Document:

exv4w11

EXHIBIT 4.11

[                     ], as Issuer

[                     ], as Guarantor

Debt Securities

Indenture

Dated as of [          ]

[                     ],

as Trustee

 

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA	 	Indenture
	Section	 	Section
	 
	 	 
	310(a)(1) 
	 	9.10
	(a)(2) 
	 	9.10
	(a)(3) 
	 	N.A.
	(a)(4) 
	 	N.A.
	(b)
	 	9.08; 9.10; 13.02
	(c)
	 	N.A.
	311(a)
	 	9.11
	(b)
	 	9.11
	(c)
	 	N.A.
	312(a)
	 	2.07
	(b)
	 	13.03
	(c)
	 	13.03
	313(a)
	 	9.06
	(b)(1) 
	 	N.A.
	(b)(2) 
	 	9.06
	(c)
	 	9.06; 13.02
	(d)
	 	9.06
	314(a)
	 	4.03; 13.02
	(b)
	 	N.A.
	(c)(1) 
	 	13.04
	(c)(2) 
	 	13.04
	(c)(3) 
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	13.05
	(f)
	 	N.A.
	315(a)
	 	9.01(b)
	(b)
	 	9.05; 13.02
	(c)
	 	9.01(a)
	(d)
	 	9.01(c)
	(e)
	 	8.11
	316(a)(last sentence) 
	 	13.06
	(a)(1)(A)
	 	8.05
	(a)(1)(B)
	 	8.04
	(a)(2) 
	 	N.A.
	(b)
	 	8.07

 

 

	 	 	 
	TIA	 	Indenture
	Section	 	Section
	 
	317(a)(1) 
	 	8.08
	(a)(2) 
	 	8.09
	(b)
	 	2.06
	318(a)
	 	13.01

 

N.A. means Not Applicable.

Note: This cross-reference table shall not, for any purpose, be deemed to be a part of the
Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Incorporation by Reference of Trust Indenture Act
	 	 	5	 
	Section 1.03 Incorporation by Reference of Provisions of Securities
	 	 	5	 
	Section 1.04 Rules of Construction
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 2

THE SECURITIES

	 
	 	 	 	 
	Section 2.01 Forms Generally
	 	 	6	 
	Section 2.02 Form of Trustee’s Certificate of Authentication
	 	 	6	 
	Section 2.03 Amount Unlimited, Issuable in Series
	 	 	6	 
	Section 2.04 Execution and Authentication
	 	 	8	 
	Section 2.05 Registrar and Paying Agent
	 	 	8	 
	Section 2.06 Paying Agent To Hold Money in Trust
	 	 	9	 
	Section 2.07 Securityholder Lists
	 	 	9	 
	Section 2.08 Transfer and Exchange
	 	 	9	 
	Section 2.09 Replacement Securities
	 	 	10	 
	Section 2.10 Outstanding Securities
	 	 	10	 
	Section 2.11 Temporary Securities
	 	 	10	 
	Section 2.12 Cancellation
	 	 	11	 
	Section 2.13 Defaulted Interest
	 	 	11	 
	Section 2.14 Global Securities
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 3

REDEMPTION

	 
	 	 	 	 
	Section 3.01 Notices to Trustee
	 	 	11	 
	Section 3.02 Selection of Securities To Be Redeemed
	 	 	12	 
	Section 3.03 Notice of Redemption
	 	 	12	 
	Section 3.04 Effect of Notice of Redemption
	 	 	13	 
	Section 3.05 Deposit of Redemption Price
	 	 	13	 
	Section 3.06 Securities Redeemed in Part
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 4

COVENANTS

	 
	 	 	 	 
	Section 4.01 Payment of Securities
	 	 	13	 
	Section 4.02 SEC Reports
	 	 	13	 
	Section 4.03 Compliance Certificate
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 5

SUCCESSOR CORPORATION

- i -

 

	 	 	 	 	 
	Section 5.01 When the Company and the Guarantor May Merge, Etc
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 6

SUBORDINATION

	 
	 	 	 	 
	Section 6.01 Agreement to Subordinate
	 	 	14	 
	Section 6.02 Company Not To Make Payments with Respect to Securities in Certain Circumstances
	 	 	14	 
	Section 6.03 Securities Subordinated to Prior Payment of All Senior Indebtedness of the Company on Dissolution, Liquidation or Reorganization of the Company
	 	 	15	 
	Section 6.04 Securityholders To Be Subrogated to Rights of Holders of Senior Indebtedness of the Company
	 	 	16	 
	Section 6.05 Obligation of the Company Unconditional
	 	 	16	 
	Section 6.06 Knowledge of Trustee
	 	 	17	 
	Section 6.07 Application by Trustee of Monies Deposited With It
	 	 	17	 
	Section 6.08 Subordination Rights Not Impaired by Acts or Omissions of Company or Holders of Senior Indebtedness of the Company
	 	 	17	 
	Section 6.09 Securityholders Authorize Trustee To Effectuate Subordination of Securities
	 	 	18	 
	Section 6.10 Right of Trustee To Hold Senior Indebtedness of the Company
	 	 	18	 
	Section 6.11 Article Six Not To Prevent Events of Default
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 7

GUARANTEE

	 
	 	 	 	 
	Section 7.01 Guarantee
	 	 	18	 
	Section 7.02 Agreement To Subordinate
	 	 	19	 
	Section 7.03 Guarantor Not To Make Payments with Respect to Securities in Certain Circumstances
	 	 	20	 
	Section 7.04 Guarantee Subordinated to Prior Payment of All Senior Indebtedness of the Guarantor on Dissolution, Liquidation or Reorganization of the Guarantor
	 	 	20	 
	Section 7.05 Securityholders To Be Subrogated to Rights of Holders of Senior Indebtedness of the Guarantor
	 	 	22	 
	Section 7.06 Obligation of the Guarantor Unconditional
	 	 	22	 
	Section 7.07 Knowledge of Trustee
	 	 	22	 
	Section 7.08 Application by Trustee of Monies Deposited With It
	 	 	23	 
	Section 7.09 Subordination Rights Not Impaired by Acts or Omissions of Guarantor or Holders of Senior Indebtedness of the Guarantor
	 	 	23	 
	Section 7.10 Securityholders Authorize Trustee To Effectuate Subordination of Guarantee
	 	 	23	 
	Section 7.11 Right of Trustee To Hold Senior Indebtedness of the Guarantor
	 	 	23	 
	Section 7.12 Article 7 Not To Prevent Events of Default
	 	 	24	 
	Section 7.13 Execution and Delivery of Guarantee
	 	 	24	 
	Section 7.14 Subordination of Indebtedness Owed by the Company to the Guarantor
	 	 	24	 
	Section 7.15 Officers’ Certificate
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 8

DEFAULTS AND REMEDIES

- ii -

 

	 	 	 	 	 
	Section 8.01 Events of Default
	 	 	24	 
	Section 8.02 Acceleration
	 	 	26	 
	Section 8.03 Other Remedies
	 	 	27	 
	Section 8.04 Waiver of Past Defaults
	 	 	27	 
	Section 8.05 Control by Majority
	 	 	27	 
	Section 8.06 Limitation on Suits
	 	 	27	 
	Section 8.07 Rights of Holders To Receive Payment
	 	 	28	 
	Section 8.08 Collection Suit by Trustee
	 	 	28	 
	Section 8.09 Trustee May File Proofs of Claim
	 	 	28	 
	Section 8.10 Priorities
	 	 	28	 
	Section 8.11 Undertaking for Costs
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 9

TRUSTEE

	 
	 	 	 	 
	Section 9.01 Duties of Trustee
	 	 	29	 
	Section 9.02 Rights of Trustee
	 	 	30	 
	Section 9.03 Individual Rights of Trustee
	 	 	30	 
	Section 9.04 Trustee Disclaimer
	 	 	30	 
	Section 9.05 Notice of Defaults
	 	 	30	 
	Section 9.06 Reports by Trustee to Holders
	 	 	30	 
	Section 9.07 Compensation and Indemnity
	 	 	31	 
	Section 9.08 Replacement of Trustee
	 	 	31	 
	Section 9.09 Successor Trustee by Merger, etc.
	 	 	32	 
	Section 9.10 Eligibility; Disqualification
	 	 	32	 
	Section 9.11 Preferential Collection of Claims Against Company
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 10

CONVERSION OF SECURITIES

	 
	 	 	 	 
	Section 10.01 Applicability of Article
	 	 	32	 
	Section 10.02 Conversion Privilege
	 	 	32	 
	Section 10.03 Manner of Exercise of Conversion Privilege
	 	 	33	 
	Section 10.04 Payment in Lieu of Fractional Shares
	 	 	34	 
	Section 10.05 Adjustment of Conversion Price
	 	 	34	 
	Section 10.06 Notice of Certain Corporate Action
	 	 	36	 
	Section 10.07 Guarantor to Provide Stock
	 	 	37	 
	Section 10.08 Taxes on Conversions
	 	 	37	 
	Section 10.09 Covenant as to Stock
	 	 	37	 
	Section 10.10 Consolidation or Merger
	 	 	38	 
	Section 10.11 Disclaimer of Responsibility for Certain Matters
	 	 	38	 
	 
	 	 	 	 
	ARTICLE 11

DISCHARGE OF INDENTURE

	 
	 	 	 	 
	Section 11.01 Termination of the Company’s and the Guarantor’s Obligations
	 	 	39	 
	Section 11.02 Application of Trust Money
	 	 	39	 

- iii -

 

	 	 	 	 	 
	Section 11.03 Repayment to Company
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 12

AMENDMENTS, SUPPLEMENT AND WAIVERS

	 
	 	 	 	 
	Section 12.01 Without Consent of Holders
	 	 	40	 
	Section 12.02 With Consent of Holders
	 	 	40	 
	Section 12.03 Compliance with Trust Indenture Act
	 	 	41	 
	Section 12.04 Revocation and Effect of Consents
	 	 	41	 
	Section 12.05 Notation on or Exchange of Securities
	 	 	41	 
	Section 12.06 Trustee to Sign Amendments, etc.
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 13

MISCELLANEOUS

	 
	 	 	 	 
	Section 13.01 Trust Indenture Act Controls
	 	 	41	 
	Section 13.02 Notices
	 	 	42	 
	Section 13.03 Communication by Holders with Other Holders
	 	 	42	 
	Section 13.04 Certificate and Opinion as to Conditions Precedent
	 	 	42	 
	Section 13.05 Statements Required in Certificate or Opinion
	 	 	43	 
	Section 13.06 When Treasury Securities Disregarded
	 	 	43	 
	Section 13.07 Rules by Trustee, Paying Agent, Registrar
	 	 	43	 
	Section 13.08 Legal Holidays
	 	 	43	 
	Section 13.09 Governing Law
	 	 	43	 
	Section 13.10 No Adverse Interpretation of Other Agreements
	 	 	43	 
	Section 13.11 No Recourse Against Others
	 	 	44	 
	Section 13.12 Successors
	 	 	44	 
	Section 13.13 Duplicate Originals
	 	 	44	 
	Section 13.14 Counterparts
	 	 	44	 

- iv -

 

     INDENTURE dated as of [                     ] among [                     ], a
[                     ] corporation (the “Company”), [                     ], a
[                     ] corporation (the “Guarantor”), and [                     ], a
[                     ] (the “Trustee”).

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its bonds, debentures, notes and/or other evidences of
indebtedness (herein called the “Securities”), which may be senior secured, senior unsecured,
senior subordinated or subordinated, to be issued in one or more series as in this Indenture
provided.

     The Guarantor has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unconditional guarantee of the Securities (herein called the
“Guarantee”), which may be senior secured, senior unsecured, senior subordinated or subordinated,
as in this Indenture provided.

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

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Definitions.

     “Acceleration Notice” has the meaning provided in Section 8.02.

     “Affiliate” has the meaning provided in Rule 405 promulgated under the Securities Act of 1933,
as amended and in effect on the date hereof.

     “Authorizing Resolution” means a resolution adopted by the Board of Directors or by an Officer
or committee of Officers pursuant to Board delegation authorizing a Series of Securities. An
Authorizing Resolution shall be so adopted by both the Company and the Guarantor.

     “Bankruptcy Law” has the meaning provided in Section 8.01.

     “Board of Directors” means the Board of Directors of the Company or the Guarantor, as the case
may be, or any authorized committee of the Board.

     “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company or the Guarantor, as the case may be, 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” means a day that is not a Legal Holiday.

     “Capital Stock” means the classes of capital stock of a Person as they exist on the date of
this Indenture or as they may be constituted from time to time and warrants, options and similar
rights to acquire such capital stock.

 

 

     “Common Stock” means the Common Stock ($.01 par value) of the Guarantor as the same exists at
the date of this Indenture as originally executed or as such stock may be constituted from time to
time.

     “Company” means the party named as such in this Indenture until a successor replaces it and
thereafter means the successor or any other obligor on the Securities. “Company” shall also mean
the Guarantor in the event the Company fails to perform those duties required by Sections 312
through 317 of the TIA.

     “Consolidated Net Worth” of any Person means the consolidated stockholders’ equity of such
Person, as determined in accordance with generally accepted accounting principles.

     “Conversion Price” means the initial conversion price of Securities of a Series specified in
the Authorizing Resolution establishing the terms of such Series Security, as adjusted in
accordance with the provisions of Article 10.

     “Current Market Price” for any relevant date means, (a) except for purposes of Section 10.04,
the average of the last reported sale prices of the Common Stock for the 30 consecutive Business
Days commencing 45 Business Days before the day in question and (b) for purposes of Section 10.04
only, the last reported sale price of the Common Stock, in either such case as reported on the
composite tape, or similar reporting system, for issues listed on the New York Stock Exchange (or
if the Common Stock is not then listed on that exchange, for issues listed on such other national
securities exchange upon which the Common Stock is listed as may be designated by the Board of
Directors for the purposes hereof) or, if there is no such reported sale on the day or days in
question, on the basis of the average of the closing bid and asked quotations as so reported, or,
if the Common Stock is not listed on any national securities exchange, on the basis of the average
of the high bid and low asked quotations on the day or days in question in the over-the-counter
market as reported by the National Association of Securities Dealers’ Automated Quotations System,
or if not so quoted, as reported by National Quotation Bureau, Incorporated, or any similar
organization, or if not so reported as determined in good faith by the Board.

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

     “Designated Senior Debt of the Company” means any single issue of indebtedness of the Company
constituting Senior Indebtedness of the Company which at the time of determination has an aggregate
principal amount outstanding of at least $25,000,000 and is specifically designated in the
instrument or instruments creating, governing or evidencing such Senior Indebtedness of the Company
as “Designated Senior Debt of [                     ]” (it being understood that the Company’s
guarantee of the Revolving Credit Agreement shall be considered a single issue of indebtedness of
the Company for purposes of this definition).

     “Designated Senior Debt of the Guarantor” means any single issue of indebtedness of the
Guarantor constituting Senior Indebtedness of the Guarantor which at the time of determination has
an aggregate principal amount outstanding of at least $25,000,000 and is specifically designated in
the instrument or instruments creating, governing or evidencing such Senior

- 2 -

 

Indebtedness of the Guarantor as “Designated Senior Debt of [                     ]” (it being
understood that the Guarantor’s guarantee of the Revolving Credit Agreement shall be considered a
single issue of indebtedness of the Guarantor for purposes of this definition).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended. “Event of Default” has
the meaning provided in Section 8.01. “Guarantee” has the meaning provided in Section 7.01.

     “Guarantor” means the party named as such in this Indenture until a successor replaces it and
thereafter means the successor.

     “Holder” or “Securityholder” means the Person in whose name a Security is registered on the
Registrar’s books.

     “Indenture” means this Indenture as amended or supplemented from time to time.

     “Interest Payment Date,” when used with respect to any installment of interest payable on the
Securities, has the meaning provided in Section 1 of the Securities.

     “Legal Holiday” has the meaning provided in Section 13.08.

     “Non-Recourse Indebtedness” means indebtedness or other obligations secured by a lien on
property to the extent that the liability for such indebtedness or other obligations is limited to
the security of the property without liability on the part of the Guarantor or any Subsidiary
(other than the Subsidiary which holds title to such property) for any deficiency.

     “Non-Recourse Judgment” means a judgment in respect of indebtedness or other obligations
secured by a lien on property to the extent that the liability for (i) such indebtedness or other
obligations and (ii) such judgment is limited to such property without liability on the part of the
Guarantor or any Subsidiary (other than the Subsidiary which holds title to such property) for any
deficiency.

     “Officer” means the Chairman of the Board, the President, any Vice President, the Chief
Accounting Officer, the Controller, the Treasurer or the Secretary of the Company or the Guarantor,
as the case may be.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the President
or any Vice President, and by the Chief Accounting Officer, the Controller, the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary of the Company or the Guarantor, as
the case may be. See Sections 13.04 and 13.05.

     “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee. The counsel may be counsel to, but not an employee of, the Company or the Guarantor. See
Sections 13.04 and 13.05.

     “Original Issue Discount Security” means any Security which provides that an amount less than
its principal amount is due and payable upon acceleration after an Event of Default.

- 3 -

 

     “Paying Agent” has the meaning provided in Section 2.05.

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

     “Principal” of a debt security means the principal of the security plus the premium, if any,
on the security.

     “Record Date” for the interest payable on any Interest Payment Date on the Securities has the
meaning provided in Section 1 of the Securities.

     “Registrar” has the meaning provided in Section 2.05.

     “Restricted Subsidiary,” if applicable, has the meaning provided in the Authorizing
Resolution.

     “Revolving Credit Agreement” means the Credit Agreement dated as of [                     ]
among [                             ], as the same may be amended from time to time.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the securities as amended or supplemented from time to time that are
authenticated and issued under this Indenture.

     “Senior Indebtedness of the Company,” if applicable, has the meaning provided in the
Authorizing Resolution.

     “Senior Indebtedness of the Guarantor,” if applicable, has the meaning provided in the
Authorizing Resolution.

     “Series” means a series of Securities or the Securities of a Series. “Special Record Date”
has the meaning provided in Section 2.13.

     “Subsidiary” means any corporation of which at least a majority in interest of the outstanding
stock having by the terms thereof voting power under ordinary circumstances to elect a majority of
the 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, is at the time, directly or indirectly, owned or controlled by the
Guarantor.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect
on the date of this Indenture and as it may be amended from time to time.

     “Trustee” means the party named as such in this Indenture until a successor replaces it and
thereafter means the successor.

- 4 -

 

     “Trust Officer” when used with respect to the Trustee means any officer within the Corporate
Trust Department (or any successor group) of the Trustee, including any Vice President, Assistant
Vice President, 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 and also means,
with respect to a particular corporate trust matter, any other officer to whom such matter is
referred because of such officer’s knowledge of and familiarity with the particular subject.

     Section 1.02 Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made
a part of this Indenture. The following TIA terms used in this Indenture have the following
meanings:

     “commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Securityholder or Holder.

     “indenture to be qualified” means this Indenture.

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

     “obligor on the indenture securities” means the Company, the Guarantor or any other obligor on
the indenture securities.

     All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them.

     Section 1.03 Incorporation by Reference of Provisions of Securities. Whenever this
Indenture refers to a provision of the Securities, the provision is incorporated by reference in
and made a part of this Indenture.

     Section 1.04 Rules of Construction. Unless the context otherwise requires:

          (1) a term has the meaning assigned to it;

          (2) an accounting term not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles at the time of the relevant computation;

          (3) “or” is not exclusive;

          (4) words in the singular include the plural, and in the plural include the singular; and

          (5) provisions apply to successive events and transactions.

- 5 -

 

ARTICLE 2

THE SECURITIES

     Section 2.01 Forms Generally. The Securities and the Guarantee, respectively, of each
series shall be in such forms (including global form) as shall be established by or pursuant to an
Authorizing Resolution or in one or more supplemental indentures hereto, in each case with such
appropriate provisions as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or depositary therefor or as may,
consistent herewith, be determined appropriate by the Officers executing such Securities, as
evidenced by their execution thereof. If the form of any series of Securities is established by
action taken pursuant to an Authorizing Resolution, a copy of an appropriate record of such action
shall be certified by the Secretary or any Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of a written order of the Company signed by two Officers or an
Officer and an Assistant Treasurer of the Company for the authentication and delivery of such
Securities.

     The definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, provided that such method is permitted by the rules of any
securities exchange on which such Securities may be listed, all as determined by the Officers
executing such Securities, as evidenced by their execution of such Securities.

     The terms and provisions in the Securities shall constitute, and are hereby expressly made, a
part of this Indenture.

     Section 2.02 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 the series designated herein referred to in the
within mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	[                     ] as Trustee	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory
	 	 

     Section 2.03 Amount Unlimited, Issuable in Series. The aggregate principal amount of
Securities that may be issued under this Indenture is unlimited. The Securities may be issued from
time to time in one or more Series. Each Series shall be created by an Authorizing Resolution or a
supplemental indenture that establishes the terms of the Series, which may include the following:

          (1) the title of the Series;

          (2) any limit upon the aggregate principal amount of the Series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of other Securities which, pursuant to Sections
2.08, 2.09, 2.11 or 10.05 and except for any Securities which, pursuant to Section 2.04, are deemed
never to have been authenticated and delivered hereunder);

- 6 -

 

          (3) the interest rate or method of calculation of the interest rate;

          (4) the date from which interest will accrue;

          (5) the Record Dates for interest payable on Securities of the Series;

          (6) the dates when, places where and manner in which principal and interest are payable;

          (7) the Registrar and Paying Agent;

          (8) the terms of any mandatory or optional redemption by the Company;

          (9) the terms of any redemption at the option of Holders;

          (10) the denominations in which Securities are issuable;

          (11) whether Securities will be issued in registered or bearer form and the terms of any such
forms of Securities;

          (12) whether any Securities will be represented by a global Security and the terms of any such
global Security;

          (13) the currencies (including any composite currency) in which principal or interest or both
may be paid;

          (14) if payments of principal or interest may be made in a currency other than that in which
Securities are denominated, the manner for determining such payments;

          (15) provisions for electronic issuance of Securities or issuance of Securities in
uncertificated form;

          (16) any Events of Default or covenants in addition to or in lieu of those set forth in this
Indenture;

          (17) whether and upon what terms Securities may be defeased;

          (18) the respective forms of the Securities and the Guarantees;

          (19) whether the Securities of such Series will be convertible into Common Stock of the
Guarantor and the terms thereof (including without limitation the Conversion Price, the conversion
period and any other provision in addition to or in lieu of those set forth in this Indenture);

          (20) whether the Securities and Guarantees of such Series shall be subordinated to any
obligations of the Company or the Guarantor, and the obligations to which such subordination will
apply;

- 7 -

 

          (21) whether the Securities of such Series and/or the Guarantees of such Series will be
secured and, if applicable, any provisions for securing all or any portion of the indebtedness
evidenced by the Securities of such Series and/or the Guarantees of such Series;

          (22) any terms that may be required by or advisable under applicable law; and

          (23) any other terms not inconsistent with this Indenture.

     All Securities of one Series need not be issued at the same time and, unless otherwise
provided, a Series may be reopened for issuances of additional Securities of such Series pursuant
to an Authorizing Resolution, an Officers’ Certificate or in any indenture supplemental hereto.

     The creation and issuance of a Series and the authentication and delivery thereof are not
subject to any conditions precedent.

     Section 2.04 Execution and Authentication. Two Officers shall sign the Securities for
the Company by manual or facsimile signature. The Company’s seal shall be reproduced on the
Securities. Two Officers of the Guarantor shall sign the notation of the Guarantee by manual or
facsimile signature.

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

     A Security shall not be valid until the Trustee manually signs the certificate of
authentication on the Security. The signature shall be conclusive evidence that the Security has
been authenticated under this Indenture.

     The Trustee shall authenticate Securities for original issue upon a written order of the
Company signed by two Officers or by an Officer and an Assistant Treasurer of the Company. Each
Security shall be dated the date of its authentication. In authenticating Securities, and
accepting the additional responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to the TIA) shall be fully protected in relying
upon, an Opinion of Counsel stating that all conditions precedent to the authentication and
delivery of the Securities have been complied with and that the Securities have been duly executed
and, when the Securities have been duly authenticated and delivered by the Trustee, will be duly
issued and delivered and will constitute valid and legally binding obligations of the Company,
enforceable in accordance with their terms, subject to any applicable bankruptcy, insolvency
(including, without limitation, all laws relating to fraudulent transfers), reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and subject to
the effect of general principles of equity, including, without limitation, concepts of materiality,
reasonableness, good faith and fair dealing (regardless of whether enforcement is considered in a
proceeding in equity or at law).

     Section 2.05 Registrar and Paying Agent. The Company shall maintain an office or
agency where Securities may be presented for registration of transfer, for exchange or, if
applicable, for conversion (in the case of conversion, as agent for the Guarantor) (“Registrar”)
and an office or agency where Securities may be presented for payment (“Paying Agent”). The

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Registrar shall keep a register of the Securities and of their transfer. The Company may have
one or more co-registrars and one or more additional paying agents. The term “Paying Agent”
includes any additional paying agent.

     The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent
or co-registrar not a party to this Indenture. The agreement shall implement the provisions of
this Indenture that relate to such agent. The Company shall notify the Trustee of the name and
address of any such agent. If the Company fails to maintain a Registrar or Paying Agent, the
Trustee shall act as such.

     The Company initially appoints the Trustee as Registrar and Paying Agent.

     Section 2.06 Paying Agent To Hold Money in Trust. Each Paying Agent shall hold in
trust for the benefit of the Securityholders or the Trustee all money held by the Paying Agent for
the payment of principal or interest on the Securities, and shall notify the Trustee of any default
by the Company (or any other obligor on the Securities) in making any such payment. While any such
default continues, the Trustee shall require a Paying Agent to pay all money held by it to the
Trustee. If the Company or a Subsidiary acts as Paying Agent, it shall segregate the money and
hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all
money held by it to the Trustee. Upon doing so the Paying Agent shall have no further liability
for the money.

     Section 2.07 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
Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee on
or before each Interest Payment Date and at such other times as the Trustee may request in writing
a list in such form and as of such date as the Trustee may reasonably require of the names and
addresses of Securityholders.

     Section 2.08 Transfer and Exchange. Where a Security is presented to the Registrar or
a co-registrar with a request to register a transfer, the Registrar shall register its transfer as
requested if its reasonable requirements are met. Where Securities are presented to the Registrar
or a co-registrar with a request to exchange them for an equal principal amount of Securities of
other denominations, the Registrar shall make the exchange as requested if the same requirements
are met. To permit transfers and exchanges, the Trustee shall authenticate Securities at the
Registrar’s request. The Registrar need not transfer or exchange any Security selected for
redemption, except the unredeemed part thereof if the Security is redeemed in part, or transfer or
exchange any Securities for a period of 15 days before a selection of Securities to be redeemed.
The Company may charge a reasonable fee for any transfer or exchange (including the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in connection with
any such transfer or exchange and any other expenses in connection therewith) but not for any
exchange pursuant to Section 2.11, 3.06 or 12.05. This Section 2.08 is subject to the provisions
of any series of the Securities providing for the subordination or seniority of such series and the
related Guarantees of such series in right of payment to other indebtedness of the Company and the
Guarantor, respectively.

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     Section 2.09 Replacement Securities. If the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee
shall authenticate a replacement Security and the Guarantor shall endorse the Guarantee thereon if
the Trustee’s reasonable requirements are met. An indemnity bond must be sufficient in the
judgment of the Company, the Guarantor and the Trustee to protect the Company, the Guarantor, the
Trustee, the Paying Agent, the Registrar or any co-registrar from any loss which any of them may
suffer if a Security is replaced. The Company may charge for its expenses in replacing a Security.

     Every replacement Security is an additional obligation of the Company and the Guarantor.

     Section 2.10 Outstanding Securities. Securities outstanding at any time are all
Securities authenticated by the Trustee except for those presented to it by the Company or its
designee for cancellation and those described in this Section as not outstanding. A Security does
not cease to be outstanding because the Company, the Guarantor or one of their Affiliates holds the
Security.

     If a Security is replaced pursuant to Section 2.09, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

     If the Paying Agent holds on a redemption date or maturity date money sufficient to pay
Securities payable on that date, then on and after that date such Securities cease to be
outstanding and interest on them ceases to accrue.

     If a Security is called for redemption or if it matures in less than six months and if the
Company has satisfied its obligation to pay the Security, or if a Security has been converted in
accordance with the provisions of Article 10, the Company and the Trustee need not treat the
Security as outstanding in determining whether Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent.

     For each series of Original Issue Discount Securities, the principal amount of such Securities
that shall be deemed to be outstanding and used to determine whether the necessary Holders have
given any request, demand, authorization, direction, notice, consent or waiver shall be the
principal amount of such Securities that could be declared to be due and payable upon acceleration
upon an Event of Default as of the date of such determination. When requested by the Trustee, the
Company will advise the Trustee of such amount, showing its computations in reasonable detail.

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

     Section 2.11 Temporary Securities. Until definitive Securities are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary Securities and the
Guarantor shall endorse the Guarantee thereon. Temporary Securities shall be substantially in

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the form of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and
the Trustee shall authenticate definitive Securities and the Guarantor shall endorse the Guarantee
thereon in exchange for temporary Securities.

     Section 2.12 Cancellation. The Company at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for transfer, exchange, conversion or payment. The Trustee and no
one else shall cancel and destroy all Securities surrendered for transfer, exchange, conversion,
payment or cancellation in accordance with its customary procedure. Unless the Authorizing
Resolution so provides, the Company may not issue new Securities to replace Securities it has paid
or delivered to the Trustee for cancellation.

     Section 2.13 Defaulted Interest. If the Company defaults in a payment of interest on
the Securities, it shall pay the defaulted interest in any lawful manner. It may pay the defaulted
interest, plus any interest payable on the interest (to the extent lawful) if an Event of Default
has occurred and is continuing, to the Persons who are Securityholders on a subsequent special
record date (the “Special Record Date”). The Company shall fix the subsequent Special Record Date
and payment date. At least 15 days before such Special Record Date, the Company shall give notice
to the Trustee and shall mail to each Securityholder a notice that states the subsequent Special
Record Date, the payment date, and the amount of defaulted interest to be paid.

     Section 2.14 Global Securities. Unless the Authorizing Resolution provides otherwise,
the Company may issue some or all of the Securities of a Series in temporary or permanent global
form. A global Security shall represent that amount of Securities of a Series as specified in the
global Security or as endorsed thereon from time to time. At the Company’s request, the Registrar
shall endorse a global Security to reflect the amount of any increase or decrease in the Securities
represented thereby.

     The Company may issue a global Security only to a depositary designated by the Company. A
depositary may transfer a global Security only as a whole to its nominee or to a successor
depositary.

     The Authorizing Resolution may establish, among other things, the manner of paying principal
and interest on a global Security and whether and upon what terms a beneficial owner of an interest
in a global Security may exchange such interest for definitive Securities.

     The Company and the Trustee shall not be responsible for any acts or omissions of a
depositary, for any depositary records of beneficial ownership interests or for any transactions
between the depositary and beneficial owners.

ARTICLE 3

REDEMPTION

     Section 3.01 Notices to Trustee. Securities of a Series that are redeemable prior to
maturity shall be redeemable in accordance with their terms and, unless the Authorizing Resolution
provides otherwise, in accordance with this Article.

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     If the Company wants to redeem Securities pursuant to Paragraph 5 of the Securities, it shall
notify the Trustee in writing of the redemption date and the principal amount of Securities to be
redeemed. Any such notice may be canceled at any time prior to notice of such redemption being
mailed to Holders. Any such canceled notice shall be void and of no effect.

     If the Company wants to credit any Securities previously redeemed, retired or acquired against
any redemption pursuant to Paragraph 6 of the Securities, it shall notify the Trustee of the amount
of the credit and it shall deliver any Securities not previously delivered to the Trustee for
cancellation with such notice.

     The Company shall give each notice provided for in this Section 3.01 at least 10 Business Days
before the notice of any such redemption is to be mailed to Holders (unless a shorter notice shall
be satisfactory to the Trustee).

     Section 3.02 Selection of Securities To Be Redeemed. If less than all the Securities
of a Series are to be redeemed, the Trustee shall select the Securities to be redeemed, if the
Securities of such Series are listed on a national securities exchange, in accordance with the
rules of such exchange, or if the Securities of such Series are not so listed, on either a pro rata
basis or by lot or by such method as the Trustee shall deem fair and appropriate. The Trustee
shall make the selection from Securities outstanding and not previously called for redemption.
Securities in denominations of $1,000 may only be redeemed in whole. The Trustee may select for
redemption portions (equal to $1,000 or any integral multiple thereof) of the principal of
Securities that have denominations larger than $1,000. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called for redemption.

     Section 3.03 Notice of Redemption. At least 30 days but not more than 60 days before
a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder
of Securities to be redeemed.

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

          (1) the redemption date;

          (2) the redemption price;

          (3) the name and address of the Paying Agent;

          (4) in the event that any Security is to be redeemed in part only, the portion of the
principal amount thereof to be redeemed and that on and after the redemption date, upon surrender
of such Security, a new Security or Securities in principal amount equal to the unredeemed portion
thereof will be issued;

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

          (6) that interest on Securities called for redemption ceases to accrue on and after the
redemption date;

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          (7) that the Securities are being redeemed pursuant to the mandatory redemption or the
optional redemption provisions, as applicable; and

          (8) if applicable, the current Conversion Price and the date on which the right to convert the
Securities into Common Stock will expire.

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

     Section 3.04 Effect of Notice of Redemption. Once notice of redemption is mailed,
Securities called for redemption become due and payable on the redemption date and at the
redemption price. Upon surrender to the Paying Agent, such Securities shall be paid at the
redemption price, plus accrued interest to the redemption date.

     Section 3.05 Deposit of Redemption Price. Prior to the redemption date, the Company
or its designee shall deposit with the Paying Agent money sufficient to pay the redemption price of
and accrued and unpaid interest on all Securities to be redeemed on that date.

     Section 3.06 Securities Redeemed in Part . Upon surrender of a Security that is
redeemed in part, the Trustee shall authenticate for the Holder a new Security and the Guarantor
shall endorse the Guarantee thereon equal in principal amount to the unredeemed portion of the
Securities surrendered.

ARTICLE 4

COVENANTS

     Section 4.01 Payment of Securities. The Company shall pay the principal of and
interest on Securities of a Series on the dates and in the manner provided in the Securities of the
Series An installment of principal or interest shall be considered paid on the date due if the
Trustee or Paying Agent holds on that date immediately available legal tender funds designated for,
available and sufficient to pay the installment.

     The Company shall pay interest on overdue principal at the rate borne by the Series; it shall
pay interest on overdue installments of interest at the same rate to the extent lawful.

     Section 4.02 SEC Reports. Within 15 days after each of the Guarantor and the Company
files with the SEC copies of its annual reports and other information, documents and reports (or
copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe)
which they are required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act,
the Guarantor and the Company shall file the same with the Trustee. If the Guarantor shall cease
to be subject to the requirements of Section 13 or 15(d) of the Exchange Act, the Guarantor shall
file with the Trustee, within 15 days after the last date on which it would have been required to
make such a filing with the SEC, financial statements, including any notes thereto, and a
“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” each
comparable to that which the Guarantor would have been required to include in such annual reports,
information, documents or other reports, if the Guarantor were then subject to the requirements of
Section 13 or 15(d) of the Exchange Act.

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The Company and the Guarantor also shall comply with the other provisions of TIA Section
314(a).

     Section 4.03 Compliance Certificate. The Company and the Guarantor each shall deliver
to the Trustee within 120 days after the end of their respective fiscal year an Officers’
Certificate satisfying the requirements of Section 3.14(a)(4) of the TIA and stating whether or not
the signers know of any Default or Event of Default. If they do know of such a Default or Event of
Default, the certificate shall describe the Default or Event of Default.

ARTICLE 5

SUCCESSOR CORPORATION

     Section 5.01 When the Company and the Guarantor May Merge, Etc. Neither the Company
nor the Guarantor shall consolidate with or merge into, or transfer all or substantially all of its
assets to, any other person unless (i) such other Person is a corporation organized and existing
under the laws of the United States or a State thereof or the District of Columbia and expressly
assumes by supplemental indenture all the obligations of the Company or the Guarantor under the
Indenture and either the Securities or the Guarantee, as the case may be; and (ii) immediately
after giving effect to such transaction no Default or Event of Default shall have occurred and be
continuing. Thereafter all such obligations of the predecessor corporation shall terminate.

ARTICLE 6

SUBORDINATION

     Section 6.01  Agreement to Subordinate. The provisions of this Article 6 shall apply
to the Securities of a Series to the extent specified in the Authorizing Resolution relating to
such Series. Each reference in this Article 6 to “a Security” or “the Securities” refers to the
Securities of each such Series so designated.

     The Company, for itself and its successors, and each Holder, by accepting Securities, agrees
that the payment of the principal of, interest on or any other amounts due on the Securities are
subordinated in right of payment, to the extent and in the manner stated in this Article 6, to the
prior payment in full of all Senior Indebtedness of the Company. Each Holder by accepting
Securities authorizes and directs the Trustee on behalf of such Holder to take such action as may
be necessary or appropriate to effectuate, as between the holders of Senior Indebtedness of the
Company and such Holder, the subordination provided in this Article 6 and appoints the Trustee
attorney-in-fact for such Holder for such purpose.

     This Article 6 shall constitute a continuing offer to all Persons who, in reliance upon such
provisions, become holders of, or continue to hold, Senior Indebtedness of the Company, and such
provisions are made for the benefit of the holders of Senior Indebtedness of the Company and such
holders are made obligees hereunder and they and/or each of them may enforce such provisions.

     Section 6.02 Company Not To Make Payments with Respect to Securities in Certain
Circumstances.

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          (a) Upon the maturity of any Senior Indebtedness of the Company by lapse of time, acceleration
(unless waived) or otherwise, all principal thereof and interest thereon shall first be paid in
full, or such payment duly provided for in cash or in a manner satisfactory to the holders of such
Senior Indebtedness of the Company, before any payment is made on account of the principal of or
interest on the Securities or to acquire any of the Securities.

          (b) In the event that notwithstanding the provisions of this Section 6.02 the Company shall
make any payment to the Trustee on account of the principal of or interest on the Securities after
the happening of a default in payment of the principal of or interest on Senior Indebtedness of the
Company, then, unless and until such default shall have been cured or waived or shall have ceased
to exist, such payment (subject to the provisions of Sections 6.06 and 6.07) shall be held by the
Trustee, in trust for the benefit of, and shall be paid forthwith over and delivered to, the
holders of Senior Indebtedness of the Company (pro rata as to each of such holders on the basis of
the respective amounts of Senior Indebtedness of the Company held by them) or their representative
or the trustee under the indenture or other agreement (if any) pursuant to which Senior
Indebtedness of the Company may have been issued, as their respective interests may appear, for
application to the payment of all Senior Indebtedness of the Company remaining unpaid to the extent
necessary to pay all Senior Indebtedness of the Company in full in accordance with its terms, after
giving effect to any concurrent payment or distribution to or for the holders of the Senior
Indebtedness of the Company.

     The Company shall give prompt written notice to the Trustee of any default in the payment of
principal of or interest on any Senior Indebtedness of the Company.

     Section 6.03 Securities Subordinated to Prior Payment of All Senior Indebtedness of the
Company on Dissolution, Liquidation or Reorganization of the Company. Upon any distribution of
assets of the Company in any dissolution, winding up, liquidation or reorganization of the Company
(whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the
benefits of creditors or otherwise):

          (a) the holders of all Senior Indebtedness of the Company shall first be entitled to receive
payment in full of the principal thereof and interest due thereon before the Holders of the
Securities are entitled to receive any payment on account of the principal of or interest on the
Securities;

          (b) any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, to which the Holders of the Securities or the Trustee on behalf of
the Holders of the Securities would be entitled except for the provisions of this Article 6,
including any such payment or distribution which may be payable or deliverable by reason of the
payment of any other indebtedness of the Company being subordinated to the payment of the
Securities, shall be paid by the liquidating trustee or agent or other Person making such payment
or distribution directly to the holders of the Senior Indebtedness of the Company or their
representative, or to the trustee under any indenture under which Senior Indebtedness of the
Company may have been issued (pro rata as to each such holder, representative or trustee on the
basis of the respective amounts of unpaid Senior Indebtedness of the Company held or represented by
each), to the extent necessary to make payment in full of all Senior Indebtedness of the Company
remaining unpaid, after giving effect to any concurrent

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payment or distribution or provision therefor to the holders of such Senior Indebtedness of
the Company, except that Holders of the Securities would be entitled to receive securities that are
subordinated to Senior Indebtedness of the Company to at least the same extent as the Securities;
and

          (c) in the event that notwithstanding the foregoing provisions of this Section 6.03, any
payment or distribution of assets of the Company of any kind or character whether in cash, property
or securities, including any such payment or distribution which may be payable or deliverable by
reason of the payment of any other indebtedness of the Company being subordinated to the payment of
the Securities, shall be received by the Trustee or the Holders of the Securities on account of
principal of or interest on the Securities before all Senior Indebtedness of the Company is paid in
full, or effective provision made for its payment, such payment or distribution (subject to the
provisions of Sections 6.06 and 6.07) shall be received and held in trust for and shall be paid
over to the holders of the Senior Indebtedness of the Company remaining unpaid or unprovided for or
their representative, or to the trustee under any indenture under which such Senior Indebtedness of
the Company may have been issued (pro rata as provided in subsection (b) above), for application to
the payment of such Senior Indebtedness of the Company until all such Senior Indebtedness of the
Company shall have been paid in full, after giving effect to any concurrent payment or distribution
or provision therefor to the holders of such Senior Indebtedness of the Company, except that
Holders of the Securities would be entitled to receive securities that are subordinated to Senior
Indebtedness of the Company to at least the same extent as the Securities.

     The Company shall give prompt written notice to the Trustee of any dissolution, winding up,
liquidation or reorganization of the Company.

     Section 6.04 Securityholders To Be Subrogated to Rights of Holders of Senior Indebtedness
of the Company. Subject to the payment in full of all Senior Indebtedness of the Company, the
Holders of the Securities shall be subrogated equally and ratably to the rights of the holders of
the Senior Indebtedness of the Company to receive payments or distributions of assets of the
Company applicable to the Senior Indebtedness of the Company until all amounts owing on the
Securities shall be paid in full, and for the purpose of such subrogation no payments or
distributions to the holders of the Senior Indebtedness of the Company by or on behalf of the
Company or by or on behalf of the Holders of the Securities by virtue of this Article 6 which
otherwise would have been made to the Holders of the Securities shall, as among the Company, its
creditors other than holders of the Senior Indebtedness of the Company and the Holders of the
Securities, be deemed to be payment by the Company to or on account of the Senior Indebtedness of
the Company, it being understood that the provisions of this Article 6 are intended solely for the
purpose of defining the relative rights of the Holders of the Securities, on the one hand, and the
holders of the Senior Indebtedness of the Company, on the other hand.

     Section 6.05 Obligation of the Company Unconditional. Nothing contained in this
Article 6 or elsewhere in this Indenture or in any Security is intended to or shall impair, as
between the Company and the Holders of the Securities, the obligation of the Company, which is
absolute and unconditional, to pay to the Holders of the Securities the principal of and interest
on the Securities as and when the same shall become due and payable in accordance with their terms,
or is intended to or shall affect the relative rights of the Holders of the Securities and

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creditors of the Company other than the holders of the Senior Indebtedness of the Company, nor
shall anything herein or therein prevent the Trustee or the Holder of any Security from exercising
all remedies otherwise permitted by applicable law upon default under this Indenture, subject to
the rights, if any, under this Article 6 of the holders of Senior Indebtedness of the Company in
respect of cash, property or securities of the Company received upon the exercise of any such
remedy. Upon any distribution of assets of the Company referred to in this Article 6, the Trustee,
subject to the provisions of Sections 9.01 and 9.02, and the Holders of the Securities shall be
entitled to rely upon any order or decree made by any court of competent jurisdiction in which such
dissolution, winding up, liquidation or reorganization proceedings are pending, or a certificate of
the liquidating trustee or agent or other Person making any distribution to the Trustee or the
Holders of the Securities, for the purpose of ascertaining the Persons entitled to participate in
such distribution, the holders of the Senior Indebtedness of the Company and other Indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article 6.

     Nothing contained in this Article 6 or elsewhere in this Indenture or in any Security is
intended to or shall affect the obligation of the Company to make, or prevent the Company from
making, at any time except during the pendency of any dissolution, winding up, liquidation or
reorganization proceeding, and except during the continuance of any default specified in Section
6.02 (not cured or waived), payments at any time of the principal of or interest on the Securities.

     Section 6.06 Knowledge of Trustee. Notwithstanding any provision of this Indenture,
the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit
the making of any payment of monies to or by the Trustee until two Business Days after the Trustee
shall have received written notice thereof from the Company, any Securityholder or any Paying Agent
or the holder or representative of any class of Senior Indebtedness of the Company.

     Section 6.07 Application by Trustee of Monies Deposited With It. If at least two
Business Days prior to the date on which by the terms of this Indenture any monies deposited with
the Trustee or any Paying Agent may become payable for any purpose (including, without limitation,
the payment of either the principal of or the interest on any Security) the Trustee shall not have
received with respect to such monies the notice provided for in Section 6.06, then the Trustee
shall have full power and authority to receive such monies and to apply the same to the purpose for
which they were received and shall not be affected by any notice to the contrary which may be
received by it on or after such date. This Section shall be construed solely for the benefit of
the Trustee and such Paying Agent and shall not otherwise affect the rights of holders of Senior
Indebtedness of the Company.

     Section 6.08 Subordination Rights Not Impaired by Acts or Omissions of Company or Holders
of Senior Indebtedness of the Company. No right of any present or future holders of any Senior
Indebtedness of the Company to enforce subordination as provided herein shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with
the terms of this Indenture, regardless of any knowledge thereof which any such holder may have or
be otherwise charged with. The holders of Senior Indebtedness of the Company may extend, renew,
modify or amend the terms of the Senior Indebtedness of the

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Company or any security therefor and release, sell or exchange such security and otherwise
deal freely with the Company, all without affecting the liabilities and obligations of the parties
to this Indenture or the Holders. No provision in any supplemental indenture which affects the
superior position of the holders of Senior Indebtedness of the Company shall be effective against
the holders of Senior Indebtedness of the Company who have not consented thereto.

     Section 6.09 Securityholders Authorize Trustee To Effectuate Subordination of
Securities. Each Holder of Securities by acceptance thereof authorizes and expressly directs
the Trustee on its, his or her behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article 6 and appoints the Trustee its, his or her
attorney-in-fact for such purpose, including, in the event of any dissolution, winding up,
liquidation or reorganization of the Company (whether in bankruptcy, insolvency or receivership
proceedings or upon an assignment for the benefit of creditors or otherwise) tending towards
liquidation of the business and assets of the Company, the immediate filing of a claim for the
unpaid balance of its, his or her Securities in the form required in said proceedings and cause
said claim to be approved. If the Trustee does not file a proper claim or proof of debt in the
form required in such proceedings prior to 30 days before the expiration of the time to file such
claim or claims, then the holders of Senior Indebtedness of the Company have the right to file and
are hereby authorized to file an appropriate claim for and on behalf of the Holders of said
Securities.

     Section 6.10 Right of Trustee To Hold Senior Indebtedness of the Company. The Trustee
shall be entitled to all of the rights set forth in this Article 6 in respect of any Senior
Indebtedness of the Company at any time held by it to the same extent as any other holder of Senior
Indebtedness of the Company and nothing in this Indenture shall be construed to deprive the Trustee
of any of its rights as such holder.

     Section 6.11 Article Six Not To Prevent Events of Default. The failure to make a
payment on account of principal or interest by reason of any provision in this Article 6 shall not
be construed as preventing the occurrence of an Event of Default under Section 8.01.

ARTICLE 7

GUARANTEE

     Section 7.01 Guarantee. The Guarantor hereby unconditionally guarantees (such
guarantee to be referred to herein as the “Guarantee”) to each Holder of a Security authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the
validity and enforceability of this Indenture, the Securities or the obligations of the Company
hereunder or thereunder, (i) the due and punctual payment of the principal of and any interest on
the Securities, whether at maturity or on an Interest Payment Date, by acceleration or otherwise,
and interest on the overdue principal of and interest, if any, on the Securities, if lawful, and
all other obligations of the Company to the Holders or the Trustee hereunder or under the
Securities shall be promptly paid in full, all in accordance with the terms hereof and thereof
including all amounts payable to the Trustee under Section 9.07 hereof, and (ii) in case of any
extension of time of payment or renewal of any Securities or any of such other obligations, that
the same shall be promptly paid in full when due or to be performed in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration or otherwise.

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     If the Company fails to make any payment when due of any amount so guaranteed for whatever
reason, the Guarantor shall be obligated to pay the same immediately. The Guarantor hereby agrees
that its obligations hereunder shall be continuing, absolute and unconditional, irrespective of,
and shall be unaffected by, the validity, regularity or enforceability of the Securities, this
Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of
the Securities or the Trustee with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of the Guarantor. The Guarantor
hereby waives diligence, presentment, demand of payment, demand of performance, filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, the benefit of discussion, protest, notice and all demand
whatsoever and covenants that this Guarantee shall not be discharged except by complete performance
of the obligations contained in the Securities, in this Indenture and in this Article 7. If any
Securityholder or the Trustee is required by any court or otherwise to return to the Company or the
Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to
the Company or the Guarantor, any amount paid by the Company or the Guarantor to the Trustee or
such Securityholder, this Article 7, to the extent theretofore discharged, shall be reinstated in
full force and effect. The Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Securityholders in respect of any obligations guaranteed hereby
until payment in full of all obligations guaranteed hereby. The Guarantor further agrees that, as
between the Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, (i) the
maturity of the obligations guaranteed hereby may be accelerated as provided in Article 8 for the
purposes of the Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (ii) in the event of any
declaration of acceleration of such obligations as provided in Article 8 such obligations (whether
or not due and payable) shall forthwith become due and payable by the Guarantor for the purpose of
this Article 7. In addition, without limiting the foregoing, upon the effectiveness of an
acceleration under Article 8, the Trustee may make a demand for payment on the Securities under the
Guarantee provided hereunder and not discharged.

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

     The Guarantee set forth in this Section 7.01 shall not be valid or become obligatory for any
purpose with respect to a Security until the certificate of authentication on such Security shall
have been signed by the Trustee or any duly appointed agent.

     Section 7.02 Agreement To Subordinate. The provisions of this Article 7 shall apply
to the Securities of a Series to the extent specified in the Authorizing Resolution relating to
such Series. Each reference in this Article 7 to “a Security” or “the Securities” refers to the
Securities of each such Series so designated.

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     The Guarantor, for itself and its successors, and each Holder, by accepting the Securities,
agrees that the payment of the principal of, interest on and any other amounts due on the
Securities pursuant to the Guarantee are subordinated in right of payment, to the extent and in the
manner stated in this Article 7, to the prior payment in full of all Senior Indebtedness of the
Guarantor. Each Holder by accepting Securities authorizes and directs the Trustee on behalf of
such Holder to take such action as may be necessary or appropriate to effectuate, as between the
holders of Senior Indebtedness of the Guarantor and such Holder, the subordination provided in this
Article 7 and appoints the Trustee attorney-in-fact for such Holder for such purpose.

     This Article shall constitute a continuing offer to all Persons who, in reliance upon such
provisions, become holders of, or continue to hold, Senior Indebtedness of the Guarantor, and such
provisions are made for the benefit of the holders of Senior Indebtedness of the Guarantor, and
such holders are made obligees hereunder and they and/or each of them may enforce such provisions.

     Section 7.03 Guarantor Not To Make Payments with Respect to Securities in Certain
Circumstances.

          (a) Upon the maturity of any Senior Indebtedness of the Guarantor by lapse of time,
acceleration (unless waived) or otherwise, all principal thereof and interest thereon shall first
be paid in full, or such payment duly provided for in cash or in a manner satisfactory to the
holders of such Senior Indebtedness of the Guarantor, before any payment, pursuant to the
Guarantee, is made on account of the principal of or interest on the Securities or to acquire any
of the Securities.

          (b) In the event that notwithstanding the provisions of this Section 7.03 the Guarantor shall
make any payment to the Trustee on account of the principal of or interest on the Securities after
the happening of a default in payment of the principal of or interest on Senior Indebtedness of the
Guarantor, then, unless and until such default shall have been cured or waived or shall have ceased
to exist, such payment (subject to the provisions of Sections 7.07 and 7.08) shall be held by the
Trustee, in trust for the benefit of, and shall be paid forthwith over and delivered to, the
holders of Senior Indebtedness of the Guarantor (pro rata as to each of such holders on the basis
of the respective amounts of Senior Indebtedness of the Guarantor held by them) or their
representative or the trustee under the indenture or other agreement (if any) pursuant to which
Senior Indebtedness of the Guarantor may have been issued, as their respective interests may
appear, for application to the payment of all Senior Indebtedness of the Guarantor remaining unpaid
to the extent necessary to pay all Senior Indebtedness of the Guarantor in full in accordance with
its terms, after giving effect to any concurrent payment or distribution to or for the holders of
Senior Indebtedness of the Guarantor.

     The Guarantor shall give prompt written notice to the Trustee of any default in the payment of
principal of or interest on any Senior Indebtedness of the Guarantor.

     Section 7.04 Guarantee Subordinated to Prior Payment of All Senior Indebtedness of the
Guarantor on Dissolution, Liquidation or Reorganization of the Guarantor. Upon any
distribution of assets of the Guarantor in any dissolution, winding up, liquidation or

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reorganization of the Guarantor (whether in bankruptcy, insolvency or receivership proceedings
or upon an assignment for the benefit of creditors or otherwise):

          (a) the holders of all Senior Indebtedness of the Guarantor shall first be entitled to receive
payment in full of the principal thereof and interest due thereon before the Holders of the
Securities are entitled to receive any payment on account of the principal of or interest on the
Securities pursuant to the Guarantee;

          (b) any payment or distribution of assets of the Guarantor of any kind or character, whether
in cash, property or securities, to which the Holders of the Securities or the Trustee on behalf of
the Holders of the Securities would be entitled except for the provisions of this Article 7,
including any such payment or distribution which may be payable or deliverable by reason of the
payment of any other indebtedness of the Guarantor being subordinated to the payment of the
Securities, shall be paid by the liquidating trustee or agent or other Person making such payment
or distribution directly to the holders of the Senior Indebtedness of the Guarantor or their
representative, or to the trustee under any indenture under which Senior Indebtedness of the
Guarantor may have been issued (pro rata as to each such holder, representative or trustee on the
basis of the respective amounts of unpaid Senior Indebtedness of the Guarantor held or represented
by each), to the extent necessary to make payment in full of all Senior Indebtedness of the
Guarantor remaining unpaid, after giving effect to any concurrent payment or distribution or
provision therefor to the holders of such Senior Indebtedness of the Guarantor, except that Holders
of the Securities would be entitled to receive securities that are subordinated to Senior
Indebtedness of the Guarantor to at least the same extent as the Securities; and

          (c) in the event that, notwithstanding the foregoing provisions of this Section 7.04, any
payment or distribution of assets of the Guarantor of any kind or character, whether in cash,
property or securities, including any such payment or distribution which may be payable or
deliverable by reason of the payment of any other indebtedness of the Guarantor being subordinated
to the payment of the Securities, shall be received by the Trustee or the Holders of the Securities
on account of principal of or interest on the Securities before all Senior Indebtedness of the
Guarantor is paid in full, or effective provision made for its payment, such payment or
distribution (subject to the provisions of Sections 7.07 and 7.08) shall be received and held in
trust for and shall be paid over to the holders of the Senior Indebtedness of the Guarantor
remaining unpaid or unprovided for or their representative, or to the trustee under any indenture
under which such Senior Indebtedness of the Guarantor may have been issued (pro rata as provided in
subsection (b) above), for application to the payment of such Senior Indebtedness of the Guarantor
until all such Senior Indebtedness of the Guarantor shall have been paid in full, after giving
effect to any concurrent payment or distribution or provision therefor to the holders of such
Senior Indebtedness of the Guarantor, except that Holders of the Securities would be entitled to
receive securities that are subordinated to Senior Indebtedness of the Guarantor to at least the
same extent as the Securities.

     Upon any distribution of assets of the Guarantor referred to in this Article 7, the Trustee,
subject to the provisions of Sections 9.01 and 9.02, and the Holders of the Securities shall be
entitled to rely upon any order or decree made by any court of competent jurisdiction in which such
dissolution, winding up, liquidation or reorganization proceedings are pending, or a

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certificate of the liquidating trustee or agent or other Person making any distribution to the
Trustee or the Holders of the Securities, for the purpose of ascertaining the Persons entitled to
participate in such distribution, the holders of the Senior Indebtedness of the Guarantor and other
Indebtedness of the Guarantor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 7.

     The Guarantor shall give prompt written notice to the Trustee of any dissolution, winding up,
liquidation or reorganization of the Guarantor.

     Section 7.05 Securityholders To Be Subrogated to Rights of Holders of Senior Indebtedness
of the Guarantor. Subject to the payment in full of all Senior Indebtedness of the Guarantor,
the Holders of the Securities shall be subrogated equally and ratably to the rights of the holders
of the Senior Indebtedness of the Guarantor to receive payments or distributions of assets of the
Guarantor applicable to the Senior Indebtedness of the Guarantor until all amounts owing on the
Securities shall be paid in full, and for the purpose of such subrogation no payments or
distributions to the holders of the Senior Indebtedness of the Guarantor by or on behalf of the
Guarantor or by or on behalf of the Holders of the Securities by virtue of this Article 7 which
otherwise would have been made to the Holders of the Securities shall, as among the Guarantor, its
creditors other than holders of Senior Indebtedness of the Guarantor and the Holders of the
Securities, be deemed to be payment by the Guarantor to or on account of the Senior Indebtedness of
the Guarantor, it being understood that the provisions of this Article 7 are intended solely for
the purpose of defining the relative rights of the Holders of the Securities, on the one hand, and
the holders of the Senior Indebtedness of the Guarantor, on the other hand.

     Section 7.06 Obligation of the Guarantor Unconditional. Nothing contained in this
Article 7 or elsewhere in this Indenture or in any Security is intended to or shall impair, as
between the Guarantor and the Holders of the Securities, the obligation of the Guarantor, which is
absolute and unconditional, to pay to the Holders of the Securities the principal of and interest
on the Securities as and when the same shall become due and payable in accordance with the terms of
the Guarantee, or is intended to or shall affect the relative rights of the Holders of the
Securities and creditors of the Guarantor other than the holders of the Senior Indebtedness of the
Guarantor, nor shall anything herein or therein prevent the Trustee or the Holder of any Security
from exercising all remedies otherwise permitted by applicable law upon Default under this
Indenture, subject to the rights, if any, under this Article 7 of the holders of Senior
Indebtedness of the Guarantor in respect of cash, property or securities of the Guarantor received
upon the exercise of any such remedy.

     Nothing contained in this Article 7 or elsewhere in this Indenture or in any Security is
intended to or shall affect the obligation of the Guarantor to make, or prevent the Guarantor from
making, at any time except during the pendency of any dissolution, winding up, liquidation or
reorganization proceeding, and except during the continuance of any default specified in Section
7.03 (not cured or waived), payments at any time of the principal of or interest on the Securities
pursuant to the Guarantee.

     Section 7.07 Knowledge of Trustee. Notwithstanding any provision of this Indenture,
the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit
the making of any payment of monies to or by the Trustee until two Business Days after

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the Trustee shall have received written notice thereof from the Guarantor, any Securityholder
or any Paying Agent or the holder or representative of any class of Senior Indebtedness of the
Guarantor.

     Section 7.08 Application by Trustee of Monies Deposited With It. If at least two
Business Days prior to the date on which by the terms of this Indenture any monies deposited with
the Trustee or any Paying Agent may become payable for any purpose (including, without limitation,
the payment of either the principal of or the interest on any Security) the Trustee shall not have
received with respect to such monies the notice provided for in Section 7.07, then the Trustee
shall have full power and authority to receive such monies and to apply the same to the purpose for
which they were received and shall not be affected by any notice to the contrary which may be
received by it on or after such date. This Section shall be construed solely for the benefit of
the Trustee and such Paying Agent and shall not otherwise affect the rights of holders of Senior
Indebtedness of the Guarantor.

     Section 7.09 Subordination Rights Not Impaired by Acts or Omissions of Guarantor or
Holders of Senior Indebtedness of the Guarantor. No right of any present or future holders of
any Senior Indebtedness of the Guarantor to enforce subordination as provided herein shall at any
time in any way be prejudiced or impaired by any act or failure to act on the part of the Guarantor
or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the
Guarantor with the terms of this Indenture, regardless of any knowledge thereof which any such
holder may have or be otherwise charged with. The holders of Senior Indebtedness of the Guarantor
may extend, renew, modify or amend the terms of the Senior Indebtedness of the Guarantor, or any
security therefor and release, sell or exchange such security and otherwise deal freely with the
Guarantor, all without affecting the liabilities and obligations of the parties to the Indenture or
the Holders. No provision in any supplemental indenture which affects the superior position of the
holders of Senior Indebtedness of the Guarantor shall be effective against the holders of Senior
Indebtedness of the Guarantor who have not consented thereto.

     Section 7.10 Securityholders Authorize Trustee To Effectuate Subordination of
Guarantee. Each Holder of Securities by acceptance thereof authorizes and expressly directs
the Trustee on its, his or her behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article 7 and appoints the Trustee its, his or her
attorney-in-fact for such purpose, including, in the event of any dissolution, winding up,
liquidation or reorganization of the Guarantor (whether in bankruptcy, insolvency or receivership
proceedings or upon an assignment for the benefit of creditors or otherwise) tending towards
liquidation of the business and assets of the Guarantor, the immediate filing of a claim for the
unpaid balance, pursuant to the Guarantee, of its, his or her Securities, in the form required in
said proceedings and cause said claim to be approved. If the Trustee does not file a proper claim
or proof of debt in the form required in such proceeding prior to 30 days before the expiration of
the time to file such claim or claims, then the holders of Senior Indebtedness of the Guarantor
have the right to file and are hereby authorized to file an appropriate claim for and on behalf of
the Holders of said Securities.

     Section 7.11 Right of Trustee To Hold Senior Indebtedness of the Guarantor. The
Trustee shall be entitled to all of the rights set forth in this Article 7 in respect of any Senior

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Indebtedness of the Guarantor at any time held by it to the same extent as any other holder of
Senior Indebtedness of the Guarantor, and nothing in this Indenture shall be construed to deprive
the Trustee of any of its rights as such holder.

     Section 7.12 Article 7 Not To Prevent Events of Default. The failure to make a
payment on account of principal or interest by reason of any provision in this Article 7 shall not
be construed as preventing the occurrence of an Event of Default under Section 8.01.

     Section 7.13 Execution and Delivery of Guarantee. To evidence the Guarantee set forth
in this Article 7, the Guarantor hereby agrees that a notation of the Guarantee, substantially in
the form established by or pursuant to an Authorizing Resolution or in one or more supplemental
indentures in accordance with Section 2.01, shall be endorsed on each Security authenticated and
delivered by the Trustee and that this Indenture shall be executed on behalf of the Guarantor by
the Chairman of the Board, its President or one of its Vice Presidents under a facsimile of its
seal reproduced thereon.

     The Guarantor hereby agrees that its Guarantee shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of the Guarantee.

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

     The delivery of any Security by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantor.

     Section 7.14 Subordination of Indebtedness Owed by the Company to the Guarantor. Any
indebtedness owed by the Company to the Guarantor shall be subordinate to all obligations of the
Company with respect to the Securities and this Indenture to the same extent as the Securities are
subordinated to Senior Indebtedness of the Company.

     Section 7.15 Officers’ Certificate. If there occurs an event referred to in the first
sentence of Section 7.04(c) or the first sentence of Section 7.04, the Guarantor shall promptly
give to the Trustee an Officers’ Certificate (on which the Trustee may conclusively rely)
identifying all holders of Senior Indebtedness of the Guarantor and the principal amount of Senior
Indebtedness of the Guarantor then outstanding held by each such holder and stating the reasons why
such Officers’ Certificate is being delivered to the Trustee.

ARTICLE 8

DEFAULTS AND REMEDIES

     Section 8.01 Events of Default. An “Event of Default” on a Series occurs if:

          (1) the Company or the Guarantor defaults in the payment of interest on any Security of the
Series when the same becomes due and payable and the default continues for a period of 30 days
whether or not such payment shall be prohibited by the provisions of Article 6 or Article 7; or

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          (2) the Company or the Guarantor defaults in the payment of the principal of any Security of
the Series when the same becomes due and payable at maturity or upon redemption, whether or not
such payment shall be prohibited by the provisions of Article 6 or Article 7; or

          (3) the Company or the Guarantor fails to comply with any of its other agreements in the
Securities, the Guarantee or this Indenture applicable to the Series and such failure continues for
the period and after the notice specified below; or

          (4) there occurs a default in the payment of indebtedness of the Company, the Guarantor or any
Subsidiary under the terms of the instrument evidencing or securing such indebtedness permitting
the holder thereof to accelerate the payment of in excess of an aggregate of $5,000,000 in
principal amount of such indebtedness (after the lapse of applicable grace periods) or, in the case
of non-payment defaults, there occurs an acceleration of any such indebtedness if such acceleration
is not rescinded or annulled within 10 days after such acceleration; provided, the term
“indebtedness” as used in this Section 8.01(4) shall not include an acceleration of or default on
Non-Recourse Indebtedness (a) if the Guarantor would be able to declare a dividend pursuant to the
terms of such Series in the amount of the excess of the aggregate book value of all property (net
of any previous write-downs or reserves in respect of such property) subject to the Non-Recourse
Indebtedness being accelerated or in default over such Non-Recourse Indebtedness or (b) which
consists of a purchase money obligation, provided such purchase money obligation does not exceed
$5,000,000 in aggregate principal amount, whether or not the Guarantor is so diligently
contesting); or

          (5) a final judgment for the payment of money in an amount in excess of $5,000,000 shall be
entered against the Company, the Guarantor or any Subsidiary, and shall remain undischarged for a
period (during which execution shall not be effectively stayed) of 60 days after the date on which
the right to appeal has expired; provided the term “final judgment” shall not include a
Non-Recourse Judgment unless the book value of all property (net of any previous write-downs or
reserves in respect of such property) subject to such Non-Recourse Judgment exceeds the amount of
such Non-Recourse Judgment by more than $10,000,000;

          (6) there occurs an “Event of Default,” as that term is defined in the indenture relating to
the [        ]% [         ] due [        ] issued by [        ], a [        ] corporation
(“[        ]”), (each such series being hereinafter referred to as a “Previously Issued Series”);
provided that on the date of the occurrence, the outstanding principal amount of at least one
Previously Issued Series to which the occurrence relates exceeds $5,000,000; or

          (7) the Company and the Guarantor 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

- 25 -

 

               (D) makes a general assignment for the benefit of its creditors; or

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

               (A) provides for relief against the Company and the Guarantor in an involuntary case,

               (B) appoints a Custodian of the Company and the Guarantor for all or substantially all of its
property, or

               (C) orders the liquidation of the Company and the Guarantor and the order or decree remains
unstayed and in effect for 90 days; or

          (9) the Guarantee shall for any reason (other than pursuant to its terms) cease to be in full
force and effect.

     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.

     A default under clause (3) is not an Event of Default until the Trustee or the Holders of at
least 25% in principal amount of the Securities of the Series affected notify the Company of the
default and the Company does not cure the default within 60 days after receipt of the notice. The
notice must specify the default, demand that it be remedied and state that the notice is a “Notice
of Default.”

     Section 8.02 Acceleration. If an Event of Default (other than an Event of Default
under Section 8.01(7) or 8.01(8)) on a Series occurs and is continuing, the Trustee by notice to
the Company and the Person or Persons designated to receive notices for the Agent (or other Person
acting on behalf of the banks) under the Revolving Credit Agreement, or the Holders of at least 25%
in principal amount of the outstanding Securities of the Series by notice to the Company, the
Trustee and such Person or Persons (either such notice is referred to herein as an “Acceleration
Notice”) may declare the unpaid principal of and accrued and unpaid interest on all the Securities
of the Series to be due and payable if, with respect to such Series, (i)(a) no Designated Senior
Debt of the Company or the Guarantor is outstanding, or (b) if the Securities of the Series are not
subordinated to other indebtedness of the Company, immediately, or (ii) if Designated Senior Debt
of the Company or the Guarantor is outstanding and the Securities of the Series are subordinated to
other indebtedness of the Company, upon the earlier of (A) ten days after such Acceleration Notice
is received by the Company and (B) the acceleration of any Senior Indebtedness of the Company or
the Guarantor. If an Event of Default specified in Section 8.01(7) or 8.01(8) occurs, the unpaid
principal of and accrued and unpaid interest on the Securities then outstanding shall ipso facto
become and be immediately due and payable without any declaration or other act on the part of the
Trustee or any Securityholder. The Holders of a majority in principal amount of the Securities of
the Series by notice to the Trustee may rescind such declaration or acceleration and its
consequences if all existing Events of Default have been

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cured or waived (except nonpayment of principal or interest that has become due solely because
of the acceleration) and if the rescission would not conflict with any judgment or decree.

     The Company and the Guarantor (i) agree, promptly after execution of this Indenture, to notify
the Trustee in writing of the Person or Persons referred to in the first sentence of this Section
8.02 and (ii) agree, promptly after any change thereof, to so notify the Trustee. Any failure by
the Trustee or holders of Securities to give an Acceleration Notice to such Person or Persons will
not affect the substance or validity of the Acceleration Notice provided that it is otherwise given
in accordance with the first paragraph of this Section 8.02.

     Section 8.03 Other Remedies. If an Event of Default on a Series occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of principal or interest on the Series or to enforce the performance of any
provisions of the Securities or this Indenture and applicable to the Series.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair
the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy
is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by
law.

     Section 8.04 Waiver of Past Defaults. Subject to Section 12.02, the Holders of a
majority in principal amount of the Securities of a Series by notice to the Trustee may waive on
behalf of all Holders of Securities of the Series an existing Default and its consequences. When a
Default is waived, it is cured and stops continuing, but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.

     Section 8.05 Control by Majority. The Holders of a majority in principal amount of
the Securities of a Series may 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 such Series. However, the Trustee may refuse to follow any direction that conflicts with law or
this Indenture, that is unduly prejudicial to the rights of another Securityholder, or that would
involve the Trustee in personal liability.

     Section 8.06 Limitation on Suits. A Securityholder may not pursue any remedy with
respect to this Indenture or the Series unless:

          (1) the Holder gives to the Trustee written notice of a continuing Event of Default;

          (2) the Holders of at least 25% in principal amount of the Securities of the Series make a
written request to the Trustee to pursue the remedy;

          (3) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against
any loss, liability or expense;

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          (4) the Trustee does not comply with the request within 60 days after receipt of the request
and the offer of indemnity; and

          (5) during such 60-day period the Holders of a majority in principal amount of the Securities
do not give the Trustee a direction inconsistent with such request.

     A Securityholder may not use this Indenture to prejudice the rights of another Securityholder
or to obtain a preference or priority over another Securityholder.

     Section 8.07 Rights of Holders To Receive Payment. Notwithstanding any other
provisions of this Indenture, the right of any Holder of a Security to receive payment of principal
of and interest on the Security, on or after the respective due dates expressed in the Security, or
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 the Holder.

     Section 8.08 Collection Suit by Trustee. If an Event of Default in payment of
interest or principal specified in Section 8.01(1) or (2) occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the Company, the
Guarantor or any other obligor on the Securities for the whole amount of principal and interest
remaining unpaid.

     Section 8.09 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 Securityholders allowed in any judicial proceedings relative to the Company (or
any other obligor upon the Securities, including the Guarantor), its creditors or its property.

     Section 8.10 Priorities. If the Trustee collects any money pursuant to this Article
8, it shall pay out the money in the following order:

     First: to the Trustee for amounts due under Section 9.07;

     Second: to the holders of Senior Indebtedness of the Company as required by Article 6 and to
the holders of Senior Indebtedness of the Guarantor as required by Article 7;

     Third: to Securityholders of the Series for amounts due and unpaid on the Securities for
principal and interest, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Series for principal and interest, respectively; and

     Fourth: to the Company, or its designee.

     The Trustee may fix a record date and payment date for any payment to Securityholders.

     Section 8.11 Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including attorneys’ fees, against any party litigant in the suit, having due
regard to the

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merits and good faith of the claims or defenses made by the party litigant. This Section does
not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 8.07, or a suit by
Holders of more than 10% in principal amount of the Securities of the Series.

ARTICLE 9

TRUSTEE

     Section 9.01 Duties of Trustee.

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

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

               (1) The Trustee need perform only those duties that are specifically set forth in this
Indenture and no others.

               (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. However,
the Trustee shall examine the certificates and opinions to determine whether or not they conform to
the requirements of this Indenture.

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

               (1) This paragraph does not limit the effect of paragraph (b) of this Section.

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

               (3) The Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 8.05.

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

          (e) The Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree with the Company or the Guarantor, as the case may be.

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          (g) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

     Section 9.02 Rights of Trustee. Subject to Section 9.01:

          (a) The Trustee may rely on any document believed by it to be genuine and to have been signed
or presented by the proper person. The Trustee need not investigate any fact or matter stated in
the document.

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

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

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

     Section 9.03 Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or
its affiliates with the same rights it would have if it were not Trustee. Any Paying Agent,
Registrar or co-registrar may do the same with like rights. However, the Trustee must comply with
Sections 9.10 and 9.11.

     Section 9.04 Trustee Disclaimer. The Trustee makes no representation as to the
validity or adequacy of this Indenture or the Securities, it shall not be accountable for the
Company’s use of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its certificate of authentication.

     Section 9.05 Notice of Defaults. If a Default on a Series occurs and is continuing
and if it is known to the Trustee, the Trustee shall mail to each Securityholder notice of the
Default within 90 days after it occurs. Except in the case of a default in payment of principal or
interest on a Series, the Trustee may withhold the notice if and so long as a committee of its
Trust Officers in good faith determines that withholding the notice is in the interests of
Securityholders of the Series.

     Section 9.06 Reports by Trustee to Holders. Within 60 days after each May 15
beginning with the May 15 following the date of this Indenture, the Trustee shall mail to each
Securityholder, if required by TIA Section 313(a), a brief report dated as of such May 15 that
complies with TIA Section 313(a). The Trustee also shall comply with TIA Section 313(b) and
Section 313(c).

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

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     Section 9.07 Compensation and Indemnity. The Company and the Guarantor shall pay to
the Trustee from time to time reasonable compensation for its services. The Trustee’s compensation
hereunder shall not be limited by any law on compensation relating to the trustee of an express
trust. The Company and the Guarantor shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred by it. Such expenses shall include the reasonable compensation and
expenses of the Trustee’s agents and counsel. The Company and the Guarantor shall indemnify and
hold harmless the Trustee against any loss or liability incurred by it in the acceptance or
administration of this trust or the performance of its duties hereunder. The Trustee shall notify
the Company and the Guarantor promptly of any claim for which it may seek indemnity. The Company
and the Guarantor shall defend the claim and the Trustee shall cooperate in the defense. In the
event that counsel to the Trustee shall advise counsel to the Company and the Guarantor that there
may be defenses reasonably available to the Trustee different than or additional to those available
to the Company and the Guarantor, then in such event the Trustee shall be permitted to employ
counsel of its choosing at the expense of the Company and the Guarantor. The Company and the
Guarantor need not pay for any settlement made without their consent. The Company and the
Guarantor need not reimburse any expense or indemnify against any loss or liability incurred by the
Trustee through negligence, bad faith or with willful misconduct. The indemnity contained in this
Section 9.07 shall survive the resignation or removal of the Trustee and the termination of this
Indenture.

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

     When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 8.01(7) or (8) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.

     Section 9.08 Replacement of Trustee. The Trustee may resign by so notifying the
Company. The Holders of a majority in principal amount of the Securities may remove the Trustee by
so notifying the Trustee to be removed and may appoint a successor Trustee with the Company’s and
the Guarantor’s consent. The Company or the Guarantor may remove the Trustee if:

          (1) the Trustee fails to comply with Section 9.10;

          (2) the Trustee is adjudged a bankrupt or an insolvent;

          (3) a receiver or other public officer takes charge of the Trustee or its property; or

          (4) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all

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property held by it as Trustee to the successor Trustee (subject to the prior claim provided
by Section 9.07). Any resignation or removal of the Trustee and any appointment of a successor
Trustee shall become effective upon acceptance of appointment by the successor Trustee. The
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.
A successor Trustee shall mail notice of its succession to each Securityholder.

     If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee (at the expense of the Company), the Company or the Holders of
a majority in principal amount of the Securities may petition any court of competent jurisdiction
for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 9.10, any Securityholder may, subject to Section
8.11, petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

     Section 9.09 Successor Trustee by Merger, etc. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all of its corporate trust assets to,
another corporation, the resulting, surviving or transferee corporation without any further act
shall be the successor Trustee.

     Section 9.10 Eligibility; Disqualification. This Indenture shall always have a
Trustee who satisfies the requirements of TIA Section 310(a)(1). The Trustee shall have a combined
capital and surplus of at least $15,000,000 as set forth in the most recent published annual report
of condition. The Trustee shall comply with TIA Section 310(b).

     Section 9.11 Preferential Collection of Claims Against Company. The Trustee shall
comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).
A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

ARTICLE 10

CONVERSION OF SECURITIES

     Section 10.01 Applicability of Article. Securities of any Series which are
convertible into Common Stock at the option of the Holder shall be convertible in accordance with
their terms and unless the Authorizing Resolution provides otherwise, in accordance with this
Article. Each reference in this Article 10 to “a Security” or “the Securities” refers to the
Securities of the particular Series that is convertible into Common Stock. If more than one Series
of Securities with conversion privileges are outstanding at any time, the provisions of this
Article 10 shall be applied separately to each such Series.

     Section 10.02 Conversion Privilege. Subject to and upon compliance with the
provisions of this Article 10, the Holder of any Security so designated shall have the right, at
its, his or her option, at any time prior to the close of business on the date specified in the
Securities of such Series (or if such Security or portion thereof is called for redemption prior to
such date, then in respect of such Security or portion thereof to and including but not after the
close of business on the second day (or, if such day is not a Business Day, then on the next
following Business Day) preceding the date fixed for such redemption) to convert the principal
amount of any such

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Security, or any portion of such principal amount which is $1,000 or an integral multiple
thereof, into that number of fully paid and non-assessable shares of the Guarantor’s Common Stock
(calculated as to each conversion to the nearest 1/100th of a share) obtained by dividing the
principal amount of the Security or portion thereof to be converted by the Conversion Price and by
surrender of the Security so to be converted in whole or in part, such surrender to be made in the
manner provided in Section 10.03. Notwithstanding the previous sentence, if the Company shall fail
to redeem a Security which has been called for redemption, the Holder of such Security shall retain
the right to convert such Security as provided in this Article 10.

     Section 10.03 Manner of Exercise of Conversion Privilege. In order to exercise a
conversion privilege, the Holder of any Security to be converted in whole or in part shall
surrender such Security at any of the offices or agencies to be maintained for such purpose by the
Company pursuant to Section 2.03, and shall give notice to the Company and the Guarantor in the
form provided in the Security, duly executed, at such office or agency that the Holder elects to
convert such Security or the portion thereof specified in said notice. Such notice shall also
state the name or names, together with the address or addresses, in which the certificate or
certificates for shares of Common Stock which shall be issuable on such conversion shall be issued.
Each Security surrendered for conversion shall, unless the shares issuable on conversion are to be
issued in the same name as the name in which such Security is registered, be accompanied by
instruments of transfer, in form satisfactory to the Guarantor, duly executed by the Holder or its,
his or her duly authorized attorney. Securities so surrendered during the period from the close of
business on a Record Date, or the next preceding Business Day if such Record Date is not a Business
Day, preceding any Interest Payment Date to the opening of business on such Interest Payment Date
(excluding Securities or portions thereof called for redemption during such period) shall also be
accompanied by payment in next-day funds or other funds acceptable to the Guarantor of an amount
equal to the interest payable on such Interest Payment Date on the principal amount of such
Security then being converted; provided, however, that, if the Company shall default on the payment
of said interest, said funds shall be returnable to the payor thereof. As promptly as practicable
after the surrender of such Security, as aforesaid, the Guarantor shall issue and shall deliver at
such office or agency to such Holder, or on its, his or her written order, a certificate or
certificates for the number of full shares of Common Stock issuable upon the conversion of such
Security or portion thereof in accordance with the provisions of this Article 10 and any fractional
interest in respect of a share of Common Stock arising upon such conversion shall be settled as
provided in Section 10.04. In case any Security of a denomination greater than $1,000 shall be
surrendered for partial conversion, the Company and the Guarantor shall execute and the Trustee
shall authenticate and deliver to or upon the order of the Holder of the Security so surrendered,
at the expense of the Company, a new Security or Securities and Guarantee or Guarantees in
authorized denominations in an aggregate principal amount equal to the unconverted portion of the
surrendered Security. Such conversion shall be deemed to have been effected immediately prior to
the close of business on the date on which such Security shall have been surrendered and such
notice received by the Company and the Guarantor as aforesaid, and the Person or Persons in whose
name or names any certificate or certificates for shares of Common Stock shall be issuable upon
such conversion shall be deemed to have become the holder or holders of record of the shares
represented thereby at such time and such conversion shall be at the Conversion Price in effect at
such time, unless the stock transfer books of the Guarantor shall be closed on that date, in which
event such Person or Persons shall be deemed to have become such holder or holders of record at the
close of business on the next

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succeeding day on which such stock transfer books are open, but such conversion shall be at
the Conversion Price in effect on the date upon which such Security shall have been surrendered and
such notice received by the Company and the Guarantor. Subject to the aforesaid requirement for a
payment in the event of conversion after the close of business on a Record Date preceding an
Interest Payment Date, no payment or adjustment shall be made on conversion for interest accrued on
the Securities surrendered for conversion or for dividends on the Common Stock delivered on such
conversion.

     Section 10.04 Payment in Lieu of Fractional Shares . No fractional shares of Common
Stock shall be issued upon conversion of the Securities. Instead of any fractional interest in a
share of Common Stock which would otherwise be deliverable upon the conversion of any Security or
Securities, the Company and/or the Guarantor shall make an adjustment therefor to the nearest
1/100th of a share in cash at the Current Market Price thereof at the close of business on the
Business Day next preceding the day of conversion. If more than one Security shall be surrendered
for conversion at one time by the same Holder, the number of full shares issuable upon conversion
thereof shall be computed on the basis of the aggregate principal amount of the Securities, or
specified portions thereof to be converted, so surrendered.

     Section 10.05 Adjustment of Conversion Price. The Conversion Price shall be adjusted
from time to time as follows:

          (a) In case the Guarantor shall hereafter (i) pay a dividend or make a distribution on its
Common Stock in shares of Common Stock, (ii) subdivide its outstanding shares of Common Stock into
a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller
number of shares, or (iv) issue by reclassification of its Common Stock any shares of Capital Stock
of the Guarantor, the Conversion Price in effect immediately prior to such action shall be adjusted
so that the Holder of any Security thereafter surrendered for conversion shall be entitled to
receive the number of shares of Common Stock or other Capital Stock of the Guarantor which he would
have owned immediately following such action had such Security been converted immediately prior
thereto. An adjustment made pursuant to this subsection (a) shall become effective immediately
after the record date in the case of a dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or reclassification.
If, as a result of an adjustment made pursuant to this subsection (a), the Holder of any Security
thereafter surrendered for conversion shall become entitled to receive shares of two or more
classes of Capital Stock or shares of Common Stock and other Capital Stock of the Guarantor, the
Board of Directors (whose determination shall be conclusive and shall be described in a statement
filed with the Trustee and with the Registrar) shall determine in an equitable manner the
allocation of the adjusted Conversion Price between or among shares of such classes of Capital
Stock or shares of Common Stock and other Capital Stock.

          (b) In case the Guarantor shall hereafter issue rights or warrants to holders of its
outstanding shares of Common Stock generally entitling them (for a period expiring within 45 days
after the record date mentioned below) to subscribe for or purchase shares of Common Stock at a
price per share less than the Current Market Price per share of the Common Stock on the record date
mentioned below, the Conversion Price of the shares of Common Stock shall be adjusted so that the
same shall equal the price determined by multiplying the Conversion Price in

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effect immediately prior to the date of issuance of such rights or warrants by a fraction of
which the numerator shall be the number of shares of Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of shares which the aggregate offering price of
the total number of shares so offered would purchase at such Current Market Price, and of which the
denominator shall be the number of shares of Common Stock outstanding on the date of issuance of
such rights or warrants plus the number of additional shares of Common Stock offered for
subscription or purchase. Such adjustment shall become effective immediately after the record date
for the determination of shareholders entitled to receive such rights or warrants.

          (c) In case the Guarantor shall hereafter distribute to holders of its outstanding Common
Stock generally evidences of its indebtedness or assets (excluding any cash dividend paid from
retained earnings of the Guarantor and dividends or distributions payable in stock for which
adjustment is made pursuant to subsection (a) of this Section 10.05) or rights or warrants to
subscribe to securities of the Guarantor (excluding those referred to in subsection (b) of this
Section 10.05), then in each such case the Conversion Price of the shares of Common Stock shall be
adjusted so that the same shall equal the price determined by multiplying the Conversion Price in
effect immediately prior to the date of such distribution by a fraction of which the numerator
shall be the Current Market Price per share of the Common Stock on the record date mentioned below
less the then fair market value (as determined by the Board of Directors, whose determination shall
be conclusive and shall be described in a statement filed with the Trustee and with the Registrar)
of the portion of the evidences of indebtedness or assets so distributed to the holder of one share
of Common Stock or of such subscription rights or warrants applicable to one share of Common Stock,
and of which the denominator shall be such Current Market Price per share of Common Stock. Such
adjustment shall become effective immediately after the record date for the determination of
shareholders entitled to receive such distribution.

          (d) In any case in which this Section 10.05 shall require that an adjustment be made
immediately following a record date, the Guarantor may elect to defer (but only until five Business
Days following the filing by the Company with the Trustee and the Registrar of the certificate of
independent public accountants described in subsection (f) of this Section 10.05) issuing to the
Holder of any Security converted after such record date the shares of Common Stock issuable upon
such conversion over and above the shares of Common Stock issuable upon such conversion on the
basis of the Conversion Price prior to adjustment.

          (e) No adjustment in the Conversion Price shall be required unless such adjustment would
require an increase or decrease of at least 1% of such price; provided, however, that any
adjustments which by reason of this subsection (e) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment, and provided further that adjustment
shall be required and made in accordance with the provisions of this Article 10 (other than this
subsection (e)), not later than such time as may be required in order to preserve the tax-free
nature of a distribution to the holders of Securities or Common Stock. All calculations under this
Section 10.05 shall be made to the nearest cent or to the nearest 1/100th of a share, as the case
may be. Anything in this Section 10.05 to the contrary notwithstanding, the Guarantor shall be
entitled to make such reductions in the Conversion Price, in addition to those required by this
Section 10.05, as it in its discretion shall determine to be advisable in order that any stock
dividend, subdivision of shares, distribution of rights to purchase stock or

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securities, or distribution of securities convertible into or exchangeable for stock hereafter
made by the Guarantor to its shareholders shall not be taxable.

          (f) Whenever the Conversion Price is adjusted as herein provided, (i) the Company and the
Guarantor shall promptly file with the Trustee and the Registrar a certificate of a firm of
independent public accountants setting forth the Conversion Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment and the manner of computing the
same, which certificate shall be conclusive evidence of the correctness of such adjustment and (ii)
a notice stating that the Conversion Price has been adjusted and setting forth the adjusted
Conversion Price shall forthwith be given by the Company and the Guarantor to the Holders in the
manner provided in Section 13.02. Subject to TIA Section 315(a), (c) and (d), the Trustee and any
conversion agent shall be under no duty or responsibility with respect to any such certificate or
the certificate provided for in Section 10.10 except to exhibit the same from time to time to any
Holder of a Security desiring an inspection of such certificate.

          (g) In the event that at any time as a result of an adjustment made pursuant to subsection (a)
of this Section 10.05, the Holder of any Security thereafter surrendered for conversion shall
become entitled to receive any shares of the Guarantor other than shares of Common Stock,
thereafter the Conversion Price of such other shares so receivable upon conversion of any Security
shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in this Article 10.

     Section 10.06 Notice of Certain Corporate Action. In the event:

          (a) the Guarantor shall take any action which would require an adjustment in the Conversion
Price pursuant to Section 10.05(c); or

          (b) the Guarantor shall authorize the granting to the holders of its Common Stock (as a class)
of rights or warrants to subscribe for or purchase any shares of stock of any class or of any other
rights; or

          (c) there shall be any capital reorganization or reclassification of the Common Stock (other
than a subdivision or combination of the outstanding Common Stock and other than a change in the
par value of the Common Stock), or any consolidation or merger to which the Guarantor is a party or
any statutory exchange of securities with another corporation and for which approval of any
shareholders of the Guarantor is required, or any sale or transfer of all or substantially all of
the assets of the Guarantor; or

          (d) there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the
Guarantor; then the Company and the Guarantor shall cause to be filed with the Trustee and the
Registrar, and shall cause to be given to the Holders, in the manner provided in Section 13.02, at
least 14 days prior to the applicable date hereinafter specified, a notice stating (i) the date on
which a record is to be taken for the purpose of such distribution or rights, or, if a record is
not to be taken, the date as of which the holders of Common Stock of record to be entitled to such
distribution or rights are to be determined, or (ii) the date on which such reorganization,
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or

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winding-up is expected to become effective, and the date as of which it is expected that
holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for
securities or other property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding-up. Failure to give such notice or any
defect therein shall not affect the legality or validity of the proceedings described in subsection
(a), (b), (c) or (d) of this Section 10.06.

     Section 10.07 Guarantor to Provide Stock. The Guarantor covenants that it will at all
times reserve and keep available, free from preemptive rights, out of the aggregate of its
authorized but unissued shares of Common Stock or its issued shares of Common Stock held in its
treasury, or both, for the purpose of effecting conversions of Securities, the full number of
shares of Common Stock deliverable upon the conversion of all outstanding Securities not
theretofore converted. For purposes of this Section 10.07, the number of shares of Common Stock
which shall be deliverable upon the conversion of all outstanding Securities shall be computed as
if at the time of computation all outstanding Securities were held by a single Holder.

     Before taking any action which would cause an adjustment reducing the Conversion Price below
the then par value (if any) of the shares of Common Stock deliverable upon conversions of the
Securities, the Guarantor will take any corporate action which may, in the opinion of its counsel,
be necessary in order that the Guarantor may validly and legally issue fully paid and
non-assessable shares of Common Stock at such adjusted Conversion Price.

     The Guarantor will endeavor to list the shares of Common Stock required to be delivered upon
conversion of Securities prior to such delivery upon each national securities exchange, if any,
upon which the outstanding Common Stock is listed at the time of such delivery.

     Prior to the delivery of any securities which the Guarantor shall be obligated to deliver upon
conversion of the Securities, the Guarantor will endeavor to comply with all federal and state laws
and regulations thereunder requiring the registration of such securities with, or any approval of
or consent to the delivery thereof by, any governmental authority.

     Section 10.08 Taxes on Conversions. The Company and/or the Guarantor will pay any and
all documentary stamp or similar issue or transfer taxes payable in respect of the issue or
delivery of shares of Common Stock on conversions of Securities pursuant hereto; provided, however,
that neither the Company nor the Guarantor shall be required to pay any tax which may be payable in
respect of any transfer involved in the issue or delivery of shares of Common Stock in a name other
than that of the Holder of the Securities to be converted and no such issue or delivery shall be
made unless and until the person requesting such issue or delivery has paid to the Company and/or
the Guarantor the amount of any such tax or has established, to the satisfaction of the Company and
the Guarantor, that such tax has been paid.

     Section 10.09 Covenant as to Stock. The Guarantor covenants that all shares of Common
Stock which may be delivered upon conversions of Securities will upon delivery be duly and validly
issued and fully paid and non-assessable, free of all liens and charges and not subject to any
preemptive rights.

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     Section 10.10 Consolidation or Merger. Notwithstanding any other provision herein to
the contrary, in case of any consolidation or merger to which the Guarantor is a party other than a
merger or consolidation in which the Guarantor is the continuing corporation, or in case of any
sale or conveyance to another corporation of the property of the Guarantor as an entirety or
substantially as an entirety, or in the case of any statutory exchange of securities with another
corporation (including any exchange effected in connection with a merger of a third corporation
into the Guarantor), there shall be no adjustments under Section 10.05 but the Holder of each
Security then outstanding shall have the right thereafter to convert such Security into the kind
and amount of securities, cash or other property which he would have owned or have been entitled to
receive immediately after such consolidation, merger, statutory exchange, sale or conveyance had
such Security been converted immediately prior to the effective date of such consolidation, merger,
statutory exchange, sale or conveyance and in any such case, if necessary, appropriate adjustment
shall be made in the application of the provisions set forth in this Article 10 with respect to the
rights and interests thereafter of the Holders of the Securities, to the end that the provisions
set forth in this Article 10 shall thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares of stock or other securities or property thereafter
deliverable on the conversion of the Securities. Any such adjustment shall be made by and set
forth in a supplemental indenture executed by the Company, the Guarantor and the Trustee and
approved by a firm of independent public accountants, evidenced by a certificate to that effect;
and any adjustment so approved shall for all purposes hereof conclusively be deemed to be an
appropriate adjustment.

     The above provisions of this Section 10.10 shall similarly apply to successive consolidations,
mergers, statutory exchanges, sales or conveyances.

     The Company shall give notice of the execution of such a supplemental indenture to the Holders
of Securities in the manner provided in Section 13.02 within 30 days after the execution thereof.

     The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in such supplemental indenture relating either to the kind or amount of shares
of stock or securities or property receivable by Holders upon the conversion of their Securities
after any such consolidation, merger, statutory exchange, sale or conveyance, or to any adjustment
to be made with respect thereto.

     Section 10.11 Disclaimer of Responsibility for Certain Matters. Neither the Trustee
nor the Registrar shall at any time be under any duty or responsibility to any Holder of Securities
to determine whether any facts exist which may require any adjustment of the Conversion Price, or
with respect to the nature or extent of any such adjustment when made, or with respect to the
method employed, or herein or in any supplemental indenture provided to be employed, in making the
same. Neither the Trustee nor the Registrar shall be accountable with respect to the listing or
registration referred to in Section 10.07 or the validity or value (or the kind or amount) of any
shares of Common Stock, or of any securities or property, which may at any time be issued or
delivered upon the conversion of any Security; and neither the Trustee nor the Registrar makes any
representation with respect thereto. Neither the Trustee nor the Registrar shall be responsible
for any failure of the Guarantor to issue, transfer or deliver any shares of Common Stock or stock
certificates or other securities or property or to make any cash payment upon the

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surrender of any Security for the purpose of conversion or, subject to TIA Section 315(a), (c)
and (d), to comply with any of the covenants contained in this Article 10.

ARTICLE 11

DISCHARGE OF INDENTURE

     Section 11.01 Termination of the Company’s and the Guarantor’s Obligations.
Securities of a Series may be defeased in accordance with their terms and, unless the Authorizing
Resolution provides otherwise, in accordance with this Article.

     The Company may terminate all of its obligations under the Securities of a Series and this
Indenture, to the extent its obligations under this Indenture relate to that Series, and the
obligations of the Guarantor shall terminate if all Securities of a Series previously authenticated
and delivered (other than destroyed, lost or stolen Securities which have been replaced or paid)
have been delivered to the Trustee for cancellation or if:

          (1) the Securities mature within one year or all of them are to be called for redemption
within one year under arrangements satisfactory to the Trustee for giving the notice of redemption;
and

          (2) the Company irrevocably deposits in trust with the Trustee money sufficient to pay
principal of and interest on the outstanding Securities to maturity or redemption, as the case may
be. The Company may make the deposit only if Article 6 permits it. Immediately after making the
deposit, the Company shall give notice of such event and proposed date of payment to each
Securityholder.

     The Company’s obligations and, to the extent applicable, the Guarantor’s obligations, in
Sections 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 9.07, 9.08 and 11.03 and Article 10, however, shall
survive until the Securities are no longer outstanding. Thereafter, the Company’s obligations and,
to the extent applicable, the Guarantor’s obligations, in Sections 9.07 and 11.03 shall survive.

     After a deposit, the Trustee upon request shall acknowledge in writing the discharge of the
Company’s obligations under the Securities, the Guarantor’s obligations under the Guarantee and
their obligations under the Indenture except for those surviving obligations specified above.

     Section 11.02 Application of Trust Money. The Trustee shall hold in trust money
deposited with it pursuant to Section 11.01. It shall apply the deposited money through the Paying
Agent and in accordance with this Indenture to the payment of principal and interest on the
Securities.

     Section 11.03 Repayment to Company. The Trustee and the Paying Agent shall promptly
pay to the Company upon request any excess money held by them at any time. The Trustee and the
Paying Agent shall pay to the Company upon request any money held by them for the payment of
principal or interest (including interest, if any, earned on such money) that remains unclaimed for
two years; provided, however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be published once in a newspaper of
general circulation in The City of New York or mail to each

- 39 -

 

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 or mailing, any unclaimed
balance of such money then remaining will be repaid to the Company. After payment to the Company,
Securityholders entitled to any of such money must look to the Company or, if applicable, the
Guarantor for payment as general creditors unless applicable abandoned property law designates
another person and all liability of the Trustee or Paying Agent with respect to such money shall
thereupon cease.

ARTICLE 12

AMENDMENTS, SUPPLEMENT AND WAIVERS

     Section 12.01 Without Consent of Holders. The Company may amend or supplement this
Indenture or the Securities without notice to or consent of any Securityholder:

          (1) to cure any ambiguity, defect or inconsistency;

          (2) to comply with Section 5.01;

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

          (4) to make any change that does not adversely affect the rights of any Securityholder.

     Section 12.02 With Consent of Holders. The Company may amend or supplement this
Indenture or the Securities without notice to any Securityholder but with the written consent of
the Holders of at least a majority in principal amount of the Securities of all Series affected by
the amendment voting as a class. The Holders of a majority in principal amount of the Securities
may waive compliance by the Company with any provision of this Indenture or the Securities without
notice to any Securityholder. However, without the consent of each Securityholder affected, an
amendment, supplement or waiver, including a waiver pursuant to Section 8.04, may not:

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

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

          (3) reduce the principal of or extend the fixed maturity of any Security or alter the
redemption provisions with respect thereto;

          (4) waive a default in the payment of the principal of or interest on any Security;

          (5) modify the provisions of Article 6 (subordination) or Article 7 (guarantee) in a manner
adverse to the Holders;

- 40 -

 

          (6) make any security payable in money other than that stated in the Security;

          (7) if applicable, make any change that adversely affects the right to convert or the
Conversion Price for any Security; or

          (8) make any change in Section 8.04 or 8.07 or this Section 12.02.

     After an amendment under this Section 12.02 becomes effective, the Company shall mail to the
Holders a notice briefly describing the amendment.

     Section 12.03 Compliance with Trust Indenture Act. Every amendment to or supplement
of this Indenture or the Securities shall comply with the TIA as then in effect.

     Section 12.04 Revocation and Effect of Consents. A consent to an amendment,
supplement or waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of
a Security or portion of a Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent is not made on any Security. However, any such Holder or
subsequent Holder may revoke the consent as to the Security or portion of a Security of such
Holder. The Trustee must receive the notice of revocation before the date the amendment,
supplement or waiver becomes effective.

     After an amendment, supplement or waiver becomes effective, it shall bind every Securityholder
unless it makes a change described in clauses (1) through (8) of Section 12.02. In that case the
amendment, supplement or waiver shall bind each Holder of a Security who has consented to it and
every subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security.

     Section 12.05 Notation on or Exchange of Securities. If an amendment, supplement or
waiver changes the terms of a Security, the Trustee may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the Security about the
changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so
determine, the Company in exchange for the Security shall issue and the Trustee shall authenticate,
a new Security that reflects the changed terms.

     Section 12.06 Trustee to Sign Amendments, etc. The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article if the amendment, supplement or waiver
does not adversely affect the rights or duties of the Trustee. If it does, the Trustee may but
need not sign it. In signing any amendment, supplement or waiver, the Trustee may rely on an
Opinion of Counsel which shall state that such amendment, supplement or waiver is permitted under
this Article 12.

ARTICLE 13

MISCELLANEOUS

     Section 13.01 Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies, or conflicts with another provision which is required to be included in this
Indenture by the TIA or the TIA as amended after the date hereof, the required provision shall
control.

- 41 -

 

     Section 13.02 Notices. Any notice or communication shall be sufficiently given if in
writing and delivered in person or mailed by first-class mail addressed as follows: if to the
Company or the Guarantor:

[Name]

[Address]

[Address]

Attention: Chief Financial Officer

with a copy to:

[Name]

[Address]

[Address]

if to the Trustee:

[                     ]

[Address]

[Address]

Attention: [                     ]

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

     Any notice or communication mailed to a Securityholder shall be mailed to him at his address
as it appears on the registration books of the Registrar and shall be sufficiently given to him if
so mailed within the time prescribed. In addition, a copy of each such notice or communication
shall be mailed to the Trustee at the address specified above.

     Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it.
If the Company or the Guarantor mails a notice or communication to Securityholders, it shall mail a
copy of such notice to the Trustee and each agent at the same time.

     Section 13.03 Communication by Holders with Other Holders. Securityholders may
communicate pursuant to TIA Section 312(b) with other Securityholders with respect to their rights
under this Indenture or the Securities. The Company, the Guarantor, the Trustee, the Registrar and
anyone else shall have the protection of TIA Section 312(c).

     Section 13.04 Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

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

- 42 -

 

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

     Section 13.05 Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture
shall include:

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

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

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

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

     Section 13.06 When Treasury Securities Disregarded. In determining whether the
Holders of the required principal amount of Securities of a Series have concurred in any direction,
waiver or consent, Securities of the Series owned by the Company or the Guarantor or by any person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the Company or the guarantor shall be disregarded, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only
Securities of the Series which the Trustee knows are so owned shall be so disregarded.

     Section 13.07 Rules by Trustee, Paying Agent, Registrar. The Trustee may make
reasonable rules for action by or a meeting of Securityholders. The Paying Agent or Registrar each
may make reasonable rules for its functions.

     Section 13.08 Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday, a legal
holiday or a day on which banking institutions are not required to be open. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue for the intervening period.

     Section 13.09 Governing Law. The laws of the State of New York shall govern this
Indenture, the Securities and the Guarantee without regard to principles of conflicts of law.

     Section 13.10 No Adverse Interpretation of Other Agreements. This Indenture may not
be used to interpret another indenture, loan or debt agreement of the Company, the Guarantor or a
Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret this
Indenture.

- 43 -

 

     Section 13.11 No Recourse Against Others. All liability described in paragraph 20 of
the Securities of any director, officer, employee or shareholder, as such, of the Company or the
Guarantor is waived and released.

     Section 13.12 Successors. All agreements of the Company or the Guarantor in this
Indenture and the Securities shall bind its successor. All agreements of the Trustee in this
Indenture shall bind its successor.

     Section 13.13 Duplicate Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     Section 13.14 Counterparts. This Indenture may be executed in any number of
counterparts, all of which shall together constitute one and the same instrument. This Indenture
shall become binding when one or more counterparts hereof, individually or taken together, shall
bear the signatures of all of the parties reflected hereon as the signatories.

- 44 -

 

SIGNATURES

	 	 	 	 	 
	Dated:	 	[                             ], as Issuer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	Dated:	 	[                             ], as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	Dated:	 	[                             ], as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 

- 45 -EXHIBIT 4.1

                                    INDENTURE

                  AMERICAN CHURCH MORTGAGE COMPANY, as obligor

                     Series C Secured Investor Certificates

                                   $20,000,000

                            HERRING BANK, as trustee

                         Dated as of ________ ___, 2008

<PAGE>

                                TABLE OF CONTENTS

CROSS-REFERENCE TABLE ....................................................    IV

ARTICLE I.        DEFINITIONS AND INCORPORATION BY REFERENCE .............     1

  SECTION 1.1     DEFINITIONS ............................................     1
  SECTION 1.2     OTHER DEFINITIONS ......................................     4
  SECTION 1.3     INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT ......     4
  SECTION 1.4     RULES OF CONSTRUCTION ..................................     5

ARTICLE II.       THE SECURITIES .........................................     5

  SECTION 2.1     UNLIMITED AMOUNT; ACCOUNTS; INTEREST; MATURITY .........     5
  SECTION 2.2     TRANSACTION STATEMENT; RESCISSION ......................     6
  SECTION 2.3     REGISTRAR AND PAYING AGENT .............................     6
  SECTION 2.4     DEPOSIT OF PRINCIPAL AND INTEREST WITH PAYING AGENT ....     6
  SECTION 2.5     LIST OF HOLDERS ........................................     7
  SECTION 2.6     TRANSFER AND EXCHANGE ..................................     7
  SECTION 2.7     PAYMENT OF PRINCIPAL AND INTEREST; PRINCIPAL AND
                  INTEREST RIGHTS PRESERVED ..............................     7
  SECTION 2.8     RESERVED ...............................................     8
  SECTION 2.9     OUTSTANDING SECURITIES .................................     8
  SECTION 2.10    TREASURY SECURITIES ....................................     9
  SECTION 2.11    RESERVED ...............................................     9
  SECTION 2.12    RESERVED ...............................................     9
  SECTION 2.13    DEFAULTED INTEREST .....................................     9
  SECTION 2.14    BOOK-ENTRY REGISTRATION ................................     9
  SECTION 2.15    INITIAL AND PERIODIC STATEMENTS ........................    10

ARTICLE III.      REDEMPTION .............................................    10

  SECTION 3.1     REDEMPTION OF SECURITIES AT THE COMPANY'S ELECTION .....    10
  SECTION 3.2     REDEMPTION OF SECURITIES AT THE HOLDER'S ELECTION ......    11
  SECTION 3.3     OFFER TO REDEEM SECURITIES UPON CHANGE OF THE
                  COMPANY'S ADVISOR ......................................    11

ARTICLE IV.       COVENANTS ..............................................    12

  SECTION 4.1     PAYMENT OF SECURITIES ..................................    12
  SECTION 4.2     MAINTENANCE OF OFFICE OR AGENCY ........................    12
  SECTION 4.3     SEC REPORTS AND OTHER REPORTS ..........................    13
  SECTION 4.4     COMPLIANCE CERTIFICATE .................................    13
  SECTION 4.5     STAY, EXTENSION AND USURY LAWS .........................    14
  SECTION 4.6     LIQUIDATION ............................................    14
  SECTION 4.7     FINANCIAL COVENANTS ....................................    14
  SECTION 4.8     RESTRICTIONS ON DIVIDENDS AND CERTAIN TRANSACTIONS
                  WITH AFFILIATES ........................................    14
  SECTION 4.9     COLLATERAL .............................................    15

<PAGE>

  SECTION 4.10    APPOINTMENT AS ATTORNEY-IN-FACT ........................    16

ARTICLE V.        SUCCESSORS .............................................    18

  SECTION 5.1     WHEN THE COMPANY MAY MERGE, ETC. .......................    18
  SECTION 5.2     SUCCESSOR CORPORATION SUBSTITUTED ......................    18

ARTICLE VI.       DEFAULTS AND REMEDIES ..................................    19

  SECTION 6.1     EVENTS OF DEFAULT ......................................    19
  SECTION 6.2     ACCELERATION ...........................................    20
  SECTION 6.3     OTHER REMEDIES .........................................    20
  SECTION 6.4     WAIVER OF PAST DEFAULTS ................................    21
  SECTION 6.5     CONTROL BY MAJORITY ....................................    21
  SECTION 6.6     LIMITATION ON SUITS ....................................    21
  SECTION 6.7     RIGHTS OF HOLDERS TO RECEIVE PAYMENT ...................    21
  SECTION 6.8     COLLECTION SUIT BY TRUSTEE .............................    22
  SECTION 6.9     TRUSTEE MAY FILE PROOFS OF CLAIM .......................    22
  SECTION 6.10    PRIORITIES .............................................    22
  SECTION 6.11    UNDERTAKING FOR COSTS ..................................    23

ARTICLE VII.      TRUSTEE ................................................    23

  SECTION 7.1     DUTIES OF TRUSTEE ......................................    23
  SECTION 7.2     RIGHTS OF TRUSTEE ......................................    24
  SECTION 7.3     INDIVIDUAL RIGHTS OF TRUSTEE ...........................    25
  SECTION 7.4     TRUSTEE'S DISCLAIMER ...................................    25
  SECTION 7.5     NOTICE OF DEFAULTS .....................................    25
  SECTION 7.6     REPORTS BY TRUSTEE TO HOLDERS ..........................    25
  SECTION 7.7     COMPENSATION AND INDEMNITY .............................    26
  SECTION 7.8     REPLACEMENT OF TRUSTEE .................................    27
  SECTION 7.9     SUCCESSOR TRUSTEE BY MERGER, ETC. ......................    27
  SECTION 7.10    ELIGIBILITY; DISQUALIFICATION ..........................    28
  SECTION 7.11    PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY ......    28

ARTICLE VIII.     DISCHARGE OF INDENTURE .................................    28

  SECTION 8.1     TERMINATION OF COMPANY'S OBLIGATIONS ...................    28
  SECTION 8.2     APPLICATION OF TRUST MONEY .............................    29
  SECTION 8.3     REPAYMENT TO COMPANY ...................................    29
  SECTION 8.4     REINSTATEMENT ..........................................    30

ARTICLE IX.       AMENDMENTS .............................................    30

  SECTION 9.1     WITHOUT CONSENT OF HOLDERS .............................    30
  SECTION 9.2     WITH CONSENT OF HOLDERS ................................    30
  SECTION 9.3     COMPLIANCE WITH TRUST INDENTURE ACT ....................    31
  SECTION 9.4     REVOCATION AND EFFECT OF CONSENTS ......................    31
  SECTION 9.5     NOTATION ON OR EXCHANGE OF SECURITIES ..................    31
  SECTION 9.6     TRUSTEE TO SIGN AMENDMENTS, ETC. .......................    31

ARTICLE X.        MISCELLANEOUS ..........................................    32

  SECTION 10.1    TRUST INDENTURE ACT CONTROLS ...........................    32

                                       ii

<PAGE>

  SECTION 10.2    NOTICES ................................................    32
  SECTION 10.3    COMMUNICATION BY HOLDERS WITH OTHER HOLDERS ............    33
  SECTION 10.4    CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT .....    33
  SECTION 10.5    STATEMENTS REQUIRED IN CERTIFICATE OR OPINION ..........    33
  SECTION 10.6    RULES BY TRUSTEE AND AGENTS ............................    33
  SECTION 10.7    LEGAL HOLIDAYS .........................................    34
  SECTION 10.8    NO RECOURSE AGAINST OTHERS .............................    34
  SECTION 10.9    DUPLICATE ORIGINALS ....................................    34
  SECTION 10.10   GOVERNING LAW ..........................................    34
  SECTION 10.11   NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS ..........    34
  SECTION 10.12   SUCCESSORS .............................................    34
  SECTION 10.13   SEVERABILITY ...........................................    34
  SECTION 10.14   COUNTERPART ORIGINALS ..................................    34
  SECTION 10.15   TABLE OF CONTENTS, HEADINGS, ETC. ......................    35

SIGNATURES        ........................................................    36

                                       iii

<PAGE>

CROSS-REFERENCE TABLE

*Trust Indenture Act Section ...............................   Indenture Section
310(a)(1) ..................................................                7.10
(a)(2) .....................................................                7.10
(a)(3) .....................................................                N.A.
(a)(4) .....................................................                N.A.
(a)(5) .....................................................                N.A.
(b) ........................................................           7.8; 7.10
(c) ........................................................                N.A.
311(a) .....................................................                7.11
(b) ........................................................                7.11
(c) ........................................................                N.A.
312(a) .....................................................                 2.5
(b) ........................................................                11.3
(c) ........................................................                11.3
313(a) .....................................................                 7.6
(b)(1) .....................................................                N.A.
(b)(2) .....................................................                 7.6
(c) ........................................................           7.6; 11.2
(d) ........................................................                 7.6
314(a) .....................................................      4.3; 4.4; 11.2
(b) ........................................................              4.9(c)
(c)(1) .....................................................                11.4
(c)(2) .....................................................                11.4
(c)(3) .....................................................                N.A.
(d) ........................................................                N.A.
(e) ........................................................                11.5
(f) ........................................................                N.A.
315(a) .....................................................              7.1(b)
(b) ........................................................           7.5; 11.2
(c) ........................................................              7.1(a)
(d) ........................................................              7.1(c)
(e) ........................................................                6.11
316(a)(last sentence) ......................................                2.10
(a)(1)(A) ..................................................                 6.5
(a)(1)(B) ..................................................                 6.4
(a)(2) .....................................................                N.A.
(b) ........................................................                 6.7
(c) ........................................................                N.A.
317(a)(1) ..................................................                 6.8
(a)(2) .....................................................                 6.9
(b) ........................................................                 2.4
318(a) .....................................................                11.1

N.A. means not applicable
* This Cross Reference Table is not part of the Indenture

                                       iv

<PAGE>

      THIS INDENTURE is hereby entered into as of _____ __, 2008, by and between
American Church Mortgage Company, a Minnesota  corporation (the "Company"),  and
Herring Bank, as trustee (the "Trustee").

      The Company and the Trustee agree as follows for the benefit of each other
and for the equal and  ratable  benefit  of the  Holders of the Series C Secured
Investor   Certificates   of  the  Company  issued  pursuant  to  the  Company's
registration statement on Form S-11 (Reg. No. 333-_________)  declared effective
by the Securities and Exchange  Commission on _____ __, 2008 (the  "Registration
Statement"):

                                   ARTICLE I.

                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1 Definitions.

      "Account"  means  the  record  of  beneficial   ownership  of  a  Security
maintained by the Registrar.

      "Advisor" means Church Loan Advisors, Inc., the Company's advisor.

      "Advisory  Agreement"  means the  Company's  advisory  agreement  with the
Advisor  pursuant to which the Advisor  manages the  business and affairs of the
Company, as the same has been or may be amended from time to time.

      "Affiliate"  of any  specified  Person means any other Person  directly or
indirectly  controlling  or  controlled  by or under  direct or indirect  common
control  with  such  specified  Person.  For the  purposes  of this  definition,
"control"  (including,  with  correlative  meanings,  the  terms  "controlling,"
"controlled  by" and "under common control  with"),  as used with respect to any
Person,  shall mean the  possession,  directly  or  indirectly,  of the power to
direct or cause the  direction  of the  management  or policies of such  Person,
whether through the ownership of voting securities, by agreement or otherwise.

      "Agent"  means  any  Registrar,   Paying  Agent  or  co-registrar  of  the
Securities.

      "Board of  Directors"  means the Board of  Directors of the Company or any
authorized committee of the Board of Directors.

      "Business Day" means any day other than a Legal Holiday.

      "Company"  means  American  Church  Mortgage  Company,  unless  and  until
replaced by a successor in accordance with Article V hereof and thereafter means
such successor.

      "Corporate  Trust  Office"  means the  office of the  Trustee at which the
corporate  trust  business of the Trustee  shall,  at any  particular  time,  be
principally  administered,  which  office  is,  at the  date  as of  which  this
Indenture is  originally  dated,  located at 1608 S. Polk St.,  Amarillo,  Texas
79102, Attention: Catana Gray, Vice-President.

<PAGE>

      "Default"  means  any  event  that is or with the  passage  of time or the
giving of notice or both would be an Event of Default.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      "Fiscal Year" means initially a December 31 year end.

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

      "Guarantee"  means a guarantee  (other than by  endorsement  of negotiable
instruments  for  collection  in the  ordinary  course of  business),  direct or
indirect,  in any manner (including,  without limitation,  letters of credit and
reimbursement  agreements  in  respect  thereof),  of  all or  any  part  of any
Indebtedness.

      "Holder" means a Person in whose name a Security is registered.

      "Indebtedness" means, with respect to any Person, any indebtedness of such
Person, whether or not contingent,  in respect of borrowed money or evidenced by
bonds,  notes,  debentures  or  similar  instruments  or  letters  of credit (or
reimbursement  agreements  in  respect  thereof)  or  representing  the  balance
deferred and unpaid of the purchase  price of any  property  (including  capital
Lease  obligations) or  representing  any hedging  obligations,  except any such
balance that  constitutes an accrued  expense or a trade payable,  if and to the
extent  any of the  foregoing  indebtedness  (other  than  letters of credit and
hedging  obligations)  would appear as a liability  upon a balance sheet of such
Person  prepared in accordance  with GAAP, and also includes,  to the extent not
otherwise  included,  (a) the  Guarantee of items that would be included  within
this definition,  and (b) liability for items that would arise by operation of a
Person's status as a general partner of a partnership.

      "Indenture"  means, this Indenture as amended or supplemented from time to
time.

      "Interest Accrual Period" means, as to each Security,  the period from the
later of the Issue Date of such  Security or the day after the last Payment Date
upon which an interest payment was made until the following  Payment Date during
which interest accrues on each Security with respect to any Payment Date.

      "Issue Date" means,  with respect to any Security,  the date on which such
Security is deemed  registered on the books and records of the Registrar,  which
shall be the date the Company  accepts funds for the purchase of the Security if
such funds are received prior to 12:01 p.m. (Central Time) on a Business Day, or
if such funds are received after such time, on the next Business Day.

      "Maturity Date" means, with respect to any Security, the date on which the
principal of such Security becomes due and payable as therein provided.

                                        2

<PAGE>

      "Maturity  Record Date" means,  with respect to any Security,  as of 11:59
p.m. on the date fifteen (15) days prior to the Maturity Date or Redemption Date
applicable to such Security.

      "Obligations"  means  any  principal,  interest  (including  Post-Petition
Interest), penalties, fees, indemnifications,  reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.

      "Officer" means the Chairman of the Board or principal  executive  officer
of the Company,  the  President or operating  officer of the Company,  the Chief
Financial Officer or principal financial officer of the Company,  the Treasurer,
any  Assistant  Treasurer,  Controller  or  principal  officer  of the  Company,
Secretary or any Vice-President of the Company.

      "Officer's Certificate" means a certificate signed by an Officer.

      "Opinion of Counsel" means an opinion from legal counsel who is reasonably
acceptable  to the Trustee.  The counsel may be an employee of or counsel to the
Company or the Trustee.

      "Payment Date" means the last day of each calendar quarter, or if such day
is not a Business Day, the Business Day immediately following such day and, with
respect to a specific  Security,  the Maturity Date or  Redemption  Date of such
Security.

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

      "Post-Petition Interest" means interest accruing after the commencement of
any bankruptcy or insolvency  case or proceeding  with respect to the Company or
any  receivership,   liquidation,   reorganization  or  other  similar  case  or
proceeding in connection therewith, at the rate applicable to such Indebtedness,
whether or not such interest is an allowable claim in any such proceeding.

      "Prospectus"  means the prospectus  relating to the Securities,  including
any prospectus supplement, forming part of the Registration Statement.

      "Redemption Date" has the meaning given in Article III hereof.

      "Redemption Price" means, with respect to any Security to be redeemed, the
principal  amount of such Security  plus the interest  accrued but unpaid during
the Interest Accrual Period up to the Redemption Date for such security.

      "Regular  Record Date" means,  with  respect to each Payment  Date,  as of
11:59 p.m. on the date fifteen (15) days prior to such Payment Date.

      "Responsible  Officer"  when used with respect to the  Trustee,  means any
officer in its Corporate  Trust Office,  or any other  assistant  officer of the
Trustee in its Corporate Trust Office customarily  performing  functions similar
to  those  performed  by the  Persons  who at the time  shall be such  officers,
respectively,  or to whom any corporate trust matter is referred  because of his
or her knowledge of and familiarity with the particular subject.

                                        3

<PAGE>

      "SEC" means the U.S. Securities and Exchange Commission.

      "Security" or "Securities"  means, the Company's Series C Secured Investor
Certificates issued under this Indenture pursuant to the Registration Statement.

      "TIA"  means  the  Trust   Indenture   Act  of  1939   (15 U.S.C.   ss.ss.
77aaa-77bbbb)  as in effect on the date on which  this  Indenture  is  qualified
under the TIA.

      "Trustee" means Herring Bank, until a successor  replaces it in accordance
with the  applicable  provisions  of this  Indenture  and  thereafter  means the
successor serving hereunder.

      "U.S.  Government  Obligations"  means  direct  obligations  of the United
States of America,  or any agency or instrumentality  thereof for the payment of
which the full faith and credit of the United States of America is pledged.

Section 1.2 Other Definitions.

            Term ..................................   Defined in Section

            "Bankruptcy Law" ......................                  6.1
            "Collateral" ..........................               4.9(a)
            "Custodian" ...........................                  6.1
            "Event of Default" ....................                  6.1
            "Legal Holiday" .......................                 10.7
            "Paying Agent" ........................                  2.3
            "Registrar" ...........................                  2.3
            "Registration Statement" ..............         Introduction
            "Securities Register" .................                  2.3
            "Transfer" ............................               4.9(h)

Section 1.3 Incorporation by Reference of Trust Indenture Act.

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

            "indenture securities" means the Securities;

            "indenture security holder" means any Holder of the Securities;

            "indenture to be qualified" means this Indenture;

            "indenture trustee" or "institutional trustee" means the Trustee;

            "obligor"  on the  Securities  means the  Company  or any  successor
            obligor upon the Securities.

                                        4

<PAGE>

      All  other  terms  used in this  Indenture  that are  defined  by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.

Section 1.4 Rules of Construction.

      Unless the context otherwise requires: (a) a term has the meaning assigned
to it; (b) an accounting term not otherwise  defined has the meaning assigned to
it in accordance  with GAAP; (c) references to GAAP, as of any date,  shall mean
GAAP in effect in the United  States as of such date and  consistently  applied;
(d) "or" is not exclusive;  (e) words in the singular include the plural, and in
the plural include the singular;  and (f) provisions apply to successive  events
and transactions.

                                   ARTICLE II.

                                 THE SECURITIES

Section 2.1 Unlimited Amount; Accounts; Interest; Maturity.

      (a)   The outstanding aggregate principal amount of Securities outstanding
at any time is limited to $20,000,000,  provided,  however, that the Company and
the Trustee  may,  without the consent of any Holder,  increase  such  aggregate
principal  amount of  Securities  which  may be  outstanding  at any  time.  The
Securities may be subject to notations, legends or endorsements required by law,
stock exchange rule, agreements to which the Company is subject or usage.

      (b)   Except as provided in Section 2.14 hereof,  each Security  shall not
be evidenced by a promissory  note.  The record of  beneficial  ownership of the
Securities  shall  be  maintained  and  updated  by the  Registrar  through  the
establishment and maintenance of Accounts.  Initially, each Security shall be in
such  denominations as may be designated from time to time by the Company.  Each
Security  shall have a term of not less than thirteen (13) years and not greater
than  twenty  (20)  years as shall be  designated  by the  Holder at the time of
purchase, subject to the Company's acceptance thereof.

      (c)   Each Security  shall bear interest from and  commencing on its Issue
Date at such rate of interest as the Company shall  determine from time to time,
as set forth in the Prospectus. The interest rate of each Security will be fixed
for the term of such Security upon issuance,  subject to change upon the renewal
of the Security at maturity.  Interest on the Securities will not compound.  The
Company shall pay the Holders  interest on the Securities  quarterly on the last
day of each  quarter  during  which each such  Security is  outstanding.  To the
extent any applicable interest payment date is not a Business Day, then interest
shall be paid instead on the next succeeding Business Day.

      (d)   The  Company  will give each  Holder of a Security a written  notice
approximately  thirty (30) but not less than ten (10) days prior to the Maturity
Date of the Security held by such Holder  reminding  such Holder of the Maturity
Date of the  Security.  If the Company is offering  renewal of  Securities,  the
Company  will  provide  such Holder  with a schedule  of interest  rates then in
effect and a form for the Holder to use to notify the Company whether the Holder
wishes to renew the  Security.  To be  effective,  a notice of  renewal  must be
returned to the Company (or

                                        5

<PAGE>

its agent) not later than the Maturity Date of the maturing  Security.  Unless a
Security is properly  renewed,  no interest  will accrue after the Maturity Date
for such  Security.  If a Security is not  renewed,  the  Company  shall pay the
Holder the principal amount on the maturing Security,  together with accrued but
unpaid interest thereon, within ten (10) days after the Maturity Date.

      (e)   If the Company is offering renewal of Securities and a Holder renews
a Security,  then interest  shall  continue to accrue from the first day of such
renewal term at the applicable rate then in effect.  Such Security,  as renewed,
will continue in all its provisions, including provisions relating to payment.

      (f)   The  terms  and  provisions   contained  in  the  Securities   shall
constitute,  and are hereby  expressly made, a part of this Indenture and to the
extent applicable,  the Company and the Trustee, by their execution and delivery
of this Indenture, and the Holders by accepting the Securities,  expressly agree
to such terms and provisions and to be bound thereby. In case of a conflict, the
provisions of this Indenture shall control.

Section 2.2 Transaction Statement; Rescission.

      (a)   A Security shall not be validly issued until a written  confirmation
of the  acceptance  of a  Subscription  in the form of a  transaction  statement
executed  by a duly  authorized  officer or agent of the  Company is sent to the
purchaser  thereof and an Account is established by the Registrar in the name of
such purchaser or transferee.

      (b)   For a period of five (5) days following  delivery of a Prospectus to
a Holder in regard to issuance  of a Security at the time of original  purchase,
but not upon  transfer,  the Holder shall have the right to rescind the Security
and receive  payment of the  principal by  presenting  a written  request to the
Company.  Payment  of the  principal  shall be made  within ten (10) days of the
Company's  receipt of such request from the Holder. No interest shall be paid on
any such rescinded Security.

Section 2.3 Registrar and Paying Agent.

      The Trustee shall maintain (i) an office or agency where Securities may be
presented for registration of transfer or for exchange ("Registrar") and (ii) an
office or agency where Securities may be presented for payment ("Paying Agent").
The Registrar  shall keep a register of the Securities and of their transfer and
exchange,  which  shall  include  the name,  address  for notices and payment of
principal  and interest to the Holder,  principal  amount and interest  rate for
each Security,  and such other information as the Company shall request that the
Registrar  maintain with regard to Holders or the  Securities  (the  "Securities
Register").  The Registrar  shall not be required to maintain any records beyond
those (i) specifically required by the terms of this Indenture,  (ii) reasonably
requested  in writing by the Company and (iii) and as are or become  required to
be maintained by applicable law.

Section 2.4 Deposit of Principal and Interest With Paying Agent.

      Prior to each  Payment  Date,  the Company  shall  deposit with the Paying
Agent  sufficient  funds to pay  principal  and interest  then  becoming due and
payable in cash.

                                        6

<PAGE>

Section 2.5 List of Holders.

      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 and shall otherwise comply with TIA ss.312(a). If the Trustee is not the
Registrar,  the Registrar  shall furnish to the Trustee each quarter  during the
term of this  Indenture  and at such other  times as the  Trustee may request in
writing,  a list in such form and as of such date as the Trustee may  reasonably
require of the  names,  addresses  and  Account  balances  of  Holders,  and the
aggregate  principal  amount  outstanding and the Company shall otherwise comply
with TIA ss.312(a).

Section 2.6 Transfer and Exchange.

      (a)   The  Securities  are  not  negotiable   instruments  and  cannot  be
transferred  without the prior written  consent of the Company.  Requests to the
Registrar for the transfer of any Account maintained for the benefit of a Holder
shall be:

            (1)   made to the  Company  in  writing  on a form  supplied  by the
Company;

            (2)   duly  executed  by  the  current  holder  of the  Account,  as
reflected on the Registrar's  records as of the date of receipt of such transfer
request, or his attorney duly authorized in writing;

            (3)   accompanied  by the  written  consent  of the  Company  to the
transfer; and

            (4)   if requested by the  Company,  an opinion of Holder's  counsel
(which counsel shall be reasonably  acceptable to the Company) that the transfer
does not violate any applicable securities laws and/or a signature guarantee.

      (b)   Upon  transfer  of a  Security,  the  Company  will  provide the new
registered  owner  of the  Security  with a  transaction  statement  which  will
evidence the transfer of the Account in the Securities Register.

      (c)   The Company or the Trustee  may assess  service  charges to a Holder
for any  registration  or  transfer  or  exchange,  and the  Company may require
payment of a sum  sufficient  to cover any transfer tax or similar  governmental
charge  payable in connection  therewith  (other than any such transfer taxes or
similar  governmental  charge  payable  upon  exchange  pursuant  to Section 9.5
hereof).

      (d)   The Company  shall  treat the  individual  or entity  listed on each
Account  maintained  by the  Registrar  as the  absolute  owner of the  Security
represented thereby for purposes of receiving payments thereon and for all other
purposes whatsoever.

Section 2.7 Payment of Principal  and Interest;  Principal  and Interest  Rights
Preserved.

      (a)   Each Security  shall accrue  interest at the rate specified for such
Security in the  Securities  Register and such interest shall be payable on each
Payment Date  following  the Issue Date for such  Security,  until the principal
thereof has been paid. Any installment of interest payable on a Security that is
caused to be punctually paid or duly provided for by the Company

                                        7

<PAGE>

on the  applicable  Payment Date shall be paid by the Paying Agent to the Holder
in whose name such  Security is  registered  in the  Securities  Register on the
applicable  Regular Record Date with respect to the Securities  outstanding,  by
the Paying Agent mailing a check for the amount of such interest  payment to the
Holder's address as it appears in the Securities Register on such Regular Record
Date.  The Paying  Agent  shall not be  required  to make any payment or partial
payment  of  principal  if the Paying  Agent does not have funds on deposit  and
received from the Company in an amount  sufficient to pay Holders amounts due to
them on a Payment  Date,  but shall make full payments of interest to the extent
that sufficient  funds are on deposit to make such payments.  Any installment of
interest not punctually paid or duly provided for shall be payable in the manner
and to the Holders as specified in Section 2.13 hereof.

      (b)   Each of the Securities shall have stated  maturities of principal as
shall  be  indicated  on such  Securities  and as set  forth  in the  Securities
Register.  The  principal of each  Security and any accrued but unpaid  interest
thereon shall be paid in full no later than five (5) days following the Maturity
Date thereof  unless the term of such  Security is extended  pursuant to Section
2.1 hereof or such  Security  becomes  due and  payable  at an  earlier  date by
acceleration,  redemption  or  otherwise.  Notwithstanding  any of the foregoing
provisions  with  respect  to  payments  of  principal  of and  interest  on the
Securities,  if the  Securities  have  become or been  declared  due and payable
following an Event of Default, then payments of principal of and interest on the
Securities shall be made in accordance with Article 6 hereof.

      (c)   All  computations of interest due with respect to any Security shall
be made, unless otherwise specified in the Security, based upon a 365 day year.

      (d)   In the event that any check  mailed to a Holder  for the  purpose of
payment of  principal or interest is returned to the Paying Agent for want of an
accurate address or is not presented for payment,  the funds represented thereby
shall be held and disbursed as provided in Section 8.3 hereof.

      (e)   The Company or the Trustee may withhold from any payment of interest
amounts required by the Internal Revenue Service or other taxing authority to be
so withheld,  including,  without limitation,  upon the failure of any Holder to
provide the Company or the Trustee with his or her tax identification number.

Section 2.8 Reserved.

Section 2.9 Outstanding Securities.

      (a)   The Securities  outstanding at any time are the outstanding balances
of all Accounts  representing  the Securities  maintained by the Company or such
other entity as the Company designated as Registrar.

      (b)   If the  principal  amount of any Security is  considered  paid under
Section 4.1 hereof,  it ceases to be  outstanding  and  interest on it ceases to
accrue.

      (c)   Subject  to Section  2.10  hereof,  a Security  does not cease to be
outstanding  because  the  Company  or an  Affiliate  of the  Company  holds the
Security.

                                        8

<PAGE>

Section 2.10 Treasury Securities.

      In  determining  whether the holders of the required  principal  amount of
Securities have concurred in any direction,  waiver or consent, Securities owned
by the Company or any Affiliate of the Company shall be considered as though not
outstanding,  except that for purposes of determining  whether the Trustee shall
be  protected  in  relying  on any  such  direction,  waiver  or  consent,  only
Securities  that a Responsible  Officer of the Trustee  actually  knows to be so
owned shall be so disregarded.

Section 2.11 Reserved.

Section 2.12 Reserved.

Section 2.13 Defaulted Interest.

      If the  Company  defaults in a payment of  interest  or  principal  on any
Security,  it shall pay the defaulted  interest or principal plus, to the extent
lawful,  any interest  payable thereon at the rate provided in the Security,  to
the Holder of such Security as of a subsequent  special record date,  which date
shall be at the earliest practicable date, but in all events within fifteen (15)
days following the scheduled Payment Date of the defaulted interest. The Company
shall, with written  notification to the Trustee,  fix or cause to be fixed each
such special  record date and payment  date.  Prior to any such  special  record
date,  the  Company  (or the  Trustee,  in the name of and at the expense of the
Company)  shall mail to Holder(s) a notice that states the special  record date,
the related  payment date and the amount of principal,  interest and  additional
accrued interest to be paid.

Section 2.14 Book-Entry Registration.

      (a)   The Registrar shall maintain a book-entry  registration and transfer
system  through  the  establishment  of  Accounts  for the benefit of Holders of
Securities  as the sole  method of  recording  the  ownership  and  transfer  of
ownership  interests in such Securities.  The registered  owners of the Accounts
established by the Registrar in connection  with the purchase or transfer of the
Securities  shall be deemed to be the Holders of the Securities  outstanding for
all purposes under this  Indenture.  The Company shall promptly notify (or cause
an agent to notify) the Registrar of the acceptance of a  subscriber's  order to
purchase a Security and the Registrar  shall credit its book-entry  registration
and transfer  system to the Account of each  Security  purchaser,  the principal
amount of such Security owned of record by the purchaser.

      (b)   Book-entry accounts  representing  interests in the Securities shall
not be exchangeable  for Securities fully registered in the names of the Holders
thereof  unless (a) the Company at its option  advises the Trustee in writing of
its election to terminate the book-entry  system, or (b) after the occurrence of
any Event of Default,  Holders of a majority of the Securities then  outstanding
(as determined based upon the latest statement  provided to the Trustee pursuant
to Section 4.3(d) hereof) advise the Trustee in writing that the continuation of
the book-entry system is no longer in the best interests of such Holders and the
Trustee  notifies  all  Holders of the  Securities,  as the case may be, of such
event and the availability of definitive notes to the Holders of Securities,  as
the case may be, requesting such notes in definitive form.

                                        9

<PAGE>

      (c)   The Registrar shall issue fully registered Securities if required by
the  administrator of an Individual  Retirement  Account or similar tax deferred
account in which the Holder has acquired Securities.  The Registrar may charge a
Holder a $10 fee per Securities issuance.

Section 2.15 Initial and Periodic Statements.

      (a)   The Trustee shall provide an initial book entry  acknowledgement  to
initial  purchasers and registered  owners,  within thirty (30) business days of
the purchase, transfer or pledge of a Security.

      (b)   The  Trustee  shall  send  each  Holder  of  a  Security  (and  each
registered pledgee) via U.S. mail not later than ninety (90) Business Days after
each year end in which such Holder had an  outstanding  balance in such holder's
Account,  a statement  which indicates as of the year end preceding the mailing:
(i) the balance of such Account; (ii) interest credited; (iii) withdrawals made,
if any;  (iv) the  interest  rate  payable on such  Security;  and (v) any other
information  required on IRS Form 1099. The Trustee or the Company shall provide
additional  statements as the Holders of the Securities  may reasonably  request
from time to time. The Company or the Trustee may charge such Holders requesting
such  statements  a fee to cover the  charges  incurred  by the  Company  or the
Trustee in providing such additional statements.

                                  ARTICLE III.

                                   REDEMPTION

Section 3.1 Redemption of Securities at the Company's Election.

      (a)   At any  time  and  from  time to  time,  the  Company,  in its  sole
discretion,  may redeem any number or all of the Securities by providing  thirty
(30) days' written notice to the Holders thereof.  The Company may redeem any or
all of the  Securities  pursuant  to this  paragraph  and  need not  redeem  the
Securities  on a pro rata or other basis.  The Company shall provide the Holders
of any Securities to be redeemed pursuant to this paragraph with notice thereof,
which  notice  shall  set forth the date for such  redemption  (the  "Redemption
Date") and set forth the  Redemption  Price for the  Securities  to be redeemed.
Each such notice shall also  include the amount of interest and  principal to be
paid to the  Holder  on the  Redemption  Date.  No  interest  shall  accrue on a
Security to be redeemed  under this Section 3.1 for any period of time after the
Redemption Date for such Security, provided that the Company has timely tendered
the Redemption Price to the Holder.

      (b)   The  Company  shall have no  mandatory  redemption  or sinking  fund
obligations with respect to any of the Securities.

      (c)   In its sole  discretion,  the Company may offer certain  Holders the
ability to extend the maturity of an existing Security through the redemption of
the current Security and the issuance of a new Security.  This redemption option
shall not be subject to the thirty (30) day notice of  redemption  described  in
this section.

                                       10

<PAGE>

Section 3.2 Redemption of Securities at the Holder's Election.

      (a)   Subject to paragraph (b) below,  within  forty-five (45) days of the
death of a Holder who is a natural person,  the personal  representative  of the
estate of such Holder may  require  the  Company to redeem,  in whole and not in
part,  without penalty,  the Security held by such Holder,  by delivering to the
Company a certified  copy of the Holder's death  certificate  and an irrevocable
written  election (a "Redemption  Election")  requiring the Company to make such
redemption.  In the event a  Security  is held  jointly  by two or more  natural
persons  (including,  without  limitation,  joint  owners  that are not  legally
married), the Company shall redeem such Security upon proper notice if either of
joint Holders of such Security has died. If the Security is held by a Holder who
is not a natural  person,  such as a trust,  partnership,  corporation  or other
similar entity, the right of redemption upon death does not apply, except in the
case of the death of a natural person who is the beneficial  owner of Securities
held of record in an individual retirement account.

      (b)   The Company  will not be required to redeem  Securities  pursuant to
Redemption Elections received pursuant to paragraph (a) above to the extent that
such redemptions exceed $25,000 in the aggregate for all holders in any calendar
quarter.  For the  purposes  of such limit on  aggregate  Redemption  Elections,
Redemption  Elections will be honored in the order received,  and any Redemption
Election not paid in the quarter received due to this limitation will be honored
in the subsequent  quarter,  to the extent possible,  as such limit on aggregate
Redemption Elections will also apply to the subsequent quarter.

      (c)   Subject to Section  3.2(b),  upon receipt of a  Redemption  Election
pursuant to Section 3.2(a),  the Company shall designate the Redemption Date for
the Security to be  redeemed,  which  Redemption  Date shall be no more than ten
(10) days after the Company's receipt of the Redemption Election,  and shall pay
the  Redemption  Price  to the  estate  of the  Holder  in  accordance  with the
provisions  set forth in Section  2.7  hereof.  No  interest  shall  accrue on a
Security to be redeemed  under this Section 3.2 for any period of time after the
Redemption Date for such Security, provided that the Company has timely tendered
the  Redemption  Price  to  the  estate  of the  Holder.  Securities  for  which
redemption  is  delayed  pursuant  to Section  3.2(b)  will  continue  to accrue
interest  until the Company  establishes  a  Redemption  Date  therefor  and the
Security is redeemed.

      (d)   The  Company may at its option and in its sole  discretion  and from
time to time accept for redemption  Securities tendered to it by Holders and may
impose  such  conditions  thereon as it deems  appropriate,  including  an early
redemption penalty with regard thereto.

Section 3.3 Offer to Redeem Securities Upon Change of the Company's Advisor.

      (a)   If the Company terminates the Advisory Agreement for any reason, the
Company shall provide all Holders with a notice  thereof within ten (10) days of
such termination, pursuant to which the Company shall offer to redeem all of the
Securities  outstanding  as of the  date  of  the  termination  of the  Advisory
Agreement.  Each Holder shall have thirty (30) days from the date of such notice
to provide the Company with a Redemption  Election with regard to the Securities
owned by such  Holder,  upon timely  receipt of which the Company  shall  become
bound to

                                       11

<PAGE>

redeem the electing Holder's Securities. This Section 3.3 shall not apply in the
case that the Advisor terminates or elects not to renew the Advisory Agreement.

      (b)   Upon receipt of a Redemption  Election  pursuant to Section  3.3(a),
the  Company  shall  designate  the  Redemption  Date  for each  Security  to be
redeemed,  which  Redemption  Date shall be no more than ten (10) days after the
Company's receipt of the Redemption Election, and shall pay the Redemption Price
to the Holder in accordance with the provisions set forth in Section 2.7 hereof.
No interest shall accrue on a Security to be redeemed under this Section 3.3 for
any period of time after the Redemption  Date for such  Security,  provided that
the Company has timely tendered the Redemption Price to the Holder.

                                   ARTICLE IV.

                                    COVENANTS

Section 4.1 Payment of Securities.

      (a)   Principal and interest (to the extent such interest is paid in cash)
shall be considered  paid on the date due if the Paying Agent, if other than the
Company, holds at least one Business Day before that date money deposited by the
Company in immediately  available funds and designated for and sufficient to pay
all  principal  and  interest  then due.  Such Paying  Agent shall return to the
Company,  no later than five (5) days  following the date of payment,  any money
(including  accrued interest) that exceeds such amount of principal and interest
paid on the Securities in accordance with this Section 4.1.

      (b)   To the extent  lawful,  the Company  shall pay  interest  (including
Post-Petition  Interest in any proceeding  under any Bankruptcy  Law) on overdue
principal at the rate borne by the Securities;  it shall pay interest (including
Post-Petition  Interest in any proceeding  under any Bankruptcy  Law) on overdue
installments of interest  (without regard to any applicable grace period) at the
same rate.

Section 4.2 Maintenance of Office or Agency.

      (a)   The  Company  will  maintain  an office or agency  (which  may be an
office of the Trustee) where  Securities may be surrendered for  registration of
transfer  or  exchange  and where  notices and demands to or upon the Company in
respect of the  Securities  and this  Indenture may be served.  The Company will
give prompt written notice to the Trustee of the location, and any change in the
location,  of such office or agency.  If at any time the  Company  shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof,  such presentations,  surrenders,  notices and demands
may be made or served at the Corporate Trust Office of the Trustee.

      (b)   The Company may also from time to time  designate  one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all such  purposes and may from time to time rescind such  designations.  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.

                                       12

<PAGE>

      (c)   The Company hereby designates its office as one such office of the
Company.

Section 4.3 SEC Reports and Other Reports.

      (a)   The Company  shall file with the Trustee,  within  fifteen (15) days
after filing with the SEC, copies of the annual reports and of the  information,
documents, and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations  prescribe) that the Company is required
to file with the SEC  pursuant to Sections 13 or 15(d) of the  Exchange  Act. If
the Company is not subject to the  requirements  of such Sections 13 or 15(d) of
the  Exchange  Act,  the  Company  shall  continue  to file with the SEC and the
Trustee on the same timely basis such reports,  information  and other documents
as it would file if it were subject to the  requirements of Sections 13 or 15(d)
of the  Exchange  Act.  The Company  shall also comply  with the  provisions  of
TIAss.314(a).  Notwithstanding  anything contrary herein, the Trustee shall have
no duty to review such documents for purposes of determining compliance with any
provisions of the Indenture.

      (b)   Upon the  request of any  Holder,  the Company  shall  provide  such
Holder  with a copy of the  Company's  annual  report on Form 10-K or  quarterly
reports on Form 10-Q without charge. The Company will not be required to provide
Holders with any other reports or financial information or to provide reports to
Holders absent a specific request therefor.

Section 4.4 Compliance Certificate.

      (a)   The Company shall deliver to the Trustee,  within one hundred twenty
(120) days after the end of each Fiscal Year, an Officer's  Certificate  stating
that a review of the activities of the Company during the preceding  fiscal year
has been made under the  supervision  of the signing  Officer(s)  with a view to
determining whether the Company has kept, observed,  performed and fulfilled its
obligations under this Indenture, and further stating that to the best of his or
her knowledge the Company has kept,  observed,  performed and fulfilled each and
every  covenant  contained  in  this  Indenture  and is not  in  default  in the
performance or observance of any of the terms,  provisions and conditions hereof
(or, if a Default or Event of Default shall have  occurred,  describing all such
Defaults  or Events of  Default of which he or she may have  knowledge  and what
action each is taking or proposes to take with respect  thereto) and that to the
best of his or her  knowledge  no event has occurred and remains in existence by
reason of which payments on account of the principal of or interest,  if any, on
the Securities  are  prohibited or if such event has occurred,  a description of
the  event and what  action  each is taking  or  proposes  to take with  respect
thereto. The foregoing Officer's  Certificate shall state whether the promissory
notes  constituting part of the Collateral are valid and binding  obligations of
the obligor  thereof and whether any such  promissory  note has  experienced  an
event of default thereon during the period covered by the Officer's Certificate.

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

                                       13

<PAGE>

Section 4.5 Stay, Extension and Usury Laws.

      The Company  covenants  (to the extent that it may lawfully do so) that it
will not at any time insist upon,  plead, or in any manner  whatsoever  claim or
take the benefit or  advantage  of, any stay,  extension  or usury law  wherever
enacted,  now or at any time hereafter in force,  which may affect the covenants
or the  performance  of this  Indenture.  The Company (to the extent that it may
lawfully do so) hereby  expressly  waives all  beneficial  advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and  permit  the  execution  of every  such power as though no such law has been
enacted.

Section 4.6 Liquidation.

      Neither the Board of Directors nor the  shareholders  of the Company shall
adopt a plan of liquidation that provides for,  contemplates or the effectuation
of which is preceded by (a) the sale, lease,  conveyance or other disposition of
all  or  substantially   all  of  the  assets  of  the  Company  otherwise  than
substantially  as an entirety  (Section 5.1 of this Indenture  being the Section
hereof  which  governs any such sale,  lease,  conveyance  or other  disposition
substantially  as an entirety) and (b) the  distribution of all or substantially
all of the proceeds of such sale, lease,  conveyance or other disposition and of
the  remaining  assets of the  Company to the  holders  of capital  stock of the
Company,  unless  the  Company,  prior to making  any  liquidating  distribution
pursuant to such plan,  makes  provision for the  satisfaction  of the Company's
Obligations  hereunder  and under the  Securities as to the payment of principal
and interest.

Section 4.7 Financial Covenants

      The  Company  covenants  that,  so  long  as  any of  the  Securities  are
outstanding:  (i) the Company will maintain a positive net worth, which includes
all equity  held by the  Company's  common and  preferred  shareholders  and the
Company's  subordinated  debt, and (ii) the Company's long term liabilities will
not exceed three hundred  percent of the Company's  shareholders'  equity at the
end of any fiscal year,  or such higher  amount as authorized by the Bylaws from
time to time.

Section 4.8 Restrictions on Dividends and Certain Transactions with Affiliates

      (a)   The Company  covenants  that, so long as any of the  Securities  are
outstanding, it shall not declare or pay any dividends or other payments of cash
or other property to its common or preferred  shareholders  unless no Default or
Event of Default  with  respect to the  Securities  then  exists or would  exist
immediately  following  the  declaration  or payment of such  dividend  or other
payment.

      (b)   The Company  covenants  that, so long as any of the  Securities  are
outstanding, it shall not guarantee,  endorse or otherwise become liable for any
obligations of any of the Company's Affiliates.

                                       14

<PAGE>

Section 4.9 Collateral

      (a)   The Company  shall from time to time  assign,  deliver and pledge to
the  Trustee,  as security  for the  payment of  principal  and  interest on the
Securities, mortgage-secured promissory notes or debt securities (including, but
not limited to church  bonds) issued by churches and other  nonprofit  religious
organizations  evidencing loans or investments  made by the Company,  or cash or
cash  equivalents,  which at all times shall have an aggregate  unpaid principal
balance of at least 100% of the outstanding  principal  amount of the Securities
(the "Collateral").  Except as described in Section 4.9(g), the Company will not
be obligated to assign the mortgages securing the Collateral to the Trustee.  If
any  of the  promissory  notes  or  debt  securities  constituting  part  of the
Collateral  shall be in default for in excess of ninety  (90) days,  the Company
shall provide  replacement  Collateral for such promissory note or debt security
sufficient  to maintain  such 100%  coverage  without  regard to such  defaulted
promissory note or debt security.  The Company shall deliver to the Trustee such
documents  as the  Trustee  deems  necessary  to create a  perfected  first lien
security  interest in the  Collateral  under the  applicable  provisions  of the
Uniform Commercial Code. If an Event of Default has occurred,  the Company shall
deliver to the Trustee such  documents as the Trustee deems  necessary to enable
the Trustee to exercise its remedies  with regard to the  Collateral,  including
those  necessary  for the Trustee to obtain  direct  payments  under the pledged
promissory  notes and church bonds or to sell or transfer such promissory  notes
and church bonds to third parties.

      (b)   At any time and from time to time,  upon the written  request of the
Trustee,  and at the sole expense of the Company,  the Company will promptly and
duly execute and deliver,  or will  promptly  cause to be executed or delivered,
such further  instruments  and  documents  and take such  further  action as the
Trustee may  reasonably  request for the purpose of obtaining or preserving  the
full benefits of Collateral,  including,  without limitation,  the filing of any
financing or continuation statements under the Uniform Commercial Code in effect
in any jurisdiction.  The Company also hereby authorizes the Trustee to file any
such financing or continuation statement without the signature of the Company to
the extent permitted by applicable law.

      (c)   The Company shall furnish the following to the Trustee in connection
with its pledge of the Collateral to the Trustee:

            (1)   Upon  delivery  of  Collateral,  an  Opinion of Counsel to the
effect  that all  necessary  action has been taken to create and perfect a first
lien and  security  interest in favor of the  Trustee in the pledged  promissory
notes, debt securities, cash or cash equivalents.

            (2)   A UCC-1 financing statement or equivalent recordable form.

            (3)   At least  annually,  an Opinion of Counsel to the effect  that
all  necessary  action  has been taken to  maintain  a first  lien and  security
interest in favor of the Trustee in the pledged promissory notes or stating that
no such action is necessary.

      (d)   In  connection  with  any  release  or  substitution  of  Collateral
assigned to the Trustee  under  Section  4.9(a),  the Company  will,  subject to
Section  4.9(e),  deliver to the Trustee  the  certificate  or opinion,  if any,
required by Section 314(d) of the Trust Indenture Act as to the fair

                                       15

<PAGE>

value of any  Collateral to be released,  dated as of a date not more than sixty
(60) calendar days prior to the date of release.

      (e)   Notwithstanding   anything   contained  in  this  Indenture  to  the
contrary,  the  provisions  of 4.9(d) will not be  applicable  to any release or
substitution  of  Collateral  provided  that the  release and  substitution  was
performed in or a result of changes in the Company's  properties  arising in the
ordinary  course of the Company's  business and the aggregate  unpaid  principal
balance of the Collateral after the release or substitution and giving effect to
additional Collateral assigned to the Trustee contemporaneously therewith was at
least 100% of the outstanding  principal  amount of the Securities.  The Company
will deliver to the Trustee  semi-annually an Officer's  Certificate  certifying
that all releases and  substitutions  of Collateral  pursuant to this  provision
during the  immediately  proceeding  six  months  were in  compliance  with this
subsection.

      (f)   The  Company  shall not change its name or  corporate  structure  or
change the  jurisdiction  under which it is  incorporated  or organized  without
first giving the Trustee at least thirty (30) days prior written  notice thereof
and shall have  delivered to the Trustee all Uniform  Commercial  Code financing
statements  and  amendments  thereto as the Trustee  shall request and taken all
other actions deemed  necessary by the Trustee to continue its perfected  status
in the Collateral with same or better priority.

      (g)   Upon the request of the Trustee where there is a continuing Event of
Default,  the Company  shall assign to the Trustee such  mortgages  securing the
promissory  notes  constituting  part of  Collateral  as are  identified  by the
Trustee, in its discretion.

      (h)   The Company  covenants  that, so long as any of the  Securities  are
outstanding,  the Company  will not  Transfer  any part of the  Collateral.  For
purposes  of this  subsection,  the term  "Transfer"  means a sale,  assignment,
transfer or other disposition  (whether voluntary or by operation of law) of, or
the granting or creating of a lien,  encumbrance or security interest in, any of
the Collateral;  provided,  that the term "Transfer" does not include (i) a sale
or disposition of any of the Collateral which is  contemporaneously  replaced by
other promissory notes, or debt securities, or cash or cash equivalents that are
otherwise  eligible  to  constitute  part of the  Collateral  and where the 100%
Collateral coverage  requirement is at all times met; or (ii) the creation of an
involuntary lien against the Collateral that is released or discharged of record
or otherwise remedied within sixty (60) days of creation.

Section 4.10 Appointment as Attorney-in-Fact.

      (a)   The Company hereby irrevocably  constitutes and appoints the Trustee
and any officer or agent thereof,  with full power of substitution,  as its true
and lawful  attorney-in-fact  with full  irrevocable  power and authority in the
place  and stead of the  Company  and in the name of the  Company  or in its own
name, from time to time in the Trustee's discretion, for the purpose of carrying
out the terms of this Indenture relating to the Collateral,  to take any and all
appropriate  action and to execute any and all documents and  instruments  which
may be necessary or desirable to  accomplish  the purposes of this  Indenture as
they relate to the  Collateral  and the Trustee's  rights and powers with regard
thereto;  provided  that  Trustee  hereby  agrees that it shall not exercise its
rights as  attorney-in-fact  unless an Event of  Default  shall  have

                                       16

<PAGE>

occurred.  Without limiting the generality of the foregoing,  the Company hereby
gives the Trustee the power and right, on behalf of the Company,  without assent
by, but with notice to, the Company,  if an Event of Default shall have occurred
and be continuing, to do the following:

            (1)   in the name of the Company or its own name, or  otherwise,  to
take  possession  of  and  endorse  and  collect  any  checks,   drafts,  notes,
acceptances  or other  instruments  for the  payment  of  moneys  due  under any
mortgage insurance or church bond or with respect to any other Collateral and to
file any claim or to take any other action or  proceeding in any court of law or
equity or  otherwise  deemed  appropriate  by the  Trustee  for the  purpose  of
collecting  any and all such  moneys due under any such  mortgage  insurance  or
church bond or with respect to any other Collateral whenever payable;

            (2)   to pay or  discharge  taxes and  liens  levied or placed on or
threatened against the Collateral;

            (3)   (A) to  direct  any party  liable  for any  payment  under any
Collateral to make payment of any and all moneys due or to become due thereunder
directly  to the Trustee or as the Trustee  shall  direct;  (B) to ask or demand
for, collect, receive payment of and receipt for, any and all moneys, claims and
other  amounts  due or to become due at any time in respect of or arising out of
any   Collateral;   (C)  to  sign  and   endorse  any   invoices,   assignments,
verifications,  notices  and  other  documents  in  connection  with  any of the
Collateral;  (D) to commence and prosecute any suits,  actions or proceedings at
law or in  equity  in  any  court  of  competent  jurisdiction  to  collect  the
Collateral  or any  thereof  and to  enforce  any other  right in respect of any
Collateral;  (E) to defend any suit,  action or proceeding  brought  against the
Company with respect to any Collateral;  (F) to settle, compromise or adjust any
suit,  action or  proceeding  described  in clause (E) above and, in  connection
therewith,  to  give  such  discharges  or  releases  as the  Trustee  may  deem
appropriate; and (G) generally, to sell, transfer, pledge and make any agreement
with  respect  to or  otherwise  deal  with any of the  Collateral  as fully and
completely  as though  the  Trustee  were the  absolute  owner  thereof  for all
purposes,  and to do, at the Trustee's option and the Company's expense,  at any
time,  and from  time to time,  all acts and  things  which  the  Trustee  deems
necessary to protect,  preserve or realize upon the Collateral and the Trustee's
liens thereon and to effect the intent of this Loan Agreement,  all as fully and
effectively as the Company might do; and

            (4)   to  execute  in the  name and file on  behalf  of the  Company
assignments of mortgages  securing the  promissory  notes  constituting  part of
Collateral where there is a continuing Event of Default.

      The Company hereby  ratifies all that said attorneys  shall lawfully do or
cause to be done by virtue  hereof.  This power of attorney  is a power  coupled
with an interest and shall be irrevocable.

      (b)   The Company also  authorizes the Trustee,  at any time and from time
to time,  to execute  any  endorsements,  assignments  or other  instruments  of
conveyance or transfer with respect to the Collateral.

                                       17

<PAGE>

      (c)   The powers  conferred  on the  Trustee  are  solely to  protect  the
Trustee's  interests  in the  Collateral  and shall not impose any duty upon the
Trustee to exercise any such powers.  The Trustee shall be accountable  only for
amounts  that it actually  receives as a result of the  exercise of such powers,
and neither the Trustee nor any of its officers,  directors,  or employees shall
be responsible  to the Company for any act or failure to act  hereunder,  except
for its own gross negligence or willful misconduct.

                                   ARTICLE V.

                                   SUCCESSORS

Section 5.1 When the Company May Merge, etc.

      (a)   The Company may not  consolidate  or merge with or into  (whether or
not the Company is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise  dispose of all or  substantially  all of its  properties or
assets in one or more related  transactions  to another  corporation,  Person or
entity unless (i) the Company is the surviving  corporation or the entity or the
Person  formed by or surviving any such  consolidation  or merger (if other than
the Company) or to which such sale, assignment,  transfer,  lease, conveyance or
other  disposition  shall have been made is a corporation  organized or existing
under the laws of the  United  States,  any state  thereof  or the  District  of
Columbia;   (ii)  the  entity  or  Person   formed  by  or  surviving  any  such
consolidation  or merger (if other than the  Company) or the entity or Person to
which such sale, assignment,  transfer,  lease,  conveyance or other disposition
will have been made assumes all the  obligations of the Company by execution and
delivery of a supplemental  indenture in a form  reasonably  satisfactory to the
Trustee;  and (iii)  immediately  after such  transaction no Default or Event of
Default exists.

      (b)   The Company shall  deliver to the Trustee prior to the  consummation
of the proposed transaction an Officer's Certificate to the foregoing effect and
an  Opinion  of  Counsel   stating  that  the  proposed   transaction  and  such
supplemental indenture comply with this Indenture. The Trustee shall be entitled
to conclusively rely upon such Officer's Certificate and Opinion of Counsel.

Section 5.2 Successor Corporation Substituted.

      Upon any consolidation or merger, or any sale, lease,  conveyance or other
disposition  of  all  or  substantially  all of the  assets  of the  Company  in
accordance  with  Section  5.1,  the  successor   corporation   formed  by  such
consolidation  or into or with  which the  Company,  is merged or to which  such
sale,  lease,  conveyance or other  disposition is made shall succeed to, and be
substituted  for, and may exercise  every right and power of, the Company  under
this Indenture  with the same effect as if such successor  Person has been named
as the Company herein; provided, however, that the Company shall not be released
or  discharged  from the  obligation  to pay the principal of or interest on the
Securities.

                                       18

<PAGE>

                                   ARTICLE VI.

                              DEFAULTS AND REMEDIES

Section 6.1 Events of Default.

      An "Event of Default" occurs if:

      (a)   the Company  defaults in the payment of interest on a Security  when
the same  becomes  due and payable  and the  Default  continues  for a period of
thirty (30) days;

      (b)   the Company defaults in the payment of the principal of any Security
when the same becomes due and payable at maturity, upon a required redemption or
otherwise, and the Default continues for a period of thirty (30) days;

      (c)   the Company fails to observe or perform any  covenant,  condition or
agreement  on the part of the Company to be observed  or  performed  pursuant to
Section 4.6 or 5.1 hereof;

      (d)   the Company  defaults in its obligations  described in clause (b) or
(c) of Section 4.9 and such default continues for a period of sixty (60) days;

      (e)   the  Company  fails to comply  with any of its other  agreements  or
covenants in, or provisions of, the Securities or this Indenture and the Default
continues for the period and after the notice specified below;

      (f)   the Company  pursuant to or within the meaning of any Bankruptcy Law
(i)  commences  a  voluntary  case;  (ii)  consents to the entry of an order for
relief against it in an involuntary case; (iii) consents to the appointment of a
Custodian of it or for all or  substantially  all of its property;  (iv) makes a
general  assignment for the benefit of its  creditors;  or (v) admits in writing
its inability to pay debts as the same become due; or

      (g)   a court of  competent  jurisdiction  enters an order or decree under
any  Bankruptcy Law that (i) is for relief against the Company in an involuntary
case; (ii) appoints a Custodian of the Company or for all or  substantially  all
of its property;  (iii) orders the liquidation of the Company,  and the order or
decree remains  unstayed and in effect for one hundred twenty (120)  consecutive
days.

      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.

      A Default  under clause (e) of this Section 6.1 is not an Event of Default
until the Trustee or the Holders of at least a majority in  principal  amount of
the then  outstanding  Securities  notify  the  Company of the  Default  and the
Company  does not cure the Default or such Default is not waived  within  thirty
(30) days after  receipt of the  notice.  The notice must  specify the  Default,
demand that it be remedied and state that the notice is a "Notice of Default."

                                       19

<PAGE>

Section 6.2 Acceleration.

      If an Event of  Default  (other  than an Event  of  Default  specified  in
clauses  (f) or (g) of Section  6.1)  occurs and is  continuing,  the Trustee by
notice to the Company or the Holders of at least a majority in principal  amount
of the then  outstanding  Securities  by written  notice to the  Company and the
Trustee may declare the unpaid  principal of and any accrued interest on all the
Securities  to be due and  payable.  Upon such  declaration  the  principal  and
interest shall be due and payable immediately.  If an Event of Default specified
in clause  (f) or (g) of Section  6.1  occurs,  such an amount  shall ipso facto
become and be immediately  due and payable  without any declaration or other act
on the part of the  Trustee or any  Holder.  The  Trustee,  or the  Holders of a
majority  in  principal  amount of the then  outstanding  Securities  by written
notice to the Trustee,  may rescind an acceleration  and its consequences if the
rescission  would not  conflict  with any judgment or decree and if all existing
Events of Default  (except  nonpayment  of principal or interest that has become
due solely because of the acceleration) have been cured or waived.

Section 6.3 Other Remedies.

      (a)   If an Event of Default  occurs and is  continuing,  the  Trustee may
pursue any  available  remedy to collect the payment of principal or interest on
the Securities or to enforce the  performance of any provision of the Securities
or this  Indenture,  including,  without  limitations,  all rights and  remedies
available to a secured party under the Uniform  Commercial Code. The Trustee may
maintain a proceeding  even if it does not possess any of the Securities or does
not produce any of them in the  proceeding.  Without  limiting the generality of
the  foregoing,  the Trustee  without  demand of  performance  or other  demand,
presentment,  protest,  advertisement  or notice of any kind  (except any notice
required by law  referred  to below) to or upon the Company or any other  Person
(each  and all of which  demands,  presentments,  protests,  advertisements  and
notices  are  hereby  waived),  may in  such  circumstances  forthwith  collect,
receive,  appropriate  and realize  upon the  Collateral,  or any part  thereof,
and/or may forthwith sell, lease, assign, give option or options to purchase, or
otherwise dispose of and deliver the Collateral or any part thereof (or contract
to do any of the foregoing),  in one or more parcels or as an entirety at public
or  private  sale or sales,  at any  exchange,  broker's  board or office of the
Trustee or elsewhere upon such terms and conditions as it may deem advisable and
at such prices as it may deem best, for cash or on credit or for future delivery
without assumption of any credit risk. The Trustee shall have the right upon any
such public sale or sales,  and, to the extent  permitted by law,  upon any such
private sale or sales,  to purchase the whole or any part of the  Collateral  so
sold,  free of any right or equity of redemption in the Company,  which right or
equity  is  hereby  waived or  released.  The  Company  further  agrees,  at the
Trustee's  request,  to assemble  the  Collateral  and make it  available to the
Trustee at places  which the Trustee  shall  reasonably  select,  whether at the
Company's  premises  or  elsewhere.  If any notice of a  proposed  sale or other
disposition of Collateral  shall be required by law, such notice shall be deemed
reasonable  and proper if given at least ten (10) days before such sale or other
disposition.

      (b)   A delay or omission by the Trustee or any Holder in  exercising  any
right or remedy  accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or  acquiescence  in the Event of Default.  All
remedies are cumulative to the extent permitted by law.

                                       20

<PAGE>

Section 6.4 Waiver of Past Defaults.

      The  Trustee  may waive any past  Default or Event of Default  without the
consent of the Holders, provided that such Default is wholly cured. Holders of a
majority in principal amount of the then outstanding Securities by notice to the
Trustee may waive an existing Default or Event of Default and its  consequences,
and a continuing  Default or Event of Default in the payment of the principal of
or interest on any Security held by a  non-consenting  Holder may also be waived
upon the consent of the Holders of at least a majority of the  principal  amount
of the then  outstanding  Securities.  Upon actual receipt of any such notice of
waiver by a  Responsible  Officer of the Trustee,  such  Default  shall cease to
exist,  and any Event of Default arising  therefrom shall be deemed to have been
cured for every  purpose of this  Indenture;  but no such waiver shall extend to
any subsequent or other Default or impair any right consequent thereon.

Section 6.5 Control by Majority.

      The  Holders of a majority  in  principal  amount of the then  outstanding
Securities  may 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,  provided,  that  indemnification  for the  Trustee's  fees and
expenses,  in a form  reasonably  satisfactory  to the Trustee,  shall have been
provided. However, the Trustee may refuse to follow any direction that conflicts
with  law  or  this  Indenture,  that  the  Trustee  determines  may  be  unduly
prejudicial to the rights of other  Holders,  or that may involve the Trustee in
personal liability.

Section 6.6 Limitation on Suits.

      A Holder  may  pursue a  remedy  with  respect  to this  Indenture  or the
Securities only if:

      (a)   the Holder gives to the Trustee written notice of a continuing Event
of Default;

      (b)   the Holders of at least a majority in  principal  amount of the then
outstanding  Securities  make a written  request  to the  Trustee  to pursue the
remedy;

      (c)   such  Holder or Holders  offer  and,  if  requested,  provide to the
Trustee  indemnity  satisfactory to the Trustee  against any loss,  liability or
expense;

      (d)   the Trustee does not comply with the request  within sixty (60) days
after receipt of the request and the offer and, if  requested,  the provision of
indemnity; and

      (e)   during  such  sixty (60) day  period  the  Holders of a majority  in
principal  amount of the then  outstanding  Securities do not give the Trustee a
direction inconsistent with the request.

      A Holder may not use this  Indenture  to  prejudice  the rights of another
Holder or to obtain a preference or priority over another Holder.

Section 6.7 Rights of Holders to Receive Payment.

      Except as  provided  in this  Indenture,  the  right  of any  Holder  of a
Security to receive  payment of principal  and interest on the  Security,  on or
after the respective due dates expressed

                                       21

<PAGE>

in the Security,  or 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 the Holder.

Section 6.8 Collection Suit by Trustee.

      If an Event of Default  specified  in Section  6.1(a) or (b) occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as
trustee  of an  express  trust  against  the  Company  for the  whole  amount of
principal  and  interest  remaining  unpaid on the  Securities  and  interest on
overdue principal and, to the extent lawful, interest and 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.

Section 6.9 Trustee May File Proofs of Claim.

      The Trustee is authorized to file such proofs of claim and other papers or
documents  as may be  necessary  or advisable in order to have the claims of the
Trustee  (including  any  claim  for  the  reasonable  compensation,   expenses,
disbursements  and  advances of the  Trustee,  its agents and  counsel)  and the
Holders  allowed in any  judicial  proceedings  relative  to the Company (or any
other obligor upon the  Securities),  its creditors or its property and shall be
entitled and  empowered to collect,  receive and  distribute  any money or other
property payable or deliverable on any such claims and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to
the Trustee,  and in the event that the Trustee  shall  consent to the making of
such payments  directly to the Holders,  to pay to the Trustee any amount due to
it for the reasonable compensation,  expenses, disbursements and advances of the
Trustee,  its agents and counsel,  and any other  amounts due the Trustee  under
Section  7.7 hereof.  To the extent  that the payment of any such  compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other  amounts due the Trustee under Section 7.7 hereof out of the estate in
any such proceeding,  shall be denied for any reason,  payment of the same shall
be secured  by a lien on,  and shall be paid out of, any and all  distributions,
dividends,  money,  securities  and other  properties  which the  Holders of the
Securities may be entitled to receive in such proceeding  whether in liquidation
or under any plan of reorganization or arrangement or otherwise.  Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or  composition  affecting the Securities or the rights of any Holder
thereof,  or to  authorize  the  Trustee  to vote in respect of the claim of any
Holder in any such proceeding.

Section 6.10 Priorities.

      If the Trustee  collects  any money  pursuant to this  Article,  it shall,
subject  to the  provisions  of  Article  10  hereof,  pay out the  money in the
following order:

      (a)   First:  to the  Trustee,  its agents and  attorneys  for amounts due
under  Section  7.7,  including  payment  of  all  compensation,   expenses  and
liabilities  incurred,  and all  advances  made,  if any, by the Trustee and the
costs and expenses of collection;

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<PAGE>

      (b)   Second:  to Holders for amounts due and unpaid on the Securities for
principal, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Securities for principal;

      (c)   Third:  to Holders  for  amounts  due and  unpaid on the  Securities
interest,  ratably, without preference or priority of any kind, according to the
amounts due and payable on the Securities for interest; and

      (d)   Fourth:  to the  Company  or to such  party as a court of  competent
jurisdiction shall direct.

      The   Trustee may fix a record  date and  payment  date for any payment to
Holders.

Section 6.11 Undertaking for Costs.

      In any  suit  for the  enforcement  of any  right  or  remedy  under  this
Indenture  or in any suit against the Trustee for any action taken or omitted by
it as a Trustee,  a court in its  discretion may require the filing by any party
litigant  in the suit of an  undertaking  to pay the costs of the suit,  and the
court in its  discretion  may  assess  reasonable  costs,  including  reasonable
attorneys'  fees,  against any party litigant in the suit,  having due regard to
the merits and good faith of the claims or defenses made by the party  litigant.
This  Section  does  not  apply  to a suit by the  Trustee,  a suit by a  Holder
pursuant  to Section  6.7,  or a suit by  Holders of more than 10% in  principal
amount of the then outstanding Securities.

                                  ARTICLE VII.

                                     TRUSTEE

Section 7.1 Duties of Trustee.

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

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

            (1)   The duties of the Trustee  shall be  determined  solely by the
express  provisions  of this  Indenture  and the Trustee need perform only those
duties that are specifically  set forth in this Indenture and no others,  and no
implied  covenants or obligations  shall be read into this Indenture against the
Trustee.

            (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 resolutions,  statements,  reports,  documents,
orders, certificates, opinions or other instruments furnished to the Trustee and
conforming to the requirements of this Indenture. However, in the case of any of
the above that are specifically required to be furnished to the Trustee pursuant
to

                                       23

<PAGE>

this  Indenture,  the Trustee  shall  examine  them to  determine  whether  they
substantially conform to the requirements of this Indenture.

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

            (1)   This   paragraph  does  not  limit  the  effect  of  paragraph
7.1(b)(2) 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 is proved that the Trustee was
negligent in ascertaining the pertinent facts.

            (3)   The Trustee  shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction  received by
it pursuant to Section 6.5.

      (d)   Whether or not therein  expressly  so provided,  every  provision of
this  Indenture  that in any way relates to the Trustee is subject to paragraphs
(a), (b) and (c) of this Section.

      (e)   No provision of this  Indenture  shall require the Trustee to expend
or risk its own funds or incur any liability.  The Trustee may refuse to perform
any  duty  or  exercise  any  right  or  power  unless  it  receives   indemnity
satisfactory to it against any loss, liability or expense.

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

Section 7.2 Rights of Trustee.

      (a)   The Trustee may conclusively  rely upon any document  believed by it
to be genuine and to have been signed or presented  to it by the proper  Person.
The Trustee need not investigate any fact or matter stated in the document.  The
Trustee  shall  have no duty to inquire as to the  performance  of the  Issuers'
covenants  in Article 4. In  addition,  the Trustee  shall not be deemed to have
knowledge of any Default or any Event of Default  except any Default or Event of
Default  of which the  Trustee  shall  have  received  written  notification  or
obtained actual knowledge.

      (b)   Before the Trustee acts or refrains  from acting,  it may require an
Officer's Certificate or an Opinion of Counsel or both. The Trustee shall not be
liable  for any action it takes or omits to take in good  faith in  reliance  on
such Officer's  Certificate or Opinion of Counsel.  The Trustee may consult with
counsel and the written  advice of such counsel or any Opinion of Counsel  shall
be full and complete  authorization  and protection from liability in respect of
any action  taken,  suffered  or omitted  by it  hereunder  in good faith and in
reliance thereon.

      (c)   The  Trustee  may  act  through  agents,  attorneys,  custodians  or
nominees and shall not be  responsible  for the  misconduct or negligence or the
supervision  of any agents,  attorneys,  custodians or nominees  appointed by it
with due care.

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<PAGE>

      (d)   The Trustee  shall not be liable for any action it takes or omits to
take in good faith which it believes  to be  authorized  or within the rights or
powers conferred upon it by this Indenture.

      (e)   Unless  otherwise  specifically  provided  in  this  Indenture,  any
demand,  request,  direction or notice from the Company  shall be  sufficient if
signed by an Officer of the Company.

      (f)   The  Trustee  shall  not be  deemed  to have  notice  of an Event of
Default for any purpose under this  Indenture  unless  notified of such Event of
Default by the Company or a Holder of the Securities.

Section 7.3 Individual Rights of Trustee.

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

Section 7.4 Trustee's Disclaimer.

      The Trustee shall not be responsible for and makes no representation as to
the validity or adequacy of this  Indenture or the  Securities.  It shall not be
accountable  for the Company's  use of the proceeds  from the  Securities or any
money paid to the Company or upon the  Company's  direction  under any provision
hereof.  It shall not be responsible  for any statement or recital herein or any
statement in the Securities or any other document in connection with the sale of
the  Securities  or pursuant to this  Indenture  other than its  certificate  of
authentication.

Section 7.5 Notice of Defaults.

      If a Default or Event of Default  occurs  and is  continuing  and if it is
known to a Responsible Officer of the Trustee, the Trustee shall mail to Holders
at their  addresses  as they appear in the  Securities  Register a notice of the
Default or Event of  Default  within  ninety  (90) days after it occurs or first
becomes  known to the  Trustee.  At least  five (5)  Business  Days prior to the
mailing of any notice to Holders  under this  Section  7.5,  the  Trustee  shall
provide the Company with notice of its intent to mail such notice. Except in the
case of a Default or Event of Default in payment on any  Security,  the  Trustee
may withhold the notice if and so long as the Responsible Officer of the Trustee
in good faith  determines  that  withholding  the notice  would have no material
adverse effect on the Holders.

Section 7.6 Reports by Trustee to Holders.

      (a)   Within  sixty (60) days after  December  31 of each  calendar  year,
commencing  December 31, 2008,  the Trustee shall mail to Holders a brief report
dated as of such  reporting  date that  complies  with TIA ss. 313(a) (but if no
event  described in TIA ss. 313(a) has occurred  within the 12 months  preceding
the reporting date, no report need be prepared or transmitted). The Trustee also
shall comply with TIA ss.  313(b).  The Trustee  shall also transmit by mail all
reports as required by TIA ss. 313(c).

                                       25

<PAGE>

      (b)   Commencing at the time this Indenture is qualified  under the TIA, a
copy of each report mailed to Holders under this Section 7.6 (at the time of its
mailing to Holders) shall be filed with the SEC and each stock exchange, if any,
on which the  Securities  are listed.  The  Company  shall  promptly  notify the
Trustee if and when the Securities are listed on any stock exchange.

Section 7.7 Compensation and Indemnity.

      (a)   The Company  shall pay to the Trustee  from time to time  reasonable
compensation  for its  acceptance of this  Indenture and its  performance of the
duties and services required 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   promptly  upon  request  for  all   reasonable
disbursements,  advances and expenses  incurred or made by it in addition to the
compensation  for its  services.  Such  expenses  shall  include the  reasonable
compensation, disbursements and expenses of the Trustee's agents and counsel.

      (b)   The Company shall  indemnify the Trustee against any and all losses,
liabilities or expenses  incurred by it arising out of or in connection with the
acceptance or administration  of its duties under this Indenture,  except as set
forth in paragraph 7.7(d) hereof.  The Trustee shall notify the Company promptly
of any claim for  which it may seek  indemnity.  Failure  by the  Trustee  to so
notify the Company shall not relieve the Company of its  obligations  hereunder,
except to the extent the Company is prejudiced thereby. The Company shall defend
the claim and the  Trustee  shall  reasonably  cooperate  in such  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, which consent shall not be unreasonably withheld.

      (c)   The  obligations of the Company under this Section 7.7 shall survive
the satisfaction and discharge of this Indenture.

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

      (e)   To secure the Company's  payment  obligations  in this Section,  the
Trustee shall have a lien prior to the  Securities on all money or property held
or  collected  by the Trustee,  except that held in trust to pay  principal  and
interest  on a  Payment  Date  scheduled  to occur  within  ten (10) days of the
Trustee's   intended  exercise  of  such  lien.  Such  lien  shall  survive  the
satisfaction  and  discharge of this  Indenture.  The Trustee  shall provide the
Company with notice of its exercise of the lien provided for herein concurrently
with its exercise of such lien.

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

                                       26

<PAGE>

Section 7.8 Replacement of Trustee.

      (a)   A  resignation  or  removal  of the  Trustee  and  appointment  of a
successor  Trustee  shall become  effective  only upon the  successor  Trustee's
acceptance of appointment as provided in this Section 7.8.

      (b)   Upon appointment of a successor Trustee,  the Trustee may resign and
be discharged  from the trust hereby  created by so notifying  the Company.  The
Holders of a majority in principal amount of the then outstanding Securities may
remove the Trustee by so notifying  the Trustee and the Company in writing.  The
Company may remove the Trustee if:

            (1)   the Trustee fails to comply with Section 7.10;

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

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

            (4)   the Trustee becomes  incapable of acting as Trustee under this
Indenture; or

            (5)   the Company so elects,  provided such  replacement  Trustee is
qualified and reasonably acceptable.

      (c)   If the Trustee  resigns or is removed or if a vacancy  exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.

      (d)   If a successor  Trustee does not take office within thirty (30) days
after  notice  that the  Trustee  has been  removed,  the  Company may appoint a
successor Trustee.

      (e)   If the Trustee after  written  request by any Holder fails to comply
with Section 7.10, such Holder may petition any court of competent  jurisdiction
for the removal of the Trustee and the appointment of a successor Trustee.

      (f)   A  successor  Trustee  shall  deliver  a written  acceptance  of its
appointment  to  the  retiring  Trustee  and  to  the  Company.   Thereupon  the
resignation or removal of the retiring Trustee shall become  effective,  and the
successor  Trustee  shall have all the rights,  powers and duties of the Trustee
under  this  Indenture.  The  successor  Trustee  shall  mail  a  notice  of its
succession  to all Holders.  The retiring  Trustee shall  promptly  transfer all
property held by it as Trustee to the successor Trustee, provided all sums owing
to the Trustee  hereunder have been paid and subject to the lien provided for in
Section 7.7. Notwithstanding replacement of the Trustee pursuant to this Section
7.8, the Company's  obligations  under Section 7.7 hereof shall continue for the
benefit of the retiring Trustee.

Section 7.9 Successor Trustee by Merger, etc.

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

                                       27

<PAGE>

act shall be the successor  Trustee.  The Trustee  shall  provide  notice of any
event  described in this Section to the Company prior to or as soon as practical
after the occurrence thereof.

Section 7.10 Eligibility; Disqualification.

      (a)   There  shall at all times be a Trustee  hereunder  which  shall be a
corporation  or  association  organized and doing business under the laws of the
United States of America or of any state or territory thereof or of the District
of Columbia  authorized  under such laws to exercise  corporate  trustee  power,
shall be subject to supervision or examination by Federal, state, territorial or
District of Columbia  authority and shall have a combined capital and surplus of
at least  $5,000,000 as set forth in its most recent  published annual report of
condition.

      (b)   This  Indenture  shall  always  have a  Trustee  who  satisfies  the
requirements  of TIAss.  310(a)(1)  and (2).  The  Trustee  is subject to TIAss.
310(b).

Section 7.11 Preferential Collection of Claims Against Company.

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

                                  ARTICLE VIII.

                             DISCHARGE OF INDENTURE

Section 8.1 Termination of Company's Obligations.

      (a)   This Indenture  shall cease to be of further effect (except that the
Company's  obligations under Sections 7.7 and 8.4, and the Company's,  Trustee's
and  Paying  Agent's  obligations  under  Section  8.3 shall  survive)  when all
outstanding  Securities have been paid in full and the Company has paid all sums
payable by the Company hereunder.  In addition, the Company may terminate all of
its obligations under this Indenture if:

            (1)   the Company irrevocably  deposits in trust with the Trustee or
at the option of the  Trustee,  with a trustee  reasonably  satisfactory  to the
Trustee and the Company  under the terms of an  irrevocable  trust  agreement in
form  and  substance  satisfactory  to the  Trustee,  money  or U.S.  Government
Obligations  sufficient  to pay  principal  and  interest on the  Securities  to
maturity or redemption, as the case may be, and to pay all other sums payable by
it hereunder,  provided that (i) the trustee of the irrevocable trust shall have
been  irrevocably  instructed  to pay such  money or the  proceeds  of such U.S.
Government  Obligations  to the  Trustee  and (ii) the  Trustee  shall have been
irrevocably  instructed  to  apply  such  money  or the  proceeds  of such  U.S.
Government  Obligations  to the  payment of said  principal  and  interest  with
respect to the Securities;

            (2)   the Company  delivers to the Trustee an Officer's  Certificate
stating that all  conditions  precedent to  satisfaction  and  discharge of this
Indenture have been complied with; and

                                       28

<PAGE>

            (3)   no Event of Default or event  (including  such deposit) which,
with notice or lapse of time,  or both,  would  become an Event of Default  with
respect to the  Securities  shall have occurred and be continuing on the date of
such deposit.

Then,  this Indenture shall cease to be of further effect (except as provided in
this paragraph), and the Trustee, on demand of the Company, shall execute proper
instruments  acknowledging  confirmation  of and discharge under this Indenture.
The Company may make the deposit only if Article X hereof does not prohibit such
payment.  However,  the party's obligations in Sections 2.3, 2.4, 2.5, 2.6, 2.7,
4.1, 4.2, 4.3, 7.7, 7.8, 8.3 and 8.4 shall survive until the  Securities  are no
longer outstanding.  Thereafter,  only the Company's obligations in Sections 7.7
and 8.4 and the Company's,  Trustee's and Paying Agent's  obligations in Section
8.3 shall survive.

      (b)   After such irrevocable deposit made pursuant to this Section 8.1 and
satisfaction of the other conditions set forth herein,  the Trustee upon written
request shall acknowledge in writing the discharge of the Company's  obligations
under this Indenture except for those surviving obligations specified above.

      (c)   In order to have money  available on a payment date to pay principal
or interest on the Securities,  the U.S. Government Obligations shall be payable
as to  principal  or interest at least one Business Day before such payment date
in such amounts as will provide the necessary money. U.S. Government Obligations
shall not be callable at the issuer's option.

Section 8.2 Application of Trust Money.

      The   Trustee or a trustee  satisfactory  to the  Trustee  and the Company
shall  hold in trust  money or U.S.  Government  Obligations  deposited  with it
pursuant to Section 8.1. It shall apply the  deposited  money and the money from
U.S. Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal and interest on the Securities.

Section 8.3 Repayment to Company.

      (a)   The Trustee and the Paying  Agent shall  promptly pay to the Company
upon written  request any excess money or  securities  held by them at any time.
All money deposited with the Trustee  pursuant to Section 8.1 (and held by it or
the Paying Agent) for the payment of Securities  subsequently converted shall be
returned to the Company upon request.

      (b)   The  Trustee  and the Paying  Agent  shall pay to the  Company  upon
written  request any money held by them for the payment of principal or interest
that remains  unclaimed for two years after the right to such money has matured;
provided,  however,  that the Company  shall cause  notice of such payment to be
mailed to each  Holder  entitled  thereto no less than thirty (30) days prior to
such repayment. After payment to the Company, Holders entitled to the money must
look to the  Company  for  payment  as  unsecured  general  creditors  unless an
abandoned  property law designates  another Person. If money is delivered to the
Company  pursuant to this Section  8.3(b),  all liability of the Trustee and the
Paying Agent with respect to such money shall cease.

                                       29

<PAGE>

Section 8.4 Reinstatement.

      If    the  Trustee  or  Paying  Agent is unable to apply any money or U.S.
Government  Obligations  in  accordance  with Section 8.2 by reason of any legal
proceeding  or by reason of any order or judgment  of any court or  governmental
authority enjoining,  restraining or otherwise prohibiting such application, the
Company's  obligations  under this Indenture and the Securities shall be revived
and  reinstated as though no deposit had occurred  pursuant to Section 8.1 until
such time as the Trustee or Paying Agent is permitted to apply all such money or
U.S. Government  Obligations in accordance with Section 8.2; provided,  however,
that if the Company has made any  payment of  interest  on or  principal  of any
Securities because of the reinstatement of its obligations, the Company shall be
subrogated  to the rights of the  Holders  of such  Securities  to receive  such
payment,  as long as no money is owed to the  Trustee by the  Company,  from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.

                                   ARTICLE IX.

                                   AMENDMENTS

Section 9.1 Without Consent of Holders.

      The   Company and the Trustee may amend this  Indenture or the  Securities
without the consent of any Holder:

      (a)   to cure any ambiguity, defect or inconsistency;

      (b)   to comply with Section 5.1;

      (c)   to make any  change  that would  provide  any  additional  rights or
benefits to Holders of Securities  or that does not  adversely  affect the legal
rights hereunder of any Holder;

      (d)   to increase the aggregate  dollar amount of Securities  which may be
outstanding under this Indenture;

      (e)   make any  change in Section  3.2;  provided,  however,  that no such
change shall adversely affect the rights of any outstanding Security;

      (f)   to comply with any  requirements  of the SEC in connection  with the
qualification  of this  Indenture  under  the TIA or any  requirements  of state
securities  regulators  imposed  in  connection  with the  qualification  of the
Indenture or the Securities under state law; or

      (g)   to make any change  necessary to maintain the Company's  status as a
real estate investment trust.

Section 9.2 With Consent of Holders.

      (a)   The  Company  and  the  Trustee  may  amend  this  Indenture  or the
Securities  with the  written  consent of the  Holders of at least a majority in
principal amount of the then

                                       30

<PAGE>

outstanding  Securities.  The  Holders of a majority  in  principal  of the then
outstanding  Securities may also waive any existing  default or compliance  with
any provision of this Indenture or the Securities.

      (b)   It shall not be necessary  for the consent of the Holders under this
Section to approve the particular form of any proposed  amendment or waiver, but
it shall be sufficient if such consent approves the substance thereof.

Section 9.3 Compliance with Trust Indenture Act.

      If at the time this  Indenture  shall be  qualified  under the TIA,  every
amendment  to  this  Indenture  or  the  Securities  shall  be  set  forth  in a
supplemental indenture that complies with the TIA as then in effect.

Section 9.4 Revocation and Effect of Consents.

      (a)   Until an amendment or waiver becomes effective, a consent to it by a
Holder of a Security is a continuing  consent by the Holder and every subsequent
Holder of a Security or portion of a Security  that  evidences  the same debt as
the consenting Holder's Security, even if notation of the consent is not made on
any Security.  An amendment or waiver becomes  effective in accordance  with its
terms and thereafter binds every Holder.

      (b)   The Company may fix a record date for determining which Holders must
consent to such  amendment or waivers.  If the Company fixes a record date,  the
record  date  shall be fixed at (i) the later of thirty  (30) days  prior to the
first  solicitation  of such  consent  or the  date of the most  recent  list of
Holders furnished to the Trustee prior to such solicitation  pursuant to Section
2.5, or (ii) such other date as the Company shall designate.

Section 9.5 Notation on or Exchange of Securities.

      The Trustee may place an appropriate notation about an amendment or waiver
on any Security, if certificated,  or any Account statement. Failure to make any
notation or issue a new  Security  shall not affect the  validity  and effect of
such amendment or waiver.

Section 9.6 Trustee to Sign Amendments, etc.

      The Trustee shall sign any amendment or supplemental  indenture authorized
pursuant  to this  Article 9 if, in the  Trustee's  reasonable  discretion,  the
amendment  does  not  adversely  affect  the  rights,  duties,   liabilities  or
immunities of the Trustee.  If it does,  the Trustee may, but need not, sign it.
In signing or refusing to sign such  amendment or  supplemental  indenture,  the
Trustee  shall be entitled to receive,  if  requested,  an indemnity  reasonably
satisfactory  to it and to receive and,  subject to Section 7.1,  shall be fully
protected in relying  upon, an Officer's  Certificate  and an Opinion of Counsel
(or written  advice of counsel) as conclusive  evidence  that such  amendment or
supplemental indenture is authorized or permitted by this Indenture,  that it is
not  inconsistent  herewith,  and that it will be  valid  and  binding  upon the
Company in accordance with its terms.

                                       31

<PAGE>

                                   ARTICLE X.

                                  MISCELLANEOUS

Section 10.1 Trust Indenture Act Controls.

            If any provision of this  Indenture  limits,  qualifies or conflicts
with the duties imposed by TIA ss. 318(c), the imposed duties shall control.

Section 10.2 Notices.

      (a)   Any notice, instruction,  direction,  request or other communication
by the  Company,  the  Trustee  or any  Holder to the others is duly given if in
writing and delivered in person or mailed by  first-class  mail  (registered  or
certified, return receipt requested), telex, telecopier or overnight air courier
guaranteeing next day delivery, to the other's address:

      If to the Company:

            AMERICAN CHURCH MORTGAGE COMPANY
            10237 Yellow Circle Drive
            Minnetonka, MN 55343
            Attention: President
            Fax: (952) 945-9433

      If to the Trustee:

            HERRING BANK
            Corporate Trust Department
            1608 S. Polk St.
            Amarillo, TX 79102
            Fax: (806) 378-6655

      (b)   The  Company or the Trustee by notice to the Company and the Trustee
may  designate  additional  or different  addresses  for  subsequent  notices or
communications.

      (c)   All  notices and  communications  (other than those sent to Holders)
shall be deemed  to have been duly  given:  at the time  delivered  by hand,  if
personally delivered;  five (5) Business Days after being deposited in the mail,
postage  prepaid,  if mailed;  when  answered  back,  if telexed;  when  receipt
acknowledged,  if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier guaranteeing next day delivery.

      (d)   Any  notice  or  communication  to  a  Holder  shall  be  mailed  by
first-class  mail,  certified or registered,  return receipt  requested,  to his
address shown on the register kept by the Registrar. Failure to mail a notice or
communication  to a Holder or any defect in it shall not affect its  sufficiency
with respect to other Holders.

      (e)   If a notice or  communication is mailed in the manner provided above
within the time  prescribed,  it is duly  given,  whether  or not the  addressee
receives it.

                                       32

<PAGE>

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

Section 10.3 Communication by Holders with Other Holders.

      Holders may communicate pursuant to TIA ss. 312(b) with other Holders with
respect to their rights  under this  Indenture  or the  Securities.  The Trustee
shall provide information regarding other Holders to any Holder only as required
by TIA ss. 312(b). The Company, the Trustee, the Registrar and anyone else shall
have the protection of TIA ss. 312(c).

Section 10.4 Certificate and Opinion as to Conditions Precedent.

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

      (a)   an  Officer's   Certificate   in  form  and   substance   reasonably
satisfactory  to the Trustee  (which shall include the  statements  set forth in
Section  10.5)  stating  that,  in the opinion of the  signers,  all  conditions
precedent and covenants,  if any, provided for in this Indenture relating to the
proposed action have been complied with; and

      (b)   an Opinion of Counsel in form and substance reasonably  satisfactory
to the Trustee  (which shall include the  statements  set forth in Section 10.5)
stating that, in the opinion of such counsel,  all such conditions precedent and
covenants have been complied with.

Section 10.5 Statements Required in Certificate or Opinion.

      Each certificate or opinion with respect to compliance with a condition or
covenant  provided  for in this  Indenture  (other than a  certificate  provided
pursuant to TIA ss. 314(a)(4)) shall include:

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

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

      (c)   a statement  that,  in the opinion of such Person,  he has made such
examination  or  investigation  as is  necessary  to enable  him to  express  an
informed opinion whether such covenant or condition has been complied with; and

      (d)   a statement whether,  in the opinion of such Person,  such condition
or covenant has been complied with.

Section 10.6 Rules by Trustee and Agents.

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

                                       33

<PAGE>

Section 10.7 Legal Holidays.

      A  "Legal  Holiday"  is a  Saturday,  a Sunday  or a day on which  banking
institutions  in the State of Minnesota or at a place of payment are  authorized
or  obligated  by law,  regulation  or executive  order to remain  closed.  If a
payment  date is a Legal  Holiday at a place of payment,  payment may be made at
that  place  on the next  succeeding  day  that is not a Legal  Holiday,  and no
interest shall accrue for the intervening period.

Section 10.8 No Recourse Against Others.

      No director,  officer,  employee,  agent,  manager or  stockholder  of the
Company as such,  shall have any  liability for any  obligations  of the Company
under the  Securities or this 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.

Section 10.9 Duplicate Originals.

      The  parties may sign any number of copies of this  Indenture.  One signed
copy is enough to prove this Indenture.

Section 10.10 Governing Law.

      THE INTERNAL LAW OF THE STATE OF MINNESOTA SHALL GOVERN THIS INDENTURE AND
THE SECURITIES, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

Section 10.11 No Adverse Interpretation of Other Agreements.

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

Section 10.12 Successors.

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

Section 10.13 Severability.

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

Section 10.14 Counterpart Originals.

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

                                       34

<PAGE>

Section 10.15 Table of Contents, Headings, etc.

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

                  [Remainder of page intentionally left blank.]

                                       35

<PAGE>

SIGNATURES

      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, as of the day and year first written above.

                                      AMERICAN CHURCH MORTGAGE COMPANY

                                      By:
                                          ----------------------------------
                                              Philip J. Myers, President

STATE OF MINNESOTA  )
                    ) ss.
COUNTY OF HENNEPIN  )

The foregoing  was  acknowledged  before me this ____ day of ________,  2008, by
Philip J. Myers,  in his  capacity as  President  of  American  Church  Mortgage
Company, a Minnesota corporation.

---------------------
Notary Public

                                      HERRING BANK, as Trustee

                                      By:
                                            --------------------------------
                                      Name: Catana Gray
                                      Title: Vice-President

STATE OF TEXAS      )
                    ) ss.
COUNTY OF POTTER    )

The foregoing  was  acknowledged  before me this ____ day of ________,  2008, by
Catana Gray, in her capacity as Vice-President of Herring Bank.

--------------------------
Notary Public

                          {SIGNATURE PAGE TO INDENTURE}

                                       36

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