Document:

<PAGE>

EXHIBIT 10.1

                        ACE MARKETING & PROMOTIONS, INC.
                               457 ROCKAWAY AVENUE
                             VALLEY STREAM, NY 11581

                               September 21, 2007

              EXTENSION TO EMPLOYMENT AGREEMENT DATED MARCH 1, 2005

Dean L. Julia
Ace Marketing & Promotions, Inc.
457 Rockaway Avenue
Valley Stream, NY 11581

Re:     Employment Agreement - Dean L. Julia

Dear Mr. Julia:

        On August 22, 2007, the Board of Directors approved the following
resolutions:

RESOLVED, that the Board of Directors of the Corporation does hereby ratify,
adopt and approve a three-year extension of the employment contracts of each of
Dean Julia and Michael D. Trepeta to expire on February 28, 2011; and it was
further

        RESOLVED, that the amendment to each executive's employment shall
provide for the following additional provisions: o Continuation of current
annual salary with scheduled salary increases of $24,000 per annum to occur on
every anniversary date of the contract and extension thereof commencing on March
1, 2008;

                o       A signing bonus of options to purchase 150,000 shares
                        granted to each executive which is fully vested at the
                        date of grant and exercisable at $1.20 per share through
                        August 22, 2017;

                o       Ten-year options to purchase 50,000 shares of Common
                        Stock to be granted at fair market value on each
                        anniversary date of the contract and extension thereof
                        commencing March 1, 2008; and

                o       Termination pay of one-year base salary based upon the
                        scheduled annual salary of each executive officer for
                        the next contract year, plus the amount of bonuses paid
                        (or entitled to be paid) to the executive for the
                        current fiscal year or the preceding fiscal year,
                        whichever is higher;

and it was further

         RESOLVED, that all options granted to executives shall be non-statutory
stock options containing cashless exercise provisions and granted under the
Company's 2005 Employee Benefit And Consulting Services Compensation Plan.

<PAGE>

         By signing below, you agree to the Ace Board of Directors approved
resolutions of August 22, 2007 to amend your employment agreement dated March 1,
2005 in accordance with the resolutions stated above.

                                          Sincerely,

                                          ACE MARKETING & PROMOTIONS, INC.

                                          By: /s/ Michael D. Trepeta
                                             -------------------------------
                                                  Michael D. Trepeta, President

Agreed to and Accepted by:

/s/ Dean L. Julia
-------------------------------
    Dean L. Julia<PAGE>

EXHIBIT 10.2

                        ACE MARKETING & PROMOTIONS, INC.
                               457 ROCKAWAY AVENUE
                             VALLEY STREAM, NY 11581

                               September 21, 2007

              EXTENSION TO EMPLOYMENT AGREEMENT DATED MARCH 1, 2005

Michael D. Trepeta
Ace Marketing & Promotions, Inc.
457 Rockaway Avenue
Valley Stream, NY 11581

Re:     Employment Agreement - Michael D. Trepeta

Dear Mr. Trepeta:

        On August 22, 2007, the Board of Directors approved the following
resolutions:

RESOLVED, that the Board of Directors of the Corporation does hereby ratify,
adopt and approve a three-year extension of the employment contracts of each of
Dean Julia and Michael D. Trepeta to expire on February 28, 2011; and it was
further

        RESOLVED, that the amendment to each executive's employment shall
provide for the following additional provisions: o Continuation of current
annual salary with scheduled salary increases of $24,000 per annum to occur on
every anniversary date of the contract and extension thereof commencing on March
1, 2008;

          o    A signing bonus of options to purchase 150,000 shares granted to
               each executive which is fully vested at the date of grant and
               exercisable at $1.20 per share through August 22, 2017;

          o    Ten-year options to purchase 50,000 shares of Common Stock to be
               granted at fair market value on each anniversary date of the
               contract and extension thereof commencing March 1, 2008; and

          o    Termination pay of one-year base salary based upon the scheduled
               annual salary of each executive officer for the next contract
               year, plus the amount of bonuses paid (or entitled to be paid) to
               the executive for the current fiscal year or the preceding fiscal
               year, whichever is higher;

and it was further

        RESOLVED, that all options granted to executives shall be non-statutory
stock options containing cashless exercise provisions and granted under the
Company's 2005 Employee Benefit And Consulting Services Compensation Plan.

<PAGE>

         By signing below, you agree to the Ace Board of Directors approved
resolutions of August 22, 2007 to amend your employment agreement dated March 1,
2005 in accordance with the resolutions stated above.

                                              Sincerely,

                                              ACE MARKETING & PROMOTIONS, INC.

                                              By: /s/ Dean L.julia
                                                 ----------------------------
                                                      Dean L. Julia, Chief
                                                      Executive Officer

Agreed to and Accepted by:

/s/ Michael D. Trepeta
---------------------------------
Michael D. Trepetaexv4w1

 

Exhibit 4.1

PENFORD CORPORATION, Issuer

to

                                                              , Trustee

 

INDENTURE

Dated as of                                , 200

 

Debt Securities

 

 

Reconciliation and tie between Indenture, dated as of                                , 200   , and the Trust
Indenture Act of 1939, as amended.

	 	 	 
	Trust Indenture Act	 	Indenture
	of 1939 Section	 	Section
	 
	310(a)(1)
	 	6.12
	(a)(2)
	 	6.12
	(a)(3)
	 	TIA
	(a)(4)
	 	Not applicable
	(a)(5)
	 	TIA
	(b)
	 	6.10; 6.12; TIA
	 
	311(a)
	 	TIA
	(b)
	 	TIA
	 
	312(a)
	 	6.8
	(b)
	 	TIA
	(c)
	 	TIA
	 
	313(a)
	 	6.7; TIA
	(b)
	 	TIA
	(c)
	 	TIA
	(d)
	 	TIA
	 
	314(a)
	 	9.5; 9.6; TIA
	(b)
	 	Not applicable
	(c)(1)
	 	1.2
	(c)(2)
	 	1.2
	(c)(3)
	 	Not applicable
	(d)
	 	Not applicable
	(e)
	 	TIA
	(f)
	 	TIA
	 
	315(a)
	 	TIA
	(b)
	 	6.6
	(c)
	 	TIA
	(d)(1)
	 	TIA
	(d)(2)
	 	TIA
	(d)(3)
	 	TIA
	(e)
	 	TIA
	 
	316(a)(last sentence)
	 	1.1
	(a)(1)(A)
	 	5.2; 5.8
	(a)(1)(B)
	 	5.7
	(b)
	 	5.9; 5.10
	(c)
	 	TIA
	 
	317(a)(1)
	 	5.3
	(a)(2)
	 	5.4
	(b)
	 	9.3
	 
	318(a)
	 	1.11
	(b)
	 	TIA
	(c)
	 	1.11; TIA

 

			
	 	 	This reconciliation and tie section does not constitute part of the Indenture.

 

 

CONTENTS

	 	 	 	 	 
	ARTICLE 1 Definitions and Other Provisions of General Application
	 	 	1	 
	 
	Section 1.1 Definitions
	 	 	1	 
	 
	Section 1.2 Compliance Certificates and Opinions
	 	 	7	 
	 
	Section 1.3 Form of Document Delivered to Trustee
	 	 	8	 
	 
	Section 1.4 Acts of Holders
	 	 	8	 
	 
	Section 1.5 Notices, etc., to Trustee and Company
	 	 	9	 
	 
	Section 1.6 Notice to Holders; Waiver
	 	 	9	 
	 
	Section 1.7 Headings and Table of Contents
	 	 	10	 
	 
	Section 1.8 Successors and Assigns
	 	 	10	 
	 
	Section 1.9 Separability
	 	 	10	 
	 
	Section 1.10 Benefits of Indenture
	 	 	10	 
	 
	Section 1.11 Governing Law
	 	 	10	 
	 
	Section 1.12 Legal Holidays
	 	 	10	 
	 
	Section 1.13 No Recourse Against Others
	 	 	10	 
	 
	ARTICLE 2 Security Forms
	 	 	10	 
	 
	Section 2.1 Forms Generally
	 	 	10	 
	 
	Section 2.2 Form of Trustee’s Certificate of Authentication
	 	 	11	 
	 
	ARTICLE 3 The Securities
	 	 	11	 
	 
	Section 3.1 Amount Unlimited; Issuable in Series
	 	 	11	 
	 
	Section 3.2 Denominations
	 	 	13	 
	 
	Section 3.3 Execution, Authentication, Delivery and Dating
	 	 	13	 
	 
	Section 3.4 Temporary Securities
	 	 	14	 
	 
	Section 3.5 Registration, Registration of Transfer and Exchange
	 	 	15	 
	 
	Section 3.6 Replacement Securities
	 	 	16	 
	 
	Section 3.7 Payment of Interest; Interest Rights Preserved
	 	 	16	 
	 
	Section 3.8 Persons Deemed Owners
	 	 	17	 
	 
	Section 3.9 Cancellation
	 	 	17	 
	 
	Section 3.10 Computation of Interest
	 	 	17	 
	 
	Section 3.11 CUSIP Numbers
	 	 	17	 

-i-

 

	 	 	 	 	 
	ARTICLE 4 Satisfaction, Discharge and Defeasance
	 	 	18	 
	 
	Section 4.1 Termination of Company’s Obligations Under the Indenture
	 	 	18	 
	 
	Section 4.2 Application of Trust Funds
	 	 	18	 
	 
	Section 4.3 Applicability of
Defeasance Provisions; Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	19	 
	 
	Section 4.4 Defeasance and Discharge
	 	 	19	 
	 
	Section 4.5 Covenant Defeasance
	 	 	19	 
	 
	Section 4.6 Conditions to Defeasance or Covenant Defeasance
	 	 	19	 
	 
	Section 4.7 Deposited Money and Government Obligations to Be Held in Trust
	 	 	21	 
	 
	Section 4.8 Transfers and Distribution at Company Request
	 	 	21	 
	 
	ARTICLE 5 Defaults and Remedies
	 	 	21	 
	 
	Section 5.1 Events of Default
	 	 	21	 
	 
	Section 5.2 Acceleration, Rescission and Annulment
	 	 	22	 
	 
	Section 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	22	 
	 
	Section 5.4 Trustee May File Proofs of Claim
	 	 	23	 
	 
	Section 5.5 Trustee May Enforce Claims Without Possession of Securities
	 	 	23	 
	 
	Section 5.6 Delay or Omission Not Waiver
	 	 	23	 
	 
	Section 5.7 Waiver of Past Defaults
	 	 	23	 
	 
	Section 5.8 Control by Majority
	 	 	23	 
	 
	Section 5.9 Limitation on Suits by Holders
	 	 	23	 
	 
	Section 5.10 Rights of Holders to Receive Payment
	 	 	24	 
	 
	Section 5.11 Application of Money Collected
	 	 	24	 
	 
	Section 5.12 Restoration of Rights and Remedies
	 	 	24	 
	 
	Section 5.13 Rights and Remedies Cumulative
	 	 	24	 
	 
	ARTICLE 6 The Trustee
	 	 	25	 
	 
	Section 6.1 Certain Duties and Responsibilities
	 	 	25	 
	 
	Section 6.2 Rights of Trustee
	 	 	25	 
	 
	Section 6.3 Trustee May Hold Securities
	 	 	27	 
	 
	Section 6.4 Money Held in Trust
	 	 	27	 
	 
	Section 6.5 Trustee’s Disclaimer
	 	 	27	 
	 
	Section 6.6 Notice of Defaults
	 	 	27	 

-ii-

 

	 	 	 	 	 
	Section 6.7 Reports by Trustee to Holders
	 	 	27	 
	 
	Section 6.8 Securityholder Lists
	 	 	27	 
	 
	Section 6.9 Compensation and Indemnity
	 	 	27	 
	 
	Section 6.10 Replacement of Trustee
	 	 	28	 
	 
	Section 6.11 Acceptance of Appointment by Successor
	 	 	29	 
	 
	Section 6.12 Eligibility; Disqualification
	 	 	30	 
	 
	Section 6.13 Merger, Conversion, Consolidation or Succession to Business
	 	 	30	 
	 
	Section 6.14 Appointment of Authenticating Agent
	 	 	30	 
	 
	Section 6.15 Trustee’s Application for Instructions From the Company
	 	 	31	 
	 
	ARTICLE 7 Consolidation, Merger or Sale by the Company
	 	 	31	 
	 
	Section 7.1 Consolidation, Merger or Sale of Assets Permitted
	 	 	31	 
	 
	Section 7.2 No Limitations
	 	 	32	 
	 
	ARTICLE 8 Supplemental Indentures
	 	 	32	 
	 
	Section 8.1 Supplemental Indentures Without Consent of Holders
	 	 	32	 
	 
	Section 8.2 With Consent of Holders
	 	 	32	 
	 
	Section 8.3 Compliance With Trust Indenture Act
	 	 	33	 
	 
	Section 8.4 Execution of Supplemental Indentures
	 	 	33	 
	 
	Section 8.5 Effect of Supplemental Indentures
	 	 	33	 
	 
	Section 8.6 Reference in Securities to Supplemental Indentures
	 	 	33	 
	 
	ARTICLE 9 Covenants
	 	 	34	 
	 
	Section 9.1 Payment of Principal, Premium, if Any, and Interest
	 	 	34	 
	 
	Section 9.2 Maintenance of Office or Agency
	 	 	34	 
	 
	Section 9.3 Money for Securities to Be Held in Trust; Unclaimed Money
	 	 	34	 
	 
	Section 9.4 Corporate Existence
	 	 	35	 
	 
	Section 9.5 Reports by the Company
	 	 	35	 
	 
	Section 9.6 Annual Review Certificate; Notice of Default
	 	 	36	 
	 
	Section 9.7 Provision of Financial Statements
	 	 	36	 
	 
	Section 9.8 Limitations on Liens
	 	 	36	 
	 
	Section 9.9 Limitations on Sales and Leasebacks.
	 	 	36	 

-iii-

 

	 	 	 	 	 
	ARTICLE 10 Redemption
	 	 	37	 
	 
	Section 10.1 Applicability of Article
	 	 	37	 
	 
	Section 10.2 Election to Redeem; Notice to Trustee
	 	 	37	 
	 
	Section 10.3 Selection of Securities to Be Redeemed
	 	 	37	 
	 
	Section 10.4 Notice of Redemption
	 	 	37	 
	 
	Section 10.5 Deposit of Redemption Price
	 	 	38	 
	 
	Section 10.6 Securities Payable on Redemption Date
	 	 	38	 
	 
	Section 10.7 Securities Redeemed in Part
	 	 	38	 
	 
	ARTICLE 11 Sinking Funds
	 	 	39	 
	 
	Section 11.1 Applicability of Article
	 	 	39	 
	 
	Section 11.2 Satisfaction of Sinking Fund Payments With Securities
	 	 	39	 
	 
	Section 11.3 Redemption of Securities for Sinking Fund
	 	 	39	 
	 
	EXHIBIT A FORM OF FACE OF SECURITY
	 	 	A-1	 
	 
	FORM OF REVERSE OF SECURITY
	 	 	A-3	 

-iv-

 

     INDENTURE, dated as of                                , 200   , from PENFORD CORPORATION, a
Washington corporation (the “Company”), as issuer, to                                                               , a
        , as Trustee (the “Trustee”).

RECITALS

     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 (“Securities”) to be issued in one or more series as herein provided.

     All things necessary to make the Securities, when executed by the Company, the valid
obligations of the Company, and to make this Indenture a valid agreement of the Company, in
accordance with their and its terms, have been done.

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

ARTICLE 1

Definitions and Other Provisions of General Application

Section 1.1 Definitions

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

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

     (2) all other terms used herein which are defined in the Trust
Indenture Act, 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

     (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.

     “Affiliate” of any specified Person means any Person directly or indirectly
controlling or controlled by, or under direct or indirect common control with such specified
Person. For purposes of this definition, “control” when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

     “Agent” means any Paying Agent or Registrar.

     “Attributable Debt” means, as of the date of its determination, the present value
(discounted semiannually at an interest rate implicit in the terms of the lease) of the obligation
of a lessee for rental payments pursuant to any Sale and Leaseback Transaction (reduced by the
amount of the rental obligations of any sublessee of all or part of the same property) during the
remaining term of such Sale and Leaseback Transaction (including any period for which the lease
relating thereto has been extended), such rental payments not to include amounts payable by the
lessee for maintenance and repairs, insurance, taxes, laws, assessments and similar charges and for
contingent rents (such as those based on sales), provided, however, that in the case of any Sale
and Leaseback Transaction in which the lease is terminable by the lessee upon the payment of a
penalty, Attributable Debt shall mean the lesser of the present value of (a) the rental payments to
be paid under such Sale and Leaseback Transaction until the first date (after the date of such
determination) upon which it may be so terminated plus the then applicable penalty upon such
termination and (b) the rental payments required to be paid during the remaining term of such Sale
and Leaseback Transaction (assuming such termination provision is not exercised).

-1-

 

     Authenticating Agent” means any authenticating agent appointed by the Trustee pursuant
to Section 6.13.

     “Authorized Newspaper” means a newspaper of general circulation, in the English
language, customarily published on each Business Day whether or not published on Saturdays, Sundays
or holidays, and of general circulation in the place in connection with which the term is used or
in the financial community of such place. Whenever successive publications in an Authorized
Newspaper are required hereunder they may be made (unless otherwise expressly provided herein) on
any Business Day and in the same or different Authorized Newspapers.

     “Board” or “Board of Directors” means the Board of Directors of the Company,
the Executive Committee or any other duly authorized committee thereof.

     “Board Resolution” means a copy of a resolution of the Board of Directors, certified
by the Corporate 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, and
delivered to the Trustee.

     “Business Day,” when used with respect to any Place of Payment or any other particular
location referred to in this Indenture or in the Securities, means, unless otherwise specified with
respect to any Securities pursuant to Section 3.1, each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions or trust companies in the Borough of
Manhattan or The City of New York are authorized or obligated by law or executive order to close.

     “Commission” means the Securities and Exchange Commission, as from time to time
constituted, created under the Securities Exchange Act of 1934, or, if at any time after the
execution of this Indenture such Commission is not existing and performing the duties now assigned
to it under the Trust Indenture Act, then the body performing such duties at such time.

     “Company” means the Person named as the Company in the first paragraph of this
Indenture until one or more successor corporations shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter means such successors.

     “Company Order” and “Company Request” mean, respectively, a written order or
request signed in the name of the Company by the Chairman of the Board, the President or any Vice
President, or, with respect to Sections 3.3, 3.4, 3.5 and 6.1, any other employee of the Company
named in an Officers’ Certificate delivered to the Trustee.

     “Consolidated Net Tangible Assets” means, at any date, the total assets appearing in
the most recently prepared consolidated balance sheet of the Company and the Subsidiaries as of the
end of the most recent fiscal quarter of the Company for which such balance sheet is available,
prepared in accordance with generally accepted accounting principles, less (a) all current
liabilities as shown on such balance sheet and (b) Intangible Assets. “Intangible Assets” means the
value (net of any applicable reserves), as shown on or reflected in such balance sheet, of: (i) all
trade names, trademarks, licenses, patents, copyrights and goodwill; (ii) organization costs; and
(iii) deferred charges (other than prepaid items such as insurance, taxes, interest, commissions,
rents and similar items and tangible assets being amortized); but in no event shall the term
“Intangible Assets” include product development cost.

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

     “corporation” includes corporations, associations, companies and business trusts.

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

     “Funded Debt” means any Indebtedness maturing by its terms more than one year from the
date of the determination thereof, including any Indebtedness renewable or extendable at the option
of the obligor to a date later than one year from the date of determination thereof.

     “Government Obligations” means securities which are (i) direct obligations of the
United States or (ii) obligations of a Person controlled or supervised by and acting as an agency
or instrumentality of the United

-2-

 

States the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States, which are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank or trust company as custodian
with respect to any such Government Obligation or a specific payment of interest on or principal of
any such Government Obligation held by such custodian for the account of the holder of a depositary
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 depositary receipt from any amount
received by the custodian in respect of the Government Obligation evidenced by such depositary
receipt.

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

     “Indebtedness” of any corporation means all indebtedness representing money borrowed
which is created, assumed, incurred or guaranteed in any manner by such corporation or for which
such corporation is otherwise responsible or liable (whether by agreement to purchase indebtedness
of, or to supply funds to or invest in, others).

     “Indenture” means this Indenture as originally executed or as amended or supplemented
from time to time and shall include the forms and terms (but not defined terms established in an
Officers’ Certificate or a Board Resolution) of particular series of Securities established as
contemplated by Section 2.1 and Section 3.1.

     “Indexed Security” means a Security the terms of which provide that the principal
amount thereof payable at Stated Maturity may be more or less than the principal face amount
thereof at original issuance.

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

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

     “Lien” means any mortgage, pledge, security interest, lien, charge or other
encumbrance, but shall not include any of the foregoing types of encumbrances that are incidental
to the conduct of the business of the Company or any Restricted Subsidiary or the ownership of the
property and assets of any of them and that were not incurred in connection with the incurrence of
any Indebtedness. Such incidental encumbrances that are to be excluded from the term “Lien”
include, without limitation: pledges or deposits made to secure obligations of the Company or a
Restricted Subsidiary under workmen’s compensation laws or similar legislation; liens imposed by
law, such as materialmen’s, mechanics’, carriers’, workmen’s, vendors’, repairmen’s, or other like
liens incurred in the ordinary course of business; governmental (federal, state or municipal) liens
arising out of contracts for the purchase of products of the Company or a Restricted Subsidiary,
and deposits or pledges to obtain the release of any of the foregoing liens; liens created by or
resulting from any litigation or legal proceeding that is currently being contested in good faith
by an appropriate proceedings; leases made or existing on Principal Property entered into in the
ordinary course of business by the Company or a Restricted Subsidiary; landlords’ liens under
leases of Principal Property to which the Company or a Restricted Subsidiary is a party; zoning
restrictions, easements, licenses or restrictions on the use of Principal Property or minor
irregularities in the title thereto; deposits in connection with bids, tenders, contracts (other
than for the payment of money) to which the Company or any Restricted Subsidiary is a party;
deposits to secure public or statutory obligations of the Company or any Restricted Subsidiary;
deposits in connection with obtaining or maintaining self-insurance or to obtain the benefits of
any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social
security or similar matters; deposits of cash or obligations of the United States of America to
secure surety, appeal or customs bonds to which the Company or any Restricted Subsidiary is a
party; and liens for taxes or assessments or governmental charges or levies not yet due or
delinquent, or which can thereafter be paid without penalty, or which are being contested in good
faith by appropriate proceedings.

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

     “Officer” means the Chairman of the Board of Directors, Vice-Chairman of the Board of
Directors, the President, any Vice President (whether or not designated by a number or numbers, or
a word or words added before or after the title Vice-President), the Treasurer, the Secretary or
assistant Secretary of the Company.

-3-

 

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the
President or any Vice President.

     “Opinion of Counsel” means a written opinion of legal counsel, who may be (a) Perkins
Coie LLP, or (b) other counsel designated by the Company and who shall be reasonably acceptable to
the Trustee.

     “Original Issue Discount Security” means any Security which provides for an amount
less than the stated principal amount thereof to be due and payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 5.2.

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

     (iii) Securities, except to the extent provided in Sections 4.4 and
4.5, with respect to which the Company has effected defeasance and/or covenant defeasance as
provided in Article 4; and

     (iv) Securities which have been paid pursuant to Section 3.6 or in
exchange for or in lieu of which other Securities have been authenticated and delivered
pursuant to this Indenture, other than any such Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such Securities are held by
a bona fide purchaser in whose hands such Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, or whether sufficient funds are available for
redemption or for any other purpose, and for the purpose of making the calculations required by
section 313 of the Trust Indenture Act, (x) the principal amount of any Original Issue Discount
Securities that may be counted in making such determination or calculation and that shall be deemed
to be Outstanding for such purpose shall be equal to the amount of principal thereof that would be
(or shall have been declared to be) due and payable, at the time of such determination, upon a
declaration of acceleration of the maturity thereof pursuant to Section 5.2, and (y) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation or in relying upon
any such request, demand, authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor.

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

     “Periodic Offering” means an offering of Securities of a series from time to time the
specific terms of which Securities, including, without limitation, the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the Stated Maturity or
Stated Maturities thereof, the original issue date or dates thereof, the redemption provisions, if
any, with respect thereto, and any other terms specified as contemplated by Section 3.1 with
respect thereto, are to be determined by the Company upon the issuance of such Securities.

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

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     “Place of Payment,” when used with respect to the Securities of or within any series,
means the place or places where, subject to the provisions of Section 9.2 the principal of,
premium, if any, and interest on such Securities are payable as specified as contemplated by
Section 3.1.

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

     “Principal Property” means any real property that (a) is owned by or leased to the
Company or any Restricted Subsidiary, (b) is located within the United States and (c) has an
acquisition cost plus capitalized improvements in excess of 0.25% of Consolidated Net Tangible
Assets as of the date of such determination, other than (i) any such facility which the Board of
Directors may by resolution declare is not of material importance to the Company and the Restricted
Subsidiaries taken as a whole and (ii) any such facility, or portion thereof, owned or leased
jointly or in common with one or more persons other than the Company and any Subsidiary and in
which the interest of the Company and all Subsidiaries does not exceed 50%.

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

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

     “Regular Record Date” for the interest payable on any Interest Payment Date on the
Securities of or within any series means the date specified for that purpose as contemplated by
Section 3.1.

     “Responsible Officer,” when used with respect to the Trustee, shall mean any vice
president, any assistant vice president, any assistant treasurer, any trust officer, or any other
officer of the Trustee customarily performing functions similar to those performed by the persons
who at the time shall be such officers, respectively, and also means, with respect to a particular
corporate trust matter, any other officer to whom such corporate trust matter is referred because
of his knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

     “Restricted Securities” means any shares of capital stock or Indebtedness of a
Restricted Subsidiary.

     “Restricted Subsidiary” means (a) any Subsidiary (i) which has substantially all its
property within the United States of America, (ii) which owns or is a lessee of any Principal
Property, and (iii) in which the investment of the Company and all other Subsidiaries exceeds 0.25%
of Consolidated Net Tangible Assets as of the date of such determination; provided, however, that
the term “Restricted Subsidiary” shall not include (A) any Subsidiary (x) primarily engaged in the
business of purchasing, holding, collecting, servicing or otherwise dealing in and with installment
sales contracts, leases, trust receipts, mortgages, commercial paper or other financing instruments
and any collateral or agreements relating thereto, including in the business, individually or
through partnerships, of financing (whether through long- or short-term borrowings, pledges,
discounts or otherwise) the sales, leasing or other operations of the Company and the Subsidiaries
or any of them, or (y) engaged in the business of financing the assets and operations of third
parties; provided that notwithstanding (x) and (y) above, such Subsidiary shall be a Restricted
Subsidiary if it owns, leases or operates any property which would qualify as Principal Property
except as incidental to such financing business; or (B) any Subsidiary acquired or organized after
        , 200    for the purpose of acquiring the stock or business or assets of any
person other than the Company or any Restricted Subsidiary, whether by merger, consolidation,
acquisition of stock or assets or similar transaction analogous in purpose or effect, so long as
such Subsidiary does not acquire by merger, consolidation, acquisition of stock or assets or
similar transactions analogous in purpose or effect all or any substantial part of the business or
assets of the Company or any Restricted Subsidiary; and (b) any other Subsidiary which is hereafter
designated by the Board of Directors as a Restricted Subsidiary.

     “Sale and Leaseback Transaction” means any arrangement with any person providing for
the leasing by the Company or any Restricted Subsidiary of any Principal Property (whether such
Principal Property is now owned or hereafter acquired) that has been or is to be sold or
transferred by the Company or such Restricted Subsidiary to such person, other than (a) temporary
leases for a term, including renewals at the option of the lessee, of not more than three years;
(b) leases between the Company and a Restricted Subsidiary or between Restricted Subsidiaries;

-5-

 

and (c) leases of Principal Property executed by the time of, or within 180 days after the
latest of, the acquisition, the completion of construction or improvement (including any
improvements on property which will result in such property becoming Principal Property), or the
commencement of commercial operation of such Principal Property.

     “Secured Indebtedness” means (a) Indebtedness of the Company or a Restricted
Subsidiary which is secured by any Lien upon any Principal Property or Restricted Securities and
(b) Indebtedness of the Company or a Restricted Subsidiary in respect of any conditional sale or
other title retention agreement covering Principal Property or Restricted Securities; but “Secured
Indebtedness” shall not include any of the following:

     (i) Indebtedness of the Company and the Restricted Subsidiaries outstanding on                               
        , 200   , secured by then existing Liens upon, or incurred in connection with conditional
sales agreements or other title retention agreements with respect to, Principal Property or
Restricted Securities;

     (ii) Indebtedness which is secured by (A) purchase money Liens upon Principal Property or
Restricted Securities acquired after                                , 200   , or (B) Liens placed on
Principal Property after                                , 200   , during construction or improvement thereof
(including any improvements on property which will result in such property becoming Principal
Property) or placed thereon within 180 days after the later of acquisition, completion of
construction or improvement or the commencement of commercial operation of such Principal Property
or improvement, or placed on Restricted Securities acquired after                                , 200   ,
or (C) conditional sale agreements or other title retention agreements with respect to any
Principal Property or Restricted Securities acquired after                                , 200    if (in
each case referred to is this subparagraph (ii)) (x) such Lien or agreement secures all or any part
of the Indebtedness incurred for the purpose of financing all or any part of the purchase price or
cost of construction of such Principal Property or improvement or Restricted Securities and (y)
such Lien or agreement does not extend to any Principal Property or Restricted Securities other
than the Principal Property or Restricted Securities so acquired or the Principal Property, or
portion thereof, on which the property so constructed, or such improvement is located; provided,
however, that the amount by which the aggregate principal amount of Indebtedness secured by any
such Lien or agreement exceeds the cost to the Company or such Restricted Subsidiary of the related
acquisition, construction or improvement shall be considered to be “Secured Indebtedness”;

     (iii) Indebtedness which is secured by Liens on Principal Property or Restricted Securities,
which Liens exist at the time of acquisition (by any manner whatsoever) of such Principal Property
or Restricted Securities by the Company or a Restricted Subsidiary;

     (iv) Indebtedness of Restricted Subsidiaries owing to the Company or any other Restricted
Subsidiary and Indebtedness of the Company owing to any Restricted Subsidiary;

     (v) in the case of any corporation which becomes (by any manner whatsoever) a Restricted
Subsidiary after                               , 200   , Indebtedness which is secured by Liens upon, or
conditional sale agreements or other title retention agreements with respect to, its property which
constitutes Principal Property or Restricted Securities, which Liens exist at the time such
corporation becomes a Restricted Subsidiary;

     (vi) guarantees by the Company of Secured Indebtedness and Attributable Debt of any Restricted
Subsidiaries and guarantees by a Restricted Subsidiary of Secured Indebtedness and Attributable
Debt of the Company and any other Restricted Subsidiaries;

     (vii) Indebtedness arising from any Sale and Leaseback Transaction;

     (viii) Indebtedness secured by Liens on property of the Company or a Restricted Subsidiary in
favor of the United States of America, any State, Territory or possession thereof, or the District
of Columbia, or any department, agency or instrumentality or political subdivision of the United
States of America or any State, Territory or possession thereof, or the District of Columbia, or in
favor of any other country or any political subdivision thereof, if such Indebtedness was incurred
for the purpose of financing all or any part of the purchase price or the cost of construction of
the property subject to such Liens; provided, however, that the amount by which the aggregate
principal amount of Indebtedness secured by any such Lien exceeds the cost to the Company or such
Restricted Subsidiary of the related acquisition or construction shall be considered to be “Secured
Indebtedness”; and

     (ix) the replacement, extension or renewal (or successive replacements, extensions or
renewals) of any Indebtedness (in whole or in part) excluded from the definition of “Secured
Indebtedness” by subparagraphs (i) through (viii) above; provided, however, that no Lien securing,
or conditional sale or title retention agreement with

-6-

 

respect to, such Indebtedness shall extend to or cover any Principal Property or any
Restricted Securities, other than such property which secured the Indebtedness so replaced,
extended or renewed (plus improvements on or to any such Principal Property); provided further,
however, that to the extent that such replacement, extension or renewal increases the principal
amount of Indebtedness secured by such Lien or is in a principal amount in excess of the principal
amount of Indebtedness excluded from the definition of “Secured Indebtedness” by subparagraphs (i)
through (viii) above, the amount of such increase or excess shall be considered to be “Secured
Indebtedness”.

     In no event shall the foregoing provisions be interpreted to mean or their operation to cause
the same Indebtedness to be included more than once is the calculation of “Secured Indebtedness” as
that term is used in this Indenture.

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

     “Special Record Date” for the payment of any Defaulted Interest on the Securities of
any issue means a date fixed by the Trustee pursuant to Section 3.7.

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

     “Subsidiary” means any corporation of which the Company at the time owns or controls,
directly or indirectly, more than 50% of the shares of outstanding stock having general voting
power under ordinary circumstances to elect a majority of the Board of Directors of such
corporation (irrespective of whether or not at the time stock of any other class or classes of such
corporation shall have or might have voting power by reason of the happening of any contingency).

     “Trustee” means the party named as such in the first paragraph of this Indenture until
a successor Trustee replaces it pursuant to the applicable provisions of this Indenture, and
thereafter means such successor Trustee and if, at any time, there is more than one Trustee,
“Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect
to the Securities of that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as in effect
on the date of this Indenture, except as provided in Section 8.3.

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

     (b) The following terms shall have the meanings specified in the Sections
referred to opposite such term below:

	 	 	 	 	 
	Term	 	 	Section
	“Act”
	 	 	1.4	(a)
	“Bankruptcy Law”
	 	 	5.1	 
	“Custodian”
	 	 	5.1	 
	“Defaulted Interest”
	 	 	3.7	(b)
	“Event of Default”
	 	 	5.1	 
	“Register”
	 	 	3.5	 
	“Registrar”
	 	 	3.5	 
	“Valuation Date”
	 	 	3.7	(c)

Section 1.2 Compliance Certificates and Opinions

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent, if any, have been complied with, except that in the
case of any such application or request as to which the furnishing of such documents is
specifically

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required by any provision of this Indenture relating to such particular application or
request, no additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than pursuant to Sections 2.3, 3.3 and 9.6) shall include:

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

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

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

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

Section 1.3 Form of Document Delivered to Trustee

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

     Any certificates or opinions of an officer of the Company may be based, insofar as it relates
to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an officer or officers of
the Company stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations as 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 1.4 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. 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
conclusive in favor of the Trustee and 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 a
certificate of a notary public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof of his authority.
The fact and date of the execution of any such instrument or writing, or the authority of the
Person executing the same, may also be proved in any other reasonable manner which the Trustee
deems sufficient.

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

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

     (e) If the Company shall solicit from the Holders any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by
or pursuant to an Officers’ Certificate delivered to the Trustee, fix in advance a record date for
the determination of Holders entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other Act, but the Company shall have no obligation to do so. If such a
record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or
other Act may be given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the purposes of determining
whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed to
consented to such request, demand, authorization, direction, notice, consent, waiver or other Act,
and for that purpose the Outstanding Securities shall be computed as of such record date;
provided that no such authorization, agreement or consent by the Holders on such record
date shall be deemed effective unless it shall become effective pursuant to the provisions of
clause (a) of this Section 1.4 not later than six months after the record date.

Section 1.5 Notices, etc., to Trustee and Company

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

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

     (2) the Company by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to the Company addressed to it at Penford
Corporation, Attention: Chief Financial Officer or at any other address previously furnished
in writing to the Trustee by the Company.

Section 1.6 Notice to Holders; Waiver

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided or otherwise agreed to by a Holder)
if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at
his address as it appears in the Register, within the time 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. Any notice mailed to a Holder in the manner herein
prescribed shall be conclusively deemed to have been received by such Holder, whether or not such
Holder actually receives such notice.

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

     If it shall be impractical in the opinion of the Trustee or the Company to make any
publication of any notice required hereby in an Authorized Newspaper, any publication or other
notice in lieu thereof which is made or given with the approval of the Trustee shall constitute a
sufficient publication of such notice.

     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 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.

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Section 1.7 Headings and Table of Contents

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

Section 1.8 Successors and Assigns

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

Section 1.9 Separability

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

Section 1.10 Benefits of Indenture

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

Section 1.11 Governing Law

     THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF WASHINGTON, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF SAID STATE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF. This
Indenture is subject to the Trust Indenture Act and if any provision hereof limits, qualifies or
conflicts with the Trust Indenture Act, the Trust Indenture Act shall control.

Section 1.12 Legal Holidays

     In any case where any Interest Payment Date, Redemption Date, sinking fund payment date,
Stated Maturity or Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture of any Security other than a provision
in the Securities of any series which specifically states that such provision shall apply in lieu
of this Section) payment of principal, premium, if any, or interest need not be made at such Place
of Payment on such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on such date; provided that no interest
shall accrue on the amount so payable for the period from and after such Interest Payment Date,
Redemption Date, sinking fund payment date, Stated Maturity or Maturity, as the case may be.

Section 1.13 No Recourse Against Others

     No director, officer, employee or stockholder, as such, of the Company shall 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 issue of the Securities.

ARTICLE 2

Security Forms

Section 2.1 Forms Generally

     The Securities of each series shall be in substantially the form attached as Exhibit A and as
set forth pursuant to this Article, or in such other form or forms as shall be established by
delivery to the Trustee of an Officers’ Certificate or in one or more indentures supplemental
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

-10-

 

required to comply with the 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. If temporary Securities of any series are issued as permitted by Section 3.4, the form
thereof also shall be established as provided in the preceding sentence. If the form of Securities
of any series are established by an Officers’ Certificate, such Officers’ Certificate shall be
delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section
3.3 for the authentication and delivery of such Securities.

     The permanent Securities shall be printed, lithographed or engraved or produced by any
combination of these methods 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 2.2 Form of Trustee’s Certificate of Authentication

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

     This is one of the Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 	 	 	 	 
	Date:   

	 	 	 	 	,	 	 	 
	 	 	 	 	 	 	 
	 	 	as Trustee	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	                  Authorized Signatory

ARTICLE 3

The Securities

Section 3.1 Amount Unlimited; Issuable in Series

     (a) The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited. The Securities may be issued from
time to time in one or more series.

     (b) The following matters shall be established and (subject to Section
3.3) set forth, or determined in the manner provided, in an Officers’ Certificate or a Board
Resolution of the Company or one or more indentures supplemental hereto:

     (1) the title of the Securities of the series (which title 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
(which limit shall not pertain to (i) 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 3.4, 3.5, 3.6, 8.6, or 10.7 and (ii) any Securities which,
pursuant to the last paragraph of Section 3.3 are deemed never to have been authenticated
and delivered thereunder);

     (3) the date or dates on which the principal of the Securities of
the series is payable or the method of determination thereof;

     (4) the rate or rates at which the Securities of the series shall
bear interest, if any, or the method of calculating such rate or rates of interest, 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 any such interest shall be payable
and the Regular Record Date, if any, for the interest payable on any Interest Payment Date;

     (5) the place or places where, subject to the provisions of
Section 9.2, the principal of, premium, if any, and interest, if any, on Securities of the
series shall be payable;

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     (6) the period or periods within which, the price or prices at
which, and the other terms and conditions upon which, Securities of the series may be
redeemed, in whole or in part, at the option of the Company and, if other than as provided
in Section 10.3, the manner in which the particular Securities of such series (if less than
all Securities of such series are to be redeemed) are to be selected for redemption;

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

     (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 the amount of payments or principal of, premium, if any,
and interest, if any, on the Securities of the series shall be determined with reference to
an index, formula or other method, the index, formula or other method by which such amounts
shall be determined;

     (10) if other than the principal amount thereof, the portion of the
principal amount of such Securities of the series which shall be payable upon declaration of
the acceleration thereof pursuant to Section 5.2 or the method by which such portion shall
be determined;

     (11) if other than as provided in Section 3.7, the Person to whom
any interest on any Security of the series shall be payable and the extent to which, or the
manner in which (including any certification requirement and other terms and conditions
under which), any interest payable on a temporary Security on an Interest Payment Date will
be paid if other than in the manner provided in Section 3.4, as applicable;

     (12) provisions, if any, granting special rights to the Holders of
Securities of the series upon the occurrence of such events as may be specified;

     (13) any deletions from, modifications of or additions to the Events
of Default set forth in Section 5.1 or covenants of the Company set forth in Article 9
pertaining to the Securities of the series;

     (14) under what circumstances, if any, the Company will pay
additional amounts on the Securities of that series held by a Person who is not a U.S.
Person in respect of taxes or similar charges withheld or deducted and, if so, whether the
Company will have the option to redeem such Securities rather than pay such additional
amounts (and the terms of any such option);

     (15) the date as of which any temporary Security representing
outstanding Securities of the series shall be dated if other than the date of original
issuance of the first Security of the series to be issued;

     (16) the applicability, if any, to the Securities of or within the
series of Sections 4.4 and 4.5, or such other means of defeasance or covenant defeasance as
may be specified for the Securities of such series;

     (17) if other than the Trustee, the identity of the Registrar and
any Paying Agent or transfer agent;

     (18) any terms which may be related to warrants issued by the
Company in connection with, or for the purchase of, Securities of such series, including
whether and under what circumstances the Securities of any series may be used toward the
exercise price of any such warrants; and

     (19) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture), including any terms which may be
required by or advisable under United States laws or regulations or advisable in connection
with the marketing of Securities of the series.

     (c) All Securities of any one series shall be substantially identical
except as to denomination and the rate or rates of interest, if any, and Stated Maturity, the date
from which interest, if any, shall accrue and except as may otherwise be provided in or pursuant to
an Officers’ Certificate pursuant to this Section 3.1 or in an indenture

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supplemental hereto. All Securities of any one series need not be issued at the same time
and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for
issuances of additional Securities of such series or for the establishment of additional terms with
respect to the Securities of such series.

     (d) If any of the terms of the Securities of any series are established
by action taken pursuant to a Board Resolution, a copy of such Board Resolution shall be certified
by the Corporate Secretary or an Assistant Secretary of the Company and delivered to the Trustee at
or prior to the delivery of the Officers’ Certificate setting forth, or providing the manner for
determining, the terms of the Securities of such series, and an appropriate record of any action
taken pursuant thereto in connection with the issuance of any Securities of such series shall be
delivered to the Trustee prior to the authentication and delivery thereof. With respect to
Securities of a series subject to a Periodic Offering, such Board Resolution or Officers’
Certificate may provide general terms for Securities of such series and provide either that the
specific terms of particular Securities of such series shall be specified in a Company Order or
that such terms shall be determined by the Company, or one or more of the Company’s agents
designated in an Officers’ Certificate, in accordance with the Company Order as contemplated by the
first proviso of the third paragraph of Section 3.3

Section 3.2 Denominations

     The Securities of each series shall be issuable only in definitive registered form without
coupons and in such denominations as shall be specified as contemplated by Section 3.1. In the
absence of any such provisions 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 3.3 Execution, Authentication, Delivery and Dating

     Securities shall be executed on behalf of the Company by the Chairman, President, any Vice
President or Chief Executive Officer and attested to by the Secretary or Assistant Secretary of the
Company. The signatures of such officers on the Securities may be manual or facsimile signatures of
the present or any future such authorized officers and may be imprinted or otherwise reproduced on
the Securities.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time, the Company may deliver Securities of any series executed
by the Company to the Trustee for authentication, together with a Company Order for the
authentication and make available for delivery such Securities, and the Trustee in accordance with
the Company Order shall authenticate and deliver such Securities; provided,
however, that in the case of Securities offered in a Periodic Offering, the Trustee shall
authenticate and deliver such Securities from time to time in accordance with such other procedures
(including, without limitation, the receipt by the Trustee of oral or electronic instructions from
the Company or its duly authorized agents, promptly confirmed in writing) acceptable to the Trustee
as may be specified by or pursuant to a Company Order delivered to the Trustee prior to the time of
the first authentication of Securities of such series.

     If the form or terms of the Securities of a series have been established by or pursuant to one
or more Officers’ Certificates as permitted by Sections 2.1 and 3.1, in authenticating such
Securities and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to section 315(a) through (d) of
the Trust Indenture Act) shall be fully protected in relying upon, an Opinion of Counsel stating,

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

     (2) 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 customary exceptions;

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provided, however, that, with respect to Securities of a series subject to a
Periodic Offering, the Trustee shall be entitled to receive such Opinion of Counsel only once at or
prior to the time of the first authentication of Securities of such series and that the Opinion of
Counsel above may state:

     (x) that the forms of such Securities have been, and the terms of
such Securities (when established in accordance with such procedures as may be specified
from time to time in a Company Order, all as contemplated by and in accordance with a Board
Resolution or an Officers’ Certificate pursuant to Section 3.1, as the case may be) will
have been, established in conformity with the provisions of this Indenture; and

     (y) that such Securities, when (1) executed by the Company, (2)
completed, authenticated and delivered by the Trustee in accordance with this Indenture, and
(3) 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 customary exceptions.

     With respect to Securities of a series subject to a Periodic Offering, the Trustee may
conclusively rely, as to the authorization by the Company of any of such Securities, the form and
terms thereof and the legality, validity, binding effect and enforceability thereof, upon the
Opinion of Counsel and other documents delivered pursuant to Sections 2.1 and 3.1 of this Section,
as applicable, at or prior to the time of the first authentication of Securities of such series
unless and until it has received written notification that such opinion or other documents have
been superseded or revoked. In connection with the authentication and delivery of Securities of a
series subject to a Periodic Offering, the Trustee shall be entitled to assume that the Company’s
instructions to authenticate and deliver such Securities do not violate any rules, regulations or
orders of any governmental agency or commission having jurisdiction over the Company.

     If the form or terms of the Securities of a series have been established by or pursuant to one
or more Officers’ Certificates as permitted by Sections 2.1 and 3.1, the Trustee shall have the
right to decline to authenticate such Securities if the issue of such Securities pursuant to this
Indenture will adversely affect the Trustee’s own rights, duties or immunities under this Indenture
or otherwise in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding the provisions of Section 3.1 and of the two preceding paragraphs, if all of
the Securities of any series are not to be issued at one time, it shall not be necessary to deliver
the Officers’ Certificate otherwise required pursuant to Section 3.1 at or prior to the time of the
authentication of each Security of such series if the Officers’ Certificate is delivered at or
prior to the authentication upon original issuance of the first Security of such series to be
issued.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefits under this Indenture or be valid or obligatory
for any purpose until authenticated by the manual signature of one of the authorized signatories of
the Trustee or an Authenticating Agent. Such signature upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated and delivered under
this Indenture and is entitled to the benefits of this Indenture.

     Notwithstanding the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall deliver such Security to
the Trustee for cancellation as provided in Section 3.9 together with a written statement (which
need not comply with Section 1.2 and need not be accompanied by an Opinion of Counsel) stating that
such Security has never been issued and sold by the Company, for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and delivered hereunder and shall
not be entitled to the benefits of this Indenture.

Section 3.4 Temporary Securities

     Pending the preparation of definitive Securities of any series, the Company may execute and,
upon Company Order, the Trustee shall authenticate and deliver temporary Securities of such series
which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor and form of the definitive Securities in lieu of which
they are issued and with such appropriate insertions,

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omissions, substitutions and other variations as the officers executing such Securities may
determine, as conclusively evidenced by their execution of such Securities.

     If temporary Securities of any series are issued, the Company will cause permanent Securities
of such series to be prepared without unreasonable delay. After preparation of such permanent
Securities, the temporary Securities shall be exchangeable for such permanent Securities of like
tenor upon surrender of the temporary Securities of such series at the office or agency of the
Company pursuant to Section 9.2 in a Place of Payment for such series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of Permanent Securities of the same series of authorized denominations and of like
tenor. Until so exchanged, the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as permanent Securities of such series except as
otherwise specified as contemplated by Section 3.1.

Section 3.5 Registration, Registration of Transfer and Exchange

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any
office or agency to be maintained by the Company in accordance with Section 9.2 in a Place of
Payment a register (the “Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities and the registration of
transfers of Securities. The Register shall be in written form or any other form capable of being
converted into written form within a reasonable time. The Trustee is hereby appointed “Registrar”
for the purpose of registering Securities and transfers of Securities as herein provided.

     Upon surrender for registration of transfer of any Security of any series at the office or
agency maintained pursuant to Section 9.2 in a Place of Payment for that series, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of the same series, of any authorized denominations and
of a like aggregate principal amount and tenor.

     At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of like aggregate principal amount containing
identical terms and provisions, upon surrender of the Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

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

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

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

     No service change shall be made for any registration of transfer or for any exchange of
Securities, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration or transfer or exchange
of Securities, other than exchanges pursuant to Section 3.4 or 10.7 not involving any transfer.

     The Company shall not be required (i) to issue, register the transfer of, or exchange any
Securities for a period beginning at the opening of business 15 days before any selection for
redemption of Securities of like tenor and of the series of which such Security is a part and
ending at the close of business on the earliest date on which the relevant notice of redemption is
deemed to have been given to all Holders of Securities of like tenor and of such series to be
redeemed or (ii) to register the transfer of or exchange of any Security so selected for
redemption, in whole or in part, except the unredeemed portion of any Security being redeemed in
part.

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Section 3.6 Replacement Securities

     If a mutilated Security is surrendered to the Trustee, together with, in proper cases, such
security or indemnity as may be required by the Company or the Trustee to save each of them
harmless, the Company shall execute and the Trustee shall authenticate and deliver a replacement
Security of the same series and date of maturity, if the Trustee’s requirements are met.

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

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

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

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

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

Section 3.7 Payment of Interest; Interest Rights Preserved

     Unless otherwise provided as contemplated by Section 3.1, interest, if any, on any Security
which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest at the office or
agency maintained for such purpose pursuant to Section 9.2; provided, however,
that, at the option of the Company, interest on any series of Securities that bear interest may be
paid (i) by check mailed to the address of the Person entitled thereto as it shall appear on the
Register of Holders of Securities of such series or (ii) to the extent specified as contemplated by
Section 3.1, by wire transfer to an account maintained by the Person entitled thereto as specified
in the Register of Holders of Securities of such series.

     Unless otherwise provided as contemplated by Section 3.1, any interest on any Security of any
series which is payable, but is not punctually paid or duly provided for, on any interest payment
date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may
be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following manner. The
Company shall 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 (1) 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

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and the Special Record Date therefor to be mailed, first-class postage prepaid, to each
Holder of Securities of such series at his address as it appears in the Register, not less
than 10 days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Securities of such series
(or their respective Predecessor Securities) are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the following clause (2).

     (2) The Company may make payment of any Defaulted Interest to the
Persons in whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a specified date in any other lawful
manner not inconsistent with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by such exchange, if,
after notice given by the Company to the Trustee of the proposed payment pursuant to this
clause (2), such manner of payment shall be deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section and Section 3.5, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

Section 3.8 Persons Deemed Owners

     Prior to due presentment of any Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of receiving payment of
principal of, premium, if any, and (subject to Section 3.7) interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the
Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

Section 3.9 Cancellation

     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and any Paying Agent shall forward to the Trustee any Securities surrendered to them for
replacement, for registration of transfer, or for exchange or payment. The Trustee shall cancel
all Securities surrendered for replacement, for registration of transfer, or for exchange, payment,
redemption or cancellation and may dispose of cancelled Securities in accordance with its
procedures for the disposition of cancelled securities and issue a certificate of disposition to
the Company. The Company may not issue new Securities to replace Securities that it has paid or
delivered to the Trustee for cancellation, except as expressly permitted in the terms of Securities
for any particular series or as permitted pursuant to the terms of this Indenture.

Section 3.10 Computation of Interest

     Except as otherwise specified as contemplated by Section 3.1 (i) interest of any Securities
that bear interest at a fixed rate shall be computed on the basis of a 360-day year of twelve 30
day months and (ii) interest on any Securities the bear interest at a variable rate shall be
computed on the basis of the actual number of days in an interest period divided by 360 or the
actual number of days in the year.

Section 3.11 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 addition to the other identification numbers
printed on the Securities) 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.

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ARTICLE 4

Satisfaction, Discharge and Defeasance

Section 4.1 Termination of Company’s Obligations Under the Indenture

     Except as otherwise provided as contemplated by Section 3.1, this Indenture shall upon Company
Request cease to be of further effect with respect to Securities of or within any series (except as
to any surviving rights of registration of transfer or exchange of such Securities and replacement
of such Securities which may have been lost, stolen or mutilated as herein expressly provided for)
and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture with respect to such Securities when

          (1) either

     (A) all such Securities previously authenticated and
delivered (other than (i) such Securities which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 3.6, and (ii) such
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 9.3) have been delivered to the
Trustee for cancellation; or

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

     (i) have become due and payable, or

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

     (iii) if redeemable at the option of the Company,
are to be called for redemption within one year under arrangements
satisfactory to the Trustee for 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 irrevocably 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, premium,
if any, and interest, with respect thereto, to the date of such deposit (in the case
of Securities which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;

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

     (3) the Company has delivered to the Trustee an 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 as to such series
have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligation of the Company to
the Trustee and any predecessor Trustee under Section 6.9, the obligations of the Company to any
Authenticating Agent under Section 6.13 and, if money shall have been deposited with the Trustee
pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee under
Section 4.2 and the last paragraph of Section 9.3 shall survive.

Section 4.2 Application of Trust Funds

     Subject to the provisions of the last paragraph of Section 9.3, all money deposited with the
Trustee pursuant to Section 4.1 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, premium, if any, and

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any interest for whose payment such money has been deposited with or received by the Trustee,
but such money need not be segregated from other funds except to the extent required by law.

			
	Section 4.3	 	Applicability of Defeasance Provisions; Company’s Option to
Effect Defeasance or Covenant Defeasance

     If pursuant to Section 3.1 provision is made for either or both of (i) defeasance of the
Securities of or within a series under Section 4.4 or (ii) covenant defeasance of the Securities of
or within a series under Section 4.5, then the provisions of such Section or Sections, as the case
may be, together with the provisions of Sections 4.6 through 4.9 inclusive, with such modifications
thereto as may be specified pursuant to Section 3.1 with respect to any Securities, shall be
applicable to such Securities, and the Company may at its option by Board Resolution, at any time,
with respect to such Securities, elect to have Section 4.4 (if applicable) or Section 4.5 (if
applicable) be applied to such Outstanding Securities upon compliance with the conditions set forth
below in this Article.

Section 4.4 Defeasance and Discharge

     Upon the Company’s exercise of the option specified in Section 4.3 applicable to this Section
with respect to the Securities of or within a series, the Company shall be deemed to have been
discharged from its obligations with respect to such Securities on the date the conditions set
forth in Section 4.6 are satisfied (hereinafter “defeasance”). For this purpose, such defeasance
means that the Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities which shall thereafter be deemed to be “Outstanding” only for the
purposes of Section 4.7 and the other Sections of this Indenture referred to in clause (ii) of this
Section, and to have satisfied all its other obligations under such Securities and this Indenture
insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall on
Company Order execute proper instruments acknowledging the same), except the following which shall
survive until otherwise terminated or discharged hereunder: (i) the rights of Holders of such
Securities to receive, solely from the trust funds described in Section 4.6(a) and as more fully
set forth in such Section, payments in respect of the principal of, premium, if any, and interest,
if any, on such Securities when such payments are due; (ii) the Company’s obligations with respect
to such Securities under Sections 3.5, 3.6, 9.2 and 9.3 and with respect to the payment of
additional amounts, if any, payable with respect to such Securities as specified pursuant to
Section 3.1(b)(16); (iii) the rights, powers, trusts, duties and immunities of the Trustee
hereunder; and (iv) this Article 4. Subject to compliance with this Article 4, the Company may
exercise its option under this Section notwithstanding the prior exercise of its option under
Section 4.5 with respect to such Securities. Following a defeasance, payment of such Securities
may not be accelerated because of an Event of Default.

Section 4.5 Covenant Defeasance

     Upon the Company’s exercise of the option specified in Section 4.3 applicable to this Section
with respect to any Securities of or within a series, the Company shall be released from its
obligations under Sections 7.1 and 9.4, and, if specified pursuant to Section 3.1, its obligations
under any other covenant, with respect to such Securities on and after the date the conditions set
forth in Section 4.6 are satisfied (hereinafter, “covenant defeasance”), and such Securities shall
thereafter be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or
declaration or Act of Holders (and the consequences of any thereof) in connection with Sections 7.1
and 9.4, or such other covenant, but shall continue to be deemed “Outstanding” for all other
purposes hereunder. For this purpose, such covenant defeasance means that, with respect to such
Securities, the Company may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such Section or such other covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such Section or such other covenant
or by reason of reference in any such Section or such other covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a Default or an Event of
Default under Section 5.1(3) or 5.1(7) or otherwise, as the case may be, but, except as specified
above, the remainder of this Indenture and such Securities shall be unaffected thereby.

Section 4.6 Conditions to Defeasance or Covenant Defeasance

     The following shall be the conditions to application of Section 4.4 or Section 4.5 to any
Securities of or within a series:

     (a) The Company shall have deposited or caused to be deposited
irrevocably with the Trustee (or another trustee satisfying the requirements of Section 6.11
who shall agree to comply with, and shall be

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entitled to the benefits of, the provisions of Sections 4.3 through 4.9 inclusive and
the last paragraph of Section 9.3 applicable to the Trustee, for purposes of such Sections
also a “Trustee”) as trust funds in trust for the purpose of making the payments referred to
in clauses (x) and (y) of this Section 4.6(a), specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities, with instructions to the
Trustee as to the application thereof, (A) money in an amount, or (B) if Securities of such
series are not subject to repayment at the option of Holders, Government Obligations 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 referred to in
clause (x) or (y) of this Section 4.6(a), money in an amount or (C) a combination thereof in
an amount, sufficient, in the opinion of a nationally recognized firm of independent
certified public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee to pay and
discharge, (x) the principal of, premium, if any, and interest, if any, on such Securities
on the Maturity of such principal or installment of principal or interest and (y) any
mandatory sinking fund payments applicable to such Securities on the day on which such
payments are due and payable in accordance with the terms of this Indenture and such
Securities. Before such a deposit the Company may make arrangements satisfactory to the
Trustee for the redemption of Securities at a future date or dates in accordance with
Article 10 which shall be given effect in applying the foregoing.

     (b) Such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a Default or Event of Default under, this Indenture or
result in a breach or violation of, or constitute a default under, any other material
agreement or instrument to which the Company is a party or by which it is bound.

     (c) No Default or Event of Default under Section 5.1(5) or 5.1(6)
with respect to such Securities shall have occurred and be continuing during the period
commencing on the date of such deposit and ending on the 91st day after such date (it being
understood that this condition shall not be deemed satisfied until the expiration of such
period).

     (d) In the case of an election under Section 4.4, the Company
shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to
the effect that (i) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture,
there has been a change in the applicable Federal income tax law, in either case to the
effect that, and based thereon such opinion shall confirm that, the Holders of such
Securities will not recognize income, gain or loss for Federal income tax purposes as a
result of such defeasance and will be subject to Federal income tax on the same amount and
in the same manner and at the same times, as would have been the case if such deposit,
defeasance and discharge had not occurred.

     (e) In the case of an election under Section 4.5, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Securities will not recognize income, gain or loss for Federal income tax purposes as a
result of such covenant defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
covenant defeasance had not occurred.

     (f) The Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions precedent to the
defeasance under Section 4.4 or the covenant defeasance under Section 4.5 (as the case may
be) have been complied with and an Opinion of Counsel to the effect that either (i) as a
result of a deposit pursuant to subsection (a) above and the related exercise of the
Company’s option under Section 4.4 or Section 4.5 (as the case may be), registration is not
required under the Investment Company Act of 1940, as amended, by the Company, with respect
to the trust funds representing such deposit or by the trustee for such trust funds or (ii)
all necessary registrations under said act have been effected.

     (g) Such defeasance or covenant defeasance shall be effected in
compliance with any additional or substitute terms, conditions or limitations which may be
imposed on the Company in connection therewith as contemplated by Section 3.1.

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Section 4.7 Deposited Money and Government Obligations to Be Held in Trust

     Subject to the provisions of the last paragraph of Section 9.3, all money and Government
Obligations (or other property as may be provided pursuant to Section 3.1) (including the proceeds
thereof) deposited with the Trustee pursuant to Section 4.6 in respect of any Securities of any
series shall be held in trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders
of such Securities of all sums due and to become due thereon in respect of principal, premium, if
any, and interest, if any, but such money need not be segregated from other funds except to the
extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the Government Obligations deposited pursuant to Section 4.6 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Securities.

Section 4.8 Transfers and Distribution at Company Request

     To the extent permitted by the Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 76, as amended or interpreted by the Financial Accounting Standards Board
from time to time, or any successor thereto (“Standard No. 76”), or to the extent permitted by the
Commission, the Trustee shall, from time to time, take one or more of the following actions as
specified in a Company Request:

     (a) Retransfer, reassign and deliver to the Company any securities
deposited with the Trustee pursuant to Section 4.6(a), provided that the Company shall in
substitution therefor, simultaneously transfer, assign and deliver to the Trustee other
Government Obligations appropriate to satisfy the Company’s obligations in respect of the
relevant Securities; and

     (b) The Trustee (and any Paying Agent) shall promptly pay to the
Company upon Company Request any excess money or securities held by them at any time,
including, without limitation, any assets deposited with the Trustee pursuant to Section
4.6(a) exceeding those necessary for the purposes of Section 4.6(a).

     The Trustee shall not take the actions described in subsections (a) and (b) of this Section
4.8 unless it shall have first , at the Company’s expense, a written report of a nationally
recognized independent public accounting firm selected by the Company, (i) expressing their opinion
that the contemplated action is permitted by Standard No. 76 or the Commission, for transactions
accounted for as extinguishment of debt under the circumstances described in paragraph 3.c of
Standard No. 76 or any successor provision and (ii) verifying the accuracy, after giving effect to
such action or actions, of the computations which demonstrate that the amounts remaining to be
earned on the Government Obligations deposited with the Trustee pursuant to Section 4.6(a) will be
sufficient for purposes of Section 4.6(a).

ARTICLE 5

Defaults and Remedies

Section 5.1 Events of Default

     An “Event of Default” occurs with respect to the Securities of any series if (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

     (1) the Company defaults in the payment of interest on any
Security of that series or any additional amount payable with respect to any Security of
that series as specified pursuant to Section 3.1(b)(14) when the same becomes due and
payable and such default continues for a period of 30 days;

     (2) the Company defaults in the payment of the principal of or any
premium on any Security of that series when the same becomes due and payable at its Maturity
or on redemption or otherwise, or in

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the payment of a mandatory sinking fund payment when and as due by the terms of the
Securities of that series;

     (3) the Company defaults in the performance of, or breaches, any
covenant or warranty of the Company in this Indenture with respect to any Security of that
series (other than a covenant or warranty a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with), and such default or breach continues for
a period of 60 days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities of that series, a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder;

     (4) the Company pursuant to or within the meaning of any
Bankruptcy Law (A) commences a voluntary case, (B) consents to the entry of an order for
relief against it in an involuntary case, (C) consents to the appointment of a Custodian of
it or for all or substantially all of its property, or (D) makes a general assignment for
the benefit of its creditors;

     (5) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that (A) is for relief against the Company in an involuntary case,
(B) appoints a Custodian of the Company or for all or substantially all of its property, or
(C) orders the liquidation of the Company; and the order or decree remains unstayed and in
effect for 90 consecutive days; or

     (6) any other Event of Default provided as contemplated by Section
3.1 with respect to Securities of that series.

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

Section 5.2 Acceleration, Rescission and Annulment

     If an Event of Default with respect to the Securities of any series at the time Outstanding
occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount
of all of the outstanding Securities of that series, by written notice to the Company (and, if
given by the Holders, to the Trustee), may declare the principal (or, if the Securities of that
series are Original Issue Discount Securities or Indexed Securities, such portion of the principal
amount as may be specified in the terms of that series) of all the Securities of that series to be
due and payable and upon any such declaration such principal (or, in the case of original Issue
Discount Securities or Indexed Securities, such specified amount) shall be immediately due and
payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in aggregate principal
amount of the outstanding Securities of that series, by written notice to the Trustee, may rescind
and annul such declaration and its consequences if all existing Defaults and Events of Default with
respect to Securities of that series, other than the nonpayment of the principal of Securities of
that series which have become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 5.7. No such rescission shall affect any subsequent default or
impair any right consequent thereon.

Section 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee

     The Company covenants that if

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

     (2) default is made in the payment of the principal of (or
premium, if any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal, premium, if
any, and interest and, to the extent that

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payment of such interest shall be legally enforceable, interest on any overdue principal, premium,
if any, and on any overdue interest, at the rate or rates prescribed therefor in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel.

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

Section 5.4 Trustee May File Proofs of Claim

     The Trustee may 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 the Holders of Securities allowed in any
judicial proceedings relating to the Company, its creditors or its property.

Section 5.5 Trustee May Enforce Claims Without Possession of Securities

     All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto.

Section 5.6 Delay or Omission Not Waiver

     No delay or omission by the Trustee or any Holder of any Securities to exercise any right or
remedy accruing upon an Event of Default shall impair any such right or remedy or constitute a
waiver of or acquiescence in any such Event of Default.

Section 5.7 Waiver of Past Defaults

     The Holders of a majority in aggregate principal amount of Outstanding Securities of any
series by notice to the Trustee may waive on behalf of the Holders of all Securities of such series
a past Default or Event of Default with respect to that series and its consequences except (i) a
Default or Event of Default in the payment of the principal of, premium, if any, or interest on any
Security of such series or (ii) in respect of a covenant or provision hereof which pursuant to
Section 8.2 cannot be amended or modified without the consent of the Holder of each outstanding
Security of such series adversely affected. Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture.

Section 5.8 Control by Majority

     The Holders of a majority in aggregate principal amount of the Outstanding Securities of each
series affected (with each such series voting as a class) 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 it with respect to Securities of that series; provided,
however, that (i) the Trustee may refuse to follow any direction that conflicts with law or
this Indenture, (ii) the Trustee may refuse to follow any direction that is unduly prejudicial to
the rights of the Holders of Securities of such series not consenting, or that would in the
good-faith judgment of the Trustee have a substantial likelihood of involving the Trustee in
personal liability and (iii) the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction.

Section 5.9 Limitation on Suits by Holders

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

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

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     (2) the Holders of at least 25% in aggregate principal amount of
the Outstanding Securities of that series have made a written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

     (3) such Holder or Holders have offered to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense to be, or which may be,
incurred by the Trustee in pursuing the remedy;

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

     (5) during such 60-day period, the Holders of a majority in
aggregate principal amount of the Outstanding Securities of that series has not given to the
Trustee a direction inconsistent with such written request.

     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 of such Holders, or to obtain or to seek to obtain priority or preference over any other of
such Holders or to enforce any right under this Indenture, except in the manner herein provided and
for the equal and ratable benefit of all of such Holders.

Section 5.10 Rights of Holders to Receive Payment

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of principal of, premium, if any, and, subject to Section 3.7, interest on the
Security, on or after the respective due dates expressed in the Security (or, in case of
redemption, on the redemption dates), or, subject to Section 5.9, to bring suit for the enforcement
of any such payment on or after such respective dates, shall not be impaired or affected without
the consent of such Holder.

Section 5.11 Application of Money Collected

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

     First: to the Trustee for amounts due under Section 6.9;

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

     Third: to the Company.

Section 5.12 Restoration of Rights and Remedies

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

Section 5.13 Rights and Remedies Cumulative

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 3.6, no right or remedy
herein conferred upon or reserved to the Trustee or the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now

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or hereafter existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment
of any other appropriate right or remedy.

ARTICLE 6

The Trustee

Section 6.1 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, 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 provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not they conform
to the requirements of this Indenture.

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

     (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 of a majority in principal amount of the Outstanding Securities of any series
relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture with respect to the Securities of such series.

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

     (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 6.2 Rights of Trustee

     Subject to the provisions of the Trust Indenture Act:

     (a) The Trustee may conclusively rely and shall be protected in
acting or refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction,

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consent, order, bond, debenture, note or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties.

     (b) Any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order (other than delivery of any
Security to the Trustee for authentication and delivery pursuant to Section 3.3, which shall
be sufficiently evidenced as provided therein) 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 counsel of its selection and the
advice of such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

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

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

     (g) The Trustee may act through agents or attorneys and shall not
be responsible for the misconduct or negligence of any agent or attorney appointed with due
care.

     (h) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its rights or
powers.

     (i) The Trustee shall not be required 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 its rights or powers, if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

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

     (k) 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;

     (l) 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 so as authorized in any such certificate previously delivered and not
superseded.

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Section 6.3 Trustee May Hold Securities

     The Trustee, any Paying Agent, any Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities and, subject to
Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company, an
Affiliate or Subsidiary with the same rights it would have if it were not Trustee, Paying Agent,
Registrar or such other agent.

Section 6.4 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 6.5 Trustee’s Disclaimer

     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 assumes no
responsibility for their correctness. The Trustee makes no representation as to the validity or
adequacy of this Indenture or the Securities. The Trustee shall not be accountable for the
Company’s use of the proceeds from the Securities or for monies paid over to the Company pursuant
to the Indenture.

Section 6.6 Notice of Defaults

     If a Default occurs and is continuing with respect to the Securities of any series and if it
is known to the Trustee, the Trustee shall, within 30 days after it occurs, transmit, in the manner
and to the extent provided in Section 313(c) of the Trust Indenture Act (and, at the Company’s
expense, shall cause to be published at least once in an Authorized Newspaper), notice of all
uncured Defaults known to it; provided, however, that, except in the case of a
Default in payment on the Securities of any series, the Trustee may withhold the notice if and so
long as the board of directors, the executive committee or a committee of its Responsible Officers
in good faith determines that withholding such notice is in the interests of Holders of Securities
of that series; provided further that, in the case of any default or breach of the
character specified in Section 5.1(3) with respect to the Securities of such series, no such notice
to Holders shall be given until at least 60 days after the occurrence thereof.

Section 6.7 Reports by Trustee to Holders

     Within 60 days after each May 15 of each year commencing with the first May 15 after the first
issuance of Securities pursuant to this Indenture, the Trustee shall transmit by mail to all
Holders of Securities as provided in Section 313(c) of the Trust Indenture Act a brief report dated
as of such May 15 if required by Section 313(a) of the Trust Indenture Act. The Trustee also shall
comply with Section 313(b) and (d) of the Trust Indenture Act, if applicable.

Section 6.8 Securityholder Lists

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders of Securities of each series. If the
Trustee is not the Registrar, the Company shall furnish to the Trustee semiannually on or before
the last day of June and December in each year, and at such other times as the Trustee may request
in writing, a list, in such form and as of such date as the Trustee may reasonably require,
containing all the information in the possession of the Registrar, the Company or any of its Paying
Agents other than the Trustee as to the names and addresses of Holders of Securities of each such
series.

Section 6.9 Compensation and Indemnity

     (a) The Company shall pay to the Trustee from time to time such
compensation as shall be agreed between the Company and the Trustee in writing for all services
rendered by it hereunder. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it in connection with the performance
of its duties under this Indenture, except any such expense as may be attributable to its
negligence or bad faith. Such expenses shall include the reasonable compensation and expenses of
the Trustee’s agents and counsel.

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     (b) The Company shall indemnify the Trustee, and any predecessor Trustee,
for, and hold it harmless against, any loss, liability or expense incurred by it without negligence
or bad faith on its part arising out of or in connection with its acceptance or administration of
the trust or trusts hereunder. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in
the defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel. The Company need not pay for any settlement made without its
consent.

     (c) The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee through its negligence or bad faith.

     (d) To secure the payment obligations of the Company pursuant to this
Section, the Trustee shall have a lien prior to the Securities of any series on all money or
property held or collected by the Trustee, except that held in trust to pay principal, premium, if
any, and interest on particular Securities.

     (e) when the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 5.1(5) or Section 5.1(6), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the services are intended
to constitute expenses of administration under any applicable Federal or state bankruptcy,
insolvency or other similar law.

     (f) The provisions of this Section shall survive the termination of this
Indenture.

Section 6.10 Replacement of Trustee

     (a) The resignation or removal of the Trustee and the appointment of a
successor Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in Section 6.11.

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

     (c) The Holders of a majority in aggregate principal amount of the
Outstanding Securities of any series may remove the Trustee with respect to that series by so
notifying the Trustee and the Company and may appoint a successor Trustee for such series with the
Company’s consent.

     (d) If at any time:

     (1) the Trustee fails to comply with Section 310(b) of the Trust
Indenture Act after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months; or

     (2) the Trustee shall cease to be eligible under Section 310(a) of
the Trust Indenture Act and shall fail to resign after written request therefor by the
Company or by any Holder of a Security who has been a bona fide Holder of a Security for at
least six months; or

     (3) the Trustee becomes incapable of acting, is adjudged a
bankrupt or an insolvent or a receiver or public officer takes charge of the Trustee or its
property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in
any such case, (i) the Company by or pursuant to a Board Resolution may remove the Trustee
with respect to all Securities, or (ii) subject to Section 315(e) of the Trust Indenture
Act, any Holder who has been a bona fide Holder of a Security for at least six months may,
on behalf of himself and all other similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and the
appointment of a successor Trustee or Trustees.

     (e) If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, with respect to Securities of one or more series, the Company, by
or pursuant to Board Resolution, shall promptly appoint a successor Trustee with respect to the
Securities of that or those series (it being understood that any such

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successor Trustee may be appointed with respect to the Securities of one or more or all of
such series and that at any time there shall be only one Trustee with respect to the Securities of
any particular series) and shall comply with the applicable requirements of Section 6.11. If,
within one year after such resignation, removal or incapability, or the occurrence of such vacancy,
a successor Trustee with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such series delivered to
the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements of Section 6.11,
become the successor Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to
the Securities of any series shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 6.11, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

Section 6.11 Acceptance of Appointment by Successor

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

     (b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee
and such successor Trustee shall execute and deliver an indenture supplemental hereto wherein such
successor Trustee shall accept such appointment and which (i) shall contain such provisions as
shall be necessary or desirable to transfer and confirm to, and to vest in, such successor Trustee
all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates, (ii) if the
retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of
the retiring Trustee with respect to the Securities of that or those series as to which the
retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (iii)
shall add to or change any of the provisions of this Indenture as shall be necessary to provide for
or facilitate the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by any other such
Trustee and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates; but, on request of the
Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee hereunder with respect
to the Securities of that or those series to which the appointment of such successor Trustee
relates.

     (c) Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming to such successor
Trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as
the case may be.

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

     (e) 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 in the manner provided for notices to the
Holders of Securities in Section 1.6 and by publishing notice of such event once in an Authorized
Newspaper. Each notice shall include the name of the successor Trustee with respect to the
securities of such series and the address of its Corporate Trust office.

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Section 6.12 Eligibility; Disqualification

     There shall at all times be a Trustee hereunder which shall be eligible to act as Trustee
under Section 310(a)(1) of the Trust Indenture Act and shall have a combined capital and surplus of
at least $100 million. If such corporation publishes reports of condition at least annually,
pursuant to law or the requirements of Federal, State Territorial or District of Columbia
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. 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 hereinafter specified in this Article.

Section 6.13 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 the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.

Section 6.14 Appointment of Authenticating Agent

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue exchange, registration of transfer or partial redemption
thereof, 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. Any
such appointment shall be evidenced by an instrument in writing signed by a Responsible Officer of
the Trustee, a copy of which instrument shall be promptly furnished to the Company. Wherever
reference is made in this Indenture to the authenticating 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, except as may otherwise be provided
pursuant to Section 3.1, 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
or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than $10 million 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 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, provided, such corporation shall be otherwise eligible under this
Section, without the execution or filing of any paper or further act on the part of the Trustee or
the Authenticating Agent.

     An Authenticating Agent for any series of Securities may at any time resign by giving written
notice of resignation to the Trustee for such series and to the Company. The Trustee for any
series of Securities 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 for
such series may appoint a successor Authenticating Agent which shall be acceptable to the Company
and shall give notice of such appointment to all Holders of Securities of the series with respect
to which such

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Authenticating Agent will serve in the manner set forth in Section 1.6. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent 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, including reimbursement of its reasonable expenses for its services under this
Section.

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

     This is one of the Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:
 

	 	 	 	 	,	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	as Trustee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	as Authenticating Agent	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Authorized Officer	 	 	 	 	 	 

Section 6.15 Trustee’s Application for Instructions From the Company

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

ARTICLE 7

Consolidation, Merger or Sale by the Company

Section 7.1 Consolidation, Merger or Sale of Assets Permitted

     The Company may merge or consolidate with or into any other corporation or sell, convey,
transfer, lease or otherwise dispose of all or substantially all of its assets to any person, firm
or corporation, if (i) (A) in the case of a merger or consolidation, the Company is the surviving
corporation or (B) in the case of a merger or consolidation where the Company is not the surviving
corporation and in the case of any such sale, conveyance or other disposition, the successor or
acquiring corporation is a corporation organized and existing under the laws of the United States
or a State thereof and such corporation expressly assumes by supplemental indenture all of the
obligations of the Company under the Securities and under this Indenture, (ii) immediately
thereafter, giving effect to such merger or consolidation, or such sale, conveyance, transfer or
other disposition, no Default or Event of Default shall have occurred and be continuing and (iii)
the company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each
stating that such merger or consolidation, or such sale, conveyance, transfer or other disposition,
complies with this Article and that all conditions precedent herein provided for relating to such
transaction have been complied with. In the event of the assumption by a successor corporation of
the obligations of the Company as provided in clause (i)(B) of the immediately preceding sentence,
such successor corporation shall succeed to and be substituted for the Company hereunder and under
the Securities and all such obligations of the Company shall terminate.

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Section 7.2 No Limitations

     Nothing contained in this Indenture or in any of the Securities shall prevent the Company from
merging into itself any other corporation or entity (whether or not affiliated with the Company) or
acquiring by purchase or otherwise all or any part of the property of any other corporation or
entity (whether or not affiliated with the Company).

ARTICLE 8

Supplemental Indentures

Section 8.1 Supplemental Indentures Without Consent of Holders

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

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

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

     (3) to add any additional Events of Default with respect to all or
any series of Securities; or

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

     (5) to add to, change or eliminate any of the provisions of this
Indenture, provided that any such addition, change or elimination shall become
effective only when there is no Security Outstanding of any series created prior to the
execution of such supplemental indenture which is entitled to the benefit of such provision;
or

     (6) to secure the Securities; or

     (7) to establish the form or terms of Securities of any series as
permitted by Sections 2.1 and 3.2; or

     (8) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one or more series and to
add to or change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trusts hereunder by more than one Trustee,
pursuant to the requirements of Section 6.10; or

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

Section 8.2 With Consent of Holders

     With the written consent of the Holders of a majority of the aggregate principal amount of the
Outstanding Securities of each series adversely affected by such supplemental indenture, the
Company and the Trustee may enter into an indenture or indentures supplemental hereto to add any
provisions to or to change or eliminate any provisions of this Indenture or of any other indenture
supplemental hereto or to modify the rights of the Holders of Securities of each such series;
provided, however, that without the consent of the Holder of each Outstanding
Security affected thereby, an amendment under this Section may not:

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     (1) change the Stated Maturity of the principal of, or any
installment of principal of or interest on, any Security, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the redemption thereof,
or reduce the amount of the principal of an Original Issue Discount Security that would be
due and payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 5.2, or change the coin or currency in which, any Securities or any premium or the
interest thereon is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on
or after the Redemption Date);

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

     (3) change any obligation of the Company to maintain an office or
agency in the places and for the purposes specified in Section 9.2; or

     (4) make any change in Section 5.7 or this 8.2(a) except to
increase any percentage or to provide that certain other provisions of this Indenture cannot
be modified or waived with the consent of the Holders of each Outstanding Security affected
thereby.

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

     It is not necessary under this Section 8.2 for the Holders to consent to the particular form
of any proposed supplemental indenture, but it is sufficient if they consent to the substance
thereof.

Section 8.3 Compliance With Trust Indenture Act

     Every supplemental indenture executed pursuant to this Article shall comply with the
requirements of the Trust Indenture Act as then in effect.

Section 8.4 Execution of Supplemental Indentures

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modification thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

Section 8.5 Effect of Supplemental Indentures

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

Section 8.6 Reference in Securities to Supplemental Indentures

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

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ARTICLE 9

Covenants

Section 9.1 Payment of Principal, Premium, if Any, and Interest

     The Company covenants and agrees for the benefit of the Holders of each series of Securities
that it will duly and punctually pay the principal of, premium, if any, and interest on the
Securities of that series in accordance with the terms of the Securities of such series and this
Indenture. An installment of principal or interest shall be considered paid on the date it is due
if the Trustee or Paying Agent holds on that date money designated for and sufficient to pay the
installment.

Section 9.2 Maintenance of Office or Agency

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

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

     Unless otherwise specified as contemplated by Section 3.1, the Trustee shall initially serve
as Paying Agent.

Section 9.3 Money for Securities to Be Held in Trust; Unclaimed Money

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

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

     (1) hold all sums held by it for the payment of the principal of,
premium, if any, or interest on Securities of that series 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;

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

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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 any principal, premium or interest on any Security of any series and
remaining unclaimed for two years after such principal, 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 an Authorized Newspaper, or cause to be mailed to such Holder, notice that
such money remains unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such publication, any unclaimed balance of such money then remaining will
be repaid to the Company.

Section 9.4 Corporate Existence

     Subject to Article 7, the Company will at all times do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence and its rights and
franchises; provided that nothing in this Section 9.4 shall prevent the abandonment or
termination of any right or franchise of the Company if, in the opinion of the Company, such
abandonment or termination is in the best interests of the Company and does not materially
adversely affect the ability of the Company to operate its business or to fulfill its obligations
hereunder.

Section 9.5 Reports by the Company

     The Company covenants:

     (a) to file with the Trustee, within 15 days after the Company is
required to file the same 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, as amended; or, if the Company is not required to
file information, documents or reports pursuant to either of such sections, then to 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, as amended, 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;

     (b) to file with the Trustee and the Commission, in accordance
with the 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 provided for in this Indenture, as may be required from time to
time by such rules and regulations; and

     (c) to transmit to all Holders of Securities, within 30 days after
the filing thereof with the Trustee, in the manner and to the extent provided in section
313(c) of the Trust Indenture Act, such summaries of any information, documents and reports
required to be filed by the Company pursuant to subsections (a) and (b) of this Section 9.5,
as may be required by rules and regulations prescribed from time to time by the Commission.

     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).

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Section 9.6 Annual Review Certificate; Notice of Default

     The Company covenants and agrees to deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company, a brief certificate from the principal executive officer,
principal financial officer, or principal accounting officer as to his or her knowledge of the
Company’s compliance with all conditions and covenants under this Indenture. For purposes of this
Section 9.7, such compliance shall be determined without regard to any period of grace or
requirement of notice provided under this Indenture. The Company shall promptly file with the
Trustee written notice of occurrence of any Event of Default, and in any event within 30 days of
its becoming aware of any such Event of Default.

Section 9.7 Provision of Financial Statements

     If the Company is not required to file with the Commission periodic reports and other
information pursuant to section 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934, the
Company shall furnish without cost to each Holder and file with the Trustee (i) within 135 days
after the end of each fiscal year, annual reports containing the information required to be
contained in Items 1, 2, 3, 5, 6, 7, 8 and 9 of Form 10-K promulgated under the Securities Exchange
Act of 1934, or substantially the same information required to be contained in comparable items of
any successor form, (ii) within 60 days after the end of each of the first three fiscal quarters of
each fiscal year, quarterly reports containing the information required to be contained in Form
10-Q promulgated under the Securities Exchange Act of 1934, or substantially the same information
required to be contained in any successor form and (iii) promptly from the time after the
occurrence of an event required to be therein reported, such other reports containing information
required to be contained in Form 8-K promulgated under the Securities Exchange Act of 1934, or
substantially the same information required to be contained in any successor form. The Company
shall also make such reports available to prospective purchasers of the Securities, securities
analysts and broker-dealers upon their request.

Section 9.8 Limitations on Liens

     The Company will not create, assume, incur or guarantee, and will not permit any Restricted
Subsidiary to create, assume, incur or guarantee, any Secured Indebtedness without making provision
whereby all the Securities shall be secured equally and ratably with (or prior to) such Secured
Indebtedness (together with, if the Company shall so determine, any other Indebtedness of the
Company or such Restricted Subsidiary then existing or thereafter created which is not subordinate
to the Securities) so long as such Secured Indebtedness shall be outstanding unless such Secured
Indebtedness, when added to (a) the aggregate amount of all Secured Indebtedness then outstanding
(not including in this computation Secured Indebtedness if the Securities are secured equally and
ratably with (or prior to) such Secured Indebtedness and further not including in this computation
any Secured Indebtedness which is concurrently being retired) and (b) the aggregate amount all
Attributable Debt then outstanding pursuant to Sale and Leaseback Transactions entered into by the
Company after      , 200   , or entered into by a Restricted Subsidiary after
        , 200   , or, if later, the date on which it became a Restricted Subsidiary (not
including in this computation any Attributable Debt which is concurrently being retired), would not
exceed 15% of Consolidated Net Tangible Assets.

Section 9.9 Limitations on Sales and Leasebacks.

     The Company will not, and will not permit any Restricted Subsidiary to, enter into any Sale
and Leaseback Transaction unless (a) the sum of (i) the Attributable Debt to be outstanding
pursuant to such Sale and Leaseback Transaction, (ii) all Attributable Debt then outstanding
pursuant to all other Sale and Leaseback Transactions entered into by the Company after
        , 200   , or, or entered into by a Restricted Subsidiary after      , 200
  , or, if later, the date on which it became a Restricted Subsidiary and (iii) the aggregate of all
Secured Indebtedness then outstanding (not including in this computation Secured Indebtedness if
the Securities are secured equally and ratably with (or prior to) such Secured Indebtedness) would
not exceed 15% of Consolidated Net Tangible Assets, or (b) an amount equal to the greater of (i)
the net proceeds to the Company or the Restricted Subsidiary of the sale of the Principal Property
sold and leased back pursuant to such Sale and Leaseback Transaction and (ii) the amount of
Attributable Debt to be outstanding pursuant to such Sale and Leaseback Transaction is applied to
the retirement of Funded Debt of the Company or any Restricted Subsidiaries (other than Funded Debt
which is subordinate to the Securities or which is owing to the Company or any Restricted
Subsidiaries) within 180 days after the consummation of such Sale and Leaseback Transaction.

-36-

 

ARTICLE 10

Redemption

Section 10.1 Applicability of Article

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article.

Section 10.2 Election to Redeem; Notice to Trustee

     The election of the Company to redeem any Securities shall be evidenced by or pursuant to a
Board Resolution or any Officers’ Certificate. In the case of any redemption at the election of
the Company of less than all the Securities, if any, of any series, the Company shall, at least 45
days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the principal amount
of Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to
be redeemed. In the case of any redemption of Securities (i) prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or elsewhere in this
Indenture or (ii) pursuant to an election of the Company which is subject to a condition specified
in the terms of such Securities, the Company shall furnish the Trustee with an Officers’
Certificate evidencing compliance with such restriction or condition.

Section 10.3 Selection of Securities to Be Redeemed

     Unless otherwise specified as contemplated by Section 3.1, if less than all the Securities of
a series with the same original issue date, interest rate and Stated Maturity are to be redeemed,
the Trustee, not more than 45 days prior to the redemption date, shall select the Securities of the
series to be redeemed in such manner as the Trustee shall deem fair and appropriate. The Trustee
shall make the selection from Securities of the series that are Outstanding and that have not
previously been called for redemption and may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Securities of that series or any integral
multiple thereof) of the principal amount of Securities of such series of a denomination larger
than the minimum authorized denomination for Securities of that series. The Trustee shall promptly
notify the Company in writing of the Securities selected by the Trustee for redemption and, in the
case of any Securities selected for partial redemption, the principal amount thereof to be
redeemed.

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

Section 10.4 Notice of Redemption

     Unless otherwise specified as contemplated by Section 3.1, notice of redemption shall be given
in the manner provided in Section 1.6 not less than 30 days nor more than 60 days prior to the
Redemption Date to the Holders of the Securities to be redeemed. Notice of redemption shall also
be published by the Company in an Authorized Newspaper once in each of four successive calendar
weeks, the first publication to be not less than 30 nor more than 60 days before the Redemption
Date.

     All notices of redemption shall state:

     (1) the Redemption Date;

     (2) the Redemption Price;

     (3) if fewer than all the Outstanding Securities of a series are
to be redeemed, the identification (and, in the case of partial redemption, the principal
amounts) of the particular Security or Securities to be redeemed;

     (4) in case any Security is to be redeemed in part only, the
notice which relates to such Security shall state that on and after the Redemption Date,
upon surrender of such Security, the holder will

-37-

 

receive, without a charge, a new Security or Securities of authorized denominations for
the principal amount thereof remaining unredeemed;

     (5) the Place or Places of Payment where such Securities maturing
after the Redemption Date, are to be surrendered for payment for the Redemption Price;

     (6) that Securities of the series called for redemption must be
surrendered to the Paying Agent to collect the redemption price;

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

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

     (9) CUSIP number.

     Notice of redemption of Securities to be redeemed shall be given by the Company or, at the
Company’s written request delivered at least 15 days prior to the date such notice is to be given
(unless a shorter period shall be acceptable to the Trustee), by the Trustee in the name and at the
expense of the Company.

Section 10.5 Deposit of Redemption Price

     On or prior to 10:00 a.m., New York City Time, on any Redemption Date, the Company shall
deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 9.3) an amount of money sufficient to pay
on the Redemption Date the Redemption Price of, and (unless the Redemption Date shall be an
Interest Payment Date) interest accrued to the Redemption Date on, all Securities or portions
thereof which are to be redeemed on that date.

     Unless any Security by its terms prohibits any sinking fund payment obligation from being
satisfied by delivering and crediting Securities (including Securities redeemed otherwise than
through a sinking fund), the Company may deliver such Securities to the Trustee for crediting
against such payment obligation in accordance with the terms of such Securities and this Indenture.

Section 10.6 Securities Payable on Redemption Date

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Except as provided in the next
succeeding paragraph, upon surrender of any such Security for redemption in accordance with said
notice, such Security shall be paid by the Company at the Redemption Price, together with accrued
interest to the Redemption Date; provided, however, that, unless otherwise
specified as contemplated by Section 3.1, installments of interest on Securities whose Stated
Maturity is prior to the Redemption Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 3.7.

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

Section 10.7 Securities Redeemed in Part

     Upon surrender of a Security that is redeemed in part at any Place of Payment therefor (with,
if the Company or the Trustee so required, due endorsement by, or a written instrument of transfer
in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), the Company shall execute and the Trustee shall authenticate
and deliver to the Holder of that Security, without service charge, a new Security or Securities of
the same series, the same form and the same Maturity in any authorized denomination equal in
aggregate principal amount to the unredeemed portion of the principal of the Security surrendered.

-38-

 

ARTICLE 11

Sinking Funds

Section 11.1 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 3.1 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.” If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

Section 11.2 Satisfaction of Sinking Fund Payments With Securities

     The Company (i) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (ii) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; 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 sinking fund payment shall be reduced
accordingly.

Section 11.3 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 an Officers’ Certificate 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 and crediting Securities of that series pursuant to Section 11.2
and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days
before each such sinking fund payment date, the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 10.3 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 10.4. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 10.6 and 10.7.

-39-

 

     This Indenture may be executed in any number of counterparts, each of which shall be an
original, but such counterparts shall together constitute but one instrument.

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	PENFORD CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 	 
	 

	 	 	,	 TRUSTEE	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	 	 	 

 

 

EXHIBIT A

FORM OF FACE OF SECURITY

     [If the Security is an Original Issue Discount Security, insert—FOR PURPOSES OF
SECTIONS 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE, THE AMOUNT OF ORIGINAL ISSUE
DISCOUNT ON THIS SECURITY IS      % OF ITS PRINCIPAL AMOUNT AND THE ISSUE DATE IS      , 200    [, —
AND] THE YIELD TO MATURITY IS      %. [THE METHOD USED TO DETERMINE THE YIELD IS
AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT APPLICABLE TO THE SHORT ACCRUAL PERIOD OF      ,
200    TO      , 200    IS      % OF THE PRINCIPAL AMOUNT OF THIS SECURITY.]]

PENFORD CORPORATION

			
	 	 	 
	 
	 	CUSIP:                                        
	 	 	 
	$
	 	No.           

     PENFORD CORPORATION, a corporation duly organized and existing under the laws of the
State of Washington (herein called the “Company,” which term includes any successor corporation
under the Indenture hereinafter referred to), for value received, hereby promises to pay to

     or registered assigns, the principal sum of                      Dollars on
                    [If the Security is to bear interest prior to Maturity, insert—, and to pay interest
thereon from                      or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semiannually on                      and                      in each year, commencing
        , [If the Security is to bear interest at a fixed rate, insert—at the rate of      %
per annum] [if the Security is to bear interest at an adjustable rate, insert—at a rate per
annum computed or determined in accordance with the provisions below], until the principal hereof
is paid or made available for payment [If applicable, insert—, and (to the extent that the
payment of such interest shall be legally enforceable) at the rate of      % per annum on any overdue
principal and premium and on any overdue installment of interest]. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest,
which shall be the            or                     (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture].

     [If the Security is not to bear interest prior to Maturity, insert—The principal of
this Security shall not bear interest except in the case of a default in payment of principal upon
acceleration or redemption or at the Stated Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of      % per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of such default in
payment to the date payment of such principal has been made or duly provided for. Interest on any
overdue principal shall be payable on demand. Any such interest on any overdue principal that is
not so paid on demand shall bear interest at the rate of      % per annum (to the extent that
the payment of such interest shall be legally enforceable), which shall accrue from the date of
such demand for payment to the date payment of such interest has been made or duly provided for,
and such interest shall also be payable on demand.]

     Payment of the principal of (and premium, if any, on) and [if applicable, insert—any
such] interest on this Security will be made at the office or agency of the Company maintained for
that purpose in 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 [if applicable, insert—;
provided, however, that at the option of the Company payment of interest may be
made by check mailed on or before the relevant Interest Payment Date to the address of the Person
entitled thereto as such address shall appear in the Register].

A-1

 

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

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

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

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	PENFORD CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 

A-2

 

FORM OF REVERSE OF SECURITY

This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”) issued and to be issued in one or more series under an Indenture, dated as of
                    , 200    (herein called the “Indenture”), between the Company (which term includes
any successor corporation under the Indenture) and                                                             
        , as Trustee (herein called the “Trustee,” which term includes any successor trustee under the
Indenture with respect to the series of which this Security is a part), to which the Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on the face hereof[,
limited in aggregate principal amount to $                      ].

[If applicable, insert—The Securities of this series are subject to redemption upon not
less than 30 days’ notice by mail, [if applicable, insert—(1) on                      in
any year commencing with the year                      and ending with the year
                     at a Redemption Price equal to       % of the principal amount and (2)] at any time [on or after 200   
], as a whole or in part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [on or before                      ,                     %,
and if redeemed] during the 12-month period beginning                      of the years indicated,

	 	 	 	 	 	 	 
	Year
	 	Redemption Price
	 	Year
	 	Redemption Price
	 
	 
	 
	 

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

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

	 	 	 	 	 	 	 	 	 
	 	 	Redemption Price for Redemption	 	 	Redemption Price for Redemption	 
	 	 	Through Operation of the	 	 	Otherwise Than Through	 
	Year	 	Sinking Fund	 	 	Operation of the Sinking Fund	 
	 
	 	 	 	 	 	 	 	 
	 
	 
	 
	 

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

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

A-3

 

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

     [In the event of redemption of this Security in part only, a new Security or Securities of
this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof.]

     [If applicable, insert—The Securities of this series are subject to the covenant
defeasance provisions set forth in Article Four of the Indenture.]

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

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

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

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

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

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

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

A-4

 

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

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

     This is one of the Securities of a series issued under the within-mentioned Indenture.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	 	,	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	as Trustee	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	                   Authorized Signatory	 	 

A-5

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