to such conversion it shall become a Holder of Perpetual
Preferred Stock, and (ii) it is electing to tender for sale in the Remarketing Perpetual Preferred
Stock.

Date:

Signature:    
              
                
                
     

Guarantee:    
              
                
                
     

Please print name and address of Registered Holder:

	 	 	 	 	 
	 

Name

	 	 

Social Security or other Taxpayer
Identification Number, if any
	 	 
	 
	 	 	 	 
	Address
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

A-34 

 

EXHIBIT B

[Form of Face of Debenture]

[THIS DEBENTURE IS A GLOBAL DEBENTURE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF CEDE & CO. AS NOMINEE OF THE DEPOSITORY TRUST COMPANY (THE
“DEPOSITARY”), OR A NOMINEE OF THE DEPOSITARY. THIS DEBENTURE IS EXCHANGEABLE FOR DEBENTURES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS DEBENTURE (OTHER THAN A TRANSFER
OF THIS DEBENTURE AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY) MAY BE REGISTERED
UNLESS AND UNTIL THIS DEBENTURE IS EXCHANGED IN WHOLE OR IN PART FOR DEBENTURES IN DEFINITIVE FORM.
UNLESS (A) THIS DEBENTURE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO PEABODY
ENERGY CORPORATION OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, (B) ANY
DEBENTURE ISSUED IS REGISTERED IN THE NAME REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY AND (C) ANY PAYMENT HEREON IS MADE TO U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE, OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY, AND EXCEPT AS
OTHERWISE PROVIDED IN THE INDENTURE, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]1

 

			
	1	 	Include for Global Debentures.

B-1 

 

4.75% CONVERTIBLE JUNIOR SUBORDINATED DEBENTURE DUE 2066

	 	 	 	 	 
	 

	 	 	 	CUSIP        
	 

	 	 	 	ISIN           
	No.                    

	 	 	 	$                 

PEABODY ENERGY CORPORATION

     This Debenture is one of a duly authorized series of Securities of PEABODY ENERGY CORPORATION
(the “Debentures”), all issued under and pursuant to an indenture (the “Base Indenture”) dated as
of December 20, 2006, duly executed and delivered by PEABODY ENERGY CORPORATION, a Delaware
corporation (the “Company,” which term includes any successor corporation under the Indenture, as
hereinafter referred to), and U.S. Bank National Association (the “Trustee”), as supplemented by
the First Supplemental Indenture thereto dated as of December 20, 2006 (the “First Supplemental
Indenture,” and together with the Base Indenture, the “Indenture”), between the Company and the
Trustee, to which Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and immunities thereunder of
the Trustee, the Company and the Holders of the Debentures.

     The
Company, for value received, hereby promises to pay to
                                         or its
registered assigns, the principal sum of                     U.S. Dollars ($                                                    
        ) on
the Final Maturity Date of the Debentures, subject to the Company’s obligation in certain
circumstances to make all or part of such payment earlier in accordance with Section 2.10 of the
First Supplemental Indenture and subject to the further condition that the Debentures may be
earlier redeemed by the Company pursuant to Section 2.9 of the First Supplemental Indenture or
converted by the Holders thereof pursuant to Section 2.15 and Section 2.16 of the First
Supplemental Indenture.

     Subject to Section 2.5, Section 2.6, Section 2.7 and Section 2.8 of the First Supplemental
Indenture, Interest Payment Dates shall be June 15 and December 15, commencing on June 15, 2007.

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

B-2 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be signed manually or by
facsimile by its duly authorized officer.

	 	 	 	 	 
	 	PEABODY ENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title 	 
	 

	 	 	 	 	 
	This is one of the [Global]	 	 
	Debentures referred to in the	 	 
	within-mentioned Indenture:	 	 
	 
	 	 	 	 
	U.S. Bank National Association,	 	 
	as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 
	Dated                     , 20___	 	 

B-3 

 

[Form of Reverse of Debenture]

4.75% CONVERTIBLE JUNIOR SUBORDINATED DEBENTURE DUE 2066

     To the extent permitted by applicable law, to the extent that any rights or other provisions
of this Debenture differ from or are inconsistent with those contained in the Indenture, then the
Indenture shall control. Capitalized terms used herein but not defined shall have the meanings
assigned to them in the Indenture unless otherwise indicated.

     1. Interest. Peabody Energy Corporation, a Delaware corporation (including any successor
corporation under the Indenture hereinafter referred to, the “Company”), promises to pay interest
on the principal amount of this Debenture at the Debenture Interest Rate (as defined below) from
December 20, 2006 to the Final Maturity Date or such earlier date as this Debenture is paid in
accordance with Section 2.10 of the First Supplemental Indenture, redeemed in accordance with
Section 2.9 of the First Supplemental Indenture or converted in accordance with Section 2.15 and
Section 2.16 of the First Supplemental Indenture.

     Subject to Section 2.5, Section 2.6, Section 2.7 and Section 2.8 of the First Supplemental
Indenture, this Debenture will accrue interest at a rate per annum of 4.75% of the principal amount
hereof (the “Debenture Interest Rate”), payable semi-annually in arrears on June 15 and December 15
of each year (each an “Interest Payment Date”), commencing on June 15, 2007. Interest not paid on
any Interest Payment Date, including any interest deferred during any Extension Period, will accrue
and compound semi-annually at the Debenture Interest Rate, to the extent permitted by applicable
law, as provided in the Indenture. Subject to Section 2.5(a)(ii) of the First Supplemental
Indenture, such interest will accrue and compound to the date that it is actually paid.

     The amount of interest on this Debenture payable for any Interest Payment Date shall be
computed (i) for any full Interest Payment Period, on the basis of a 360-day year of twelve 30-day
months, (ii) for any period shorter than a full Interest Payment Period, on the basis of 30-day
months and (iii) for any period shorter than a 30-day month, on the basis of the actual number of
days elapsed in that period.

     2. Method of Payment. For so long as the Debenture is held in book-entry-only form, interest
shall be paid on each Interest Payment Date to the Person in whose name the Debenture is registered
in the Security Register at 5:00 p.m., New York City time, on the last Business Day prior to the
Interest Payment Date (each such date a “Regular Record Date”). In the event that the Debenture is
no longer held in book-entry-only form or is not represented by Global Securities, the Company may
select different Regular Record Dates, which must each be at least 15 Business Days before the
relevant Interest Payment Date.

     Payment of principal of and interest on the Debenture shall be made, the transfer of the
Debenture will be registrable and the Debenture will be exchangeable for Debentures of other
denominations of a like principal amount at the office or agency of the Trustee maintained for such
purpose, initially the Corporate Trust Office. Payment of any principal and interest on Debentures
issued as Global Debentures[, including this Debenture,]2 shall be payable by the

 

			
	2	 	Include for Global Debentures.

B-4 

 

Company through the Paying Agent to the Depositary in immediately available funds. At the
Company’s option, interest on Debentures issued in physical form may be payable (i) by a U.S.
dollar check drawn on a bank in The City of New York mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register, or (ii) upon application to the
Security Registrar not later than 10 days before the Interest Payment Date by a Holder of
Debentures having an aggregate principal amount in excess of $2,000,000, by wire transfer in
immediately available funds, which application shall remain in effect until the Holder of
Debentures notifies, in writing, the Security Registrar to the contrary.

     3. Paying Agent, Registrar and Conversion Agent. Initially, U.S. Bank National Association,
the Trustee under the Indenture, will act as Paying Agent, Registrar and Conversion Agent. The
Company may change any Paying Agent, Registrar or Conversion Agent without notice to any Holder.
The Company or any of its Subsidiaries may act in any such capacity.

     4. Indenture. The terms of this Debenture include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”).
This Debenture is subject to all such terms, and Holders are referred to the Indenture and the TIA
for a statement of all such terms. To the extent any provision of this Debenture conflicts with
the express provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. This Debenture is an obligation of the Company.

     5. Optional Deferral of Interest. Subject to Section 2.8 and Section 3.2 of the First
Supplemental Indenture, as long as no Event of Default has occurred and is continuing, and as long
as no Mandatory Trigger Event has occurred and no Mandatory Extension Period caused thereby is
continuing, the Company shall have the right at any time and from time to time, to defer payments
of interest on this Debenture by extending the Interest Payment Period on the Debenture for a
period not exceeding 10 years, in the aggregate, following the Interest Payment Date on which
interest was deferred (an “Optional Extension Period”). During an Optional Extension Period,
Deferred Interest on this Debenture shall not be due and payable, except to the extent of APM
Eligible Proceeds available pursuant to Section 2.10(e) of the First Supplemental Indenture, if
applicable, but will continue to accrue and compound semi-annually, to the extent permitted by
applicable law, at the Debenture Interest Rate.

     If a Mandatory Trigger Event occurs on or after commencement of an Optional Extension Period,
the Optional Extension Period shall be deemed suspended for so long as the Mandatory Extension
Period is continuing and the provisions of Section 2.7 of the First Supplemental Indenture shall
apply. Upon the termination of such Mandatory Extension Period, the Optional Extension Period will
continue.

     An Optional Extension Period shall terminate on such date as all accrued and unpaid interest,
together with Compounded Interest, if any, has been paid by the Company, provided that in no event
shall an Optional Extension Period (regardless of whether a Mandatory Extension Period causes the
extension of such Optional Extension Period) extend beyond the date which is 10 years following the
commencement of the Optional Extension Period, beyond the Redemption Date or beyond the Final
Maturity Date of this Debenture. Upon termination of an Optional Extension Period, the Company may
commence a new Optional Extension Period,

B-5 

 

subject to the other conditions in Section 2.6 of the First Supplemental Indenture, there
being no limit to the number of such new Optional Extension Periods the Company may elect.

     During an Optional Extension Period, the Company shall be subject to the covenants set forth
in Section 3.1 of the First Supplemental Indenture.

     (b) 6. Mandatory Deferral of Interest. Subject to Section 2.8 and Section 3.2 of the First
Supplemental Indenture, if and to the extent that a Mandatory Trigger Event has occurred and is
continuing as of any Trigger Determination Date, and regardless of the election by the Company
prior thereto to optionally defer interest payments pursuant to Section 2.6 of the First
Supplemental Indenture, the Company shall be required to defer payments of interest on this
Debenture beginning on the Interest Payment Date immediately following such Trigger Determination
Date, thereby extending the Interest Payment Period on the Debenture until (but not including) the
first subsequent Interest Payment Date for which no Mandatory Trigger Event has occurred as of the
Trigger Determination Date applicable to such Interest Payment Date, but in any event for a period
not extending beyond the date which is 10 years following commencement of the applicable Extension
Period (a “Mandatory Extension Period”). During a Mandatory Extension Period, Deferred Interest on
this Debenture shall not be due and payable, except to the extent of APM Eligible Proceeds
available pursuant to Section 2.10(e) of the First Supplemental Indenture, but will continue to
accrue and compound semi-annually, to the extent permitted by applicable law, at the Debenture
Interest Rate.

     (c) During a Mandatory Extension Period, the Company shall be subject to the covenants set
forth in Section 3.1 and Section 3.2 of the First Supplemental Indenture.

     By acquiring this Debenture or an interest herein, each Holder or beneficial owner of the
Debenture, as the case may be, agrees that in the event of a default pursuant to Section
2.11(a)(iv) of the First Supplemental Indenture prior to the Final Maturity Date or redemption,
repayment pursuant to Section 2.10 of the First Supplemental Indenture or conversion of the
Debenture, any unpaid Mandatorily Deferred Interest, or Compounded Interest on Mandatorily Deferred
Interest, in excess of the amount of such interest that is equal to two years of accrued and unpaid
interest (including Compounded Interest on the two earliest years of Mandatorily Deferred Interest)
on the Debenture (the “Foregone Interest”) shall not be due and payable and no such Holder or
beneficial owner will have any claim for, and thus any right to receive, such Foregone Interest;
provided that such limitation shall not reduce the amounts holders of Senior Indebtedness would
have been entitled to receive in the absence thereof.

     (d) 7. Deferral of Interest in General. Any Deferred Interest will in all events be due and
payable upon the Final Maturity Date, subject, in the case of Foregone Interest, to Section 2.7(e)
of the First Supplemental Indenture.

     (e) At the termination of any Extension Period, the Company shall pay all Deferred Interest
then accrued and unpaid, together with Compounded Interest, on the Interest Payment Date on which
such Extension Period terminates. Unless otherwise terminated pursuant to Section 2.6(f) or
Section 2.7(g) of the First Supplemental Indenture, an Extension Period will be deemed to
terminate upon any redemption or upon any acceleration of the Final Maturity Date.

B-6 

 

     In no event shall any Extension Period (i) exceed 10 consecutive years following the first
Interest Payment Date on which any interest payment was deferred pursuant to Section 2.6 or Section
2.7 of the First Supplemental Indenture, (ii) unless Deferred Interest is satisfied using the
Warrant and Preferred Stock Settlement Mechanism, end on a date other than an Interest Payment
Date, (iii) extend beyond the Redemption Date, or (iv) extend beyond the Final Maturity Date. For
purposes of determining compliance with the foregoing limitation on any Extension Period, (x) only
when all Deferred Interest has been paid shall any Extension Period end; and (y) after the
commencement of an Extension Period, the period from the first Interest Payment Date for which
interest is deferred pursuant to Section 2.6 or Section 2.7 of the First Supplemental Indenture and
ending on the date on which all Deferred Interest, including Compounded Interest, is paid in full,
shall be included for purposes of calculating the length of an Extension Period.

     (f) 8. Optional Right of Redemption. Subject to certain conditions specified in Section 2.9
of the First Supplemental Indenture, the Company may redeem this Debenture at the option of the
Company, in whole or in part, (i) between December 20, 2011 and December 19, 2036, at any time at
which the Closing Sale Price of the Common Stock for at least 20 Trading Days in the 30 consecutive
Trading Day period ending on the date one Trading Day prior to the day the Company gives a notice
of redemption is greater than 130% of the Conversion Price applicable to the relevant Trading Day
and (ii) on or after December 20, 2036 at any time, in each case at a redemption price in cash
equal to the Par Redemption Amount.

     (g) 9. Notice of Redemption. Each notice that this Debenture is being redeemed pursuant to
the Indenture, shall, in addition to setting forth the information required pursuant to Section
11.02 of the Base Indenture, state that the Debenture is being redeemed pursuant to the Indenture
and set forth the facts permitting such redemption and, if less than all outstanding Debentures are
to be redeemed, to the extent that the Debentures are not all held in global form, shall identify
the particular Debentures to be redeemed.

     (h) Notwithstanding the provisions of Section 11.02 of the Base Indenture, if this Debenture
is held in book-entry form through DTC, the Company may give notice of redemption in any manner
permitted by DTC. Any notice of redemption, once given by the Company, shall be irrevocable.

     (i) 10. No Sinking Fund. The Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the securities.

     (j) 11. Scheduled Maturity. To the extent that this Debenture remains Outstanding, on each
Repayment Date, the principal amount of, and all accrued and unpaid interest on, this Debenture
shall be payable in full, provided that in the event the Company has delivered an Officers’
Certificate to the Trustee pursuant to and in accordance with clause (d) of Section 2.10 of the
First Supplemental Indenture in connection with such Repayment Date, (A) the amounts of principal
and interest in respect of the Debenture that the Company is obligated to pay on such Repayment
Date, if any, shall be the amounts set forth in the notice of repayment accompanying such
Officers’ Certificate and (B) such amounts of principal and interest in respect of the Debenture
shall be due and payable on such Repayment Date pursuant to Section 2.10 of the First
Supplemental Indenture. In the event that the Company does not

B-7 

 

deliver an Officers’ Certificate to the Trustee on or prior to the tenth Business Day
immediately preceding any Repayment Date, the entire principal of, and all accrued and unpaid
interest on, this Debenture shall be due and payable on such Repayment Date.

     (k) To the extent that this Debenture remains Outstanding, the principal of, and all accrued
and unpaid interest on, this Debenture shall be due and payable on the Final Maturity Date.

     (l) The obligation of the Company to repay the Debenture pursuant to Section 2.10 of the First
Supplemental Indenture on any date prior to the Final Maturity Date shall be subject to (A) its
obligations under Article Fourteen of the Base Indenture as amended by the First Supplemental
Indenture to the holders of Senior Indebtedness and (B) its obligations under Section 2.7 of the
First Supplemental Indenture with respect to the payment of Mandatorily Deferred Interest.

     (m) 12. Conversion. Subject to and upon compliance with the provisions of the Indenture, on
or prior to December 15, 2041 (or, if that is not a Trading Day, the first Trading Day thereafter),
any Holder shall have the right, at such Holder’s option, to convert such Holder’s interest in this
Debenture, or any portion thereof with an aggregate principal amount that is a multiple of $1,000,
into, as provided in the First Supplemental Indenture, cash, Perpetual Preferred Stock, Common
Stock or a combination thereof, at the Conversion Rate in effect on the Conversion Date, by
surrender of the interest in this Debenture so to be converted in whole or in part, together with
any required funds, under the circumstances and in the manner described in Section 2.15 and Section
2.16 of the First Supplemental Indenture; provided, however, that at any time prior to the close of
business on December 15, 2036, conversion rights may only be exercised during the periods and under
the conditions specified in clauses (i) through (v) of Section 2.15(a) of the First Supplemental
Indenture:

     The right to convert this Debenture will expire at 5:00 p.m., New York City time, on December
15, 2041 (or, if that is not a Trading Day, the first Trading Day thereafter).

     (n) Debentures and portions of Debentures that are to be redeemed pursuant to Section 2.9 of
the First Supplemental Indenture shall cease to be convertible by the Holder thereof at 5:00 p.m.,
New York City Time, on the Business Day immediately preceding the Redemption Date unless the
Company defaults in the payment of the redemption price.

     (o) Whenever this Debenture shall become convertible pursuant to Section 2.15 of the First
Supplemental Indenture, the Company or, at the Company’s request, the Trustee in the name and at
the expense of the Company, shall notify the Holders of the event triggering such convertibility in
the manner provided in Section 17.02 and Section 17.03 of the Base Indenture, and the Company shall
also publicly announce such information and publish it on the Company’s Internet site or otherwise
publicly disclose it.

     13. Denomination, Transfer and Exchange. The Debentures are only in fully registered form
without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations herein and therein set forth, Debentures so

B-8 

 

issued are exchangeable for a like aggregate principal amount of Debentures of a different
authorized denomination, as requested by the Holder surrendering the same.

     As provided in the Indenture and subject to certain limitations therein set forth, this
Debenture is transferable by the registered Holder hereof on the Security Register of the Company,
upon surrender of this Debenture for registration of transfer at the office or agency of the
Trustee accompanied by a written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee, duly executed by the registered Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Debentures of authorized denominations and for
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be made for any such transfer, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in relation thereto.

     14. Subordination. The payment of principal of and interest on this Debenture is, to the
extent and in the manner provided in the Indenture, subordinated and subject in right of payment to
the prior payment in full of all amounts then due on all Senior Indebtedness of the Company, and
this Debenture is issued subject to such subordination provisions contained in the Indenture. Each
Holder of this Debenture, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on such Holder’s behalf to take such action as
may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the
Trustee such Holder’s attorney-in-fact for any and all such purposes.

     15. Amendments and Supplements. The Indenture provides for amendments, supplements and
waivers with respect to the Indenture as set forth in Article Nine and Section 10.08 of the Base
Indenture, as supplemented by Section 2.25 of the First Supplemental Indenture.

     16. Covenants. The Indenture specifies covenants of the Company with respect to the
Debentures, as set forth in Article Ten of the Base Indenture as supplemented by Article III of the
First Supplemental Indenture.

     17. Persons Deemed Owners. The registered Holder of this Debenture shall be treated as its
owner for all purposes.

     18. Modification of Indenture. With the consent (evidenced as provided in Section 1.02 of
the Base Indenture) of the Holders of not less than a majority in aggregate principal amount of the
Outstanding Debentures, the Company, when authorized by a Board Resolution, and the Trustee may
from time to time and at any time enter into an indenture or indentures supplemental to the
Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of the Indenture or of any supplemental indenture or of modifying in any manner
or eliminating any of the provisions of the Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of the Debentures; provided, however, that, no
such supplemental indenture shall, without the consent of the Holder of each Debenture affected,
(i) change the Scheduled Maturity Date or the Final Maturity Date, (ii) change the date of any
interest payment due upon the Debentures; (iii) reduce the principal amount of, or the interest on,
the Debentures; (iv) adversely affect the rights of the

B-9 

 

Holders to convert the Debentures; (v) reduce the amount of or change the form of
consideration due to Holders of the Debentures upon their conversion thereof; (vi) change the
currency of payment of the Debentures to a currency other than U.S. dollars; (vii) impair the right
to institute suit for the enforcement of any payment on the Debentures or adversely affect the
right of repayment, if any, at the option of the Holder; or (viii) reduce the percentage of holders
necessary to modify or amend the Indenture or to waive any past default.

     (p) 19. Events of Default and Covenant Defaults. Subject to the provisions of Article Five
of the Base Indenture and Section 2.11 of the First Supplemental Indenture, each of the following
events shall be an Event of Default with respect to this Debenture, giving rise to a right in
Holders hereof, subject to Section 5.02 of the Base Indenture, to declare the principal amount of
this Debenture plus accrued and unpaid interest to be due and payable immediately:

     (i) default for 30 calendar days in the payment of any interest on the
Debenture, including any Compounded Interest, when it becomes due and payable under
the Indenture; provided, however, that the deferral of interest during an Extension
Period satisfying Section 2.6 or Section 2.7 of the First Supplemental Indenture, as
applicable, and Section 2.8 of the First Supplemental Indenture, as applicable,
shall not constitute a default in the payment of interest;

     (ii) deferral of interest on the Debenture, due to a mandatory deferral or
optional deferral, or combination thereof, that continues for 10 consecutive years
after the date on which the Company began the deferral of interest without all
Deferred Interest, including any Compounded Interest, having been paid in full on or
prior to the day that is 30 days after the date that is 10 years after the
commencement of such deferral;

     (iii) default in the payment of the principal of the Debenture when due; or

     (iv) an Event of Default as set forth in clause (e) of Section 5.01 of the Base
Indenture.

     The Indenture provides for Covenant Defaults and remedies relating thereto with respect to the
Debentures as set forth in Article Five of the Base Indenture as supplemented by Section 2.12 of
the First Supplemental Indenture.

     20. Tax Treatment. Except with respect to withholding on payments of interest to non-U.S.
Holders, the Company agrees, and by acquiring an interest in a Debenture each beneficial owner of a
Debenture agrees, to treat the Debenture as indebtedness for U.S. federal income tax purposes.

     21. Governing Law. The Indenture and this Debenture shall be governed by, and construed in
accordance with, the laws of the State of New York

     22. Trustee Dealings with Company. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or its

B-10 

 

Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

     23. No Recourse Against Others. No recourse shall be had for the payment of the principal
of, or the interest on, this Debenture, or for any claim based hereon or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator, shareholder, officer
or director, past, present or future, as such, of the Company or of any successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part
of the consideration for the issuance hereof, expressly waived and released.

     24. Authentication. This Debenture shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     25. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     26. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Debentures and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Debentures or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

     27. Copies of Indenture. The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to:

Peabody Energy Corporation

701 Market Street

St. Louis, Missouri 63101-1826

Attention: Chief Legal Officer

B-11 

 

Assignment Form

To assign this Debenture, fill in the form below:

(I) or (we) assign and transfer this Debenture to

 

(Insert assignee’s soc. sec. or other tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint                                          as agent to transfer this Debenture on the books of the
Company. The agent may substitute another to act for him.

 

	 	 	 	 	 
	Date:                                        

	 	Your Signature:	 	 
	 

	 	 

	 
	 	 	 	 
	 	 	(Sign exactly as your name appears on the face of this Debenture)
	 
	 	 	 	 
	 

	 	Signature Guarantee:	 	 
	 

	 	 

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

B-12 

 

[SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL DEBENTURE

     The following exchanges of a part of this Global Debenture for an interest in another Global
Debenture or for a definitive Debenture, or exchanges of a part of another Global Debenture or
definitive Debenture for an interest in this Global Debenture, have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount	 	 	 	 
	 	 	Amount of	 	 	 	 	 	 	of this Global	 	 	Signature of	 
	 	 	decrease in	 	 	Amount of increase	 	 	Debenture	 	 	authorized	 
	 	 	Principal amount	 	 	in Principal	 	 	following such	 	 	signatory of	 
	 	 	of this Global	 	 	Amount of this	 	 	decrease (or	 	 	Trustee [or	 
	Date of Exchange	 	Debenture	 	 	Global Debenture	 	 	increase)	 	 	Custodian]	 
	]3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	3	 	Include for Global Debentures.

B-13

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