Document:

Exhibit 10.2

AMENDMENT TO THE

CITI TRENDS, INC.

2005 LONG-TERM INCENTIVE PLAN

THIS AMENDMENT (this “Amendment”) to the Citi Trends,
Inc. 2005 Long-Term Incentive Plan, as amended (the “Plan”), is made this 15th day of
August, 2006.

The Board of Directors of Citi Trends, Inc. (the
“Company”) has determined that it is in the best interests of the Company and
its stockholders to amend the Plan to permit the exercise price of stock
options granted under the Plan to be satisfied through net share settlements.

Section 8(a) of the Plan is
hereby amended by deleting the text “or” at the end of subsection (ii) thereof,
deleting the text “.” at the end of subsection (iii) thereof and replacing it
with the text “, or” and adding a new subsection (iv) to Section 8(a) of the
Plan, which shall read as follows:

“(iv)        net share settlements.”

Except as expressly amended hereby, the terms of the
Plan, as previously amended, shall be and remain unchanged and the Plan as
amended hereby shall remain in full force and effect.

IN WITNESS
WHEREOF, the Company has caused this Amendment to be executed by its duly
authorized representative on the day and year first above written.

	
  

  	
   

  	
  CITI TRENDS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Thomas W. StoltzExhibit 4.1

EXECUTION COPY

FINANCIAL
SECURITY ASSURANCE HOLDINGS LTD.

and

THE BANK OF NEW
YORK,

as Trustee

INDENTURE

Dated as of November 22, 2006

Subordinated Debt Securities

 

TABLE OF CONTENTS

	
  

  	
  Page

  
	
  ARTICLE I

  
	
   

  
	
  Definitions and
  other Provisions of General Application

  
	
   

  
	
  SECTION 1.01   Definitions

  	
  1

  
	
  SECTION 1.02   Compliance Certificates and Opinions

  	
  8

  
	
  SECTION 1.03   Form of Documents Delivered to Trustee

  	
  9

  
	
  SECTION 1.04   Acts of Holders

  	
  10

  
	
  SECTION 1.05   Notices, Etc., to Trustee and Company

  	
  11

  
	
  SECTION 1.06   Notice to Holders; Waiver

  	
  11

  
	
  SECTION 1.07   Conflict with Trust Indenture Act

  	
  11

  
	
  SECTION 1.08   Effect of Headings and Table of Contents

  	
  12

  
	
  SECTION 1.09   Successors and Assigns

  	
  12

  
	
  SECTION 1.10   Separability Clause

  	
  12

  
	
  SECTION 1.11   Benefits of Indenture

  	
  12

  
	
  SECTION 1.12   Governing Law

  	
  12

  
	
  SECTION 1.13   Legal Holidays

  	
  12

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  
	
  Security Forms

  
	
   

  
	
  SECTION 2.01   Forms Generally

  	
  12

  
	
  SECTION 2.02   Form of Trustee’s Certificate of
  Authentication

  	
  13

  
	
  SECTION 2.03   Securities Issuable in the Form of a Global
  Security

  	
  13

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  
	
  The Securities

  
	
   

  
	
  SECTION 3.01   Amount Unlimited; Issuable in Series

  	
  16

  
	
  SECTION 3.02   Denominations

  	
  18

  
	
  SECTION 3.03   Execution, Authentication, Delivery and
  Dating

  	
  18

  
	
  SECTION 3.04   Temporary Securities

  	
  20

  
	
  SECTION 3.05   Registration, Registration of Transfer and
  Exchange

  	
  20

  
	
  SECTION 3.06   Mutilated, Destroyed, Lost and Stolen
  Securities

  	
  21

  
	
  SECTION 3.07   Payment of Interest; Interest Rights
  Preserved

  	
  22

  
	
  SECTION 3.08   Persons Deemed Owners

  	
  23

  
	
  SECTION 3.09   Cancellation

  	
  23

  
	
  SECTION 3.10   Computation of Interest

  	
  23

  
	
  SECTION 3.11   CUSIP and ISIN Numbers

  	
  23

  

 i
 

 

 

	
  ARTICLE IV

  
	
   

  
	
  Satisfaction and
  Discharge

  
	
   

  
	
  SECTION 4.01   Satisfaction and Discharge of Indenture

  	
  24

  
	
  SECTION 4.02   Application of Trust Funds; Indemnification

  	
  25

  
	
  SECTION 4.03   Legal Defeasance and Discharge of Indenture

  	
  26

  
	
  SECTION 4.04   Defeasance of Certain Obligations

  	
  28

  
	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  Remedies

  
	
   

  
	
  SECTION 5.01   Events of Default

  	
  29

  
	
  SECTION 5.02   Acceleration of Maturity: Rescission and
  Annulment

  	
  30

  
	
  SECTION 5.03   Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
  31

  
	
  SECTION 5.04   Trustee May File Proofs of Claim

  	
  32

  
	
  SECTION 5.05   Trustee May Enforce Claims Without
  Possession of Securities

  	
  33

  
	
  SECTION 5.06   Application of Money Collected

  	
  33

  
	
  SECTION 5.07   Limitation on Suits

  	
  34

  
	
  SECTION 5.08   Unconditional Right of Holders to Receive
  Principal, Premium and Interest

  	
  34

  
	
  SECTION 5.09   Restoration of Rights and Remedies

  	
  34

  
	
  SECTION 5.10   Rights and Remedies Cumulative

  	
  35

  
	
  SECTION 5.11   Delay or Omission Not Waiver

  	
  35

  
	
  SECTION 5.12   Control by Holders

  	
  35

  
	
  SECTION 5.13   Waiver of Past Defaults

  	
  35

  
	
  SECTION 5.14   Undertaking for Costs

  	
  36

  
	
  SECTION 5.15   Waiver of Stay or Extension Laws

  	
  36

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  
	
  The Trustee

  
	
   

  
	
  SECTION 6.01   Certain Duties and Responsibilities

  	
  36

  
	
  SECTION 6.02   Notice of Defaults

  	
  38

  
	
  SECTION 6.03   Certain Rights of Trustee

  	
  38

  
	
  SECTION 6.04   Not Responsible for Recitals or Issuance of
  Securities

  	
  40

  
	
  SECTION 6.05   May Hold Securities

  	
  41

  
	
  SECTION 6.06   Money Held in Trust

  	
  41

  
	
  SECTION 6.07   Compensation and Reimbursement

  	
  41

  
	
  SECTION 6.08   Disqualification; Conflicting Interests

  	
  42

  
	
  SECTION 6.09   Corporate Trustee Required; Eligibility

  	
  42

  
	
  SECTION 6.10   Resignation and Removal; Appointment of
  Successor

  	
  42

  
	
  SECTION 6.11   Acceptance of Appointment by Successor

  	
  44

  
	
  SECTION 6.12   Merger, Conversion, Consolidation or
  Succession to Business

  	
  45

  
	
  SECTION 6.13   Preferential Collection of Claims Against
  Company

  	
  45

  

 ii
 

 

 

	
  ARTICLE VII

  
	
   

  
	
  Holders’ Lists
  and Reports by Trustee and Company

  
	
   

  
	
  SECTION 7.01   Company to Furnish Trustee Names and Addresses
  of Holders

  	
  45

  
	
  SECTION 7.02   Preservation of Information; Communications
  to Holders

  	
  46

  
	
  SECTION 7.03   Reports by Trustee

  	
  48

  
	
  SECTION 7.04   Reports by Company

  	
  48

  
	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  
	
  Successor
  Corporation

  
	
   

  
	
  SECTION 8.01   When Company May Merge or Transfer Assets

  	
  49

  
	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  
	
  Amendments and
  Supplemental Indentures

  
	
   

  
	
  SECTION 9.01   Amendments or Supplemental Indentures
  without Consent of Holders

  	
  49

  
	
  SECTION 9.02   Amendments or Supplemental Indentures with
  Consent of Holders

  	
  51

  
	
  SECTION 9.03   Execution of Supplemental Indentures

  	
  52

  
	
  SECTION 9.04   Effect of Supplemental Indentures

  	
  52

  
	
  SECTION 9.05   Conformity with Trust Indenture Act

  	
  52

  
	
  SECTION 9.06   Reference in Securities to Supplemental
  Indentures

  	
  52

  
	
   

  	
   

  
	
  ARTICLE X

  
	
   

  
	
  Covenants

  
	
   

  
	
  SECTION 10.01   Payment of Principal, Premium and Interest

  	
  53

  
	
  SECTION 10.02   Maintenance of Office or Agency

  	
  53

  
	
  SECTION 10.03   Money for Securities; Payments to Be Held
  in Trust

  	
  53

  
	
  SECTION 10.04   Corporate Existence

  	
  55

  
	
  SECTION 10.05   Maintenance of Properties

  	
  55

  
	
  SECTION 10.06   Statement by Officers as to Default

  	
  55

  
	
  SECTION 10.07 
   Waiver of Certain Covenants

  	
  55

  
	
   

  	
   

  
	
  ARTICLE XI

  
	
   

  
	
  Redemption of
  Securities

  
	
   

  
	
  SECTION 11.01   Applicability of Article

  	
  56

  
	
  SECTION 11.02   Election to Redeem; Notice to Trustee

  	
  56

  
	
  SECTION 11.03   Selection by Trustee of Securities to Be
  Redeemed

  	
  56

  
	
  SECTION 11.04   Notice of Redemption

  	
  57

  
	
  SECTION 11.05   Deposit of Redemption Price

  	
  57

  
	
  SECTION 11.06   Securities Payable on Redemption Date

  	
  58

  

 iii
 

 

 

	
  SECTION 11.07 
   Securities Redeemed in Part

  	
  58

  
	
   

  	
   

  
	
  ARTICLE XII

  
	
   

  
	
  Sinking Funds

  
	
   

  
	
  SECTION 12.01   Applicability of Article

  	
  59

  
	
  SECTION 12.02   Satisfaction of Sinking Fund Payments with
  Securities

  	
  59

  
	
  SECTION 12.03   Redemption of Securities for Sinking Fund

  	
  59

  
	
   

  	
   

  
	
  ARTICLE XIII

  
	
   

  
	
  Subordination

  
	
   

  
	
  SECTION 13.01 
   Agreement to Subordinate

  	
  60

  
	
  SECTION 13.02 
   Default on Senior Indebtedness

  	
  61

  
	
  SECTION 13.03 
   Liquidation; Dissolution;
  Bankruptcy

  	
  62

  
	
  SECTION 13.04 
   Subrogation

  	
  63

  
	
  SECTION 13.05 
   Trustee to Effectuate
  Subordination

  	
  64

  
	
  SECTION 13.06 
   Notice by the Company

  	
  64

  
	
  SECTION 13.07   Rights of the Trustee; Holders of Senior
  Indebtedness

  	
  65

  
	
  SECTION 13.08   Subordination May Not Be Impaired

  	
  65

  
	
  SECTION 13.09   Article Applicable to Paying Agents

  	
  66

  
	
  SECTION 13.10   Defeasance of This Article

  	
  66

  
	
  SECTION 13.11 
   Subordination Language to Be
  Included in Securities

  	
  66

  

 

 iv

 

INDENTURE, dated as of November 22, 2006, between FINANCIAL
SECURITY ASSURANCE HOLDINGS LTD., a New York corporation (herein called the “Company”),
having its principal office at 31 West 52nd Street, New York, NY 10019, and THE
BANK OF NEW YORK, a New York banking corporation, as trustee hereunder (herein
called the “Trustee”).

RECITALS

WHEREAS, the Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance from time to time of
its unsecured debentures, notes or other evidences of indebtedness (herein
called the “Securities”), to be issued in one or more series as in this
Indenture provided; and

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE I

Definitions and
other Provisions of
General Application

SECTION 1.01 
Definitions.  For all
purposes of this Indenture and the Securities authenticated and delivered under
this Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

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

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

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

(d) the words “herein” “hereof”
and “hereunder” and other words of similar import refer to this Indenture or
the Securities, as applicable, as a whole and not to any particular article,
section or other subdivision; and

 

(e) all references used
herein to the male gender shall include the female gender.

“Act”, when used with respect to any
Holder, has the meaning specified in Section 1.04.

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

“Applicants” has the meaning specified in Section 7.02.

“Board of Directors” means either the board of directors of the
Company or any duly authorized committee of that board duly authorized to act
hereunder.

“Board Resolution” means a copy of a resolution, certified by
the secretary or an assistant secretary of the Company to have been duly
adopted by the Board of Directors and to be in full force and effect on the
date of such certification, delivered to the Trustee.

“Business Day”
means, with respect to any Security, any day, other than a Saturday, Sunday, or
a day on which banking institutions in the City of New York are authorized or
required by law, regulation or executive order to remained closed.

“Capital Stock” for any entity means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in
(however designated) shares issued by that entity.

“Certificated Securities” means Securities that are in registered definitive form.

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

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

 2
 

 

“Company Request”
or “Company Order” means
a written request or order signed in the name of the Company by its chairman of
the Board of Directors, a co-chief executive officer, the vice chairman of the Board of Directors,
its president or a vice president, and by its treasurer, an assistant
treasurer, its secretary or an assistant secretary, and delivered to the
Trustee.

“Corporate Trust Office”
means the office of the Trustee at which at any particular time the trust
created by this Indenture
shall be administered, which office, at the time of the execution of this
Indenture, is located, c/o The Bank of New York, Corporate Trust
Administration, at 101 Barclay Street, Floor 8W, New York, NY 10286.

“Defaulted Interest” has the meaning specified in Section 3.07.

“Depositary” means, unless otherwise specified by the
Company pursuant to either Section 2.03 or 3.01, with respect to Securities of any series issuable or
issued as a Global Security, The Depository Trust Company, New York, New York,
or any successor thereto registered under the Exchange Act, as amended, or
other applicable statute or regulation.

“Designated Senior Indebtedness” means any Senior Indebtedness of the Company permitted to be incurred under this Indenture the principal amount of which is $20,000,000 or more at
the time of the designation of such Senior Indebtedness as “Designated Senior
Indebtedness” by the Company in a written instrument delivered to the Trustee.

“Event of Default”
has the meaning specified in Section 5.01.

“Exchange Act”  means the United States Securities Exchange Act of
1934, as amended, and rules and regulations promulgated by the Commission
thereunder.

“Global Security”
means a Security issued to
evidence all or a part of any series of Securities which is executed by the Company and authenticated and
delivered by the Trustee to the applicable Depositary or pursuant to the
applicable Depositary’s instruction, all in accordance with this Indenture and
pursuant to a Company Order, which shall be registered in the name of the
applicable Depositary or its nominee.

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

“Holder Action” has the meaning specified in Section 7.02(d).

“Indenture”
means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more amendments or indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and shall include the terms
of particular series of Securities established as contemplated by Section 3.01.

 3
 

 

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

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

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

“Notice of Default”
has the meaning specified in Section 5.01(4).

“Officers’ Certificate”
means a certificate signed by the chairman of the Board of Directors, the
vice-chairman of the Board of Directors, a co-chief executive officer, the
president or a vice president, and by the treasurer, an assistant
treasurer, the secretary or an assistant secretary, of the Company, and
delivered to the Trustee.

“Opinion of Counsel”
means written opinion of counsel, who may be counsel for the Company and who
shall be acceptable to the Trustee.

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

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

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

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

(iii)
Securities which have been paid pursuant to Section 3.06 or in exchange for or
in lieu of which other Securities have been authenticated and delivered
pursuant to this Indenture, other than any such Securities in respect of which
there shall have been presented to the Trustee proof satisfactory to it that

 4
 

 

such
Securities are held by a bona fide purchaser in whose hands such Securities are
valid obligations of the Company;

provided,
however, that in
determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor. In case of a dispute as to
such right, any decision by the Trustee shall be full protection to the
Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee
promptly an Officers’ Certificate listing and identifying all Securities, if
any, known by the Company to be owned or held by or for the account of any of
the above-described Persons; and, subject to Section 6.01, the Trustee shall be
entitled to accept such Officers’ Certificate as conclusive evidence of the
facts therein set forth and of the fact that all Securities not listed therein
are Outstanding for the purposes of any such determination.

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

“Payment Blockage Notice” has the meaning specified in Section
13.02(b).

“Payment Blockage Period” has the meaning specified in Section
13.02(b).

“Permitted Junior Securities” means:

(1) the
Company’s Capital Stock; or

(2) debt
securities issued pursuant to a confirmed plan of reorganization that are
subordinated in right of payment to all Senior Indebtedness and any debt
securities issued in exchange for Senior Indebtedness to substantially the same
extent as, or to a greater extent than, the Securities are subordinated to the
Senior Indebtedness under this Indenture.

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

 5
 

 

“Place of Payment”, when used with respect to the Securities of
any series, means the place or places where the principal of (and premium, if
any) and interest on the Securities of that series are payable as specified as
contemplated by Section 3.01.

“Predecessor Security” of any particular Security means every
previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.06 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

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

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

“Regular Record Date”
for the interest payable on any Interest Payment Date on the Securities of any
series means the date specified for that purpose as contemplated by Section
3.01.

“Responsible Officer”, when used with respect
to the Trustee, means the officer of the Trustee assigned by the Trustee who
shall have direct responsibility for the administration of this Indenture, and
for the purposes of the reference to “Responsible Officers of the Trustee”
contained in Section 6.02 shall also include any other officer of the Trustee
to whom any matter is referred because of such officer’s knowledge of and
familiarity with the particular subject.

“Securities” has
the meaning stated in the
first recital of this Indenture and more particularly means any securities
authenticated and delivered under this Indenture.

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

“Senior Indebtedness”, unless otherwise specified in one or more
indentures supplemental hereto or approved pursuant to a Board Resolution in
accordance with Section 3.01, means, with respect to the Company:

(i) the
principal (including redemption payments), premium, if any, interest and other
payment obligations in respect of (A) indebtedness of the Company for money
borrowed and (B) indebtedness evidenced by securities, debentures, bonds, notes
or other similar instruments issued by the Company, including any such
securities issued under any deed, indenture or other instrument to which the
Company is a party (including, for the avoidance of doubt, indentures pursuant
to which subordinated debentures have been or may be issued);

 6
 

 

(ii) all
capital lease obligations of the Company;

(iii) all
obligations of the Company issued or assumed as the deferred purchase price of
property, all conditional sale obligations of the Company, all hedging
agreements and agreements of a similar nature thereto and all agreements
relating to any such agreements, and all obligations of the Company under any
title retention agreement (but excluding trade accounts payable and accrued
liabilities arising in the ordinary course of business);

(iv) all
obligations of the Company for reimbursement on any letter of credit, banker’s
acceptance, security purchase facility or similar credit transaction;

(v) all
obligations of the type referred to in clauses (i) through (iv) above of other
Persons for the payment of which the Company is responsible or liable as
obligor, guarantor or otherwise;

(vi) all
obligations of the type referred to in clauses (i) through (v) above of other
Persons secured by any lien on any property or asset of the Company (whether or
not such obligation is assumed by the Company); and

(vii) any
deferrals, amendments, renewals, extensions, modifications and refundings of
all obligations of the type referred to in clauses (i) through (vi) above, in
each case whether or not contingent and whether outstanding at the date hereof
or thereafter incurred,

except, in each case, for the Securities and any such
other indebtedness or deferral, amendment, renewal, extension, modification or
refunding that contains express terms, or is issued under a deed, indenture or
other instrument that contains express terms, providing that it is subordinate
to or ranks pari passu with the Securities.

Such Senior Indebtedness
shall continue to be Senior Indebtedness and be entitled to the benefits of the
subordination provisions of this Indenture irrespective of any amendment, modification or waiver of any term of such Senior
Indebtedness and notwithstanding that no express written subordination agreement may have been entered into between the
holders of such Senior Indebtedness and the Trustee or any of the Holders.

“Special Record Date”
for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.07.

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

“Subsidiary” means, with respect to any Person:

 7
 

 

(1) any corporation
or company a majority of whose Capital Stock with voting power, under ordinary
circumstances, to elect directors is, at the date of determination, directly or
indirectly, owned by such Person (a “Subsidiary”), by one or more subsidiaries
of such Person or by such Person and one or more subsidiaries of such Person;

(2) any
partnership in which such Person or a subsidiary of such Person is, at the date
of determination, a general partner of such partnership; or

(3) any
partnership, limited liability company or other Person in which such Person, a
subsidiary of such Person or such Person and one or more subsidiaries of such
Person, directly or indirectly, at the date of determination, have (x) at least
a majority ownership interest or (y) the power to elect or appoint or direct
the election or appointment of the managing partner or member of such Person
or, if applicable, a majority of the directors or other governing body of such
Person.

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended, and in force at the date as of which this instrument was executed.

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

“U.S. Government Obligations” means securities which are (i) direct obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America the payment of which is unconditionally guaranteed as to the timely
payment of principal and interest as a full faith and credit obligation by the
United States of America, which, in either case, are not callable or redeemable
at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank or trust company which is a member of the Federal
Reserve System and having a combined capital and surplus of at least
$50,000,000 as custodian with respect to any such obligation evidenced by such
depository receipt or a specific payment of interest on or principal of any
such obligation held by such custodian for the account of the holder of a depository
receipt;  provided,  however, that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by the custodian
in respect of the obligation set forth in (i) or (ii) above or the specific
payment of interest on or principal of such obligation evidenced by such
depository receipt.

SECTION 1.02 
Compliance Certificates and Opinions.  Upon any application or request by the
Company to the Trustee to take any action under any provision of this
Indenture, the Company shall furnish to the Trustee an Officers’

 8
 

 

Certificate stating that all conditions precedent, if any, provided for
in this Indenture relating to the proposed action have been complied with and,
where appropriate as to matters of law, an Opinion of Counsel stating that in
the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

Every certificate with respect to compliance with a condition
or covenant provided for in this
Indenture (other than a certificate required by Section 10.06) shall include:

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

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

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

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

SECTION 1.03 
Form of Documents Delivered to Trustee.  In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the
opinion of, only one such Person, or that they be so certified or covered by
only one document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Persons as to other matters,
and any such Person may certify or give an opinion as to such matters in one or
several documents.

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

 9

 

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

SECTION 1.04  Acts of Holders.  (a) 
Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Holders may
be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Holders in person or by an agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.01) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.04.

(b)  The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may be proved in accordance with such reasonable rules and regulations as may
be prescribed by the Trustee or in any reasonable manner which the Trustee
deems sufficient.

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

(d)  If the Company shall solicit from the Holders
any request, demand, authorization, direction, notice, consent, waiver or other
Act, the Company may, at its option, by or pursuant to a Board Resolution, fix
in advance a record date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Company shall have no obligation to do so. Notwithstanding Trust
Indenture Act Section 3.16(c), such record date shall be the record date
specified in or pursuant to such Board Resolution, which shall be a date not
earlier than the date 30 days prior to the first solicitation of Holders generally
in connection therewith and not later than the date such solicitation is
completed. If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other Act may be given before or after
such record date, but only the Holders of record at the close of business on
such record date shall be deemed to be Holders for the purposes of determining
whether Holders of the requisite proportion of Outstanding Securities shall be
computed as of such record date;  provided, however, that no such
authorization, agreement or consent by such Holders on such record date shall
be deemed effective unless it shall become effective pursuant to the provisions
of this Indenture not later than eleven months after the record date.

(e)  Any request, demand, authorization,
direction, notice, consent, waiver or other Act of the Holder of any Security
shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered

 10
 

 

to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security.

SECTION 1.05  Notices, Etc., to Trustee and Company.  Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided
or permitted by this Indenture to be made upon, given or furnished to, or filed
with:

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

(2) the Company by the Trustee or by any
Holder shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
the Company addressed to it at the address of its principal office specified in
the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company, to the attention of the
General Counsel of the Company.

SECTION 1.06  Notice to Holders; Waiver.  Where this Indenture provides for notice to
Holders of any event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage
prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. In any case where
notice to Holders is given by mail, neither the failure to mail such notice,
nor any defect in any notice so mailed, to any particular Holder shall affect
the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.

If the Company mails a notice to Holders, it shall
mail a copy of such notice to the Trustee at the same time.

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

SECTION 1.07  Conflict with Trust Indenture Act.  If any provision hereof limits, qualifies or
conflicts with another provision which is required or deemed to be included in
this Indenture by any of the provisions of the Trust Indenture Act, such
required or deemed provision shall control.

 11
 

 

SECTION 1.08  Effect of Headings and Table of Contents.  The article and section headings herein and
the table of contents are for convenience only and shall not affect the
construction hereof.

SECTION 1.09  Successors and Assigns.  All covenants and agreements in this
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

SECTION 1.10  Separability Clause.  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 1.11  Benefits of Indenture.  Nothing in this Indenture or in the
Securities, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, the Holders and, to the extent
provided in Article 13 hereof, the holders of Senior Indebtedness any benefit
or any legal or equitable right, remedy or claim under this Indenture.

SECTION 1.12  Governing Law.  THIS INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

SECTION 1.13  Legal Holidays.  In any case where any Interest Payment Date,
Redemption Date or Stated Maturity of any Security shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities) payment of interest or principal (and premium,
if any) need not be made at such Place of Payment on such date, but may be made
on the next succeeding Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date or Redemption Date, or
at the Stated Maturity;  provided that no interest shall accrue on any
amount payable on or at such date for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be, to such
next succeeding Business Day.

ARTICLE II

Security Forms

SECTION 2.01  Forms Generally.  The Securities of each series shall be in
substantially the forms established in one or more indentures supplemental hereto
or approved from time to time by or pursuant to a Board Resolution in
accordance with Section 3.01, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture and any indenture supplemental hereto, 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 securities regulatory authority or as may, consistently
herewith, be determined by the officers executing such Securities, as evidenced
by their

 12
 

 

execution of the Securities. If the form of
Securities of any series is established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified
by the secretary or an assistant secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by
Section 3.03 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, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.

SECTION 2.02  Form of Trustee’s Certificate of
Authentication.  The Trustee’s
certificate of authentication required by this article shall be in
substantially the form set forth below.

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

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
   

  
	
   

  	
  Authorized Signatory”

  	
   

  

 

SECTION 2.03  Securities Issuable in the Form of a
Global Security.  (a)  If the Company shall establish pursuant to
Sections 2.01 and 3.01 that the Securities of a particular series are to be
issued in whole or in part in the form of one or more Global Securities, then
the Company shall execute and the Trustee shall, in accordance with Section
3.03 and the Company Order delivered to the Trustee thereunder, authenticate
and deliver, such Global Security or Securities, which:

(i) shall represent, and shall be denominated
in an amount equal to the aggregate principal amount of, the Outstanding
Securities of such series to be represented by such Global Security or
Securities;

(ii) shall be registered in the name of the
Depositary for such Global Security or Securities or its nominee;

(iii) shall be delivered by the Trustee to
the Depositary or its custodian or pursuant to the Depositary’s instruction;
and

(iv) shall bear a legend substantially to the
following effect:

“UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT
BE TRANSFERRED EXCEPT 

 13
 

 

AS A WHOLE (I) BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR (II) BY A NOMINEE OF THE DEPOSITARY OR THE DEPOSITARY TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

(b)  Notwithstanding any other provision of this
Section 2.03 or of Section 3.05, unless the terms of a Global Security
expressly permit such Global Security to be exchanged in whole or in part for
individual Securities, a Global Security may be transferred, in whole but not
in part and in the manner provided in Section 3.05, only to another nominee of
the Depositary for such Global Security, or to a successor Depositary for such
Global Security selected or approved by the Company or to a nominee of such
successor Depositary. None of the Company, the Trustee nor any agent of the
Company or the Trustee will have any responsibility or liability for any aspect
of the records relating to or payments made on account of beneficial ownership
interests of a Global Security or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

(c)  (i) If at any time the Depositary for a
Global Security notifies the Company that it is unwilling, unable or ineligible
to continue as Depositary for such Global Security or if at any time the
Depositary for the Securities for such series shall no longer be eligible or in
good standing under the Exchange Act or other applicable statute or regulation,
the Company shall appoint a successor Depositary with respect to such Global
Security. If a successor Depositary for such Global Security is not appointed
by the Company within 90 days after the Company receives such notice or becomes
aware of such ineligibility, the Company will execute a Company Order for the
authentication and delivery of Certificated Securities of such series in
exchange for such Global Security, and the Trustee, upon receipt of such
Company Order, will authenticate and deliver Certificated Securities of such series
of like tenor and terms in definitive form in an aggregate principal amount
equal to the principal amount of the Global Security in exchange for such
Global Security.

(ii) If an Event of Default shall have occurred and be continuing, the
Trustee, upon receipt of a Company Order for the authentication and delivery of
Certificated Securities of such series in exchange for such Global Security,
will 

 14
 

 

authenticate
and deliver Certificated Securities of such series of like tenor and terms in
definitive form in an aggregate principal amount equal to the principal amount
of the Global Security in exchange for such Global Security.

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

(iv) If specified by the Company pursuant to Section 3.01 with respect
to Securities issued or issuable in the form of a Global Security, the
Depositary for such Global Security may surrender such Global Security in
exchange in whole or in part for Certificated Securities of such series of like
tenor and terms in definitive form on such terms as are acceptable to the
Company and such Depositary. Thereupon the Company shall execute, and the
Trustee shall authenticate and deliver, without service charge, (1) to
each Person specified by such Depositary a new Certificated Security or
Securities of the same series of like tenor and terms and of any authorized
minimum denomination and any integral multiple thereof as requested by such
Person in an aggregate principal amount equal to and in exchange for such
Person’s beneficial interest in the Global Security; and (2) to such
Depositary a new Global Security of like tenor and terms and in a denomination
equal to the difference, if any, between the principal amount of the
surrendered Global Security and the aggregate principal amount of Certificated
Securities delivered to Holders thereof.

(v) In any exchange provided for in any of the preceding four
paragraphs, the Company will execute and the Trustee will authenticate and
deliver Certificated Securities in definitive registered form in authorized
minimum denominations of and any integral multiple thereof. Upon the exchange
of a Global Security for Certificated Securities, such Global Security shall be
cancelled by the Trustee.  Certificated
Securities issued in exchange for a Global Security pursuant to this Section
2.03 shall be registered in such names and in such authorized denominations as
the Depositary for such Global Security, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee. The
Trustee shall deliver such Certificated Securities to the Persons in whose
names such Certificated Securities are so registered.

 15
 

 

ARTICLE III

The Securities

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

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

(1) any limit upon the aggregate principal
amount of the Securities of the series which may be authenticated and delivered
under this Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 2.03, 3.04, 3.05, 3.06, 9.06 or
11.07);

(2) the issue price, expressed as a
percentage of the aggregate principal amount;

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

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

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

(6) the period or periods within which, the
price or prices or ratios at which and the terms and conditions upon which
Securities of the series may be redeemed, converted or exchanged, in whole or
in part;

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

(8) if other than the full principal amount,
the portion of the principal amount of Securities of the series which will be
payable upon declaration of acceleration or provable in bankruptcy;

 16
 

 

(9) any events of default not set forth in
this Indenture;

(10) the currency or currencies, including
composite currencies, in which payment of the principal of (and premium, if
any) and interest, if any, on such Securities shall be payable (if other than
the currency of the United States of America), which unless otherwise specified
shall be the currency of the United States of America as at the time of payment
is legal tender for payment of public or private debts;

(11) if the principal of (and premium, if
any) or interest, if any, on such Securities is to be payable, at the election
of the Company or any Holder thereof, in a coin or currency other than that in
which such Securities are stated to be payable, then the period or periods
within which, and the terms and conditions upon which, such election may be
made;

(12) whether interest will be payable in cash
or additional Securities at the Company’s or the Holders’ option and the terms
and conditions upon which the election may be made;

(13) if such Securities are to be denominated
in a currency or currencies, including composite currencies, other than the
currency of the United States of America, the equivalent price in the currency
of the United States of America for purposes of determining the voting rights
of Holders of such Securities as Outstanding Securities under this Indenture;

(14) if the amount of payments of principal
of (and premium, if any), or portions thereof, or interest, if any, on such
Securities may be determined with reference to an index, formula or other
method based on a coin or currency other than that in which such Securities are
stated to be payable, the manner in which such amounts shall be determined;

(15) any covenants or other material terms
relating to such Securities of such series, which covenants and terms shall not
be inconsistent with the provisions of this Indenture;

(16) whether the Securities of the series
shall be issued in whole or in part in the form of a Global Security or
Securities; the terms and conditions, if any, upon which such Global Security
or Securities may be exchanged in whole or in part for other individual
Securities; and the Depositary for such Global Security or Securities;

(17) if other than as set forth in this
Indenture, any terms with respect to subordination of such Securities,
including, without limitation, the definition of “Senior Indebtedness”;

(18) any listing of such Securities on any
securities exchange;

 17
 

 

(19) additional or alternative provisions, if
any, related to defeasance and discharge of such Securities;

(20) the applicability of any guarantees;

(21) if convertible into other securities
issued by the Company or another issuer, the terms on which such Securities are
convertible, including the initial conversion price, the conversion period, any
events requiring an adjustment of the applicable conversion price and any
requirements relating to the reservation of such securities for purposes of
conversion;

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

(23) each initial Place of Payment; and

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

All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to such Board Resolution and set forth in such Officers’
Certificate or in any such indenture supplemental hereto.

If any of the terms of the Securities of any series
are established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by the secretary or an
assistant secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officers’ Certificate setting forth the terms of the
Securities of any series.

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

SECTION 3.03  Execution, Authentication, Delivery and
Dating.  The Securities shall be
executed on behalf of the Company by its chairman of the Board of Directors,
the vice chairman of the Board of Directors, a co-chief executive officer, its
president or one of its vice presidents, and attested by its secretary or one
of its assistant secretaries. The signature of any of these officers on the
Securities may be manual or facsimile.

Securities bearing the manual or facsimile signatures
of individuals who were at any time the proper officers of the Company shall
bind the Company, notwithstanding that such individuals or any of them have
ceased to hold such offices 

 18
 

 

prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities of any
series executed by the Company to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions as permitted by
Sections 2.01 and 3.01, or by one or more indentures supplemental hereto as
provided by Section 9.01, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, if it so requests, and
(subject to Section 6.01) shall be fully protected in relying upon, an Opinion
of Counsel to the effect:

(a) that such form
has been established in conformity with the provisions of this Indenture;

(b) that such
terms have been established in conformity with the provisions of this
Indenture;

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

(d) that all laws
and requirements in respect of the execution and delivery by the Company of the
Securities have been complied with.

If such form or terms
have been so established, the Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will
affect the Trustee’s rights, duties, liabilities or immunities under the
Securities and this Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee.

Each Security
shall be dated the date of its authentication unless otherwise provided by the
terms established and contemplated by Section 3.01.

No Security shall
be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose unless there appears on such Security a certificate of
authentication substantially in the form provided for herein executed by the
Trustee by manual or facsimile signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture.

 19

 

SECTION 3.04 
Temporary Securities. 
Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

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

SECTION 3.05 
Registration, Registration of Transfer and Exchange.  The Company shall cause to be kept at one of
its offices or agencies maintained pursuant to Section 10.02 or at the
Corporate Trust Office of the Trustee a register (the register maintained in
such office or in any other office or agency of the Company in a Place of
Payment being herein sometimes referred to as the “Security Register”)
in which, subject to Section 2.03 and to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities and of
transfers of Securities. The Trustee initially is hereby appointed “Security
Registrar” for the purpose of registering Securities and transfers of
Securities as herein provided. The Company may act as Security Registrar and
may change or appoint a Security Registrar without prior notice to Holders or
to the Trustee. If and so long as the Trustee is not the Security Register, the
Trustee shall have the right to inspect the Security Register during normal
business hours.

Subject to Section 2.03, upon surrender for
registration or transfer of any Security of any series at the office or agency
in a Place of Payment for that series, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities of the same series, of
any authorized denominations and of a like aggregate principal amount and
tenor.

Subject to Section 2.03, at the option of the Holder,
Securities of any series may be exchanged for other Securities of the same
series, of any authorized denominations and of a like aggregate principal
amount and tenor, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the
Securities which the Holder making the exchange is entitled to receive.

 20
 

 

Subject to Section 2.03, all Securities issued upon
any registration or transfer or exchange of Securities shall be valid
obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.

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

No service charge shall be made for any registration
of transfer or exchange of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 2.03, 3.04, 9.06 or 11.07
not involving any transfer.

The Company shall not be required (i) to issue,
register the transfer of or exchange Securities of any series during a period
beginning at the opening of business 15 days before the day of the mailing of a
notice of redemption of Securities of that series selected for redemption
(under Section 11.03) and ending at the close of business on the day of such
mailing or (ii) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion of
any Security being redeemed in part.

SECTION 3.06  Mutilated, Destroyed, Lost and Stolen
Securities.  If there shall be
delivered to the Company and the Trustee (i)(A) any mutilated Security or (B)
evidence to their satisfaction of the destruction, loss or theft of any
Security and (ii) such security or indemnity as may be required by them to hold
each of them and any agent of either of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security has been acquired by a
bona fide purchaser, the Company shall execute and upon its request the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security or in exchange for such mutilated Security, a new Security of the same
series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

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

Upon the issuance
of any new Security under this Section 3.06, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.

Every new Security of any series issued pursuant to
this Section 3.06 in lieu of any destroyed, lost or stolen Security or in
exchange for such mutilated Security, 

 21
 

 

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

The provisions of this Section 3.06 are exclusive and
shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities.

SECTION 3.07 
Payment of Interest; Interest Rights Preserved.  Interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

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

(1) The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a special record date (a
“Special Record Date”) for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest which shall be not more than 15 days and not
less than 10 days prior to the date of the proposed payment and not less than
10 days after the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and,
in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder of
Securities of such series at his address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest 

 22
 

 

shall be paid
to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the
following clause (2).

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

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

SECTION 3.08 
Persons Deemed Owners. 
Subject to Section 2.03(c), the Company, the Trustee and any agent of
the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment
of principal of (and premium, if any) and (subject to Section 3.07) interest on
such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and none of the Company, the Trustee or any agent of the
Company or the Trustee shall be affected by notice to the contrary.

SECTION 3.09 
Cancellation.  All
Securities surrendered for payment, redemption, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be
promptly cancelled by it.  The Company
may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and all Securities so delivered shall be
promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this section, except
as expressly permitted by this Indenture. The Trustee shall destroy cancelled
Securities and deliver a certificate of such destruction to the Company.

SECTION 3.10 
Computation of Interest. 
Except as otherwise specified as contemplated by Section 3.01 for the
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of 12, 30-day months.

SECTION 3.11 
CUSIP and ISIN Numbers. 
The Company in issuing the Securities may use “CUSIP” and/or “ISIN” numbers
(if then generally in use), and the Trustee shall use CUSIP or ISIN numbers, as
the case may be, in notices of redemption or exchange as a convenience to
Holders and no representation shall be made as to the correctness of such
numbers either as printed on the Securities or as contained in any notice of
redemption, exchange or conversion. The Company will promptly notify, and in

 23
 

 

any event within 10 Business Days, the Trustee of any initial CUSIP
and/or ISIN numbers and of any changes in the CUSIP and/or ISIN numbers.

ARTICLE IV

Satisfaction and
Discharge

SECTION 4.01 
Satisfaction and Discharge of Indenture.  This Indenture shall upon Company Request
cease to be of further effect with respect to any series of Securities (except
as to (i) any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for, (ii) rights hereunder of Holders to
receive payments of principal of, and premium, if any, and interest on,
Securities, and other rights, duties and obligations of the Holders as
beneficiaries hereof with respect to the amounts, if any, so deposited with the
Trustee, (iii) remaining obligations of the Company to make mandatory sinking
fund payments and (iv) the rights, obligations and immunities of the Trustee
hereunder), and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to any series of Securities, when:

(1) either:

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

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

(i) have become
due and payable,

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

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

and the Company, in the
case of (i), (ii) or (iii) above, has deposited or caused to be deposited with
the Trustee as trust funds in trust

 24
 

 

(i) money in U.S. dollars (or if the Securities are
denominated in a currency other than U.S. dollars, an amount of the applicable
currency) in an amount sufficient, or

(ii) (a) U.S.
Government Obligations which through the payment of interest and principal in
respect thereof in accordance with their terms will provide not later than one
day before the due date of any payment referred to in this clause (B) of this
subparagraph money in an amount, or (b) a combination of such money and such
U.S. Government Obligations, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee,

to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal (and premium, if any) and interest to the date
of such deposit (in the case of Securities which have become due and payable)
or to the Stated Maturity or Redemption Date, as the case may be;

(2) if all
series of Securities are being discharged, the Company has paid or caused to be
paid all other sums payable hereunder by the Company; and

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

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company under Sections 3.05, 3.06, and 10.02,
the obligations of the Company to the Trustee under Section 6.07, and, if money
or U.S. Government Obligations shall have been deposited with the Trustee
pursuant to subclause (B) of clause (1) of this Section 4.01, the obligations
of the Trustee under Section 4.02 and the next to last paragraph of Section
10.03, shall survive.

SECTION 4.02 
Application of Trust Funds; Indemnification.  (a) 
Subject to the provisions of the next to last paragraph of Section
10.03, all money or U.S. Government Obligations deposited with the Trustee
pursuant to Section 4.01, 4.03 or 4.04 and all money received by the Trustee in
respect of U.S. Government Obligations deposited with the Trustee pursuant to
Section 4.01, 4.03 or 4.04 shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest for whose
payment such money has been deposited with or received by the Trustee or to
make mandatory sinking fund payments

 25
 

 

or analogous payments as contemplated by Section 4.03 or 4.04, but such
money need not be segregated from other funds except to the extent required by
law.

(b) 
The Company shall pay and shall indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against U.S. Government Obligations
deposited pursuant to Section 4.01, 4.03 or 4.04, or the interest and principal
received in respect of such obligations other than any payable by or on behalf
of Holders.

(c) 
The Trustee shall deliver or pay to the Company from time to time upon
Company Request any U.S. Government Obligations or money held by it as provided
in Section 4.01, 4.03 or 4.04 which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, is then in excess of the amount thereof which
then would have been required to be deposited for the purpose for which such
obligations or money was deposited or received.

SECTION 4.03 
Legal Defeasance and Discharge of Indenture.  The Company shall be deemed to have paid and
discharged the entire indebtedness on all the Outstanding Securities on the
first date that all of the conditions set forth in the proviso below are
satisfied, and the provisions of this Indenture, as it relates to such
Outstanding Securities, shall no longer be in effect (and the Trustee, at the
expense of the Company, shall at Company Request, execute proper instruments
acknowledging the same), except as to:

(a) the rights of Holders
of Securities to receive, from the trust funds described in subparagraph (1)
hereof, (i) payment of the principal of (and premium, if any) and each
installment of principal of (and premium, if any) or interest on the Securities
on the Stated Maturity of such principal or installment of principal or
interest and (ii) the benefit of any mandatory sinking fund payments applicable
to the Securities on the day on which such payments are due and payable in
accordance with the terms of this Indenture and the Securities;

(b) the Company’s
obligations with respect to such Securities under Sections 3.05, 3.06, 10.02
and 10.03; and

(c) the obligations of
the Company to the Trustee under Section 6.07, provided, however,
that the following conditions shall have been satisfied:

(1) the Company
has or caused to be irrevocably deposited (except as provided in Section 4.02)
with the Trustee as trust funds in trust, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of the Securities,

(i) money in U.S.
Dollars (or if the Securities are denominated in a currency other than U.S.
dollars, an amount of the applicable currency) in an amount sufficient, or

 26
 

 

(ii) (a) U.S.
Government Obligations which through the payment of interest and principal in
respect thereof in accordance with their terms will provide not later than one
day before the due date of any payment referred to in Section 4.01(A) or (B)
money in an amount or (b) a combination of such money and such U.S. Government
Obligations, sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification
thereof delivered to the Trustee,

to pay and discharge (A) the principal of (and
premium, if any) and each installment of principal of (and premium, if any) and
interest on the Outstanding Securities on the Stated Maturity of such principal
or installment of principal or interest or on the applicable Redemption Date
and (B) any mandatory sinking fund payments applicable to the Securities on the
day on which such payments are due and payable in accordance with the terms of
this Indenture and of the Securities;

(2) such
deposit shall not cause the Trustee with respect to the Securities to have a
conflicting interest for purposes of the Trust Indenture Act with respect to
the Securities;

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

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

(5) if the
deposit referred to in subparagraph (1) of this Section 4.03 is to be made on
or prior to one year from the Stated Maturity for payment of principal of the
Outstanding Securities, the Company has delivered to the Trustee an Opinion of
Counsel with no material qualifications or a favorable ruling of the United
States Internal Revenue Service, in either case to the effect that Holders of
the Securities will not recognize income, gain or loss for federal income tax
purposes as a result of such deposit, defeasance and discharge and will be
subject to federal income tax on the same amount and in the same manner and at
the same times, as would have been the case if such deposit, defeasance and
discharge had not occurred, and such Opinion of Counsel, in the case of
defeasance, must refer to and be based upon a letter ruling of the United States
Internal Revenue Service received by the Company, a Revenue Ruling published by
the United States Internal Revenue Service or a change in applicable federal
income tax law occurring after the date of this Indenture.

 27

 

SECTION 4.04 
Defeasance of Certain Obligations.  If this Section 4.04 is specified to be
applicable to Securities of any series, the Company may omit to comply with any
term, provision or condition set forth in the sections of this Indenture or
such Security with respect to the Securities of that series (“Covenant
Defeasance”) if:

(1) the
Company has deposited or caused to be irrevocably deposited with the Trustee as
trust funds in trust, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of the Securities of that series,

(i) money in U.S.
dollars (or if the Securities are denominated in a currency other than U.S.
dollars, an amount of the applicable currency) in an amount sufficient, or

(ii) (a) U.S.
Government Obligations which through the payment of interest and principal in
respect thereof in accordance with their terms will provide not later than one
day before the due date of any payment referred to in Section 4.01(A) or (B)
money in an amount, or (b) a combination of such money and such U.S. Government
Obligation, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee,

to pay and discharge (A)
the principal of (and premium, if any) and each installment of principal (and
premium, if any) and interest on the Outstanding Securities of that series on
the Stated Maturity of such principal or installment of principal or interest
and (B) any mandatory sinking fund payments or analogous payments applicable to
Securities of such series on the day on which such payments are due and payable
in accordance with the terms of the Indenture and of such Securities;

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

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

(4) if the
deposit referred to in subparagraph (1) of this Section 4.04 is to be made on
or prior to one year from the Stated Maturity for payment of principal of the
Outstanding Securities, the Company has delivered to the Trustee an Opinion of
Counsel with no material qualifications or a favorable ruling of the United
States Internal Revenue Service, in either case to the effect that Holders of
the Securities will not recognize income, gain or loss for federal income tax
purposes as a result of such deposit and defeasance of certain obligations and
will be subject to federal income tax on the same amount and in the same manner
and at the same times, as would have been the case if such deposit and
defeasance had 

 28
 

 

not occurred,
and such Opinion of Counsel, in the case of defeasance, must refer to and be
based upon a letter ruling of the United States Internal Revenue Service
received by the Company, a Revenue Ruling published by the United States
Internal Revenue Service or a change in applicable federal income tax law
occurring after the date of this Indenture; and

(5) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for
relating to the Covenant Defeasance contemplated by this Section 4.04 have been
complied with.

In the event the Company effects Covenant Defeasance
with respect to any Securities and such Securities are declared due and payable
because of the occurrence of any Event of Default, other than an Event of
Default with respect to any covenant as to which there has been Covenant
Defeasance, the U.S. Government Obligations on deposit with the Trustee will be
sufficient to pay amounts due on such Securities at the time of the Stated
Maturity but may not be sufficient to pay amounts due on such Securities at the
time of the acceleration resulting from such Event of Default.

ARTICLE V

Remedies

SECTION 5.01 
Events of Default.  “Event
of Default” (except as otherwise specified or contemplated by Section 3.01
for Securities of any series) wherever used herein with respect to Securities
of any series, means any one of the following events:

(1) default in
the payment of any interest upon any Security of that series when it becomes
due and payable, and continuance of such default for a period of 30 days;

(2) default in
the payment of the principal (or premium, if any, on) any Security of that
series at its Maturity;

(3) default in
the deposit of any sinking fund payment, when and as due by the terms of a
Security of that series;

(4) default in
the performance, or breach, of any material covenant or warranty of the Company
in this Indenture (other than a covenant or warranty a default in whose
performance or whose breach is elsewhere in this section specifically dealt
with or which has expressly been included in this Indenture solely for the
benefit of series of Securities other than that series) for a period of 60 days
after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities a written notice 

 29
 

 

specifying
such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default” hereunder;

(5) the entry
by a court having jurisdiction in the premises of (A) a decree or order for
relief in respect of the Company in an involuntary case or proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar law or (B) a
decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 60 consecutive days;

(6) the
commencement by the Company of a voluntary case or proceeding under any
applicable bankruptcy, insolvency, reorganization or other similar law or of
any other case or proceeding to be adjudicated a bankrupt or insolvent, or the
consent by it to the entry of a decree or order for relief in respect of the
Company in an involuntary case or proceeding under any applicable bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it of
a petition or answer or consent seeking reorganization or relief under any
applicable law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or similar official of the Company or of any
substantial part of its property, or the making by it of an assignment for the
benefit of creditors, or the admission by it in writing of its inability to pay
its debts generally as they become due and its willingness to have a case
commenced against it or to seek an order for relief under any applicable
bankruptcy, insolvency or other similar law or the taking of corporate action
by the Company in furtherance of any such action; or

(7) any other
Event of Default expressly provided with respect to Securities of that series.

SECTION 5.02 
Acceleration of Maturity: Rescission and Annulment.  If an Event of Default (other than an Event
of Default under Section 5.01(5) or (6)) with respect to Securities of any
series at the time Outstanding occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in aggregate principal
amount of the Outstanding Securities of that series may declare all unpaid
principal amount (or, if the Securities of that series are Original Issue
Discount Securities, such portion of the principal amount as may be specified
in the terms of that series) of and accrued interest on all of the Securities
of that series to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by Holders), and upon

 30
 

 

any such declaration such principal amount (or specified amount) shall
become immediately due and payable.

In the case of an Event of Default resulting under
Section 5.01(5) or (6), which occurs and is continuing with respect to
Securities of any series at the time Outstanding, then all unpaid principal of
and accrued interest on all such Outstanding Securities of that series shall
become immediately due and payable without any notice or other action on the
part of the Trustee or the Holders of any Securities of such series.

At any time after such a declaration of acceleration
with respect to Securities of any series has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as
hereinafter in this article provided, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of that series, by written
notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if

(1) the
Company has paid or deposited with the Trustee a sum sufficient to pay

(A) all overdue interest
on all Securities of that series,

(B) the principal of (and
premium, if any, on) any Securities of that series which have become due
otherwise than by such declaration of acceleration and interest thereon at the
rate or rates prescribed therefor in such Securities,

(C) to the extent that
payment of such interest is lawful, interest upon overdue interest at the rate
or rates prescribed therefor in such Securities, and

(D) all sums paid or
advanced by the Trustee and any predecessor Trustee hereunder and all sums due
the Trustee and any predecessor Trustee under Section 6.07; and

(2) all Events
of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due
solely by such declaration of acceleration, have been cured or waived as
provided in Section 5.13.

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

SECTION 5.03 
Collection of Indebtedness and Suits for Enforcement by Trustee.  The Company covenants that if:

 31
 

 

(1) default is
made in the payment of any interest on any Security when such interest becomes
due and payable and such default continues for a period of 60 days; or

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

the Company will, upon
demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for
principal (and premium, if any) and interest and, to the extent that payment of
such interest shall be legally enforceable, interest on any overdue principal
(and premium, if any) and on any overdue interest, at the rate or rates
prescribed therefore in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including all amounts due the Trustee and any predecessor Trustee under Section
6.07.

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

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

SECTION 5.04 
Trustee May File Proofs of Claim. 
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal, premium or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise:

(i) to file
and prove a claim for the whole amount of principal (and premium, if any) and
interest owing and unpaid in respect of the Securities and to file such other
papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable 

 32
 

 

compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and of the Holders allowed in such judicial proceeding; and

(ii) to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay to the Trustee any amount due
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07.

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 5.05 
Trustee May Enforce Claims Without Possession of Securities.  All rights of action and claims under this
Indenture or the Securities may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.

SECTION 5.06 
Application of Money Collected. 
Any money collected by the Trustee pursuant to this article or
distributable in respect of the Company’s obligations under this Indenture
after an Event of Default shall be applied in the following order, at the date
or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal (or premium, if any) or interest, upon presentation of the
Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

FIRST:  To the
payment of all amounts due the Trustee and each predecessor Trustee under
Section 6.07;

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

 33
 

 

THIRD:  To the
Company.

SECTION 5.07 
Limitation on Suits.  No
Holder of any Security of any series shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless

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

(2) the
Holders of not less than 25% in principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

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

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

(5) no
direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of
the Outstanding Securities of that series;

it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right
under this Indenture, except in the manner herein provided and for the equal
and ratable benefit of all such Holders.

SECTION 5.08 
Unconditional Right of Holders to Receive Principal, Premium and
Interest.  Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of
(and premium, if any) and (subject to Section 3.07) interest on such Security
on the Stated Maturity or Maturities expressed in such Security (or, in the
case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.

SECTION 5.09 
Restoration of Rights and Remedies.  If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company, the Trustee
and the

 34
 

 

Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and
the Holders shall continue as though no such proceeding had been instituted.

SECTION 5.10 
Rights and Remedies Cumulative. 
Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section 3.06, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

SECTION 5.11 
Delay or Omission Not Waiver. 
No delay or omission of the Trustee or of any Holder of any Securities
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
any acquiescence therein. Every right and remedy given by this article or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

SECTION 5.12 
Control by Holders.  The
Holders of a majority in principal amount of the Outstanding Securities of any
series (or if more than one series is affected thereby, of all series so
affected, voting as a single class) shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series,  provided, however, that

(1) such
direction shall not be in conflict with any rule of law or with this Indenture,
expose the Trustee to personal liability or be unduly prejudicial to Holders
not joining therein, and

(2) the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

Nothing in this Indenture shall impair the right of
the Trustee to take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

SECTION 5.13 
Waiver of Past Defaults. 
The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series affected thereby (voting as a single class) waive any
past default hereunder with respect to such series and its consequences, except
that the consent of the Holders of all of the Securities of such series
affected thereby is required to waive a default:

 35
 

 

(1) in the
payment of the principal of (or premium, if any) or interest on any Security of
such series; or

(2) in respect
of a covenant or provision hereof which under this article cannot be modified
or amended without the consent of the Holder of each Outstanding Security of
such series affected.

Upon any such waiver, such default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.

SECTION 5.14 
Undertaking for Costs.  All
parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.14 shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the Outstanding Securities of any series, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
(or premium, if any) or interest on any Securities on or after the Stated
Maturity or Maturities expressed in such Security (or, in the case of redemption,
on or after the Redemption Date).  This
Section 5.14 shall be in lieu of Section 3.15(e) of the Trust Indenture Act and
such Section 3.15(e) is hereby expressly excluded from this Indenture, as
permitted by the Trust Indenture Act.

SECTION 5.15 
Waiver of Stay or Extension Laws. 
The Company covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

ARTICLE VI

The Trustee

SECTION 6.01 
Certain Duties and Responsibilities. 
(a)  Except during the continuance
of an Event of Default with respect to the Securities of any series,

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

(2) in the
absence of gross negligence or bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case
of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform to
the requirements of this Indenture, but need not verify the contents thereof.

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

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

(1) this
Section 6.01(c) shall not be construed to limit the effect of
Section 6.01(a);

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

(3) the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a
majority in principal amount of the Outstanding Securities of any series,
determined as provided in Section 5.12, relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture
with respect to the Securities of such series.

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

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(e)  Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Section 6.01.

SECTION 6.02  Notice of Defaults.  Within 90 days after the occurrence of any
default hereunder with respect to the Securities of any series, the Trustee
shall transmit by mail to all Holders of Securities of such series, as their
names and addresses appear in the Security Register, notice of such default
hereunder known to a Responsible Officer of the Trustee, unless such default
shall have been cured or waived;  provided, however, that, except in the
case of a default in the payment of the principal of (or premium, if any) or interest
on any Security of such series or in the payment of any sinking fund
installment with respect to Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interest of the Holders of Securities of such series; and provided further, however, that
in the case of any default of the character specified in Section 5.01(4) with
respect to Securities of such series, no such notice to Holders shall be given
until at least 30 days after the occurrence thereof.  For the purpose of this Section 6.02, the
term “default” means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to Securities of such
series.

The Trustee shall not be required to take notice or be
deemed to have notice of any default hereunder unless the Trustee shall be
specifically notified in writing of such default by the Company or by the
owners of at least 25% in aggregate principal amount of Outstanding Securities
or a Responsible Officer of the Trustee shall otherwise have actual knowledge
of such default. In the absence of such notice delivered to the Trustee, the
Trustee may conclusively assume there is no default except as aforesaid.

SECTION 6.03  Certain Rights of Trustee.  Subject to the provisions of Section 6.01:

(a) the Trustee
may rely and shall be protected in acting or refraining from acting upon any
Board Resolution, resolution, Officers’ Certificate, certificate, statement,
instrument, Opinion of Counsel, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties, and the Trustee need not investigate
any fact or matter stated in the document;

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

(c) whenever in
the administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or 

 38
 

 

omitting any action
hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officers’
Certificate and any resolution of the Board of Directors shall be evidenced to
the Trustee by a copy thereof certified by the Secretary or Assistant Secretary
of the Company;

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

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

(f) the Trustee
shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry
or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney;

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

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

(i) the Trustee
shall not be required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it;

(j) in the event
the Trustee believes any ambiguity or uncertainty exists in any notice,
instruction, direction, request or other communication, paper or document
received by the Trustee pursuant to this Indenture, or in or under any specific
provision of this Indenture, the Trustee shall promptly notify the Company of
the details of such alleged ambiguity or uncertainty, and may, in its sole
discretion, refrain from taking any action, and the Trustee shall be fully

 39
 

 

protected and shall incur
no liability to any Person for refraining from taking such action, absent gross
negligence or willful misconduct, unless and until the Trustee receives written
instructions with respect to such matter signed by the Company or, in the case
of any such ambiguity or uncertainty in any such item submitted to it by any
Holder, signed by such Holder, that eliminate such ambiguity or uncertainty to
the reasonable satisfaction of the Trustee;

(k) the Trustee
shall not be responsible or liable for any failure or delay in the performance
of its obligations under this Indenture arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including to the
extent beyond the reasonable control of the Trustee, any acts of God;
earthquakes; fire; flood; terrorism; wars and other military disturbances;
sabotage; epidemics; riots; interruptions, loss or malfunctions of utilities,
computer (hardware or software) or communication services; accidents; labor
disputes; acts of civil or military authority and governmental action; provided
that the Trustee shall perform such obligations as soon as practicable after
any such circumstance ceases to exist;

(l) anything in
this Indenture notwithstanding, in no event shall the Trustee be liable for
special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including loss of profit), even if the Trustee has been advised as
to the likelihood of such loss or damage and regardless of the form of action;

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

(n) the rights,
privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, including as
Security Registrar and Paying Agent, and each agent, custodian and other Person
employed to act hereunder;

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

(p) the permissive
right of the Trustee to take or refrain from taking any actions enumerated in
this Indenture shall not be construed as a duty.

SECTION 6.04  Not Responsible for Recitals or Issuance
of Securities.  The recitals
contained herein and in the Securities or any other documents in connection 

 40
 

 

with the sale of the Securities, except the
Trustee’s certificates of authentication, shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee shall not be responsible for and makes no representations as to the
validity or sufficiency of this Indenture or of the Securities. The Trustee
shall not be accountable for the use or application by the Company of
Securities or the proceeds thereof and it shall not be responsible for the use
or application of any money received by any Paying Agent other than the
Trustee.

SECTION 6.05  May Hold Securities.  The Trustee, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to
Sections 6.08 and 6.12, may otherwise deal with, and collect obligations owed to
it by, the Company with the same rights it would have if it were not Trustee,
Paying Agent, Security Registrar or such other agent.

SECTION 6.06  Money Held in Trust.  Money held by the Trustee in trust hereunder
need not be segregated from other funds except to the extent required by law.
The Trustee shall be under no liability for interest on any money received by
it hereunder except as otherwise agreed with the Company.

SECTION 6.07  Compensation and Reimbursement.  The Company agrees:

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

(2) except as otherwise expressly provided
herein, to reimburse each of the Trustee and any predecessor Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or
made by it in accordance with any provision of this Indenture (including the
reasonable compensation and the expenses and disbursements of its agents and
counsel and the allocated costs and expenses of its internal counsel), except
any such expense, disbursement or advance as may be attributable to its own
gross negligence, bad faith or willful misconduct; and

(3) to indemnify each of the Trustee and any
predecessor Trustee for, and to hold it harmless against, any loss, liability
or expense, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder and the performance of its
duties hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability
or expense is due to its own gross negligence, bad faith or willful misconduct.

 41
 

 

To ensure the performance of the obligations of the
Company under this section, the Trustee shall have a senior claim to which the
Securities are hereby made subordinate upon all property and funds held or
collected by the Trustee as such, except property and funds held in trust for
the payment of principal of, premium, if any, or interest on particular Securities.  To the extent permitted by law, any
compensation or expense accruing to or incurred by the Trustee after a default
specified in or pursuant to Section 5.01 is intended to constitute an
expense of administration under any then applicable bankruptcy or insolvency
law.

The provisions of this Section 6.07 shall survive
the satisfaction and discharge of this Indenture or the earlier resignation or
removal of the Trustee and shall apply with equal force and effect to the
Trustee in each of its capacities hereunder, including as Security Registrar
and Paying Agent.

SECTION 6.08  Disqualification; Conflicting Interests.  The Trustee shall comply with the terms of
Section 3.10(b) of the Trust Indenture Act.

SECTION 6.09  Corporate Trustee Required; Eligibility.  There shall at all times be a Trustee
hereunder which shall be a corporation organized and doing business under the
laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to exercise corporate trust powers having
(or, in the case of the subsidiary of a bank holding company that guarantees
the obligations of the Trustee under this Indenture, such holding company’s
parent shall have) a combined capital and surplus of at least $50,000,000
subject to supervision or examination by federal or state authority. If such
corporation or holding company parent publishes reports of condition at least
annually, pursuant to law or the requirements of said supervising or examining
authority, then for the purposes of this section, the combined capital and
surplus of such corporation or holding company parent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 6.09, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article VI.

SECTION 6.10  Resignation and Removal; Appointment of
Successor.  (a)  No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 6.11.

(b)  The Trustee may resign at any time with
respect to the Securities of one or more series by giving written notice
thereof to the Company. If the instrument of acceptance by a successor Trustee
required by Section 6.11 shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series. If the acceptance of
appointment is substantially contemporaneous with the resignation, then the
notice called for by the first sentence of this Subsection 6.10(b) may be
combined with the instrument called for by Section 6.11.

 42
 

 

(c)  The Trustee may be removed at any time with
respect to the Securities of any series by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the
Trustee and to the Company.

(d)  If at any time:

(1) the Trustee shall fail to comply with
Section 6.08 after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Security for at least six months;

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

(3) the Trustee shall become incapable of
acting or shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board
Resolution may remove the Trustee with respect to all Securities, or (ii)
subject to Section 5.14, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

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

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

(g)  If a Trustee is removed with or without
cause, all fees and expenses (including the reasonable fees and expenses of
counsel and excluding any expense, disbursement or advance as may be
attributable to the Trustee’s own gross negligence, bad faith or willful
misconduct) of the Trustee incurred in the administration of the trust or in
performing of the duties hereunder shall be paid to the Trustee.

(h)  In no event shall any resigning or removed
Trustee be liable for the acts or omissions of any successor Trustee hereunder.

SECTION 6.11  Acceptance of Appointment by Successor.  (a)  In
case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

(b)  In case of the appointment hereunder of a
successor Trustee with respect to the Securities of one or more (but not all)
series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary
or desirable to transfer and confirm to, and to vest in, each successor Trustee
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be
vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart

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from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.

(c)  Upon request of any such successor Trustee,
the Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all such rights, powers and
trusts referred to in Section 6.11(a) or (b) of this section, as the case may
be.

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

SECTION 6.12  Merger, Conversion, Consolidation or
Succession to Business.  Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee (including the administration of this Indenture), shall be the
successor of the Trustee hereunder, provided such corporation shall be
otherwise qualified and eligible under this article, without the execution or
filing of any paper or any further act on the part of any of the parties
hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

SECTION 6.13  Preferential Collection of Claims Against
Company.  If and when the Trustee
shall be or become a creditor of the Company (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Company (or any
such other obligor). A trustee who has resigned or been removed shall be
subject to Section 3.11(a) of the Trust Indenture Act to the extent provided
therein.

ARTICLE VII

Holders’ Lists and Reports by Trustee and Company

SECTION 7.01  Company to Furnish Trustee Names and
Addresses of Holders.  The Company
will furnish or cause to be furnished to the Trustee with respect to the
Securities of each series:

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(a) semi-annually,
not more than 15 days after each Regular Record Date, or, in the case of any
series of Securities on which semi-annual interest is not payable, not more
than fifteen days after such semi-annual dates as may be specified by the Trustee,
a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders as of such Regular Record Date or such semi-annual
date, as the case may be; and

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

provided,
however, that so long as
the Trustee is the Security Registrar, no such list need be furnished.

SECTION 7.02  Preservation of Information;
Communications to Holders.  (a)  The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained
in the most recent list furnished to the Trustee as provided in Section 7.01
and the names and addresses of Holders received by the Trustee in its capacity
as Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 7.01 upon receipt of a new list so furnished.

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

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

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

If the Trustee shall elect not to afford such
Applicants access to such information, the Trustee shall, upon the written
request of such Applicants, mail to each Holder whose name and address appear
in the information preserved at the time by the Trustee in accordance with
Section 7.02(a) a copy of the form of proxy or other communication which is
specified in such request, with reasonable promptness after a tender to the
Trustee of the material to be mailed and of payment, or provision for the
payment, of the reasonable expenses of mailing, unless within five days after
such tender

 46
 

 

the Trustee shall mail to
such Applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion
of the Trustee, such mailing would be contrary to the best interest of the
Holders or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed,
shall enter an order refusing to sustain any of such objections or if, after
the entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections
so sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such
Applicants respecting their application.

(c)  Every Holder of Securities, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Holders in accordance with Section 7.02(b), regardless of
the source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a request
made under Section 7.02(b).

(d)  Subject to Sections 6.01 and 7.02(a), (b) and
(c), if the Company or any other Person (other than the Trustee) shall desire
to communicate with Holders of Securities to solicit or obtain from them any
proxy, consent, authorization, waiver, approval of a plan of reorganization,
arrangement or readjustment or other action (“Holder Action”), the
Trustee shall have no duty to participate in such communication or solicitation
or the processing of responses in any manner except (i) to furnish the rules
and regulations and to perform the functions referred to in Section 1.04 and
(ii) to receive (A) the instruments evidencing the Holder Action together with
(B) the Officers’ Certificate and Opinion of Counsel referred to below. The
Company hereby covenants that any and all communications and solicitations
distributed by it in connection with any Holder Action will comply in all
material respects with applicable law, including without limitation applicable
law concerning adequacy of disclosure. The Trustee shall have no responsibility
for the accuracy or completeness of any materials circulated to solicit any
Holder Action nor for any related communications nor for the compliance thereof
with applicable law. No Holder Action shall become effective until the Trustee
shall have received from the Company or other Person who solicited the Holder
Action (1) the instruments evidencing such Holder Action and (2) (x) (in the
case of Holder Action solicited by the Company or the representative of the
Company’s estate if the Company is the debtor in any bankruptcy or other
insolvency proceeding) an Officers’ Certificate and (y) (in all cases) an
Opinion of Counsel, each specifying the Holder Action taken and stating that
such Holder Action has been duly and validly taken in compliance with this
Indenture in all material respects. Such Officers’ Certificate, if any, shall
also certify that (after giving effect to such Holder Action) no Event of
Default or event or condition which, with notice or lapse of time or both,
would become an Event of Default has occurred and is continuing or has not been
waived.

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(e)  The Depositary may grant proxies and
otherwise authorize its participants which own the Global Securities to give or
take any Act which a Holder is entitled to take under this Indenture;  provided, however, that the Depositary has delivered a list of such
participants to the Trustee.

SECTION 7.03  Reports by Trustee.  (a) 
Within 60 days after June 1 of each year commencing with the first June
1 following the date of this Indenture, the Trustee shall transmit by mail to
all Holders, as their names and addresses appear in the Security Register, a
brief report dated as of such June 1, to the extent required by Section 3.13(a)
of the Trust Indenture Act.

(b)  The Trustee shall comply with Sections
3.13(b) and 3.13(c) of the Trust Indenture Act.

(c)  A copy of each such report shall, at the time
of such transmission to Holders, be filed by the Trustee with the Commission
and with the Company. The Company will notify the Trustee promptly, and in any
event within 10 Business Days, when any Securities are listed on any stock
exchange or any de-listing thereof.

SECTION 7.04  Reports by Company.  The Company shall:

(1) file with the Trustee, within 15 days
after the Company is required to file the same with the Commission, copies of
the annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may from time
to time by rules and regulations prescribe) which the Company may be required
to file with the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act; or, if the Company is not required to file information, documents
or reports pursuant to either of said sections, then it shall file with the
Trustee and the Commission, in accordance with rules and regulations prescribed
from time to time by the Commission, such of the supplementary and periodic
information, documents and reports which may be required pursuant to Section 13
of the Exchange Act in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in such
rules and regulations; and

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

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

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ARTICLE VIII

Successor Corporation

SECTION 8.01  When Company May Merge or Transfer Assets.  The Company shall not consolidate or merge
with or into any other Person or convey, transfer, sell or lease all or
substantially all of its properties and assets as an entirety to any other
Person or permit any Person to consolidate with or merge into the Company,
unless:

(1) either (a) the Company shall be the
surviving Person or (b) the Person (if other than the Company) formed by such
consolidation or into which the Company is merged or the Person which acquires
by conveyance, transfer, sale or lease of all or substantially all of the
properties and assets of the Company shall be organized and existing under the
laws of a the United States or any State thereof or the District of Columbia
and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, all
of the obligations of the Company under the Securities and this Indenture;

(2) immediately after giving effect to such
transaction, no Event of Default, and no event that, after notice or lapse of
time or both, would become an Event of Default, shall have occurred and be
continuing; and

(3) the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel stating that such
consolidation, merger, conveyance, transfer, sale or lease and, if a
supplemental indenture is required in connection with such transaction, such
supplemental indenture, comply with this Section 8.01 and that all conditions
precedent herein provided for relating to such transaction have been satisfied.

The successor Person formed by such consolidation or
into which the Company is merged or the successor Person to which such
conveyance, transfer, sale or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor had been named as the
Company herein; and thereafter, the Company shall be discharged from all
obligations and covenants under this Indenture and the Securities. Subject to
Section 9.03, the Company, the Trustee and the successor Person shall enter
into a supplemental indenture to evidence the succession and substitution of
such successor Person and such discharge and release of the Company.

ARTICLE IX

Amendments and Supplemental Indentures

SECTION 9.01  Amendments or Supplemental Indentures
without Consent of Holders.  The
Company, when authorized by a Board Resolution, and the 

 49
 

 

Trustee, at any time and from time to time,
may modify, amend or supplement this Indenture or the Securities without the
consent of any Holder:

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

(2) to make any modifications or amendments
that do not, in the good faith opinion of the Company, adversely affect the
interests of the Holders in any material respect;

(3) to provide for the assumption of the
Company’s obligations under this Indenture by a successor upon any merger,
consolidation or asset transfer as permitted by and in compliance with Article
VIII of this Indenture;

(4) to provide any security for or guarantees
of the Securities;

(5) to add Events of Default with respect to
the Securities;

(6) to add to the Company’s covenants for the
benefit of the Holders or to surrender any right or power conferred upon the
Company by this Indenture;

(7) to make any change necessary to comply
with the Trust Indenture Act, or any amendment thereto, or to comply with any
requirement of the Commission in connection with the qualification of this
Indenture under the Trust Indenture Act;  provided, however, that such modification or amendment does not, in
the good faith opinion of the Company’s Board of Directors, adversely affect
the interests of the Holders of the Securities in any material respect;

(8) to provide for uncertificated Securities
in addition to or in place of Certified Securities or to provide for bearer
Securities;

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

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

(11) to establish the form or terms of
Securities of any series as permitted by Section 2.01 and 3.01; or

(12) to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee with respect to the
Securities of one or more 

 50
 

 

series and to add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 6.11(b); or

(13) to conform this Indenture and the
Securities to the “Description of Notes” (or other comparable section) as set
forth in any prospectus, prospectus supplement or other offering document
relating to any issuance of the Securities.

SECTION 9.02  Amendments or Supplemental Indentures with
Consent of Holders.  With the written
consent of the Holders of not less than a majority in aggregate principal
amount of the Securities of such series affected by such modification,
amendment or supplement at the time Outstanding, the Company, when authorized
by a Board Resolution, and the Trustee, at any time and from time to time, may
modify, amend or supplement this Indenture or such series of Securities.
However, without the consent of each Holder of the Securities of such series
affected by such modification, amendment or supplement, an amendment to this
Indenture or the Securities may not:

(1) change the Stated Maturity of the
principal of, or any premium on, or any installment of interest with respect to
the Securities of such series;

(2) reduce the principal amount of, or the
rate of interest on, the Securities of such series;

(3) change the currency of payment of
principal of or interest on the Securities of such series;

(4) impair the right to institute suit for
the enforcement of any payment on or with respect to the Securities of such
series;

(5) reduce the above-stated percentage of
Holders of the Securities of any series necessary to modify or amend this
Indenture;

(6) modify the foregoing requirements or
reduce the percentage of Outstanding Securities of such series necessary to
waive any covenant or past default; or

(7) if the Securities of such series are
convertible, adversely affect the right to convert the Securities of such
series in accordance with the provisions of this Indenture.

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

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After an amendment or supplemental indenture under
this Section 9.02 becomes effective, the Company shall mail, or request that
the Trustee mail, to each Holder a notice briefly describing the amendment or
supplemental indenture.

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

SECTION 9.03  Execution of Supplemental Indentures.  The Trustee shall sign any supplemental
indenture authorized pursuant to this article if the amendment contained
therein does not adversely affect the rights, duties, liabilities or immunities
of the Trustee. If it does, the Trustee may, but need not, sign such
supplemental indenture. In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 6.01) shall be fully
protected in relying conclusively upon, an Officers’ Certificate and an Opinion
of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture.

SECTION 9.04  Effect of Supplemental Indentures.  Upon the execution of any supplemental
indenture under this article, this Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Indenture
for all purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.

SECTION 9.05  Conformity with Trust Indenture Act.  Every supplemental indenture executed pursuant
to this article shall conform to the requirements of the Trust Indenture Act as
then in effect.

SECTION 9.06  Reference in Securities to Supplemental
Indentures.  Securities of any series
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Company shall so determine, new Securities of
any series so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series.

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ARTICLE X

Covenants

SECTION 10.01  Payment of Principal, Premium and Interest.  The Company covenants and agrees for the
benefit of each series of Securities that it will duly and punctually pay the
principal of (and premium, if any) and interest on the Securities of that
series in accordance with the terms of the Securities and this Indenture. At
the option of the Company, payment of principal (and premium, if any) and
interest on the Securities may be made either by wire transfer or (subject to
collection) by check mailed to the address of the Person entitled thereto at
such address as shall appear in the Security Register.

SECTION 10.02  Maintenance of Office or Agency.  The Company will maintain in each Place of
Payment for any series of Securities an office or agency where Securities of
that series may be presented or surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served. The Company hereby
initially appoints the Trustee its office or agency for each of said purposes.
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, and the Company hereby appoints the Trustee as its agent to receive
all such presentations, surrenders, notices and demands.

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

SECTION 10.03  Money for Securities; Payments to Be Held
in Trust.  If the Company shall at
any time act as its own Paying Agent with respect to any series of Securities,
it will, on or before each due date of the principal of (and premium, if any)
or interest on any of the Securities of that series, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum sufficient to pay
the principal (and premium, if any) or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
will promptly notify the Trustee of its action or failure so to act.

Whenever the Company shall have one or more Paying
Agents for any series of Securities, it will, on or prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with a Paying Agent a sum 

 53
 

 

sufficient to pay the
principal (and premium, if any) or interest so becoming due, such sum to be
held in trust for the benefit of the Persons entitled to such principal, premium
or interest, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act.

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

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

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

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

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

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal of
(and premium, if any) or interest on any Security of any series and remaining
unclaimed for two years after such principal (and premium, if any) or interest
has become due and payable shall be paid to the Company on Company Request or
on election of the Trustee, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided,
however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be mailed or published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in the City, County and State of New
York, or both, 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
mailing or publication, any unclaimed balance of such money then remaining will
be repaid to the Company.

 54
 

 

The Company shall have no obligation to make payment
of principal of (or premium, if any) or interest on any Security in immediately
available funds, except that if the Company shall have received original
payment for Securities in immediately available funds it shall make available
immediately available funds for payment of the principal of such Securities.

SECTION 10.04  Corporate Existence.  Subject to Article VIII, the Company will do
or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, rights (charter and statutory) and franchises;
provided, however,
that the Company shall not be required to preserve any such right or franchise
if the Board of Directors or senior management of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders.

SECTION 10.05  Maintenance of Properties.  The Company will use its reasonable efforts
to cause all material properties used or useful in the conduct of its business
to be maintained and kept in good condition, repair and working order (subject
to wear and tear) and supplied with all necessary material equipment and will
use its reasonable efforts to cause to be made all necessary material repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times;
provided, however,
that nothing in this Section 10.05 shall prevent the Company from discontinuing
the operation or maintenance of any of such properties if such discontinuance
is, in the judgment of the Company, desirable in the conduct of its business
and not disadvantageous in any material respect to the Holders.

SECTION 10.06  Statement by Officers as to Default.  The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company ending after
the date hereof, a certificate of the principal executive officer, principal
financial officer or principal accounting officer of the Company stating
whether or not to the best knowledge of the signer thereof the Company is in
default in the performance and observance of any of the terms, provisions and
conditions of this Indenture, and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they
may have knowledge.

SECTION 10.07  Waiver of Certain Covenants.  In respect of any series of Securities, the
Company may omit in any particular instance to comply with any term, provision
or condition set forth in Section 10.06 if before or after the time for such
compliance the Holders of at least a majority in principal amount of the
Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and
the duties of the Trustee in respect of any such term, provision or condition
shall remain in full force and effect.

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ARTICLE XI

Redemption of Securities

SECTION 11.01  Applicability of Article.  Securities of any series which are redeemable
before their Stated Maturity shall be redeemable in accordance with their terms
and (except as otherwise specified as contemplated by Section 3.01 for
Securities of any series) in accordance with this Article XI. In addition,
unless expressly prohibited in an indenture supplement hereto or in authorizing
resolutions with respect to any series of Securities, the Company may purchase,
acquire or otherwise hold Securities.

SECTION 11.02  Election to Redeem; Notice to Trustee.  The election of the Company to redeem any
Securities shall be evidenced by a Board Resolution. In case of any redemption
at the election of the Company of less than all the Securities of any series,
the Company shall, at least 45 days prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee in writing of such Redemption Date, of the principal amount of
Securities of such series to be redeemed, and whether the Company requests that
the Trustee provide notice of redemption to each Holder of Securities pursuant
to Section 11.04, such notice to be accompanied by a written statement
signed by an authorized officer of the Company stating that no defaults in the
payment of interest or Events of Default with respect to the Securities of that
series have occurred (which have not been waived or cured). In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee an Officers’ Certificate
evidencing compliance with such restriction.

SECTION 11.03  Selection by Trustee of Securities to Be
Redeemed.  If less than all the
Securities of any series are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date
by the Trustee, from the Outstanding Securities of such series not previously
called for redemption, by lot or by such other method as the Trustee in its
sole discretion shall deem fair and appropriate and which may provide for the
selection or redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

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

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

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SECTION 11.04  Notice of Redemption.  Notice of redemption shall be given by first-class
mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to
the Redemption Date, to each Holder of Securities to be redeemed, at his
address appearing in the Security Register. Any notice which is mailed in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not such Holder receives the notice. Failure to give notice by mail,
or any defect in the notice or in the mailing of such notice to any such Holder
in respect of any Security, shall not affect the validity of the proceedings
for the redemption of any other Security.

All notices of redemption shall state:

(1) the Redemption Date;

(2) the manner of calculating the Redemption
Price and any accrued interest;

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

(4) that on the Redemption Date the
Redemption Price and any accrued interest will become due and payable upon each
such Security to be redeemed together with accrued interest thereon and, if
applicable, that interest thereon will cease to accrue on and after said date;

(5) the place or places where such Securities
are to be surrendered for payment of the Redemption Price and any accrued
interest;

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

(7) the CUSIP number and, if applicable, the
ISIN number, of the Securities being redeemed.

Notice of redemption of Securities to be redeemed at
the election of the Company shall be given by the Company or, at the Company’s
request, by the Trustee to each Holder in the name and at the expense of the
Company; provided that
the Company makes such request in writing at least 15 Business Days prior to
the date by which such notice of redemption must be given to Holders in
accordance with this Section 11.04.

SECTION 11.05  Deposit of Redemption Price.  On or prior to any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.03) an amount of money, in funds immediately available
on the due date, sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date. Promptly after the
calculation of the Redemption Price, the Company will give the Trustee and any
Paying Agent written notice thereof.

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SECTION 11.06  Securities Payable on Redemption Date.  Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified together with
accrued interest thereon, and from and after such date (unless the Company
shall default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to the
Redemption Date;  provided, however, that installments of interest whose Stated
Maturity is on the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.07.

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

The Trustee shall not redeem any Securities of any
series pursuant to this article (unless all Outstanding Securities of such
series are to be redeemed) or mail or give any notice of redemption of
Securities during the continuance of an Event of Default hereunder known to the
Trustee with respect to such series, except that, where the mailing of notice
of redemption of any Securities shall theretofore have been made, the Trustee
shall redeem or cause to be redeemed such Securities; provided, however, that it shall have
received from the Company a sum sufficient for such redemption. Except as
aforesaid, any moneys theretofore or thereafter received by the Trustee shall,
during the continuance of such Event of Default, be deemed to have been
collected under Article V and held for the payment of all such Securities of
such series. In case such Event of Default shall have been waived as provided
in Section 5.13 or the default cured on or before the 60th day preceding the
Redemption Date, such moneys shall thereafter be applied in accordance with the
provisions of this article.

SECTION 11.07  Securities Redeemed in Part.  Any Security which is to be redeemed only in
part shall be surrendered at a Place of Payment therefor (with, if the Company
or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or his attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities of the same
series, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Security so surrendered.

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ARTICLE XII

Sinking Funds

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

The minimum amount of any
sinking fund payment provided for by the terms of Securities of any series is
herein referred to as a “mandatory sinking fund payment,” and any payment in
excess of such minimum amount provided for by the terms of Securities of any
series is herein referred to as an “optional sinking fund payment.” If provided
for by the terms of Securities of any series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 12.02. Each sinking
fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

SECTION 12.02 
Satisfaction of Sinking Fund Payments with Securities.  The Company (1) may deliver Outstanding Securities
of a series (other than any previously called for redemption) and (2) may apply
as credit Securities of a series which have been redeemed either at the
election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of such series required to
be made pursuant to the terms of such Securities as provided for by the terms
of such series;  provided, however, that such Securities have not been previously
so credited. Such Securities shall be received and credited for such purpose by
the Trustee at the Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.

SECTION 12.03 
Redemption of Securities for Sinking Fund.  Not less than 60 days prior to each sinking
fund payment date for any series of Securities, the Company (1) will deliver to
the Trustee an Officers’ Certificate (A) stating that no defaults in the
payment of interest or Events of Default with respect to Securities of that
series have occurred (which have not been waived or cured), (B) specifying the
amount of the next ensuing sinking fund payment for that series pursuant to the
terms of Securities of that series, (C) stating whether or not the Company
intends to exercise its right, if any, to make an optional sinking fund payment
with respect to such series on the next ensuing sinking fund payment date and,
if so, specifying the amount of such optional sinking fund payment and (D)
specifying the portion of such sinking fund payment, if any, which is to be
satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting Securities of that series pursuant to
Section 12.02 and (2) will also deliver to the Trustee any Securities to be so
delivered. Not less than 30 days before each such sinking fund payment date the
Trustee shall select the Securities of such series to be redeemed upon such
sinking fund payment date in the manner specified in Section 11.03 and cause
notice of the redemption thereof to be given

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in the name of and at the expense of the Company in the manner provided
in Section 11.04. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
11.05, 11.06 and 11.07. Failure of the Company, on or before any such 60th day,
to deliver such Officers’ Certificate and Securities specified in this section,
if any, shall not constitute a default but shall constitute, on and as of such
date, the irrevocable election of the Company (a) that the mandatory sinking
fund payment for such series due on the next succeeding sinking fund payment
date shall be paid entirely in cash without the option to deliver or credit
Securities of such series in respect thereof and (b) that the Company will make
no optional sinking fund payment with respect to Securities of such series as
provided in this article.

The Trustee shall not redeem or cause to be redeemed
any Security of a series with sinking fund moneys or mail any notice of
redemption of Securities of such series by operation of the sinking fund during
the continuance of a default in payment of interest on such Securities or of
any Event of Default with respect to such series except that, where the mailing
of notice of redemption of any Securities shall theretofore have been made, the
Trustee shall redeem or cause to be redeemed such Securities, provided that it shall have
received from the Company a sum sufficient for such redemption. Except as
aforesaid, any moneys in the sinking fund for such series at the time when any
such default or Event of Default shall occur, and any moneys thereafter paid
into the sinking fund, shall, during the continuance of such default or Event
of Default, be deemed to have been collected under Article V and held for the
payment of all such Securities of such series. In case such Event of Default
shall have been waived as provided in Section 5.13 or the default cured on or
before the 60th day preceding the sinking fund payment date, such moneys shall
thereafter be applied on the next succeeding sinking fund payment date in
accordance with this section to the redemption of such Securities.

ARTICLE XIII

Subordination

SECTION 13.01 
Agreement to Subordinate. 
(a)  The Company covenants and
agrees, and each Holder of Securities issued hereunder by such Holder’s
acceptance thereof likewise covenants and agrees, that (except as otherwise
specified as contemplated by Section 3.01 for Securities of any series) all
Securities shall be issued subject to the provisions of this Article XIII; and
each Holder of a Security, whether upon original issue or upon transfer or
assignment thereof, accepts and agrees to be bound by such provisions.

(b) 
The payment by the Company of the principal of, premium, if any, on and
interest on the Securities issued hereunder shall, to the extent and in the
manner hereinafter set forth, be subordinated and junior in right of payment to
the prior payment in full of all Senior Indebtedness of the Company, whether
outstanding at the date of this Indenture or thereafter incurred.

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(c)  No
provision of this article shall prevent the occurrence of any default or Event
of Default hereunder.

SECTION 13.02 
Default on Senior Indebtedness. 
(a)  No direct or indirect payment
by or on behalf of the Company of principal of, premium, if any, or interest on
the Securities (other than on Permitted Junior Securities), whether pursuant to
the terms of the Securities or upon acceleration, by way of repurchase,
redemption, defeasance or otherwise, will be made if, at the time of such payment,
there exists a default in the payment when due of all or any portion of the
obligations under or in respect of any Senior Indebtedness, whether at
maturity, on account of mandatory redemption or prepayment, acceleration or
otherwise, and such default shall not have been cured or waived or the benefits
of this Section 13.02(a) waived by or on behalf of the holders of Senior
Indebtedness.

(b)  In
addition, during the continuance of any non-payment default or non-payment
event of default with respect to any Designated Senior Indebtedness pursuant to
which the maturity thereof may be accelerated, and upon receipt by the Trustee
of written notice (a “Payment Blockage Notice”) from a holder or holders
of such Designated Senior Indebtedness or the trustee or agent acting on behalf
of such Designated Senior Indebtedness, then, unless and until such default or
event of default has been cured or waived or has ceased to exist or such
Designated Senior Indebtedness has been discharged or repaid in full in cash, or
the requisite holders of such Designated Senior Indebtedness have otherwise
agreed in writing, (a) no payment of any kind or character with respect to any
principal of or interest on or distribution will be made by or on behalf of the
Company on account of or with respect to the Securities (other than in
Permitted Junior Securities) and (b) the Company may not acquire any Securities
for cash, property or otherwise, during a period (a “Payment Blockage Period”)
commencing on the date of receipt of such Payment Blockage Notice by the
Trustee and ending 179 days thereafter.

Notwithstanding anything herein to the contrary, (x)
in no event will a Payment Blockage Period extend beyond 179 days from the date
the Payment Blockage Notice in respect thereof was given. Not more than one
Payment Blockage Period may be commenced with respect to the Securities during
any period of 360 consecutive days. No default or event of default that existed
or was continuing on the date of commencement of any Payment Blockage Period
with respect to the Designated Senior Indebtedness initiating such Payment
Blockage Period may be, or be made, the basis for the commencement of any other
Payment Blockage Period by the holder or holders of such Designated Senior
Indebtedness or the trustee or agent acting on behalf of such Designated Senior
Indebtedness, whether or not within a period of 360 consecutive days, unless
such default or event of default has been cured or waived for a period of not
less than 90 consecutive days.

(c)  In
the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee when such payment is prohibited by the preceding paragraph of this
Section 13.02, such payment shall be held in trust for the benefit of, and
shall be paid 

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over or delivered to, the holders of Senior Indebtedness or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any instruments evidencing such Senior Indebtedness may have
been issued, as their respective interests may appear, as calculated by the
Company, to the extent necessary to pay such Senior Indebtedness in full, in
cash, after giving effect to any concurrent payment or distribution to or for
the benefit of the holders of such Senior Indebtedness, before any payment or
distribution is made to the Holders or to the Trustee.

SECTION 13.03 
Liquidation; Dissolution; Bankruptcy.  (a) 
Upon any distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to creditors upon any total or partial
dissolution, winding-up, liquidation or reorganization of the Company, whether
voluntary or involuntary, assignment for the benefit of creditors or
marshalling of the Company’s assets, or in bankruptcy, insolvency, receivership
or other similar proceedings, whether voluntary or involuntary, all principal,
premium, if any, and interest due or to become due to all Senior Indebtedness
of the Company shall first be paid in full in cash, or such payment duly
provided for to the satisfaction of the holders of the Senior Indebtedness,
before the Holders are entitled to receive or retain any payment; and upon any
such dissolution or winding-up or liquidation or reorganization, any payment by
the Company, or distribution of assets of the Company of any kind or character
whether in cash, property or securities, which the Holders or the Trustee would
be entitled to receive from the Company, except for the provisions of this
article, shall be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders or by the Trustee under this Indenture if received by them or
it, directly to the holders of Senior Indebtedness of the Company or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any instruments evidencing such Senior Indebtedness may have
been issued, as their respective interests may appear, as calculated by the
Company, to the extent necessary to pay such Senior Indebtedness in full in
cash, or such payment duly provided for to the satisfaction of the holders of
the Senior Indebtedness, after giving effect to any concurrent payment or
distribution to or for the benefit of the holders of such Senior Indebtedness,
before any payment or distribution is made to the Holders or to the Trustee.

(b)  In
the event that, notwithstanding Section 13.03(a), any payment or distribution
of assets of the Company of any kind or character, whether in cash, property or
securities, prohibited by Section 13.03(a), shall be received by the Trustee
before all Senior Indebtedness of the Company is paid in full, or provision is
made for such payment in money in accordance with its terms, such payment or
distribution shall be held in trust for the benefit of, and shall be paid over
or delivered to, the holders of such Senior Indebtedness or their respective
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing such Senior Indebtedness may have been issued,
as their respective interests may appear, as calculated by the Company, to the
extent necessary to pay such Senior Indebtedness in full, in cash, after giving
effect to any concurrent payment or distribution to or for the benefit of the
holders of such Senior Indebtedness, before any payment or distribution is made
to the Holders or to the Trustee.

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(c) 
For purposes of this Article XIII, the words “cash, property or
securities” shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other
corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this
article with respect to the Securities to the payment of all Senior
Indebtedness of the Company that may at the time be outstanding;  provided, however, that (i) such Senior Indebtedness is assumed by the
new corporation, if any, resulting from any such reorganization or readjustment,
and (ii) the rights of the holders of such Senior Indebtedness are not, without
the consent of such holders, altered by such reorganization or readjustment.
The consolidation of the Company with, or the merger of the Company into,
another corporation or the liquidation or dissolution of the Company following
the conveyance or transfer of its properties or assets substantially as an
entirety, to another corporation upon the terms and conditions provided for in
Article VIII of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section 13.03 if such
other corporation shall, as part of such consolidation, merger, conveyance or
transfer, comply with the conditions stated in Article VIII of this Indenture.
Nothing in Section 13.01, Section 13.02 or in this Section 13.03 shall
apply to claims of, or payments to, the Trustee under or pursuant to Section
6.07 of this Indenture.

(d)  If
the Trustee or any Holder of Securities does not file a proper claim or proof
of debt in the form required in any proceeding referred to above prior to 30
days before the expiration of the time to file such claim in such proceeding,
then the holder of any Senior Indebtedness is hereby authorized, and has the
right, to file an appropriate claim or claims for or on behalf of such Holder
of Securities.

SECTION 13.04 
Subrogation.  (a)  Subject to the payment in full of all Senior
Indebtedness of the Company then outstanding, the rights of the Holders shall
be subrogated to the rights of the holders of such Senior Indebtedness to
receive payments or distributions of cash, property or securities of the
Company applicable to such Senior Indebtedness until the principal of and
interest on the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of such Senior
Indebtedness of any cash, property or securities to which the Holders or the
Trustee would be entitled except for the provisions of this Article XIII, and
no payment pursuant to the provisions of this Article XIII to or for the
benefit of the holders of such Senior Indebtedness by Holders or the Trustee,
shall, as between the Company, its creditors other than holders of Senior
Indebtedness of the Company, and the Holders, be deemed to be a payment by the
Company to or on account of such Senior Indebtedness. It is understood that the
provisions of this Article XIII are and are intended solely for the purpose of
defining the relative rights of the Holders, on the one hand, and the holders
of such Senior Indebtedness, on the other hand.

(b) 
Nothing contained in this Article XIII or elsewhere in this Indenture or
in the Securities is intended to or shall impair, as between the Company, its
creditors other than the holders of Senior Indebtedness of the Company, and the
Holders, the obligation of the Company, which is absolute and unconditional, to
pay to the Holders the 

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principal of (premium, if any) 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 and creditors
of the Company other than the holders of Senior Indebtedness of the Company nor
shall anything herein or therein prevent the Trustee or any Holder of
Securities from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this
article of the holders of such Senior Indebtedness in respect of cash, property
or securities of the Company received upon the exercise of any such remedy.

(c) 
Upon any payment or distribution of assets of the Company referred to in
this Article XIII, the Trustee, subject to the provisions of Section 6.01 of
this Indenture, and the Holders shall be entitled to rely conclusively 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 receiver, trustee in bankruptcy, liquidation trustee,
agent or other Person making such payment or distribution, delivered to the
Trustee or the Holders, for the purpose of ascertaining the Persons entitled to
participate in such distribution, the holders of Senior Indebtedness and other
indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to this article.

SECTION 13.05 
Trustee to Effectuate Subordination.  Each Holder of Securities by such Holder’s
acceptance thereof authorizes and directs the Trustee on such Holder’s behalf
to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article XIII and appoints the Trustee such
Holder’s attorney-in-fact for any and all such purposes.

SECTION 13.06 
Notice by the Company. 
(a)  The Company shall give prompt
written notice to a Responsible Officer of the Trustee of any fact known to the
Company that would prohibit the making of any payment of monies to or by the
Trustee in respect of the Securities pursuant to the provisions of this Article
XIII. Notwithstanding the provisions of this Article XIII or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts that would prohibit the making of any payment of
monies to or by the Trustee in respect of the Securities pursuant to the
provisions of this Article XIII, unless and until a Responsible Officer of the
Trustee shall have received written notice thereof from the Company or a Holder
or holders of Senior Indebtedness or from any representative or trustee
therefor; and before the receipt of any such written notice, the Trustee,
subject to the provisions of Section 6.01 of this Indenture, shall be
entitled in all respects to assume that no such facts exist;  provided, however, that if the Trustee
shall not have received the notice provided for in this Section 13.06(a)
at least two Business Days prior to the date upon which by the terms hereof any
money may become payable for any purpose (including, without limitation, the
payment of the principal of, premium, if any, on or interest on any Security),
then, anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such money and to apply the same to
the purposes for which such money was received, and shall not be affected by

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any notice to the contrary that may be received by it within two
Business Days prior to such date.

(b) 
The Trustee, subject to the provisions of Section 6.01 of this
Indenture, shall be entitled to conclusively rely on the delivery to it of a
written notice by a Person representing himself to be a holder of Senior
Indebtedness of the Company (or a trustee or representative on behalf of such
holder), to establish that such notice has been given by a holder of such
Senior Indebtedness or a trustee or representative on behalf of any such holder
or holders. In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of
such Senior Indebtedness to participate in any payment or distribution pursuant
to this Article XIII, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of such Senior
Indebtedness held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this article and, if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

SECTION 13.07 
Rights of the Trustee; Holders of Senior Indebtedness.  (a) 
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article XIII in respect of any Senior Indebtedness at
any time held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall deprive the Trustee of any of
its rights as such holder.

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

SECTION 13.08 
Subordination May Not Be Impaired.  (a)  No
right of any present or future holder of any Senior Indebtedness of the Company
to enforce subordination provided in this Article XIII shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act, in good faith, by any such holder, or
by any noncompliance by the Company with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof that any such holder may
have or otherwise be charged with.

(b) 
Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness of the Company may, at any time and from
time to time, without the consent of or notice to the Trustee or the Holders,
without incurring responsibility to the Holders and without impairing or
releasing the subordination provided in this Article XIII or the obligations
hereunder of the Holders to the holders of

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such Senior Indebtedness, do any one or more of the following: (i)
change the manner, place or terms of payment or extend the time of payment of,
or renew or alter, such Senior Indebtedness, or otherwise amend or supplement
in any manner such Senior Indebtedness or any instrument evidencing the same or
any agreement under which such Senior Indebtedness is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing such Senior Indebtedness; (iii) release any Person liable in
any manner for the collection of such Senior Indebtedness; and (iv) exercise or
refrain from exercising or waive any rights against the Company and any other
Person.

(c) 
Each present and future holder of Senior Indebtedness shall be entitled
to the benefit of the provisions of this article notwithstanding that such
holder is not a party to this Indenture.

SECTION 13.09 
Article Applicable to Paying Agents.  In case at any time any Paying Agent other
than the Trustee shall have been appointed by the Company and be then acting
hereunder, the term “Trustee” as used in this Article XIII shall in such case
(unless the context otherwise requires) be construed as extending to and
including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article XIII in addition to
or in place of the Trustee;  provided, however, that this Section
13.09 shall not apply to the Company or any Affiliate of the Company if it or
such Affiliate acts as Paying Agent.

SECTION 13.10 
Defeasance of This Article. 
Notwithstanding anything contained herein to the contrary, payments from
cash or the proceeds of United States Government Obligations held in trust
under Article IV hereof by the Trustee (or other qualifying trustee) and which
were deposited in accordance with the terms of Article IV hereof and not in
violation of Section 13.02 hereof for the payment of principal of and interest
on the Securities shall not be subordinated to the prior payment of any Senior
Indebtedness or subject to the restrictions set forth in this article, and none
of the Holders shall be obligated to pay over any such amount to the Company or
any holder of Senior Indebtedness or any other creditor of the Company.

SECTION 13.11 
Subordination Language to Be Included in Securities.  Each Security shall contain a subordination
provision which will be substantially in the following form:

“The Securities are subordinated in right of payment,
in the manner and to the extent set forth in the Indenture, to the prior
payment in full of all Senior Indebtedness (as defined in the Indenture, or as
set forth in one or more indentures supplemental hereto, a Board Resolution in
accordance with Section 3.01 of the Indenture or in this Security). Each Holder
by accepting a Security agrees to such subordination and authorizes the Trustee
to give it effect.”

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

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IN WITNESS WHEREOF, the undersigned have caused this
Indenture to be duly executed as a deed the day and year first before written.

	
  

  	
  FINANCIAL SECURITY ASSURANCE 

  HOLDINGS LTD.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/ Joseph Simon

  	
   

  
	
   

  	
   

  	
  Name: Joseph Simon

  
	
   

  	
   

  	
  Title:  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/ Bruce E.
  Stern

  	
   

  
	
   

  	
   

  	
  Name: Bruce E. Stern

  
	
   

  	
   

  	
  Title:   Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Franca M. Ferrera

  	
   

  
	
   

  	
   

  	
  Name: Franca M. Ferrera

  
	
   

  	
   

  	
  Title:   Assistant Vice President

  

 

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